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14 March, 2001The following is a short report of the USWA international conference on aluminium, held in Las Vagas on March 5-7, 2001.
The meeting was chaired by Dick Davis, Assistant Int. President USWA and attended by some 200 plus delegates from all of the aluminium plants in Canada and the USA, including several delegates from the IAM. In addition IMF affiliated trade unions from Australia, Germany, Sweden, Brazil, Russia, Ghana and South Africa, as well as two representatives from a non-unionised Alcoa-subsidiary in Mexico and the IMF.
Sheila Block and Carey Burnell from the USWA Research Department presented a report on all aspects of the bauxite alumina and aluminium industry, including an analysis of all of the major aluminium companies, addressing such issues as labour relations, company finance, capacity, production and consumption, prices, international trade, as well as the implications on employment resulting from merger activity.
Patti Seehafer and Kelly C. McCaffrey, USWA, presented very comprehensive reports on negotiating occupational pension plans and improved health and accident benefit provisions.
Leo W. Gerard, the newly-appointed International President of the USWA, pointed out that he was pleased to have the opportunity to address this important conference, so soon after his appointment, as it provided an opportunity to underline the importance of international trade union solidarity and to portray his vision of the future and the role of the USWA.
Mike Wright USWA Director for Health and Safety stressed the fact that the resolution of health and safety problems at work was a political rather than a technical issue, as the solutions were known and it was simply a question of the allocation of resources.
To assist all workers in the aluminium industry develop both an awareness of the problems and the required health and safety programmes, it was suggested that the IMF should produce a booklet for the aluminium industry, similar to the one produced for steel.
Len Powell, IMF, drew attention to the extremely serious consequences arising from exposure to radioactive contaminated scrap.
Dick Davis strongly supported the proposal to publish a health and safety booklet for the aluminium industry, which would assist in the development and adoption of common health and safety provisions, based on best practices, for all aluminium workers. Adding that leading companies such as Alcoa, Alcan, Pechiney and Kaiser, would have some difficulty in rejecting such a proposal. Furthermore, the USWA would be negotiating a new master collective agreement with Alcoa later this year and such a proposal will be an important part of the union's demands.
After conveying his message of solidarity and support, on behalf of the twenty-three million metalworkers in the IMF family, Marcello Malentacchi underlined the importance of the aluminium industry, which is growing faster than any other metal, as new applications are being developed that exploit the advantages aluminium has to offer.
The need for stable and sensibly priced electricity supplies was highlighted by the fact that some companies in the USA could make much higher profits by closing down their plants, then re-selling the electricity they did not use.
The aluminium industry is undergoing a period of consolidation and restructuring, with a wave of mergers and take-overs resulting in a concentration of ownership that further intensifies competition, and with the development of massive MNCs like Alcoa, for example, with subsidiaries in almost every part of the world, they become the pace setters for wages, working conditions, occupational health and safety and environmental provisions, for the industry as a whole.
This makes it increasingly important for the trade unions which represent the interests of the workers in such companies, to develop the necessary structures to facilitate the international solidarity and cooperation that will become increasingly important in the years ahead.
There is an urgent need to overcome the lack of unity at both the national and international level, and we will seek to achieve this by establishing IMF Country Councils where they do not already exist, and complement these developments at the individual company level, through the establishment of IMF World Company Councils.
An important aspect is the negotiation of draft Codes of Conduct for those companies where we have established World Company Councils.
The IMF's Corporate Code of Conduct sets out to establish that all workers in a single company are guaranteed "Core Labour Standards", and ensure decent wages and working conditions for all the company's employees, including those who work for sub-contract companies.
It is clear that we are facing some difficult times and, with the election of a Republican President, the situation is not going to get any easier, but I am confident, that as long as the workers in the metal industries continue to cooperate, and provide the support and solidarity that was shown by those who helped to form the IMF over 100 years ago, then we can and we will succeed.
Dick Davis pointed out that with the overall reduction in union membership, we have seen a drop in wages, pensions, cost of living agreements and retiree benefits, as well as an increase in contracting out and a shift to individual plant bargaining. Consequently, we urgently need to establish a global trade union movement.
