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The ICEM has decided to support the case of the Mexican union, Sindicato &Uacute;nico de Trabajadores de la Empresa Industria Vidriera del Potos&iacute; S.A. de C.V. (SUTEIVP) in a complaint about violations of trade union rights at the International Labour Organization (ILO). 
 
SUTEIVP represents workers employed by Industria Vidriera del Potosi S.A., (part of Grupo Modelo) a manufacturer of glass bottles used by Mexico's famous Corona beer. 
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In early 2008, the company summarily dismissed 220 workers covered by a collective bargaining agreement, including the executive committee of SUTEIVP. The company then entered into &quot;negotiations&quot; with a &quot;union&quot; that they invited in to create a sub-standard agreement and to act as a shield to keep out the real union. Such practices are common in Mexico, and are known as employer protection contracts. The yellow union and its corrupt leadership are generally invisible - often unknown to the workers - until a real union attempts to organize the workforce. 
 
SUTEIVP attempted to file a complaint under the OECD Guidelines for Multinational Companies, using Mexico's OECD National Contact Point. In 2010, the Mexican NCP dismissed their case for &quot;insufficient evidence&quot;. 
 
Manfred Warda, ICEM's General Secretary, will highlight the SUTEIVP situation in a speech to the upcoming International Labour Conference. The case will then be reviewed by ILO's Freedom of Association committee.

ICEM Support Mexican Glass Workers’ ILO Complaint

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The already-limited freedoms of association in Iraq are under further attack. Last month, the Cabinet arbitrarily dismissed the executive board of the country&rsquo;s largest trade union organisation, the General Federation of Iraqi Workers (GFIW), and established a new committee to take over all union structures and assets, oversee and control upcoming union elections. 
 
Cabinet Decrees 95 and 96 were issued on 17 April, withdrawing recognition of the GFIW and appointing a &ldquo;Ministerial Preparatory Committee&rdquo; (MPC), consisting of un-elected, politically bias officials, mostly from the Sadrist Party. MPC employees have already begun distributing union membership cards, arbitrarily choosing members favourable to their faction. Further to this, union offices have been taken over with support from police and military personnel. Upcoming union elections are expected to be held inside the Sadrist Party offices. 
 
The deeply concerning developments follow a recent distribution of government ministries between the various political factions of the coalition. The carving up of responsibilities saw the labour ministry taken over by the small, Shia sectarian Sadrist movement, followers of Cleric Moqtada al-Sadr. 
 
Eight years after the fall of Saddam Hussein, his regime&rsquo;s regressive labour laws have not been replaced, meaning all public sector employees have no right to organise or bargain collectively. The vast majority of workers in Iraq are affected by this law. But this latest attack is even in breach of the Saddam legislation. 
 
The TUC in the UK has been on the front line of a global union backlash, calling on the Iraq government to back down. TUC General Secretary Brendan Barber wrote to Prime Minister Nouri Al-Maliki explaining that the TUC will exercise its veto right to block the government-nominated workers&rsquo; delegate to the ILO Annual Conference (ILC) in June, unless the attack is reversed. 
 
Support the <a href="http://www.labourstart.org/cgi-bin/solidarityforever/show_campaign.cgi?c=917">Labourstart campaign</a>, and send your protest message to Iraq Prime Minister Nouri Al-Maliki here. Also send your opposition to this attack on the GFIW to the Iraqi Embassy in your country. International pressure has proved effective in Iraq over recent years. The labour ministry decree has been publicly condemned by the Minister of Civil Society in Iraq. Build the pressure, join the campaign. 
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Basra Oil Workers&rsquo; Protest
Iraqis continue to bravely organise in face of the government attacks. Oil workers in Basra last week, 10 May, walked out and threatened to stop production at the state-run South Oil Corporation, demanding fair salaries and benefits to match those of oil workers at the international corporations operating in Iraq. Foreign workers were to be blocked from entering oil fields yesterday, but Basra Governor Khalaf Abdul Samad Khalaf agreed to meet the unions and averted the escalation of the protest, for the time being.

