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<a href="http://www.mckinseyquarterly.com/article_page.aspx?ar=1582&amp;L2=1&amp;L3=106">OUTSOURCING GROWS UP</a> 
 
Written in early 2005 by two partners of the McKinsey&rsquo;s London office, this article shows that the ICEM views on contract and agency labour are beginning to be accepted by influential Management Consultants. 
 
According to the article, the main objective of the first companies using outsourcing, was purely to reduce costs. That has changed somewhat. It is now generally accepted that companies also use contract and agency labour to improve their operational performance. 
 
The authors&rsquo; research shows that, in spite of this change,&nbsp;few companies changed the way they make their deals. They also say that that &ldquo;up to 50% of outsourcing arrangements fail to deliver the expected value&rdquo;. 
 
Examples are given of companies experiencing severe problems during the operation of the contract, due to the fact that they did not have a clear strategy at the beginning of the process. Towards the end, the article argues to work with all the internal stakeholders that will be affected by the move, including union representatives. 
The article can be found here: 
<a href="http://www.mckinseyquarterly.com/article_page.aspx?ar=1582&amp;L2=1&amp;L3=106">http://www.mckinseyquarterly.com/ 
article_page.aspx?ar=1582&amp;L2=1&amp;L3=106</a>

Useful Background Articles on Contract and Agency Labour

The 20-million-member ICEM today condemns King Gyanendra and his autocratic rule in Nepal for the arrests and intimidation of dozens of pro-democracy activists in the days leading up to a four-day general strike beginning tomorrow, 6 April. The ICEM also condemns the absolute monarchy&rsquo;s threat to civil servants and professionals, who have been served notice that participation in the strike could mean dismissals or job transfers to remote areas of the Himalayan country. 
 
Specifically, the ICEM calls attention to the arrest yesterday of General Federation of Nepalese Trade Unions (GEFONT) official Ramesh Badal. He was seized in New Baneswer as he was speaking to the Professional Alliance on joining the strike. Badal heads GEFONT&rsquo;s Department of Labour Relations. 
<img height="137" alt="" src="" width="131" /> 
 
Ramesh Badal
&ldquo;Arrests of activists before major strikes and demonstrations have become all too common in Nepal,&rdquo; said ICEM General Secretary Fred Higgs. &ldquo;But this makes them no less appalling. Real rights and freedoms will not exist until Nepal&rsquo;s monarch lifts his absolute rule and allows political parties to function.&rdquo; 
 
The ICEM, a Global Union Federation consisting of 389 affiliates in 122 countries, including four in Nepal, supports the 6-9 April general strike as a means of challenging Gyanendra&rsquo;s autocratic rule, now in place for 14 months. This week&rsquo;s general strike is being called by a wide ranging political coalition called the Seven Parties Alliance. The royal government has countered the strike with prohibition orders banning all assemblies inside the greater Kathmandu area.

ICEM Condemns Arrests, Repression Leading to General Strike

<img height="41" alt="" src="" width="100" />
Exactly one week after the Howard government&rsquo;s WorkChoices legislation in Australia went into effect, labour unions across the country have mounted campaigns to alert workers of the dangers. The unions also are preparing to oust Prime Minister John Howard from office at the time of next elections in 18 months. Several unions have established websites where workers can post and respond to employer abuses. 
The new law went into effect on 27 March and, in short, dismantles collective bargaining in favour of a system of individual contracts and exempts employers with fewer than 100 workers from unfair dismissal claims. 
In the first week alone, Australian unions have noted a rash of abuses. For instance, in South Australia, a hotel has announced a restructuring plan in which it will half its workforce, and place all staff on individual contracts with longer work hours. At another business in New South Wales, a company sacked all 29 of its employees and invited them to apply for 20 jobs based on individual contracts with salaries of A$180 per week less. 
<img height="100" src="" width="100" alt="" />
ICEM affiliate Australian Manufacturing Workers Union has begun a campaign entitled &ldquo;WhatChoice?&rdquo; and the Australian Council of Trade Unions, in conjunction with several states, is bringing legal action to reverse the law.

Australia’s Labour Reform Strips Workers of Protections

<img height="41" src="" width="100" alt="" />
South African affiliate National Union of Mineworkers (NUM) has challenged Harmony Gold Mining&rsquo;s sacking of 300 contract workers without consulting the union. Harmony fired contractor DBE Mining at the Kalgold mine in the Northern Cape, and will bring in a new contractor employing other workers. 
NUM, which has filed a complaint over the matter in a South African labour court, is demanding that Harmony, &ldquo;in the current climate of a boom in gold prices,&rdquo; hire the 300 on a permanent basis. 
In a statement, NUM said, &ldquo;Harmony would like to hide behind the myth that the 300 workers are employees of a contractor while in reality they do critical work in a Harmony mine &hellip; subcontracting and outsourcing are new forms of exploitation through which big companies try to exonerate themselves from the stain of careless laying off of employees.&rdquo;

