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A strike last week at Indonesia&rsquo;s second largest copper and gold mining operations ended on Friday, 6 August, after some 1,500 miners of the PT NNT labour union, affiliated to the Chemical, Energy, Mine Workers&rsquo; Union of the Indonesia Workers&rsquo; Union, agreed to await an overtime pay judgment from a provincial government. The strike started on 1 August and completely shut US-based Newmont Mining Corp.&rsquo;s rich Batu Hijau mines and operations on Sumbawa Island. 
 
The dispute started some three weeks after the Manpower and Transmigration Ministry of West Nusa Tenggara Province issued an order that management was in arrears on Rp 126 billion (US$13.8 million) in overtime wages to some 1,919 workers dating back to 2008. 
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Newmont&rsquo;s Indonesian subsidiary, PT Newmont Nusa Tenggara, refused to comply with the order and in late July talks with the union, said it would challenge the order. The company was claiming that since the work agreement does not expire until the end of 2010, it was under no obligation to comply with the order. 
 
The union and management continued talks throughout the four-and-a-half day strike last week, with the two sides agreeing late on 5 August to get a legal interpretation of the order. Workers were back to work on Friday afternoon, 6 August. Some 7,000 total employees are employed at Batu Hijau. 
 
Newmont is managing partner and a 31.5% owner of the Batu Hijau mines and processing operations. Gold production in the first half of 2010 has increased by 87% over the same half-year period in 2009, while copper production is up 43% in the same period. Batu Hijau is expected to produce 227,000 tonnes of copper concentrate in 2010, while gold production is expected to reach 525,000 ounces.

Newmont Mining Strike Over Overtime Arrears Ends

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A two-year labour dispute in Queensland, Australia, broke into a continuous strike on 27 July when 233 miners of the Construction, Forestry, Mining and Energy Union (CFMEU) downed tools at open-pit coal mines operated by Theiss Contractors, a division of mining contractor Leighton Holdings. 
 
The mine in Collinsville in northern Queensland is owned by the Swiss-Anglo company Xstrata. 
 
CFMEU miners and their families are angry that the contract operator pays workers who fly-in and fly-out of the colliery far more than local residents. Despite efforts by the company to run the mine with scab labour, the 15-day strike has rendered the mine inoperable since emergency response teams are also part of the strike. 
 
On 2 August, some 18 wives and partners of striking miners blocked trains loaded with coal from leaving the Collinsville area, causing the trains to return to the mine. That scene was repeated over the weekend and today, 9 August, resulting in the arrests of four women for railway-related trespassing offenses. The trains are operated by the QR National rail line. 
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The CFMEU is seeking job security protections from Theiss in a new enterprise bargaining agreement, as well as pay packages that miners in other areas of the Bowen Basin receive. Collinsville miners have lost 24% in wages over the past several years as Theiss continues to stall bargaining. 
 
The contractor has offered a 6% increase this year, and 4% hikes in each of the next two years, but Collinsville miners are seeking increases of 9%, 6%, and 5% to bring them close to parity with other mining enterprises of Queensland. The CFMEU also is seeking super-annuation contributions lifted by 12% on a supplemental pension scheme. 
 
Xstrata Coal owns 55% of the Collinsville mine that produces and exports thermal coal, while Japan&rsquo;s Itochu Coal Resources and Sumitomo hold 35% and 10% stakes, respectively. 
 
Meanwhile, the 21-month dispute between CFMEU and Xstrata at the Tahmoor colliery in New South Wales continues. The union is seeking solution by an independent arbitrator of Australia&rsquo;s Fair Work Tribunal in order to retain union work rights at the mine, but the company is resisting. The livelihoods of some 240 miners are at stake.

Angry CFMEU Miners Strike Contract Operator at Australian Colliery

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Efforts to resolve a 2010 industry pay settlement for 4,000 UK paperworkers failed in late July, with ICEM affiliates Unite the Union and GMB now deferring further talks with the employers&rsquo; Confederation of Paper Industries (CPI) until 6 October. The negotiations cover workers in the corrugated boxboard sector of the paper industry, with the major employers being SmurfitKappa, DS Smith, and SAICA, the Spanish company that bought the UK operations of Swedish SCA in 2008. 
 
