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ICEM Supports Common German Contract for Vattenfall Utility Workers

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28 February, 2006

The 20-million-member ICEM, the Global Union Federation for electric power industry trade unions, is calling on state-run Swedish utility Vattenfall AB to intervene with its German subsidiary to resolve a labour dispute with three German unions affecting 20,000 workers.

The unions, ICEM affiliate IGBCE, and IG Metall and Ver.di, are seeking a common collective agreement with Germany’s third largest utility in order to remove wage disparities and harmonise all terms and conditions. The three unions will stage a mass protest tomorrow, 1 March, in Berlin at the annual general meeting of Vattenfall Europe AG, the German subsidiary. (Smaller rallies by the three unions have been held at three sites since 21 February in protest to the deadlock in negotiations.)



21 February 2006 : rally in Cottbus, Germany

“We feel the time is now that the Swedish parent step in and grant equitable wages and conditions to all its German employees,” stated ICEM General Secretary Fred Higgs. “Vattenfall has integrated its acquisitions throughout Germany over the past few years, now it must harmonise wages and conditions.”

The three unions have been negotiating for a common accord with the Swedish subsidiary for two years. Besides bringing pay equity and uniform work conditions to workers, the unions are seeking an agreement from Vattenfall Europe AG that sale of any operations to another company will include the common collective agreement.

IGBCE’s Jobst Weissenborn, the union’s chief negotiator in the energy sector, said the company’s bargaining posture has provoked the rallies. He said the unions are prepared to take whatever steps necessary to ensure that the social standards of all Vattenfall workers in Germany come under a common agreement.


21 February 2006 : rally in Cottbus, Germany


ICEM affiliate IGBCE is the dominant union in east Germany’s power generation and distribution units, including the company’s lignite mines and the former LAUBAG enterprise, now held by Vattenfall. In the 1990s, Ost-Bewag came under control of Bewag, which has been 90% owned Vattenfall since 2002.

In 2001, Vattenfall acquired a majority stake in HEW, the Hamburg electric company that had previously been held by E.ON’s Bewag subsidiary. IG Metall is the primary union in Hamburg. Vattenfall also acquired its Berlin operations through buy-up of Bewag, giving it control of over 80% of the power market in Berlin, as well as 30% of the heating market. The company also has telecommunications, water and gas interests in Berlin, and public-service union Ver.di is the dominant union there.

Vattenfall’s Europe division also includes utility holdings in Poland and The Netherlands. The company is a major electric and power producer and provider in the Nordic countries.

Protests last week leading up to tomorrow’s major demonstration in Berlin saw 2,000 workers take to the streets on 21 February. Anther demonstration was held in the east German mining community of Cottbus on the same day, while on 23 February, over a thousand protested in Hamburg.