Repression Continues on Iraqi Trade Unions

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The result of long-running consultations with trade unions, the OECD Guidelines for Multinational Enterprises have been updated and improved, representing a positive opportunity to force global capital to respect workers. Stronger clarification that companies&rsquo; must ensure compliance throughout supply chains is a significant improvement, as is a new chapter on human rights which requires multinational companies to respect human rights of all workers, in line with the Guiding Principles for Implementing the UN Framework, Protect, Respect, Remedy. 
 
The OECD Guidelines for Multinational Enterprises are a strong international instrument for promoting corporate social responsibility. In practice, however, their implementation has encountered limits. In this regard, the Update will create a number of improvements in the Procedural Guidance including provisions for: indicative timescales for the completion of cases; and stronger cooperation between home and host country NCPs (National Contact Points). 
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The new developments to the text must now be effectively implemented and respected by national governments. 
 
Other important advances include language on outsourced and temporary work, providing a tool for problematic precarious work to be addressed; and provisions for workers to receive a decent wage or &ldquo;at least adequate to satisfy the basic needs of the workers and their families&rdquo;. 
 
The updated Guidelines will be adopted at the OECD Ministerial Council Meeting on Wednesday 25 May, and will be immediately in effect. 
 
The ICEM participated in dialogue over the past year with OECD governments. Centrally important in those consultations was TUAC (Trade Union Advisory Committee to the OECD), with the ITUC, GUFs, BIAC (Business Forum), and OECD Watch also partners. There remains more room for improvement of the Guidelines, and dialogue will be ongoing. 
 
The OECD Guidelines hold the potential to promote corporate social and environmental responsibility worldwide and to make an effective contribution to sustainable development and to the social dimension of globalisation. Potential is increased through this update.

OECD Guidelines Improved

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Better than 99% of 2,400 Greek oil refinery workers ended a four-day strike at three oil refineries this morning, 23 May, sending a strong message that they will not become economic scapegoats inside Greece&rsquo;s financial crisis. It was the second major strike in six weeks against Greek industrial giant Hellenic Petroleum by ICEM affiliate Pan-Hellenic Federation of Employees in Petroleum Products, Refineries, and the Chemical Industry (POEPDHV), and its courageous branch union, the Pan-Hellenic Union of Employees in Hellenic Petroleum. 
 
Following a 17-day legal strike from 3-19 April (see <a href="/en/78-ICEM-InBrief/4368-Greek-Petrochemical-Union-Extends-Refinery-Strikes-until-19-April">ICEM report</a> here), the union was prepared for further industrial action on 6 May. But Hellenic Petroleum gained a court order blocking the strike, something that failed in April. Last week, the company did not seek court action, perhaps speculating that large numbers of oil workers at Aspropyrgos, Thessaloniki, and Elefsina refineries would not honour the strike. 
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19 May: Aspropyrgos Refinery
If so, Hellenic Petroleum guessed wrong. But why would it expect any differently when the company is out to slash salaries by 20-25%? Or different by the way the company disrespects staff by engaging in a public campaign declaring unionised oil workers are overpaid with too many perks? 
 
Besides the steep wage cuts, Hellenic is seeking to abolish a skills recognition or experience value system reached by continuous employment progressions, and an increase in the work-week from the present 38 hours. The company, 35% owned by the Greek state, posted &euro;208 million in net profit in 2010 and is on target for surpassing that in 2011. 
 
At a press conference on 19 May, the start of this latest strike, union leaders and branch union militants expressed anger that oil workers were being painted the scapegoats. &ldquo;It is not our salaries that are to blame for the crisis and this is the message voiced by today&rsquo;s strike turnout,&rdquo; POEPDHV President Nikos Orfanes. 
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Panagiotis Ofthalmidis, Nikos Orfanes
Panagiotis Ofthalmidis, chairman of the branch union, Pan-Hellenic Union of Employees in Hellenic Petroleum, is also on the company&rsquo;s board of directors representing workers. He told the press briefing that the company has &ldquo;devalued workers through the media&rdquo; and asked: &ldquo;If they cut our salaries where will the savings go? Will it go to social causes? Or will it go in the pockets of shareholders.&rdquo; 
 
The ICEM and the European Mine, Chemical, and Energy Federation (EMCEF) lent the Greek unions support at the press conference in refuting the company&rsquo;s claims that Greek oil workers are the highest paid in Europe. 
 
