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In manifestations scheduled for today and tomorrow, the Hungarian Union of Mining and Energy Industry Workers (BDSZ) and the Federation of Trade Unions in the Electric Energy Industry (EVDSZ) will turn out hundreds of workers and supporters to preserve the V&eacute;rtes Power Station in northwestern Hungary. The electric generation plant, and adjoining coal mine, both subsidiaries of Hungarian Power Companies Ltd. (MVM), are in jeopardy. Today, the board of the state-run utility is meeting with bankruptcy and liquidation of V&eacute;rtes the sole point on the agenda. 
 
Today&rsquo;s demonstration will take place in Budapest where the board of directors meet, while tomorrow&rsquo;s will take place at the Orasźlany power plant, part of the V&eacute;rtes company complex. 
 
In a joint declaration by BDSZ President Ferenc Rabi and EVDSZ President G&aacute;l Rezső, the two national Hungarian trade union leaders said the decision to place immediate closure on the agenda comes without providing the necessary information to local trade unions and without full consultations. The threat of liquidation could mean the loss of 2,500 to 3,000 jobs in the region. 

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The V&eacute;rtes Power Station consists of the M&aacute;rkushegy mine and the Orasźlany plant, capable of generating 240 megawatts of power. The two unions insist that the power plant be maintained until at least 2014, and that the mine continue producing until the year 2020. Rabi and Rezső said the wishes of the local trade unions at the sites should be respected. Those unions have proposed an energy mix that will safeguard the environment and provide job security. 
 
The two unions, in the declaration call, on Hungary&rsquo;s National Assembly today to issue a resolution supporting their actions to preserve the power plant and mine. 
 
The ICEM issued a letter of support today to V&eacute;rtes workers and the two unions. In it, General Secretary Manfred Warda said, &ldquo;Your manifestations today and tomorrow to preserve jobs, livable standards for families, and to keep local business enterprises around the M&aacute;rkushegy mine and Orasźlany plant operable is exactly the rallying cry that workers worldwide must make to ensure sustainable futures. With a global trade union sustainability conference coming soon to Canada, your rallying cry to achieve a balance between clean environmental methods and security of employment is a leading example to all of us.&rdquo;

Hungary’s Electric, Mining Unions Oppose State Liquidation of Power Company

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The ICEM-Lukoil Global Framework Agreement, first negotiated in May 2004, was updated and extended last week for a further year at a meeting at Lukoil&rsquo;s headquarters in Moscow. 
 
By signing the document, OAO Lukoil confirms its adherence to the principles of the UNO Global Initiative, as well as to the basic labor and environmental principles specified in the conventions of the UNO and the ILO. Under the agreement, Lukoil intends to keep its employees&rsquo; lives and their health protection as a top priority in relation to production performance. 
 
Signing the agreement were ICEM General Secretary Manfred Warda, Lukoil President Vagit Alekperov, Russian Oil, Gas, and Construction Workers&rsquo; Union (ROGWU) Chairman Lev Mironov, and Georgy Kiradiev, Chairman of the Council for the International Association of Lukoil Trade Union Organizations (OAO LUKOIL IATUO). 

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From left, Georgy Kiradiev, Vagit Alekperov, Manfred Warda, Lev Mironov 
Photo: Lukoil
Following the signature ceremony, the parties engaged in a detailed question and answer session, outlining each other&rsquo;s views of the present situation in the global oil and gas industry, as well as forthcoming activities. Lukoil also presented an overview of recent investment decisions and challenges posed by the world economic crisis. 
 
Both the ICEM and company and ICEM concentrated at first on the major oil spill in the Gulf of Mexico, a disaster so serious it was already impacting on both production and further exploration decisions in deep and ultra-deep water deposits worldwide. 
 
ICEM discussed its program of social dialog in the Caspian Sea region, where Lukoil had recently brought on-stream the Yu Korchagin field in the Russian offshore of the Caspian Sea. The field was discovered by Lukoil in 2000 and the maximum expected output is 2.5 million tons of oil and 1 billion cubic meters of gas annually. 

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Between 2004 and 2009, LUKOIL invested a total of RUR 34.4 billion into field development. The company expects to extract 343,000 tons of oil by the end of the year. 
 
