HUMAN RIGHTS Striking Oil, Striking Workers Violations of Labor Rights in Kazakhstan’s Oil Sector WATCH Striking Oil, Striking Workers Violations of Labor Rights in Kazakhstan’s Oil Sector Copyright © 2012 Human Rights Watch All rights reserved. Printed in the United States of America ISBN: 1-56432-937-2 Cover design by Rafael Jimenez Human Rights Watch is dedicated to protecting the human rights of people around the world. We stand with victims and activists to prevent discrimination, to uphold political freedom, to protect people from inhumane conduct in wartime, and to bring offenders to justice. We investigate and expose human rights violations and hold abusers accountable. We challenge governments and those who hold power to end abusive practices and respect international human rights law. We enlist the public and the international community to support the cause of human rights for all. 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For more information, please visit our website: http://www.hrw.org SEPTEMBER 2012 ISBN: 1-56432-937-2 Striking Oil, Striking Workers Violations of Labor Rights in Kazakhstan’s Oil Sector Summary ........................................................................................................................................... 1 Ersai Caspian Contractor LLC .................................................................................................... 5 KarazhanbasMunai JSC ............................................................................................................ 6 OzenMunaiGas ......................................................................................................................... 7 Recommendations ........................................................................................................................... 11 To the Government of Kazakhstan ........................................................................................... 11 On the right to freedom of association .............................................................................. 11 Enforcement of rights-respecting business conduct .......................................................... 12 Cooperation with international mechanisms ..................................................................... 12 Effective inspections and investigations ........................................................................... 12 On the misuse of overbroad criminal laws ........................................................................ 13 To Kazakhstan’s International Partners, Including European Union Member States and the United States Government ...................................................................................................... 13 To the International Labour Organisation ................................................................................ 14 To National Companies and Foreign Companies Investing in Enterprises In Kazakhstan ........... 14 Methodology ................................................................................................................................... 16 I. Background .................................................................................................................................. 19 Oil and Gas: Backbone of Kazakhstan’s Economy ................................................................... 19 Oil Companies in Kazakhstan ................................................................................................. 22 Corporate Responsibility ........................................................................................................ 23 Kazakhstan’s Labor Movement .............................................................................................. 26 II. Freedom of Association under International and Kazakh Law ....................................................... 31 International Labor Standards ................................................................................................ 32 Prohibition on Employers’ Interference with Freedom of Association ................................. 33 Kazakhstan Labor Law ............................................................................................................ 34 Protection and Redress .................................................................................................... 35 Restrictions on Freedom of Association and Collective Bargaining .................................... 35 Freedom of Association .................................................................................................... 36 Collective Bargaining ....................................................................................................... 37 Restrictions on the Right to Strike ..................................................................................... 39 Consequences for Participating in an Illegal Strike ............................................................ 41 III. Violations of Freedom of Association and other Rights in Kazakhstan’s Oil Sector ...................... 44 Interference with Union Activity and Strike at KarazhanbasMunai Oil Company ....................... 44 Failed Efforts at Mediation ................................................................................................ 45 Violent Attack on Union Members ..................................................................................... 47 Interference in the Election of a New Union Leader ........................................................... 48 Escalation of Tensions and the Initiation of the Strike ....................................................... 50 Strike and Its Aftermath .................................................................................................... 51 Violations of the Right to a Fair Hearing in Cases against Oil Workers ................................ 52 May 24 Attempt to Access Union Office ............................................................................. 55 June 5 Protest March ........................................................................................................ 56 Case of Natalia Sokolova .................................................................................................. 59 Threats against and Harassment of Karazhanbas Union Members ..................................... 61 Wage Dispute and Strike at OzenMunaiGas Oil Company ....................................................... 62 Wage Dispute between Workers and OzenMunaiGas Management .................................... 63 Strike and Immediate Repercussions ................................................................................ 65 Riot Police Violently Disperse Peaceful Strikers................................................................. 67 Case of Akzhanat Aminov ................................................................................................. 70 Threats, Harassment, and Violence against Oil Workers and Their Families ....................... 71 Interference in Union Activity and Strike at Ersai Caspian Contractor ....................................... 77 Ersai Caspian Contractor Restricts Karakiya Union Chairman’s Access to Workers ............. 77 Karakiya Union Sues Ersai Caspian Contractor for Unlawful Interference ........................... 79 Ersai Caspian Contractor Restricts Union Activities, Refuses to Negotiations .................... 80 Threats and Harassment of Karakiya Union Members ....................................................... 82 Another Attempt to Enter into Mediation with Ersai Caspian Contractor Management ........ 85 Workers Go on Strike ....................................................................................................... 86 Strike Committee Members Arrested, Karakiya Union Suspended .................................... 88 Other Attempts to Disrupt the Peaceful Strike .................................................................. 90 Mass Dismissals at OzenMunaiGas, Ersai Caspian Contractor, and KarazhanbasMunai and Its Affiliate Companies ............................................................................................................... 92 Ersai Caspian Contractor and OzenMunaiGas Claims regarding Mass Dismissals ............. 96 Violations of Freedom of Assembly of those Supporting the Oil Workers .................................. 97 Detention of Opposition Activists in Zhanaozen ............................................................... 98 Detention and Beating of Bakyt B. ................................................................................... 98 Detention of Activist Galym Ageleuov ............................................................................. 100 Detention of Opposition Party Activists in Aktau ............................................................. 100 IV. Strike Aftermath: Violent Clashes and Politically-Motivated Arrests ......................................... 101 December 16 Zhanaozen Violence ........................................................................................ 101 Crackdown on Outspoken Oil Workers and Political Opposition Activists ............................... 103 V. The Role of Ersai Caspian Contractor, KarazhanbasMunai and OzenMunaiGas