Trade Union Strategies and Responses for a Global Automotive Industry

1. Trade Union Strategies and Responses for a Global Automotive Industry Ron Blum IMF Auto Department World Auto Council June 8-10, 2004 Dearborn, USA Good afternoon.Good afternoon.

2. 2 The Principal Points Challenges of restructuring & global company alliances Trade union strategies to respond Continuing our work to implement the Action Program The main areas I ’ll covered are ... READ THE POINTS The main areas I ’ll covered are ... READ THE POINTS

3. 3 The Principal Points Challenges of restructuring & global company alliances Trade union strategies to respond Continuing our work to implement the Action Program

4. 4 Forms of restructuring are familiar to autoworkers across vehicle producing countries … Mergers & acquisitions, and strategic company alliances, that integrate & alter global production chains. Outsourcing, sub-contracting, and attempts to shift from permanent to temporary workers. Pressures and stresses from increased demands for flexibility. Growing trend of employers opposing unionization and union-won benefits. READ THE TITLE & POINTSREAD THE TITLE & POINTS

5. 5 Global company alliances are a challenge for Labor … Alliances permit rationalization across several enterprises internationally. Common rationalization methods include: vehicle platform consolidation combined purchasing, and joint ventures to produce key components such as engines and transmissions. This gives enterprises opportunities to play off workers in different countries & companies against each other. Results for workers can be fewer jobs, and downward pressure on wages and working conditions. READ THE TITLE & POINTS To effectively resist these pressures, Labor must globalize its traditional responses. READ THE TITLE & POINTS To effectively resist these pressures, Labor must globalize its traditional responses.

6. 6 Solidarity is a necessity in the face of globalization Labor needs the strength and instruments to reign in competition in the global labor market International union power depends on cross border solidarity, and on … … global union structures and instruments for exercising it. READ THE TITLE & POINTsREAD THE TITLE & POINTs

7. 7 The Principal Points Challenges of restructuring & global company alliances Trade union strategies to respond Continuing our work to implement the Action Program

8. 8 Global union structures and instruments are necessary … … to engage transnational companies: We need to strengthen, build and use global union structures and instruments. This is set out in the 2001-2005 IMF Action Programme adopted at the 30th World Congress in Sydney. The 10th World Auto Council in Wolfsburg, and recommendations of the Auto Industry Working Group, have supported the strategic approach. READ THE TITLE AND POINTsREAD THE TITLE AND POINTs

9. 9 The Key Means to EngageTransnational Companies … Negotiate & implement International Framework Agreements to ensure the enterprise and its suppliers respect core labor standards. Build and strengthen world union structures such as company councils and action groups to defend and advance worker and trade union rights and interests. Regional automotive meetings that combine enterprise and sector level forums to help build regional and global union structures READ TITLE AND POINTS We’ll take a look at each of these …READ TITLE AND POINTS We’ll take a look at each of these …

10. 10 International Framework Agreements: Essential Content ILO Core Labor Standards -- referenced as such Some engagement of the enterprise to pressure suppliers to conform to the principles in the IFA The IMF must sign the agreement The essentail contents of International Framework agreeements include … READ THE POINTSThe essentail contents of International Framework agreeements include … READ THE POINTS

11. 11 The Four Core ILO Standards Employment is freely chosen: There shall be no use of forced, including bonded or involuntary prison labour (ILO Conventions 29 and 105). No discrimination or intimidation in employment; (ILO Conventions 100 and 111). No child labour: ILO Convention 138, or national regulations, whichever set higher standards, shall be adhered to. Freedom of association and the right to collective bargaining are respected (ILO Conventions 87, 98, 135 and Recommendation 143). The ILO core labour standards are that there shall be … No use of forced or involuntary prison labour No discrimination or intimidation in employment No child labour Freedom of association and the right to collective bargaining are respected.The ILO core labour standards are that there shall be … No use of forced or involuntary prison labour No discrimination or intimidation in employment No child labour Freedom of association and the right to collective bargaining are respected.

