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With Singapore&rsquo;s Retirement and Re-Employment Act (RRA) set to take effect on 1 January 2012, two of ICEM&rsquo;s affiliated unions in the city-state have successfully entered into Memorandums of Agreement with employers and employer organisations stating that salary decreases will not happen once companies are mandated to offer jobs to workers when they reach age 62. 
 
The United Workers of Petroleum Industry (UWPI) and the Singapore Shell Employees&rsquo; Union (SSEU) announced last week that the agreements go beyond what will be required in the new law by guaranteeing that salaries and bonus payments will be maintained for workers between the ages of 62 and 65. 
 
The RRA amends a 1999 law that mandates retirement at age 62. The new Act requires employers to offer re-employment to a worker who reaches age 62 after January 2012, but a provision allows bosses to make &ldquo;reasonable&rdquo; adjustments in salaries, employment terms, and job assignments. 
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Last week, the UWPI got 13 employers to agree to the memorandum stating no lowering of salaries or elimination of bonus payments for oil or petrochemical workers choosing to continue to work after age 62. SSEU reached a similar deal with the Royal Dutch Shell subsidiary in Singapore two months ago. UWPI must now convince 13 other companies to do the same, and the precedent created by the Shell memorandum and last week&rsquo;s deal is expected to convince most to sign such accords with UWPI. 
 
Employers in Singapore, many of whom have begun offering re-employment ahead of the new law, have argued that pay cuts for older workers are necessary because seniority-based salary schemes inflate payrolls. Last week&rsquo;s signing was praised as a &ldquo;win-win&rdquo; result by one governmental minister who said the companies benefit from the loyalty and experience of the older workers. 
 
About half of Singapore&rsquo;s 5,000 oil and petrochemical workers are now covered by the no-cut agreements. The RAA, passed by Singapore&rsquo;s Parliament on 11 January 2011, is aimed at giving more financial security to older citizens, and these labour agreements recently signed in the ICEM sectors now go further to fulfil this.

Singapore’s Oil, Chemical Unions Blocking Pay Cuts after Age 62

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The Action Plan of the ICEM World Conference for the Chemical Industries held in October 2010 in Istanbul, Turkey, defined developing and improving company and sector global and regional network activities as a key priority. 
 
The Conference then endorsed the Secretariat to organize the first meeting of the ICEM Global Pharmaceutical Unions&rsquo; Network in consultation with the unions in the sector. As a result of this, around fifty representatives of ICEM affiliates in the pharmaceutical sector from Belgium, Brazil, France, Germany, Hungary, India, Indonesia, Japan, Norway, Romania, Slovenia, South Africa, Spain, Turkey and USA met on 28 October in Geneva to discuss current developments in the industry and possible actions in the future. 
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The meeting received a detailed report from Kemal &Ouml;zkan, ICEM Director of Industry and Corporate Affairs, on the global pharmaceutical industry, including an economic and social overview; and impacts of changing health care systems. The report showed that although patent expirations and limits on drug spending can hamper growth of drug sales in developed countries, global pharmaceutical sales are in a growth trend. A substantial rise comes from emerging markets, and the great majority of the expansion is driven by growth in China, the world&rsquo;s third-largest market in the sector. 
 
The participants shared their experiences from respective countries. &ldquo;Due to low birth rate and an ageing population, the costs of the social security system including pension, health care and welfare have been rapidly increasing, which led to a need for reform of tax and social security systems&rdquo; reported Naramato Masafumi, President of Karoken, Council of Chemical Workers&rsquo; Union of Japan, who spoke on behalf of Japanese unions.&rdquo; 
 
&ldquo;Moreover, currently Japan has many problems affecting the socio-economy such as deflation, highly appreciated yen, increased non-regular employees, and the recovery from the devastating Great Earthquake and Tsunami,&rdquo; said Naramato. In his report Ghosalkar Ravindra Govind, President of ICEM&rsquo;s India affiliate Chemical Mazdoor Federation (HMS), underlined considerable changes in his country. 
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Naramato Masafumi, President of Karoken
&ldquo;My country accounts for a relatively large share of the world&rsquo;s disease burden. And while India&rsquo;s burgeoning middle class has greater access to excellent healthcare, the vast majority of citizens still have limited access to basic care,&rdquo; Ghosalkar stated. Other participants gave similar reports about their individual countries and companies. 
 
