IMF NewsBriefs No. 12, August 27, 2009

Thu. August 27, 2009

Dispute at Toshiba Indonesia Resolved

After four months of intense struggle, followed by a return to the bargaining table, settlement is reached at Toshiba CPI with the reinstatement of 697 workers, but not the 15 local union leaders.

INDONESIA:  The industrial dispute with PT Toshiba Consumer Products Indonesia was finally resolved on August 22 after months of struggle and weeks of intense negotiations.

Toshiba CPI management locked out and dismissed 697 workers, including 15 local union leaders, after the workers, members of IMF Indonesian affiliate the Federasi Serikat Metal Indonesia (FSPMI), went on strike on April 16 in support of a dispute during collective bargaining. At its Congress in May the IMF passed a resolution in full support of FSPMI and Toshiba workers, condemning the company for its total disregard of workers' rights.

After initial attempts by the IMF and its affiliates to engage the management of the parent company failed, a breakthrough was eventually achieved when a delegation from IMF-JC, Denki-Rengo and Toshiba Japan union arrived in Jakarta on July 23 and persuaded the management to reconvene negotiations in good faith with the union.

Through this initiative the management finally agreed to resolve the dispute with FSPMI through negotiations, which began on the July 23.  A memorandum of agreement was signed on August 22 and includes the following points:

  • All the 697 workers except the local union leaders would be unconditionally reinstated immediately
  • All the local union leaders would resign from employment and be adequately compensated
  • A new local union committee would be elected and be entrusted with the task of reconvening collective bargaining for a new collective agreement

The agreement means that Aghni Dhamanyanti, Chairman of the local union and member of the IMF Executive Committee, and Vonny Diananto, Senior Vice President of FSPMI, would lose their employment, along with 13 other union leaders at the plant. Both Vonny and Aghni will continue as officers of FSPMI, including working with the union at the plant to assist the new leadership.

Vonny said that after working for Toshiba for more than twelve years he was compelled by circumstances to sacrifice his job for the sake of other workers who were dismissed. "The fifteen leaders have resigned from the company and they will be paid adequate compensation. Most important is that the union status in this company is restored. If we had prolonged this struggle the company could have replaced the dismissed workers with contract workers because the Labour Court granted such decision in favour of the company," he explained.

The FSPMI took the strike action after the management of Toshiba CPI refused to register the mutually agreed provisions of the collective agreement. The workers launched a peaceful, legal strike on April this year and the company immediately locked out and dismissed the workers, the majority of them women workers whom have worked since the company since it was established twelve years ago.

In response to the strike the company cancelled the health insurance scheme and stopped wage payments to the workers, which led to severe hardship and suffering among the workers. One of the members died due to inability to seek medical treatment during the strike. The Manpower Ministry ordered the company to immediately reinstate the workers with full wages but the company refused to heed this advice.

The company, in an apparent attempt to seek revenge and punish the union leadership and workers, also filed several criminal charges against union leaders and  a law suit for USD 1.6 million  damages against the FSPMI for loss of production and business. These charges, and charges brought by the union against the company, have been dropped.

Said Iqbal, FSPMI President, said that though the union fought very hard under extremely difficult conditions the deal reached is the best they could negotiate. "Justice was trampled when the Labour Court decided in favour of the company despite the fact the union launched a legal strike," he said.

"This TNC does not respect local laws and rules and, to add insult to injury, the Labour Court is corrupt. What choice do we have given this scenario but to accept a compromised settlement?" lamented Iqbal. He thanked the IMF for all the solidarity assistance to highlight the plight of the workers and assist the FSPMI in facing this challenge. He added that without the support of the IMF the workers could not have been reinstated.

In July the IMF set up a strike fund for the workers, to which IMF affiliates generously contributed. With these contributions the FSPMI was able to offer three hot meals per day for the striking workers and their families and pay some of their medical bills.  [Aug 27, 2009 – Anita Gardner]


IMF-EMF Communicators to Debate Global Union Campaigning

Union communicators from different parts of the world will meet at the first joint EMF-IMF Communicators’ Forum in Frankfurt to discuss union campaigns, innovative communication strategies and new media techniques

GLOBAL:  The European and International Metalworkers' Federations with the assistance of IG Metall will hold their first joint EMF-IMF Communicators' Forum in Frankfurt (Germany) on November 17-18. During two days the union communication professionals representing IMF and EMF affiliates will discuss union campaigns, compare new media techniques, and build an effective communicators' network.

