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Tripartite group agrees future TEM activities

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18 May, 2000Workers' delegation, coordinated by the IMF, feels positive about outcome of ILO meeting on transport equipment manufacturing.

GENEVA: Conclusions agreed by the workers' group, employers and governments at last week's ILO Tripartite Meeting on the Social and Labour Impact of Globalisation in Transport Equipment Manufacturing (TEM) underline first of all the importance of the TEM industry -- one of the most globalised -- for the world's economy.
As production and consumption of automobiles - the major industry in this sector - is concentrated in the industrial nations, it was agreed that the benefits of both needed to be spread more equally to the developing countries. More had to be done there to develop appropriate TEM industries, as well as more affordable and ecologically sustainable means of transportation. In order to increase demand, efforts had to be made to increase purchasing power as well. Thus, capacity would be more fully utilised and quality employment created. Governments are called on to pursue policies which stimulate growth and demand in a sustainable, equitable way. Both employers' and workers' organisations (read trade unions) need to consult and negotiate on how these policies can be accomplished.
As it was highlighted that women's involvement in the manufacture of transport equipment is still very low, even though they represent at least 50 per cent of transport equipment users, attempts to increase their hiring and participation rates at all levels were needed. Any workplace discrimination to hinder women's full participation in this sector should be eliminated.
With regard to implications for employment of mergers and acquisitions in the TEM sector, the meeting concluded that job losses in economies due to market saturation, overcapacity and structural change were likely. To help workers through economic downturn and industry restructuring, government, employers' and workers' organisations had to prepare for necessary measures. These could include retraining, job retention or an appropriate level of income protection. In the event that a TEM enterprise had to close a plant, the company needed to provide advance notice and information to all concerned. Representatives for both the employers and workers had to negotiate terms for the workers according to government policies.
As the motor vehicle and other segments of the TEM industries resort more and more to using suppliers and outsourcing, changes in employment relationships must not infringe on the right to organise and bargain collectively. Transferring and continuing to apply previously negotiated conditions are amongst many possibilities in such situations.
On the issue of productivity, it was agreed that growth is critical to enhancing the ongoing competitiveness of the enterprise and to raising standards of living. This growth, however, should come as a result of "working smarter, not harder."
Concerning teamwork, there are of course many factors determining how and in what form it is introduced and applied. It was determined by the meeting that team systems must not, however, be a form of discrimination against women, older workers, or workers with reduced capacity. Where appropriate, prior agreement between employers and workers' representatives on introduction and implementation of and participation in teamwork is a prerequisite for its good functioning.
Another issue included in the conclusions was that of social dialogue. Recent experience with European Works Councils was described and the members of government and worker delegations who took part in this discussion reported positively. It was unfortunate, however, that the employers' delegation, organised by the International Organisation of Employers, refused to allow reference to the employers in this statement. All agreed that guidelines for social dialogue had to ensure the rights of all parties are recognised and respected.
Other topics included in the conclusions dealt with training, combating unemployment, and occupational health and safety.
On ILO activity to assist in the process of change, it was noted that the ILO should maintain its campaign for the ratification of its Core Conventions. Here, again, the employers' group reacted in contradiction to policy adopted by many companies when they blocked any language referring to the promotion of occupational safety and health standards and the protection of women. All agreed that the ILO should continue its promotion of the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy and retain its tripartite character and focus on labour, giving equal access to its departments and activities for governments, employers' and workers' organisations.
A Resolution, proposed by the IMF-led Workers' Group, was adopted by the tripartite meeting. It recognised, among others, that "institutions of global governance such as the WTO, the World Bank and the International Monetary Fund promote economic globalisation and directly influence the economic programmes of developing countries," and that it was necessary to protect workers against potential adverse effects of innovations in technology and production processes. The Resolution called on the ILO Governing Body to:
- request the director-general to set up a database of social and economic statistics on the TEM industry;
- consider for inclusion on the agenda of the next session of the TEM sector: (1) the evolving composition of its workforce, changing employment relationships and skill requirements; (2) the importance of export processing zones and the informal sector in the TEM industry, and its impact on labour; (3) the observation and promotion of the fundamental principles and rights at work enshrined in the ILO Declaration on TEM industries;
- request the director-general to increase contacts with international agencies and financial institutions for promoting the ILO Declaration on Fundamental Principles and Rights at Work, and its follow-up.
Both the Resolution and the Conclusions will be submitted to the ILO Governing Body later this year.
The TEM sector includes passenger cars, motorcycles, light commercial vehicles, heavy trucks, coaches, buses, locomotives, subway cars, aeroplanes, marine engines, bicycles and ships.

Source: Conclusions and Resolution agreed by the tripartite meeting