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GREAT BRITAIN: Ford Motor Company announced today, May 12, that by early 2002 it will cease car production at its huge Dagenham complex. The unions expect that over half the current workforce of approximately 9,000 at the east London plant will be cut. This includes redundancies announced earlier this year, to take place in August, when Ford will change to a one-shift operation. 
The company, which claimed that overcapacity in the European market as well as the strong British currency against the euro was behind their decision, will reportedly switch production of the new Fiesta to Germany and turn over diesel engine manufacture to Dagenham, which will bring in about 500 jobs. 
Although Ford of Europe recorded £600 million in losses in 1999, the last two years saw Ford UK making a profit of £410 million. With regard to Ford's total European sales, the UK accounts for 28 per cent, which is more than in Germany and Spain put together. 
According to the Manufacturing, Science and Finance union, as Ford workers in Britain cost an average £10.72 per hour, compared with their German counterparts at £16.54, they believe the relatively low cost of laying off workers in the UK is behind Ford's decision to cut jobs in Dagenham. The union is calling on Ford to build an alternative vehicle in Dagenham. With Volvo, Mazda and Aston Martin part of the Ford family, they say that "new models from any of these could easily be built in British plants." 
The largest UK union in the car industry, the Transport and General Workers' Union, reacted very angrily to Ford's decision, saying that "without car assembly it will be too easy for Ford to take all their operations out of Dagenham, with the loss of thousands of jobs in Ford and in the surrounding community." Jobs in supporting engineering plants at other UK locations are under threat as well, as they depend on work at Ford Dagenham. 
Trade union officials will be meeting next week to work out their response to the crisis. Some have warned that strike action cannot be ruled out.

Ford has announced it will quit car production at its 70-year-old Dagenham plant in east London.

Big blow for UK car jobs

NORWAY: The IMF-affiliated Fellesforbundet reports that negotiations for the 2000 collective bargaining round in the private sector, which began on March 6, have broken down. Norway's LO, the national trade union center, which is negotiating a coordinated settlement this year on behalf of all its affiliated members, announced on March 16 that the talks had failed. 
A mediator has now taken over, and should this attempt not succeed in finding an acceptable solution to both bargaining parties by the March 31 midnight deadline, a strike will commence on April 1 at 6 a.m. 
Employers have, thus far, shown no signs of willingness to accept the unions' demands, which are: 
- five weeks' vacation (now 21 days); 
- funding for further education; 
- a real increase in wages. 
If strike action does begin on April 1, 21,500 workers from various sectors of Norwegian industry will down their tools. This will include Fellesforbundet members in the construction industry. Should the dispute escalate, other groups will also be called out on strike.

Bargaining talks have broken down between the trade union center and employers.

Norway may see strike action

GUATEMALA: The IMF has received very good news from the GINSA Workers' Union (STGINSA), a member of the IMF's Guatemalan affiliate, FETRAMEGUA. 
Following both national and international trade union intervention with regard to the anti-union attitude of GINSA, a company which produces Goodyear tires in Guatemala, management finally accepted to negotiate and has now reached an agreement with the union on its demands. The proof of the pudding is in the eating, however, so the situation will be closely monitored to ascertain that the company does indeed apply the agreement and respect its obligations. 
When the conflict between GINSA and the union first became known, the IMF immediately wrote a letter of protest to the Chairman of the Board, CEO and president of the U.S.-based Goodyear Tire &amp; Rubber Company. The IMF demanded immediate reinstatement of the dismissed workers - all trade union members - and the recognition of the workers' right to trade union representation. The IMF also coordinated international solidarity action amongst its affiliates and other international trade secretariats. 
The STGINSA union wishes to express its thanks and deep appreciation to all those who helped bring about a normalisation of the situation.

Management at the Goodyear tire company in Guatemala has negotiated a settlement with the trade union.

Good news from Goodyear

GENEVA: METAL WORLD is replacing the former "IMF News". 
Since June 1999, the news from and about the IMF and its affiliates is being published daily on this website, following which, on a weekly basis, this information is grouped and distributed via e-mail and fax in the "IMF NewsBriefs". 
The new IMF magazine, METAL WORLD, is a complement to all other IMF communication instruments. It will be published four times a year, to begin with only in English. 
Click on the associated link and read the entire column.

The IMF general secretary, Marcello Malentacchi, welcomes the IMF's new magazine, METAL WORLD, in his most recent opinion column.

