Globalisation and the ICEM Strategy

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Globalisation and the ICEM Strategy

Viale Maestri del Lavoro 10, 10127, Turin Italy
Jim Catterson Director of Organization
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Globalisation

• 51 of the largest 100 economies in the world are
  corporations.
• Multinational companies hold ninety percent of
  all technology and product patents worldwide.
• Multinational companies are involved in 70
  percent of world trade. More than thirty percent
  of this trade is "intra- firm" in other words,
  it occurs between units of the same corporation.
  
• The 300 largest corporations account for
  one-quarter of the world's productive assets.

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Globalisation

• Over the last decade, global FDI has grown four
  times as fast as GDP, and three times as fast as
  trade.
• 400 MNC's account for 50 per cent of global FDI
  and 95 per cent originates in developed
  countries.
• The combined revenues of GM and Ford exceed the
  combined GDP of all sub-Saharan Africa.
• One fifth of the world's population live on a
  dollar a day or less.
• In the US the ratio of average CEO pay in Fortune
  500 companies to the average factory worker has
  risen from 42 to 1 in 1980 to 419 to 1.

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Globalisation

• Mergers Acquisitions
• Strategic Alliances
• Joint Ventures
• Foreign Direct Investment
• Global Sourcing
• Deregulation

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Globalisation
Cost-Cutting Impact

• Reduction of Workforce
• Redundancies
• Out-sourcing
• Replacing permanent workers with temporary
  workers
• Lowering Wages and Benefits
• Shifting Production to lower wage areas

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Oil Industry Consolidation
BP started the mega-merger wave in August 1998.
The Exxon-Mobil, BP Amoco-Arco and
TotalFinaElf-Elf Aquitaine mergers closely
followed. Combined, these deals totalled a
quarter of a trillion US dollars in value, and
raised the share of market cap held by the four
largest players (ExxonMobil, Royal Dutch/Shell,
BP, TotalFinaElf) by almost half. These three
super-majors ExxonMobil, Shell and BP have
combined sales greater than the total annual
domestic production (GDP) of the one billion
people of India.   The merger of Conoco and
Phillips has created the largest refiner in the
US and the third-largest integrated US energy
company. Next the Russian Companies?
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Flat Glass Sales by Company 1998
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TOP 10 Global Market Share 1999
Total
Top 10

Chemical US 1,500 Bn US 180 Bn 12 Pharma.
US 338 Bn US 160 Bn 47
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TOP ETHYLENE PRODUCERS 2003
Mtpa
Company Capacity Global Market
Share
  Dow/UCC Chemical 11.00 9.7 Exxon/Mobil
8.07 7.2 Shell 6.27 5.6 Equistar
5.11 4.5 SABIC 4.16 3.7 Chevron/Phillips
3.89 3.5 BP/Amoco 3.46 3.1 ElfTotalFina
2.99 2.7 Nova 2.96 2.6 Formosa Plastics
2.85 2.5 Total Top Ten 50.76 45.1
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Industrial Gases Market 2000
Company Sales (m.) Market Share ()
    Air Liquide 5,863.54 17.15 BOC 4,826.17 14.1
1 Praxair 4,442.67 12.99 Air Products 3,466.00 1
0.13 Linde/Aga 3,447.84 10.08 NSC 2,072.49
6.06 Messer 1,579.89 4.62 Others 8,500.00 24.8
5   Total 34,198.62
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TOP 10 PHARMACEUTICAL COs
1988 1999 Merck 3.9 Glaxo/SKB 7.
0 Glaxo 2.9 Pfizer/Warner-Lambert 6.8 Ciba 2
.8 Merck 4.5 Hoechst 2.5 AstraZeneca 4.4
AHP 2,2 BMS 4.0 Bayer 2.2 Novartis 4
.0 J J 2.2 Aventis 3.9 SKB 2.1 J
J 3.8 Pfizer 2.1 AHP 3.1 Sandoz 2.0
Roche 3.0
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PULP AND PAPER INDUSTRY
TOP 10 companies represent 29 of world
production
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Global Tyre Industry

