The World of Labor - February 7, 2009



	THE WORLD OF LABOR — February 7, 2009 By Harry Kelber World Economic Recession Could Cut Jobs by 50 Million If the global economic crisis continues to deteriorate, more than 50 million jobs around the world would disappear, according to the International Labor Organization (ILO) in its latest report on employment. In this worst case scenario, some 200 million workers, mostly in developing economies, could be forced into extreme poverty. “The ILO message is realistic, not alarmist. We are now facing a global job crisis. Many governments are aware and acting, but more decisive and coordinated international action is needed to avert a global social recession,” said Juan Somavia, ILO Director General. The global recession is also expected to lead to a dramatic increase in the number of people joining the ranks of the “working poor” and those in vulnerable employment. The International Trade union Confederation (ITUC) issued a statement last week, claiming that the financial crisis has “aggravated existing economic problems, in both the North and the South” and that a shortage of decent jobs in developing countries is being compounded by the high cost of living and the food crisis. Japan’s NEC to Cut 20,000 Jobs, Plus 15,000 at Panasonic Japan’s electronics giant NEC has announced that it will be cutting 20,000 jobs worldwide by March 2010. Half of the cuts will be from the pool of full-time employees and half from temporary workers and contract staff, said NEC’s top official, Kaoru Yano. The full impact of the economic slowdown in the final three months of 2008 has hit NRC, the personal computer and electronic chip maker, hard. The Tokyo-based company currently employs 150,000 people. Panasonic, the world’s largest maker of plasma TVs, will eliminate 15,000 j0bs and close 27 plants worldwide as it seeks to reduce costs. The company is expecting a net loss of 380 billion yen ($ 4,2 billion) for the financial year, ending on March 31. The announced cuts represent about 5 percent of Panasonic’s workforce. The company said that half of the cuts would take place in Japan and the other half would affect its worldwide employees. NEC’s rival, Hitachi, announced last week that it was shedding up to 7,000 jobs and forecast a full-year loss. Despite its heavy losses, Panasonic is in the process of buying its struggling rival, Sanyo Electric for $9 billion. Pope Benedict Says Unions Are Critical to Improving Global Economy The leader of the Catholic Church, Pope Benedict XVI, said that, in the face of a broad economic crisis, a strong union movement will be critical to recovery and rebuilding a fairer, more just society. The Pope spoke of the importance of unions at a meeting of the Federation of Italian Labor Unions, Italy’s largest union. The Pope said: “The great challenge and the great opportunity posed by today’s worrisome economic crisis is to find a new synthesis between the common good and the market, between capital and labor. And in this regard, union organization can make a significant contribution,” The Pope emphasized that the inalienable dignity of the worker has been a cornerstone of the church's teaching in the modern age, and said this teaching has helped the movement toward fair wages, improvement of working conditions and protection of vulnerable categories of employees. Ford Workers in U.K. Threaten to Strike over Planned Pay and Job Cuts Ford, the American-owned, giant carmaker, is facing strike action at its British subsidiary. and after announcing plans to eliminate up to 850 jobs and slash already agreed-upon pay increases. Union leaders denounced Ford’s action as a “betrayal” and said they would ballot for industrial action unless the company abandons its plan to cut workers’ pay to fund redundancies. The dispute over jobs and pay comes at a time when latest figures show that car sales plummeted by nearly 31 percent — the company’s biggest monthly fall since 1974. Meanwhile, mini-cars show a 41 percent rise in sales as cash-strapped drivers turn to smaller, cheaper and more fuel-efficient vehicles. Ford employs 13,000 workers in the U.K. Last year, it posted the biggest-ever full-year global loss of Ł10.2 billion ( $15 billion), but remained adamant that it would not have to ask the U.S. government for an emergency loan. Malaysia to Send 100,000 Indonesians Home, According to News Report Nearly 100,000 Indonesian workers in Malaysia will be laid off and sent home by the end of the year as the economic downturn hits the nation, according to a news report on Feb. 4. Malaysia has already banned the hiring of more foreign workers in factories, stores and restaurants, due to fears the economic crisis will lead to more job losses for local workers. Indonesia’s ambassador to Malaysia, Da’i Bachtiar, told the New Straits Times that most of the layoffs this year will be in the manufacturing center. The ambassador said there were two million Indonesian workers in Malaysia, including 800,000 illegals, and that 300,000 were employed in manufacturing. Malaysia is preparing a second economic stimulus package, after launching a $2 billion plan last November to help companies and workers who have lost their jobs as a result of the global economic crisis. Malaysia is one of Asia’s largest importer of labor. Last year, it hosted an estimated 2.2 million foreign workers. 25,000 Jute Workers Lose Jobs in Bangladesh Bangladesh’s crucial jute sector has shed 25,000 jobs and shut three factories after a massive slump in exports, triggered by the global economic downturn, industry officials said Feb. 5. The Bangladesh Jute Spinners Association said the country’s jute yarn factories had slashed production by 30 percent in the last three months as demand for their products nosedived in European markets. Jute goods exports plunged by 18 percent with a loss of 136.83 million dollars in the six months ending December, according to the government’s Export Promotion Bureau. "The situation is getting worse day by day as the global recession has wreaked havoc on the European companies to whom we supply most of our jute yarn. In the next few weeks, more factories will have to draw their shutters,” said Shahidul Karim, Association general secretary. Jute goods — such as sacking and yarn for floor carpets — are Bangladesh’s third largest export. The sector directly employs 125,000 people, has more than 20 million farmers, who grow it as a cash crop. Check our web site: http://www.laboreducator.org

THE WORLD OF LABOR — February 7, 2009

By Harry Kelber

World Economic Recession Could Cut Jobs by 50 Million

If the global economic crisis continues to deteriorate, more than 50 million jobs around the world would disappear, according to the International Labor Organization (ILO) in its latest report on employment. In this worst case scenario, some 200 million workers, mostly in developing economies, could be forced into extreme poverty.

