IMF NewsBriefs, No. 17, August 25, 2011

Thu. August 25, 2011

KOREAN METALWORKERS ORGANIZE RENAULT SAMSUNG MOTORS

 Renault-Samsung Motors workers are waiting to cast their vote to elect the leaders of their local.

2000 production workers and 500 white collar and maintenance workers in the factory in Busan in Korea belonging to Renault Samsung Motors decide to join IMF affiliate Korean Metal Workers' Federation.  The company totals 5650 employees, and has a production capacity of 300,000 vehicles per year.

KOREA:  Renault Samsung workers joined the KMWU and formed the Renault Samsung Motors Local, as an additional 100 workers affiliated. The Local was officially established and launched at a general meeting on August 21 at the KMWU Pusan Yangsan Branch.
 KMWU Busan-Yangsan Regional Branch First Vice Chair SEO, Suhan congratulates the workers on forming a union local of the KMWU.
PARK Chongkyu was elected local chair. Workers at all of Korea's auto assembly companies - Hyundai, Kia, GM, Ssangyong, Tata, Daewoo and Renault Samsung - are now affiliated to KCTU-KMWU.
 
Renault Samsung Motor began as Samsung Motor in 1995. In 1997 the company was hit by the East Asian financial crisis and serious labour disputes. French Renault took over control of the company in 2000 (Samsung Card retains 20%). Renault increased production capacity - and work pace - from 100,000 to 300,000 units per year. Worker representatives have claimed that work intensity was forced up to unbearable levels. Renault wants to make the company to the stepping stone of Renault's expansion in Asia.
 
From the start, an 'Employees Representative Organization' at the company made unilateral agreements on annual wage increases and goals concerning units per hour and hours per vehicle. The wage increases have not matched those at other auto assembly companies. During the course of 2011 workers started to unite, with a view to affiliate with the KMWU.
 
KMWU will now inform Renault Samsung Motor about the establishment of the local union and request a meeting to start negotiations on a collective agreement.

Since 2004 IMF has an international framework agreement with Renault, covering more than 130,000 employees worldwide. The negotiations of new agreement are under way.
 
For more info, contact Seong-sang KIM / Executive Director, KMWU, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .   [Aug 23, 2011 – Rainer Santi]


LOS MINEROS ACHIEVE RECOGNITION AT EXCELLON DE MEXICO 

On August 18 local Section 309 of the National Miners' and Metalworkers' Union of Mexico (SNTMMSRM) at the mine La Platosa in the state of Durango, Mexico reached an agreement with the management of Excellon de Mesico S.A. de C.V. a subsidiary of the Canadian owned mining company Excellon Resources Inc.

MEXICO:  After months of struggle organized by Section 309 of SNTMMSRM affiliate of both of the International Metalworkers’ Federation (IMF) and the International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM), a four day strike started on August 15 has ended with victory. 

On August 18 management of Excellon de Mexico, S.A. de C.V. signed an agreement about union recognition and a committment to sign a new collective labour contract. According to the agreement in addition to recognition the company will pay out 100 per cent lost wages to those who participated in the four day strike and will not persecute workers who participated in it.

The signature of the agreement took place in the Gómes Palacio in Durango in presence of representatives of the union, management, the authorities of the state Durango, as well as the organization Proyecto de Derechos Económicos, Sociales y Culturales (ProDESC), which put a lot of efforts in assisting the union in their struggle.

One of the biggest obstacles workers faced when fighting for their rights was the existence of two yellow unions which back in 2005 signed protection contracts with the management to block access of authentic unions to the mine. Each of these contracts was concluded with only 10 and 20 workers respectively. The vast majority of workers of the mine were neither aware of existence of these contracts nor familiar with the leaders of these unions.

The next step will be the conclusion of a new collective labour contract between Section 309 and management of the Excellon de Mexico, S.A. de C.V. after the competent authority, the Local Committee for Conciliation and Arbitrage of the State of Durango, confirms Local Section 309 of SNTMMSRM as the union representing majority of workers at the La Platosa mine.

The IMF has earlier reported about the situation at La Platosa mine and contacted the company and Mexican authorities on several occasions including recently when management of Excellon de Mexico submitted a complaint for eviction before the Public Ministry instead of addressing workers concerns of unsatisfactory working conditions.

IMF and other global unions welcome this victory of workers and will keep on following closely the development of the situation with trade union rights at La Platosa mine and Mexico in general.  [Aug 24, 2011 – Alex Ivanou]


JACK LAYTON DIES AT THE AGE OF 61  

 Jack Layton leader of the federal New Democratic Party of Canada.  Photo by Thorfinn Stainforth 

Jack Layton, leader of the New Democratic Party (NDP) of Canada and a strong ally of trade unions, dies of cancer on August 22, at the age of 61.

