Holcim Cement tainted in Switzerland by work rights abuses in India

INDIA: Causing a stir in the Swiss media, the PCSS together with Swiss union UNIA and Swiss-based human rights organization MultiWatch, solidarity organization, Solifonds, the ICEM and Building and Woodworkers’ International (BWI) raised increasing awareness through various channels.

The details of the case are shocking and include the worst examples of workers’ rights violations around the world, especially in terms of the global trend of outsourcing and engaging precarious employment relationships, which capital sees as a tool to lessen its responsibilities to workers.

Holcim invested in the Indian cement industry in 2005 when the Indian government opened up the country’s resources to outside investment. Holcim’s two subsidiaries, ACC Jamul and Ambuja Cement, had a long history of abusing worker rights, and Holcim has thus far refused to reverse these practices. Instead, the Swiss-based company has overseen an increasing proportion of contract workers that now comprises 80 per cent of the company’s total workforce.

The PCSS represents contract workers at the two plants and Holcim is the largest cement producer in India. Contract workers are protected by Indian law and by a sectoral agreement prohibiting contract employment in core production work, with all work paid at the same rate that permanent workers receive.

This stipulation has been flouted at Holcim India, where contract workers work side by side with permanent workers in core production, and they are denied proper protective equipment and paid one-third that of permanent workers. They also do not receive proper benefits and have greatly reduced rights to organize and bargain collectively.

Contract workers of Holcim India have been punished for attempting to organize into the democratic PCSS union and as well, they have been punished for informing global Holcim management of the abuses. In fact, the majority of the PCSS members at Holcim are now excluded from work in the companies due to their union involvement.

Global pressure has forced Holcim to pay attention to these violations in India, but when Holcim Executive Paul Hugentobler visited ACC Jamul recently, contract workers were all moved to a different shift and workers’ representatives were banned from taking part in meeting with him. Instead, representatives of the sham company union, OP Banchore, were involved.

The Supreme Court of Chhattisgarh ruled in favour of the PCSS, instructing the company to award permanent employment contracts to those temporary employees, some of whom have remained on rolling temporary contracts for over 20 years. Holcim India even went so far as to reject India’s court ruling and instead committed large financial resources to extend the legal process.
The PCSS, supported by ICEM, met with the National Contact Point of the OECD in Switzerland in April as part of the process of the complaint on breaches of the OECD Guidelines for Multinational Enterprises at Holcim India.

PCSS was welcomed at the ILO on April 13, where explanations of the violations in India were met with serious concern and proposals for possible action.

Further details available on the ICEM website here.

Rio Tinto investment in India under fire

GLOBAL: Despite attempts by trade unions to warn Rio Tinto’s senior management about the dangers of its contempt for workers’ rights, the company has failed to respond. Rio Tinto now faces the challenge of developing its business in India in the face of stiff opposition from unions.

Rio Tinto announced a planned investment of $2bn in Orissa (India) iron ore mining project. Investments into India can be challenging and face a myriad of regulatory delays. Recently South Korean steel group Posco suffered another set-back in its plans for a $12bn investment first announced in 2005 after local protests in India. The latest setback follows a verdict from India’s National Green Tribunal.

The state of Orissa is the 9th largest state in India with 30 districts and its main strength is its mineral resources. About 34 per cent of the country’s iron ore deposits are there but it also has one of India’s poorest populations. Trade unions have been playing a vitally important role between Governments and local communities to assist displaced land workers.

Mr. Rajendra Pasad Singha, President, Orissa State Hind Mazdoor Sabha (HMS) and Vice President Steel, Metal and Engineering Workers’ Federation of India (SMEFI) and Mr Sudharshan Rao Director International Metalworkers’ Federation South Asia Office held a meeting with Mr Raghunath Mohanty, Minister for Industries, Mining and Parliamentary Affairs, Government of Orissa. The unions presented the Minister with a letter on behalf of the IMF and its affiliate SMEFI detailing concerns such as the illegal lockout of workers in Alma, Canada. Local unions also plan to build support to their objections in local community groups and will meet shortly with the Chief Minister of Orissa.

In principle the local unions welcome foreign investments into India but in this case Rio Tinto has such a poor reputation they see no alternative but to draw attention to the company’s activities. The Indian unions refer to Rio Tinto’s failure to respect workers’ rights in the Bell Bay organizing campaign in Australia and the illegal lockout in Alma, Quebec, Canada.

