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Restructuring, Off shoring and Trade Union rights

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Restructuring, Off shoring and Trade Union rights

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    2. EPIQ History

    3. EPIQ Organisation

    4. EPIQ Turnover

    5. EPIQ Employees

    6. Sensor-Nite History In 2001 Sensor-Nite itself was acquired by EPIQ (part of the Elex group) known for its Electronic contract manufacturing activities mainly for automotive market. In 2002 the pilot production was relocated from Belgium to EPIQ Bulgaria where the capacity was gradually increased to what it is today. In 2004, the strong growth and increasing investments of Sensor-Nite made Sensor-Nite a direct member of the Elex group. Mainly during this period Sensor-Nite further organized itself to become a full T1 supplier. In the same year the production activity was certified ISO TS 16949 & ISO 14001.

    7. Sensor-Nite Organisation

    8. Sensor-Nite Production

    9. EPIQ Revenues

    10. EPIQ Revenues Geo

    11. EPIQ Technical Capabilities

    12. EPIQ EA Project

    13. EPIQ EA Botevgrad town Bulgaria The Company was established in 1997 Main object of activity is the production of electronic modules for the automobile industry, telecommunications, home appliances, sanitary-medical equipment and high temperature sensors The Company is located on two sites: EPIQ1 in the old ‘Microelectronica’ buildings EPIQ2 and EPIQ3 – a green field investment 80% of the workers (around 1600 people) work at a three shifts regime according to a work schedule and monthly reporting the total working time, which presupposes they regularly work overtime

    14. EPIQ EA & SENSOR-NITE in TOP 10 MEE Industry

    15. EPIQ Employment 2 575 employees 196 new employees - 21 specialists, 160 operators and 15 others; 138 left the company - 16 specialists, 116 operators, 6 others

    16. EPIQ Reasons for leaving - operators

    17. EPIQ structure of monthly salaries per person

    18. Chronology of events ? 1.09.2007 Implemented new Internal Rules of Salary Organization (IRSO) in EPIQ IRSO : - the basic document in the companies that regulates labour remuneration (if there is available a Collective Agreement (CA) it is part of the CA or it is in compliance with the agreed in the CA) - the Labour Code requires before the IRSO is amended by the employer there to be information and consultation with the TU Organization (TUO). Obligatory for the companies - they are based on the Regulation on the Structure and Organization of the Salary (RSOS), which is a sublegislative normative act

    19. EPIQ

    20. ? 23.09.2007 Established the TU Organization (TUO) in EPIQ Miroslav Mikov elected as Chairman In November 2007 and in January 2008 with the support of the Fridrich Ebert Foundation, Sofia Office, NFTINI trained 45 trade union active members since the average age is 24 years, and 98% of the workers had never before been members and had no idea what a trade union was At the training were invited representatives of the employer and took part in it. ? 12.01.2008 TUO was restructured in a Company Trade Union Organization (cTUO) with sections in all units of the EPIQ and with 596 members cTUO filed a written request for negotiations with the employer in connection with the high inflation (14% for 2008) and other problems related with violations of the LC and the labour legislation in the companies: the duration and number of breaks, reduced payment of the additional payment for night labour and others

    21. EPIQ

    22. Violations of the change in the positions 1. Labour Code: no prior informing and consultation with the TUO the supplementary agreements (annexes) to the ILC for the change in position were distributed to the working places to be signed by the immediate heads, including also in the night shifts, and the obligatory awareness and handing of the new job descriptions against a signature, which obligatorily must accompany the annex was not performed at all! 2. RSOS: “the basic salary is determined on the basis of an evaluation and rating of the working places and positions” – all operator positions were reduced.“ “the basic salary or parts of it cannot be replaced by additional or other remuneration and payments” - part of the basic salary of the 3 and 4 level operators was transformed into additional remuneration. 3. EPIQ IRSO: The change in the positions was not reflected In Article 7, par. (4) “the evaluation and rating of the working places (jobs) including their amendment, was performed by a Committee consisting of: (human resources experts, heads of units, labour safety, representatives of the workers and employees including the TU organization)” 4. The 3 and 4 level operators did not get a 7% basic salary increase

    23. EPIQ February 2008 The salary of the TUO leadership members who did not sign the annexes was cut down New attempts for dialogue with the employer, including a meeting of the whole TU leadership of the cTUO (9 people) and Zdravtchev – Chairman of the NFTINI with EPIQ Manager Gilles BERNARD . They were all set aside Opening of EPIQ 3 Again, in terms of the Labour Code, there were not provided conditions for trade union activity – access to the working places of the TUO leadership members, a room in the enterprise and other rudimentary conditions ? First signal of the TUO and of the Federation to the Labour Inspection

