Agreement reached at Tenaris in Brazil

The agreed wage increase is of 8 per cent, which is 2.3 per cent more than the increase granted for inflation, they also agreed on a bonus. At the national level bargaining is at an impasse and companies are only offering 6.5 per cent increase. The wage increase applies to all workers in the plant and all workers went back to work on 29 September.

For long the company didn’t accept to negotiate with the local union Pindamonhangaba affiliated to CNM-CUT one of IndustriALL’s affiliates in Brazil. For the first time in over fifteen years, factory production was completely paralyzed, and remained so for 24 hours. The administrative sector employees also striked.

The President of the United Steelworkers of Pindamonhangaba-CUT, Renato Marcondes de Oliveira, the "Papaya", congratulated the workers for the strike, which has already become a landmark for the city and also for the Tenaris group.

IndustriALL GLobal Union and the Tenaris Workers’ World Council congratulate the workers at Tenaris Confab.

Unions fight back against the explosion of agency labour

“Employment via agencies, labour brokers, dispatchers and contractors is being used to wholesale replace permanent, direct employment. Its use goes way beyond any legitimate need to fill genuinely temporary vacancies,” said Jyrki Raina, General Secretary of IndustriALL Global Union.

Massive expansion

‘The Triangular Trap’ reports that the “according to the global agency industry body, the International Confederation of Private Employment Agencies (Ciett) the industry’s global annual sales revenue increased from €83 billion in 1996 to €203 billion in 2009 and the number of agency workers has more than doubled over the same period.”

The defining characteristic of agency labour is a triangular relationship between the user enterprise, the agency and the worker, isolating the worker from the enterprise that effectively controls their work, their pay and their conditions so that the worker has no say in any of them and has no mechanism to negotiate improvements.

The result is agency workers typically receive lower wages than directly hired workers performing the same work and they are excluded from numerous benefits and face higher health and safety risks. Agency workers are also typically unable to join a union or bargain collectively.

“Employers all over the world are taking advantage of laws which allow them to replace their permanent workforces with agency workers in order to avoid their employment obligations,” said Raina.

Industry lobbying to increase use of agency labour

The report exposes how agencies and Ciett gloss over the negative consequences of agency work in their lobbying efforts to remove legal restrictions on agency work. In a chapter on busting the myths put forward by Ciett, The Triangular Trap cites numerous examples from workers and unions around the world who are fighting against the negative impact of agency work.

IndustriALL is launching ‘The Triangular Trap’ as part of its global campaign to stop precarious work. On October 7, the World Day for Decent Work, IndustriALL affiliates mobilized their members to take action against the spread of agency work and other forms of precarious employment.

“With ‘The Triangular Trap’ IndustriALL is sending a message to business and governments worldwide that we will not sit quietly while workers’ rights and the labour standards and protections that have been achieved through union struggle are undermined by agency work,” said Raina.

Unions fight back against explosion of agency labour

IndustriALL Global Union’s new report ‘The Triangular Trap: Unions take action against agency work’ exposes the global forces behind the spread of agency work and shows how unions are fighting back.

Across all industries, in all parts of the globe, IndustriALL is witnessing a radical transformation of the way that workers are employed. Employment via agencies, labour brokers, dispatchers and contractors is being used to wholesale replace permanent, direct employment.

Explosion of agency work

According to global agency industry body Ciett, the agency industry’s global annual sales revenue increased from €83 billion in 1996 to €203 billion in 2009 and the number of agency workers has more than doubled over the same period.

The use of agency workers now goes way beyond any legitimate need to fill genuinely temporary vacancies. It is now common to find workers employed for years as temporary agency workers on continuously renewed contracts. Their status is temporary, so they are denied the benefits and job security of permanent jobs, but the work they are performing is not.

Once confined to peripheral activities, agency work is increasingly present in core production areas, and in some cases entire workforces have been replaced by agency workers.

