Home
Member Login
sitemap
E-news SubscriptionBogor Indonesia, November 2005
Asian Transnational Corporation Monitoring Network
Intro
Why Organising Flexible Labour?
Focus on irregular capitalist work is a recent phenomenon. On the one hand, it is the increasing number of the non-traditional employment in developed countries that cause the ‘informalisation’ or ‘irregularisation’ debate. On the other, the growth of the so-called informal ‘sector’ or ‘economy’ in developing countries provokes discussions about non-traditional capitalist work. The former discussion tends to deal with labour in the informal sector as a temporary phenomena resulting from underdevelopment. Meanwhile, the latter tends to consider irregular work in the framework of ‘industrial relations’ and identifies capitalist work with regular work, ultimatising regular work. Therefore, both have limit in understanding the relation between the increasing movement of capital as a global phenomenon and the irregularisation of labour. [i]
Perhaps, to understand the relation, it would be useful to begin with the historical formation of ‘regular capitalist work’. At the beginning of capitalist development, capitalist work existed in various forms, which we now might call ‘informal or irregular’, such as seasonal manufacturing or agricultural jobs, work at family-run business, and so on. For most of the population, making a living was reliant pre-dominantly on self-subsistence and only partially on commodity producing labour. It was not until the emergence of large-scale manufacturing and the labour movement that the concept of ‘standard’ form of capitalist work emerged. Most of the elements of the formal form of capitalist work, such as ‘regular hours and pay, the provision of designed workplace, with pensions and sick pay arrangements and often the opportunity to join trade union’ (Bradley at al., 2002, p. 52), came into being since then. Formal employment then became a dominant form of capitalist work at least in developed countries. Furthermore, all the terminology of industrial relations, such as collective bargaining, collective agreement, workers council, and tripartite committee, were developed on the basis of the particular historical arrangement of capitalist work.
Even then, for capital, regular, protected capitalist work is not at all the healthy form of ‘capitalist’ work since, in capitalist ideal, the exchange relation between workers and capitalists appears to be a free contract relation. Intervention in the exchange relations should be exceptional because it denies the ideal of capitalism. Therefore, although ‘formal employment’ has become the definition of capitalist work, the standard form of capitalist work is confined within a few developed countries and certain industrial sectors and various forms of irregular employment survived. Irregular form of ‘employment’ here refers to the wide range of people whose working relation is based on direct and indirect ‘wage relations’. This irregular ‘employment’ however does not cover the ‘un-waged’ form of capitalist work, such as many forms of self-employment.[ii] Normally, self-employed are related to employers or corporation service users not through wage relations but through commercial relations even if they are working for the corporations. Although their relations with employers are vague and untraceable and sometimes practically do not exist, they are still doing capitalist work because their work functions to reproduce capital (by reproducing labour power of others, contributing to realising produced value, etc). It is also obvious that the reproduction of their labour is subjected not to the concrete achievement of their work but to the ‘amount’ of money s/he earns. In many cases, they do not have any means of production and employee. Furthermore, many of them are getting in and out of employment relations and stay unemployed in between. Many self-employed are as vulnerable as informal employees in that they cannot enjoy social protection such as social insurance, not to mention union protection.
The irregularisation of capitalist work at global level involves two main aspects. For the workers in developed countries, it mostly, but not exclusively, means a process of the dissolution of formal employment. Increasing number of workers previously in standard form of employment become disposable workforces. In addition, many functions and services previously handled by corporations have been transferred to the self-employed – however, without completely losing corporate control over the work. It affects not only workers who have previously enjoyed the privilege of job protection, but also new comers as new jobs are predominantly irregular. In this way, the size of the population under formal capitalist employment, i.e. the so-called ‘traditional’ working class, is decreasing therefore undermining the basis of traditional trade union movement.[iii] Lack of protection for irregular jobs ultimately means that labour forces are individualised in relation to capital. Employment relations become literally individual relations between individual capitalist and workers. In developing countries, irregular work is due to the non-availability of formal capitalist work for the population who are newly integrated into the increasingly dominant capitalist social relations. Irregularisation in this sense is a particular process in which the population working previously in non-or-partial capitalist labour relations is integrated into commodity production relations and the market. In this case, irregularisation is also a particular form in which capitalist work becomes truly global. In sum, the portion of irregular work against capitalist work is increasing globally. This means that capital must be united only with a particular sort of capitalist labour treated as a truly mere factor of production. In this way, capitalist labour, which was formally contained within the factory or industrial area in developed countries, is internalised in individual workers without regard to employment relations and working places and spreads into all over the society, becoming truly social and global.
To be finalised….
Part 1. Cases of Organising Flexible Labour
(extract from 2nd day discussion of ATNC Network Workshop: Organising Flexible Labour and from 1st and 2nd day of ATNC Network Workshop on Organising Electronics Workers – details of the organising methods and the context in which the organising campaign developed can be obtained by contacting the organisers)
A. Indonesia
1. PT Chang hong
1) General Condition
Established in 1988.
Located in Tangerang, Columbus zone
The product is air conditioners and TV – brand name is Changhong
The company belongs to local investor form Medane Chinese Indonesia.
The share belongs to Kuncoro. One man owned company.
Number of workers is 250. Among them only 10 were regular workers/rest were all irregular, short-term contracted without a guarantee of renewal.
The contract relations directly with employer, there is no labour suppliers involved in the recruitment process. The management and staff are regular workers, the rest are in production, all irregular.
Minimum wage of govt is 70usd/month
No shift nand 07:00 – 15:00 6 days a week
Educational background – technical high school, and engineering high school
Ethnic group – java, sunder, and Sumatra
50% male/50%female
There are many divisions – quality control, machinery and packing
There are workers sitting as well as standing
There are many violations by employers. Workers now know the violation after the strike
They include social insurance – actually workers paid but employer did not give it to insurance company.
There are many occupational accident – electric shocks but employer don’t care
Unfolding of struggle
In May 2005, there was strike action.
After the strike, the irregular workers working more than two years got the permanent contract. In organising work, workers involved in some activities, informal activities have been used to expand contact with workers and promote workers involvement in activities to organise union, these include sport events, eating together and religious activities.
