Workers’ rights and a level playing field at the OECD

The OECD Shipbuilding Committee held a workshop on 30 October on a global level playing field for the shipbuilding sector to ensure that global shipbuilding remains “balanced and competitive” and is not distorted through unfair state support or other factors.

The International Maritime Organization has set a target for shipping to be at net zero by 2050, and the organization will have to agree to midterm measures – a pathway to achieve this goal – at its meeting of the Marine Environment Protection Committee (MEPC 83) in April 2025.

This poses a challenge for shipbuilders, as there is no consensus on alternate fuels, and the trajectory is influenced by the decisions of major shipping companies to invest in a particular fuel. Many shipowners use LNG as a transition fuel, but this is not a green solution due to the high amounts of methane released.

Green fuels are expected to raise freight rates – the cost of shipping cargo from one place to another – by 80 per cent.

The biggest concern for OECD members was the rise of China as a shipbuilding superpower. Measured in gross tonnage, more than half the world’s ships are made in China. Chinese ships are produced with state support, distorting competition.

IndustriALL presented the workers’ perspective. For unions, the biggest factor that undermines a level playing field is workers’ rights and conditions. Unions agree that good practice includes:

However, best practice is expensive. Companies and countries gain short term cost advantage by undercutting standards. Countries with strong unions are more likely to adhere to best practice, which puts them at a cost disadvantage. There is divergence within OECD countries, but greater divergence between OECD and non-OECD countries – particularly China.

China has the lowest labour costs for shipbuilding in the world – 7.4 times lower than in German. China has not ratified core ILO Conventions on freedom of association and collective bargaining, and the country has no free unions. It undercuts competitors because workers have no rights.

Addressing the meeting, Roy Houseman of the USW and Peter Greenberg of the IAMAW explained their unions’ decision to file a 301 trade petition with US government, arguing that state support, intellectual property theft and a lack of workers’ rights has allowed China to dominate. One of the relief measures proposed by the unions is a port fee on Chinese-made ships.

IndustriALL industry director Walton Pantland said:

“There is good will in the shipbuilding committee to uphold high labour standards. However, this is undermined by China’s failure to respect workers’ rights. The US unions have an interesting solution to this, but the labour movement needs to develop a global response.”

IndustriALL proposed convening an ILO sectoral technical meeting to reach agreement on best practice.

Myanmar's garment workers under siege

More than 3,5 years after the military coup on 1 February 2021, the military junta still has a stronghold on Myanmar. September saw new airstrikes claiming at least 26 lives, including ten children, following on the month of August when the military bombed its own people 350 times.

Once in power, the military effectively banned trade unions and arrested union leaders. There is no freedom of association in the country; unions and other workers’ organizations can’t function. There are reports of forced labour, workers’ rights violations, increased precarious work and collapsing wages.

A tracker developed by the Business & Human Rights Resource Centre monitors abuse in Myanmar’s garment industry. 556 cases of alleged labour and human rights violations at 266 factories linked to international brands were documented by the end of June this year.

Global solidarity and the push for accountability

During the International Labour Conference in June this year, the global unions called on the International Labour Organization (ILO) to invoke Article 33 of its constitution as the military junta has failed to carry out the recommendations given after an ILO Commission of Inquiry found serious violations of the Forced Labour and Freedom of Association protocols.

Since the military coup, IndustriALL has campaigned with affiliated unions in Myanmar for brands to safely disinvest from the country. In 2022, discussions between IndustriALL and several garment brands operating in Myanmar concluded with a Framework Principles of a Brand’s Responsible Business Disengagement from Myanmar, outlining a responsible exit from the country. Primark, New Look, Inditex, H&M, Lidl and Fast Retailing have followed this agreement.

“Human rights violations in the country make it impossible to conduct business responsibly as companies are unable to guarantee the safety of their workforce. It has been proven again and again that human rights due diligence has not been possible in Myanmar since the military’s violent coup in 2021. With all the information available, brands who maintain production in the country cannot say that they don’t know,”

says IndustriALL general secretary Atle Høie.

