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IndustriALL Shell Global Union Network Meeting

1 October, 2015Meeting in Singapore on 29-30 September 2015, some 60 union leaders and representatives from 22 countries in each continent of the world representing Shell employees announced formation of a Global Union Network to fight back.

The meeting came just after Shell announced its plans to cut 6,500 jobs because of declining oil prices. The price drop is causing a wave of job cuts through the industry. Likewise some other oil production and service companies such as Chevron, Halliburton, Baker Hughes, Centrica made similar decisions. According to industry circles, it is estimated that 100,000 layoffs will happen within this year due to oil prices.

Shell is a multinational group of energy and petrochemical companies headquartered in the Hague, the Netherlands. The Shell group’s parent company is Royal Dutch Shell plc, which is incorporated in England and Wales. Employing around 90,000 workers, Shell operates in more than 70 countries producing 3.1 million barrels of oil equivalent every day.

The participants of the meeting analyzed characteristics of the oil industry and the general situation at Shell through a presentation made by representatives from FNV of the Netherlands. The industry is still capital intensive, labour costs are relatively low, focusing on core activities on a global scale, outsourcing non-core work to low cost service providers, wanting to generate value for shareholders, however needing “License to Operate” which requires a good reputation.

The meeting discussed and exchanged participants’ information and experience on labour relations, trade union situations and industrial relations at Shell operations throughout the world. Common challenges were confirmed among Shell unionists, such as increased precarious work of “non-core” jobs, challenges and tough barriers to proper collective bargaining processes, and a lack of information and consultation. It was noted that even in the Netherlands union density is not more than 20 per cent.

Representatives from United Steelworkers of North America briefed the meeting about the struggles during the 2015 contract negotiations with Shell. The participants heard that there were two major items, contract employees and contract language. After the failure of negotiations, 3,000 workers, 10 per cent of the industry, went on strike. After days of the strike, an agreement was reached on contract employees and inclusion of retrogression language. However labour relations at Shell operations in the US since the strike are tense.

When Pakistani participants reported their union situation, the participants were outraged by Shell’s union-busting attempts after the formation of Insaf Shell Workers’ Union and the new union’s wish to contest an election for a new collective bargaining agreement. The local Shell management filed an appeal against the registration of the union claiming that 300 workers have no right to form a union. The meeting unanimously adopted a solidarity declaration on the situation in Pakistan.

On top of forming the global union network, the meeting discussed and adopted an action plan which includes operating the Shell union network effectively and constructively, establishing effective communication through emails, a Facebook page, and building up a database of working conditions at Shell operations. The network will also explore the possibility of fund-raising for international solidarity, and seek interaction with company management.

The meeting selected a Steering Committee to conduct activities of the network that will be composed of representatives from the Netherlands (representing Europe and as overall coordinator), United States (North America), Singapore (Asia Pacific), Argentina (Latin America), Iraq (MENA), and Ghana (Sub-Saharan Africa).

The second meeting of the Shell global union network is planned to take place in the Netherlands in 2016 again through the support provided by the Friedrich-Ebert-Stiftung (FES).

“The Singapore meeting is an excellent kick-off for building union power at Shell operations worldwide,” said Kemal Özkan, Assistant General Secretary of IndustriALL Global Union. “It is already time for Shell workers to fight back against many challenges and the deterioration of employment conditions”.