Indonesia – unions demand review of wage setting law

Previously, a tripartite body of local government, employers and labour unions determined the minimum wage in each region every year, based on standard living costs. The agreed figure was then approved by the Governor.

However, the new legislation known as Government Regulation (PP) No. 78/2015 has ended workers’ involvement in setting the minimum wage and is based on inflation rates and economic growth. It ignores the regional wage councils, placing all power with the regional governor.

Consequently wage increases for workers in 2017 have been extremely low.

“The government is putting business first rather than workers’ welfare,” said Said Iqbal, President of IndustriALL Global Union affiliate the FSPMI metalworkers’ union.

“Indonesia is number three in the world for economic growth. Why then are we having such small wage increases of only 10 to 20 dollars. In some cities, like Geneva or Singapore, this would only buy you one kebab. It is very unfair, it is a crazy policy,” emphasized Iqbal, who is also President of Indonesia’s trade union confederation, KSPI.

Wages in Indonesia are poor. In Jakarta, which has the highest wages, the minimum wage for 2017 is IDR 3.35 million (US$250), an increase of less than 20 dollars from 2016. In Central Java, the minimum wage is as low as 1,367,000 (US$102) a month.

“We need investors in Indonesian countries, but the Gini Index shows that there is only economic growth for the rich man, only for the investor, only for the management. But workers don’t benefit. We want a judicial review of the law in the Supreme Court,” said Iqbal, adding that he welcomed the support from IndustriALL and the International Trade Union Confederation in their campaign.

IndustriALL General Secretary, Valter Sanches, has written to the President of Indonesia, Joko Widodo, calling for the government to include trade unions in setting the minimum wage, in accordance with employment law in the country and ILO Conventions on freedom of association and the right to organize.

“The lack of participation of unions in setting the minimum wage has had an adverse effect on the minimum wage at the regional level, thus keeping wages far behind in relation to the rate of growth of the economy,” said Sanches. 

Life sentences for Maruti Suzuki workers

Four other workers were sentenced to five years in jail. Most of them have already been incarcerated for more than four years, while their families have suffered indescribable hardship.

A nominal fine was imposed. The remaining 14 workers are to be released immediately with a Rs 2,500 (US$38) fine, on the account of prior incarceration.

After the verdict, the workers’ lawyer, Vrinda Grover stated:

The state prosecution astonishingly sought capital punishment for the convicted workers. During the trial the defence lawyer strenuously argued that 117 workers were subjected to illegal and wrongful confinement at the behest of the company without any evidence, which the court upheld.

We will be filing appeals against all convictions and are confident of securing justice in the superior court. There is no evidence to link these convicted 13 workers to the murder. It is important to remember that they were the leaders of the union; therefore it is clear case of targeted framing by the state.

Apoorva Kaiwar, IndustriALL South Asia Regional Secretary said:

We are deeply troubled by the district court sentencing 13 workers, who were all union office bearers, to life imprisonment

The acquittal of 117 workers clearly proves workers were falsely implicated in the case. Maruti Suzuki workers are paying the price for asserting their constitutional right to freedom of association. All this could have been avoided, had the management and the state administration handled workers demands in a mature manner. We hope that the workers' appeal in the high court will deliver justice to workers.

On 23 March a large public meeting of workers in the Delhi-Gurgaon region is planned to protest against the judgment and to plan future activities.

Leader of Belarusian trade union REPAM prosecuted for defending labour rights

On 17 March, the leader of REPAM union Gennady Fedynich was tried in Minsk court. He was accused of taking part in an unauthorized, illegal "March of angry Belarusians" on 17 February in Minsk and repeated violation of the law "On mass events". At the hearing the union leader said he could not do otherwise. His union has collected 45,000 signatures for the abolition of Decree no. 3 "On the prevention of social dependency". According to the decree, Belarusian citizens who fail to work for more than six months must pay a tax of US $ 240. Unemployed people who appealed for help from the union took part in the rally, and the leader considered his participation essential.

Gennady Fedynich stated:

“I said at the trial that people will protest, even if authorities jail all opponents. It is the fault of the government alone that people go to rallies. Now not only the decree will stand on the agenda, but there will be also socio-economic and maybe even political demands”.

According to the union leader, the court hearing was held in a democratic manner. All the parties were able to express their position, and no one was interrupted. In the end, the court found Gennady Fedynich guilty and fined him US$ 640.

The same day on 17 March, the court also tried REPAM’s legal inspector Leonid Sudalenko, who got a warning. Trade union activist Andrej Strizhak was sentenced to 10 days of administrative arrest.

