No 1 / 2007

International Trade Union Movement: Mergers and Contradictions

by Rudolf Traub-Merz and Jürgen Eckl

In early November 2006, 1700 delegates from 156 countries met in Vienna for an event unprecedented in the history of the international trade union movement. They dissolved two globally operating and competing international confederations – the International Confederation of Free Trade Unions- ICFTU and the denominationally oriented World Confederation of Labour-WCL – and founded the International Trade Union Confederation-ITUC, comprising 304 affiliated federations in 156 countries in which 168 million workers are organised across the world. Congress delegates were firmly convinced that the globalisation of political institutions and the globalisation of business and markets must be followed by the globalisation of trade unions.

1. The birth of the United Trade Union International ITUC existence of the International Workingmen´ s Association-IWA founded under the leadership And while business gains strength through of Karl Marx (First International, 1864-1876) competition, workers benefit from organisa- which fell victim to the ideological battle be- tional cohesion. Globalisation of trade union- tween Marx and Bakunin, cross-border alli- ism stands for presence across the globe as ances of workers followed two separate lines well as speaking with a single voice. Delegates of development from the start. International at the Vienna Congress were correspondently federations were initially formed at trade and jubilant. occupational levels and at the eve of World War I, 33 International Trade Secretariats- In the words of ITUC Secretary General Guy ITS had been established. Although craft Ryder, this merger is eminently important: unionism was soon replaced by industrial „There is a real weight of responsibility and of groups unionism in many countries (in history on our shoulders. Together, united, Western and Central Europe around 1900, in strong, the ITUC will play its part in building the USA from the 1930s onwards), industrial social justice, freedom, equality and peace – unions kept their original names (misnomer the ideals that brought us this far and will take ITS) for a long time. It was only in 2002 that us forward together much further.“ the 10 trade secretariats which had been left following consolidation changed their names 2. Ending almost 100 years of division and started to call themselves Global Union Federations-GUFs. The change of name was The history of international trade unionism has the result of new lines of work; nowadays the so far been marked by long periods of division GUFs are concerned with the introduction of and adversity. Disregarding the short-lived minimum social standards in multinational Friedrich Ebert Stiftung International Trade Union Cooperation Briefing Papers No 1 / 2007

corporations in order to gain negotiating status for some „class-oriented“ union fragments as a trade union body for themselves. with the Cuban union federation as their standard-bearer. The ICFTU - with the Chris- A second line of international trade union tian federation increasingly acting as its junior development is related to the building of global partner – emerged the undisputed victor in this federations for national trade union centres. As political battle. Yet given the decline in mem- lobbying structures at the centre with a focus bership and dwindling financial resources the on influencing State and government policies two organisations gradually realised that to rather than engaging in the day-to-day trade fend off the advance of economic liberalism union struggle at the shopfloor and the and globalisation of business on separate ways workplace, these confederations were a great was not really a promising option for either of deal more susceptible to the development of them. adversarial attitudes along ideological lines or global political camps. The amalgamation of the ICFTU and WCL in Vienna – when it transformed into a multi- The first International representing national denominational organisation the International trade union centres was set up in 1913 Federation of Christian Trade Unions-IFCTU (International Federation of Trade Unions- had changed its name to World Confederation IFTU). The IFTU, from a social-democratic of Labour in 1982 – put in place a united and socialist background, was fiercely compe- International of national trade union centres for ting with the Red Trade Union International the first time. Its organisational unity is based founded in 1921, which emerged in the wake on the understanding that it combines all of the Russian October Revolution under ideological and socio-political orientations communist influence and existed up to 1937. under the motto of being global and unitary as From 1920 onwards, a third competing force well as pluralist. developed in the form of the denominationally- oriented International Federation of Christian The declaration of principle in the ITUC Trade Unions-IFCT. constitution states the following: „Unitary and pluralist, the Confederation is open to There was some rapprochement between the affiliation by democratic, independent and three union Internationals in the struggle representative trade union centres, respecting against fascism and the formation of a single their autonomy and the diversity of their united trade union International appeared to be sources of inspiration and their organisational a feasible option after World War II. The forms.“ World Federation of Trade Unions-WFTU was set up in 1945, but at the last minute the For the first time ideological and denomina- Christian federations opted out. The almost tional criteria defining membership are no united International functioned only up to 1949 longer applicable – and unity is founded on when it fell victim to the Cold War which non-partisanship. started around the time. Under the leadership of the Soviet state-run trade unions the WCTU 3. Unity at regional and national levels was transformed into the new Communist as well? International while the federations with social- democratic and socialist orientation left and set The amalgamation of the two world con- up the International Confederation of Free federations makes divisions at regional level Trade Unions-ICFTU. Given the confrontation redundant. As early as 2007 it is planned to between the superpowers USA and USSR, hold founding congresses for the regional competition between the systems overshad- structures of ICFTU and WCL. In the owed international trade union policies in Americas, ITUC-ORIT and CLAT plan to many instances from then on. merge, in Asia ITUC-APRO and BATU and in Africa ITUC-AFRO and DOAWTU follow A genuinely new development took place only suit. Considerable problems still stand in the when the communist power bloc fell apart. The way. Different trade union cultures will be WCTU lost members on a massive scale and at brought together and jurisdictional response- present survives as an insignificant platform Friedrich Ebert Stiftung International Trade Union Cooperation Briefing Papers No 1 / 2007

