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Fifteen United Steelworkers (USW) branches in 11 US states last week ratified a new master agreement with International Paper (IP) by a 73% vote count, the union announced. The four-year agreement covers 6,800 workers at 15 pulp and paper mills, and it now builds on a first master agreement covering multiple workplaces of IP that was achieved in August 2007. 
 
The agreement, to take effect in August, includes wage increases of 1% in 2011, 2% in 2012, 1.5% in 2013, and 2% effective on 31 August 2014. It also includes improvements in a defined benefit pension plan, and lump sum payments into an existing employee savings plan of US$1,000 each in 2012 and 2014. 
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USW Bargaining Committee
In addition, the agreement spells out stabilisation over health care costs, and provides job security, mainly through a &ldquo;successorship clause.&rdquo; That means that if IP sells any of the 15 mills, the new owner must retain all workers, recognise the USW as bargaining representative, and honour the collective agreement. 
USW Vice President Jon Geenen, who heads collective bargaining for the union in the pulp and paper sector, said the IP agreement continues a historic achievement. &ldquo;In the past,&rdquo; he said, &ldquo;our locals bargained site by site, even though most companies approach bargaining as part of a national strategy.&rdquo; 
 
Geenen added: &ldquo;The success of our local unions here sets a precedent for bargaining in the rest of the industry.&rdquo;
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USW VP Jon Geenen
The agreement came together in late March and early April after nearly a year of planning and strategic meetings. It culminated in face-to-face discussions in New Orleans, Louisiana, early last month in which an 80-person USW bargaining committee participated. &ldquo;One of the main benefits of all the locals bargaining together at the same time is that everyone gets a voice in shaping the package,&rdquo; said Geenen. 
 
The USW has a similar master accord with IP in the paper converting industry, covering 2,800 workers at 32 paper-converting plants of the company in 18 US states. The first master agreement in converting came into effect in 2008 and expires in 2012.

Steelworkers Renew Master Labour Pact with International Paper in US

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An agreement has been reached at the Labour Ministry of S&atilde;o Paulo, Brazil, state between BASF and the chemical workers of Guaratinguet&aacute;. The agreement aims to regulate the use of Contract and Agency Labour (CAL) and requires the company to pay the same salary and benefits to agency workers as is paid to permanent, directly-employed workers. Failure to implement the agreement will result a fine of 500 Reales per worker/per day. 
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This Guaratinguet&aacute; plant is the largest BASF entity in Latin America and has about one non-regular worker for each directly employed worker.

Brazilian Social Partners Agree on CAL Regulation at BASF

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The Americas Regional Contract and Agency labour (CAL) conference was held in Recife, Brazil, on 27 June 2010. The conference was attended by ICEM affiliates from Brazil, Argentina, Colombia, Chile, and Uruguay, as well as by ICEM General Secretary Manfred Warda, the ICEM Vice-President for Latin America, Sergio Novais, the ICEM Women&rsquo;s Officer and Latin America Contact Person, Carol Bruce, and Ashling Seely, the Global CAL Project Coordinator. 
 
Affiliates at the conference spoke about how CAL is being used to undermine freedom of association, for example with Sintracarb&oacute;n in Colombia, the ICEM&rsquo;s Mine Workers&rsquo; affiliate. Representatives from that union told how trade union activists are being transferred from permanent positions into what are known as &ldquo;rubbish contracts.&rdquo; 
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CAL Project Coordinator for Latin America - Rosane Sasse
Another ICEM affiliate, Sintravidricol, the Colombian Glass Workers&rsquo; Union, spoke about how workers at Owen-Illinois are being dismissed and replaced by agency workers. Affiliates also spoke about the problems of triangular employment relationships, with CAL workers not being clear on who is ultimately responsible for their working conditions. 
 
Participants exchanged information on the increasing efforts being made to halt the outsourcing of employment and abusive use of short-term contracts. For example, the Union of Rubber Workers of S&atilde;o Paulo, representing 26,000 workers, is attempting to negotiate a collective agreement clause prohibiting outsourcing in the manufacturing sector. 
 
