South African union slams minimum wage compliance criticism

The report asserts that the clothing sector provides an example of how sector labour market institutions and industrial policy creates collusion between government, trade unions and big business that adversely affects jobs in labour intensive sectors.

The report criticises the tough stance taken by the clothing industry bargaining council to ensure that workers are paid the minimum wage. It was released about the same time that five small clothing companies are challenging having to comply with the legislated minimum wage.  

Andre Kriel, General Secretary of the South African Clothing and Textile Workers Union (Sactwu) has spoken out on the attack on minimum wages in the sector, which start at USD42 a week and even at the highest pay grade, clothing workers are the lowest in South Africa’s manufacturing sector.

Kriel contests circulating information that the bargaining council intends to close down 450 factories for non wage compliance, which would result in 16,000 job losses. He reports that the council holds writs against 297 companies that employ 5,500 workers and that many of these companies are taking steps to become compliant.  

“The issue is not a trade off between jobs and decent work, almost as if the two issues are mutually exclusive. Competitive advantage cannot be based on illegality and a race to the bottom,” states Kriel.

Kriel blames massive job losses in the sector on trade policies and a fast tracked tariff reduction regime introduced more than 15 years ago. Whilst this is true, it is no secret that many South African companies looking to escape minimum wages in the sector have relocated their operations. In Lesotho, a haven for such companies that is surrounded by South Africa on all sides, factory shells can’t be built fast enough for South African clothing companies that want to move in.

Clothing workers in Lesotho are challenging their low wages. An IL0 study in 2011 showed that real wages had declined over a five year period and that the minimum wage in the clothing sector was below that of the general minimum wage in Lesotho. At the time minimum wage in the sector ranged from USD92 to USD113 a month according to job tasks.

Unions demanded a massive increase of up to 172 per cent to USD238 a month and a massive stay away was orchestrated but secured a wage increase of less than 10 per cent. This seemingly unrealistic demand was supported by an ILO Living Wage study in 2012 and efforts continue in Lesotho to push up wages in the clothing sector, which if successful would erode Lesotho’s competitive advantage.

There is no easy solution to achieving decent work in the clothing sector, which is characterised by unfair competition based on wage exploitation and the race to the bottom. In a globalized world, unions need to look beyond national labour legislation to protect wages in labour intensive sectors. International solidarity is required to address competition in the sector that drives down wages and maintains poor compliance with international labour standards.

Malaysia: Minimum wages for all

In July 2012 the Malaysian government announced that workers in Malaysia would receive minimum wages of RM 900[USD291] (for Peninsular Malaysia) and RM800 [USD259] (for Sabah and Sarawak). The announcement came into force from 1 January 2013. The minimum wage is a basic wage excluding overtime, existing allowances and other benefits. However, to avoid paying minimum wages some employers calculate other benefits as part of minimum wage and some force workers to sign that they received minimum wages, while actually paying them less.

As large number of workers work on short term-employment contracts, with the fear of non-renewal of contract, they do not speak for their rights. In addition the Malaysian Government through its Minimum Wages (Amendment) Order on 28 December 2012, allowed employers to apply for the right to be exempted from paying the minimum wages. Through this more than 500 employers got the right to delay paying the minimum wages. However, in this process the government did not provide space for the involvement of workers or their trade union before processing the application of employers.

In case of levy on foreign workers, the government earlier allowed employers to deduct from wages of the foreign workers to recover expenses made by the employer for employing the foreign worker including the levy paid to the government. However, the government stopped this practice from 1 April 2009. Once again on 30 January 2013 the Malaysian cabinet decided to allow employers of migrant workers to recover the levy they pay the government by deduction of wages of migrant workers.

In a joint statement released on 5 February 2013, trade unions and civil society activists expressed serious concern that the government’s move towards reintroducing the provision would merely shift the burden on to migrant workers. In an appeal to the Malaysian government, 75 civil society organizations and trade unions across the world stated, “that all workers, including migrant workers, are entitled to receive minimum wages, whereby this is the basic wage and should not include allowances, benefits and other work incentives. Employers should not be permitted to remove pre-April 2012 worker entitlements and benefits, being the date the Minimum Wage Order 2012 came into force, from existing and subsequent employment contracts.”