bilities do not always coincide. This applies CUT), while the three major national centres in especially to Latin America where opposition Pakistan amalgamated to form the Pakistan to the amalgamation continues to prevail Workers´ Federation. In South Korea, com- amongst the CLAT, in particular. Yet at the pany-based trade unions merged at industry same time a large number of important and level to increase their negotiating clout and the hitherto independent organisations from the metal and transport sectors have already made region could be won over in favour of the considerable progress in the development of amalgamation process. industry-wide trade unions.

In addition, tensions arise since regional trade In view of this new trend of overcoming union forces seek to use this major fragmentation and regaining negotiating clout organisational reform to gain ground vis-à-vis through organisational strength, many are head office, while the ITUC in Brussels – as appalled to see the US labour movement the ICFTU previously - is keen to curb again moving in a different direction. The merger be- the level of autonomy in project acquisition tween the American Federation of Labor-AFL and allocation of resources which had been and the Congress of Industrial Organizations- granted in the past, leaving a greater measure CIO worked well for 50 years before seven of control to the main structure. Moreover, major trade unions with 6m members broke regional sub-structures need to agree on ad- away in August 2005 to form the Change to ministrative structures and electoral proce- Win Federation-CTW. The separation not only dures, negotiate where the new organisation is meant a huge loss of revenues for the AFL- to be based and consensually appoint staff to CIO since their membership was cut by ap- positions. However, since the central bodies proximately one third. It also gave rise to fears arrived at a consensus in these matters, there is that the rivalling groups might now apply no reason to assume that it cannot be achieved hostile organizing strategies to attract members at the regional level either. of the respective other organisation and in so doing paralyse one another politically. Yet the Nevertheless, the foundation of the ITUC is CTW has strictly acted within its jurisdictional supposed to be more than merely a merger boundaries so far and peaceful competition between formerly separate groupings. Along between the two might even revitalise the with it comes the expectation that (hitherto) American labour movement which had been separate union organisations might affiliate, languishing in the last two decades (cp. thus adding to the overall level of re- Richard W. Hurd, Dueling Federations: U.S. presentativeness, legitimacy and negotiating Labor in 2006. FES-Fokus Amerika, no. 6, clout. Some national federations which had 2006). maintained their distance towards the two predecessor organisations did, in fact, join The Chinese trade union issue is the big immediately after the Founding Congress; they question mark. With approximately 150m include the French CGT, the Colombian members the All-China Federation of Trade national centre CUT, the Argentinean CTA, Unions-ACFTU on its own has almost as many the Polish OPZZ and GEFONT from Nepal. members as the ITUC overall. It cannot be Other formerly non-aligned communist trade excluded altogether that a new rivalling trade unions might be expected to join which will union power might develop at the international add to the organisational gains. level in the process. As long as the ACFTU is kept under political control and tutelage, it may The end of the ideological dispute at the be susceptible to foreign-policy directives from international level might even bring together the Chinese Government and be prepared to some previously hostile federations at the use its international contacts to other unions to national level. There are ongoing negotiations build a new international alliance. Africa, for amalgamation in various countries – mainly especially the cooperation with the Organ- several small organisations against one isation of African Trade Union Unity–OATUU, dominating big one, for example in South might become the test case in this context. Africa (Fedusa, Nactu and Consawu, yet not Opinions are correspondingly divided. While COSATU) and Brazil (CGT and the Christian the ITUC does not recognise the ACFTU as an CAT with parts of Forca Sindical, yet not independent trade union and therefore keeps its Friedrich Ebert Stiftung International Trade Union Cooperation Briefing Papers No 1 / 2007

