Solidarity support needed for suspended ZESA workers

The Zimbabwe Energy Workers Union (ZEWU) says that the postponements are an attempt to frustrate workers and starve them into submission. At a meeting between the union and ZESA on Friday 3 August, ZESA attempted to trade off the reinstatement of suspended workers in exchange for workers abandoning the wage increase gained through an arbitration award. This is tantamount to economic blackmail and an attempt to intimidate workers to concede their rightful gains.

Even with the wage increases, workers of the lowest pay grade, that are entitled to a wage increase from US$190 to US$275, would be earning way below the poverty datum line. The poverty datum line is a figure calculated by the Zimbabwe Consumer Council that assists in deciding how much a person needs in order to sustain a reasonable livelihood for 2011 was US$520.

The President of Zimbabwe Energy Workers Union (ZEWU), Angeline Chitambo, is amongst those that have been suspended along with two other elected officials of the union, Tariro Shumba and Dennis Mukote. They face different charges to the rest of the workers, singled out for carrying out their trade union leadership responsibilities. The hearing for Angeline Chitambo, who is also a member of the Executive of IndustriALL, has been postponed until 28 August.

ZESA is also putting pressure on workers and their union through legal proceeding. The utility made a court application seeking relief against 132 workers it suspended resulting in a show cause order being issued to workers to appear before the court and explain why the court should not take action against them. In addition to this, ZESA is appealing the arbitration at the High Court on the basis that the arbitrator was not impartial and favoured the union.

IndustriALL General Secretary, Jyrki Raina, has sent a letter to ZESA calling for the reinstatement of all suspended workers and implementation of the bargaining agreement and raised the issue with the Zimbabwe embassy in Geneva. Broader support is urgently needed and IndustriALL is appealing to affiliates for solidarity support of suspended workers and their union. A sample letter is available for affiliates to send to ZESA to apply additional pressure.

Favourable settlement reached on Evraz strike

The 2000 striking workers, that were protesting the retrenchment of more than 500 workers and salary cuts due to the implementation of a new shift system that affected overtime pay, returned to work on 13 August 2012.

Workers affected by the new shift system will now receive a 7.5 percent wage increase and a one off payment of R15,000 to mitigate the loss in overtime pay. Laid off workers that did not take a voluntary severance package will be reinstated and back paid.

Our perseverance has paid off,

says a NUMSA shop steward at Evraz.

While we are unable to prevent the new shift system, NUMSA gave us good leadership to make sure that workers can adjust to the new system and did not lose their jobs.

Zimbabwean Miners Allege Abuse by Controversial Anjin

Local NGO, Center for Research and Development (CRD) that monitors human rights violations in the diamond mining area has called for the unconditional reinstatement of the dismissed workers, saying "The decision to fire the workers was arbitrary and totally uncalled for. It is also a gross violation of the right of workers to engage in industrial action if their working conditions are appalling. The intolerance shown by the Anjin management in handling the workers genuine grievances is unacceptable in modern society."

CRD has also raised issue with the reapplication process that workers are being subjected to; “Advising the dismissed workers to reapply is a draconian way of dividing the workers by victimizing their leaders and those suspected to have played a leading role in the industrial action”

There are also allegations of human rights violations. Anjin workers allege that some have been sexually assaulted by Chinese supervisors and that the company gave the workers committee a letter of apology stating that the perpetrators would be returned to China. To date this has not been carried out and the police have also not taken any action. Workers also report that graves on the mining site have been desecrated, instead of reinterring bodies at another appropriate site, remains are tossed aside.

Anjin is steeped in controversy. A joint Sino Zimbabwe venture, the Zimbabwe company Matt Bronze, is suspected as being a front for the Zimbabwean Ministry of Defense, military and police. Anjin’s board is dominated by ‘securocrats’, senior members of state security. The UK based NGO Global Witness released a report in June 2012 to raise these issues and concerns that profits from the mine could be used for off budget financing of state police.

Global Witness say that the Kimberley Process, a certification programme meant to stem the trade of conflict diamonds, has failed in Zimbabwe and it is one of the reasons that they give for withdrawing as an observer to the Kimberley Process.

