Instituto Observatório Social - Boletim Rede Sindical

Half of world workers below poverty line

The number of workers living below the poverty line is the largest in history, according to the International Labor Organization (ILO). There are 1.4 billion people who earn less than US$2 per day.

There are some 550 million people who earn less than US$1 a day, considered the minimum needed to escape poverty.

This data was presented last week in the "World Employment Report 2004-2005". The total number of employed workers is 2.8 billion, the highest ever.

There are 185.9 million people who are unemployed throughout the world, an unemployment rate of 6.2% in 2003, compared with 6.3% in 2002.

In Latin America and the Caribbean, unemployment was 8%. It was 9% in 2002. Despite the drop, it is still much higher than the 6.9% level of 1993. According to the ILO, the workers situation can improve with economic policies that can create opportunities for decent and productive employment. The report is at the link: http://www.ilo.org/public/english/employment/strat/wer2004.htm
Source: ILO

ICFTU says Trade zones violate workers rights

Developing countries are violating workers rights in free trade zones in order to attract foreign investments. This is the conclusion of the report of the International Confederation of Free Trade Unions (ICFTU) "Behind the label - working conditions and Workers Rights in Export Processing Zones".

Created in the 1970's, the EPZs are established by government to create incentives for production of export goods. The countries offer tax subsidies and relaxed labor regulations, in exchange for creation of jobs and increased exports. In 1975, there were 79 EPZs in 25 countries. In 2002, there were more than 3 thousand in 116 nations. They currently employ nearly 42 million people, mainly women.

The ICFTU warns that the increase in the number of EPZs was marked by "weakened protection for workers who in general do not have a choice to not accept poverty wages, excessive workshifts and abusive conditions".

According to the ICFTU, the value that the EPZs return to their countries is not clear, particularly in the long term: "They are expensive in terms of the infrastructure that they require, they use few local resources and provide little or no tax gain for the countries that host them".

The report highlights flagrant labor abuses, including cases of women in Central America who are required to conduct pregnancy tests to be contracted. In Egypt, workers in the EPZs should sign letters of dismissal before beginning to work so that they can be laid off when the employer wants. In Bangladesh, unions are prohibited from operating in six EPZs. In the United Arab Emirates, where 85% of the labor force is formed by migrants, workers run the risk of losing their employment if they form unions. The report (in Spanish) is available at the site: http://www.icftu.org/www/PDF/EPZreportS.pdf.
Source: CIOSL.

GM to lay off 12 thousand employees in Europe

General Motors reached an agreement with European workers unions about a plan to layoff 20% of its workers on the continent, or nearly 12 thousand people. The cuts are part of the company strategy to reduce by 500 million euros (US$ 665 million) annual European operational costs that have not had profits since 1999.

More than 10 thousand jobs will be eliminated in the German Adam Opel division, the center of GM operations in Europe.

Another 2 thousand cuts will be made in the factories of Switzerland, Great Britain, Belgium and Spain. In Germany, weeks of negotiations with the workers representatives will result in a program of layoff incentives that include training and help in the search for new job placement.

Sources: Agência Estado and AP

International unions entities to merge

The International Confederation of Free Trade Unions (ICFTU) and the World Confederation of Labor announced a merger as a response to the challenges presented by globalization. The action will unite the international union movement for the first time in 50 years. The announcement was made at the 18th ICFTU congress held in Japan last week.

The unionists believe that the unified entity, which should begin to operate in 2006, will be more efficient and better prepared to take leadership on global issues. It will offer more effective representation, reinforce unity and combine resources.
The entities believe that with the merger employers and government with bad intentions will no longer be able to take advantage of the divisions between the unions. The new entity will have 174 million members. Non-affiliated unions will also be invited to participate.
Sources: Financial Times and CIOSL.

The Brazilian Companhia Vale do Rio Doce (CVRD) and the German-based ThyssenKrupp Stahl signed a memorandum of understanding last Friday for the construction of an integral sheet mill in the municipality of Itaguaí (RJ). The cost of the project may reach US$ 3 billion. The viability studies for the construction of a new plant - to be called the Companhia Siderúrgica do Atlântico (CSA) - should be concluded by the middle of next year.

The plant should have annual capacity of 4.4 million tons and production should begin in 2008. According to people close to the deal, the project also includes the construction of a crane for the
Sepetiba Port (located near the plant) and an electrical generator that will be fueled by the heat from the blast furnaces. Construction should begin in 2006 and generate up to 10,000 direct jobs. In the operation phase, the plant will have some 4 thousand workers.
Source: Valor

"On April 12, 2002, workers and unionists were attacked by the Police in Camaçari (BA), when they held a meeting at the Ford factory gates". This is one of the many stories of union persecution reported in the new edition of the Observatório Social Em Revista.

