Building global union power in the auto industry

IndustriALL Global Union’s activities in the auto industry focus on building union power through company networks and using strong influence in certain countries to hold multinational employers to account around the world.

The table below illustrates the developed international structures inside the market-leading automotive companies. IndustriALL Global Union serves as a feature network of company networks in the industry. International solidarity and union power are exerted to achieve company-recognized World Works Councils that provide top-level mechanisms for labour influence over company strategy as mentioned in TEXT: the Action Plan adopted by the Founding Congress in Copenhagen in 2012. In all of Tom Grinter these bodies IndustriALL plays an important role, recognized by the management. IndustriALL has a seat throughout the entire World Works Council meetings including Main photo: Mercedes-Benz Sindelfingen Plant, for the management reporting of corporate strategy. Germany. Daimler AG IndustriALL affiliates organizing internationally in the major auto companies: photo Opposite: Factory workers in Brazil. COMPANY NETWORK GFA EMPLOYMENT Rossana Lana / SMABC BMW Extension of EWC, including delegates from South Africa and China Yes 100,000 Bosch Global meeting every third year recognized by the company Yes 281,000 Daimler Global network recognized by company Yes 275,000

Fiat/ Global network not recognized by company - 215,000 Ford Global network recognized by company Yes 181,000 GM/Opel Global network recognized by company - 212,000 Honda Asian trade union network - 190,300 Hyundai/KIA Global network not recognized by companies - 86,100/over 40,000 Global trade union network - 160,500 PSA Peugeot Global network recognized by company Yes 194,600 Citroën Renault Global network recognized by company Yes 121,800 Toyota Asian trade union network - 333,400 Volkswagen Global network recognized by company Yes 572,800 Volvo AB Global Forum recognized by company - 110,000

Bob King, UAW President and Co-Chair of the IndustriALL auto sector: “In IndustriALL Global Union, there is a vision of economic and social justice without borders. The automotive affiliates are helping to make this vision a reality, working together in new and innovative ways. From Brazilian workers taking swift action to stop retaliation against a Nissan worker in Canton, Mississippi, to auto unions uniting to condemn violent repression at Ssangyong Motor in Korea, the UAW has found this cooperation inspiring and effective.”

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6 auto supplier companies Erich Klemm, Chairman of The Daimler World Employee committee: “As companies extend and enforce their international activities, worker 7 auto representations must build up transnational structures if they want to prevent companies workers becoming a pawn to globalized production orders and cross border decision making. The ultimate goal of the international bodies at Daimler is to create mutual trust, time and again, for worker representation across borders in the spirit of solidarity. The meetings ensure equal information for all and discussion on an equal footing with the top management. “W e succeed in this with the support of international unions – and including the workers representatives from new sites. Plants and workforces need to have a face for one another.” 43 IndustriALL GFAs

The Volkswagen World Works Council Helmut Lense, IndustriALL’s Auto and IndustriALL’s only GFA signed with an illustrates how effective this body can be. Rubber Director, on World Works Councils: American company. And the pattern of All local level Human Resources managers influence is extended down the supply are invited to meetings where the workers’ “Companies have to fund trade union chain, where most violations occur. representatives have a platform to voice local travel and participation costs in the The supply chain has added importance complaints in front of the full international meetings, not because of law but in the auto sector compared to other management, CEO and unions. No local because of the power of the union. industries, as 70 to 80 per cent of the level HR manager wants an open discussion There is no question of this payment average car’s value comes from the supply of labour complaints in his or her plant, so affecting the union’s independence. chain. The auto sector does not differ from plant level unions have greatly increased Depending on the home country of the general trend whereby the majority of opportunities to reach an agreement in the the company, these meetings are labour rights violations occur in the supply lead up to these annual meetings. usually led by the respective Works chain. Ensuring supply chain coverage French auto companies are also well Council, not by the management. The in global framework agreements is a organized internationally by IndustriALL Works Council invites management to priority for the sector. The above pie chart affiliates. The GFAs with Renault and PSA the meeting and insists that the CEO illustrates the high number of IndustriALL Peugeot Citroën are model agreements comes and reports to the union. GFAs with companies in the supply with strong language on decent wages, chain, the majority of which are German trade union rights, health and safety, “The unions say to management that companies for example Bosch, Mann & coverage of the supply chain and the workers need a global structure, that Hummel and ZF. setting up of a World Works Council to management does not pay for their Global industrial relations agreements with follow implementation. flights to international meetings, BMW, Renault, PSA and Volkswagen (VW) neither should the union. ‘You have been instrumental in solving conflicts are doing your work as company at auto suppliers. On a regular basis management, we are doing our work IndustriALL coordinates the international as the union on a global level. Each intervention to a rights violation in side is doing its job and it is paid by manufacturers within the auto supply chain in Turkey. This IndustriALL response is the company’.” greatly strengthened by leverage through the network of GFA with the major auto Numerous standard-setting industrial companies buying the product, whether relations systems and agreements in it be rubber seals for the engine, ball the industry put pressure on other auto bearings, or the wheels. companies to follow suit. The Global Framework Agreement with Ford is

