South Africa: union in historic court victory against precarious work

This is a major victory for workers after years of a bitter union campaign against labour brokering. The victory is the result of a relentless campaign by the National Union of Metalworkers of South Africa (NUMSA), who took the issue to the courts.

After losing the case in the Labour Court of Appeals, labour broking company, Assign Services, took the matter to the Constitutional Court where the court held on 26 July that the worker’s employer is where they perform their duties, and not with the labour broker who placed them. What the court ruling means for temporary workers is that those earning $15,500 per annum or less become permanent after three months as they will be employed by the company where are working.

Labour broking is an outsourcing practice that involves a company hiring labour on behalf of “client” companies. The outsourcing company then makes a profit by paying low wages and charging high fees to the “client” companies. IndustriALL Global Union affiliate, NUMSA, condemned this practice and for many years, with other unions, argued that the client companies should hire the workers directly instead of using this exploitative system where the workers had no benefits including pensions and medical insurance.

Under broking arrangements, the workers also do not have job security as they are on short contracts that can be terminated at any time. The labour brokers have also been refusing to provide any benefits saying they were not the employers, yet they were the ones who provided contracts.

Says Irvin Jim, NUMSA general secretary in a statement:

“Our experience with labour brokers is that they are extremely abusive and expose workers to low wages and terrible working conditions. We hope this decision will be the death knell of the entire industry and we will continue to fight for a total ban of labour brokers.”

Paule-France Ndessomin, IndustriALL regional secretary for Sub Saharan Africa welcomed the court ruling:

“This is a victory for thousands of workers who are employed by labour brokers. We applaud the court decision for providing a legal way to protect workers’ rights to permanent jobs. Labour brokers cannot continue to make profits from the precarious conditions of workers.”

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Energy unions demand Just Transition at world conference

More than 200 representatives from 70 trade unions gathered in St Petersburg, Russia, on 25 and 26 July for IndustriALL Global Union’s world conference for the sector, under the theme “Building Union Power in Energy Industries”.

The energy sector is facing rapid changes in national energy policies and structures to meet climate change emission targets and adapt to new technologies that substantially change the skills required of energy workers. This is taking place against the background of a growing demand for energy, privatization and increasing precarious work in the sector.

Just Transition, in the context of sustainable industrial employment, is needed to ensure changes to the energy sector are implemented with fairness and justice to workers and their families and communities.

Alexander Korchagin, president of the host union, the Russian Oil, Gas and Construction Workers’ Union, said that during this very important time for the energy industry, trade unions are the best way of protecting workers’ interests.

Speaking at the conference, IndustriALL general secretary, Valter Sanches, said that energy is a basic right, but as a result of privatization, multinational companies have commercialized energy and created monopolies.

“The most common electricity model is run by private companies with poor public regulation,” said Sanches. “Multinational companies are so powerful and governments are afraid of confronting them.”

Discussions at the conference highlighted the growing problem of precarious work, which affects all countries but is particularly acute in countries like Nigeria, where nearly all operational workers are on indirect contracts. Other countries, such as Ivory Coast, cited the large differences in pay, working conditions and benefits between permanent and non-permanent workers. Unions must increase efforts to organize precarious workers, and include precarious workers in collective bargaining agreements where possible, said participants.

Increasing cooperation in trade union networks was cited as key to building union power through solidarity support and the exchange of information amongst unions across borders. The energy network in Latin America has been particularly successful in helping to set up new trade unions in the sector.

Participants discussed IndustriALL campaigns in the sector, including Shell, which tries to play workers at different locations against each other and refuses to negotiate with IndustriALL on a global level. It also noted the severe trade union violations in Algeria, as well as the ongoing campaign to ensure rights for DNO workers in Yemen.

In a lively discussion on Industry 4.0, lifetime learning, education and training – paid for by the company – was highlighted as vital to workers. Trade unions need to be partners in the decision making process when it comes to the technological transformation of energy production.

Participants approved a new action plan for the sector, identifying strategies to; produce a Just Transition; build union power; stop precarious work; increase women’s participation and representation; improve health and safety; confront global capital and create sustainable industrial policy.

