Initiatives and Challenges while dealing with MNEs in Asia. Industri ALL

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1 Initiatives and Challenges while dealing with MNEs in Asia 1

2 On Organising There are many international standards covering MNEs including: ILO Conventions esp C. 87, 98, Recommendation 198 OECD Guidelines for MNEs UN Guiding Principles on Business and Human Rights UN Global Compact Global Framework Agreements (GFAs)

3 Initiative on Organising In Thailand where labour law protection for workers forming or joining trade union is relatively weak particularly in case of contract, agency, sub-contracted and outsourced workers, unions in MNEs which are keen on organising workers can initiate collective bargaining campaign demanding MNEs to recognise trade union rights of contract workers

4 CASE STUDY LINDE Group Germany

5 Linde Gases: A Case Study Linde Gases is the world largest industrial gases producer with headquarters in Germany. The company has invested in 100 countries including Thailand where it has taken over several plants formerly owned by British Oxygen Corporation (BOC)

6 Linde in Thailand Production: Industrial Gases/Oxygen/Nitrogen/ Argon/Hydrogen/CO/Co2 Production Sites and Distribution: 13 work sites in 7 provinces across Thailand Workforce: Regular: 850 Contract and Agency: 400

7 Sub-contract Labour Around 10 companies: Intel, GoodTeam, MonTransport Each sub-contract company supplies around workers making it easy for contract termination Wages and benefits are lower than regular workers Women workers (working in the office/accounting/cleaning/housekeeping) earn much less than male workers Some contract workers have worked up to 19 years

8 Union Policy and Action Organise contract/agency workers into the existing union set up by regular workers Organise TU Education for both regular and contract/agency workers Assist contract workers on cases of labour law violation Negotiate with the principal company on behalf of contract workers Immediate support for contract workers facing victimisation

9 Linde Gases: A Case Study In 2007, Linde transferred a group of tanker drivers to be employed through ADECCO labour agency ADECCO was assigned to pay wages and basic social security for the transferred workers but other working conditions remained the same

10 Practicing Freedom of Association by union - Amending Union Statute to enable contract and agency workers to join -Directly recruiting Contract and Agency Workers by the union shop stewards -Educating workers on FOA and CBA Rights -Initiating collective bargaining campaigns by unions demanding for regular employment and improvement of working conditions of contract and agency workers

11 Linde Gases: A Case Study TIG LU began to educate its members on contract/agency/outsoucing issue ADECCO workers applied for union membership with TIG LU In 2008, Linde company terminated its business contract with ADECCO and ordered the workers to sign new contract with new labour agency

12 Challenge Management refused dialogue on contract labour issue with the union Weak legal protection for contract/agency workers Govt officials obstruct contract/agency workers joining union of their own choice Contract/agency workers face intimidations and threats of dismissal

13 Linde Gases: A Case Study TIG union leaders immediately called for support of its members, most of whom regular workers of Linde A nation wide campaign was launched at 13 worksites of Linde in Thailand demanding Linde to take its responsibility, to directly hire these agency workers

14 Linde Gases: A Case Study Regular workers actively participated in the union actions The union represented Agency workers at the dialogue meetings Workers family also participated in the union campaign

15 Linde Gases: A Case Study

16 Linde Gases: A Case Study

17 Linde Gases: A Case Study

18 Linde Gases: A Case Study IndustriALL and IG BCE which organizes Linde company in Germany actively supported the union campaign IG BCE played an important role, urging Linde company to resolve this conflict through dialogue with Thai union

19 Linde Gases: A Case Study After two-weeks of worksites campaigns, dialogue meetings took place and agreement was reached between union and management in regard to the agency workers The Agreement set a milestone for Thai labour movement: the agency workers were recognised as union members in the same union with regular workers and they were covered by the same collective agreements

20 Behind the Success Story Unity of regular workers in waging the struggle with contract workers and active support of family members Union Education conducted for both Regular and Contract Workers Solidarity work by IndustriALL and affiliates in other countries Active support on union strategy by Korean trade union Active support by Media workers: Bangkok Post and Prachatai online in Thailand

21 Continue to Organise More contract and Agency workers were organised into the union: ESTEEM, Kelly, ISS, PC Service Regular education activities Collective bargaining with top priority on regular employment; LINDE refused dialogue which led to a 3-days strike in August 2008 to pressure the management to return to bargaining table New CBA was signed with article on regularization of contract/agency workers

22 Global Union Federation/IndustriALL Continue Support TIG Union in its struggle for Decent Work and Unionisation of Precariously Employed Workers IndustriALL initiated Social Dialogue with Linde management and Thai government to implement the Core Labour Standards The Linde Unions Network has been set up for Information Exchange and Solidarity Activity Social Dialogue with Linde s possible with the backing of IGBCE which organises workers at Linde headquarters in Germany

23 Majority of Union Workers work as Tanker Drivers A Part of this Distribution Business is now contracted out

24 Sub-contracted Truck Company in the Distribution Unit INTEL

25 Chevron Chevron Thailand Exploration and Production is the top natural gas and crude oil producer in Thailand, supplying about 40 percent of the country s natural gas demand Workforce: 2000 Employees 2000 Agency workers (Adisorn, Amrit, JST etc)

26 Organising LUCT (Chevron Workers Union in Thailand) organises Chevron employees mainly off shore workers Prior to Chevron, the business was under management of Unocal which had employed hundreds of workers through labour agencies for the past 30 years to work offshore at the oil and gas platforms in the Gulf of Thialand. Contract/agency workers work side by side with the regular employees

27 Organising Since 2000 the union has organised agency workers who worked at the oil & gas platforms A new union called Offshore Petroleum Workers Union was registered with Thai government The union attempted to unionise all the workers who worked on the platforms including exploration, production and canteen workers who were employed by a catering company

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29 Organising The Offshore Petroleum Workers Union managed to recruit 20 per cent of workers employed by the catering company which operated at the work sites/oil platforms. On behalf of these canteen workers, the union submitted a list of demands for collective bargaining with the catering company.

