77th year, number 1999/3

77th year, number 1999/3
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Editorial Top

3 = 600,000,000

The European elections last June at least taught us a lesson - voters, and therefore workers also, primarily supported those who want to give meaning and a new lease of life to society; those who think that defending workers goes well beyond the establishment and the transformation of the ruling system, instead of settling down to neo-liberalism.
This is food for thought for the trade unions. Workers do not expect half measures. They refuse the compromise of accepting conditions imposed by the authorities and some advantages to trade unions. The world economy as it is does not allow ambiguity, since it increases the number of unemployed and the poor at the same time as it enriches the minority. The UNDP 1999 report on human development provides as usual, some shocking figures in this regard. One single example: the fortune of the three richest people in the world is more than the total GNP of all the least developed countries, which have 600 million inhabitants. Is this humanly and ethically acceptable? What meaning can one give to such injustice? In reality, an economy which produces such results is criminal. In fact, unemployment destroys not only male and female workers, but also their families and in the same way, tomorrow’s society.

Accomplices or opponents?

It is true that at times, the trade union organization participates in the management of this economic system. Do they become accomplices or do they remain opponents?

This question is asked especially in countries where a form of social dialogue is organized, and also at the international level, namely the ILO or regional institutions. Such dialogue is at times perceived as a way of “buying” the support of trade unions in a neo-liberal economy unfavourable to workers. In the opinion of analysts trade unionism is too much of a jointly managed partnership, and does not pose enough challenge as a social movement.
It is obvious that this risk exists, but one cannot conclude that every form of participation is complicity. It is often being present at the core of the “system” which allows the latter to be influenced and which gives access to information that allows it to be questioned. It is by occupying positions of power that the trade union organizations act as leaders. On condition, however, that they still maintain the critical distance from political and economic authorities, remain as a social movement to question the system, either from within or externally. They must be responsible and clear headed, bearing in mind that too much pragmatism will make them loose direction. What is needed, indeed, is give to give meaning to society. What in effect is the use of the economy if it is not to ensure the well-being of the majority of people?

Willy Thys
Secretary General of the
World Confederation of Labour

77th year, number 1999/3
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ILO 1999 An agreement, an expulsion and a favourable climate
  Top

The 87th International Labour Conference held in June was marked by the unanimous adoption of an agreement against child labour, a few good speeches, the expulsion of Myanmar from collaboration with the ILO and by a few other interesting debates. Some basic questions also arose.

Regulations have become more necessary than ever

It will be recorded in history, that at the International Labour Conference of 1999, International Convention no. 182 on prohibiting the worst forms of child labour and immediate action for its elimination, was unanimously approved. It was the result of a long political and legal process which was the subject of debate until the very end, especially on the issues of child soldiers and access to education.

There were other interesting moments at this conference. First, the new Director-General, Juan Somavia, presented a report (decent labour) and listed some priorities which were well-recevied by the delegates (see Labour 99-01). The conference also included some guests who were not satisfied with formal declarations. This is the case of Mrs. Ruth Dreyfuss, president of the Swedish Confederation, from a strong trade unionist background, and former delegate of her country to the ILO. She insisted on the recognition of the complementary role of the ILO with other international institutions such as the World Chamber of Commerce, the Bretton Woods institutions, and all the institutions of the United Nations. They should work together according to the ideals of the ILO, which serves as a social conscience to the world. There is the need for Switzerland to improve upon its social protection programme.

Another special invited guest was the president of the United States, Bill Clinton. He came to show his support to the ILO, and in particular, the fight against child labour. Some questions undoubtedly arise from this visit. The United States in fact lags behind with regard to the ratification of ILO agreements, mainly because the senate, which is conservative, stands in the way. Despite what appears to be hypocritical, and in spite of the battering that Bill Clinton is receiving from the media, the general feeling in Geneva was to make the most of this visit, which could strengthen the president’s standing with the U.S. Congress.

Finally, Amartya Sen, on behalf of the ILO, received the Nobel prize for economics in 1998. By elaborating on his thesis on famine, the Indian economist established that the effective protection of the worker’s interests depends on the level of democracy that exists in the countries concerned.

Ratifications in Indonesia

Two things were apparent in all the speeches. The first has become a quite current issue: globalisation should have a social side to it. The second one is more substantial, in that this social aspect should take the form of rules to be followed by the key players in the game of economics. The only sour note was the presence of the President of Côte d’Ivoire, Henri Konan Bedie, who decided to teach the trade unions a lesson. They were accused of ‘resisting to change and reform’. Meanwhile the Ivorian government persecutes organisations that demand pluralism and the liberty to operate trade unions (see p. 22). On the other hand, the conference was pleased to learn that Indonesia has become the first country in South-East Asia to ratify 7 agreements concerning the principles and fundamental rights of workers. Despite these advances, there has been one preoccupation throughout the proceedings, mainly concerning the Côte d’Ivoire affair : Where lies the real power of the ILO which does set the norms, controls their implementation, but has no way of sanctioning countries that violate them? However, an exception has been made in one case. Steps have been taken against Myanmar, in the form of expulsion. Due to its persistent practice of forced labour this country no longer benefits from co-operation with the ILO. The end of this session of the conference was marked by the election of members of the Governing Body of the ILC, for a three-year term. Fernand Kikongi, president of the WCL, has been re-elected as Chairman. T. Wojcik of the Solidarnosc (affiliated to the WCL and the CISL), is the new vice-chairman and four member organisations of the WCL have been appointed as deputies. According to Willy Thys, Secretary General of the WLC, «the majority vote system deprives us of a representation which corresponds to our representativeness». After the conference, the council appointed its officers : Jean-Jacques Elmiger (government representative from Switzerland) has become President. The two others are Rolf Thusing an employers’ representative from Germany, and Bill Brett, a workers’ representative from Great Britain.

Andre Linard.

