Ensuring that the Global Framework Agreement with H&M is effective

IndustriALL signed the GFA with H&M, the Swedish apparel company in November 2015. The agreement aims to protect the rights of 1.6 million workers in its supply chain of over 1,900 factories around the world.

The GFA proved instrumental in recognizing workers right to freedom of association and collective bargaining in countries such as Bangladesh, Myanmar and Pakistan by reinstating workers who were sacked for demanding their rights.

The first meeting of the Bangladesh national monitoring committee (NMC), which will oversee the implementation of GFA, held intensive discussions over issues such as organizational structure, national strategy and the implementation process. The NMC consists of representatives from IndustriALL affiliates and H&M.

Understanding the critical aspects of GFA such as social dialogue, industrial relations, decent work, trade union rights and obligations, employers’ rights and obligation, conflict prevention, peaceful conflict resolution and negotiation in good faith was evolved among the participant.

The NMC came out with a long-term plan to promote workers rights to freedom of association and collective bargaining in the H&M supply chain. They also developed short-term objectives such as education to factory management, 100 per cent dispute resolution and orientation training to textile garments affiliates of IndustriALL Bangladesh Council.

The NMC decided to conduct periodical meetings to take stock of GFA implementation issues and meetings to address dispute resolutions immediately on case-to-case basis.

Christina Hajagos-Clausen, director of IndustriALL textile and garment industry sector stated that the GFA will go a long way in improving social dialogue, industrial peace and developing well-functioning industrial relations in Bangladesh.

Kutubuddin Ahmed, vice chair of IndustriALL Bangladesh Council said that, “with the H&M GFA IndustriALL created new horizons. If implemented effectively, it will be a new era for workers welfare in Bangladesh”.

Under the GFA implementation structure, social partners at the factory level will deal with industrial disputes. The NMCs will be formed in five countries including Bangladesh, Cambodia, Indonesia, Myanmar and Turkey to oversee the implementation issues at national level.

The Joint Industrial Relations Development Committee consisting of H&M, IndustriALL and IF Metal representatives will work on practical issues of GFA implementation at the global level and as required provide support and guidance to NMCs.

UK government agrees to part-nationalize steel plant after union campaign

The global collapse in steel prices caused by Chinese dumping lead Tata Steel to sell its UK business, threatening thousands of jobs.

The rescue deal was announced by Sajid Javid, business secretary in the UK's Conservative government. The government stake is intended as a sweetener to make it easier to find a buyer for the business.

Javid – who had previously ruled out nationalization – is an economic libertarian who has been criticized for allowing blind faith in the free market to obstruct attempts to rescue the industry. The Conservative government has been slow to respond to the crisis, and also vetoed an EU plan to increase tariffs on Chinese steel.

The move was welcomed by IndustriALL-affiliated unions with members in the sector, who have successfully mobilized support for the industry by reminding people of the size of the bank bailouts, and of the importance of steel to the supply chain.

Unions are arguing for a long term, sustainable industrial policy that ties steel production to procurement and infrastructure development, and tackles dumping.

Commenting on the deal, Unite assistant general secretary Tony Burke said:

“Today’s announcement is only part of the solution. The task now is to secure a buyer who is committed to purchasing the whole of Tata Steel UK and securing the long term future of steelmaking in the UK. Our members will also need strong commitments during the sales process about their pensions and assurances that none of them will suffer an adverse impact. 

“The UK government still has a lot to do in ensuring that steelmaking can thrive.“

Roy Rickhuss, general secretary of Community union, said:

“We welcome the willingness of government to support debt financing and that they remain open to taking a 25% share in the business. Governments must continue to work closely with Community as we do everything we can to secure a future for our steel industry.”

IndustriALL assistant general secretary Fernando Lopes said:

“It’s ironic that a Conservative government with a free market fundamentalist business secretary has part-nationalized the British steel industry. This is what happens when ideology hits the wall of reality.

“This is an important first step, and it shows that our arguments are winning. However, there is a lot more that needs to be done to ensure that this vital industry has a sustainable future.”

Italian metalworkers hold a successful national strike

According to IndustriALL affiliates Fim, Fiom and Uilm the national average participation exceeded 75 per cent. In many factories and offices all activities remained completely blocked. Rallies and meetings were organized at almost 100 central squares all over Italy.

One the most successful mobilizations took place at Comer Industries (Reggio Emilia province) at the home company of current president of Federmeccanica (Italian Employers' Federation of Metalworking Industries). Some 90 per cent of 430 employees went on strike, and at GE Oil & Gas in Florence, the company where the current general director of the metalworking industry organization of employers comes from, 70 per cent went on strike.

The strike was a clear signal of support to the negotiations over renewal of the national contract for metalworkers. The unions believe it is now up to management to answer workers’ demands.

