ENGIE renews agreement with three global unions

The agreement was signed virtually this morning

The agreement commits the company to a just energy transition, to sustainable employment and social protection for workers.

The renewed agreement represents a decade of international social dialogue, which is embodied in several agreements and conventions, both at European and global level. It lays out the company’s commitment to social responsibility and fundamental rights, and provides a standard set of guarantees for all 170,000 ENGIE employees around the world.

Crucially, the concepts of sustainable development and Just Transition are integrated into the agreement, as is French legislation on due diligence, which the company commits to apply globally.

The company also commits to comply with fundamental international labour standards wherever it operates, including ILO Convention 190 on violence and harassment in the world of work. To facilitate equal pay analysis, there will be a transparent and gender-disaggregated remuneration system, and enhanced fiscal transparency with country-level tax reporting.

There is a commitment to sustainable employment and social protection for workers, with 14 weeks of fully paid maternity leave, and four weeks of fully paid paternity leave. There is a minimum coverage of one year of incapacity benefit, a health benefit covering hospital costs at a minimum of 75 per cent, and death coverage for all workers, which includes the payment of a minimum of 12 months of gross salary.

There is also a commitment to digital transformation and lifelong learning for employees.

The monitoring and implementation plan for the GFA includes appropriate training and is backed by a world forum, held at least once a year, and bringing together employee representatives from all regions, with the signatory unions and company management.

The forum will hear reports on benefits coverage, the gender pay gap and plans to eliminate it, global risk mapping, minimum wages and social benefits, training, and the implementation of the agreement itself.

This will be supported by social dialogue at local level, at least once per year.

IndustriALL Global Union general secretary Atle Høie said:

“At IndustriALL, we are pleased to sign the renewed global framework agreement with ENGIE. As a multinational utility company which operates in the energy sector, it is key that ENGIE commits to sustainable industrial development and a Just Transition with the global union federations that represent its workers worldwide. Likewise, the commitment to comply with French due diligence law globally is very important.

"We hope that the world forum, which will meet at least once a year, can effectively move forward to implement the points in the agreement.”

Photo: ENGIE

Electricity unions pledge to support each other

 

The electricity network meeting was opened by sector vice co-chair Gwenne Farrell from Canada, who spoke about how the pandemic has resulted in a wave of solidarity between ordinary people, and reminded us that we need to support for each other.

IndustriALL energy director Diana Junquera Curiel spoke about the state of the sector during the pandemic. Despite lockdown, global demand for electricity has only shrunk by two per cent this year, so the sector has not been as heavily impacted as others. Electricity workers are considered essential, and those who could not perform their tasks from home had to go to their workplaces despite lockdowns. Some companies, including those IndustriALL has global framework agreements with, such as ENGIE and ENEL, responded well, providing life insurance and health coverage to all staff globally, and introducing specific safety measures.

Junquera spoke about future trends in the sector. Electricity will be generated by more diverse sources, particularly solar photovoltaic energy, and power networks will need more flexibility to cope with the change in supply. This will require major infrastructure development, and unions must pressurize governments and companies to invest in the future of energy.

In particular, a massive expansion in grid capacity is needed, and well as ways to store energy for peak demand. This will include the development of batteries and energy storage systems. Possible scenarios include large scale investment in batteries by energy companies, or using the growing capacity of electric cars which are charged at night when demand is low.

In response, Matt Murphy of Australia said that experience had taught that it is critical for unions to have a strong presence in the national grid. Jesus Crespo Torres of Spain noted that companies are shifting to renewables – but it's up to unions to ensure the social aspect of the transition. Spanish delegates spoke about  the closure of coal mines and thermal power plants in Spain and the good agreements jointly negotiated with the Spanish government and the companies to guarantee a Just Transition for workers.

French union delegates spoke about the unbundling of EDF and ENGIE, and about the joint action that unions took on 26 November, to demand action from the European Commission, French government and the companies. Representatives from around the world expressed their solidarity with the French workers, many saying they face similar issues.

IndustriALL mining director Glen Mpufane spoke about the supply chain links between electricity and mining. He raised the case of the Cerrejón mine in Colombia, where workers have been on strike for almost 80 days against the imposition of terrible new conditions. The coal is exported, mostly to Europe and Turkey, for electricity generation.

Assistant general secretary Kemal Özkan spoke about the work IndustriALL is doing to organize the battery supply chain, and about how important it is for electricity workers to be part of that network.

