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Australian building materials maker James Hardie Industries lost a tax appeal case in a courtroom on 1 September that likely will inhibit the troubled company&rsquo;s ability to make payments under terms of the Asbestos Injuries Compensation Fund. Under a mandatory agreement with the state government of New South Wales, Hardie must pay 35% of its annual cash flow to the fund. 
 
A federal court judge ruled last week that James Hardie owes back taxes to the government in the amount of A$357.4 million, plus interest, for dodging taxes in 1998 when it formally moved ownership of US subsidiaries out of Australia. 
 
The 1 September decision by a federal court judge in Australia, upholding a Taxation Office ruling from that 1998 case, means that Hardie will need a fresh infusion of money to meet its liability commitments to victims of asbestos and asbestos-related diseases, according to the Australian Manufacturing Workers Union (AMWU). Lawyers who represent victims also expressed fear that the company will completely default on immediate and future obligations. 
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The AMWU said prior to last week&rsquo;s ruling that if James Hardie were to win the appeal, it would demand that the A$275 million cash windfall due the company go directly to the compensation fund. The AMWU said James Hardie has not made a payment into the fund in 2009-2010, and the bottoming-out of the home-building market inside the global financial crisis seriously jeopardizes the compensation fund. 
 
The AMWU further states that victims&rsquo; claims average A$110 million per year, but that James Hardie has made sufficient profits only once in the past seven years to cover a full year&rsquo;s of liability. 
 
Last week&rsquo;s case involved the company&rsquo;s wholly-owned affiliate RCI Pty. using a tax avoidance scheme, as determined by the Tax Commissioner, for the purpose of the subsidiary gaining a tax benefit. 
 
One Australian press account said last week&rsquo;s verdict &ldquo;cements the reputation of James Hardie&rsquo;s board and management of the 1990s and early 2000s as putting more effort into minimizing liabilities than was good for the company. 
 
&ldquo;James Hardie has been mired in scandal after using legal arguments in 2004 to deny liability to pay asbestos compensation,&rdquo; said the press report. &ldquo;The furor over asbestos, which forced the company to resume responsibility, was prompted by a global restructure in 2001, which built on a 1998 restructure that is at the centre of the tax dispute.&rdquo;

Asbestos: James Hardie’s Failed Tax Appeal Clouds Victims’ Payments

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Following an international solidarity campaign, Nike has agreed to pay US$1.5 million to a relief fund for the former employees of two of its Honduran suppliers, Hugger de Honduras and Vision Tex, which closed plants in the Central American country without notice and without paying workers any of the legally-mandated severance payments due them. 
 
Both factories closed in mid-January 2009, without severance payments to approximately 1,800 workers and estimated to total some US$2 million. In addition, Visions Tex failed to pay monies it had committed to paying in December 2008 following a strike, which included the legal entitlement to an annual bonus. The closure occurred just after the formation of a union at the factory. 
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The union representing the workers, the Central General de Trabajadores de Honduras (CGT), the Worker Rights Consortium and the Solidarity Center of the US will jointly oversee the administration of the fund. According to a joint press release by Nike and the CGT, workers will also receive a year&rsquo;s access to the health care system, training, and priority hiring. 
 
This groundbreaking agreement represents a significant step forward in the corporate social responsibility debate, with a major multinational company recognising that it must ensure decent working conditions, and the application of national legislation and international labour standards, for all those from whose labour it profits.

Nike Takes Responsibility for Employer’s Anti-Social Actions

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In February 2005, Mr. Choi, a worker at a subcontracting company of the Ulsan factory of the Hyundai Motors in South Korea, was dismissed for carrying out trade union activities. Mr. Choi had been employed by the subcontractor and stationed at the Ulsan factory since March 2002. 
 
When he was dismissed Mr. Choi, filed an application for remedy to the Labour Relations Commission (LRC) in an administrative lawsuit, claiming that it was an unfair dismissal and that Hyundai Motors, not the subcontracting company, was his real employer. 
 