They called on the Malaysian government and to immediately withdraw the decision made by the Malaysian cabinet and end all forms of discrimination against workers.

New wave of unrest in Tunisia

Led by the UGTT, tens of thousands of protesters gathered on 7 February in Tunis to mourn the death of opposition leader Chokri Belaïd. The General strike brought the city to a close.
 
Assassinated on 6 February as he was leaving his home, Chokri Belaïd was a vocal critic of the Ben Ali regime, a leftist opposition leader, trade unionist and lawyer. The UGTT has urged the authorities to fully investigate this crime and ensure that the person responsible is brought to justice.
 
“Over a million people participated in the demonstration following our confederation’s call for a general strike,” said Tahar Berberi, General Secretary of the Metal and Electronics Federation of UGTT, an affiliate of IndustriALL Global Union. “The political situation in Tunisia is very difficult right now especially with the statement by government that it will form a new administration of non-political technocrats,” he continued.
 
The central objective of the general strike called by the UGTT is to ensure that Tunisia’s transition to democracy takes place peacefully. With unemployment reaching alarming rates in Tunisia and only several months away from the deadline set to reach a new constitution and a date for elections, this tragedy has plunged the country into shock.
 
“IndustriALL Global Union extends its full support to the UGTT.  They have been a central player in the move towards full democracy and social justice in Tunisia,” said IndustriALL General Secretary Jyrki Raina.

Brazilian chemical workers win 39 hour week

The ABC Chemical Workers’ Union has won a 39 hour working week at BASF Demarchi. The new agreement came into force on 1 January 2013 and covers 600 of the company's employees. Workers in the company’s resins sector, fire-fighters, communications centre and administrative staff will continue to work different hours.

Union leader, Fabio Lins, who is also secretary of the chemical workers’ confederation CNQ-CUT, affiliated to IndustriALL, explained that "this agreement extends the reduction in working time to other workers. Most workers will now work a 39 hour week, in a mixed 5×2 and 6×1 shift system”.

This is an encouraging development for other chemical workers’ unions campaigning for a reduction in working time. Unions have already won a 40 hour working week in the pharmaceutical sector. "This and similar gains in other sectors of the economy shows that reducing working hours does not harm companies financially. It gives them an opportunity to put in practice their social responsibility policies, instead of imposing temporary work and long, exhausting working days," said Lins.

BASF is a transnational company in the chemical sector and is German in origin. It has operations in more than 80 countries.

Brazilian trade unions have been fighting for a reduction in the working week for some time. This gain represents a major step forward for Brazilian trade unionism and provides a good example for companies in the rest of the world.

Singapore affiliates welcome new IndustriALL Regional Office

The affiliates, attended a strategy and leadership gathering at 03-07 Tembeling Centre, which is also home to the new office, and discussed the timetable for a number of important events that will take place in Singapore in April 2013.

Singapore’s economy depends heavily on manufacturing exports, particularly aerospace, electronics, IT-products, pharmaceuticals and shipbuilding. Around 19 per cent of its total workforce is employed in manufacturing, which represents just over 27 per cent of gross domestic product. The National Trade Union Centre (NTUC) is Singapore’s only national center and has 61 affiliates, and over 600,000 members. IndustriALL’s affiliated unions cover all of the manufacturing sectors.

In addition to introducing the newly formed IndustriALL Global Union to the affiliates during the meeting the leaders also discussed ways to improve interaction between the new office and the affiliates. These discussions included training and education exchanges, also how to improve communications and increasing the profile of IndustriALL in Singapore. One outcome was that IndustriALL Regional Secretary Annie Adviento and IndustriALL Regional Officer Vonny Diananto will attend an Executive Committee meeting of each affiliate to increase local knowledge of IndustriALL’s activities.