MY FIRST TIME………

Participating in an ILO conference is surely the best way to grasp the roles played by various groups of society. One obtains a true picture of the rules of the game, from the tripartite sessions. The seating arrangement in the conference rooms is very significant. The chairman, who conducts debates, counts votes and gives legal and technical assistance when necessary, is seated on one side. Government representatives are positioned exactly opposite. To their left are the representatives of the labour force, and to their right are the employers’ representatives.
The debate is between the groups on the right and on the left. Each group tries to convince those in the centre, of their stand. On one hand, it is the vote of the government delegates that tips the scales to one side or the other. On the other hand, governments must be convinced to ratify and integrate the agreements at the national legislative level.
The meeting that I participated in was on the revision of agreement no.103 and recommendation no.95 of 1959, which both deal with the protection of motherhood.
We the women were trade unionists from all over the world, forming 90% of the group of workers. I tried to imagine what it was like in 1952. I am sure at the time, women were poorly represented.
I was motivated, and also convinced of the fact that the commitment of women to trade union organisations had its advantages, though on a day to day basis, its importance may not be evident. Progress is however not as rapid as one would have desired. This year, the ILO is eighty years old. On this occasion the chairman of the Swedish confederation, Mrs. Ruth Dreyfuss, gave a speech at the ILO General Assembly.
Just being present in the room, even as an observer gives one a feeling of importance. One feels that history is in the making, and that all the ideas being expressed could become a reality. Suddenly, the just and fair world that we have always desired doesn’t seem as unattainable as it used to.
Like the WCL delegates, we were priveleged to receive assistance from the Geneva office of the Confederation, which is close to the Palais des Nations. The extraordinary collaboration and generosity of the permanent members of the world labour confederations enabled us to work efficiently, and in a friendly environment. It was for me, a gratifying experience which I would like to have again.

Carmen Urrutia
Sec. General DCF/USO

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Motherhood: an interestimng opic with more ground to be covered Top

The first International Convention on the Protection of Motherhood was adopted in 1919, and revised in 1952. The objective of the texts (agreement no.103, and Recommendation no.95) was to ensure that all female workers have basic security during pregnancy, labour and weaning periods. Few countries (36)have ratified it, but others do have some good national policies on the subject.

According to the ILC, in the next decade, 80% of the women in industrialised countries, and 70% of women in the world will be working throughout their childbearing years. agreement no.103 was thus brought back to the table of the International Labour Conference which was held last June, to be adapted to new trends in employment and the employment of women. The International Labour Conference of the year 2000 should approve a new agreement and a new recommendation. There are some key issues that must be discussed. Firstly the scope of the texts must be widened to accommodate women employees : labourers, blue-collar workers and non-professionals. Secondly there should be greater protection against redundancy, for the period between the start of pregnancy and the resumption of duty after maternity leave. Finally, a new one, which prohibits all manner of discrimination with regard to motherhood.

Tensions and reasons
for caution

The first point to be considered was the duration of maternity leave before and after childbirth, as well as the fact that this leave is mandatory. The discussions also addressed the other types of leave, such as sick leave ; a break for breastfeeding ; eventually giving both parents the right to leave for parental duties, and adoption leave….

Finally, the benefits granted to female workers were debated on, such as medical benefits before, during and after childbirth and cash benefits which are appreciable, in relation to previous salaries. The debates between the government delegates, employers and the workers, were lengthy, but did lead to a good recommendation and agreement. The final text is less specific than the previous agreement, and is vague on certain topics such as the mandatory six weeks’ leave after childbirth. On the other hand, it includes and therefore makes compulsory, the points contained in the hitherto non-compulsory recommendation.

It is too early yet to pre-judge the results of the negotiations which may prove difficult when the time comes for the final text to be adopted. For the employers and for certain governments, the buzz-word is flexibility which in this case means refusal to conform to the norm. According to them, the convention should be limited to certain guidelines, then it would be for each country to take specific measures. The workers are of the view that this distorts the essence of ILO agreements.

Whilst waiting for the forthcoming second discussion on the Protection of Motherhood scheduled for June 2000, trade union organisations, in every country, that are aware of inequalities concerning motherhood, should put the necessary pressure on their governments, in order to come up with specific guidelines.

Annette Lemoine
CNE/Belgium

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Children, Finally ProtectedTop

This has been in the pipeline for a long time, and was discussed in 1998. Agreement no. 182, which is on The banning of the worst forms of child labour and immediate action to ensure its elimination, was approved in June 1999. It has set the age limit at 18. All three groups (employers, governments and workers) expressed the desire for child labour to be abolished ; it has however not been easy for them to agree on the form it should take. For example the title of this agreement could have been more strongly worded : The immediate banning of the worst forms of child labour…… Unfortunately, this has not been the case. The Chairman of the commission prefers to reach a consensus that would be adopted by the highest possible number of countries, rather than to have a stringent format that would be less accepted.

The agreement complements, but does not replace the other international instruments regarding child labour. It does give the criteria for the worst forms of this type of labour : slavery and forced labour, prostitution, pornography, illegal activities, all forms of work that endanger the health, security or morality of children. The last category should be defined on the national level, which leaves room for certain ambiguities.

The real culprits

There are a few other issues that pose problems, for example child soldiers. The workers would have liked to prohibit all youth under the age of 18, from participating in conflicts of any kind. The United States and certain European countries are however opposed to this. Finally, the text prohibits « all forms of forced recuitment in respect of children, with the view to involving them in armed conflict ». The trade unions have accepted it for the time being, in the hope of making some modifications in the future.

Another debatable issue is the place of NGOs. Their role in drawing up agreements has been crucial, but not to an equal extent in all cases. However the new approved texts have not fallen into the trap of quiestioning the usual tripartite system of the ILO. Finally, if none can deny the importance of education in the development of children, the commitment of the United States to ensuring free basic education to children who have been freed from unlawful labour has been daunting to certain developing countries, who can only implement it with the guarantee of international aid.

Recommendation no. 190, which supplements the agreement, also contains an important point: In breach of the law, it is those who employ children in unlawful labour that will be sanctioned, and not the children themselves. That would be most apt.

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The Gradual Enforcement of the NormsTop

The Commission for the enforcement of norms ensures that agreements and recommendations are respected by the different countries.
In the beginning, there was a general evaluation which showed an increase in the number of ratifications, and some progress in terms of their enforcement. Willy Peirens, worker vice president of the commission, points out that «The line of progression is not always clear. Moreover, it is slow». The free zone areas which constitute a real problem, have become a priority for the ILO, which is taking specific action in this regard.
The commission has also conducted a full study, specifically on the subject of migrant workers (see Labor 99-02). A limited number of ratifications and agreements have come to light. The ideal of equal opportunities for migrants is far from being achieved, whereas the number of migrants is on the increase.
Finally the Commission has studied 23 cases of violation of the rules in 21 countries from every continent. Apart from the sanctions that have already been placed on Myamar, there was special mention of the conclusions concerning Cameroun. This shows a certain degree of seriousness, due to the constant interference by public authorities, in trade union affairs.
In the case of Mexico, it is the privatisation of Social Security that poses a threat to basic social rights. In Ontario, Canada, ultra-liberal legislations violate trade union rights. In Russia, the non-payment of salaries constitutes an enormous problem, which on the other hand is beneficial to enterprise. In Guatemala, the report of the Commission of Experts says: «Insecurity and instability at the workplace, arbitrary redundancies with anti-trade unionist motives, as well as other anti-trade unionist activities prevail». The Commission for the Enforcement of Norms has not been idle, from all indications, it will be the same next year.