There was also a discussion on the company's recent investment in Iraq, as well as the ICEM World Energy Conference, slated for Stavanger, Norway, from 6-8 September 2010. 
 
Lukoil, ICEM, and the Russian trade unions present agreed that there should be further detailed discussions on all of the issues raised.

ICEM, Lukoil Renew Global Agreement for Another Year

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The horrid twin explosions inside mine shafts in Russia&rsquo;s Kuzbass basin on 8-9 May that killed 90 underscored the need for more countries to ratify ILO Convention 176, the Safety and Health in Mines Convention. Since Convention 176 was adopted in 1995, only 24 nations have ratified it. 
 
In Moscow last week, while rescue efforts at the Raspadskaya Coal Co. mine were underway 3,500 kilometres to the east, both ICEM General Secretary Manfred Warda and Russian Independent Coal Employees&rsquo; Union (ROSUGLEPROF) President Ivan Mokhnachuk went on BBC World Service Radio to plead for Russia and other resource-rich countries to take up the important call for ratification of Convention 176. 

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ROSUGLEPROF President Ivan Mokhnachuk
ROSUGLEPROF represents workers at Raspadskaya, a mine jointly owned by Russia&rsquo;s second largest steel and metals group, the Evraz Group, and Cypress-based Corber Enterprises Ltd. A union vice president made his way to the mine immediately following the tragedy. 
 
But it is still not clear if ROSUGLEPROF will be allowed to participate in an investigation that hopefully will lead to the cause of the blasts. At the end of last week, the government halted investigation efforts because mine shafts are still too dangerous. 
 
It is still too early to speculate about cause. What is known is that the mine in the Kemerovo region of western Siberia does have some of the best methane gas detection and ventilation equipment available. And that the first blast, occurring just before midnight local time on 8 May, killed at least 50 miners. The second explosion, four hours later, killed other miners as well as all 19 rescue workers who were sent in. 

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What is not known is did a negligent Russian pay system contribute? That system sets an extremely low flat-rate monthly wage, with the vast share of all mining salaries based on production. Volume, productivity, and profits drive wages higher. This means that detection equipment, safety procedures, and other protection devices are oftentimes disabled or ignored in order to boost monthly pay. 
 
That was the case on 19 March 2007 when 110 miners died at the nearby Ulyanovskaya mine, owned by another mining subsidiary of Evraz. It was the worst mining tragedy in 60 years in Russia and the former Soviet Union. The Raspadskaya disaster of eight days ago stands as the second worst. 
 
ILO Convention 176 improves mine safety and health by forcing improved national mining laws. But Convention 176 does something else; it places responsibility on employers to not only correct hazards, but remedy the cause of the hazards themselves. In Russia, that could well be construed to mean corrective laws to fix a faulty pay system in coal mining.

Russian Mine Disaster Restates Immediacy for ILO Convention 176

Strike actions in April and a flurry of trade union activities over the past two weeks have succeeded in bringing formal recognition to the ICEM affiliate, Metallurgical, Mining, and Chemical Industry Workers&rsquo; Trade Union of Georgia, at the Zestafoni Ferroalloys Plant and the Georgian Manganese mines, some 40 kilometres from Zestafoni in Chiatura. 
 
That was reinforced on 13 May after the union, backed by the Georgian Trade Unions Confederation (GTUC), and top managers met for a second conciliation commission session and made headway towards resolving a host of demands put forward by workers. 
 
Miners and metalworkers were buoyed massively when, ten days after a three-day strike ended on 25 April that got management&rsquo;s rapt attention, ICEM General Secretary Manfred Warda and Chemicals and Rubber Officer Kemal &Ouml;zkan travelled to western Georgian to meet with workers. 

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(LtoR) Irakli Petriashvili, President of GTUC, Manfred Warda,&nbsp;GTUC interpreter, Kemal &Ouml;zkan 
Bringing pledges of solidarity from the ICEM and the International Metalworkers&rsquo; Federation (IMF), Warda told Georgian workers they were not alone. And speaking before regional news media and to workers directly, Warda assured all that the combined strength of the two federations was ready and willing to take this fight beyond central Asia if that was needed. 
 
