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Turkey&rsquo;s only petrochemicals company, Petkim Petrokimya, was auctioned off 5 July by the state&rsquo;s Privatisation Authority in a &euro;1.5 billion transaction that fails simple transparency criteria. The government has failed to provide clear backgrounds on some of the partners comprising the winning bid for a 51% stake in this important Turkish enterprise. 
 
That bid was won by a newly-chartered Kazakh-Russian company, Transcentral Asia Petrochem Holding. It is composed of three partners: JSK Caspi Neft, a Kazk-based oil exploration firm; Investment Production Group Eurasia, reportedly a Kazak-owned and Russian-based real estate investor; and GK Troika Dialogue, a function of Moscow-based Troika Capital Partners that now has its first foreign holding in Petkim Petrokimya.
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&nbsp;The Russian Oil and Gas Report calls it Russia&rsquo;s fourth largest foreign investment ever, and says it is the largest Russian investment acquisition in Turkey. Immediately after the award was made, an international debt-rating agency put a &ldquo;negative watch&rdquo; on the acquisition, a pointed market signal regarding the lack of transparency. 
 
Those facts and many more are not lost on Petrol-İş, ICEM&rsquo;s oilworkers&rsquo; union affiliate in Turkey. Petrol-İş will once again argue in Turkish courts that this buy-out, a majority stake in a profitable enterprise that is key to the Turkish plastics supply chain, will harm the public good. The union has previously proven it can win its arguments in Turkish courts on privatisation matters, and this one contains solid facts that have many unanswered sub-facts. 
 
The Turkish Privatisation Authority opened bidding on Petkim Petrokimya on 16 March 2007. Seven consortiums were invited to submit further bids two months later. They included a partnership between Azerbaijan state oil company SOCAR and the Kazakh national oil/gas company KazMunagGas, and ones comprised of India Oil Co. and Carmel Olefins Ltd., 50% held by Israeli-based Oil Refineries Ltd. 
 
It came down to the SOCAR partnership and Transcentral Asia Petrochemical Holding bidding against each other in the final round. Within Transcentral, JSK Caspi Neft is the only partner with a track record in energy. And that is oil and gas exploration and development in the eastern Caspian. The Russian interests have no energy experience, apparently anywhere. 
 
A majority stake at this particular time is critical. The Turkish government began the sale of this enterprise, composed of two petrochem plants in Aliaga and Yarimka, in 2005, when it sold over the third of the company&rsquo;s stock in a public offering. Some 40% is now traded on the Istanbul Stock Exchange. The stake that Transcentral will win -- if it can get past Petrol-İş and several other legal challenges &ndash; consists of the 44% stake owned now by the Privatisation Authority and a 7% holding by Turkey&rsquo;s public pension monies.
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Petrol-İş&nbsp;demonstrates&nbsp;Against&nbsp;Non-Transparent Bid&nbsp; 
 

Even before Transcentral won the bidding, Petrol-İş and its members took to the streets to protect the 3,700 workers employed at Petkim Petrokimya. Marches and protests will be repeated as this privatisation becomes subject to the union&rsquo;s legal challenges, as well as full Turkish regulatory approval. Petrol-İş President Mustafa Oztaskin called into question the issue of the buyers&rsquo; financial stability in Turkey&rsquo;s press following 5 July&rsquo;s winning bid announcement. 
 
Turkey has seen a number of privatisation sales in recent years in many different sectors, as advised by the International Monetary Fund. Petkim Petrokimya is Turkey&rsquo;s only petrochemical plant, and it creates annual revenues of US$1.6 billion. It supplies most of Turkey with the raw and essential materials for the plastics, textile, and detergents markets. And one-quarter of output from workers at the two plants is then sold on export markets. This is one Turkish privatisation deal that will gain intense scrutiny in the coming months.

Petrochems: Transparency Suspect in Turkey’s Latest Petrol Privatising

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Around 100 African trade union delegates, from 15 countries, attended the ICEM regional conference of the Sub-Saharan Africa Regional Organisation (SSARO), held in Gaborone, Botswana, on 5 and 6 July 2007. 
 
