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MULTINATIONAL COMPANY
UNION NETWORKS BULLETIN

uBank employment falls 29% in 10 years

uRio Tinto will invest US$ 650 million in new steel center

uPresident of Shell-Brazil speaks with employees about the company's future

uCommercial workers in Campina Grande reach agreement with BomPreço/Wal-Mart

uSeminar to create a network between unions in U.S. companies

uCarrefour plans expansion in Brazil

Social Observatory Institute
Nº 56 - September 8, 2004

ILO: Majority of world workers
live with economic insecurity

Only 8 of every 100 of the world's workers live in countries that have favorable economic conditions for economic security. This information is presented in the new International Labor Organization (ILO) report "Economic Security for a Better World".

The report emphasizes that basic economic security, combined with democracy and government investment in social security, benefit growth, assure social stability and promote happiness.

The ILO report is based on studies with more than 498 thousand workers and 10 thousand companies throughout the world, a data bank on global social security and national statistics.

Economic security is measured from a compilation of seven forms of security related to work: employment opportunity, protection against unfair layoffs, career growth, protective measures for labor health, minimum wage and union representation. More than 90 countries representing more than 85% of the world population were classified in relation to these criteria.

The study indicates that the most important factor for happiness is not how much one earns but the security in having an income and a low degree of salary inequality. That is, it appears more important that a worker have a stable salary, which is predictable and fair.

The study also affirms that having more abilities does not necessarily make a worker happier. This result is attributed to the feeling of frustration that many people feel for having abilities that are not used at work.

Brazil is in the 39th position in the ranking of countries that offer economic security. It is among those nations that have apparently good policies and institutions but less significant results. In terms of salary security it is 41st. It is in 37th position in terms of the job market and protection against layoffs. It is 36th in satisfaction and job stability. In protection against work accidents it is in 34th place. In the system of union representation it is in 40th position. It falls to 70th position when the issue is use of abilities.

Sources: ILO, Valor Newspaper and Financial Times.

AGENDA

September 13 - 14
Unionism and Social Responsibility Workshop. Union Connection and CONTAG. Brasilia.

September 29 - 30
Meeting of Unilever Unions.

October 20
Continental Workshop for struggle at the ABN-Amro Bank. Brazil, Paraguay, Argentina, Uruguay and Chile.

November 6 - 15
IV German-Brazil-Holland Exchange. In Germany

November 20 - 30
V German-Brazil-Holland Exchange. In Holland.

Bank employment falls 29% in 10 years

Combined bank profits in Brazil in the past 10 years grew from R$ 9,6 billion in 1994 to R$ 21,7 billion last year, a jump of 126%. In the same period, the number of bank employees fell 29% from 571.2 thousand to 405.4 thousand, according to Minsitry of Labor statistics.

The data was compiled by the Valor Econômico newspaper which also emphasized that decreased bank employment is related to various factors, including technology.

Internet service, for example accounted for 11.27% of bank operations in 2003 according to data from the national bank association Fenabam. The tool practically did not exist for the general public 10 years ago. Self-service at automatic teller machines accounted for 32.37% of banking services, while traditional tellers handled only 18.9%.

Another explanation for the decrease in personnel is that with inflation under control, the number of financial operations conducted by internal bank personnel fell drastically.

Concentration in the sector, stimulated by the wave of bank mergers in the late 1990's and the beginning of the new decade was another factor that influenced the cuts, according to Ana Carolina Tosetti, of the Interunion Department of Statistics and Social-Economic Studies (Dieese).

The number of bank workers reached its lowest level in 2001, 393.1 thousand employees, after the purchase of Banespa by Santander. In the 1980's, the category had more than 800 thousand employees.

Source: Valor Econômico

Rio Tinto will invest
US$ 650 million in new steel center

The Rio Tinto mining company anounced a US$ 650 million investment plan for Brazil. The amount to be invested over three years is greater than all that invested by the British-Australian company in the 33 years that it has operated in Brazil.

The world's second largest iron ore producer, the mining company will invest in expansion of its mine at Corumbá, Mato Grosso do Sul State and in the development of a mining and steel processing complex in partnership with the Argentine Techint group, to produce 1 million tons of iron and steel. In addition to development of the complex at Corumbá, the company is researching bauxite and diamond mining in Brazil, but should terminate gold exploration.

