5 January, 2012
A global ICEM Conference dedicated to discussing CAL took place immediately prior to the ICEM Fifth Statutory Congress in Buenos Aires on 23 November. The Conference brought together more than 400 delegates from 69 countries to exchange stories of best practice, to evaluate work done on CAL, and to probe the future fight against Contract and Agency Labour (CAL).
The meeting was chaired by Sergio Novais, ICEM Vice President for Latin America/Caribbean, with an introduction by ICEM General Secretary Manfred Warda, who said, “This conference is about an issue that has been one of the highest on the political agenda of the ICEM for many years. But despite our efforts, CAL is still spreading. In some countries it has become the regular employment situation.”
Sergio Novais
For individual workers, Warda said, there is more job insecurity, less regular hours, lower and irregular pay, fewer benefits, and in many cases no access to social benefits and an increased health and safety risk. There is evidence that CAL is being used by employers to deny workers their right to freedom of association, and in many countries CAL workers are either legally or in practice prevented from joining a union.
The conference began with ICEM CAL Project Coordinators and Jörgen Juul Rasmussen, General Secretary of DEF Denmark, introducing the CAL situation in Asia, Latin America, Sub-Saharan Africa and Europe. Aranya Pakapath, ICEM CAL Coordinator for Asia, shared a number of recent developments in the fight against CAL. In India, following a number of training workshops conducted by the ICEM, the Indian mineworkers’ union managed to negotiate a clause on CAL in a new mining sector agreement. The language states that companies should not engage contract workers on work of a permanent nature and that payment of contract workers will either be by cheque or bank transfer – so there is proof there is a relationship.
In Malaysia, said Pakapath, the government last year attempted to introduce legislation to legalise employment agencies. After a conference the ICEM held with the Malaysian Trades Union Confederation (MTUC), the confederation petitioned the government to withdraw the bill. The bill was withdrawn, but last month was reintroduced and Parliament approved it. Pakapath highlighted the efforts of unions in Indonesia –where the paper unions have been actively organising outsourced workers and succeeded in recruiting 580 workers – and the Philippines where unions have been trying to ban employment agencies through legislation and the industrial courts.
In Pakapath’s home country, she noted that at the Electric Generating Authority of Thailand (EGAT), EGAT-LU, with the solidarity and support of the Danish Electricians’ Union, managed to make fixed term workers into permanent workers, who are now entitled to social benefits.
The ICEM and German affiliate IGBCE supported the Linde union in their struggle to get the industrial gas company to take responsibility for and respect the rights of CAL workers which finally resulted in the signing of an agreement between the company and the union.
Elias Pintado of Brazil – who works together with Rosane Sasse to coordinate the CAL project in Latin America – highlighted some of the work carried out by ICEM affiliates to fight CAL and to improve legislation on outsourcing. Pintado explained that, with the exception of Brazil, all countries in the region have specific legislation to regulate outsourcing.
Often these laws stipulate joint responsibility for employers who use outsourcing. In Brazil, the national congress is currently debating 26 bills to regulate outsourcing, most of which make it possible to outsource almost all functions. Brazilian unions are currently trying to collect one million signatures in support of one particular bill that would safeguard workers.
Other Latin America unions have brought legal cases on the basis of legislation in force in countries, and in some cases have met with success. As a result of the many cases taking place in Brazil, the Higher Labour Court held a consultation on outsourcing. The chemical workers’ union has negotiated a code of conduct with Bayer in Brazil on outsourcing, which states that the employer is required to discuss CAL with the unions and inform the unions of the reasons why certain sectors would be subject to outsourcing. The code guarantees that user enterprises will pay wages and taxes for the CAL workers if the agency fails to do so.
Before agencies can work for Bayer they must prove that they have no responsibility regarding workers’ wage arrears. Pintado informed delegates that on 28 July 2011, the Latin America Day against CAL was launched at a seminar in Colombia. Following the seminar, ICEM affiliates wrote to the head of Mercosur proposing unique legislation in the region on CAL. Many trade unions in the region have modified their statues and set up secretariats dedicated to CAL to monitor implementation of contracts and to represent workers. There are also shop stewards elected from among the CAL workers.
