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From International Metalworkers&rsquo; Federation 
 
At the ILO Global Dialogue Forum on private employment agencies, unions put on record their experiences of employment through agencies being used to drive down wages and prevent agency workers from joining a union and bargaining collectively. 
 
On 18-19 October, representatives of governments, private employment agencies, and trade unions exchanged views on the role of agencies in promoting decent work. The discussions revealed that unions and agencies have completely different views on the impact of the growth of agency labour on employment. 
 
The agencies repeatedly insisted that agency work is decent work, that it creates jobs and that it is never used to undermine or replace open-ended, direct employment. All of these claims were rejected by trade union representatives, who presented a catalogue of situations from a variety of industries around the world that demonstrate that agency employment is being used to systematically replace permanent jobs, lower wages and work conditions and leaving workers with no social protections and no possibility of joining a union or bargaining collectively with their employer. 
 
Worker delegates insisted that triangular employment relationships by their very nature make collective bargaining virtually impossible. 
 
It rapidly became clear that the representatives of private employment agencies were using the meeting to seek legitimacy for their industry, to grow their markets and to be recognized as the sole counterpart for collective bargaining, at the exclusion of user enterprises. 
 
For their part, unions were seeking equal treatment for agency workers and restrictions on the circumstances under which agency employment is permissible, its duration and extent. Unions also wanted action to strengthen freedom of association and collective bargaining for agency workers which included user enterprises and unions representing workers in user enterprises. 
 
At the end of the meeting, a very limited number of potential consensus points were put forward for discussion, but finally the meeting ended with no conclusions when labour hire representatives showed that they are not ready to negotiate in order to reach agreement. 
 
Unions will continue to work within the framework of the ILO to ensure greater protection for agency workers and to limit the spread of agency work and triangular employment relationships.

ILO Meeting on Labour Agencies Exposes Abuses, No Consensus Reached

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The devastating floods which killed more than 600 people in Thailand have had a serious impact on the livelihoods of CAL workers. Many agency workers were not paid as plants have been shut down since the crisis began in October 2011. As the flooding continued in November and December, hundreds of thousands of agency workers were laid off. 
 
The electronic sector, which employs a high proportion of precarious workers, has been amongst the hardest hit by the flooding. In the Ayutthaya and Pathumthani provinces, north of Bangkok, thousands of electronic factories located across several industrial estates remain swamped by more than two metres of water. Several companies have announced lay-offs and plans to relocate production facilities from Ayuttaya to Malaysia. 
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The Thai government is providing a package to assist companies to retain their workforces. Companies that commit to a policy of no lay-offs, maintain the same level of worker benefits, and pay workers no less than 75% of their wages are eligible for this relief package. 
 
Some unionised companies have continued to pay wages &ndash; from 100% of wages in the first month, to 75% and 50% for November and December. The Goodyear Tyre company paid full wages to both regular and fixed-term workers since its only plant in Rangsit, north of Bangkok, was hit by the floods on 21 October. 
 
Production has not yet resumed at the plant but management and the union are working hand in hand in the recovery process. Workers on fixed term workers at Goodyear whose contracts came to an end on 30th November 2011 did not have their contracts renewed. 
 
At the same time, several companies in the eastern seaboard which were not directly affected by the flood have used the flood as an excuse to delay CBA negotiations or to avoid implementing CBAs.

Flooding in Thailand has devastating impact on CAL workers

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An ICEM report has found that the rights of workers in the cement industries of the Philippines, Indonesia, Thailand, Malaysia and India are being routinely violated through the use of precarious forms of employment. 
 
In many of the plants covered by the research, Contract and Agency Labour (CAL) is being used to restrict or prevent workers from exercising their right to freedom of association. Lafarge in the Philippines, for example, has been using CAL workers to fill permanent positions ever since workers took part in industrial actions as far back as 2000. At one Lafarge plant in Indonesia, all permanent workers are union members, whereas none of the CAL workers are. In India, contract workers at Holcim were dismissed after they joined the union. To make it worse, the company started criminalising the union leaders. 
 