As of today more than 20 activists of the union were subject to reprisals for participating in the peaceful protest against the Decree no. 3. They were arrested for periods of 2 to 15 days, and also received fines for a total amount of more than US $ 3,000.

Many activists complained that during the arrest police in plain clothes had used unjustified physical force and tear gas.

President of Belarus Alexander Lukashenka demanded that the government find jobs for all the unemployed until 1 May. Citizens of the country might be directed to community services, for example, planting a forest. These jobs are low-paid and do not take into account experience and level of education of workers.

Despite all the intimidation from the authorities, union members are preparing new protests against the unjust decree on 25 March (Freedom Day) in Minsk, 26 March in the regional cities and 26 April (Chernobyl Way) as part of an annual opposition rally in remembrance of the Chernobyl disaster.

Bangladesh: garment workers fight for their union to be legally registered

Workers at the Orchid Sweater Ltd factory have been attempting to register a union since February 2016 and the Joint Director of Labour (JDL) has repeatedly denied the request on inadequate grounds.

When management became aware the workers’ initiatives, it unleashed a series of harassment and threats of termination of office bearers of the proposed union.

In November 2016, workers recruited more workers into the union and again applied for registration of the union. Despite having all appropriate documents, the JDL again denied the union registration on unsubstantial grounds.

The workers have made a third attempt and applied for Orchid Sweater Workers Union registration in January 2017. The JDL is expected to make decision on their application by 24 March.

Munni Begum, a linking operator, says:

“I became a union member to raise issues collectively with the management, the labour department should immediately provide union registration.”

Now Orchid workers call for solidarity support, as they are concerned that collusion between the management and government officials should not once again deny their right to freedom of association and collective bargaining.

Shafikul Islam a knitting operator says:

“If any worker raises their concerns about wages, they are subjected to verbal abuse and terminated from work. To protest anti-worker attitude and to defend our rights we formed a union.”

Chandon Kumar Dey of IndustriALL affiliate Bangladesh Independent Garment Workers Union Federation says:

“It is a matter of grave concern that the workers of Orchid Sweater Ltd. are repeatedly denied union registration for the past two years. The BIGUF will continue to fight for the legitimate rights of workers."

Christina Hajagos-Clausen, IndustriALL garment and textile director added:

“IndustriALL supports their right to form a union; it is unacceptable that these workers are repeatedly denied their right to freedom of association and collective bargaining. The management must follow the law and engage in dialogue with the union.”

The Orchid Sweater Ltd factory currently employs around 2,250 workers.

Brazilian trade unions and social movements hold day of action against pensions reform

The street demonstrations were especially impressive in Rio de Janeiro, Belo Horizonte and São Paulo. Thousands of people unfurled multi-coloured banners bearing the same demand: no to pensions reform!

There were protests of one kind or another in at least 23 of Brazil’s 27 regional capitals: some workers set up roadblocks, public transport and other workers took strike action and some local businesses closed.

The day of action was the culmination of a campaign organized by IndustriALL affiliates in Brazil (in turn affiliated to the various trade union centres) to inform the public about the consequences if congress approves the PEC287 constitutional amendment to reform the pensions system, which was submitted to the national congress in December 2016.

The campaign aims to put pressure on congressmen and senators to vote against the reform. The government claims that the bill’s approval is indispensable to recover the trust of the markets and reactivate the economy, but the workers say this is not true and that the reform will reverse historic working class victories.

For example, the amendment proposes a minimum retirement age of 65 for both men and women and extends the period for which workers must pay contributions. Forty-nine years of contributions will be required for a full pension.

At the moment, women can retire with 30 years of contributions and men with 35. The minimum retirement age is 50 for women and 53 for men. A table calculates an average that takes into account salary levels and life expectancy.  

One thing is sure: the workers have no intention of giving up the fight. They say they will continue to oppose the reforms proposed by Michel Temer’s government and defend the rights they have won.

IndustriALL’s assistant regional Secretary, Marino Vani, had this to say about the day of action organized by Brazilian workers:

“It was a major show of force by the working class. It has given renewed impetus to the workers in the battle over the country’s future that began with the coup that took place in Brazil.

There is no ‘reform under way.’ The coup leaders are planning to put an end to pensions to the advantage of the bankers. Forward comrades! We are in solidarity with you in the fight to defend all your rights, restore democracy and retain the social and cultural policies won over the last decade”.