The participants also largely discussed the current status of restructuring in the industry with mergers and acquisitions, and delocalization and closures of production and research facilities by multinational corporations. 
 
The biggest sale of a private company was Japanese Takeda&rsquo;s acquisition of Swiss pharmaceutical company Nycomed. As an immediate effect of the meeting, representatives of Takeda from Japan, Indonesia and Germany, in a side event, came together to establish a continuous cooperation and networking with each other. 
 
The participants were also shocked to hear the recent announcement of Swiss-based company Novartis with two thousand job losses and two factory closures in Switzerland and Italy, which resulted in an immediate solidarity message to employees and unions there. Fran&ccedil;oise Pierre of FCE-CFDT from France, secretary of the EWC of Sanofi Aventis, reported on a difficult situation at her company where management has announced more restructuring in research and development. 
 
In the conclusions, the ICEM General Secretary Manfred Warda mentioned that the network will continue to exchange information and company-level networking drives will be strengthened. It was also agreed to provide immediate solidarity with the unions facing challenges of restructuring. The network elected a representative of the Japanese unions as chairman, while the next meeting is scheduled for the second part of 2012 in Japan.

ICEM Affiliates in Pharmaceutical Sector Strengthen Networking

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The ILO Tripartite Meeting on Promoting Social Dialogue on Restructuring and its Effects on Employment in the Chemical and Pharmaceutical Industries, held from 24-27 October, ended with key conclusions. The purpose of the meeting was to examine best practices of social dialogue, which can facilitate a constructive and conducive atmosphere during restructurings, including mergers and acquisitions. 
 
It was also to adopt conclusions that include proposals for action by governments, employers, and workers&rsquo; organizations, and the ILO. 
 
The meeting was composed of interested governments, 15 employer representatives, and 15 workers&rsquo; representatives appointed by the Governing Body based on nominations submitted by the ILO Director-General after consultations with the respective groups. 
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In addition, representatives of intergovernmental organizations and observers representing certain NGOs also attended the meeting. Coordinated by the ICEM, in cooperation with International Trade Union Confederation (ITUC) and ILO ACTRAV, the workers&rsquo; group elected Tomas Nieber, Chairman of the ICEM Chemical Sector and Head of Department Economic and Industrial Policy for Germany&rsquo;s IGBCE as chairperson, while Alfons de Potter, Vice-President of Belgian CSC Construction, Energy and Industry was selected spokesperson and Linda McCulloch, National Officer of UK&rsquo;s Unite the Union was selected vice-chairperson. ICEM&rsquo;s Kemal &Ouml;zkan was secretary for the group. 
 
The meeting handled eight discussion points: employment changes in both qualitative and quantitative terms occurring in restructuring processes; ILO&rsquo;s Global Jobs Pact implementations; skills and qualifications, as well as vocational training and education programmes that are conducive to sustainable development; making the industries more attractive to young workers and women, and provide better opportunities for long-term career development; challenges and opportunities by contract and agency labour; best practices of social dialogue in facilitating a constructive and conducive atmosphere for better industrial relations during restructuring; role of social dialogue in improving sustainability of small and medium-sized enterprises, contributing to promoting decent work; and possible activities the ILO should take to promote social dialogue and good employer&ndash;employee relations. 
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from left to right: Linda McCulloch, Tomas Nieber, Kemal &Ouml;zkan, Alfons de Potter
Following long deliberations, a <a href="/wp-content/migration/icem/TMCPI-conclusions-2011-En.pdf">set of conclusions</a> were unanimously adopted at the plenary session. It was agreed that &ldquo;social dialogue between worker representatives and employers is a valuable means to manage the process of restructuring in the chemical and pharmaceutical industries, thereby contributing to equitable outcomes for all concerned parties whether at global, regional, national or the enterprise levels.&rdquo; 
 
The groups also underlined that &ldquo;restructuring in the chemical and pharmaceutical sectors should not affect the principles and rights at work as defined by the 1998 ILO Declaration.&rdquo; 
 