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Co-Operation that is technical in nature, but important Top

One only finds experts engaging in pointless and abstract debate. However the idea of technical cooperation that has been implemented by the ILO is the condition for the launch of concrete programmes intended to help member countries to realise their commitments to the ILO. The IPEC programme, which fights against child labour, as well as the the STEP programme which is for social economic support are some examples.
Under the impetus of Somavia, the new director general, the de-centralisation of the ILO will be reinforced and teams of various disciplines will be sent out to the field to carry out these programmes.
The work of the Technical Co-operation Commission has been hindered by consant opposition from employers and governments of south-east Asia and also from Latin America. They reject any strict guidelines for the implementation of the Declaration of Principles which was adopted in 1998. Another difficulty which lies in obtaining guarantees for the usual ILO practise of tripartite participation, could also arise in the implementation of national ILO programmes. There is work to be done in this area as well.

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Dossier: Putting Transnationals under a MicroscopeTop

Bedeviled over the years, and then courted by governments, companies called multinationals are today considered the number one adversaries of the world of workers. But, are there serious arguments behind the accusatory slogans? Here are some elements which depict the actual portrait of these “monsters”.

Transnationals :
Who? What? How?

UNCTAD, in its 1998 Report on investments in the world, defined transnational companies by distinguishing between “parent” companies and branches. The former are companies which control industries or other entities in countries other than those of their origin. It is generally thought that a minimum of 10% of the capital or the decision making power is necessary to talk about real control. The branches are therefore companies in which an investor resident in the foreign country owns enough shares to participate in the management of these companies.
Such a definition leaves a void. In a teaching document (1), GRESEA (Brussels) gives additional details: “According to the United Nations definition, multinational companies are private or public companies which own or control activities of production of goods (oil, automobile, medicines…) or services (transport, tourism…) outside the countries where they are based. (…) A transnational company is a large firm with at least six branches abroad.”

The term transnational is generally preferred to multinational. The latter indicates that the company belongs to several nationalities. Whereas the firms in question operate increasingly as if they are not of any nationality, even if the parent company is located in a national space. Their shareholders are spread beyond borders, and so are their activities. And above all, their logic itself makes them transcend borders. The heads of such companies no longer act according to the interests of the countries they belong to, but in the interest of the company. They are transnational.

A very imperfect competition

The importance assumed by transnational companies is the result of an old process, but which was accelerated and transformed in the last few years. By virtue of the law of diminishing returns, merger is part of the rules of the game of the capitalist economy. Since the end of the 19th century, the situation of perfect competition, where a stakeholder is incapable of single-handedly exerting a decisive influence on a market, was been overtaken by events. Anti-trust laws were supposed to halt the excessive power of certain large groups; they still exist, but are hardly effective. Since then, mergers are on the increase, the largest generally absorbing the smallest, beyond borders. It is vertical when the stakeholder is present in all the stages of production of a good or a service; and horizontal when confined to one stage, whilst eliminating his competitors.
During the last quarter of the 20th century, some qualitative steps were taken. Some were political: the fall of real communism, for example, which gave an impression of a henceforth, unified world under the power of the market. Others were cultural, introduced gradually in the media, research centres, universities and finally in the mind, the neo-liberal ideology was imposed as the “only thought”, to which there was no alternative. Others yet again were technical: this is the case of the enormous progress made in the transmission of information. It now enables one to work in real time, 24 hours over 24 hours, all over the world, and to transmit information with the help of the same texts, sounds and pictures.
The Lisbon Group, animated in particular by Riccardo Petrella, differentiated between three successive stages: internationalisation, multinationalisation and globalisation(3). The first is measured by the intensity of external trade and populations movements with statistics, which allow a surveillance and orientation by political authorities (page 54). Multi­nationalisation is characterised by delocalis­ation of resources, first and foremost of capital and to a lesser measure, la­­­b­­our. National borders are increasingly easy to cross.
Finally, globalisation is characterised by the weakening of the national power of political authorities. “It is difficult to recognize a precise territory (be it legal, economic, technological or any other) of organisations throughout the world, even though they have a country of origin”. (page 69). The three key words of this globalisation are liberalisation, privatisation and deregulation. It is the paradise of multinational companies. We are part of it.

André Linard

( 1 ) Denis Horman: “Stratégie des multinationales. Résistences scociales (Dix fiches pour comprendre), (Strategies of Multinationals. Social Resistance (Ten documents for understanding it) GRSEA, Brussels, 1998.
( 2 ) UNCTAD: World Investment Report, 1998, page 1 - 2.
( 3 ) Lisbon Group (under the management of Riccardo Petrella) : “Les limites de la compétititivé” (The Limits of Competitiveness) Labor Edition (Brussels), 1995. Available in Portuguese, Italian, Dutch, English, Spanish, Japanese, Russian, German…

200 HEAVY WEIGHTS

The number of transnational companies is estimated at a minimum of 53,000 and that of branches at 448,000 (2) worldwide. In 1996, the figures were 40,000 and 270,000 respectively.

These figures should however be considered in relative terms, because the real power in decision making is not equitably shared between these 53,000 companies. The 200 largest ones (that is less than 0.5%) represent 28.3% of gross world product, a quarter of which belongs to companies based in the United States alone. The first ten made nearly as much profits as the other 190.
Out of these 200 companies, 190 have their headquarters in countries in the North: 62 in Japan, 53 in the United States, 23 in Germany … Koreas has 6, and China, Brazil, Venezuela and Mexico have one each. In the lead with regard to the turnover, is General Motors, followed by Ford, Shell, Exxon, Toyota, General Electric, etc.
The economic weight of transnationals according to sector is also very obvious. The 1999 Report on Human Development produced by UNDP (page 67) indicated that the first ten world pharmaceutical groups hold 35% of the market; those in information technology 70% and those in telecommunication 86%. Comment from the Report: “The conclusion is clear: privatization does not automatically create competition”.
Thus, the most lucrative markets are more and more dominated by transnational companies. Their share in world exports rose from one quarter at the end of the 1980s to one third in 1995. A month does not go by without an announcement of a fusion between giants (see diagram 2.1)
Last comparison: the weight of these multinational companies in relation to countries. One is used to comparing the poorest of the latter to the largest of the former. From now on, this is what must be done: even the countries considered as “rich” are overtaken. According to the last UNDP report (page 32), today, the turnover of General Motors, the largest transnational, is more than the GDP of Thailand and Norway. The turnover of Ford and Mitsui & Co. is more than that of Saudi Arabia, Shell has a turnover equal to the GDP of South Africa. Whilst the staff of Mc Donald’s is more than three times that of the United Nations.
One question for the road: where is the real power?