12. 12 Five additional provisions in the model code … The company adopts a positive approach towards activities of trade unions and an open attitude towards their organisational activities. During labour-management conflicts the company will not hire new workers to replace those involved in the dispute. Wages and benefits paid for a standard working week meet at least legal and industry minimum standards & are always sufficient to meet basic needs of workers and their families and to provide some discretionary income. … working hours … [must] not impair worker health and other aspects of productive life. Decent working conditions -- a safe and hygienic working environment The model IFA has five additional provisions: The company will have a positive approach towards trade union activities an open attitude towards organising activities. The company will not hire new workers to replace those involved in the dispute during labour-management conflicts Wages and benefits paid for a standard working week will meet at least legal and industry minimum standards and always be sufficient to meet basic needs of workers and their families and to provide some discretionary income. … working hours … [must] not impair worker health and other aspects of productive life. Decent working conditions including a safe and hygienic working environmentThe model IFA has five additional provisions: The company will have a positive approach towards trade union activities an open attitude towards organising activities. The company will not hire new workers to replace those involved in the dispute during labour-management conflicts Wages and benefits paid for a standard working week will meet at least legal and industry minimum standards and always be sufficient to meet basic needs of workers and their families and to provide some discretionary income. … working hours … [must] not impair worker health and other aspects of productive life. Decent working conditions including a safe and hygienic working environment

13. 13 Pressuring the suppliers An IFA must include some engagement on the part of the company to pressure suppliers to respect the principles in the agreement. At a minimum, suppliers must be expected to respect IFA principles to ensure a continuing business relationship. The IMF model calls for warnings & assistance to an offending supplier before its “supplier status” is lost. Enterprises are not required to certify that no supplier violates IFA principles. It only requires that suppliers are covered by some form of union-management complaint procedure READ THE POINTsREAD THE POINTs

14. 14 Why must the IMF sign an IFA? It is the logical counterpart to global management. It has a mandate from the IMF Congress. It can sign on behalf of affiliates not directly involved in the negotiations. READ THE TITLE AND POINTsREAD THE TITLE AND POINTs

15. 15 Auto-Related International Framework Agreements There are a number of International Framework Agreements in the auto sector: Manufacturers include: DaimlerChrylser Volkswagen First-tier suppliers include: Leoni Robert Bosch Rheinmetall … it’s auto division is Kolbenschmidt Pierburg, and SKF … and discussions continue with a number of companies. Turning to world union structures…There are a number of International Framework Agreements in the auto sector: Manufacturers include: DaimlerChrylser Volkswagen First-tier suppliers include: Leoni Robert Bosch Rheinmetall … it’s auto division is Kolbenschmidt Pierburg, and SKF … and discussions continue with a number of companies. Turning to world union structures…

16. 16 IMF is remaking global union structures to be able to better … … deal with urgent situations, develop and implement joint strategies, promote networking & exchanging information, coordinate with regional bodies such as European works-councils, establish regional sub-structures as appropriate, make reports and recommendations to the IMF governing bodies. READ TITLE AND POINTS READ TITLE AND POINTS

17. 17 Targeted characteristics of IMF World Union Committees … … small enough to do work and meet regularly, have more-or-less permanent representatives, maintain links with national unions according to national practices, include existing regional councils, such as European Works Councils, and seek company funding. READ TITLE AND POINTSREAD TITLE AND POINTS

18. 18 The role of networks for IMF World Union Committees Committees can meet only infrequently For continuous work, they need to be backed up by information and communications networks The IMF will continue work to set up and coordinate internet-based networks Requests for information, meeting conclusions and other documents can be sent directly to network participants READ TITLE AND POINTsREAD TITLE AND POINTs

19. 19 IMF company-level action & steering groups coordinate efforts at the world and regional levels General Motors Action Group Ford World Steering Committee Volvo Working Group Magna Action Group GM-Fiat regional meeting – Latin America Ford regional meeting – Latin America READ TITLE - General Motors Action Group will be meeting for a fourth time since it was formed in 1999 - Ford World Steering Committee had an initially meeting in 2001. - Volvo Working Group – met in 2002, before Volvo car operations were sold to Ford. … These meetings have discussed and initiated work on: the building or rebuilding IMF structures for the respective transnational company, increasing the understanding of the IMF Action Program, Sharing information and coverage of key industry developments, and seeking ways for further cooperation. The IMF is also involved in difference ways with World Works Councils at VW and Renault, and with the World Employees Committee at DaimlerChrysler. - The Magna Action Group worked together in 2001 to devise ways to respond the union-avoidance strategies of the company. (CLICK TWICE) Two separate regional meeting occurred for GM-Fiat and Ford in Latin America in 2001. … and it was this experience that helped form the idea of regional auto meetings.READ TITLE - General Motors Action Group will be meeting for a fourth time since it was formed in 1999 - Ford World Steering Committee had an initially meeting in 2001. - Volvo Working Group – met in 2002, before Volvo car operations were sold to Ford. … These meetings have discussed and initiated work on: the building or rebuilding IMF structures for the respective transnational company, increasing the understanding of the IMF Action Program, Sharing information and coverage of key industry developments, and seeking ways for further cooperation. The IMF is also involved in difference ways with World Works Councils at VW and Renault, and with the World Employees Committee at DaimlerChrysler. - The Magna Action Group worked together in 2001 to devise ways to respond the union-avoidance strategies of the company. (CLICK TWICE) Two separate regional meeting occurred for GM-Fiat and Ford in Latin America in 2001. … and it was this experience that helped form the idea of regional auto meetings.