High union density in the sector

Company- Clear and strong identity of Trade union recognized trade autoworkers in this clearly Worker power influence in the union structures structured industry sector & GFAs

International solidarity

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Exporting union power The JAW is also leading a number of activities to build union networks in Asia. The German union IG Metall is IndustriALL The JAW has taken the initiative to launch, Global Union’s largest affiliate. High in August 2013, the Asian Autoworkers’ union density, with an ever-increasing Network. The new network’s common membership has positioned IG Metall to understanding is: dominate the Works Council mechanism in Germany that was originally established to “… that it is greatly important for Asian weaken Germany’s unions. IG Metall uses autoworkers’ unions to come together its sway on the supervisory board of all in solidarity and exchange ideas and major German companies in the sector. opinions. We hope this … will contribute to deepen relations among autoworkers’ “Everywhere in the world people still unions in Asia and eventually lead to work under appalling conditions and MNC union networks that IndustriALL are persecuted and oppressed because envisions.” they organize a union,” said Berthold Huber, president of IndustriALL Global Union. “Our central task is to enforce Effective international minimum social standards in order to solidarity in action 2 make globalization more humane. We IndustriALL auto union affiliates from are negotiating with companies on all continents fight for each other in the In December 2012, local management of the Global Framework Agreements so as knowledge that only by achieving decent Finnish car parts multinational PKC sacked to implement minimum conditions in all working conditions everywhere can a 100 workers involved in a Los Mineros locations of the company and in their sustainable industry be built. organizing drive among other unacceptable supply chains.” tactics to maintain the protection contract at Members struggle against vindictive the Ciudad Acuña plant in Mexico. IG BCE, also large and influential, exerts automotive employers and complicit important pressure within supplier sectors governments in India, Korea, Mexico, IndustriALL is working to support a union such as tyre, glass and leather industries, Russia, and Turkey to name a few. of Volkswagen workers, SITIA, in becoming while CNM-CUT of Brazil is very active in a federation structure that can organize Indian autoworkers similarly constantly international auto activities with a strong especially new auto plants in Mexico. The struggle for their basic trade union rights presence in the sector. coverage of the union will then by extended and will gain from increased international to auto suppliers. Likewise, the Japanese Auto Workers Union solidarity from the global union network. (JAW) use their high union density and The co-chair of the industrial sector, The high-profile example of current on- influence with management of Japanese Gabriela Pignanelli, comes from SMATA, going struggle in India is at the Japanese multinational companies to lobby in support the Argentinian autoworkers’ union that company Maruti Suzuki’s motorbike plant of fellow autoworkers in other countries. is returning to international activities and in Manesar. From 15 to 31 January 2014 becoming more and more active. Concrete examples include supporting the over 2,000 demonstrators marched to New organizing drive of the UAW at Nissan’s Delhi from the neighbouring state Haryana plant in Canton, Mississippi, the STUHM to demand the release of 147 arrested “When we fight, we win” trade union at Honda’s plant in Jalisco, workers and the reinstatement of 2,300 South African affiliate NUMSA regularly and Unifor’s organizing efforts at Toyota in suspended workers. mobilizes to win gains for its members in the Canada. auto sector, and has established sector- wide bargaining. For example in October 2013 NUMSA’s motor component workers went on strike for four weeks to win a new three year collective agreement with wage rises per year of 10, 8 and 8 per cent. NUMSA can regularly be counted on to take action in solidarity with fellow autoworkers in other countries. Action in support of the UAW’s organizing campaign at Nissan has been wide-ranging. In mid-2013 NUMSA hosted a UAW delegation for a week of high profile activities culminating in a noisy picket at the Japanese embassy, demanding government intervention to stop union 1 busting at the Nissan plant in Mississippi.

