IndustriALL inspired by Indonesian trade union victory

Pressure on the Indonesian government from the strategic, large-scale trade union campaign of lobbying, mobilization and action resulted in new legislation on outsourcing enacted on 21 November.

The victory restricts outsourcing in Indonesia to five sectors, namely: security, canteen, cleaning services, transport, and mining services.

IndustriALL General Secretary Jyrki Raina saluted the Indonesian comrades for their impressive victory:

Once again you show what can be achieved with a well-planned strategy and mobilization. You are an example and inspiration to our whole global union family.

The powerful Federation of Indonesian Metal Workers' Union FSPMI led by president Said Iqbal played a leading role in the campaign. Iqbal is also chairman of trade union confederation KSPI and had led the creation of a new workers' council (MPBI) that unites the three major trade union confederations in Indonesia (KSPI, KSBSI, and KSPSI). This unity has built strength.

An estimated 35 per cent of Indonesia’s 118 million workforce are precarious workers. The new government regulation will change the status of an estimated 16 to 20 million workers from outsourced to permanent employment. Any contract worker employed in the same job for three years or more must now be given permanent employment status.

The second substantial achievement of the trade union campaign, also reported today, is industrial agreements increasing the minimum wage across most of Indonesia’s industrial area. The minimum wage in Jakarta, Bekasi, Bogor, Karawang, Sidoarjo, Mojokerto, Batam have been set for the year 2013, with average 40.2 per cent increase. For example, in Jakarta the minimum wage will be raised from US$157 to US$230. Average increases to the minimum wage in recent years have been on average 20-30 per cent.

Inflation and economic growth are high in Indonesia, but these large increases in minimum wages move forward the union goal of bringing salaries in Indonesia in line with those in China, Malaysia and Thailand by 2016. Indonesia is ranked 16 in the world in terms of GDP, but 69 in terms of wages.

Last month, the three national trade union centres, KSPI, KSBSI and KSPSI mobilized three million workers in massive demonstrations against precarious work. The marchers, who set the bar high for the 7 October World Day for Decent Work, demanded a halt to outsourcing which was reducing workers’ salaries and benefits. Unions in the 3 October manifestations called on the government to restrict outsourcing to the five sectors stated in the legislation.

Upcoming targets for the trade union activists include government implementation of health care insurance in January 2014 and pension protection by 2015.

IndustriALL calls attention now to the importance of full implementation of the new outsourcing legislation.

Military paid to intimidate Nike workers in Indonesia

In a shocking development on 15 January 2013, ABC News reported that workers at the Nike factory in West Java city of Sukabumi were allegedly intimidated by military personnel to sign a petition supporting the employer’s petition to be exempted from paying the new minimum wage. It is important to note that in 2012 millions of workers protested demanding an increase in minimum wages, social security and for better working conditions. In response to the workers’ protests the government increased wages by 46 per cent to IDR 2.04 million (US$220) from the current IDR 1.4 million (US$145).

However, companies were allowed to apply for exemption from paying new wages by providing information on the company’s financial condition and consent from workers. In this backdrop, the Nike factory at Sukabumi allegedly paid military personnel to intimidate its workers to support their application for exemption from paying new wages. Workers were also told that “inside the factory there were a lot of military intelligence officers”.

Trade unionists and social activists expressed serious concern over involvement of military personnel to intimidate workers. 

A subsequent news report in Jakata Globe indicates that Nike has since revoked its application for exemption. 

Indocement criminalizes union leader in Indonesia

On 9 January and 16 January 2013 two court hearings of Edi Iriawadi took place at Cibinong District Court, West Java. The prosecutor accuses the union leader of violating the Indonesian criminal code and demands one year of jail as punishment. The hearing will continue on 22 January 2013.

Hundreds of people from Forum Buruh Bogor attended both hearings. They spoke in front of court demanding the panel of judges release Iriawadi and that the charges be dealt with in an industrial not criminal court. Around 50 police officers from Bogor District Police guarded the court.

Iriawadi is a union leader of Serikat Pekerja Indocement Tunggal Prakarsa (SP ITP), an affiliate of IndustriALL through the Federation of Indonesia Cement Trade unions (FSP ISI) of which Iriawadi is President. Iriawadi was put on trial after PT Indocement Tunggal Prakarsa accused him of abusing by his power by halting production and causing losses to the company.

The company is attempting to bust the union after it successful concluded bargaining in July 2011, which secured workers a 150 per cent gradual hike in wages over three years.

The union organized a series of actions in support of their cause. In reply, a group made of people adjacent to the plant territories instigated by the management said that union actions disturbed public order and blocked public transport in the area.