We are seeing workers transferred overnight from direct employment to agency employment, without their knowledge or consent. The workers continue in the same jobs, doing the same work but their wages are now lower, their benefits are cut and they are no longer able to bargain collectively with their employer.

Consequences for collective bargaining

The impact of increasing indirect employment on collective bargaining is devastating. Agency workers are prevented from bargaining with the enterprise that they work for, since it is not legally their employer, and they are not able to effectively bargain with the agency itself since it is the enterprise that controls their pay and conditions. Workers are left out in the cold, while the real bargaining takes place between the agency and the user enterprise which together determine the terms of the contract between them.

As permanent work is replaced by agency work, collective strength is gradually lost and wages and conditions for the remaining direct employees are driven down. It is not uncommon for more than one agency to be present in a workplace, further dividing the workforce and reducing still further the possibility of collective action.

Industry lobbying to increase use of agency labour

‘The Triangular Trap’ exposes how agencies and Ciett gloss over the negative consequences of agency work in their lobbying efforts to remove legal restrictions on agency work. It destroys the myths perpetrated by the agencies that they create jobs and promote decent work.

Global campaign

IndustriALL is launching ‘The Triangular Trap’ as part of its global campaign to stop precarious work. On October 7, the World Day for Decent Work, IndustriALL affiliates mobilized their members to take action against the spread of agency work and other forms of precarious employment.

The Triangular Trap gives numerous examples of how unions around the world are fighting back against agency work. IndustriALL affiliates are striking collective agreements that put strict limits on the use of agency labour, even banning it from entire industries. They were also mobilizing, taking to the streets to demand that governments take action against the expansion of indirect employment and the destruction of worker rights that it brings.

Demands on governments

Yet more and more countries are introducing legislation to enable the expansion of indirect employment via agencies, contractors and labour brokers. IndustriALL affiliates are fighting these initiatives wherever they appear. The latest offender is Mexico which is forcing through legislation to allow unlimited subcontracting of employment with no worker protections.

IndustriALL is demanding that all governments respect their obligations to protect workers’ rights and stop this massive and unprecedented expansion of agency work.

IndustriALL is calling on governments to:

There must be strong controls to prevent agency work being used as a replacement for permanent work.

With ‘The Triangular Trap’ IndustriALL is sending a message to business and governments worldwide that we will not sit quietly while workers’ rights and the labour standards and protections that have been achieved through union struggle are undermined by agency work. IndustriALL and its affiliates will continue to campaign against agency work and all other employment models that give maximum flexibility to companies at the expense of workers.

Each one, teach one!

Following the Automotive Working Group Meeting in St Petersburg, Helmut Lense, Director for Auto & Rubber Industries at IndustriALL Global Union, carried out a Strategic Planning meeting with affiliate ITUA, which organizes in the major TNC’s in the St Petersburg Auto Cluster. 

Lense who also invited Tony Murphy and John Cooper from UNITE to participate, explained how the IndustriALL Global Company Networks function, stressing the importance of building direct links and coordination mechanisms between unionists to exchange experiences and devise common strategies to fight for workers’ rights and decent working conditions for all. 

As several participants came from the GM St Petersburg plant, which the Automotive working group had visited, they shared information about the dire health and safety conditions and recent dismissals of workers fired for union activism with the UNITE representatives, who promised to take up these issues up with the UK union and the global network.

The group of organizers and activists were keen to describe the tough working conditions in the auto assembly and auto parts sector, as well as the aggressive anti-union tactics that MNC’s impose on Russian workers. They also had many questions about building concrete solidarity with their counterparts worldwide and wanted to learn about effective union structures in their sector in other parts of the world.

Bob Van Cleef, CAW National Representative/Organizing Department and Annie Labaj, from the CAW International Department followed up with a lively participative three day workshop where the activists and organizers shared the daily challenges and patterns of employers’ anti-union tactics they confront and where practical solutions and strategies to build up the union membership were jointly devised.