ILO Conventions 87 and 98 apply to all workers, as explicitly stated in the 350th report of the ILO Committee on Freedom of Association: &ldquo;The Committee emphasizes that all workers, without distinction whatsoever, whether they are employed on a permanent basis, for a fixed term or as contract employees, should have the right to establish and join organizations of their own choosing.&rdquo; 
<img alt="" src="" width="150" height="46" />&nbsp;&nbsp;&nbsp; <img alt="" src="" width="150" height="64" />
The report further specifies that the non-renewal of a contract for anti-union reasons constitutes a prejudicial act within the meaning of Article 1 of Convention 98. 
 
In all five countries covered by the research, CAL workers earn less than permanent workers &ndash; despite performing work of equal value &ndash; and are denied access to many of the benefits enjoyed by their permanent counterparts. 
 
In both the Philippines and Thailand, permanent workers are increasingly being used only in supervisory roles. This division of responsibilities highlights the fact that it is often contract and agency workers who are performing core labour tasks. 
 
CAL workers in many cement plants live with the burden of uncertainty. As one interviewee explained, he felt his job would continue only &ldquo;as long as I will cooperate.&rdquo; In the Philippines, some CAL workers reported that they do not even have written contracts. In many cases and countries, CAL workers are also not clear who is responsible for their welfare. In Thailand, agency workers are the most likely to suffer workplace accidents, yet in many plants they are denied the same health care benefits as permanent workers. 
 
The ICEM decries these exploitative practices, and demands that multinational cement companies such as Lafarge and Holcim that operate in Asia guarantee equal rights for CAL workers and take urgent steps to bring their practices in line with not only the various applicable national legislations, but also with all existing international labour standards - including ILO Conventions 87 and 98 and the Employment Relationship Recommendation 198. 
 
Cement companies must also act to ensure that they meet their obligations under the OECD Guidelines for MNEs and the United Nations Guiding Principles on Business and Human Rights. 
 
The <a href="http://cal.icem.org/images/documents/Cement%20Report.pdf">CAL Cement Report</a> is available here.

ICEM Report Exposes Asian Cement’s CAL Practices

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	The Australian High Court last week refused to hear an appeal by Rio Tinto over the company&rsquo;s illegal non-union collective agreements imposed on iron ore miners in West Australia. The denial is a victory for ICEM affiliate Construction, Forestry, Mining and Energy Union (CFMEU), which took the case forward, and a victory for legitimate collective bargaining rights.

	It also stands as a rebuke to Rio Tinto in its efforts to avoid 2009 changes in Australian labour law.

	The 10 February ruling not to hear Rio&rsquo;s appeal to a 25 July 2011 determination by the full bench of the country&rsquo;s Federal Court means Rio&rsquo;s sham labour agreement from July 2008 is not a genuine collective agreement. (See <a href="/en/78-ICEM-InBrief/4571-Australia-s-CFMEU-Wins-Major-Bargaining-Ruling-Against-Rio-Tinto">ICEM report</a> on Federal Court decision from 1 August 2011.)

	It also serves as an invitation for iron ore miners &ndash; and others &ndash; in West Australia&rsquo;s rich Pilbara region to take membership in the CFMEU, with the aim to negotiate real enterprise labour agreements through the union.&nbsp; The High Court ruling will also negate other mining firms such as BHP Billiton, which also converted individual work agreements into non-union labour agreements that were intended to keep trade unions away from workers and workers without a union voice.

	In Rio Tinto&rsquo;s case, it brought ten new hires of its Pilbara Iron Company Pty. Ltd. subsidiary into a bogus Pilbara Iron Employee Agreement for a five-year duration that was meant to include all other new hires during that time. The ploy was done to avoid changes in law that took effect with the July 2009 effective date of the Fair Work Australia law.

	Some 20 such delusionary labour agreements are said to have been put in place to avoid the Fair Work law, and Rio Tinto&rsquo;s legal failure last week is expected to strike the ones that are still in effect null and void.

	&ldquo;Rio Tinto made a cynical attempt to circumvent their obligations under the Fair Work laws,&rdquo; said CFMEU Mining General Secretary Andrew Vickers. &ldquo;It has tried to dodge its obligation to recognise the rights of its workers to genuinely collectively bargain for future pay increases and improved conditions.