The message underscored a resolve borne through several months of struggle, culminating in a series of April incidents, including grievous intimidation tricks (see prior ICEM report <a href="/en/78-ICEM-InBrief/3731-Miners-Metalworkers-Not-Intimidated-by-Georgian-Manganese-Managers">here</a>) by management that served only to bring more staff into the Metallurgical, Mining, and Chemical Workers&rsquo; fold. 
 
Initially in the 13 May negotiations, managers and their attorneys sought involvement of an existing but dying &ldquo;yellow&rdquo; union in the talks. But the seven union members of the joint, bilateral commission threatened to walk out and begin renewed strike actions. The union and GTUC representatives then showed managers a large number of power-of-attorney statements by workers that expressed their allegiance to the Metallurgical, Mining, and Chemical Workers&rsquo; Union. 

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Metallurgical, Mining, and Chemical Workers&rsquo; Union Members
Recognition was achieved. The numerous petitions that workers demand to improve their working lives were then open for discussion. Foremost among them were wages. In the hours leading up to the talks, the ICEM and IMF scrambled to gather and succeeded in delivering wage rates from associated ferroalloy plants in Ukraine, owned by the metals arm of PrivatBank. 
 
Miners at the Georgian Manganese complex are paid an average monthly wage of GEL (lari) 450, or US$238, &euro;192. Metalworkers at the ferroalloy plant in Zestafoni earn a monthly average of GEL 562, or US$298, &euro;240. With both sides having already agreed to 1 May as the effective date for salary adjustments, management proposed a 15% increase for shift workers and 8% for day workers. 
 
This is unsatisfactory to the union side of the commission. But they are confident that further negotiations on 17-18 May, and again on 20 May, will bring long overdue percentage increases higher. The union did get a commitment at the 13 May set of talks that the enterprises will begin to comply with Georgia labour law regarding sick leave payments, including retroactive compensation for those workers who have been denied such pay. 
 
&ldquo;It is a big step forward,&rdquo; said Gocha Aleksandria, Vice President of the GTUC, who is a member of the 14-member conciliation commission. &ldquo;The administration now accepts our union, but the hardest part is still ahead. We intend to achieve the obvious, meaningful, and tangible results for our members and that is permanent labour contracts that address all issues.&rdquo; 

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Some of those issues include raising the number of yearly paid leave days from 30 (metal) and 32 (mining) to 35; creation of a joint contributory pension fund to supplement a miserly state pension; better safety and health conditions; and an upgrade to medical facilities. 
 
Even prior to the first commission negotiations, on 7 May, management reacted to workers&rsquo; militancy and ICEM&rsquo;s mission statement of that week by agreeing to permanent work contracts, as well as reinstatement of two union leaders who were discharged for strike activities. (At the 13 May session, management agreed to pay the two their full April salaries.) 
 
Another accomplishment in the recent bargaining is that union leaders will bring their demands directly to Georgian shareholders of the enterprises. The complex ownership of the ferroalloy plant and manganese mines has stock ownership by privately-held Stemcor Holdings of the UK, with shares also traded publicly on the Georgian bourse with Georgia entrepreneurs and the Ukrainian oligarch Gennadiy Boholyubov and his manganese empire that is tied to PrivatBank holding vast sums. 
 
For now, the 3,600 miners and 2,200 metalworkers have a free and democratic union they can call their own &ndash; the Metallurgical, Mining, and Chemical Industry Workers&rsquo; Trade Union of Imereti Region. But as Aleksandria states, the journey now begins in earnest: erstwhile dialogue to gain the wage levels, benefits and work conditions that they justly deserve.

Recognition Realised for Georgian Miners, Metalworkers at Manganese Operations

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With the ashes from the global financial crisis still about us, the ICEM has joined with the 11 other Global Union Federations (GUFs), as well as the International Trade Union Confederation and the Trade Union Advisory Committee (TUAC) to the OECD in issuing a joint 1 May statement. That statement follows below. 
May Day 2010 
Jobs, Justice and Public Services &ndash; Getting the Economy to Work 
The Council of Global Unions, the voice of the global labour movement, has issued the following statement to mark May 1, 2010 
 
On today of all days, trade unionists around the world demand fresh steps to reform the global economy in favour of social justice, investment in jobs and fairness in society. This is no time for business as usual. 
 
Neo-liberal economists and reckless financial dealings have created a crisis that has put millions of people out of work and forced many more into precarious employment to survive. Social safety nets are being torn apart. Public spending that provides for cohesive communities is being savagely cut. 
 
