The Spring Meetings of the IMF and World Bank must produce a plan to coordinate economic stimulus, public health action and debt relief – Statement by Global Unions, April 2020

COVID-19 is creating a crisis of unprecedented proportion. As the shocks caused by the public health crisis ripple through global supply chains and depress demand, layoffs and loss of income are devastating working families. The pandemic lit a match next to an existing powder keg of debt burdens, inadequate financial and labour market regulation, increasing inequality, and years of austerity that undermined public health, social protection and the ability of states to fulfil their human rights obligations. The IMF and the World Bank should join governments in executing coordinated and sustained stimulus as the launchpad of a reformed multilateralism that puts working people, shared prosperity and the real economy first.

In this statement, Global Unions outline urgent measures to overcome the crisis and lay the groundwork for an inclusive recovery that achieves the Sustainable Development Goals (SDGs).

Read the statement in full here: Statement by Global Unions, April 2020

Indonesian unions demand factory shutdown

By the end of last week, 430 garment workers had been dismissed, another 1,000 workers were asked to go on paid leave and 800 workers were asked to go on 50 per cent paid leave for a fortnight.

“As the garment sector is struggling to get raw materials and sales have dropped, companies now say layoffs are inevitable. But plant-level leadership of GARTEKS managed to negotiate for 100 per cent or 50 per cent paid leave.

“The government’s economic stimulus package must help workers to put food on the table, electricity fees and income tax should be waived. Local labour offices should carry out supervision to avoid arbitrary actions from the company to dismiss or furlough workers,”

says Trisnur Priyanto, GARTEKS general secretary.

IndustriALL regional secretary Annie Adviento welcomes the Rp 405 trillion (US$24.6 billion) budget announced by Indonesian government, but urges the Jokowi administration to strengthen the social protection system so that it acts as social safety net for all workers, particularly contract workers with the least protection.

Yet, some workers fear for their safety in the workplace.

Workers at PT Coats Rejo Indonesia are worried about their health and safety after it was announced that a worker had contracted Covid-19. SPN is demanding that the company temporarily stops operations in order to avoid spreading the virus among workers.

“Plant-level SPN leaders has met with management several times to raise concerns. Management’s response is that as the Indonesian government has not announced a lockdown, they have to wait for instructions from Coats’ headquarters,”

says Iwan Kusmawan, chairperson of IndustriALL Indonesia council.

IndustriALL has written to Coats’ headquarters, raising concern.

“It is of paramount concern that workers are protected. Through our Asia Pacific Coats trade union network we continue to call on Coats to convene a social dialogue meeting. Now, more than ever, communication and transparency are needed,”

says Christina Hajagos-Clausen, IndustriALL textile and garment director.

Sintracarbón ends collective bargaining dispute with Cerrejón

On 28 March, just two hours before the end of the ten-day deadline for setting the time of the strike at Carbones de Cerrejón Limited, owned by multinationals Glencore, Angloamerican and BHP, Sintracarbón announced that it was withdrawing its list of demands for the renewal of the collective employment agreement.

This means that the collective employment agreement for the 2018–2019 period will be extended until 30 June 2020. Under Colombian law, the union will be able to submit a new list of demands in May. The union says that it was not able to reach an agreement with Cerrejón during the 60-day negotiating period because the offer tabled by the firm would have reduced workers' benefits.

In a statement, Sintracarbón says:

"Cerrejón wanted to reduce the overall cost of the collective employment agreement by freezing, cutting and eliminating workers' benefits, many of which we had successfully fought for during previous campaigns."

The union had suggested possible ways of advancing the negotiations and proposed settlement options, but Cerrejón would not compromise. The union's negotiating committee withdrew the list of demands and cancelled the strike:

"The factors taken into consideration in our analysis of the current situation include: the public health crisis caused by coronavirus (COVID-19), mandatory confinement, collective vacation measures, Cerrejón's reduced operations, price declines and the company's cost-cutting approach.

