IMF NewsBriefs - September 13, 2005

Fri. September 30, 2005

METALWORKERS IN BRAZIL MAKE GAINS

IMF affiliate CNM/CUT reports that wage negotiations in the Sao Paulo region has resulted in some positive benefits for metalworkers, particularly those employed in the auto industry.

BRAZIL: A recent round of collective bargaining between CNM/CUT and the State of Sao Paulo, the region where most of Brazil’s metal industry is located, has resulted in important gains for metalworkers.

CNM/CUT reports that 64,000 workers in Sao Paulo’s auto-assemby sector got a total wage increase of 8.9 per cent, which is 3.7 per cent above inflation for the year 2005, and a minimum of 1.3 per cent above inflation increase for the year 2006. Companies operating in the sector include VW, GM, Ford, DaimlerChrysler, Scania, Toyota and Honda.

In the auto-parts and foundries sector, the 85,000 workers got a total of 8.16 per cent increase, which is 3.0 per cent above inflation for the year 2005 and a minimum of a 2.0 per cent above inflation increase for the year 2006. Companies operating in this sector include Mahle, Magnetti Marelli, Dana, TRW, Bosch and Delphi.

The employers’ proposal for a 1.6 per cent above inflation wage rise in the machine building and electronics sector has not been accepted. Consequently, many of the 105,000 workers in this sector, which includes Index, Heller, Grob, Bardella, LG Phillips and Flextronics, are on strike. Negotiations for the aerospace and other sectors in Sao Paulo will commence in November.

Elsewhere in Brazil, regional unions affiliated to CNM/CUT achieved an average of 2.5 per cent plus inflation pay rise. Meanwhile, after years of decline, the level of employment is growing, with 247,000 new jobs created from January 2003 to June 2005, reports CNM/CUT. [September 13, 2005]

HP CUTS 5,900 JOBS IN EUROPE

With a total of 5,900 jobs to go in Europe, Hewlett-Packard began to provide details to European worker representatives about its plans to cut jobs.

EUROPE: Hewlett-Packard (HP) began detailing its plans to cut 5,900 jobs in Europe, part of the 14,500 global job lay-off plan first announced by the company on July 19.

HP has not said how many of the cuts would be voluntary or given a breakdown of the number of jobs to be lost in each country.

In France, worker representatives have been informed that 1,240 of the 4,800 jobs in France are being cut. IG Metall in German and Amicus in the UK are expecting to hear about the company’s plans later this week.

In protest of the company’s anticipated announcement, union members at HP in France held a one-hour strike on September 8. The French unions also distributed a solidarity flyer addressed to HP workers in the U.S., urging workers to say "no" to pension changes, "no" to job-cuts and "no" to health care changes.

California-based HP employs 45,000 people in Europe, half of them in Germany, Britain and France. [September 13, 2005]

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