In the general discussion which followed, the dramatic change in the approach of management at Kaiser Aluminium, following the change of ownership, led to a strike and then to a two year-long lockout as a result of Kaiser's challenge to the long established "pattern bargaining" practice in the USA aluminium industry.
In addition to seeking international trade union solidarity and support, it was necessary to forge an alliance with environmental groups in order to win the necessary public support, as well as pursuing our claim through the legal system. Indeed, when the lockout was declared illegal, Kaiser became liable for over $350 m. in back pay, which forced them to reinstate their employees and return to the negotiating table.
Another significant victory was won at South Wire Aluminium, where a Federal Judge ordered the company to take back all of the former workers, but the company refused to reinstate the 17 that had been dismissed after being convicted of various offences whilst on picket duty. Following negotiations with Century Aluminium, who are in the process of buying the South Wire plant, the 17 steelworker members who were fired, will all be reinstated.
Lawrence Mc Brearty USWA in Canada, stressed the importance of international trade union solidarity. Faced as we are with a wide range of regional trade agreements, that are designed to increase profits and eliminate all obstacles that would prevent the achievement of that goal, trade union solidarity is the only solution. Adding that the next meeting for the proposed FTAA, which will include all American countries apart from Cuba, will be meeting in Quebec next month.
The many governments attending this meeting will be seeking to extend the rights of companies to make profits in line with those provided in NAFTA. And while the USWA has not been invited to participate in this meeting, he assured those present that the USWA in Canada would make their views known, and he invited all present to join with them in their protests.
Gerry Fernandez USWA International Department noted that the USWA has a proud history of defensive struggles, but we now need to establish the necessary networks with other trade unions and forge alliances with NGOs, to ensure we are able to achieve our goals.
Reference was made to the plight of Mexican employees of an Alcoa plant in the maquiladoras, where they have denied their workers the right to join or form a trade union.
Country reports
Sweden
It was noted that a 3 year collective agreement had recently been signed, providing improved job security as well as additional holidays and early retirement, and an increase of more than 10% in wages.
It was pointed out that the Swedish aluminium industry consists of just 3 companies, which employ a total of 10,000, of which 3,000 are in Sweden. There is only one primary aluminium smelter, producing 60,000 tpa.
Australia
- Aluminium is important to the Australian economy, employing 13,000 workers, two-thirds of which are members of trade unions.
Two plants closed recently, with the companies blaming overseas competition, and although we have negotiated good redundancy packages this is not what we wanted, as we would have preferred to save the jobs of our members.
The trade union movement in Australia has been under severe attack, with the Conservative Government supporting both the use of scab labour to break a dock strike, and BHP's attempt to force its employees to sign individual contracts of employment and abandon their collective agreement, which would result in beginning of the end of union recognition in the iron-ore mines. Despite the best efforts of the union, significant numbers are being persuaded to sign individual contracts by the offer of increased pay.
Germany
It is clear from the reports we are hearing that we are all suffering the same problems and we need to practice international solidarity and not just talk about it. It was suggested that we should establish a contact list with the names, addresses, etc. for union officials in all Alcoa and Alcan plants.
The proposed mergers between Alcan, Pechiney and Alusuisse was conceived in secret and the workers only found out via the mass media. As a result IGM successfully lobbied the European Commission to reject the merger on anti-trust grounds.
The globalisation process is likely to result in the existance of just five major aluminium companies in the not too distant future, and it is essential that we form an international world company council to ensure the workers are in these massive companies properly represented.
A Canadian delegate pointed out that when the APA merger was announced, they were told the 10,000 job losses that were announced would take place in France and Switzerland, yet when they contacted the unions in these countries, they found that their management had told them exactly the same story.
This underlines the need for us to cooperate much more closely in future, in order to prevent management from playing off workers in one country against those elsewhere.
Alcan workers are planning to meet in Quebec in April to establish a WCC, and we need the IMF's help to create WCCs for Alcoa and Kaiser.
Gerry Fernandez explained that the new International President Leo Gerard strongly supported the proposal to establish WCCs, as this type of initiative was one of his highest priorities.
