IndustriALL forms a union network in the semiconductors industry

Opening the meeting, Christine Olivier, IndustriALL assistant general secretary welcomed the participants and pledged IndustriALL’s support to building a global union network in this fast-evolving industrial segment of semiconductors.

“We need to pull all our energy together, workers, semiconductors multinationals and their supply chain should join together in solidarity to implement strategies that will make trade unions powerful.”

Semiconductor-producing companies are not equally distributed in the world. About 75 percent of semiconductor manufacturing facilities are located in China and East Asia. At the same time, over 90 percent of the cutting-edge semiconductor manufacturing capacities are located in Taiwan, and another 8 percent are in South Korea. This setup of the industry was relatively economically profitable for big players, and functioned for many years, but contained a lot of risks that could disrupt the entire supply chain.

The inevitable disruptions started after the pandemic and the sharply increased demand for home electronics in time of lockdowns, and the restart of the automotive industry. The semiconductors producers could not satisfy the sharply increased demand. The geopolitical tensions, further pandemic restrictions in China and the economic slowdown in the main consuming countries of EU, North America, and China resulted in these governments’ decision to prevent themselves from troubles in the future and develop their own production of semiconductors. Governments announced of generous distribution the investment tax credits and money in the semiconductors industry hoping to achieve leading positions and strong dividends in the future. Close to US$1 trillion in investments were announced just in Europe and US combined. Other important investments in the industry were announced by Japan, India, China, South Korea, and Taiwan. These investments were topped by the biggest chipmakers such as TSMC, Intel, Samsung, Micron, Texas Instruments, and others.

Alejandro González, a researcher at the Centre for Research on Multinational Corporations, SOMO spoke of the social and environmental risks in the semiconductors industry using a lot of water resources as well as hazardous chemicals presents health risks for workers handling them.

Jan Brauburger, policy adviser at IndustriAll Europe explained the situation in the European chips industry and current challenges and policies.

The participants of the meeting identified numerous problems and challenges faced by semiconductor workers including poor working conditions, discrimination of migrant workers, violence, harassment and discrimination at work, lack of respect for freedom of association, union busting, lack of information on health hazards including metals and their combination, as well as some unresolved ergonomic issues and others.

“This meeting was the first step, and we see a clear interest from our affiliates. We will build on previous experience from earlier created networkers of NXP and ST Microelectronics and address the identified challenges in the order of priority. By the next meeting, we will finalise the collecting of information on the presence of our affiliates in the semiconductor industry and its supply chain. We will work together on further organising efforts in order to build strong trade unions in this strategic segment of the electronics industry,”

said Alexander Ivanou, IndustriALL director for ICT, Electrical, and Electronics.

Responsible business not possible in Myanmar: report

The report, commissioned by the Ethical Trading Initiative (ETI), finds that it is impossible for brands to conduct due diligence in Myanmar and adhere to globally recognized responsible business standards. The ETI is a multi-stakeholder body, made up of trade unions, NGOs and companies. Members of the ETI include H&M, Inditex, Primark, Lidl and New Look, companies which have maintained production in Myanmar despite repeated calls by local unions and IndustriALL to divest.

The report highlights that the military regime perpetrates crimes against humanity and has a track record of human rights abuses, including forced labour, child labour, gender-based violence and war crimes. Within 14 days of the coup in February 2021, the regime changed the law to suspend human rights and track and detain dissidents.

In this context, it is not possible for global brands to perform due diligence. There is no freedom of association: trade unions and other workers’ organizations cannot function, even at factory level, and the military regime has actively tried to dismantle the trade union movement and other democratic structures. Trade unions have been banned, and 301 union leaders have been arrested, 55 have been killed, and there are arrest warrants for 27 union executive committee members.

Forced labour is widespread, including forced unpaid overtime which requires workers to travel home after curfew, putting them in danger from the military, police and criminal gangs. There is at least one reported case of a woman worker being raped on her way home from work. The situation is exacerbated by a rapidly expanding incidence of precarious work and collapsing wages, which leaves even those in full time employment unable to meet their needs.