	&ldquo;It has been a long legal battle, but it&rsquo;s been worth it to safeguard the rights of our members in the Pilbara and demonstrate that Rio Tinto is not above the law,&rdquo; added Vickers.

Australian High Court Denies Rio Tinto’s Appeal to Evade Union Contracts

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The union representing permanent and contract workers at PT Cussons in Tangerang, Indonesia, has managed to negotiate permanent positions for 110 contract workers. 
 
Since the beginning of 2011, the union has been active in training contract workers and, out of a total of 200 contract workers, 118 joined the union. PT Cussons management refused to extend the check-off system to contract workers, so these workers pay their dues manually. 
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Union Chairman Sasmita
On August 2011, the company announced it would end the contracts of 200 fixed term workers without making any severance payments. The union challenged the company decision, drawing attention to the fact that the contracts contravened Indonesia law by explicitly stating that during a fixed-term contract it was forbidden to be married or to become pregnant, and those workers who did so would be deemed to have resigned without severance pay. 
 
After two weeks of negotiations and pressure from union members, the company finally reversed its decision. They arranged placement tests for the 200 contract workers. Out of 200 workers, 110 have become permanent staff since August 2011. Sasmita, the Cusson Union Chairman, said, &ldquo;We were satisfied with the result, but yet we still had to struggling for all the contract workers to be permanent.&rdquo; 
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Union officers of Cussons in Union Office
According to Sasmita, the company has ceased using contracts with discriminatory language and now contract workers can marry and become pregnant without fear of being terminated. &ldquo;Those contract agreements &hellip; no longer exist, and we keep our eye (out) to make sure that the company (does) not use (them) anymore,&rdquo; he added. 
 
The 110 workers now enjoy health insurance and benefits. Tuti, one of the workers said, &ldquo;Now I am not worried again about my future, (to) become permanent workers is my dream, although still (there is) a long way to go for me together with the union to fights for the welfare of the whole workers in Cussons.&rdquo;

From Contract to Permanent Work: Victory at PT Cussons Indonesia

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The Sub-Saharan Africa arm of ICEM&rsquo;s Contract and Agency Labour (CAL) Project held its regional conference in Accra on 25-26 October 2011. Next month marks the end of the first phase of the project, which began in 2009 with the support of Finnish solidarity organisation SASK, and Finnish trade unions TEAM and PRO. This CAL Project, coordinated by Joseph Toe, has been a great success in bringing CAL to the fore of trade union work in the project countries. 
 
Participants spoke about the various approaches, challenges and successes they had experienced over the three years of the project. 
 
A number of unions participating in the project have driven the adoption of legislation and industry guidelines on the use of CAL. In Senegal, for example, an innovative campaign by ICEM affiliate Sutids led to the signing of the President Decree to regulate short-term employment. This law limits the duration of a short-term contract to two years; makes the user-enterprise responsible for working conditions, as well as for salary obligations should the agency &ldquo;fail&rdquo;; requires that CAL workers must enjoy the same working conditions as similar workers at the user enterprise; and provides for the short-term worker, at the end of his or her contract, to receive a severance pay equal to 7% of the total gross remunerations paid since the start of the contract. 
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PENGASSAN General Secretary Bayo Olowoshile 
In Nigeria, ICEM affiliates NUPENG and PENGASSAN have worked closely together to raise awareness of CAL with the government, including through a three-day warning strike. Following pressure from the unions, the Ministry of Labour and Productivity convened a technical tripartite working group to review how CAL was being used in the oil and gas industries. This engagement led to the adoption of the Nigeria Guidelines on Labour Administration issues in Contract Staffing/ Outsourcing in the Oil and Gas Sector. These guidelines, according to PENGASSAN General Secretary Bayo Olowoshile, set the minimum standard for using CAL and are the first of their kind in any sector in Nigeria. 
 
