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ICEM, UK, US affiliates Take Imerys Work Practices to Shareholders

15 August, 2005ICEM news release No. 11/2005

On the May Day weekend before Paris-based Imerys' Annual General Meeting, national industrial unions from the United Kingdom and United States, together with two major Trade Union federations jointly condemned the company's work practices at worksites in southwestern England and the American south.

Unions representing Imerys workers in the two countries have been joined by the 20-million-member ICEM and the US national labour center AFL-CIO in condemning Imerys' anti-worker manner of labour relations. The international action also has the support of all five French trade unions that represent Imerys workers (CGT-FO, CFE-CGC, CFDT, CGT, CFTC ).

In the UK, Imerys has unilaterally and unconscionably closed a pension scheme that will hit pocketbooks of some 2,500 workers in and around Cornwall and Devon. Most workers are represented by Transport & General Workers Union (TGWU), and that union along with AMICUS and GMB begins industrial action balloting on 3 May, the same day Imerys holds its AGM. In the US, Imerys now has a five-year history of impeding unionization by PACE, now the United Steel Workers (USW), the largest industrial union in the US, and has developed a consistent pattern of punishing workers who display union membership. The union is in dispute with Imerys at two locations employing 650 workers.

Additionally, last week USW levied race-bias complaints against Imerys charging managers in Sylacauga, Alabama, with disparate treatment between black workers and white workers. The complaint, with the US government's Equal Employment Opportunity Commission, alleges white supervisors with enforcing work rules and imposing discipline more harshly on black employees, and cites management retaliation for those who have complained of the bias. The union has brought numerous unfair labour practice charges against Imerys dating back to 2002 and the US government has backed those charges by issuing formal violations against the company.

Imerys has settled specific labour law violations with formal pledges of "cease and desist" language with the US labour board, but such settlements have done little to block Imerys from violating US labour code in other instances over the past five years.

"Imerys has never stopped its efforts to destroy our union," stated Keith Fulbright, the USW Local 3-0516 branch president at Sylacauga, Alabama. "Imerys management purposely incites conflict and continually ignores US laws that protects workers against abuse, unsafe practices and racial discrimination."

At the other US worksite, Dry Branch, Georgia, a labour agreement between Imerys and the USW local union expired last month, and the company is seeking unlimited ability to contract out union jobs. Leading up to the 31 March expiration, Imerys has set the tone for its anti-union agenda by transferring massive amounts of kaolin production to a non-union worksite also in the state of Georgia. In Dry Branch, Imerys managers have also committed labour law violations as judged by the US government's labour board.

In the UK, Imerys in January unilaterally closed a final salary pension scheme to new employees, and dramatically downgraded benefit levels for existing workers. The unwillingness of management to engage in social dialogue with the British unions over the pension curtailments has caused the unions to initiate a ballot for industrial action.

The T&G said many workers would be forced to take pension reductions equivalent to one-third of the benefit value, while for some it will mean a 40% reduction. Such pain inflicted on retirement livelihoods of 2,500 workers was made worse considering Imerys took a three-year pension holiday from 2000-2003 and refused the advice of trustees in 2002 to start paying contributions again.

"Pensions are part of our members wages," said T&G Convenor Malcolm Mellow. "They are deferred until retirement, but Imerys has massively reduced these deferred wages without consultation with the union."

Mellow added, "The effect of this is severe and widespread. Not only on our members, their families and their lives, but on the surrounding area where reduced spending power from Imerys pensioners will become common."

The ICEM, a global union federation linking Trade Unions in the Building Materials sector as well as other key industrial sectors, has repeatedly called on Imerys to stop its anti-worker, anti-union practices. "Imerys now has a track record of arrogant and abusive worksite conduct, and has provoked labour disputes in two countries," stated ICEM General Secretary Fred Higgs. "Together with our American and British affiliates, we urge Imerys shareholders to recognise that such behaviour is not in their best interests."

Both ICEM affiliates have requested that their respective governments conduct investigations on Imerys under the Organisation of Economic Cooperation and Development's (OECD) Guidelines for Multinational Enterprises.