Glencore-Xstrata merger approved

On 20 November in Zug, Switzerland, IndustriALL Global Union joined again with the Swiss Greens Party, and a number of civil society activists in front of the venue of Xstrata’s extraordinary shareholder meeting to demonstrate against the merger between commodity giants Xstrata and Glencore.

The merger to create a new natural resources powerhouse, Glencore Xstrata International, was approved by Xstrata shareholders on 20 November but without paying a multimillion-pound retention package to senior Xstrata managers as recommended by the board. The merger still requires approval by the European Commission, which has said it will give its ruling by 22 November, and from competition authorities in China and South Africa.

Xstrata and Glencore are among the top 20 firms on the London stock market and will have operations in 33 countries. Once the deal is complete they will be able to compete with bigger rivals like BHP Billiton, Vale and Rio Tinto. This vote eliminates an obstacle to Glencore chief executive Ivan Glasenberg’s plan to create the world’s fourth-largest mining company. IndustriALL Global Union has publicly condemned the deal.

“We are here to remind them that a vote for the deal is a vote for greed, any reasonable and sensible person would not vote for this merger, if the past is anything to go by and considering their track record we should be very afraid”

said Glen Mpufane during the demonstration in front of the venue of commodities trader Glencore's extraordinary shareholder meeting in the Swiss town of Zug.

In South Africa, the National Union of Mineworkers (NUM), the National Union of Metalworkers of South Africa (NUMSA) and South Africa’s energy utility Eskom have lodged intervention applications appealing against the Competition Commission’s recommended approval. The Competition Tribunal will hear the applications on 10 to 14 December 2012.

“IndustriALL Global Union and its alliance of partners and civil activists are going to be in the face of this new entity. We are going to hold them accountable and we will continue to demand that they do the right thing and become good corporate citizens if they are capable of that”

said Glen Mpufane, IndustriALL Global Union director for Mining and DJOGP.

IndustriALL Global Union’s protest against the merger was led principally by three of IndustriALL Global Union’s largest mining and metals affiliates, the United Steelworkers Union of America and Canada, the Construction, Forestry, Mining and Energy Union of Australia (CFMEU) and the National Union of Mineworkers of South Africa (NUM).

Eliminate violence against women

The day is designated in memory of three political activists in the Dominican Republican – the Mirabal sisters – who were brutally assassinated by the regime of dictator Rafael Trujillo on 25 November 1960.

The International Day for the Elimination of Violence Against Women also marks 25 November to 10 December, to emphasize the connection between women, violence and human rights, which encompasses 25 November, the 1 December World Aids Day, the Montreal Massacre of 6 December 1989, when 14 female engineering students were gunned down in Canada for being feminists, and 10 December, Human Rights Day.

Violence against women is an act that results in or may result in physical, sexual or psychological harm or suffering to women. Violence against women can occur in private, such as in the home, or in public. These forms of violence can be rape, domestic violence, trafficking, forced prostitution, sexual exploitation, sexual harassment, female genital mutilation, forced marriage, an arm of warfare and murder, inexorably linked to the problem of HIV-AIDS and gravely impacting on women’s rights. Prevention activities need to take place alongside efforts to reduce violence against women and girls. These programs must address the interconnection between gender and socioeconomic inequality and vulnerability to HIV/AIDS.

Gender-based violence is due to the pervasive system of injustice that perpetuates the dominance of men and the subordination of women and is the most glaring example of gender inequality. Gender-based violence adversely affects the world of work. It is described by many as the world’s worst human rights violation. At least one in three women worldwide are estimated to have been forced to have sex, physically beaten or otherwise abused. Apart from the human suffering, there is an economic efficiency argument to eliminating violence against women. Due to life-long discrimination and job stereotyping, most women work in low-paid and low-status jobs with little control or decision-making power or scope for bargaining. They are over-represented in atypical and precarious jobs which are risk factors for gender-based violence including sexual harassment and sexual abuse. Moreover workplace violence can take the form of bullying and mobbing.

