U.S. Senate Rejects Auto Bailout, But White House Offers Aid
By a vote of 52-35, the U.S. Senate rejected a bailout request of the “Big 3” car manufacturers, raising the possibility that the companies would have to go into bankruptcy and threatening the jobs of about four million workers who, directly or indirectly, earn their living from the auto industry. The House of Representatives had previously approved a $14 billion bailout by a vote of 237 to 170.
Senate Republicans refused to back federal aid to Detroit’s carmakers without a guarantee that the United Auto Workers would agree to cut wages and benefits by the end of 2009 to bring their pay in line with the U.S. plants of Japanese carmakers. The UAW refused to do so before its current contract with the auto companies expires in 2011 Labor represents only about ten percent of the cost of producing a car.
To prevent a collapse of General Motors and Chrysler, the Bush administration is proposing to offer the two companies some temporary assistance to enable them to survive until March, when they are scheduled to produce a long-term plan for the industry. The amount of money and the terms of the bailout have yet to be announced, but may contain provisions to weaken the union still further.
A General Strike in Greece Adds to Widespread Public Unrest
Several thousand people marched through the Greek capital, Athens, to protest the government’s economic policies, as part of a general strike. While turnout appeared less than expected, the strike hit transport and the public sector, and the city saw new unrest over the shooting of a teenager.
The two main umbrella unions, the Greek General Confederation of Workers (GSEE) and the Civil Servants Supreme Administrative Council (ADEDY) are demanding increased social spending in light of the global financial crisis, as well as higher wages and pensions. They represent about 2.5 million workers, roughly half of the Greek workforce.
Responding to the unrest, Greek Prime Minister Costars Karamanlis promised on Dec. 10 to restore order, and announced measures to compensate businesses that have suffered from the riots. In a televised address, he pledged immediate aid packages, including cash payments and tax freezes for businesses whose buildings had been torched or property looted.
Wal-Mart Is among the Worst 5 Companies on Human Rights
On the 60th anniversary of the signing of the Universal Declaration of Human Rights, the International Labor Rights Forum released “Working for Scrooge” – the five worst companies, noted for their aggressive opposition to having their workers joining or forming trade unions around the world. The five are:
Wal-Mart: for violating worker rights in the USA, Canada and elsewhere.
Nestlé: for violations in the Philippines, Colombia, Peru, Russia and Pakistan.
Del Monte: for violations in Guatemala and the Philippines.
Dole: for violations in the Philippines, Costa Rica and Colombia
Russell (owned by Fruit of the Loom): for violations in Honduras and Uzbekistan.
Despite efforts by human rights organizations and protective laws on the books, workers continue to see their rights trampled on a daily basis. Even in a powerful country like the United States with a fairly strong labor movement, millions of workers are still fearful of joining a union and risk being fired.
A 6-Day Sit-In by Workers at a Chicago Plant Ends in Victory
About 200 of the 240 laid-off workers at the Republic Window and Door Company in Chicago began a sit-in at the plant, vowing to remain there until they were assured they would get the severance pay and accrued vacation pay they were entitled to. The sit-in attracted national media attention, with even President-elect Obama supporting the workers’ action.
The protesting workers, members of the independent United Electrical Workers Union (UE), occupied the factory for nearly six days, while three-way negotiations were going on between the company, the Bank of America and the union on a formula to resolve the controversy. Bank of America agreed to a loan to Republic to enable the company to pay its laid-off workers. There was no question of the bank offering Republic a loan large enough to reopen the factory.
The settlement provides the workers with eight weeks of pay under the federal WARN Act, two months of continued health coverage, and pay for all accrued and unused vacation. The settlement money will go directly into a third party fund whose sole purpose is to pay the workers what is owed them.
United Arab Emirates Rules Out Call to Legalize Unions
The United Arab Emirates (UAE) has rejected international calls to allow trade unions to represent migrant workers. The rejection followed a United Nation’s review of the country’s record on human rights. A draft report highlights the UAE’s political and cultural red lines as the government seeks to improve its international image in the face of criticism of its treatment of workers and women.
The UAE, which has more than 3.1 million foreign blue-collar workers, rejected about 20 suggestions on how to improve its human rights record, including calls to legalize political parties, introduce unions and the right to collective bargaining and ending discrimination on the basis of gender and sexual orientation. The country’s leaders are wary of dealing with trade unions.
Anwar Gargash, minister of state for foreign affairs, said the UAE had made strides in protecting the rights of workers, promoting women and clamping down on trafficking into the country. He said the UAE would work on a law to protect the rights of the 600,000 domestic workers. The country will also consider allowing UAE women who marry non-nationals to pass on their nationality to their children, as men can. There were discussions about introducing freedom of assembly and signing the U.N. Convention against Torture.
Workers in Largest Hog Plant Vote to Unionize after 15 Years
The nearly 5,000 employees of the Smithfield Foods plant in North Carolina voted 2,041 to 1,879 to be represented by the United Food and Commercial Workers (UFCW). Smithfield is the world’s largest pork slaughterhouse, which the union has tried to organize for the past 15 years. The workers slaughter and butcher as many as 32,000 hogs a day.
The union victory is considered a coup in North Carolina, which has the lowest rate of unionization in the country. It should provide leverage to organize meatpacking plants that have moved to the Southeast in recent decades, hoping to escape the reach of unions. The results of two previous elections at the plant in the 1990s were thrown out after federal officials declared the company had harassed and fired union supporters, even forcing an employee to stamp the words “Vote No!” on dead hogs.
Union membership will give workers a voice in setting hours, determining workloads and a procedure to appeal their bosses’ decisions. Those who choose to join will have union dues deducted from their paychecks. Under North Carolina’s right-to-work laws, no worker is forced to pay union dues, even though all will be represented by the union.
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