The World of Labor (June 23, 2006)

By Harry Kelber

South African Security Guards Strike Ends
The three-month security guards strike is finally over, after the last two security guards unions signed on to the agreement reached on June 12. Union leaders from Satawa and the Trade Allied Workers Union (TAWU) have initialed every page of the three-year wage deal effectively concluding the strike.

The contract provides for a 9.25% pay increase in the first year and 7.5% for the next two years. Other parties, including the employer organization and 14 other unions, have already agreed to the deal, which replaces the contentious April 1 agreement.

Satawa has threatened to sue Charles Nquakuka, the safety and security minister, over what it calls the "undue use of police force" against striking members. The guards are to be back on their jobs within 72 hours after the end of the strike.

Biggest Insurance Company in Germany to Cut 7,500 Jobs
Allianz, Germany's biggest insurance company, is to eliminate 7,500 jobs in a drive to boost earnings and win back customers. Most of the drastic cuts, including 5,000 insurance jobs, will come from Germany. The company intends to slash its 21 German administrative centers to 10, as part of its restructuring plan.

Michael Diekman, Allianz chief executive officer, who saw first-quarter earnings at Dresdner alone jump from $942 million to $1.2 billion, said: "I am aware that there is significant opposition, particularly in German, to making staff cuts when you are profitable." He said the changes would take "some years" to implement and acknowledged they would bring "personal dismay."

The company has lost 1 million customers in the past four years and faced incursions into its home market from Axa, a rival. Verdi, Germany's main services union, attacked the restructuring plan and stated it was already planning so-called warning or token strikes.

Niger Strike over High Living Costs Paralyzes Capital
Quiet fell over the Niger capital of Niamey on June 22 as trade unions called a national strike over the high cost of living. Only the banks and large private companies opened, while most of the capital's residents stayed home. "We are very satisfied that the population of Niamey has heeded the call," said strike organizer Moussa Idrissa.

A coalition of workers' unions has been formed under the banner of "fairness, quality and the fight against the high cost of living." They say that the economic policies of the government are putting basic utilities, such as electricity and water, out of the reach of most Nigerians.

The workers are demanding that the government reduce electricity, water and telephone tariffs by between 30 and 50 %. In nearby Guinea, unions waged a week-long strike that compelled the government to give some civil servants a salary increase of up to 25% and lower the price of rice, but not of fuel.

GM to Shut Portugal Plant Unless It Gets Costly Concessions
Automaker General Motors will shut its assembly plant in Portugal by Oct. 31 if talks with workers and the government do not lead to lower production costs, a GM spokesman said on June 23. Workers at the Ajambuja plant, which assembles combo delivery vans, convinced GM last week to wait five more weeks before making a decisions to close the factory. The unions will use the time to figure out what concessions they are willing to make.

GM says it costs 500 euros ($628) more per vehicle to produce at Azambuja, about 35 miles northeast of Lisbon, than at other potential manufacturing sites. The company wants to move production to its factory in Zaragoza, Spain.

There are about 1,100 workers at the factory. They have stepped up industrial action in response to the threat of closure, including a 24-hour strike last week. Spain's socialist government has said it wants to create the conditions for GM to stay in Portugal.

Strike at Spain's Big Supermarket Chain Enters Fourth Month
Workers at Mercadona, Spain's supermarket chain are entering the fourth month of their indefinite strike, conducted by the CNT, an anarcho syndicalist trade union. Mercadona, whose slogan translates as "supermarkets of trust," is Spain's biggest national supermarket chain, with 990 outlets across the country and 54,000 workers.

The present conflict came to a head when workers at the logistics center, located in a town about 25 miles outside Barcelona, set up a CNT branch and began to organize for improved working conditions. Management's response was to refuse to recognize the CNT delegates and then discharge three union members.

CNT called the strike on March 23, initially for 10 days. When management refused to negotiate, the strike was declared indefinite. In the first few days of the conflict, a large proportion of the workers joined the strike. Management's response was to hire about 100 scabs to replace the strikers. Since then, however, the number of strikers has dwindled to about 29, but the union is determined to fight on.

Chilean Health Unions Set to Strike
Two weeks after concluding the student conflict that had the country's chief executive on the rack for nearly a month, health workers are initiating a strike on June 28. Convoked by the Metropolitan Health Workers Federation, the protest involves the capital's central accident and emergency facility and other hospitals that want better working and infrastructure conditions as well as pay increases.

The unions warned they will keep protesting until a regional negotiating table is set to meet and discuss their complaints. Union leader Carlos Castro that medical centers would only take emergency cases.

Privatization policies in public health and education, two of the most vulnerable sectors of Chilean society. Have resulted in continuing conflicts in the nation.

Our weekly columns (LaborTalk and The World of Labor) can be viewed at our website: < www.laboreducator.org>.
Harry Kelber's e-mail address is: hkelber@igc.org