• Concentration Process
• 1995 80 of World Market is Covered by Top 9
  Companies
• 2005 80 of World Market is Covered by Top 3
  Companies

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Three Firms Dominate Global Tyre Market
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MINING BILLION DOLLAR DEALS

• WE ARE IN AN ERA OF UNPARALLELED CONSOLIDATION
• BRIAN GILBERTSON, CHAIRMAN, BILLITON
• OLIGOPOLIES DEVELOPING
• IRON ORE RIO TINTO, BHP, CVRD 80
• COAL

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Global Union Federation
Regional Offices Washington Rio de
Janeiro Johannesburg Seoul Moscow
Head Office Brussels Belgium
ICEM 382 affiliated trade unions 117 countries 20
million members
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Industries

• Energy (Electric Power, Oil, Gas)
• Mining Quarrying (Coal, other Mining)
• Chemical Bio-Science (Pharmaceuticals)
• Rubber (Tyre, Other Rubber)
• Materials (Glass, Ceramics, Cement)
• Pulp Paper
• Service and Miscellaneous
• Diamond (Gem, Ornament, Jewellery)

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Regions

• Asia / Pacific
• South and Central Africa
• North Africa and Middle East
• North America
• South and Central America the Caribbean
• Central Europe
• Eastern Europe, Central Asia and Trans-Caucasus
• Western Europe
• Nordic Countries

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ICEM Structure

• form ICEM Coordinating Committee
• are members of Regional Organisation
• send delegates to the Congress

Affiliates
Regional Organisation

• Elects
• Chair Person of Regional Organisation who is
  nominated ICEM Vice President

• Elects
• President John Maitland, CFMEU, Australia
• General Secretary Fred Higgs
• Presidium (ICEM Vice Presidents)
• Countries for Executive Committee Members
• Auditing Committee

Congress
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ICEM Central Europe

• Regional Chairperson
• Seats on Executive Committee
• Regional Committee
• Regional Conference
• Regional Statutes

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ICEM Central European Regional Conference April
15-16, 2003 Kranjska Gora, Slovenia
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ICEM Central Europe

• ICEM South East Europe Project
• A Joint Project with IUF
• 1st year of 4 year program. 2nd stage
  following 4 years of general training in the
  region.
• Zagreb office
• ICEM Balkan and SE Mediterranean Energy Network

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ICEM 1st World Conference for the Materials
Industries Section
Slovenia June 20-22, 2001
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Heidelberger
Holcim (Holderbank)
Lafarge
Seament
Titan Cement
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• ICEM and EMCEF
• Cooperation
• Jurisdictions
• Relationships (eg ETUC ICFTU TUAC)
• Expertise

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EMCEF SEMINAR EU ACCESSION Kranjska Gora,
Slovenia April 14, 2003
Jim Catterson ICEM Director of Organization
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GDP per head Bulgaria 24 of EU
average Estonia 38 Poland 39 Hungary 52
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Bargaining coverage rates and unionisation rates
in candidate countries () Country Coverage rate
of collective agreements Unionisation
rate Czech Republic 25-30 30 Hungary 4
5-50 20 Poland 15 Slovakia 50 4
0 Slovenia Almost total 41.3
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3rd ICEM World Congress, Stavanger August 28-30,
2003
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Recognition

• Recognition an important issue for ICEM, as
  for any trade union organisation Recognition has
  been achieved in 3 ways
• In negotiating and achieving Global Agreements
• When companies enter into dialog following
  representation
• by the ICEM on behalf of an affiliate
• When companies or employer organisations seek our
  view on issues effecting ICEM sectors

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ICEM Congress, Durban 3-5 November 1999
UNITE and ORGANISE
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The ICEM needs to operate more like an
international trade union and not just a service
organization Fred Higgs ICEM General Secretary
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ICEM Future Work Plan

• Unite and Organise
• Global Trade Union Networks
• Dialog with Multinational Companies
• Global Agreements with Multinational Companies
• Global Solidarity

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Global Trade Union Networks
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Global Trade Union Networks