The major issues that have been discussed in the organising process are 1) labour contract status, 2) house insurance, and 3) OSH. The obstacles are lack of awareness of workers. Very few members are involved in the union education.
Now the union is still in the process of registration. Also preparing organisational congress. For the status, they are active outside of company since they are not yet registered. There is education twice a month for members of union.
There are another labour group. The activists involved in Chan Hong are also involved in the alliance of the labour orgs in here.
There are 10 shop steward, consist of chair person, coordinator, education, organising and welfare division coordinators. Regarding negotiation with company, they set up a negotiation team.
The dues are directly from the members. There are two requirements to be member
1 must be involved in education and 2 must be involved in mass action.
2. Panasonic
1) General condition
Matsushita Panasonic (Bekasi)
Company established in 1991
Union is affiliated with SPMI (Indonesian Metal Workers Union)
Matsushita Panasonic has 12 factories in Indonesia
Panasonic Bekasi with 7,000 workers
2) Production line:
FINAL, mechanic, cylinder, moulding, painting, process
3) Employment system:
· 3 months as trainees
· Regularisation
· After 1995 – two system
· - contract workers
· - trainees
· After 2000, 75% female (production and assembling) and 25% male (VCR, VCD, DVD, Driver etc.)
4) Composition of workforce: from 2000 to present: 60% contract and 40% regular workers.
5) Wage system for Bekasi
Trainees – Rps 710.000 (Us$ 71) pm
Regular workers Rps 900.000 to 100.0000 (Us$ 100) pm + Us$ 1 for transportation benefit per day
6) Working hours:
· 8 hours a day
· 40 hours a week
· 5 days a week (mondy to Friday)
· Sometime Saturday is overtime (double rate of OT)
7) Organising Activities:
Started organising from 1992 and for the two years organisers had constant fight with management.
The issues included pension, bonus, transportation, wage increase, wage cut if absence, health benefits, number of holidays and holiday benefits.
Serious organising started. Organisers tried to expand their contact with workers. They distributed a form asking them about problems and proposal related to working conditions, benefits and social security etc. We distributed these forms in the company busses and collected from a letter box set up outside factory gate. In this way we got suggestions from possible members.
One the basis of suggestion and interaction with worker, union was formed in 1994.
We only have one union in the factory
During the negotiation for CBA which took 5 month in 1996, 7 officers were terminated. In the fight for reinstatement, they got support from Panasonic union, Japan and SPMI (HOW?). The fired workers and union file a case with govt. We could win and the workers were reinstated. However, strange enough, all 7 reinstated workers later resigned with double compensation.
Panasonic union got CBA in 1996 : silent feature
– Transportation Rp 10. 000 (1 us$) per day;
– holiday pay
– medical benefits – equal to 3 month wage
Lesson learned:
1. A feature of Japanese management – no strike – negotiate only
If there is deadlock – 1 go to govt; 2, strike; 3 support from outside
Note:
- except managerial level all workers even contract workers are union member,
- now management engage with union specially in education
- Before formation of union and during 2 years conflict with management, organisers could not make living.
Advices from other activists
Problem/issues for advice (specific organisational problems):
1. Members are scared to take responsibility (ex. don’t want to take official positions).
2. How to increase strike fund.
3. Women issue:
a. Most members are female. Most officers are male.
b. Female union officers and members once married are told by their husbands not to be active anymore.
Advice
1. Conduct regular/non-regular meetings
a. general membership meetings
b. shift meetings
c. section meetings
d. meetings during holidays if not possible during work days
2. Authority and power should not be centered only on the chairman. Delegate responsibilities and tasks to officers, committees and members in the day-to-day union work.
3. Moral appeal
a. honesty
b. sacrifice
c. always consider the majority’s interest first
d. personal relations with workers even not in union matters, involving their socio-cultural life.
2. Motivate the new generations. Union now seems stable, but there is a need to search for the potentialities of the new generation. Training new generations in actual practice (on the job training) Workers exchange (in membership level) to gain practical experience
4. If the change (in terms of new leadership) is smoothly done (not radically), meet the systematic change by education.
5. Massive education:
a. to prepare and motivate the workers with the new tasks
b. to prepare them of their issues so that they can participate
(By education, it will not be difficult for workers why they should give contribution for strike fund. They can give more active participation, not only money.)
c. (for female workers) to explain to their husbands the need to be active in union; get husband’s support
6. Gender issue – since woman is majority. It should be reflected in all the activities. Like even cultural events. Also gaining support from family.
3. PT M: Bread producing company
General condition
Total number of workers 3,000
The management make use of outsourcing workers from PT D, which is a labour supply company. There were 146 dispatched workers. They are all very young, recruited just after graduating high school.
There were also workers from other dispatching company. However, no exact number is known.
Irregular workers
The treatment for the contract workers has been unfair from the beginning. For the first day they got 6000 rs/day, which is well below the minimum wage. It should be 25,000 rs/day according to government minimum wage. On top of that, dispatched workers needed to pay RS 30,000 for getting a job in the name of administrative fee.
They rent a house 2´3 for 4 people
They need to borrow money from their relatives and friend since their wage could not cover the living cost.
The Unfolding of Struggle
There are two unions in PT M, however they are not active.
There are about 100 workers who have been working with KASBI, but are members of other union. Before May day around April in Tengarang music concert organised by union alliance with KASBI. organising discussion group - Class room education. Mapping industry.
KASBI is acting in Tangerang area – they concentrate
It is community organising. It took 6 month to organise 100 people in PT M.
Regular workers informed that dispatched workers got only 6000/day. Outsourcing workers got 20,000/day subsidy for the first month from M. For the second month, their wage is up to the work result. No subsidy but target system
79,000 – 300,000 rs/month
KASBI was suggesting representative of 146 to prepare negotiation
Permanent worker (Kasbi contacting organisers) in PT M wanted the outsourcing workers to be permanent. But the two union did not take official request to company.
146 workers took spontaneous action against the dispatching company, PT D.
46 workers are sacked.
Some of them got jobs in other companies. But most of them are still living in a same area and keep in touch with KASBI. KASBI try to collect some donation to support the workers.
They try to make data base about similar cases and try to make report and publicise it.