CANADA:  Jack Layton led the New Democratic Party of Canada from 2003 until his death. In the national election in May 2011, the NDP achieved a historic total of 103 seats, more than double its previous high.

Layton laid out a vision for a Canada with a more open, accountable and democratic government, where progressive policies help create good, sustainable jobs and protect the environment.  Wealth should be invested to strengthen health care, education, transport and other public services that benefit all citizens.

Layton also paid a contribution to international solidarity. During a global labour mission to Mexico in 2009 with the International Metalworkers’ Federation (IMF) and the International Chemical, Energy and Mine Workers Federation (ICEM), Layton said: “We made it clear that the government’s interference in union governance, it’s jailing of union leaders and freezing union bank accounts, declaring strikes illegal and failing to prosecute the killers of union leaders, are serious and unacceptable violations of basic human rights.”

Ken Neumann, Canadian National Director of the United Steelworkers (USW), said: "Jack reawakened Canadians to the reality that government can - and must - play a positive role in ensuring the economic and social wellbeing of its citizens."

Ken Lewenza, President of the Canadian Auto Workers (CAW) said in a message to the NDP: "At Jack's passing, your voice of conscience is needed more than ever. Your efforts can and will make a difference in the direction of our country."

IMF General Secretary Jyrki Raina said: "Jack joined us on a solidarity mission to Mexico and on the picket line in Sudbury, demonstrating once again his deep commitment to social justice and struggles of workers for a better life. The trade union movement has lost a great ally."

In a message to his friends, written just two days before he passed away, Layton thanked the tens of thousands who had written to him to wish him well, saying: "We can build a prosperous economy and a society that shares its benefits more fairly. We can look after our seniors. We can offer better futures for our children. We can do our part to save the world's environment. Love is better than anger. Hope is better than fear. Optimism is better than despair. So let us be loving, hopeful and optimistic. And we'll change the world."  [Aug 23, 2011 – Rainer Santi]


CWA STRIKE AT VERIZON ENDS IN USA 

Hundreds of members of CWA Local 1122 rallied in Buffalo, N.Y., on Aug. 10. Photo by Unity @ Verizon

IMF-affiliated Communications Workers of America (CWA), and the International Brotherhood of Electrical Workers (IBEW), reached agreement with Verizon on August 20 on how bargaining will proceed and how it will be restructured.

USA: The collective bargaining agreement between CWA and Verizon expired on August 6.

For the new agreement, Verizon wanted to freeze and eliminate pensions, increase offshoring of jobs, slash health care plans and eliminate disability payments for injured workers. In total Verizon had nearly 100 concession demands, despite profits of US$19.5 billion and payments of US$258 million to its top five executives in the last four years.

According to the new agreement on how to proceed, the existing contract will be back in force for an indefinite period, but can be terminated by either party by providing seven days notice after September 20.

Members of CWA and IBEW at Verizon Communications who have been striking since August 7 will return to work on Tuesday, August 23. The major issues remain to be discussed, but issues have been focused and narrowed. The unions will now focus on bargaining fairly and moving forward.

CWA and IBEW represent 45,000 workers at Verizon covered by this contract from Virginia to New England.

Contact: Candice Johnson, CWA Communications, This e-mail address is being protected from spambots. You need JavaScript enabled to view it .'; document.write( '' ); document.write( addy_text57636 ); document.write( '<\/a>' ); //--> This e-mail address is being protected from spambots. You need JavaScript enabled to view it   [Aug 23, 2011 – Rainer Santi]


COMPROMISE REACHED AT THE VYSHNEVOGORSKY PLANT IN RUSSIA 

A ten per cent was increase will be implemented at the Vyshnevogorsky mining and processing plant in Chelyabinsk, Russia, in November 2011.  The union cancelled the public action scheduled for August 18.  Earlier the workers had demanded a 30 per cent wage increase.

RUSSIA: As a result of negotiations with local authorities present, an agreement was reached at the Vyshnevogorsky mining and processing plant in Chelyabinsk, Russia. A ten per cent wage increase will be implemented at the plant in November 2011. The union cancelled public action scheduled for August 18. A workers’ meeting will be held at the plant instead.

Vyshnevogorsky workers were on the brink of strike action all summer. They protested against low wages and poor working conditions.