The young and very active participants were particularly impressed and galvanized by the energy and optimism of Bob, a seasoned organizer from Ford and by his in-depth familiarity with the challenges workers face in their workplaces, as well as at the bargaining table.

At the end of the workshop and with support from the union leadership, the participants had designed a Chart of Organizing Principles and their Action Plans for the targeted workplaces, which will be tabled and discussed in their upcoming Congress in October.

As Helmut Lense declared, 

“We need to continue this kind of concrete articulation and sharing of experiences and skills between unionists, who can really teach each other how to win battles for workers rights to a decent job.”

This workshop is part of the ongoing three year Organizing Project for the Auto Sector in the St Petersburg area supported by CAW Canada, which is scheduled to continue until 2014.

Mexican parliament debates today on dangerous labour law reform

The ITUC, AFL-CIO, CLC and trade unions from 20 countries have written to the Mexican parliamentary coordinators to express their severe concern over the proposed reforms to the labour law that stands to curtail all core labour and trade union rights of Mexico’s workers. As is widely known and reported, workers in Mexico already face considerable obstacles to organizing and operating independent trade unions, as anti-union employers exploit a system of protection contracts with impunity from complicit authorities. A group of US members of Congress have written to Secretary of State Hillary Clinton registering their concern.

Ally of the corporations, outgoing president Calderón has the support of President-elect Enrique Peña Nieto who takes office on 1 December. Peña Nieto’s PRI party has historic links to the institutionalized corporatist trade unions in Mexico, and strongly supports increasing flexibility of the labour market at workers’ expense.

Democratic trade unions in Mexico have been in the street this week in staunch opposition to the proposed legislation that threatens their last remaining rights. The independent trade union of Nissan workers blocked the main “Sol” highway between Mexico City and Cuernavaca for three hours on 22 September. The 4,000 trade unionists caused enormous traffic queues in both directions in their protest rejecting the labour law, especially its attack on job security and today massive marches are planned throughout the country.

The proposals won the endorsement of the parliament’s Labour Committee yesterday by 21 votes to 8, with no alternative proposals passed to parliament.

The proposed changes would legalize subcontracting without creating a regulatory mechanism to ensure accountability of companies for the respect of labour rights through their production chains. Under the new law workers could be hired without job security on six-month probation contracts or even hired by the hour. The proposed legislation would also weaken the right to strike, widen the abuse of protection contracts used by employers to bypass the legitimate trade unions representing its employees, and interfere with union autonomy.

Even the legality of the legislative process itself is highly dubious in this case. The preferential fast-track process is new in Mexico and would bypass the democratic process. As IndustriALL General Secretary Raina wrote to parliamentary coordinators of the Mexican Congress, the process shows:

… utter contempt for the views of legislators, workers and citizens and is in clear violation of international labour and human rights standards, including ILO Conventions 87 and 98, and other international law.

See the previous IndustriALL report, and copies of the letters sent here. (http://www.industriall-union.org/join-the-resistance-against-proposed-regressive-labour-law-reforms-in-mexico)

Autoworkers reach deals with Big Three in Canada

Late on 26 September 2012, CAW finalized negotiations and signed a new tentative four-year agreement with Chrysler. This was the last of three agreements with the biggest auto makers in Canada. The agreement is to be submitted to a vote by the workers for their final approval, with 82 per cent of auto workers already voting in favour of the Ford agreement. The agreement with General Motors is currently going through the approval vote.

In a bid to get concessions from the union during the negotiations the automaking companies had claimed Canada became the most expensive place for production of cars and trucks because of a strong Canadian dollar vis-à-vis the US dollar, therefore making it expedient to move production south. The Canadian share of production currently accounts for 16 per cent of North America.

The union managed to get a similar deal with Chrysler within the patterns set by previous two agreements, which includes a C$3,000 bonus for members after ratification and cost of living lump sum payments of C$2,000 in December of 2013, 2014 and 2015. It also provides protection of current pension benefits for existing workers.