Parent Branches Ratio
Company
Developed countr. 43 442 96 620 1 / 2,2
European Union 27 846 34 975
Switzerland 4 506 5 774
USA 3 379 18 901
Japan 4 231 3 014

Developing countr. 9 323 230 696 1 / 25
Africa 32 330
Latin America 1 109 21 174
Asia 6 700 202 996
(Excl. Japan)
PECO 842 121 601 1 / 144
Total 53 507 448 917 1 / 10

Source: UNCTAD : World Investment Report, 1998, p. 3-4.

TRADE UNIONISM AND MULTINATIONALS

“NO DIVISION”, NO FUTURE?
Hamid, group supervisor at Daewoo, is victim of an accident at work. On returning to the factory, he spent six months cleaning and clearing cigarette butts, or sitting in a chair, waiting to be given work, his salary reduced, as a result of the “no division” syndrome.
The factories are often Japanese, Taiwanese or Korean, set up all over with their own practices. An example is Daewoo.
The Korean company has opened in three factories in Lorraine (France), 1,700 job positions, which is welcome in the region with little employment. The state has heavily subsidized the company; nearly a billion French francs (approximately US$165,000), according to the daily “Libération”.
One of the factories is located in Mont-Saint-Martin, where cathode tubes are manufactured. Opened in 1995, the factory employs 600 people and experienced its first strike last June. The workers were fed up and could no longer tolerate the harassments resulting from “Korean style” management methods. The issue at stake was a department known as “No division”. Those who absent themselves due to illness, work injury, operation etc. go through it on their return to work. They are assigned minor duties, even humiliating jobs like cleaning, painting the walls,….. or simply waiting to be given work. This is to put them back into the system, management affirms. “To punish us”, retort the workers.
At their places of work, the workers are sometimes observed for a quarter of an hour by a supervisor assigned to them. Chairs are taken away from them. Their collective agreement is replaced by circulars.
So, in June, there was a revolt. A strike for a rise in salary, and for the end of these harassments. Management used blackmail to close down, but was still forced to negotiate. After two weeks, the workers won. Work resumed.
But for how long? Transnational companies have their own strategy in which employment does not count. To the total exclusion of salaried workers in Lorraine, Daewoo negotiated to take back its electronic with Samsung in exchange for the automobile sector (a project that was aborted). Do the Mont-Saint-Martin factory and do its workers still have a future? In any case, the French authorities seem ready to make new offers: it is a matter of canceling a tax debt and granting new aid to the multinational.
Despite similar facilities, JVC and Panasonic have closed down in the same region. And, it is in Seoul that the continued operation of Mont-Saint-Martin will be decided on.

We are reproducing the following text with the aim of provoking reflection on the theme. It is about the report of a workshop held during international meetings of “Another world is possible”, held in Paris, at the end of June 1999. These meetings were organised by “Association pour la Taxation des Transactions financière pour l’Aide au Citoyen” (ATTAC) - Association for Taxation of Financial Transactions for Aid to Citizens.
The subtitles are from the Labor edition.

At all times and in all places, trade unionism has fought everything that allows competition between salaried workers at national as well as international level. Should this fight take on a new dimension today? In fact, 45,000 multinationals surveyed, had 250,000 branches, generate less than 5% of employment in the world, but produce more than 25% of world GNP. The turnover of Mitsubishi is equal to the Gross National Product (GNP) of Austria, that of Ford is more than Norway’s GNP, that is the magnitude of the problem!

Three phenomena characterize the policy of multinationals:
1. A policy of merger-acquisitions, with subcontracting of sectors considered less productive - at draconian conditions for the subcontractor (public companies which are nationalised or recently privatized do not escape this type of policy).
2. The inability of governments and international institutions to control the financial and commercial flow of these multinationals from one country to another.
3. These multinationals play an essential role in deregulation, notably of financial processes (speculation on currencies and the stock market, development of tax havens…).

The last point alone would suffice to justify the commitment of ATTAC on this issue - in conjunction with what trade union organizations of different countries have already achieved.

In fact, these trade unions did not wait to inform themselves reciprocally, analyse together, establish international networks and structures like Group Committees, draw up demands to unite workers of branches and subcontractors, plan solidarity struggles and strikes - such as those organized against the closure of Renault-Vilvoorde.

Eradicating trade unions

This workshop brought together nearly 100 participants, 18 of whom spoke about their experiences and their analysis. We will cite some examples, noting in particular the difference between the way “rich countries” (where most of the multinationals have their parent companies) are dealt with and “poor countries” which derive very little economic gain (taxes) and where workers are in very disadvantageous social conditions, close in some cases to slavery (child labour, female workers,…).

A delegate from Costa-Rica explained to us how the multinationals in the banana industry (based in Europe or the USA, but owning plantations in Central America), colluded in the 1980s, with local governments to abolish almost entirely any form of trade union resistance in these countries. In the 1990s, new forms of actions had to be “invented” to defend these overexploited workers. 400 trade unions and organizations including NGOs of consumer countries came together, through modern means of communication of public opinion to organise international conferences, to obtain for example in the USA, supermarkets demanding audits on the work in plantations, etc..

A French female delegate having participated in solidarity in these struggles, emphasized that in the face of the policy of multinationals who practice “the lowest bidder” in each country, with threats of “relocation” in case of resistance, one must oppose the principles of trade union rights and the introduction of cost of social and environmental protection. Despite some advances at the international level, a lot more needs to be done.
A Mexican delegate denounced trade agreements between countries which under the cover of facilitating trade and mutual activity, include clauses aimed at outdoing the laws, regulations and social advantages of these countries. This is how 60 trade union organisations from Mexico, Canada and the USA met, during negotiations for free exchange between these countries; and also how an association, “Citizens of Mexico faced with the European Union” was established during new negotiations. In fact, most of these agreements are between states of unequal economic weights. The conclusion of these agreements will aggravate economic, financial and social imbalances between these states and people, if guarantees correcting this condition are not introduced.

Great is beautiful

Militants in the banking sector in Senegal have hinted about the dismantling of the public sector to the advantage of French multinationals, (BNP, “Société Générale” ,...), resulting in 1,500 redundancies.
A Korean delegate denounced practices of the AXA group in his country (which bought back a local enterprise) by summing them up in 3 points: do not talk, do not meet, no trade unions. Two female trade unions were established and are on strike to obtain these fundamental rights. A delegate from Uruguay denounced the privatization of gas “Gaz de France” and the policy of the latter. From 1996, the work force has been reduced from 420 to 200 and following a hunger strike in protest, 33 were dismissed, 31 of whom were union members.

Speakers from Chile, Mexico, Cuba, Belguim, France, etc completed their testimonies and analysis of this picture of very diverse realities.

