Aerospace unions aim to take global solidarity to next level

The aerospace industry is worth almost US $850 billion, employs five million workers, and is expanding to new countries. Expansion is driven by a desire for an increased global presence, by local content requirements of states, as well as a drive to increase profit margins through lower labour costs.

“We expect continued strong growth for the industry, particularly in Asia. The big players have all put strategies in place to develop into real global companies. This will lead to rapid growth of new locations of all types – manufacturing, research, maintenance, training – mainly outside Europe and the US,”

said IndustriALL assistant general secretary Atle Høie.

The president of the Machinists’ Union (IAMAW) Bob Martinez spoke about union busting at Boeing in the US, saying these tactics were now spreading across the world.

“The global aerospace industry finds itself at a crossroads. One direction takes it down a path that ignores the simple fact the workers are the most valuable factor in the company’s success. This is a path that leads to failure. Unless the world’s aerospace unions take action now, more and more companies will go down the anti-union path.

“The industry must choose a path that recognizes that a proud union workforce is the engine that drives a company’s success.”

While the industry is dominated by manual operations, it is starting to apply new production technologies based on digitalization and artificial intelligence.

“The race for lower costs and the increased use of precarious employment is extremely dangerous in an industry where safety standards that are only at 99 per cent can have severe consequences for people’s lives,”

said Georg Leutert, IndustriALL Aerospace director.

Unions committed to cooperate to ensure decent working conditions and pay everywhere, and to stop workers being pitted against one another due to global competition.

They plan to:

  1. Establish and develop a global union network and employee forums at company level, in particular at Boeing, Airbus, Rolls-Royce and Safran.
  2. Cooperate closely with unions and other partners in emerging aerospace economies to ensure global labour standards are applied, especially in India, Mexico, Morocco, Tunisia, Vietnam, Thailand and Indonesia.
  3. Establish an expert group on automation, digitalization and artificial intelligence to ensure transformation is socially responsibly.
  4. Coordinate globally through the steering committee, with regular full committee meetings and smaller meetings related to projects.
  5. Intensify the fight against anti-union policies by companies, politicians, pressure groups and others in the US, particularly in the US South.
  6. Engage with the growing aerospace industry in China and related trade union issues.
  7. Make sure all affiliated trade unions with significant aerospace membership are re-integrated into the sectoral work.
  8. Develop strategies to increase gender equality, and to involve more young trade unionists in activities.

At its meeting in January 2020, the steering committee will develop these commitments by defining measurable criteria with objectives and timeframes to ensure sufficient progress is made by the time of the next global meeting in 2021.

Strengthening union power in the Indian Aerospace sector

Indian unions and aerospace steering committee members from trade unions in France (FO), Germany (IG Metall) and the UK (Unite and CSEU) discussed key issues in the Indian aerospace industry, challenges facing the South Asia trade union movement and ways to strengthen union power in the aerospace sector.

Professor SN Misra provided an overview of the aerospace industry and argued that the government of India needs to boost resources for research and development in order to increase aerospace manufacturing capacity in the country. 

Aerospace sector union representatives from the Steel Metal and Engineering Workers Federation (SMEFI) and TATA Lockheed Martin Aerostructures stressed the difficulties they have in improving social dialogue and the right to freedom of association in the Indian aerospace sector.

The committee heard about the recent strike by 20,000 HAL employees, which was spearheaded by the All India Hindustan Aeronautics Limited Trade Unions Coordination Committee (AIHALTUCC). The HAL workers withdrew the strike on 22 October following directions by the Karnataka High Court but continue to pursue their demands for pay rises through negotiations.

Atle Høie, IndustriALL assistant general secretary, said:

“The IndustriALL Aerospace Steering Committee expresses solidarity with HAL workers, who are asking for just wage increases. We call upon HAL management and the government of India to earnestly engage in genuine dialogue with AIHALTUCC and address their demands.”

Georg Leutert, IndustriALL director for the automotive and aerospace industries, said:

“The steering committee members decided to explore various cooperative mechanisms, including conducting a study on industrial relations in the Indian aerospace sector, improving coordination and sharing information with Indian unions in order to build international solidarity among aerospace trade unions.”

The Indian aerospace industry is one of the fastest growing sectors in India. It is dominated with manufacturing for defence products, while the commercial aircraft market is growing rapidly. Major players in India include HAL, Bharat Electronics Limited (BEL) and MNCs such as Airbus, Boeing, Rolls Royce, Honeywell Aerospace and GE Aviation among many others.