The economic crisis is likely to have exacerbated violence against women. Women’s situation is more precarious and thus more vulnerable, which increases the likelihood of violence.

The interplay between domestic violence and gender-based violence at work has become increasingly clear. The victim may even be stalked by the abuser at work, with all the ramifications that this would have for the other employees. The poor job performance by the person concerned affects the whole workplace and decreases everyone’s productivity. The victim suffers from low self-esteem and stops interacting with the outside world. Absenteeism goes up, poor staff relations ensue.

A recent UK study estimates that domestic violence costs the economy 2.7 billion pounds (4.2 billion USD) a year in reduced productivity, lost wages and sick pay. In the United States in 2011 The Novartis Pharmaceuticals Company was found liable in one of the biggest-ever sexual harassment and discrimination cases and ordered to pay 3.3 million USD in compensation and 250 million USD in damages to 5,600 women who were also entitled to seek additional awards of up to 0.3 million USD each.

Unions in male-dominated industries should lead the campaign to stop violence against women. Partnership between women and men must be fostered in order to create an environment which nurtures peace and development. Unions should fight gender-based violence through collective action of men portraying this as a sign of strength and not of weakness. Working with men to eliminate violence against women will be a giant step on the way to gender equality.

Many countries have passed stronger laws to tackle the problem of violence against women. There are a number of regional treaties that have enshrined laws to stop the violence. Nevertheless the workplace itself can be a platform for the prevention of violence. Collective bargaining can be a basis for tackling violence. Equality agreements which provide for transfers and monetary compensation for victims of domestic violence are one more tool.

Sanction of the Xstrata Glencore merger challenged

Whilst the European Union is still considering the merger in terms of its anti-trust regulations, it has advised Glencore to spin off some of its zinc assets. In South Africa, while the Competition Commission has recommended approval of the merger contingent upon certain conditions being met by Glencore, NUM, NUMSA and South Africa’s energy utility Eskom have lodged intervention applications appealing against the Competition’s recommended approval. The Competition Tribunal will hear the applications on 10 to 14 December 2012.

Glencore is a leading global trader in a number of key commodities including coal that also has shareholding interests in mining production of coal and anthracite. Xstrata is one of world’s largest exporters of thermal coal and one of the largest producers of coal used to make steel. In South Africa there is overlap, as both are miners of thermal coal and in the service of coal traders for export of their production.

IndustriALL Global Union has publicly condemned the deal, it has participated in protests against the deal and has requested meetings with Glencore that were rebuffed by CEO Ivan Glasenberg.

The National Union of Mineworkers (NUM) raised concerns to the Commission stating “Glencore as a bigger producer will probably fix prices for all the targeted firms as opposed to current individual operations who have latitude to agree on a price with a purchaser of the mineral”. The NUM also opposed the retrenchment of 180 workers that would arise from the merger and took issue with the fact that over 50 per cent of the merging parties’ workforce are contract workers. Thus more than 9,000 workers have no job security and are put at risk by the merger.

Eskom is highly critical of Glencore that it is establishing itself as the gate keeper of South Africa’s coal exports and says it has little interest in developing and maintaining the South African domestic market. It claims that Glencore’s philosophy is diametrically opposed to that of Eskom and the public interest, “Eskom perceives Glencore’s end game to be the introduction of an export market related price factor for coal”.

The National Union of Metalworkers of South Africa (NUMSA) has also submitted an intervention application citing concerns in line with Eskom’s submission on the increased risk to coal supply and price, undermining the utility’s ability to generate electricity on a reliable, stable and sustainable basis. Numsa charges that the Commission has not given sufficient consideration to the likely risks on downstream industries in the value chain, especially those that are energy intensive users.

Numsa also raises the issue that the recent retrenchment of 295 workers at Siltech, a subsidiary of Glencore, was omitted by parties deliberately to reduce the stated effect on jobs of the merger and was not considered by the Commission.

