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IMF affiliates in all regions are fighting to protect workers, their families and communities through collective negotiations with employers, by mobilizing for government actions to defend and support employment and incomes, and pushing for industrial policies to advance the sector's recovery and progress towards a lower carbon future with good jobs. Affiliates have put forth programs and positions on what needs to be done economy-wide and for the automotive sector. Metalworking union demands and actions call for:<ul><li>Prompt adoption of stimulus programs that benefit and protect workers economy-wide. This should include and be based on broad public investments to renew and expand transport and technology infrastructures, strengthen public education and universal health care, and expand training and upgrade skills for workers. Support should be coordinated regionally and provide needed resources at both national and local levels.</li><li>Full implementation of measures to prevent redundancies and retain workers in jobs with company and government-financed benefits that secure workers' income and purchasing power. Coverage should include not only large companies, but SMEs as well. When needed, allowable time periods for such benefits should be extended. At the same time, safeguards should be in place to ensure that employers do not abuse short-time work, temporary downtime, or partial and administrative unemployment as preludes to permanent redundancies.</li><li>All alternatives should be considered and if any restructuring is unavoidable, it must be done in a sustainable and socially acceptable manner. Regardless of ownership and enterprise structure, it is essential that companies negotiate with and governments involve unions from the outset to ensure a long-term commitment and employment safeguards for workers and their communities. Trade unions strongly oppose layoffs and plant closures.</li><li>Effective restoration of access to credit lines for automotive and metalworking companies across the sector's production chains, as well as loans for households and enterprises to finance the purchase of new cars and trucks and other final products. Regulatory protections should ensure that no publicly provided or guaranteed capital is used to fund payouts to shareholders, to pay excessive executive compensation, or to subsidize the outsourcing or shifting of production to the detriment of workers.</li><li>Acceleration of investments in R&amp;D, design and production of advanced motor vehicle and fuel technologies that lower emissions of carbon dioxide and other pollutants. Government policies that support reducing the industry's carbon footprint over time should do so via means that generate and maintain high quality jobs for metalworkers. </li><li>Rejection of attempts by employers and government to exploit the crisis to undermine trade unions and workers' rights.</li></ul>With challenges for workers and their unions as great as any time in decades, it is imperative to strengthen solidarity. Effective actions are needed to broaden and deepen trade union efforts to organize workers across metalworking enterprises, to block attempts by companies to substitute precarious jobs for permanent ones in the aftermath of the crisis, and to mobilize for coordinated and concerted policies that protect and advance the interests of workers, their families and communities.<table border="0" cellspacing="0" cellpadding="1" align="center"><tbody><tr><td><a href="../index.cfm?c=20068&amp;mwId=20047&amp;l=2">&lt;&lt; back</a></td><td> </td><td><a href="../index.cfm?c=20060&amp;mwId=20047&amp;l=2">beginning</a></td></tr></tbody></table>