“As batteries become more important, mapping and organizing the supply chain, from mining upwards, is essential,” he said.

Photo © Trevor Rickard (cc-by-sa/2.0)

French unions unite to defend the future of energy

French energy multinationals EDF and ENERGIE have announced restructuring plans which unions believe will threaten jobs and the security of the energy supply, and surrender the future of energy to the private sector.

In a joint statement, the French unions stressed the importance of the public service ethic by reminding the company of the dedication and professionalism of staff who maintained the electricity supply throughout the coronavirus lockdown. The statement called the forced liberalization of the electricity market “madness”, saying that the French government risks destroying a formidable asset.

The four unions – FNME-CGT, CFE-CGC Énergies, FCE-CFDT and FO Énergies et Mines – believe that plans for the unbundling and privatization of renewables shows a lack of commitment to energy futures at a time when the state should be playing a leading role in managing a Just Transition to a low carbon future. This future must include quality jobs as well as a reliable supply of energy.

The unions are united in their opposition to the restructuring plans, which will affect not only workers and the public in France, but company employees around the world. IndustriALL has global framework agreements with both companies. The unions expressed their concerns about jobs, and that the companies will lose their leading role in driving the energy transition by surrendering energy futures to the market.

EDF is a largely state-owned company that employs 165,000 people around the world. Unions are fighting French government plans to restructure and partly privatize the company. The government plans to split EDF into three separate entities, named green, blue and azure. The less profitable blue part of the company will remain in the public sector, while the green part, which includes renewables, will be a listed on the stock exchange. A third part, azure, will cover hydroelectricity.

ENGIE is a private company that employs around 70,000 people globally. The French state is the biggest shareholder, with almost a quarter of the company’s stock, and is very influential. The company plans to split into two entities, New ENGIE and NEW Solutions.

The unions will take a joint day of action on 26 November to oppose the restructuring and defend the public sector model.

In a solidarity letter to the affiliates, IndustriALL general secretary Valter Sanches said:

“Energy is a public good and a strategic sector. There can be no strong and sustainable economy without energy independence and infrastructure development. Splitting the energy activities of large integrated groups into sub-divisions, such as at EDF and ENGIE, will lead to the progressive dismantling of the energy giants.

“Access to energy, security of supply and favourable energy prices directly contributes to industrial growth and the creation of sustainable jobs. At a time of major energy challenges, when the world must ensure the integrity of its supply while managing a Just Transition to a low-carbon economy, it is unacceptable to endanger the capacities for development, investment and innovation of EDF and ENGIE.”

Global unions welcome ENGIE’s commitment to cover Covid-19 related health care and social security for employees

Given the urgency to ensure social security coverage to all ENGIE employees in the context of the Covid-19 pandemic, ENGIE has approached the global union federations to make parts of ENGIE CARE immediately effective.

“We welcome this initiative from our global framework agreement partner in the face of the pandemic. Workers are paying a high price and we urge ENGIE to make it accessible to workers all over the world,”

says Valter Sanches, IndustriALL Global Union general secretary.

“Austerity policies have forced many governments to cut public funding in social security and other public services. ENGIE’s commitment to ensure a common social protection base to its workers worldwide is a commendable contribution to complement the state provision, where existing, and to provide support where workers have no protection. But it also highlights the need for governments to invest in public social protection systems to alleviate the socio-economic impact of the Covid-19 crisis and to ease the recovery of the economy,”

says Rosa Pavanelli, PSI general secretary.

“As partners in the negotiations for a new International Framework Agreement, we are jointly committed to the protection and promotion of workers’ rights around the world. BWI therefore welcomes ENGIE’s pro-active response to mitigate the negative impact of Covid-19 to all its workers. This highlights the importance of recognizing collective bargaining at all appropriate levels with trade unions to identify threats to workers’ health, rights and welfare, and to develop and implement workplace responses,”

says Ambet Yuson, BWI general secretary.

ENGIE, IndustriALL, Public Services International (PSI) and Building and Wood Workers International (BWI) remain committed to the continuation of their dialogue and to the negotiations on the global framework agreement that will resume as soon as conditions allow.

The new ENGIE GFA will include the company’s commitment to guarantee a common social protection base in terms of parenthood, health, disability and death throughout its world operations for all employees, implemented via the ENGIE CARE programme.