The Sub-Saharan Africa strand of the ICEM CAL project has carried out activities in Senegal, Guinea Conakry, Sierra Leone, Nigeria, Mozambique, Mauritius, South Africa and Namibia. In the multitude of cases, the region has the aim of strengthening union negotiations and campaigns, to find solutions to negative practices, and to influence governments to introduce binding regulations on the use of CAL.
A report by Joseph Toe, ICEM CAL Project Coordinator for the region, highlighted the fact that unions are joining forces on these common objectives. In Guinea, the three ICEM affiliates have formed a CAL Steering Committee; in Nigeria, the two ICEM affiliates in the oil and gas sectors are working closely together, and there is close cooperation between ICEM’s affiliates in South Africa and Namibia.
Toe highlighted how Global Framework Agreements (GFAs) with Anglo Gold Ashanti and Umicore have been used to create space for collective agreements that cover all workers. In Sierra Leone, the Ministry of Labour has an action plan to stop the extension of agencies. In Nigeria, the Ministry for Petrol has published guidelines to control the activities of agencies.
The guidelines cover industrial relations, collective bargaining for CAL workers, employment security and vocational training for CAL workers. In Mozambique, SINTIQUIAF has recruited into their ranks 300 CAL workers – the majority of whom are women aged 18-30. There is excellent cooperation between the labour inspectorate and the leadership of SINTIQUIAF, and labour inspectorate officials have attended all ICEM CAL seminars. The statutes of some unions have been amended – for example, Mauritius and Senegal – to make it possible for unions to recruit CAL workers.
Introducing the CAL situation in Europe, Jörgen Juul Rasmussen of Denmark, said that insecure work is the most rapidly-growing form of employment in Europe said that about 14% of all workers in Europe are on precarious jobs. At a company level, said Rasmussen, it is vital that shop stewards address the problem. In Denmark, the unions are fighting at the national level to include language on CAL in CBAs and the labour courts have ruled that when you have an agreement it must also apply to CAL workers.
In Europe, for many years unions have demanded a Directive on agency work – this was agreed in 2008. All EU member states are implementing the Directive, although some countries are finding national solutions. Globally, unions can use ILO Conventions and Recommendations and, where necessary, engage in global campaigns.
European labour organisations EMCEF, EMF, and ETUF: TCL have agreed that CAL is a major negotiating priority.
Rasmussen highlighted some inspirational examples from Europe. For instance in Denmark, there is a major industrial agreement with a paragraph that says CAL workers should have the same rights as permanent workers. In Sweden, the unions and employers have joint committees to authorise the use of agencies and agency workers must have the same average wages as their permanent equivalents.
A 2010 agreement, states that companies cannot hire agency workers if they have dismissed permanent workers over the previous six months. IF Metall in Sweden has agreed that employers must negotiate with the union before taking on agency workers for more than one month. In the construction sector in Belgium, the unions managed to ban the use of one-day contracts through collective agreements.
The second part of the conference saw the exchange of best practice examples, with panels composed of ICEM affiliates from Mauritius, India, the Netherlands, Colombia, Senegal, Malaysia, Turkey and Argentina. Sascha Meijer described how FNV Bondgenoten is working to protect the rights of between 3,000 and 4,000 migrant workers involved in a major construction project in the Netherlands. The migrant workers, the vast majority of whom work through agencies or subcontractors, put in long days for low wages, do not get extra pay for working weekends, and are deducted amounts for accommodation and transport.
The wrong social security regime is being used and the cheapest CBA – the wrong one – is being applied, all amounting to unequal pay for the same work. FNV Bondgenoten in the Netherlands developed a new, flexible approach to organising workers in this challenging context. They are building relationships with the workers, using the media to name and shame the exploitative agencies and employers, and making sure that relevant questions are put to Parliament.
Bondgenoten is establishing better relations with unions in the home countries of the workers, and has signed a framework agreement with the energy employers on CAL matters, which includes a procedure for resolving conflicts and it also necessitates regular dialogue. Meijer highlighted the need for stronger international cooperation between unions to make union membership more worthwhile for migrant workers.
Panellists shared examples of actions being taken at national, company and trade union levels in the fight for permanent direct employment and for equality of treatment. At the national level, Sutids, the industrial workers’ union of Senegal, launched an awareness-raising media campaign, communicated with employers and lobbied the President of Senegal, the national assembly, the Senate and the Ministry of Labour. These actions contributed to the passing of a bill on employment agencies.