Establishing supply chain industrial relations through trade union networks

IndustriALL affiliates from Bangladesh, Cambodia, Indonesia, Sri Lanka and Vietnam who represents workers at these two multinational giants met in Phnom Penh, Cambodia, to discuss ongoing issues related to wages, contracts, maternity leave, union recognition and negotiations, occupational safety and health, and collective bargaining agreements.

Network participants agreed to increase the work to build solidarity among unions in different countries to ensure that workers enjoy the same right of their freedom of association and collective bargaining throughout the supply chain of these two companies. In both network meetings, union leaders finalized the draft text of a memorandum of understanding (MOU) that will be submitted to the two companies with an aim to work together to build strong industrial relations at the global regional and national level.

Through the MOUs, IndustriALL and affiliates are looking forward to jointly develop a mechanism to create an enabling environment for freedom of association and collective bargaining, design and implement a grievance mechanism to ensure workers’ access to remedy, and to develop capacity building activities on a factory level, including factory managers and trade union representatives, to create an enabling environment for mature industrial relations.

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

"Trade union networks are key to building worker strength within garment and shoe manufacturers. The decision to formalize the networks with company management is an important step forward to ensure sound industrial relations."


Ethiopia’s Bole Lemi industrial park sets up workplace daycare centres

There are over 25 000 workers employed at Bole Lemi mainly in the textile and garment industries of whom 85 per cent are women. The two daycare facilities that IndustriALL Global Union visited on 28 October cater for up to 100 infants starting from one-year old and will accommodate toddlers of up to four years old in the future.
 
According to the Ethopian Industrial Park Development Corporation (IPDC,) factory owners found out that most workers did not return to work after maternity leave as they had no one to look after their babies if they resumed work. To address the workers plight, the IPDC, in consultation with trade unions, set up a daycare centre as a model that factories could replicate in their factory premises in the industrial park.
 
The daycare centre has child-friendly facilities for playing, sleeping, and bathing, and mothers leave their children in the morning when they start work, and pick them up at the end of their shifts in the afternoon. The centres also provides nutritional education to mothers as well as early childhood education.
 
The first of the 14 factories to heed the call to set up a daycare centre is garment manufacture, Shints, which employs about 6,500 workers. About 2,000 workers including the mothers of the children at the Shints daycare centre live off the park. While 4,500 workers are housed in dormitories. Shints said it provided meals to the residential workers whilst those who lived outside were given transport allowances. However, the dormitories have no facilities for children or families.
 
The Industrial Federation of Textile Leather and Garment Workers Trade Union (IFTLGWTU), affiliated to IndustriALL, says the wages of 4,700 Ethiopian Birr (ETB) or US$39 paid to the workers in the park are not enough for mothers to hire caregivers for their children when they go work. Neither are the wages enough to pay for other expenses that include accommodation and food. Currently, Ethiopia has no minimum wages and experts estimate that a living wage for Addis Ababa is at least ETB 36,422 or US$300.
 

“Most young mothers were resigning from work to look after their infants and we realized that daycare centres, where the women can leave their children and go to work, would help workers,” 

said Engidu Tsegaye, investor support and follow up service head at Bole Lemi Industrial Park. 
 

“Our basic union’s executive members are participating in the running of the daycare centres, and this is an initiative that is supported by our federation because it benefits workers,”

added Angesom Gebreyohannes, IFTLGWTU president. 
 
Paule France Ndessomin, IndustriALL regional secretary for Sub-Saharan Africa said: 
 

“Introduction of daycare centres at Bole Lemi is a crucial step to promoting women’s labour force participation in the textile and garment sector in Ethiopia.”

 
Industrial parks are special economic zones or industrial clusters owned by state-owned enterprise, the Ethiopian IPDC. The industrial parks were established to promote government policies on export growth, employment creation, technology transfer, and economic development through private sector investment in manufacturing industries.

IG Metall members commence warning strikes

After three rounds of talks and the expiration of the peace period on 28 October, over 1,000 workers from more than 100 plants walked off the job to push for meaningful wage increases. 

IG Metall is calling for a 7 per cent raise and an additional €170 (US$183) for apprentices, while employers are offering just 1.7 per cent starting in July 2025 and 1.9 per cent from July 2026. This is disappointing from the union’s point of view as it is well below the expected increase in inflation for these years which means that this offer represents a loss in real wages.

