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.

People before profit is the call at Africa’s Mining Indaba

In its 19th year, the Indaba is no small affair; 7,500 participants and representation from 1,800 companies have gathered in Cape Town, South Africa for the event taking place from 4th to 7th February. Delegates come 100 countries and in addition to those representing mining and government, there is a good sprinkling of services representation, in particular those representing financial firms.

South Africa is keen to portray  that it is ‘business as usual’ after the Marikana incident in which 34 mineworkers were shot dead by police in August last year, related violence and high levels of industrial unrest in the mining sector for almost all of the second half of 2012.

‘No more Marikanas please’ is what government is asking of business.  Mineral Resources Minister Susan Shabangu, gave business the assurance that South Africa will not nationalise the mines and called for an end to discussions and debates on nationalisation. That’s government holding up their end to rebuild investor confidence, but business needs to keep up theirs, which Shabangu spells out as labour conditions at the mines must improve and industrial unrest needs to be avoided. 

It seems quite a gentle approach but Shabangu has been criticised for not being soft enough on mining companies, badly bruised by the events of 2012, in particular her firm objection to Anglo Platinum’s intention to retrench 14,000 workers. Anglo Platinum, which recorded a loss for 2012, is expecting workers to bear the brunt of this, laying blame on workers for the two month strike at its Rustenburg operations. However, Anglo Platinum was on a poor trajectory before the industrial unrest, as a result of high cost inputs, in particular of electricity and water and low platinum prices. Anglo Platinum controls most of the world’s platinum production and so can increase demand and the price of platinum by reducing its output. The company intends to do just that by closing two of its mines and selling another.

A billboard as you enter Cape Town from the airport, tells you how Anglo Platinum is keeping its promise to build 26,000 houses. There should be one next to it saying ‘Amplats giveth and Amplats taketh away’, telling you of the families that could potentially be made homeless when 14,000 breadwinners lose their jobs, assuming that they have houses to lose in the first place.

The need to balance the well resourced spin on corporate social responsibility with a good dose of reality, is one of the principle reasons why civil society working on issues of the extractives sector gather at an Alternative Mining Indaba. It is a side event to the big show; the entrance fee to the Mining Indaba is designed to be out of the reach of civil society, hence ensuring its exclusion.

Civil society draw attention to policy issues as well as actions and impact of mining companies that undermine workers, communities and the environment.  This year has delved deep into the underlying issues that Marikana brought into the public eye and much attention is being paid to the poor conditions for communities living next to the mines; absolute poverty at the coalface of absolute wealth.  

Numsa opposes proposed electricity tariff hikes

Energy regulator had agreed to 3 multi year price determination (MYPD) periods each for three years and the second MYPD is due to come to an end in March 2013. The National Union of Metalworkers of South Africa (Numsa) argues that Eskom’s proposal for the third MYPD to be extended from three years to five years is a ploy to extend the security period of these enormous tariff hikes.

The tariff increases will result in a 110 per cent increase, raising the price of electricity from the current 61 cents per kilowatt-hour to 128 cents per kilowatt-hour in 2017/18. 70 per cent of energy production is consumed by industry and mining and manufacturing companies will be hard hit by the increase, especially many energy intensive users where Numsa has a strong membership base.

Numsa is concerned that the massive rice increases will adversely affect local industries and companies will be forced to shut down or reduce the size of their workforce through retrenchments. The union has proposed single digit increase that is inflation based.

In his presentation to Nersa at the public hearing in Cape Town, Deputy General Secretary of Numsa, Karl Cloete said, “In a country with already shocking and unacceptable levels of unemployment we cannot facilitate the retrenchment of workers by allowing Eskom to deepen companies’ already severe financial strain and further erode their competitiveness.”

Numsa also raises concern on the impact this will have on poor households for whom the price increase will be far above inflation. These households will also have to faced increase costs of consumer good as a result of the hike.

Eskom’s proposal is based on the need to generate R1.1 trillion in revenue to cover its costs including a massive capacity expansion programme required as a result of poor planning and investment that led to a supply crisis and rolling blackouts in 2007/8.

Whilst Cloete recognises the necessity of the capacity expansion programme, he argues, “Citizens, the poor in particular and local industry cannot be punished with outrageous hikes to the point of deepening unemployment, poverty and inequality as a result of inaction or wrong policy choices by political elites.”

Numsa questions some of Eskom’s revenue requirements, including the accumulation of R43 billion over the proposed MYPD period for its sole shareholder, the South African government, which does not go to the fiscus but is returned to Eskom to bolster its balance sheet to achieve a good credit rating. 