• Exchange of Information Experiences
• Collective Agreements
• wages
• working hours
• shift systems
• bonus systems
• holidays
• retirement schemes
• Occupational Health, Safety Environment
• Microeconomic data

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Global Trade Union Networks

• Organizing International Solidarity
• Representative Structure
• country
• region
• worldwide
• Dialog with Central Management

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ICEM Global company networks in existence

• Rio Tinto (administered by CFMEU, Australia)
• Goodyear (administered by USWA, USA)
• Bridgestone (administered by GOMU-RENGO, Japan)
• Novartis (administered by SIB, Switzerland)

• International Paper (PACE, USA)
• Endesa (FIA-UGT/FM-CC.OO., Spain)
• BASF (IGBCE, Germany)
• Exxon Mobil (PACE USA)

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Prerequisites to forming an ICEM Network

• An affiliate must take responsibility for
  carrying
• out and providing resources for the
  administration.
• The main activities must be resourced by the
• network participants.
• Global gatherings are not essential
• to a successful network.

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Global Agreements with Multinational Companies
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Priority activity agreed at our last 2
Congresses to negotiate global agreements The
objective of such agreements- To establish a
set of principles / standards which a
multinational company will apply wherever it
operates in the world. Regardless of whether it
is required to do so by national law
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Global Framework Agreements

• ICEM Congress, Presidium and Executive
• Committees given mandate on issues to be covered
• Human Trade Union Rights,
• Health Safety and Environment,
• Other issues not normally subject to local or
• national collective bargaining.

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Global Framework Agreements

• The Congress, Presidium and Executive Committees
  have developed
• the following process for securing such
  agreements
• Prioritise companies with a strong union base in
  their home country
• First approach to companies normally made by
  affiliates in the company's home country
• Try to improve provisions within each new
  agreement
• All agreements to be subject to annual review

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• ICEM Global Agreements
• Statoil July 1998, March 2001, August 2003
• Freudenberg June 2000
• Endesa January 2002
• Norske Skog June 2002
• Anglogold September 2002
• ENI November 2002

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Content of Global Agreements
To secure a continuous improvement and
development of good working relations and to
establish an open information channel between
ICEM, its Affiliates and the Management.
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Content of Global Agreements

• Right to every employee to be represented by a
  union of his/her own choice right to basic
  trade union rights (ILO 87, 98) company agrees
  not to oppose efforts to unionize its employees
• To employ no force or bonded labour (ILO 29, 105)

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Content of Global Agreements

• To employ no child labour (ILO 138)
• To exercise equality of opportunity treatment
  in employment (ILO 100, 111)
• To pay fair wages benefits according to good
  industry standards in the country concerned
• To provide a safe work environment, deploying
  common best practice standards

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Content of Global Agreements

• Monitoring
• Training
• Information Exchange
• Regular Consultations

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Lock-out ends at Crown Petroleum
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Crown Central Petroleum Pasadena Texas

• January 17, 2001 five-year lockout defeated by
  PACE Local 4-227 at
• Texas oil refinery
• Campaign Actions
• A consumer boycott was carried out in seven
  states and the District of Columbia.
• The company received a 1.1 million air pollution
  fine from the Texas National
• Resource Conservation Commission.
• Widespread support came from the rest of the
  labour movement, civil rights
• and religious organizations, and environmental
  activists

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Crown Central Petroleum Pasadena Texas

• Campaign Actions (continued)
• PACE waged a sophisticated shareholder campaign
  to block Crown CEO
• Henry Rosenberg from acquiring the company.
• In October 2000, Statoil, cancelled its contract
  for the processing of Statoil's crude
• oil at Crown's Pasadena refinery. This single
  contract used 35 percent of the
• Pasadena refinery's capacity and its cancellation
  was a powerful blow to the company.
• Lars Myhre, chairman of the ICEM's Energy
  Industries Section visited the PACE
• picket line at the Pasadena refinery

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ICEM STATOIL AGREEMENT

• Extracts from Statoil report to the Global
  Compact Learning Forum, October 29-30, 2001
  London.
•   Implementation of the agreement has so far
  covered 
•   Meetings to discuss specific challenges in
  Statoil's international
• portfolio
•   Training, eg. Statoil's participation in ICEM's
  training of trade union
• representatives from SOCAR in Azerbaijan
•   Consultations whereby Statoil has contributed
  to the resolution of
• labour disputes
•   Mutual support Statoil attended ICEM World
  Congress in 1999,
• ICEM attended the Scandinavian (sub-)group of
  Global Compact
• convened by Statoil.

