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Cardiff Symposium, January 9, 20081 GLOBAL COMPANIES GLOBAL UNION ORGANIZATION/ACTION The IUFs Transnational Company Work & The Chiquita Case.

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Presentation on theme: "Cardiff Symposium, January 9, 20081 GLOBAL COMPANIES GLOBAL UNION ORGANIZATION/ACTION The IUFs Transnational Company Work & The Chiquita Case."— Presentation transcript:

1 Cardiff Symposium, January 9, GLOBAL COMPANIES GLOBAL UNION ORGANIZATION/ACTION The IUFs Transnational Company Work & The Chiquita Case

2 Cardiff Symposium, January 9, IUF GLOBAL STRATEGY yOrganize the Company internationally yIf necessary fight them globally yBuild pressure for recognition of global union organization xde facto and/or backed by a signed agreement yRecognition leads to global bargaining rights xnormally in rights areas (around access to rights) rather than in interest areas (local bargaining) yEnhanced access to rights should mean greater levels of union organization and stronger workplace labour standards

3 Cardiff Symposium, January 9, IN PRACTICE WHAT DOES THIS MEAN? A COUPLE OF CASES z#1: A tough company and yet the most progress: The Coca-Cola System z#2 Tough as well but with less global impact: Chiquita

4 Cardiff Symposium, January 9, Years of IUF Campaigns : Guatemala, South Africa, Pakistan, India, Peru, France etc. A series of conflicts - mainly victories…..but all temporary

5 Cardiff Symposium, January 9, From History to Plan z1980s - Global Campaign in support of Guatemalan affiliates z1990s - Sporadic conflicts against background of corporate chaos and declining corporate prestige z History turns to Plan: xunions organize throughout the system xachieve recognition of the IUF and affiliates internationally xestablish a global negotiating table for rights & employment xavoid and win conflicts across this global bargaining table - always backed by capacity for conflict when this fails to deliver

6 Cardiff Symposium, January 9, The Challenges Company vs. System zEmployment - company and system: xTCCC employs 80,000+ people xCoke system employs 600,000+ people xTop to top bottlers (400,000+) xFranchisees (<120,000) xLabour Relations in principle handled by system bottlers - risks mainly lie with TCCC zTCCC controls: xSome major bottlers (large minority shares and board seats) xConcentrate (the formula) xMarketing and product strategy

7 Cardiff Symposium, January 9, : Global Union Recognition zMarch First global meeting of CC unions (100+ unions in New York) z2005 agreement to recognize the IUF and meet with a group of 5-8 IUF affiliates and senior Coca-Cola Executives twice yearly (normally in Atlanta) zDe facto contact group - IBT and UFCW (USA), NGG (Germany), CAW (Canada), FESTRAS (Guatemala), UI ZENSEN (Japan), FAWU (South Africa), FATAGA (Argentina) led by IUF GS z2005 signed statement formalized global recognition and recognized that Coca-Cola workers have ILO, OECD and all related rights - though nothing on access to rights

8 Cardiff Symposium, January 9, Results of global recognition and the Contact Group meetings: zReinforced union recognition and protection: Russia South Africa Haiti Pakistan zMembership decline reversal/growth: xRussia xPakistan (included public campaign to Accelerate progress) xPhilippines (close to +1,000 in 2007) zLocal union recognition victories: xPakistan: recognition of IUF federation xIndia: recognition of national Coca-Cola union federation xRussia: recognition of local and national union grouping India Philippines Guatemala

9 Cardiff Symposium, January 9, zThe following companies have refused recognition despite tough conflicts and direct union/IUF approaches: xNestlé (at global level - though concession by CEO in December 2007 and first meeting likely in February 2007) xUnilever (though first meeting now on February ) xHilton International xPepsiCo xKraft (at global level) Where do we stand today?