KASBI wants to other Indonesia to learn this case.
4. SBMM food and beverage TU in Bekasi
Irregular workers
SBMM organizes outsourcing workers in 7 factories.
In PT Mayora Indah, there are 3 TUs with 7-800 workers. SBBM have 400 members, 15 of whom are outsourced workers.
Outsourced workers recruited from 4-5 agents for a total of 300 outsourced workers. 4-500 regular workers.
The unfolding of struggle
While ago, one outsourcing worker was sacked and he contacted SBBM for assistance. SBBM ran a campaign in the district demanding that labour supplier pay compensation. At the end, they won. That labour agent no longer got orders from the factory after that. Afterwards they used this to gather more members in the TU, including the 15 outsource workers.
Same thing happened in other factories like Hitachi. But challenge is the region limit. Outsourced workers can be members of any TU in their industry on the district level, but if they move to different district they are no longer covered. Since SBBM is only covering one district its member would lose its status by shifting to another district.
UPDATE: Currently total workers are 500, with only one labour supplier. Number of outsourced workers is 50 in security, cleaning etc and some in the line. After the contract is finished they will no longer be employed in production. Now there are only 10 outsource members of SBBM, so went down by 5.
This is a long process that tries to negotiate with labour supplier and correct their labour law violation for the betterment of workers in the end. Other important thing is the involvement of outsourced workers in negotiation with labour agents. KASBI involves all workers regardless of status when negotiating this case, so overcome the split between the two groups of workers. Beside involving outsourced workers, also campaign to reject labour suppliers. In this case, they want to cut out the space of labour agents before it becomes bigger. Goal is no outsource at all in the district.
Q: Why are there 2 unions in the factory. A: accd to Indonesia law any 10 workers can form a union. In one factory there may be 3 or even 4 unions in one factory.
CF: Victoria workers work as contracted workers after loosing their jobs in Victoria
Victoria: closedown in Dec 31 2003.
- TU took over the company after the court ruled liquidation and asset worth 100,000US$
- 875 lost job
- FKSP-KBN: communication forum of unions in epz, back up the campaign
- Part of the asset sold to STM-Korea, garment factory in the same zone for $60,000 and recruitment 30-40% of the original workforce as the condition of purchasing
- Average age is 35 years
- The rest of the workers spread to other company in the EPZ as contract workers (30%); the rest in the informal sector or went home to the villages
- All recruited workers in STM-Korea worked as trainees for 3 months
- 2nd month offered contract for 1 year
- no union for 2 years; Korea anti union, committee is allowed only as grievance mechanism
- workers agreed to this, no choice, mainly old workers: have to be pragmatic
- FKSP: plan to be federation to strengthen organizing contract workers
- Pressure through buyers of Victoria: Eddie Bauer. Buyers at STM: federated, express, GAP
- No dispensation or compensation for union. And so far no agreement about work status.
Kemfarm is food processing company
Export, mainly for japan
Start with study circle of 15 people in 1999
50% out of 200 on contract
One worker was suspended. There was solidarity or sympathy strike: call for eliminate of contract system.
Still use daily workers, and situation is stagnant.
B. Korea
1. Hyundai Motors In-company subcontractor Union
General condition
The case is Hyundai motors in-company subcontract (dispatching agents) union
In Hyundai, there are dispatching workers who belong to more than 20 labour agents and work together with permanent workers. Their wage
Some dispatching companies also supply workers to other companies.
There is multiple layer of dispatching. There are different forms of discrimination against irregular workers. Different uniform. Different canteen. Different meal. Indeed, often less than half of the salary.
They are asking for same treatment.
There are dispatching companies that is established by Hyundai. And other are independent.
hyunday illustration (pic)
The unfolding of struggle
There are many ways of organising of course. In this case organisers got the job in there and organised while working together with workers. They try to understand the way of living and on the basis of that they make plan of organising. They target companies strategically in organisation through thorough discussion and investigations and divide taskforce with some inside organising and some outside supporting.
Organisers got the job in 4-5 labour agents. And they make friendly relations and, on the basis of that, organisers formed small circles that were doing reading, study, sports and mountain climbing.
Meanwhile, outside team ran media campaign. Lawyers and legal experts dig the case of illegal irregular work and publicise the issues. In fact, the dispatching workers cannot be used in manufacturing production line. Dispatching is only for particular occupation. In fact it is illegal. The labour movement has been asking for regulating this. Yet, instead of regulating that, the govt wants to legalise and formalise the illegal dispatching (This November 2005 they try to amend the law). And also intellectuals join the campaign.
Then inside organisers in the circles talked about working conditions, unions and labour movement and also labour issues. Firstly, they organised labour-management council – made small demands like put soap in shower room and helped the dispatched workers to make their own demands.
A worker requested annual leave, manager refuse it and beat him up. He has been hospitalised. The supervisor again followed the worker to the hospital and attacked him in the hospital. In response to that, workers in the dispatching company organise a spontaneous strike. At the end, they got compensation and apology from the company. Then they got more support from the workers regarding the need to have union
They made principle that they need to negotiate with the mother company rather than outsourcing company to regularise the dispatched workers.
They established union for in-company subcontract workers union. There are 800 dispatched workers in Asan, where one of the Hyundai’s assembly factory is located. 400 dispatched workers joined union. Since workers from different dispatching companies are working in the same production line, if organising a line, one effectively organises many from different dispatching companies.
The union asked both the Hyundai and dispatching companies to negotiate with the union. But Hyundai said that it has no legal obligation and the outsourcing companies arguing Hyundai asked them not to go for negotiation. They went into strike and company used back-up workers. The company filed case for compensation for damage. Meanwhile, 6 organisers have been sacked.
After 1year struggle, they could not have CBA with Hyundai. However, they made CBA with dispatching companies.
There is on-going struggle for reinstatement for the sacked workers. They set up tents in front of Hyundai. Demands are 1) reinstatement 2) respect the CBA 3) remove the discrimination and 4) guarantee job security.
Any employment security in CBA?
Although the contract is still a short term ones ranging from 6 month to 1 year, CBA say that as long as workers work normally and the company need the work, company cannot fire the workers without particular reason. If the CBA ignored, workers stop the line, or occupy the dispatching company’s office.