New IMF magazine published

USA/GLOBAL: The recurring theme throughout the discussions at the IMF-GE World Council Meeting on March 22-23 in Washington, D.C. was the growing importance and necessity of international trade union solidarity, coordination and communication amongst all GE unions, to counter the effects of GE's global strategy on its workforce. 
Addressing the 120 conference participants from 17 countries where General Electric Company has operations, the IMF general secretary, Marcello Malentacchi, spoke of the strong resolve of GE unions to act globally in face of the company's increasing globalised appetite for profit. 
GE's philosophy of ruthless cost-cutting has led to thousands of job losses in the U.S. and abroad. In countries where internationally accepted labour standards are neither recognised nor enforced, workers are being shamefully exploited. Malentacchi said that "the struggle is not only for jobs but also to bring about sustainable development, respect of basic human rights and decent living and working conditions for all. Acting together in a global context is our best weapon." 
As Ed Fire, chair of the Coordinated Bargaining Committee of GE unions and IUE president, put it, "The time has come to employ the tactics which proved successful in America all around the world. GE speaks with one voice... the organised labour movement must speak with one voice as well." Fire was referring to the 14 American unions which bargain together as the CBC for 40,000 GE workers, and said that the challenge was to bring GE to the bargaining table on a worldwide basis. 
To achieve concrete results in intensifying international trade union cooperation, delegates agreed to: 
- organise a systematic exchange of continuously updated information; 
- seek to build strong unions in all GE plant locations worldwide; 
- ensure respect for fundamental union rights in GE operations and their suppliers worldwide; 
- include GE in the IMF company database to provide information on, amongst others, industrial relations systems, working conditions and new investment. 
Although in 1999 GE had $10.7 billion in net profits, with $5 billion going to stockholders and $164 million in total compensation to company chairman and CEO Jack Welsh, the company is subjecting the U.S. unions and workers to intimidation before collective bargaining begins on May 30, 2000. 
In a conference statement, the IMF-GE World Council pledged full international support for the upcoming CBC negotiations, the outcome of which will have consequences for all GE workers worldwide. Contracts between GE and the CBC expire on June 25.

The IMF-GE World Council strengthens cross-border trade union coordination and pledges full support to the CBC.

GE unions step up global unity

INDIA: The Sandvik Asia Employees' Union, affiliated to the IMF, recently reached a settlement with the employer, Sandvik Asia Ltd., following extended collective bargaining negotiations on behalf of the monthly and hourly paid workforce. 
The three-year agreement is binding on both parties with effect on January 1, 2000, until December 31, 2002. 
The main objectives of the settlement were: 
- improvement in the wages and working conditions of the workforce; 
- increasing the level of productivity; 
- increasing versatility, flexibility and innovation; 
- maintaining a spirit of cooperation in the interest of both parties. 
Sandvik Asia, with its headquarters in Pune, is an offshoot of Sandvik AB of Sweden, a leading multinational in the field of machine tools.

Settlement was reached with a view to promoting and maintaining industrial peace and harmony.

Deal signed at Sandvik Asia

AUSTRALIA: The IMF-affiliated Australian Manufacturing Workers' Union reports that at a meeting which took place on March 15-16 at Port Hedland in the Pilbara between the unions and the mineral and metals multinational, BHP, the company agreed to negotiate a collective agreement for those workers who did not sign individual contracts. Management's offer, however, of a collective agreement based on the individual contracts was rejected by the unions, but in further negotiations during the two-day discussions the company significantly changed its position in relation to union representation rights. 
The AMWU says that major differences still exist between BHP and the unions on such points as: 
- Union representation rights must be part of the registered collective agreement. (At present, BHP wants these rights contained in a separate document like the old Industrial Relations Agreement.) 
- Union representation rights must contain a commitment to negotiate another collective agreement when this collective agreement expires. 
- The duration of the collective agreement should be three years (and not five). 
- If BHP introduces workplace change, there must be appropriate safeguards concerning such issues as rosters, staff handbook, wage reviews, hours of work, contractors and redundancy. 
The dispute at BHP began about six months ago when the company denied collective representation to its workforce at the Pilbara iron ore operations in Western Australia. The IMF's Australian affiliates won an interim Federal Court injunction on January 31 restraining BHP from approaching its iron ore workers to sign individual contracts.

The unions and the mineral and metals multinational are talking to each other.

Earlier story on BHP

Unions make progress with BHP

GREAT BRITAIN: In a deal kept secret until the last minute, the Munich-based German automotive firm, Bayerische Motoren Werke AG (BMW), announced last week its plans to break up the Rover Group. The high value of the British pound was said to be the major factor in the decision by BMW to sell Rover. 
Alchemy Partners, a private investment firm, is taking over Rover Cars, with its assembly plant in Longbridge, in the West Midlands. As many as 5,000 jobs could disappear at this plant alone, not to speak of the many thousands more in related industries in the region which would be affected, such as suppliers and service industries. The venture capital group is reportedly planning to make sharp cuts in Rover's present output in car production, which could mean a sharp reduction in the 9,000 workforce. 
In a statement made by the general secretary of the Transport and General Workers' Union, Bill Morris, he said the union would be seeking "an urgent meeting with Alchemy to discuss their plans for the Longbridge plant." And Tony Woodley, also of the T&amp;G, declared that they were not going to keel over and accept possibly tens of thousands of (direct and indirect) job losses that this could lead to. 
Ford Motor Company has confirmed its purchase from BMW of Land Rover, which makes the four-wheel drive sports utility vehicle at its Solihull plant in the Midlands, with a workforce of 12,000. The company has so far not mentioned any cost-cutting measures. 
The Manufacturing, Science and Finance Union has reported that, following BMW's decision to sell Rover, it called on the government to set up a regional manufacturing task force for the West Midlands. In addition, they underline the necessity for a huge retraining and reskilling programme in order to attract new companies to the region. The union also says that nationally the government should take urgent action to reduce the value of the pound against other European currencies.

