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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. 
<img alt="" src="" width="175" height="132" />
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. 
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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. 
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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. 
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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. 
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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. 
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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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Press Advisory 
 
Press Conference 
 
When: 2 November 2011 
10h30 
 
What: 
SP KEP SPSI PT Freeport 
Indonesia Trade Union 
 
Status of Strike at Grasberg 
Mine 
 
Where: SPSI Offices 
Jl. Raya Pasar Minggu Km 
17 
No. 9 Jakarta Selatan 
12740 
 
With: International Federation of Chemical, Energy, Mine and General Workers' Union (ICEM) 
 
Construction, Forestry, Mine and Energy Union (CFMEU) of Australia 
 
Contact: Dick Blin, ICEM Information Officer, <a href="mailto:dick.blin@icem.org">dick.blin@icem.org</a>; +41 79 734 8994 
 
<a href="http://www.icem.org">www.icem.org</a>

Press Advisory - Press Conference, Grasberg Mine Strike

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A historical achievement happened in Indonesia late on Friday night, 28 October, when the country&rsquo;s Parliament passed the Social Security Providers Bill (BPJS), thus clearing the way for long-awaited pension, medical, job-related accident, unemployment and other benefits to millions of ordinary Indonesians. 
 
The House of Representatives gave approval to the new law through consensus in a plenary session when the six-party ruling coalition, which had worked to delay the legislation, was pressured by a mass rally outside Parliament to reach terms with the Indonesian Democratic Party of Struggle (PDI-P). 
<img src="" width="390">
25,000 Manifested 28 October at Indonesian Parliament
That rally, organized by the trade union/civil society coalition, Action Committee for National Social Security (KAJS), saw 25,000 Indonesians engage in a boisterous sit-in demanding once and for all passage of the populist bill. BPJS means that the government must now implement compulsory social services mandated by the National Security System Law of 2004. 
 
Labour leaders, however, realize that the BPJS time frame for full implementation of the different social components leaves too much political maneuvering room, especially with federal elections coming in 2014. BPBJS I, or the scheme for heath care for all citizens, must come into effect by January 2014, while BPJS II &ndash; social benefits related to occupational accidents, pensions, old-age benefits, and death benefit schemes &ndash; must be implemented by July 2015. 
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D. Patombong Sjaiful
&ldquo;Yes, it was a momentous day,&rdquo; said ICEM Indonesian Affiliates&rsquo; Union Chairman D. Patombong Sjaiful, the leader of FSP-KEP, the Chemical, Energy, Mines, Oil &amp; Gas General Workers&rsquo; Union of confederation KSPI. 
 
&ldquo;But now it becomes a process to guard the intent of this new law and not let it get sidetracked by the political system.&rdquo; 
 
Said Iqbal, the KAJS General Secretary and President of the Federation of Indonesian Metal Workers&rsquo; Unions (FSPMI), agreed, stating that the process must be closely monitored on formulating and calculating sufficient costs for the different benefits. 
<img src="" width="125" height="160" alt="" />
Said Iqbal
&ldquo;This marks a fundamental change in Indonesian social security,&rdquo; he said. &ldquo;Now we are assured there will be a minimum level of pension benefits for all, that discrimination against the poor regarding health care will end, and that all working people will have some level of social benefits. 
 
&ldquo;We must now be vigilant that government and employers adequately fund these programmes.&rdquo; 
 
Said Iqbal led the KAJS coalition that included some 69 organisations, included 40 trade unions. The coalition, including farm organizations, fishery groups, and many more, included three of the country&rsquo;s main national labour centres, KSPI, KSBSI, and KSPSI. The coalition is expected now to be transformed into &ldquo;BPJS Watch.&rdquo; 
 
The new BPJS law re-makes the four state-owned insurance companies (PT Askes, PT Jamsostek, PT Taspen, and PT Asabari) into two non-profit public companies under the auspices of the President&rsquo;s office. PT Askes will function for the health care scheme, while PT Jamsostek will administer occupational accidents, pensions, old-age risks, and death benefits.