IndustriALL Global Union supports NUMSA, NUM and Eskom in their intervention applications to the South African Competition Tribunal and wish to remind the Tribunal and the Xstrata Shareholders who will be voting on the deal next week that a vote in favour of the deal is a vote for Greed.

South African workers' protest violently put down at Xstrata

Workers went on an unprotected strike when Xstrata failed to take action against a white manager at its Kroondal chrome mine after he assaulted a black worker allegedly for refusing to sign a wage deal without union representation.

On 2 November, 400 striking workers, roughly two thirds of the workforce, were dismissed but protest action continued. On 8 November, police violently broke up the protest firing rubber bullets, injuring 8 workers, one critically, and arresting several workers. Injured workers are unable to access medical care as Xstrata has suspended their medical aid.

The National Union of Metalworkers of South Africa (Numsa) suspected that some police might have fired live ammunition at protestors, however the union was being denied access to injured and arrested workers to establish this.

Then on 12 November, police shot at protestors chasing them into the township whilst continuing to fire on the fleeing workers. Police shot one of the workers at close range in front of a local ward counsellor that was there to assist with resolving the dispute. Three workers were arrested.

Numsa reports that police have denied the union access to arrested workers, requiring lawyers to intervene. There are also allegations made by arrested workers of police brutality whilst in detention.

Numsa has criticised the police for intervening in what is an industrial relations matter that needs to be resolved through negotiations with the union. “Xstrata calls in the police to do their dirty work, who without even assessing the situation, shoots at workers and chases them,” says Steve Nhlapo of Numsa. “Workers were not undisciplined in their protest but police are using excessive force and trying to intimidate them into submission but this is only making workers more angry.”

Numsa proposed that in order to resolve the matter to the satisfaction of workers, the manager could be suspended pending a hearing by an independent arbitrator. Xstrata maintains that an internal hearing found that there was insufficient evidence to discipline the manager and mine management are refusing to budge on the matter.

Meanwhile workers at Xstrata’s three ferrochrome smelters in South Africa are also on strike, demanding higher wages and transport allowance. Xstrata is attempting to have workers sign individual contracts in an attempt to undermine Numsa and the resolve of striking workers.

STOP Precarious Work mobilization, October 2012

Affiliates from all regions and representing all the industries that make up IndustriALL have recognized precarious work as a common threat to workers’ rights throughout the world that must be resisted. The mobilization around October 7 was significant as the first occasion that IndustriALL affiliates have united globally in a common action.

Affiliate actions
Altogether, 150 affiliates from 46 countries reported taking part in what was a truly global action. Workers took to the streets in Burkina Faso, Colombia, Guinea, Hong Kong, Hungary, India, Indonesia, Kyrgyzstan , Mali, Mauritius, Sri Lanka, Thailand and many other countries. Affiliates reported on actions which varied from distribution of campaign materials in workplaces and thematic conferences to demands on government, flash mobs, public hearings and mass mobilisations in marches and rallies.

The full list of affiliate actions plus many inspiring photos can be seen on the IndustriALL website, as well as on Flickr. The photos show unionists around the world mobilizing under the IndustriALL banner. The poster and leaflet created for the campaign were translated into more than 14 languages and were widely used by affiliates to send a strong message to governments, employers and the public that unions are united in their opposition to precarious work. News of the actions was carried on Facebook and Twitter and A STOP Precarious Work Cause page on Facebook was supported by over 1700 people.

Reflecting the spirit of unity in which IndustriALL was founded, affiliates in a number of countries came together in joint actions under the banner of IndustriALL. Many affiliates were also able to influence their national centres to take up the fight against precarious work for their actions on the World Day for Decent Work, further strengthening the IndustriALL campaign. Affiliates also reported significant success in gaining national media coverage of their actions.