Irregular workers struggle become a major issue in Korea, it is a result of struggles of many irregular workers and other organisation. Very often they have been neglected and even stopped by regular workers or regular workers union. Even there is no union in the mother company helping the irregular workers, there are cases that dispatched workers are organised in a firm without regular workers.
Q: what is dispatch labor law? A: It’s supposed to protect workers but doesn’t really. The way hyundai uses so many dispatch companies is illegal, but very common. Gov’t cannot regulate it, so just want to legalize and protect it. Which leads to promoting more and more the dispatch company.
During the strike at hyundai, were there other workers filling their jobs at the time? The company hired short term contract workers, and also more from other dispatch company. Permanent workers continue to work; union leaders were dismissed. In the past sacking led to big protest, so have since began to fire key leaders.
Key of the case is assistance from lawyers, media and other civil society who push the case to the public.
C. THAILAND
1. CKL Electronics Co. Ltd, Thailand
General condition
In CKL, there are 3 major production lines, each line have regular and subcontract workers from 3 different agencies.
Pay: agency paid 200 baht per worker, and workers get 170 baht per day. Regular workers only get 150 baht per day, but earn higher monthly salary through bonus, and allowances for food, transport, in addition to more job security.
The unfolding of struggle
Two types of union are legally recognised in Thailand: enterprise and industrial union. One can choose only one of the given forms.
If CKL register as in house union, then only regular workers can join TU. CKL established TU 10 years ago. In 2001 company began to use subcontract workers (meaning workers dispatched by labour agencies). In 2002, the TU changed its status into industrial union, so began to consider recruiting flexible labour as members.
Union started educating regular workers about what flexible works are at the annual TU meeting. Union focused on who will benefit from irregular labour - the employers.
Method to approach subcontract labour: each line has TU committee, their duty to collect data and info about the names of labour agency, who is the owner and contact number and address of dispatched workers. Then union could maintain communication with outsourced workers, so began the organising. While this was going on, the TU submitted a CBA demands, one demand was to change outsourced workers to regular ones. The demands was distributed to everyone, and posted on the TU notice board etc. This led to next step of TU organising. Union again demanded that if work one year as dispatched workers, they automatically become regular workers, from 2002.
One way to maintain contact was to set up a mutual-aid fund, so irregular workers return to union even if they left to another factory. Union used transparent accounting to gain trust, and used the funds to provide loans and covering cost for education on living wage, minimum wage etc.
Although the company told the workers not to be involved with TU, mafia threaten TU, the struggle was successful. Result was that 80% of outsourced workers were organised. But union still had difficulty to get them to join in public activities or publicise the fact they’re unionised. But the TU kept asking them for cooperation. Example, if there was a CBA negotiation going on, the TU asked the outsource workers to not do OT. Last year 300 workers shifted to regular status. Currently there are 670 workers and 100 of them are outsourced. Those 100 haven’t worked for over 1 year yet.
Problem is outsourced workers cannot bargain with the employer because they don’t have over 20% of the workforce which is required by Thai law. Outsource workers join in union education activity; they cooperate with the TU. .
2. Organising in Industrial Zone in Thailand
I’m going to talk about overall view of the industrial area in Thailand
In industrialisation in Thailand, Bangkok developed first and area around Bk later.
Then spread to other area. Thailand has set up different industrial zone
In the north, theres is the Lumpoon industrial area which is also EPZ. In the east, there are Rayong and Saunbury and Prayin. So electronic are in the north, east and around BK.
One of the main reason investors are interested in north and south is basic wage is lower. In the eastern part 145 b/day, in the north it is 139 baht
In this industrialisation, there is restriction on unionisation and tax exemption
General working condition
Types of employee
- regular workers or permanent workers
- subcontract workers (dispatched by in-company subcontracted companies (defacto labour agent) or outside labour supplying agency)
- migrant workers from nearby countries
- fixed term contact workers
Under the Thai labour law companies can employ all types. Company freely hire and fire without restriction. So it has impact on organising since in one company there are different types of workers. And workers feel insecure of employment. And it is a great barrier to organise.
The labour agency deducts commission from what the Samsung.
Are there any workers employed directly by Samsung?
Yes there are
Is there any regulation on regularisaion of the contractual workers?
After 4 month, need to regularized. In the law.
About how many workers are regular and irregular.
National average approximately would
20% permanent
50% subcontracted
5% migrant
20% contracted workers
Permanent labour
The owners of the subcontract firms can be anyone. There is no legal requirement
According to our investigation, a bout a half of subcontract owners are from local government official, labour ministry officials. Military and police officers
3. Samsung case (from electro mechanics union)
I will talk about problems in labour organizing in
Electro mechanics co. let.
As you know
3000 workers out of 3000, 800 in-company subcontracted workers (dispatched)
Making electronic part.
Samsung divided into several sections (plan 1 – TV part, 2 – pcb for mobile phone, 3 – digital camera part).
And section 1 is separated into an independent company. Workers will be transferred.
Certain part of work process is allocated separately by establishing other ‘company’ which is owned by other Korean investors who was previously Samsung managers. And they are producing still Samsung brand (TV parts). But it is not Samsung company.
Currently the workers of plan 1 (the workers employed by the new company) are working in the same place at the moment. But they will move out and producing same product.
In October this year, labour inspectors visited factory to inspect
At the time,
There are three unions
Samsung management union
Samsung workers union
Electro-mechanics union
This year june SMU and SWU registered. They practically collapsed. They cannot have general assembly (within 120 days after registration). The could not make it
EMU got registered later (it is industrial union. Other workers in other electronics union can join the union)
Clarifying the process of CBA in Thailand
To demand a CBA with company in Thailand
1) No union, but group of workers. They need to get 15% of workers signature. The worker representative cannot be fired. (this is the way Samsung used). CBA will cover for all regular workers
2) Union needs 20% of workers sign. All workers are covered by the cba. But other workers cannot refuse the agreed CBA between the union and management even if they are not happy about it.
Noel pointed out the danger that CBA cannot represent the majority of workers.
Answer: But in practice, we need more signatures to represent. 50-60%. In Samsung, they’ve got 1800 workers signature out of 2200.