An important step forward was achieved on Contract and Agency Labour. The conclusions state: &ldquo;Where the use of contract and agency labour becomes necessary, chemical and pharmaceutical firms should at all times ensure that national occupational safety and health laws, regulations and good practice are applied to this category of workers in accordance with the ILO&rsquo;s fundamental principles and rights at work and relevant international labour standards. Contract and agency workers should enjoy the same fundamental rights at work as the firm&rsquo;s directly recruited workers.&rdquo; 
 
At the meeting&rsquo;s end, ICEM General Secretary Manfred Warda said that workers, employers, and governments worked in a constructive manner with a view to securing employment issues in the chemical and pharmaceutical industries. &ldquo;These conclusions are an important guidance tool for all of us,&rdquo; said Warda. &ldquo;It is now time to make proper follow-up activities for making sure these they have practical applications.&rdquo;

Conclusions Adopted at ILO Tripartite Chemicals, Pharmaceutical Meeting

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Following a full year of negotiations, ICEM German affiliate IGBCE and the Northeastern Chemical Employers Association, or AGV Nordostchemie, reached terms on a trendsetting work-time agreement in Germany&rsquo;s eastern states. 
 
On 2 November, the social partners announced completion of a collective agreement that reduces work-time for both younger and older staff, as well as further harmonizing pay and other remuneration with chemical workers in western Germany. The social contract covers 36,000 employees at some 130 companies operating in the five eastern states. 
 
The key component is creation in 2013 of a monetary fund that employers will subsidize through 2.5% of their total annual payrolls, which will initially come to &euro;30 million. It will be used to maintain wage levels for older workers, age 60 and above, who choose to work one less day every other week. For shift workers of the same age, they have the option to work one day less per week. 
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IGBCE Chief Negotiator Peter Hausmann
The fund will also work for younger workers in order for them to tend to family and child care responsibilities. Their normal 40-hour work week in the east will be reduced by 3.5 hours with a minimal pay cut, but not proportional to the time off. In the chemicals sector in western states, the work week is 37.5 hours and the agreement is seen as harmonizing working hours without loss of pay. 
 
It is also seen as a means to retain skilled workers in eastern chemical enterprises, particularly with 70% of eastern workers between the ages of 44 and 59. The agreement bridges the demographic divide by rewarding older workers with sector knowledge and experience, specifically with the statutory retirement age expected to increase upwards from 65. The agreement also creates a &ldquo;work-time bank&rdquo; that allows staff to accumulate extra hours. 
 
&ldquo;We have agreed on a work-time model that provides a collective response to demographic changes,&rdquo; said IGBCE Chief Negotiator Peter Hausmann. &ldquo;For employees with children or dependents, for shift workers and for our older colleagues, this creates significant work-life opportunities.&rdquo; 
 
And IGBCE Northeast Regional Director Petra Reinhold-Knape said, &ldquo;We put in place a very innovative work-time model,&rdquo; adding the agreement will bring to parity the remaining differences between the east and west by &ldquo;putting more money in the pockets&rdquo; of eastern chemical workers. 
 
That was achieved by lifting eastern workers&rsquo; 13th month Christmas salary payment in two stages to match the 95% that western workers get by 2014. Workers in the east now receive 65% for the 13th month. 
 
As well, pay increases for job levels will be harmonised between east and west. Currently, the wage increases within each level are different, with those in the west 8% higher. Next year, that divide will be halved, with parity coming in 2014, the time when IGBCE and AGV Nordostchemie enter the next round of bargaining.

IGBCE Reaches Novel ‘Work Time’ Pact in Eastern Chemicals Sector

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Union members of Teamsters (IBT) Local 495 approved a long-term agreement with the successor employer to BMW at an auto-parts distribution warehouse in Ontario, California. Local 495 members, who waged a <a href="/en/78-ICEM-InBrief/4570-US-Teamsters-Ardently-Resist-BMW-s-Auto-Parts-Outsourcing">summer-long campaign</a> to retain their jobs after BMW said it would terminate the labour agreement and outsource the operation, ratified a new accord 46-2 on 28 October. 
 
The ratification means that none of the 70 workers currently employed by BMW North America will be laid off and they will begin employment under a logistics company called the 2 AM Group on 1 January with full seniority and full union rights. The contract also contains nearly the same wage and benefit package as currently paid by BMW. 
 