Layoffs of Contract Workers Challenged by NUM

<img height="55" alt="" src="" width="138" />
Nigerian ICEM affiliates PENGASSAN and NUPENG has stopped privatisation plans of the country&rsquo;s four oil refineries and a separate petrochemical plant until job security demands are met. 
Nigeria&rsquo;s Bureau of Public Enterprises has been attempting to sell off assets of state-run Nigerian National Petroleum Corp. (NNPC), owner of the facilities. Both the white-collar and blue-collar oil workers&rsquo; unions are united in seeking a total severance package including full pensions and benefits for workers before any state asset is sold. 
The unions also seek new negotiations with prospective investors of any of the plants. The NNPC is seeking to transfer workers to its other business divisions instead. 
PENGASSAN and NUPENG have mobilized union members to prevent possible buyers from entering and examining the facilities until demands are met.

Nigerian Oil Unions Halt Privatisation Plans

<img height="55" src="" width="138" alt="" />
Colombian trade unions, together with NGOs and indigenous people&rsquo;s groups convened the largest general strike in over a decade in the South American country on 12 October. 
The strike, called by the national trade union federation CUT, was over the proposed free trade agreement with the US, and a proposed amendment now before Colombia&rsquo;s Constitutional Court that would allow President Alvaro Uribe to stand for a second four-year term next May. 
Strikers also called for an end to consistent trade union repression by the Uribe government, and for the government to take decisive action against paramilitaries, who killed 99 trade union leaders in 2004. Thousands of Colombian judicial, transport and education workers walked off their jobs to join the strike, which forced closure of schools and government offices.

Colombia&#039;s Unions Wage Successful General Strike

<img height="55" alt="" src="" width="138" />
Some 1,300 members of United Steel Workers (USW) in Canada are back to work at Teck Cominco Ltd. following ratification 5 October of a new three-year collective agreement. Steelworkers had been on strike at the company&rsquo;s zinc and lead operations in Trail, British Colombia, since 19 July. 
The strike had been called in order to re-gain wage and pension ground given the company in the 1990s during economic hard times. The new contract has wage increases totaling 10% over the three years, pension gains of 12%, and a C$3,500 cash payment to each worker.

Strike Settled in Canada with Wage, Benefit Gains

<img height="147" alt="" src="" width="140" /> 
Per Capita Affiliation Fees: Effective 1 January 2004, annual per capita affiliation increases from CHF 2.1 to CHF 2.4. On 1 January in the following years: 2005, 2006, 2007; annual per capita affiliation fee increases with the rate of Belgian inflation effective in those years. 
Allocation of Regional Seats/Voting Procedures: Change Article 19 to reflect the distribution of allocated seats between countries within each Representative Region shall be by vote of the member unions within that region, voting on the basis of actual, paid up membership averaged over the three full calendar years prior to the year in which the Congress takes place, or pro rata for those organisations that have joined the International since the previous Congress. 
 
Time Period Between Congresses: That the next Congress, in 2007, revert back to the month of November. 
Minimum Affiliation Fees: Change Article 10 to remove the reference to minimum service fee payment under Category D of Affiliation fees. 
 
Central Europe Category Change: An emergency resolution that did receive the signatures of five affiliates from five separate countries, this resolution granted the move of Central Europe affiliates from Category B designation under Affiliation Fees to Category C. 
 
Nuclear Power: A general motion that the ICEM promote &ldquo;best practices&rdquo; in the nuclear energy industry to ensure the highest degree of health, safety and environmental protection, that was amended to include language adopted at the ICEM&rsquo;s Rome Energy Conference with reference to the ICEM shall turn to the Atomic Energy Agency and the ILO for unified standards within the industry. 
 
ICEM to be Part of the World Peace Movement: With an amendment, the ICEM will encourage its regions to forge alliances in campaigns for peace and social justice. The amendment calls for the ICEM&rsquo;s Executive to decide the guidelines concerning such regional alliances based on ILO Core Conventions and ICEM policies, and that the respective regions will keep the ICEM informed of developments. 
 
Labour Law in Peru: A general motion that states the ICEM supports immediate approval of the New General Labour Law of Peru and that the government adhere to specific labour standards including respecting the right to organize, engage in collective bargaining and the right to strike. It also calls on Peru to ratify ILO Convention 176 on health and safety in mining, that mining MNCs respect the environment and that the country&rsquo;s Mining Levy be distributed in its entirety to communities where the mineral deposits are extracted. 
 
ICEM&rsquo;s Rio Tinto Global Union Network: Resolution proclaiming that the Rio Tinto Network will continue working on behalf on Rio Tinto workers, and will continue the united front to protest the mining company&rsquo;s anti-union practices. 
 
World Poverty: That ICEM affiliates exert influence over their national governments to eradicate world poverty by increasing the means for development cooperation, specifically through support of a minimum levy on currency speculation. 
 