Other unions reported a reversal of declining membership figures since efforts were focused on recruiting CAL workers and achievements in gaining permanent status for CAL workers. In Mozambique, about 400 workers have moved from CAL to indefinite contracts as a result of the work of the work of ICEM SINTIQUIAF. The union has also managed to recruit 360 CAL members. In Mauritius, from 2009-2011, a total of 3,000 contract workers joined ICEM affiliate CMCTEU. With the help of the CAL campaign, the union redefined its strategy to organise and bargain on behalf of contract workers, migrant workers, and workers in the informal economy. This included a decision to reduce the union&rsquo;s membership fees from Rs 50 to Rs 1 (one symbolic rupee) for the most vulnerable CAL workers. CMCTEU demanded that the government review the Domestic Workers Remuneration Order, which had been static for 25 years. This review led to domestic workers gaining an increase of 110% in salary, as well as other gains such as holiday leave, wedding leave, and end of year bonuses. 
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In South Africa, ICEM affiliate CEPPWAWU, with the support of an international delegation organised as part of the implementation of ICEM&rsquo;s Global Framework Agreement, encouraged Umicore in South Africa to change its practices with regard to CAL. Umicore signed an agreement stating that all new work contracts will be on a permanent basis, with all ensuing social protections. Unions participating in the conference declared that targeting multinationals must be a key component of future work on CAL and committed to increasing cross border trade union cooperation in this respect.

Sub-Saharan Africa Region Conference Reviews 3 Years of CAL Work

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A three-week strike by 4,000 members of the National Union of Metalworkers of South Africa (NUMSA) spilled into the streets of Johannesburg this week, as workers at Xstrata&rsquo;s Boshoek and Wonderkop ferrochrome smelters near Rustenburg took a protest to the Swiss company&rsquo;s Alloys headquarters. NUMSA members presented a petition to company managers demanding wage parity with workers employed at the Xstrata Lion ferrochrome smelter in Tubatse, Mpumalanga province. 
 
Both operations are undergoing big expansions. Xstrata owns 79.5% of the ferrochrome complexes in South Africa, while publicly-listed Merafe Resources holds a 20.5% stake. Both companies also mine chrome in South Africa. 
 
The strike by NUMSA in the North-West province began on 24 October after conciliation efforts by the country&rsquo;s Commission for Conciliation, Mediation, and Arbitration (CCMA) failed. NUMSA and Xstrata Alloys met two days earlier, but a revised pay offer by the company fell short and workers rejected it. 
 
NUMSA is seeking an immediate 10% pay increase for Boshoek and Wonderkop metalworkers and a reduction of job grading systems from eight to five. That would close the wage gap with workers at the Lion smelter and equalize the grading system. Currently, Boshoek and Wonderkop workers earn 14 to 39% less than at Lion, depending on pay grades. 
 
NUMSA is also seeking a housing allowance of R3,500.
<img alt="" src="" width="255" height="169" />
&nbsp;NUMSA President Cedric Gina (rear) has&nbsp;Xstrata's Edwin Hlatshwayo&nbsp;Sign Receipt of Petition
The petition handed to Xstrata Alloys management on 15 November states: &ldquo;(The company) has angered workers and instead of focusing on negotiations, they have decided to apply cheap apartheid-era tactics of bashing members through police intimidation of the strike. NUMSA is very angry that workers who went on a legal and protected strike have been treated like common criminals.&rdquo; 
 
NUMSA President Cedric Gina and Congress of South African Trade Unions (COSATU) Second Deputy Vice President Zingiswi Losi led the march and handover of the petition. The petition asks the company to respond within 48 hours. 
 
Xstrata is world&rsquo;s largest producer of metal alloys, which besides ferrochrome includes vanadium and platinum, and accounts for one-third of total global production. The Boshoek smelter is currently seeing an expansion that will lift production to 240,000-tonnes-per-year by the end of next year. A second smelter, meanwhile, is now being constructed at the Lion operation that will see production double from the current 360,000 tonnes when it goes on line in the first half of 2013. 
 
The Xstrata-Merafe joint venture in South Africa will then yield 2.3 million tonnes yearly of ferrochrome, which is used in stainless steel production.

NUMSA Protests Pay Disparities at Xstrata’s Chrome Smelters

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The ICEM has extended support to Colombian mine union affiliate Sintracarb&oacute;n and 1,200 miners who began strike action on 17 November against Swiss-based Glencore International. The strike at Colombia&rsquo;s third largest coal mining company, Glencore subsidiary CI Prodeco, broke out at the firm&rsquo;s Calenturitas mine in northern C&eacute;sar department over management intransigence in coming to a collective agreement that would grant just pay awards, benefits, a promotion schedule and job security. 
 
