TNC UPDATE #26 07-2016 A regular update of IUF TNC activity exclusively for IUF affiliates. More detail can be requested from the individual IUF staff person identified with each entry. Contents AGRICULTURE Agriculture: [email protected] Sugar: • Illovo Sugar Sugar: Illovo Sugar • Tongaat Hulett [email protected] Palm Oil: On March 23, the National Union of Plantation • TNC supply chain (inc Wilmar) Agricultural Workers Union (NUPAAW) of • Publication: Global Palm Oil News Zambia concluded negotiations at Zambia Sugar Tea: Plc, Illovo Sugar’s flagship. The agreement • TNC supply chain provides for significant wages increases for both Beverages: permanent and seasonal workers. (More • The Coca-Cola Company information at the IUF Sugar site: • PepsiCo www.iuf.org/sugarworkers/) • IUF Coca-Cola & PepsiCo meetings Negotiations under the South African Sugar Breweries: Bargaining Council continue at a slow pace. • SABMiller/ABInBev/Asahi Matters were referred to the Commission for • Int’l Brewery Workers’ Conference Conciliation, Mediation and Arbitration (CCMA) Catering: that recommended a 6.5% increase but • Sodexo employers, among them Illovo Sugar, offered Dairy Division: 5.5% at the latest round of negotiations on June • Arla 13. Employers are currently adamant on that no • BEL Group financial benefits will be negotiated this year. The • Danone Food and Allied Workers Union (FAWU) is one of three unions in the Council negotiating with six • Int’l Dairy Workers’ Conference employers, among them the sugar giants Illovo Fast Food: Sugar and Tongaat Hulett. • McDonald’s Fisheries: • Palm Oil: TNC supply chain Brussels Seafood Expo [email protected] • Citra Mina/Philfresh • Seachill/Icelandic Group Field work at the Benso Oil Palm Plantation Food Processing: (BOPP) in Ghana was carried out by the IUF Sugar/Palm Oil Coordinator, along with the IUF • Mondelez Africa Regional Secretary and the IUF African • Nestlé (inc Froneri) coordinator for the Women’s Project. BOPP is • Nomad Foods now owned by major palm oil supplier Wilmar. • Unilever Hotel Chains: Focus was on occupational health and safety • IUF’s International Hotel conditions, followed by an exchange of Housekeepers Campaign information with members of the Ghana • Accor Hotels Agricultural Workers Union (GAWU). The project covers the palm oil sector in Cameroon, • Melia Hotels Ghana and Nigeria. Meat: • TNCs & health and safety On the following week (June 19) the IUF • Cargill Sugar/Palm Oil Coordinator worked with the • CP Foods Fako Agricultural Workers Union (FAWU) on • Talleys/AFFCO 1 extensive visits to plantations and mills owned IUF-affiliated SUT-INARSA in Nicaragua signed by the Cameroon Development Corporation a new contract with Coca-Cola bottler FEMSA (CDC). The CDC is a state-owned company, which limits outsourcing. The Union of Workers ranked as the country’s second largest of the National Soft Drink Industry negotiated a employer with plantations in bananas, oil palm 15%-18% increase in economic terms. In the and rubber. past two years the union secured direct contracts for 40 previously outsourced workers. There are To help build a better understanding amongst still 120 workers without permanent contracts in affiliates of the rapidly changing global palm oil the company. Read more here. global supply sector, the IUF is producing regular detailed email updates of developments Unions organized in the Bolivian subsidiary of (currently in English only). To subscribe to the Coca-Cola are working towards building a News from the Global Palm Oil Sector national Coca-Cola workers’ union. Read more contact the IUF global sugar and palm oil here. coordinator [[email protected]]. As a result of the May 12 IUF/TCCC (The Coca- Cola Company) meeting in Atlanta, FEMSA Tea – TNC supply chain management in Philippines agreed to pay unpaid [email protected] overtime and wage losses that resulted from a The Plantation and Agricultural Workers new payroll system called Project Sharp. The IUF Union of Malawi (PAWUM) has made a will monitor this payment process. significant breakthrough to enable it to better IUF affiliates in have successfully represent and negotiate for tea plantation Pakistan negotiated a gender hiring policy to recruit more workers. After years of wrangling and women workers and widen opportunities for resistance from the Tea Association of Malawi, women trainees in Coca-Cola plants in Rahim a recognition agreement was signed at the end Yar Khan and Faisalabad. The employment 15 of May 2016. This was followed up by a women employed as fork lift operators in Coca- proposal from PAWUM in mid-June for a Cola Pakistan in 2016 was a major breakthrough collective bargaining agreement and for equality. Maternity leave was also increased negotiations on the CBA expected in mid-July. from 12 weeks to 16 weeks and onsite PAWUM has been supported by the IUF crèche/day care facilities have been established throughout. in the Coca-Cola plants in Pakistan. They