On 22 July 2010, the Korean Supreme Court ruled that Mr. Choi was an illegal dispatch worker and determined that he, in fact, became a direct employee of Hyundai the day after working two consecutive years. 
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The High Court wrote, &ldquo;Mr. Choi was under the direct human resource (HR) management by the Hyundai Motors after being employed by one of its subcontracting companies. So, it will be assumed that he was a dispatch worker to the Hyundai Motors. Under the Act on the Protection of Dispatch Workers, etc. (Dispatch Worker Act), he should be regarded as a worker employed by the Hyundai Motors from the day after he has worked more than two consecutive years.&rdquo; 
 
Welcoming the groundbreaking ruling, the Korean Metal Workers&rsquo; Federation declared, &ldquo;The ruling puts a brake on discrimination and extortion by employers for non-regular workers. We will request all the employers hiring in-house subcontracted workers including the Hyundai Motors a special round of collective bargaining and also proceed with a series of class action lawsuits gathering dismissed workers, retirees, etc.&rdquo; 
 
The International Metalworkers Federation (IMF) covered this story on 29 July and it can be found <a href="http://www.imfmetal.org/index.cfm?id=622&amp;l=2&amp;cid=23679">here</a>.

Groundbreaking Korean High Court Rule Contract Worker is Worker of Primary Company

Bayo is the General Secretary of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
How Prevalent is Contract and Agency Labour and Casualisation in Nigeria? 
 
CAL is increasing and alarmingly taking over Nigeria&rsquo;s Oil and Gas industries. It encompasses various dimensions of precarious work and the worst forms of employment. CAL gives room for unfair labour practices that are repugnant to decent work principles. About 60% of our workforce is now composed of contract and agency workers. Standard, permanent employment is declining. 
 
Is the Issue of Casualisation and Temporary Work Practices a Bigger Problem than it was Before? 
 
The issue is a bigger problem in the Nigeria Oil and Gas Sector now than it was before due to the fact that employers and the government&rsquo;s standpoint is that CAL is now a reality that cannot be wished away. This leaves trade unions with no other option than to tackle the adverse effects of CAL, which are: 
 
&bull; Use of this work practice to replace direct and permanent employment; 
&bull; To adversely change employment forms and conditions, to avoid social responsibilities and obligations which employers circumvent through gaps and inadequacies in our extant laws; 
&bull; To weaken trade union membership, solidarity and relevance, and to prevent union organising and recognition of the collective bargaining principle; 
&bull; It widens the exploitation gaps particularly by user enterprises who prefer to minimise cost and increase profit, at the expense and detriment of labour; 
&bull; It increases workplace discrimination and inequitable terms and conditions of employment; 
&bull; It seriously challenges trade union ability to protect job security; 
&bull; There are conflicts in the definition of employment relationships and the obligations of user enterprises, particularly where laws and employment regulatory agencies do not clarify these issues; 
&bull; And an underlying factor, casualisation and temporary work is a growing phenomenon due to the unemployment situation. Employers are exploiting workers&rsquo; desperation for a means of subsistence for their own profit mongering. 
 
 
What are Differences in Nigeria Regarding Working Conditions Between CAL Workers and Permanent Workers? 
 
Number one, casual and temporary workers are subjected to conditions that are not in accord with the general work conditions in the Oil and Gas Sector. Where CAL workers are lucky and are allowed to organise and bargain collectively, the mandate for negotiation of a collective bargaining agreement is seriously curtailed by the contracts between the contractors and agencies on the one side and by the primary enterprise on the other side. 
 
In addition, these workers are subject to limited or no provisions for basic welfare, pensions and social security, health, safety, security and environmental protection, and other stipulated core ILO conventions. And to cite just one small example, Global Framework Agreements that are signed with Global Union Federations, where functional, are not usually made available and applicable to contract and agency workers. 
 
Any set of negotiations in Nigeria that involves a collective agreement for these workers is prone to grievances, disputes, threats, resistance, and action from labour unions, contractors and agencies, and user enterprises. 
 
What are the Main Ways in which Trade Unions are Supporting Casual and Contract and Agency Labour Workers? 
 
