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China's second worst coal mine disaster in modern history came on 17 August 2007, when 181 miners were trapped and died inside two mines in the Shandong Province. The tragedy was the result of both flash flooding and negligence by privately-owned Huayuan Mining Co. when a levee broke on the nearby Wenhe River. 
 
Two smaller mines in the same area were evacuated due to heavy rains near the town of Xintai, in this eastern Chinese province. But Huayuan company officials kept mining operations going in crowded mine shafts, some 860 metres below the surface. A total of 584 miners managed to escape the flash flooding, after a 50-metre wide gap in the levee gave way adjacent to the mine. 
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It is believed this mine disaster only trails a February 2005 gas explosion at the Sunjiawan coal mine in Liaoning Province, killing 214 miners, as China's worst mining tragedy. 
 
In the days following the Huayuan coal mine disaster, at least three other mining accidents in China claimed the lives of another 22 miners. 
 
On 23 August, a water break at a coal mine in Panzhihua city, in the south-western province of Sichuan, drowned eight miners. A gas explosion on 24 August at the Xinglong Mine in Chongqing claimed the lives of seven miners, while 18 others escaped. 
<img height="101" src="/sites/default/files/migration/icem/ICEMminingsector5.jpg" width="100" alt=""/>
And on 25 August, another gas blast killed seven. That occurred at the Liyuan coal mine in Huolin city, Inner Mongolia. The Liyuan mine was undergoing reconstruction and should not have been producing coal. 
 
China's State Administration of Work Safety (SAWS) Director Li Yizhong has targeted closure of another 1,000 small mines by the end of the year, bringing up to 10,000 the number of such mines officially closed. These mines are defined as producing less than 30,000 tonnes per year, and are generally considered as unsafe or operating illegally. 
 
In contrast, the Huayuan mine in Shandong Province, which was state-owned until 2004, produces between 600,000 and 700,000 tonnes of coal per annum.

Floods Kill 181 in China's Second Most Deadly Mine Disaster

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Australia will be left with only one tyre manufacturing plant at the close of 2008, following Goodyear Tire and Rubber Co.’s decision to close its wholly-owned subsidiary, South Pacific Tyres. The company announced on 26 June that 600 rubber workers will lose their jobs when its Somerton car and light truck tyre operation shuts in the northern suburbs of Melbourne, Victoria. 
 
The decision is blamed on imports, the high value of the Australian dollar, and supplier contracts that allow manufacturers the option to demand lower prices during the life of a supply contract. Australia’s National Union of Workers (NUW), the union representing the majority of Somerton’s workers, said the closure could cause a ripple effect costing 2,000 other jobs in some 130 other supplying companies. 
 
The NUW blamed South Pacific for closing a heavy truck tyre plant in Australia in the year 2000. The union said the company missed out on the opportunity to capitalise on the current mining boom, with manufacture of heavy tyres for trucks and equipment servicing that sector.
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“They showed a lack of foresight then, and are lacking foresight now by acting ahead of a refocusing of Australian automotive that should deliver a sustainable future for local industry based on production of more efficient and greener vehicles,” said Antony Thow, NUW’s Victoria Secretary. 

Australia is currently undergoing a review of the automotive sector by former Victoria Premier Steve Bracks. His commission is aimed at revamping the country’s Automotive Competitiveness and Investment Scheme, as well as a green car fund proposed by the Kevin Rudd government. The Bracks Commission is examining whether to retain the 10% tariff on imports beyond 2010, or half it to 5%, as recommended by the Productivity Commission. 

The Somerton plant produces Dunlop, Goodyear, and Olympic tyres, and supplies 100% of Ford’s new car tyres, as well as a product to Toyota. It also sells to major retail outlets in the after-market. The plant opened in 1961 and currently produces 10,000 units per day. 