The global crisis and restructuring in automotive and metalworking industries

Previously existing
restructuring pressures

Global downturn hits

Worldwide vehicle 
demand plummets

Effects transfer down 
the supply chain

Repercussions across metalworking

Widespread job loss and 
working hour reductions

Consolidations and mergers

Industrial policies and 
government measures

Download the pdf file of the special report with illustrations >>

Metalworking union actions and responses

Text / Alex IvanouA quick glance at Jyrki Raina's CV reveals a person with lots of experience in a rich variety of jobs including newspaper deliverer, carpenter's assistant, journalist and even court assistant (Raina was awarded Master of Laws in 1985). Jyrki, whose mother tongue is Finnish, also has impressive language skills covering English, Swedish, French, German and Russian. One of his hobbies is political and labour history.With great enthusiasm, Jyrki describes his favourite period of labour history, the time when the trade union movement first began. He cites as an example a story of London journeymen bookbinders who in the mid-1780s decided that their 14 hour working day was too long and should be shortened. &quot;The bookbinders met in pubs discussing the situation. Later, five of the leaders were arrested and one of them even died in prison before the story went up to King George III who, surprised with the length of working hours, agreed to the world's first reduction in working hours to 12.5 hours a day,&quot; he recounts.Jyrki is fascinated with this period of history and that of the more recent labour movement born in the late 19th century, a time when people found their courage and continued fighting despite being beaten, thrown into prison and even killed.Jyrki believes that we can learn many lessons from the past when considering how to assist unions fighting for their rights in developing countries today. Taking the example of Nordic countries, where the trade union movement developed into its present form within a century, Jyrki underlines that, &quot;unfortunately we don't have the luxury of a hundred years now in developing and emerging-economy countries, here we have to get the results more quickly.&quot;While keen on history, Jyrki is also fond of new technologies and sees their potential in bringing improvements to the IMF. One of his first steps as IMF General Secretary was to restart his account on Facebook in order to communicate with unionists all over the world in an open way. Jyrki believes that Facebook is a tool for IMF trade union work, where groups can be formed and one can share information and direct people to the IMF website for more information. In his address to the IMF Congress, Jyrki stressed that it is &quot;important to review the working methods of the IMF. A dynamic and results-oriented IMF has to be visible, transparent, and offer all affiliates the possibility to influence decision-making both globally and in the regions, and engage affiliates in joint action.&quot;The IMF is not Jyrki's first job with a Global Union Federation. In 1991 he worked for the International Chemical and Energy Workers' Federation as a researcher. Later, in 1995, he became the Energy Officer for the International Chemical, Energy and Mine Workers Federation (ICEM). In 2000 he was Director of Organisation at ICEM. Then in 2001 Jyrki moved back to Helsinki where he worked for Finnish industrial trade unions. In 2003 he was elected General Secretary of Nordic Metal coordinating activities of 14 Nordic (Sweden, Denmark, Finland, Norway and Iceland) trade unions with the European Metalworkers' Federations and the IMF.In 2006 Jyrki was elected as General Secretary of the newly formed trade union federation Nordic IN, coordinating the activities of 22 Nordic unions in three European and three Global Union Federations. From 2005, Jyrki was a substitute member of the IMF Executive Committee and took an active role in the IMF Action Programme committee, elaborating IMF's main policy that gives direction to the work of the organisation and its affiliates for the next four years.Jyrki is married. His wife, Jaana, also a Finn, is working in Sweden for the German company Bosch/Siemens and is a member of the Swedish trade union Unionen. He has a 14 year old daughter, Daniele. Aside from political and labour history, Jyrki's hobbies include philosophy, sports, chess, cooking and music. Find Jyrki on <a href="http://www.facebook.com">Facebook</a> by searching for Jyrki Raina.

Jyrki Tapio Raina (49) was elected as the new IMF General Secretary at the 32nd IMF World Congress in Gothenburg, Sweden in May 2009. During the next four years he will lead one of the oldest Global Union Federations uniting metalworkers all over the world.

Profile of Jyrki Raina Download pdf file with illustrations >>

&quot;We have to get the results more quickly!&quot;

LATIN AMERICA &amp; CARIBBEAN: Representing affiliates in the region, the Regional Office for Latin America and the Caribbean condemns the military coup in Honduras on 28 July against President Manuel Zelaya, against democracy and against the people of our sister country, Honduras. President Manuel Zelaya was democratically elected president, in accordance with the constitution, and has a mandate to govern until January 2010. The military, which kidnapped and expelled President Zelaya from the country, want an end to democracy and have violated the will of the people as expressed through the ballot box.The Regional Office, in a letter signed by the Regional Director, Jorge Almeida, expressed its solidarity with the Honduran people and the social and trade union organisations that are resisting this savage authoritarianism. &quot;We are taking action jointly with the international trade union movement. We call on all democratic governments in the region to defend democratic institutions and the sovereign will of the people by putting pressure on the usurpers of power in our sister republic of Honduras.&quot;We demand the immediate reinstatement of President Manuel Zelaya, the return of democratic institutions and the restoration of constitutional order in Honduras.   Napoleón Vallecillo, of the Federación Nacional de Trabajadores Mineros y Metalurgicos de Honduras ((Miners and Metalworkers Federation of Honduras) says that &quot;all FETRAMIMH affiliates have joined the resistance to the coup.&quot;  He added that the Honduran people are permanently in the streets &quot;demanding the return of President Zelaya and the punishment of those who carried out the coup.&quot;The IMF Regional Coordinator for Mexico and Central America, Gregorio Santana, said that &quot;at no time and in no circumstances is a military coup acceptable.&quot; He added that the alleged violation of the Honduras constitution should be resolved with the President and all the country's institutions, through the democratic system. President Zelaya should be allowed to return.&quot;The IMF Regional Office reiterated its call to affiliates to take action in solidarity with the Honduran people by writing letters or taking other initiatives to demand the immediate reinstatement of President Manuel Zelaya and the return of democratic institutions to Honduras.

The IMF Regional Office demands the immediate reinstatement of President Manuel Zelaya, the return of democratic institutions and the restoration of constitutional order in Honduras.