In Brazil&rsquo;s oil sector, more than two thirds of the workforce is outsourced. The Single Federation of Oil Workers (FUP) has held several debates, regional and national meetings in various regions of the country, to raise awareness of the negative impact of CAL. The umbrella federation of oil workers&rsquo; unions at state-owned Petrobras has also worked with its affiliated organisations to encourage them to restructure in order to improve the full involvement of outsourced workers in their unions. 
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ICEM General Secretary Manfred Warda
ICEM&rsquo;s Warda concluded the meeting, saying that governments must be made aware that ILO Conventions apply equally to contract and agency workers, and that, where there are obstacles to full rights for CAL workers, these should be tackled with legal actions. Warda also spoke about the need to work against the practices of the World Bank and the IFC, organisations which are still advising governments that they need to create more &ldquo;flexible&rdquo; labour markets. 
 
Affiliates agreed that the day 28 July would become a day of action on outsourcing.

CAL Regional Conference in Latin America Gathers Important Case Studies

Joseph Toe is ICEM's Contract and Agency Labour (CAL) Project Coordinator for the Sub-Saharan Africa Region. He is a native of Togo.
How prevalent is the issue of Contract and Agency Labour and Precarious Work in Africa? 
 
In some cases, the proportion of temporal workers may reach 80% of the permanent workforce. Deregulation of the labour market has accelerated this process. 
 
What factors have impacted on the use of CAL? 
 
Structural adjustments imposed by the Bretton Woods institutions adversely affecting the institutional employment context at two levels: 
 
&bull; The de-regulation of the labour market and the fact cry that use of labour must become more flexible; and 
&bull; The reduction of trade union participation and the inability of civil society to effectively make its voice heard over anti-social measures advocated by lending institutions. 
The arrival of Asian investors has also disrupted the labour market in Africa and jeopardises previous social gains. 
 
What is the Sub-Saharan African ICEM CAL Project? 
 
The Sub-Saharan African ICEM CAL Project started at the end of February 2009 and covers 8 countries, Guinea, Mauritius, Mozambique, Namibia, Nigeria, Senegal, Sierra Leone, and South Africa. The selected targeted countries were all identified as nations where the issue of contract and agency labour is wide spread, but also where there are relatively strong trade unions. This means that there are possibilities of carrying out actions to achieve reasonable progress on this issue. 
 
What are the Project Objectives? 
 
The project aims to develop trade union strategies and seek best practices to address contract and agency labour related problems in Sub-Saharan Africa; it seeks to create a coherent regional coordination to address the problem; it advocates for governments to take the relevant initiatives and policies to halt the use of temporal contracts and to regulate private employment agencies; it seeks to carry out high level and specialised regional research; to have trained union negotiators on the issue of rights for contract and agency workers; to build the organisational capacities of the leadership in CAL campaigns; and to create a network for information- and experience-sharing of ICEM affiliates on the issue across the region. 
 
The training is based on a number of simple and practical tools designed from examples taken from around the world. At the end of each session, a plan of action is developed on the future actions to be carried out at the national level in synergy with other GUFs&rsquo; affiliates, and guidelines are defined to be included in the ICEM Global Campaign on CAL. In order to implement the national plan, a monitoring mechanism, which is part of the plan of action is defined, and the officers in charge of its implementation are appointed. 
 
Trade union action is indispensable to neutralising the development of outsourcing and temporal employment, particularly as it is crosscuts and affects all trade and industrial sectors. Sub-Saharan African countries are seriously affected by this problem and are reacting in order to stem and/or reduce the adverse effects. The Sub-Saharan African ICEM CAL Project also encourages and assists unions in: 
 
&bull; Building trade union organising and negotiating capacity; 
 
&bull; Institutionalising sector-based negotiations and reinforcing trade union unity of action, which is necessary to combat outsourcing, labour brokering, and contract agencies. It fights for the regulation of employment agencies and recourse to outsource, and to be involved in that redress process; 
 
&bull; Reinforcing solidarity between temporary and permanent workers; 
 
&bull; Training those who organise temporary workers; 
 
&bull; Negotiating collective agreements which include clauses on the systematic recourse to outsource and use casual labour with regard to the improvement of the working conditions and the reduction of the consequences of casual labour; 
 
&bull; Campaigns for the transformation of casual labour into permanent employment; 
 