The Forum will primarily focus on new media techniques and web-based campaign tools which help trade unions to achieve both union building and organising as well as to make breakthroughs on issues like climate change and the spread of precarious work. Participants will discuss examples on how FaceBook, YouTube, Flickr and others are being successfully used by unions across the metalworking industry.

Both the European and International Metalworkers' Federations see a strong need for cooperation in order to protect the interests of the metalworkers and to enhance communications methods for their member organisations. The Forum will serve to improve joint global campaigning helping unions to fight back on increased globalisation and outsourcing, reduced social protection and labour rights, a rise in precarious work and the consequences of climate change.

The last IMF Communicators' Forum took place in 2007 in Geneva. It offered in-depth discussions and examples of solidarity campaigns. Several joint EMF-IMF solidarity actions have taken place since then, such as campaigns in support of Sinter Metal workers in Turkey and mining workers in Mexico as well as the 2008 campaign against precarious work.

To find out more please contact Alex Ivanou ( This e-mail address is being protected from spambots. You need JavaScript enabled to view it ) and/or ( Caroline Jacobsson ).

[Aug 26, 2009 – Alex Ivanou]


Greening America With Good Jobs

Unions and environmental groups embark on a nationwide Made in America jobs tour, highlighting the benefits to American workers and businesses of transitioning to a clean energy economy that will create millions of jobs.

USA:  Unions and environmental groups launched a campaign on August 19, highlighting the benefits to American workers and businesses of transitioning to a clean energy economy that will create millions of jobs.

The "Made in America" Jobs Tour started in Ohio on August 20, the first of 50 stops across 22 states organised by the Alliance for Climate Protection's Repower America campaign, in partnership with the Blue Green Alliance and its labour and environmental partners.

"Building a clean energy economy can revitalize American manufacturing, but only if we commit to using domestically produced components," said United Steelworkers International President Leo W. Gerard. "In confronting the challenges of recession, global warming and energy independence, we have an opportunity to transform our economy and create good jobs that truly are 'made in America.'"

A recent Blue Green Alliance report found if the U.S. instituted a national renewable energy standard, more than 850,000 manufacturing jobs at firms already in existence across all 50 states could be created manufacturing the parts for wind, solar, geothermal and biomass power.

"We can create millions of jobs building the clean energy economy - whether it's manufacturing the parts for windmills, building hybrid car batteries or weatherizing homes to make them more efficient," said David Foster, executive director of the Blue Green Alliance. "Now we're combining our efforts to spread the message that by transitioning to a clean energy economy, we can revitalize America's manufacturing sector and boost our economy for the long run - and create jobs Made in America."

Click here to find out more.   [Aug 26, 2009 – Anita Gardner]


Protecting Labour Rights in World Bank Funded Projects

Global Unions releases new guide on how to use performance standards to ensure respect of core labour standards in World Bank funded projects.

GLOBAL:  The Global Unions' Washington Office released in August 2009 a new guide on how to use IFC Performance Standards to help enforce workers' rights in World Bank financed projects.

In May 2006 the International Finance Corporation (IFC), the World Bank private sector lending arm, introduced social and environmental conditions required for borrowing companies to get loans from the IFC. These requirements include the respect of core labour standards as defined by the International Labour Organization.

So far 22 labour cases have been submitted, usually with assistance from the Global Unions Washington Office, which also monitors international financial institutions and represents the interests of unions' to these institutions. According to the Global Unions office, the complaints or communications on labour violations have delivered positive results in the majority of cases: in 15 of the 22 cases company practices were corrected (at least partially), the project was withdrawn or additional monitoring to verify compliance was added. In one case unions' complaints were rejected and, at this time, outcomes were still pending for six cases.

In January 2009 the IFC instituted a new accelerated online communications form and the Global Unions' guide, published in August, provides advice on how to use it most effectively. You can access a copy of the guide, in English only, here on the IMF website. - [Aug 26, 2009 – Anita Gardner]


Improving OHS at ArcelorMittal

ArcelorMittal committee resolves to establish union safety communications network and to focus on preventing fatalities and increasing skills and awareness training across the company globally.

GLOBAL:  The ArcelorMittal Joint Global Health and Safety Committee (JGHSC) met on August 18 and 19 at the IMF's Head office in Geneva.  Members of the JGHSC carried out a review of the committees work so far and also developed plans for the future in order to improve occupational health and safety in the company.