The 2 AM Group is a logistics provider for BMW at assembly plants in the US states of South Carolina and Alabama, and also operates services for the luxury automaker in Munich, Germany, and Puebla, Mexico. 
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Teamsters handbilling in Seattle
This is the first collective agreement for 2 AM Group in the US. 
 
Although the agreement calls for a slight pay decrease from the base US$25-per-hour wage to US$23.50, the upcoming contract contains performance incentives that could lift overall pay. 
 
Local 495 and its Washington, DC-based parent union, the IBT, ran a pressure campaign against BMW in Germany, the UK, and across the US aimed at job retention and continued union representation at BMW&rsquo;s Southern California warehouse. That campaign won partial success on 9 August when the two sides agreed to extend a collective agreement expiring on 31 August for another six months. (Read <a href="/en/78-ICEM-InBrief/4610-Campaign-Action-Wins-US-Teamsters-BMW-Contract-Extension">ICEM report</a> here.)&nbsp; 
 
The new accord with 2 AM completes the victory and proves that active campaigning by a trade union when confronted with workplace restructuring can reverse a company&rsquo;s intended plans. 
 
IBT Director of Global Strategies Tim Beaty expressed the appreciation of the union on behalf of General President Jim Hoffa and Local 495 Secretary-Treasurer Bob Lennox to the trade unions in Europe and the US that helped bring the message to BMW over the summer.

US Teamsters Win Job Security with BMW’s Auto Parts Successor

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Negotiations to end the eight-week strike by 10,000 workers of the PT Freeport Indonesia Workers&rsquo; Union (SP KEP SPSI) at Freeport-McMoRan&rsquo;s Papuan mine complex called Grasberg got back on track today. But union and management at the world&rsquo;s largest recoverable gold and copper deposit are far apart. 
 
Production at the 175,000-ton per day operation has completely ceased due to a road blockade by strikers and family members. The blockade has prevented the US-based company from getting construction crews to a set of slurry pipelines that were ruptured by vandals. 
 
The pipelines carry gold and copper concentrate 114 kilometres from the Grasberg mine 4,200 metres high in the Sudirman Range to the port city of Timika, where today&rsquo;s bi-lateral talks are being held. A diesel fuel line running from the Timika airport up to the mine also has been slashed. 
<img alt="" src="" width="288" height="160" />
Last week an ICEM-led global trade union delegation met separately with both the union and mine managers doing the bargaining. The delegation successfully convinced the union (see <a href="/en/77-All-ICEM-News-Releases/4747-Global-Trade-Union-Delegation-Urges-Restraint-Good-Faith-Talks-to-Resolve-Grasberg-Mine-Strike">ICEM news release</a>) to return to talks, while PT Freeport Indonesia tried unsuccessfully to get the ICEM team to have SP KEP SPSI lift the blockade.&nbsp; 
 
The company said it was stockpiling ore with some 3,000 temporary workers and contractors&rsquo; employees, which is a violation of Indonesian labour law. The ICEM met as well with Indonesian ministry officials and an MP from Papua. In another meeting with a commissioner of the Indonesian National Commission on Human Rights, the delegation was told the strikers are within their rights to engage in strike activity at the blockade points. 
 
But the situation is tense at Miles 27 and 28, the points near Timika were the blockade is in force. Twice last week local police issued 24-hour ultimatums for the strikers and their families to move, or be met with police force. Both times the warnings passed and nothing occurred. The ICEM delegation was told by multiple sources, including members of the union committee, that workers will not be moved and will fight in resistance. 
<img alt="" src="" width="241" height="160" />
Mile 28 Blockade
On Friday, 4 November, police did approach the blockade. Skirmishes broke out and police fired over the heads of strikers before retreating. The stand-off is compounded by mass media reports last week that Freeport-McMoRan was subsidizing local police in the amount of US$14 million for mine security. 
 
When confronted with this by the ICEM, management said it has been completely transparent on these costs and that figure was for 2010. Managers said 2011 security payments to public law enforcement have yet to be calculated. They also said 80% of such costs are for in-kind services, including all-terrain vehicles, food, fuel and other necessities for police. 
 
