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Australian union members of three trade union organisations are livid with the announcement that BlueScope Steel will lop 1,400 jobs in New South Wales and Victoria. Members of the Australian Manufacturing Workers&rsquo; Union (AMWU), the Australian Workers Union (AWU), and the Electrical Trades Union of the Communications, Electrical and Plumbing Union (ETU-CEPU) met in Wollongong on 25 August and sternly moved to resist all restructuring until further labour-management consultations can occur. 
 
Today in Canberra, the unions met with Prime Minister Julia Gillard and urged her Labour Government to launch an inquiry into Australia&rsquo;s manufacturing crisis. 
 
BlueScope, formed in 2002 when BHP Steel was spun off in the BHP and Billiton merger, announced on 22 August that it was shedding nearly half of its Port Kembla Steelworks staff of 3,100 and another 200 jobs at a hot-strip steel mill in Hastings, Victoria. 
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AMWU&rsquo;s Dave Oliver (left), AWU&rsquo;s Paul Howes, ETU National Secretary Peter Tighe (right) at Port Kembla Steelworks, 22 August
Photo: Illawarra Mercury
Last Thursday&rsquo;s heated union meeting came when workers also learned that senior managers of the troubled company are awarding themselves A$3.05 million in bonuses, including A$721,000 for CEO Paul O&rsquo;Malley. The company recently posted an operating loss of A$118 million plus an asset write-down of A$900 million, mainly from a rising Australian dollar, high raw material costs, and depressed order books. 
 
The BlueScope job cuts come at a time when booming Australian resource exports are driving up currency exchange rates to the detriment of Australia goods and product manufacturing. BlueScope is chopping 1,200 full-time and contract labour jobs by idling a blast furnace, coking battery, slab caster, and oxygen-based steelmaking vessel at Port Kembla south of Sydney, and the 200 steel-rolling jobs on Victoria&rsquo;s Mornington Peninsula. 
 
Speaking at Port Kembla the day BlueScope made the announcement, AMWU National Secretary Dave Oliver said, &ldquo;The benefits of the mining boom come with very big downsides and 1,400 families have learnt today the hard way about the downsides. &ldquo;Today is a massive wake-up call for to state and federal governments to take more action on this issue.&rdquo; 
 
In news interview yesterday, 28 August, before today&rsquo;s meeting with Gillard, Oliver said the federal government must take immediate action to bolster manufacturing. &ldquo;I don&rsquo;t think it&rsquo;s acceptable that 90% of the gear that goes into a resource project is imported from overseas,&rdquo; he said. 
 
AWU National Secretary Paul Howes called on the federal government and the Reserve Bank Australia (RBA) also to kick into action. Howes said the Labour government must impose &ldquo;robust&rdquo; anti-dumping measures, pressure China to stop currency manipulation of the Yuan, and he called on the RBA to lower interest rates in order to promote Australian manufacturing. 
 
&ldquo;We&rsquo;ve got to face the reality of the manufacturing crisis that&rsquo;s before us,&rdquo; said Howes. &ldquo;We can&rsquo;t accept job losses as the norm and we can&rsquo;t rely on imported goods in our strategic sectors.&rdquo; 
 
The announcement of BlueScope&rsquo;s job losses in Australia last week came a week after steelworkers, members of New Zealand&rsquo;s Engineering, Printing and Manufacturing Union (EPMU), downed tools for 24 hours in a protest over outsourcing at New Zealand Steel, a wholly owned subsidiary of BlueScope. Over 850 EPMU members engaged in the industrial action on 15 August at a steel roll mill at Glenbrook, south of Auckland, and at company iron mines at Waikato North Head and Taharoa.

BlueScope Steel Sackings Reveal Crisis in Australian Manufacturing

Special Newsletter: Developments in the Global Contract and Agency Labour Project

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Following an international solidarity campaign, Nike has agreed to pay US$1.5 million to a relief fund for the former employees of two of its Honduran suppliers, Hugger de Honduras and Vision Tex, which closed plants in the Central American country without notice and without paying workers any of the legally-mandated severance payments due them. 
 