Affiliates condemn military coup in Honduras

Severe employment declines have affected metalworkers and their communities across all regions of the automotive sector. These have been most devastating in North America, where the crisis first erupted. Hundreds of thousands of automotive workers in the US and Canada have seen their jobs eliminated as scores of assembly and component manufacturing plants shutdown. European workers in many traditional metalworking areas have also experienced large scale employment cutbacks due to consolidations, plant closures and outsourcing, well before the global financial crisis hit. When the crisis did hit, workers across the region were forced to confront additional threats to their jobs and livelihoods. As global demand has slumped, so too has production for export. This has particularly affected workers in countries such as Japan that have a relatively high dependence on shipments of automotive products manufactured for final sale or as component inputs overseas.Workers in non-permanent jobs -- those on temporary and fixed-term contracts and those hired through dispatch labour agencies -- have shouldered a disproportionate burden thus far in the crisis. Automotive manufacturing is among the industries where precarious conditions had spread most, according to an IMF survey completed prior to the crisis. These workers have been the first to lose employment, often without income protection when out of work. Migrant workers face even greater difficulties and insecurities.Such widespread dismissals expose how the sector's employers abuse weak terms of employment and work relationships as &quot;flexibility&quot;. They have shifted responsibility, adjustment costs and risks that should be borne by principal employers onto the backs of workers whose jobs were made precarious. Effects are most pronounced in several Asia-Pacific countries where non-regular jobs came to account for a major share of total employment in the aftermath of the region's 1997 financial crisis. More recently, non-permanent jobs were on the rise in Europe's metal industry, though to a much lesser extent than in Asia.For many permanent workers, hours worked and compensation has declined due to extended plant shutdowns and down-days ranging from weeks to months. Elimination of shifts and reduced line rates has taken place in plants across regions. Paid time-off has been brought forward in some workplaces, while time-banking measures based on annualised hours have been stretched to their limits. Short-work time schemes have been implemented where such benefits are provided by collective agreements and/or government programs covering otherwise lost wages.Due to the prolonged downturn there's an urgent need to extend and strengthen income and social protections for workers. Also essential are effective stimulus measures boosting demand and industrial policies that safeguard employment and utilize productive capacity to meet and improve society's transport-related and manufacturing needs.<table border="0" cellspacing="0" cellpadding="1" align="center"><tbody><tr><td><a href="../index.cfm?c=20065&amp;mwId=20047&amp;l=2">&lt;&lt; back</a></td><td> </td><td><a href="../index.cfm?c=20060&amp;mwId=20047&amp;l=2">beginning</a></td><td> </td><td align="center" valign="middle"><a href="../index.cfm?c=20067&amp;mwId=20047&amp;l=2">forward &gt;&gt;</a></td></tr></tbody></table>

Widespread job loss and working hour reductions

Given past strategies of auto TNCs and the industry's globalized structure, the worldwide economic crisis has caused a dynamic that substantially escalates consolidation pressures. This presents many challenges and potential threats for workers. It is essential that trade unions are fully involved from the outset of any contemplated restructuring to guarantee that decisions represent the broad interests of workers and communities rather than narrow financial interests alone.At the close of 2008, the head of Fiat was widely quoted as saying that over the subsequent two years only a half dozen mass-volume auto companies would remain. While this specific view is not generally held across much of the industry or by many governments, a difficult and challenging process of restructuring and possible integration has begun to unfold involving a number of companies. Preliminary ground work for Fiat and Chrysler to integrate operations has been set in motion. General Motors is undergoing wrenching restructuring affecting workers across nearly every region and particularly in North America and Europe. Challenging issues have arisen for VW and Porsche, as well as for some commercial vehicle manufacturers. Other companies continue to enter into different types of limited forms of partnerships related to design, co-production and parts procurement. Supply chain consolidation is expected to accelerate. Even before the onset of the crisis, assemblers were pushing to reduce the number of direct suppliers while first tier companies tightened their rationalisation of production sites. Vast numbers of jobs are at stake. To avoid further damage, normal credit lines need to be restored and industrial policies implemented that upgrade supply chains and protect workers.<table border="0" cellspacing="0" cellpadding="1" align="center"><tbody><tr><td><a href="../index.cfm?c=20066&amp;mwId=20047&amp;l=2">&lt;&lt; back</a></td><td> </td><td><a href="../index.cfm?c=20060&amp;mwId=20047&amp;l=2">beginning</a></td><td> </td><td align="center" valign="middle"><a href="../index.cfm?c=20068&amp;mwId=20047&amp;l=2">forward &gt;&gt;</a></td></tr></tbody></table>