Goodyear took a 50% stake in South Pacific with Pacific Dunlop in 1987. The American company retained that stake when Ansell Ltd. bought Pacific Dunlop’s assets. And then in January 2006, Goodyear bought Ansell’s 50% stake for US$90.3 million.
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In first quarter 2007, Goodyear shuttered a South Pacific tyre plant near Wellington, New Zealand, costing 430 unionised workers their jobs. The Somerton closing, in which workers are expected to receive up to 18 months in severance payments through their enterprise labour agreement, is part of a Goodyear restructuring to achieve US$150 million in costs savings by reducing tyre production by 25 million units per day. Somerton accounts for three million annual units, and Goodyear will realise a US$35 million in costs savings. 

Following 31 December 2008, Australia’s lone remaining tyre production facility will be the Bridgestone Salisbury plant near Adelaide, South Australia.

Goodyear to Close South Pacific Tyre Plant in Australia at End of 2008

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The seven unions representing more than 3,000 workers at a Michelin tyre plant in the northern Spanish province of Alava have united behind a comrade stricken with Mesothelioma. The unions last week sent a petition to both the company and to the regional Institute of Work Security to trace the presence of asbestos in the 42-year history of the plant. 
 
The Michelin plant is in the city of Vitoria and manufactures 36,000 units per day of car and heavy equipment tyres. In early June, the regional health and safety authority reopened an investigation after a worker employed by Michelin for 30 years was diagnosed with the cancer caused by asbestos exposure.
<img height="79" src="/sites/default/files/migration/icem/SpainFlag.gif" width="120" alt=""/>
Workplace representatives of ICEM affiliates CCOO and UGT were joined by five other unions in the call to clarify the causes of the illness. Michelin denies that it currently uses or has any form of asbestos in the plant, but the company did import the product in years past to insulate the factory’s heating pipes. 
 
The Vitoria workers, through their union representatives, sent a pledge of solidarity to the stricken worker, as well as committed to conduct voluntary tests of other workers and to assist in the investigation in any way possible.

Unions Mount Pressure on Cause of Asbestos inside Spanish Michelin Plant

ICEM Contract and Agency Labour Newsletter

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Despite earlier opposition by Denmark, Germany, Ireland, Poland, and the UK, which have stubbornly opposed any compromise agreement for the past five years, the EU’s Employment and Social Affairs Council agreed on 10 June 2008 to a draft Directive on Temporary Agency Workers. 
 
Temporary agency work has continued to swell, there can be no denying that. In Denmark, Italy, Spain, and Sweden, for example, it has increased five fold over the past 20 years. In most other EU nations, it has at least doubled in recent years. Each year, some six million workers in the EU are newly registered with agencies. 
 
And in the new member states, it is crucial that minimum employment regulations are established to avoid undercutting already set standards in pay and working conditions.
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More and more, companies are utilising temporary agency workers to cut costs and to increase flexibility, such as allowing them to adjust staffing needs at short notice. 

Employers can find workers with specific skills, when and as needed, without recruitment expenses, or when restructurings or downsizing occurs. 
 
In general, agency workers tend to be less satisfied with their jobs and work conditions than permanent staff. They also tend to have less control over their work, receive less training, have higher accident rates, and perform more shift work than permanent workers. Mostly, they get lower wages for similar work, and are excluded from bonuses and benefits. They also have less job security. 
 
The EU Directive would set minimum European-wide standards that create a level playing field for all companies in all member-states. The Directive is also aimed at stimulating the EU as a knowledge-based economy. 
 
The draft Directive currently states that temporary agency workers must not be treated less favourably regarding basic work conditions (pay, working time, rest periods, holidays, etc.) than permanent workers doing “comparable” work, a principle that would apply as of day 1. 
 
Exceptions would be permitted to this principle where the social partners come to an agreement at the national level, as recently happened in the UK, for example, where agency workes are to get equal treatment after 12 weeks, six more than what is proposed in the EU Directive.