There is no access to remedy, because the activities of the ILO and other UN agencies and international bodies have been severely curtailed. Many organizations, including the ACT initiative, have ceased operating in Myanmar, and Western governments have restricted their activities. International brands have no leverage with the military regime.

There is widespread corruption, with workers having to bribe officials to get jobs, and instances of factory owners bribing security forces to intervene in labour disputes and intimidate workers. The cost of these bribes was subtracted from workers’ pay.

The military junta’s growing control of the economy, and entry into more sectors, means that it is impossible for the textile and garment sector to isolate itself from the rest of the economy. In particular, much of the transport and logistics infrastructure is controlled by the military, which also has growing interests in real estate, banking and utilities.
Brands that continue to source from Myanmar will be violating established international due diligence instruments, may be violating laws such as the German due diligence law and the EU law on forced labour, and may be breaching sanctions. The report warns that these brands will face reputational, financial and legal consequences.

The economy of Myanmar has already contracted severely due to the military declaring war on its own people. The exit of global brands from Myanmar will cause further job losses, and global brands need to negotiate a responsible exit from the country, including paying compensation to workers.

IndustriALL general secretary Atle Høie said:

“We have been very patient in waiting for this report to confirm what we have been saying for a year already. There are now no more excuses: this report comprehensively shows that there is no way to conduct business responsibly in Myanmar. Those brands which are still operating in the country need to open negotiations for a responsible exit now.”

Violent attack against Myanmar unionists

The unionists were arrested on their way to a peaceful a protest, calling on the United Nations to recognize the National Unity Government of Myanmar and its permanent representative at the UN, U Kyaw Moe Tun.

A group of security officers in plain clothes appeared, using sticks to beat the protestors and firing a few shots.

29 protestors were arrested, including a few student and youth activists. Daw Zuu Zuu Ra Khaing and Daw Yamin Kay Thwe Khaig from IWFM, U Nay Min Tun and U Than Aung from Building and Wood Workers Federation of Myanmar (BWFM), and the driver of the Confederation of Trade Unions of Myanmar (CTUM) U Than Zaw, were among the 29.

CTUM president Maung Maung has issued a press statement condemning the inhuman and cruel attack, expressing his respect for the revolutionary comrades who are devoted to the non-violent democratic struggle.

“We demand that the illegitimate junta releases all protestors immediately. The international community must take action quickly, or the protestors will be interrogated and tortured by the military. Please support the democratic struggle of Myanmar workers; a peaceful protest is not a crime,”

says IWFM president Khaing Zar.

This is not the first violent attack against IndustriALL members in Myanmar. The junta killed a member of Mining Workers' Federation of Myanmar (MWFM), Chan Myae Kyaw, in March 2021.

Five months ago, a military vehicle rammed into a taxi carrying unionists, CTUM staff Khaing Thinzar Aye and IWFM member Ei Phyu Phyu Myint are still detained.

"The Myanmar junta must stop oppressing the people and workers. We wholeheartedly support the demand of the protestors that the NUG must be recognized at the 77th session of the United Nations General Assembly,”

says IndustriALL general secretary Atle Høie.

The 77th session of the UNGA is convening on 13-26 September. Together with other global unions, IndustriALL is urging the credentials committee and the general assembly to recognize NUG as the legitimate government.

IndustriALL is continuing its campaign for comprehensive economic sanctions against the Myanmar junta and that companies divest from Myanmar.

Kenya glass workers win after strike for living wages and safety gear

According to the collective agreement the company will pay the minimum wages of 15201 Kenyan Shillings (US$125) as announced by the government and provide work suits and safety boots. In May, the minimum wages were increased by twelve per cent, which the workers say is not enough to cater for living expenses. However, in addition to the twelve per cent, the employer agrees to further increases of five per cent per year in the next two years, and that the workers will receive housing allowances.