On the first day the meeting began by receiving a report on the most recent fatalities in the company from the local union representatives (one fatality Ostrava, Czech Rep, one fatality Monessen, USA). The union members of the JGHSC discussed ways to improve the information flow between plants and unions at the global and national level in particular when a fatality had occurred within the company. The JGHSC agreed to develop a union safety communications network within the company, to address this issue. The network would also be used to exchange journals and safety information produced amongst the unions.

Since signing the JGHSC the union representatives had carried out a survey of its members to see if the agreement had now been implemented throughout the company as required. From the replies received it was clear that there was a good level of understanding among unions about the agreement and that in the majority of cases joint union -management health and safety committees where now in place.

The second day of the meeting was dedicated to planning for an industrial restart within the company and assessing the health and safety implications. Four potential areas were identified by the JGHSC as future areas of the work. The areas were measures to prevent increases in fatalities, maintenance of plant and machinery, skills and awareness training, and employee security.  [Aug 24, 2009 – Anita Gardner]


IG Metall Demands a Return to Secure Jobs

IG Metall calls on government to ensure a return to secure employment practices and an end to the misuse of agency labour.

GERMANY:   IG Metall called on political leaders on August 19 to ensure that priority is given to employment in secure, regular employment as the economy recovers and that use of agency labour is limited and based on equal pay for equal work.

The union's demands were also backed up by the results of a study, released on the same day, which found that enterprises are increasingly using agency labour in order to pass on business risks to workers.

The study, "Changes in the use of agency labour", was conducted by the Friedrich Schiller University of Jena and looked at how enterprises are using agency labour and what it means for the workers. It found that agency labour is increasingly being used more strategically by enterprises as a way of passing on the business risk of the cost of longer-term employment and as a potential means of threatening the job security of permanent staff.

Both IG Metall Vice President Detlef Wetzel and Klaus Dörre, the director of the research team, warned that it is likely that the use of agency labour will increase even further in the next upswing of the economy.

"It is high time to create better conditions for agency workers," said Wetzel. "We are demanding that use of agency labour be limited and the best way to ensure this is on the principle of equal pay for equal work, thereby also improving the conditions of employment for agency workers," said Wetzel.

Wetzel also made demands for stronger co-determination rights with regard to agency workers and said IG Metall will continue to take up the issue in collective bargaining agreements concluded by the union.

Figures released by the Federal Office of Statistics on the same day show that the number of people in Germany employed in regular, secure jobs with social benefits and working more than 20 hours a week has fallen in the last ten years. In 2008, 66 per cent of all employed people had regular employment, where as ten years earlier the rate was at 72.6 per cent.

Further information and a copy of the study (in German) .   [Aug 21, 2009 – Anita Gardner]


Putting a Stop to Precarious Work in Europe

EMF to launch second common demand on precarious employment at its collective bargaining conference in November 2009.

EUROPE:  The European Metalworkers' Federation has announced the dates of the 6th Collective Bargaining Policy Conference where it will launch the 2nd Common Demand on precarious work.

Entitled "Jobs, Rights and Collective Bargaining" the conference is taking place on November 17 and 18 in Madrid and will focus on the effects of the current crisis on collective bargaining, current tendencies in collective bargaining, the undercutting of labour costs and the working time debate.

The conference will be followed by a press conference to launch the EMF campaign in respect of its second common European demand aimed at reversing the trend of precarious employment.

Click here for more information.  For more information about the global campaign against precarious work click here.    [Aug 21, 2009 – Anita Gardner]


Strike at ArcelorMittal, Mexico

Workers at ArcelorMittal are on strike after negotiations on adjustments to the collective agreement ended in deadlock. Steelworkers in the United States and Canada have offered their support for the action taken by the miners' union.

MEXICO:   On August 8, after negotiations between the miners' union and the company on adjustments to their collective agreement ended in deadlock, Section 271 of the National Miners' Union in the industrial port of Lázaro Cárdenas, Michoacán decided to go on strike.

The workforce comprises 3,500 union members, 1,500 contract workers and more than 2,000 supervisory staff and suppliers, totalling approximately 7,000 workers, all of whom will benefit from any agreement reached, said the union.

Negotiations on adjustments to the collective agreement have been taking place for more than two months and were extended for a further week at the company's request. Negotiations on the union side are being coordinated by the National Executive Committee, led by Napoleón Gómez Urrutia.

The United Steelworkers (USW) of the United States and Canada, a leading industrial union in both these countries, and which together have more than 14,000 members working for ArcelorMittal, sent the Mexican Miners' Union at Lázaro Cárdenas a letter of support and solidarity in which they say: "we believe that the world's largest steelmaker is in a position to provide its workers with a decent standard of living and decent working conditions. We also believe that the use of non-unionised contract workers undermines the conditions previously negotiated by our unions. We support you in your struggle and we are ready to provide any assistance that we are able to give you."

