Indonesian Workers Join Global Campaign Against Vale’s Conduct

JAKARTA, 16 Nov 2009 – Leaders of the International Federation of Chemical, Energy, Mine and General Workers’ Unions (ICEM) from Indonesia, Brazil and Canada, representing workers at Vale and Vale Inco (majority owner of PT Inco), have signed a Joint Statement in Soroako, South Sulawesi, charging the Brazilian-based global mining company disregards the needs and rights of its workers and the communities in which it operates.

The Joint Statement takes aim at Vale’s policy of reducing employment levels and its policy of using contract employees rather than permanent employees.

In Canada, Vale provoked a strike of 3,500 mining workers in July of this year. After more than 120 days on strike the United Steelworkers continues to resolutely reject Vale’s demands for reductions in the workers’ collective bargaining agreement and pension plan, and a reduction in the profit sharing agreement (which is part of the collective agreement).

“The Indonesian union expresses solidarity with striking Vale workers in Canada, and calls on Vale to return to the bargaining table,” Sjaiful D.P., President of the FSP-KEP, said in the Joint Statement.

Andi Karman, President of SP-KEP Soroako, which represents workers at the PT Inco operation, said: “We understand that the fight in Canada is also our struggle because if Vale succeeds in its attack on workers in Canada, corporate management may believe that it can also try to reduce social benefits in our CLA here in Indonesia.”

The SP-KEP also had to strike against Vale Inco for 11 days in 2007 in order to make sure the company fulfilled its obligations under the collective labour agreement.

The Joint Statement is the outcome of a week-long visit of an international delegation of trade unionists to Jakarta and Soroako, South Sulawesi, which was hosted by the FSP-KEP. The delegation included Joe Drexler of the ICEM, which represents 20 million workers worldwide; Sergio Guerra of the Brazilian union Sindimetal-ES, CNM-CUT; and Tim Kiley, Nick Larochelle and Doug Olthuis, three Canadians from the United Steelworkers.

The ICEM “is fully engaged in the Vale corporate campaign because mining companies around the world are watching the Vale strike closely,” Drexler said. “A positive resolution of the strike in Canada for Canadian workers is very important for all ICEM unions because it will send a strong message that attacks on the compensation and rights of miners’ and on their communities will be fiercely resisted. A defeat for Canadian workers will have negative implications in mining globally.”

Sergio Guerra said “this visit is very important for the Brazilian Vale unions, not only for reasons of international solidarity, but also because of the first-hand information we have gained from the union and community in Soroako. We have heard that Vale is not doing enough to provide stable, secure, well-paid employment in Soroako. We have heard that Vale management fails to communicate. Everywhere we went we heard the same thing – communication was better and management more responsive under Inco, before the Vale purchase.”

Tim Kiley, chief steward, United Steelworkers Local 6500, said that “the visit of this delegation is part of a global campaign against Vale. Representatives from our union, the United Steelworkers, have travelled to Brazil, Australia, New Caledonia, Australia, Germany, Sweden, and the United Kingdom. We are determined to protect our rights and increase the pressure on Vale.”

Kiley adds that “we are deeply impressed with the welcome we received from the SP-KEP in Indonesia, and we are extremely grateful for the high level of support we are receiving from them for our strike.”

Nick Larochelle, another of the striking USW member, explained that “Vale continues to be profitable even during the global economic downturn and Vale’s demands to reduce workers’ rights, pensions and profit sharing are completely unnecessary to the viability of the company and absolutely unfair to the workers that have built the company in Canada.”

Doug Olthuis, of the United Steelworkers, noted that “it was important for us to see how closely the community of Soroako works together with the KEP, and how strongly the community supports the KEP in order to make gains for the community and the workers.”

Olthuis also said that “one of the most appalling stories we heard in Soroako came from the Dongi people who claim that they never sold or ceded their traditional land to PT Inco for the nickel mine and facilities. Today the Dongi live in very poor conditions. Vale does not acknowledge that, as the new owner of PT Inco, it has a responsibility to correct historic injustices, and Vale refuses to adequately address the Dongi claims.”