    24. EPIQ LI Sanctions after its Inspection in the EPIQ on February 1. The employer did not provide the workers and employees with the necessary written information that contains data of the performed – Article 66 of the LC 2. The employer had not invited the bodies of the TU organizations in the enterprise to take part in the preparation of the drafts of all the internal rules and regulations related with the labour relations – Article 37 of the LC 3. The employer had not specified, after a consultation with representatives of the workers and employees and of the TU organization, a list of the jobs for which there were set irregular working hours - Article139? of the LC 4. The efficiency of the implemented physiological regime of labour and rest was not assessed – Regulation ?15/99 5. The shift workers were given a 10 minutes break and not at least 2 breaks – Regulation ?15/99 6. The maximum duration for overtime work during one calendar month was exceeded –Article 146 of the LC 7. The employer imposed sanctions (a reduction of the amount of the food vouchers) beyond the provisioned in Article 188 of the LC disciplinary sanctions in violation of Article 186 of the LC 8. No joint measures were undertaken to secure healthy and safe labour conditions in using the working site by several enterprises simultaneously – Article 18 of the H&S Low

    25. EPIQ April 2008 A written threat by the EPIQ management to the TUO leadership members who had not signed the annexes that a termination of their employment would follow The employer unilaterally reduced the amount of the additional payment for night labour to 0.25 BGN per hour Overtime work is done under oral orders When there is no work, the workers instead of staying are all together forced to submit requests for paid and unpaid leave, and some are given leave of absence without filing a request Some of the cleaners are registered in a ‘fitter’ positions and for one and the same work they receive higher pay than their colleagues In violation of the LC the Chairman of the TUO is not allowed or they restrict his access to the other working places with a companion, thus taking away from his working time for meetings with the employer conducted at the request of the latter

    26. May 2008 A second signal of the TUO and the Federation to the Labour Inspection The Inspection detected 13 new violations and gave 11 prescriptions, the more substantial of which are: 1. The employer has not created conditions for the TU organization to carry out its activity, by not having provided the premises needed to be used and other material conditions in violation of Article 46 of the LC 2. In the IRSO has not been specified the basic salary and the supplementary labour remuneration for the “electronic elements fitter” position 3. In the signed labour contracts has been specified a salary, which according to the developed by EPIQ IRSO is formed on the basis of the factual work and the respective tariffs and rates of payment of labour. In violation of Article 247, par.2 of the LC the amount of unit work (labour norm) has not been agreed between the worker or employee and the employer 4. The employer has amended the labour norms in violation of Article 250, par.2 of the LC without taking into consideration to opinion of the concerned workers and employees 5. In the Rules on the internal labour order the working time distribution of the different units is not regulated and the alteration of shifts is not set in violation of Article 139 and Article 141, par.? of the LC 6. The employer has not made the workers aware of the physiological regime of work and rest that should include at least two 10 minutes breaks 7. The maximum duration for overtime work during one calendar month has been exceeded thus violating the provision of Article 146, par.2, i.1 of the LC

    27. 8. The right to an uninterrupted between days rest that cannot be less than 12 hours for the welding at the EPIQ1 has been violated, thus violating the provision of Article 152 of the LC 9. The labour done by the workers in the night shift on March 3 2008 – an official holiday – was not accrued and they were not given an increased payment in violation of the provision of Article 264 of the LC 10. There has not been determined the compliance between the working environment, the labour process, the used technology and equipment with the norms and requirements for safe and healthy labour conditions and there has not been performed a risk evaluation in connection with the changes that took place with the implementation of the new working equipment in Chip line-clean room “printing 1 and 2” to the EPIQ1 11. The employees were not provided with training and instructions on the correct ways of work with weights and information on the risks they were exposed to 12. There have not been secured the appropriate technical equipment for the performed manual work by women with weights in production shop “Zapad” of the EPIQ2, in violation of Article 4, i.2 of Regulation ? 16 (SG, issue 54/99) 13. The employer has not fulfilled an obligatory prescription of a controlling body from the inspection on February 20 2008, and namely “After consultation with representatives of the workers and employees and of the TU organization to specify a list of the positions for which there is set an irregular working day

    28. EPIQ July 2008 The workers in the buffet – all of them TU members, stop work due to abnormal conditions of labour (43º ? in the premises). On the next day were purchased and installed air-conditioning, and 1 week later the buffet is leased to an outside company. The LC has been violated – the TUO has not been informed nor consulted two months in advance A TUO of EPIQ website is opened www.podkrepa-epiq.org with a forum and a survey – a breakthrough in the information eclipse about the things that happen in EPIQ Consecutively, within a period of one week TUO Chairman Miroslav Mikov was imposed two punishments on made up accusations – for the collection of membership fees and for the taking of pictures of the buffet of the enterprise due to the discrimination against the workers in it The employer immediately requested in writing the Federation in the shortest term (24 hours) to give its consent / disagreement for his disciplinary discharge and 2 hours after its reply, that this is a right only of a collective body and it cannot be summoned in such a term, Mikov was fired