Workers discuss future of the mobility sector and employment in Latin America

At the meeting, which was attended by union representatives from Argentina, Brazil, Chile, Colombia, Mexico and Uruguay, the education coordinator at Brazil's Inter-union Department of Statistics and Socio-economic Studies (DIEESE), Fausto Augusto Junior, gave an overview of the current and future situation of the mobility sector in the region. He also looked at how further free trade agreements and the rise of new technologies might affect the sector.

IndustriALL's deputy regional secretary, Cristian Alejandro Valerio said:

"One of the things we agreed on was that, the global economic power is interested for Latin America to continue extracting and producing raw materials rather than be a manufacturing region. Participants also pointed out that governments in the region invest very little in R&D and technology, which makes it difficult to develop the manufacturing industry."

The head of IndustriALL's automotive and aerospace sector, Georg Leutert, moderated a discussion on new mobility concepts, electric vehicles, digitalization and Industry 4.0, with leaders providing details about the extent to which these technologies are used in the region.

IndustriALL's general secretary, Valter Sanches, joined the meeting via video call. He talked about IndustriALL's strategies and the action it was taking to prepare for the future world of work. He also highlighted the need for unions to help ensure a fair transition, given how much employment practices are changing worldwide.

Later on, IndustriALL's regional secretary, Marino Vani, set out IndustriALL's action plan for Latin American and the Caribbean, as well as its strategy and priorities. Finally, workers from the macro sector drew up a number of action plans, which they committed to developing further within their unions and sectors back in their home countries. The action plans had four main priority areas:

  1. Strengthening union power at the national and regional levels
  2. Building union networks and fostering dialogue with companies in Latin America
  3. Promoting and safeguarding sector-related policies at the national and regional levels
  4. Pressing ahead with the union agenda and priorities for the sector through joint actions and campaigns.

To sum up the meeting, Marino Vani said:

"Participants have come out of the meeting stronger and more confident. We have held in-depth discussions on the challenges facing the working class, and especially workers in the mobility sector in our region. We have also committed to being more united in our actions, further empowering unions and strengthening union representation. We are going to fight for a fair transition, for sustainable industrial policies and for decent and dignified jobs.”

Aerospace

Aerospace

The aerospace sector interacts with affiliates to shape a joint sector policy and develop a common strategy for unions to address developments and challenges in the industry. The work is carried out through a Steering Committee.

Contact

Georg Leutert
Tel. +41 22 308 5026
e-mail: gleutert

 

Aerospace sector Global Framework Agreements (GFA)

In-depth articles

The global aerospace industry – close to a crash landing?

Global Worker report  – June 2020

Boeing South Carolina mechanics vote to join Machinists Union

A bargaining unit of flight line mechanics, who ensure that the Dreamliner 787s built at the factory are flight ready, has voted to join the Machinists Union. The 176 workers represent a portion of the 7,000 who work at the South Carolina site, and the victory opens a significant beachhead in a longstanding battle to unionize the site.

National Labor Relations Board rules mean that groups within a workforce – “micro units” – can negotiate union contracts if their working conditions meet certain criteria. The union hopes to set a precedent with the micro unit, encouraging other parts of the workforce to unionize.

The IAM represents 35,000 Boeing workers at 24 locations in the US, but the company had until now successfully fought off unionization efforts in South Carolina. The US South is notoriously anti-union, and South Carolina has the lowest private sector union density in the US. Previous attempts to unionize the factory failed, including an attempt in 2015, when the anti-union campaign was led by state governor Nikki Hailey, currently the US ambassador to the UN.

Boeing fought the current organizing drive as well, hiring union busters and forcing workers to attend anti-union meetings. The company filed last minute legal challenges to the vote and attempted to have the ballot boxes impounded. When the result was announced, the company expressed disappointment and pledged to try to have the vote declared illegal.

The IAM’s Mike Evans, who lead the organizing drive at the site, said:

“This election was never just about wages. The men and women wanted dignity and consistency in the workplace. And this vote put them closer to achieving those goals. We hope Boeing does the right thing by agreeing to sit down and negotiate in good faith with the dedicated Flight Readiness Technicians.” 

IndustriALL aerospace director Georg Leutert said:

“In the South, employers, government and Members of Congress work together to create a very hostile environment for unions. Boeing tried everything to stop these workers from unionizing, and yet they chose to stand up for dignity and respect at work. This is a major achievement, and we hope more will follow. We congratulate the IAM.

