AUSTRIA: The 2011 pay awards will range from 4.2% to 4.4%, with the minimum wage in the sector increasing by €80-per-month, or a sizeable 5.3%. The ICEM commends these wage gains as a sterling European example in creating consumer power to offset the dire financial climate of the Eurozone. PRO-GE and GPA djp are to be congratulated for negotiating €300 million into the Austrian economy in this single set of talks.

This was made possible by strategic and early strikes last week that moved third-round bargaining up to yesterday, and forced the employers’ hand in raising their wage offers to above 4%. (See ICEM report on Austrian coordinated strikes last week here.)

"We have met our main demands of sustainable wage and salary increases, particularly for the lowest paid workers," said Rainer Wimmer, PRO-GE’s chief negotiator. "I thank the stewards, members, and supporters who made this deal possible. Without the 800 workplace actions and the pressure generated by the strikes, this would not have been possible."

Those strikes happened last Thursday and Friday, and were about to carry into Monday, 17 October, except that employers recognised the growing momentum among workers for fair wage gains and they reached settlement on union terms. That recognition came in hastily called exploratory talks held on Sunday, 16 October, that included ÖGB national labour centre President Erich Foglar and the leader of the chief employers’ association, the Austrian Federal Economic Chamber (WKÖ).

Third-round bargaining was moved up from 20 October to yesterday to avoid further work stoppages, and the two sides reached accord early today after a 14-hour bargaining session.

The agreement grants a 1 November pay rise of 4.4% to bottom rung workers, 4.3 to mid-level, 4.2% to senior staff, and 4% to top level people. In addition, pay for apprentices increases by 4.3% and all benefit indemnifications increase by the same amount.

Perhaps the crowning achievement was hiking the minimum wage by 5.3%, or up to €1,584-per-month. The wage agreement positively affects the buying power for 25,000 autoworkers, 16,000 who work in basic steel and iron, 5,000 in non-ferrous metals, 5,000 in utility work, and tens of thousands more in machinery, metal goods, and other industrial production.

Austria’s metal sector agreement now sets a template for 450,000 retail sector workers. Unions representing those workers and retail employers begin talks on 19 October.

See full ICEM report here.

INDIA: On September 30 an agreement was reached between Maruti Suzuki and striking workers. The workers agreed to resume work, and the management agreed not to indulge in any acts of vengeance against the workers. The parties also agreed to settle disputes through negotiations and to respect each others’ fundamental rights.

On October 3, when the contract workers reported for duty, they were turned away. Regular workers who resumed their duties were transferred. The management also stopped bus services, making it difficult for workers to reach the factory. On October 7 the management and contractors sent goons to attack contract workers who gathered at the plant gate, and union office bearers who intervened.

From October 7 around 7000 workers started a sit-in strike at three Suzuki plants, Maruti Suzuki India Limited (MSIL), Suzuki Power Train and Suzuki Motor Cycles India Ltd, at Manesar, Gurgaon. They demand that the company immediately allow contract workers and 44 dismissed workers to resume their duties, and that they are assigned responsibilities at work stations where they have at least some experience.

On October 9 a contractor opened fire on workers at Suzuki Motor Cycles Limited. It was maintained officially that he fired in self-defence, but discussions with the workers showed that the intention was to harm workers. The workers snatched the weapon from the contractor and gave it to police.

October 10 the Haryana Labour Department slapped a notice on workers for "breach of settlement" in connection to the agreement that was signed on October 1 and asked them to respond within the next 48 hours the Economic Times of India reports.

The same media also reports that all major Indian national trade unions, cutting across party lines — AITUC, CITU, HMS, INTUC, BMS, AIUTUC, TUCC, AICCTU and UTUC – accused the company management of "high-handed provocative activities" and said not allowing casual workers to resume work is "an absolute act of vengeance" – a blatant breach of the October 1 agreement.

Update:

A LabourStart campaign in support of the Maruti-Suzuki workers was started on October 18.

