originally appeared in USA Today:
The strike that crippled two of the nation's busiest shipping ports was settled this week, but the offshoring of service jobs — is expected to continue to grow as a trend across the USA.
The eight-day walkout by clerical workers at the ports of Los Angeles and Long Beach largely centered on the outsourcing of their jobs overseas and elsewhere in the U.S., says a spokesman for the International Longshore and Warehouse Union. Shippers denied outsourcing jobs, but the tentative settlement restricts the practice, according to the Associated Press.
Yet service companies have been sending jobs abroad in large numbers the past decade to cut labor costs — a trend that accelerated in the recession and is expected to continue the next few years before slowing after 2016. About 663,000 large-company jobs in information technology, human resources, finance and purchasing — the category that includes the port workers — have been offshored since 2002, according to The Hackett Group.
By 2016, the consulting firm estimates, another 375,000 jobs in the sectors will be moved abroad. More than a third of the U.S. jobs in those industries in 2002 will have moved offshore by 2016.
Most workers are employed directly by companies that previously used U.S. staffers, though some work for outsourcing firms. Hackett studied companies with at least $1 billion in annual revenue, noting they represent about 75% of the offshoring market.
India is the largest offshoring center. Service jobs also have gone to eastern Europe, the Philippines, China and Mexico.
In other sectors, initially low-level jobs were offshored, such as handling payroll or tracking purchase orders. Employers typically can cut labor costs by about 75%. In recent years, a growing number of higher-level jobs have moved overseas, such as benefits analysis and vendor management, though the cost savings for offshoring those positions is only about 25%.The trend took off after companies began contracting with programmers in India to help with the massive preparations for the Y2K computer bug in 2000, according to Hackett's research director.
He also indicated organizations now feel more comfortable moving up the value chain, noting, for example, that India's education system is improving and turning out top-notch job candidates.
Since 2005, legal services such as document review, contract drafting and regulatory communication increasingly have been offshored, particularly to India, according to the managing director of Pangea3, a legal outsourcing firm. Indian attorneys handle work that in the U.S. is sometimes done by paralegals and at a 40% to 60% cost savings, he says.
Several thousand legal jobs have been offshored, estimates the founder of The LPO Program, a legal consulting firm.
In the current environment, it is more important than ever that … the support we provide to clients adds value without adding unnecessary cost, law firm Clifford Chance said in a statement.
Once services are offshored, there's little chance they'll come back to the U.S. according to The Hackett Group. By contrast, manufacturers have returned some production to the U.S. recently, largely because of a narrowing wage gap between the U.S. and China, rising shipping costs and falling U.S. energy costs — factors that generally haven't affected service jobs.
One exception: call-center jobs. About 500,000 were offshored from 2006 to 2010, according to the Communications Workers of America. Many have returned to the U.S. the last few years because of cultural gaps between representatives and customers that hurt sales, according to the senior partner of Boston Consulting Group.
Yet CWA spokesperson called the jobs that have come back a drop in the bucket.
Showing posts with label Strikes. Show all posts
Showing posts with label Strikes. Show all posts
Friday, December 14, 2012
Thursday, December 13, 2012
Port strike may hit holiday sales
originally appeared in USA Today:
A strike has crippled two California shipping ports and if it continues, could leave some retailers with sparse shelves toward the end of the holiday shopping season.
About 450 clerical workers represented by the International Longshore and Warehouse Union went on strike a week ago at the ports of Los Angeles and Long Beach. But the work stoppage quickly became more serious as an additional 10,000 port workers refused to cross the striking workers' picket lines.
Despite agreeing to federal mediation Tuesday, the Local 63 Office Clerical Unit says it plans to continue its strike. It has accused the ports' managing group, the Harbor Employers Association, of outsourcing jobs.
The strike has essentially shut down 10 of 14 terminals at the two ports, backing up cargo and delaying shipments.
The majority of our members have been impacted, cargo that's already arrived is just sitting at the port. Right now there isn't a whole lot they can do, according to the vice president of supply chain and customs policy for the National Retail Federation.
