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Local 27 members of the Canadian Auto Workers (CAW) union were locked out at the New Year by Caterpillar Inc.&rsquo;s Electro-Motive Diesel (EMD) in a callous display of corporate might that could lead to corporate flight from Canada. The 650 CAW members in London, Ontario, voted by 98% on 30 December for strike action and 24 hours later &ndash; just as they were returning to jobs on New Year&rsquo;s Eve following a holiday shutdown &ndash; they were locked out. 

The lockout indignation comes on the heels of deeper indignation: Caterpillar&rsquo;s EMD &ndash; run as part of the US company&rsquo;s Progress Rail Services Corp. &ndash; attempt to extract unreasonable wage and benefit concessions from Canadian union members as excuse to shift production of electric-powered diesel engines and associated railroad components to a start-up and lower wage plant in Muncie, US state of Indiana. 

EMD began operations in Muncie in October 2011. Until Saturday night&rsquo;s lockout, CAW and EMD had bargained under a seven-month contract extension, something the two sides agreed to in May 2011. However, EMD never once wavered from an initial, hostile and family-wrecking proposal demanding wage cuts from C$35-per hour to C$16.50, health benefits cut in half, and elimination of a pension scheme. 

At the same time, EMD was advertising for a Human Resources manager in Muncie with the stipulation that he/she have &ldquo;experience with providing union-free culture and union avoidance.&rdquo; 

EMD is paying average salaries between US$12-16-per hour in Muncie. Caterpillar and its wholly-owned Progress Rail Services is seeking to dislodge General Electric&rsquo;s (GE) Transportation Division as the US&rsquo;s premiere supplier of train locomotives at a time of government stimulus funding for infrastructure and transport needs. GE operates three major rail division plants that are unionised and pay average salaries of US$30-per hour or more. 

EMD&rsquo;s London, Ontario, plant was purchased by Caterpillar in August 2010 for US$820 million from Greenbriar Equity Group and Berkshire Partners. The two capital companies in turn bought the manufacturing plant in 2005 for a quarter of that amount from General Motors when GM was shedding its non-auto making businesses.
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CAW President Ken Lewenza&nbsp; 

Then, Caterpillar was interested in buying the southwestern Ontario plant but CAW opposed the deal because of Caterpillar&rsquo;s horrid labour relations record in the US. Now, with Caterpillar in control and deploying obvious whipsawing of CAW members against non-union Muncie workers that will number 650 this year, CAW Local 27 is forced to blockade the London plant to prevent equipment from leaving for the Indiana city 350 miles to the south. 

On Saturday, CAW President Ken Lewenza called the lockout &ldquo;a serious attack on working people, their families and the greater community of London. 

&ldquo;If (Caterpillar) is not going to do business in Canada, this wage cut is designed as a mechanism to blame workers,&rdquo; Lewenza said in a published report, referring to production flight and a possible plant closing. In mid-December, the CAW lodged a formal complaint with the government over Caterpillar&rsquo;s violation of the Investment Canada Act. 

EMD has other railroad manufacturing facilities in Sete Lagoas, Minas Gerais state, Brazil, and Sahag&uacute;n, Hidalgo state, Mexico, a facility it operates jointly with Bombardier. EMD sells locomotives, replacement parts, and diesel powered engines for marine propulsion, oil drilling and power generation in 130 countries, and currently has major contracts with companies providing equipment for state railways in Egypt, Saudi Arabia, and South Africa. 

Caterpillar&rsquo;s deep contract concession proposals, the lockout, matched with lucrative incentives from Indiana&rsquo;s anti-union state government for the Muncie start-up are a cause of great concern, particularly for two countries that each lack socially-minded industrial policies in the wake of a financial crisis.

CAW Members Victimized in Lockout by Caterpillar’s Rail Division

The International Federation of Chemical, Energy, Mine and General Workers&rsquo; Union (ICEM), a Geneva, Switzerland-based global union federation represented rubber workers across the world, announced today that it would lend its full support to the National Union of Metalworkers&rsquo; of South Africa (NUMSA) in its fight to keep Bridgestone South Africa compelled to wage terms negotiated in the New Tyre Manufacturing Employers&rsquo; Industry Association (NTMEIA). 
 
South African management of the Japanese-based company locked out 1,200 members of NUMSA at two former Firestone tyre producing plants, Brits and Port Elizabeth, on 22 March. At issue is Bridgestone South Africa&rsquo;s defiance of a private&nbsp;arbitrator's award that the tyre manufacturer is bound to certain wage terms contained in a three-year collective agreement that was negotiated between NUMSA and NTMEIA that ended a 30-day strike against four tyre producers on 29 September 2010. 
 
