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Free Trade Union Recognised for Miners, Metalworkers of Georgia

17 May, 2010

Strike actions in April and a flurry of trade union activities over the past two weeks have succeeded in bringing formal recognition to the ICEM affiliate, Metallurgical, Mining, and Chemical Industry Workers’ Trade Union of Georgia. Some 5,800 workers at the Zestafoni Ferroalloys Plant and the Georgian Manganese mines, some 40 kilometres from Zestafoni in Chiatura, now have a free and democratic trade union to call their own.

That was reinforced on 13 May after the union, backed by the Georgian Trade Unions Confederation (GTUC), and top managers met for a second conciliation commission session and made headway towards resolving a host of demands put forward by workers.

Miners and metalworkers were buoyed massively when, ten days after a three-day strike ended on 25 April that got management’s rapt attention, ICEM General Secretary Manfred Warda and Chemicals and Rubber Officer Kemal Özkan travelled to western Georgian to meet with workers.

(LtoR) Irakli Petriashvili, President of GTUC, Manfred Warda, GTUC interpreter, Kemal Özkan

Bringing pledges of solidarity from the ICEM and the International Metalworkers’ Federation (IMF), Warda told Georgian workers they were not alone. And speaking before regional news media and to workers directly, Warda assured all that the combined strength of the two federations was ready and willing to take this fight beyond central Asia if that was needed.

The message underscored a resolve borne through several months of struggle, culminating in a series of April incidents, including grievous intimidation tricks (see prior ICEM report here) by management that served only to bring more staff into the Metallurgical, Mining, and Chemical Workers’ fold.

Initially in last week’s second conciliation session, managers and their attorneys sought involvement of an existing but dying “yellow” union in the talks. But the seven union members of the joint, bilateral commission threatened to walk out and lead renewed strike actions. The union and GTUC representatives then showed managers a large number of power-of-attorney statements by workers that expressed their allegiance to the Metallurgical, Mining, and Chemical Workers’ Union.

Metallurgical, Mining, and Chemical Workers’ Union Members

Recognition was achieved. The numerous petitions that workers demand to improve their working lives were then open for discussion. Foremost among them were wages. In the hours leading up to the talks, the ICEM and IMF scrambled to gather and succeeded in delivering wage rates from associated ferroalloy plants in Ukraine, owned by the metals arm of PrivatBank.

Miners at the Georgian Manganese complex are paid an average monthly wage of GEL (lari) 450, or US$238, €192. Metalworkers at the ferroalloy plant in Zestafoni earn a monthly average of GEL 562, or US$298, €240. With both sides having already agreed to 1 May as the effective date for salary adjustments, management proposed a 15% increase for shift workers and 8% for day workers.

This is unsatisfactory to the union side of the commission. But they are confident that further negotiations today and tomorrow, 17-18 May, and again on 20 May, will bring the long overdue percentage increases higher. The union did get a commitment at the 13 May set of talks that the enterprises will begin to comply with Georgia labour law regarding sick leave payments, including retroactive compensation for those workers who have been denied such pay.

“It is a big step forward,” said Gocha Aleksandria, Vice President of the GTUC, who is a member of the 14-member conciliation commission. “The administration now accepts our union, but the hardest part is still ahead. We intend to achieve the obvious, meaningful, and tangible results for our members and that is permanent labour contracts that address all issues.”

Some of those issues include raising the number of yearly paid leave days from 30 (metal) and 32 (mining) to 35; creation of a joint contributory pension fund to supplement a miserly state pension; better safety and health conditions; and an upgrade to medical facilities.

Even prior to the first commission negotiations, on 7 May, management reacted to workers’ militancy and ICEM’s mission statement of that week by agreeing to permanent work contracts, as well as reinstatement of two union leaders who were discharged for strike activities. (At the 13 May session, management agreed to pay the two their full April salaries.)

Another accomplishment in the recent bargaining is that union leaders will bring their demands directly to Georgian shareholders of the enterprises. The complex ownership of the ferroalloy plant and manganese mines has stock ownership by privately-held Stemcor Holdings of the UK. Shares are also traded publicly on the Georgian bourse with Georgia entrepreneurs and the Ukrainian oligarch Gennadiy Boholyubov and his manganese empire that is tied to PrivatBank holding vast sums.

For now, 3,600 miners and 2,200 metalworkers have a free and democratic union they can call their own – the Metallurgical, Mining, and Chemical Industry Workers’ Trade Union of Imereti Region. But as Aleksandria states, the journey now begins in earnest: erstwhile dialogue to gain the wage levels, benefits and work conditions that they justly deserve.