With all of this in mind, Global Unions call on policymakers and democrats everywhere to support a new paradigm of recovery and social justice that will: 
 
&bull; Reassert in government at all levels the primacy of public interest over private gain and ensure that the protection of citizens&rsquo; rights is made a cornerstone of social and economic development; 
 
&bull; Defend the rights of workers and trade unions; 
 
&bull; Mobilise for the creation of sustainable, secure and good quality jobs for all workers, that allow workers and their families to live in dignity; 
 
&bull; Ensure that social justice is a central mission of government and take concrete measures to reduce income disparities and increase equality, in particular gender equality; 
 
&bull; Eliminate market abuse through short-term speculation and manipulation of financial markets by imposing binding and effective regulation; 
 
&bull; Promote sustainable development with job-centred policies, effective social protections and reversal of global warming and environmental degradation; 
 
&bull; Renew commitment to public service values in society and enhance the contribution of quality public services to fairer and more efficient societies, and to finance these services through progressive systems of taxation that provide sufficient resources while improving social equity; 
 
&bull; Commit to education for all and provide resources needed to achieve the enrichment of society that comes from high quality education and training; 
 
&bull; Improve the quality of people&rsquo;s lives by providing universal access to health care and other vital social welfare services, as well as such fundamental issues as clean water and adequate nutrition, and breathing new life into efforts to achieve the UN Millennium Development Goals. 
 
May Day 2010 is a moment to change course, to meet the aspirations of workers and communities for a new beginning, to put to flight self-serving politics and corporate greed, and, above all, to build a new solidarity in society in support of people-centred values that will enrich the lives of all. 
 
 
The PDF of the statement can be found <a href="http://www.world-psi.org/Template.cfm?Section=Home&amp;CONTENTFILEID=29028&amp;TEMPLATE=/ContentManagement/ContentDisplay.cfm">here</a>.

Global Labour’s Joint 1 May Statement

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A relentless, two-year campaign by ICEM US affiliate, the Utility Workers Union of America (UWUA), against Covanta gave 140 workers in the state of Massachusetts their first labour agreement last week. The collective agreement, actually two contracts with one giving workers huge retroactive backpay and bonus awards, punctuates a capitulation by the American waste-to-energy company in resisting full workers&rsquo; rights following a successful organizing drive. 
 
That recruitment drive by UWUA Local 369 at an incinerator in Rochester, Massachusetts, that burns solid waste for conversion to electricity occurred in May 2008. Following the union vote, conducted by the US labour board, Covanta did what so many American companies do following union certification; engage in &ldquo;surface bargaining,&rdquo; never intending to reach a first labour agreement, and they punish workers for voting union by withholding scheduled pay gains.
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Under US labour statute, after a one-year period has elapsed from the certification vote, workers have an option to de-authorise the union as bargaining representative. 
 
But at Covanta in Massachusetts, the UWUA would have none of it. The Washington, DC-based union began an unyielding campaign that blocked the publicly-traded Covanta from expanding its waste-to-energy business into Canada, Ireland, the UK, and the Netherlands. That meant engaging trade unions, civic organizations, and environmental groups as Covanta sought to gain municipal contracts to collect trash and the necessary permits to built incinerations in those countries in order to sell power to electric grids. 
 
UWUA impeded Covanta both at home and abroad by highlighting the company&rsquo;s negligent health and safety ledger, its environmental record, and its appalling labour relations conduct, which included serious and malicious breaches of US labour law (see earlier ICEM dispatches <a href="/en/78-ICEM-InBrief/3694-UWUA-Wins-US$1-Million-Judgment-for-Covanta-Workers-">here</a>, <a href="/en/78-ICEM-InBrief/3532-US-Labour-Board-Issues-Stern-Injunctive-Relief-against-Covanta">here</a>, and <a href="/en/78-ICEM-InBrief/3039-Covanta-Energy-Violates-US-Labour-Law">here</a>).&nbsp; 
 
The end result was a three-year collective agreement, plus a separate contract granting workers sizeable backpay and bonus payments that had been withheld. Local 369 members at Covanta&rsquo;s SEMASS facility voted to accept the pair of agreements by a wide margin on 22 April. The pay and other gains are exceptional, and the working agreement now in place contains the best features of US union contracts. 
 
