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Networks: working together internationally

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18 April, 2011One of the IMF's goals is to ensure an equal playing field for workers that goes beyond minimum standards. That is why the IMF stresses the importance of creating networks in transnational companies to promote solidarity and cooperation between trade unions representing workers in these companies.

Text / Valeska Solis

Translation / Chris Whitehouse

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On February 21, 2011, Gerdau dismissed three workers at its new plant in Tocancipá, Colombia. These workers were eager to join the union, Sintrametal. In response, workers at Gerdau plants around the world contacted company directors to demand an end to anti-trade union practices at the Tocancipá plant.

Since 2006, Gerdau workers internationally have written to management, conducted factory gate vigils and organized days of action to defend their rights. The IMF believes that such actions are essential if trade unions are going to be able to develop joint strategies for global action and challenge transnational companies (TNCs) in a context of globalization, technological progress and the growth of companies at the world level.

Whenever workers' rights are violated, whenever a factory is closed and masses of workers are dismissed, whenever workplace accidents occur at a transnational company, the trade union response must be international. To achieve this union representatives in different countries need to continually build their relationship, intensify solidarity and increase the capacity of affiliates to act together in any particular dispute.

Trade union networks can challenge the power of TNCs that use their international structure to escape their employment, social, economic and environmental obligations. One of the IMF's goals is to ensure an equal playing field for workers and that is why it stresses the importance of creating networks in TNCs to promote solidarity and cooperation between trade unions representing workers in these companies and throughout their supply chains.

The networks must be independent trade union bodies. They may be recognized by companies but they must always maintain their independence. They must be transparent and each union must participate in the network. Ideally networks will formulate an action plan setting out their objectives, the duties of the coordinator and how and when they will meet.

CROSS-BORDER EQUALITY

The fact that the conditions of workers employed by a TNC vary from plant to plant promotes competition between workers and this has been the reason behind the emergence of some trade union networks. Union leaders emphasize the importance of creating union networks linking workers at different plants in order to combat this situation.

Christian Pilichowski, of FTM-CGT, France who is a member of the Caterpillar network, says that the company promotes competition between workers at different plants, "which means we need unions in other countries to exchange information with us directly without going through management. Only the network is in a position to do this."

Siemens workers in India created a national trade union network because of the unequal conditions at the company's various factories, explains Uday Mahale of the All India Siemens Employees' Federation. This network has only been operating for less than a year and is not recognized by the company. It came about through a joint initiative of the IMF, IG Metall and the Friedrich Ebert Stiftung (FES) to tackle the differences between plants. "We want to eliminate disparities, improve conditions, promote equality between workers and replace local collective bargaining with national collective bargaining," says Uday.

"A company such as Daimler, with operations in 200 countries, always makes investments in an unequal way and always tries to play off workers in different countries against each other. This is why the goal of the Daimler World Employee Committee is to promote solidarity between workers to stop the company playing workers off against each other," says Valter Sanches, of CNM/CUT, Brazil and a member of the committee. Valter adds that "the company has tried to play us off against each other several times, for example, I remember the strike in South Africa in 2004, there was no production there so the company wanted to export cars from Brazil and Germany to South African markets, but we did not allow this because it would have undermined the strike, and this was a message to the company."

SOLIDARITY

Networks are sometimes created on the initiative of the IMF and sometimes on the initiative of workers at the plants themselves, in response to a specific event, such as occurred with the Gerdau and Tenaris networks. In 1998, Gerdau bought its first factory in Canada and this gave rise to the initial contacts with Brazilians. Later, unions representing workers at Canada went on strike and the Brazilian workers acted in solidarity with Canadian workers. In this way the network began to gain strength. In 2006, the workers held a first meeting in Brazil before the network was formally created in 2007. The Tenaris network was created after a strike in 2007, when Argentina workers acted in solidarity with Canadian workers who were on strike. Both networks are now World Employee Committees, although in both cases the companies prefer to negotiate locally and do not recognize the world committees.

