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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

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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.
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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

The Zambian Labour and Social Security Minister, Austin Liato, has publically criticised some employers for using temporary workers to fill traditionally permanent positions simply to evade paying statutory employment benefits to workers. Speaking at the opening ceremony of the Mineworkers Union of Zambia&rsquo;s (MUZ) 12th quadrennial conference on 27 April, Mr. Liato said this trend is found not only in the mining industry but other sectors as well. 
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MP Austin Liato
Mr. Liato said that despite the Government&rsquo;s commitment to halt the casualisation of employment, the situation has not improved. &quot;The Government has always led a campaign against casualisation. This state of affairs can't be allowed to continue and I urge labour leaders to be vigilant. We should not turn permanent jobs to temporary jobs,&quot; he said.

Zambia’s Labour Minister Decries Labour Casualisation at MUZ Conference

In occupational health and safety, accidents are best described as the results of failures in those systems that ought to keep workers safe. These can include choices of materials, tools, equipment, processes; the design of specific tasks or the work process; level and competence of supervisory control; workplace environment including noise, dust, fumes, heat, cold, and conditions of floors, surfaces, lighting; and the characteristics of workers themselves, including experience, skills, training, and other human factors. 
 
When one or more of these systems fails, an accident can occur. Was an inappropriate tool provided? Was the task poorly designed to begin with? Were supervisors absent or negligent? Was the workplace environment inhospitable? Did the workers have the appropriate skills and capabilities to do the work safely? Systems failures that expose workers to hazards must be corrected at the source, with personal protective equipment used only where elimination at the source is not possible or practical. 
 
Unions demand three fundamental rights for workplace health and safety: the right to know about the hazards of the work; the right to participate in health and safety systems, and the right to refuse unsafe work. 
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The systems above are far more likely to be weak or absent entirely for Contract and Agency Labour (CAL) workers. The hazards they face are less likely to be corrected at the source, and more likely to be dealt with by providing personal protective equipment - if even this is provided. Finally, contract and agency workers are in a weak position to demand any of their three basic occupational health and safety rights, without the risk of losing their job. 
 
The vulnerability of CAL workers is reflected in accident statistics. Last year in Belgium, agency workers were twice as likely as permanent workers to suffer a workplace accident. The ICEM&rsquo;s Peruvian mining affiliate, FNTMMSP, reported that 49 miners died in the first nine months of 2009, 37 of whom were working for subcontracting companies. In Turkey, thousands of young migrants who work in jeans factories are likely to develop silicosis, following exposure to high levels of silica during the denim sandblasting process. Forty-four workers have already died this year and 550 have so far been diagnosed with the disease. 
 
Unions and decent work make work safer. Insecure contract and agency labour can and does injure workers.

Job Vulnerability Puts Health of Temp Workers at Risk

The International Textile, Garment, and Leather Workers&rsquo; Federation (ITGLWF) has conducted a survey of how Contract and Agency Labour (CAL) is affecting workers and unions, and what steps are being taken to deal with the issue. Forty-eight ITGLWF affiliates completed the online survey, which was conducted with the assistance of the ICEM&rsquo;s CAL project. 
 
The results of the survey overwhelmingly indicate that CAL is an increasing problem in the textile, garment, and leather sectors, with 69% of affiliates who responded saying that the share of short-term and agency labour work in their sector and country increasing over the past year. A full 37% said that CAL had increased by 16% or more. Some 26% of respondents said that the share of CAL has decreased. 
 
In parallel with affiliates of the Global Union Federations ICEM and the International Metalworkers&rsquo; Federation (IMF), who conducted similar surveys earlier in the year, ITGLWF affiliates indicate that CAL workers receive significantly lower wages than permanent, direct-employed workers. Over 66% of those who replied said that wages paid to CAL workers are less than those paid to permanent workers, and 21% said that CAL workers&rsquo; wages are less than half those of regular workers. Some 41% of those who responded indicated that the wages and benefits gap between permanent, direct- employed workers and CAL workers had increased as a direct result of the global economic crisis. 
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The survey results make clear that employers evade their obligations to CAL workers in various ways with non-payment of overtime, denial of maternity and family leave, and denial of vacation and holiday leave being the most common forms of abuse. Some 18% of the total responding said that CAL workers are denied access to social security and pensions, and 15% said that the biggest way employers evade their obligations centres on occupational health and safety. 
 