The group entered the territory of the enterprise and attacked the union office, leaders and members. As a result, three union members were hospitalized and motorbikes owned by union members damaged. Worried for the members and the safety of their private property, Iriawadi asked members to stop production and leave their workplaces.

Indonesia Trade Union Act No 21/2000 guarantees trade union rights. Articles 28 and 43 stipulate that the violation of union rights and union busting is a crime and the violators would be sentenced up to five years in prison.

PT Indocement Tunggal Prakarsa’s major stakeholder is German-based Heidelberg Cement Group. The company has twelve factories located in 3 cities of Indonesia Bogor, Cirebon and Kota Bharu, combined the total capacity reaches about 18.6 million tons a year with profits of more than 5 trillion IDR (US$ 520 million) registered in 2012. The company’s workforce totals 6,300 people.

Sign White House petition on precarious work in Korea

On 22 July 2010 the Korean Supreme Court made a verdict in favour of a Hyundai Motor subcontract worker’s suit, submitted by Choi Byeong-seung in 2005, ruling the worker be promoted to a permanent employee status. Hyundai again appealed the landmark Supreme Court ruling of 2010, but Choi Byeong-seung won the final and definitive decision on 23 February 2012.

This decision established a precedent for change in the Korean automotive industry, which continues to make extensive use of a subcontracted workforce to extract additional profits. Now Hyundai is claiming the decision only relates to the individual worker and refuses to apply the principle to other workers in the exact same positions at Choi Byeong-seung.

The precarious workers have been carrying out strikes at Hyundai Motor in Korea and protest actions, symbolized by the aerial protest on top of a pylon in front of Hyundai Motor plant in Ulsan demanding implementation of the court decision: http://www.industriall-union.org/korean-workers-stage-protest-against-hyundai

Please sign the petition to ask the White House to take a stand on Hyundai Motor Chairman Chung Mong-Koo’s non-compliance with the Supreme Court precarious workers’ ruling.

If 25,000 signatures are collected between 10 January 2013 and 8 February 2013, the Obama administration will need to take a stand on this crucial struggle of precarious workers to seek accountability from the transnational corporations using illegal work arrangements to circumvent responsibility for their employees.

The Petition to White House can be accessed at http://wh.gov/PVPf with additional detailed instructions available at KMWU website http://kmwu.kr/en/wp-content/uploads/2013/01/5a0169504d5b0bd403b390d4837b85702.pdf. 

Turkish glass workers secure jobs

Sisecam’s plant closure would have caused job losses for 572 workers, 444 of whom are union members with an average seniority of 18-year. Even though the factory was in a good economic situation, Sisecam management preferred to move operations to another city in central Anatolia, Eskişehir, for more profit. But the workers were not given an opportunity for the continuation of their jobs, a right gained through more than forty years of collective bargaining led by Kristal-Is

Kristal-Is and its members reacted against the company decision, and all the workers, together with their families, occupied the factory to struggle for their jobs and future. Although the police tried to evacuate the plant by force, workers and families did not step back. Kristal-Is’ action received wide support from the whole trade union movement, politicians and the community. IndustriALL Global Union supported striking workers by intervening with company management. IndustriALL Assistant General Secretary Kemal Özkan also visited the picket line.

Following the decisive struggle and consistent support, on 9 January, Sisecam agreed with Kristal-Is over protection of jobs with gained rights. According to the agreement, those who want to work at Sisecam will be deployed to other plants of the company under the current collective agreement, temporary workers will be employed with permanent status at the Eskişehir plant, and those who want to retire will be paid an additional compensation along with their legal packages on the basis of their seniority. 

“When workers struggle, they win. This recent victory of Turkish glass workers is a clear example of this,” said Kemal Özkan. Affiliates of IndustriALL Global Union in Turkey, Bulgaria, Bosnia-Herzegovina and Russia organize workers at subsidiaries of Sisecam. Meanwhile, the Georgian Mine, Metal and Chemical Workers’ Union managed to organize workers at Sisecam’s subsidiary, and will commence collective negotiations on 15 January 2013.

International trade unions warn Fiji military regime

The Fijian military regime once again obstructed an important step to restore the democracy with the rejection of draft constitution for Fiji, which included a Bill of Rights guaranteeing basic worker rights such as freedom of association, collective bargaining, freedom from discrimination, equal pay and a just minimum wage. The military regime through various draconian decrees and censorship in 2012, systematically repressed human rights defenders, trade unions and free media.

Sharan Burrow, ITUC General Secretary, said after her recent visit to Fiji, “it is clear that the Fijian people are suffering under the injustices of a repressive and controlling military regime. The Constitution was a chance to restore rights to Fijians, and the fight for those rights is not over yet.” 

