Unions Oppose GM-Chrysler Merger

The possibility of a merger between General Motors Corp. and Chrysler LLC encountered stiff opposition from organized labor around the world, concerned about job losses from a combined auto company. One labor leader even called the potential merger "an absolute catastrophe."

UAW President Ron Gettelfinger said he would oppose any deal that would reduce the workforce. "I personally would not want to see anything that would result in a consolidation that would mean the elimination of additional jobs." He added: "We have not had any official discussions at all with any of the companies." Gettelfinger's thoughts were echoed by union leaders in Canada and Europe.

Labor sentiment against the merger may be a factor if and when GM and Chrysler representatives sit down to discuss the actual terms of an agreement. The two companies will have to meet with UAW officials and discuss changes in the workforce. If they hope to become more competitive, they will have to address the concerns of auto unions, especially regarding the size of the workforce.

Labor Asks World Bank and IMF for Aid in Global Crisis

The International Trade Union Confederation (ITUC) has urged the World Bank and the International Monetary Fund (IMF) to aid the millions of low-income workers whose buying power has declined drastically because of food and fuel price increases. By the World Bank's estimate, the price surges will add another 100 million people to the number of extreme poor in the world, which the Bank recently adjusted upward to 1.4 billion people before the food and financial crisis.

"If vigorous action is not taken, the Millennium Development Goals, such as halving global poverty by 2015 will not be attained. The IMF and the World Bank must increase and expedite aid to the developing countries suffering the consequences of the food, fuel and now the financial crisis," said ITUC general secretary Guy Ryder.

Although global unions have long called for the IMF to promote greater regulation of the global financial system, it was only this past month that IMF managing director Dominique Strauss-Kahn seemed to echo the trade union movement's demands for better regulation, "This crisis is the result of regulatory failure . . . We must ensure it does not happen again," Ryder said.

Strike Brings Italy to a Halt

Tourists and residents were forced to brave the rain on foot Oct. 17as a general strike against government reforms called by grass-roots unions brought public transport in big cities to a halt. Protest marches paralyzed transport public traffic in Rome, Milan and Turin. Unions described the strike as "a success beyond our wildest dreams."

In Rome, unions claimed some 300,000 people took part in the main rally to protest against low salaries and temporary contracts for workers across various sectors, as well as school reforms and health cuts. In Milan, about 50,000 demonstrated. Local police described the traffic situation in the city as "chaotic."

Bus, tram and local train services are guaranteed during special time windows to allow Italians to get back and forth to work. These windows vary from city to city. The rail company Trenitalia said that long- and medium-haul trains were not affected by the strike. A handful of international and domestic flights were cancelled.

Wal-Mart Closes Unionized Shop in Canada

Customers joined union members in condemning Wal-Mart Oct. 16 after the retail giant suddenly shut its Gatineau tire and tube shop - the first in North America with a union contract. A notice on the locked doors of the empty three-bay outlet said that the store was now closed, and referred customers to two other stores in Gatineau. It made no reference to an expensive union contract that the Arkansas-based retailer is blaming for the closing

The first contract raised pay from a minimum of $8.50 an hour to a maximum of $11.54. The new top rate was $15.25. Wal-Mart said the Gatineau closing was effective immediately because it raised operating costs by at least 30 percent and triggered "dramatic" increases in the prices of products. The closing action did not involve the main store.

In 2005, the company closed a store in Jonquière, northwest of Quebec City, just days before an arbitrator was to impose a contract. The Supreme Court has agreed to hear the union's case that Wal-Mart violated Quebec's labor laws, as well as the Charter of Rights when it closed the Jonquière store.

IG Metall Would Accept Longer Term in Engineers Contract

The head of IG Metal, Berthold Huber, said his union was ready to consider a longer wage contract than first planned for the engineering sector this year in an effort to respond to the uncertain economic outlook, He was also prepared to work for a quick deal if the employers preferred. "That's got to be in the interest of the employers, too," he said.

The union has demanded a raise of 8 percent - the highest in 16 years - for the sector's 3.6 million employees, which compares with an initial demand of 6.5 percent last year. Wage talks got underway in various German states earlier this month.

IG Metall leaders say they want to top the sector's accord from last year when it got two staggered raises of 4.1 percent and 1.7 percent respectively in a 19-month agreement. However, manufacturing activity has slowed markedly in recent months in the wake of the global financial crisis.

India's Jet Airways Reinstates 800 Employees

India' biggest private airline, Jet Airways, reinstated more than 800 employees, whose dismissal on Oct. 15 sparked public protests. The airline's chairman, Naresh Goyal, said the move had been his alone and apologized "for all the agony you went through." Reports suggest that the government had persuaded Goyal to take back the employees, but he denies this.

India's once booming aviation sector had been hard hit by soaring fuel prices and a drop in passengers. To lower its costs, it had announced plans to eliminate 1,900 jobs. Shortly after the announcement of the layoffs, hundreds of Jet Airways held a protest in Mumbai, while many politicians demanded an investigation. The pressure on the airline CEO seemed to have had its desired effect.

Federal aviation minister Praful Patel told reporters that he had spoken to Goval about resolving the problem. "I had also told him that in 24 hours, we must find a resolution to this problem; otherwise, we in the ministry would certainly not be very happy with the approach of Jet Airways," he said, adding "Wisdom has (now) prevailed and we are all happy."

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