In a 31 March letter to Bridgestone South Africa CEO Kenji Shoda, ICEM General Secretary Manfred Warda said, &ldquo;Please know that the current situation in Brits and Port Elizabeth will be communicated to all Bridgestone facilities throughout the world and if your current labour relations conduct is not halted, we will begin to mobilise within these facilities.&rdquo; 
 
The ICEM will support NUMSA as it ramps up a campaign against Bridgestone inside South Africa. And it will take that campaign into Bridgestone tyre plants from Japan and throughout Asia, to Europe and in North and South America. The ICEM is adamant that wage rates negotiated by the NTMEIA for 4,000 other rubber workers at Continental, Goodyear, and Apollo-Dunlop factories in South Africa also be instituted at Bridgestone&rsquo;s two factories. 
 
The ICEM is the global union federation for 20 million workers in the energy, chemical, rubber, mining, and other industrial sectors. It is composed of 467 trade unions in 132 countries. 
 
For further information, contact ICEM Information Officer Dick Blin, <a href="mailto:dick.blin@icem.org">dick.blin@icem.org</a>, +41 22 304 1842, +41 79 734 8994.

Global Union Federation Supports Besieged Tyre Workers in South Africa

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Labour strife broke out late last week at Kumho tyre plants Korea. Members of the Kumho Tyre Workers&rsquo; Union, affiliated to the Korean Metal Workers&rsquo; Union (KMWU) and the Korean Confederation of Trade Unions (KCTU), staged a one-day warning strike on 25 March at two of three Kumho plants in Korea &ndash; Gwungju and Gokseong. 
 
Management immediately retaliated that day and on 26 March with a lockout. When some 3,400 workers at the two plants in southwestern Korea tried to return to their jobs, Kumho managers insisted they sign individual agreements pledging not to strike. 
 
The KMWU branch unit issued a statement calling on Kumho to negotiate over a set of disputed issues, and said, &ldquo;The company forced union workers to confirm that they would not take part in (further) strikes.&rdquo; The Kumho Tyre Workers&rsquo; Union is strongly encouraging workers not to sign the statement and not to return to work while the lockout is in force. 
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Kumho&rsquo;s Gwungju Tyre Plant, 25 March
By a 72% vote count, rubber workers on 10 March voted to launch the warning strike. Central among issues is management&rsquo;s refusal to negotiate paid time-off inside the factories for KMWU branch leaders to handle grievances and perform other union business. The union also seeks labour-management dialogue in order to cut excessive noise pollution in the factories, and wants revisions to severance packages. 
 
Kumho, a subsidiary of the Kumho Asiana Group, has shed a great number of jobs over the past two years due to a heavy debt burden and shifting of work to start-up plants in China. Earlier last week, Kumho was hit by a massive recall of tyres made in those Chinese plants because recycled content exceeded the allowable requirements. 
 
Kumho is Korea&rsquo;s second largest tyre manufacturer and the world&rsquo;s tenth biggest. Workers at the company&rsquo;s third tyre plant in Korea, in Pyeongtaek, Gyeonggi province, where the KMWU also represents staff, are not affected by the current labour strife.

Warning Strike Leads to Lockout at Kumho Tyre Factories in Korea

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The United Steelworkers (USW) in North America has created a Unity Council around the Evraz Group, the world&rsquo;s tenth largest steel producer that is controlled by holding companies connected to Russian oligarch Roman Abramovich. The steelworkers&rsquo; network was formed last week at meetings in the US, and initially will include USW local unions representing 2,600 workers in the western US and western Canada. 
 
The Unity Council is expected to expand globally with the help of ICEM and its coal-mining affiliate in Russia, trade unions in South Africa, and the assistance of the International Metalworkers&rsquo; Federation (IMF) and its affiliates at steel and related mills in Russia, Ukraine, Italy, and the Czech Republic. The company is also expanding in Kazakhstan. 
<img alt="" src="" width="100" height="132" />&nbsp;&nbsp;&nbsp; <img alt="" src="" width="100" height="132" />
Steve Hunt, Robert LaVenture
Formation of the council &ldquo;is an important step in bringing workers together across borders to share information, strategies, and plans with respect to a common employer,&rdquo; said Unity Council Chairman and USW Region 12 Director Robert LaVenture. &ldquo;Workers across international boundaries know that they need to work together to balance our interests against powerful global companies like Evraz.&rdquo; 
 
The USW represents workers at steel pipe and tubing mills in Pueblo, Colorado, and in Calgary, Alberta, and Regina, Saskatchewan. 
 