There is a substantial difference in the number of CAL workers that ITGLWF affiliates represent. Fifty-two percent of affiliates indicated that CAL workers make up between 0 and 5% of their membership, while 19% say that CAL workers made up more that 31% of their membership. Almost one quarter of affiliates said that they had organised more CAL workers in the last year, while 17% said they had lost CAL members. The survey asked affiliates what were the obstacles to organising more CAL workers, and the results clearly demonstrate that the biggest obstacle to CAL workers joining a trade union is fear of dismissal or discrimination. Twenty-three percent of affiliates responding say that government legislation was a barrier to organising CAL workers in their country. 
 
ITGLWF affiliates are including CAL issues in their collective bargaining agendas. The four most common CAL-related bargaining objectives were to guarantee equal pay for similar work, to ensure non discrimination and realisation of trade union rights, and to convert precarious jobs into permanent jobs. 
 
In response to the fact that there is an increasing trend towards indirect and insecure forms of employment, 43% of affiliates indicated that they are currently taking action to ensure that new jobs created in the sector are filled by permanent workers with direct employment relationships. 
 
More details on the results of the ITGLWF CAL Survey are available <a href="http://www.itglwf.org/lang/en/documents/CALSurveyresultsITGLWF.pdf">here</a>.

ITGLWF Survey: Garment Sector Experiences Big Increase in Short-term, Agency Work

Following the start up seminar of the ICEM Contract and Agency Labour (CAL) project in Dakar, Senegal, in March 2009, the Industrial Workers' Union of Senegal (SUTIDS), conscious of the issue and consequences on workers and their organisation, started a media campaign through the major outlet channels of the country. 
 
The union did this through the two biggest television channels of Senegal and the West African region. 
 
Statements made by the general secretary of SUTIDS, those of the ICEM/CAL Project Coordinator for Sub-Saharan Africa, and a representative of the Minister of Labour were broadcast and commented on in most of the languages in Senegal (Ouolof, French, Toucouleur, S&eacute;r&egrave;re and English). 
<img alt="" src="" width="250" height="115" />
The conclusions of the seminar were also sent to the Office of the President of the Republic, the Prime Minister&rsquo;s Office, the National Assembly, the Senate, the National Labour Advisory Commission, the Ministry of Labour, and the ILO. 
 
When the General Secretary of SUTIDS met the Prime Minister of Senegal, he had the opportunity to raise the issue of outsourcing and interim employment, making the country&rsquo;s leader aware of the sensitive nature of the issue. The Prime Minister requested to see all of the reports of the ICEM/CAL seminar held in March 2009. 
 
SUTIDS therefore organised a media and advocacy campaign among the highest state authorities of Senegal. 
 
These actions contributed to the adoption and promulgation by the President of the Republic of Senegal of Law No. 2009- 1412 on Private Recruitment Agencies and Casual Employment.

Origins of a New CAL Law: ICEM Work in Senegal

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In August, this Contract and Agency Labour newsletter reported that the Supreme Court of Korea had issued a groundbreaking ruling that in-house subcontract workers employed for two years at Hyundai Motor in Ulsan, South Gyeongsang province, must be made permanent employees. 
 
On 12 November, a similar ruling was made, this time by the Seoul High Court. This case was brought by seven former subcontract workers at the Asan Plant of Hyundai Motor. In line with the Supreme Court decision, the ruling states that in-house subcontractors&rsquo; employees, who worked continuously for two or more years, should be treated as the employees of the user enterprise. 
 
The Seoul High Court ruling is particularly significant as it has broad coverage over several production departments at the plant. 
<img alt="" src="" width="180" height="83" />
Shortly after the Korean Supreme Court ruling on 22 July, the Korean Metal Workers' Union (KMWU), asked Hyundai to conduct collective bargaining with the union over direct employment for the subcontract workers. But Hyundai Motor refused, stating that it would appeal the Supreme Court decision. 
 
On 4 November, KMWU filed a lawsuit against Hyundai demanding that a total of 1,900 in-house subcontractors with service of two or more years should be made full-time Hyundai workers, moved into regular jobs, and compensated for lost wages. (On average, contract workers at Hyundai earn 50 to 60% less than that of direct employees.) 
 
On 5 November, KMWU submitted an application for mediation of an industrial dispute over collective bargaining with Hyundai Motor to the National Labor Relations Commission. 
 
The Supreme Court&rsquo;s ruling, and Hyundai&rsquo;s intransigence in elevating subcontract workers to permanent status, has spurred workers to dramatically disrupt production at the Ulsan city factory in continuous sit-in strikes that began on 15 November. (See the ICEM CAL newsletter article on the Hyundai strike <a href="/index.php?id=73&amp;la=EN&amp;doc=4148">here</a>.)

Seoul Court Rules Subcontract Workers Full-time after Two Years

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