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Trade unions demand a bigger say in building future Auto Industry

15 December, 2009Governments, employers and trade unions discussed the impact of the global economic and job crisis within the automotive industry in the Asia-Pacific.

JAPAN:  Fifty high level government, employer and trade union representatives from Japan, Republic of Korea, India, Thailand, Indonesia, Malaysia, Australia, and Philippines  examined the employment relationship and rights at work in the automotive industry at the Asian Regional Workshop for the Automotive Industry, held on 7-9th December in Tokyo (Japan).

According to a background paper prepared for the workshop "A substantial element of automotive industry employment since the recovery from the economic downturn of the early 1990´s has taken the form of temporary contract work, with labour recruited via employment agencies." Reports from the eight countries revealed interesting similarities but also differences, however in all of the countries the automotive industry is a cornerstone of industrial production and employment. Industrial relations however turn out to be different in all eight countries.

"The workshop was part of an action programme for the automotive industry. It was planned before the global economic crisis began but adapted in a way to better respond to the crisis." said Mr. George Dragnich, ILO Executive Director, and Social Dialogue, who organized the workshop.

Acting in his role as elected spokesperson for the trade unions Mr  Nishihara President of the IMF-JC and JAW stated that "For many workers in the industry the last year has been a difficult one that has been filled with uncertainty due to structural changes. Where ever possible we have been able to lessen the impact on workers  by negotiating measures to keep plants open often at a cost to our members terms and conditions of employment."

"We firmly believe that the involvement of workers in strategic decision making is a responsible and desirable approach for both employees and employers. Union involvement guarantees that employees are recognized as stakeholders with a long term interest in the success of the company, and also helps drive through changes with employee support which improve productivity and profitability", said Nishihara.

In a subsequent discussion about the need for social dialogue in the industry the employers group outlined the belief that it should not undermine the ability of managers to manage. The example given was the difficulties arising from sharing information on issues such as mergers, acquisitions and takeovers.

The trade unions however took a different view that if anything the current crisis had shown the need for all parties to work together to build a sustainable future. In addition the unions felt that they had a legitimate right to have a say in significant decisions which could affect the long term viability of a company. The role of the unions was not just to manage decline but should also be an equal partner in the decision making process. A formal report of the meeting will shortly be available from the ILO.