This past weekend&rsquo;s strike&nbsp;resulted in resumption in bi-lateral talks that will take place next week. The union is seeking only inflation level increases, but also is demanding full staffing (250 jobs) next year at new refining units coming on line at the Elfinsa refinery. The union and Hellenic are five months into a six-month dispute resolution process under Greek labour law. It runs until late June, at which time the contract is terminated. Due to the stalemate and entrenched positions of senior Hellenic management, the union had engaged in 24-hour strikes throughout March. 
 
Late last year, the two sides agreed to a set of social obligations related to impending industrial activity, as required under Greek law. It includes safety maintenance during strikes, ordering shutdowns and start-ups of equipment for operational integrity, and minimal levels of production for emergency public services.

Greek Petro Workers Take Stand in Crisis ‘Blame Game’

The Pulp and Paper sector of the International Federation of Chemical, Energy, Mine, and General Workers&rsquo; Union (ICEM) elected Jan-Henrik Sandberg, President of Sweden&rsquo;s Paperworkers Union (Pappers), as chairman of the global sector. Sandberg replaces Jouko Ahonen, President of Paperiliitto of Finland, who will become the head officer for the Council of Finnish Industrial Unions (TP) on 1 June. 
 
Sandberg&rsquo;s nomination came from a work group meeting of Geneva-based ICEM&rsquo;s Pulp and Paper sector on 23 May, and the election came on 25 May by the ICEM Executive Committee. 
 
Sandberg, 52, has been President of 18,000-member Pappers since 2006. Prior to that, he worked for 17 years as a recovery boiler operator in the pulp mill of Korsn&auml;s AB in G&auml;vle, Sweden. He served as Pappers local branch chairman at Korsn&auml;s in G&auml;vle from 2001 to 2006 and previously served as education director of the branch union. 
 
Ahonen had served as President of Paperiliitto since 2003. In his new duties with TP, he will oversee collective bargaining and industrial policy for 14 Finnish trade unions. 
 
Both Ahonen and Sandberg steered their respective trade unions through pivotal and successful labour disputes in their countries, Ahonen in a 2005 industry-wide lockout in Finland and Sandberg in a 2010 strike by paperworkers across industry in Sweden. 
 
The ICEM Pulp and Paper sector serves as the global coordinating and support-giving body for 90 trade unions across the world in the pulp, paper, and packaging industries. The ICEM is a global trade union federation representing 20 million workers in 132 countries. 
 
For further information: Dick Blin, ICEM Pulp and Paper Officer, <a href="mailto:dick.blin@icem.org">dick.blin@icem.org</a>, +41 22 304 1842.

ICEM Pulp and Paper Sector Elects New Global Chairman

Special Newsletter: Developments in the Global Contract and Agency Labour Project

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The annual Regional Conference for the Eastern Europe/Central Asia Region of the ICEM was conducted in Moscow on 23 September. Participating affiliated trade unions came from Azerbaijan, Moldova, Ukraine, Russia, Tajikistan, Uzbekistan, and Belarus. 
 
The meeting was chaired by ROSUGLEPROF &ndash; the Russian Independent Coal Employees&rsquo; Union &ndash; President and ICEM Vice President Ivan Mokhnachuk. Each delegation briefed participants on today's situation in their respective country and union. ICEM General Secretary Manfred Warda spoke on the process of building joint structures with the International Metalworkers&rsquo; Federation (IMF) and the International Textile, Garment, and Leather Workers&rsquo; Federation (ITGLWF). The idea of creating a new Global Union Federation was supported by Mikhail Tarasenko, President of the Russian Mining Trade Union, a union invited as a guest to the meeting. 
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The ICEM&rsquo;s Regional Contact Person for the Eastern Europe/Central Asia Region and the Central Europe Region, Anatoly Surin, gave a report on the activities in the region since the last regional Council in September 2009, in Kiev, Ukraine. The participants of the meeting adopted a resolution of support to the miners of the enterprise &ldquo;STRATEX&rdquo; of Moldova in a struggle for fair wages. 
 