European Directive on Agency Work Gets Closer to Passage

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Manpower, the second largest employment agency in the world, has announced the creation of a “Manpower Equaltreatment” subsidiary in Germany. 
 
Thomas Reitz, the head of Manpower-Germany explains: “We have recently set up this new subsidiary, Manpower Equaltreatment Gmbh, in which temporary workers will be paid at the same level as the permanent workers of the companies where they work. Other conditions and benefits will also be similar.”
<img height="62" src="/sites/default/files/migration/icem/GermanyFlag.gif" width="100" alt=""/>
  
 
In doing this, Manpower has given a powerful signal to employers everywhere that the climate regarding temporary work is changing. 
 
“We want to remain attractive as an agency, and there is a demand for these kinds of solutions,” continued Reitz. 
 
Some collective work agreements within Germany’s major industrial enterprises like Audi, BMW, and Airbus already call for temporary and permanent staff to have similar pay and conditions. 
 
Calls for the “equal pay for equal work” motto in all German enterprises are reinforced by a recent campaign by ICEM affiliate IGBCE and other major trade unions in Germany, which is putting pressure on companies to grant equal pay to temporary workers.
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Manpower estimates that its new Manpower Equaltreatment subsidiary will employ several thousands of temp agency workers in the next few years. It will provide both high-skilled specialty staff and also less-skilled workers. “Companies prefer good agency workers,” concluded Thomas Reitz, (because) they hope they later become permanent staff, so they need a good pool of workers to choose from.

Equal Pay for All Workers Gains Ground in Germany

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A four-day strike by 10,000 workers of the Petroleum Tank-Truck Drivers’ Branch of ICEM affiliate NUPENG in Nigeria was suspended this morning, 14 July, for two weeks. A memorandum of understanding was reached in a four-hour meeting Saturday between the union and Ministry of Petroleum, calling on all parties to meet tomorrow, 15 July, in Abuja in efforts to resolve a range of issues. 
 
NUPENG President Peter Akpatason said if the talks beginning Tuesday are not successful, the union will not hesitate to renew the strike on 28 July. “This is a matter of drivers’ welfare,” said Akpatason. “We will not tolerate high petrol prices, inadequate roads and access to and from refineries and depots, and a continuation of the low salaries that drivers receive.”
<img height="120" src="/sites/default/files/migration/icem/NupengAkpatason.jpg" width="160" alt=""/>
 NUPENG President Peter Akpatason
The ICEM is supportive of the drivers’ demands, and urges the various government ministries, as well as the handful of employers’ groups to accede to NUPENG’s agenda tomorrow to bring safety and security to Nigeria’s roads and fair pay to petroleum tank-truck drivers. 
 
On Saturday, the Ministry of Petroleum agreed to begin the process to reduce the price of diesel fuel, just one of several issues that brought on the 10 July strike. NUPENG had given two separate ultimatums to resolve issues, a 21-day one at the end of May and a seven-day one on 3 July.
<img height="101" src="/sites/default/files/migration/icem/Nigeria.png" width="220" alt=""/>
Tomorrow’s meeting is expected to include officials from the Ministry of Petroleum, Ministry of Finance, Ministry of Transport, Ministry of Labour and Productivity, Ministry of Work and Housing, and the State Security Services, as well as road police senior officers. It will also include top officials from the Nigerian National Petroleum Corp. (NNPC), the National Association of Road Transport Owners (NARTO), independent fuel-oil marketers, and other transporters. 
 
According to Saturday’s memorandum, the meeting is intended to set guidelines on lowering diesel fuel and kerosene prices. Discussion is also expected to establish a firm timetable to improve highways and access roads around refineries and duel depots. 
 
The issue of salaries will also be heard. NUPENG’s three-year collective agreement with NARTO expired in May and average pay for drivers has been stuck at NGN 10,500-per-month (US$100) since 2005. With overwhelming inflation in the country, NUPENG is seeking an increase in salaries to between NGN 30,000 and 40,000 per month. 
 