Q: how the govt decide the minimum wage in Thailand
The minimum wage is established under the labour protection act. And the level is set up by tripartite system, which has representatives fron Gcot, mana, labour and from 76 provinces.
Every year should be renewed
For this year 181 bk. May be next year will increase according to the govt decision.
Q: what are the components of the minimum wage?
Don’t know exactly…living cost and inflation, the region. The govt is the strongest in tripartite
233 baht is daily minimum wage union demands
Information: Samsung electro mechanic Thailand
Subsidiary of Samsung electronics co. ltd.in Korea
Previously have 3000 workers
Now division of company
workers in Samsung 1,600 (500 dispatched)
workers in MIR 1,100 (300 dispatched)
workers in Any-on 400 (50 dispatched)
Producing
PCB-samsung
FBT (MIR)
Any-on (FBT)
About 80% of product for export
Company was est in 1993 appr. 424milion bath
Now company’s assets amounts to 4,000 milion Baht.
History of Unionisation in Samsung
June 2005 mangement union
June 2005 workers union
They are paper unions which could not make general assembly
3rd union was formed in aug 2005.
Reason was company’s announce ment that it will form a new company
Company gave them to paper to sign to accept the transfer without compensation. Workers thought this practice is wrong.
Immediately they submit CBA (before they gather signiture ofworkers and prepare CBA)
Duration of CBA is 3years from 18may 2005
Profile of workers
Majority are female (operators)
And male workers are technicians, maintenance, warehouse and etc.
Education: grade 9-12. high school
Profile of union membership
Samsung 50
MIR 50
Any-on 300
Problems: once the two new companies transfer/relocate (not more than 20km away from the original compound)
Workers welfare committees in 3 companies
OSH committee
Wages
185 baht a day for new workers
2 shift 7:30 – 16:30 and 19:00 – 4:00
no forced overtime
2 day rest (Sat and Sun)
there are production quota set (depends on the plan and order)
wage for subcontract workers are lower.
Samsung pays regular workers 185 baht but subcontract companies pay 165 baht/day
In some, subcontract company workers are wearing Samsung uniform but ID card is different (not Samsung ID)
Chemical used in Samsung
Tead, TCE and alcohol mixture
Hanner and expoxy
D. PHILIPPINES
1. Eco-Asia, steel fabrication
General Condition
Output: 20% local consumption; 80% export (US EU, Asia)
Total work force (including everyone) 250; 27 regular unionized workers under the TUCP-a yellow union); plus 200 contract workers hired directly by company on contract), length of service in co is 7-12 years.. most all are men.
Conditions of work: forced OT; poor and unsafe work condition; no benefit; below minimum wage
Organizing method: is community organizing
Steps:
1. Establish contact in the factory
2. organise house visits
3. small group discussioins (most including their families)
4. seminars and education on genuine trade unionism
5. for the wives of the workers women’s orientation and rights education were given; also a youth organizing group
6. formation of workers committees
7. the community and women were given tasks and reminders to complement with the workers struggle.
The unfolding of struggle
-organizing started before the cba negotiations begin. In PH only 1 union is allowed per rank and file production
-the contractual workers proposed to the union their regularization be included in the cba, which was refused.
-at the time cba started 100% of contract workers were given or finished education
-the cba was concluded, but not ratified by the workers
-contractual workers were at the forefront, and persuaded the regular workers to join, particularly the dissatisfied workers.
a new union filed for registration
-filed a notice of strike
grounds 1. Regularization of workers/backwages 2. Poor working conditions/unsafe/inhumane and 3. Unsatisfactory CBA conclusion
-Strike in 2001
-harrassments and dispersal situations with community support, last more than one week
-management recognized the new union
CBA negotiations Gains: 1. Regularization 2. Backwages (beyond 6 months to current employed; basis of calculation is the wage for regular worker at the time) 3. Wage increase 4. Health benefits and other allowances and 5. Health and safety standard-MGT forced to implement.
In Tagalog call it sama-samang tanggulan, sama-samang tul…
Iman: what is the unique method used in the PH? Don’t really have, essentially use similar method as with regular workers. PH using community organizing as the basis.
D-O: there is a uniqeness in organizng flexible labor, but not a choice between a and b. the two are overlapping and always changing as capital moves constantly and labor is constantly recomposed. There can be no set method for certain situations.
Iman: what is the challenge of organizing flexible labor? Marlon: essentially it’s building a mass movement which the whole should participate in.
2. Organising in Maxim, Philippines
2500 workers. Female 80%
The sight problem – after 5 years working in semi conductor company doing the repetitive work (inspection), they become short-sight (the parts are shiny materials under the direct light.
Skills are simple – can learn 1-2 weeks
Take two years become regular – start with apprentice
They have to pass the test. Some one fails. The one who failed twice can be kicked out.
After finishing
You said 2500. How many are skilled workers? Why they choose college level workers?
They are not electronics graduate
It is not about the technical knowledge – but because of language and so on.
Isn’t skilled workers paid more?
Before passing apprentice before going to contractual workers
And then regular workers
They are college graduate and have to go through apperenticeship
There are highly skilled workers in the factory who know the manufacturing course –about 40%
Whether educate graduate or electronics graduate, they need to pass the tests.
Produciton managers are Americans.
General manager and vice executive and prduction managers are American.
Some came temporarily to do things I don’t know.
TU can only meet the philippina personal managers
Most of workers are within the community
They are from rural area. They are living in Cavite
Back in 2000, 20% of workers are from the area. 80% are migrant from other provinces and region. They have boarding houses outside. And the senven eleven, macdonals come in. Then Bars and other commercial thigns are set up. 200 p earning and they lost 500 p in the bar a night.
There is sexual harassment, is it prostitution? There are women workers having sexual relations with managerial staff.
Because there are no equal relations, sexual relations are harassment. Because if they refuse, you can get laid-off.
How long the company was there? 1995 etb.
There is tax exemption?
Yes there is they don’t pay real property tax and income tax.
The tax 20% (of house hold tax) from the workers. Not from the company
Is there special rules for no strike and no union
There are local govt and national govt, phil econmic zone authoroity (PEZA)– they have agreed policy on the no union and no strike.