The Gerdau network, which includes workers in Argentina, Brazil, Canada, Chile, the United States, Spain and Peru is seeking company recognition of the Gerdau Workers' World Council and hopes to negotiate an International Framework Agreement and set up a joint world committee to discuss health and safety matters.

The trade union representatives of workers at Tenaris in Argentina, Brazil, Canada, Colombia, Italy and Romania are united in the struggle to improve conditions at all the company's plants, seek company recognition of the World Committee and negotiate an International Framework Agreement.

THE COORDINATORS' ROLE

Strengthening the network depends on coordination and its capacity for organization so that its solidarity actions have an impact in all countries where the company operates. Experience within the IMF has shown that a good way to achieve this is when each network appoints a coordinator who should be a full-time official or union representative who is able to encourage an active and regular exchange of information, put together newsletters and prepare joint meetings and actions.

"Without a coordinator, I am not sure how well a network can operate. My experience is that without someone to coordinate the network, the network tends to collapse. This is another lesson we have learned," said Jorge Garcia-Orgales, of the USW and coordinator of the Tenaris and Gerdau networks.

"The most important thing is to keep in contact and look for opportunities," says Jorge, believing that the coordinator's job is to manage the network, including produce reports and distribute them to everyone in the network, coordinate ideas and meetings, organize days of action and decide on logistical issues.

Jorge believes the network's identity is important, and therefore, both World Committees (Tenaris and Gerdau) have a logo, an image they use on letters to governments, on each press release and on each presentation. "The logo is important to identify the network to workers, unions and the company," he says.

Another important aspect of the work coordinated by Jorge is the newsletters that carry information about activities, actions and struggles at each plant in their respective languages, English, Spanish and Portuguese. All workers receive the bulletin and know about the committee.

The Tenaris Workers' World Council decided at its meeting in Bergamo, Italy in September 2009 to take action after hearing a report from Jairo del Rio, the President of SINTRATUCAR a new company level trade union formed in Colombia.

At the September meeting, Rio reported on the difficult situation the workers face with company management at the Cartagena plant and the many death threats received by the SINTRATUCAR union board members.

THE IMPORTANCE OF SHOP FLOOR PARTICIPATION

"The Gerdau and Tenaris networks try to ensure that everything circulated by email is also printed and included in newsletters for distribution to all union members, so that information on the network's activities reaches the shop floor. At the national level, there is a continuous stream of information about how the network is operating. The networks are based more on the workplace than in the national union, which is a major and important difference," says Jorge.

Masahiko Ichinowatari, of the Japanese union federation IMF-JC, believes that, "creating a network is not difficult, the most important thing is to expand the contact between people. This is the really important thing. If we see ordinary workers have a problem, we tend to help and give the necessary support."

FROM NETWORKS TO COMMITTEES

In addition to global networks, there are also national and regional networks. These networks should complement each other and also take into account structures such as European Works Councils, World Works Councils and TNC committees on issues such as health and safety.

Valter Sanches, of the CNM/CUT, reports that in Brazil, Daimler does not formally recognize the national network, but the unions have been able to negotiate agreements with the company. He says that the network operates satisfactorily with regard to avoiding plant closures and promoting solidarity with strike action. The Daimler network in Brazil began in 1999, when a factory was started in Juiz de Fora in the state of Minas Gerais. Valter explains that workers in Brazil were not close to the company's global headquarters and therefore their capacity to intervene and influence the direction of the company and obtain information about the company's plans was minimal.

"However, the situation changed when we participated in the World Committee," said Valter. The World Employee Committee, which is recognized by the company and has an agreed constitution, was created in 2000 and has members from Germany, South Africa, Brazil, Canada, Spain, the United States and Japan.

"The stimulus for the creation of a World Committee was Daimler's merger with Chrysler, because we urgently needed to discuss the company's plans in view of the fact that mergers are always followed by plant closures and dismissals," explained Valter.