Fiji unions, led by the Fiji Trade Union Congress (FTUC), are determined to fight for democratic rights and freedom. In an important to move to challenge the military regime, the FTUC in its Special Delegates Conference on 12 January 2013, resolved to launch an all-inclusive and truly multi-racial political movement and a political party to address the attack on workers’ rights and human rights in Fiji. It is important to note that the military regime announced strict guidelines in the new Political Parties Registration, Conduct, Funding and Disclosure Decree 2013, restricting participation of trade unionists.

In a statement issued on 13 January 2013, Sharan Burrow said, “if Commodore Bainimarama is not committed to a rights-based constitution and an independent transition to democratic elections, then he must be recognized by the international community for the dictator he is and stripped of all recognition including his role as chair of the G77.” Burrow called upon the international governments to do more to defend workers rights and restore democracy in Fiji.

IndustriALL Global Union supports the ITUC statement and stands with Fijian workers in their struggle for democracy and trade union rights.  

Hunger strike launched at PKC in Mexico

As reported by IndustriALL on 20 December 2012, Finnish-based auto parts multinational PKC sacked the entire Executive Committee of Section 307 of Los Mineros in Ciudad Acuña, Coahuila state, in the week before Christmas. The aggressive union-busting move included the dismissal of 122 workers seen to support the union in retaliation for their organizing efforts.

Section 307 of Los Mineros has been battling to organize the PKC plant; on 18 October a workplace election was narrowly won by the yellow union CTM by 2,509 to 2,311 votes after three months of strong intimidation, threats and persecution by management and the CTM against voting for Los Mineros. This anti-union persecution was carried out with the support of local state government headed by Rubén Moreira.

All workers who served as union observers on 18 October were dismissed in December, as well as other workers listed as potential observers. These names were transmitted to the Mexican labour authorities by the union, and were clearly then passed to the company in a serious breach of law and trust.

The Federal Labour Board was present in the office of the PKC human resources as each of the 122 workers was summoned individually and pressured into signing a voluntary resignation letter. There is no question that the mass sacking was in direct retaliation for trade union activities, and for no other reason.

Workers on hunger strike since 8 January are: Jesús Rogaciano Ibarra Quintero, Encarnación Escobedo Muñoz, Gerardo Hinojosa Morales, Ana María Méndez Pacheco, Josefina Martínez Hernández, Alejandro Ojeda Ramírez, Rodolfo Luna Martínez, Javier Díaz Gómez, Sergio Hernández García, María de la Paz Calvillo Solano and Juan Carlos Palomino Cansino.

IndustriALL Global Union demands that PKC management immediately reinstate all unfairly dismissed workers, members of Los Mineros, and call for a fair workplace trade union election, to be monitored by an international observer committee.

This latest scandalous union-busting is an example of the abuse of workers’ rights in Mexico that will unite trade unions around the world during the week of 18-24 February marking the “Mexico Days of Action”. Follow the IndustriALL website in the coming weeks to join the global action.

During the Days of Action trade unionists will revisit the Mexican Ambassador to their country and push for action on:

Actions will also include mobilizations, awareness raising activities, and letter writing to the new Mexican President Enrique Peña Nieto. Expectations are heightened inside Mexico of positive changes that the new Peña Nieto government can bring for workers and trade unions in the country. The international call in February will echo this call.

Organizing campaign at DESA in Turkey continues

An IndustriALL TAKE ACTION campaign in December, supported by LabourStart, which remains activated, resulted in more than 3,000 protest messages being sent to DESA by the end of 2012, prompting the company to meet with IndustriALL and Deri-Is in Istanbul on 7 January 2013.

At the meeting, the global and national unions put presented concrete cases on how workers are being pressured when they use their basic right of freedom of association at both plants. The company management continued to claim that its behaviour has always been in accordance with national legislation without any violation on fundamental rights and freedoms. The unions urged the company to:

DESA management declared that even though international standards require it, as a Turkish entity, they will continue to act on the basis of national legislation. However the company management said they would make an evaluation, and return back to IndustriALL and Deri-Is.

Earlier, IndustriALL Global Union’s Assistant General Secretary Kemal Özkan travelled to Turkey to meet Deri-Is and workers at DESA plants in Düzce and Sefaköy in December. At individual meetings, workers explained how their rights have been violated by the company through threats and intimidation by middle level managers and chiefs at the plants. Union members also provided documents that illustrate the local managers’ attitudes against union organizing.