photo 1: photo 2: IndustriALL auto union affiliates from Chris Crump and Rocky Choi Byeong-seung and Cheon Dialcovo at the UAW-Ford Ui-bong on a 50-metre electrical all continents fight for each other in the Technical Training Center. pylon near the Myeongchon Gate knowledge that only by achieving decent UAW of Hyundai Motor’s factory in Ulsan, 18 October. KMWU working conditions everywhere can a sustainable industry be built.

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The ITUWA has won good collective an influential state senator, Bo Watson, agreements in Russia through mobilizing all heartily joined right-wing lobbying members at Ford, Volkswagen and Benteler groups invading Chattanooga to thrash Automotive. ITUWA organizes workers at the UAW and crush the 22-page neutrality 17 automobile companies and suppliers agreement worked out by the UAW and after establishing itself in 2007 through a Volkswagen, with assistance by IG Metall successful strike at Ford in St Petersburg. of Germany. “Forty-three votes was the difference,” said UAW secretary treasurer, Dennis Williams at a press conference following the vote. “It’s very disturbing when this happens in the of America when a company and union come together to have a fair election process.” 4 Organizing Nissan workers in the US After Nissan workers in Canton, IndustriALL GFAs Mississippi, began an effort to form a now cover over union and approached the UAW for assistance, local management responded 10 million workers 3 harshly by conducting intensive group and For IndustriALL, trade union one-on-one meetings and showed anti- union videos to communicate its strong networks are genuine tools in opposition to the union. These activities VW workers in the US building global union structures, denied right to organize have created an atmosphere of fear and linking trade unions within a intimidation that is clearly in breach of US union, the (UAW) company regardless of whether the workers’ right to make a free choice has played a historical leading role in the a global agreement exists. Trade regarding unionization. sector, and continues to do so. The various union networks are cornerstone IndustriALL registered serious concerns UAW organizing drives at factories of structures in confronting global regarding Renault-Nissan’s response to non-US multinationals continue at differing capital. IndustriALL now has stages, each has important international union organizing efforts in the United States 43 such agreements across a union support. The 12-14 February to CEO Carlos Ghosn in March 2014. number of industrial sectors. unionization vote at VW in Chattanooga General secretary Jyrki Raina’s letter stated: confirmed to the world that basic Global Framework Agreements labour rights are not present in the US. are negotiated at a global level “While I applaud Renault’s signing of the The important vote was undoubtedly between trade unions and Global Framework Agreement (GFA), derailed by outside political interference. multinational companies and set and the Alliance’s public commitment out the standards for workers’ to respect global labour standards, The UAW has filed objections in the US with including those contained in the OECD the National Labour Relations Board (NLRB) rights and decent working Guidelines for Multinational Enterprises over the underlying and deviant behaviour by conditions throughout the politically elected officials in the Volkswagen companies’ operations and its and the United Nations’ Global Compact, unionization vote in Chattanooga. The supply chains. it is important to recognise that Nissan’s conduct at its U.S. assembly plants is UAW lost the representation election, 626- The unique feature of GFAs is 712, but despite Volkswagen’s neutrality inconsistent with these internationally- the ongoing relationship with and granting UAW right of access to recognized labour standards. Renault- labour and the possibility for the plant, an anomaly in such US labour Nissan cannot claim it is respecting the workers themselves in cases, Tennessee politicians inexplicably workers’ human rights by merely the companies, through their interfered in the process, and now might complying with weak U.S. labour laws.” have jeopardised future VW expansion in trade union, to monitor and Chattanooga. ensure rights are respected and conditions are improved. In its support of UAW’s organizing drive at Republican Party elected officials in Nissan IndustriALL works with automotive Tennessee, the state’s Governor, Bill affiliates in Japan, France, Brazil, South Haslam; US Senator, Bob Corker; and Africa, and elsewhere around the world.

photo 3: IndustriALL registered serious GM worker Kenneth Tracy Jr. at work in the metal finish section of the body shop. He is a member of UAW Local concerns regarding Renault-Nissan’s 5960 in Lake Orion, . UAW response to union organizing efforts photo 4: Factory workers in Brazil. Rossana Lana / SMABC in the United States to CEO Carlos Ghosn in March 2014.