Another merger that resulted in the creation of a committee was the merger between Arcelor and Mittal, but in this case, there is a European Works Council rather than a World Committee. Luis Angel Colunga, of Spain's MCA-UGT, is the coordinator of the ArcelorMittal European Works Council. He explains that the European Council's role is information and consultation. The company has to provide information on specific issues, production, sales and research, and has the duty to consult with the European Works Council before taking decisions. This does not mean that the company takes the unions' advice, in the end it does what it feels is appropriate.

Luis says that relations with the company are good: "we have a smooth relationship, we have detailed discussions, but we still disagree on some points." In conclusion, he adds that the European model of social dialogue is good and should be extended to other areas. "I believe that this European model is valid, where there is permanent and sustainable dialogue," he said.

GUIDELINES FOR A NETWORK

One of the IMF's functions is to act as a facilitator and initiator of networks and its work in this respect resulted in the creation of the Siemens network in India in 2010 and the Caterpillar network, which was set up in 2010. The IMF also facilitated the creation of a regional network of ArcelorMittal workers in Latin America in 2011, where it provided technical assistance to help the network get organized and provided the network with tools to help it develop independently, from the shop floor up to the regional and global bodies.

The IMF will use union networks to build greater capacity for working together in defence of workers' interests. Trade union networks offer the opportunity to strengthen our influence by working together internationally.

Although each network's objectives might vary, the IMF believes there are common denominators. Important elements include support for affiliates from unions in the company's home country and direct communication between national and local union representatives. In some cases the networks enter negotiations with the company to seek recognition of the network, which could even include funding the network, as long as this does not compromise the independence of the union or the network. Ideally the networks will also include unions in the supply chain, including subcontracted companies, and finally each network should have a coordinator.

The IMF released new guidelines on trade union networks in TNCs at the end of 2010. "It is very important to create a network, given that the support of local unions is needed. These guidelines are the basics about how networks should be organized. For example, in the case of ArcelorMittal, the company operates in 60 different countries, with different cultures and the guidelines advise how to build a network that includes everybody in these countries and how to be open, transparent and strengthen local unions. This helps unions become stronger," explains Rob Johnston, IMF Executive Director.

Seven basic principles to establish a network:

A political mandate from the affiliates involved.

Trade unions in the home country of the TNC play a vital role in establishing and operating the network.

Networks should be independent union bodies.

The network should be transparent and open to all unions that wish to participate, with the agreement of the IMF affiliates.

Each union decides who participates in the networks, recognizing the importance of representation and participation from the shop floor.

An action plan should be developed to set out the objectives, priorities, structure, ways of communicating and the role of the coordinator.

The goal of the network is to increase the power of the unions vis-à-vis the company at the national, regional and global level.

THE GOALS OF A NETWORK

Trade union networks have different objectives: solidarity, equality of rights at all plants in the same TNC, company recognition, organizing in supply chains, agreement on an International Framework Agreement, agreements on health and safety, training and other issues of common interest. Creating, developing and managing union networks is not a simple task but will become an increasingly important activity. Jorge Garcia-Orgales of the Gerdau and Tenaris networks says "if we do not build up our power, the company will not pay any attention to us and having a strong organization will not be enough. We are going to have to think about the kind of activities that attract the attention of the companies more, given that they have not felt the need to sit down with us and negotiate internationally."

Although most trade union networks set up by IMF affiliates have still not been recognized by the companies in question, the networks have become relevant for employees, unions and companies. "Companies know that unions in different countries have the information and they know they can no longer tell lies and this strengthens workers," says Christian Pilichowski, of the Caterpillar network. Uday Mahale of the Siemens network in India adds that "trade union networks are the only way of using the globalization of workers to respond to the globalization of the TNCs."

The use of global trade union networks is very important both for strengthening the world employee committees formed by IMF affiliates and for monitoring International Framework Agreements, because they help to strengthen the trade union movement as a whole.

Trade unionists from around the world agreed to strengthen their cooperation and create a trade union network at Caterpillar, the world's largest manufacturer of construction and mining equipment, at a meeting in France in April 2010.