“It is time for Boeing to be mature and establish a productive relationship with the union.”

The IAM represents 600,000 members at companies that include Boeing, Lockheed-Martin, General Electric, United Airlines and Harley-Davidson.

Democratic unions in Mexico declare new alliance

Mexico is largely dominated by so called ‘protection contracts’ meaning a partnership between unions and employers against the interests of the workers.

The group, which includes unions representing workers at carmakers Volkswagen, Audi, and Nissan, tyre manufacturers, Bridgestone and General Tyre (Continental), and aerospace multinational, Bombardier, met in San Luis Potosí on 13 April. The unions discussed important aspects such as the name, structure, principles, objectives, work plan and operating rules of the new alliance. These matters will now deliberated in the individual unions. 

The meeting also approved a solidarity campaign with Bridgestone workers, took a position against the proposed new labour reform and made plans for a joint meeting to be held in September with with a broader group of international allies. 

The meeting was attended by IndustriALL director Georg Leutert and Fernando Lopes, adviser to IndustriALL’s Brazilian affiliate, CNM-CUT.

Leutert expressed IndustriALL’s support in strengthening genuine unions in Mexico and fighting protection contracts, signed between companies and ghost trade unions, which deny workers the right to freedom of association and the right to bargain collectively.

Lopes stressed that the CNM-CUT will continue to strengthen the ties between unions in the sector in Argentina, Brazil and Mexico.

The meeting included a press conference where the unions outlined their common objectives and values, as well as their common position against proposed labour reforms in Mexico, which have now been postponed until after the general elections on 1 July.

A follow-up meeting is scheduled for July 6.

UK: GKN workers urge government to stop debt-fuelled takeover bid

Automative and aerospace company GKN – which traces its roots to 1759, at the dawn of the industrial revolution – faces a hostile, debt-fuelled takeover by Melrose, a “turnaround” specialist. The bid will leave GKN with over £1.3 billion of debt, while Melrose advisors will gain up to £140 million in fees. Workers believe that they will be expected to pay off the debt through cuts and restructuring.

GKN employs 6,000 workers at 14 sites across the UK. On 28 February, GKN aerospace, automotive and defence workers from sites across the country came to the Houses of Parliament to lobby MPs and call on the government to stop the takeover.

IndustriALL Global Union affiliate Unite is urging the government to block Melrose’s bid in the public interest, on the grounds of national security. GKN supplies and maintains UK defence equipment.

Unite believes that the Melrose bid is using vast loans to lure shareholders with an ‘exceptional dividend’ and then shoulder GKN with debt. The takeover’s focus goes little beyond a pay out to shareholders, banks and Melrose executives who are in line for over £280 million in bonuses. Melrose has no serious long-term plan for GKN’s future, based on investment to defend thousands of highly skilled jobs.

A takeover by Melrose could lead to GKN being sold off piecemeal and jobs cut or shipped abroad.

Unite assistant general secretary for manufacturing Tony Burke said:

“GKN is a world class manufacturer. It is essential to the government’s industrial strategy and is one of the jewels in Britain’s manufacturing crown.

“In Melrose’s hands, all that would be put at risk and ministers’ plans for the UK to be a leader in electric vehicles could be left in tatters.

“Melrose’s debt-fuelled bid would not happen in France or Germany. Theresa May has said she will act in the national interest. It’s time she did and saved British jobs by ensuring her government stopped the GKN takeover.”

IndustriALL and IndustriAll Europe previously wrote to Unite, expressing support for Unite’s position. Speaking ahead of the Parliament rally, assistant general secretary Kemal Özkan said:

“Melrose show no intention of investing in GKN and protecting thousands of skilled jobs. This debt-fuelled deal is designed only to create short term profit for shareholders and bonuses for executives.

“We support Unite in their opposition to speculators who feed on the productive economy.”

UK: solidarity with Unite opposition to hostile takeover bid of GKN

GKN is a ‘tier 1’ supply chain manufacturer for automotive and aerospace with nearly 60,000 workers around the world, currently under threat of takeover by Melrose Industries.

IndustriAll Europe and IndustriALL Global Union share Unite’s deep concern that Melrose is a ‘turnaround’ company, which purchases firms to boost the share price and sell them at profit. Melrose has no experience in managing a business as large as GKN, or a serious plan for the long-term investment that is needed.