20. 20 Regional auto meetings combine company/alliance-based and industry-wide forums for workers and unions … … to present information on world and regional auto sector developments, support efforts to negotiate, implement and monitor International Framework Agreements, work to the develop regional representation for world union committees where no regional structure exists, and build networks for communication and information exchange to assist with collective bargaining, organizing and solidarity campaigns. READ TITLE AND POINTSREAD TITLE AND POINTS

21. 21 IMF regional auto meetings Latin America Auto Conference (2002, 2003) Asia-Pacific Auto Conference (2002, 2003) Central & East Europe Auto Conference (2004) We have organized 2 meeting in Latin America, and 2 in the Asia-Pacific region, and want to continue to build on these efforts. This year, we expect to have a first meeting for Central and East Europe.We have organized 2 meeting in Latin America, and 2 in the Asia-Pacific region, and want to continue to build on these efforts. This year, we expect to have a first meeting for Central and East Europe.

22. 22 The Principal Points Challenges of restructuring & global company alliances Trade union strategies to respond Continuing our work to implement the Action Program To continue to implement the Action Program in the auto sector, the following are priorities … To continue to implement the Action Program in the auto sector, the following are priorities …

23. 23 International Framework Agreements & solidarity across borders to promote workers and trade union rights … The IMF will work with affiliates to negotiate International Framework Agreements based on the IMF model agreement, and continue to implement and monitor existing agreements. When serious violations of core labor standards occur, the IMF will undertake coordinated efforts in cooperation with its affiliates, including launching projects and campaigns, to ensure respect for labor and trade union rights. READ THE TITLE & POINTS READ THE TITLE & POINTS

24. 24 Build and utilize company and sector structures and methods … Continue efforts at remaking IMF world company councils into smaller permanent bodies, better able to coordinate and act quickly and effectively, and that are company funded. Use IMF regional auto meetings, which combine company and sector-level forums for workers, to support the remaking of world company councils and to strengthen industrial-union capacities. READ THE TITLE & POINTS READ THE TITLE & POINTS

25. 25 Timely, accurate and accessible communication at the enterprise & sector levels … The IMF is committed to continue work already begun to facilitate communication and information exchange through development of networks of auto union affiliates, utilizing world company councils, actions groups and regional auto meetings. The IMF will work to identify, in conjunction with affiliates, which tools are most effective and appropriate for our communication and information exchange strategies. READ THE TITLE & POINTS READ THE TITLE & POINTS

26. 26 Identify and develop new union building opportunities… … Where auto company investments have created newer or growing concentrations of workers, and …. Where conditions exist to support union building efforts. The active involvement of IMF affiliates, and especially unions in the home country of transnational companies, are necessary to effectively advance such efforts. READ THE TITLE & POINTS READ THE TITLE & POINTS

27. 27 Adding a social dimension to globalization … IMF automotive sector activities will, in implementing the Action Program, seek to promote and advance strategies to achieve globalization with a social dimension. This includes opportunities to work in alliance with select non-government organizations that share our aims to protect and promote worker and trade union rights, in a manner consistent with efforts by IMF-affiliated auto union affiliates. READ THE TITLE & POINTS READ THE TITLE & POINTS

28. 28 Support of IMF affiliated unions in the auto sector To assist and advise the IMF Secretariat and the Auto Department on best approaches for implementation, it may be useful to convene ad hoc task groups from IMF-affiliated auto unions. Such task groups will have appropriate regional representation. Finally … READ THE TITLE & POINTS Finally … READ THE TITLE & POINTS

29. 29 SOLIDARITY Thank you for your kind attentionThank you for your kind attention