Marco Bentivoglio, general secretary of Fim, finishing the union rally in Naples said, "The number of participants in the strike disprove the predictions of President Federmeccanica, Fabio Storchi. The workers have realized that we need a change, we need a breakthrough agreement that does not leave anybody on the street. Federmeccanica had thrown us a challenge: today’s response is the strongest we could give. What the employers in metal industry should do is to to reopen the negotiations already tonight and to make a contract."

Maurizio Landini, general secretary of Fiom from the stage in Milan in front of Assolombarda (Industrial association of province of Milan) said, "This is the time for the country to restart the economy. The success of the strike shows how metalworkers want the renewal of the national contract, to which they have their right. Federmeccanica tomorrow must reopen the negotiations, I do not want to take responsibility for a conflict which now the country does not need."

Rocco Palombella, ending the rally in front of Reggio Emilia Industrial Union said, "Federmeccanica, change your contractual offer, start from wages, and call us as soon as possible to the negotiating table. It is unacceptable that the leaders of metalworkers employers propose to divide one million six hundred thousand workers in the industry with different offer and equally different payroll increases."

In his letter of support to the Italian metalworkers’ strike Jyrki Raina, general secretary of IndustriALL Global Union, said,

“IndustriALL Global Union fully supports your demands, which call on the employers’ associations Federmeccanica and Assistal, to reconsider a proposal that would deny to 95 percent of metalworkers a possible increase that is stipulated in the new agreement, it would limit bargaining only to the company or local level, and it would curtail the rights of temporary and subcontract workers.”

IndustriALL intervenes in steel industry crisis

The meeting was convened on 18 April 2016 to discuss global strategies to deal with excess capacity and structural adjustment. Representatives of governments, steel producers, workers and affected communities were present.

IndustriALL was represented by Holly Hart of the United Steelworkers. She expressed how the steel crisis has caused a wave of industrial destruction that is wiping out good jobs on a global scale, and systematically eroding workers' rights and working conditions.

The nature of the crisis is that there is excess capacity – too much steel is being produced. This means that the price of steel has dropped by 20%, to a point where it is difficult to make it profitably. Many jobs are being lost as a result.

Demand is weak due to the economic slowdown, and production is increasing because China is producing steel at below cost as a tactic to drive other steel producers out of business.

China's production is driven by state-owned and controlled enterprises, in violation of its WTO obligations, ILO core labour standards, environmental standards and fundamental human rights.

The steel crisis is a short term one, but urgent action is needed now, before the crisis destroys the industry. Steel is the world's second largest industry, used in everything from cars to fridges and construction. Global steel use is projected to increase by 50% by 2050.  Steel is vital for maintaining a high value supply chain with good jobs.

Governments need to develop long term industrial strategies with a place for steel. This includes massive investment in infrastructure and training. Governments must also make targeted interventions to rescue steelmaking communities threatened with extinction by plant shutdowns.

Governments and global institutions must consider the climate consequences of shutting down steel plants that meet strict environmental and quality standards, while allowing unfettered growth where such standards are ignored.

Fernando Lopes, IndustriALL assistant general secretary said,

“The steel industry is absolutely fundamental to the economic health of many communities, and provides vital, quality jobs to many thousands of people, both directly and across supply chains.

“It is essential to develop an industrial strategy to protect this industry from unfair competition. Governments need to urgently and proactively address this crisis before the industry is destroyed, and we lose thousands of good jobs forever.”

Why boycotting brands won’t help garment workers

Fashion Revolution Week marks the third anniversary of Rana Plaza, the deadliest tragedy in the garment industry, which claimed the lives of more than a thousand workers in Bangladesh.

As we wonder #whomademyclothes – attention turns to the millions of garment workers, surviving on poverty wages, who make the clothes we wear.

But what can we do to help these workers – 80 per cent of whom are women?

Certainly not to only buy vintage or second hand – as two fashionistas recently proposed on a BBC radio 4 program. Garment workers desperately need to keep their jobs, so boycotting brands is not the way forward. They want to work. In many countries the garment industry is one of the few avenues to financial independence for women. 

What garment workers don’t want are poverty wages, excessive working hours and unsafe factories.

According to United Nations Guiding Principles, multinational companies are responsible for the working conditions at their suppliers. Yet many fashion brands have little control or little idea of how much workers are being paid, how long they are working or how safe the factories are, and insufficient will to do anything about it.

Brands’ short lead times, last minute changes to production specifications, and a general lack of consideration of how their demands impact on workers, put an impossible burden on the women making our clothes.

Why should garment workers endure poor wages and working conditions when they are contributing to the phenomenal profits of global brands? Amancio Oretga, founder of Zara, is the second richest man in the world with a personal fortune of $70 billion.

Any change in the global garment industry has to be systemic and enforceable. Acting alone will not bring about the necessary changes needed to improve the lives of garment workers.