On June 24, 2011 the negotiations and the workers’ resolution to take action resulted in an agreement. The administration agreed to save the "benefits and guarantees" section in the CBA for 2011-2013, conduct a workplace assessment before July 15, 2011, pay double rate for  overtime work before August 20, 2011 and make regular overtime payments thereafter. They will also introduce a 40 per cent premium for night work and pay the utilities workers arrears for 2011 according to these new pay rates, allow for additional days of vacations for work in hazardous conditions, and introduce new pay rates before August 1, 2011.

The agreement was fully supported by the workers. However, in August all the deadlines were missed and the agreement wasn’t implemented. This led to the decision to take action on August 18.

However, the negotiations between the union and the administration with local authorities present resulted in an agreement to increase wages by ten per cent in November 2011. The issues of overtime and night work were resolved in full accordance with the Russian Labour Code — the overtime rate was set at 150 per cent of the normal rate and the night work rate was set at 140 per cent of the normal rate. The workers were paid arrears for the first half of 2011. New pay rates were also introduced by the administration. The union will handle the assessment of workplaces.

“Such an increase in wages is of course a compromise. The workers demanded a 20-30 per cent increase, but now the figure is ten per cent,” said Yuri Goranov, president of the Chelyabinsk branch of the Mining and Metallurgical Workers’ Union (MMWU), an IMF affiliate in Russia.

“We believe that the wages should be increased on a case-by-case basis. The first priority is to improve the income of the lowest-paid workers, who earn less than 12 000 rubles (US$300 dollars) a month.”  [Aug 19, 2011 – Ilya Matveev]


MEXICAN VOLKSWAGEN WORKERS WIN SIX PER CENT PAY RAISE 

The agreement with the company also include a one-off payment for union members, employment contracts for temporary workers and company contributions to the cost of school materials for the children of union members.

MEXICO: The Volkswagen Workers' Union (SITIAVW) has reached agreement with the company, a few hours before a strike was scheduled to begin. The agreement included a six per cent pay rise, a 661 peso one-off payment to all union members and employment contracts for 500 temporary workers.

The union's general secretary, Víctor Jaime Cervantes Rosas, told local media that the company and union reached agreement at 4am and therefore avoided a strike.

The union leader said workers were satisfied with the six per cent pay rise because it was above the inflation rate and higher than the pay rises agreed with other companies in the automotive industry, which had been the union's objective.

He also explained that the company will make a contribution towards the cost of school materials for the children of more than 11,800 union members, irrespective of the number of children they have.

The union initially demanded a 13 per cent pay rise but then lowered its demands to 7.5 per cent. The company began by offering 4.5 per cent, employment contracts for 400 temporary workers and a contribution towards school materials only for workers with two or more children.  [Aug 18, 2011 – Valeska Solis]


UNCERTAINTY CONTINUES FOR SWISSMETAL WORKERS 

Swiss trade union UNIA has achieved significant steps in the campaign to save the jobs of 470 workers at Swissmetal, a company on the verge of bankruptcy.  The first victory was ensuring all staff received salary payments for the month of July.  This was achieved through pressure on Switzerland's Scretary of State for the Economy, and on the cantonal governments of Soleure and Berne.

SWITZERLAND:  The federal, cantonal governments and UNIA provided the CHF 2 million to meet July's payroll. Swissmetal no longer has the liquidity to pay wages. UNIA provided the majority of the payment, approximately 70%.

This payment means that the possibility still exists that the two Swiss operations of the company still might be purchased by French-based Le Bronze Industriel SA, a manufacturer of bronze and copper electrodes.

Another major step UNIA in trying to save Swissmetal jobs came when the Swiss national union succeeded in pressuring bank BNP Paribas - a creditor of Swissmetal that is owed CHF 20 million - to release the company's metal inventories, which the bank blocked at the two sites.

On 8 August, UNIA and workers at the main facility in Dornach held a symbolic manifestation at the Basle branch of BNP Paribas, urging the bank to lift the blockade of raw metal stock. Hundreds of workers rallied under the slogan, "You occupy our warehouse, we occupy your bank!" The occupation of the bank proved successful.
 
While work did re-start at the other plant, in Reconvilier, on 8 August, all attention today is on the Dornach site, where production must restart immediately. This depends on Swissmetal agreeing to operate and deal with pending orders before buyers look elsewhere. Reopening of operations in the immediate term would ensure Swissmetal's ability to pay wages for August.
 
As sale negotiations continue, redundancies are not necessary at this stage, and will be bitterly opposed.
 
UNIA underlines the vital importance that the cantonal governments of Soleure and Bern have. They have a duty to prevent the massive dismantling of operations and stop closure of the factories.