An International Metalworkers' Federation analysis, shown in the chart over the page, provides a summary of the types of government measures proposed, adopted or implemented for the motor industry in 19 countries, as well as the EU. It is clear that more effective support from governments and commitments by employers are needed to ensure protection of workers and a broad based recovery of the industry. For EU countries, some policies are subject to review by the European Commission. In this regard, the European Metalworkers' Federation has stressed the vital importance of European-level initiatives, and that national-level measures should be consistent with a coherent industrial policy strategy for the sector and thus avoid possibilities for cross-border social dumping. Table: Government policies for the automotive sector (proposed, adopted and/or implemented as of June 2009)<img src="/wp-content/uploads/articles/20098_2.gif" alt="" width="600" height="276" />  Source: press articlesGovernment measures generally are addressing the following objectives:<ul><li>Stimulating motor vehicle demand including incentives to promote the purchase of cleaner new ones in exchange for older less efficient vehicles (shorter to medium-term) </li><li>Protecting employment, income support and skills development (immediate to long-term) </li><li>Addressing company solvency and restoring credit (shorter to medium-term)</li><li>Making progress on cleaner vehicles and fuels (shorter to long-term)</li></ul><table border="0" cellspacing="0" cellpadding="1" align="center"><tbody><tr><td><a href="../index.cfm?c=20067&amp;mwId=20047&amp;l=2">&lt;&lt; back</a></td><td> </td><td><a href="../index.cfm?c=20060&amp;mwId=20047&amp;l=2">beginning</a></td><td> </td><td align="center" valign="middle"><a href="../index.cfm?c=20069&amp;mwId=20047&amp;l=2">forward &gt;&gt;</a></td></tr></tbody></table>

Industrial policies and government measures

Workers in component manufacturing and ancillary companies confront even more intense restructuring pressures than those that generally exist in assembly operations. Automakers' use of just-in-time systems to cut costs and push efficiency gains means management keeps inventories tight and buffers lean to minimize working capital and increase returns. As final vehicle demand has slumped steeply, orders for auto parts have dropped in tandem. &quot;Demand-pull&quot; production systems more rapidly transmit effects of curtailed final demand across the whole value chain.For workers at suppliers large and small, employers have pushed to slash jobs, cut hours and consolidate plants. The further down the value chain, the less secure the terms of employment and the more strenuous the conditions of work, meaning the impacts of the crisis become harsher. At small and medium enterprises (SMEs) populating subordinate tiers of production chains, workers are least likely to benefit from social protections or collective agreements due to lower levels of union representation.Strategies of assemblers and major first-tier component companies have propelled supply chain consolidation in an incessant cost reduction drive to boost margins. Continued cuts in numbers of direct suppliers and a squeeze created by passing down costs while making contracts conditional on ongoing price reductions have fuelled a painful shakeout. The crisis-induced dive in parts orders combined with restricted credit availability has pushed many companies to the brink. Assemblers have been forced to extend to their suppliers financial assistance for working capital and in some cases to restore prior price concessions to keep them afloat. In the face of this, metalworkers and their unions have fought back to defend what is rightfully due to workers at companies such as Visteon, Delphi, Continental, Bosch and Valeo, among many others.<table border="0" cellspacing="0" cellpadding="1" align="center"><tbody><tr><td><a href="../index.cfm?c=20063&amp;mwId=20047&amp;l=2">&lt;&lt; back</a></td><td> </td><td><a href="../index.cfm?c=20060&amp;mwId=20047&amp;l=2">beginning</a></td><td> </td><td align="center" valign="middle"><a href="../index.cfm?c=20065&amp;mwId=20047&amp;l=2">forward &gt;&gt;</a></td></tr></tbody></table>

Effects transfer down the supply chain

As households and company fleets cut or delay purchases of vehicles, knock-on effects for workers in other metalworking industries have occurred. Steel and aluminium, mechanical engineering, electronics, and metal mining sectors have all seen falling demand from the global downturn, with both manual and non-manual workers affected. <ul><li>Global steel output has declined sharply from weakness in automotive, construction and household durable goods sectors. Orders from the motor vehicle industry account for about 13 per cent of global finished steel output with about two tons of steel on average used per motor vehicle built. </li><li>Machine tools and bearings were among the first mechanical engineering subsectors affected. The German-based mechanical engineering association VDMA reports that 30 per cent of Germany's machine tool production is for the automobile industry including component suppliers, citing the auto slump as a significant factor behind declining tool orders.</li><li>In electronics, companies such as Freescale, the leading supplier of semiconductors to the motor sector, and Infineon, Europe's largest, have cut working hours in automotive-related activities.</li><li>For metals, companies in South Africa have announced retrenchments in the mining of platinum, an essential material in automotive catalysts used for vehicle emission control technologies.</li></ul>Industrial inter-connections across branches of this kind and magnitude indicate the extent to which motor vehicle production has cascading effects across metalworking branches highlighting the sector's strategic position in manufacturing.<table border="0" cellspacing="0" cellpadding="1" align="center"><tbody><tr><td><a href="../index.cfm?c=20064&amp;mwId=20047&amp;l=2">&lt;&lt; back</a></td><td> </td><td><a href="../index.cfm?c=20060&amp;mwId=20047&amp;l=2">beginning</a></td><td> </td><td align="center" valign="middle"><a href="../index.cfm?c=20066&amp;mwId=20047&amp;l=2">forward &gt;&gt;</a></td></tr></tbody></table>