There are 13,000 non-unionised Alcoa employees in Mexico and we should target this plant to help our fellow workers who receive less than $1.00/hr, to enable them to achieve basic trade union and human rights and a decent standard of living.
Mexico
The problems faced by those working in the maquiladora area in Mexico do not only involve a struggle for better wages and working conditions, but even involve such basic items as toilet paper, which the company strictly rations to its employees.
When we sought to negotiate improvements in wages and health and safety provisions, management stalled by asking for six months to prepare their response. When we subsequently asked the company for its decision, they claimed that it was only 24 workers who were causing the problems.
Mounted police were brought in and used excessive force against the workers who organised a sit-in to draw attention to their claim. Some of the police kicked workers who were sitting on the ground and used tear gas to disperse the workers. Alcoa subsequently sacked their entire workforce, but finally agreed to reinstate all of the 1,600 workforce, with the exception of the 24 trade union leaders who management claimed were responsible for the demonstration, even though some of them did not take part in the struggle. A second Mexican delegate noted that they are seeing the emergence of democracy in the trade union movement in Mexico. However, many local town councils try to attract companies like Alcoa to establish plants in their locality by promising union-free workforces.
We find it more effective to speak to management of the parent company rather than those in the local plants. Indeed, when we raised this issue with Alcoa management in the USA, all of the 24 union officials were reinstated.
It is not the working conditions that we are complaining about, but long working hours and the extremely low level of wages, which means that our living conditions are abysmal, with no running water or sanitation.
Brazil
Aluminium output has been steadily increasing with investment in new production capacity, making Brazil the sixth largest primary aluminium producer with 1.2 mtpa.
Reflecting the high costs of energy, labour costs only account for 10% of total production costs, resulting in employment costs becoming less important.
The trade union model in Brazil is very different from that in the USA, as it was copied from the Italian fascist system. And despite the fact that Brazil has ratified the ILO Core Conventions, the major companies collect union dues from their employees and gives them to the officially recognised right wing union and not to the CNM-CUT which has the bulk of the membership.
South Africa
1994 was a turning point in South Africa and the trade unions played a major role in the first democratic elections, resulting in the election of the ANC Government.
However, the opening-up of our market resulted in many companies, which were previously protected by import tariffs, being forced into bankruptcy, resulting in widespread unemployment with many of the former factories becoming warehouses for imported goods.
Collective bargaining takes place at the national, as well as at the company and plant-level. We negotiate 2 or 3 year contracts with automatic cost of living compensation. All trade unions meet to agree to a common platform of demands, before meeting management.
There is a serious lack of investment in the necessary infrastructure, with many rural areas having no electricity supplied and often where it is, the workers cannot afford to pay for it.
Billiton was a major employer in South Africa with more than 4,000 workers at four sites. Now employment has fallen by 75% and the company has invested in a new aluminium smelter in Mozambique, with the eventual intention of shutting down their South African operations, as it pays its Mozambique workers one seventh of that paid in South Africa and will be exempt from paying any taxes for several years, while they are able to purchase surplus energy production from ASCOM -- the South African public utility, at a much lower price than it pays in South Africa.
Furthermore the workers at the Mozambique plant were forced to accept a no-union contract.
Russia
The Metalworkers' Union in Russia is only 10 years old, and although this has been a very difficult time, we have found our place in the Russian and international trade union movement.
103,000 trade union members are employed in the Russian Aluminium sector, with Rusky Aluminy and Sual representing 70% and 20% respectively.
As domestic demand is improving, we are increasing secondary transformation production and reducing the level of exports. And while the companies are seeking to reduce the level of established social provisions, we are defending them very vigorously.
Ghana
The aluminium industry has one 150,000 tpa primary smelter along with a hydro-electric dam and an excellent education system, which were all a part of the vision of the founding fathers when Ghana achieved its independence from British rule 44 years ago yesterday. The country, which had been subject to 24 years of military dictatorship, is in a sorry state, but elected a democratic government in December 2000.
In summing up the issues raised in the meeting, Dick Davis stressed the need for workers to share the information they gained during the course of this meeting, and in particular to let Alcoa management know how disillusioned you are with their behaviour.
A joint OH & S meeting is one possibility and this will be put in our negotiating package when we meet Alcoa management on the 17th May.