KGWU said one of the clauses in the collective agreement stresses that in the case of an injury caused by an accident at work, an employee will be entitled to compensation in accordance with the provisions of the Work Injury and Benefit Act (2007). Further, personal protective equipment that includes uniforms and overalls and safety boots will be provided free of charge to workers. The agreement also includes clauses to protect workers’ rights to maternity and paternity leave as well as retirement.

The agreement also establishes an occupational health and safety committee made up of the employer and union representative as per the labour laws. On HIV and AIDS, workers are protected against discrimination by the employer that is based on their HIV status. Further, awareness campaigns will be carried out on HIV and AIDS.

Maurice Okoth, general secretary of the KGWU says:

“Most of the workers at FEAC are casual workers, and the union is recruiting and organizing them. We are demanding that the casual workers be given permanent jobs so that they can enjoy job security and the other benefits that we negotiated in the collective bargaining agreement.”

“With the rising cost of living in Kenya, wages must also be increased to enable workers to look after their families. We commend KGWU for demanding better wages. Additionally, implementing occupational health and safety at work standards at FEAC is important for accident prevention and a safe working environment,”

says Paule France Ndessomin, IndustriALL regional secretary for Sub Saharan Africa.

FEAC is a Nairobi based Chinese owned company that manufactures aluminium and glass products for the construction industry.

South Asia’s wage crisis

According to the ILO Global Wage Report 2020-2021, labour productivity in South Asia rose between 2010 and 2019, but actual minimum wage growth trailed behind. Sri Lanka and Bangladesh have seen the biggest declines in real minimum wages globally. The report also highlights that in 2019, minimum wage in Bangladesh did not even reach the lowest international poverty line. Wages in India and Sri Lanka were also close to the mark.

Union experience show that even in workplaces where workers can negotiate a long-term wage settlement, in reality employers delay for months and sometimes years before finalizing the agreement. By then the wage rise has already fallen behind the inflation it was supposed to neutralize.

IndustriALL affiliates have relentlessly worked to secure better pay for workers. In Pakistan, after a sustained campaign by IndustriALL affiliates and workers in the carpet industry, the Punjab government announced a wage increase of 2,500 PKR (US$14) in June 2021. But the workers’ struggle did not end there as, despite the government order, employers refused to comply. It took six months before employers agreed to increase wages.

In August 2022, Pakistani affiliates stopped work for over a month in Faisalabad to demand a 16 per cent rise in wages, given the soaring inflation in the country. Pakistan's inflation rate shot up to 27.26 per cent in August, as the country struggled with massive floods compounding already surging prices.

Niaz Khan, general secretary of ILUCIP, says:

“Workers’ wages are not sufficient to meet the rising prices of food and fuel. Employers and governments must acknowledge this and take strong steps to address the issue.”

In Sri Lanka, affiliates have demanded a wage increase of LKR10,000 (US$34) for workers whose monthly salary is below LKR60,000 (US$206), and that the minimum wage should be raised from LKR16,000 (US$55) to LKR26,000 (US$89) per month. The demands have yet to be met. Food inflation in the country reached 93.7 per cent in August. According to the latest World Bank assessment, Sri Lanka is ranked fifth among the ten countries with the highest food price inflation in the world. Affiliates are organizing community kitchen programmes to address the massive food inflation.

Bangladeshi affiliates have demanded an increase in the national minimum wage, which was last revised four years ago and currently stands at 8000 BDT (US$84).

In Nepal, people have taken to the streets to protest a surge in food and fuel prices.

Contract workers at Singareni Collieries Company Limited in India, who earn a fraction of what permanent workers do, called for an indefinite strike for over their demands, which include a wage increase and regularisation of work.

SQ Zama, general secretary of Indian National Mine Workers’ Federation, says:

“It's a very sad situation that while company profits are soaring, workers’ salaries are increasing at a sluggish rate. What makes matters worse is that even for a modest wage increase, workers have to put up a strong fight.”