    29. www.podkrepa-epiq.org

    30. EPIQ Buffet - eating for blue-collar

    31. EPIQ Buffet - eating for white-collar

    32. EPIQ Buffet - blue-collar lunch

    33. EPIQ Buffet - white-collar lunch

    34. NFTINI filed an objection and new signals for violations to the LI The inspection of the LI in August 2008 detected the following violations: 1. The employer has not fulfilled its obligation under Article 128, i.1 and i.2 ?of the LC related with its order ?167/22.01.2008 for a 7% increase of the basic labour remuneration for all levels of operators, as of 01.01.2008 2. With an issued order ?503 of 20.12.2007 the employer has limited the right of the representatives of the TU organization to carry out at any time their TU functions, thus violating the provision of Article 406, par. 2, i.1 of the LC. For the TU representatives the employer cannot set visiting hours, nor can he forbid them from visiting at specified hours. When the TU representatives make these visits the employers owe the needed cooperation in the implementation of their rights – to provide access to them to the respective working places and premises so that they will be able to see directly the labour conditions and whether there is compliance with the labour legislation 3. When making the amendment under Article 23?, par.1 of the LC the employer has not presented information to the TU organization representatives under Article 130B, par.1 at least two months prior performing of the change, and in this way has violated the provision of Article 130B, par.2 of the LC 4. The employer has not implemented a given obligatory prescription: To update the IRSO, by setting a basic salary and supplementary labour remuneration for the “electronic elements fitter” position

    35. EPIQ September 2008 The gross violation of the rights of the workers, the non-fulfillment of the prescriptions of the LI and the pressure on the TU leaders and members continue There were conducted two hearings in the lawsuit against the disciplinary discharge of the TUO Chairman. The witnesses of the employer give contradictory evidence NFTINI submits a signal to Luc Triangle, Chair of the EMF Company Policy Committee NFTINI files an objection and new signals for violations to the LI During this inspection the LI detects 9 violations 1. The EPIQ manager has not fulfilled an obligatory prescription for a 7% increase of the basic labour remuneration of the operators 2. With an order it is ordered there to be overtime work on August 23 2008 (Saturday) due to a request of the client for labeling of ready production by workers and employees in EPIQ1-??? without legal grounds for this, which contradicts with the provisions of Article 143, par.2 and Article144 of the LC 3. Handing of job descriptions to all workers when the position was changed has not been certified, which is in violation of Article127, par.1, of the LC

    36. 4. The employer has violated Article18 of the IRSO in EPIQ – for each counted night hour the workers and employees to be paid additional remuneration at the amount of 0,25 % of the basic labour remuneration and a food voucher . 5. The work done during the official holiday days of the night shift workers on 30.04.2008 in «EPIQ 2» and of the ones who worked in 03.03.2008 in «EPIQ 2» was not accrued and paid at increased amounts, which was a violation of the provision of Article 264 of the LC 6. The maximum duration for overtime work during one calendar year of one worker or employee has been exceeded 7. Part of the basic salary of an ‘electronic elements fitter’ with qualification level IV at the amount of 468 BGN has been replaced by 85 BGN additional remuneration for qualification level IV, which is in violation of Article 4, par.2 of the RSOS (SG issue 9 of 2007). 8. The negotiated labour remuneration for exercising the Team leader function has not been paid

    37. The Executive Director of EPIQ gave an interview at the end of the month of September 2008 saying that the crisis will not affect the EPIQ 10 days after this statement EPIQ releases all workers working at a trial period After the results from the LI inspection come out, informed by the TUO 532 workers submit applications in EPIQ to be paid for night labour in accordance with the current IRSO. The total amount of the claims is approximately 200 000 Euro. To facilitate the workers the TUO posts a template of the application in its website The management makes changes in the Rules on the Internal Labour Order without informing and consulting with the TUO in violation of Article 37 of the LC On December 15 a group of 15 workers are locked up in EPIQ 2 premises and for two hours are forced to sign a lay down sheet in which it are not specified the grounds in terms of the LC. The workers sign at last and are released at ‘mutual consent’ in order not to be paid compensations. The TUO gives a signal about this to the Procurator’s office and to LI and files a number of lawsuits On December 19 there is made yet another attempt by the employer to force the workers to leave at their own will. The workers object, they call the TUO Chairman, but he is not allowed in the enterprise. The workers are discharged with a right to compensation EPIQ starts a procedure for the implementation of short hours according to which the employer is obliged to consult with the TUO and to be in coordinate with them. At a meeting the employer refuses the TUO to consult with the workers in compliance with the law and the TUO does not give their consent for the implementation of the short hours. The employer unilaterally implements in December and January short hours. The TUO signals the LI about the violations EPIQ