On 24 December 2012 a press conference was organized in front of the DESA plant in Düzce with involvement of union members, Deri-Is officials, local community supports as well as IndustriALL Global Union. Managers prevented workers from attending the conference by locking the outside gates of the plant during the lunch break. In his statement, President of Deri-Is, Musa Servi, announced that in spite of all pressures, DESA workers show strong interest to join his union.

“We have demonstrated all our goodwill to the company for a genuine dialogue on the basis of international labour standards,” said IndustriALL Global Union’s Kemal Özkan. “If meaningful progress is not made, our campaign will continue until Deri-Is is recognized by DESA as bargaining partner,” he added.

New agreement averts glass worker strike in Colombia

The Sintravidricol agreement with Owens Illinois subsidiary Cristalería Peldar was reached after 54 days of difficult bargaining and only made possible by Colombia’s Ministry of Labour role in compelling top level management to bargain in good faith.

Negotiations began very badly on 13 November 2012 as management attempted to kick out the union arbiters from national centre CUT from supporting Sintravidricol negotiators Pablo Castaño, William Uribe, Alejandro Torres, Manuel Murcia, Mario Orjuela, and Manuel Alonso.

The hard-won agreement includes a 5.5 per cent salary increase in the first year, and increases in medical and other benefits, children’s schooling and further education, an 8 per cent increase in maternity, wedding, life insurance and similar benefits.

US-based glass manufacturing multinational Owens Illinois (O-I) has taken a more aggressive anti-union attitude over recent months and IndustriALL affiliates with members at the company are stepping up cross-border solidarity. This coordination brings together thousands of workers in North and Latin America, Europe and Asia-Pacific.

Recent increased levels of coordination between O-I trade unions has revealed common concerns as the company is taking cost-cutting measures around the world, to the detriment of its workers in terms of labour rights, fair wages and conditions, and safe workplaces. O-I’s workers are also concerned that cutting of jobs, production and research is jeopardizing the company’s market share, giving up its market leader position and so threatening its long-term prospects.

A common concern for O-I workers around the world is the company’s strategy to casualize the workforce, outsourcing permanent jobs to precarious agency labour. The strategy gives the employer more flexibility to hire and fire workers, at the expense of mature systems of industrial relations and stable business performance.

Cristalería Peldar manufactures glass for general household tableware, beer glasses, blood transfusion bottles, flat glass, and window glass.

Parent company Owens Illinois is the world's largest glass container manufacturer and preferred partner for many of the world's leading food and beverage brands. With revenues of US$7.4 billion in 2011, the company is headquartered in Perrysburg, Ohio, USA, and employs more than 24,000 people at 81 plants in 21 countries.

Union recognized at Standard Profil in Turkey

The official certificate of recognition, issued by the Turkish Ministry of Labour, reached the union on 20 December 2012 after a local court ruled that Petrol-İş has the required legal majority for conducting collective bargaining negotiations at Standard Profil in Turkey.
 
The union had organized more than 50 per cent of Standard Profil’s 2,300 Turkish workers from the plant in Düzce and a sister factory in Bursa, and gained formal certification of recognition by March 2011, as required under trade union laws in Turkey.
 
Nevertheless the company then engaged in legal challenges to the certification in an effort to block workers from their legitimate workplace rights and sacked 37 union activists inside the larger Düzce factory during the organizing period. The judiciary process decided that the majority of union members were dismissed for unjustified reasons and the company must reinstate them.
 
Some years earlier, Petrol-İş, with the support provided by its national centre and global union, lodged a complaint with the World Bank's International Financial Corporation (IFC). The IFC and the accompanying Multilateral Investment Guarantee Agency (MIGA) loaned the company development money, and criteria under that loan requires the company live up to social and environment standards. After assessment, a compliance office for IFC/MIGA determined that managers must undertake awareness and education efforts regarding labour rights and work conditions, which took place in 2008 and 2009.
 
Petrol-İş celebrated its victory, including gaining an additional 2,000 new members, at a large rally on 24 December 2012 of all members in the city of Düzce, where the company operates its biggest factory. IndustriALL Global Union’s Assistant General Secretary Kemal Özkan was one of the attendees of the rally.
 
“Over the last four years, our united strength has played a vital role for this success,” said Mustafa Öztaşkın, President of Petrol-Is in his letter to IndustriALL. “We are aware that the road to victory has been paved with your decisive and determined solidarity and contributions. Many thanks for your solidarity and valuable contributions to our struggle,” Öztaşkın added.

Standard Profil is a Turkish-based multinational supplier of automotive sealing systems producing for major automakers such as Audi, BMW, Citroen, Daimler, Fiat, Ford, GM, Mercedes, Nissan, Opel.  The company recently purchased some plants of Spanish Kaufil.