Following negotiations on 22-23 July, union negotiators were willing to put the corrugated industry&rsquo;s final offer up for a ballot, but without recommending approval or rejection. This was not agreeable to the CPI and the final offer was withdrawn. 
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In Unite&rsquo;s GPM Sector newsletter, Unite National Officer Peter Ellis said the unions are seeking a one-year pay deal, but &ldquo;various options were considered ranging from a one year deal, a deferred payment deal, a two-year deal, and a mixture of all three. 
 
&ldquo;However, the level of settlement offered by the industry was below the level that unions would be prepared to recommend to their members,&rdquo; said Ellis. 
 
The recess in corrugated talks until early October is due to scheduling. The unions and CPI have a 14-member joint negotiations body charged with reaching pay terms. Meanwhile, Unite&rsquo;s 2010 pay settlements in the print, packaging, and newspaper sector, covering some 70 employers, are averaging between 2% and 2.5%.

Corrugated Paperboard Talks in UK Put on Hold Until October

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According to Economic Populist and based on reliable data from a company that monitors layoffs, 25 American-based companies were responsible for 700,000 jobs lost during the financial crisis. And the statistics reveal that most of the lost US jobs were caused by outsourcing jobs offshore. 
 
The list of 25 includes a few industrial companies, but the most consisting of tech companies, service-oriented forms, and, of course, financial services. 
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The 25 are: General Motors, 107,357 jobs lost due to outsourcing; Citigroup, 73,056 jobs gone; Hewlett-Packard, 47,540 jobs eliminated due to outsourcing; Circuit City Stores, 41,495 (not attributed to outsourcing); Bank of America/Merrill Lynch, 40,650; Verizon Wireless, 39,000; Pfizer, 31,771; Merck and Co., 24,400. 
 
Lehman Brothers, 23,340; Caterpillar, 23,024; JP Morgan Chase, 22,852; Starbucks, 21,316; AT&amp;T, 18,401; Alcoa Aluminium, 17,655 jobs lost to outsourcing; Dow Chemical, 17,530; Dupont, 17,000; Berkshire Hathaway Capital, 16,900 jobs lost due to unknown reasons; 
 
Ford Motor, 15,912; KB Toys, 15,100; US Postal Service, 15,000; DHL Express USA, 14,900; Sprint Nextel, 14,500; Sun Microsystems, 14,000; Boeing Aviation, 13,715; and Chrysler, 13,672. 
 
Many of these companies demanded US taxpayers&rsquo; dollars in the form of stimulus monies, all the while they were loping jobs.

US: 25 Companies, 700,000 Jobs Lost Due to Outsourcing during Financial Collapse

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A draft report on precarious women workers has been presented to the European Parliament by Danish Social Democratic MEP, Britta Thomsen. 
 
The report expresses disappointment that EU employment law and the directives on fixed-term, part-time, and temporary agency work do not adequately address the precarious nature of employment and calls on the Commission and the Member States to take further specific legislative measures, such as introducing binding minimum social standards for employees and granting all employees equal access to social services and benefits, including maternity leave, health care, and pensions, regardless of their employment conditions. 
 
The report underlines the need for unionisation of women in precarious jobs and calls on the Member States to penalise those who create obstacles to trade union participation. 
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Danish Social Democratic MEP, Britta Thomsen
Member States are encouraged to combat undeclared work by means of preventive measures, such as granting immunity from prosecution to employees who report their illegal employment status and taking dissuasive action against employers. The report further calls on the Commission and the Member States to improve data collection and monitor progress in this field. 
 
The Commission and the Member States are called on to enhance their monitoring of minimum health and safety requirements in the workplace, paying particular attention to the specific risks to female workers. 
 