distance, others, including several GUFs, are Between 60% and 80% of the revenues of the actively engaged in China in the hope that the ETUC do not come from membership dues but ACFTU might gradually cut its close ties to the are derived from project funding of the EU government and transform itself into a Commission. It was only in cooperation with genuinely autonomous trade union body re- the ETUC that the ICFTU had, and the ITUC presenting Chinese labour. The election or fail- now has direct access to EU funds. The ure to elect a Chinese delegate to the Workers´ European affiliates pay full membership dues Group in the Governing Council of the to both organisations, but dues to the International Labour Organisation–ILO in ICFTU/ITUC are generally higher owing to 2008 might determine the course in this various solidarity supplements. important issue. Organisational autonomy necessitated a 4. ITUC and ETUC in parallel – will division of labour which repeatedly called for Europe keep its special role? difficult compromises - especially on issues affecting European foreign-trade interests - The European Trade Union Confederation- between an ETUC with a more protectionist ETUC, geographically oriented towards the profile and an ICFTU bound to solidarity with European Union, has been autonomous since trade unions from developing countries. Even its foundation in 1973 and originally caused the dispute over the Economic Partnership the ICFTU to dissolve its European regional Agreements (EPAs) between EU and ACP organisation ICFTU-ERO. The dualism that countries initially looked like a repetition of ensued was due to the fact that national trade this, but meanwhile the ITUC and the ETUC unions in the European countries maintained together with the ACP trade unions have their membership in the ICFTU. While the top- attempted to develop a common platform. level organisation has regional structures in Asia (ICFTU-APRO), Africa (ICFTU-AFRO) The Founding Congress of the ITUC initiated and America (ICFTU-ORIT), an independent another reform in this context which might regional organisation has developed in one of bring new momentum for the occasionally the core regions. strained relationship between European and global trade union structures. The Pan- The ETUC explains its special role by European Regional Council-PERC was set up referring to the EU´s unique situation: „We at its Founding Assembly in Rome on 19 negotiate autonomously working conditions for March 2007. The ITUC has finally given itself tens of millions of workers. Ours is practical a European regional organisation stretching work. We are creating a European space for from Lisbon to Vladivostok. Pressure to do so negotiating...“ (John Monks, ETUC Secretary came from the Eastern European trade unions, General, speech at the ITUC Founding above all the FNPR-Russia, which are not Congress). represented in the EU-oriented ETUC and had no Europe-wide regional representation prior European integration has created a special to that. institutional framework which a purely regional organisation, politically integrated Yet the ETUC will not dissolve itself as a into the ICFTU, might have found difficult to result; indeed two European centres exist from cope with. Moreover, the ETUC´s autonomy now on and despite close links between provided WCL members and communist personnel need to coordinate their activities in organisations, including the Italian CGIL, the a difficult process of sharing responsibilities Spanish CC.OO., the Portuguese CGTP and between them. The ETUC continues to finally the French CGT, with the opportunity concentrate on EU-related matters and the to affiliate and in the late 1970s already helped ITUC-PERC addresses aspects of importance to reduce the division of the labour movement to Europe as a whole. The search for a solution in Europe, which was finally overcome in the to the resulting jurisdictional problems has 1990s long before the global level followed produced a salutary formula: for a transitional suit in 2006. yet open-ended period of time the ETUC Secretary General will serve as the Secretary General of the ITUC-PERC in parallel. Friedrich Ebert Stiftung International Trade Union Cooperation Briefing Papers No 1 / 2007