The conference also offered deepest condolences to Greek workers and people affected by deadly forest fires in Greece, as well as communities affected by a lethal dam burst during the construction of a hydroelectric plant in Laos.

The conference also made solidarity statements in support of worker struggles at ExxonMobile in Australia, National Grid in the United States and Total in the UK.

Frode Alfheim from Industri Energi (Norway) and Apsorn Krissanasmit from PTT LU (Thailand) were re-elected as co-chairs of the Energy Section at IndustriALL.  Gwenne Farrell from MOVE-UP (Canada) was elected vice co-chair for the Electricity Section and Valeriy Matov from Atomprofspika (Ukraine) was elected vice co-chair for the Nuclear Section. 

IndustriALL’s general secretary, Valter Sanches, said:

“The energy sector goes through the same problems as other sectors such as violations of rights, union busting and precarious work. What is particular to the sector is energy transition. We must build union power so we can have a seat at the table with governments and companies to create sustainable industry policies at the national level that guarantee Just Transition.”

Brazil's trade union centres seek to further the country's development

The CUT, CSB, CTB, Força Sindical, Intersindical, Nueva Central and UGT have set out an agenda aimed at getting Brazil back on the path to development by promoting democracy, generating high-quality jobs and ensuring social justice. The agenda also seeks to tackle informal work arrangements, precarious work, and the lack of job security.

"With the priority agenda for the working class, we have brought our trade union centres together to demonstrate our intention to mobilize workers so that they take assertive action. We have adopted a forward-looking approach to the challenges we face, mindful of the responsibility we share in building our Country and our Nation",

states the document.

The agenda aims to steer the national debate that will take shape in the three months leading up to the presidential election in October. The trade unions hope that the candidates will commit to the agenda's emergency measures to get Brazil's economy back on track and create jobs.

The 22 recommendations include measures to: tackle unemployment, which now affects 28 million workers; create jobs for all members of society, and particularly young people; restart infrastructure projects; and put in place policies to protect the unemployed.

In addition, the union centres will hold a national day against unemployment on 10 August. They will campaign against the reforms introduced by Michel Temer's government and demand that steps be taken to get the country back on track and tackle unemployment. There will also be protests against the rise in the prices of oil and its derivatives, and to advocate for workers’ rights to security.

On the day, employees will hold work stoppages, followed by demonstrations across Brazil's different states to campaign for the proposed economic measures. By joining forces in this way, the centres will show that the union movement is capable of collectively organizing workers at a time when their rights are under threat.

The trade unions condemn the dismantling of social policies and the privatization and handing over of state assets that are of strategic importance for the future of the country. As such, they are stepping up their opposition to the reforms, which threaten workers’ fundamental rights.

"At IndustriALL Global Union, we are backing this key initiative by Brazil's trade union centres to unite the working class. We also support the national day against unemployment on 10 August. It is an important step in the fight against the actions of an illegitimate, coup-installed government that threaten workers' rights. We urge our affiliates to express their support for this event",

said the IndustriALL general secretary Valter Sanches.

Iraqi unions condemn violence against protestors

Mass protests broke out two weeks ago in Basra, the city in southern Iraq central to oil production, and soon spread to other provinces. Protests were sparked by high unemployment, poor public services and corruption. There is increasing outrage that huge amounts of oil wealth is extracted from the country while people live in poverty.

Protestors demand that the government provide them with water, electricity, and other essential services, reject the current confessional political system and demand a representative national government. Under the current system, power is shared through a quota system between the major groups in society, the Shi’a, Sunni and Kurds. The protestors believe the system leads to sectarian divisions and corruption.

The protests have been brutally suppressed by the security forces, with 13 people killed and 81 arrested. The government cut off access to the Internet, which has made it difficult for Iraqi activists to spread news of the situation.

Speaking on Iraqi national television, IndustriALL executive committee member and president of the Basra Trade Union Federation, Hashmeya Alsaadawe, said:

“Against whom are these military troops and arms directed? To the unarmed citizens who call for their legitimate demands of a dignified life! They only need water, electricity and job opportunities.

"Who should we address our demands to? The local government doesn’t respond! I called for peaceful protest. There is no hidden agenda. However, we don’t exclude the possibility that some may misuse the situation.”