With regard to migrant workers, the report calls on the Commission, in its new gender equality strategy, to strengthen its commitment to promoting gender equality in migration and integration policies, in particular with a view to fully utilising migrant women&rsquo;s employment potential and encourages employers to take specific measures to facilitate the social integration of women migrant workers. 
 
Attention is drawn to the limited amount of research on the subject of precarious work and the report calls on the Commission and Eurofound to initiate targeted research in order to assess the cost of the de-skilling and welfare loss resulting from precarious employment. 
 
The report will be voted on by members of the European Parliament Committee on Women&rsquo;s Rights and Gender Equality on 10 October 2010.

Draft European Parliament Report on Precarious Women Workers

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At a side meeting in Geneva at the 2010 International Labour Conference of the ILO in June 2010, the UN Special Representative on Business and Human Rights, Professor John Ruggie, requested the ILO&rsquo;s expertise in determining the impact of precarious work on human rights. 
 
In preparing to make operational the 2008, &ldquo;Respect, Remedy, Protect&rdquo; framework, Ruggie is consulting with a wide range of actors, including through an online consultation forum. Ruggie&rsquo;s request to the ILO follows online submissions by the Global Union Federations International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers' Association (IUF) and the International Metalworkers&rsquo; Federation (IMF), which both highlighted the fact that CAL and other forms of precarious work are being used to undermine the human rights to freedom of association and collective bargaining. 
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John Ruggie
In its submission to the consultations, the IMF&rsquo;s statement said, &ldquo;It is our submission that precarious work threatens the very survival of stable employment and collective bargaining,&rdquo; adding, &ldquo;As with other human rights, exercise of the fundamental enabling rights of freedom of association and collective bargaining is severely constrained by fear. That fear comes from the vulnerability that employers are imposing on workers every day, in developed and developing countries alike, with the explosion of precarious work practices.&rdquo; 
 
Ruggie&rsquo;s &ldquo;Respect, Remedy, Protect&rdquo; framework is based on three pillars: it is a state duty to protect human rights abuses by third parties, including businesses; corporate responsibility to respect human rights; and that there must be greater access by victims to effective remedies, judicial and non-judicial.

UN Human Rights Special Representative Ruggie Seeks ILO Help on Precarious Work

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An agreement has been reached at the Labour Ministry of S&atilde;o Paulo, Brazil, state between BASF and the chemical workers of Guaratinguet&aacute;. The agreement aims to regulate the use of Contract and Agency Labour (CAL) and requires the company to pay the same salary and benefits to agency workers as is paid to permanent, directly-employed workers. Failure to implement the agreement will result a fine of 500 Reales per worker/per day. 
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This Guaratinguet&aacute; plant is the largest BASF entity in Latin America and has about one non-regular worker for each directly employed worker.

Brazilian Social Partners Agree on CAL Regulation at BASF

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The Americas Regional Contract and Agency labour (CAL) conference was held in Recife, Brazil, on 27 June 2010. The conference was attended by ICEM affiliates from Brazil, Argentina, Colombia, Chile, and Uruguay, as well as by ICEM General Secretary Manfred Warda, the ICEM Vice-President for Latin America, Sergio Novais, the ICEM Women&rsquo;s Officer and Latin America Contact Person, Carol Bruce, and Ashling Seely, the Global CAL Project Coordinator. 
 
Affiliates at the conference spoke about how CAL is being used to undermine freedom of association, for example with Sintracarb&oacute;n in Colombia, the ICEM&rsquo;s Mine Workers&rsquo; affiliate. Representatives from that union told how trade union activists are being transferred from permanent positions into what are known as &ldquo;rubbish contracts.&rdquo; 
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CAL Project Coordinator for Latin America - Rosane Sasse
Another ICEM affiliate, Sintravidricol, the Colombian Glass Workers&rsquo; Union, spoke about how workers at Owen-Illinois are being dismissed and replaced by agency workers. Affiliates also spoke about the problems of triangular employment relationships, with CAL workers not being clear on who is ultimately responsible for their working conditions. 
 