NUPENG contends that the deplorable state of roads has caused accidents, deaths, and horrendous losses of productivity and time away from families. The high cost of fuel has made petroleum product distribution unprofitable, with severe hardships placed on small businesses and citizens alike. NUPENG is calling on NNPC and the government to halt the sale of petrol products to middle-men and other dealers, who increase products to retail outlets by as much as 300%.

NUPENG Suspends Tank-Truck Drivers’ Strike for Multi-Party Talks to Take Hold

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Unlike last summer, ICEM affiliate Chemical, Energy, Paper, Printing, Wood, and Allied Workers Union (CEPPWAWU) of South Africa is reaching settlement with employer groups in several industrial sectors. A strike by 5,500 furniture workers who have taken industrial action is the only exception to date. The union is, or has been in recent months, bargaining on behalf of 40,000 workers in some 11 industrial sectors. 
 
Last summer, nearly all of the union’s sectors, ranging from petroleum, plastics, industrial chemicals, to paper, packaging, and wood products took strike actions. So far, in bargaining that started in April with employers’ associations, agreements have been reached in petroleum, pulp and paper, pharmaceutical, paper packaging, and plastics. 
 
The agreements exceed, or at least match, South Africa’s current inflation rate of 10.5%. CEPPWAWU General Secretary Welile Nolingo said, “If there are to be further strikes, it will not exceed more that two or three sectors.”
 
<img height="154" src="/sites/default/files/migration/icem/0707ICEMAFConf2.jpg" width="180" alt=""/>
CEPPWAWU Gen. Sec. Welile Nolingo 
CEPPWAWU’s furniture-making members, employed at some six factories of Steinhoff International subsidiaries and spin-off companies now owned by ABSA Capital, struck on 1 July in a wage reopener. The union filed the necessary 48-hour strike notice with South Africa’s Commission for Conciliation, Mediation, and Arbitration (CCMA), but the employers’ association is challenging that as an illegal strike. CEPPWAWU is refuting that through the legal process. 
 
Employers are offering only 8%, and are seeking major pension changes, and restrictions on union leave. 
 
In the Tissue and Allied sector, the stalemate can be seen as differences between the two major companies in that sector, Nampac and Kimberly-Clark. Nampac is willing to offer a pay increase matching the inflation rate of 10.5%, but US-based Kimberly-Clark refuses to move beyond 9%. Some 2,000 CEPPWAWU members are employed in Tissue and Allied. 
 
In the glass sector, an agreement appears imminent for 2,500 workers for a 2008 pay increase of 11%. The major employers there include Consol, Nampak Wiegand Glass, and Glass of Africa.
<img height="101" alt="" src="/sites/default/files/migration/icem/SouthAfrica.png" width="220"/>
In the Industrial Chemicals sector, union leadership was waiting last week for a mandate from chemical workers for the next step. Some 13,000 workers are employed at plants of Sasol, Dow Chemical, PetroSA, and others. The union and employers’ association are close on wages at 12%. CEPPWAWU also is seeking the collective agreement to be extended to workers of labour agencies, with all temporary and casual workers to be made permanent employees after working 45 days in a three-year cycle. 
 
Agreements are not in place for the Fast Moving Consumer Goods sector, Sasol Mines, and the Sawmilling and Fibre and Particle Board Sectors. 
 
In agreements that have been concluded, some 6,000 paperworkers, primarily employed at Sappi and Mondi mills, agreed to 12% wage increases on 27 June. CEPPWAWU and the Pulp and Paper Employers’ Association also agreed to minimum salary levels of R4,660-per-month, and a shift allowance of 6% above basic pay. 
 
In Paper Packaging, wage increases of 11.5% took effect 1 July. Paper converting workers also won three-month maternity leave language, as well as an annual bonus of 4.33% of basic pay, and study leave of ten days per annum. A severance formula of two weeks pay for each year of work service also was achieved. CEPPWAWU covers 3,000 workers in this sector, with Nampak and Mondi Packaging serving as the major employers. 
 