Metalworkers across the automotive industry are experiencing restructuring impacts as great as any time in history, glaringly magnified by the global economic crisis. The process of automotive transnational companies' (TNCs) globalisation has led the world's productive capacity to outpace growth in demand. That demand has been constrained by insufficient purchasing power and unequal development, and is now dramatically undercut by consequences of the financial meltdown.In the two decades preceding the crisis, the industry's map and its workforce encountered unprecedented change as emergent countries became fully incorporated into the global market system. Throughout that period, employers continually pushed cost cutting measures. Not only through increased productivity of workers and more efficient methods to design and build vehicles but also through outsourcing, subcontracting and the substituting of precarious for permanent work.While automotive TNCs prioritize adoption of standardized production and quality control systems meeting &quot;global best practices&quot;, the upward harmonization of terms and conditions of work, health and safety and industrial relations have typically been treated differently. There has been a growing divergence between productivity gains on the one hand, and improvements in wages and conditions for many workers across the automotive global value chain on the other. TNCs that have established industrial relations with unions in some countries fail to respect worker and trade union rights in others.Fuelling and facilitating this dynamic over recent decades has been a mix of market fundamentalist policies, the financialisation of economic activity and rules of international trade and investment favoured by TNCs. These have tended to exert a general downward pressure on wages, conditions and social protections in many parts of the world. Income and wealth inequalities have reached extremes not seen since the 1920s, moving the world in a direction opposite to authentic sustainable development. In the same vein, the global environmental challenge to produce employment-enhancing cleaner vehicle and fuel technologies as well as revitalize transportation systems has too often been given a back seat.<table border="0" cellspacing="0" cellpadding="1" align="center"><tbody><tr><td><a href="../index.cfm?c=2006o&amp;mwId=20047&amp;l=2">&lt;&lt; back</a></td><td> </td><td align="center" valign="middle"><a href="../index.cfm?c=20062&amp;mwId=20047&amp;l=2">forward &gt;&gt;</a></td></tr></tbody></table>

Previously existingrestructuring pressures

Forecasts for what lies ahead for the global economy point to more difficult times on the horizon and therefore ongoing struggles for workers, trade unions and social allies. The World Bank projects the global economy will shrink by an alarming three per cent this year. The sharp and steep deceleration of worldwide economic activity from growth rates of 1.9 per cent in 2008 and 3.8 per cent at the cycle's peak in 2007 has led to the most widespread economic dislocation since the Great Depression as households and businesses throttle back on consumption and investment.Despite energy and commodity prices reversing course from their historic highs reached last year, workers and families continue to struggle with badly strained budgets. Downward pressures on purchasing power have accelerated as companies attempt to retrench workers, cut hours and reduce compensation, which further undermines demand and exacerbates insecurities. While impacts vary across regions and companies, ultimately all workers in the sector are affected directly or indirectly. A high degree of uncertainty exists on how severe and prolonged the downturn will be, with deflationary trends already present in some countries.While governments have injected massive amounts of capital into banks and the financial sector, loans for many enterprises and households remain difficult to access or have been blocked altogether. The financial crisis has meant cash-strapped families can't afford to buy cars while lenders restrict credit lines for working capital and deny loans to companies. This comes at a time when companies' working capital needs increase as inventories accumulate, payment schedules stretch out and capital turnover slows. The combined effects of the downturn and the credit freeze have strained the solvency of companies and contributed to potentially many more bankruptcies, putting countless numbers of workers and their families in jeopardy.<table border="0" cellspacing="0" cellpadding="1" align="center"><tbody><tr><td><a href="../index.cfm?c=20061&amp;mwId=20047&amp;l=2">&lt;&lt; back</a></td><td> </td><td><a href="../index.cfm?c=20060&amp;mwId=20047&amp;l=2">beginning</a></td><td> </td><td align="center" valign="middle"><a href="../index.cfm?c=20063&amp;mwId=20047&amp;l=2">forward &gt;&gt;</a></td></tr></tbody></table>

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