Indonesia Passes Provisions to Implement Social Security Law

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A 2.9-magnitude earthquake in Henan province, central China, caused a rock slide on 3 November claiming the lives of eight miners and trapping 59 others. Fourteen of the miners were rescued immediately, and 45 other trapped miners found freedom some 30 hours later on Saturday, 5 November, from 480 metres underground. This occurred at the Qianqiu colliery, operated by the large state-run Yina Coal Group. 
 
The earthquake near the city of Sanmenxia collapsed the walls inside shaft. The eight mine deaths in Henan province come just six days after 29 perished in a methane gas explosion in Hunan province, the worse Chinese mine tragedy in recent months. Two days earlier, on 27 October, seven miners died in another gas explosion in Henan province. 
The Hunan tragedy happened in a mine operated by the city of Hengyang called Xialiuchong Coal Mine. The mine was legally registered but provincial authorities had suspended its production license earlier this year for inadequate safety measures regarding methane gas build-up. The blast reportedly occurred when sparks from machinery ignited gas. Six miners were rescued. 
 
The 27 October gas blast occurred at the Jiulishan Coal Mine in Jiaozuo, Henan province. Eighteen managed to escape. The mine was operating legally and is owned by state-owned Henan Coal Chemical Industry Group, a Fortune 500 company. 
 
Last week&rsquo;s earthquake caused a settling of earth that crushed against mine walls, causing a sudden and deadly release of stored energy one-half kilometre underground. Fortunately, enough air was squeezed in through the mine shaft for ventilation and then rescue. It took 200 workers to dig a rescue tunnel 750 metres in length to reach the 45 trapped miners, and serves as a stark reminder on the necessity of a second egress as mandated in ILO Convention 176, the Safety and Health in Mines Convention.

Chinese Earthquake Kills 8 Coal Miners, Bringing Recent Fatality Toll to 44

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The ICEM North American affiliate, United Mine Workers of America (UMWA), issued a report on 25 October accusing Massey Energy and its managers of &ldquo;industrial homicide&rdquo; in the 5 April 2010 explosion that killed 29 non-union miners at Upper Big Branch in the state of West Virginia. 
 
In the 90-page report, the UMWA said that Massey management &ldquo;deliberately flouted&rdquo; well-established safety and health laws in the US even after the mine was cited multiple times for violations by state and federal agencies. 
 
The union cites many factors throughout the report that led to the deadly explosion, but concludes in stating &ldquo;there is only one source for all of them: a rogue corporation, acting without real regard for mine safety and health laws and regulations, that established a physical working environment that can only be described as a bomb waiting to go off.&rdquo; 
<img alt="" src="" width="327" height="161" />
The full UMWA report, called &ldquo;<a href="/wp-content/migration/icem/134334-Upper-Big-Branch.pdf">Industrial Homicide</a>,&rdquo; can be accessed here.&nbsp; 
 
The UMWA demands criminal prosecution for some 18 Massey Energy managers, including CEO Don Blankenship, who retired in December 2010, two months before the thermal coal company was sold to Alpha Natural Resources for US$8.5 billion. The report also recommends over a dozen changes in both state and US federal mine safety laws, mainly concerning tougher penalties on deviant mine operators and stronger protections for whistleblowers who report safety infractions. 
<img alt="" src="" width="120" height="172" />
Dan Kane
&ldquo;Don Blankenship knew exactly what was going on at that mine,&rdquo; said UMWA President Cecil Roberts. &ldquo;He got production reports several times a day. He saw the levels of safety citations and (safety) orders going up. But instead of taking the needed steps to correct the problems, they just kept on running coal.&rdquo; 
 
Added UMWA Secretary-Treasurer and ICEM Executive Committee Member Dan Kane: &ldquo;It is unconscionable in the 21st Century for a mine to be operated in the manner that Upper Big Branch was.&rdquo; 
 
A <a href="/wp-content/migration/icem/UMW%20UBB%20Fact%20Sheet.pdf ">fact sheet</a> on the Massey&rsquo;s horrid Upper Big Branch mine disaster of April 2010 is here.

Massey US Coal Mine Deaths Termed ‘Industrial Homicide’ by UMWA

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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. 
<img alt="" src="" width="250" height="51" />
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. 
<img alt="" src="" width="278" height="161" />
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. 
<img alt="" src="" width="148" height="160" />
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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