Apoorva Kaiwar, south-Asia regional secretary of IndustriALL, says:

“Representing workers, we need to fight to ensure that workers get their rightful share in profits. We cannot accept that on one hand profits are soaring while on the other hand workers’ wages are not sufficient to maintain decent standards of living.”

Photo: copyright : Marcel Crozet / ILO

Argentina passes legislation promoting the auto industry

On 1 September, proposed legislation to stimulate investment in the automotive auto parts industry and its value chain was voted on and unanimously approved in the Senate.

“The proposal emerged from the grassroots unions, the national trade union centres and the companies in the sector and is a firm commitment to the growth of a national industry (…). The legislation sets out an intelligent industrial development programme and a plan of action for the coming years. It is the product of a sector, and its people, that has not neglected what is important: guaranteeing and creating quality and permanent work,”

IndustriALL affiliate SMATA said in a statement.

Union representatives from SMATA and UOM have participated in various discussions to promote the bill since December 2019. The aim of the legislation is to ensure value chain integration, to make the sector more competitive and to attract greater investment. This will enable the country to industrialise, diversify and create more jobs.

The scheme sets out potential benefits for automotive investments, such as the early refund of value added tax (VAT), by establishing a reduction in the reimbursement period from six to three years and, in the case of depreciation of capital goods, from five to three years.

The law also provides for the creation of a programme to promote new investments and the establishment of a Mobility Institute, composed of members appointed by business chambers and trade unions.

Argentina’s economy minister, Sergio Massa, says:

“Our automotive industry has positioned Argentina as a strategic player on the regional stage. With production higher than pre-pandemic levels [50 per cent higher than in 2019], the prospects for the future are enormous. […] If the state, the workers and companies continue working together, the sector can generate a positive trade balance of US$400 million.”

IndustriALL’s deputy regional secretary, Cristian Alejandro Valerio, says:

“We applaud that unions in Argentina are key players pushing for industrial policies and legislation. The unions worked to urge business chambers and national, provincial and local governments to support this initiative.
It is essential that they be proactive, in light of the deindustrialisation in the region and the changes in the global automotive industry.”

Apple supplier in Malaysia must immediately stop union busting

Seven months ago, EIEUNR exposed union busting at Molex Malaysia, who are a supplier to tech giant Apple, as workers were preparing for a secret ballot on joining IndustriALL affiliate EIEUNR.

Management organized a town hall meeting with workers, threatening them not to vote for the union, or else they risk losing bonus and benefits.

The Industrial Relations Department initiated an investigation and put the secret ballot on hold. EIEUNR submitted a voice recording containing the threats of the company management, but has since declined the department’s request for interviews, as it may expose the unionists to further intimidation.

“We urge brothers and sisters all over the world to support this online petition. Without a win in the secret ballot the workers are denied their right to bargain collectively. The union busting is violating Malaysian law as well as international labour standards, but so far no stern action has been taken against the company,”

says EIEUNR general secretary David Arulappen.

“It is outrageous that Molex workers cannot enjoy the right to freely choose their own union. There is clear evidence of workers' rights being denied and Molex should address it immediately. At the same time, IndustriALL reminds Apple to check their own code of conduct about respect of workers’ rights in their supply chain and make sure EIEUNR is voluntary recognized without further delay at the Molex site in Penang,“

says IndustriALL electrical and electronics director Alexander Ivanou.

Molex is a multinational company focussing on electrical, electronics and fiber optic products. The company's code of conduct states that it adheres to the non-discrimination principle and lawful employment practices, including respect for workers' freedom of association. Apple is one of Molex’ major customers.

Unions at ArcelorMittal demand dialogue

Profits for 2021 and the first half of 2022 are the highest in ArcelorMittal’s history. This was achieved despite the war in Ukraine that hampers production in Ukraine, Kazakhstan and also Europe. At the same time, more and more blast furnaces are idle, and workers are forced into part-time unemployment with reduced pay.

Opening the meeting, Natalya Marynyuk from Ukraine reported about the desperate situation in Kryvyi Rih. Participants reassured their willingness to stand in solidarity with the steel workers at ArcelorMittal in Ukraine.