Peter Hain, A British Member of Parliament has taken the issues raised by Global Witness into a parliamentary debate in mid July 2012, urging that sanctions be maintained and extended to include securocrats involved in diamond mining. He has also motivated for reform of the Kimberley Process.

The sanctions in place consist of travel ban and asset freeze on 112 Zimbabweans by the EU since 2002. In June 2012, a EU delegation visited the Marange area where Anjin is located and were told that allegations that Anjin had not been contributing to the fiscus were untrue. On 23 July, EU ministers released a statement saying that sanctions against most of the individuals on the list would be lifted and would occur after a referendum on the new constitution had taken place. The move is meant as an incentive to keep up positive reforms in Zimbabwe after years of violence and economic turmoil.

Amongst those calling for the lifting of sanctions in Zimbabwe, is The UN Commissioner for Human Rights, Navi Pillay after her visit to the country in May 2012, who says that the stigma of sanctions is likely to be have been detrimental to trade.

Supervisor killed in a protest at Zambian Collum Mine

General Secretary of the Mineworkers Union of Zambia (MUZ), Joseph Chewe said that whilst poor wages had been a problem at the mine, the union had been negotiating with management in the week before to improve conditions of service and salaries and added that it was unfortunate that workers had lost patience.

Chinese investment in Zambia amounts to more than US$ 1 billion but industrial relations in some Chinese companies have been problematic especially in the mining sector. A report released by Human Rights Watch (HRW) in November 2011 details persistent abuse in Chinese run mines. “China’s significant investment in Zambia’s copper mining industry can benefit both Chinese and Zambians,” said Daniel Bekele, Africa director at Human Rights Watch. “But the miners in Chinese-run companies have been subject to abusive health, safety, and labour conditions and long time government indifference.”

Labour relations at Collum mine have been fractious in the past. In 2010, two Chinese supervisors shot and wounded 13 miners in another pay dispute.

Chewe spoke against the recent violence by workers at Collum saying, "We condemn acts of violence as all problems have to be addressed through dialogue on the table. The rule of law should prevail in this matter.” The police have arrested 12 workers and police presence will remain at the mine for some time.

Petroleum workers strike to protect jobs

8,000 workers embarked on the strike to force the government to pay outstanding subsidies due to independent marketers that import and distribute petroleum in Nigeria. The independent marketers had threatened to shut down their operations and lay off workers if the matter was not resolved by the end of July.

According to Isaac Aberare, Acting General Secretary of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), about 75 per cent of the striking workers belong to the union. The remaining striking workers came from sectors that support the petroleum industry, such as transport. The successful strike action in support of the demands of the independent marketers, who are responsible for most of formal employment in the sector, also gives NUPENG a stronger bargaining position in future negotiations in the sector.

At a dialogue held between stakeholders, the union also secured commitment from the government for the rehabilitation of the local petroleum industry and supporting infrastructure, in particular poorly maintained roads. The union argued that Nigeria needs to decrease its dependence on foreign imports and rebuild the local petroleum industry to achieve self sufficiency.

ZEWU President amongst the 135 workers suspended at ZESA

Union members were legitimately aggrieved by the disregard that ZESA has shown for the collective agreement reached in January this year. The agreement, which entitles workers of thee lowest pay grade to a wage increase from US$190 to US$275, was upheld in arbitration. However, management now claims that it is unable to afford the wage increase.

Jyki Raina, General Secretary of IndustriALL Global Union, sent a letter to ZESA, in which he says, “IndustriALL Global Union stands with our affiliate ZEWU in their demand that ZESA reinstates all suspended workers, including union leaders and institutes the bargaining agreement.”

ZEWU President, Angelina Chitambo, who is also a member of the Executive of IndustriALL, has been particularly targeted for statements made to the press. Together with two other union leaders, she has been accused of inciting protest at ZESA, which is clearly a case of victimization of these unionists for carrying out their organizing duties.