The ICEM&rsquo;s Regional Conference in 2011 will take place in Uzbekistan.

ICEM Holds Eastern Europe/Central Asia Regional Conference

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The pharmaceutical industry has been one of the few industries which did not suffer a severe negative impact during the global financial crisis. In 2009, the market grew 7% to US$837 billion, compared with a 4.8% growth rate in 2008. Sales of the sector are expected to grow 4 to 6% this year. The size of the global market for pharmaceuticals is expected to grow nearly US$300 billion over the next five years, reaching US$1.1 trillion in 2014. 
 
But with this growth, global pharmaceuticals are experiencing a significant shift. The Asia-Pacific region is emerging as the fastest growing market. The reason attributed for this is lower costs and lack of stringent regulatory requirements. 
 
Pharmaceutical sales are growing rapidly in India, China, Malaysia, South Korea, and Indonesia due to rising disposable incomes and several health insurance schemes. China&rsquo;s pharmaceutical market will continue to grow at over 20% annually, and will contribute 21% of overall global growth through 2013, while the Indian market is expected to grow by 10% this year. 
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For South East Asia, Association of Southeast Asian Nation (ASEAN) harmonization is a hot topic among pharmaceutical companies, as it will liberalize a number of highly regulated markets (ASETUC). 
 
Considering all these developments in pharmaceuticals and demands from affiliates, the ICEM, with the support of Germany&rsquo;s Friedrich-Ebert Foundation (FES), organized a workshop for pharma industry unions in Jakarta, Indonesia, on 28-29 September. Attended by 30 trade union representatives from Indonesia, South Korea, Japan, Vietnam, Pakistan, Singapore, Nepal, and Thailand, the workshop was hosted by Indonesian Pharmaceutical Industry and Health Services Union (FARKES), led by Djufnie Ashary. 
 
The ICEM was represented by Chemical and Rubber Industries&rsquo; Officer Kemal &Ouml;zkan, and Asia-Pacific Regional Contact Person Phee Jungsun, who ran the workshop. 
 
Following the opening speeches by Erwin Schweisshelm, Indonesian Director of the FES, Sjaiful DP, President of ICEM affiliated union of FSP KEP and Chairman of ICEM Indonesian Council, and Djufnie Ashary of FARKES, the workshop got a detailed presentation from &Ouml;zkan on both the global and Asian pharmaceutical markets, with recent figures, developments, and challenges set forth. Participants provided country and company information at the workshop. 
 
In Indonesia, pharmaceutical industry volume turns over at about US$2.7 billion each year. Pharma growth in Indonesia is about 10% annually. In 1991, multinationals controlled over 70% of market share, but now that figure has dropped to 25%. 
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Norihiro Tokunaga, Assistant General Secretary of ICEM-JAF, shared basic data on Japanese health care. According to Tokunaga, in Japan, with its low birthrate, society is rapidly aging. It is estimated that one-fifth of the population will be older than 75 by the year 2030, and that will extend to a full quarter by 2055. 
 
This development, said Tokunaga, has already made a huge impact on the cost of the social security system. If this trend continues further, naturally, expenditures on pension schemes and the national health system will increase, pressuring the country&rsquo;s finances. Therefore, Japanese public health care systems must respond urgently. Tokunaga explained that social dialogue in the pharmaceutical industry is considered the proper way for sustainable development of the sector and is the norm on how pharmaceutical unions must organize in Japan. 
 