The seventh issue of the magazine focuses on the issue of Union Freedom at a time in which workers are debating the new configuration of Brazilian unions. Through articles and interviews with workers, the magazine shows that this basic human right is being ignored throughout the world. It also compares the union structure in Germany, the United States and Brazil and raises a polemical issue: organization by workplace. To access the PDF version, click on:
http://www.observatoriosocial.org.br/destaque/er7.htm

The number of Brazilians who work beyond the legal workshift of 44 hours per week increased 8% in seven years, according to the National Sample Home Study (Pnad). The number of these workers reached 27,132 million in1996 and grew to 29,320 million in 2003.

The union centers defend the restriction on overtime along with the reduction of the workshift as a way to create more jobs. But the unionists confront difficulties in convincing the rank and file, since the majority of workers want overtime to complement their income. Nevertheless, unionists in the metalworkers union who work at automotive and auto parts plants were able to negotiate an unprecedented clause with the company unions that limits overtime. Beginning on January 1st a worker can work up to 275 overtime hours per year, or 29 hours per month. For each hour over the limit from Monday to Saturday a 75% bonus must be paid and for hours on Sundays and holidays 130%.
Source: Agência Estado.

On December 10, professor Remy Jean of the Department of Ergonomics (APST) at the University of Provence, France gave a lecture at the Social Observatory Institute about the study conducted at the Carrefour stores. In conjunction with SOI and DIEESE-CESIT/UNICAMP,
APST is one of the entities that is conducting studies at the Carrefour stores in France, Brazil and Argentina.
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ESPAÑOLn PORTUGUÊSn LATEST EDITIONn
	MULTINATIONAL COMPANY UNION NETWORKS BULLETIN
uICFTU says Export Processing Zones violate workers rights uGM to lay off 12 thousand workers in Europe uInternational Unions to merge uColgate layoffs do not affect Brazil uVale and Thyssen to build US$ 3 billion plant uUnion Freedom is theme of new SOI magazine uMore than 29 million people work beyond the legal shift uCarrefour study is theme of lecture AGENDA December 13 - 14 Meeting of the Unilever Workers Committee. 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 Responsible Director: Kjeld Jakobsen Editors: Odilon Faccio, José Drummond and Karen Brouwer Staff: Ronaldo Baltar, Lilian Arruda, Pieter Sijbrandij Responsible Journalist: Laura Tuyama (SC 959-JP) Collaboration: Sandra Werle (SC 515-JP) Translation: Jeffrey Hoff and Valéria Herzberg Layout/Proofreading: Communication Coordination of the SOI Photos: Odilon Faccio and Banco de Imagens Instituto Observatório Social Photo Editor: Ana Iervolino Systems Administration: Walter André Pires Address: Instituto Observatório Social Av. Mauro Ramos, 1.624, sala 202, Centro, Florianópolis, SC - Brasil CEP: 88020-302 Tel.: (48) 3028-4400 E-mail: redesindical@observatoriosocial.org.br I no longer want to receive the bulletin (enter your name and e-mail): Indicate someone to receive this bulletin: Write a commentary of the bulletin:	Social Observatory Institute - Nº 70 - December 14, 2004. Half of world workers below poverty line The number of workers living below the poverty line is the largest in history, according to the International Labor Organization (ILO). There are 1.4 billion people who earn less than US$2 per day. There are some 550 million people who earn less than US$1 a day, considered the minimum needed to escape poverty. This data was presented last week in the "World Employment Report 2004-2005". The total number of employed workers is 2.8 billion, the highest ever. There are 185.9 million people who are unemployed throughout the world, an unemployment rate of 6.2% in 2003, compared with 6.3% in 2002. In Latin America and the Caribbean, unemployment was 8%. It was 9% in 2002. Despite the drop, it is still much higher than the 6.9% level of 1993. According to the ILO, the workers situation can improve with economic policies that can create opportunities for decent and productive employment. The report is at the link: http://www.ilo.org/public/english/employment/strat/wer2004.htm Source: ILO ICFTU says Trade zones violate workers rights Developing countries are violating workers rights in free trade zones in order to attract foreign investments. This is the conclusion of the report of the International Confederation of Free Trade Unions (ICFTU) "Behind the label - working conditions and Workers Rights in Export Processing Zones". Created in the 1970's, the EPZs are established by government to create incentives for production of export goods. The countries offer tax subsidies and relaxed labor regulations, in exchange for creation of jobs and increased exports. In 1975, there were 79 EPZs in 25 countries. In 2002, there were more than 3 thousand in 116 nations. They currently employ nearly 42 million people, mainly women. The ICFTU warns that the increase in the number of EPZs was marked by "weakened protection for workers who in general do not have a choice to not accept poverty wages, excessive workshifts and abusive conditions". According to the ICFTU, the value that the EPZs return to their countries is not clear, particularly in the long term: "They are expensive in terms of the infrastructure that they require, they use few local resources and provide little or no tax gain for the countries that host them". The report highlights flagrant labor abuses, including cases of women in Central America who are required to conduct pregnancy tests to be contracted. In Egypt, workers in the EPZs should sign letters of dismissal before beginning to work so that they can be laid off when the employer wants. In Bangladesh, unions are prohibited from operating in six EPZs. In the United Arab