To send protest letters to Shinzo Nakanishi, Managing Director and CEO of Maruti Suzuki India, go to http://www.labourstart.org/cgi-bin/solidarityforever/show_campaign.cgi?c=1136.

Zimbabwe: Workers marched in the streets of Harare singing songs of solidarity and were addressed by the newly elected ZCTU leadership; Secretary General Japhet Moyo, 1^st Deputy General Secretary Gideon Shoko and President George Nkiwane.

The ZCTU leadership assured works that ZCTU is committed to the issues of decent work and will continue to work with its membership and affiliates to make sure decent work is achieved. They reminded workers that they are part of international working class struggles and said that calls for decent work in Zimbabwe are echoed all over the world.

In Zimbabwe, only a few workers can claim to have decent employment, the vast majority of workers in earn far below the Poverty Datum Line (PDL). It is estimated that workers need to earn$504US a month to support an average family at the PDL but many workers in some industries are earning as little as $40US per month. Too many workers have poor quality and unproductive jobs, unsafe work, insecure income and are denied worker rights. There is also high levels of unemployment, inadequate social protection and poor provision for pensioners and those that are disabled.  

NEWU is also experiencing problems in the industry with employers in the Engineering Sector refusing to comply with an arbitration award that was handed down of a 20% wage increase for the industry. This has resulted in spontaneous strikes by workers and has caused unrest in the industry.

As worker representatives, Zimbabwe unions understand that promoting decent work is a shared responsibility and incorporates the needs and perspectives of the government, employers and workers organizations. Workers want to experience opportunities for work that is productive and delivers fair income, security at the workplace and social protection, freedom to express their concerns, organise and participate in the decision making processes that affect their lives. They also want equality in opportunities and treatment for women and men.

 

Article by Miriam Chipunza of NEWU

SWITZERLAND: Representatives of UNIA and the watch-making industry have just signed in Neuchâtel, Switzerland, a new collective agreement in the watch and micro-technology sector.  It will apply to the approximately 400 enterprises in the industry covered by the agreement (mostly small and medium sized enterprises) and 85% of workers in the watch-making industry, which employs about 48,500 people.  

Major progress was made in the area of social benefits, the minimum starting wage and the creation of a flexible retirement scheme.  In addition to an increase in the employers’ contribution to the health insurance fund, a family and training benefit of 30 francs will be added to the existing amounts.  As regards the starting wage, the union obtained an increase of 100 francs per month for those cantons where wages are lowest, and 80 francs for the others.  The employers’ attempt to raise fluctuating hours from 30/45 to 30/48 hours was rejected.  

According to Jean-Claude Rennwald, the architect of the new agreement and the officer in charge of the watch-making industry at UNIA, flexible retirement is the most innovative area of progress.  Workers in the industry will now be able to reduce their working time by 20% two years before the legal retirement age with the assurance that the employer will cover half of the lost pay at his expense.  It will also be possible to reduce working time by 40% one year before retirement, with the employer covering lost pay.  

Furthermore, union access to the plants will be improved and delegates to UNIA professional conferences (watch-making, industry) will receive one day of paid leave per year to attend them.  Regarding temporary employment, which affects about 4% of employees in the sector, negotiators achieved the establishment of a joint commission which will investigate abuses.

The new agreement is the result of eight months of negotiations.  It has been concluded for a period of 5 years, and will come into force on January 1, 2012.  Negotiations on adjustment of pay to inflation as of January 1 of the following year take place every year in September.

COLOMBIA: The members of Sintratucar — Sindicato de Trabajadores de Tubos Caribe – working for Tenaris Tubos del Caribe Ltd, Colombia, will get new protections in the work place, higher salaries, opportunities to obtain loans from the company to buy houses and support for the education of their children, among other achievements.

A further substantial gain is the transfer to permanent status of 30 workers that have been working on contract for long time, some of them 17 years, doing the same jobs as other Tenaris workers.