In a statement signed by a number of IndustriALL Global Union’s Iraqi affiliates, the Conference of Iraqi Federations and Workers Unions said:

“The public protest ongoing in many provinces in our country is a consequence of the grave crisis affecting our society, which is a result of racism, sectarian conflict and the wrong economic and social policies.

“The protest demands not only drinking water, electricity to protect from summer heat and winter cold, an end to unemployment, hunger, the deprivation of services and life below the poverty line. It also demands justice against the rule of oligarchs who break down the national and social fabric of the Iraqi people by force and cruelty.”

IndustriALL general secretary Valter Sanches said:

“Iraq is a tremendously wealthy country, and its people are entitled to a fair share of that wealth. The powerful Iraqi trade union movement has thrown its weight behind the demand for a decent life and an end to corruption. The international movement is proud to stand by them.”

Recently, the Iraqi elections were won by the Sairoon (Progress) alliance, which includes left wing parties and was propelled to power by the same forces that are now in the streets. The alliance has not yet been able to form a government.

New democratic trade union federation to be established in the Mexican automotive sector

The new federation is composed of ten organizations representing workers in the automotive, auto parts, logistics, rubber and aerospace industries. Their aim is to ensure that workers enjoy the right to freely join a genuine trade union of their choice which can represent them with dignity and defend their rights.

Andrés Manuel López Obrador, who was elected President of Mexico on 1 July, pledged throughout the election campaign that he would respect the autonomy of all trade unions and that his government would work to promote trade union democracy and workers' rights.

This gives the unions hope that the new democratic trade union federation will bring about a genuine social dialogue with the government. IndustriALL's coordinator in Mexico, José Luis Rodríguez Salazar, had this to say:

"Civil society in Mexico has expressed its rejection of the corruption and impunity that exists at all levels of government. With the election of a new government, we have an opportunity to bring about a change in the social, political and economic life of the country. Now it is up to us, the Mexican workers, to come together and support this new project and to transform the world of labour".

Members pledged to work with the newly elected President and the labour authorities for the benefit of the working classes and to fight against harmful practices such as "protection contracts".  

"Protection contracts", which are the dominant form of collective bargaining agreement in Mexico, are basically agreements negotiated between corrupt company unions, employers and government authorities. Their purpose is to maintain exploitative working conditions that go against workers' interests.

"If we succeed in taking advantage of the new scenario that has been created at the national level and propose new forms of labour organization that represent the true interests of workers, we will be creating a tool which will put an end to the shameful collective bargaining farce that protects only the interests of employers", added Rodíguez.

A working group has now been set up in the state of Puebla which has been tasked with preparing the legal documents that will allow the new union federation to be registered and become operational. The federation will seek to play a greater role in all decision-making regarding labour and industrial policy in the country.  The federation also hopes to be able to play an active role in discussions on the North American Free Trade Agreement (NAFTA) as it believes that no negotiations regarding the treaty should take place until the newly elected President of Mexico assumes power in December 2018.

Valter Sanches, the general secretary of IndustriALL, made the following remarks:

"We welcome the decision to establish the new Federation of Democratic and Independent Unions of Mexico. IndustriALL Global Union, which has supported this initiative from the very beginning, will continue to provide its full support in the fight against protection contracts and in defence of freedom of association for all workers".

Sustainable energy policies vital, say electricity and nuclear unions

Yury Ofitserov, president of the All-Russian Electric Trade Union, welcomed more than 100 participants from 25 countries to IndustriALL’s global meeting of electricity and nuclear sectors.

Energy policies need to be consistent and cannot change with every government, said unions at the meeting.

Electricity consumption has more than doubled since 1990 and there are still 1.1 billion people without access to power. However, despite the growing demand for electricity, it will require fewer workers than before. Many participants said securing a Just Transition for workers whose jobs are threatened is a major challenge.

Union representatives debated the impacts of deregulation, privatization and market liberalization on employment and unions. Before privatization there were only ten companies in the electricity sector in Japan, now there are 500, while electricity prices have increased 16 per cent for households and 21 per cent for industry.