Both factories closed in mid-January 2009, without severance payments to approximately 1,800 workers and estimated to total some US$2 million. In addition, Visions Tex failed to pay monies it had committed to paying in December 2008 following a strike, which included the legal entitlement to an annual bonus. The closure occurred just after the formation of a union at the factory. 
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The union representing the workers, the Central General de Trabajadores de Honduras (CGT), the Worker Rights Consortium and the Solidarity Center of the US will jointly oversee the administration of the fund. According to a joint press release by Nike and the CGT, workers will also receive a year&rsquo;s access to the health care system, training, and priority hiring. 
 
This groundbreaking agreement represents a significant step forward in the corporate social responsibility debate, with a major multinational company recognising that it must ensure decent working conditions, and the application of national legislation and international labour standards, for all those from whose labour it profits.

Nike Takes Responsibility for Employer’s Anti-Social Actions

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In February 2005, Mr. Choi, a worker at a subcontracting company of the Ulsan factory of the Hyundai Motors in South Korea, was dismissed for carrying out trade union activities. Mr. Choi had been employed by the subcontractor and stationed at the Ulsan factory since March 2002. 
 
When he was dismissed Mr. Choi, filed an application for remedy to the Labour Relations Commission (LRC) in an administrative lawsuit, claiming that it was an unfair dismissal and that Hyundai Motors, not the subcontracting company, was his real employer. 
 
On 22 July 2010, the Korean Supreme Court ruled that Mr. Choi was an illegal dispatch worker and determined that he, in fact, became a direct employee of Hyundai the day after working two consecutive years. 
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The High Court wrote, &ldquo;Mr. Choi was under the direct human resource (HR) management by the Hyundai Motors after being employed by one of its subcontracting companies. So, it will be assumed that he was a dispatch worker to the Hyundai Motors. Under the Act on the Protection of Dispatch Workers, etc. (Dispatch Worker Act), he should be regarded as a worker employed by the Hyundai Motors from the day after he has worked more than two consecutive years.&rdquo; 
 
Welcoming the groundbreaking ruling, the Korean Metal Workers&rsquo; Federation declared, &ldquo;The ruling puts a brake on discrimination and extortion by employers for non-regular workers. We will request all the employers hiring in-house subcontracted workers including the Hyundai Motors a special round of collective bargaining and also proceed with a series of class action lawsuits gathering dismissed workers, retirees, etc.&rdquo; 
 
The International Metalworkers Federation (IMF) covered this story on 29 July and it can be found <a href="http://www.imfmetal.org/index.cfm?id=622&amp;l=2&amp;cid=23679">here</a>.

Groundbreaking Korean High Court Rule Contract Worker is Worker of Primary Company

Bayo is the General Secretary of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
How Prevalent is Contract and Agency Labour and Casualisation in Nigeria? 
 
CAL is increasing and alarmingly taking over Nigeria&rsquo;s Oil and Gas industries. It encompasses various dimensions of precarious work and the worst forms of employment. CAL gives room for unfair labour practices that are repugnant to decent work principles. About 60% of our workforce is now composed of contract and agency workers. Standard, permanent employment is declining. 
 
Is the Issue of Casualisation and Temporary Work Practices a Bigger Problem than it was Before? 
 
The issue is a bigger problem in the Nigeria Oil and Gas Sector now than it was before due to the fact that employers and the government&rsquo;s standpoint is that CAL is now a reality that cannot be wished away. This leaves trade unions with no other option than to tackle the adverse effects of CAL, which are: 
 
&bull; Use of this work practice to replace direct and permanent employment; 
&bull; To adversely change employment forms and conditions, to avoid social responsibilities and obligations which employers circumvent through gaps and inadequacies in our extant laws; 
&bull; To weaken trade union membership, solidarity and relevance, and to prevent union organising and recognition of the collective bargaining principle; 
&bull; It widens the exploitation gaps particularly by user enterprises who prefer to minimise cost and increase profit, at the expense and detriment of labour; 
&bull; It increases workplace discrimination and inequitable terms and conditions of employment; 
&bull; It seriously challenges trade union ability to protect job security; 
&bull; There are conflicts in the definition of employment relationships and the obligations of user enterprises, particularly where laws and employment regulatory agencies do not clarify these issues; 
&bull; And an underlying factor, casualisation and temporary work is a growing phenomenon due to the unemployment situation. Employers are exploiting workers&rsquo; desperation for a means of subsistence for their own profit mongering. 
 