&bull; Develops strategies for CAL workers, with the emphasis on decent work and inclusion of gender and race in those strategies; 
 
&bull; Organising campaigns and lobbying at national and international levels against casual labour, and developing plans of action aimed at ridding this phenomenon in the Export Processing Zones (EPZ); 
 
&bull; Carrying out studies on the consequences of outsourcing and contract labour agencies within the context of worsening disparities and inequalities of the social strata. This means addressing the Millennium Development Goals 2015, the 2007&ndash;2015 Decent Work Agenda in Africa; the Poverty Reduction Strategy Paper (PRSP), Sustainable Human Development Programme, and the Tripartite and Social Dialogue Principles which serve as the basis of ILO. 
 
Casual employment affects positive labour values, which develop, distinguish, and socialise the human being.

Interview: Joseph Toe, CAL Project Coordinator, Sub-Saharan Africa Region

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The government of Zambia bent to the will of the country&rsquo;s two major mining unions, including ICEM affiliate Mineworkers Union of Zambia (MUZ), to investigate and remedy the anti-Zambian outsourcing policies planned by Anglo-Indian Vedanta Resources at several of its Konkola Copper Mines (KCM) operations. 
 
That government intervention did achieve the desired results, since KCM has now rescinded its plan to outsource major operational activities at its Nchanga mines, Chingola Copper concentrator and open pit mines, and the Nampundwe refractory to foreign contractors. 
 
On 24 August, a tripartite dialogue consisting of the Labour and Mines Ministries, Vedanta&rsquo;s senior executives, and the MUZ and the National Union of Miners and Allied Workers (NUMAW) produced an agreement that should deploy more Zambians to the country&rsquo;s mines and resource processing plants.
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MUZ President, Rayford Mbulu&nbsp;
The agreement caused cancellation of a mass demonstration at mine sites and other locations by the MUZ and NUMAW for 28 August. 
 
According to Labour and Social Security Minister Austin Liato, the compromise with firstly, &ldquo;on outsourcing, which has threatened a number of (local) jobs, it has been agreed that the issue will be stalled and the two parties shall engage each other before any decision is made. 
 
&ldquo;Then secondly, on the vice president human resources, who is about to retire, it has been concluded&nbsp;that the position will be advertised&rdquo; within Zambia. Both the government and civil society, including the Zambia Institute of Human Resource Management, was livid that Vedanta was about to hire another foreign national in this position. 
 
The outsourcing and offshoring issue between Zambian mining unions and Vedanta had become pitched in August, particularly at a time when Vedanta is greatly expanding many of its copper-producing facilities. 
 
The outsourcing issue at KCM became especially exasperated when a mining boss at the Chingola mine &ndash; operated by the Brazilian contractor U &amp; M Mining &ndash; refused to allow the deputy minister of Labour and Social Security onto the mine to inspect labour conditions. 
 
In the days before the tripartite meeting, KCM attempted to resolve the dispute by offering any worker affected by outsourcing to transfer to the contract employer at equal pay and the same pension contributions, transfer to one of two other KCM operations, or voluntary separation under existing conditions of service. But that was unsatisfactory to the unions. 
 
KCM is 20% owned by the Zambian government. In 2009, over 80% of Zambia&rsquo;s foreign exchange earnings and 15.9% of its GDP came from copper mining. The ICEM Secretariat commends Sub-Saharan African Regional Vice President Rayford Mbula, President of the MUZ, for his leadership and vigilance on this issue with both the government and Vedanta.

Planned Outsourcing by Vedanta inside Zambia’s Copper Belt

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Draft legislation in South Africa on whether to ban labour brokers or to increase regulation on enterprises that supply workers to businesses is stalled in the government, with the likelihood that revisions to the Labour Relations Act (LRA) on this key national issue will not be heard in Parliament by year end. 
 
Four draft bills were submitted to the Cabinet in May, but have been returned to the Labour Ministry for language revisions. Even after the Cabinet accepts the draft amendments to the LRA, including revising Section 198 (temporary employment services), they must still go the National Economic Development and Labour Council (NEDLAC) for review, and then to public comment before the full Parliament takes up South African labour law revisions. 
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Besides whether or not to ban labour brokers, the proposed legislation is expected to prohibit discrepancy in wages and working conditions between temporary and permanent workers, provide protection against unfair dismissals during probation periods for workers, provide more government labour inspectors to investigate abuses, harsher fines on abusive companies that are linked to their annual turnovers, and impose extended liability on primary employers when abuses occur. 
 