We also pledge ourselves to continue cooperating with the AFL-CIO to help our colleagues in the Alcoa plants in Mexico form a trade union and negotiate a better standard of living for themselves and their families.
____________meeting terminated______________
Sheila Block and Carey Burnell from the USWA Research Department presented a report on all aspects of the bauxite alumina and aluminium industry, including an analysis of all of the major aluminium companies, addressing such issues as labour relations, company finance, capacity, production and consumption, prices, international trade, as well as the implications on employment resulting from merger activity.
Patti Seehafer and Kelly C. McCaffrey, USWA, presented very comprehensive reports on negotiating occupational pension plans and improved health and accident benefit provisions.
Leo W. Gerard, the newly-appointed International President of the USWA, pointed out that he was pleased to have the opportunity to address this important conference, so soon after his appointment, as it provided an opportunity to underline the importance of international trade union solidarity and to portray his vision of the future and the role of the USWA.
Mike Wright USWA Director for Health and Safety stressed the fact that the resolution of health and safety problems at work was a political rather than a technical issue, as the solutions were known and it was simply a question of the allocation of resources.
To assist all workers in the aluminium industry develop both an awareness of the problems and the required health and safety programmes, it was suggested that the IMF should produce a booklet for the aluminium industry, similar to the one produced for steel.
Len Powell, IMF, drew attention to the extremely serious consequences arising from exposure to radioactive contaminated scrap.
Dick Davis strongly supported the proposal to publish a health and safety booklet for the aluminium industry, which would assist in the development and adoption of common health and safety provisions, based on best practices, for all aluminium workers. Adding that leading companies such as Alcoa, Alcan, Pechiney and Kaiser, would have some difficulty in rejecting such a proposal. Furthermore, the USWA would be negotiating a new master collective agreement with Alcoa later this year and such a proposal will be an important part of the union's demands.
After conveying his message of solidarity and support, on behalf of the twenty-three million metalworkers in the IMF family, Marcello Malentacchi underlined the importance of the aluminium industry, which is growing faster than any other metal, as new applications are being developed that exploit the advantages aluminium has to offer.
The need for stable and sensibly priced electricity supplies was highlighted by the fact that some companies in the USA could make much higher profits by closing down their plants, then re-selling the electricity they did not use.
The aluminium industry is undergoing a period of consolidation and restructuring, with a wave of mergers and take-overs resulting in a concentration of ownership that further intensifies competition, and with the development of massive MNCs like Alcoa, for example, with subsidiaries in almost every part of the world, they become the pace setters for wages, working conditions, occupational health and safety and environmental provisions, for the industry as a whole.
This makes it increasingly important for the trade unions which represent the interests of the workers in such companies, to develop the necessary structures to facilitate the international solidarity and cooperation that will become increasingly important in the years ahead.
There is an urgent need to overcome the lack of unity at both the national and international level, and we will seek to achieve this by establishing IMF Country Councils where they do not already exist, and complement these developments at the individual company level, through the establishment of IMF World Company Councils.
An important aspect is the negotiation of draft Codes of Conduct for those companies where we have established World Company Councils.
The IMF's Corporate Code of Conduct sets out to establish that all workers in a single company are guaranteed "Core Labour Standards", and ensure decent wages and working conditions for all the company's employees, including those who work for sub-contract companies.
It is clear that we are facing some difficult times and, with the election of a Republican President, the situation is not going to get any easier, but I am confident, that as long as the workers in the metal industries continue to cooperate, and provide the support and solidarity that was shown by those who helped to form the IMF over 100 years ago, then we can and we will succeed.
Dick Davis pointed out that with the overall reduction in union membership, we have seen a drop in wages, pensions, cost of living agreements and retiree benefits, as well as an increase in contracting out and a shift to individual plant bargaining. Consequently, we urgently need to establish a global trade union movement.
In the general discussion which followed, the dramatic change in the approach of management at Kaiser Aluminium, following the change of ownership, led to a strike and then to a two year-long lockout as a result of Kaiser's challenge to the long established "pattern bargaining" practice in the USA aluminium industry.