Welile Nolingo, regional chair and General Secretary of South African ICEM affiliate CEPPWAWU, opened the conference and reported on the improved political situation in the region, where several countries are recovering from a period of war. Though corruption is still a serious problem in many of those countries, often badly hampering economic development, trade unions are showing their determination in challenging their governments to deal with these, and other, negative aspects of their governance. 
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Welile Nolingo, General Secretary of South African ICEM affiliate CEPPWAWU
The organisational development of the region was discussed, with delegates agreeing that the ICEM members need to be more involved in ICEM activities in the region. This applies not only to the donor funded projects, but also to the need to develop more bilateral contacts and activities. 
 
It was further stressed that the ICEM affiliates in the region need to develop a strategic plan, focussing on the continuing development of strong and democratic unions. A plan was proposed by the secretariat to that extent. Contract and Agency Labour (CAL), HIV/AIDS, Global Framework Agreements (GFA) and Company Networks were also listed as topics that increasingly need to become core business. 
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Rayford Mbulu, incoming ICEM regional chair and General Secretary of the Mine Workers Union of Zambia 
Recognising the growth of activity in the ICEM industries in the region (mining, oil, gas, chemicals), the ICEM General Secretary reconfirmed his engagement to devote more attention within the secretariat to this specific region. He also mentioned the need to empower trade unions and their leaderships in Western Africa, and made an appeal to all members to focus on closer cooperation between members, but also with representatives and affiliates of other GUF&rsquo;s. The integration of the WFIW into the ICEM was expected to lead to additional strength in the region, especially in Francophone countries. 
 
The conference adopted several statutory changes, of which the most important was on formally establishing a Women&rsquo;s Committee within the regional structure. 
 
The conference elected Brother Rayford Mbulu, General Secretary of the Mine Workers Union of Zambia, as the next Regional Chair. Sister Baru Gaaithoboge of the Botswana Diamond Sorters and Valuators Union was elected as the Regional Women&rsquo;s Chair at the Regional Women&rsquo;s Conference, which was held just prior to the SSARO Conference in Johannesburg, South Africa.

ICEM Sub-Saharan African Regional Conference held in Gaborone, Botswana

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The last three major mining disasters in Russia&rsquo;s Kemerovo and Vorkuta Regions, which took 159 lives in three months, are a clear indication that the system of mining safety in the country is making miners hostages of profitability. 
 
Officially, the two methane explosions in Kemerovo resulted from faulty cables, which short-circuited and detonated the mixture of methane, air, and coal dust. Systems used at the mine to automatically localise and suppress explosions all failed (and were later prohibited for use in all Russian mines). 
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The high concentration of methane remained undetected because the mines&rsquo; gas detection systems were tampered with. Meters showed methane concentration in the mines to be significantly less than it actually was, and the complete power shut-down, which would normally prevent any short-circuiting in such situations, therefore never took place. 
 
Ruben Badalov, First Vice President of the ICEM-affiliated Russian Independent Coal Miners&rsquo; Union (ROSUGLEPROF), and a member of the Russian State Duma, the lower chamber of the Russian Parliament, was on the federal investigatory team at the Ulianovskaya mine. Probing beyond the immediate causes, he exposes several indirect ones, whose nature cannot be reduced simply to matters of production discipline. 
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These indirect causes fall into a number of categories: from mistakes in the extraction estimates to assumptions of legal &ldquo;liberalisation&rdquo; of the whole mining safety control system. This makes it virtually impossible for public supervisory agencies, like Rostechnadzor, or the union&rsquo;s own inspectors, to enforce timely closures of unsafe mines. The common denominator for all the categories is a lack of regulatory mechanisms in the industry where the rule of the market is largely unchecked.
&ldquo;The actual methane content of the coal seam at the Ulianovskaya mine turned out to be several times higher than the project estimates,&quot; says Badalov, himself a mining engineer with extensive experience. 
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&ldquo;Moreover, the intensive extraction schedule contributed to the release of still greater amounts of methane into the mine, which was never properly degassed &ndash; a costly procedure. The roof was defined in the project documentation as highly resistant to caving and prone to overhanging. At the same time, the seam liability to rock bumps had been assumed to manifest itself ten metres below the level where the explosion took place. As a result, no precautionary measures, such as preventive degassing of the mine, or induced caving of the roof, had been scheduled. It was during the uncontrolled caving of 70 metres of the overhanging roof that huge amounts of methane were momentarily released into the mine.&rdquo; 
 