The time assigned (3 hours) and the objective (“exchange”) of this workshop did not permit the conclusion of analysis of new strategies of multinationals which was however advanced in trade unions and among “experts”.- why the vertical and horizontal holdings of yesteryear, after having “impoverished” and sold them off “by portions”, (the saying then was small is beautiful), they come together by professions (banking sector, pharmaceutical industry …) to engage in titanic fights (public tender to purchase BNP-“Société Générale-Paribas…); the increasing role of “institutional investors” to the detriment of “entrepreneurs” (Steve Job dispossessed of his Apple invention…); the reduction of internal budgets for research, development and training, concommitant with the demand to make public research work in their areas (in order to make the community bear the cost of it?); etc…

Touching the image

It is yet again not so much a question of dealing with the issue of how trade unions and citizens can act effectively, in the face of the strength of multinationals, to compel them to respect people, societies and countries where they operate. But, some grounds have been gained by certain people, notably joining trade union struggles and powerful public opinion campaigns. For, their distinguished image could well be the Achilles’ heel of these companies that only fear the impact of stock exchange reactions.

By way of conclusion, only one certainty stands out - which the multinationals do not hide and even boast about in financial circles - their only reason is to search all over the planet for where they can make maximum profit in the short term (while at the same time stating that the cost of their practices to people, societies, the economies and to ecosystems that could be destroyed or permanently upset does not matter to them since it is not their area, but that of their policy… and that multinationals, as is well known, do not interfere with politics!).

DIFFERENT NAMES,
SAME REALITY

Industrialized countries are not spared from the pressures of transational companies. They are not called by the same names there, but the realities and their consequences are the same as what prevails in the countries of the South. Below is an interview with Anne Vincent, of Centre for Socio-political Research and Information (Centre de Recherche et d’Information Socio-Politique” (CRISP), in Brussels, on the centres of coordination.

Labor: Briefly, what is a centre
for coordination?
Anne Vincent: It is the term given to a tax system specially meant to attract companies, the aim of which is to coordinate activities of multinational groups. Ultimately, the same thing exists under other names, in a large number of countries. It is in fact a matter of attracting the “generous aspects” of these companies which, theoretically, handle a lot of business and must “stimulate” economic activity.

What are the objectives?
A.V.: By granting tax exemptions, the authorities hope that the coordination centres of transnational companies will set up in their countries rather than elsewhere. Officially, it has to do with contributing to the creation of direct and indirect employment, and therefore adding to the tax revenue of the country. In principle, the tax benefits granted to attract these centres must be compensated by indirect gains.

What are these benefits, and could one talk of “gifts” to multinational companies?
A.V.: The details may vary from one country to another, but the basic idea is exempting companies and their shareholders from paying tax on profits for a specified period.
Other taxes could also be involved. In Belgium for example, there is a fictitious advance deduction, which is not paid by the firms, but is however deducted from their tax as if they have paid it.
The system could also offer certain business advantages, like the non application of business regulation to foreign officials of these companies.
Where the criteria of the number of employment to be generated in exchange for these advantages is low, one in fact wonders if it is not a question of indirectly favouring the large companies. All the more so, as the idea was born in the 80s, when private capital was increased.

What is the difference between the centres of coordination and the tax haven or the free zones?
A.V.: The basic idea is the same - attract economic or financial activities to your country through legal exemptions and benefits which are more than what is offered in other countries. It is therefore a competition “by the lowest”. The tax haven attracts capital due to low taxes and secret banking. The free zones offer legislative exemptions on employment and on taxes to please investors. The centres of coordination focus in particular on fiscal reductions. In Europe today, efforts at harmonisation tend to restrict this competition, but it still exists.

Who emerges winner?
A.V.: It is difficult to tell. The repercussions for the host country could be very indirect, and thus difficult to quantify. On the contrary, it is clear that big companies benefit from it. What they are interested in is maximizing their profits. They therefore go where conditions are most favourable for them, which is also not easy for the small companies. They are aided by tax experts and lawyers who compare without end, the situation in the different countries.
When a firm makes profits in country X, but could make more elsewhere, it will be tempted to leave, unless it can put pressure on the authorities to country X to modify the law on employment using blackmail if necessary.

Opinion of the WCL

RESISTANCE IS POSSIBLE.
LET US USE IT!

The consequences of power that is granted transnational companies have already often been dealt with in these columns. Some of them are indisputable, others should be changed But in any case, answers can be found.
Employment, salaries, conditions of work and presence of trade unions: such are the different stakes due to the existence of transnational companies.
Do they create employment where they are located? In 1996, Unilever employed 270,000 of its 304,000 workers from outside the country of origin, General Motors 221,313 out of 647,000, Philips 216,000 out of 262,500 (1). Some millions of jobs are thus created in the foreign branches of these companies. In addition to these are those that are indirectly created in the subcontracting companies. According to GRESEA, in total, “the number of jobs linked with transnational companies in the world was 150 million at the beginning of the 1990s”.
Such a contribution to national economies is quite substantial; however it is far from stable. These firms in fact have the means of moving from one place to another and of eliminating at a go, the jobs they have created, for instance, where the national employment policy is not convenient for them. Besides, there are instances where jobs created by these firms destroy, dozens of jobs in the small local companies because of competition.

What counter-powers?

Salaries paid to those who are directly employed by branches of transnationals are generally higher than the average salary in the country, despite the great differences in salary between foreign managers and national labour for example. In Cost Rica, for example, the banana plantations belonging to foreign companies pay better than their national counterparts. But, on the other hand, the conditions of work are worse there (see article on Daewoo). Transnationals are powerful, and in effect capable of avoiding laws they find too restrictive, and if necessary, they threaten to move. Besides, the principle of free zones is only a formalization of this relationship between forces. It is not necessary at this point, to go back to the conditions of work in such zones (see for example LABOR-Magazine 98-4, pages 16-17). The prohibition of trade unionism or the pressures put on members of trade unions have become common practice there.
Finally, growing transnationalisation of companies is a challenge to trade union organizations to become efficient counter-powers so they can become a force to reckon with. How does one get access to information, how do you get the interests and voice of workers to be heard where decisions are taken, at times thousands of kilometers away from the factory, shop, office or plantation? There are many in the trade union world who think that sidelining their organisations is an intentional result of multinationalisation of companies.