Numsa plans to picket at all nine provincial hearings that will be held through the second half of January.

IndustriALL extends full solidarity to NUM

After the tragic events at the Lonmin Marikana Platinum mine on 16 August 2012, in which 34 mineworkers died in a violent clash with police forces, an IndustriALL Global Union solidarity delegation was received by NUM on 6 and 7 December 2012.  

Andrew Vickers, of CFMEU, and leader of the IndustriALL mission to South Africa, reported on the appalling working and living conditions found in the mines in South Africa by the delegation.

Living in cramped, inadequate hostels and shanty towns with no facilities that are constructed on company land, the unrest of the workers is not surprising, 

said Vickers.

A significant portion of the responsibility for the unrest must lie with the mining houses, which continued to make considerable profit while workers live in temporary and appalling conditions,

he added.

And it is clear to us that if you destroy NUM then you destroy the broader trade union movement in South Africa,

said Vickers.

Commenting on the current situation and the challenges faced by NUM, COSATU and the union movement in South Africa, Frans Belani, NUM General Secretary reiterated the three factors of South African society that needed to be addressed – high unemployment, poverty and inequality.

South Africa had not escaped the effects of the global financial crisis with people at the lower end of the economy, including miners, are feeling the effects,

he explained.

Frans reported that the Platinum producers have now agreed to form a Bargaining Council and next year will negotiate as an industry rather than as individual companies, and that NUM is seeking to establish Bargaining Sectors across all industries.

The government and the Chamber of Mines have agreed on a second Commission of Inquiry to look into the working and social conditions of mineworkers. A lot of faith is being put into the success of the planned second Commission of Inquiry.

The mission on 6 and 7 December took place to enable IndustriALL and key mining affiliates the opportunity to extend solidarity support to the workers and members of NUM and the national centre, COSATU, following the crisis that began in the platinum mining sector.

The mission also gave IndustriALL and affiliates an opportunity to understand first hand the events and challenges that exist, enabling an informed discussion on the issues at the Executive Committee of IndustriALL on 12 December 2012.

Making a change for a HIV free Zambia

Located in Chingola in Zambia’s Copperbelt, which is responsible for the production of about 60 per cent of the country’s copper production, KCM is the major employer in the area with an estimated total workforce of 28,000, of whom 20,000 are contract workers.

The VCT campaign was co-sponsored by the District Aids Task Force (DATF), KCM  and IndustriALL Global Union. Events started with an awareness raising march that led to the KCM mine club, where KCM and the District of Chingola office made available councilors and testers whose aim was to test 1,000 people during the day. 

The event was well attended by workers, their families as well as members of the community, who were provided with food and drinks and t-shirts to commemorate their participation.

“The spirit was jovial and even heavy rains did not spoil ours plans,” reports Africa Project Coordinator Paule Ndessomin. “By the early afternoon the target was reached, a total number of 1,009 people were tested with 47 found to be HIV positive.”

All those that tested positive were given referral letters to the main hospital for further tests and the District official gave his assurance they will be looked after.

IndustriALL affiliates in Sub-Saharan Africa acting against precarious work

Unions in the region have driven the adoption of legislation related to the use of precarious work. For example, the campaign in Senegal on precarious work, led by the SUTIDS (Syndicat Unique des Travailleurs des Industries Diverses du Sénégal) has resulted in the promulgation of a Presidential Decree on private employment agencies and workers employed by outsourcing companies in 2010. This law set limits on the use of precarious workers, promotes joint liability for precarious workers on the user-enterprise and equal treatment for precarious and permanent workers. Since the promulgation of the bill, the union has been working closely with labour inspectors to ensure that employers comply with this new legislation. Companies had to terminate their contract with subcontractors which were not complying with the new decree. Similar legislative developments have occurred in Nigeria and Guinea.

Through the project in Mozambique, SINTIQUIAF (Sindicato Nacional dos Trabalhadores da Indústria Quimica e Afins) has been able reinforce the use of social dialogue. All the stakeholders, including temporary work agencies, have met and explored how to improve compliance with the legislation regulating precarious work. The close cooperation of trade unions with the ministry of employment and labour inspectors has already led to the denunciation of cases of violation of the law in regard to contract work.

Particular focus continues to be made by the trade unions on recruiting precarious workers and in gaining permanent status for precarious workers.  All affiliates participating in the project have increased their membership in 2012.

2012 marked the start, in this region, of the second phase of the precarious work project, which is supported since it began in 2009 by the Finnish trade union solidarity centre, SASK.  IndustriALL Global Union is running this project in 9 countries: Nigeria, Mozambique, Mauritius, Senegal, Guinea, South Africa, Namibia, Burkina Faso and Niger. Seventeen affiliates of IndustriALL have been participating and have been able to achieve noteworthy results that could inspire other affiliates worldwide.