Simultaneously, a „gentlemen’s agreement“ between them. The EMF focus is still very has been reached to the effect that the PERC much linked to the interests of its large na- President, currently the President of FNPR- tional affiliates and major contributors, and the Russia, should come from a non-EU country. same applies to its European sister Whether this is a tenable construction only organisations. time – and practice – will tell. Given voluntary affiliation, hierarchical 5. Mergers amongst the GUFs as well? „super“-structures are relevant to international trade union policy-making to a limited extent In the wake of large-scale mergers amongst only. Consequently, the ability to act always German trade unions resulting in the depends on successful consensus-building. The foundation of Ver.di, IGBCE and IGBAU same applies to the relationship between the amongst others, discussions ensued about international organisations themselves. Sanc- whether the GUFs should merge as well. The tions can usually be imposed only if strict need to merge is particularly pressing for some constitutional requirements are met because Internationals given their limited financial affiliation, unlike in the Soviet model, is not resources. They are simply too small for compulsory. The only option left is the financially sound operations as autonomous withdrawal of funds, but there are limits to organisations offering solidarity. Correspond- that, too, not only in Europe. Even if ingly, the arguments in favour of mergers are coordinating functions are delegated to a strongly inspired by the hope for cost „higher“ level, their success still depends on reductions. This would seem feasible if office the willingness to be coordinated. and personnel infrastructure is shared worldwide. 6. Cooperation ITUC – GUFs: the establishment of the Council of Two of the big ones, the International Global Unions! Metalworkers´ Federation-IMF and the Union Network International-UNI for the service The Founding Congress in Vienna decided in sector may serve as a kind of „docking favour of another organisational reform, notab- station“. It is quite conceivable that one large ly the establishment of the Council of Global global industrial union develops as a single Unions-CGU, in response to the fact that manufacturing GUF, grouping together the federations of branches and federations of IMF, the International of Chemical, Energy national centres often act independently from and Mineworkers-ICEM, the small Textile one another. The Council of Global Unions Workers´ International ITGLWF and possibly comprises the 10 sectoral Internationals of the the Building and Wood Workers´ International GUFs, the ITUC and the TUAC, the Trade -BWI. A working group arrangement may test Union Advisory Council at the OECD. While the viability of such a structure. It is also only the GUFs met for informal consultations conceivable that smaller GUFs will find a previously, the ITUC and the TUAC are now place under the roof of UNI soon. Time is party to the procedure. However, the idea is running short for the Textile Workers´ not only to have more participants involved in International: it intends to give up its auton- the Global Union Council, but to set up a more omy by the end of 2009 and is looking for binding framework for coordinated efforts. It is suitable partners at the moment. planned, for example, to introduce procedural rules for the annual conference and to establish In addition to the merger debate, most GUFs an elected coordinating committee which have a „Europe problem“ of their own. In determines the general course of action. Even essence, they reproduce the contradiction be- more importantly, a budget will be adopted for tween the representation of European interests funding campaigns to be agreed on collectively and global demands for solidarity within their and to which everyone contributes. A new own ranks. The European Metalworkers´ position will be created to run the office so that Federation-EMF, for example, is not affiliated the Council has a small secretariat to support to the International Metalworkers´ Federation- it. IMF and there is almost no cooperation Friedrich Ebert Stiftung International Trade Union Cooperation Briefing Papers No 1 / 2007

It was the extent of administration involved the ITUC describes the current support that provoked criticism from some GUF rep- programmes for trade unions. It is certainly a resentatives anxious to preserve their auton- fact that funds for international trade union omy. In fact, the International Metalworkers´ support do not primarily come from member- Federation-IMF stayed away from consul- ship dues and they are not centrally tations altogether on the grounds that it was a administered by international trade union fe- process focussed on structures without paying derations either. Disregarding the latter, adequate attention to matters of content, in the ministries in charge of development aid pursue words of IMF Secretary General Marcello their own national priorities and make Malentacchi. He refused to ratify the agree- available project funding to be used by ment accordingly and took part in the founding Solidarity Support Organisations-SSOs for meeting of the Council on 9/10 January 2007 national and frequently bilateral cooperation. as observer only. And while the actions taken may make a great deal of sense to each donor individually, the Given the level of opposition, quick consent to total sum of support measures will not more joint commitments was out of the necessarily reflect a trend which is politically question. The budget to fund current sustainable. operations of the joint liaison offices in Washington and Hong Kong still comes from And this is what the ITUC plans to change! voluntary contributions in 2007. Binding The Founding Assembly made a statutory budgetary rules are planned to be in place by commitment to come up with a coherent global next year. strategy of development cooperation.