The NRF, which has more than 9,000 members, is still working to assess the economic impact. The NRF notes in one of its letters to President Obama calling for an intervention that a 10-day West Coast ports lockout in 2002 cost the economy an estimated $1 billion a day.
According to the Port of Long Beach, the closed terminals have led to more than $3 billion worth of goods sitting on the docks of both affected ports, causing backups and delaying trucks and trains.
The executive director for the Port of Long Beach indicates all of the people in the supply chain, or most of them, have stopped working because of this, (they) have approximately 15 ocean vessels outside at anchor that are waiting for a resolution to this labor problem.
While most retailers already have the majority of their shipments for the holiday season, the work stoppage could affect merchandise coming in just before Christmas.
This time now is when retailers do the big last push to get products to store shelves according to the executive director, so some of that product is currently being delayed.
Retailers faced a similar situation in September, when threats of a strike by the International Longshoremen's Association along the East Coast had some acting on contingency plans and rerouting shipments to the West Coast to avoid backups during the holiday season.
Those workers returned to the docks but are still in negotiations with the United States Maritime Alliance.
A Harbor Employers Association spokesman denies accusations that the organization is outsourcing jobs. The staffing issue is over whether to fill all jobs that become vacant with full-time workers.
The spokesman indicated that they say (when) three people have retired; we want their jobs replaced, he says. We want to make sure the people who occupy those chairs have work to do, as opposed to just occupying chairs. The bottom line is the cargo volumes are not what they used to be.
Sunday, October 17, 2010
Chicago Hilton Workers Start 3-Day Strike
Associated Press
Hundreds of Hilton Chicago Hotel workers started a three-day strike Saturday that union officials say is in protest of the hotel chain's efforts to "lock workers into cheap recession contracts."
Unite Here Local 1 spokeswoman Annemarie Strassel told The Associated Press workers began striking in Chicago early Saturday and won't return to their jobs until early Tuesday. The union represents about 600 workers at the Hilton Chicago downtown.
Strassel said the employees have joined striking workers in San Francisco, who went out Wednesday, and in Honolulu, who went out Thursday. The Chicago workers include housekeepers, dishwashers, cooks, bell staff and food servers.
"Hilton wants to lock workers into cheap recession contracts even as the hotels rebound," she said early Sunday in a phone interview. "Workers simply want a share in the recovery."
The AP could not immediately reach hotel officials. But Hilton Chicago told the Chicago Tribune that the hotel is "operating as normal."
"Union tactics such as work stoppages and demonstrations will do nothing to bring us closer to a new contract," Hilton said in a statement. "They are harmful to employees, to the hospitality industry and to the City of Chicago."
Hilton said the wages and benefits its workers receive are "competitive" and that it offered wage increases and other advantages during negotiations.
More than 8,000 Chicago area hotel workers, including ones at five Hiltons, saw their contracts expire in August 2009. The sides have been unable to reach a deal.
Strassel said the strike is only affecting the Hilton Chicago, which is both owned and operated by Hilton Worldwide. One of the world's largest buyout firms, Blackstone Group LP, owns Hilton Worldwide.
"We've been calling this strike a taxpayers' strike because Hilton finagled $180 million in bailout funds when Hilton Worldwide was able to write off debt for the federal reserve that it owed American taxpayers," Strassel said.
Workers are picketing in shifts around the clock, carrying signs that read "Unite Here!" and "Taxpayers on Strike."
In Honolulu, members of the Unite Here Local 5 are striking for five days at the Hilton Hawaiian Village. A union contract there expired June 30.
Unite Here Local 1 spokeswoman Annemarie Strassel told The Associated Press workers began striking in Chicago early Saturday and won't return to their jobs until early Tuesday. The union represents about 600 workers at the Hilton Chicago downtown.
Strassel said the employees have joined striking workers in San Francisco, who went out Wednesday, and in Honolulu, who went out Thursday. The Chicago workers include housekeepers, dishwashers, cooks, bell staff and food servers.
"Hilton wants to lock workers into cheap recession contracts even as the hotels rebound," she said early Sunday in a phone interview. "Workers simply want a share in the recovery."
The AP could not immediately reach hotel officials. But Hilton Chicago told the Chicago Tribune that the hotel is "operating as normal."