Because of these factors, the strike would have benefited the company more than the workers. And under the circumstances, it would have been difficult to hold an on-site strike with verification by the Employment Ministry."

IndustriALL's assistant general secretary, Kemal Özkan, says:

“Sintracarbón has a long history of fighting for the rights and interests of coal miners, and given the crisis caused by the coronavirus pandemic, this decision was a prudent one. We once again call on Cerrejón to act with common sense and to reach an agreement with Sintracarbon – one that meets the demands and expectations of union members."

Namibia: 1,500 workers to be retrenched as mine closes

Nambian Broadcasting Corporation news report

The Mineworkers Union of Namibia (MUN) says the decision was made before exhausting alternatives to continue operations, including selling the mine. MUN argues that the mine which has a supergene zinc ore body, mines zinc oxides and a refinery would not have problems finding other investors.

The mine closure will lead to a loss of over 1,500 jobs. One of the contracted companies, Basil Read, whose contract was terminated will retrench about 400 workers.

Skorpion Zinc said they had to bring forward the suspension of mining due to the COVID-19 partial lockdown in Namibia from 27 March to 17 April.

The MUN Skorpion branch chairperson, Peterson Kambinda says:

“Despite the implementation of a tripartite agreement to maintain harmonious labour relations, ensure job security and business accountability in the labour and employment sector during the State of Emergence period, Vedanta Resources (who owns the mine) has made a decision that would result in job losses to thousands of Namibians.

”The government of Namibia must intervene to stop the retrenchments.”

Glen Mpufane, IndustriALL mining director, says:

“Globally, mining companies are developing COVID-19 protocols to safeguard jobs, and most are putting moratoriums on retrenchments in the face of the pandemic. It is outrageous that Vedanta Resources announces retrenchments amid this crisis; it is out of sync with what is happening globally and should be condemned.”

According to Skorpion Zinc, pit failures at the opencast mine are to blame for the closure as they make mining unsafe. A safe entrance cannot be constructed because of rocks not strong enough to support openings or heavy loads without collapsing.

But the MUN says that there are three other mines operating in the area under the same geological formations. The union says other safer mining methods can be explored to save jobs.

Malaysian unions fight for workers during lockdown

On 21 March, IndustriALL affiliate Electronics Industry Employees’ Union Southern Region (EIEUSR) lodged a complaint with the police against MFS Technology (M) Sdn. Bhd. The company defied the Movement Control Order of the Malaysian government instructing all non-essential companies to shut down between 18-31 March, due to the outbreak of Covid-19.

Idawati Idrus, deputy general secretary of EIEUSR and co-chair of IndustriALL Malaysia women committee, says:

“Together with the union members, mostly women, we lodged complaints with the police and the Ministry of International Trade and Industries (MITI). Direct action can empower our members and make them brave.

“Although the police closed the factory immediately, the factory resumed operations after two days by obtaining approval from MITI. But only ten per cent of the workers returned to work; they were scared of being infected.”

IndustriALL Global Union regional secretary Annie Adviento applauds the action.

“Workers have the right to refuse to work if the work environment is unsafe and unhealthy. The government and the employer must respect occupational safety and health.”

The National Union of Transport Equipment and Allied Industries Workers (NUTEAIW) sent a letter to the headquarter of Robert Bosch, disputing the company’s decision to continue production.

“Our members are dissatisfied because products of the company, mainly automotive accessories, are not regarded as essential services. Despite this, the company got approval from MITI. We demand that the factory close during the lockdown, which has been extended to 14 April,”

says Nadesan Gopalkishnam, NUTEAIW general secretary.

A broad coalition of 58 trade unions and NGOs, the Labour Law Reform Coalition, has put forward a demand that the Prime Minister introduce 80 per cent guaranteed wage subsidy as a step to save jobs and transform the Malaysian social protection system.