17 global worker | feature Networking in the auto industry – historical Setting the common From the IndustriALL Global background plan of action Union Action Plan: Paving the way In his role as IndustriALL Automotive and To fulfill its mission IndustriALL will work for cross-border Rubber Director, Helmut Lense facilitates towards the following goals: organizing in other annual meetings of the IndustriALL industries Automotive Working Group that brings • Develop cross-border recruitment together autoworker unions from at and organizing campaigns by using least 18 countries and all of the auto union networks in MNCs and Global From the beginning the automobile companies. The working group discusses Framework Agreements (GFAs) industry has played a leading role and sets common strategies and concrete among industrial sectors and been actions for the sector aiming to stabilise • Build genuine union power to a trailblazer in terms of worker the relationship between the unions, rebalance the power of MNCs in representation at the world level and companies and countries to support favour of workers by uniting workers through global framework agreements. organizing everywhere and to help in networks for solidarity and joint Unions in the sector pioneered the strengthen existing and new unions in the action, including global level corporate creation of global bodies for worker sector, in line with the IndustriALL Action campaigns networking to challenge the growing Plan. power of multinational corporations. • Push for recognition from employers One of the three predecessor The location of the working group meetings for formalized World Works Councils is strategically chosen; in 2010 it started organizations to IndustriALL Global and networks in Detroit, USA, to discuss the organizing Union, the International Metalworkers’ strategies of the UAW. In 2011 and 2012 • Pursue agreements with MNCs to Federation, held a World Auto the meeting was held in India and Russia establish mechanisms of regular social Conference in Detroit in 1966. At the conference, hosted by the to build connections between local unions dialogue at global and/or regional UAW, the first trade union networks struggling to begin organizing drives level to enable constructive industrial together with union representatives from were created within multinational the companies’ home union. In 2013, relations leading to global level companies. The UAW drove the the meeting was conducted in Japan to negotiations initiative to establish the union networks at , Ford and develop the vitally important relationship • Build up the necessary organizational Chrysler. These were the first company with the Japanese unions. And in 2014 the procedures to enable the conclusion of meeting will be in Thailand to strengthen union networks. Autoworkers were agreements beyond GFAs with MNCs the Asian union movement in the sector the first to adapt their organizational and to show Asian unions that IndustriALL structure to corporate globalization. is focussing on the region and supporting UAW President Walter Reuther was their efforts. Jyrki Raina, general secretary of IndustriALL Global Union: chair of the global union auto sector, Another important area of work for the a position held today by the current sector is to focus on these specific “ We are proud of the advances made in UAW president Bob King. countries: Mexico, India, Russia and the auto sector in building union power China. Specific focus on India began in through networks. Strong networks 2014, seeking to build unity amongst the and high levels of organizing combine Indian auto unions and to develop relations in the sector to empower workers and solidarity between the Indians and throughout the supply chain and make headquarter unions from the various auto GFAs a strong tool. GFAs remain one of companies such as Ford and Daimler. the best ways to secure workers’ rights Next year a new focus will begin on Russia, and the country focus that began and improve conditions in multinational in 2013 on Mexico will continue. These companies in our globalized economy. country specific activities are run with a We will continue to support GFAs to small group of key union leaders who negotiate, monitor compliance and have real influence inside their respective improve conditions. Global capital is companies. Each workshop works to a an immense force, its power must be similar structure, with the two priorities to tempered by the power of people acting increase awareness of the local conditions together.” and then to build the connections between local unions and the headquarter union.

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photos 5 and 6: Next year a new focus will begin Mercedes-Benz Sindelfingen Plant, Germany. Daimler AG on Russia, and the country focus that began in 2013 on Mexico will continue.

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