There was a vivid discussion on social dialogue in the company. Brazilian affiliates raised a lack of willingness from local management to enter into dialogue with unions and shop stewards. Several European affiliates complained about attempts from management to cripple the European Works Council by drastically cutting the number of delegates. In South Africa, a bitter conflict was fought earlier this year, ending only after a court ruled in favour of IndustriALL affiliates on strike for better wages and working conditions.

Management, represented by executive vice president and head of human resources Bart Wille and his successor, Stephanie Werner-Dietz, joined for two sessions to respond to questions and statements.

All participants expressed strong objections to the latest developments in health and safety, especially the rising number of fatalities in the company. Everyone agreed that the work of the joint global health and safety council needs to be intensified and optimized.

“We are happy to see Bart Wille and Stephanie Werner-Dietz in the meeting and we appreciate the readiness to have a dialogue with the unions. But in many countries, like in Brazil, there is not the same readiness, as IndustriALL affiliates from Brazil have told the meeting. We expect the company to enter into social dialogue on all levels, which is why we reiterate our demand for a global framework agreement.
“To this end, we want and need a global structure with a clear commitment from ArcelorMittal . We want more than nice words – we want real engagement! Following our long-term goals, we adopted a new declaration, submitted to group management after the meeting,”

said IndustriALL base metals director, Matthias Hartwich.

Health and safety in Armenia

The state labour inspectorate of Armenia was closed in 2015. In 2017, it was restored with limited function, and regained its power in 2021. There is a shortage of labour inspectors, as many left for other jobs. Currently, there is no higher education institution to train labour inspectors and participants in the workshop discussed the need to bring this up with Armenia’s ministry of education.

The general director of Rusal Armenal, an aluminum mill, spoke about the implementation of a health and safety programme where workers are invited to take part in the detection of health and safety risks to eliminate threats. The company has installed terminals through which workers can upload photos of dangerous places together with a description of the risks. A mobile application allows workers to do the same through their smartphones.

Participants decided on the possible establishment of a joint health and safety committee in the mining industry, as well as regular meetings to develop a health and safety policy for the industry, and to contact relevant ministries.

"The mining and metallurgical industry, along with energy and construction, are among the top three industries with the highest rates of injuries, including fatalities. We consider this seminar as the first serious meeting of social partners, opening up an opportunity to build a functioning labor protection system. IndustryALL is ready to provide support for this endeavor, but in the end it will depend on whether the parties manage to establish a permanent social dialogue,"

said IndustriALL regional secretary Vadim Borisov.

For the next meeting, it was decided to submit an assessment of the legislative framework for health and safety in Armenia, as well as for situations which cannot be resolved due to legal contradictions.

ILO confirmed its readiness to provide further assistance if the social partners continue to meet to resolve the issues.

Pakistan’s garment workers need safe factories

In October 2021, the first ever code of practice for the textile and garment industry was adopted at the ILO after negotiations between governments, employers and unions. The new code of practice contains concrete guidance on improving health and safety.

The International Labour Conference, held in Geneva in June, added health and safety to the ILO fundamental principles and rights at work. This means that that all ILO member states commit to respect and promote the fundamental right to a safe and healthy working environment, whether or not they have ratified the relevant ILO Conventions.

On a country level, there is still a lot that need to happen. Pakistan is one of the countries where the situation needs to improve in order to avoid further fires and building collapses.

The International Accord, devised after the Rana Plaza industrial homicide in 2013, has been instrumental in making Bangladesh’s garment and textile factory safer. The groundwork for implementing it in Pakistan has begun.

“Today, we honour those who died and were injured in the fire at Ali Enterprises,”

says IndustriALL general secretary Atle Høie.

“Garment workers need safe factories; safety is a right, not a privilege. We know the difference the binding mechanisms of the International Accord make to the industry and we look forward to working with brands, manufacturers and our unions to implement it in Pakistan."