For South Korea, representatives of the Federation of Korean Chemical Workers&rsquo; Unions (FKCU) described the challenges of pharmaceutical workers as job security, particularly with mergers or closures of production lines, and restructuring caused by multinational company mergers occurs. A further challenge is a change of pharmaceutical policies by the government, which includes an incentive system for low-price purchases and the crime of dual punishment in case of rebate or kickback. 
 
The workshop was participated by a number of union representatives from such pharmaceutical multinationals as Sanofi Aventis, Merck, GlaxoSmithKline, Bayer Schering, Takeda, Meiji, Tanabe, Hisamitsu, and Kawasumi. 
 
One country which has recently opened for international investments &ndash; Vietnam &ndash; has 39 registered foreign pharmaceutical companies with 6,500 employees. But only 14 of these are unionized with a total membership of 2,300, and just four collective agreements are in this sector in Vietnam. 
 
The workshop also received reports from the ICEM&rsquo;s &Ouml;zkan on &ldquo;Global Dimension of Industrial Relations: International Mechanisms, Social Dialogue, Global Framework Agreements, and Global/Regional Networks,&rdquo; and the &ldquo;Rising New Threat Against Working Conditions: Precarious Employment.&rdquo; 
 
After the discussions, workshop delegates unanimously decided to form the ICEM Asia-Pacific Regional Pharmaceutical Industry Network. For using electronic technology, a list of e-mails was prepared and immediate exchange of information will begin very soon. 
 
&ldquo;Just prior to the ICEM&rsquo;s World Conference for the Chemical Industries, to be held on 27-28 October 2010 in Istanbul, Turkey, the creation of this regional network is very promising,&rdquo; said &Ouml;zkan. &ldquo;It has shown us the opportunities and challenges within pharmaceuticals, and trade unions should be able to take further initiatives.&rdquo;

ICEM Asia-Pacific Pharma Workers’ Network Formed at Workshops in Indonesia

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Over 3,300 garment workers in Kandal province, southern Cambodia, have been sacked after they took strike action in protest of the new monthly minimum wage for the sector. That wage, set in July, is for US$61 a month. 
 
There is also widespread discontent among workers in the sector over poor working conditions and unemployment. The main cause of anger now is the retaliatory sacking of strikers, and especially of the trade union activists for their roles in the strikes. 
 
Workers had demanded a raise of the minimum monthly wage from US$50 to US$93. The new minimum of US$61 does not constitute a living wage in Cambodia. Unions began a four-day strike on 13 September. The strike did not become an issue for employers until the third day, at which time an estimated 200,000 workers had joined the walk-out. It was stopped on 16 September so talks could resume. 
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ITGLWF General Secretary Patrick Itschert
But then further strike action was carried out by 10,000 workers on 17 September, calling for the reinstatement of 200 suspended union representatives, blocked from returning to work in blatant breach of their rights to organize, bargain, and strike. 
 
Social Affairs Minister Ith Sam Heng called for the reinstatement of all sacked workers, and pleaded with unions not to strike. His call was followed by three factories in Kandal province employing 3,300 workers who announced their refusal to comply with the Minister&rsquo;s request. 
 
While it was the promise of more negotiations that stopped the strike, neither the government nor employers have indicated any likelihood of significant concessions. The government did call employers and unions back together on 27 September for talks. 
 
The International Textile, Garment, and Leather Workers&rsquo; Federation (ITGLWF) welcomed the meeting on September 27 brokered by the government, but criticised the strike-breaking tactics of Prime Minister Hun Sen&rsquo;s government. 
 
&ldquo;[The government] filed law suits against union leaders on charges of &lsquo;incitement,&rsquo; and appealed to the police to collaborate with the industry association GMAC in cracking down on the strike and in seizing materials which could be used in legal action against the strikers,&rdquo; said ITGLWF General Secretary Patrick Itschert. 
 
Clothing brands and retailers including Adidas, Gap, H&amp;M, and Levi&rsquo;s wrote to employers and unions to express their &ldquo;great concern&rdquo; at the unrest, but have expressed no concern over the poverty wages paid to those workers making their products. 
 