 
What are Differences in Nigeria Regarding Working Conditions Between CAL Workers and Permanent Workers? 
 
Number one, casual and temporary workers are subjected to conditions that are not in accord with the general work conditions in the Oil and Gas Sector. Where CAL workers are lucky and are allowed to organise and bargain collectively, the mandate for negotiation of a collective bargaining agreement is seriously curtailed by the contracts between the contractors and agencies on the one side and by the primary enterprise on the other side. 
 
In addition, these workers are subject to limited or no provisions for basic welfare, pensions and social security, health, safety, security and environmental protection, and other stipulated core ILO conventions. And to cite just one small example, Global Framework Agreements that are signed with Global Union Federations, where functional, are not usually made available and applicable to contract and agency workers. 
 
Any set of negotiations in Nigeria that involves a collective agreement for these workers is prone to grievances, disputes, threats, resistance, and action from labour unions, contractors and agencies, and user enterprises. 
 
What are the Main Ways in which Trade Unions are Supporting Casual and Contract and Agency Labour Workers? 
 
It has become a priority to use union resources and machineries to mobilise support and confront the overall denial that contract and agency workers&rsquo; rights have not right to organise and bargain collectively. We are doing this through increases levels of sensitisation through mobilisations, campaigns, solidarity actions, protests, rallies, pickets, strikes, media work, mediation, conciliation, arbitration, and litigation. 
 
We now have the task of entrenching the more effective and protective organising and collective bargaining strategies for contract and agency workers, with financial and organisation support from our union&rsquo;s Union Solidarity Reserve fund, from organisations like the ICEM, Friedrich-Ebert Foundation of Germany, and the US Solidarity Center. 
 
We are constantly implementing union resolutions, directives, and decisions in the area of campaigns, lobbying, engagements, and advocacy for contract and agency workers&rsquo; issues. 
 
Which Ways Do You Feel the ICEM&rsquo;s Global Campaign on CAL can be Helpful and Most Effective in Confronting the Challenges of CAL in Nigeria&rsquo;s Oil and Gas Sector? 
 
The Global CAL Campaign of the ICEM must use donors&rsquo; resources and mechanisms to mobilise support and confront resistance to full rights of contract and agency workers to organise and bargain collectively. The ICEM must increase awareness of the CAL situation, by all possible means, and it must effectively implement the Campaign through communication, engagement and evaluation, and correcting deviations/gaps in the global campaign strategies. 
PENGASSAN&rsquo;s best hope is that the ICEM will carry out advocacy and lobbying for fair labour policies and laws which are favourable to contract and agency workers, as to campaign for best practices in dealing with employment and working conditions issues relating to this most serious issue.

Interview: Bayo Olowoshile, PENGASSAN General Secretary

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Last Spring, trade unions of the Netherlands and the Dutch Association of Temporary Work Agencies, Algemene Bond Uitzendondernemingen (ABU), agreed to an across-the-board 1% wage increase for all temporary workers in the country. 
 
An increase of 0.5% took effect on 5 July and a further 0.5% increase will be awarded on 3 January 2011. The 1% wage increase granted to the employees was based on the average of increases taken from a selection of 30 collective agreements in other sectors. 
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Marcel Nuyten, Director Temp Workers, FNV Bondgenoten
The agreement was reached between the ABU, the ICEM-affiliated FNV Bondgenoten and CNV Dienstenbond, the executives&rsquo; union, and LBV, an independent union. An agreement was also reached whereby wages may be increased every year on 1 July, amending the Collective Employment Agreement for Temporary Employees 2009 &ndash; 2014. 
 