Also, Chrysler agreed to the same 10-year new hire grow-in program included in the Ford and GM agreements with new hires starting at C$20.40, which is equal to 60 per cent of the current base rate, growing to full compensation after 10 years.

More details are on CAW website www.caw.ca

Syngenta Pakistan refuses to regularize 50 contract workers

Now, after failing to achieve judicial support despite the efforts of a famous law firm in Pakistan, management is attempting to establish a yellow union and crush the Syngenta Employees Union. The small Syngenta Employees Union is affiliated to IndustriALL’s affiliate Pakistan Federation of Chemical, Energy, Mine and General Workers’ Union (PCEM). The dismissed General Secretary Brother Imran Ali, who is also President of PCEM, learned of his dismissal in the local newspaper and was clearly sacked for his trade union activities.

PCEM General Secretary Muhammad Suhail contacted IndustriALL 23 September to warn on yellow union development and to report on the on-going legal process.

The 2,000 member national union celebrated a great legal victory in March 2012 when the case for full employment rights for 50 contract workers was won in the Labour Appellant Tribunal. The case had already been appealed once but again management preferred to continue financing an expensive legal process and keep its Pakistani employees on short-term precarious contracts. All 50 petitions are now pending before the High Court of Sindh Province. Repeated union offers of dialogue have been rejected by the local management of the global pesticide producer.

One of IndustriALL’s predecessor organizations, the ICEM conducted considerable solidarity assistance for the Syngenta Employees Union. Together with Swiss affiliate UNIA, pressure was brought to the global management and the Pakistani authorities for justice in this case. That solidarity and support will continue until Syngenta begins to conform to its own code of conduct which states:

“The Syngenta Code of Conduct sets out our commitment to comply with all labour laws, national and international codes and conventions, and to uphold the principles set out in the Universal Declaration of Human Rights and the International Labour Organization’s Core Conventions. These include the right to freedom of association, the right to organize and collective bargaining, equal remuneration and minimum age requirements."

The PCEM led by General Secretary Muhammad Suhail continues to push for the full reinstatement of Syngenta Employees Union General Secretary Imran, with full back pay and benefits, as well as the lawful recognition of the 50 workers who won their case in the Labour Court for rights to permanent employment at Syngenta.

Riot police disperse sacked workers at Texim producing for Hugo Boss

On the morning of 24 September, 12 bus loads of riot police were waiting for workers arriving to continue the protest. The heavily armoured police forced workers away from the factory and kept them surrounded a block away. There the workers were supported and joined by two parliamentarians and by other workers, but police used aggression to stop the group approaching the factory, hospitalizing one worker and beating others. See the video here and here.

The 35 sacked workers are members of TEKSIF, Textile, Knitting and Garment Industry Workers’ Union, an affiliate of IndustriALL Global Union. TEKSIF struggled against the well-known obstacles to trade union rights in Turkey, as well as employer intransigence, to organize workers at Texim.

Unionization at the plant was led by workers in the knitting department who were then targeted by management by punishing changes to working conditions, unilaterally ordering a 50 per cent increase in the department’s production. When workers rejected the impossible demand they were threatened and then sacked on the morning of 7 August.

Since the mass dismissal, the 38 trade unionists have conducted a peaceful picket in front of the plant, each morning for more than 50 days arriving to pitch a tent and protest their treatment with the support of fellow trade unionists from inside the plant. TEKSIF membership continues to grow steadily at the plant, causing management to increase pressure and sack a further two active trade unionists.

IndustriALL has taken up this case through various channels and will continue to do so. General Secretary Raina condemned the sackings in writing to Texim owner Haldum Boz.

Texim employs around 700 garment workers in the Merter district of Istanbul, and produces mainly for Hugo Boss’ German market, and also for other major brands such as Pierre Cardin.