"Union tactics such as work stoppages and demonstrations will do nothing to bring us closer to a new contract," Hilton said in a statement. "They are harmful to employees, to the hospitality industry and to the City of Chicago."
Hilton said the wages and benefits its workers receive are "competitive" and that it offered wage increases and other advantages during negotiations.
More than 8,000 Chicago area hotel workers, including ones at five Hiltons, saw their contracts expire in August 2009. The sides have been unable to reach a deal.
Strassel said the strike is only affecting the Hilton Chicago, which is both owned and operated by Hilton Worldwide. One of the world's largest buyout firms, Blackstone Group LP, owns Hilton Worldwide.
"We've been calling this strike a taxpayers' strike because Hilton finagled $180 million in bailout funds when Hilton Worldwide was able to write off debt for the federal reserve that it owed American taxpayers," Strassel said.
Workers are picketing in shifts around the clock, carrying signs that read "Unite Here!" and "Taxpayers on Strike."
In Honolulu, members of the Unite Here Local 5 are striking for five days at the Hilton Hawaiian Village. A union contract there expired June 30.
Friday, October 15, 2010
Nurses strike gets under way at Children's Hospital Oakland
Mercury News
About 100 nurses picketed Tuesday morning outside Children's Hospital Oakland in the opening salvo of a strike planned to last three days and involve nearly 800 union members.
The hospital remained mostly operational, with 125 contract nurses brought in to work 12-hour shifts. A handful of elective surgeries were postponed, but otherwise patient services were at "near normal" levels, hospital Chief Nursing Officer Nancy Shibata said.
Hospital officials declined to say how much the strike accommodations would cost, but union officials estimated the figure to be $1 million, including pay, housing and meals for the temporary workers.
The primary point of dispute between the hospital and the nurses is health care benefits. Nurses union officials are rejecting what they call "take-aways" that could cost members up to $4,000 a year.
Costs for the hospital to insure its employees, meanwhile, have risen $17 million, or 80 percent, in the last five years, Shibata said, with premiums up $5.5 million in the last year alone in California health insurance quotes.
The California Nurses Association is arguing that as health care providers, nurses know better than anyone how important coverage is. With several local unions being forced to make health care concessions in recent contracts, "It's up to us to draw a line and make that stop," said Susan Segal, who has worked at the hospital more than two decades and was elected to represent the union in negotiations.
"To begin with, we're nurses," Segal said. "We understand the impact on people's life that health care has. People need it, and traditionally, nurses have not had to contribute (to their premiums)."
Nurses at Children's Hospital are already behind industry trends, Segal said, because most nurses elsewhere get free treatment at the hospitals where they work, an option not available to those who work in a center that serves only children.
Shibata, however, said that while nurses in the rest of the country have endured furloughs and pay cuts, Children's Hospital nurses received raises of 5 percent and 6 percent each of the last three years under a contract they signed before the recession began. Beyond that, she added, federal health care reform, while offering the benefit of keeping more people covered under more situations, has proved more expensive to the hospital's bottom line.
"Insurance is covering dependents until they're 27," she said. "And there's no caps on treating chronic illness. Those may be good things, but they're not free."
Negotiations began in May and the existing contract between the hospital and the union expired in July. Officials said teams from the two sides have met almost 30 times to negotiate with health care being the sticking point.
The union last offered the hospital a contract proposal Sept. 29. The hospital had neither accepted the deal nor offered a counter when the union announced its strike plans two days later.
When the strike ends Thursday, the hospital will "welcome our employees back," Shibata said. The next negotiating step will be for the hospital to either accept the union's plan or offer a new proposal. Shibata said a new proposal is already in the works and should be finalized soon.
"We'll look at anything they propose," union negotiator Martha Kuhl said. "It doesn't mean we'll accept it, but we'll look at it."
The hospital remained mostly operational, with 125 contract nurses brought in to work 12-hour shifts. A handful of elective surgeries were postponed, but otherwise patient services were at "near normal" levels, hospital Chief Nursing Officer Nancy Shibata said.
Hospital officials declined to say how much the strike accommodations would cost, but union officials estimated the figure to be $1 million, including pay, housing and meals for the temporary workers.