Both mines were designed by the same people, belonging to the same school of mining engineering, and while the licensing procedure is still in place, there&rsquo;s no meaningful quality control as the development of the mining science in Russia was hindered by lack of support from the state. 
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Ruben Badalov maintains that, as a purely commercial approach inevitably brings a temptation to simplify processes and disregard relevant specificities, there must be state supervision of all engineering work related to hazardous production processes. 
 
The Kuzbass disasters once again highlight the existing disparity between the fixed component of the coal miner&rsquo;s wages and the productivity-driven parts. The drop in income during outages to less than half of regular wages pushes miners to reckless behaviour. At the Yubileinaya mine, all it took to deceive the gas detection system was a piece of cloth wrapped around a gas sensor. 
 
&ldquo;This doesn&rsquo;t stimulate productivity, this stimulates coal extraction at any cost,&rdquo; says Badalov. In the course of the Federal Industry Agreement negotiations earlier this year, ROSUGLEPROF tabled a proposal to raise the fixed part of the wages to 70%, and although the target could not be achieved uniformly and in full, there were companies who were prepared to take this figure as a reference point.

Three Mining Disasters Take 159 Lives in Russia

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Pointed with direction from ICEM Norwegian affiliate Industri Energi, the Nordic country's national labour centre, LO, has advised state oil company Statoil not to open an office in Iraq. 
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The reason cited is Iraqi Oil Minister Hussein Shahristani's letter from July 2007, which bans trade unions in the public sector. His decree replicates the ban on unions in the country's oil sector imposed by both the regime of Saddam Hussein and the occupational forces following the 2003 invasion. (See <a href="/en/78-ICEM-InBrief/2357-Reckless-and-Repressive-Union-Busting-by-Iraqi-Oil-Minister">here</a> for more). 
Statoil is planning to open the office in the northern Iraq city of Erbil. According to a Norwegian press report, LO President Roar Fl&aring;then said the opening of the office shows poor judgement on Statoil's part. The LO has also officially called on Norway's government to block Statoil from moving into Iraq at this time. The Norwegian government is the majority shareholder of Statoil. 
<img height="150" alt="" src="" width="150" />
LO Norway's President Roar Fl&aring;then 
LO and Industri Energi's stand on this issue is also supported by the Iraqi Federation of Trade Unions (IFOU), a collection of some ten oil workers' unions in southern Iraq. IFOU President Hassan Jumaa Awad al Assadi has warned both Statoil and Norway's government that, until full recognition of trade unionism occurs, the company should not carry out any activity inside Iraq.

Norway&#039;s Unions Tell Statoil to Stay Out of Iraq for Now

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The workers at the chrome Bulqiza mine in Albania resumed their earlier industrial action on 13 August, following the death of Mr. Zaim Hysa, the Secretary of a trade union of the Bulqiza mine on Friday 10 August 2007. 
 
The unfortunate accident came just over one month after the workers signed an agreement with the management at the largest mine in Albania. That particular agreement was only reached after demonstrations and a hunger strike by the workers, and following intense negotiations that saw the involvement of senior managers of Darfo, the Italian company which owns the chrome mines and a ferrochrome smelter (click <a href="/en/78-ICEM-InBrief/2330-Chrome-Hunger-Strikes-End-in-Albania ">here</a> for more). 
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The July agreement dealt, in addition to salary issues, with health and safety and working conditions, areas where, as can sadly be seen from the death of the trade union leader, very little to no progress was made over the last few weeks. 
 