Australia: CFMEU wins Just Transition for Hazelwood power station workers

Multinational energy company Engie announced in November 2016 that the coal fired power station and adjoining mine would close on 31 March 2017, at the cost of hundreds of jobs. The CFMEU entered into negotiations with power station operators in the Latrobe Valley and the Victoria government. The result is the Latrobe Valley Worker Transfer Partnership Scheme.

The deal includes a commitment to minimize job losses, retrain workers, and an early retirement scheme that will free up positions for those wishing to continue working in the industry.

Older workers will be offered early retirement at Loy Yang A power station and mine in the same area, creating jobs for young Hazelwood workers. It will keep families, jobs and money in the valley. At least 150 Hazelwood workers will be supported into employment.

CFMEU national president, and IndustriALL Global Union executive committee member Tony Maher described the scheme, which includes commitments by Latrobe Valley power station operators, unions and the Victorian government, as “a breakthrough in best practice”.

“This partnership sees workers, their families and the broader Latrobe Valley community supported through the Hazelwood power station closure,” he said.

“It sees a just transition for workers, their families and communities. Hundreds of directly affected workers and their families will breathe a little easier tonight, knowing there is a commitment to their families’ futures.” 

Hazelwood power station and mine is located in Victoria’s Latrobe Valley, 150 km east of Melbourne. It is jointly owned by Engie (72%) and Mitsui (28%). French-based Engie – formerly known as GDF Suez – has had a global framework agreement with IndustriALL and the global unions PSI and BWI since 2012.

Hazelwood employs about 500 staff directly, and averages 300 alliance contractors with hundreds more employed during major maintenance periods.

Engie announced the closure of Hazelwood as a result of a policy of gradually ending its coal activities. In addition, the company has complained of low electricity prices and overcapacity in the electricity sector in Victoria.

CFMEU and its allies, working closing with the government of the state of Victoria, lobbied hard for a solution. On Friday 10 March, Victoria premier Daniel Andrews announced a funding package to facilitate the retraining and early retirement of workers, as well as agreement with the energy companies for the redeployment of workers to other sites.

IndustriALL assistant general secretary Kemal Özkan said:

“This is a great example that shows just transition is not just a paper exercise. With the political will to make it a reality, we can achieve practical results.

“Our affiliate the CFMEU Mining and Energy Division have done really good work in looking after the interests of their members and the community they live in.”

Global unions sign Health and Safety Agreement with GDF Suez

Gérard Mestrallet, CEO of GDF SUEZ, signed the Global Agreement on Health and Safety with IndustriALL Global Union, Building and Woodworkers International (BWI) and Public Services International (PSI) on May 13 in Chile.

The pact, which is an extension of IndustriALL’s Global Framework Agreement with GDF Suez, sets out to eradicate fatal accidents that have a causal link to the company’s operations.

The agreement also sets out to continuously reduce the number of accidents at work; and to improve health by phasing out products containing substitutable toxic substances, particularly chemicals classified as carcinogenic, mutagenic or toxic to reproduction.

Brian Kohler, IndustriALL’s Director of Health, Safety and Sustainability said:

“GDF Suez joins a small group of companies willing to work with their unions to globalize best practices in health and safety. We aim to protect workers throughout all of its multinational operations, as well as workers sub-contracted to it.”

Particular attention is paid to sub-contractors in the construction phase of industrial and infrastructural projects, with GDF Suez undertaking to carry out a risk assessment of each phase of a project to ensure that best practices are followed. Final approval of projects will include criteria for project acceptance and inspection for health and safety issues.  

The agreement will be subject to annual review in a five-year action plan from 2015-2020. 

ENGIE

ENGIE renews agreement with three global unions

About the agreement

The Global Framework Agreement also commits the parties to “positive and constructive industrial relations inside all ENGIE companies,” as well as promoting such practices with business partners. It sets forth a framework regarding employee training, health and safety, and stable and sustainable employment, including priority on direct employment and adherence of company subcontractors to pay social security and pension contributions for their workers. Because of the nature of their work, another important commitment of the company that was agreed is to respect the principles contained in ILO Convention 94 related to labour clauses in public procurement.

It also pledges environmental stewardship that enjoins labour and management to combat climate change, protect workers’ rights and interests in accord with the principles of Just Transition, and supports efforts to control the impact on the environment of the company’s resources and activities. 

It commits ENGIE, the three Global Union Federations, and trade unions to cooperative social dialogue to achieve additional agreements, including on training, occupational heath and safety, restructuring, and sustainable development and climate change.