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ICEM STATOIL AGREEMENT
As far as Statoil is concerned, the agreement
with ICEM can contribute to improved risk
management by way of increased insight into the
causes of labour disputes and how to resolve
them. Statoil will enhance its reputation as a
socially responsible company by becoming better
at managing labour relations.   It is important
that labour relations are managed in accordance
with local conditions. Considerations of
legitimacy and efficiency require that employee
concerns should be handled by those closest to
the issues. We believe that the ICEM agreement
will help us address this requirement without
interfering with established local practices.  
Statoil report to the Global Compact Learning
Forum, October 29-30, 2001 London.
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A Global Agreement is not a Code of Conduct

• Negotiated not unilateral
• Monitored by the organized workforce
• Network can develop to be an enforcement
  procedure

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Global Compact Basis for New Agreements ?
Rio Tinto Anglogold Shell BP Endesa ...
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Global Compact

• Kofi Annan first tabled the GC initiative January
  1999,
• (launched in 2000)
• Voluntary initiative creating a partnership
  between the UN,
• International Corporations, Labour, Civil
  Society and National
• Governments
• Calls on corporations to adopt a set of nine
  principles to guide
• their worldwide business practices.

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What Are The 9 Principles?

• Human Rights
• Business should support and respect the
  protection of internationally proclaimed human
  rights within their sphere of influence.
• Make sure they are not complicit in human rights
  abuses.

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What Are The 9 Principles?

• Labour
• 3 Businesses should uphold freedom of
  association and the effective recognition of the
  right to collective bargaining.
• 4 The elimination of all forms of forced and
  compulsory Labour.
• 5 The effective abolition of child Labour  
• 6 Eliminate discrimination in respect of
  employment and occupation.

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What Are The 9 Principles?

• Environment
• 7 Businesses should support a precautionary
  approach to environmental challenges  
• 8 Undertake initiatives to promote greater
  environmental responsibility
• 9 Encourage the development and diffusion of
  environmental friendly technologies.

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International Trade Union Response

• The ICFTU was involved in the development of this
  initiative and are supportive.
• The ICEM also supports the initiative and is
  involved with the U.N. and the ICFTU in its
  further development. Fred Higgs is one of two
  Trade Union Members of the Advisory Council

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Making it Meaningful

• Companies should not just make grand statements
• Should ensure there is commitment at all
  managerial levels to applying the 9 principles
• Involve all employees and their unions
• Underpin company commitment with a Global
  Agreement with the relevant Global Union
  Federation (GUF)

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• Solidarity Actions
• Workers and their unions continue to face
  problems at national and local level
• Increasingly the solutions will be found at
  international level

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Binda Panday Nepal August 29, 2003 elected ICEM
Vice-President Stavanger September 5 arrested
with other trade unionists Katmandhu Nepal
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June 2002 After International support Canadian
Strikers at Lafarge win a six-month strike
against the cement multinational
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January 2002 Global labour campaign helps force
Saint-Gobain to Recognise UAW in the United
States Struggle for a 1ST Contract Continues
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New Zealand EPMU international pressure through
ICEM IP Networkends 82 day strike June
2003 Kinleith
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Rhodia UK September 2003 GMB Amicus-MSF Rolling
Strikes to safeguard future pensions
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THE FUTURE

•  
• More global agreements
• Increased use of ICEM multinational union
  networks to ensure that global agreements are
  working and are monitored effectively
• Hot-line communications between ICEM leadership
  and MNCs in order to identify and respond to
  major issues before they become international
  problems
• Development of better links with employers
  organisations in the various ICEM sectors
•  

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Solidarity Works !
Jim Catterson November 2003