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ICEM Report Exposes Asian Cement’s CAL Practices

5 January, 2012

An ICEM report has found that the rights of workers in the cement industries of the Philippines, Indonesia, Thailand, Malaysia and India are being routinely violated through the use of precarious forms of employment.

In many of the plants covered by the research, Contract and Agency Labour (CAL) is being used to restrict or prevent workers from exercising their right to freedom of association. Lafarge in the Philippines, for example, has been using CAL workers to fill permanent positions ever since workers took part in industrial actions as far back as 2000. At one Lafarge plant in Indonesia, all permanent workers are union members, whereas none of the CAL workers are. In India, contract workers at Holcim were dismissed after they joined the union. To make it worse, the company started criminalising the union leaders.

ILO Conventions 87 and 98 apply to all workers, as explicitly stated in the 350th report of the ILO Committee on Freedom of Association: “The Committee emphasizes that all workers, without distinction whatsoever, whether they are employed on a permanent basis, for a fixed term or as contract employees, should have the right to establish and join organizations of their own choosing.”

   

The report further specifies that the non-renewal of a contract for anti-union reasons constitutes a prejudicial act within the meaning of Article 1 of Convention 98.

In all five countries covered by the research, CAL workers earn less than permanent workers – despite performing work of equal value – and are denied access to many of the benefits enjoyed by their permanent counterparts.

In both the Philippines and Thailand, permanent workers are increasingly being used only in supervisory roles. This division of responsibilities highlights the fact that it is often contract and agency workers who are performing core labour tasks.

CAL workers in many cement plants live with the burden of uncertainty. As one interviewee explained, he felt his job would continue only “as long as I will cooperate.” In the Philippines, some CAL workers reported that they do not even have written contracts. In many cases and countries, CAL workers are also not clear who is responsible for their welfare. In Thailand, agency workers are the most likely to suffer workplace accidents, yet in many plants they are denied the same health care benefits as permanent workers.

The ICEM decries these exploitative practices, and demands that multinational cement companies such as Lafarge and Holcim that operate in Asia guarantee equal rights for CAL workers and take urgent steps to bring their practices in line with not only the various applicable national legislations, but also with all existing international labour standards - including ILO Conventions 87 and 98 and the Employment Relationship Recommendation 198.

Cement companies must also act to ensure that they meet their obligations under the OECD Guidelines for MNEs and the United Nations Guiding Principles on Business and Human Rights.

The CAL Cement Report is available here.