    38. EPIQ starts a procedure of multiple discharges again not complying with the LC in connection with the informing of and consulting with the TUO TUO Chairman in EPIQ Miroslav Mikov wins at first instance the lawsuit against his disciplinary discharge NFTINI submits a new signal to the LI, which detects 6 violations, the more important of which are: 1. The IRSO of the firm are amended and they come into force as of 01.11.2008 and according to Article 22. par.1 of the IRSO the same are an internal act of the enterprise within the meaning of Article 37 of the LC, and the employer has not invited the bodies of the TU organization to take part in their preparation and drafting with which they have violated the requirements of Article 37 of the LC 2. The employer has established for the period from 21.11.2008 to 31.01.2009 short hours for workers and employees in different units of the enterprise who work at full time without a prior coordination with the representatives of the TU organization in violation of Article138? of the LC 3. With the order for the setting of the short hours during the period from 21.11.2008 to 31.01.2009 has been violated Article 9 of the Regulation for the working time, breaks and leaves promulgated in the SG, issue 6 of 23.01.1987. The order is not issued not later than 10 working days prior to the date of going to short hours. In the order explicitly are not pointed out the data for conducted coordination with the representatives of the TU organization 4. The employer has not collected preliminary information from the workers and employees determined for discharge pursuant to Article 328, par.1. i.2 of the LC whether they suffer any of the illnesses mentioned in par.1 of Article 1 of Regulation ?5 (SG, Issue 33 of 1987) and whether they fall under the protection of Article 333 of the LC, thus violating Article 1, par.2 of the same regulation Chronology of events

    39. The TUO in EPIQ gives a signal to the LI and to the Procurator’s office The LI detects three new violations, yet it makes an attempt to transfer the problem as a labour dispute The Procurator’s office send to the LI a request to check for exercised violence in the EPIQ, yet LI refuses with the argument this is not in its authority After that the Procurator’s office refuses to initiate punitive proceedings for coercion of officials by the EPIQ The Labour Agency gives the right for multiple discharges in EPIQ and does not give a signal to the Labour Inspection despite the violations of the procedure detected during the meeting in the Agency and refuses to write in the minutes the standing of the TUO EPIQ, without a procedure of consulting and coordinating with the TUO implements short hours for the months February and March 2009 for almost 1200 workers The social tension in EPIQ is growing because with 30% shorter hours the salaries will be lower, being already low, the workers cannot cover their expenses, save pay their loans. EPIQ policy to force the workers to leave at their own will becomes clear, since most of them have credits, and EPIQ is their guarantor. The forced workers, at leaving have been told they must renegotiate the conditions of their loans since EPIQ ceases to be a guarantor in this case Chronology of events

    40. The Federation and TUO submit a new signal with objections to the LI to perform a complex inspection in EPIQ and with the request the inspection team to be replaced. The inspection starts in the beginning of the month of March with a new team Dismissed are two of the most active chairs of TU sections and management members of the TUO – Tsvetomir Stanchev and Anton Betsov in violation of the LC – the approval of the Federation has not been requested the target being the TU to be completely deprived of leadership. The two of them are one of the highest qualified workers, as was the fired before that Mikov, who continues to perform the duties of a Chairman though unemployed The Federation and the TUO signaled the Director of the National Employment Agency that the Director of the Labour Agency in Botevgrad has approved the right to multiple discharges in EPIQ, despite the violations under the procedure, with a request for an inspection and for his dismissal The Federation send a signal for anti-syndical activity to the General Secretary of the EMF Chronology of events

    41. EPIQ They submit a total of 8 signals to the Labour Inspection and it detects 43 violations of the labour legislation and issues 32 prescriptions and multiple acts for fines The violations are systematized in the table below: They organize monthly reception and give numerous consultations, including legal ones to the workers in EPIQ The file 3 lawsuits against EPIQ and render legal support in the filing of 21 individual legal proceedings of workers against EPIQ They create a website of the TUO and give numerous signals and interviews primarily in the local mass media. The public opinion in the municipality backs the TU They submit a signal to the NEO for an inspection at the Labour Agency in the town of Botevgrad They submit 3 signals to the Procurator’s office for exercised violence They signal twice the EMF

    42. Thank you for your attention!

    43. to be continued …

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