‘The Triangular Trap’
On October 2, IndustriALL released ‘The Triangular Trap: Unions take action against agency labour’ as part of the campaign. This report attacks the massive expansion of employment via agencies, labour brokers, dispatchers and contractors and the wholesale replacement of permanent, direct employment. It exposes the lobbying efforts of the global agency industry body Ciett to remove legal restrictions on agency work, and draws heavily on the experiences of IndustriALL affiliates.

Unions have started using “The Triangular Trap” to inform their members and the public of this global threat to workers’ rights, and to strengthen their demands on government and employers. It is available in English, French, Spanish and Turkish on the IndustriALL website, or in hard copy on request.

The struggle continues at Zesa

Lopes met with the Minister of Energy and the CEO of the Zimbabwe Electricity Supply Authority (Zesa) to discuss ongoing labour rights violations at ZESA that suspended 135 workers on 17 July 2011 for allegedly threating to strike.

Whilst workers have been reinstated, three workers, facing the same charges as the rest, have been dismissed and have not been granted appeal hearings. Most of the workers that have returned to work, after being suspended for more than two months, have not received pay for their suspension period.

Angeline Chitambo, ZEWU President and an IndustriALL Executive Committee member, has been dismissed by ZESA without a fair hearing. Another ZEWU leader, Dennis Mukote remains suspended.

ZESA also continues to disregard an arbitration ruling, which entitles workers to a fair wage increase and is central to the current labour issues at ZESA. ZESA’s further challenge in court of the impartiality of the arbitrator is a transparent attempt to undermine the arbitration process in an attempt to nullify the wage increase that has been awarded to workers.

Lopes stressed that the violation of hard won worker and trade union rights would not be allowed to go unchallenged. He urged the Minister of Energy to intervene to ensure that the issues are resolved and warned both the Ministry and Zesa that if the issues were still ongoing at the time of the Executive Committee meeting in December, IndustriALL would rally up support to ramp up its campaign.

Since the meetings, Zewu reports that there have been discussions between the Ministry and Zesa and that the union remains hopeful that the issues will be resolved. The union is waiting for a date set by Zesa to appeal the dismissal of Chitambo. It has been agreed that Makote’s case will be heard by an arbitrator. Zewu has also taken the matter of the 3 dismissed workers to the Ministry of Labour, citing unfair labour practice.

Whilst Zesa is still pursuing a high court challenge of the arbitration award, Zewu has laid criminal charges for contempt of court against Zesa managers for failing to apply the arbitration ruling.

“It is going to end” says Assistant General Secretary Mbonisi Sibanda “but the journey ahead is still long, tough and very thorny”.

MUZ leaders commit to union rebuilding

The three day workshop, on 30 October to 1 November in Kitwe, gave branch leaders the opportunity to reflect on the challenges that the union faces and to come up with strategies to address these.

One of the biggest challenges is the proliferation of small unions since the privatization of the mining industry in Zambia, a situation that seemed to be encouraged during the previous regime. This has resulted in three or four unions competing for the same membership in mining companies and inevitably led to worker disunity.

The climate has changed positively for organized labour under the present government and participants felt that there seems to be genuine commitment to allow the unions to develop into a strong, representative and united force.

The new leadership of MUZ is committing itself to rebuilding MUZ and they are open to possibly working with other unions or possible mergers. MUZ recognizes the opportunity to reorganize itself and to redefine their membership’s role in the running of the union to improve union democracy.

Participants defined an organizing programme and discussed the way forward to bring back lost membership. The programme will be supported by the Solidarity Center and will focus on building membership in all the branches in the mining industry.

The workshop was supported by the Solidarity Center.

Lesotho workers march for a living wage

Workers are frustrated because government has failed to give a reason for the delay in gazetting minimum wages in Lesotho, which were to be effective from 1 October 2012. Trade unionist, Daniel Mariasane says that initially government wanted to exclude the garment sector from the minimum wage gazette, so it is probable that resistance from employers to increase the wage is causing the delay.