Unions warn of looming COVID-19 catastrophe in Zimbabwe

Martin Chikuni, ZEWU general secretary, says:

“Whilst Zimbabwean statistics to date of infected people and confirmed deaths due to the coronavirus seem low; we believe there is a looming possibility of a massive catastrophe given our already compromised health delivery system. The situation is worsened by the socioeconomic crisis, which has gripped the country for two decades.

“ZEWU is concerned that Zimbabwe’s collapsed health delivery system, underequipped hospitals and the complex equipment required to combat COVID-19 are clearly beyond the country’s capacity. How will Zimbabwe handle a crisis of this magnitude?”

Official statistics from the Ministry of Health and Childcare say as of 31 March it conducted only 274 tests. The figures also state that over 16,000 travellers who arrived from countries with known COVID-19 cases were neither screened nor tested.

An infectious diseases hospital in Harare identified as a treatment centre for the coronavirus that it had no ventilators. The hospital is now under renovations.

One of the COVID-19 prevention methods is washing hands with soap and water, but Zimbabwean cities, including the capital Harare, have no regular water supplies. The residents have resorted to digging wells.

Joseph Tanyanyiwa chairperson of the Zimbabwe IndustriALL national coordinating council which represents five affiliates in the chemicals and plastics, energy, garment and textile, leather and shoe says Zimbabwe’s response to COVID-19 is ad hoc and reactive.

“It seems the strategy for the lockdown is for people to stay at home, and only when they get sick will they be screened and tested. The lockdown will be difficult for the informal workers who are the majority. Most of them don’t have contingency plans and 21 days is a long time without an income.”

The union says it is worried that the country continues to face shortages of basic food, like the staple maize meal or mealie-meal and fuel.

“People are stampeding for basic commodities, thereby making it difficult to exercise social distancing. Shortages of fuel and the use of public transport, especially overloaded buses, compromise the situation.”

ZEWU is campaigning for paid leave and job security for workers during the 21-day lockdown. The union also wants employers to provide personal protective equipment to slow the spread of the coronavirus as most of its members are from workplaces where they interact with the public.

The union is also providing information on COVID-19 to its members and have set up a common communications centre for members to contact the union when they need help.

Japanese metalworkers secure wage increase

Labor unions at small and medium-sized companies negotiating with employers based on the results of the negotiations with large companies.

Unions at large companies, which belong to the industrial federations that comprise the Japan Council of Metalworkers' Unions (JCM), submitted written demands for wages and working conditions to companies in February, upon which negotiations followed.

On 11 March, almost all unions had received responses.

In a statement on the results achieved in the 2020 Shunto, JCM president Akira Takakura, says:

"In recognition of the absolute necessity to transform the Japanese economy to achieve a robust economic structure supported and led by consumer spending, unions demanded that the wage increase received over the last several years be maintained, as a means of investing in people.

"The cooperation and efforts made by union members are absolutely necessary to achieve  industrial and company development. Unions strongly demanded that management present their responses to dispel concerns and that everyone face the adverse situation together.

"Both the global and the Japanese economies are seeing conditions deteriorate day by day, and moreover the future impact of Covid-19 is uncertain at the moment. However, the fact the many unions managed to achieve pay raises equivalent to or greater than last year proofs that labour and management have fulfilled their roles in avoiding hitting a new economic low.

"Increasing wages and improving working conditions across the entire value chain is a vital component for strengthening the competitiveness of the metal industry. Through the Shunto, we will provide support seeking to raise overall wage levels and rectify disparites by expanding the number of unions able to secure wage increases, and by obtaining pay raises surpassing those at large companies."

Argentinian union condemns LafargeHolcim for exposing workers to COVID-19

AOMA general secretary and IndustriALL Global Union Executive Committee Member Héctor Laplace sent a letter to Holcim's Director of Human Resources Cecilia Glatstein, saying that the cement company is ignoring the mandatory social isolation decree.

In compliance with the provisions, the union had accepted that the minimum number of guards needed to protect machinery and facilities would continue to work.