This ICEM release is also available on the
ICEM Web-site.  [Aug 15, 2011 – ICEM]

 


 

 GEORGIAN MINE, METALWORKERS WIN UNION RIGHTS AT EUROASIAN STEELS

The ICEM affiliate of Georgia, the Metallurical, Mining, and Chemical Industry Workers' Trade Union, is again bringing dignity and job rights to steelworkers in the Central Asian country.  On 2 August, after formally submitting grievances over extreme sub-standard work conditions before the managing director of Euroasian Steels LLC in Kutaisi, the company agreed to recognize the union as voice for 400 workers, and begin a process to correct problems.

GEORGIA:  Over the past two years, the union has pursued aggressive recruitment drives in Georgia through direct action, and has successfully brought work rights to thousands of miners and metalworkers.

 

This time, the director of Euroasian Steels told union President Tamaz Dolaberidze he would respect workers' decision to join a trade union, and underscored that it is their right to join a union organisation of their choice. On 6 August, the Metallurgical, Mining, Chemical Union submitted a list of 14 names of workers who would make up the union committee. Dolaberidze said it is his intent to forewarn management and government officials alike that the individuals stand as legitimate shop-floor representatives, and any attempt to dismiss, discipline, or obstruct their duties would violate the rights of all.

The Metallurgical, Mining, and Chemical Industry Workers' Trade Union, with the help of the ICEM and the Georgian Trade Unions Confederation (GTUC), has rapidly established itself as a force for workers' rights in the country. Earlier this year, the union won recognition for 1,500 miners of Geo-Coal and then posted huge salary jumps for them in collective negotiations. The circumstances around that can be found in the ICEM report here.

And in spring 2010, the union along with ICEM and the GTUC, won union rights and a fair deal for 5,800 workers at Zestafoni Ferroalloys and Georgian Manganese mines. (Read the recap on that here.) Both struggles saw workers engage in strikes in order to gain union recognition and wage and benefit gains.

For more details visit the ICEM website.  [Aug 15, 2011 – ICEM]


CANADIAN AUTO WORKERS WIN 27-DAY STRIKE AT SANDVIK METALS 

An unbroken chain of solidarity and staunch resolve by all 157 members of Canadian Auto Workers (CAW) Local 2228 staved off contract concessions in Canada recently.  On 8 August, union members ratified a three-year agreement with Sandvik Materials Technology Canada, a subsidiary of Swedish Industrial giant Sandvik AB, with an 80.6% vote, ending a successful strike that begain on 13 July.

 26 July Protest in Mississauga (CAW President Ken Lewenza, kneeling, center, giving an early prompt how strike would end)CANADA:  On 9 and 10 August, CAW members returned to their Arnprior, Ontario, factory knowing they bested the company's mid-July "last, best offer" of pension reductions, cost-of-living (COLA) rollbacks, and contract language deletions. After Sandvik made some modifications in its original proposals in talks on 29 July, changes that CAW members saw as insufficient and which they rejected. The company returned to bargaining in early August with more revisions that essentially left a prior labour agreement intact.
 
There will be no changes to the roll-in effect of the COLA, no changes to job security, and pension benefits will remain the same. In addition, there were some benefit improvements and strengthened contract language regarding layoffs. A 1% wage increase is also due at the beginning of the third year.

"I'm humbled by the level of support the membership ha shown in their first-even strike, in the facility's more than 30-year existence," said CAW Eastern Ontario Area Director Harry Ghadban. Local 2228 Unit Chairman Derek Mosley said: "We could not have done it without the unwavering support from the membership and the support from the national union.

"We are proud of the solidarity of our membership in fighting back concessions and holding tough until a negotiated settlement was reached."
 
And on Local 2228's blog after the 8 August ratification vote, one union member stated: "We can all hold our heads high as we return to work knowing we sent a message to management saying we will not accept your final offer, we go back on our terms. I cannot express how proud I am."

Sandvik Materials Technology in Arnprior manufactures stainless steel and nickel alloy speciality tubing used in the nuclear, aerospace, automotive, and oil and gas industries.

This ICEM release is also available on the ICEM Web-site.  [Aug 15, 2011 – ICEM]

 


 ARCELORMITTAL - TOGETHER FOR SAFETY 

 Launching the report "Together for Safety" at the United Steelworkers Convention in Las Vegas, United States, August 2011

A new report launched by ArcelorMittal, European Metalworkers' Federation, United Steelworkers, and the International Metalworkers' Federation reviews how unions and management have been working together globally to deliver bettery safety results for ArcelorMittal.  The report called "Together for Safety, Global Agreement, Local Impact", chronicles the work undertaken since signing the Steel industries first ever global agreement on Health and Safety.

