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ICEM Demands Rhodia Corporate Involvement

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12 August, 2005ICEM News release No. 21/2003

T he 20-million-member ICEM has demanded that Rhodia corporate executives in France step in to resolve an escalating pension dispute in the United Kingdom between the company and affiliates, two of which -Amicus and GMB-have engaged in industrial actions. The dispute rapidly deteriorated following talks 6 August before an independent conciliation service when UK managers failed to budge from its position.


At issue is the French multinational's insistence that new employees be dropped from a defined benefit pension scheme and placed instead in a money-purchase plan. Amicus and GMB members at two plants-Widnes, Chesire, and Oldbury, West Midlands-have begun a series of rolling, 24- hour walkouts.

On 21 August, ICEM General Secretary Fred Higgs wrote to Rhodia Chairman and CEO Jean-Pierre Tirouflet: "As you must be aware, two ICEM affiliated unions … have already exercised their lawful right to take industrial action over the issue, and more is sure to follow if this dispute is not resolved amicably. The ICEM stands staunchly behind the efforts of our affiliates to retain the pension scheme currently in place for both new and existing Rhodia employees. The ICEM is also prepared to bring this dispute to the attention of Rhodia employees worldwide, as well as to out many affiliated unions in the chemical sector throughout the world.

"Therefore, I call on you and Rhodia executives in France to intervene to create a constructive atmosphere that will ensure an acceptable settlement to the parties involved."

GMB National Secretary Gerry Veart earlier this week had written to Tirouflet, stating, "It is my view that this dispute will increasingly become more and more bitter if an acceptable solution cannot be found. I am therefore writing to you to suggest that a meeting be arranged with executives from your office with a view to reaching a settlement acceptable to all parties."

The 625 union members at the two plants voted per UK law in early July to commence industrial actions despite management inundating them with letters and explanations on why they shouldn't. Then on 17-18 July, workers walked out for 24-hour periods. Again on 15 August, the Widnes workers struck, and Oldbury workers have issued notice that they will withhold their services 5 September and again 19 September.

Rhodia operates five chemical plants in the UK with the Widnes and Oldbury sites former Albright and Wilson plants that have seen pension contribution levels rise steadily to 8% over recent years.