It has become a priority to use union resources and machineries to mobilise support and confront the overall denial that contract and agency workers&rsquo; rights have not right to organise and bargain collectively. We are doing this through increases levels of sensitisation through mobilisations, campaigns, solidarity actions, protests, rallies, pickets, strikes, media work, mediation, conciliation, arbitration, and litigation. 
 
We now have the task of entrenching the more effective and protective organising and collective bargaining strategies for contract and agency workers, with financial and organisation support from our union&rsquo;s Union Solidarity Reserve fund, from organisations like the ICEM, Friedrich-Ebert Foundation of Germany, and the US Solidarity Center. 
 
We are constantly implementing union resolutions, directives, and decisions in the area of campaigns, lobbying, engagements, and advocacy for contract and agency workers&rsquo; issues. 
 
Which Ways Do You Feel the ICEM&rsquo;s Global Campaign on CAL can be Helpful and Most Effective in Confronting the Challenges of CAL in Nigeria&rsquo;s Oil and Gas Sector? 
 
The Global CAL Campaign of the ICEM must use donors&rsquo; resources and mechanisms to mobilise support and confront resistance to full rights of contract and agency workers to organise and bargain collectively. The ICEM must increase awareness of the CAL situation, by all possible means, and it must effectively implement the Campaign through communication, engagement and evaluation, and correcting deviations/gaps in the global campaign strategies. 
PENGASSAN&rsquo;s best hope is that the ICEM will carry out advocacy and lobbying for fair labour policies and laws which are favourable to contract and agency workers, as to campaign for best practices in dealing with employment and working conditions issues relating to this most serious issue.

Interview: Bayo Olowoshile, PENGASSAN General Secretary

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The conference held in Oslo, Norway, on 13 September by the ILO and the International Monetary Fund (IMF) provided rhetoric giving economic redress to the great financial crisis, but it&nbsp;must now be followed up&nbsp;with prompt action on job creation, according to the International Trade Union Confederation (ITUC). 
 
The conference, entitled &ldquo;The Challenges of Growth, Employment and Social Cohesion,&rdquo; produced plenty of well-intentioned talk toward developing policies that promote job-creating growth, but the ITUC &ndash; one of the participants at the conference &ndash; stressed the importance of the ILO and IMF acting jointly and immediately on a job-centred recovery to pull tens of millions of the world&rsquo;s citizens from impoverished conditions. 
 
&ldquo;The ILO should be fully integrated into the G20&rsquo;s Mutual Assessment Process,&rdquo; stated ITUC General Secretary Sharan Burrow, adding that national policies must adopt progressive taxation, quality public service agendas, expanded collective bargaining and better workers&rsquo; protections, and respect for the world&rsquo;s core labour standards.
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ITUC General Secretary Sharan Burrow&nbsp;
She also said that it is crucial that wage increases keep pace with growing productivity in order to stop the income decline of working people. 
 
&ldquo;In the face of the persisting global employment deficit, the IMF should encourage countries, including those that borrow from the Fund, to adopt and maintain job-intensive stimulus policies until recovery is self-sustaining and unemployment is falling to pre-crisis levels,&rdquo; said Burrow. 
 
The IMF&rsquo;s General Director, Dominique Strauss-Kahn, was pointed in his remarks at the conference. &ldquo;The labour market is in dire straits,&rdquo; he said. &ldquo;The Great Recession has left behind a wasteland of unemployment, and this devastation threatens the livelihood, security, and dignity of millions of people across the world.&rdquo; 
 
A joint ILO-IMF report said 30 million jobs had been lost due to the crisis, 75% of which occurred in developed nations. The IMF admitted that the percentage of workers laid off for long terms has grown with each economic downturn for decades, but that figures for such from the recent financial crisis have surged even more dramatically. 
 
The Oslo conference, hosted by the Norwegian government, was attended by four heads of state &ndash; Spain&rsquo;s Prime Minister Jos&eacute; Luis Rodr&iacute;guez Zapatero, Greek Prime Minister George Papandreou, Liberia President Ellen Sirleaf Johnson, and Norway&rsquo;s Prime Minister Jens Stoltenberg &ndash; as well as seven national ministers and 25 trade union leaders.