Extolling your own corporate and social responsibility credentials is worthless, unless you are working with your competitors to change the basis on which clothes are ordered and traded.

Garment factories in countries like Cambodia and Bangladesh produce for several brands. If one factory raised wages in any significant way, it would be undercut by other factories and soon go out of business.

There needs to be a critical mass of brands to wake up and realise that their supply chain operations are abusive and unsustainable.

The Rana Plaza collapse on 24 April 2013 was a turning point in the garment industry, and showed that self-regulation and self-auditing by brands of their supplier factories had been a catastrophic failure.

It made possible the Bangladesh Accord on Fire and Building Safety – a groundbreaking, legally-binding agreement between global unions and more than 200 multinational fashion brands to inspect and repair more than 1,600 garment factories.

It is collaborations between brands and trade unions, like the Bangladesh Accord, that have the best chance of success and instigating real change.

My organization, IndustriALL Global Union, is now working with a group of committed brands, including Top Shop, Primark and Next on a process called ACT, which has the potential to revolutionize the global garment supply chain.

The goal is to introduce wage negotiations in garment supply countries that involve trade unions, factories and brands on an industry-wide basis. Setting higher wages across the entire industry prevents individual factories and brands from negotiating lower prices based on lower wages.

To achieve this, brands must reform their purchasing practices so that factories are able to pay workers more. An industry-wide agreement also provides a means of negotiating better working conditions as well as productivity improvements.

The ACT process is already underway in Cambodia and there are plans to roll it out in Bangladesh, Myanmar and Pakistan.

Garment workers need a voice; they need to use their collective strength to show that, without them, nothing would get made. That’s why brands and customers alike, must support them in their efforts to organize and fight for better pay and working conditions.

Who made your clothes?

3 years on from Rana Plaza, the Bangladesh Accord is saving lives

Rana Plaza served as a wake-up call to multiple stakeholders – global and local unions, NGOs and brands have worked together to create the Accord on Fire and Building Safety in Bangladesh. UNI Global Union and IndustriALL are the two global union signatories to the Accord.

The legally binding agreement, with over 200 brands, has brought quantifiable improvements in building and fire safety. The Accord has completed almost 3,700 factory inspections and re-inspections and has both identified and remedied thousands of safety issues.

Real improvements on the ground are being made – more than 50,000 problems and 75 per cent of electrical issues have been reported as fixed.

The impact of fires at buildings such as at the Pretty Sweaters Ltd factory and Matrix building has been significantly lessened due to safety measures such as automatic sprinkler systems, fire doors, fire alarms and structural improvements.

In the Pretty Sweaters Ltd fire, the fact that no workers lost their lives highlights the importance of the Accord’s work in Bangladesh. Sprinkler and automated fire alarm systems ensured that the fire was contained to the 7th floor of the factory and brought under control within an hour. Although some of these systems were already in place before the Accord, this shows that the safety measures that are being implemented can create a safer environment for garment workers.

UNI Global Union Head of Commerce, Alke Boessiger said: “While there are still many unacceptable delays in improving safety and working conditions in the industry, there can be no doubt that the work of the Bangladesh Accord has saved lives.

“Much progress has been made, but there are many challenges ahead as the vast majority of factories are behind schedule with their repair plans. Factories and their buyers failing to meet the requirements are being held accountable and placed in the Accord escalation procedure.”

"The groundbreaking Bangladesh Accord came out of a deadly tragedy but has saved lives since its creation," says Christina Hajagos-Clausen, IndustriALL Global Union director textile and garment industry.

"Making the the garment industry safe is a big and necessary task. The Accord focuses  on ensuring the safe remediation of factory issues – people should not have to risk their lives by going to work."

The Rana Plaza anniversary is an opportunity to remind the world that although the Bangladesh Accord has been difficult to implement and subject to delays, tangible progress has been made in ensuring the safety of garment workers in Bangladesh.

Workers at Italcementi prepare for a national strike

On 14 April, Feneal Uil, Filca Cisl and Cgil Fillea met in Rome and committed to go on strike after multinational HeidelbergCement, which declared of a major stake acquisition at Italcementi in July 2015, and released a restructuring plan, failed to address affected workers’ concerns.

After meeting with the government, the unions said in a statement that they “challenged the business plan presented by HeidelbergCement in the press that stipulates the reduction of 415 employees of Bergamo, with 250 additional redundancies (at production sites) which could take place in September 2017".

The unions also denounced the company’s misbehaviour as they failed to attend the meeting organized by the government, where conditions of the industrial plan were to be discussed. The unions prepared a counter-proposal, aiming to significantly decrease the number of redundancies.

The unions presented five demands to the deputy minister of Economy and Development, including:

The next meeting with the ministry will be at the beginning of May.