Sintratucar thanks the Tenaris Workers’ World Council for its undeviating support since the union was formed. The IMF congratulates Sintratucar for the achievement.

MALAYSIA: After enquiries of the local Bosch management the Malaysian Authority didn´t accept the competence of NUTEAIW. Unions in Bosch then visited the Bosch plant in Malaysia in November 2010 and met with the union and with the local management.

After a lot of discussions especially at the headquarters of Bosch in Stuttgart, Germany, the European Works Council achieved that the local management was asked to prepare for union recognition.

"Sometimes these things take a long time, and our work is like the strong and slow boring of hard boards," Helmut Lense at the IMF said. "But if the result is positive it´s worth it."

NUTEAIW thanks especially the European Works Council of Robert Bosch for the assistance rendered in its struggle.

PHILIPPINES: The killed workers were Cris Xander Papna, Jhay Lord Reyes, Glenn Miranda and Ronaldo Bagay, project employees of Keppel Subic Shipyard, and Mark San Juan and Ronald Lara, from Garcia & Rocafor General Services (G&R), a subcontractor.

The Metal Workers Alliance of the Philippines (MWAP) — an IMF affiliate uniting workers in the metal industry including automotive, electronics, shipbuilding, mining and steel — expressed its deepest condolences to the family and relatives of the victims of the accident.

The MWAP conducted a fact-finding mission at the site, and found irregularities in Keppel’s health and safety practices which caused the tragic incident. They were presented at a press conference on October 11 in Quezon City.

The steel tower ramp that fell on the workers was shaky, and lacked the usual 10-ton support. There was only one boom when the incident happened — a deviation from the common practice of using four booms when a ramp is repaired.

“We hold the management of the Keppel Shipyard responsible for non-implementation of mechanisms ensuring workers’ safety and lives. We call on the government to conduct a thorough investigation and help shed light on the real reasons and lessons of the incident,” said Reden Alcantara, MWAP secretary-general.

Accidents are common in the shipbuilding and shipyard industry. At the nearby Hanjin shipyard in Subic over 40 workers have died in industrial accidents. “The industry requires the highest standards of occupational health and safety due to the dangers inherent in it,” Alcantara said.
 
The workers’ alliance likewise called on the government to review the Philippine Economic Zone Authority’s jurisdiction over the country’s special economic zones to make the PEZA at least conform with existing labor laws.

“We are alarmed by the fact that investigators and even Subic Mayor Jay Khonghun were initially denied entry to the company premises because it is under the jurisdiction of PEZA. Is Keppel so powerful as to have its own laws and regulations that are contrary to Philippine laws?” Alcantara asked.

The fact-finding mission’s initial findings will be presented to the Congressional Oversight Committee on Labor and Employment to urge the body to conduct an investigation into the incident in aid of legislation.

 

INDONESIA: Community leaders also formed a committee and visited different locations of the vast mining complex in order to assess the number of outside workers recruited to break the strike. The committee visits were fired upon, with reports today that one protestor was shot dead.

The Grasberg mine in Papua Province, New Guinea Island, is 91% owned by US-based Freeport- McMoRan. The PT Freeport Indonesia Workers’ Union of CEMWU is in dispute with its subsidiary, PT Freeport Indonesia, over unwillingness to meet the salary demands of 10,000 miners. They are seeking a 65% increase above the current US$1.50-an-hour wage rate.
A two-year labour agreement expired on 1 October. The company is offering only an 11% increase in each year of a new two-year agreement, below that recommended by Indonesian government mediation last month.

Last week, government officials of West Papua Province, leaders of the province’s Parliament, the Papua Peoples’ Council of seven indigenous groups, a human rights committee, and the PT Freeport Indonesia Workers’ Union of CEMWU waited patiently for mine managers to show up to address issues. None did.

