ARGENTINA: As the entire world watches the extreme and growing crisis situation unravelling in Argentina, the general secretary of the International Metalworkers’ Federation, Marcello Malentacchi, insists that the trade unions in the country must be consulted by any future government.
Malentacchi, commenting on the worsening of the economic crisis and the resignation of the country’s president, Fernando de la Rúa, says that Argentina is now left in total chaos. “Once again,” states the IMF general secretary, “the country is on the brink of total collapse and its people are suffering today for decisions made by bad politicians and extremely tough conditions which the International Monetary Fund and other international institutions have tried to impose on the population of Argentina.
“The trade unions in the country have made numerous efforts to convince the government to change its policies in favour of economic growth and the fair distribution of wealth, but it failed to do so. Now the workers have to pay the price for all the mistakes made by the president and the government.
“This crisis will undoubtedly affect the entire Mercosur region, the whole of Latin America, as well as other parts of the world.” Malentacchi insists that the next president of Argentina, who will have to be nominated by Parliament in the coming 48 hours, “must consult with the trade union movement in the country and ascertain the protection of the people.”

NETHERLANDS: The FNV and its affiliate FNV Bondgenoten have informed the IMF about their request to the Dutch National Contact Point for the OECD Guidelines on Multinational Companies to investigate the announced closure by the Finnish engineering multinational Wärtsilä of its subsidiary in Zwolle, Netherlands.
The union believes that Wärtsilä has violated Paragraph 6 of the chapter on Employment and Industrial Relations of the OECD Guidelines on Multinational Companies by taking the final decision to close down its factory in Zwolle before giving notice not only to employee representatives but also to relevant government authorities.
As the company is considering to transfer the bulk of its Zwolle production activities to another subsidiary in Trieste, Italy, the FNV has suggested that the Dutch National Contact Point involve the Italian Contact Point in its investigation.
The closure of the Zwolle factory will mean the direct loss of 700 jobs, as well as some 2,000 others in supplier firms. Although the plant had been making losses for several years, it was expected to make a profit this year.

EUROPEAN UNION: An EU information and consultation directive, which was finalised on December 17, stipulates that companies in the European Union employing more than 50 people must consult their workers on all major decisions, ranging from restructuring to measures likely to lead to significant changes in work organisation or contractual relations. The workers must also be kept informed of the company’s economic situation.
Failure to comply with the terms of the directive, which will come into effect in three years’ time, is expected to lead to “effective, proportionate and dissuasive” penalties.
The EU social affairs commissioner, commenting on the legislation, said that companies would now have to “respect their workers at least as much as they respect their shareholders.”

CHILE: Following the failure of collective negotiations at Ascensores Raab, Rochette S.A. Chile, a company owned by the North American multinational Otis Elevator, workers have been on strike since December 3. During this time the company has replaced the workers with scabs.
Part of the reason for this industrial action, says the company union, is that management is not willing to share the benefits of the company’s economic growth of the last three years with its workers by giving them a wage increase. It also appears that the company has been trying to destroy the union, do away with the collective contract and reduce work at the company through subcontracting.
Due to union proposals for its collective contract 2001-2003, there has been an increase in productivity, improvement in efficiency and a decrease in costs, allowing the company to achieve continued economic growth.

GERMANY/MEXICO/GLOBAL: In 1997, a few Volkswagen colleagues came up with the idea of supporting projects to benefit street children (see associated link). Now this project, called “One Hour for the Future — Volkswagen Employees Help Children in Need”, is underway. It was launched by the VW central works council, first in Germany, and now in other group companies as far afield as Brazil and Mexico.
The donations are used to support street children projects, primarily in regions with VW sites, and the organisation “Terre des Hommes” advises on, looks after and carries out the projects, which run over a relatively long time span and require more than just one-time support.
In the Puebla area, in Mexico, three projects being subsidised were visited on the occasion of the meeting of the Board of the World Works Council. One of the projects — IPODERAC — is organised like SOS–Children’s Villages. The children live with an adult in houses that have been planned and built for this purpose. This project has now developed a gainful activity of its own. Some 300 goats are being raised, and goat cheese is manufactured in a cheese dairy, along with other cheese varieties thanks to the purchase of additional milk. This cheese is primarily sold to French restaurants in the Mexico City area, and the proceeds cover around 70 per cent of project costs.
A second project in Puebla — Casa JUCONI — builds on three pillars: work with street children on the street; work with children who work at markets, and the Casa JUCONI, a residential building with its own productive workshop — a bakery whose main purpose is not to be self-financing but rather to teach punctuality, order, the work ethic and discipline.
The third project — Mateo Quinto — primarily looks after mentally retarded and physically handicapped children.
In the meantime, the VW trade union in Puebla has become directly involved with another project — Casa del Alto Refugio — which mainly takes care of small children.
As of early April 2001, over DM 4.2 million (US$1.9 million) had been raised and donated for the campaigns, which also subsidise and support projects in other regions. These activities will be pursued with concerts and a campaign to collect foreign currencies before the transition to the Euro. The annual donation volume required to support the projects on a sustainable basis and not merely service them with one-time donations is estimated at over DM 1 million (US$460,000).