As workers intensify their efforts through warning strikes, negotiations between IG Metall and regional employers’ associations continue. The stakes are clear: without fair wages, the future of the industry and its workforce is at risk.

Nadine Boguslawski, member of IG Metall executive committee responsible for collective bargaining policy said: 

“The employers' current offer is too meager to address employees’ ongoing price pressure quickly and sufficiently. An offer of a wage increase coming later and an increase that does not even compensate for expected future inflation is unacceptable to employees. With a view to securing skilled workers, the industry is at risk of falling behind. That is why apprentices deserve significantly more than they receive.


“Warning strikes in the companies are necessary now to ensure that something is clearly and quickly achieved at the negotiating table. Nobody wants the collective bargaining round to become a stalemate.


Employers must make their contribution right now.  People need prospects and money to spend. Wage restraint would benefit no one and would exacerbate the situation of companies. A better domestic economy is also very much in the interest of companies. They must do their part in this too.”

IndustriALL general secretary, Atle Høie, said:

“Our full support and solidarity is with the strikers of IG Metall. The German employers must come to the negotiating table and negotiate in good faith decent wages for its workforce. One that will allow them to take care of themselves and their families.”

Photo: IG Metall website

Union gets shipbuilding academy to grow industry

IndustriALL sat down with Duncan McPhee, a trade union convenor at Unite, to hear more. 
 
Shipyards across the UK had long offered training facilities, but they were outdated, unable to attract the new talent the industry desperately needed. In an era where young people are increasingly drawn to cutting-edge industries, shipbuilding needed a new face, a modern one.

“Unite recognized the need for modernization early on and championed the idea of creating a facility that could train both blue-collar and white-collar workers and graduates in new technologies, modern engineering, and the latest industry trends. Our vision was clear: to make shipbuilding as innovative and appealing as any high-tech industry,”

said Duncan McPhee. 
 
For years, the union lobbied for change, taking a twin-headed approach. They pushed for both the recruitment of fresh talent and the upskilling of the current workforce, knowing that advances in technology would require a more adaptable, tech-savvy workforce.

“We kept reminding shipbuilding companies: the industry couldn’t grow unless we were willing to invest in its people,”

explained Duncan  McPhee. 
 
The breakthrough came when BAE Systems, aerospace company, saw the potential. With an increase in international contracts and a robust order book, they decided to put their resources behind the union’s vision.

“We told the company to put their money where their mouth is and that the investment was substantial, and the payoff would be equally so. Then shipbuilding academy became a reality,” 

said Duncan McPhee. 
 
This modern academy, would house classroom teaching facilities for both blue-collar and white-collar workers and graduates, with specific training programmes for trades like steelwork, outfitting, and design engineering. Beyond just offering apprenticeships for new recruits, it would also serve to upskill current workforce, many of whom were eager to learn new skills and take on new roles. The workshops are available to all, helping both young apprentices and experienced workers adapt to the rapidly evolving shipbuilding industry.
 
But Unite’s vision extended beyond the shipyard. They pushed for the academy to be a resource for small supply chain companies, allowing them to send apprentices to train alongside their counterparts from larger shipyards. This was a move that ensured the entire shipbuilding ecosystem could benefit from a skilled workforce, ultimately strengthening the industry’s supply chain.
 
Diversity and inclusion also became a top priority.

“We are aiming for 30 per cent female apprentices, right now we have 20 per cent and we are determined to break the stereotypes of a male-dominated industry. We understand that the future of shipbuilding needs to include everyone, and we make it our mission to make the industry more accessible for women,”

said Duncan McPhee. 
 
In August 2024, the academy opened its doors, ready to welcome a new generation of shipbuilders. For those stepping into the facility, it was a clear departure from the past.

“I want to say to people that this industry is a modern one and it is growing, it is nothing like the old movies you see of shipbuilders. We worked closely with the company to show apprentices their future career path from day one, giving them confidence and clarity about where their journey in shipbuilding could take them,”

said Duncan McPhee. 
 