Rob Johnston, IndustriALL Executive Director, informed participants, “It’s important that IndustriALL builds its profile in the Asia-Pacific Region. The region is rapidly becoming the manufacturing hub of the global economy. Our office needs to have its finger on the pulse of our affiliates in this region, so that our work program reflects the affiliates needs.”

The Singapore meeting follows a number of other Leadership Forums that have taken place in the Asia-Pacific Region, during which affiliates from the original merger partners have been developing strategies on how to work together in the newly formed IndustriALL Global Union. So far forums have been held in Indonesia, Philippines and Thailand. The approach taken at each has been different reflecting local culture, but the outcome has been the same: a strong desire to build IndustriALL nationally. Affiliates in Singapore also agreed to explore the possibilities to create greater coordination among themselves and how to build up participation in IndustriALL activities.  

One common challenge the local unions are facing is the slow down in manufacturing exports due to weaker European demand. Also the unions under the NTUC banner have been coordinating their response to a controversial Population-White Paper recently launched by government.  The White Paper contains a number of key areas that will determine the government’s approach on issues such as the number of foreign workers, infrastructure, education and skills for 2020-2030, all of which will have an impact of the future of manufacturing in the country. IndustriALL’s affiliates seem well placed to influence the current debate with a number of its leaders being members of consultative tripartite bodies.    

The contact details for the new office in Singapore are:

IndustriALL South East Asia Office
252 Tembeling Road
03-07 Tembeling Centre
Singapore 423731
Tel : +65-63 46 4303
Fax : +65-63 46 4304
E-mail: [email protected]

Tell PKC to reinstate workers in Mexico

PKC sacked more than 100 union supporters including the entire union committee in December 2012 for campaigning for the election of an independent trade union, the National Union of Mine and Metalworkers (known as “Los Mineros”), at their plants in Ciudad Acuña, Mexico.

Ten of the sacked union leaders refused to take severance pay and, along with another leader who was sacked in April 2012, are fighting for reinstatement and the right to be represented by a democratically elected union at the plant.

You can support these workers by sending a message to PKC in Finland at LabourStart here.

The workers want to be represented by Los Mineros so as to win higher wages (most make US$55 per week), improved health and safety, and an end to arbitrary treatment and sexual harassment.

PKC has refused to negotiate with Los Mineros, instead signing a contract with another union (the CTM), which is controlled and financed by the company. Despite threats and intimidation, Los Mineros came close to winning an election in October, and is now organizing for a new election.

The workers demanding reinstatement and democratic union representation are: Alejandro Ojeda Ramírez, María de la Paz Calvillo Solano, Javier Díaz Gómez, Ana Maria Méndez Pacheco, Josefina Martínez Hernández, Rodolfo Luna Martínez, Encarnación Escobedo Muñoz, Sergio Hernández García, Jesús Rogaciano Ibarra Quintero, and Gerardo Hinojosa Morales, and Juan Carlos Palomino Cansigno who was sacked in April 2012.

In January, these fired leaders held a week-long hunger strike outside the plant, ending it only when the Federal Labor Board notified the company that it would hold a hearing starting on 30 January to schedule a new election.

PKC bought the complex of plants in Ciudad Acuña, Mexico, in 2011 where about 5,500 workers produce wire harnesses for the North American vehicle market. In 2009, a group of workers supported by Los Mineros began a campaign to win a union contract.

When Los Mineros approached the company to negotiate a contract in November 2011 the company refused, saying that it had signed a contract three months earlier with another union, the CTM. This was the first the workers had heard of the CTM or its contract. 

The practice of companies signing sweetheart contracts with unions that they control – known as “protection contracts” – is widely used in Mexico to block democratic worker organizing.

The labour rights violations at PKC are being highlighted by IndustriALL Global Union and LabourStart during the Global Days of Action on Mexico in 2013. This 18 to 24 February union members around the world are petitioning companies, visiting Mexican embassies and sending messages of solidarity to Mexican workers.

Join the campaign and sign up to the LabourStart campaign to send a message of protest to Matti Hyytiäinen, PKC President and CEO in Finland.

