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Sub-Saharan Africa Region of ICEM Holds Workshop on Foreign Direct Investment

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2 November, 2009

The ICEM’s Sub-Sahara Africa Regional Organisation (SSARO), with the support of Germany’s Friedrich Ebert Foundation (FES), conducted a very successful workshop on Foreign Direct Investment (FDI) in Lusaka, Zambia, on 19-20 October. Participants from 12 countries, representing unions organising in the extractive industries, shared information on the impact of FDI in the mining and energy sectors.

The participants were enriched with the input of a number of presenters, mainly from Zambia who gave excellent presentations on the subject. Trade unionists agreed on the need for FDI in the region, but realised that such investment, left unchecked, can do more damage than good if trade unions do not engage both Chinese and western-based multinationals on the inherent need to respect workers’ rights, communities, the environment, and to ensure that governments – on behalf of the population – benefits from FDI.

It was further realised that unions and other stakeholders must guide against FDI corrupting governments and political leaders.

The workshop undertook to examine the shortfalls stemming from a similar ICEM workshop held in 2008 in Accra, Ghana. The failures were mainly on the issues of implementation and lack of communication, thus October’s Zambian workshop undertook to do better in those areas. This recent workshop pledged to follow through with the resolutions adopted at the Ghana workshop, and further resolved to undertake the following:

Data: All participating unions and other unions must send data to the SSARO regional office in Johannesburg with the following information: companies organised, sectors involved, ownership of companies, numbers of members in that company, unorganised workers in that company, and does the union have an agreement with the company?

Legislation: Is there any legislation governing multinationals in the respective African countries? Is the legislation implemented and acted upon by the companies? Are the laws being reviewed, and if yes, when and are the difficulties? Are unions involved in the review? If not, why? If yes, how often does the review take place, and how do unions influence. All affiliates of the ICEM must take part in the reviews and try to influence the direction of the review and the outcome.

Pan-African Standards: There must be Pan African Standards set that will be enforced by all countries in the region. There must be a model that will be applicable to regulate the operations of FDI, specifically Chinese investments. Efforts must be made by ICEM affiliates to ensure uniformity in terms of working conditions and economic emancipation. There is also a need for ICEM affiliates to promote effective networks in terms of information sharing, joint campaigns, and solidarity. There should be social dialogue between civil society, government, communities, and other stakeholders by assuring that there is adherence to all the laws governing FDI.

Organising and Building Power: Strengthening our collaboration with NGOs to forge links and cooperation to confront the challenges posed by FDI /Chinese investments. Strengthening solidarity campaigns in terms of confronting the challenges. A need to strengthen the coordination mechanism of the ICEM in the region to effectively coordinate campaigns and solidarity, and to lobby our governments to support the position of labour and communities on these campaigns.

Promote Corporate Social Responsibility and Awareness: To establish buy-in by the community and promote networking among trade unions.

Campaigns: Determining which campaigns to take up and when, and when doing so, to lobby governments for direct involvement of trade unions in negotiation of agreements aimed at acquisition of raw materials and mineral rights; to lobby for transparency in these agreements; to lobby and demand labour rights, human rights, community and environmental standards in these agreements.

In doing such, it is important to monitor International Finance Corporation/World Bank Performance standards, the ILO core labour standards, and standards set by the employer-based International Council of Mining and Metals (ICMM). As well, there must be a commitment to follow through with the resolutions adopted by SSARO, such as letter to CEOs and the lobbying of governments.

As an example of such campaigns, a day of mobilisation at Chinese embassies in Africa was suggested. This would include coordinated press conferences and protests on specific practices of Chinese employers and it would encompass support to ICEM affiliates which undertake actions against mining employers. (As an example, support to the Mineworkers’ Union of Zambia in its efforts to organise a Chinese mine. As well, the ICEM will develop a model labour standard to be incorporated into agreements to acquire raw materials.