have To-date, wages are unilaterally imposed by sufficient baby cots, air conditioning, heaters of a TAML and are amongst the lowest in the sector high safety standard, potable drinking water and – a 2013 study found them to be lower than refrigerators. wages for tea workers in Assam and Indonesia. The current basic rate is about $1.35 per day. In Togo, following the conflict at the Lomé Brasserie BB in June 2015 about precarious Malawi is the second largest tea producer and workers doing permanent worker’s jobs, a joint exporter in Africa after Kenya, with the most tea study group was set up. Its mandate was to going mainly directly to British TNCs for identify outsourced jobs. Over one hundred posts blending in leading British tea brands. Tea is were identified and today the company together the largest formal sector employer in Malawi with the union is proceeding with the gradual with around 50,000 workers. transformation of these temporary workers to fixed-term contracts with the aim of ending BEVERAGES precarious work in the company. [email protected] Coca-Cola European Partners (CCEP) Coca-Cola announced on May 28, 2016 that the merger of [email protected] Coca-Cola Enterprises, Coca-Cola Iberian Partners and Coca-Cola Germany has been In Uruguay IUF-affiliated STCC was in conflict completed. This merger creates the world’s with the Coca-Cola management over a largest independent Coca-Cola bottler based on restructuring in the distribution and presales net sales and serves over 300 million consumers area. The IUF raised the issue at the May 2016 across Western Europe. meeting with Coca-Cola in Atlanta and FELATRAC (Latin American Coca-Cola SABMiller and Coca-Cola have gained approval Federation) offered its support to STCC. As a form the South African government for a deal result of this support local management agreed to combine their soft-drink operations. The that almost all workers would keep their jobs agreement with the South African Ministry of (62 of 70). STCC has thanks IUF members and Economic Development includes a three-year FELATRAC for their support. freeze on layoffs and requires the companies to 2 invest $54 million to support small South Following long years of struggle for recognition African businesses. Read more here. by the IUF-affiliated Union of Workers of Frito the union was Affiliates representing Coca-Cola workers are Lay Dominicana (Sintralaydo) recognized as having the required number of invited to attend the IUF Global Coca-Cola members stipulated under the Labour Code to be Workers Alliance meeting to take place on considered representative of the workers. Some September 14-15, 2016, in Geneva, 500 workers signed a document supporting the Switzerland. This meeting will allow affiliates to collective bargaining process. A few days later, discuss issues and developments within the Sintralaydo delivered its list of demands to the company, review and evaluate progress in a company and to the labour authorities. number of areas and conflicts, set future priorities for our work and discuss possible joint This historic achievement comes after 8 years of actions to strengthen the Alliance. Affiliates struggle and including the dismissal of 500 interested in participating should contact the workers. Sintralaydo is now preparing to enter IUF Secretariat [[email protected]]. into collective bargaining negotiations with the company. PepsiCo [email protected] IUF PepsiCo and Frito-Lay unions’ network meetings PepsiCo’s refusal to recognize and to remedy Affiliates organized in the PepsiCo and Frito-Lay ongoing human rights operations are invited to the IUF PepsiCo and violations in a West Frito-Lay unions’ network meeting to take Bengal warehouse in place on September 13-14, 2016, in Geneva, India that exclusively Switzerland. This meeting will serve to develop works for PepsiCo makes it complicit in human a strategy amongst IUF affiliates to better map rights abuses – complicity that leaves their our membership in the company, determine a supplier code and their claimed dedication to plan to strengthen union membership and human rights in tatters. advance the IUF's strategy aimed at building a strong trade union rights and union bargaining The IUF has called on PepsiCo to use the base for IUF affiliates within PepsiCo and Frito- power of its relationship with its supplier to Lay. Affiliates interested in participating should secure reinstatement of the workers under contact the IUF Secretariat [[email protected]]. conditions that guarantee their rights. The IUF has launched its ‘STOP PEPSICOmplicity!’ BREWERIES campaign in support of these 28 workers at this [email protected] RKFL warehouse. Please find the campaign leaflet in English SABMiller here. [email protected] After lengthy negotiations the Affiliates in India, Myanmar, Pakistan, India, Brewing Industry called a strike and Indonesia and USA have recently taken action Union of Panama (STICP) entered arbitration in April.