Source: Valor.


 

 

 

 

 

 

President of Shell-Brazil speaks with employees about the company's future

Shell President Aldo Castelli sent a personal note to the nearly 2 thousand employees in Brazil to speak for the first time about the possibility of the sale of shares of its distributor in the country.

According to a company source Castelli confirmed a worldwide company restructuring, citing sales of service stations in Venezuela and Portugal, but said that the distribution segment in Brazil had presented good results. The company president visited each floor of the company in Rio and tried to calm employees.

In 2003, Shell Brazil registered a loss of R$ 632 million, five times greater than the loss of R$ 125,7 million in 2002. In 2001, the company had a profit of R$ 77 million. The losses in Brazil are attributed to investments in exploration and production. The company has invested nearly US$ 400 million in the country and increased its portfolio from 11 to 17 exploration blocks, during the Sixth Round of Public Bids held by the National Petroleum Agency. (ANP).

Source: Power, citing Valor newspaper.


In Canada, participation of women in unions is increasing. They already account for 48% of unionized workers, up from only 12% in 1977. In Brazil, the rate of female unionization is 36%.

Commercial workers in Campina Grande reach agreement with BomPreço/Wal-Mart

The leaders of the Commercial Workers union of Campina Grande, Pernambuco State and region reached an agreement with the BomPreço-Wal-Mart supermarket chain about the form of employee participation in company earnings.

The agreement determined that the employees will have the right to share in income if they comply with the goals established by the supermarket within the determined period.

The union's objective is that in next year's agreement workers will be able to discuss not only income but principally profits, independently from reaching goals.

Source: Contracs

 
 

Seminar to create a network
between unions in U.S. companies

To debate the behavior of U.S. companies in Bahia is one of the goals of the seminar the Chemical and Petroleum workers union is organizing for September 11. The event plans to bring together unionists who operate in U.S.-based companies located in Bahia. For the organizers, this meeting should be the frist step towards construction of a collective of unions that operate in the different union companies.

"We have noted that the companies of U.S. capital have a quite universal profile. At the same time, the union activities at the companies do not have effective results in promoting improved working conditions. The formation of a network of workers unions of different companies can strengthen our position", maintained Delsuc Gomes, union director and employee of the Millennium company.

The program will be opened by a speech from Carolyn Kasdyn, representative in Brazil of the Solidarity Center, a union entity linked to the U.S. AFL-CIO union center. She will speak about the union structure in the United States, the form of collective bargaining in that country, as well as the global exchanges and campaigns in which the entity participates.

Among the U.S. companies found in Bahia are: Air Products, Dow Chemical, DuPont, Halliburton, Millennium, Monsanto, Química Geral do Nordeste (QGN - Church & Dwight), Ucar, White Martins Xerox.

More information: Sindicato dos Trabalhadores do Ramo Químico/ Petroleiro (BA), phone (71) 243-8788 and e-mail: secretaria@sind.org.br

Carrefour plans expansion in Brazil

The French supermarket chain Carrefour planned to invest nearly 500 million euros (US$ 603.9 million) in Brazil in the next 3 years to regain its participation in the local market, according to an article published in the French Les Echos, newspaper.

The investments began to be realized in 2005, when Carrefour planned to open nearly 12 new stores. At the end of the year, the group will begin a publicity campaign.

Carrefour has lost market share recently to the Brazilian Pão de Açúcar group. According to Carrefour, its sales in Brazil should grow 8 percent this year and should have a "strong resurgence" in 2005-2006, according to the food sales director of Carrefour in São Paulo, Franck Pierre.

Source: UOL Notícias.


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Social Observatory Institute
Executive Board
Kjeld Jakobsen - President
Artur Henrique dos Santos (CUT/Brazil)
Ari do Nascimento (CUT/Brazil)
Maria Ednalva Bezerra de Lima(CUT/Brazil)
Carlos Roberto Horta (Unitrabalho)
Clemente Ganz Lúcio (Dieese)
Maria Inês Barreto (Cedec)
Clóvis Scherer (National Technical Coordinator)
Odilon Faccio (Institutional Coordinator)
Multinational Company Union Networks Bulletin
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