Global retailers must take responsibility for the social damage caused by the &ldquo;race to the bottom.&rdquo; It is impossible for workers to receive anything higher than poverty wages unless global retailers pay suppliers reasonable prices. Instead, suppliers are forced year on year to produce larger orders at lower costs. 
 
Kandal province, where the affected factories are located, completely surrounds but does not include the national capital Phnom Penh.

Cambodian Garment Workers Sacked for Striking

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Last week, the ICEM was involved in meetings in Ecuador to get acquainted with unions whose interests coincide with the Global Union Federation. These meetings were unfortunately overshadowed by events on Thursday, 30 September, in which a small band of disgruntled police officers attempted a futile coup. 
 
The Ecuador meetings were sponsored by the FNV, the Dutch trade union national centre, which also supported a study on Chinese investment in Latin America, carried out by social research organisations of the Red Lat network. The study was presented on 28 September, also in the presence of the Chinese ambassador to Ecuador. 
 
China portrays itself as a soft power, a promoter of development, but the harder side of Chinese investment is its quest for natural resources. Brazil, Chile, Argentina, and Peru are the countries that are the most attractive to China. Mining, oil, gas, and the accompanying infrastructure are the targets of Chinese investment. 
 
Unfortunately, China concentrates investments in areas that do not generate great employment. And even then, worker participation and decision-making in the production process are not considered. The sectors in which China invests primarily entail greater risks for precarious work, that is, mining and energy. For example, practices in the mining industry in Peru worsened after the arrival of Chinese investors. 
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One further concern involves Chinese workers who accompany the investments. If there were more Chinese workers, most likely their presence would lead to a serious decline in labor standards. 
 
In general, trade unions expect an employment boost from foreign investment, and if the investment is not followed by greater employment, then the country could be even worse off. 
 
What needs to be considered is the balance between environmental, labor, economic, social, and even gender aspects. The investments must be followed by decent work and decent pay. What has to be prevented is the replication of the bad practices on the part of most European and North American multinationals in connection with labor relations. 
 
Trade unions have learned that they must be involved in the design of industrial policies as well as demanding a commitment to their implementation. Trade unions in Latin America must increase their exchanges in order to track the investments, since effects may prove to be similar. The best way to face the onslaught may be increase regional coordination. What is at stake is ultimately the Latin American model of development which provides for national sovereignty, followed by job creation and social inclusion. 
On 29 September, a study was presented on a Friedrich-Ebert Foundation (FES) commissioned on post-subcontracting. It concerns mining, the oil industry, and electric power, and is the only study to date to deal with the effects of Ecuadorean legislation on the issue. 
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Ecuador is the only country to pass a law banning subcontracting. Chile, moreover, has a law from 2006 that intends to regulate subcontracting, and legislation is still pending in Brazil, but Ecuador's law prohibits it. 
 
Trade unions in Ecuador had been suffering from flexibilization of labor, but there had not been any analysis of it, there were no proposals to combat it, and no strikes had been called to fight it. 
 
The mining industry in Ecuador is geographically dispersed with little organizational capacity. Ninety percent of mining in Ecuador is informal. Thus, there is no need to make the miners any more precarious. 
 
Subcontracting has vital effects on health and the environment. 
 
Mandate 8, as the legislation is called, is not likely to have much effect in mining because there are no strong unions to implement the measure. In the oil sector, it is a state enterprise was responsible for subcontracting. Companies have found ways to circumvent the legislation. When they were required to reinstate the regular workers, they were reinstated at lower salaries with no seniority. 
 
The electric power industry was dismantled and many workers left. Very few were left over from the previous regime, others again came back as contract workers, with new and younger workers hired. What is certain is concern on the part of trade union for contract workers. The union also created a branch for contract workers. 
 
What the legislation shows is that it is possible to fight subcontracting successfully. Nevertheless, the effects can be reversed, and the problem may reoccur under another name. That is why strong trade unions are necessary more than ever to monitor and ensure implementation of legislation. 
 
The study will be revised with information from the unions and presented soon to the government.

Coup Attempt in Ecuador Does Not Derail ICEM Project

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