IMF seminar on non-manual workers in Latin America

BRAZIL: Some 40 delegates from affiliated unions in Brazil, Argentina, Colombia, Chile, Mexico and Venezuela gathered in Sao Paulo on September 2-3, 2004 to participate in the first IMF regional seminar on organising non-manual workers.

With the structural and technological transformation of industries in the metal sector, major changes have taken place in the composition of the labour force, with non-manual occupations accounting for an ever-increasing share of employment.

Consequently, the IMF Executive committee earlier this year called for
unions to put greater emphasis on making unions relevant to non-manual workers who, just like their manual colleagues, are bearing the brunt of ruthless competition and corporate restructuring.

The objective of the IMF seminar was to raise the issue of non-manual workers in the region and discuss organising policies and strategies. As a contribution to the debate, some European and US trade unions were also present.

CNM-CUT working group

Amongst others, CNM-CUT of Brazil reported that it was setting up a working group with the mandate to "propose specific policies to organise and mobilise non-manual workers". Non-manual workers account for about 30% of the labour force in the Brazilian industry.

"The seminar was well received," says Anne-Marie Mureau, responsible for non-manual workers within the IMF secretariat. "The differences between countries in the field of national legislation, the composition of the workforce, the union structure, etc. obviously mean that different tactics and strategies need to be developed to reach out to non-members. Each union has to find its own way
to move ahead but it is important to address the issue of the growing gap between the employment and the membership structure," she says.

The meeting decided, among others, that a network should be established, to facilitate contact, information exchange and solidarity assistance between non-manual workers in the region and the IMF.

"Discriminatory" union rights at EPZs

BANGLADESH: The Parliament of Bangladesh has passed a bill granting limited workers’ association rights in the country’s export processing zones (EPZs) from November 1, 2006.

From now until October 31, 2006, there will be a provisional arrangement, short of a trade union, for formation of "Welfare Committees" with elected representatives of the workers. Committees will have the power to negotiate and sign collective agreements.

Moreover, the bill provides for the formation of formal trade unions from November 1, 2006. Trade unions of a particular EPZ area will be allowed to form a federation, but there should not be more than one federation in an area. Federations will not be allowed to form a single body or join any national trade union, political party or its labour front. Unions are not entitled to take part in any political activity.

The bill comes after the American labour federation, the AFL-CIO, in the beginning of 2003 reiterated an earlier petition to the U.S. trade representative to deny Bangladesh special trade benefits unless it reversed discriminatory labour policies.

The reaction of Bangladesh trade unions to the bill is mixed. Majibhur Rahman Bhuiyan, general secretary of the IMF-affiliated Bangladesh Metalworkers’ League (BML), says they are not happy with this law, feeling it is incomplete and discriminatory. Furthermore, they ask how there can be two trade union laws: one for EPZ workers and another for the rest of the workers, in the same country. At the same time, the BML acknowledges that the law is a step in the right direction.

"Globalisation is going white-collar"

BY ANNE-MARIE MUREAU

A major change in the occupational profile of employment over the past years has been the shift from blue-collar to white-collar jobs. Technological innovation has transformed the nature of the workplace and the nature of the work and skills expected from people. As manufacturing becomes more and more technology-intensive and the demand for new high value-added products increases, one can expect this trend to accelerate.

Later in this report, we will come back to the challenges this development poses for metalworking trade unions. But first, a few examples to illustrate the trend.

In the USA, the share of non-production workers is registering a slow but steady increase in relation to total employment (see graph on next page). In the sectors “aircrafts & parts” and “computers & electronic products”, this share now amounts to 53% and 45%, respectively.

In Germany, as the graph shows, over half of employment is now to be found in non-manual grades. For the metal industry in particular, the figure is reaching 40%, compared to 34% at the beginning of the ’90s. In France, the share of engineers and professionals in the metal industry doubled in the last 15 years, whereas that of production workers dropped by 5%. Japan is experiencing a similar development, with non-manual workers accounting for around 45% of overall employment in the metal industry. In two sectors (see graph), non-manual employment is well above 50%.

The general trend for non-manual occupations is upward. The changes noted earlier in skill requirements resulting from the introduction of new technology, modifications in trade patterns (including growing competition from low-wage countries and increased market pressures) and in work organisation will become more pronounced.

An issue for all IMF affiliates

The issue of non-manual workers is not just an issue for unions in developed countries alone. “Globalisation is going white-collar,” as the magazine Business Week recently put it. All kinds of knowledge and skilled work can now be done almost anywhere. After the outsourcing of assembly work, corporations are shifting upscale jobs — for example basic research, chip design, engineering — to lower wage countries, in particular to those with a large pool of well-­educated and skilled people.

For example:


In the same vein, South Korea and Taiwan are positioning themselves as important R&D and services hubs.