What really matters is the fact that cooperation, It is a Herculean task. No agreement has yet which formerly took place in an unstructured been reached on how to prioritise trade union manner has now been replaced by a permanent projects to be implemented in what country process of coordination. And this is and area with what type of organisations. And indispensable given the many cases of project this is what the ITUC intends to do. According repetition and duplication of work. For to its own estimate some 200 out of the total example, almost every GUF runs its own HIV number of 304 affiliates are in need of project in Africa without any coordination with international support – which it now plans to sister organisations. The fact that it will be coordinate. A great many things are still difficult to run campaigns such as the agreed lacking for coordinated action: shared bench- World Action Day without close cooperation marks, a monitoring mechanism and a pro- should be obvious to everyone concerned. cedure for measuring results are all non- existent. And the idea of contributions from The annual action programme and its funding, national sources to be paid into a common fund and especially the development of a common for the ITUC to finance the costs of solidarity position towards the Chinese ACFTU will campaigns appears Utopian for the time being. demonstrate whether the Global Council is able to decide consensually or not. At that The ITUC´s request for coordinated action point, the Council will have to strike a new therefore comes in the shape of a „light“ balance, or agree to a sensible form of version. Global task forces are set up together coexistence, between the GUF´s interests with the SSOs to formulate principles which are clearly focussed on transnational governing major thematic areas. The Council enterprises on the one hand and the ITUC´s of Global Unions will then revise them and global governance perspective on the other. eventually adopt them as a common policy guideline. In the wake of the merger, specific 7. What is the attitude of the tasks will be assigned to the ITUC regional International Solidarity Support organisations. Together with the various stake- Organisations? holders, they are expected to prepare country surveys which analyse existing shortcomings Fragmented, without global orientation, of the national trade unions and identify the committed to an agenda of their own is how main areas for support programmes. This would provide a platform enabling the various Friedrich Ebert Stiftung International Trade Union Cooperation Briefing Papers No 1 / 2007

stakeholders to access information and to Organisationally, the international trade union either delimitate or coordinate their projects. movement has never been more united than at Participation is voluntary – in fact, apart from present. However, unity is strength only if moral persuasion no other mechanism appears practised through joint action. It is imperative conceivable which might persuade individual that membership figures go up, the financial donors to change their project approach and status improves and joint campaigns are move from areas with excessive support to implemented. Whether the turning point was those lacking in support. reached at the Founding Congress of the ITUC remains to be seen. But it has added momen- Provided the ITUC organises straightforward tum to the strengthening of international trade consultations and the regional structures come unionism. up with country surveys including plans of action, some confusion might indeed be avoided. Success will not come overnight. At Literature on the History of the Labour least the ITUC has given itself time until 2010 Movement to produce some tangible results– since that is when the Secretary General must deliver his Heinz Bendt, Worldwide Solidarity: the progress report at the next congress. activities of the global unions in the era of globalisation. FES: Global Union Policy, Bonn 8. Summary 2006.

From an organisational point of view, the Tabakow, Robert and Brigitte Pellar, Another global unions have managed to initiate a major Way of Globalization. The international struc- reform at the ITUC Founding Congress. This tures of trade union movement and its history. process has not yet been concluded and will Publisher: Verlag Kammer fuer Arbeiter und progress to its next stage with the mergers of Angestellte fuer Wien-AK-Vienna, Vienna the regional organisations. The relationship 2006. between the ITUC and ETUC continues to be a special feature. PERC with its institutional mix will be an interim solution only since it stands About the Authors: for a European regional structure intent on supporting the ITUC together with the ETUC, Dr. Jürgen Eckl is head of division for extra- while it contributes to the continued parallel European trade unions and international existence of trade unions at EU level and the organisations at the German Trade Union international structure. And finally, some effort Confederation DGB; is required to consolidate cooperation between ITUC and GUFs institutionally and to Dr. Rudolf Traub-Merz is currently Co- amalgamate the ten Global Union Federations- ordinator of the Global Trade Union Pro- GUFs into larger and economically viable gramme at the Friedrich Ebert Stiftung. organisations.

Friedrich-Ebert-Stiftung, Internationale Entwicklungszusammenarbeit, Globale Gewerkschaftspolitik Friedrich-Ebert-Stiftung, Division for International Cooperation, Global Trade Union Program Godesberger Allee 149, 53175 Bonn, Fax: 0228/883-575 Sie finden die Kurzberichte zum Herunterladen auf http://www.fes.de/gewerkschaften To download the briefing papers please use: http://www.fes.de/gewerkschaften

Dr. Rudolf Traub-Merz, Tel: 0228/883-582; e-mail: [email protected] Lisette Klöppel, Tel. 0228/883-517, e-mail: [email protected]