The major employer federations that cover staffing companies in South Africa, namely the Association of Personnel Service Organisations (APSO) and the Confederation of Associations in the Private Employment Sector (CAPES), are taking a pro-action position that some type of legislation must pass. 
 
But these groups are lobbying for tighter regulation of the more nefarious side of the industry, believing that there is abusive practices by unscrupulous labour brokers that must be stopped. 
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Labour unions in South Africa, however, led by the Congress of South African Unions (COSATU), are holding firm that a complete ban is necessary. The unions have made it a rule to inject the ban language on labour brokers in their collective agreements, and several employers have agreed to the ban. 
 
In the ten-day strike in August between the National Union of Metal Workers of South Africa (NUMSA) and the Automobile Manufacturers Employers Association (AMEA), representing BMW, Ford, General Motors, Nissan, Toyota, and Volkswagen, the two sides agreed to the ban. It takes effect on 1 January 2011, with the exception of pre-existing labour broker contracts, which will be permitted to run their term. 
 
Regarding the legislation, Minister of Labour Membathisi Mdladlana made it clear while speaking at a labour law conference in mid-August that labour brokering in the country will definitely get a revamp with the objective of creating decent jobs. 
 
He told labour lawyers present that the notion of treating labour as a commodity must halt. &ldquo;We must stop this thing of selling labour,&rdquo; Mdladlana stated.

Labour Broker Law in South Africa Stalls, For Now

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To highlight how the issue of Contract and Agency Labour (CAL) is being used by companies around the world, and to demonstrate the innovative way trade unions are dealing with these issues, the ICEM CAL Project is producing a series of country reports. The first of these reports focuses on the situation in Thailand. 
 
The use of CAL is widespread in Thailand and became even more so during the economic crisis, which hit Thailand&rsquo;s export markets hard. In 2008, the Thai labour code was amended to include improved rights for agency workers, with companies being required to pay equal wages to agency workers doing the same jobs as permanent workers. 
 
This promising piece of legislation, however, has been severely undermined by the fact that many companies simply switched to employing workers directly on short-term contracts and paying them only the legal minimum wage. 
 
Thai unions are responding to the proliferation of CAL in various ways. Many are working to ensure that CAL workers can join the same union as permanent, directly-employed workers. TIGLU, the union representing workers at Thai Industrial Gases (TIG), Thailand&rsquo;s largest provider of industrial gases and a subsidiary of German-based Linde Group, launched a campaign to secure their right to recruit CAL workers.
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CAL Thai Project Manual
In early 2008, with support from the ICEM CAL Project and from ICEM affiliated unions in Germany, the Netherlands, and Belgium, TIGLU signed a milestone agreement with the company solidifying the union&rsquo;s right to organise contract and agency workers. The ICEM is working to ensure that freedom of association is respected for all workers at TIG/Linde. 
 
Although it is often extremely challenging to recruit CAL members, a number of Thai unions have been successful in their attempts to do so. A branch union affiliated to the ICEM affiliate, the Paper and Printing Workers Federation (PPFT), successfully recruited 80 of 120 contract workers employed by Cellox, a tissue paper company in Thailand. The ICEM Asia CAL Project is working with the union and PPFT to organise union education for the new members. 
 
Many Thai unions have made CAL a priority in their collective bargaining and organising efforts. Since 2006, the Local Union of the Electricity Generating Authority of Thailand, called EGAT-LU, has been bargaining collectively to improve the working conditions of CAL workers at EGAT, the public-sector electric power company that employs 7,000 agency workers. 
 
In April 2007, the ICEM-affiliated union amended its statutes to make it possible for contract workers to join. Since then, the union has negotiated a new company policy with EGAT, which not only aims to improve working conditions for CAL workers but also ensures that all workers receive the entitlements outlined in Thai labour legislation. In 2009, the union launched an organising drive and succeeded in recruiting 650 of EGAT&rsquo;s 760 contract workers. The ICEM is working with EGAT-LU and the Danish Union of Electricians (Dansk El-Forbund) to organise union education for the newly recruited members.