“From the moment these new apprentices walked through the doors, Unite was there. In their first week, the union spoke to them about how they could provide support throughout their careers. Our success rate in signing up new recruits is at 95 per cent, a testament to our deep connection to the workforce. Many of these apprentices would remain with the union throughout their careers, some even rising into management but staying loyal to the union that had stood by them from the beginning,”

said Duncan McPhee. 
 
The fight for the shipbuilding academy wasn’t easy. It took years of campaigning, raising the issue repeatedly, and demanding investment. But through their unwavering commitment, Unite ensured the UK shipbuilding industry wouldn’t just survive, it would thrive. They had fought for a future where modern technology and skilled workers could lead the industry into a new era. And that future had finally arrived.

“The global shipbuilding industry is booming, but labour shortages are growing as the workforce ages. New technology and emissions standards make shipbuilding an exciting, dynamic career. Attracting new talent, especially women, is key to a sustainable future, and the union’s vision will make this happen,” said Walton Pantland, IndustriALL shipbuilding and shipbreaking sector director. 


 

Malaysia: HICOM must comply with ILO decision

The five union leaders were dismissed in 2016 after joining a union briefing on the status of collective bargaining outside the HICOM Automotive premise after working hours. The company accused the unionists of tarnishing the image of the company.

In June 2022, the ILO Committee on Freedom of Association (CFA-ILO) ruled that the dismissal of NUTEAIW members and leaders for joining a union briefing on collective bargaining deadlock outside working hours and out of company premises “is not in conformity with freedom of association and can amount to intimidation preventing the exercise of their trade union functions”.

And yet the employer refuses to reinstate the workers. Earlier this week, NUTEAIW held a press conference at the Malaysian parliament. The IndustriALL Global Union affiliate expressed its disappointment that HICOM and the authorities are ignoring the decision of the CFA-ILO.

NUTEAIW general secretary Gopal Kishnam Nadesan said the union also submitted complaints to the Industrial Relations Department and the Prime Minister's Office last year, but after 14 months, no stern action has been taken against HICOM.

"The five unionists have been unemployed for the last ten years; imagine their economic suffering. We demand that the company reinstate them immediately with back pay, benefits and seniority. If HICOM management failes to do so, the authorities must strictly enforce the law and prosecute staff involved in the union busting,"

said Nadesan.

Two members of parliament, Chow Yu Hui and Hassan Karim, support NUTEAIW's demands. They said that as a state party to ILO convention 98, the Malaysian government has an international obligation to protect workers from acts of anti-union discrimination, especially when they participate legitimate in union activities outside working hours.

Chow called on the government to take union busting seriously and take action to settle the dispute. He said not only the government must defend workers' rights, but it must also protect the good name of the Malaysian government in the international stage.

"I echo the CFA-ILO conclusion that anti-union discrimination is one of the most serious violations of freedom of association and it may jeopardize the very existence of trade unions. IndustriALL supports NUTEAIW's campaign for justice for the five unionists. It is time to bring the dispute to a closure after ten-year’s waiting,”

said Ramon Certeza, IndustriALL South East Asia regional secretary.

Energy sector unions in Southeast Asia drive forward Just Transition strategies

Ramon Certeza, IndustriALL Southeast Asia regional secretary, emphasized the union's demand for active involvement in energy transition policies, stating:

“As countries in Southeast Asia gear towards clean energy transformation in line with the Paris Agreement goals, it is crucial for trade unions to demand a seat at the table to safeguard secure employment, workers' rights, and communities’ wellbeing. No one should be left behind. We demand a Just Transition that puts workers at the heart of this transformation—ensuring decent work, social protection and equality for all, while addressing the pressing need to reduce carbon emissions to protect our planet.”

The gathering marked a significant step towards building strong union alliances to address energy transition challenges. It explored the application of IndustriALL’s ‘Guide of Practice on Just Transition,’ to ensure decent work, social protection and equality while addressing changes in the world of work. 

Japan is navigating a complex energy transition as it aims to achieve carbon neutrality by 2050. Despite a declining working population, unions are focused on securing stable employment and facilitating the shift to new energy sources like hydrogen and ammonia. 