At a tripartite workshop organized jointly by the International Labour Organization (ILO) and the Minister of Labour and Employment in February 2012, parties agreed on eight criteria that should be considered by the Wages Advisory Board when setting minimum wages for the garment sector, one of which is a living wage.

A detailed study was then conducted by an independent ILO consultant on what a living wage would be for garment workers in Lesotho, which concluded that workers needed M1,415 (Euro 141) to subsist and M2148 ( Euro 214) to meet basic needs.

These finding vindicate garment workers that had demanded a living wage of M2,020 (Euro 202) a month in protests during 2011. Mariasane reports that a study was also conducted by the Central Bank of Lesotho that suggested R1,396 (Euro 140) as the minimum wage for the sector.

“Employers want workers to accept an 8 per cent increase on a minimum wage of 83 Euro, this is less than 10 Euro increase,” says Mariasane. We want the minimum wage in the sector to be reviewed in line with the ILO commissioned study and the findings of the Central Bank.”

Other demands that workers took to the Prime Minister are that minimum wages must apply to all workers not only those with more than 12 month service, an end to discrimination of garment workers that only receive 2 weeks maternity leave whilst all other workers in Lesotho are entitled to 6 weeks and that a sector level bargaining council must be established to establish the right to strike on wage issues.

The Prime Minister received the demands and has promised to give the matters urgent attention.

Goodyear South Africa workers strike over relief allowance

"What used to happen is that when some people went on lunch, some were left behind working,” says Eastern Cape Secretary of the National Union of Metalworkers of South Africa (Numsa), Phumzile Nodongwe. “But now they want the workers to continue doing the same work but do not want to pay for it.”

Numsa argue that whilst the arrangement is not covered by the bargaining agreement, it is an established practice and workers have come to rely on the allowance.

“The employer cannot now hastily renegade from this, without following proper channels of engagement with the workers,” says Nodongwe, “This Relief Allowance has been a great source of assistance or relief to the livelihoods of these workers, including their families.”

Workers went on a protected strike on 23 October 2012 after two months of negotiations between Numsa and failed to resolve on the matter.

AngloGold dismisses striking mineworkers in South Africa

The National Union of Mineworkers (NUM) is concerned the dismissals by AngloGold have the potential to escalate into a violent and confrontational situation. NUM is opposed to the dismissals of the striking mineworkers and believes that such a move will work against all efforts to normalize the situation and get the mineworkers back to work.

The dismissals come on the same day that a deal is to be signed between labour and gold companies, AngloGold, Harmony and Gold Fields at the Chamber of Mines, which hopes to end the strikes in the gold sector.

The NUM has consistently argued that dismissals should be a measure of last resort and has been against similar actions taken by Anglo Platinum and other mining companies. These actions ignore efforts that are in motion to normalize the situation.

One such act is the Social Pact between the Presidency, mining companies and labour signed a week earlier. The social pact seeks to address the underlying multiple causes of the unrest which include the appalling levels of pay and dreadful working conditions in the industry and is meant to promote stability and address socio economic issues in mining areas.

Unlike the platinum industry, the gold sector is part of an established centralized collective bargaining and negotiations are continuing with the Chamber of Mines in efforts to address both the immediate and long term causes of the unrest in the mining industry.

Meanwhile, the Confederation of South African Trade Unions (COSATU) made strong statements against the dismissals, calling for the immediate reinstatement of workers. COSATU is mobilizing solidarity protests in support of mineworkers’ demands in the coming weeks.

IndustriALL Global Union is against these dismissals and reiterates its earlier call to the mining companies in South Africa to address what COSATU describes as the underlying causes of the escalating unrest. IndustriALL supports the NUM and COSATU in calling for another commission that will investigate the underlying employment and social conditions of workers in the industry, trace the history of mining, its past and present discriminatory practices, its reliance on cheap labour, and the history of treating mine workers as subhuman.