GREAT BRITAIN: It has been reported that the subsidiary of Airbus in the UK is close to a deal with its unions that could save up to 1,800 jobs put at risk when the European aircraft maker was forced to abandon plans to boost production. The UK operation, which makes the wings for all Airbus aircraft, had warned that it might cut jobs in response to the crisis facing global aviation.
Unions began balloting members this week after recommending a deal that included a wage freeze, a ban on overtime and a change in shift patterns. In return Airbus has agreed to a reduction in the working week from 37 to 35 hours.
Airbus UK has already received more than 200 applications for a basic voluntary redundancy scheme and had also offered early retirement to anyone over 60. The company employs 11,000 people at Broughton, near Chester, and Filton, near Bristol.
The company wants to avoid an exodus of skilled labour as it expected to resume growth in the next two to three years.

NORTH AMERICA: The IMF-affiliated United Steelworkers of America (USWA) endorsed a statement on December 13 calling upon President Bush to adopt a 50 per cent tariff on imports and quantitative import restraints.
The U.S. International Trade Commission (ITC) earlier in December recommended tariffs of 40 per cent on “most” steel products. Demanding 50 per cent on “all” steel products for a minimum of four years, the USWA statement goes much farther than the ITC recommendation.
“For 30 years our trading partners have been exporting their problems along with their steel. This must end,” says the statement.
According to the USWA, in 4 years over 30,000 steelworkers have lost their jobs in North America. Twenty-nine steel plants have been driven into bankruptcy and 12 steel plants have been permanently shut down. At the same time, prices remain at 20-year lows.
Reaction from the EU
In a hard-hitting speech in London, European Trade Commissioner Pascal Lamy issued a warning to the United States over steel protection moves. He said that the European Union (EU) would take action if the U.S. chooses to protect its ailing steel industry and branded the recommendations issued by the ITC as “a blatant call for protectionism”.

GENEVA: The recent sentencing and imprisonment of the Korean trade union leader Mun (president of the KMWF) once again has illustrated the anti-worker stance of the South Korean regime.

This ongoing persecution of trade union leaders and their members is not only an attack on workers in Korea, but is an attack on workers throughout the world.

The IMF therefore urges its affiliates to make the necessary preparations for a Metalworkers’ Joint protest against the South Korean Government, to be held round the world 22 January 2002.

The protest is a part of the IMF-coordinated International Campaign for the immediate release of imprisoned KCTU and KMWF leaders and Korean workers.

More information about the protest will be at hand in the first half of January.

ITALY: Fiat, Italy’s largest industrial group, this week unveiled restructuring plans aiming at reducing excess capacity in its automotive operations.

Fiat has confirmed 6,000 job cuts and closure or scaling back of 18 plants around the world. Of the plants earmarked for cutbacks or closure, Fiat said 10 had already been planned. But the company warned of additional closures in Europe, North America and Argentina.

The announcement follows mounting losses at Fiat Auto and decreasing demand for Fiat’s commercial vehicles.

GERMANY: Metalworkers’ trade union IG Metall, headed by IMF president Klaus Zwickel, yesterday recommended its regional associations to ask for a pay rise next year of between 5 and 7 per cent.

The recommendation was immediately dismissed by the employers’ organisation, as “ignoring economic reality”.

On a press conference, Zwickel argued that the demands for the metal and electrical industry were clearly payable, as company profits had increased sharply in recent years.

After consultation of the regional tariff commissions in the coming weeks the IG Metall executive committee will decide the final wage demand on 28 January 2002.