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SESSION FIVE: RESPONDING TO GLOBALISATION
Introduction
The Australian study circle had not met for 4 weeks
because of unavoidable problems associated with Easter and other matters.
As we gathered together and started talking about what had
been happening in our lives since we last saw each other we learned that one of our
participants, from Nestle Blacktown – the Australian Manufacturing Workers Union
– was trying to deal with Nestle’s announcement to the workers that they
intended to retrench 24 workers.
It soon became clear that this situation represented a
stark example of one of the effects of globalisation we had discussed in the previous
course, and we decided to discuss it in detail as a case study of "unions responding
to globalisation". Therefore, we did not stick strictly to the Session 5 Outline in
the curriculum.
1. Responses to Globalisation
Similarities and Differences re Effects of
Globalisation on Workers and Trade Unions
Similarities:
Differences:
2. Organising in TNC’s
A. The Case Studies: from the readings
Building links:
- By worker to worker delegations – not just union
officials.
- Educate that the "it won’t happen to us"
(that is retrenchments, downsizing etc) syndrome is wrong: this message is best carried by
workers to workers, better than officials to workers.
- Restore democracy inside unions.
B. Toshiba
Our participant from Toshiba had recently participated in
the first strike in the computer software industry in Australia over the demand for an
award type collective agreement. This had occurred after grass roots organising had made
gains – improvements in working hours and overtime arrangements and the first
unionisation in the sector.
These firsts were breaking some myths about software
development workers: they are capable of collective activity, they do have serious issues
arising from their treatment as workers, they are willing to join unions etc.
During the disputes and the negotiations the company reps
said things like "keep this up and we’ll head back to Japan’’. The
workers had not fallen for these threats.
C. Weston Foods
The whole work force were organised to say "no
more change" – 300 people. Create enough strength whereby the workers can demand
a ‘stable approach’ from management.
D. Nestle – Australia (Blacktown)
Nestle have announced the retrenchment of 24 out of
72 workers from its Blacktown (near Sydney) operation. The retrenchments are to be spread
over just about all classifications and work sections. They will take effect in May.
- Effects on the workers:
- Immediate suspicion and fear – collapse in morale,
feeling defeated, mood of inevitability
- "everyone looking at each other – who will be
selected to go?" Local management is promoting "last on first off mechanism to
decide who should go", but the union rep is not sure this is the fairest approach.
- Delegate is under a lot of pressure: expected to carry a lot
of the worries and responsibility for ‘a solution’.
- Facts to be taken into account:
- There is no productivity problem at the plant
- Management have been running the plant at about 60% capacity
for a couple of months
- There had been a lot of product development in recent times
- The factory is not owned by the local factory manager but by
people who do not know the workers at Blacktown.
- Issues to be considered by the
delegate and members:
- For how long have the local management known of this
decision?
- How long do they intend to keep the plant going? How secure
is the future of the plant after the retrenchments?
- Where do you go to find the answer?
- The redundancy package: 4 weeks pay for each year of service
plus and age allowance – the award minimum, its attractive to some workers: they want
to take it – makes resistance harder.
- Where else can the product be made? In Victoria? Or, in
South East Asia somewhere?
- Lessons from this experience:
- "We never thought this could happen to us. But it could
happen to any one of us anytime."
- The company is treacherous and has been deceiving us. At
Blacktown the company and the union have worked together to make it an efficient and
productive plant: "but this still has not saved jobs".
- Ideas for developing resistance and
opposition to 24 retrenchments:
- Say "no" – protest against the deliberate
slowing down of production in recent months, that the management have known of this for
some months, that forced retrenchments are rejected, and the treachery of the company
after cooperation from the union.
- Find points of vulnerability of the company where pressure
could be mounted and applied: for example, at warehouses, at sales points.
- Develop links with union reps at the Victorian sites: open
up likelihood or possibility that operations would be shifted to East Asia. Recognise and
discuss the reality that a lot of workers in Victoria might believe that the decision
means more job security for them; that the company may even promote this idea among
Victorian workers in order to defeat any solidarity between Victorian workers and
Blacktown.
- Inform union reps in Nestle’s operations in east Asia
and discuss and compare events in their operations with events at Nestle. Explore whether
there any company weak points in East Asia operations.
- Recognise that Blacktown workers cannot expect support from
other quarters unless they are prepared to resist.
- Develop a list of questions to be used in negotiations with
the company as part of investigating the company’s rationale for the decision. (see
attachment, for example).
3. Communicating With Other Study Circles: How trade unions could be organising in
TNC’s
- build organising around the assumption that
retrenchments etc could happen at any time – establish who the real decision makers
are and get face to face with them in any negotiations
- build awareness that the decision makers are located in
boardrooms a long way from the workers, about where these boardrooms are located and who
the decision makers are
- be well organised in each individual operation / plant::
educate the workforce through plant organisation – talking international union ideas
and literature for workers to discuss
- establish face to face meetings between workers / union reps
from the different plants – not just union officials
- use these meetings as base to establish and maintain ongoing
worker – union rep networks
- when necessary develop collective action around points of
unity
- use internet and fax technology for regular and speedy
international communication – build a detailed profile of the tnc and make sure every
union rep has a copy and can discuss it with workers
- develop ‘solidarity agreements’ between unions
across different countries and also within each country: that is, consolidate ‘touch
one touch all’ principle
Attachment
Trade Union Training Australia
Retrenchments from Closures, Outsourcing and Mergers, Relocations
Management’s Case and Questions to Build Resistance
| Management’s Case |
Questions to ask |
| A: "lack of demand" or
"recession" |
What are the sales data? What does the
order book actually say?
- On what forecasts are management’s case based?
- On what assumptions are the forecasts for future demand based?
- Has the market share changed in the past 3 years?
- What are the key factors determining both market share and total demand?
|
| B: "We cannot compete with prices
of our competitors? |
Who is ‘we’? Who made the
decisions? What are their names? Where are they located? Who is the competition? What
are the prices of the competition? Is like being compared with like?
- How does the company’s investment record compare with that of the competition?
- How can the picture on prices be distorted by domestic or international price fixing?
- Have costing or depreciation techniques changed in recent months? Years?
- What would happen to cash flow and demand if prices were brought into line?
|
| C: "Production elsewhere will be
much more profitable." |
Where is elsewhere? Is the company already
located there?
- How do the costs and venues of the 2 cases compare? In the short term? And in the long
term?
- What are the differences in taxation and government assistance between here and there?
- How does a move or downgrading of production facilities fit into corporate plans?
- What are the real reorganisation costs? Have the real re-organisation / relocation costs
been fitted into the equation?
|
| D: "We cannot go on because of
lack of capital." |
What are the present funding arrangements?
- What attempts have been made to raise capital?
- Have there been recent changes in the interest rates or the reserves held?
- Have there been bank reports on the company?
- Is the lack of capital typical of the whole company, or just a part of it?
- How has the cash flow changed?
|
| E: "Rationalsation will save the
rest of the company." |
Is the company aiming to chop one bit
after another?
- What are the positive plans for the rest of the company?
- What are the financial records for the respective profit or cost centres?
- What is the record of transfers between the threatened part of the company and the rest?
- What unique features will be lost if the plant is shut down?
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