Sudharshan Rao IMF Director South Asia commented, "We stand side by side with the workers in Alma. We will continue to raise concerns with the highest levels of Government and seek assurances that some of our most vulnerable citizens will not be exploited by this poor corporate citizen."

Outlawed pro democracy actions demobilised in Swaziland

SWAZILAND: The Swaziland government obtained a court order on April 10 blocking the planned pro democracy protests for April 12, but union and student activists planned to go ahead despite the ban. Two days before the planned actions, key trade union leaders and other activists, were put under house arrest and cell phones were confiscated. On the eve of the protest, the army held a parade in the streets in an attempt to intimidate people.

On the day, more union leaders were detained at their homes or offices.  Buses entering the city were turned away and groups of people of three or more were broken up by soldiers. The police took charge of the roads and the army patrolled the streets, all heavily armed.

Trade unionists have been on the frontline as advancing the struggle for decent work in Swaziland is impossible in a politically hostile, repressive and unstable environment.

With blatant disregard for ILO’s Core Labour Standard Convention Number 87 on the Right to Freedom of Association, the Swaziland government deregistered the newly merged Trade Union Congress of Swaziland (TUCOSWA) early in April 2012, which held its founding conference only a month before. Labour has recognised that worker unity is key to its strength, which prompted the merger.

When the Swazi government deregistered the new federation, the official reason stated was that the law could not accommodate the merger, but senior government officials have also cited that TUCOSWA could not be permitted to engage in politics. Political parties are banned in Swaziland and TUCOSWA has taken a resolution to oppose national elections in 2013, which it called undemocratic unless held under a multiparty system.

On April 13, the International Metalworkers’ Federation (IMF), International Textile, Garment and Leather Workers’ Federation (ITGLWF) and the International Federation of Chemical, Energy, Mine and General Workers’ Unions (ICEM) sent a joint letter to the Prime Minister, calling on the Swaziland government to restore the registration of TUCOSWA, discontinue the harassment and intimidation of trade unionists and uphold trade union and human rights.

IMF inspires young Russian union activists

RUSSIA: On April 14-15 two workshops took place simultaneously at the resort near Chelyabinsk, Russia. One was called a Young Union Leaders School and the other was dedicated to ‘Union resources and the effectiveness of their use’. The second workshop was organized by the Mining and Metallurgical Workers Union of Russia (MMWU) for the union activists of Mechel, leading Russian mining and metallurgical company.

Young union activists learned about the law practices concerning the Labour Code, developing and negotiating CBAs. IMF representative for CIS countries Vadim Borisov told the activists about the development of the international workers’ movement and various union actions, including the ones against precarious work.

Union workshop for Mechel activists was conducted by Eduard Vokhmin (Moscow). The workshop clearly demonstrated that the union at Mechel was ready for serious discussion of its strategic goals and effective use of resources, including the energy of young activists.

During the joint session of two workshops the participants watched and discussed a film made by the Chelyabinsk branch of the MMWU. The film demonstrated the failure of the National Project ‘Affordable Housing’. The activists talked about the lack of housing opportunities for young families and ways of promoting this problem both to the general public and the authorities. They proposed to establish contacts with unions in other regions of Russia, which have some experience in raising the issue of affordable housing. The activists will also contact MMWU headquarters on this issue.

‘Whatever the employers tell, wages in the metal sector are still not enough for workers to buy their own apartments. MMWU’s initiative on this issue could attract other civil society groups in the region,’ commented Vadim Borisov.

During the workshops a competition of union banners made by the participants was held.

ICEM, IMF and ITGWLF urge Peruvian government repeal laws on contracts for non-traditional exports

PERU. Decree Law 22342, which governs non-traditional exports, was the main issue at the international forum on decent work in the clothing and garments industries of Peru, held in Lima on March 21-22. The event was convened jointly by the International Textile, Garment and Leather Workers’ Federation (ITGWLF), the AFL-CIO Solidarity Centre, the Maquila Solidarity Network and the Peruvian NGO, Programa Laboral de Desarrollo (PLADES).

The forum heard that even when the law is applied correctly, it is unconstitutional and in breach of international labour standards. The forum heard many accounts about how contracts in the non-traditional export sector are denying workers the internationally recognised rights to the freedom of association and collective bargaining and condemning them to long working hours, low pay, poor working conditions, abusive treatment and little access to health and maternity benefits or pensions, because they do not have a permanent employment contract.
 