The La Jagua de Ibirico municipality branch of Sintracarb&oacute;n gave a list of demands to Prodeco on 21 September and the two sides began the legally required bargaining on 3 October. But after the mandatory 20 days of talks ended on 22 October, management cut off dialogue and announced it would unilaterally implement a previous set of work rules as a collective agreement for a five-year period. (See <a href="/en/78-ICEM-InBrief/4734-Sintracarbón-Fights-Glencore-Subsidiary-in-Colombia ">ICEM report</a> from last month.) 
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Sintracarb&oacute;n then presented workers two options in a vote at the open pit mine: to strike or turn the dispute over to a government arbitration tribunal. Despite Prodeco&rsquo;s harassment and intimidation at polling areas, including trying to block union leaders from conducting the vote, 97.4% of miners voted to strike, while 2% chose arbitration. 
 
Last week&rsquo;s walkout will cripple production by 30,000 tonnes per day. Prodeco was expected to mine five million tons of coal this year from the seven-year-old Calenturitas mine, and another 8.8 million tonnes from the La Jagua open pit mine, an operation that saw a 39-day strike from June to August 2010 by non-affiliated Sintramienergetica. That strike saw miners get a two-year labour agreement. 
 
Glencore has posted excellent results from both thermal coal operations and is on line to increase combined production to 19.9 million tones annually by the end of 2013, and to 20.7 million by 2015. Calenturitas has total deposits of 122 million tones, while La Jagua has contains 133 million tonnes.

Sintracarbón Launches Strike at Glencore’s Calenturitas Mine in Colombia

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The International Textile, Garment and Leather Workers&rsquo; Federation (ITGLWF) has strongly condemned the brutal campaign waged by employers on workers and unions in Faisalbad, Pakistan. 
 
Speaking in Brussels, ITGLWF General Secretary Klaus Priegnitz said, &ldquo;In July this year workers in Faisalabad were forced to go on strike to secure a 17% pay increase that was adopted by government but which employers refused to pay. Over 100,000 workers went on strike in Faisalabad and the surrounding areas. 
 
&ldquo;The employers responded by launching a brutal campaign of violence and intimidation seeking to silence workers and deny them their fundamental rights. As part of this campaign workers have been attacked by armed men employed by factory owners, and some have been shot while others have been badly beaten.&rdquo; 
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The Labour Education Foundation Director Khalid Mahmood highlighted the severity of attacks on workers. &ldquo;The owners and their henchmen resorted to violence by throwing stones and bricks on the peaceful march of workers from one side of the protest, while police used tear gas shells on the workers from the other end. Twenty-five workers were injured including Mr. Tahir Rana, the president of LQM Faisalabad district, who was critically injured. Around 100 workers were also arrested.&rdquo; 
 
The ITGLWF&rsquo;s Priegnitz continued, by stating, &ldquo;This vicious campaign has now culminated in a decision by the Anti-Terrorism Court to sentence six trade union leaders from the Labour Qaumi Movement (LQM) to a total of 490 years in jail on falsified charges. The involvement of the police and the judiciary in this process shows that Pakistan&rsquo;s state agencies are actively working with employers to assist in the repression of fundamental human rights.&rdquo; 
 
Priegnitz concluded by calling for &ldquo;the immediate release of the union leaders and respect for the right of workers to organize and bargain collectively.&rdquo;

ITGLWF Condemns Jailing of Pakistani Power Loom Union Leaders

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The ICEM published another update of its PowerPoint presentation on &ldquo;Contract and Agency Labour and the ICEM CAL Campaign&rdquo;. 
 
This presentation contains not only a large number of statistics on contract and agency labour and other forms of precarious work - from all around the world - it also has a wide array of national and international &ldquo;best practice examples,&rdquo; highlighting, among other, what ICEM affiliated union are doing to counter the precarious work problem. 
 
The full-length English version of the <a href="/wp-content/migration/icem/11-11-03%20for%20the%20web-site%20CAL%20ICEM%20PPT.ppt">presentation</a> can be found - and downloaded - here.

Update of the ICEM CAL Facts and Figures Overview

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