THE WORLD OF LABOR — September 19, 2009

By Harry Kelber

G20 Summit Must Focus on Jobs, as More Layoffs Blunt Recovery

The G20 Meeting in Pittsburgh must tackle the growing global job crisis if real economic recovery is to take place. According to the world’s trade unions. With the global crisis set to cost 59 million jobs by the end of this year, and predictions that unemployment across the OECD countries could reach 10 percent in 2010 and increase into 2011, the major world trade unions, in their joint Pittsburgh Declaration, are warning that the chances of real economic recovery are under serious threat.

A 50-strong delegation of top union leaders from every continent will hold a series of meetings with heads of government and global institutions at the Pittsburgh Summit too press the case for stronger and more coordinated action. Today’s gloomy predictions in the OECD’s annual report reinforce the unions’ concerns. On top of an estimated15 million jobs lost in the richest countries, the OECD warns that the worst is yet to come for labor markets in several countries.

“The G20 must move on several fronts, quickly and with determination,” said John Evans, general secretary of TUAC, “Jobs must be the first priority, but actions on jobs will be undermined without reforms of the financial system, action for development in particular in the poorest countries, and concrete steps to create green jobs and ensure a just transition to a low-carbon future,” Evans added.

President Obama at AFL-CIO Convention Favors Strong Unions

In a speech punctuated by chants and standing ovations, President Obama said he’s committed to the same goals as the union movement: restoring the economy, getting health care for everyone and passing the Employee Free Choice Act. “These are the reforms I am proposing. These are the reforms that labor has been championing. These are the reforms that the American people need. And these are reforms I intend to enact into law,” Obama said, followed by a prolonged standing ovation.

Obama spent much of his speech talking about health care and thanked union members for their hard work to make health reform possible. “Few have fought for this cause harder and few have championed it longer than you. You know why this isn’t just about the millions of Americans who don’t have health insurance. It’s about the hundreds of millions more who do, Americans who worry that they’ll lose their insurance, if they lose their job,” Obama said.

Obama has already signed into law pro-worker legislation like the Lilly Ledbetter Fair Pay Act, and an expansion of health care to millions of children in need. He asked the convention delegates to come together and fight with him for an America with lasting prosperity.

Paraguay to Provide Health Insurance for Registered Domestics

It took 42 years for health care coverage to be extended to domestic workers beyond the limits of Asuncion, the capital of Paraguay. The measure, adopted by the Social Security Institute, could potentially benefit about 290,000 people—mostly women—working in domestic service. “This is a huge stride for which we will help improve the living conditions of domestics in Paraguay,” said Solana Meza, president of the Association of Domestic Service Workers.

Although health care is obligatory for formal sector workers under Paraguay ’s labor code, only this week do domestic workers have a right to health insurance. The social security health care insurance covers maternity, non-related work illness, work-related illness and accidents, surgery, dental care, medication, hospitalization and a disability subsidy.

Domestics account for roughly 10 percent of the economically active population of 2.9 million in Paraguay, and 215,000 of them are women. (Male domestic workers are mainly gardeners and drivers) But only three percent—6,000—are registered with the social security institute and only 2,500 actually make use of its services.

Vietnamese Taxi Drivers Reject Company Offer and Continue Strike

Taxi drivers of the Vinasun company in Ho Chi Minh City on Sept. 18 continued the strike they began four days ago, dissatisfied with the company’s response to their demands. The company had met with the drivers and offered to increase the share of pay by one percent for 4-seat taxi cabs and 2-3 percent for seven-seat ones, but the drivers said that this was not enough.

The drivers insisted that the increase was not enough for them to meet their daily expenditures. They wanted a 2 percent raise for four-seat taxi drivers and a 6 percent increase for seven-seat ones. About 250 taxi cabs were parked on Friday in three lanes on Dien Bien Phu Street in front of the company headquarters. There were some skirmishes between strikers and non-strikers.

The drivers’ monthly income had dropped from U.S. $278-389, depending on the size of the car, they said. According to the drivers, they had been promised 55 percent of the daily collection, but this had been cut to 51 percent by the company, citing the economic crisis and higher gas prices. But the drivers argued that they, and not the company, were paying for the gas.

Mexican Miners Reach Agreement with ArceloMitall

Members of Section 271 of the National Miners Union, on strike since Aug. 8, have returned to work after the company agreed to an eight percent pay raise In addition to the eight percent pay boost, the agreement contains a benefits package worth a further seven percent, including two more paid holidays and 15,000 pesos (($1,100) in social benefits for each one of the 3,500 union members.

All increases are backdated to May 1, and the company will pay100 percent of the wages and credit vouchers lost during the strike. The value of the vouchers has been increased from 150 to 170 pesos ($13). Other benefits include increases in company contributions toward educational grants and school equipment for workers’ children, life insurance and funeral expenses.

The union said: ”The agreement discarded the company’s initial plan to make the negotiations for a collective agreement conditional on laying off more than 700 union members (about 20 percent of the union membership.) “Nobody will lose their job,” the union said.

Indian Government Urged to Crack down on Child Traffickers

Following the recent release of 94 trafficked bonded child laborers, the Global Union, representing workers in the garment industry, has called on the Indian government to bring the traffickers to justice and to sentence them to long prison terms for perpetuating slavery. The children, aged between 7 and 14 years, were trafficked from Bihar, India’s poorest state, with a promise of a brighter future.

Neil Kearney, general secretary of the Brussels-based International, Textile, Garment and Leather Workers’ Federation, said: “At the time of their release, they had been working 16 hours a day for months on end without receiving any wages. The children had been working, eating and sleeping in cramped, poorly-lit and poorly-ventilated rooms in the scorching heat.”

The children were released in August in a raid carried out by an anti-child labor network in collaboration with the police and the government. The children will now be entitled to a rehabilitation package amounting to $400, as well as enrollment in special schools for former child workers.

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