The backdated bonus and pay accord gives the 140 workers a retroactive wage increase of 3% to early 2009; an incentive bonus of 8.1% of total wages for 2008; an annual wage increases backdated to 1 January 2010 of 2.7%; and a further missed incentive bonus of 4.85% of total wages for 2009. Added up, these retroactive gains average US$17,000 per worker. 
 
And on top of that, comes the three-year pay, bonus, and other union protection items took effect 14 April 2010. That includes a 2.8% increase each year, a ratification bonus of US$1,250 per worker, additional incentive bonuses of up to 7% in each year of the contract, as well as new safety and health protections, including a medical surveillance programme to monitor workers&rsquo; blood levels from handling hazardous materials, and limits on sub-contracting.
<img alt="" src="" width="200" height="133" />
UWUA President D. Michael Langford&nbsp;
The ICEM considers UWUA&rsquo;s campaign and the end result of the Local 369-Covanta contract exemplary and an inspiring example inside America on how best to fight a recalcitrant employer attempting to deny its employees their lawful rights. In congratulating UWUA President D. Michael Langford, General Secretary Manfred Warda termed the initial labour agreement an excellent one that &ldquo;all UWUA members &ndash; in fact, all union members in America &ndash; can be justly proud of.&rdquo; (See the full letter <a href="/wp-content/migration/icem/33%20Letter%20to%20UWUA%20Presiden%20-%20Michael%20Langford.pdf">here</a>.) 
 
In a joint release issued by UWUA Local 369 and Covanta, Local 369 President Gary Sullivan stated, &ldquo;Our UWUA Bargaining Committee has done an outstanding job pressing for a fair and just contract. We are hopeful this is the first step to a productive relationship with Covanta.&rdquo;

US Affiliate UWUA Achieves Exceptional First Contract with Covanta

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A week of industrial actions against AngloGold Ashanti by miners aligned with ICEM affiliate Ghana Mineworkers&rsquo; Union (GMWU) was avoided late last month when the union and company came to a Memorandum of Understanding that settles a three-year dispute over an Employee Share Ownership Plan (ESOP). 
 
The dispute dates back to November 2006, when Ashanti Goldfields fully merged with South Africa-based AngloGold. Then, GMWU proposed an ESOP for Ashanti staff at the Obuasi and Iduapriem gold mines who did not receive a US$1,000 &ldquo;goodwill package&rdquo; at the time of the merger. 

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AngloGold refused to take up the proposal, resulting in a two-and-a-year stalemate. In October 2008, the two sides resumed talks on the ESOP with GMWU giving the negotiations process six months to produce an ESOP. By 24 April, when Ghana management of the mining house still would not move toward ESOP parity for the Ghana miners with their South Africa counterparts, GMWU issued a press release calling it &ldquo;morally wrong for AngloGold Ashanti to discriminate in its employee relations,&rdquo; and stating a week of protests would result. 
 
But on 28 April, the two sides, meeting in Accra, agreed to an ESOP called for the 5,000 affected miners to receive 20 shares each of AngloGold stock, to be paid across four years in five-share increments. The first such award was made in May 2009. 
 
In a joint statement, GMWU General Secretary Prince William Ankrah and company Vice President for Ghana, Keith Faulkner, said: &ldquo;We are very pleased that this matter has been finalised. We see it as an important further step towards improved cooperation between the company and the union which we are convinced will advance the interests of both the company&rsquo;s employees and its shareholders.&rdquo;

ESOP Accord reached Between Ghana Mineworkers and AngloGold, Averting Industrial Actions

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Six miners are likely dead following a roof collapse at the Novodzerzhynska coal mine in Dzerzhynsk, Donetsk region, on 4 May. In a release issued by the Ukrainian Trade Union Federation, ICEM-affiliated Coal Mining Industry Workers&rsquo; Union (PRUPU) President Viktor Turmanov said the disaster was likely &ldquo;caused by gross safety violations&rdquo; due to the shift of rock underground. 
 
Three mines died instantly, while three others were rescued after nearly three days underground. The remaining three miners are unaccounted for and their exact underground location was still unknown as of last week. Fourteen miners were working inside the mine at the time of the collapse, with five able to immediately escape. 