Collaborating with national center RENGO, Japanese unions are advocating for a comprehensive approach to safeguard job security and improve working conditions. The key challenge remains government engagement and industry stakeholders to address policy gaps and ensure a smooth transition.
Indonesia presented its ambitious energy transition targets under the Just Energy Transition Partnership (JETP) deal, which includes reducing emissions and transitioning from coal.

However, unions highlighted the critical need for worker retraining and social protection, given the projected job losses in coal mining. Unions are advocating for reskilling programs and have successfully formed coalitions to engage with national authorities on climate issues, although their demands are not part of the JETP deal yet.

Thailand reported that while renewable energy initiatives are gaining traction, policy inconsistencies and insufficient coordination pose challenges. Apsorn Krissanasmit, energy sector co-chair, stressed:

“In 10 years, we have faced many challenges in energy and climate. We must be at the forefront, helping the workforce prepare for the future through skilling and reskilling.”

In Singapore, the government has taken proactive measures, including establishing a $100 million fund to support transition projects, but unions are closely monitoring the impact of the rising carbon tax on the petroleum industry and its workers. Notably, Singapore is advancing its shift to electric vehicles and renewable energy production through public-private partnerships and union-approved projects.

The Philippines showcased its advanced engagement in Just Transition, emphasizing social dialogue and collaboration with the department of energy to develop inclusive policies. Local unions have successfully integrated Just Transition provisions into collective bargaining agreements (CBAs), ensuring fair retrenchment policies and training for new job roles.

Additionally, unions are lobbying for a national tripartite Just Transition committee to solidify their role in policymaking.

During the meeting, participants recognized the unique challenges faced by women in the energy sector, particularly Vietnam and Indonesia. Discussions included the need for gender-inclusive policies and training programs to bridge gaps in STEM fields and leadership roles.

Delegates from Mongolia and Taiwan further noted the importance of addressing job displacement risks and enhancing occupational health and safety standards in the energy sector.

Reflecting on unions' critical role IndustriALL director for energy industry and Just Transition, Diana Junquera Curiel, emphasized:

“The work of unions in Southeast Asia is pivotal in shaping a Just Transition that is inclusive and equitable. Through solidarity and strategic engagement, we can protect workers’ rights and ensure a just and sustainable future for all.”

The two-day meeting highlighted unions’ collective strength in advocating for a Just Transition that protects workers’ rights while tackling environmental challenges. Delegates emphasized the need for collaboration and capacity-building to support a fair energy transition.

IndustriALL remains committed to ensuring no worker is left behind as the region moves toward a greener future.
 

Putting the worker-centred remedy framework in practice

The workshop became a continuation of the work that started in June and November 2022 which resulted in development of Principles of Worker-Driven Remedy published in October, this year, as a guiding framework for public buyers and other stakeholders to address harm caused to workers in supply chains.  
 
These Principles consider remedy as a right, based on international human rights law and international labour standards, with workers at its core. Workers and trade union organizations, as right-holders, should participate in the design of remedy processes as well as in decision and implementation bodies. 
 
The October workshop brought together IndustriALL affiliates, Electronics Watch, Unison, and civil society organizations(CSO) advocating for migrant workers’ rights. The goal was to deepen their understanding of these principles and develop a roadmap for effective implementation, equipping participants with tools needed to enhance their advocacy and enforcement efforts.
 
Gemma Freedman, the Unison international officer, said:
 

“We identified remedy principles in the past two years and learnt from our failure and success in applying the principles. Now we should strategize our actions and overcome it collectively. We ought to use all available guides, tools and resources to advocate for the worker-driven remedy.”

 
However, while leveraging the remedial mechanisms, there is a consensus that workers and unions must involve workers that are organized and based on their needs. Worker organizations must put workers at the centre and not harm workers who need remedial actions, otherwise the organizations will lose legitimacy. 
 
Omana George, monitoring and civil society engagement manager of Electronics Watch, said:

“In essence, worker-driven remedies must respect human rights law, protect freedom of association, be timely and transparent. The remedy process must remove barriers of worker participation, shared responsibility of stakeholders and inclusion of various reparation measures.”