There are PEZA police in the zone acting first. If they are not capable of handling things then they call national police force.
Cavite industrial peace advisory group?
You know other company organising?
I’m also involved in garment organising.
In your experience, is there any difference between organising garment and electronics even in same in zone
First, the quality of workers. In garment, they are immediate in responding. They are high school graduate or not even high school grd. They are more immediate to take action.
Electronics workers are a bit snobbish. Organisers need to be different. The culture is different and like pop music mtv and so on.
Garment workers are humble as the working condition. Electronics working conditions looks fancy. Electronics have slightly higher than garment. They think themselves are better people than garment workers. It’s been there from college. From the college years, they look down garment workers. Long time establishment of the superiority.
p247 minimum wage.
p300-350 in maxim
about 17% higher than garment
*In Indonesia, workers in electronics are not calling themselves not workers. Their life style is higher than garment workers. They are high in mind. To my company, they are acting like customers to union.
Maxim – not yet trade union. Workers association. Two groups – 100 workers.
Working condition
How many shift – 3 shift. 8 hours.
Saturday, Sunday also work. Even in Christmas.
Salary gaps
Apprentice 75% of minimum wage
Contractual p247
Regular p247-300, after one year p280-300
What is system of wage increase?
First of all. Govt increase on minimum increase.
Maxim has yearly increase 10 - 20 peso according to the performance.
In maxim they obey the govt rule.
Any bonus, they have bonus 100% of monthly salary a year.
Another is profit sharing – maxim is in stock market.
They are partially owning the company. All the regular workers are entitled to the profit sharing. Once you become regular workers, they are given the share for free.
If you work longer and good performance – they have more sharing.
Workers are interested in watching over the stock market.
Managers are having a lot of allowance. Housing, transportation are all there. They want to
Orgnaising committee.
One for education committee, and one for recruitment. The committee members are 5. they are volunteers?
No women organiser. – may be it is the problem.
The help is from SCW. We are not collecting fees from members. Since it is not yet establishment.
Women participation? Do you think it is problem?
It is maxim it is a bit.
Do you have a plan to have democratic system – yes once we become union
Expansion of the association is delaying. Still preparation committee. Local govt is concerned. The contact person who started organising has been terminated last year.
Regarding stock sharing – many companies? - only a few big companies. Intel and Anlogue are higher share. In those big companies, there are no union.
Other difference between garment nd electronics
Parties and outings. Christmas gift. Organising workers activities – disco.
They are providing transportation allowance.
Three meals.
Maxim has one factory in Phil and they have one in Thailand
Can you explain about the alliance (SCW) structure?
Alliance is composed of individual workers, unions and workers organisations.
Workers organisation can be in factories and communities. With similar structure with union.
10 peso/member/month alliance fee.
President. General secetary. 5 excutive officers, 7 board members
Council of leaders -
Regular meeting
Since maxim established, there are three attempts to organise. It is now third time.
The first contact person came to us. And ask about how to organise. Then first attmpt was 2001. then he did not come back.
Was there any follow up? We could not pay much attention
In 2002, there were another group of people – they were seeking for legal adviser. They lost the job. They got paid sepration pay.
I’m the third one, starting from 2003.
There was one guy working in Maxim. I met him in the community. Asking things about maxim.
Why that person?
Another organiser had a the guy in the neighbour hood. He had a lot of discontent. He was worried about job security, factory moving to China and so on.
He introduce people to other workers. The guy was quality inspector.
We identified good things and bad things about maxim. What would be the things around which we can organise maxim. Three people brought by him. We talked about what is democracy, what is assciation.
Then in 2003, management got somehow known that may some new contact told them somehow.
Govt held seminars targeting Maxim with workers to discourage workers to join unions. Demonisation of labour – skills like how to spot labour organisers. Always wearing base ball cap and having backpack things like that.
I had to change my outlook.
45000 peso management pay for the seminar. And participants are given free lunches and so on.
The guy was terminated but refusing to accept the payment offers made by the management. The case is in the court
The alliance – why is it important?
Sense of belonginess..
What you thinks to be improved?
We relied too heavily on one person…
Also the condition in the company. Need to be consolidated rather than expanding at the moment. .
Personally I cannot focus wholly on this company…
It heavily affect the mind set of workers…
The focus is the job security. Unless they are sure that company is not closing down, workers are not convince to organise themselves.
When the organising was going up, we just let it go. But when it troubled, we need to go and take care of it. But we are not that many. We have to go the other companies.
Also training for the leaders in the factory. They are relying on external organisers. We need an immediate training when we secure the contact so that they can develop second line leaderships and so on. So that they can teach themselves.
When you educate in electronics, do you have any particular modules and so on?
There is adjustment in the module. We have electronics survey.
We cannot use manual or general guide line for all. There need to be a moment, some particular thing by which we mobilise. Like osh, canteen, and so on. Social investigation need to be done everyday.
Any documentation system?
Regular updating. The organisers in Maxim let us know the situtation regularly.
What is the member composition?
Out of 100. 80 man and 20 women. Seems that women are more afraid of loosing jobs.
Summary of Maxim
I will explain the info about maxim, shan will support
We ve got much infoirmatin’
Maxim is a us company 1995 est. Gneral mange tg roger
2500 workers
1000 contractual worker s80% female. 20 % male
product is semi codcutror. Necessssary to have special inspector- many be the reason why women.
2 month trainee
provisionary 6month and again 6month
then become regylar
175-178 p *70% of minimum wage)
provision – 247
regular 247-300
Govt minimum wage increase
Annual payment increase from management
Union info
Workers oranisation 2005
Committee – 5persons – voluneteers
Members are 100. every comiittee member has 25 ocntact person.
SCW an alliance
Workers organisation (factory, community orgs and individuals)
They have president, vice president, general sec, audotor, press person
7 board members – cpuncil of leaders
workers 20% are local, 80% are migrant. All living in cavite
workers:special benefits
they have profit share – they have stock of maxim
basic education – college level – so they think it is easy to get job
they have bonuses and allowance
they think they are different form workers
we tried to identify the difference of electronics
stock holders – 4 other companies also have same method.s
a lot of recreation programme by management
oranising
there were three opportunities. 2 was accidental and 1 was interntional
orgnaisers were appeoached by in 2001 when mass mobilisation happened in Cavite
there was not much attention given. A groups of workers were sackd.