&ldquo;Ultimately, we would like to see a worldwide group of Evraz workers that is able to meet regularly and work to ensure that the company&rsquo;s workforce, regardless of country or nationality, is treated fairly and has strong union representation,&rdquo; added USW Western Canadian Region Director Steve Hunt. 
 
Luxembourg-based Evraz has nine steel mills, five iron ore operations, several coal deposits, and other mine and mill operations, including Highveld Steel and Vanadium in South Africa. 
 
The ICEM&rsquo;s familiarity with Evraz centres on the company&rsquo;s major stakes in the Russian coking coal mines of Yuzhkuzbassugol and Raspadskaya, the latter one which saw 90 miners perish in a methane gas blast in May 2010. At Yuzhkuzbassugol, a similar explosion killed miners of ICEM affiliate Russian Independent Coal Miners&rsquo; Union (ROSUGLEPROF) in 2007. (See the <a href="/en/78-ICEM-InBrief/3781-Russian-Mine-Disaster-Restates-Immediacy-for-ILO-Convention-176 ">2010 ICEM report</a> and the <a href="/en/78-ICEM-InBrief/2273-Another-Coal-Mine-Blast-in-Russia’s-Kuzbass-Kills-39-Miners ">2007 ICEM report</a>.)

Steelworkers Form ‘Unity Council’ for Evraz Metal, Mine Workers

<img src="" width="100" height="39" alt="" />
From: International Metalworkers&rsquo; Federation 
 
The 50,000 workers, students and human and labour rights activists who took part in the February Global Days of Action are gearing up for another round of mass mobilizations to fight proposed labour legislation that further strips Mexican workers of the most basic internationally recognized labour rights. 
 
News of the proposed <a href="http://www.imfmetal.org/index.cfm?c=26016&amp;l=2">regressive reforms</a> comes just weeks after unions from more than 40 countries participated in an active week of massive rallies, marches and high-level government meetings to shine a light on the Mexican government's failure to uphold international commitments to respect basic labour rights and worker protections. 
 
The proposed legislation which greatly undermines freedom of association, job security, and work conditions, fails to include any of the many changes to Mexican labour legislation that have been repeatedly called for by the ILO Committee of Experts on the Application of Conventions and Recommendations and more recently, on 23 March, the <a href="http://www.ilo.org/gb/GBSessions/lang--en/docName--WCMS_153533/index.htm">359th Report</a> of the ILO Committee on Freedom of Association, which contains the International Metalworkers&rsquo; Federation&rsquo;s (IMF) Case No. 2694 that has the Committee&rsquo;s conclusions and instructions to the Mexican government, pages 197-243. 
 
In Mexico, preparations at the national level are underway. Public events planned in Mexico include: 
&bull; A rally that was held on March 24 at 1pm; 
&bull; A forum on March 30 to debate regressive nature of reform and strategies for resistance and change; 
&bull; Educational material development and strategic meetings are being held throughout the week. 
 
To join the campaign, the IMF is urging affiliates and others to send letters to their local Mexican embassy or consulate or government representative, especially those individuals who took meetings with union groups during the February Global Days of Action. See <a href="/wp-content/migration/icem/IMF-ltr-Mexico-Labor-Law-Reform.pdf ">IMF's letter</a> here to serve as model.

Proposed Mexican Labour Law Reform Opposed; Action Needed

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The beginning of a Latin American network for Vale workers took root in Peru from 9-11 March, when 35 trade union representatives from six countries met in the city of Piura to discuss common problems and joint strategies to combat the anti-social policies of the Brazilian mining company. 
 
The meeting was sponsored by the US Solidarity Center and its Peruvian and Brazilian offices, and hosted by the ICEM Latin American/Caribbean Region and the ICEM affiliate, the Peruvian National Miners&rsquo; and Metalworkers&rsquo; Union (FNTMMSP). 
<img alt="" src="" width="220" height="143" />
The Piura department in northern Peru is where Vale intends to supply its entry into agri-business following last year&rsquo;s purchase of Bunge&rsquo;s Fosfertil subsidiary in Brazil, a manufacturer of fertiliser. Vale has recently begun production at the Bay&oacute;var mine, a phosphate development that is under its Peruvian subsidiary, Minera Miski Mayo. 
 
Union representatives from Argentina, Brazil, Canada, Colombia, Peru, and the US were present, and serious discussion occurred over Vale&rsquo;s social conduct throughout the world. The Canadian representative was from United Steelworkers Local 6500 in Sudbury, Ontario, and he told of Vale&rsquo;s anti-people policies following the purchase of Inco nickel mining and smelting assets in 2006 and a subsequent 360-day strike by 3,500 steelworkers in 2009-2010. 
 