Unions in Mexico, US and Canada unite in tackling Trump

Participants from a broad range of unions and civil society organizations from Mexico, along with the AFL-CIO from the US and Unifor from Canada, attacked Trump’s politics of hatred and exclusion. They also re-affirmed their opposition to unregulated globalization or of trade agreements which are harmful to workers, such as the Trans-Pacific Partnership (TPP) or NAFTA.

IndustriALL director Fernando Lopes noted that – paradoxically – TPP obligations were a factor in driving Mexico’s much-needed labour law reforms last year. With the TPP now defunct, labour rights defenders will need to keep up the pressure to ensure the reforms are put into practice.

The impact on Mexico could also impact the rest of Latin America. Multinationals in key industrial sectors such as the auto and steel industries operate in the region’s three largest economies, Argentina, Brazil and Mexico. Currently, Mexico largely exports to the US market, while Argentina and Brasil supply the rest of Latin America. If Mexico can no longer rely on the US market for exports, it will begin competing for market share with the higher-wage industries of Brazil and Argentina, thus creating downward pressure on pay and conditions.

As well as debating the dangers of the Trump agenda, many participants also underlined the opportunities. “When one door closes, another opens”, said one. Opposition to Trump is energizing social movements and may prompt unions to play a more active role in influencing public policy.

Fernando Lopes concluded:

As unions, we need to wake up to this reality and must reflect on alternatives. IndustriALL will support efforts by the independent Mexican unions to build a socio-political movement for a fairer society, and will encourage cooperation with civil society, which also has a role to play.

The meeting was held in the framework of the IndustriALL/Unifor union-building project, which seeks to give independent unions a voice and strengthen their power.

Belarus: trade unionists among 50 arrested following protests

President Lukashenko’s Decree No. 3 ‘On Prevention of Social Dependency’, dubbed the decree “on social parasites”, penalizes people who are unemployed for longer than six months with a tax of US $240.

An estimated 3,000 people marched in the capital Minsk on 15 March, while thousands more took part in protests across the country this week, which also called for the President to step down.

Many of the trade unionists arrested are from IndustriALL Global Union affiliate the Belarusian Radio and Electronic Industry Workers' Union (REPAM). A further 13 people have been fined up to US$500 for violating laws on holding public events and participating in the protests.

The leader of REPAM Bobruisk city organization, Galina Smirnova, was detained an hour before a rally in Orsha on 12 March. She had been urging union members to keep on protesting until the President cancels the decree. As a consequence, she spent eight hours in the local police station and was unable to join her colleagues at the rally.

The chair of REPAM, Gennady Fedynich, himself facing trial in relation to a march against Decree No. 3 in February, said:

"I would like to ask why these people were arrested? Is peaceful assembly banned? Are we under martial law? I am sure that authorities aim to scare people. This is a great mistake.”

Union representatives are preparing a new complaint to the International Labour Organization and are calling REPAM’s partner organizations in other countries to report to their governments and employers about the situation in Belarus.

In a letter to President Lukashenko, IndustriALL General Secretary, Valter Sanches, said:

“IndustriALL Global Union condemns in the strongest terms the arrest of peaceful dissenters in the last week, who have been legitimately expressing their voice of opposition to the unemployment tax. We call on the Belarusian authorities to release all the civil society protesters, including 12 union leaders, without delay.

“IndustriALL Global Union calls for the abolition of the unemployment tax, which is in blatant violation of Article 41 of the Constitution of the Republic of Belarus, and international core labor standards, including ILO Convention 105 on the Abolition of Forced Labour.” 

Many consider the arrests as a warning by authorities to people to discourage participation in a major ‘Freedom Day’ protest planned for 25 March. 

More on the topic:

Belarusians protest tax on “social parasites”

Swazi affiliate challenges union busting at textile factory

Management at Fashion International has rejected union membership forms signed by 1,600 of the 1,900 employees. In response, the union has taken the employer to court for refusing to recognize the union and for not complying with ‘collective bargaining duties and obligations’.

Earlier this month, the company insisted on a ballot conducted by the Conciliation, Mediation, and Arbitration Commission, to determine union support amongst the workers. All workers but one voted in favour of the union, sending a very clear message on the will to organize.

Although the company claims to guarantee fair labour practices it is amongst the worst employers in the textile and apparel sector. Desperate to keep the union away, they sometimes threaten to close down the factory if workers do not resign from the union,

says Wander Mkhonza, Atuswa secretary general.