The forum also heard that many companies are abusing the law, applying it in an inappropriate way, without any effective intervention by the government. The great majority of these workers carry out permanent functions. Their jobs existed before they were employed and will continue to exist when they have left. Although they are in fact permanent workers, they are employed on successive temporary contracts. Some workers have had as many as one hundred temporary contracts with the same employer.

Therefore, the International Textile, Garment and Leather Workers’ Federation (ITGWLF), the International Metalworkers’ Federation (IMF) and the International Federation of Chemical, Energy, Mine and General Workers (ICEM) wrote to the President of Peru, Ollanta Humala, asking him to repeal the law in question.

The letter explains that the ILO says the decree is in breach of international labour standards and has urged previous governments to review the legislation in the light of these standards.

It recalls that the Humala  government made an election promise to repeal the decree and goes on express "concern that the employers, the Ministry of Trade and the Congressional Foreign Trade Commission want to keep Decree Law 22342". It points out that "this would be terrible for the welfare of workers in the sector and would seriously harm the image of both the government and country".

During the forum, trade unions and civil society representatives met to plan a campaign for the repeal of non-traditional export contracts. If necessary, this campaign will use international mechanisms such as those of the ILO, OECD, FLA, WRC and the Free Trade Treaty, as well as using the influence of brands to ensure compliance with the labour requirements in their codes of conduct.

Finally, the letter maintains that "our affiliates know they can count on the full support of our new global trade union, IndustriALL, in their fight against precarious work and outsourcing in our sectors".

The IMF, the ICEM and the ITGWLF urge the government to promote the industry on the basis of secure employment, decent work and social dialogue for the common good of workers, the industry and the country. And to support the proposal to repeal the decree law and ensure compliance with national labour legislation and international labour standards in the sector.

Outlawed pro democracy actions demobilised in Swaziland

The Swaziland government obtained a court order blocking the planned protests on 10th April but union and student activists planned to go ahead despite the ban. Two days before the planned actions, key trade union leaders and other activists, were put under house arrest. Cell phones were confiscated to communication. On the eve of the protest, the army held a parade in the streets in an attempt to intimidate people. On the day, more union leaders were detained at their homes or offices and escorted by police to tell workers that the action had been called off, which all refused to do. Buses entering the city were turned away and groups of people of 3 or more were broken up by soldiers. The police took charge of the roads and the army patrolled the streets, all heavily armed.

The government, squirming under international scrutiny, has become skilled at demobilising pro democracy actions and citizenry participation. The government certainly has had lots of practice. 12th April protest have been taking place for at least 20 years in Swaziland, with increasing international attention over the last few years, particularly through the efforts of the international trade union movement. Then there are other protests that are taking place with increasing frequency as the socio economic situation has become more dire.

The Swaziland government remains unwilling to address the legitimate concerns of the Swazi people and continues to supress citizenry participation manipulating culture and traditions to justify their Thinduka system of governance. But the country’s on going socio economic crisis has been deepened by a financial crisis in recent years sparked by regional changes in the South African Customary Union that has resulted in a reduction in government revenue. Dissent is rising as the bankrupt government continues to make unpopular decisions, like cutting public sector wages and closing schools and other educational institutions. On 1st April, government introduce a 14 percent value added tax on basic foods and services, making the dire situation where 70 percent of the population lives on less than two dollars a day, even worse.    

The government uses increasingly oppressive methods to control dissent like surveillance, media control and physical intimidation in its attempt to keep the masses depoliticised and unorganised. Actions that are organised are violently quelled the use of the army and police force.

Trade unionists have been on the frontline, speaking up against the quasi feudal system, wielded by one of the world’s last remaining absolute monarchies, that rewards corruption and patronage. Unions have realised that the advancing the struggle for decent work in Swaziland is impossible in a politically hostile, repressive and unstable environment.

With blatant disregard for ILO’s Core Labour Standard Convention Number 87 on the Right to Freedom of Association, the Swaziland government deregistered the newly merged Trade Union Congress of Swaziland (TUCOSWA) early in April 2012, which held its founding conference only a month before. Labour has recognised that worker unity is key to its strength, which prompted the merger. When the Swazi government deregistered the new federation, the official reason stated was that the law could not accommodate the merger, but senior government officials have also cited that this was because TUCOSWA is not permitted to engage in politics. TUCOSWA had taken a resolution to oppose national elections in 2013, which it called undemocratic unless held under a multiparty system.

Political parties are outlawed and pro-democracy campaigners are labelled as terrorists and suffer from systematic harassment. Unions have called for the unbanning of political parties and an end to the Tinkhundla system of governance that has supressed development, keeping the Swazi people in abject poverty, reducing them to modern day slaves. 