In a press release published on 5 February, Unite called on the House of Commons business, energy and industrial strategy committee to insist on a review of Melrose’s debt-fuelled takeover bid of GKN. It comes amid fears that the deal could damage the government’s industrial strategy and national defence interests.

As Britain’s largest union, Unite also raised concerns over Melrose’s bid with the House of Commons defence committee. Unite believes that if successful, long-term investment could dry up leading to cuts in research and development which would harm the UK’s current and future defence capability, as well as endanger jobs.

The general secretaries of IndustriALL Global Union and industriAll Europe, Valter Sanches and Luc Triangle, reacted quickly to Unite’s plea for support by penning a solidarity letter in strong support of Unite’s position:

“It is extremely worrisome that Melrose’s bid is being funded by debt, which would be used to pay GKN shareholders an ‘exceptional dividend.’ GKN would then be saddled with the debt, meaning there’s no risk to Melrose, whose bosses would make £284 million in bonuses from the deal. 

"The bid is purely focusing on share price, not underlying performance, which is strong in both GKN‘s Automotive and Aerospace divisions.  What both divisions actually need is long-term investment, not two sets of management competing for the affections of investment funds by boosting the share price with cuts and restructures.”

Taking all of this into account, IndustriALL Global Union and industriAll European Trade Union urges its global and European network of millions of workers in mining, energy and manufacturing industries in Europe and worldwide to also oppose Melrose’s hostile takeover of GKN. 

IndustriALL statement on Boeing and Bombardier trade dispute

In the case filed by Boeing against Bombardier with the US Department of Commerce, thousands of skilled, decent jobs are being threatened in Canada and in Northern Ireland.

This is not acceptable.

IndustriALL will not permit any corporation to pit workers in one country against workers in another country.

We call on the US, Canadian and UK governments to meet as a matter of urgency with Boeing and Bombardier, taking into account the social impact of their actions, and to resolve this dispute in a manner which protects employment and does not harm workers, their families and communities.

Background

In September, Boeing accused Bombardier of corporate dumping, and filed a case with the US Department of Commerce. This could lead to punitive tariffs being placed on planes made by Bombardier, threatening thousands of jobs.

The dispute threatens workers who are members of IndustriALL affiliates Unifor, Unite the union, GMB, and the International Association of Machinists and Aerospace Workers in Canada, the UK and the USA.

Workers represented by IndustriALL affiliates include 22,000 direct and indirect employees producing components for the Bombardier C Series passenger airliner in the US, 4,000 direct employees and as many as 14,000 indirect employees in Northern Ireland, and 45,000 direct and indirect employees in Canada. The Bombardier factory in Belfast makes wings for the C Series, which is assembled in Canada.

Argentine unions protest at Atucha dismissals

The protest was held on 9 July, the anniversary of Argentina’s declaration of independence. But with the dismissals affecting more than 1,000 families in the city of Zárate, there was not much evidence of any festive spirit at the event.

The protest aimed to highlight the dispute and denounce a situation that is becoming all too common in Argentina. The loss of 1,000 jobs at the Atucha nuclear plant is a direct consequence of economic measures taken by Mauricio Macri’s government.

The government is dismantling energy policies that had facilitated the development of plants such as Atucha in Zarate. The construction of other plants has been suspended or cancelled, worsening the unemployment situation.

Dismissals are taking place in all sectors of Argentina’s economy. Moreover, one in every four dismissals in the second quarter of the year were due to company closures, according to the most recent employment survey conducted by the Centro de Economía Política Argentina (CEPA).

CEPA’s report notes that 3,700 workers have been affected every month since the beginning of the year. CEPA calculates that there has been a total of 264,143 dismissals and lay-offs (76,526 in the public sector and 187,617 in the private sector) since Macri became president in December 2015.

In the case of Atucha, the unions decided to act because the labour ministry failed to initiate mandatory conciliation procedures. The unions will meet ministry officials on 11 July, when they hope to get answers to their questions and solutions for the dismissed workers.

Fernando Lopes from IndustriALL Global Union, said:

“Macri’s government is implementing neoliberal adjustment policies that have an impact on workers. They will not accept these policies and the struggle will get increasingly tough. They have the support of IndustriALL Global Union”.

The construction workers’ union, UOCRA, affiliated to the Building Workers’ International (BWI), organized the protest with the support of the autoworkers’ union, SMATA and the metalworkers’ union, UOM, both affiliated to IndustriALL Global Union, and the chemical workers’ unions.