In Mexico, 44,000 workers lost their jobs when the public electricity supply was privatized in 2009.  Unions have been fighting this decision every since. Elsewhere, in Zimbabwe, 30,000 workers have been laid off following privatization and the people who are kept on are mostly young and inexperienced with low salaries.

The second half of the meeting was devoted to nuclear energy, which generates 10.6 per cent of the world’s energy supply. However, in some countries, nuclear energy dominates, such as in France where 220,000 workers are employed in the sector. Nonetheless, funding and investment is needed to maintain plants and jobs, and France is looking to decrease its reliance on nuclear energy.

While Turkey is to build three new power plants, elsewhere, countries are phasing out nuclear power. For example, in Belgium, 7,000 jobs will be lost when its three power plants are decommissioned by 2025.

Igor Fomichov from the Russian Trade Union of Nuclear Power and Industry Workers said workers in the entirely state-owned sector are highly skilled and paid above average. The industry also generates many jobs in the building of infrastructure for plants. He said that the government has to make sure that nuclear power plants are safe because humankind would never forgive another catastrophe.

Ryouichi Hagiwara from Denryoku Soren union in Japan, said there had been considerable progress in the clean up seven years since the Fukushima nuclear disaster. He highlighted the need to design and build better power plants and have a proper decommissioning process.

In a discussion about INWUN – the International Nuclear Workers’ Unions Network, IndustriALL’s assistant general secretary, Kemal Özkan, said that its work needed to be scaled up to include the whole supply chain of the nuclear sector, including countries where uranium is produced.  There is also a need to exchange information between countries who have nuclear power and those that are starting out in nuclear, such as Turkey and Kazakhstan.

Reflecting on the meeting, which was held on the eve of IndustriALL’s world energy conference, also in St Petersburg, Kemal Özkan, said:

“It is IndustriALL’s strategy to build union power in the energy industry’s sub-sectors through networks. Our affiliates in the electricity and nuclear sectors demonstrate clear commitment towards international cooperation and solidarity in these important parts of the energy industry. Following the high quality inputs and debates today, we have now a clear way forward in advancing global solidarity in nuclear sector and its supply chain.”

Benin unions agree to cooperate

IndustriALL Global Union affiliates, FENOTHAC and FESYNEME, who organize in the garment and textile, and energy and mining sectors respectively, met in Cotonou as part of a programme by IndustriALL to build union strength in the country.

They agreed that the right to strike must be defended in all sectors, and that the unions will campaign against the government’s intention to ban the right to strike in  oil and gas and electricity, which it says are essential services. Further, workers' participation in union activities should be increased, a national council formed, joint activities carried out, and communications improved.

The garment and textile sector has been in decline with most former factory workers now employed in the informal sector, where more than 90 per cent of the workers in Benin eke out a living. So, most of the FENOTHAC members are in the small-scale traditional tailoring sector. On the other hand, mining is picking up and exports for gems and precious stones have begun.

Most petroleum and energy workers work in the distribution of petroleum products and electricity, and work for the state-owned SONACOP which employs 995 workers. However, 700 of the workers are employed under precarious conditions of low pay and no benefits. Permanent workers earn 300,000 CFA ($532) as compared to contract workers who earn 44,000 CFA ($78).

Charles Kumbi, IndustriALL project officer for Sub Saharan Africa, who was at the meeting said:

“We welcome collaboration amongst affiliates because it builds union strength, and also support union joint actions aimed at improving working conditions and ending precarious work.”

Benin is amongst the top cotton producers in Africa, with the crop’s exports contributing up to 40 per cent of foreign exchange receipts, and 12 per cent of GDP. Additionally, 60 per cent of the national fabric is made from the local cotton. With over 300,000 cotton producers supporting over two million people, cotton has the potential to reduce the high levels of poverty. For instance, if the cotton-to-clothes supply chain is promoted through government policies this can lead to investments in textile and garment factories with potential to create thousands of jobs and spur industrialization.

BASF: South American workers analyze impacts of Industry 4.0

Before meeting with the company, IndustriALL Global Union’s South American regional trade union network met on 9 and 10 July to prepare. The network members expressed their solidarity with the former president of Brazil, Lula da Silva, and supported the campaign to demand his freedom.