ILO, IMF Oslo Conference on Crisis Now Demands Immediate Action

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Two sharp-edged coal disputes in Queensland and New South Wales are concluding, with branches of ICEM Australian affiliate Construction, Forestry, Mining, and Energy Union (CFMEU) gaining the best possible terms for some combined 570 mineworkers. 
 
In northern Queensland, 233 miners employed by mining contractor Theiss of Leighton Holdings at the Collinsville mine reached terms within an enterprise agreement with Theiss in early September that provides them wage increases, improved housing allowances, and job security. 
 
The two-year-long dispute erupted late in July 2010 when miners launched a continuous strike. The 16-day strike was heroically marked by miners, spouses, and partners blocking tracks and turning back trains loaded with coal. The Collinsville mine is majority-held by Xstrata but Theiss and Leighton, a subsidiary of German construction giant Hochtief, operate the mine exclusively.
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CFMEU Members at the Tahmoor Mine&nbsp;
The other long dispute coming to conclusion is with Swiss-based Xstrata at the Tahmoor mine in New South Wales. Some 240 miners likely will vote approvingly for the company&rsquo;s last offer this week. If approved, the CFMEU will retain enterprise labour agreements under Fair Work Australia, something that Xstrata was resisting in attempting to roll back union-protected work rules to the days of former Tory Prime Minister John Howard. 
 
The 22-month dispute at Tahmoor was marked by lockouts and strikes, the latest a 19-day lockout that ended 7 September. During that lockout, a Fair Work Australia judge turned back Xstrata Coal&rsquo;s application to scrub the enterprise agreements at Tahmoor, basically stating that CFMEU had the legitimate workplace right to protect job security. 
 
Xstrata was seeking broad flexibility over workplace policies and procedures, without union involvement, while the union sought assurances against job replacements by contractors and greater roles in rosters and other on-the-job work rules.

Coal Strikes in Australia Wrapping to Conclusions

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Despite two full days of bargaining between ICEM affiliate, the National Union of Metalworkers of South Africa (NUMSA), and the New Tyre Manufacturing Employers&rsquo; Industry Association (NTMEIA) on 16-17 September, no accord was reached to end the three-week old strike. Some 6,000 rubber workers have been on strike at six tyre factories operated by four employers since 29 August. 
 
Today in Port Elizabeth, 4,000 NUMSA members from tyre plants in the Eastern Cape will march in protest of rapt division among employers in this year&rsquo;s wage talks. They will present a petition to management at the plant gates of Bridgestone-Firestone in Port Elizabeth this afternoon.
In last week&rsquo;s talks guided by an independent mediator in Port Elizabeth, management of the Japanese-based company continued to deviate widely from the wage offers put forth by other tyre companies associated with the NTMEIA. While Continental, Goodyear, and Apollo-Dunlop of India placed on the table a three-year package containing wage increases of 9%, 7.5%, and 7.5%, Bridgestone-Firestone&rsquo;s offer was 7%, 5%, and 5%. 
 
Rubber workers of NUMSA are willing to accept a three-year pact, but their wage expectations are 9% in each of the three years. In addition, they seek a modernized wage module that will lift the salaries of workers who have been stuck at minimum levels for as long as 10 to 15 years. 
 
Another key issue at the bargaining table revolves around the use of labour brokers. Although the NTMEIA will not agree to a ban, it has conceded to pay contributions for short-term and temporary workers into the Provident Fund, as well as make retirement and medical payments for them. The South African tyre industry employs about 1,000 such workers.
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Also last week in South Africa, 70,000 NUMSA members across the country returned to their jobs at fuel retail outlets and auto component shops. On 14 September, NUMSA convened a special National Executive Committee meeting, where eight of nine regional structures of the union agreed to accept terms of the Retail Industry Motor Association and the Fuel Retailers&rsquo; Association, ending strikes that began on 1 September. 
 