10 Cardiff Symposium, January 9, Open Door Companies zCompanies that recognize the IUF: Accor British American Tobacco Cadburys Chiquita Coca-Cola Compass Danone Del Monte Dole Favorita (bananas) Fonterra Heineken Hershey Foods Imperial Tobacco INBEV Japan Tobacco International Masterfoods (Mars Incorporated) Permira (Private Equity Fund) Bird Eye/Igloo Galaxy Entertainment (Macau) Philip Morris International SAB (now SABMiller) Scandinavian Tobacco Sodexho

11 Cardiff Symposium, January 9, THE CASE OF CHIQUITA z In the banana sector the first company we will try to build an organization within and gain recognition from will certainly NOT be Chiquita - they are the biggest, the worse, the most brutal and the most anti-union. Well take on a softer banana giant first….. Statement in 2000 from... zRon Oswald, general secretary, IUF

12 Cardiff Symposium, January 9, But research and experience revealed…... zMost vulnerable zMost committed to internal change zMost prepared to invest in real rather than cosmetic change zMost seriously committed at the very top of the company zAnd….. zAlready the most unionized

13 Cardiff Symposium, January 9, IUF and COLSIBA work together zCOLSIBA presence on the ground zIUF strategies and experience negotiating with major companies zMutually reinforcing and comradely relationship arising pragmatically out of historical necessity (pre IUF entry into an agricultural jurisdiction in 1994)

14 Cardiff Symposium, January 9, Conferences and Crises z1st International banana conference in Brussels in May 1998 zIUF, COLSIBA, NGO Proposal to meet all banana companies in Miami in 1999 To discuss industry crisis and the future zChiquita, Del Monte, Dole and Fyffes accepted invitation zCorporate strategy clearly differed…….

15 Cardiff Symposium, January 9, Follow-up engagement zCosta Rica meeting in 2000 zAgain all companies were invited zDifference in corporate strategies become even clearer…… zChiquita and Del Monte came - Dole and Fyffes did not…..

16 Cardiff Symposium, January 9, Engagers vs Fakes zChiquita - clearly committed to engaging with unions locally, regionally and internationally zDel Monte - nervously following Chiquitas lead…..but little corporate commitment zDole - hiding behind SA 8000 certification fig leaf - no willingness to engage seriously with unions zFyffes - felt little reputational impact and so dropped out

17 Cardiff Symposium, January 9, IUF/COSIBA AGREEMENT WITH CHIQUITA zOn June the agreement was signed at the ILO and witnessed by ILO Director general Juan Somavia zMechanism was set up to review the agreement zLimitations: xRegional xPartial in terms of Chiquita employees xWeakest on supplier issues

18 Cardiff Symposium, January 9, What we think has worked zCredence given to Chiquitas will to change and much of its internal and external CSR work (though concerns still about its certification programme both environmentally and particularly socially) zIncreased union membership in Colombia and Honduras zProtection of union recognition in Costa Rica, Colombia, Honduras, Guatemala and Panama zPartially effective conflict resolution mechanism prior to public campaigns

19 Cardiff Symposium, January 9, Examples of what has worked…. zColombia - over 4,000 new union memebrs and 27 new collective agreements zHonduras - newly unionized farms- Buenos Amigos zUnion-management dialogue and recognition protected in Guatemala, Panama and Costa Rica zAgreement reached protecting rights in transfer of Colombian operations in 2004 zOpening to Ecuador Chiquita supplier(together with IFC pressure)

20 Cardiff Symposium, January 9, What has not worked……. zAdequately dealing with suppliers - notably supplier contract issues zBreaking free of the Costa Rican Solidarismo structures and rights vacuum zEstablishing robust and effective mechanisms and an environment for discussing tough change at work locally in dialogue between Chiquita country management and national and local unions

21 Cardiff Symposium, January 9, CSR Issues and limitations zCan substitute for real engagement (Dole and SA 8000 example) so IUF does not work with Companies on Codes zLimited credibility arising from: xFrauds and fakes - not always the case of course xLack of constant presence on the ground - always risk of missing things (Chiquita/RA and Colombia) xWorker rights/social issues challenge most CSR and NGO groups xLimited ambition………..IUF concerns about access to rights rather than simple acknowledgment of them

22 Cardiff Symposium, January 9, Fair Trade Issues zIUF in principle very supportive of Fair Trade initiatives zDifficult transition from small producer systems to plantations and thus corporate systems zDangers of FT parallel structures - notably the establishment of joint bodies to oversee premium use in unionized plantations zUnion concerns about worker right and union presence weight in FT criteria and evaluation

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