BASF is a leader in the global chemical sector in the implementation of cybernetic technologies, which are already a reality for its employees worldwide. The network discussed what industry 4.0 will bring to the company's workers in South America. Great changes are expected, but the network wanted to better understand and articulate the issues and their impacts.

The network noted that the new industrial revolution completely changes the distribution of jobs, social roles in different countries, and union organization. They agreed to continue networking and promoting strategies to work with new technologies.

Sergio Novais, one of the founders of the network, as well as the national network in Brazil, and secretary of administration of CNQ/CUT said:

"A union network of workers is a great form of solidarity. One of the challenges is to try to organize those who work from home, teleworkers, due to the digitalization of employment”.

Network coordinator and political coordinator of Fetquim, Airton Cano, said:

"In addition to including potential threats to the world of work and to all countries involved, the discussion on Industry 4.0 should have a focus on social dialogue".

The participants agreed to establish productive social dialogue to ensure that the transformations of digitization and industry 4.0 are carried out fairly for workers.

At the expanded social dialogue meeting on July 11-12, BASF high level officers from headquarters in Germany, as well as South American regional and country managements, were present. IndustriALL German affiliate IG BCE and the chief of works council from the company’s home in Ludwigshafen joined the meeting.

The agenda included developments at BASF globally and regionally, with perspectives for the future. An intensive debate was held on digitalization, considering the company’s recent practices.

Sinisha Horvat, chair of the works council and member of the supervisory board of BASF, explained how Industry 4.0 is handled in Germany, with joint union-management committees working together to prepare workers and tackling the challenges.

Francesco Grioli, IG BCE board member, underlined the importance of supply chain management given the developing international norms and standards. Grioli referred to the cooperation with the unions in corporate social responsibility practices.

Kemal Özkan, IndustriALL assistant general secretary said:

“It was impressive to see such high quality and mature discussions on Industry 4.0 by the network, as well as the level of social dialogue with the company.

"New challenges and opportunities need to be handled at company level and this example of BASF in South America is important”.

US: locked out National Grid workers denied healthcare

National Grid, which distributes electricity and gas, locked out union members in Massachusetts on June 25 after contract negotiations broke down, and cut off workers’ access to healthcare.  The workers maintain natural gas supply lines to private homes, businesses and public buildings across the state.

When the existing contract expired on 24 June, the workers offered to continue to working under the same conditions while negotiations continued, but instead the company locked them out. The company is using managers and contractors to maintain gas supplies, a practice which the union has denounced as dangerous, as gas work requires experienced professionals.

After three weeks of lockout, councilors in a number of towns and cities across the state have voted to suspend non-emergency gas work due to public safety concerns, after more than twelve safety violations by inexperienced managers and contractors were reported to public authorities.

Despite making tremendous profits and benefiting from recent tax cuts, National Grid is determined to introduce changes that will make workers pay significantly more for their health coverage and cut benefits for new staff. The company recently received a tax cut from the Trump administration, and will raise additional income with a rates hike for consumers.

Brian Harvey, a member of Local 12003, recently found out that his young son had been diagnosed with stage three cancer. He was locked out of his job and his family’s healthcare insurance was cut off in the same week his son was scheduled for his first chemotherapy treatment.

He said:

“You’re basically just a number to them. What I would say to National Grid is, ‘how greedy can you be? And is it worth it to you, the more money you put in your pocket, is it worth it to hurt all these people?’”

IndustriALL Global Union energy director Diana Junquera Curiel said:

“Cutting health insurance is despicable behaviour by the company. They are threatening family health in an attempt to force their employees to accept worse conditions.

“This is a terrible example of heartless corporate greed and reckless disregard for public safety. National Grid needs to reinstate health insurance, end the lockout and negotiate in good faith with its workforce. IndustriALL and its affiliates will remain firm in their support for these workers.”

IndustriALL general secretary Valter Sanches sent a solidarity letter to the USW.

National Grid was formed when UK electricity generation and distribution was privatized in 1990. The company is listed on the London (LSE) and New York (NYSE) stock exchanges. In the US, it provides gas and electricity to communities in the North East after acquiring a number of regional utilities companies.