New leadership of Tunisian metalworkers elected

TUNISIA: At the end of a heated, passionate and transparent congress debate on April 11 and 12, 108 delegates elected the new leadership of the Tunisian metalworkers’ union, the Fédération Générale de la Métallurgie et de l’Electronique(FGME – UGTT). The election saw two opposed lists of candidates and everything was recognized by as having taken place in a correct and democratic way.

The team led by former General Secretary Tahar Berberi was re-elected, winning all the nine seats of the Federal Board, with a woman among the nine elected candidates. The vote on the activity report also showed that delegates strongly supported the action developed in the past congress period by Berberi and the whole team.

FGME has been the strongest advocate of a deep, genuine renewal and democratization of the Tunisian trade union movement. At the opening session Berberi spoke strongly of the work that still remains to be done within the union and in society at large.

Strong commitment was expressed by congress to the IMF and gratitude for the support it provided to FGME in past years and particularly during and after the 2011 popular uprising.

Mexico: unions in Finland reject PKC's protection contract

MEXICO:  Arneses y Accesorios de Mexico, Mexican subsidiary of the Finnish auto parts wiring systems and accessories group PKC, told workers it had signed a collective agreement with the Mexican Confederation of Workers (Confederación de Trabajadores de México, CTM). In response, the National Miners’ and Metalworkers Union (SNTMMSRM),the union the workers had chosen to represent them, made a formal bargaining demand to the Federal Conciliation and Arbitration Board. The protection contract officially prevents workers joining the SNTMMSRM, led by Napoleón Gómez Urrutia.

Trade unions in Finland have put pressure on the company to respect the workers’ choice of union representation and their rejection of the protection contract. In addition, the Finnish television channel MTV3 reported on the Mexican workers’ problems at the PKC subsidiary. The report included interviews with workers, including several members of Section 307 and with the PKC’s then President and Chief Executive Officer, Harri Suutari. Meanwhile, Finnish trade unions issued a statement condemning the company’s actions and calling on shareholders to raise the question of protection contracts at the shareholders’ annual general meeting, held today.

The most recent development is that the company’s biggest shareholder, IImarinen, an insurance company, has threatened to withdraw its investment in PKC because of the company’s refusal to respect the Mexican workers’ choice of union.

The IMF and other international federations and trade unions, as well as non-government organisations across the world, have declared their support for the miners’ union and condemned the company’s actions.

Congress website www.building-power.org goes live

DENMARK/GLOBAL: In order to provide affiliates from all three organizations with useful information on the dissolution Congresses of International Metalworkers’ Federation (IMF), International Federation of Chemical, Energy, Mine and General Workers’ Unions (ICEM) and International Textile, Garment and Leather Workers Federation (ITGLWF), various side meetings and the founding Congress of IndustriALL Global Union, a special website has been created at: http://www.building-power.org/

The dissolution Congresses of the three organizations and founding Congress of the new organization will take place in Copenhagen from June 18 to 20, 2012. The proposed name IndustriALL Global Union, Statutes, Action Plan and political leadership of the new organization will be decided on at the founding Congress. The website (Link: http://www.building-power.org/ ) will provide useful information and relevant documents for participants, and will later include live reports from the event including news articles, videos and photos.

Having greater strength and building power across the supply chain at the global level is the motivating force for the creation of IndustriALL, hence the Congress theme Building Power.

Italian metalworkers at Alcoa hope for future investment

ITALY: Negotiations lasted more than twelve hours before an agreement was reached in the Ministry of Economic Development on March 29, 2012. Italian workers of the global giant aluminum producer Alcoa achieved a temporary reprieve. The Alcoa site in Portovesme (Sardinian province of Carbonia Iglesias) will remain up and running until the end of the year.

The deal was made thanks to a strong mobilization of workers, their unions and civil society organizations. IMF Italian affiliates Fim-Cisl, Fiom-Cgil and Uilm-Uil played a major role in the process.

The signed agreement to be approved by a vote of the workers obliges Alcoa to keep production at the enterprise until December 31, 2013. However the operations at the site will stop already after October 31, 2012, if there is no other group which will acquire the site and restart the production. The government is considering different incentives for a new potential buyer including ways to find a solution for a cost effective electric energy supply.

The deal is a temporary solution and there is still a risk that the site may be closed by the beginning of 2013. 1,500 workers and their families are affected. For the Sardinia region, one of the poorest economic areas in Italy, unemployment of so many will have a devastating impact on the local community.