 
During the workshop, participants engaged in detailed discussions to fully understand the principles ensuring that IndustriALL affiliates and CSO participants grasped their intended impact, opportunities, and risks. Through group activities and presentations, attendees explored the prerequisites for creating effective remedy mechanisms and shared insights on how these principles could be applied across different industries and contexts.

This collaborative effort helped participants identify key areas where worker-driven approaches could make a significant difference in addressing migrant workers’ rights and recruitment abuses.
 
Participants also worked together to identify challenges that could hinder the implementation of the principles: legal, evidential, and resource-based obstacles. They discussed potential external threats and strategized solutions for overcoming these barriers in a sustainable manner. Additionally, the group developed ideas for the tools, guidance, and resources necessary to support the advocacy and practical implementation of these principles.

This included sharing best practices, innovative strategies, and recommendations on what should be included in the guidance document to ensure its relevance and accessibility for all stakeholders.
 
IndustriALL director of ICT electrical and electronics, Alexander Ivanou, shared a number of cases of violation of workers’ rights in the electronics sector in South East Asia region. Employers regularly discriminated against workers by interfering in secret ballot exercises, committing forced labour practice, breaching collective agreements and laying off union officials.
 

“Organizing is critical in building workers’ power to address forced labour practices and anti-union discrimination. Several case studies show how collective actions can force employers to return to bargaining tables and provide remedy.”
 

 In 1998, governments, employers, and workers' organizations committed to upholding basic human values by adopting the ILO Declaration on Fundamental Principles and Rights at Work. This declaration outlines fundamental rights at work, and adherence is linked to the membership status of ILO countries. Despite this, violations of these rights are increasing, with the 2024 ITUC Global Rights Index reporting widespread erosion of democratic values and labor rights, including 87% of 151 countries violating the right to strike and 79 per cent infringing on collective bargaining rights.
 
Additionally, the 2022 Global Estimates of Modern Slavery reported that 27.6 million people are trapped in forced labour, a number that has grown by 2.7 million since 2016. Migrant workers, particularly women and youth, are more than three times as likely to face forced labour due to factors like weak legal protections and exploitative recruitment practices.

While some unionized factories still face forced labour allegations, independent and democratic trade unions can significantly reduce, and potentially eliminate, the risk of forced labour.

IndustriALL calls for immediate peace in Middle East

In May, IndustriALL’s Executive Committee adopted a resolution condemning Israel’s war against the Palestinian people. Since then, the total number of Palestinians killed in Gaza has passed 40 000, Gaza has become a permanent prison with close to 100 per cent poverty and the West Bank is subject to attacks every day, diminishing any hope of a peaceful solution.

More civilians in both Israel and Palestine have been forced to flee to escape the military operations now also involving Lebanon and Iran, exacerbating the already dire living conditions marked by shortages of food, water, and medical supplies.

IndustriALL general secretary Atle Høie states:

“As trade unions, we stand up for the right to self-determination of all peoples and states. Our movement is the largest civil society movement in the world, and we cannot allow this to continue in silence; it will be a stain on the history of our movement if we do.

“We advocate for peace, justice, freedom, equal rights, democracy, human dignity, and the sovereign equality of all peoples and states. We urge an immediate and lasting ceasefire and call on all governments to stop sponsoring Israel’s military efforts to crush the Palestinian people and concentrate on achieving a two-state solution.”

Together with other global unions, IndustriALL has consistently called for a just and durable peace through the full implementation of UN Security Council Resolutions 242 and 338 to facilitate a viable economic future for an independent Palestine. In May, IndustriALL travelled with seven other global unions and the International Trade Union Confederation to Palestine to express solidarity with unions in the West Bank and Gaza.

The delegation made clear that “we stand in solidarity with Palestinian trade unions and workers during these challenging times. We are deeply concerned by the grave humanitarian crisis faced by the people of Gaza and stand with Palestinians, Israelis, and people worldwide calling for peace, equality, and justice”.
 

Photo: 27 November 2023, Palestinians families fleeing the north of the Gaza Strip to go to the south ©️ UNRWA photo by Ashraf Amra