Miners at the Bulqiza mine refused to enter the mine on 13 August and claimed, at a rally with 600 workers, that they would not start working again until the company fulfilled their demands for better working conditions. Reportedly, workers have to work with inadequate equipment that comes from other bankrupt mines throughout the country. Miners, which have already seen four fatalities in the mine this year, are also asking for proper employment contracts. 
 
Mr. Zaim Hysa, 40 years old, was married and had children. He was known for having complained repeatedly about the poor working conditions in the mine.

Tragedy Continues for Workers at the Albanian Bulqiza Mine as Trade Union Leader Dies

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Negotiation partners reached an agreement in early August on the future of the mining sector in Germany. Following months of discussions, a programme was agreed that sets out a path on how to deal with Germany's 200-year-old coal industry over the coming years. The agreement, which was brokered by, among others, the cabinet of Chancellor Angela Merkel and ICEM affiliate IGBCE, intends to have a gradual phase-out of coal subsidies. 
 
The plan will now go to the parliament&rsquo;s lower and upper houses for approval. A fully approved law is needed, so that compensation payments can be prepared for the industry&rsquo;s 34,000 workers. Besides payments to the workers, the plan also projects to deal with the overall social and environmental effects of coal mining in the country. 
<img height="200" alt="" src="" width="200" />
Germany's federal and state governments will, as per the agreement, subsidise the coal sector with an estimated &euro;21.6 billion until 2018. In addition, the agreement foresees the creation of a foundation for the coal company RAG, which will hold a substantive share of the company. This foundation will administer, until 2018, the funds for the eight remaining German coal mines, as well as the money that is intended to go to the mining workers. 
 
Shares in RAG, currently a consortium in which ThyssenKrupp, Arcelor, E.On and RWE are involved, will be transferred to the new foundation. Besides that, preparations have also been made to float RAG shares (for its profitable non-mining activities, such as power stations, real estate and chemicals production) on the stock exchange as of next year. This initial public offering is expected to yield &euro;5 to 8 billion, which will also be used to help cover the costs of the phasing out of the coal industry. 
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Following efforts by the IGBCE, a clause was added to the agreement, which calls for a serious re-examination of the plan in 2012, taking into account not only the possibility of an unexpected drop in energy reserves, but also that other energy sources might become prohibitively expensive 
 
IGBCE President and ICEM Vice President Hubertus Schmoldt called the decision one of &ldquo;historic consequence.&quot; The union&rsquo;s members will be given the opportunity to end their careers gradually and the miners that work in those mines that will close earlier will receive compensation when they loose their jobs.

Agreement on Future of the German Coal Industry

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Kimberly Clark has, after more than three weeks of strike action at its two South African tissue plants, finally settled its industrial dispute with the ICEM-affiliated Chemical, Energy, Paper, Printing, Wood, and Allied Workers&rsquo; Union (CEPPWAWU). 
 
On August 22, when the CEPPWAWU was determined to step up support for their striking Kimberly Clark members by launching a secondary strike that would have targeted the company&rsquo;s raw material suppliers and retailers, Kimberly Clark decided to accept the terms of the Pulp and Paper Employers Association, as negotiated in the Wood and Paper Bargaining Council just before July 30. The terms include, among other things, an 8.5% wage increase and demands for permanent employment of temporary workers. 
<img height="115" alt="" src="" width="250" />
The CEPPWAWU victory in the Kimberly Clark industrial dispute, during which the union received international support from various parts of the world, ended the last of the national strikes which the union launched across its sectors on July 30, after negotiations at the Chemical and Wood and Paper Bargaining Councils became deadlocked. 
 
The ICEM congratulates its affiliate on this resounding success which vividly demonstrated that international solidarity support can effectively augment the strength unions derive from the unity and resolution of their members and leadership.

Kimberly Clark Settles South African Paper Dispute with CEPPWAWU

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US paperworkers employed at International Paper Co., members of ICEM affiliate United Steelworkers (USW), voted to accept a precedent-setting master labour agreement with the firm on 23 August. 
 
The four-year accord covering workers at 14 pulp and paper mills in the US contains wage increases on top of negotiated local (or mill-by-mill) agreements, improvements in health insurance benefits, and lays the groundwork for improved health and safety standards, as well as labour-management cooperation on public policy issues. 
 
