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14 August, 2005ICEM News release No. 38/2004
Terms of the Global Framework Agreement between Svenska Cellulosa Aktiebolaget (SCA), the ICEM and the Swedish Paper Workers’ Union were announced this week. The Stockholm-based company along with the unions and SCA’s European Works Council signed the Global Agreement on 15 April 2004.
The agreement cites adherence to the Core Conventions of the ILO on workers’ rights, and states that such standards “should guide SCA’s activities and its relations to the employees.” It also includes language in which the company will inform sub-contractors and licensees of the agreement, and that it will encourage such parties to comply with the same standards.
Signing the SCA Global Agreement, from left,
Carl Lindqvist, chair of the SCA European Works Council;
Sune Ekbage, president of the Swedish Paper Workers Union; ICEM General Secretary Fred Higgs;
and Jan Astrom, SCA CEO and Managing Director.
Other points contained in the agreement:
• As a minimum, SCA will comply with all applicable legislative and regulatory requirements;
• The firm will strive for continuous improvement to workplace health and safety standards, as well as environmentally responsible behaviour;
• SCA will strive toward full non-discriminatory policies including ensuring equal development opportunities exist regardless of gender, race, ethnic background, sexual oreintation, religion, political affiliation or disability;
• The company will provide employees with opportunities to train for job enrichment and increased responsibilities;
• SCA commits to paying fair wages and benefits according to relevant market standards;
• The firm will be guided in its operations by provisions of the UN’s Universal Declaration of Human Rights; and
• SCA supports the effective elimination of forced labour and child labour, and it will make these criteria in the choice and management of suppliers and sub-contractors.
The Global Agreement also contains a process on how disputes pertaining to the agreement will be resolved and all parties will meet annually to review the framework agreement.
Sune Ekbage, chair of the Swedish Paper Workers’ Union, said the agreement is a “natural for a Swedish company such as SCA” that has “a long tradition of favorable relations with trade unions. I am convinced that this will favor SCA and it has come at exactly the right time, in view of discussions concerning ethical guidelines currently underway in Sweden.”
ICEM General Secretary Fred Higgs stated, “SCA has expanded to become a premiere worldwide pulp, paper and packaging company. We are pleased that SCA recognizes the need to uphold workers’ rights and build cooperative relationships with respective unions in all its global enterprises.”
Higgs said the agreement follows an excellent accord reached late last year regarding cooperation between SCA and ICEM US affiliate Paper, Allied-Industrial, Chemical, Energy (PACE) Workers Union. A part of that overall agreement contains a company pledge to remain neutral in union organizing drives by PACE at SCA’s non-union tissue mills in the US.
Higgs said SCA’s recent global expansions coincide with where the 20-million-member ICEM has trade union affiliates. In March of this year, the firm bought the tissue assets of New Zealand-based Carter Holt Harvey (CHH), the leading towel and tissue provider for both New Zealand and Australia. Additionally, SCA purchased the 50% share of a joint venture it had with CHH called Sancella that includes feminine hygiene products marketed in the two countries.
The company has expanded into Malaysia with purchase of a baby diaper firm. In Europe, SCA has enlarged both tissue and containerboard capacity in Spain, and purchased a packaging firm called Busto and Tema in Italy. SCA has also taken a controlling interest in a Mexican tissue company called Copamex.
Commented SCA CEO Jan Astrom on the global accord with the unions: “The agreement supplements the Code of Conduct adopted by the SCA Board of Directors earlier this year. The agreement is an expression of SCA’s willingness to assume social responsibility and act as an exemplary employer.”