Workers down tools on job and salary cuts at Evraz

Russian multinational corporation, Evraz has ignored legislation and the collective agreement it has with NUMSA to make changes to workers’ conditions of employment. The company has cut workers’ salaries by half and retrenched more than 500 workers, in its pursuit of greater profits.

Workers have embarked on a legal strike to demand that the company reinstate dismissed or unfairly laid off workers, reinstate workers’ salaries and other conditions of employment and engage constructively with the union.

In response to the legal strike, Evraz has suspended its Highveld Steel and Vanadium operations and has said that it can’t guarantee supply from these mills. It has also brought in hundreds of security personnel and police to intimidate workers.

Workers remain committed to their action, according to NUMSA shop steward at the company,

the situation is very tense but we are determined that we cannot accept such an outrageous act, they can’t just cut our salaries, we have laws here and we’ll fight this with our union.

IndustriALL responds to Glencore's snub

On 11 July, IndustriALL Global Union joined with the Swiss Greens Party, local union UNIA and a number of civil society activists to demonstrate against the commodity giants Xstrata and Glencore in Zug, Switzerland after the company abruptly refused to meet with the unions.

IndustriALL’s Glen Mpufane, Mining Sector Director, addressed the chanting crowd saying,

We want to make the point here in this demonstration that our interests coincide with your interests, with those of communities, community-based organizations and indigenous communities and those of social and economic justice activists. The merger of Xstrata and Glencore is bad news for us and will represent a momentous milestone and celebration for monopoly capitalism.

With the mandate of IndustriALL the South African National Union of Mineworkers (NUM) had scheduled a meeting on 19 July with Glencore and Xstrata in Zug, the meeting was triggered by NUM’s intention to file a dispute with the competition commission. NUM strategically invited key affiliates such as Australia’s Construction, Forestry, Mining and Energy Union (CFMEU) and North American United Steel Workers (USW) to express their united opposition to the merger between Xstrata and Glencore and major concerns for the millions of miners that they represent.

Glencore representative, Clinton Ephron, based in Zug Head Office, cancelled the meeting with the unions with no clear indication why. “Further prove of the arrogance of Glencore is it’s refusal to meet with a delegation of IndustriALL affiliates by cancelling at the last minute,” said Mpufane, adding “In conclusion brothers and sisters, united we shall stand and divided we shall beg.” – “Amandla, power to the people,” the crowd cheered.

“This is a demonstration in solidarity with the victims of multinationals in prime materials and Zug is the centre of prime materials,” said Josef Lang, Vice President of the Swiss Green Party and member of the Zug cantonal union leadership. Protesters at the demonstration accused Glencore and Xstrata of disregarding the rights of local populations and damaging the environment. The Company deny these charges. Activist also came from South America, where the companies are involved in mining projects in Peru and Argentina and where human and trade union right are being violated.

Mining accident in South Africa kills 5 workers

At midnight on 1 July, a fire broke out in the Gold Fields mine in Carletonville, South Africa. Workers were working overtime on mud-loading when the accident happened. The workers were in an area with no air ventilation and no water supply, which is the primary cause of the 5 deaths and 14 injuries.

The mineral resources ministry ordered a compulsory halting of operations on 2 July pending investigations. Miners at the KDC West mine will stay off work on 3 July to honour the 5 workers killed last weekend with the support of IndustriALL Global Union affiliate NUM. The company has yet to open the shaft where the incident occurred, because the fire there has not been extinguished,

NUM spokesman Lesiba Seshoka said: “I don’t understand why they closed the water pipe. They did that to save money, but this has cost five families their breadwinners. The law says if there’s no water you don’t go in the mine.

NUM general secretary Frans Baleni said: “We strongly condemn the company for sending workers on overtime night shift when there is no ventilation.”

According to the South African ministry over 60 miners have lost their lives in 2012, a clear indication that there is still much to do to improve mine safety in South Africa.

Glencore and Xstrata epitomize the resource curse: Unions oppose their merger

Consideration should be given by regulators to breaking up the companies rather than allowing further concentration and abuse of power.

Both companies are major examples of the “resource curse" in action, with Glencore leading the way because of its greater history of secrecy and lack of transparency as a Swiss-based private company.

