Unions meet to tackle Central Asia’s investment boom

A region in rapid change

The Central Asian sub-region is going through rapid growth and change, as countries democratize and open their economies to the world. Investment is flowing in from China, Russia, the Gulf, Türkiye, European countries and elsewhere, often through joint ventures.

For unions in the region, who have traditionally worked mostly with state-owned enterprises or local private companies, the entry of global capital is a new experience. It raises new challenges, as investors have different expectations over the leeway they expect over their workforce. Different working cultures are also clashing with traditional industrial practices.

The economy is also seeing growth in self-employment and platform work.

Union representation at automobile industry

Automobile industry investments are in increasing in Central Asia, particularly in Uzbekistan. Quite a number of multinationals are already in place and struggle for union representation is a continuous effort. For example, Chinese electric and hybrid vehicle manufacturer BYD recently opened a factory in Uzbekistan with an annual production capacity of 50,000 cars. As part of the joint venture agreement, the metalworkers’ union secured recognition and collective bargaining cover and workers earn more than the national average. However concerns remain about the level of influence unions have to improve conditions further.

Investment across sectors

Investment is flowing into oil, gas and energy and the region is at the beginning of an expected renewables boom, with wind and solar projects under way.

The chemical and pharmaceutical sector is also seeing foreign investment and the commodities boom, with rising gold and copper prices, keeps the mining industry in a strong position.

The development of the Trans-Caspian Corridor, a modern revival of an ancient trade route between China and Europe, is raising the region’s profile as a logistics hub. This is likely to drive growth in supply chain manufacturing for the automotive, energy and other sectors.

New ILO convention on platform work

The ILO ACTRAV senior specialist Gocha Aleksandria spoke about the results of the recent International Labour Conference and the new ILO Convention on the Platform Economy, C193. He also spoke about ratification rates in the sub-region, which are high, and the level and quality of implementation and social dialogue.

Tools for organizing global capital

IndustriALL campaigns and organizing director,  Walton Pantland, spoke about tools to tame global capital, including human rights due diligence (HRDD), investor engagement, OECD complaints mechanisms and complaints processes through international financial institutions. He also stressed the importance of organizing newly emerging sectors.

The discussion was lively and unions enjoyed exchanging views on the changing economy and opportunities for union growth.

Interest and appetite from the unions for international cooperation and solidarity

While IndustriALL affiliates re-affirmed their strong commitment for closer cooperation at international level, non-affiliated unions attended the meetings expressed their interest and appetite to learn more about IndustriALL with an intention to join and participate in the global structures.

“The economy in this region is growing rapidly as global capital moves in to invest in raw materials, manufacturing and energy. There is tremendous opportunity for union growth. We need to make sure that this vital part of the global economy is well-organized and that the unions are connected to their peers in other countries,” 

said Kemal Özkan, IndustriALL assistant general secretary.