The provisions include employers can only use temporary workers to carry out specific tasks, and not for more than two years; that CAL workers must be paid the same as permanent workers; and that at the end of the contract the agency must pay 7% of the total gross remuneration during the whole period of the contract. Sutids also recruited 1,200 new CAL members.
In Mauritius, in October, the ICEM affiliate SYNDICATRAVAYER signed the first ever collective agreement in the construction sector where permanent and CAL workers are both covered – there is a 15% wage increase for all workers and, most importantly, all workers doing work of the same value must be equally remunerated.
ICEM Turkish affiliate Petrol-Is drew attention to the protocol signed with Tüpraş, Turkey’s largest industrial enterprise, which states that CAL workers must become permanent employees once they have worked at the company for seven months. The Chemical Mazdoor Federation of India reported that an affiliated union managed to recruit all 650 CAL workers in a chemical plant, who then got almost all the benefits given to permanent workers.
At the same time, there are several cases pending in the Indian courts as unions have filed complaints against employers for using “sham and bogus” contracts. For more than ten years, Sintracarbon of Colombia has been organising CAL workers. Some 6,000 of the 11,000 workers at Carbones del Cerrejon, the world’s largest open cast coal mines, are contract workers – they work long days, are far from their families, and are paid the minimum possible. Recently, the union had successes in organising mechanical workers and is working on a set of demands with the supplier company. Now 20% of Sintracarbon’s members are contract workers.
The panellists also discussed actions unions are taking to improve recruitment, active involvement and representation of CAL members. In India, dedicated unions have been established for CAL workers and others have opened their door to CAL workers – for example the Indian National Mineworkers’ Federation has succeeded in organising 10,000 CAL members. In Mauritius, SYNDICATRAVAYER amended their rules and reduced membership fees from 50 Rupees to 1 Rupee. The union constructed a two-story building which members can use, created an IT school were CAL workers and their families can receive free training and established a credit union where members can take out loans. Within 18 months, 3,000 new members have been recruited in the construction sector alone.
The final panel of the day, comprising the General Secretaries of the IMF, the ICEM and the ITGLWF and chaired by the Coordinator of the Council of Global Unions, Jim Baker, discussion centered on future strategies. Jyrki Raina, IMF General Secretary, said that the fight against precarious work must be one of the key priorities of the new global union federation, which will be founded in June 2012. Raina explained that cooperation with the ITUC and all other GUFs is vital as we are facing the powerful lobby of MNEs and Ciett who want to use international institutions to legitimise the spread of precarious work.
Employers argue that temporary agencies create new jobs but, said Raina, the fact is that temporary agencies make decent jobs, with social protections, precarious jobs. Unions should work to limit the use of precarious work in all its forms and if precarious work is used unions should work to guarantee the same level of wages and benefits for all workers.
According to ILO figures, 80% of all workers have no social security protection – this has to be a priority for the new global union. ICEM’s Manfred Warda reflected on the First Global CAL Conference in Bangkok in 2007, where the problem of CAL was identified. Since then, Warda said, serious work has been taken by ICEM affiliates and the affiliates of other GUFs, which must form the foundations for future work.
The first task is organise, organise, organise. CAL workers must be included in the bargaining unit, and unions should help them gain permanent employment status. Warda highlighted that factors contributing to recent mining disasters included that workers did not get adequate safety training and were not employed directly. Following the Deepwater Horizon disaster, BP said that the responsibilities were shared by various subcontractor companies.
Klaus Priegnitz, ITGLWF General Secretary, spoke about how conditions in textile plants in countries such as the Philippines and Bangladesh are being driven down even further by the growing use of CAL. The only objective, he said, is to have cheaper and cheaper labour.
He said we must fight this at a national level – organise, recruit and become stronger. We can use GFAs as tools to fight precarious work. We should also use the revised OECD Guidelines for Multinational Enterprises. In summary, the General Secretaries drew attention to the importance of continuing and expanding the joint work carried out through the Council of Global Unions Work Relationships Group. They said that the ICEM, the IMF and the ITGLWF must increase cooperation and the founding of a new GUF is the right next step – the three GUFs will be stronger together.