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4 May, 2009
On 15-16 April, the ICEM organised an Asia/Pacific-wide conference on Contract and Agency Labour (CAL) in Singapore. The conference, attended by 50 trade unionists, was held with the support of the Friedrich Ebert Foundation (FES) of Germany.
Participants spoke candidly on the ongoing problems of short-term contract and agency work, and other forms of precarious work, and how it affects their daily lives. The experiences expressed made it abundantly clear that the phenomenon is wide-spread, still on the rise, and detrimental to labour relations in Asia-Pacific countries. Such contributions, in addition to those from the ICEM and the FES, came from Singapore, Thailand, Philippines, Malaysia, India, Indonesia, Nepal and Korea, as well as from Sweden, Denmark, and Germany.
An omnipresent problem is that, in almost every Asian country, regular, permanent, and direct-employed workers are being replaced by CAL workers, who are often paid less than permanent workers. They never get the same benefits, nor do they have much of a job future. In Malaysia, for example, it was said that CAL in the past used to be almost uniquely a problem for migrant workers. This is no longer so. In Pakistan, trade unionists note a sharp increase in the use of “piece-rate workers.”
A concurrent issue expressed by all participants is the fear factor. Contract and agency workers are afraid even to discuss union issues, let alone join a union, since this often translates to an end to their fixed-term contracts. It appears to be a simple matter for companies operating in Asia to remove workers from their workforce, or to shift them to less secure jobs.
Among the numerous other problems mentioned was the lack of respect for law where there is some semblance of existing legal protections, such as in the Philippines, India, or Indonesia. Another problem voiced is that oftentimes there are too many unions in some countries, making cooperation difficult.
The positive news is that unions, slowly but surely, are starting to deal with the problem at all three levels that the global ICEM campaign on CAL is aimed at: legislative changes that not only protect workers from abuses, but also leading to more direct and permanent employment (a promising bill is being readied in the Philippines); work at company level, including making the issue key in collective bargaining as well as an organising priority; and evaluating internal union structures to ensure that CAL workers can effectively join trade unions. This has occurred in Thailand, Malaysia, India, Singapore, and Korea.
An important concern on this latter point, as acknowledged by all, is the need to organise more trade union work at industry or sector level, steering away from company-unionism, where it is often easy for employers to “divide and conquer” the two sets of workers.
Unfortunately, there are currently still many more problems than success stories. One specific example is the continuing problem in stemming the number of CAL workers at Linde in Thailand, an industrial gases company, and granting full-time, permanent employment to such workers.
Adverse examples given of “CAL employment techniques” in Asia include the use of standard 17-month contracts, in which the collective agreement calls for more rights and benefits for workers after 18 months. Another is supervisors who openly discriminate against CAL workers linked to a union. In the Philippines, companies have used blank resignation letters, asking CAL workers to sign before they even start work. Other workers have been asked to re-enter their current job, but under another name, thus preventing them from gaining increased benefits, or becoming part of the permanent workforce.