The miners' union said it remains ready to continue negotiating "with the aim of normalising the situation as soon as possible and resuming work at ArcelorMittal installations so that the conflict does not continue and the demands of the workers at the company are met."  [Aug 21, 2009 – Valeska Solis]


Zimbabwean Metalworkers Campaign for Payment of Wage Increases

IMF affiliate makes serious gains for Zimbabwean workers and their families.

ZIMBABWE:   The National Engineering Workers' Union, affiliate of the IMF, and Zimbabwe Metal, Energy and Allied Workers' Union have launched a campaign this month to force employers to pay workers decent wages.

In September 2008, history was made in Zimbabwe when three political parties, including the ruling ZANU/PF, signed a power-sharing agreement called the GLOBAL AGREEMENT. This agreement promotes power sharing between the three parties. While many ordinary Zimbabweans argue the agreement has not benefited them, for metalworkers and their families things are changing.

After the agreement was reached, the new minister of finance announced that the official trading currency in Zimbabwe will be US Dollars and other foreign currencies such as South African RANDS and Botswana Pula, however many companies continue paying workers with the valueless ZIM Dollar or in many cases fail to pay workers at all.

In April NEWU won an arbitration award that compels employers to increase workers' minimum salaries from US$100 to US$150. This was a big victory for many workers, however a large number of employers are still resisting compliance. Due to the lack of enforcement of the award, the unions have launched the campaign and are directly engaging with employers to ensure payment of the increased wages.

The increases are changing lives in Zimbabwe as many workers and their family can at least now afford a decent meal of their choice, as compared with six months ago when they were paid by food parcels. One worker commented that even though $100 is still very little, it is much better than been paid by food parcels of low quality; now he can choose better quality food for his family.

For the union the situation is also getting better as 50 per cent of employers are submitting subscriptions to the union and the union is able to pay allowances for some of their staff members. Nevertheless, the situation is still not normal, especially for the other unions. For ZMEAWU the majority of the companies they are organizing are owned by local businesses and these are the same people who are supporting the Mugabe regime and they therefore do not want to deduct subscription from workers on behalf of the union.  [Aug 20, 2009 – Anita Gardner]


Six Die at Shipbreaking Yard in India

A trade union representing shipbreaking workers calls on authorities to enforce health and safety after six workers die in Alang on August 4, 2009.

INDIA:   After the death of six shipbreaking workers in Alang on August 4, the local trade union representing 5,000 shipbreaking workers called on the Factories Inspector to investigate the incident and the Chief Minister and High Court of Gujarat to undertake a judicial enquiry and immediately intervene on the health, safety, welfare and environment at the shipbreaking yards.

The six workers died on the spot from burns sustained while working in the engine room of a vessel being dismantled at plot number 24-0 of the Alang shipbreaking yards. No precaution had been taken by the employer to ensure the engine room was free from gas and fit for cutting operations.  Measures taken after the accident were also completely inadequate.

Alang Sosiya Ship Recycling and General Workers' Association (ASSRGWA), representing the workers, demanded that the government of Gujarat ensures:

  • Strict compliance with the Supreme Court of India's directions on safe ship recycling issued in September 2007;
  • A judicial inquiry into the fatal accident that occurred on August 4, 2009 causing the deaths of six workers;
  • Compensation of a million rupees (US$20,000) to the family of each deceased worker; and
  • Representation of the Workers' Association on the Gujarat Maritime Board and other regulating and enforcement authorities.

The Workers' Association had previously represented the workers before a committee of technical experts on shipbreaking, which resulted in the Supreme Court directing various government bodies and stakeholders to take effective measures on health and safety, welfare and the environment. In August 2008, the Workers' Association made representation to the Gujarat Maritime Board requesting compliance with the Court's ruling.

"Though there are regulating and enforcement authorities, no adequate attention is being paid by these organisations to the suffering of the thousands of shipbreaking workers," said ASSRGWA President Shanti Patel at a press conference on August 11.

"The apathy and almost criminal negligence on the part of the stakeholders in complying with rulings on health, safety, welfare and the environment is instrumental in the increase in the number of fatal and major accidents in the shipbreaking yards in Alang," said Patel.

Vidyadhar Rane, ASSRGWA General Secretary, has submitted complaints to various relevant authorities and visited the family members of the victims offering the union's full support.  [Aug 20, 2009 – Anita Gardner]

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