The Collective Employment Agreement, which can be found <a href="http://www.abu.nl/abu2/?fileid=14231">here</a>, stipulates conditions which must apply to temporary agency workers, including the relationships between the worker, agency, and user enterprise; training entitlement; and the conditions under which temporary employment contracts may be terminated.

Dutch Unions Get Wage Increase with Employers’ Federation for Agency Workers

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While European trade unions on 29 September will manifest against government austerity programmes, German trade unions will use that day &ndash; and, and in fact, all of September and throughout the autumn &ndash; to oppose not only public-sector cuts but equally to vehemently condemn the ugly social dumping caused by the boom in temporary work. 
 
This stems from the DGB Congress last May, where the Congress made it a priority to campaign for equal pay, equal rights, and fixed probation periods before the exploited workers of the temporary sector are made permanent employees. Since that Congress, German unions have ramped up the political heat so much that the Christian-Democratic (CDU) Minister of Labour and Social Affairs, Ursula von der Leyen, has introduced a partial remedy in legislation that does address the downward spiral of wages brought on by more and more workers forced into temporary employment. 

But the legislation does not go far enough. 
 
Many of the major trade union affiliates of DGB, including IGBCE, IG Metall, and Ver.di, will emphasise this point in upcoming manifestations. The unions are also taking the issue into workplaces, both inside collective bargaining processes and at plant-gates in the form of protests. This month, IG Metall has introduced the &ldquo;equal pay for equal work&rdquo; principle in sector-wide negotiations in three German states. 
<img alt="" src="" width="202" height="101" />
DGB's Micheal Sommer
DGB President Michael Sommer said in the 6 September edition of newspaper Handelsblatt that German union members will abide by national laws prohibiting strikes over political issues, but &ldquo;workplace meetings and actions at plant gates&rdquo; to highlight temporary work as an abhorrent austerity measure in countering the financial crisis will occur. Sommer said this issue will also be heard loud and clear inside German work partnership structures as well. 
 
Von der Leyen&rsquo;s proposed legislation is called the &ldquo;Schlecker&rdquo; bill in reference to the large drug store chain that tried to sack all full-time workers and then re-hire them as contract employees at half their previous salaries. It would require &ldquo;equal pay for equal work&rdquo; to prevent wage dumping such as at Schlecker, with a fine of &euro;25,000 to offending businesses. 
 
But the legislation would fail to reverse the up-surge in temporary work because employers could still use short-term workers so long as they made equal payment for equal work. &ldquo;Schlecker&rdquo; also does not establish a time limit on when a temp worker must be made permanent, and it also does not include a set minimum wage for temporary workers, something that is a priority on the agenda of DGB and German unions. 
 
On average, temporary sector workers in Germany earn 30% less that full-time, permanent staff, DGB-affiliated unions have found.

Equal Rights for Temp Workers Becomes ‘Hot-Button’ in Germany

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Despite two full days of bargaining between ICEM affiliate, the National Union of Metalworkers of South Africa (NUMSA), and the New Tyre Manufacturing Employers&rsquo; Industry Association (NTMEIA) on 16-17 September, no accord was reached to end the three-week old strike. Some 6,000 rubber workers have been on strike at six tyre factories operated by four employers since 29 August. 
 
Today in Port Elizabeth, 4,000 NUMSA members from tyre plants in the Eastern Cape will march in protest of rapt division among employers in this year&rsquo;s wage talks. They will present a petition to management at the plant gates of Bridgestone-Firestone in Port Elizabeth this afternoon.
In last week&rsquo;s talks guided by an independent mediator in Port Elizabeth, management of the Japanese-based company continued to deviate widely from the wage offers put forth by other tyre companies associated with the NTMEIA. While Continental, Goodyear, and Apollo-Dunlop of India placed on the table a three-year package containing wage increases of 9%, 7.5%, and 7.5%, Bridgestone-Firestone&rsquo;s offer was 7%, 5%, and 5%. 
 
