28 May, 2011Workers at Bridgestone South Africa returned to work on May 19, ending an eight week lockout. National Union of Metalworkers of South Africa (NUMSA) made the decision with workers after an unfavourable labour court ruling that deemed the lockout legal and with due regard to the hardships that the 1,200 workers endured during the lockout, going two months without pay.
SOUTH AFRICA: The drawn out saga with Bridgestone started during wage negotiations with the tyre sector in August 2010. Employers tabled for discussion the number of workers earning above the maximum for their grade known as red circled workers. In addition to an across the board increases, the parties also agreed to seek out a way to bring these workers back into the grade maximum. A wage retardation formula for red circled workers for the industry was agreed to with all parties except Bridgestone. The agreement reflected this, stating Bridgestone's position as a separate item in the agreement being challenged by NUMSA. On the basis of the agreement, NUMSA ended its month long strike with other employers and in good faith suspended the strike with Bridgestone, in order to the further negotiate with the company on its red circle worker position.
Bridgestone then announced that if NUMSA does not accept its proposal on wage retardation for red circled workers that it is not bound by the agreement in its entirety. This would mean that Bridgestone was not obligated to pay across the board wage increases under the agreement for all other approximately 1,050 workers and 'red circled' workers. Bridgestone also contested the right of the industry association to sign off on the agreement on its behalf potentially undermining the institution of centralised bargaining.
The matter went to arbitration and despite requesting an expedited hearing on the matter, three hearings were necessary, beginning early in December 2010 and ending late February 2011. In his ruling dated February 22, 2011, the arbitrator found that Bridgestone was bound to the industry agreement signed by the employers association and should pay increases as stipulated in the agreement for non red circled workers and that NUMSA and Bridgestone should continue to negotiate an agreement of a retardation formula to be applied to those earning above the maximum for their grade. NUMSA made repeated attempts to engage Bridgestone to reach such an agreement and accept the industry-wide position on red circled workers. Bridgestone remained stubborn and on March 22, 2010, taking advantage of the slowdown in industry-wide demand as a result of the Japanese tragedy decided to take offensive action to force the union to agree to its unilateral position by locking out all of its 1,200 workers at both its plants.
At this point NUMSA sought solidarity support from its members as well as other unions in South Africa and abroad. IMF African affiliates responded to the call and most sent letters of solidarity to NUMSA and called on Bridgestone to respect the central bargaining process. Several other unions outside of the region, notably some of those that organise Bridgestone workers in other countries, also sent letters to Bridgestone SA warning that they were ready to back NUMSA with actions at the company's plants that they organise.
NUMSA applied to the labour court for a urgent interdict to have the lock out declared illegal as the union was pursuing negotiations and there was no strike in action but the court ruled on a technicality that the lockout was legal because of the suspended strike. This award on the April 15, 2011 was unexpected as trade unions often suspend a strike in good faith to re-engage in negotiations, diffuse tensions between parties and alleviate pressure on workers during the long drawn out industrial action. The precedent setting award, deeming the lockout at Bridgestone as legal, undermines the use of strike suspension as a tool available to labour in the future. NUMSA is challenging this award, looking to take this for appeal.
NUMSA resumed the Bridgestone strike and organised a march to the Japanese Embassy on April 25 to demand their intervention on the Bridgestone lockout. The embassy responded to NUMSA saying that the Japanese government encourages all Japanese multinational companies to comply with labour legislation in the countries they operate but cannot intervene on a collective bargaining matter.
Striking workers also marched to Bridgestone plants in Port Elizabeth and Brits early in May demanding that the company honour the industry agreement with respect to red circled workers and end the lockout. Despite growing pressure at home and internationally Bridgestone refused to budge.
During the lockout Bridgestone SA refused to engage NUMSA, instead the company told workers that if they wished to return to work they would be expected to individually sign acceptance of their wage offer, effectively shutting out the union and undermining the right to collective bargaining. As the contentious issue affected a minority of the workers, those that are red circled, it was only a matter of time before the strain placed on workers through a lack of income would start to erode their resolve. The company also resorted to dirty tactics to attack their unity, which included threatening their jobs by bringing in former workers that had been retrenched by the company.
NUMSA recognised that when the labour court deemed the lockout as legal, the power balance shifted. The union decided that it was not going to give in quietly and put up a fight, which was an acknowledgement of the workers' that had got this far from strength through unity. The union symbolically took back the power by reinstating the strike and gave workers the chance to reinforce morale by marching their demands to the Embassy and Bridgestone.
While Bridgestone might have gained marginally for its profit line at the expense of workers, it has suffered a massive loss in terms of employee good will and industrial relations in general, tarnishing the image of the company internationally. NUMSA has acted in good faith throughout this dispute and the extent of solidarity shown between workers has been impressive. Bridgestone workers know that was only the intransigence of management that resulted in their unnecessary suffering. They have not lost sight of the fact that the original strike achieved its objectives in the industry and for the vast majority of the Bridgestone workforce.
NUMSA General Secretary Irvin Jim acknowledges the fight put up by Bridgestone workers, "We thank our members at Bridgestone who, together with their shop stewards, demonstrated solid unity for an extended period of time, resolutely fighting back against brutal union bashing by their employer. They have sent out a clear message, there are active committed union members at Bridgestone and NUMSA has effective organising power at these plants." He goes on to say, "Just because workers have gone back, doesn't mean the union and members accept the unilateralism of Bridgestone. Our struggle is not over, we are prepared to take on this exploitative employer again and again until we have victory for workers."