Participants exchanged information on the increasing efforts being made to halt the outsourcing of employment and abusive use of short-term contracts. For example, the Union of Rubber Workers of S&atilde;o Paulo, representing 26,000 workers, is attempting to negotiate a collective agreement clause prohibiting outsourcing in the manufacturing sector. 
 
In Brazil&rsquo;s oil sector, more than two thirds of the workforce is outsourced. The Single Federation of Oil Workers (FUP) has held several debates, regional and national meetings in various regions of the country, to raise awareness of the negative impact of CAL. The umbrella federation of oil workers&rsquo; unions at state-owned Petrobras has also worked with its affiliated organisations to encourage them to restructure in order to improve the full involvement of outsourced workers in their unions. 
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ICEM General Secretary Manfred Warda
ICEM&rsquo;s Warda concluded the meeting, saying that governments must be made aware that ILO Conventions apply equally to contract and agency workers, and that, where there are obstacles to full rights for CAL workers, these should be tackled with legal actions. Warda also spoke about the need to work against the practices of the World Bank and the IFC, organisations which are still advising governments that they need to create more &ldquo;flexible&rdquo; labour markets. 
 
Affiliates agreed that the day 28 July would become a day of action on outsourcing.

CAL Regional Conference in Latin America Gathers Important Case Studies

Joseph Toe is ICEM's Contract and Agency Labour (CAL) Project Coordinator for the Sub-Saharan Africa Region. He is a native of Togo.
How prevalent is the issue of Contract and Agency Labour and Precarious Work in Africa? 
 
In some cases, the proportion of temporal workers may reach 80% of the permanent workforce. Deregulation of the labour market has accelerated this process. 
 
What factors have impacted on the use of CAL? 
 
Structural adjustments imposed by the Bretton Woods institutions adversely affecting the institutional employment context at two levels: 
 
&bull; The de-regulation of the labour market and the fact cry that use of labour must become more flexible; and 
&bull; The reduction of trade union participation and the inability of civil society to effectively make its voice heard over anti-social measures advocated by lending institutions. 
The arrival of Asian investors has also disrupted the labour market in Africa and jeopardises previous social gains. 
 
What is the Sub-Saharan African ICEM CAL Project? 
 
The Sub-Saharan African ICEM CAL Project started at the end of February 2009 and covers 8 countries, Guinea, Mauritius, Mozambique, Namibia, Nigeria, Senegal, Sierra Leone, and South Africa. The selected targeted countries were all identified as nations where the issue of contract and agency labour is wide spread, but also where there are relatively strong trade unions. This means that there are possibilities of carrying out actions to achieve reasonable progress on this issue. 
 
What are the Project Objectives? 
 
The project aims to develop trade union strategies and seek best practices to address contract and agency labour related problems in Sub-Saharan Africa; it seeks to create a coherent regional coordination to address the problem; it advocates for governments to take the relevant initiatives and policies to halt the use of temporal contracts and to regulate private employment agencies; it seeks to carry out high level and specialised regional research; to have trained union negotiators on the issue of rights for contract and agency workers; to build the organisational capacities of the leadership in CAL campaigns; and to create a network for information- and experience-sharing of ICEM affiliates on the issue across the region. 
 
The training is based on a number of simple and practical tools designed from examples taken from around the world. At the end of each session, a plan of action is developed on the future actions to be carried out at the national level in synergy with other GUFs&rsquo; affiliates, and guidelines are defined to be included in the ICEM Global Campaign on CAL. In order to implement the national plan, a monitoring mechanism, which is part of the plan of action is defined, and the officers in charge of its implementation are appointed. 
 