Bosch World Works Council addresses worker concerns

This was the fourth meeting of the World Works Council at Bosch. The worker representatives from 37 countries exchanged information on their employment conditions in the respective countries and sections of the company.

This huge German company makes products from electronics to car parts.

IndustriALL Global Union Director for the Auto Industry, Helmut Lense stated:

“At this body we aim to improve coordination between Bosch workers throughout the global operations. We receive from the corporate management important information on the company’s plans and how they will affect workers. And of course it is an important opportunity for us to raise our concerns from around the world with top-level management. I want to see this meeting happen every two years instead of every three.”

Christoph Kübel, Member of the Management Board and Director of Industrial Relations at Bosch, delivered a company overview, corporate policy and strategy to the meeting. Kübel addressed how technological changes will affect the company.

“Thanks to Industry 4.0, work as we know it today will be transformed. Work will be increasingly guided. Our goal is to train our staff, protect jobs and use this new technology step by step.”

Worker representatives were able to raise their local issues with corporate management, for example the 263 jobs cut in Adugodi, India, and the barriers to trade union organizing at Bosch in Mexico.

Chair of the Works Council, Alfred Löckle said:

“It is not about choosing between man and machine, the question is how to incorporate both together. On labour issues, while social dialogue has been improved in most sites, we still hear many examples of local management trying to impede local, regional and international representation bodies.”

Global Finmeccanica trade union network established

This Italian multinational company represents 70 per cent of the aerospace and defence industries in Italy and also has important production in the UK, USA, France, Germany, Spain, Poland, Australia, Canada and elsewhere.

Around 38 per cent of the total workforce of 47,000 is organized in IndustriALL affiliates. The company has gone through a period of restructuring. Now the unified company, established in its current form as of 1 January 2016, will have a unified workforce as an international counterpart.

IndustriALL Global Union Aerospace Director Brian Kohler welcomed the new network:

“The Action Plan adopted by this group today sets out a structure and joint programme that will conduct social dialogue with Finmeccanica across borders. First we call on the company to establish a proper European Works Council in line with its legal obligations and then also to recognize our global network through addressing our common concerns.”

Those common concerns include:

The new Finmeccanica brings together different cultures and relationships with unions, and this network will now put the company’s commitment to labour standards to the test.

The issue of an ageing workforce is common in all countries and the unions are calling for investment in training and research into new technology to ensure sustainable jobs.

Hosted by Italian affiliates FIM-CISL, FIOM-CGIL and UILM-UIL, the initiative follows a decision by the IndustriALL World Aerospace Conference in Berlin, 2015.

The aerospace and defence industries as a whole is forecasted to grow over the coming years, and continues to be majorly important in the global economy, employing 8.7 million people directly and creating a total of 58.1 million jobs.

During the meeting, in the context of the discussion on trade and China, the meeting participants expressed their solidarity and support with European and British steel workers.

The group also expressed solidarity with metalworkers of FIM, FIOM, and UILM who will conduct a national strike on 20 April 2016 rejecting an insulting offer from the Italian employers' association in collective bargaining.

Norwegian oil company DNO uses Yemeni crisis as excuse to avoid paying staff

DNO has been doing business in Yemen since 2000. Last year, due to the war, DNO terminated its operations and on 27 April 2015, sacked 200 staff by text message and email.
 
DNO paid no redundancy money or compensation to its staff, who have been left without a social and economic safety net in a country that stands on the brink of collapse.
 
This is illegal under Yemeni law, but the company has used the security situation to evade responsibility.
 
IndustriALL affiliate the General Union of Petroleum, Minerals and Chemical workers in Yemen won recognition at DNO in 2010, after a long struggle. The union protested to the company and government, but according to union president Hassan Hendi, no action has been taken because of the war.
 
Norwegian oil sector union and IndustriALL affiliate Industri Energi launched a solidarity campaign on behalf of their Yemeni colleagues, and wrote to DNO shareholders in Norway demanding the company take responsibility. The shareholders include the pension fund of the Norwegian state-owned oil company Statoil.
 
Industri Energi expressed its dismay at DNO’s behaviour, saying that  DNO was hurting Norway’s reputation, and pointing out that other international companies operating in Yemen – including Dove and Total – had taken full responsibility for their workforce.
 
“Other petroleum extracting companies in Yemen did not dismiss their employees and have been paying salaries to their workers. They take their social responsibility seriously, and help their shareholders, the workers. By doing so, they will have qualified people ready to start production when the conflict has settled. In addition, they assist those who have been loyal to the company, in difficult times.”
 
DNO shareholders ignored the message, and the situation for the workers remains perilous.

IndustriALL has sent a letter to DNO, demanding that the company accept its responsibility to its employees.
 
Kemal Ozkan, IndustriALL  assistant general secretary said:

“It is an absolute disgrace that this company has abandoned its loyal workforce in the midst of this terrible conflict.”