ICEM Regional Vice President Sergio Novais chaired the meeting, and besides several FNTMMSP delegates attending, participants also included Brazilian union leaders from CNQ/CUT, the chemical workers&rsquo; union; SINDIMINA, a Brazilian mineworkers&rsquo; union representing Vale miners; STEFAM, a union of railway workers at Vale mines and other workplaces; and STIQUIFAR, a chemical, pharmaceutical, and agri-chem union.

Workers’ Network Meeting of Vale Convenes in Peru

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Some 2,000 iron ore miners and pellet-plant workers in northern Qu&eacute;bec, members of four United Steelworkers (USW) locals, came to excellent wage, pension, and work terms with ArcelorMittal Mines Canada. 
 
The six-year agreement, ratified by 75% of union members on 3 April, came after arduous bargaining dating to last November. A prior labour agreement in Qu&eacute;bec&nbsp;between the USW and the world&rsquo;s largest steelmaker expired in February. 
 
The contract will give hard-rock miners and processing-plant workers a 45% pay increase over the six years, inclusive of enhanced bonuses and hefty improvements to the yearly cost-of-living adjustment. The hourly wage increase will average 4.1% per year, and 25.6% over the six years. 
<img alt="" src="" width="105" height="160" />
USW Region Five Director Daniel Roy
Additionally, USW Qu&eacute;bec region and local branch negotiators withstood a management affront to create a two-tier pension scheme, with a proposal to cast new hires into a defined contribution plan. Not only did the bargaining units retain a defined benefit pension plan, but they made improvements to it as well. 
 
Workers with 30 years of service will realise a monthly increase of C$210 per month, or 18%, and the union negotiated a 3% increase for current retirees. Steelworkers under the new agreement are employed at the Mont-Wright and Firelake mines near Fermont in northern Qu&eacute;bec, along a 400-kilometre rail link, and at an ArcelorMittal&nbsp;pellet plant at Port-Cartier on the Gulf of St. Lawrence. 
 
&ldquo;This employment contract reflects the mining boom currently underway in the north coast and Qu&eacute;bec region,&rdquo; stated USW Region Five Director Daniel Roy. &ldquo;It is also the product of difficult negotiations, during which the committee showed determination and solidarity. 
 
&ldquo;I invite non-unionised mine workers a take a look at what we accomplished at ArcelorMittal Mines.&rdquo; 
 
The labour agreement contains new restrictions on outsourcing by strengthening the union-rostered stability list. Luxembourg-based ArcelorMittal purchased the iron ore assets in 2006 from Qu&eacute;bec Cartier Mining Co., then owned by an investment company. ArcelorMittal produces 40% of Canada&rsquo;s iron ore output.

Steelworkers Achieve Exemplary Labour Pact with ArcelorMittal in Québec

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Two weeks after a pair of Norwegian unions, together with&nbsp;ICEM and the&nbsp;International Metalworkers&rsquo; Federation (IMF) signed a Global Framework Agreement (GFA) with Norsk Hydro ASA, two workers&rsquo; representatives of the aluminium and energy company&rsquo;s board of directors journeyed to Par&aacute; state in northern Brazil to brief workers and trade union leaders there. 
 
Sten Roar Martinsen, a process operator and full-time union representative from the Kopervik extrusion plant, and Billy Fredeagsvik, also an operator and union representative at Hydro&rsquo;s H&oslash;yanger aluminium smelter, met with workers&rsquo; representatives of Brazilian trade unions on 30 March and 1 April. Martinsen and Fredeagsvik are representatives of the Norwegian Confederation of Trade Unions (LO) on Hydro&rsquo;s 11-member board. 
<img alt="" src="" width="100" height="150" />&nbsp;&nbsp;&nbsp; <img alt="" src="" width="100" height="150" />
Sten Roar Martinsen&nbsp;&nbsp; &nbsp;Billy Fredeagsvik
The mission, according to Norsk Hydro&rsquo;s website, was to brief Brazilian workers at a former Vale bauxite mine and aluminium smelter and refinery on the structure and principles for trade union dialogue at Hydro, as well as the impact and significance of the GFA that was signed on 15 March. 
 
In late February, Norsk Hydro concluded the purchase of Vale assets in northern Brazil for US$3.5 billion. Those assets include a 51% stake in the aluminium smelter Albr&aacute;s in Barcarena, Par&aacute; state, 57% of the Alunorte refinery, and a 61% stake in the future Companhia de Alumina do Par&aacute; (CAP) alumina plant, which will start up in 2012. A Japanese consortium of 17 companies holds the minority stakes in these companies. 
 