Country Report Thailand: Exemplary Actions by ICEM Unions on CAL

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.
The 20-million-member International Federation of Chemical, Energy, Mine, and General Workers' Unions (ICEM), based in Geneva,&nbsp;continues its support&nbsp;for striking rubber workers in South Africa, and endorses today's mobilisation in Port Elizabeth.&nbsp; 
 
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. 
 
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.
For further information, contact Dick Blin, ICEM Information&nbsp;Officer, <a href="mailto:dick.blin@icem.org">dick.blin@icem.org</a>, or +41 22 304 1842 (office), +41 79 734 8994 (mobile).&nbsp;

ICEM Continues Support for South African Tyre Strike

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US President Barack Obama has named United Steelworkers (USW) President Leo Gerard to the President&rsquo;s Advisory Committee on Trade Policy and Negotiations. The committee is a private sector initiative established by the US Congress in 1974 to ensure that US trade policy and trade negotiating objectives adequately reflect US commercial and economic interests. 
 
&ldquo;I am grateful to President Obama for the confidence he has shown in me, and I pledge to work closely with the Administration to help resolve some of the issues we face in maintaining a fair trading system among nations,&rdquo; said Gerard. The appointment was made on 15 September.
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The USW under Gerard&rsquo;s stewardship has been stalwart in protecting American jobs in the face of unfair trade advantages. Only last week, Gerard testified both before a House of Representatives Ways and Means Committee on legislation aimed at addressing China&rsquo;s unfair trade advantages because of its currency undervaluation, and before the US Federal Trade Commission on dumping of coated paper products into the US by China and Indonesia.

Obama Names USW’s Leo Gerard to American Trade Policy Panel

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The world&rsquo;s largest newsprint producer, Canadian-based AbitibiBowater, will exit from bankruptcy in mid-October, some 18 months after it sought protection from creditors in both Canada and US. A creditors&rsquo; committee last week gave approval to a restructuring plan that includes novel and company-saving collective agreements that were negotiated last spring, preserving pensions and granting unique union rights. 
 
Those agreements on both sides of the North American border between the forest products company and the Communications, Energy, Paperworkers (CEP) of Canada and the United Steelworkers (USW) in the US kept the company solvent and operating. They also gave AbitibiBowater immediate financial relief, yet preserved some of the best union rights language in the North American paper industry. 
 
Last week&rsquo;s unsecured creditors vote came a day after the province of Quebec announced it would grant relief on contributions to workers&rsquo; pension plans in exchange for the company investing C$75 million in new projects over the next five years, as well as to maintain its headquarters in Quebec. 
 
The CEP and its President, Dave Coles, applauded both the province&rsquo;s and creditors&rsquo; actions, but reminded that the federal government has been conspicuously absent from issues to preserve the Canadian forest products industry.
<img alt="" src="" width="100" height="114" />
CEP President Dave&nbsp;Coles&nbsp; 

&ldquo;Workers have done more than their fair share to save this company, in marked contrast to our federal government which did nothing to come to the aid of ailing forest communities,&rdquo; said Coles. &ldquo;We will remember the Harper government&rsquo;s inaction at election time.&rdquo; 
 
The CEP preserved its pattern bargaining for the eastern Canadian paper sector in court-monitored negotiations with AbitibiBowater last spring. Although the five-year agreement contained 10% wage cuts for the first two years, it did protect existing and future retirement benefits with the company contributing C$500 million to a new, union-operated pension fund. In the US, in a four-year pact, USW members took a lesser salary reduction for the same period but won several union rights issues unique in American labour agreements. 
 
In Canada, the restructuring plan under the country&rsquo;s Companies&rsquo; Creditors Arrangements Act (CCAA) now goes before a Quebec Superior Court judge on 20 September for approval, while in the US, a conformation hearing under Chapter 11 of the US Bankruptcy Court occurs 24 September in the state of Delaware.

Newsprint Maker Abitibi to Emerge from Bankruptcy, Thanks to NA Paperworkers

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