In the Petroleum sector, agreement was also reached for salaries to increase by 12%. Employers include BP, Sasol, Chevron’s Caltex, and PetroSA. Some 3,000 workers are covered in that sector. In Plastics, a 10.4% increase was won across the board with employers Consol Plastics, Nampak Plastics, and Transpeco. 
 
In the Pharmaceutical sector, where 3,000 workers are employed by such companies as Pfizer, Aspen, and Adcock Ingram, a 12% increase was gained. 
 
All of CEPPWAWU’s one-year sector agreements expired on 1 July, with the exception of the furniture one, a three-year accord with wage reopeners each year.

CEPPWAWU Resolving Some Sector Agreements in South Africa; Furniture Workers on Strike

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Coal mining deaths, as well as recorded tragedies happening in iron ore and clay mining, shot up over the past month in China. Chinese authorities continue to be vigilant on mine managers and others when mining deaths occur. The State Administration of Work Safety (SAWS) is quick to say that deaths are down this year over each of the past few years, with gas-control utilization procedures the reason. 
 
The statistics, however, may point more to the fact that the Chinese government, as well as several coal-producing provinces, have embarked on an ambitious plan to close small-scale coal mines. China is in the process of closing 10,000 of 14,500 small mines. Indeed, For each one million tonnes of coal mined, the death rate at smaller mines is eight times the rate of state-owned mines or mines where multinationals are involved.
<img height="175" src="/sites/default/files/migration/icem/04miningsafety.jpg" width="240" alt=""/>
Overall, the death rate in the first half of 2008 fell to 1.05 for each one million tonnes of coal mined, compared to 1.485 in 2007, and 3.08 in 2005. 
 
But since mid-June, and certainly coincidental to China then placing a cap on coal price increases to steady supplies, thus to avoid blackouts during the Olympic games, a rash of mining accidents have happened across several provinces. The biggest mine disaster of 2008 occurred on 13 June, when 34 miners perished at the Anxin mine in Shanxi Province, and the latest happened on 10 July when bolting sheered on an elevator, causing it to collapse with 11 miners aboard. That occurred at Jiyuan Mining Industries Co. in the central province of Henan. 
 
The Anxin disaster near the Shanxi city of Xiaoyi occurred because of a major underground explosion caused by home-made explosives igniting inside a mine shaft. Fifty-eight miners were inside shafts at the time of the blast, nearly double the number that were supposed to be inside the mine. Anxin was working an area that was off-limits to mining. 
 
Although Anxin is a licensed enterprise with authority to mine 90,000-tonnes-per-year, it was found that its annual coal output was estimated at 300,000 tonnes. 
 
Chinese authorities arrested the mine owner, the mine’s legal representative, and two workers charged with responsibility for the explosives. Six municipal and township officials, all representatives of the local Communist Party committee, were also sacked due to their lack of oversight.
<img height="132" src="/sites/default/files/migration/icem/China.png" width="300" alt=""/>
On 5 July, 21 miners died in the coal-rich Datong City area of Shanxi Province when a methane gas explosion struck. The owner of the colliery, Wujiu Coal Mine, was detained at the 150,000-tonne-per-year colliery. And four days earlier, on 1 July, 18 miners died when a shaft collapsed at state-owned Huisen Liangshuijing coal mine in Shaanxi Province. Sixteen workers died immediately, and two other miners died later from gas inhalation after being rescued. 
 
From the mid-point of June, besides the major Anxin tragedy, at least 20 other coal miners died in recorded accidents, while multiple deaths occurred in two iron-ore mines, and in one clay mining operation. 
 