A low unionisation rate

While the proportion of non-manual workers in employment is rising, union representation among this category remains weak. In most countries they are usually less well unionised. In the IT sector in particular, union membership is very low. Their share in the total membership of many industrial unions affiliated to the IMF hovers at about 10%-15%.

This is partly due to different attitudes on the part of non-manual workers, who generally tend to be more individualist and, quite often, see little value in organising and collective support. It is also due to the fact that, traditionally, most unions have emphasized organising and furthering the interests of production workers, who account for the bulk of their membership, and not given proper attention to workers outside their traditional stronghold. Moreover, employers often turn out to be more hostile to the unionisation of non-manual workers than of manual workers. They prefer the former to be non-unionised and/or on individual rather than collective agreements. There are also legal restrictions to organising these workers in certain countries.

Nevertheless, non-manual workers, even those in the higher positions, are increasingly aware that they are now no less vulnerable to management decisions than production workers. Just like them, they are drawn into the race to the bottom and downsizing, and see their jobs being shifted abroad. They are starting to learn and experience that the logic of cost-cutting no longer distinguishes between blue-collar and white-collar. Not only is production work outsourced but also highly skilled occupations, and even when blue-collar work is outsourced many non-manual jobs in activities related to production are lost as well.

Attitudes are changing

With mergers and takeovers constantly reshaping the industrial landscape and globalisation hitting people at the high end of the skills scale, attitudes are changing as well. White-collar workers start to think differently and distance themselves from their company; they look for help and the defence of their rights in the face of neo-liberal market radicalism. In a way, the recent debacle in the IT sector did some good, as it got people who had been employed in this branch to wake up and join the union, as in Sweden for example.

Organising the unorganised remains a fundamental task of all IMF affiliates and the majority have adopted policies which establish recruitment as a priority in their activities. It is how trade unions came into existence and it is what they still exist for. Thus, trying to organise non-manual workers is increasingly important for IMF affiliates.

Examples of critical issues for non-manual workers are:

In many ways, the basic concerns are the same as those confronting other workers, but there are differences in terms of approach and emphasis. This requires getting a grip on increasingly differentiated working conditions, attitudes, and patterns of perception and employment profiles. The issue for trade unions is also how to respond to the increasing demand for a more tailored approach and more individualization in providing services.

A policy paper on "Non-manual workers in the IMF" was adopted at the recent IMF Executive Committee meeting in Geneva, May 12-13. Regarding the development outlined above, the paper poses a number of questions, which are closely linked to the future of trade unionism:

The policy paper says that unions should demonstrate that they are relevant to meeting the needs and expectations of non-manual workers. Because they feel more vulnerable and insecure at work than in the past, non-manual workers are more interested in getting involved in the search for alternatives. In this connection, sustainable development and corporate social responsibility linked to the promotion of core labour standards are issues that can help engage these workers and mobilise them for union work.

Objectives of trade union response should be twofold:

In line with its Action Programme, the IMF has carried out activities for non-manual workers, including workshops and seminars. The IMF policy paper sets out common goals and recommendations for future work, including:

The IMF mission will continue to be managing the balancing act of organising the traditional core occupations and the new target groups, and representing the interests of both.

Concern for situation at Gravatai auto plant

BRAZIL: The International Metalworkers' Federation has protested to the head office of General Motors Corporation about ongoing actions of GM management at the Gravatai auto plant in Brazil. These include the denial of the right to freedom of association. The IMF also expressed concern over the status of health and safety protections at the plant.

In the letter sent today (May 19, 2004) to G. Richard Wagoner Jr., GM's chairman and chief executive officer, the IMF general secretary, Marcello Malentacchi, referred to the transnational automaker's refusal to allow a free and fair election whereby workers at the company's Gravatai facility would be able to democratically decide their representatives. "The IMF fully supports a complaint under the OECD Guidelines on Multinational Enterprises filed by the Sindicato Metalúrgicos de Porto Alegre," wrote Malentacchi. The union is a member of the IMF-affiliated CNM-CUT.

Malentacchi also expressed concern over the unjust dismissal of workers who have suffered occupational injuries at the plant and asked the company to ensure that all legal protections and rights of injured workers be respected. The IMF general secretary urged GM's Gravatai management to take actions to address the health and safety conditions in the plant.

Non-manual workers and China in focus at IMF Executive

GENEVA: High on the agenda at the just concluded two-day meeting of the IMF Executive Committee, in Geneva, was the topic of non-manual workers and IMF policy and activities in this area.

The issue of non-manual workers has become a global one and Executive Committee members felt it was very timely to address it. The composition of today's workforce is shifting from blue-collar to white-collar jobs, and as manufacturing becomes more and more technology intensive, this trend is bound to continue. At the same time, the unionization rate is low among these workers.

The changes in the industrial and occupational structure represent a major challenge for the trade unions, but they also offer an opportunity. Organising the unorganised is at the core of the IMF's Action Programme, and the mission of unions is to organise both the traditional core occupations and the non-manual, and represent the interests of both.