Germany’s IG BCE and chemical employers call for just transition

The joint letter to Chancellor Angela Merkel from IG BCE, the German Chemical Industry Association (VCI) and the Federal Chemical Employers’ Association (BAVC), appeals to the Chancellor to ensure that the transition in Europe’s largest economy to sustainable energy production be cost effective and socially fair.

The paper emphasizes the importance of energy to the energy-intensive chemical industry in Germany, and the continued need into the future of an affordable and reliable source of electricity. The union and employers agree that the conversion of energy supply should not create competitive disadvantages for the industry.

The IG BCE conducts industry-wide collective bargaining with the BAVC, on behalf of 550,000 chemical workers employed at some 1,900 companies. The paper is signed by IG BCE President Michael Vassiliadis, VCI President Klaus Engel, and BAVC President Eggert Voscherau.

The German Renewable Energy Act (EEG) was passed into law in 2000. That legislation encourages energy efficiency and led to a massive boost in renewable energies in Germany. The cost of EEG provisions is paid for by customers and not by the tax payer in Germany. It has already caused a large shift from fossil and atomic energy supplies to renewable energy sources and a large shift from centralized electricity structures towards a decentralized approach of energy production, dispersing production from a small number of large companies.

IG BCE, VCI and BAVC say that the EEG and energy tax exist to ensure competitiveness and the preservation of jobs. Central questions about the energy transition remain unanswered though, especially on the security of supply, the much needed development of networks and plants, and the social factor.

The joint declaration states:

The chemical industry has a long tradition, to improve its own energy efficiency. As a result, the industry has reduced its energy consumption during the period 1990-2010 by 20 per cent, while production increased by 58 per cent in the same period.

Around 17 per cent of electricity in Germany is now generated by renewables. The renewable energy industry in Germany employs around 350,000 people.

Apple’s new products increase pressure on Foxconn workers

Reportedly the tensions started on 23 September as a result of an excessive use of force used by guards against workers. Over 2,000 people were involved in fights resulting in 40 being hospitalized and suspended production. The company officials deny the guards involvement in the conflict, but demanded additional government forces to prevent further riots.

On 29 March 2012 Apple publicly claimed to address working conditions at its Chinese supply chain factories that build iPhones, iPods and iPads. Earlier Apple employed Fair Labor Association (FLA) to carry out an audit at its chain of suppliers. In their report (/wp-content/documents/reports/foxconn_verification_report_final.pdf) dated to August 2012 the FLA referred to rapid improvements at Foxconn enterprises in China since their last missions in July including improvements in working time and wages.

However, a set of testimonies http://chinalaborwatch.org/news/new-422.html collected by the network of activists, China Labor Watch (CLW), from Foxconn workers and published just a few days before the clashes at Taiyuan factory revealed no changes in workers’ conditions, with many saying they have to work additional overtime, sometimes two or three times in excess of the legal limits allowed in China in order to meet Apple’s deadlines.

According to these reports, workers’ pay also remains inadequate and does not fully remunerate long extra hours of work imposed on them. Many report on a fierce attitude of guards towards workers.

Earlier IMF (now IndustriALL Global Union) together with International Trade Union Confederation (ITUC), Good Electronics, MakeITFair and Students & Scholars Against Corporate Misbehaviour (SACOM) expressed serious concerns over FLA’s ability to adequate audits of Foxconn sites based in China without involvement of independent unions able to express workers’ concerns "Give Apple workers a voice in their future".

The recent SACOM report (see the link http://sacom.hk/archives/960) released one day before official launch of iPhone 5 confirms one more time these concerns. SACOM interviewed 60 workers in Zhengzhou, detailing continuing problems at the Foxconn plant.

Given its terrible track record on labour relations, IndustriALL’s Indonesian affiliates are expressing concern about Foxconn’s recent announcement to establish production in Indonesia.

“We believe they want to use outsourced workers, and not follow the labor law,” says Said Iqbal, chairman of the Confederation of Indonesian Trade Unions (KSPI).