Also, on 30 March, Martinsen and Fredeagsvik met with union leaders at the former Vale bauxite mine Paragominas. As part of the deal, Hydro bought 60% of the 9.9 million tonne mine, as well as other bauxite mineral rights of Vale in Brazil. Hydro will now call its Brazilian mining assets&nbsp;Minera&ccedil;&atilde;o Paragominas. Hydro will purchase the remaining 40% in 2013 and 2015 for US$200 million in each year. 
<img alt="" src="" width="240" height="52" />&nbsp;&nbsp;&nbsp; <img alt="" src="" width="80" height="107" />
The Norwegian board members also discussed local issues with Par&aacute; state workers including access to housing in the rural areas, and health and education. 
 
&ldquo;This was an important first step,&rdquo; said Martinsen, &ldquo;towards establishing the right framework for including our Brazilian colleagues in Hydro&rsquo;s internal arenas for dialogue, to ensure that the interests and views of all employees in Hydro are represented in the appropriate forums and decision-making processes.&rdquo; 
 
Added Fredeagsvik, &ldquo;Through these initial meetings, we have created a solid foundation for further work together. The meetings have been interesting, positive, and highly constructive.&rdquo; 
 
Besides ICEM and IMF, Norwegian trade unions IndustriEnergi and Fellesforbundet are signatory to the GFA.

Norsk Hydro’s Worker Reps Talk with Trade Unionists in Brazil

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A long and drawn out court battle in Chhattisgarh state, India, saw exploited contract workers of Holcim Cement again win regularisation of their jobs in March through a High Court appeals ruling. But Holcim Cement of Switzerland is refusing to implement the court&rsquo;s order. 
 
The result is that hundreds of contract workers at one of Holcim&rsquo;s Indian subsidiaries, Associated Cement Co. Ltd. (ACC), and supporters are staging an ongoing&nbsp;&ldquo;dharna,&rdquo; or strike at the Bhilai Industrial Estate statue of Shankar Guha Niyogi, the legendary workers&rsquo; leader and founder of the Chhattisgarh Mukti Morcha (CMM) political party who was assassinated in 1991. 
<img alt="" src="" width="120" height="150" />
Shankar Guha Niyogi
The CMM-associated labour union Pragatisheel Cement Shramik Sangh is carrying the struggle for the contract workers, much like Niyogi did for irregular workers in mining, metalworking, and textiles three decades ago. 
 
The rightful fight for contract workers at ACC Jamul Cement to gain full wages, provident fund benefits, and even proper safety equipment dates back nearly 20 years. Holcim bought controlling interest in ACC and Ambuja Cement in 2006-2007 and has continued resistance to the legitimate rights of contract workers at its Indian cement plants. 
 
In 2006, an Industrial Court ruled that some 573 contract workers at ACC Jamul, many subsequently fired, must be made regular employees, with their wages and working conditions tied to the Cement Wage Board, or the&nbsp;Nevatia Award. Holcim, Lafarge, the Aditya Birla Group&rsquo;s Ultratech, and other major cement producers are tied to the Wage Board by hard fought strikes of the past. 
 
The Wage Board agreement has tight restrictions on the use of contract labour, limiting it to loading and unloading raw materials but with pay at the same rate as permanent workers. 
 
Holcim defied the Industrial Court&rsquo;s ruling by paying only between two-to-five days salary per month &ndash; at US$2 per day &ndash; because that is how few days contract workers were on the job at the time of the Industrial Court filing because Holcim was trying to get them to resign. 
 
Pragatisheel Cement Shramik Sangh filed a writ petition with the High Court, and that portion of litigation is still pending. However, on 21 March, the High Court did rule that the paper arrangements between irregular workers and Holcim&nbsp;are &ldquo;sham and bogus&rdquo; and directed management&nbsp;to regularise over 100 contract workers. However, the ruling neglected to recognise the rights of about 400 who were coerced into accepting voluntary resignations. 
 
India is the world&rsquo;s second largest cement producer behind China. The country has an annual growth rate in cement of 11%, which has seen the leading cement producers make major investments and acquisitions. 
 
But multinationals like Holcim and Lafarge are doing nothing to stabilise employment and bring decent work to&nbsp;rural people who are recruited and then exploited as contract workers. Alone in Chhattisgarh state in central India, it is estimated that 3,200 permanent workers are employed in the cement industry, while 11,000 others toil as short-term, expendable contract workers.

Holcim Defies India Court Ruling on Rights for Contract Workers

ICEM HIV/AIDS e-bulletin - No. 67, April 2011

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