In addition to seeking international trade union solidarity and support, it was necessary to forge an alliance with environmental groups in order to win the necessary public support, as well as pursuing our claim through the legal system. Indeed, when the lockout was declared illegal, Kaiser became liable for over $350 m. in back pay, which forced them to reinstate their employees and return to the negotiating table.
Another significant victory was won at South Wire Aluminium, where a Federal Judge ordered the company to take back all of the former workers, but the company refused to reinstate the 17 that had been dismissed after being convicted of various offences whilst on picket duty. Following negotiations with Century Aluminium, who are in the process of buying the South Wire plant, the 17 steelworker members who were fired, will all be reinstated.
Lawrence Mc Brearty USWA in Canada, stressed the importance of international trade union solidarity. Faced as we are with a wide range of regional trade agreements, that are designed to increase profits and eliminate all obstacles that would prevent the achievement of that goal, trade union solidarity is the only solution. Adding that the next meeting for the proposed FTAA, which will include all American countries apart from Cuba, will be meeting in Quebec next month.
The many governments attending this meeting will be seeking to extend the rights of companies to make profits in line with those provided in NAFTA. And while the USWA has not been invited to participate in this meeting, he assured those present that the USWA in Canada would make their views known, and he invited all present to join with them in their protests.
Gerry Fernandez USWA International Department noted that the USWA has a proud history of defensive struggles, but we now need to establish the necessary networks with other trade unions and forge alliances with NGOs, to ensure we are able to achieve our goals.
Reference was made to the plight of Mexican employees of an Alcoa plant in the maquiladoras, where they have denied their workers the right to join or form a trade union.
Country reports
Sweden
It was noted that a 3 year collective agreement had recently been signed, providing improved job security as well as additional holidays and early retirement, and an increase of more than 10% in wages.
It was pointed out that the Swedish aluminium industry consists of just 3 companies, which employ a total of 10,000, of which 3,000 are in Sweden. There is only one primary aluminium smelter, producing 60,000 tpa.
Australia
- Aluminium is important to the Australian economy, employing 13,000 workers, two-thirds of which are members of trade unions.
Two plants closed recently, with the companies blaming overseas competition, and although we have negotiated good redundancy packages this is not what we wanted, as we would have preferred to save the jobs of our members.
The trade union movement in Australia has been under severe attack, with the Conservative Government supporting both the use of scab labour to break a dock strike, and BHP's attempt to force its employees to sign individual contracts of employment and abandon their collective agreement, which would result in beginning of the end of union recognition in the iron-ore mines. Despite the best efforts of the union, significant numbers are being persuaded to sign individual contracts by the offer of increased pay.
Germany
It is clear from the reports we are hearing that we are all suffering the same problems and we need to practice international solidarity and not just talk about it. It was suggested that we should establish a contact list with the names, addresses, etc. for union officials in all Alcoa and Alcan plants.
The proposed mergers between Alcan, Pechiney and Alusuisse was conceived in secret and the workers only found out via the mass media. As a result IGM successfully lobbied the European Commission to reject the merger on anti-trust grounds.
The globalisation process is likely to result in the existance of just five major aluminium companies in the not too distant future, and it is essential that we form an international world company council to ensure the workers are in these massive companies properly represented.
A Canadian delegate pointed out that when the APA merger was announced, they were told the 10,000 job losses that were announced would take place in France and Switzerland, yet when they contacted the unions in these countries, they found that their management had told them exactly the same story.
This underlines the need for us to cooperate much more closely in future, in order to prevent management from playing off workers in one country against those elsewhere.
Alcan workers are planning to meet in Quebec in April to establish a WCC, and we need the IMF's help to create WCCs for Alcoa and Kaiser.
Gerry Fernandez explained that the new International President Leo Gerard strongly supported the proposal to establish WCCs, as this type of initiative was one of his highest priorities.
There are 13,000 non-unionised Alcoa employees in Mexico and we should target this plant to help our fellow workers who receive less than $1.00/hr, to enable them to achieve basic trade union and human rights and a decent standard of living.
Mexico
The problems faced by those working in the maquiladora area in Mexico do not only involve a struggle for better wages and working conditions, but even involve such basic items as toilet paper, which the company strictly rations to its employees.