On 1 November, ICEM North American affiliate United Steelworkers (USW) lodged a complaint with the US Department of Justice over such payments being illegal under America&rsquo;s Foreign Corrupt Practices Act. (The <a href="/wp-content/migration/icem/usw%20fcpa%20freeport%201%20Nov%202011.pdf ">USW letter</a> can be seen here.) 
In Timika, in Indonesia&rsquo;s eastern-most Papua province, the two sides are wide apart. When bargaining halted on 27 October, the company had increased a prior 25% wage offer first to 28% and then to 30%. The union is seeking an average hourly wage of US$7.50, which is some 250% above the current rate US$2.13 for non-staff miners and US3.54 for staff. Some seven other issues also need to be negotiated, including educational assistance, dependent care, housing loans and assistant, and aspects to a savings plan programme. 
 
The PT Freeport Indonesia Workers&rsquo; Union is supporting the 10,000 strikers and their families with five mass open-air feeding kitchens some 500 metres in distance. But supplies are running short and the union&rsquo;s Solidarity Fund is low. This week the ICEM will put a call out to affiliates to replenish that fund in order that the union can continue nourishing strikers and their families.

Grasberg Talks Resume, But Tensions High in Papua, Indonesia

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Swiss trade union UNIA is fighting across the country to reverse the decision of Novartis to &ldquo;restructure,&rdquo; meaning close plants and dismiss 1,100 workers. Mass mobilisation campaigns to fight the decision are gathering momentum and wide support from regional communities, politicians, and international trade unions. 
 
The ICEM marched with 300 Novartis workers of Nyon on 4 November. The march, led by regional UNIA Industry Secretary Yves Defferrard, received extremely strong support from Nyon residents as it passed through the town centre. 
<img alt="" src="" width="150" height="136" />
Yves Defferrard
Many local businesses depend on the wages generated at Novartis. It is predicted 2,000 jobs in Nyon will go if the company closes the plant, ending over 90 years of drug production in Nyon. 
 
What leaves a particular sour taste is the company&rsquo;s long standing emphasis on a positive social impact, portraying itself as a &ldquo;carer&rdquo; and &ldquo;healer.&rdquo; But the restructuring comes at a time of considerable profit for the firm. Novartis workers in Nyon are proud of their work, proud of the products they have discovered, developed, and produced. 
 
Management&rsquo;s shock decision, announced 25 October, to close significant sections of the Nyon and Basle plants came only weeks after Novartis posted third quarter net sales up 18% to US$14.84 billion from US$12.58 billion in the same period in 2010, with net income increasing 7% to US$2.49 billion, from US$2.32 billion in 2010. 
<img alt="" src="" width="184" height="161" />
Novartis plans to cut 2,000 jobs internationally, with 760 at its Basle headquarters and 320 in Nyon. 
 
The ICEM Global Pharmaceutical Unions&rsquo; Network, meeting in Geneva 28 October, conveyed solidarity and support to the UNIA members at Novartis, and this message was announced at the 4 November rally. ICEM General Secretary Manfred Warda wrote to company CEO Joseph Jimenez communicating the anger of ICEM affiliates at the decision, and demanding good faith dialogue with UNIA. 
 
The role of local and federal politicians in the process is vital, especially as it is speculated that a major factor in management&rsquo;s decision to close is an angry retort at Swiss authorities&rsquo; price cutting of pharmaceutical drugs. Even though the Swiss market represents only 1.15% of turnover for Novartis, the company management had reacted angrily to the persistence of Swiss federal councillors in this regard. 
<img alt="" src="" width="221" height="144" />
UNIA achieved a small victory on 3 November in bargaining by pressuring management to publish a detailed audit report for the Nyon site, as figures put forward by the company are questionable. Novartis moved immediately to bring in a high level financial expert from the US to present the numbers. 
 
The next major mobilisation is planned for 12 November in Nyon, if the company continues to pursue its irresponsible redundancy plan. 
 
Novartis Chief Executive Daniel Vasella is the highest paid person in Switzerland, with an annual salary of CHF 40 million. 
 
Sign <a href="http://www.unia.ch/Novartis.6010.0.html?&amp;L=1">UNIA&rsquo;s petition</a> against the Novartis job cuts here.