Trade unions have frequently had very difficult relations with these companies and their intended merger can only magnify those problems as the combined entity will become one the mega-corporations dominating the global resources sector. These corporations are increasingly distant from the operations they own and manage, and from the communities affected by those operations.

Trade union problems with Xstrata are well-documented.

In Canada they include broken employment commitments in Canada after the takeover of Falconbridge.
In Australia there is an unresolved complaint under the OECD Guidelines for Multi-National Enterprises concerning the company’s effort to destroy collective bargaining and reduce working conditions at its operations. The company refused to participate in mediation procedures provided under the Guidelines and is therefore in continuous breach of the Guidelines to this day.
In South Africa Xstrata’s effort to achieve a merger with Anglo American were denounced by the National Union of Mineworkers because of the company’s poor record in industrial relations.
The Australian union complaint under the OECD Guidelines also covered a major area of concern for shareholders – the anticompetitive marketing arrangements with Glencore that provided that company – also Xstrata’s largest shareholder – with benefits not matched with those for other shareholders.
Unions also note that Xstrata is subject to a further OECD Guidelines complaint in Argentina.

With respect to Glencore, unions share the widespread grave concerns about the company’s conduct in many developing countries where weak governance appears to give the company opportunities for dubious dealings. The most recent examples include the Global Witness statement regarding mine asset purchases in the Democratic Republic of the Congo (DRC), and also the allegations of connection with child labour and extreme water pollution in that country broadcast by the BBC’s Panorama show in the UK.

Recent research published in the journal Foreign Policy shows that Glencore’s fundamental business model relies on operations in weak governance zones where public scrutiny and transparency are frequently absent. The list of countries in which Glencore has been accused of poor conduct include Colombia, Equatorial Guinea, Ivory Coast and Zambia in addition to the DRC.

Glencore also stands accused of extreme financial engineering to reduce its tax payments far below the level it should pay. The NGO Publish What You Pay says that Glencore’s effective tax rate is as low as 9.3%, in large part because many of its subsidiaries are located in “secrecy jurisdictions”.

Xstrata’s own corporate governance has been routinely problematic for many years, with multiple strong protest votes over many years concerning the company’s excessive remuneration for top management. There has also been the issue of the lack of an independent Chairman, with Glencore Chairman Willy Strothotte also chairing Xstrata for many years. The two companies only belatedly fixed that problem when Glencore moved to become a public company; Sir John Bond was appointed as an independent Chairman only in May 2011.

In the current merger proposal between Glencore and Xstrata, the top management of Xstrata is to receive £240 million (around US$375m) in so-called retention payments of which Chief Executive Mick Davis is to receive £29m (US$45m). All without performance hurdles; just for continuing in their jobs for which they are already extremely well-paid.

Those who actually produce the wealth for Xstrata and Glencore – the workers who toil in remote mines in harsh environments and deep underground – are to receive nothing, while their bosses intend to bathe in wealth beyond their wildest dreams.

Unions commend those of Xstrata’s shareholders who have publicly criticised the grossly unjustifiable retention packages to Xstrata management.

Unions say that Xstrata and Glencore are already too powerful in world resources, especially given their poor track record. Further concentration of power in the hands of those already known for their propensity to exploit workers and bully governments can only lead to further abuses.

Competition and corporate regulators should consider doing the opposite of what Glencore and Xstrata propose; regulators should break up the companies into smaller units so that their capacity to manipulate and abuse markets, governments and workers is reduced.

The unions taking the position against the planned merger and who represent workers at Xstrata include the Construction, Forestry, Mining and Energy Union (CFMEU) in Australia, the United Steelworkers (USW) in Canada and the National Union of Mineworkers (NUM) in South Africa.

Contact: Andrew Vickers (CFMEU), email: [email protected], tel.: +61 (0)2 9267 1035

Ken Neumann (USW), email: [email protected], tel.: +1 416 544 5950

Frans Baleni (NUM), email: [email protected], tel.: +27 82 375 6443

Glen Mpufane (IndustriALL), email: [email protected], tel.: +41 22 304 1845