When we sought to negotiate improvements in wages and health and safety provisions, management stalled by asking for six months to prepare their response. When we subsequently asked the company for its decision, they claimed that it was only 24 workers who were causing the problems.
Mounted police were brought in and used excessive force against the workers who organised a sit-in to draw attention to their claim. Some of the police kicked workers who were sitting on the ground and used tear gas to disperse the workers. Alcoa subsequently sacked their entire workforce, but finally agreed to reinstate all of the 1,600 workforce, with the exception of the 24 trade union leaders who management claimed were responsible for the demonstration, even though some of them did not take part in the struggle. A second Mexican delegate noted that they are seeing the emergence of democracy in the trade union movement in Mexico. However, many local town councils try to attract companies like Alcoa to establish plants in their locality by promising union-free workforces.
We find it more effective to speak to management of the parent company rather than those in the local plants. Indeed, when we raised this issue with Alcoa management in the USA, all of the 24 union officials were reinstated.
It is not the working conditions that we are complaining about, but long working hours and the extremely low level of wages, which means that our living conditions are abysmal, with no running water or sanitation.
Brazil
Aluminium output has been steadily increasing with investment in new production capacity, making Brazil the sixth largest primary aluminium producer with 1.2 mtpa.
Reflecting the high costs of energy, labour costs only account for 10% of total production costs, resulting in employment costs becoming less important.
The trade union model in Brazil is very different from that in the USA, as it was copied from the Italian fascist system. And despite the fact that Brazil has ratified the ILO Core Conventions, the major companies collect union dues from their employees and gives them to the officially recognised right wing union and not to the CNM-CUT which has the bulk of the membership.
South Africa
1994 was a turning point in South Africa and the trade unions played a major role in the first democratic elections, resulting in the election of the ANC Government.
However, the opening-up of our market resulted in many companies, which were previously protected by import tariffs, being forced into bankruptcy, resulting in widespread unemployment with many of the former factories becoming warehouses for imported goods.
Collective bargaining takes place at the national, as well as at the company and plant-level. We negotiate 2 or 3 year contracts with automatic cost of living compensation. All trade unions meet to agree to a common platform of demands, before meeting management.
There is a serious lack of investment in the necessary infrastructure, with many rural areas having no electricity supplied and often where it is, the workers cannot afford to pay for it.
Billiton was a major employer in South Africa with more than 4,000 workers at four sites. Now employment has fallen by 75% and the company has invested in a new aluminium smelter in Mozambique, with the eventual intention of shutting down their South African operations, as it pays its Mozambique workers one seventh of that paid in South Africa and will be exempt from paying any taxes for several years, while they are able to purchase surplus energy production from ASCOM -- the South African public utility, at a much lower price than it pays in South Africa.
Furthermore the workers at the Mozambique plant were forced to accept a no-union contract.
Russia
The Metalworkers' Union in Russia is only 10 years old, and although this has been a very difficult time, we have found our place in the Russian and international trade union movement.
103,000 trade union members are employed in the Russian Aluminium sector, with Rusky Aluminy and Sual representing 70% and 20% respectively.
As domestic demand is improving, we are increasing secondary transformation production and reducing the level of exports. And while the companies are seeking to reduce the level of established social provisions, we are defending them very vigorously.
Ghana
The aluminium industry has one 150,000 tpa primary smelter along with a hydro-electric dam and an excellent education system, which were all a part of the vision of the founding fathers when Ghana achieved its independence from British rule 44 years ago yesterday. The country, which had been subject to 24 years of military dictatorship, is in a sorry state, but elected a democratic government in December 2000.
In summing up the issues raised in the meeting, Dick Davis stressed the need for workers to share the information they gained during the course of this meeting, and in particular to let Alcoa management know how disillusioned you are with their behaviour.
A joint OH & S meeting is one possibility and this will be put in our negotiating package when we meet Alcoa management on the 17th May.
We also pledge ourselves to continue cooperating with the AFL-CIO to help our colleagues in the Alcoa plants in Mexico form a trade union and negotiate a better standard of living for themselves and their families.
____________meeting terminated______________