GLOBAL:  Since signing the agreement in June 2008, the joint union and management approach has had a positive impact on the number of accidents in the workplace, especially fatalities, and helped reduce the risk faced by workers. Since 2008 the total number of fatal accidents has been reduced by one third. The report also identifies that even one fatality is too high and that fatalities within the company continue to remain unacceptably high despite progress.

Mr. Jyrki Raina, General Secretary International Metalworkers' Federation, commented at the launch "This report demonstrates our commitment to improve health and safety in ArcelorMittal. The Joint Global Health and Safety Committee have carried out a lot of good work, but achieving Zero fatalities remains our highest priority."

Prior to signing the agreement the company had its worst year for fatalities and unions and management identified safety as their number one priority. The spirit of the agreement is a shared recognition that the most effective tool in ensuring good workplace health and safety is good cooperation among workers, trade unions and management. The global agreement sets out standards that every site must adopt including the creation of a joint health and safety committee.

Mr. Lakshmi Mittal, Chairman and Chief Executive Officer, ArcelorMittal stated "The Joint Global Health and Safety Committee set a new benchmark in steel, and its leadership has improved cooperation with unions and helped us to make progress on our Journey to Zero in Health and Safety. I count on all our joint committees to further boost progress in health and safety to reach the challenging objectives the company has set itself, since health and safety remains top priority. Innovation and not being afraid to make bold decisions are at the heart of our success".

Mr. Leo W. Gerard, International President of the United Steelworkers, added "When we first signed this agreement the question was could this approach save lives, the answer is yes. But we haven't saved every life and put simply that is our goal"

Mr. Tony Murphy from the European Metalworkers' Federation stated "We always maintained that working with unions can benefit safety performance, the more involvement the unions have the better the results will get".

For further details or comment please contact the joint Chairs of the JGHSC:
Rob Johnston at This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; Tel. +41(22)308-5028
Frank Haers at This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; Tel +352 4792 2683  [Aug 16, 2011 – Rob Johnston]


TEAMSTERS REACH A DEAL WITH BMW IN CALIFORNIA 

After a strong and resolute campaign nearly 70 BMW warehouse workers in Southern California, USA got their contracts renewed for another half year.  The workers, members of Teamsters Loc 495 got their jobs back through an active campaign involving International Transport Workers' Federation (ITF) and IMF affiliates Unite the Union in the UK and IG Metall in Germany.  An important role was placed by the BMW Europeans Works Couoncil.

USA:  In June the BMW management notified members of Teamsters Local 495 that it is going to replace 68 unionized auto-parts warehousing jobs with outsourced workers at the company warehouse in Southern California. The previous contract with them was due to expire at the end of August.

On August 10, 2011 following a strong campaign organized by Teamsters Union (IBT) across the US and the international solidarity support received from IMF affiliates Unite in the UK and IG Metall in Germany as well as involvement of BMW European Works Council, Teamster Local 495 leadership and BMW management reached an agreement to extend the current contract for six months.

During this interim period the company promised to work with Local 495 and find a mutually acceptable solution that will address long term employment for the current BMW workforce in Ontario, California.

The union agreed to suspend additional campaign activities directed at BMW consumers and its supply chain pending progress towards a solution over the next months, however the union will continue posting materials and updates regarding the process of negotiations on the special campaign website. The Ontario, California, warehouse handles 200,000 auto parts for just-in-time delivery to BMW car dealerships and other auto-supply outlets on the West Coast.  [Aug 15, 2011 – Alex Ivanou]


GOOD WAGE GAINS FOR IRON AND STEEL WORKERS IN ZAMBIA 

The National Union of Building, Engineering and General Workers (NUBEGW) has negotiated a 13 percent wage increase in the iron and sttel sector with the employers association in the iron and sttel sector.  This increase in significantly ahead of the inflation rate in Zambia.

ZAMBIA:  Zambia seems to be faring well given the difficult global economic environment. Most of the country's economic sectors are recording positive growth and this is reflected in the increase the GDP. The inflation rate has been maintained at around 9%.

Whilst the economy of the country appears stable and moving in a positive direction, food and fuel prices have been increasing, making the cost of living high and many essential items unaffordable to workers.

The union has been able to successfully negotiate a 13% wage increase for iron and steel workers, at least 5% higher than current inflation, making it a real wage increase.

NUBEGW has faced greater challenges in negotiations with the construction sector, where the union has at least been to secure a 9% increase. 

Article contributed by George Sikazwe of NUBEGW.   [Aug 13, 2011 – Aisha Bahadur]

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