“The ILO message is realistic, not alarmist. We are now facing a global job crisis. Many governments are aware and acting, but more decisive and coordinated international action is needed to avert a global social recession,” said Juan Somavia, ILO Director General. The global recession is also expected to lead to a dramatic increase in the number of people joining the ranks of the “working poor” and those in vulnerable employment.

The International Trade union Confederation (ITUC) issued a statement last week, claiming that the financial crisis has “aggravated existing economic problems, in both the North and the South” and that a shortage of decent jobs in developing countries is being compounded by the high cost of living and the food crisis.

Japan’s NEC to Cut 20,000 Jobs, Plus 15,000 at Panasonic

Japan’s electronics giant NEC has announced that it will be cutting 20,000 jobs worldwide by March 2010. Half of the cuts will be from the pool of full-time employees and half from temporary workers and contract staff, said NEC’s top official, Kaoru Yano. The full impact of the economic slowdown in the final three months of 2008 has hit NRC, the personal computer and electronic chip maker, hard. The Tokyo-based company currently employs 150,000 people.

Panasonic, the world’s largest maker of plasma TVs, will eliminate 15,000 j0bs and close 27 plants worldwide as it seeks to reduce costs. The company is expecting a net loss of 380 billion yen ($ 4,2 billion) for the financial year, ending on March 31. The announced cuts represent about 5 percent of Panasonic’s workforce. The company said that half of the cuts would take place in Japan and the other half would affect its worldwide employees.

NEC’s rival, Hitachi, announced last week that it was shedding up to 7,000 jobs and forecast a full-year loss. Despite its heavy losses, Panasonic is in the process of buying its struggling rival, Sanyo Electric for $9 billion.

Pope Benedict Says Unions Are Critical to Improving Global Economy

The leader of the Catholic Church, Pope Benedict XVI, said that, in the face of a broad economic crisis, a strong union movement will be critical to recovery and rebuilding a fairer, more just society. The Pope spoke of the importance of unions at a meeting of the Federation of Italian Labor Unions, Italy’s largest union.

The Pope said: “The great challenge and the great opportunity posed by today’s worrisome economic crisis is to find a new synthesis between the common good and the market, between capital and labor. And in this regard, union organization can make a significant contribution,”

The Pope emphasized that the inalienable dignity of the worker has been a cornerstone of the church's teaching in the modern age, and said this teaching has helped the movement toward fair wages, improvement of working conditions and protection of vulnerable categories of employees.

Ford Workers in U.K. Threaten to Strike over Planned Pay and Job Cuts

Ford, the American-owned, giant carmaker, is facing strike action at its British subsidiary. and after announcing plans to eliminate up to 850 jobs and slash already agreed-upon pay increases. Union leaders denounced Ford’s action as a “betrayal” and said they would ballot for industrial action unless the company abandons its plan to cut workers’ pay to fund redundancies.

The dispute over jobs and pay comes at a time when latest figures show that car sales plummeted by nearly 31 percent — the company’s biggest monthly fall since 1974. Meanwhile, mini-cars show a 41 percent rise in sales as cash-strapped drivers turn to smaller, cheaper and more fuel-efficient vehicles.

Ford employs 13,000 workers in the U.K. Last year, it posted the biggest-ever full-year global loss of Ł10.2 billion ( $15 billion), but remained adamant that it would not have to ask the U.S. government for an emergency loan.

Malaysia to Send 100,000 Indonesians Home, According to News Report

Nearly 100,000 Indonesian workers in Malaysia will be laid off and sent home by the end of the year as the economic downturn hits the nation, according to a news report on Feb. 4. Malaysia has already banned the hiring of more foreign workers in factories, stores and restaurants, due to fears the economic crisis will lead to more job losses for local workers.

Indonesia’s ambassador to Malaysia, Da’i Bachtiar, told the New Straits Times that most of the layoffs this year will be in the manufacturing center. The ambassador said there were two million Indonesian workers in Malaysia, including 800,000 illegals, and that 300,000 were employed in manufacturing.

Malaysia is preparing a second economic stimulus package, after launching a $2 billion plan last November to help companies and workers who have lost their jobs as a result of the global economic crisis. Malaysia is one of Asia’s largest importer of labor. Last year, it hosted an estimated 2.2 million foreign workers.

25,000 Jute Workers Lose Jobs in Bangladesh

Bangladesh’s crucial jute sector has shed 25,000 jobs and shut three factories after a massive slump in exports, triggered by the global economic downturn, industry officials said Feb. 5. The Bangladesh Jute Spinners Association said the country’s jute yarn factories had slashed production by 30 percent in the last three months as demand for their products nosedived in European markets.

Jute goods exports plunged by 18 percent with a loss of 136.83 million dollars in the six months ending December, according to the government’s Export Promotion Bureau. "The situation is getting worse day by day as the global recession has wreaked havoc on the European companies to whom we supply most of our jute yarn. In the next few weeks, more factories will have to draw their shutters,” said Shahidul Karim, Association general secretary.

Jute goods — such as sacking and yarn for floor carpets — are Bangladesh’s third largest export. The sector directly employs 125,000 people, has more than 20 million farmers, who grow it as a cash crop.

Check our web site: http://www.laboreducator.org