To find out more about the campaign on union rights in Mexico go to: www.industriall-union.org/mexico-campaign

Unions at Tenaris take action on Mexico

The web quality versions of the leaflet in English, Spanish, Portuguese, Italian and Romanian are here.

The print quality versions of the leaflet in English, Spanish, Portuguese, Italian and Romanian are here.

Unions at Gerdau take action on Mexico

The web quality versions of the leaflet in English, Spanish, Portuguese and Italian are here.

The print quality versions of the leaflet in English, Spanish, Portuguese and Italian are here.

Workers on strike at Cerrejón in Colombia

After negotiations ended without an agreement, 98 per cent of Carbones del Cerrejón workers, members of Sintracarbón, voted to go on strike.

Sintracarbón, an IndustriALL affiliate, has been negotiating a list of demands since the end of last year with the transnational companies BHP Billiton, Xstrata and Anglo American.

With more than 50 million members throughout the world, IndustriALL has followed these negotiations, supported the workers and called on the companies to immediately accept their just demands.

On receiving news of the workers’ decision, the IndustriALL National Council in Colombia convened a meeting at the workers’ temporary camp so that affiliated unions could show their solidarity and support for the striking workers. In a video conference, Assistant General Secretary, Fernando Lopes,  reaffirmed IndustriALL’s decision at the world level to support the strike.

In addition to calling for improvements in working conditions for directly employed workers at Carbones del Cerrejón, Sintracarbón is leading the fight to extend the freedom of association and the rights to collective bargaining and strike to outsourced workers. It is also helping to organise civic committees to defend the region's water resources and supporting a series of community struggles in Guajira department, in the north of the country.

60,000 workers march through Mexico City

The 60,000-strong mobilization denounced the injustice handed down by the country’s Supreme Court on 30 January against Mexico’s oldest democratic union the Mexican Electrical Workers’ Union (SME). That decision overruled an appellate court ruling taken in line with national labour legislation that clearly passes employer responsibility to a company that takes over operations of another company, as occurred for SME members. There is no way to interpret this unjust Supreme Court ruling that runs contrary to Mexican law, other than as an effort by the ruling elite to crush the SME electrical workers’ union. http://www.industriall-union.org/mexicos-supreme-court-unfairly-rules-against-sme

The SME General Secretary Martín Esparza in his address to the demonstration that climaxed in the national Zócalo plaza asked if marchers would accept the Supreme Court decision and give up their three-year struggle for reemployment. The loud, unified shout back was “NO!”

Pressure is building on the new President Enrique Peña Nieto that his PRI Party government cannot continue the repressive policies of the previous PAN Party government and must end the establishment’s repression of social movements.

A similar call for changes was made in a letter to the Mexican President sent by the International Trade Union Confederation (ITUC) and all Global Unions on 6 February 2013.

The ground is prepared for a strong Global Days of Action for workers’ rights in Mexico on 18-24 February. IndustriALL Global Union affiliates around the world are linking up with trade unionists from other sectors to demonstrate the international indignation at the concerted union-busting in Mexico.

Unified action in Mexico will be carried out by all democratic national unions, supported by international colleagues. Actions there will include a joint press conference, a public meeting, embassy visits, a solidarity caravan, a commemoration silent march in memory of the Pasta de Conchos victims, and a large-scale march through the capital.

The Tri-National Solidarity Alliance of unions in Canada, Mexico and the US are playing a leading role in planning activities in Austin, Boston, Chicago, Denver, Detroit, Houston, Indianapolis, Kansas City, Los Angeles, Miami, Montreal, New Orleans, New York, Ottawa, Portland, Raleigh, Seattle, Tucson, Vancouver, and Washington DC. 

Unite the Union in the UK is hosting a public meeting on 20 February in partnership with the TUC and other groups.

See here the 6 February joint letter to President Enrique Peña Nieto from the International Trade Union Confederation (ITUC) and all the Global Union Federations.

The four main demands of the Global Days of Action 2013 are:

Get involved, take action and follow the campaign on IndustriALL website here. Here you will find more material, new videos, and new ways to take action and support the campaign over the next few weeks.

www.industriall-union.org/mexico-campaign