But perhaps most importantly, the framework pact contains a &quot;successorship clause,&quot; meaning if the company sells any of its unionised mills, the new owner must, as part of the sale agreement, retain all workers, recognise the USW as bargaining representative, and honour the collective bargaining agreement. 
<img height="82" src="" width="150" alt="" />
&quot;The overwhelming support for this agreement shows how united our members are in pursuing master agreements in the paper industry,&quot; said USW President Leo Gerard. 
 
&quot;Successorship clauses protect workers from the unconscionable behaviour of corporations that sell a mill, then disregard the union and the collective bargaining agreement and summarily fire hundreds of people who have dedicated their lives to work there,&quot; added Gerard. 
 
The wage portion of the agreement amounts to a 2% increase upon expiration of local agreements, and another 2% on the second anniversary of the contracts. In addition, workers will receive a US$1,000 lump sum payment on the first and third anniversaries of the contracts. The USW represents 8,200 International Paper employees at mills, paper converters, and packaging plants in the US.

US Steelworkers Ratify Master Framework Agreement with International Paper

ICEM WOMEN’S BULLETIN 25

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US Affiliate United Steelworkers (USW) won an important court victory in its pursuit of justice for workers at shuttered Continental tyre and rubber plants in America. On 31 July, a federal judge for the U.S. District Court in the state of Ohio ruled that the German company must fulfill union contractual obligations to retired workers regarding health care.
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In December 2006, some 2,000 retirees from closed Continental plants in Charlotte, North Carolina; Mayfield, Kentucky; and Byron, Ohio, filed a class action lawsuit with the support of the union. Along with the cost-savings plant closings, the company shifted a large part of health care costs onto retirees. 
In the lawsuit, USW retirees, many of whom had been sacked at the time of the plant closures, sought restoration of the previous health insurance programme, and they argued for refunds on premium payments and other compensation. 
Judge Jack Zouhary of US. District Court in Toledo, Ohio, ruled in a summary judgment that the company had improperly reduced the benefit levels for retirees and their spouses. The judge&rsquo;s decision stated that since the company was unable to force its terms with the USW during contract talks, it unilaterally and illegally began implementing the cuts. 
Continental North America argued it had the right to lower retiree benefits, because the labour contracts had expired. Zouhary ruled that retiree benefits must remain separate from wages and benefits of active workers since there is &quot;inference&quot; in labour agreements that &quot;those benefits ... continue as long as the beneficiary remains a retiree.&quot;
<img height="158" alt="" src="" width="120" />
&nbsp;USW's Ron Hoover 

USW President Leo Gerard praised the judge&rsquo;s decision. &ldquo;The fact that the court issued summary judgment shows just how disgraceful Continental was in abandoning its contractual obligations to American tire builders who gave the company a lifetime of work.&rdquo; 

Continental has stated it will appeal the judge&rsquo;s decision, but the USW is calling on the company to make the payments even if it does appeal. &ldquo;This is an international corporation that has made massive profits throughout this sorry affair,&rdquo; said USW Executive Vice President Ron Hoover. &ldquo;It is time for them to finally stand up and fulfill the promises&rdquo; made to workers.

Continental Tyre Owes USW’s Retirees Medical Pay, Judge Rules

Archive

Petrochems: Transparency Suspect in Turkey’s Latest Petrol Privatising

ICEM Sub-Saharan African Regional Conference held in Gaborone, Botswana

Three Mining Disasters Take 159 Lives in Russia

Norway's Unions Tell Statoil to Stay Out of Iraq for Now

Tragedy Continues for Workers at the Albanian Bulqiza Mine as Trade Union Leader Dies

Agreement on Future of the German Coal Industry

Kimberly Clark Settles South African Paper Dispute with CEPPWAWU

US Steelworkers Ratify Master Framework Agreement with International Paper

ICEM WOMEN’S BULLETIN 25

Continental Tyre Owes USW’s Retirees Medical Pay, Judge Rules

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