From 2013 the project will target 4 new countries thanks to the support of ACV-CSC Building Industry Energy (BIE): Cameroun, Togo, Mauritania and Democratic Republic of Congo (DRC). Furthermore, participants have designed a strategy to involve all affiliates of IndustriALL Global Union in their countries in future project activities. 

Ghana must ratify mine safety convention

As reported by the Ghananian Chronicle Mr. Prince William Ankrah, GMWU General Secretary called for the ratification of the International Labour Organization mine safety convention as it is the “surest safeguard for mining safety in our sector and no amount of improvisation in whatever form by our governments can negate its relevance”.

Ghana, Africa’s second biggest producer of gold, has failed to ratify the Convention and its recommendations for the past 16 years.

The Convention was adopted on 22 June 1995 at the 82nd Session of the ILO General Conference at Geneva, Switzerland. The Safety and Health in Mines Convention, 1995 (No.176) is central to achieving decent work in an industry, which has occupational safety and health as its main challenge.

Part of the fight for achieving mine safety around the world is through ratification of ILO Convention 176 on safety and health in mines. This convention sets out guidelines on inspections, accident reporting and investigation, training, hazard control and a worker’s right to participate in workplace health and safety decisions and to remove themselves from danger.

As of today, 26 countries have ratified ILO C176.  See the list of countries to have ratified here.  

When it comes to occupational health and safety, governments and employers have responsibilities – workers have rights.

ILO issues recommendations to Russia and Belarus

Concerning the complaint of the Confederation of Labour of Russia (KTR), case no. 2758, the committee recommended discussing the joint proposal of the KTR and the Federation of Independent Trade Unions of Russia (FNPR), regarding the complaint within the framework of the Russian Tripartite Commission, and taking legislative steps towards remedying various problems with union and labour rights in the Russian law.

It also strongly recommended excluding leaflets of the Interregional Trade Union of Autoworkers (ITUA), an IndustriALL affiliate, from the federal list of extremist materials, and ensuring that will never happen again. http://www.industriall-union.org/archive/imf/fighting-for-decent-work-is-extremism.

The ILO has also recommended investigating allegations of anti-union persecution of Valentin Urusov, trade unionist sent to prison for six years, and to release him immediately if these allegations turn out to be true.

At its sessions the ILO supervisory body has also reviewed the measures taken by the Government of Belarus to implement the 2004 recommendations of an ILO Commission of Inquiry on case 2090, started more than ten years ago. The Committee deeply regretted that the Government had once again failed to reply to the Committee’s previous recommendations and to the new allegations of freedom of association violations. It urged the Government to be more cooperative in the future.

The executive body has considered 32 cases and named five countries committing serious violations: Argentina, Cambodia, Ethiopia, Fiji and Peru.

All five cases are based on consistent violations of workers’ right to organize, collective bargaining and social dialogue.

Referring to the crisis in Greece, the ILO has also examined an extensive deficit of social dialogue in austerity measures taken in the country and highlighted the need for ILO assistance.

Putting unity into action in the DRC

The Conference was a success as it was able to agree on the policy issues which will shape how the union will build itself, contest and win shop-steward elections and hold a congress in 2014,

reports Kenny Mogane, Project Coordinator for IndustriALL.

Le Syndicat du Travailleurs Unis des Mines, Metallurgie, Energie, Chimie et Industries Connexes (TUMEC) is a relatively new union in the mining, energy, chemicals and industrial sectors. Recently formed by a group of worker leaders wishing to build a stronger union of united workers, TUMEC promotes worker participation in decision making and seeks to confront trade union challenges in its sectors.

The conference was attended by 62 delegates from around the country, who worked on how to mobilize members to participate in shop-steward elections in 2013 and the National Congress in 2014. The conference also dealt with constitutional matters and discussed financial autonomy.

The conference adopted a road map for the election campaign and a strategy to target large workplaces to popularize the union in various branches and mines. 

Namibian strike ends in settlement at Nampower

Workers resolved to challenge Nampower that provides full medical aid coverage after retirement for workers employed before 2004 but not for those who joined the company after. The situation also affects medical coverage for workers employed after the cut off point that are medically boarded.

Workers agreed to return to work on 21 November, satisfied with the wage and housing allowance deal that was reached between Nampower and the IndustriALL-affiliated MUN. The parties have agreed to the process and timeframe to resolve the dispute on medical aid benefits for workers after retirement or medical boarding.