The primary point of dispute between the hospital and the nurses is health care benefits. Nurses union officials are rejecting what they call "take-aways" that could cost members up to $4,000 a year.
Costs for the hospital to insure its employees, meanwhile, have risen $17 million, or 80 percent, in the last five years, Shibata said, with premiums up $5.5 million in the last year alone in California health insurance quotes.
The California Nurses Association is arguing that as health care providers, nurses know better than anyone how important coverage is. With several local unions being forced to make health care concessions in recent contracts, "It's up to us to draw a line and make that stop," said Susan Segal, who has worked at the hospital more than two decades and was elected to represent the union in negotiations.
"To begin with, we're nurses," Segal said. "We understand the impact on people's life that health care has. People need it, and traditionally, nurses have not had to contribute (to their premiums)."
Nurses at Children's Hospital are already behind industry trends, Segal said, because most nurses elsewhere get free treatment at the hospitals where they work, an option not available to those who work in a center that serves only children.
Shibata, however, said that while nurses in the rest of the country have endured furloughs and pay cuts, Children's Hospital nurses received raises of 5 percent and 6 percent each of the last three years under a contract they signed before the recession began. Beyond that, she added, federal health care reform, while offering the benefit of keeping more people covered under more situations, has proved more expensive to the hospital's bottom line.
"Insurance is covering dependents until they're 27," she said. "And there's no caps on treating chronic illness. Those may be good things, but they're not free."
Negotiations began in May and the existing contract between the hospital and the union expired in July. Officials said teams from the two sides have met almost 30 times to negotiate with health care being the sticking point.
The union last offered the hospital a contract proposal Sept. 29. The hospital had neither accepted the deal nor offered a counter when the union announced its strike plans two days later.
When the strike ends Thursday, the hospital will "welcome our employees back," Shibata said. The next negotiating step will be for the hospital to either accept the union's plan or offer a new proposal. Shibata said a new proposal is already in the works and should be finalized soon.
"We'll look at anything they propose," union negotiator Martha Kuhl said. "It doesn't mean we'll accept it, but we'll look at it."
Tuesday, June 29, 2010
Masked Protesters Clash with Greek Police
Associated Press
Dozens of masked youths clashed with police at a union protest Tuesday in Athens during the country's fifth general strike this year against the cash-strapped government's planned pension and labor reforms.
Riot police fired tear gas and stun grenades to disperse troublemakers who threw chunks of marble smashed off metro station entrances and set rubbish bins on fire. Running clashes continued along a major avenue - lined with shuttered shops and banks - as rioters armed with wooden clubs made repeated sallies against police.
However, Tuesday's clashes were far more muted than the riots that erupted during a previous general strike on May 5, when three people died after becoming trapped in a bank torched by rioters.
Riot police chased demonstrators into a main subway station. An AP photographer saw police detain one young man in a metro carriage, spraying him with pepper spray.
The demonstration ended soon after, and rioters melted away towards the central Exarcheia district - a traditional anarchist hangout.
No arrests were immediately reported, but AP reporters saw at least six people being detained. One motorcycle policeman was injured by a chunk of marble thrown at him, while rioters smashed bus stops and phone booths.
The violence came as some 10,000 people took part in a demonstration organized by the country's two main labor unions and fringe left-wing groups. An earlier separate march by some 6,000 members of the Communist Party-backed PAME union ended peacefully.
Tuesday's strike shut down public services, disrupted transport, left hospitals operating on emergency staff and pulled all news broadcasts off the air. The country's airports, however, remained open, and international flights were operating normally although nearly 100 domestic flights were canceled.
Unions fiercely oppose draft legislation submitted to parliament last week that would increase retirement ages and make it cheaper for companies to fire workers. The measures - which include raising women's retirement age to 65 to match those of men and require 40 years of social security contributions for a full pension - are aimed at fixing the country's debt crisis, which has shaken the entire euro zone.
"They've declared war on you, fight back!" PAME demonstrators chanted as they walked down a major avenue in the center of the capital.