Workers accused of stealing – workers approached to orgnisers
Management settled the case with individuals
2003 community organising – made of the contact, worried about relocation and so on. Job secutiry issue
they incearsed into 3 people. Given some seminar and son on
problems – 2003 management discivered and local government launch seminars in maxim the management paid for that.
Main person sacked and mood was low. Orgnaising faced difficult/
Need an evaluation on what happening to orgnaisng
They needed to develop more orgnaisers at the beginning, relied on too mych one guy.
Also focus, orgnisers needed to focus on other organising attempts in other factories.
Counter effort to the government seminar. May be assitant from the SCW was limited.
May be training was too general and limited. Lack of specific material, may be more diversification could be ?
Electronics survey was used. Any other?
More orgnisers needed
How to train core people
Community organising
Support from scw need to be increased
Response form JM
Generally reflect the interview.
Moral is important particularly when organising is going down. Need more power and focus.
Advice on organising in Maxim
Problems – they were able to orgnise but it stuck
The strength – community based – found a person capable.
Relied on one person – scaked and slowed down damaged
Community level
Should build up contact in community though friend, church, relatives and so on.
Should id particular issues and problems in particular community. Eg eviction and demolition
To handle the problems with allies
You need environmental issues – environment NGO to overcome the limits
Being creative culturally – usually they are young interested in music concert and..invite them to concert for peace etc
Political question need to be answered. No explanation means acceptance
Factory level
Make contact person in departments other than QC. Promote specific awarness in particular department
Osh – production dept – chemical
Packing – stealing body search
Woman orgnisers for women concentrated production section
Former student activist is good
Woman has particular issues that can be addressed by woman
Inter-factory level
There should be an attempt to establish forum on issues newletters, labour/osh/human right issues
Materials
Specific manual for the electronics
Need to have not only general materials but particular contents.
More sophisticated materials for the workers. More visual and more media. Material can be up to the workers who think they are high.
The counter argument and to be ready with module answering to the profit sharing and traditional propaganda of the govt.
Shan’s addition
How to ogniser and how to continue to organise
Electornics are sensitve – need super orgniser
Specific – employment security and some specificity
Malaysian case – factory brought Islamic teacher to preach not to organise. We need support.
Approach them with their own language.
Small cases
CAMBODIA
I. target: Tiger (women selling beer), Caltex
Beer company with shareholder from Carlsberg
II. background Caltex sell gas
III. working condition
Less holiday, 2 day per month
-Working accident, drinking too much beer, abuse from customers
-Sexual harassment
-low wage, long working hours, no maternity leave
IV. organizing activity
- building relationship through friend
- -informal association
- -go direct to workers working place
- invite workers for meeting a bout their working condition and share experience of union
- form core activist to collect more members
- -establish relations btw activist during the pay day and via mobile phone
- Training about working condition and labour code.
- Have one meeting per month with workers due to busy schedule of workers
- - training on how to improve work conditions
Q: is maternity leave really an issue? Can a pregnant woman work as a beer girl? Re labor law the employer have to pay when the worker is pregnant. In reality the girls quit the job, even if they work there for ten years, they aren’t aware that they have the right to maternity leave.
C. Taiwan’s public servants organising
It is beyond imagination to organise directly flexible workers.
Short-term workers in Government instutitions – research centre, government office, university, museum
Each year they are not applied to any labour standard in Taiwan. Govt refuses to recognise that they are workers. Fixed term government employee. They are not considered as workers.
The government fiscal crisis leads to cutting workforce
Every unit has cut 5% of employment cut – regulation
There are increasing fear that they will lose job, so that they start organising, united and start asking for compliance to the labour standard law.
There are more than 130,000. but labour movement say there should be more, there is no exact figure. There has been preparation for the union. There is no labour movement helping them. They are meeting law-makers and asking them to hold public hearing.
After public hearing last month, the govt pledged to give them clear answer by 1st dec. the union does not have experience of fighting govt.
Preparation commitee.
No organisers from outside.
In the public hearing some of the federation came, but not really cooperation. These workers used to work in government and high position. They did not think that they were workers. Now, there is job threat and they want to be workers.
In the past, although they have to sign contract every year, they could renew. So that was not a really issue. Now there is job threat. Normal recruitment process.
In the past, the condition was better than private secotor. So no one argued that they need labour standard law. Now the situation is detreorating condition and job-threatening, they want to be protected by labour standard law.
D. Malaysia - Three cases
Private colleges
They are joint venture with foreign institutions.
In the orgnaising, mapping three big college, midum size and small scale technical college.
The big ones are JV with foreign. Mid ones are foreing susidari and the third one is
100 % contract workers. Management staff to lecturers are all.
Failure story
They found the top level college were proetected. Have dual contract – double job.
The mid level – have three months renewal contract.
They have fear. In this industry, turn over is very high. Plenty of supply. Mobility is
The third level.
Either belong to particular company – like Hitachi
Workers in light transit railway - Malaysia
Monorail
Star LRT
Putra LRT
They are young graduate – they have been involved in student movement before.
Reformasi generation. Response from the workers was really good.
They organise meeting with regularly – monthly meeting.
Talking about the problems, harassment.
They were all owned by the govt. Mismanagement.
Privatisation. And moving into automation. Now 50% no drivers.
Organising planted one guy and started orgnising in one company
Committee
2000 workers
there are a lot of outsourcing ticketing, cleaning and other will be outsourced.
Starting union “national union of LRT workers and allied union” so that all workers in outsourced industry can join the union. We managed also to contact . Putra LRT bought a bus company, a union of which is affiliated to transportation union. This makes things difficult.
Sort of occupational general union
Third case – very fast
Migrant workers – they are under the ministry of labour
Employers have their passport.
Refuge problems from Aceh and Burma and Mindanao.
All the migrant workers don’t have right to join the union.(except Aceh)
But Refuge is given right to join the union (legal loophole) they have now a small human right committee.