On 17 June, at the Laojunmiao Coal Mine in Mulei County, part of the Xinjiang Uighur Autonomous Region, five persons died and three were seriously injured in a mine cave-in. On 12 June in Hubei Province at the Tuya Coal Mine, seven miners died 700 metres underground when a gas explosion occurred. And on 13 June, flooding of mine shafts caused the deaths of eight workers employed underground by Yutian Coal Mining Ltd. in Ningwu County, Shanxi Province. 
 
Freak accidents occurred in the iron-ore pits. On 25 June, 12 farmers were working an abandoned mine owned by Taochong Mining Co., part of the massive Ma’anshan Steel Group, when heavy rain caused the mine to collapse. This occurred in Fanchang, eastern Anhui Province. The illegal entrepreneur who was supervising the small-scale mining venture fled the area before he could be arrested. 
 
On 17 June, in Guyang County of the Inter Mongolia Autonomous Region, seven miners died during a mine collapse at the mined-out iron ore pit of Julong Mining Co. 
 
The disaster at the clay mine happened on 18 June near the Zhejiang Province capital city of Hangzhou, when six miners died due to flooding. Lax safety operating procedures was pinned as cause. 
 
Coal powers nearly 75% of all of China’s energy needs. Coal prices in China have risen 70% over the first six months of 2008. The price increases are not extraordinary when compared to the overall global spike in coal price levels this year. But in China, with low inventories and insufficient supplies, the National Development and Reform Commission decided on 19 June to put a temporary cap on spot coal prices through the end of the end to prevent power blackouts. What effect this will have on safety in China’s notoriously deadly coal mines is anybody’s guess

Mine Deaths Accelerate in China Over the Past Month

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At the triennial convention of the United Steelworkers (USW) in the US state of Nevada on 2 July, a cross-border merger of two big amalgamated unions took place. The USW and UK’s Unite announced an alliance creating a structure to be called Workers Uniting. 
 
“This union is crucial for challenging the growing power of global capital,” said USW President Leo Gerard. “Globalisation has given financiers license to exploit workers in developing countries at the expense of our members in the developed world.”
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USW President Leo Gerard
Added Unite Joint General Secretary Derek Simpson, “In addition to empowering the interests of our unions’ members, our mission is to advance the interests of millions of workers throughout the world who are being shamefully exploited.” 
 
In a video broadcast to the convention, attended by 3,500 USW delegates, as well as 77 international trade unionists from 23 countries, Unite Joint General Secretary Tony Woodley stated: “The creation of our new union is only the beginning. We’re laying the foundations of an even larger and stronger union yet to come.”
<img height="228" alt="" src="/sites/default/files/migration/icem/0703Amicustgwumerger.jpg" width="210"/>
Unite Joint General Secretaries Tony Woodley and Derek Simpson
The USW has some one million members in the US, Canada, and the Caribbean. It is the product of previous mergers between steelworkers, oil and chemical workers, paperworkers, rubber workers, glass workers, and the wood-workers union of Canada. 
 
Unite represents some two million workers in the UK and Ireland. It is a product of a recent merger between Amicus and the Transport and General Workers’ Union. Amicus, itself, is an amalgamated union that over the past six years has merged the Graphical, Paper, and Media Union (GPMU) with the Amalgamated Engineering and Electrical Union (AEEU), the Manufacturing, Science, and Finance (MSF) Union, as well as UNIFI, a former financial services union. 
 
The new structure, Workers Uniting, will have a joint steering committee and will be headed by an Executive Director. Staff will include research, international affairs, and communications specialists. 
 
The USW convention also saw the election of its first woman to its Executive Board. Carol Landry, a 16-year union activist from the union’s largest Canadian sector – mining – was elected by unanimous vote of the 27-member Executive Board. She is an 8-year staff member of USW-Canada, and prior to that had been prominently active in a number of positions at her local union, which represents workers at Highland Valley Copper in the province of British Colombia.

North American Steelworkers, UK’s Unite Forge Trans-Atlantic Union Alliance

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