Rubber workers of NUMSA are willing to accept a three-year pact, but their wage expectations are 9% in each of the three years. In addition, they seek a modernized wage module that will lift the salaries of workers who have been stuck at minimum levels for as long as 10 to 15 years. 
 
Another key issue at the bargaining table revolves around the use of labour brokers. Although the NTMEIA will not agree to a ban, it has conceded to pay contributions for short-term and temporary workers into the Provident Fund, as well as make retirement and medical payments for them. The South African tyre industry employs about 1,000 such workers.
<img alt="" src="" width="189" height="128" />
Also last week in South Africa, 70,000 NUMSA members across the country returned to their jobs at fuel retail outlets and auto component shops. On 14 September, NUMSA convened a special National Executive Committee meeting, where eight of nine regional structures of the union agreed to accept terms of the Retail Industry Motor Association and the Fuel Retailers&rsquo; Association, ending strikes that began on 1 September. 
 
The three-year contract for filling station attendants includes wage gains of 10%, 9%, and 8%, while auto-parts workers will receive 9%, 8%, and 8%. NUMSA did achieve a solid breakthrough regarding labour brokers, particularly in these sectors in which several employers are totally reliant on staff provided by outside hire firms. 
 
The agreement calls for all labour brokers to be registered by one of two certifying agencies, and all staff of labour brokers must receive minimum rates of pay inside the two industries as well as getting the same benefits and condition of employment. In addition, the negotiated settlement calls for the gradual phase-out of labour brokers, with a cut to 35% of current levels by the year 2013.

South African Tyre Strike Continues; Mass March Slated Today Against Bridgestone

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Coal-mining unions from Germany, Hungary, Poland, and Spain agreed last week in unity to ask the European Commission to extend its deadline for the elimination of state subsidies on the production of coal. Last spring, the Commission moved to eliminate completely any Member State from granting coal subsidies to coal-fired generating plants after 31 December 2010, but that was amended slightly in July to give a very limited extension of certain subsidies until 2014. 
 
German union IGBCE last week conducted a unity tour together with Works Council leaders of the country&rsquo;s coal producer, RAG, to Hungary, Poland, and Spain. What they found was undivided consensus that the sudden curtailment of state subsidies at year end will create social conflicts, much like what is now occurring in Spain.
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Hungarian Mining &amp; Energy Union, BDSZ&nbsp;
 
The trade unions of the coal-producing countries, IGBCE, NSZZ Solidarność of Poland, the Mining and Energy Workers&rsquo; Union BDSZ of Hungary, and mining and energy unions of both Spanish federations, UGT and CC.OO, pledged to work through their respective governments to change the Commission&rsquo;s current policy. 
 
&ldquo;The regulation proposal helps neither the coal-producing countries of Germany, Poland, Spain, and Hungary, nor the non coal-producing countries of the European Union,&rdquo; stated IGBCE President Michael Vassiliadas, who led the travel delegation. &ldquo;The subsidies do not create unfair competition in the EU. In comparison to the little that is gained in environmental protection, more (social costs) will be lost due to imported coal replaced domestic coal,&rdquo; said Vassiliadas.
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IGBCE President Michael Vassiliadas&nbsp;
Further, the unions claim that revoking the subsidies is counter-production to jobs creation coming out of the financial crisis. Coal accounts for 30% of European electricity generation, and 17% of total energy consumption in the EU.

European Mining Unions Reject Commission’s Coal Subsidies Policy

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The ICEM is very happy to announce the newly available Arabic version of its website. With almost 30 ICEM affiliates in Arabic-speaking countries, the new web pages are aimed at communicating our news and message to those members, as well as to the thousands of Arabic-speaking members of ICEM affiliates throughout the rest of the world. 
 
Prominent on the Arabic page is the campaign for fair labour legislation in Iraq. ICEM Executive Committee member Hashmeya Muhsen Al-Saadawi, President of the General Union of Electricity Workers and Technicians (GUEWT) continues to lead her union under constant government harassment. As reported by ICEM in July, the Electricians union&rsquo;s offices were shut and seized by the authorities on 20 July, under a ministerial order of the government.

ICEM Launches Arabic Website

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