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Contract and Agency Labour - a Global and Negative Phenomenon

21 November, 2007

Throughout a one-day, 21 November, ICEM conference on Contract and Agency Labour (CAL), taking place prior to the Global Union Federation’s 4th ICEM World Congress in Bangkok, Thailand, speaker after speaker confirmed that the trend of industry subcontracting is rapidly increasing throughout the world.

Predominant is the continuing trend of subcontracting in developing nations. With few exceptions, the 300 trade unionists attending cited specific problems with agency, temporary, short-term contract, or self-employment labour, relating directly to the lack of a (decent) employment relationship.

For many of the world’s workers, affecting most industries, a prior, normal relationship has been reduced to one of much lesser quality. For others, the relationship has changed to a mere commercial one, with workers’ taking the job security risks, and an erosion of social benefits affecting both workers and society.

The ICEM conference produced several examples in which subcontracting is becoming rampant on several continents. In the mining and diamond sector of India, virtually all miners are contract labourers. In Thailand and Korea, examples were cited where CAL work is omnipresent.

Africa was described as globalisation’s play ground. In the mining sector of sub-Saharan Africa, many problems are created by investors who think anything in the employment realm is possible. Other examples came from a wide variety of countries, including Russia, Ukraine, Moldova, United States, Japan, Tanzania, Peru, and the UK.

A special contribution came from Hassan J’Aama, President of the Iraqi Federation of Oil Unions (IFOU).

The conference also delivered, however, case studies in which unions and trade unionists have succeeded in rolling back the trend. One such example came from Brazil. At the oil firm Petrobras four years ago, there were three contract workers for each permanent worker. Today, after sound bargaining by trade unions, the ratio is one permanent worker to every one-and-a-half contract worker.

Chile, Uruguay, South Africa, Macedonia, and Croatia were also quoted as countries where progress has been made, both legislatively and at the collective bargaining table.

Hassan J’Aama, President of Iraqi Federation of Oil Unions (IFOU)

Given the difficult situation in many countries, and the need by many to hear how others deal with temporary or agency labour, the ICEM was called upon to continue and intensify its three-year-old campaign on this employment issue.

A key ingredient of this work is the need to guarantee that all CAL workers - everywhere - are entitled to the same wages, benefits, and work rights as the permanent workers.

Also stressed was the importance of legislation efforts in regard to contract and agency labour, preferably at nation-wide level. The principles of the ILO Recommendation 198, the Employment Relationship Recommendation, will be an important tool in this.

Finally, it was agreed that unions need to reach out to short-term contract or temporary workers. In too many countries, such workers have faced resentment from trade union members. Setting up unions, or union divisions, for CAL workers, or – by many, the preferred option – simply bringing CAL workers into existing union structures, is seen as an important and needed accomplishment.