Emirates, where 85% of the labor force is formed by migrants, workers run the risk of losing their employment if they form unions. The report (in Spanish) is available at the site: http://www.icftu.org/www/PDF/EPZreportS.pdf. Source: CIOSL. GM to lay off 12 thousand employees in Europe General Motors reached an agreement with European workers unions about a plan to layoff 20% of its workers on the continent, or nearly 12 thousand people. The cuts are part of the company strategy to reduce by 500 million euros (US$ 665 million) annual European operational costs that have not had profits since 1999. More than 10 thousand jobs will be eliminated in the German Adam Opel division, the center of GM operations in Europe. Another 2 thousand cuts will be made in the factories of Switzerland, Great Britain, Belgium and Spain. In Germany, weeks of negotiations with the workers representatives will result in a program of layoff incentives that include training and help in the search for new job placement. Sources: Agência Estado and AP International unions entities to merge The International Confederation of Free Trade Unions (ICFTU) and the World Confederation of Labor announced a merger as a response to the challenges presented by globalization. The action will unite the international union movement for the first time in 50 years. The announcement was made at the 18th ICFTU congress held in Japan last week. The unionists believe that the unified entity, which should begin to operate in 2006, will be more efficient and better prepared to take leadership on global issues. It will offer more effective representation, reinforce unity and combine resources. The entities believe that with the merger employers and government with bad intentions will no longer be able to take advantage of the divisions between the unions. The new entity will have 174 million members. Non-affiliated unions will also be invited to participate. Sources: Financial Times and CIOSL. Layoffs at Colgate will not affect Brazil Colgate-Palmolive of Brazil maintained that it will not be affected in the first phase of a planned restructuring announced last week in the United States. "The units immediately affected by the December announcement in the United States were already advised and they do not include Brazil", the Brazilian affiliate announced in a statement. The U.S. company announced a 12% cut in employees, the equivalent of nearly 4,400 positions and the closing of one third of its 78 factories throughout the world. In Brazil, Colgate-Palmolive has 3,300 employees, a distribution center and three factories. Read the complete statement issued to workers. Source: Folha de São Paulo. Vale and Thyssen to build US$ 3 billion plant The Brazilian Companhia Vale do Rio Doce (CVRD) and the German-based ThyssenKrupp Stahl signed a memorandum of understanding last Friday for the construction of an integral sheet mill in the municipality of Itaguaí (RJ). The cost of the project may reach US$ 3 billion. The viability studies for the construction of a new plant - to be called the Companhia Siderúrgica do Atlântico (CSA) - should be concluded by the middle of next year. The plant should have annual capacity of 4.4 million tons and production should begin in 2008. According to people close to the deal, the project also includes the construction of a crane for the Sepetiba Port (located near the plant) and an electrical generator that will be fueled by the heat from the blast furnaces. Construction should begin in 2006 and generate up to 10,000 direct jobs. In the operation phase, the plant will have some 4 thousand workers. Source: Valor Union liberty is the theme of latest edition of SOI magazine "On April 12, 2002, workers and unionists were attacked by the Police in Camaçari (BA), when they held a meeting at the Ford factory gates". This is one of the many stories of union persecution reported in the new edition of the Observatório Social Em Revista. The seventh issue of the magazine focuses on the issue of Union Freedom at a time in which workers are debating the new configuration of Brazilian unions. Through articles and interviews with workers, the magazine shows that this basic human right is being ignored throughout the world. It also compares the union structure in Germany, the United States and Brazil and raises a polemical issue: organization by workplace. To access the PDF version, click on: http://www.observatoriosocial.org.br/destaque/er7.htm More than 29 million work beyond the legal workshift The number of Brazilians who work beyond the legal workshift of 44 hours per week increased 8% in seven years, according to the National Sample Home Study (Pnad). The number of these workers reached 27,132 million in1996 and grew to 29,320 million in 2003. The union centers defend the restriction on overtime along with the reduction of the workshift as a way to create more jobs. But the unionists confront difficulties in convincing the rank and file, since the majority of workers want overtime to complement their income. Nevertheless, unionists in the metalworkers union who work at automotive and auto parts plants were able to negotiate an unprecedented clause with the company unions that limits overtime. Beginning on January 1st a worker can work up to 275 overtime hours per year, or 29 hours per month. For each hour over the limit from Monday to Saturday a 75% bonus must be paid and for hours on Sundays and holidays 130%. Source: Agência Estado. Carrefour study is theme of lecture On December 10, professor Remy Jean of the Department of Ergonomics (APST) at the University of Provence, France gave a lecture at the Social Observatory Institute about the study conducted at the Carrefour stores. In conjunction with SOI and DIEESE-CESIT/UNICAMP, APST is one of the entities that is conducting studies at the Carrefour stores in France, Brazil and Argentina. .
E-mail: redesindical@observatoriosocial.org.br \| Site: www.observatoriosocial.org.br/boletim/boletim.htm