TU Training for GUFs in Asia-Pacific on Globalization, Workers’ Rights and CSR

IFBWW Experiences with MNCs on Framework Agreements

IFBWW’s Framework Agreements with MNCs

IKEA (Furniture) – 1998, Sweden Faber Castell (Pencils) –1999, Germany Hochtief (Construction) –2000, Germany Skanska (Construction) –2001, Sweden Ballast Nedam (Construction) – 2002, The Netherlands Impregilo (Construction) – 2004, Italy Veidekke (Construction) – 2005, Norway Schwan - Stabilo (Writing, Drawing and Instruments and

Cosmetic Pencils) – 2005, Germany LaFarge (Cement) – 2005, France

Case Study - 1

IFBWW and SKANSKA Framework Agreement

Union Background - MAMU• Registered under the Trade Union

Act, 1926 since 1996

• Affiliated to INTUC at National Level

1996 onwards

• Affiliated to the IFBWW from 1998

• Representing construction workers in the National Capital Territory of Delhi

• Organizing Labour under SKANSKA and other MNCs in the Delhi Metro Rail Project

SKANSKA Delhi Metro Rail Project

•SKANKSA with other MNCs - KUMAGAI, ITOCHU engaged in Delhi Metro Project

•Project started in May 2001

•Cost of Project 9.90 billion rupees (Approx. US$ 22 Million)

•HCC is the leading supplier of labour required for the project

LABOUR PROFILEWork Force employed by the contractors

• Around 5000 workers involved in the project through 65 sub-contractors

• 90% are inter-state migrant workers

Staff appointed by SKANSKA

• Only 15 employees consisting managers, engineers and other professionals

• 14 are from Sweden and 1 from Canada

Working Conditions - I • No appointment letters

• I-card issued without date of joining

• No service records

• No pay-slip

• Minimum wages as fixed by the State Govt.

• Compulsory 11-hour working day

• No OT at double rate

• Absence of weekly off, holiday payment, leave

Working Conditions - II• Workers covered under PF

• Absence from work means loss of job

• Delay in getting wages

• No safety committees at worksites

• No transport and housing facility

• Workers are living in nearby slums

Working Conditions - III• Insufficient OHS facilities

• More than 25 accidents occurred

• 5 Death cases

Retrenchment of workers

• Around 3000 workers retrenched

• No payment of legal dues

• PF deducted but no account slip

IFBWW Framework Agreement Partially Honoured

•Right to organize and collective bargaining denied

• No response to union letters and violations reported to the company

• Refusal to meeting union officials

Union & IFBWW Initiatives - I.14 January 2004: Meeting with SKANSKA Management with Bro. Christer (Byggnads), Bro. Nicklas (SEF)

• Management agreed to discuss workers’ problems with MAMU

• 14 February 2004: MAMU requested SKANKSA management for joint meeting – NO RESPONSE

• Reminders for joint meeting sent on 8, 15, 31 March & 21 April 2004 to the management – NO RESPONSE

• 29 April 2004: Union complained to Labour Commissioner for tripartite consultation on workers’ problems

• 12 May 2004: Letter from Bro. R.C. Khuntia, IFBWW Vice President-A/P to Labour Commissioner for immediate intervention in the matter

• 29 September 2004: Joint Meeting called by Labour Commissioner – NO RESPONSE and Nobody from Management side attended the meeting

Union & IFBWW Initiatives - II

Case Study - II

IFBWW and Faber-Castell Framework Agreement

Faber Castell at GoaHas four units:

1. Puma Stationery Pvt. Ltd.

2. Delta Stationery Pvt. Ltd.

3. Artline (India) Pvt. Ltd.

4. AWFC (India) Pvt. Ltd.

Two main suppliers:

1. Big Box Packaging Pvt. Ltd.

2. Borkar Packaging Pvt. Ltd.

Employment and Working Conditions - 1

• 278 workers employed, including 39 women.

• 143 are temporary workers.

• The Union – Gomantak Mazdoor Sangh has signed a CBA with the management.

Benefits to the workers

• Eight hour shifts with breaks for meal and tea.

Employment and Working Conditions - II

•Workers are getting overtime, whenever applicable

•Wages are paid on time

•Workers provided with uniforms and PPE

•Workers covered under State Insurance, Provident Fund and Gratuity Schemes

•Basic facilities – canteen, toilets, drinking water, first-aid are available

Observations

The Framework Agreements are a good tool to organize workers, however, their success will depend on the strength of the unions in the local context.

Prospects and Challenges

Weakness is lack of awareness among affiliates about FA and how to use it as organising tool to improve the social and working conditions of workers

Strength is that we already have a global network of affiliates in all ten GUFs with several million members present at workplaces, including where MNCs are operating.

Prospects and Challenges

Risks involved include if companies are not making serious internal changes, but use the agreement as a whitewashing tool and PR purposes.

Opportunities to use the global agreements as a platform for a better social dialogue and for organising efforts.

For detailed info. on Framework Agreements and social dialogue, log on to:

www.ifbww.org