Solidarity Compact: With such mobility in the labour force at present, that the ICEM study and assess the need for introducing a system where workers transferring between one country and another have the ability to consult and join the respective trade union in the new country. 
 
Global Union Reserves: The ICEM strive to intensify global union contacts with a view to promoting cooperation between national union organisations in the manufacturing sector and that the union structure of the future be made a theme of discussion at global union conferences. Also, a special study be made to highlight successful trade union cooperative efforts and mergers, and that a draft proposal of such be drawn up for the next ICEM Executive. 
 
Global Solidarity Projects: That the ICEM initiate closer cooperation with donors and that the International prepare projects ever more carefully and that the experience of the various projects be disseminated to the appropriate partners. With such projects, priority is given to regional coordination for follow-up and trade unions be identified as partners for future coordination. 
 
Global Agreements: That the work of achieving Global Agreements be intensified and that new Trade union networks be created and existing ones reinforced. This resolution calls on greater responsibility be given the regions to monitor and follow up on Global Agreements. 
 
Young Workers: That the ICEM Presidium be directed to develop a strategy of organising and promoting involvement of young workers into ICEM activities and structures. The resolution also calls for establishment of an ICEM youth committee to thus encourage follow-up at local, regional and national levels. 
 
Education and Training Curriculum: That the ICEM Presidium and Executive consider whether or not to establish a small committee charged with carrying out project work as it relates education and training of various aspects of globalisation. 
 
Burma: A resolution from Japanese affiliates firmly putting the ICEM on record condemning the military junta for its repressive regime of forced labour and denying democratic rights, and pledges the ICEM to stand with other global union federations seeking the immediate release of Ms. Aung San Suu Kyi and other leaders in the National League for Democracy of Burma currently being retained. 
 
ICEM Solidarity to Goodyear Workers in Guatemala: Support to the Goodyear tyre workers in Guatemala. 
 
Post Congress Activities Working Group: Endorsement and adoption by the 3rd ICEM World Congress of the document entitled Post Congress Activities Working Group, detailing priorities of the Secretariat in the next four-year period. 
 
Resolution on Colombia (Referred from Congress to Presidium; Presidium passed resolution, 9/10/03): A broad resolution calling for ICEM and other GUFs to provide necessary resources to heighten awareness to murders of workers and union officials in Colombia; denouncing government&rsquo;s position at ILO in 2003 denying fact-finding commission; urging country&rsquo;s Ministry of Mines and Energy to change privitisation policy; to censure and urge company Union Fenosa in Electri Costa and Electri Caribe to halt union busting; and to create a glass network in preparation for a future Global Agreement.

ICEM Adopts Four-year Programme

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The 20-million-member ICEM, based in Brussels, fully supports the actions of Belgian workers tomorrow to strike to protect their pension system and the country's current social security plan. 
 
ICEM Belgian affiliate FGTB-ABVV announced earlier in the week that it would stage a 24-hour general strike on 7 October in order to send a clear message to government and business that it will not tolerate the burden of social restructuring placed on workers. 
 
 

<img height="236" alt="" src="" width="300" />
FGTB-ABVV&rsquo;s call: To defend a proper pension system, 
decent jobs for all and adequate social security, 
we strike before it&rsquo;s too late 
&quot;We stand firmly behind FGTB-ABVV in their call for a strike,&quot; stated ICEM General Secretary Fred Higgs. &quot;It is unfair to place all of the burden on workers when attempting to change the social security structure.&quot; 
 
Unions and employers' associations have been negotiating with the government of Belgium for changes in the retirement system that could lead to eroding conditions for workers preventing them from retiring with full benefits. 
 
The FGTB-ABVV is fighting to preserve the current age at which workers can retire; resisting penalties placed on workers who fall victim to redundancies and restructurings; proposing more jobs programmes for young workers; and coming up with new methods to refinance social security, including placing a greater burden on the wealthy and no additions to the value added tax. 
 
Read more:
FGTB's Call for Strike (in French) 
<a href="http://www.fgtb.be/PDF/fr/Actions/2005/Greve/Greve24heures.pdf">http://www.fgtb.be/PDF/fr/Actions/ 
2005/Greve/Greve24heures.pdf</a>
Issues on This Strike from Affiliate La Centrale 
Generale FGTB (in French) 
<a href="http://www.accg.be/news/be-fr/Tract%20préavis%20FR.pdf">http://www.accg.be/news/be-fr/Tract%20pr&eacute;avis%20FR.pdf</a>

ICEM Supports Belgian Affiliate&#039;s General Strike

Archive

Useful Background Articles on Contract and Agency Labour

ICEM Condemns Arrests, Repression Leading to General Strike

Australia’s Labour Reform Strips Workers of Protections

Layoffs of Contract Workers Challenged by NUM

Nigerian Oil Unions Halt Privatisation Plans

Colombia's Unions Wage Successful General Strike

Strike Settled in Canada with Wage, Benefit Gains

ICEM Adopts Four-year Programme

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ICEM Supports Belgian Affiliate's General Strike

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