China – general condition
Government is encouraging flexi forms of employment to alleviate unemployment caused by privatisation of SOEs and large influx of rural labour. Despite the absence of central government policy or laws, there are local government policies for allowing flexi forms of employment.
Tus in China are not mobilising agents for opposition to anti-labour policies/laws or practices.
Civil society including academics, media, NGOs, and individual workers are using law, not mobilisation struggles, as the only weapon to defend workers’ rights.
YiYou workers’ center is located in the community. The position is to build up awareness amongst all workers and exhaust the existing room in the laws for defence of their rights. Two strategies. Workplace organising into workers’ committees to deal with management regarding the flexibilisation of the rights of the migrant workers collectively at the factory level. Community level education to use the legal procedures to protect their rights. These are done through researches, outreach visits to the factory areas, developing volunteer network.
Part 2. National Labour Movement to cope with flexibilisation of labour.
(extract from 3rd day discussion of ATNC Network Workshop: Organising Flexible Labour)
Focus: Past days organising methods, today focus on the impact on national labour movement, does it mean adding new elements to our labour movement or we need new strategies? Many countries in Asia – there are general and particular situations, developed and developing countries, how to build solidarity across different labour movement/national contexts.
A. Indonesia
Ubon FSPMI (Metal union federation)
Cases regarding contractual labor:
In 1990 before labor went from training to regular worker. . In 1995 trend of contract labor; in 2000 trend of agency and subcontractor.
System:
1. enforce the law and force company to obey the law. Pressure to revise the law
2. training of the labor law to revise law by organizing mass movement in local and national level. Target on local level is the local gov’t and local parliament to make a rule. It is unclear in the law so want to revise it. Currently are multi-interpretation. So it’s important role of gov’t and parliament to revise the law. Since 2001 have data on the outsourcing system.. but now strategy changed to using apprenticeship system, because the law restricts subcontracting. Restricted to cleaning service; oil, transportation, security and catering. Outside these sectors its prohibited. So company change strategy to apprenticeship. Currently its arranged to learn to work, don’t get paid, just get allowance.
Sastro KASBI
Refer to Kasbi paper, give the conclusion of it:
Focus on the grassroots movement, focus on socio-economic impact on local and national level due to neoliberalism (link macro micro issues). Our point is lower pay, flexible hours/work status and anything that is beneficial to capitalists. Are monitoring and collecting data on flexible labor by talking to the flexible workers. make a coalition with many organizations. Second step is collect mutual information from the local coalition. One case is in Tangerang beginning in 2003, the result is report to public via workshop, discussion and mass action. In Bandung and East Java, Bogor and Pekasi, and central Java run campaign on flexible labor which was made national issue. Bring in academics to join campaign. We have join with two universities to make a campaign against flexible labor. Neoliberalism in Indonesia is addressed by some universities. Result of our campaign is we have a solution, but still many problems not solved like low pay, OT and other… most important is have done education with workers and community about the negative impact of flexible labor.
Next step to recruit and organize contractual workers who were left behind by TU who fail to protect those workers. are organizing on community level, not plant level. Also establish union on the plant level. We have linked local issues with international issues. Consider it as a national issue but want to make it a international issue, perhaps by one day of action in the region or internationally on flexible labor. Maybe in next time we send email to one another to plan the mass day of action in the region or international.
Fahmi-LIPS
This issue has been discussed by certain groups in Indonesia and want to focus on informal workers. we see that massive dismissal of industrial workers makes them become informal sector workers such as street vendors etc. these informal workers could often be affected by local gov’t; they move from one place to another. During the discussion we conclude that TU should involve them in the labor movement. Still not clear on the strategy.
YAWAS-Faud
The flexibilisation here has become new strategy of capitalism so is a new challenge. Have to disconnect the relation of labor and employer through independent entrepreuership, or community based organizing.
Muftar from Eastern Indonesia
In near future target is to change the labor law, especially law 13 on flexible labor which limits practice of outsourcing. Also law number 21 which ensures workers can organize, but both will be revised soon. Plan to take action such as strike to cancel legislation of the revision of the labor law which would promote more flexible labor market. Ask you all here to assist us in this struggle. We plan by Jan 2006 to have a strike and ask for assistance either directly or indirectly, because if the law is passed it will make it more difficult for us to organize workers or strike.
Q: is there a specific strategy for organizing flexible labor? Is there anything to add to movement building?
A: (Sastro) we are already starting with informal workers such as auto bike taxi driver, street vendor. Look at informal sector: subcontracting to home industry. emphasize forms of flexibilisation make point that are raising awareness of both regular and informal labor. That regular workers need to fight to keep their status as they could become subcontract workers someday, and that there needs to be solidarity among regular and irregular workers. the political awareness of most workers is characterized by self interests, sector by sector. It’s the reality of what’s happening here, so need to learn from other countries on how they are going about organizing flexible labor.
-in bandung steps taken to flexibalize is to put more inspectors in the production line. This inspector is watching all workers so that they can’t take trip to the bathroom. Even the impact is that many workers have been warned
B. PHILIPPINES
See Philippines powerpoint presentation.
A. COPING WITH LABOR FLEXIBILISATION
How the labour movement cope with flexible labour? Organising methods in workplaces and communities?
Workplaces
1. Awareness-building measures, information and education drive
(This is in consideration of having a more or less synthesized study on contractualisation which was the output of NCPWR’s Conference on Contractualisation in April 2005)
Aim:
a. To impart to workers the conditions and effects of labour flexibilisation
b. To draw a thorough-going study of the detailed effects of labour flexibilisation.
Target and Levels:
a. organised/unionised workers
b. contractual workers/non-unionised workers
Forms:
a. regular union meetings
b. shop steward conferences
Method: The union facilitates the conduct of the information campaign. The union may also seek the help of regional and national organisations such as NCPWR, CWELD, CTUHR, EILER, and legal institutions such as Pro-Labor Center.
2. Struggling against labour flexibilisation at union level
a. the union takes the responsibility to protect the welfare of contractual workers in their respective factories.
b. the union works to regularise contractual workers.
c. improvements in CBAs by considering provisions and items minimizing labour flexibilisation, if not totally eliminating it.
d. work for contractual workers to become union members.
3. Alliance formation per sector
a. working group formation
b. full-blown alliance
Not