This came a week after the ICEM intervened with Freeport-McMoRan’s chairman asking him to personally step in to resolve the dispute, which threatens global copper and gold supplies. The ICEM received a response from a senior vice president of Freeport-McMoRan Copper & Gold stating the executive had full confidence in managers of PT Freeport Indonesia.

The response stated, "The union maintains its unrealistic demands for compensation, which are grossly inconsistent with Indonesian wage levels and, substantially in excess of the wages of mining workers in other countries performing similar duties."

In the mediation last month, the union reduced its wage demands from a doubling of the US$1.50-per-hour salary to 65%. Freeport-McMoRan posted a net profit of US$1.37 billion in the second quarter of 2011 and the person ICEM and the CEMWU is trying engage to resolve the dispute, James Moffet, took in a total compensation package in 2010 of US$21.5 million.

Read the full ICEM report here.

GEORGIA: Not only were over 30 sacked workers offered their jobs back, but police questioned the Indian managing director and two aides at Euroasian, also known as Hercules Steel, on 29 September.
The next day the top boss was sacked.

Meanwhile, three strike leaders – Emilo Gumberidze, Irakli Iobidze, and Malkhaz Gogiava – who were jailed by police on bogus charges were released after serving ten-day sentences in the Kutaisi jail. (See ICEM report here.)

They immediately called Metallurgical, Mining, and Chemical Workers’ Union President Tamazi Dolaberidze and pledged their continued support to the union. On 30 September, the new acting managing director of Hercules personally called each of the three to offer them their jobs back. The reversal gave Hercules metalworkers renewed momentum following the strike’s crushing and that registered both with Georgian workers and about 130 Indian workers employed at the rolling mill.

Several points of global and internal civil pressure caused deep embarrassment to Georgia. There also was high-level diplomatic pressure involved, especially after an international delegation that included the ICEM and top leaders from Poland’s Solidarnoşç exposed the fact that the Indian workers at Hercules may be treated worse than anyone else.

They live eight to a room in a dormitory adjacent to the mill, their passports were held by the senior boss, and their salaries are sent back to India. It is believed that the top boss, Raji Kumar Sureika, was sacked because he was holding the passports.

The strike last month by 200 Hercules metalworkers was sparked after the Metallurgical, Mining and Chemical Workers’ Union gained written support from a majority of the Georgian workers and then requested labour-management dialogue. After several weeks, the request was ignored and the strike started, including hunger strikes by four workers in front of the mill.

Two days into the strike, police violently broke it up and literally forced workers back to their jobs. Workers are angry that the two-year-old start-up mill has no salary schedule, no health and safety plan, and pays no overtime. Following last week’s good news, the ICEM-affiliated Metallurgical, Mining and Chemical Workers’ Union again called on Hercules to enter peaceful, constructive negotiations.

See a full ICEM report here.

THAILAND: Known as the Detroit of the east due to the presence of some of the big names in the automobile industry, Chonburi lies a three hour drive from Bangkok, in the Eastern Seaboard area of Thailand. Nestled in this vast industrial area and seafront is one of Thailand’s shipbuilding companies, the Unithai Shipbuilding & Enginnering Co.

IMF regional representative Arunasalam.P attended the 10th Annual General Meeting of the Labour Union of Unithai Shipbuilding & Engineering Workers in the hope of enlisting them into the folds of the IMF. More than one thousand workers and members of this union attended.

Arunasalam.P addressed the meeting and urged the participants to join the IMF through its Thai affiliate TEAM. He also gave some background information on the IMF and its struggle for workers and trade union rights, stressing the importance of unifying workers at the national and international levels. The tragic news of the fatal accident at the Keppel Subic Shipyard in the Philippines, where five workers lost their life came in at that moment, and Arunasalam.P highlighted the importance of occupational safety and health in this hazardous industry.

Khun Chatchai, President of the local union, welcomed the idea of joining the IMF. He stressed that Thai workers should look beyond the horizon and explore possibilities to engage with other unions around the world. He assured that his union would discuss this proposal and decide accordingly.