Many jobs could go following the decision by BMW to pull out of Rover.

Crisis at Rover

The last couple of years have been quite hectic -- in terms of take-overs, mergers, strategic alliances, exchange of shares -- in major sectors of the new economy. 
One of these is the automotive. 
There is worldwide capacity now to manufacture about 70 million vehicles per year, whereas only 53 million can be sold. The paradox is that, in many countries, similar to other sectors in the past, i.e. steel and shipbuilding, every year new plants for producing cars and trucks are being built and opened for operation. Automotive manufacturers claim they have to do this if they are to stay close to the market. 
This will inevitably lead to plant closures in some countries, unless the global market expands considerably by increasing the purchasing power of hundreds of millions of people in the developing countries. 
But this is a too long-term objective for short-sighted capitalists. Through acquisitions, mergers and venture games on the stock market, companies are trying to find shortcuts to quick profits to distribute to the owners. As the impending giveaway of Rover car facilities to a group of speculators shows, these risky games often do not work out, especially when the rosy expectations of stockholders are not met. The Rover debacle proves that stockholder value comes before the jobs of thousands of metalworkers. 
Daimler-Chrysler, Volkswagen-Rolls Royce, BMW-Rover, Renault-Nissan, Ford-Volvo cars, GM-Saab are some of the major deals which have been made in this sector in the last decade -- without counting the numerous acquisitions by various countries' national companies. 
Of course, it is sometimes necessary to merge or take over a company. However, what is happening now is a concentration of power in ever fewer hands, and this will be very dangerous if we do not find global rules and norms to control it. The interests of consumers as well as those of workers and their families must be protected, and this can only be achieved through a democratic system based on international norms. 
This week two new mergers have been on the front pages: Fiat-GM and Volvo-Scania. Fiat-GM is an exchange of shares: GM is taking over 20 per cent of Fiat Auto, while Fiat is obtaining 5.15 per cent of the shares in the GM parent company. 
Both companies are supposed to continue to operate autonomously but develop common policies in strategic, vital areas, such as research and development, the Internet, and components. Both companies together will have a production capacity of over 12 million cars per year and will be present in all major markets, with a considerable share in each one of them. 
The other deal, Volvo-Scania, was rejected by the European Commission because the EC thinks this would give the new company a near monopoly in the Nordic market. 
I thought that the market was not just the Nordic countries but the whole of Europe!
Or has the Commission changed the objectives of the European Union without informing its citizens and the European Parliament? Europe-wide, Volvo-Scania together do not have a monopoly, although they do dominate in the heavy truck division. 
One should always be very cautious when talking about deals of this kind, for the simple reason that we do not know about all the games going on, but it looks as though some of the world's largest companies are ready to take over both companies. Volkswagen is very interested in Scania, while Iveco (read Fiat) is keen on Volvo. 
There would be nothing strange about it if this did happen. Swedish companies have always been very active at the global level and have bought many companies. But would this be a better deal for the consumers and workers? 
Maybe it is so, that in Brussels there are people who can lobby better than others. However, Volvo and Scania should have started working together already 20 years ago, when they had the possibility to develop a common industrial strategy aimed at consolidating them both on the global market. 
But, at that time, the banking interests (Scandinaviska Enskilda Banken --Handelsbanken) which controlled the two companies were more engrossed in their own business than in the interests of the workers, their families and Sweden.

Restructuring the automotive sector

KOREA,REP: A two-week-long march by Sammi workers, which began on March 7 in the southeastern city of Pusan, heading north, will reach Seoul on Saturday, March 18. On this day, Sammi Specialty Steel workers will have been leading their campaign for reinstatement in their jobs for 1,179 days! 
The Korean Confederation of Trade Unions is appealing to all friends worldwide to take action to coincide with the arrival of the Sammi workers in Seoul by sending protest messages by fax to: 
- President Kim Dae Jung: +82-2-770-0210 
- Prime Minister Park Tae Jun: +82-2-722-6464 
- President of Posco: +82-2-3457-1900 
- Minister for Labour: +82-2-504-6708 
For a sample protest letter and complete background information on the Sammi workers' struggle, access the KCTU's website on kctu.org/english/index.htm 
The most recent IMF news item on this long-running dispute is dated February 10, 2000, and can be found either in the IMF website news archives or in IMF NewsBriefs No. 5, 2000. 
Read more on <a href="http://www.imfmetal.org/imf/main/main_text.cfm?show=mworld&amp;id=562">Sammi workers in Metal World No. 2/2000.

Send messages of support for the Sammi Specialty Steel workers and help them get their jobs back.

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