30 Challenge The catering company reacted by filing a complaint to the Ministry of Labour, questioning scope of the Offshore Petroleum Workers Union and its legitimacy in organising the workers in the catering and food industry

31 Challenge The Offshore Petroleum Workers Union argued on the basis of Labour Protection Law and Ministerial Decree No. 7 which allows unions to recruit members who are employed to work in the extended areas of company s premises. However, the labour officials did not follow the union s arguments, citing the clauses in the Industrial Relations Act which argues against it

32 Challenge In the end, the union decided to withdraw the demands submitted to the catering company. The Offshore Petroleum Workers Union still has membership in the canteen. But the functions of the union are very limited since it did not succeed in carrying out collective bargaining

33 Organising In the meantime, the union also recruited new members who worked in oil exploration and production. The workers worked at Chevron sites; they were recruited through labour agencies. The union went through a process of amending its scope of membership to include workers who had worked at Unocal s sites, apart from those who are currently employed.

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36 Organising 60 contract workers (20 per cent of total number of contract workers employed by Adisorn labour agency) joined the union. The union then submitted a list of demands for collective bargaining on behalf of these agency workers who were its members. The principal company management refused to accept the demands saying the contract workers were not their employees in spite of the fact that these workers wages and benefits were determined directly by the principal company management

37 Challenge The union argued on the basis of Principal Employer. But this was not accepted by the management. The union was pushed to decide whether to withdraw some of the demands concerning agency workers who were also their members or withdraw the whole list of demands altogether and risked to upset the union members who were regular employees. This problem could cause split in the union between members who were regular workers and those who were contract/agency workers

38 Recommendations for national federations/unions on precarious work Guarantee contract/agency workers access to permanent direct employment Require companies to bargain on the use of non-regular workers Provide for full equality of treatment between non-regular and directly employed workers Provide for full equality of wage, social security and OSH standards between precarious workers and permanent workers based upon the principle of equal pay for equal value work

39 Recommendations for national federations/unions on precarious work Assure contract workers effective rights to freedom of association and collective bargaining, including the right to join the same union as directly hired workers and be part of the same bargaining unit * Protect contract workers from unfair dismissal Ban disguised employment relationships, which hide the real employer

40 Role of National Federation/Union: Engage in reform of relevant labour legislation along with national confederations, federations and civil societies; Adopt a Policy to recruit and protect precariously employed workers i.e adoption of Policy/Resolution) at General Assembly/Congress; Amend union statute and rules, if necessary, to allow contract/agency workers to join the union

41 Role of National Federation/Union: Union shop stewards/permanent workers effectively organize contract workers on plants into the same union Conduct education to member unions on precarious work issue and its impacts on workers and families, unions and the society * Conduct education to workers at plant level (Key message: Workers are the same human beings regardless of their contracts and unions need to eliminate any discriminatory policies and practices against contract/agency workers) * Initiate collective bargaining involving permanent and contract/agency workers to demand for regular employment and improvement of working conditions

42 UNION ORGANING WILL CHANGE GOVERNMENT POLICY and REMOVE LEGAL BARRIERS

43 Electrolux - Following minimum wage increase in Thailand, Electrolux union submitted a new wage proposal to the management - Local management refused negotiation with union and made announcement on new minimum wage for Electrolux workers - Union members requested union leaders to pursue dialogue with management on their wage proposal - Management manipulated the situation, dismissed union president, called police and labour officials to come to the factory while accusing that union members were carrying out an illegal strike

44 Electrolux - More than 100 union members were dismissed - 3 months protests and picket lines in Bangkok at the government house and Electrolux sale office - While union leaders and members were struggling for reinstatement, management filed a court case against union committee - Thai government initiated dialogue meetings between local management and union reps but management refused dialogue - Through international intervention, Electrolux HQ agreed to reinstate all the dismissed union members and the leaders

45 Electrolux - When union met with local management, management refused to recognise the agreement signed by Electrolux HQ saying the case would have to be dealt with in Thai labour court - After many meetings with HQ management by IndustriALL and Swedish trade union, local management was forced to agree on reinstatement but continued to pursue the court case against union committee - After 6 months, union leaders started to find new jobs and in the end decided not to go back to work for Electrolux

46 Challenges - Principal/user companies deny responsibilities over contract/agency workers - Lack of Good Faith in negotiation - Weak labour law and problem of interpretation/opinion of Ministry of Labour s legal officers who are not in favour of union organising contract/agency workers - Inadequate TU training of contract/agency workers - Inadequate awareness training of regular workers on the issue of precarious work

47 "Knowing is not enough; we must apply. Willing is not enough; we must do."

48 Aranya