THE WORLD OF LABOR — August 9, 2008

By Harry Kelber

Israel and Palestinian Unions Reach Historic Agreement

The Israeli national trade union (Histadrut) and the Palestinian General Federation of Trade Unions (PGFTU) have reached a landmark agreement to protect the rights of Palestinian workers employed by Israel employers and to base future relations on negotiations, dialogue and joint initiatives to advance fraternity and coexistence between the two peoples, The current agreement draws on an initial 1995 agreement that had not been possible to fully implement in the intervening years. Both labor organizations are members of the International Trade Union Confederation. (ITUC).

Key features of the agreement include the reimbursement by Histadrut to the PGFTU of the outstanding balance of union and legal representation fees paid since 1993 by Palestinians working for Israeli employers. The reimbursement is based on a year-by-year analysis of the fees paid by Palestinian workers taking into account funds previously transferred to the PGFTU. The PGFTU will have sole discretion on how the funds will be spent in line with its Constitution.

"This agreement is tremendously significant, at a time when the political authorities in Israel and Palestine and the international community are failing just and lasting solutions to the political impasse," said Guy Ryder, ITUC general secretary. "The agreement calls upon the ITUC and its affiliates to continue to support future cooperation, and we are fully committed to do this," Ryder added.

Truckers Strike in Bolivia for Tax Exemptions

Transport workers in Bolivia are waging a battle against their government, demanding that President Evo Morales change tax regulations to exempt them from taxes in the customs laws they consider unjust. They have been blocking roads and highways that have halted exports to Argentina, Chile and Peru. Their leader, Franklin Duran, says that if the government does not act favorably, the roadblocks will continue and expand to shut down all border crossings.

Morales has repeated that he has no intention of changing his mind and will never give in to the strikers. "I want to remind union leaders that they are inciting their workers to block the roads, demanding tax exemptions. This is a mistake. I'm sorry, but I have to tell them that taxes must be paid, and they will pay them all."

The impatience of travelers and their growing anger has convinced the truckers to open the blockade for a few hours daily, permitting free circulation of vehicles and people. The test of strength between the government and the transport unions may continue for some time

Bangladesh Workers Who Dismantle Ships Have High Loss of Lives

At least ten workers were killed in mishaps and explosions last year, dismantling ships and recycling the vessels' parts, to raise the death toll to over 1,000 since 1996. About 30,000 workers, only a few wearing boots and almost none with helmets, work in about 22 ship-breaking yards in Bangladesh to dismantle some 80 giant, out-of-service, ocean-going vessels and tankers on average every year.

The workers use primitive hammers, axes and acetylene flames to extract 1.8 million tons of steel per year. Bangladesh's 800 steel-rolling mills consume all the metal retrieved from scrapped ships to produce construction rods and roofing sheets. Ship-breaking is one of the most dangerous of all recycling jobs in Bangladesh.

AKM Shaffiqullah, director general of Bangladesh's shipping department, said: "As the industry is vital to us, we have taken steps to reduce mishaps by imparting training and creating awareness employers and workers." Employees say they are well aware of the risks, but have no better options to feed their families.

Raising Argentina's Minimum by 27% is Called a "Good First Step"

The head of Argentina's largest union offered cautious praise on Aug. 5 for a 27 percent minimum wage increase, but said it will not be enough to help workers trying to keep pace with high inflation. The Labor Ministry had agreed the previous day to raise the minimum wage to 1,240 pesos (US $408) a month, starting in December in order to boost the purchasing power of low-income Argentines.

"It's a first step, an important step," said Hugo Moyano, secretary general of the General Confederation of Labor (CGT). "When you have negotiations of this type, nobody seems happy. Moyano said his union would meet with government officials to press for additional wage increases.

The new minimums are unlikely to have much impact on the economy, since most workers are said to make more than that amount; nor will the annual rate of inflation, now running at 9.3 percent, be seriously affected, according to independent analysts.

European Governments Take Political Risks in Cutting Pension Costs

Under pressure to reduce their budgetary expenditures, major European countries have been looking for ways to cut their pension costs. Italy has gradually raised retirement age to 59. France requires 40 years of service for a worker to receive a full pension. Germany has curtailed annual government pension increases and raised the retirement age by two years to 69.

But inflation and a squeeze on living standards for older workers is causing a backlash, leading some governments to reconsider - or even suspend - approved pension reforms. The fears of European workers are warranted. For example, 40 percent of Belgians over 75 will live in poverty by 2016, according to the National Pension Office in Brussels.

Another problem is the "graying" of the workforce. In Germany, more than 15 percent of the population is older than 65 - about twice the proportion in France.

Also, state pension costs as a percentage of gross domestic product are edging steadily upwards throughout Europe. In France, they will reach 14.8 percent in 2050. That amount would be three times the portion of the U.S. economy devoted to federal r retirement programs.

Egyptian Cotton Workers End Strike with Significant Gains

Employees of a cotton ginning factory in Minya ended a strike they began in late July after the company management agreed to their demands. The roughly 1,000 workers at the Nile Cotton Ginning Company began their strike on July 28 when they went to collect their salaries and discovered that management had failed to pay what they regard as their financial entitlements.

"We were promised a 15 percent raise instead of the 30 percent raise given to all workers in May, as well as the 7 percent increase we are entitled to," a worker told the Nile Daily News. During the strike, the workers refused to collect their pay because of the reduced size of the wage increase. Their strike also shut down the factory,

Manya workers ended their strike on Aug. 3, after a meeting between company officials and a leader of the Spinning and Weaving Workers Union, with two representatives from the Ministry of Manpower. The company agreed to pay the same percentage increases, based on what all workers had received on June 30.

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