Swiss Pharma Workers Mobilise Against Novartis Plant Closings

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By a 61% vote on 15 October, members of United Steelworkers (USW) Local 1005 in Hamilton, Ontario, ended U.S. Steel&rsquo;s total chokehold on the livelihoods of 900 Canadian workers. Union members accepted a three-year labour agreement that ends a 49-week lockout at the steel mill. 
 
The agreement means workers will begin returning to jobs tomorrow, 18 October, for week-long health and safety training. The new pact is not altogether satisfactory because it creates a two-tier pension scheme with new hires placed in an inferior plan, and it ends cost-of-living indexing for 9,000 retirees, a key issue in the 14-month dispute.
<img src="" width="218" height="163" alt="" />
U.S. Steel pressured steelworkers into submission by first imposing the lockout on 7 November 2010, and then supplying its Canadian customers from the former Stelco mill in Hamilton with finished steel from American mills. In the end and after nearly one year, most of Local 1005&rsquo;s members were on the verge of losing unemployment insurance funds, which coupled with the USW&rsquo;s C$200-a-week strike benefit gave workers about two-thirds of their normal income. 
 
The agreement contains a C$3,000 ratification bonus, to be paid within 60 days of Saturday&rsquo;s vote, and it also includes a lump sum pay-out of C$1,000 to retirees taking in less than C$1,500-per-month in lieu of annual pension indexing. Active workers will also see reduced cost-of-living annual increases. 
 
A profit-sharing plan for active employees will be implemented in the fourth quarter 2011. It will come from a pool of money totalling 6.5% above C$25 million in earnings from the Hamilton Works and could mean an added C$3,500 in income per worker. Union members will receive credited service for the 11 months of the lockout, meaning some workers will be closer to taking retirement. 
 
All workers will be recalled and they will be guaranteed 26 weeks of employment at 40 hours per week. That countered a U.S. Steel proposal from mid-September in which the company sought call-back language that would have left many workers without jobs long after ratification and the end of the lockout. 
 
In the new agreement, which takes effect today, new hires will not be included in the existing defined benefit pension scheme and placed in a union-administered plan that will see U.S. Steel contribute C$2.50-per-hour worked. 
 
On USW Local 1005&rsquo;s website, union leaders said, &ldquo;We have made a huge effort so that the members can make an informed vote on whether to accept or reject this contract. We wanted to ensure that they are fully aware of the situation they face and of the responsibilities towards not just themselves and their families, but also towards the retirees, the future generation of workers, their union and their community. This whole process has shown that there are serious challenges facing us going forward.&rdquo;

Canadian Steelworkers Ratify U.S. Steel Pact, Lockout Ends

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ICEM Austrian affiliate PRO-GE and GPA djp, the Salaried Employees, Print, Journalism, Paper Union, sent stern warning last week to metal and industrial employers on 2011 wage packages. After second round bargaining failed on 12 October to close pay differences, workers surprised the industry by launching one-to-three hour warning strikes the very next day. 
Some 300 Austrian employers witnessed workers&rsquo; reaction last Thursday to the bosses&rsquo; proposal of a miserly half-percent above the 3.1% offer tabled in the opening round on 4 October. The strikes escalated on 14 October when the unions targeted 60 employers for 24-hour work stoppages. 
<img alt="" src="" width="160" height="160" />
PRO-GE and GPA djp are negotiating on behalf of 170,000 metal, mining, and energy workers in Austria. Workers and their unions are steadfast that 5.5% is due them on 1 November. Their rationale is that productivity gains combined with healthy balance sheets and a September inflation rate of 3.6% warrants nothing less than the 5.5%. 
&ldquo;We know that the money is there,&rdquo; said PRO-GE Chief Negotiator Rainer Wimmer. 
PRO-GE and GPA djp have laid down a precision perfect strategy of rapid mobilization keyed on bargaining developments, or non-developments as was the case last week. The unions held hundreds of meetings with workers inside companies from 5-7 October after first round talks went nowhere, and then they held 400 mobilization meetings on 10-11 October in preparation for the 12 October second round. 
<img alt="" src="" width="105" height="160" />
Rainer Wimmer
Going into Friday&rsquo;s escalated industrial actions, leaders of the two unions offered to continue talks over the weekend but a shell-shocked employers&rsquo; association representative would only say that 20 October is the next scheduled bargaining date. That means more job actions are likely to occur early this week, with the ICEM learning that the number of enterprises in which workers chose strike actions last week grew exponentially. 
Industrial workers realize that a 5.5% wage increase is fair compensation for inflation and a fair share of the expected 2011 economic growth of 3% that has been brought on by industrial productivity. In 2009, during the height of the financial crisis, metal/industrial negotiations produced a 1.45% salary increase, while in 2010 that increase was 2.45%. Now, Austria is posting strong export numbers and purchasing power during the first half of 2011 is on the climb. 
In a joint statement, Wimmer and GPA djp Deputy Federal Director Karl Proyer said, &ldquo;The fact that sustainable wage and salary increases are economically viable means that we can further support and strengthen purchasing power, thus boost the economy of Austria.&rdquo; 
Just some of the workplaces where 24-hour stoppages took place on Friday include the engine-maker MAN in Steyr, Opel assembly at Aspern Airfield, Opel powertrain at Donaustadt, Schindler-Aufz&uuml;ge in Vienna, Doppelmayr chair lifts in Wolfurt, Bosch in Hallein, Magna car parts in Steyr, Andritz AG in Graz, and Salinen AG salt mines in Ebensee.