Laplace pledged to continue discussions and that work currently in progress was to be completed. Despite the union's willingness to engage, the company decided to appeal to the local authorities.

"Holcim asked the Argentinian Ministry of Industry and the Ministry of Labour of the province of Córdoba to intervene, demanding that production continue without interruption with a view to maintaining full output,"

says Laplace.

Holcim managed to get the authorities to waive the isolation requirement for all workers at the Malagueño cement plant in order to pursue its business activities, without any thought for the health and safety of its workers.

“We are outraged by the decisions made by the provincial authorities to authorize the Holcim to continue producing at 100 per cent. Neither the union nor our members are prepared to be exposed to the dangers of the pandemic.

“The only thing Holcim cares about is to make money and carry on its business,”

said the AOMA general secretary.

Mario Vani, IndustriaALL regional secretary, says:

“While the country is facing an emergency and is doing everything it can to save lives, the company’s number one priority is to keep its profits flowing and to preserve its capital.

“We stand in solidarity with the workers and our affiliate. We hope that the local authorities will comply with the presidential decree, and that LafargeHolcim shuts down its operations immediately and in so doing shows that it is protecting the lives of its workers."

Belarus: work contract not renewed over union activity

For the past six months, union leaders and members have been trying to obtain safety certification of their jobs at Redpath Deilmann, according to Belarusian legislation. So far, the company uses loopholes in the legislation and avoids implementing the certification of workplaces.

Mikalaj Valadzko is a highly skilled specialist with no disciplinary record. One month ago, a trade union group of workers at Redpath Deilmann registered with BITU, and Mikalaj Valadzko was elected chairperson of the group.

The events show that the non-renewal of Valadzko’s contract is an act of retaliation for his trade union work, and constitutes a case of discrimination based on trade union membership.

In a letter to Redpath Deilmann management Valter Sanches, IndustriALL Global Union general secretary, says that the decision appears to be a very selective interpretation of Belarusian and in contradiction with the national labour legislation the company observes in its operations in Germany.

According to Redpath Deilmann, Mikalaj Valadzko’s contract was not renewed on the basis of the nationally existing system of short-term contracts.

“There is ample evidence to prove that the non-renewal of his contract is in retaliation for his trade union work. We urge you to immediately reconsider your decision and renew the contract of Mr Valadzko.

“We also urge you to certify all the workplaces in accordance with the Belarusian legislation and apply all the safety measures required by national legislation,” says Valter Sanches.

ACT brands commit to responsible business practices in Bangladesh

In the majority of garment factories in Bangladesh, workers are yet to receive their due payments for March. Union leaders in the IBC stress that workers are vulnerable, as many factories are closing over fears of the virus outbreak, and in some cases laying off workers.

The IBC is urging brands to pay for orders that are wholly or partially completed, and if possible to consider paying in advance.

According to BGMEA, 907 million pieces of apparel worth US$2.87 billion have been cancelled or suspended by brands and buyers that source from Bangladesh. This has a direct impact on the 2.09 million workers in the country’s textile industry.

If brands don’t take ownership of items already produced and ready to be shipped  and pay at least the production cost of orders in the process of being manufactured, it will be nearly impossible for employers to pay workers’ wages, according to the BGMEA. 

The majority of the stores of the ACT brands, inlcuding H&M, Inditex, PVH, C&A, Primark, Next, Lidl, Tesco, Tchibo and others, are closed in Europe and North America, leading to liquidity crisis.

However, most agree in principle to pay for completed orders, and are discussing various incentive and stimulus packages for suppliers to ensure workers are paid.

The government of Bangladesh will make available 50 billion Bangladeshi Taka (US$581,000) late April. However, this will be enough to pay workers’ wages for one month and it is a loan, which the employers have to pay back with 2 per cent interest.

IndustriALL South Asia regional secretary, Apoorva Kaiwar, says:

“We would like a written agreement with trade unions on how the government’s allocated fund can be used for paying workers. We are also urging the brands to contribute to that fund.”