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Globalisation and the ICEM Strategy

Globalisation and the ICEM Strategy. Viale Maestri del Lavoro 10, 10127, Turin Italy. Jim Catterson Director of Organization. Globali s ation . 51 of the largest 100 economies in the world are corporations.

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Globalisation and the ICEM Strategy

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  1. Globalisation and the ICEM Strategy Viale Maestri del Lavoro 10, 10127,Turin Italy Jim Catterson Director of Organization

  2. 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.

  3. 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.

  4. Globalisation • Mergers & Acquisitions • Strategic Alliances • Joint Ventures • Foreign Direct Investment • Global Sourcing • Deregulation

  5. 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

  6. 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. Themerger of Conoco and Phillips has created the largest refiner in the US and the third-largest integrated US energy company. Next the Russian Companies?

  7. Flat Glass Sales by Company 1998

  8. 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

  9. 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

  10. Industrial Gases Market 2000 Company Sales ($m.) Market Share (%) Air Liquide 5,863.54 17.15 BOC 4,826.17 14.11 Praxair 4,442.67 12.99 Air Products 3,466.00 10.13 Linde/Aga 3,447.84 10.08 NSC 2,072.49 6.06 Messer 1,579.89 4.62 Others 8,500.00 24.85 Total 34,198.62

  11. TOP 10 PHARMACEUTICAL CO’s 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%

  12. PULP AND PAPER INDUSTRY TOP 10 companies represent 29% of world production

  13. 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

  14. Three Firms Dominate Global Tyre Market

  15. 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

  16. 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

  17. 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) Industries

  18. 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 Regions

  19. 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

  20. ICEM Central Europe • Regional Chairperson • Seats on Executive Committee • Regional Committee • Regional Conference • Regional Statutes

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

  22. 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 ICEM Central Europe

  23. ICEM 1st World Conference for the Materials Industries Section Slovenia June 20-22, 2001

  24. Heidelberger Holcim (Holderbank) Lafarge Seament Titan Cement

  25. ICEM and EMCEF • Cooperation • Jurisdictions • Relationships (eg ETUC ICFTU TUAC) • Expertise

  26. EMCEF SEMINAR EU ACCESSION Kranjska Gora, Slovenia April 14, 2003 Jim Catterson ICEM Director of Organization

  27. GDP per head Bulgaria: 24% of EU average Estonia: 38% Poland: 39% Hungary: 52%

  28. Bargaining coverage rates and unionisation rates in candidate countries (%) CountryCoverage rate of collective agreementsUnionisation rate Czech Republic 25-30 30 Hungary 45-5020 Poland * 15 Slovakia 50 40 Slovenia Almost total 41.3

  29. 3rd ICEM World Congress, Stavanger August 28-30, 2003

  30. Recognition • Recognition an important issue for ICEM, as for any trade unionorganisation 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

  31. ICEM Congress, Durban 3-5 November 1999 UNITE and ORGANISE

  32. “The ICEM needs to operate more like an international trade union and not just a service organization” Fred Higgs ICEM General Secretary

  33. ICEM Future Work Plan Unite and Organise • Global Trade Union Networks • Dialog with Multinational Companies • Global Agreements with Multinational Companies • Global Solidarity

  34. Global Trade Union Networks

  35. 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

  36. Global Trade Union Networks • Organizing International Solidarity • Representative Structure • country • region • worldwide • Dialog with Central Management

  37. 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)

  38. 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.

  39. Global Agreements with Multinational Companies

  40. 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

  41. 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.

  42. 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

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

  44. 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.

  45. 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)

  46. 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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