Trade union action is indispensable to neutralising the development of outsourcing and temporal employment, particularly as it is crosscuts and affects all trade and industrial sectors. Sub-Saharan African countries are seriously affected by this problem and are reacting in order to stem and/or reduce the adverse effects. The Sub-Saharan African ICEM CAL Project also encourages and assists unions in: 
 
&bull; Building trade union organising and negotiating capacity; 
 
&bull; Institutionalising sector-based negotiations and reinforcing trade union unity of action, which is necessary to combat outsourcing, labour brokering, and contract agencies. It fights for the regulation of employment agencies and recourse to outsource, and to be involved in that redress process; 
 
&bull; Reinforcing solidarity between temporary and permanent workers; 
 
&bull; Training those who organise temporary workers; 
 
&bull; Negotiating collective agreements which include clauses on the systematic recourse to outsource and use casual labour with regard to the improvement of the working conditions and the reduction of the consequences of casual labour; 
 
&bull; Campaigns for the transformation of casual labour into permanent employment; 
 
&bull; Develops strategies for CAL workers, with the emphasis on decent work and inclusion of gender and race in those strategies; 
 
&bull; Organising campaigns and lobbying at national and international levels against casual labour, and developing plans of action aimed at ridding this phenomenon in the Export Processing Zones (EPZ); 
 
&bull; Carrying out studies on the consequences of outsourcing and contract labour agencies within the context of worsening disparities and inequalities of the social strata. This means addressing the Millennium Development Goals 2015, the 2007&ndash;2015 Decent Work Agenda in Africa; the Poverty Reduction Strategy Paper (PRSP), Sustainable Human Development Programme, and the Tripartite and Social Dialogue Principles which serve as the basis of ILO. 
 
Casual employment affects positive labour values, which develop, distinguish, and socialise the human being.

Interview: Joseph Toe, CAL Project Coordinator, Sub-Saharan Africa Region

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The government of Zambia bent to the will of the country&rsquo;s two major mining unions, including ICEM affiliate Mineworkers Union of Zambia (MUZ), to investigate and remedy the anti-Zambian outsourcing policies planned by Anglo-Indian Vedanta Resources at several of its Konkola Copper Mines (KCM) operations. 
 
That government intervention did achieve the desired results, since KCM has now rescinded its plan to outsource major operational activities at its Nchanga mines, Chingola Copper concentrator and open pit mines, and the Nampundwe refractory to foreign contractors. 
 
On 24 August, a tripartite dialogue consisting of the Labour and Mines Ministries, Vedanta&rsquo;s senior executives, and the MUZ and the National Union of Miners and Allied Workers (NUMAW) produced an agreement that should deploy more Zambians to the country&rsquo;s mines and resource processing plants.
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MUZ President, Rayford Mbulu&nbsp;
The agreement caused cancellation of a mass demonstration at mine sites and other locations by the MUZ and NUMAW for 28 August. 
 
According to Labour and Social Security Minister Austin Liato, the compromise with firstly, &ldquo;on outsourcing, which has threatened a number of (local) jobs, it has been agreed that the issue will be stalled and the two parties shall engage each other before any decision is made. 
 
&ldquo;Then secondly, on the vice president human resources, who is about to retire, it has been concluded&nbsp;that the position will be advertised&rdquo; within Zambia. Both the government and civil society, including the Zambia Institute of Human Resource Management, was livid that Vedanta was about to hire another foreign national in this position. 
 
The outsourcing and offshoring issue between Zambian mining unions and Vedanta had become pitched in August, particularly at a time when Vedanta is greatly expanding many of its copper-producing facilities. 
 
The outsourcing issue at KCM became especially exasperated when a mining boss at the Chingola mine &ndash; operated by the Brazilian contractor U &amp; M Mining &ndash; refused to allow the deputy minister of Labour and Social Security onto the mine to inspect labour conditions. 
 
In the days before the tripartite meeting, KCM attempted to resolve the dispute by offering any worker affected by outsourcing to transfer to the contract employer at equal pay and the same pension contributions, transfer to one of two other KCM operations, or voluntary separation under existing conditions of service. But that was unsatisfactory to the unions. 
 
KCM is 20% owned by the Zambian government. In 2009, over 80% of Zambia&rsquo;s foreign exchange earnings and 15.9% of its GDP came from copper mining. The ICEM Secretariat commends Sub-Saharan African Regional Vice President Rayford Mbula, President of the MUZ, for his leadership and vigilance on this issue with both the government and Vedanta.

Planned Outsourcing by Vedanta inside Zambia’s Copper Belt

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