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Hurricane Reaps Whirlwind Over Kazakh Oil Workers' Rights

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12 August, 2005ICEM news release No. 35/2002

Canadian-headquartered Hurricane Hydrocarbons faces global trade union protests over its anti-labour stance in Kazakhstan. Unless the dispute is resolved quickly, it may spark a complaint to the OECD.

"Regular violations of workers' rights" are committed at Kazakh oil refiner OAO ShNOS, says the 20-million-strong International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM). ShNOS is managed by Hurricane Hydrocarbons.

A number of actions by ShNOS management run counter both to Kazakh law and to international standards, ICEM General Secretary Fred Higgs points out in a letter to Hurricane's President and CEO Bernard Isautier:

- ShNOS has consistently blocked the collective bargaining process for the past three years, in contravention of Kazakh labour laws.

- Women workers on maternity leave are being prevented from returning to work. This too is illegal.

- An elected union official, T. Tsareva, editor of the local newspaper, has been sacked. This violates Kazakh laws which forbid the harassment of elected union officials. It also breaches similar worldwide standards set by the UN's International Labour Organisation and ratified by Kazakhstan.

ShNOS, despite its steadily increasing income, has refused to compensate workers for inflation over the past three years. Moreover, Higgs states, a "planned outsourcing policy and massive redundancies have put at risk the jobs of hundreds of employees and the lives of their families".

Two important breaches of OECD corporate governance principles are pinpointed in the ICEM's letter:

- ShNOS "refuses to supply economic information to the union needed for collective bargaining".

- The company "refuses to allow the local union to take part in negotiations on restructuring of ShNOS (outsourcing), which touches vital interests of a considerable number of workers and their families". This refusal violates local law as well as OECD guidelines.

Isautier should "immediately intervene, personally" in the situation at ShNOS, Higgs urges. "In the event of your failing to remedy your gross violations of Kazakh law and codes of international practice, I wish to inform you that we are considering raising a case at the OECD concerning your company's behaviour."

The ICEM will be keeping in touch with affiliated unions in both Kazakhstan and Canada over developments.