The three-year contract for filling station attendants includes wage gains of 10%, 9%, and 8%, while auto-parts workers will receive 9%, 8%, and 8%. NUMSA did achieve a solid breakthrough regarding labour brokers, particularly in these sectors in which several employers are totally reliant on staff provided by outside hire firms. 
 
The agreement calls for all labour brokers to be registered by one of two certifying agencies, and all staff of labour brokers must receive minimum rates of pay inside the two industries as well as getting the same benefits and condition of employment. In addition, the negotiated settlement calls for the gradual phase-out of labour brokers, with a cut to 35% of current levels by the year 2013.

South African Tyre Strike Continues; Mass March Slated Today Against Bridgestone

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As with CEPPWAWU, the National Union of Metalworkers' of South Africa (NUMSA) has today begun strike action following a failure of negotiations with the Steel and Engineering Industries Federation of South Africa (SEIFSA). NUMSA has lowered its demand for a 20 per cent salary increase, to 13 per cent, however SEIFSA only offered 7 per cent, and refused to seriously negotiate the other key NUMSA demand for labour brokers to be banned in all companies with NUMSA members employed. 
 
Further NUMSA demands include a two-year wage agreement, as opposed to three years sought by employers, a one-day medical test for all workers, a five-day family responsibility leave per occurrence, and a 20 per cent night shift allowance. 
 
Talks between NUMSA and the Metal and Engineering Industry Sectors Bargaining Council ended on Thursday with a certificate of non-resolution being issued, paving the way for a strike. 
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The indefinite mass countrywide action is likely to include upwards of 300,000 workers. David Carson, executive director of SEIFSA, responded to impending strike action on Thursday, declaring 48 hours&rsquo; notice before initiating lockouts at various firms. 
 
Strikers convened at the Workers&rsquo; Library in Johannesburg from 9am today. Led by NUMSA General Secretary Irwin Jim and the general secretary of the Congress of South African Trade Unions (COSATU), Zwelinzima Vavi, workers marched to submit a memorandum at Metal Industries House on Anderson Street in Johannesburg. 
 
Demonstrations also took place in Port Elizabeth, Cape Town and East London. A march in Northern Cape will take place tomorrow. 
 
Employer&rsquo;s regressive demands in the failed negotiations included protecting their right to outsource work via labour brokers, introducing incredibly low entry level salaries, increasing the working week from 40 hours to 45, and exempting companies with fewer than 50 employees from many of their responsibilities towards workers.

South African Metalworkers&#039; Strike

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South African ICEM affiliate, the Chemical, Energy, Paper, Printing, Wood and Allied Workers Union (CEPPWAWU) representing over 70,000 workers begins strike action today in the petroleum, pharmaceutical, industrial chemicals, tissue and allied industries, and plastics industries, as employers continue to stone-wall negotiations for the period 2011-2012. 
 
The Strategic Committee of CEPPWAWU met on 23 June and decided unanimously to strike during the week of 4 July 2011. CEPPWAWU members today, 4 July 2011 are joining NUMSA in the national strike in the MEIBC (Metal and Engineering) sectors. 
 
Negotiations have been deadlocked with employers on wages and conditions in three national bargaining councils - the National Bargaining Council for Chemical Industries, National Bargaining Council for the Wood and Paper Sectors and the Metal Engineering Industries Bargaining Councils. 
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CEPPWAWU&rsquo;s demands include a wage rise of 11-13 per cent across the board, a minimum wage of R6 000 (615 Euros) monthly, annual wage discussions, outsourced and temporary workers to become permanently employed, plus various sector specific social demands including on housing, transport, and maternity benefits. 
 
Employers are offering 4 per cent and 7 per cent, an offer that CEPPWAWU describes as an &ldquo;insult&rdquo; to workers. Union negotiators point to discrepancies between the official rate of inflation, 4.6 per cent, and the real inflation of living costs, as the price of basic items has risen dramatically over the last two years. 
 
In last year&rsquo;s negotiations workers made sacrifices as the country was badly affected by the global recession. This year some employers are seeking to extend those concessions. 
 