Balance of powers

There is nothing new in it. The WCL has already often outlined the possible responses to the challenges posed by transnational companies.
The first are found within these firms and consist in trying to bring together workers of different establishments into organisations, capable of becoming counterweights for unified action. These organisations could be made compulsory. This has been the case in the European Union since 1996, where companies with more than 1,000 workers spread over at least two registered offices located in different member countries had to create a European business committee. The latter has no decision making power, but constitutes a place for information. Elsewhere, it is through international solidarity, that the workers’ organisations can aim at the same result.
Other forms of resistance comes from political powers. This is to do with the norms of work, resulting especially from ILO Conventions. It is important that such regulations continue to be produced, but in addition, “one must act everywhere with persistence so that the international norms of work will be ratified and applied”, as Willy Thys of the ILO, put it last June. Certain conventions are hardly implemented. The trend is rather towards codes of conduct, the contents of which are sometimes interesting, but create the inconvenience of having to depend too much on the goodwill of companies.
Finally, according to Gérard Fonteneau of the European Confederation of Trade Unions, “The stake is to become real international stake­holders, with skills, expertise, and know-how.” It is a favourable balance of powers that workers lack, more than techniques or competence. If the companies have transnational logic, it is only at this same level that the workers can hope to resist.

(1) UNCTAD: World Investment Report, 1998, pages 36 - 37.

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Transport Seeks its WayTop

“Can we do without the railway?” This question which was asked during the FIOST (Transport Federation of the World Confederation of Labour ) congress, was iconoclastic. The response led to some interesting analysis on the social role of public transport.

Difficulties in moving about in large towns, pollution, employment …. are some of the different aspects of the issue of public transport. The congress of the International Federation of Organizations of Transport Trades Unions (FIOST), organized last May, tackled another facet of the issue namely the social, and not only the economic usefulness of public transport.

“Can we do without the railway?”, was the question asked straight away by Gaël du Bouëtiez, of the Community (employers) of European Railways (CER). According to the logic of the market, he explained, “ there is no use for a train for journeys of less than 150 kilometres. Beyond that, it can have its place.” But, he admits that in this case, it is a matter of an analysis of the railway as a process of production, its internal functioning, and from this angle, due to its heavy infrastructure and as a large scale enterprise, the train does not adapt well to a changing urban economy which operates on tight flows and needs flexibility. Gaël du Bouëtiez however, recognises that “from the point of view of the environment, mobility, quality of life…, the railway is indispensable.” 95% of the external costs (social) of transport in the European Union is derived from road transport. This causes 45,000 deaths per year, compared to only 600 by rail; and even then, 500 out of these are a result of accidents with road transport. If the road was made to pay for what it costs to society (infrastructure, accidents, traffic jams, harm to the environment…), the cost of transport by car and trucks would double. But, as Gaël du Bouëtiez asks himself, who would have the political courage to do so?

9 or 900 kilometres/hour

Other interventions confirm this opinion. In the view of Hubert Essenberg, transport expert at the ILO, “ it is difficult to imagine the functioning of the big metropolis like Tokyo, New York, Moscow… without railway”. With Jean Dekindt of the International Union for Public Transport, he undertook an analysis of the morphology of actual cities and concluded that, “in our desynchronised cities, urban transport is a requirement for social cohesion, especially for people with low incomes who do not have other means of transport.” In fact our towns are developing and dividing themselves up at the same time into specialised areas: work, housing, trade, industry… The need to move about in order to have a social life is great. There is a paradox here in that, everyone wants to move about quickly and at the same time, this slows down the movement of everyone in town. Consequently, thanks to technical progress, “ what is far in distance becomes closer in time and what is close in distance becomes farther in time. Whereas you travel 900 kilometres an hour by plane, this same hour will only allow you to travel 9 kilometres by car or by bus in a congested urban centre.”
Putting technical progress at the service of society and not economic interests is, according to Jean Dekindt, “a matter of political decision relating to the entire management of urban space.” Public transport as it is, is complementary to other forms of transport.

Private trains

But, who will decide? The state, is the spontaneous response given, since it is the trustee of general welfare. This is not so certain, as Gaël du Bouëtiez says, “Everyone wants to save the railway, but everyone also wants to adapt to it”. The authorities, of course, who historically have had the initiative to do so and staff as well who fear the social repercussion of transformations. They are not wrong because in the European Union alone, 750,000 railway jobs were lost within fifteen years and there are 900,000 left and 8 million worldwide. In Argentina, 75,000 railway workers were laid off due to privatisation.
There are also the users, who want to have a say in the management of the railway. But which ones? Between the clients - passengers and the clients - goods, the interests are not the same. According to the delegate of the CER, “some enterprises have removed a taboo by questioning for the first time, the priority given to passenger trains.” Up until now, the “politicians” have not given in to this demand, because “passengers vote, goods do not vote”. But what about if privatisation progresses? The European Commission, adds Gaël Bouëtiez, is already working on the assumption of “private” trains chartered by transport companies for example.
Strangely, a fourth category of people claim a right to the management of railways: those who do not want to suffer the inconveniences of other means of transport (pollution, noise …). Inhabitants who could at other times also be transport users or workers in this sector.
Undeniably, the fundamental stake is neither technical not economic, but political. This is because on one hand, one has to settle once and for all the diverging interests, and on the other hand, because it is the very conception of social life which is at stake.

Social profitability

Privatisation is only one facet of the debate on public transport, that those intervening do not idealise. In the view of Henri Essenberg, “It is a mistake to think that it is only privatisation of the railway which will be able to meet the challenge of the market, based itself on the false idea that public companies are not encouraged to become efficient because they would not have any competition. There is competition between rail, road and air transport.”
It is not even certain that privatisation will bring about greater efficiency. Juan Carlos Schmidt, Argentine trade unionist, points out that his country had 35,000 kilometres of railway before privatisation, but today there is less than 15,000 kilometres. The network is profitable in the capital, but in the rest of the country, the state gives a subvention to private operators equivalent to the losses of the previous public management. What then does “being efficient” mean? The conclusion expressed by a Spanish delegate was “public transport is a social asset. Its social advantages will never be economically profitable. But at least social profitability is also important.”

A.L.

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Debate:Unions and the Media: A "Copernican Revolution" Top

European Information Director of Human Rights Watch, Jean Paul Marthoz even though a journalist himself, has always exhibited an independent mind and been critical of the media. He has just published a book entitled “Now, the world in brief”, which especially recalls information in the media, originating from the union. Interview.

Union voices questioning globalisation are hardly echoed in the media. Why? What is the real explanation for this silence?
The reason for the limited presence of trade unions in the media lies first in the “marketing” perception that the media have of themselves. To them, the public comprises businessmen, and this business world is itself not very interested in information that questions their perception of the world and their interests. This is evident in the economic press, where officialdom does not want to be questioned, and in the large television stations that specialize in information, and broadcast in connivance with their market. The media world is seeking to keep abreast with its market.
I myself question this vision, first of all, because the practice of good journalism is giving out much information, even the most disturbing. Several economic crisis have been unexpected due to the inadequate manner journalist have dealt with complex economic issues and consequently the big media houses do not delve enough into the complexity of issues.

