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BAE, Kang-wook 
President 
Korean Chemical and Textile Workers Federation (KCTF) 
Third floor, Woosung Building 
94-14 Yeongdeungpo-dong 7-ga 
Yeongdeungpo 
Seoul 150-037 
SOUTH KOREA 
 
by fax: + 82-2-26.32.47.55 
by&nbsp;e-mail: <a href="mailto:kctfim@hanmail.net">kctfim@hanmail.net</a> 

Dear Sisters and Brothers of KCTF-KCTU in Korea, 
 
We are informed by the ICEM that your union has been, since 2004, the victim of an anti-union repression by GS Caltex, and that you now have decided to launch a boycott campaign against GS Caltex products in Korea. This letter is meant to offer our union&rsquo;s support and encouragement in your courageous fight against the unfair labor practices by GS Caltex. 
 
We understand that some 30 union leaders at GS Caltex have been dismissed in August 2004 and that eight have faced criminal charges for carrying out their legitimate union duties. It is clear that GS Caltex wanted to punish these dedicated trade unionists, as well as the KCFT-KCTU itself, for its trade union actions. This behavior by the company is abhorrent and far from what can and should be expected in developed and civilized nations. GS Caltex needs to start bargaining in good-faith. 
 
It is also deplorable that the South Korean Government has collaborated with the management of GS Caltex by assisting in the suppression of reasonable union demands through dispatching anti-riot police units and arresting union members. 
 
We salute KCFT-KCTU for undertaking this brave struggle in defense of basic trade union rights, particularly the fight for freedom of association. Please know that the members and leaders of our union stand firmly with you in your pursuit of justice and dignity. 
 
Fraternally, 
 
 
(Name) 
(Title) 
(Union)

Model Letter of Support to KCTF

<a href="http://www.mckinseyquarterly.com/article_page.aspx?ar=1582&amp;L2=1&amp;L3=106">OUTSOURCING GROWS UP</a> 
 
Written in early 2005 by two partners of the McKinsey&rsquo;s London office, this article shows that the ICEM views on contract and agency labour are beginning to be accepted by influential Management Consultants. 
 
According to the article, the main objective of the first companies using outsourcing, was purely to reduce costs. That has changed somewhat. It is now generally accepted that companies also use contract and agency labour to improve their operational performance. 
 
The authors&rsquo; research shows that, in spite of this change,&nbsp;few companies changed the way they make their deals. They also say that that &ldquo;up to 50% of outsourcing arrangements fail to deliver the expected value&rdquo;. 
 
Examples are given of companies experiencing severe problems during the operation of the contract, due to the fact that they did not have a clear strategy at the beginning of the process. Towards the end, the article argues to work with all the internal stakeholders that will be affected by the move, including union representatives. 
The article can be found here: 
<a href="http://www.mckinseyquarterly.com/article_page.aspx?ar=1582&amp;L2=1&amp;L3=106">http://www.mckinseyquarterly.com/ 
article_page.aspx?ar=1582&amp;L2=1&amp;L3=106</a>

Useful Background Articles on Contract and Agency Labour

The 20-million-member ICEM today condemns King Gyanendra and his autocratic rule in Nepal for the arrests and intimidation of dozens of pro-democracy activists in the days leading up to a four-day general strike beginning tomorrow, 6 April. The ICEM also condemns the absolute monarchy&rsquo;s threat to civil servants and professionals, who have been served notice that participation in the strike could mean dismissals or job transfers to remote areas of the Himalayan country. 
 
Specifically, the ICEM calls attention to the arrest yesterday of General Federation of Nepalese Trade Unions (GEFONT) official Ramesh Badal. He was seized in New Baneswer as he was speaking to the Professional Alliance on joining the strike. Badal heads GEFONT&rsquo;s Department of Labour Relations. 
<img height="137" alt="" src="" width="131" /> 
 
Ramesh Badal
&ldquo;Arrests of activists before major strikes and demonstrations have become all too common in Nepal,&rdquo; said ICEM General Secretary Fred Higgs. &ldquo;But this makes them no less appalling. Real rights and freedoms will not exist until Nepal&rsquo;s monarch lifts his absolute rule and allows political parties to function.&rdquo; 
 
The ICEM, a Global Union Federation consisting of 389 affiliates in 122 countries, including four in Nepal, supports the 6-9 April general strike as a means of challenging Gyanendra&rsquo;s autocratic rule, now in place for 14 months. This week&rsquo;s general strike is being called by a wide ranging political coalition called the Seven Parties Alliance. The royal government has countered the strike with prohibition orders banning all assemblies inside the greater Kathmandu area.