CEPPWAWU has asked the South African public to be patient during the strike, as it will result in shortages of drugs in hospitals, of fuel, paper, chemicals. CEPPWAWU remains committed to dialogue towards a solution. 
 
The strike was able to be legally launched today after an attempt by employers of the Plastics Converters Association (PCA) failed in the Gauteng Labour Court, with the judge ruling the strike legal and ordering the PCA to pay legal costs. 
 
An eleventh hour bid to interdict a strike by workers in the metals and plastics sectors failed on Friday, when the Labour Court turned down an application from the Plastics Converters Association (PCA) and ordered it to pay costs.

CEPPWAWU Downs Tools in Demand for Living Wage

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ICEM&rsquo;s Turkish affiliate Sel&uuml;loz-Is, Pulp, Paper and Products Workers&rsquo; Union has been picketing in front of the plant of Form Mukavva Ambalaj Sanayi ve Ticaret Ltd.Şti located in Torbali, close to the country&rsquo;s third biggest city Izmir. The Sel&uuml;loz-Is picket-line is in protest over the dismissals of sixteen union members by the Turkish-based cardboard packaging company Form Mukavva following recent successful organising drives of the union which lasted several months.
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Sel&uuml;loz-Is applied to the Ministry of Labour on 9 May 2011 for the authorisation documentation showing that the union organises more than the legally-required 50% of workers at the workplace. The Ministry sent the authorisation paper, confirming the union&rsquo;s majority. At the time of the application to the Ministry, Sel&uuml;loz-Is had much more than the legally required minimum 50% registered union members. But when the management received the paper from the Ministry, they first filed a case at local labour court claiming that the union did not hold the required legal majority to become a bargaining partner, a common tactic by employers in Turkey for union de-recognition, subsequently 16 pioneering members of Sel&uuml;loz-Is were kicked out on 20 June 2011. Since then Sel&uuml;loz-Is has conducted industrial action calling for the reinstatement of those dismissed workers and for union recognition. The action is receiving wide support from the families of workers and the local community. 
 
&ldquo;The reason for the dismissal of our members was that they enjoyed trade union rights guaranteed by the country&rsquo;s constitution&rdquo; said Ergin Alşan, President of Sel&uuml;loz-Is. &ldquo;We vehemently protest dismissals of our members because of their joining our union. We clearly announce that our struggle will continue until our members are reinstated&rdquo; added Alşan.
<img src="" width="146" height="110" alt="" />
President Ergin Alşan
In his letter to Yılmaz Mineli, Owner and General Director of Form Mukavva, the ICEM General Secretary urged the company that sixteen dismissed workers must be immediately reinstated without delay. &ldquo;This targeted and systematic attack by your management to block your employees from exercising their right to organise and bargain collectively will cause much anger. We expect the hindrance of union rights at Form Mukavva Ambalaj in Turkey to be solved without further intervention&rdquo; added Warda. 
 
ICEM&rsquo;s <a href="/wp-content/migration/icem/65.ICEM.Form%20Mukavva%20Ambalaj.Turkey.27June.pdf">protest letter</a> can be found here. Support letters to Sel&uuml;loz-Is can be sent to <a href="mailto:selulozis@selulozis.org.tr">selulozis@selulozis.org.tr</a>.

Turkey’s Selüloz-Is struggles for recognition at Form Mukavva

Archive

Asbestos: James Hardie’s Failed Tax Appeal Clouds Victims’ Payments

Nike Takes Responsibility for Employer’s Anti-Social Actions

Groundbreaking Korean High Court Rule Contract Worker is Worker of Primary Company

Interview: Bayo Olowoshile, PENGASSAN General Secretary

ILO, IMF Oslo Conference on Crisis Now Demands Immediate Action

Coal Strikes in Australia Wrapping to Conclusions

South African Tyre Strike Continues; Mass March Slated Today Against Bridgestone

South African Metalworkers' Strike

CEPPWAWU Downs Tools in Demand for Living Wage

Turkey’s Selüloz-Is struggles for recognition at Form Mukavva

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