Wage Shame Drives Austrian Metalworkers into Warning Strikes

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A three-week strike by 4,000 members of the National Union of Metalworkers of South Africa (NUMSA) spilled into the streets of Johannesburg this week, as workers at Xstrata&rsquo;s Boshoek and Wonderkop ferrochrome smelters near Rustenburg took a protest to the Swiss company&rsquo;s Alloys headquarters. NUMSA members presented a petition to company managers demanding wage parity with workers employed at the Xstrata Lion ferrochrome smelter in Tubatse, Mpumalanga province. 
 
Both operations are undergoing big expansions. Xstrata owns 79.5% of the ferrochrome complexes in South Africa, while publicly-listed Merafe Resources holds a 20.5% stake. Both companies also mine chrome in South Africa. 
 
The strike by NUMSA in the North-West province began on 24 October after conciliation efforts by the country&rsquo;s Commission for Conciliation, Mediation, and Arbitration (CCMA) failed. NUMSA and Xstrata Alloys met two days earlier, but a revised pay offer by the company fell short and workers rejected it. 
 
NUMSA is seeking an immediate 10% pay increase for Boshoek and Wonderkop metalworkers and a reduction of job grading systems from eight to five. That would close the wage gap with workers at the Lion smelter and equalize the grading system. Currently, Boshoek and Wonderkop workers earn 14 to 39% less than at Lion, depending on pay grades. 
 
NUMSA is also seeking a housing allowance of R3,500.
<img alt="" src="" width="255" height="169" />
&nbsp;NUMSA President Cedric Gina (rear) has&nbsp;Xstrata's Edwin Hlatshwayo&nbsp;Sign Receipt of Petition
The petition handed to Xstrata Alloys management on 15 November states: &ldquo;(The company) has angered workers and instead of focusing on negotiations, they have decided to apply cheap apartheid-era tactics of bashing members through police intimidation of the strike. NUMSA is very angry that workers who went on a legal and protected strike have been treated like common criminals.&rdquo; 
 
NUMSA President Cedric Gina and Congress of South African Trade Unions (COSATU) Second Deputy Vice President Zingiswi Losi led the march and handover of the petition. The petition asks the company to respond within 48 hours. 
 
Xstrata is world&rsquo;s largest producer of metal alloys, which besides ferrochrome includes vanadium and platinum, and accounts for one-third of total global production. The Boshoek smelter is currently seeing an expansion that will lift production to 240,000-tonnes-per-year by the end of next year. A second smelter, meanwhile, is now being constructed at the Lion operation that will see production double from the current 360,000 tonnes when it goes on line in the first half of 2013. 
 
The Xstrata-Merafe joint venture in South Africa will then yield 2.3 million tonnes yearly of ferrochrome, which is used in stainless steel production.

NUMSA Protests Pay Disparities at Xstrata’s Chrome Smelters

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