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World union leaders discuss future of base metals industries

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14 October, 2022On 11 and 12 October, IndustriALL’s Base metals steering committee met online to discuss the future of the steel and aluminum industries in the face of a global crisis.

The dialogue was led by sector co-chairs Sanjyot Vadhavkar, from SMEFI, India, and Dave Mc Call, from USW, USA.

Base metals industries suffer from the supply crisis caused by Russia’s invasion of Ukraine. The market is volatile, and some producing countries like China, are expanding their capacity despite a growing overcapacity and a sluggish demand. In addition, two trends are revolutionizing the sector; the need for a reduction of greenhouse gas (GHG) emissions requires a new and changed setup of production, particularly in the steel industry, which is responsible for one-third of the industrial GHG emissions worldwide; and new technologies to achieve carbon neutrality in the industry. They are available, but are very costly and require huge investments.

The digitization of production changes jobs and skills requirements, as well as the working environment in steel and the aluminum industries. Industry 4.0 is a threat to jobs - at least to traditional jobs. The union leaders in the steering committee discussed how to meet these changes. Although IndustriALL offers support to affiliates, measures have a limited reach as long as China, the biggest producer with over 50 per cent of global capacity and output, does not participate in the efforts to reduce GHG emissions. Instead, they produce high volumes of cheap steel with traditional blast furnaces.

Participants also discussed with Annie Heaton, CEO of the multistakeholder standard organization Responsible Steel, about the challenges and opportunities of certified steel production to promote steel production with less GHG emissions and better working conditions. Annie Heaton invited all IndustriALL affiliates to join Responsible Steel as civil society members.

IndustriALL assistant general secretary Christine Olivier addressed the committee, calling on them to take action to better protect the workplaces in the industries.

Matthias Hartwich, IndustriALL base metals director urged affiliates to:

“Embrace the changes that are coming: digitization is transforming the sector and reducing the CO2 footprint is a big challenge for both the industry and the workers. We must pilot our affiliates and their members through the changes to safeguard jobs and working conditions. We must and we will make this a just transition. This is also what we, together with our sister organization industriAll European Trade Union, demanded together with TUAC at the OECD Steel Committee earlier this month. We will stay alert, and we will deliver tools and instruments to our affiliates. Workers must not carry the burden of the base metals industry’s transition.”