Is what you call marketing conception avoidable?
Confidence must be restored in journalism just as in politics. Adapting the message to the state of opinion poses a danger and is a professional error on the part of the media, which have the journalistic responsibility to allow not only those who are being addressed to be heard, but also all the people and organizations who are part of the problem under discussion. They must also se able to see the other side of the opinion, otherwise this constitutes a systematic journalistic breach in the coverage of economic issues. Newspapers, which present the views of all actors are the best.

All the reasons you are giving come from the side of the media, but what is the responsibility in all this of the transmitting stations, the union associations for example?
I get the impression that in reality, the unions and other organizations fear information. They wish to transmit information, but do not necessarily accept transparency, thus opening up questions from the media. This is especially due to the place - often the least - accorded to information activity within union organizations. There is confusion between communication processes, useful to the organizations and information which must serve the interests or values held by the organizations.
Now, the big organisations that get across to the audience are those who have taken information to the very core of their concerns and therefore their structures. They do not merely indulge themselves in taking a declamatory stance on one subject or the other. Concern for child labour for example, is a result of detailed investigations, not great declarations.

Are the unions considered credible negotiators by the media?
These days, trade union organizations must not hope to be quoted only because of their institutional clout, but by the quality of what they say. Furthermore, after the neo-liberal wave of the eighties and the advent of a new generation of journalists, unions are considered more than before as troublemakers. Information union must bear this in mind and must endeavour first, to convince that the social factor is important, before they have something to say. For this purpose, they must write about important topics on which they have something to say. The union world must stop defending themselves, and tackle serious issues.

To what extent can one generalise by talking “of the media” as a whole?
I am very critical about certain tendencies of the media, but at the same time, an optimist about other aspects. There are more differences than we think. It is wrong to think that social concerns and union voices do not agree. There is room for disagreements, even if the media that bring it up do not have the widest coverage. But in terms of influence they can be important if they operate on the criteria of relevance.

In your book you talk of “copernican revolution” for the unions….
Actually, the role given to information has to be look­ed at basically. The newspaper association is generally not very good. It often seeks to please officials, deny internal diversity, instead of disseminating information which contributes to the debate among their members in society at large. Now, the union world handles useful and important information, but they under utilize it. The organizations must develop information strategies, without betraying their options, which respects the rules of journalism and even contribute to the improvement of its quality. In information matters, facts are more important than speeches about the facts. One must intelligibly assess already existing information and look for it in important and original topics. Taking a stance, condemnations etc, are necessary information internally for members. Externally, one needs facts and analysis.

It is therefore a question of what is right more than a technical question of appearing on a page, etc….
It is not a technical question. You must not confuse means and content. Unionism is not in the sphere of communications, but in the political sphere. One must not seek to sell oneself, but to secure a place in the democratic arena with quality message. At this moment, journalists who are citizens and the counter­vailing power for the participation of citizens, and unionism, based on participation, have become objective allies.

You also talk about the “candour” and transparency needed in order to be credible. How far must this go?
As far as possible. Journalists expect the union world to be more transparent than businesses. When one imposes ethics, ideals or non-profit making objectives upon oneself, one must be coherent. One cannot demand transparency from enterprises and rebel when journalists want to apply it to the coverage of the union world.
Journalists observe sometimes that national members of an international confederation contradict the principles of this confederation. They question themselves and ask questions. One must be able to explain the choices, point out the difficulties and not cheat even if all is not clear. One rule of the professional association of public relations demands that one never lies to the media. It is very true for union organizations.

GRIP and Complex co-edition, Brussels, 1999 p.310.

Reading material:

Gender and the informal sector.
A World Confederation
of Labour document.

Be they street hawkers, domestic workers, fish mongers or illegal factory workers, women are everywhere in the so-called “informal” economic sector. As far as the World Confederation of Labour is concerned, this is a paradoxical situation: on one hand, it is a chance for survival and proof of creativity, and on the other hand, there is the risk of exclusion and a new form of dependence. This, in any case, is what appears in a short and incisive document published recently by the WCL entitled Gender and the informal sector. This text is proposed by the Women and Labour Department of the WCL. It aims at applying to the informal economy, the so-called “gender” reading grid which refers to socially induced differences between men and women.
The document is first of all, meant for trade union organisations, which could have problems grasping the reality of informal employment. But it will also be of interest to all those who are concerned with employment and development.

Gender and the informal sector, 1999, 50 pages, 80 Belgian francs + postage to WCL, Brussels (32/2/285.47.00) or 4 Swiss francs + postage to WCL , Geneva (41/22/748.20.80); available in English, Spanish and French.

Migrants are here to stay.
An analysis by the World
Confederation of Labour.

With the globalisation of the economy, migration, which has always been in existence will increase, and constitute structural data on international relations, according to a report published by the World Confederation of Labour (WCL) in early June. As a matter of fact, if henceforth there is a brisk flow of capital, information, businesses, fashion and tourists across the borders, why should workers stay in their countries, asks the WCL? In its first chapter, the WCL report analyses the recent trend in migration, which has taken on a feminine, private and individualised character, and does not conform to legal procedures. It concludes with the following observation: “The political stake is not about how to stop migration (…) but rather to search for the most effective methods to protect and respect men and women as human beings and full-time workers, who have had the courage to leave everything in order to start a new life”. One of the solutions provided by the WCL is the ratification and implementation of the fundamental ILO conventions and those concerning migrant workers. Three other chapters deal with specific aspects of migration such as the changing nature of migration of women, children employed as servants, and migration to countries of the Arabian and Persian Gulf.

WCL: Migrant workers. Report on the rights of workers 1999, 80 pages, 150 Belgian francs + postage to WCL, Brussels (32/2/285.47.00) or 7.5 Swiss francs + postage to WCL, Geneva (41/22/748.20.80) available in English, Spanish and French.

See also: The WCL and migration, proceedings of the seminar on the same topic held in October 1998, 112 pages.