The IMF, recognising the importance of recruiting non-manual workers, recommended that its activities be strengthened worldwide for this group.

The issue of China was another key topic for discussion at the IMF Executive meeting.

A decision was taken to set up an ad hoc working group, to be led and coordinated by the IMF. Among its tasks will be to:


Regarding trade union developments in Belarus, the Executive Committee took the decision to immediately suspend the Automobile & Agricultural Machinery Workers' Union (AAM) from IMF affiliation and to recommend its expulsion to the IMF Central Committee. (See the associated link for background information.)

The next meeting of the IMF Executive will be held in Geneva in December.

"Workers' health is not for sale"

GENEVA: In the run-up to the many activities being organised for both the April 28th Workers' Memorial Day and the First of May, IMF general secretary Marcello Malentacchi is urging trade unions worldwide to once again place the issue of workplace health and safety at the top of their agendas.

In his latest opinion column, the IMF general secretary states that with the many activities to take place on April 28th and May 1st, unions must "seize the opportunity to shout that the health of workers is not for sale."

Statistics do not give the full picture about work-related health risks. In addition to the many deaths and injuries caused by accidents, countless illnesses result from the workplace, which seriously affect workers' health and are often diagnosed long after exposure to the risk.

The full text of the opinion column can be accessed on the related link.

IMF signs framework agreement with Bosch

GERMANY/GLOBAL: An international framework agreement, "Basic principles of social responsibility at Bosch", has been signed by management of the German-based automotive and engineering transnational, by the Bosch Group European Works Council, and by the International Metalworkers’ Federation. This is the eighth international framework agreement (IFA) for the IMF.

Stating that a priority at Bosch is to combine "the pursuit of economic objectives with consideration for social and environmental factors", the principles of the agreement are based on the core labour standards of the International Labour Organisation.

Included in the IFA are provisions concerning the right to freedom of association and collective bargaining, children’s rights, occupational health and safety, equal opportunities, and the rejection of forced labour.

As well as covering the entire Bosch Group, whose business sectors are divided into

the agreement stipulates that the company will not work with suppliers that fail to comply with the basic ILO standards.

Note: The first framework agreement for the metal industry was signed at Merloni Elettrodomestici, in December 2001. Since then, the IMF has signed framework agreements with Volkswagen, DaimlerChrysler, Leoni, GEA, SKF, Rheinmetall, and now Bosch. More are to follow.

 

Sweden's SIF gets new deal

SWEDEN: The IMF Swedish affiliate SIF (Svenska Industritjänstemannaförbundet) signed a new three-year collective agreement on March 31, covering wages and working conditions for 110,000 white-collar workers in the metal sector.

When talks officially began on January 1, the employers' organisation proposed the introduction of a new bargaining system which would have had all wages negotiated at company level, between each individual employee and his/her nearest superior. This was rejected by the union, as was the employers' demand that the existing agreement on working conditions be optional at company level. The result is that the new agreement has exactly the same structure and is based on the same system as earlier agreements.

The main items contained in the contract include:


The agreement is valid from April 1, 2004, to March 31, 2007.

Aker Yards to merge its activities

NORWAY/FINLAND/GERMANY: As a result of restructuring at Aker Kvaerner, one of the three groups which has been created, Aker Yards, will merge its shipbuilding activities in Norway with those of the company in Finland and Germany.

The combined group, with 13 shipyards in Europe and one in Brazil, will become the leading shipbuilding group in Europe and the world's fifth largest, concentrating its activities primarily in market sectors such as for cruise ships, container vessels, conventional and high-speed ferries, ro-ro vessels, chemical tankers and offshore service vessels.

Trade union reactions to Aker Kvaerner's reorganisation of the group's activities are favourable. The chief shop steward at Aker Yards in Norway called the restructuring a "positive move". At the Finnish metalworkers' union, Metalli, the head of the shipbuilding section also felt it was a step in the right direction, and that there would be improved coordination of activities with the various shipyards under one group, "a better division of labour" between the shipyards in Norway, Finland and Germany. And the IMF's director for the shipbuilding department, David Seligson, commented that small European shipyards had not been largely competitive.

Report on non-manual workers

GENEVA: A report from the IMF's second seminar on organising non-manual workers, held in Geneva last November, is now available.

About 50 delegates from IMF affiliates participated in the seminar, and the report contains all 13 presentations made. A number of key themes were raised in the various contributions and the discussions that followed. Among them were union structures, career development and training, communication, individual representation versus collective representation and methods of servicing members.

The report, entitled "Organising Non-Manual Workers — Follow-up", available in English, French and German, can be downloaded under "Publications" on the IMF website (or via the links in the right margin).

Hard copies can also be ordered from the IMF in Geneva.

The first report in the series, published in January 2003, is also available under "Publications".