ICEM Condemns Arrests, Repression Leading to General Strike

<img height="41" alt="" src="" width="100" />
Exactly one week after the Howard government&rsquo;s WorkChoices legislation in Australia went into effect, labour unions across the country have mounted campaigns to alert workers of the dangers. The unions also are preparing to oust Prime Minister John Howard from office at the time of next elections in 18 months. Several unions have established websites where workers can post and respond to employer abuses. 
The new law went into effect on 27 March and, in short, dismantles collective bargaining in favour of a system of individual contracts and exempts employers with fewer than 100 workers from unfair dismissal claims. 
In the first week alone, Australian unions have noted a rash of abuses. For instance, in South Australia, a hotel has announced a restructuring plan in which it will half its workforce, and place all staff on individual contracts with longer work hours. At another business in New South Wales, a company sacked all 29 of its employees and invited them to apply for 20 jobs based on individual contracts with salaries of A$180 per week less. 
<img height="100" src="" width="100" alt="" />
ICEM affiliate Australian Manufacturing Workers Union has begun a campaign entitled &ldquo;WhatChoice?&rdquo; and the Australian Council of Trade Unions, in conjunction with several states, is bringing legal action to reverse the law.

Australia’s Labour Reform Strips Workers of Protections

<img height="41" src="" width="100" alt="" />
South African affiliate National Union of Mineworkers (NUM) has challenged Harmony Gold Mining&rsquo;s sacking of 300 contract workers without consulting the union. Harmony fired contractor DBE Mining at the Kalgold mine in the Northern Cape, and will bring in a new contractor employing other workers. 
NUM, which has filed a complaint over the matter in a South African labour court, is demanding that Harmony, &ldquo;in the current climate of a boom in gold prices,&rdquo; hire the 300 on a permanent basis. 
In a statement, NUM said, &ldquo;Harmony would like to hide behind the myth that the 300 workers are employees of a contractor while in reality they do critical work in a Harmony mine &hellip; subcontracting and outsourcing are new forms of exploitation through which big companies try to exonerate themselves from the stain of careless laying off of employees.&rdquo;

Layoffs of Contract Workers Challenged by NUM

<img height="41" alt="" src="" width="100" />
Trade union members of Amicus, an ICEM affiliate in the UK, staged a second four-hour strike on 30 March at International Paper Co.&rsquo;s Inverurie mill in Scotland. The union and its 231 members at the paper mill will escalate industrial actions this week with two further strikes, tomorrow and Thursday, 4 and 6 April, if the company does not revise a pay offer for 2006 and 2007. 
Management has proposed an unacceptable pay freeze for this year and a minimal one-off payment in 2007. Workers for the past two years have contributed part of their weekly earnings to help fill a gap in the company&rsquo;s pension scheme. The industrial actions have boosted Amicus support inside the printing and writing papers mills, as well as in the nearby community of Aberdeenshire.

Further Strikes at IP Paper Mill in Scotland

<img height="40" alt="" src="" width="100" />
A protest in Kiev tomorrow, organised by the Ukrainian Trade Union Federation (FPU), is expected to turn out over 100,000 people. The demonstrations and march, deliberately organised a day before Ukraine&rsquo;s Constitution Day, are an attempt to block further increases by the government on utility tariffs. 
<img height="293" src="" width="390" alt="" />
On 21 June, FPU organised regional demonstrations against the hike in gas and electricity tariffs which brought out 200,000 protestors across Ukraine. In the eastern cities of Donetsk and Kharkiv, 10,000 marchers, displaying FPU banners turned out, demanded a moratorium on utility tariffs, while thousands more protested in the western city of Lviv and the southern city of Kherson. 
 