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Briefs Top

Mexico : women, workers and migrants: easy preys

Exactly how many of them are there: 170, 187, 192? The figures vary but it is a reality. Since 1993, close to 200 young women, mostly workers and migrants were brutally assassinated in Cuidad Jauréz, in the state of Chihuahua, which shares a border with the United States. In 1998 alone, there were 35, and in 1995, a suspect was arrested. Today, a group of bus conductors have admitted to 20 crimes committed under the order of the man suspected in 1995.
The way these crimes were committed have something in common, especially the characteristics of the victims. Nearly all of them are young women and migrants, who had come from the neighbouring states or from the south of the country to work in the “maquilaroras” (theatres) or to try to cross the border into the United States. According to a monthly magazine, “La Otra bolsa de valores”, the victims were killed because they were women (the rate of sexual violence is high in this town), because they were “maquiladoras” workers (therefore considered as less to nothing) and because they were migrants (that is to say, extremely vulnerable).
Since the first “maquiladoras” arrived here thirty years ago, Cuidad Juárez has grown by 400% explains José Alvarez Icasa in the magazine CENCOS. Each day, 1,000 people arrive with the intention of crossing the Rio Grande river or working in one of the 300 “maqui­ladoras”. Many of these are women from the rural areas, uprooted from their environments, and become targets for violence at work and in the streets. Since the means of transport and security are inadequate, they become easy preys.
Well before the press spoke about the assassinations in Cuidad Juárez, the “Centro de Información y Comunicación de la Mujer” (CIMAC) (Center for Information and Communication of the Woman), located in this town, denounced the passive attitude of the local legal and political authorities. Against the background of opposition between parties, there exists what Sonia del Valle of CIMAC calls “institutional indifference”. No doubt, this indifference is due partly to the corrupt nature of the police and the law. Sonia del Valle also thinks that the fact that the victims are “only” women, workers and migrants also explains this indifference.

Côte d’Ivoire: workers in the street

380 workers of the CARENA company, at the dockyards in Abidjan, have been on the streets since 1997, without employment and with practically no possibility of finding jobs. Their crime was going on strike after an agreement on a salary scale signed by the employer was not implemented. The police dispersed the striking workers, and the company immediately replaced them. Among them were 14 trade union representatives of the Dignité Trade Union which is affiliated to the WCL.
This was not the first time. In 1993, the 618 workers of the Institute for Forestry Development (IFD), at Irho Lamé, who were on strike were thrown out of their homes by the army and dismissed. The World Confederation of Labour had at that time lodged a complaint with the ILO. According to Basile Maham Gahé, Secretary General of Dignité Trade Union, similar events occurred in the following companies:- Nelci, Scaf, Abidjan Catering, Cosmivoire. It was considered serious enough for the ILO to send a representative to draw up a “mission contract” in 1994, on the spot. The government of Côte d’Ivoire promised the delegation that it would reinstate the workers after negotiations. The workers are still waiting.

Unfulfilled Promises

The Ivorian government attacks in particular, the Free Trade Unions of Côte d’Ivoire better known as Dignité. This is an independent trade union established in 1990, competing with the former single Trade Union, UGTCI, which continues to enjoy favours from the government. Dignité had to fight for several months before being given recognition under international pressure, even though Côte d’Ivoire had ratified the International Convention on the freedom of Trade Unions since its independence in 1960. Besides, on 1st May, 1997, the Prime Minister declared that “to be affiliated to Dignité, is like going to the abattoir”. There were many arrests, and on 4th February, 1998, the headquarters of the Trade Union was ransacked by the forces of law and order. At times, the aggressions are more subtle. For instance, the employees in the public sector are denied their salaries so long as they remain affiliated to Dignité, or the employers, who deduct trade union contributions from salaries, do not send all of it to the Trade Union.
Pressed by the ILO, the government made concessions. It abolished the need for an official approval for the creation of a trade union and subscription to the government papers by workers. It declared that after a period of practising democracy and pluralism, Côte d’Ivoire would apply the international conventions. But, this has not been done in practice. Basile Mahan Gahé further affirms that, “the government makes promises to improve its international image, but it does not fulfil them as soon as the ILO turns its back”.
The 1999 annual report of CISL on the violation of trade union rights confirms that “the code of work of 1995 does not properly protect workers against acts of trade union discrimination nor against interference from bosses”.
In the case of dismissed workers, the most important aspect is the refusal to give them back their jobs. The International Labour Organisation, which has always been supportive of them, has no way of sanctioning nor forcing the government to implement its decisions. But maybe it could have desisted from inviting president Konan Bédié who to the International Labour Congress in 1999. The Ivorian head of state affirmed that it was rather the trade unions, those demanding pluralism and freedom, who were “resisting changes and reforms by going on serious and indefinite strikes, marked by violence, break-ins and looting”. Currently, several hundreds of families remain in misery for asking for their rights to be respected.

Trade Union Rights violated: a record

As in every year, a report on the violation of trade union rights was published by CISL. It indicates that in 1998, 123 trade unionists were assassinated, 1,650 were aggressed or hurt, 3,660 were arrested and 21,427 others were dismissed for having carried out trade union activities. 119 countries, in all continents are involved in these violations, which constitutes a sinister record.

Debt: better late than never….

At their meeting in Germany in June, the G 7, the group of the seven richest countries, decided to cancel by 40% the debts of the poorest countries. The cancellation comes to a total of more than 65 billion dollars. This is the result of old demands made by organisations including WCL, associations and NGOs. The cancellation is subject to conditions such as economic reforms, structural adjustment, renouncing unproductive spending, and allocation of savings made to social policies.
As often happens, two interpretations are circulating. The first emphasises the positive aspect of the decision, which allows resources to be allocated for the needs of the poorest among the populations. Even though a distinction must be made between the effect of the announcement of the decision and its actual implementation. The second interpretation places the emphasis on its limitations. The cancellation is only partial, some countries are excluded from it and the conditions imposed are in the direction of “good governance” defined by the countries of the North for the countries of the South.

MAI, dead or convalescing?

According to the Trade Union Advisory Committee (TUAC) at the OCDE, “the likelihood (NDLR: rather the risks) of attending the launching of negotiations on a new multilateral agreement on investment in Seattle is reducing.” Disagreements actually came up in May between member countries of OCDE on the agenda for the next WTO meeting in Seattle, next November, and the transfer to the WTO of the debate on issues relating to investments was not brought up. In any case it did not appear in the communiqué of the OCDE meeting held on 26th and 27th May.
TUAC also brought up the split in the OCDE as to the way to tackle the rights of workers. “A clear majority of ministers confirmed the necessity for the WTO to treat the issue of fundamental rights of workers. But a minority of governments, led by Mexico at the presidency, succeeded in blocking this decision.” However, “the argument of some ministers who claimed that the willingness to establish a link between exchanges and the norms of work is a result of a protectionist attitude, which appears to be getting less and less response.”
Would the Multilateral Agreement on Investments (MAI) then be dead and buried? Other signs however call for vigilance. First of all because the potential content of MAI can be approved through partial agreement on agriculture, technology etc. Secondly because the powerful lobbies created by transnational companies, such as the Transatlantic Business Dialogue (see ‘Le Monde Diplomatique’ of May 1999, page 13) continue to exert pressure on the WTO, OCDE, the European Union….

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