<img src="" width="115" height="115" alt="" />
Turmanov said the search would continue this week, with restoration of the roof needed to carry on with a possible rescue attempt. But after two weeks, it is unlikely the three miners will be found alive. It the area where the roof collapsed, some 250 square metres of rubble accumulated. The tragedy happened 58 metres underground. 
 
Turmanov and PRUPU were instrumental in the days following the deaths in getting Ukraine&rsquo;s Cabinet of Ministers to set aside a large sum of money for better safety conditions at the Novodzerzhynska mine, which included compensation to the mining victims&rsquo; families. 
 
The mine in eastern Ukraine mine was reorganised last year and became a state enterprise connected to the Coal Industry Ministry of Ukraine.

Mine Deaths in Donetsk Region, Ukraine, Raises PRUPU Safety Call

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The ICEM took part in the 21st International Mining Conference of Turkey, sponsored by the Turkish Chamber of Mining Engineers. The ICEM&rsquo;s campaign for ILO Convention 176, the Safety and Health in Mines Convention, was continued there. The ICEM, the ILO, and Turkish mining affiliates met in Ankara during the first week of May, resulting in commitments from the unions to work towards ratification. 
 
The ICEM&rsquo;s mining programme established mechanisms for mining unions in Turkey to exchange successful strategies to combat the global financial crisis. Significant examples come from ICEM mining affiliates in Africa, where different forms of nationalisation and state mining enterprise are emerging to block mass job losses. The ICEM also showcased actions by African mining unions to head off efforts by employers in taking advantage of the financial crisis. 

<img alt="" src="" width="120" height="120" />
In other news, trade unionists in Istanbul carried out an historic May Day by ending a march in the city&rsquo;s Taksin Square. Workers&rsquo; had been banned from holding May Day rallies there by the military in 1980, and that ban was only lifted in the days before 2009&rsquo;s May Day celebration. Taksin Square is the site of the so-called &ldquo;Bloody May 1&rdquo; of 1977, in which 36 trade unionists were killed. It is significant to Turkish unions, standing as the symbol for the right to assemble and for free speech. 
 
In Turkey, 1 May this year was a public holiday for the first time, following a successful campaign of pressure by trade unions.

ICEM Campaign for ILO 176 Continues in Turkey

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The German social-democratic organisation, the Friedrich Ebert Foundation (FES), released a briefing paper entitled &ldquo;Comeback of Global Governance,&rdquo; outlining the need for reform of mechanisms for global political and monetary governance. The current financial crisis is seen by many as the opportunity to reform global financial bodies, which fail both in terms of representation and of effectiveness. 
 
The past year has seen a list of failures in terms of global governance, from the Doha round of world trade talks to follow-up of the Monterrey Financing for Development Conference. Even the preliminary rounds of discussion at Posnan, Poland, environment and sustainability forums have illustrated significant obstacles in commitments over combating climate change. 
 
Arguably the most vital changes needed are inside the International Monetary Fund (IMF), whose failings have become all too apparent during this current global recession. The current financial crisis is a clear indication of how urgently an effective global regulatory framework is needed in order to come to grips with the present crisis and to contain future excesses. The days of the World Bank and IMF governing the world on a neo-liberal agenda now must end. 
 
The IMF&rsquo;s system of quotas and voting rights gives European countries an imbalanced amount of power that is no longer justified by their order in the world economy. Despite the limited voting-rights reform carried out in March 2008, the Benelux countries, for example, continue to have a higher quota than China. The reforms to the IMF that are on the agenda will go some way towards creating a fairer system, although they do not go far enough in &lsquo;giving a voice to the voiceless.&rsquo; 
 
The current economic climate offers many alternatives for change. US President Barack Obama seeks to establish a new disarmament and non-proliferation treaty. German Chancellor Angela Merkel calls for a world economic council. French President Nicolas Sarkozy and British Prime Minister Gordon Brown advocate an international banking oversight commission. Germany and France, together with Russia and Brazil, promote a new global economic and financial architecture that has a special focus on regulating financial markets. 
 
Find the FES briefing paper <a href="http://library.fes.de/pdf-files/iez/global/06319.pdf ">here</a>.

International Labour Calls for Reform of the Structures of Global Governance

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