The workers are very clear – they want a union and Fashion International must grant them their organizational and collective bargaining rights and recognize ATUSWA as a partner.

The company also engages in unfair labour practices that adversely affect workers’ health and safety. For instance, sick workers are forced to come to work, and doctors’ visits restricted to only four hours after which a worker must report for duty. Failure to do so often results in disciplinary action.

Workers are asked to bring sick children to work if they want time off to take the child to hospital. Sometimes this never happens or permission is given too late for hospital hours. The employer is also notorious for refusing to pay sick leave of more than two days. Reducing sick leave days is common and forces unwell workers to come to work.

In addition, workers are forced to work on Saturdays, which is not a working day. But if workers do not turn up they are disciplined, and dismissals are common.

Fabian Nkomo, IndustriALL regional secretary, says:

Fashion International must immediately engage in a constructive dialogue with the union. Working conditions in the factory must be improved and workers must be granted their organizational rights.

IndustriALL women out in force for IWD 2017

IndustriALL Global Union affiliates from France to the Philippines took action on key issues affecting women: from changes to the retirement age in Switzerland, to maternity cover in the Philippines and violence against women in the Middle East and North Africa.

In Uruguay, IndustriALL unions joined a march of 250,000 people on the streets of the capital Montevideo on 8 March. An incredible gathering given that Uruguay has a population of less than 4 million.

In Sri Lanka, IndustriALL affiliate, the Free Trade Zones & General Services Employees union, held a rally of more than 700 people to help inform low-paid and poor women workers in the north of the country about their rights.

Women are changing what unions campaign on: today more and more unions are campaigning for maternity rights, work-life balance, equal pay, and for recognition of the unwaged, caring work that women are still expected to do.

IndustriALL has a Congress commitment to work towards 40 per cent representation by women in all structures, and our sector and regional structures have male and female co-chairs.

This helps improve women’s representation in our affiliates, as they need to develop women leaders to send as delegates.

As Jenny Holdcroft, IndustriALL’s assistant general secretary, said:

“Our unions won’t change until we have women in prominent leadership positions, taking decisions that improve the working lives of men and women across the world. By including women, we make our movement stronger to fight for everyone.”  

Australia: CFMEU wins Just Transition for Hazelwood power station workers

Multinational energy company Engie announced in November 2016 that the coal fired power station and adjoining mine would close on 31 March 2017, at the cost of hundreds of jobs. The CFMEU entered into negotiations with power station operators in the Latrobe Valley and the Victoria government. The result is the Latrobe Valley Worker Transfer Partnership Scheme.

The deal includes a commitment to minimize job losses, retrain workers, and an early retirement scheme that will free up positions for those wishing to continue working in the industry.

Older workers will be offered early retirement at Loy Yang A power station and mine in the same area, creating jobs for young Hazelwood workers. It will keep families, jobs and money in the valley. At least 150 Hazelwood workers will be supported into employment.

CFMEU national president, and IndustriALL Global Union executive committee member Tony Maher described the scheme, which includes commitments by Latrobe Valley power station operators, unions and the Victorian government, as “a breakthrough in best practice”.

“This partnership sees workers, their families and the broader Latrobe Valley community supported through the Hazelwood power station closure,” he said.

“It sees a just transition for workers, their families and communities. Hundreds of directly affected workers and their families will breathe a little easier tonight, knowing there is a commitment to their families’ futures.” 

Hazelwood power station and mine is located in Victoria’s Latrobe Valley, 150 km east of Melbourne. It is jointly owned by Engie (72%) and Mitsui (28%). French-based Engie – formerly known as GDF Suez – has had a global framework agreement with IndustriALL and the global unions PSI and BWI since 2012.

Hazelwood employs about 500 staff directly, and averages 300 alliance contractors with hundreds more employed during major maintenance periods.

Engie announced the closure of Hazelwood as a result of a policy of gradually ending its coal activities. In addition, the company has complained of low electricity prices and overcapacity in the electricity sector in Victoria.

CFMEU and its allies, working closing with the government of the state of Victoria, lobbied hard for a solution. On Friday 10 March, Victoria premier Daniel Andrews announced a funding package to facilitate the retraining and early retirement of workers, as well as agreement with the energy companies for the redeployment of workers to other sites.

IndustriALL assistant general secretary Kemal Özkan said:

“This is a great example that shows just transition is not just a paper exercise. With the political will to make it a reality, we can achieve practical results.

“Our affiliate the CFMEU Mining and Energy Division have done really good work in looking after the interests of their members and the community they live in.”