Ukraine&rsquo;s National Electric Regulatory Commission increased the tariffs for customers on 1 May, and then again on 1 June. The government has scheduled another increase on 1 July that will, in total, result in an 85% increase in less than 60 days.
<img height="138" alt="" src="" width="100" /> 
&nbsp;Alexander Yurkin
FPU, headed by former ICEM Regional Vice President Alexander Yurkin, has promised continued street mobilisations until the government relents. The labour federation sponsored a 24 May demonstration in Kiev that mobilised well over 100,000 citizens. Thus far, Yurkin said, &ldquo;the protests have not produced any reaction from the government.&rdquo; He said public pressure by the labour federation will be escalated until fairness comes to consumers.

Major Protest in Kiev on 27 June Over Unfair Utility Tariff Hikes

<img height="40" alt="" src="" width="100" />
The ICEM participated in a United Nations Institute for Training and Research (UNITAR) conference in Geneva, Switzerland, 19-21 June over implementation of SAICM &ndash; the Strategic Approach to International Chemicals Management. 
 
The conference, attended by 90 participants from governments, industry, trade unions and NGOs, discussed how to implement SIACM principles at national level, in order to raise awareness among workers, communities and customers of chemicals, ensuring safety and risk-free management. 
 
The conference&rsquo;s workshops served as the first follow-up to the adoption of SAICM ambitious goals by the United Nations Environmental Programme (UNEP) in February 2006. Many recommendations and suggestions were developed during last week&rsquo;s conference. ICEM Chemicals and Rubber Officer Michael Wolters represented the Global Union Federation at the meeting.

Management in Chemicals Sector Gets Hearing at UN’s Training and Research Agency

<img height="40" alt="" src="" width="100" />
The Japanese Trade Union Confederation, Rengo, continues to post solid gains for part-time workers in this spring&rsquo;s set of wage negotiations. The labour federation has targeted raises for temporary workers as a priority in this spring&rsquo;s shunto, or spring wage offensive, as well as delivering improved working conditions for part-timers. 
 
Rengo is also encouraging part-time workers to file lawsuits against enterprises which are not in compliance with a court ruling that says they must not receive less than 80% of full-time pay. Speaking at a meeting of representatives from local chapters on 16 June, Rengo President Tsuyoshi Takagi said the labour umbrella group would assist part-time workers to pursue such lawsuits.

Rengo Continues Spring Offensive on Behalf of Part-Time Workers

<img height="40" alt="" src="" width="100" />
In Peru, 800 iron ore miners, members of Sindicato de Obreros Mineros, an affiliate of Federaci&oacute;n Nacional de Trabajadores Mineros, Metalurgicos y Siderurgicos del Peru (FNTMMSP) began a strike 19 June against Chinese state-run Shouda Iron and Steel Group (Shougang). 
 
The strike at Peru&rsquo;s only iron ore mine at Marcona, 350 kilometres south of Lima, was caused when managers of Shougang Hierro Peru failed to meet wage demands of miners, who are among the lowest paid in the country&rsquo;s mining industry.
<img height="100" alt="" src="" width="100" />
The mine union, connected with ICEM affiliate FNTMMSP, is seeking wage increases equivalent of US$1.69-a-day, while Shougang offered only the equivalent of US$0.42-a-day. Shougang&rsquo;s miners earn a salary of only US$13-a-day, far below the average Peruvian mining salary of US$33-a-day, according to Peru&rsquo;s National Society of Mining, Petroleum and Energy. 
 
Union members at the mine last week blocked the entrance, preventing the company from using contract work to continue the work. Meanwhile, Peru&rsquo;s government has declared the strike a legal one, meaning the company must continue negotiating with the union and the Labour Ministry can impose an increase to workers&rsquo; salaries if work is to be re-started. 
 
Shougang declared force majeure on all iron ore exported from Peru, the majority of which is destined for Japan and China. The Chinese state company bought the mine in 1992 from a state-run Peruvian company for US$118 million, and has increased production since 2002 by an average of 20% per annum. 
The increased production has caused numerous safety concerns, which have not been addressed, and Peru&rsquo;s Energy and Mines Ministry says the company has not met investment commitments tied to the sale.

Miners Strike Chinese Iron Ore Operations in Peru

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