Greece is caught in a major debt and deficit crisis; it avoided bankruptcy last month only after receiving the first installment of a €110 billion ($136 billion) emergency loan package from the European Union and the International Monetary Fund.
In return, Athens passed painful austerity measures, cutting pensions and salaries and raising consumer taxes, and is now pushing through labor and social security reforms.
Parliament is to start discussing the proposed reforms Tuesday, in a debate expected to last more than a week. Despite opposition from several of its own lawmakers, the center-left government - which holds a seven-seat majority in the 300-member house - is expected to win the final vote.
Tension mounted once more in the country's main port of Piraeus early Tuesday morning, where hundreds of PAME demonstrators attempted to prevent tourists and locals from boarding ferries to Aegean islands, even though a court had declared seamen's participation in the strike illegal.
"They want to put us in a straitjacket so we work for free all our lives so that some can have their wealth and get very rich at our expense," said Sotiris Poulikogiannis, a protester in Piraeus. "We don't accept this. Day by day we'll grow stronger and more aware of how to overturn this situation."
The Civil Protection Ministry said all ships scheduled to leave in the morning did set sail, with about 350 passengers. However, about 50-100 people didn't manage to board their ferries as strikers prevented them from entering the port. Authorities said their tickets would also be valid Wednesday.
Another four ships that were to sail for Crete and the Cycladic islands in the early afternoon had informed passengers that they would depart at midnight, the ministry said.
A similar strike by two seamen's unions last week - which was also declared illegal - left thousands of travelers stranded in Piraeus for a day. Shipping companies and officials in Greece's vital tourism industry strongly criticized the government for not taking action to stop the strikers.
Riot police fired tear gas and stun grenades to disperse troublemakers who threw chunks of marble smashed off metro station entrances and set rubbish bins on fire. Running clashes continued along a major avenue - lined with shuttered shops and banks - as rioters armed with wooden clubs made repeated sallies against police.
However, Tuesday's clashes were far more muted than the riots that erupted during a previous general strike on May 5, when three people died after becoming trapped in a bank torched by rioters.
Riot police chased demonstrators into a main subway station. An AP photographer saw police detain one young man in a metro carriage, spraying him with pepper spray.
The demonstration ended soon after, and rioters melted away towards the central Exarcheia district - a traditional anarchist hangout.
No arrests were immediately reported, but AP reporters saw at least six people being detained. One motorcycle policeman was injured by a chunk of marble thrown at him, while rioters smashed bus stops and phone booths.
The violence came as some 10,000 people took part in a demonstration organized by the country's two main labor unions and fringe left-wing groups. An earlier separate march by some 6,000 members of the Communist Party-backed PAME union ended peacefully.
Tuesday's strike shut down public services, disrupted transport, left hospitals operating on emergency staff and pulled all news broadcasts off the air. The country's airports, however, remained open, and international flights were operating normally although nearly 100 domestic flights were canceled.
Unions fiercely oppose draft legislation submitted to parliament last week that would increase retirement ages and make it cheaper for companies to fire workers. The measures - which include raising women's retirement age to 65 to match those of men and require 40 years of social security contributions for a full pension - are aimed at fixing the country's debt crisis, which has shaken the entire euro zone.
"They've declared war on you, fight back!" PAME demonstrators chanted as they walked down a major avenue in the center of the capital.
Greece is caught in a major debt and deficit crisis; it avoided bankruptcy last month only after receiving the first installment of a €110 billion ($136 billion) emergency loan package from the European Union and the International Monetary Fund.
In return, Athens passed painful austerity measures, cutting pensions and salaries and raising consumer taxes, and is now pushing through labor and social security reforms.
Parliament is to start discussing the proposed reforms Tuesday, in a debate expected to last more than a week. Despite opposition from several of its own lawmakers, the center-left government - which holds a seven-seat majority in the 300-member house - is expected to win the final vote.
Tension mounted once more in the country's main port of Piraeus early Tuesday morning, where hundreds of PAME demonstrators attempted to prevent tourists and locals from boarding ferries to Aegean islands, even though a court had declared seamen's participation in the strike illegal.
"They want to put us in a straitjacket so we work for free all our lives so that some can have their wealth and get very rich at our expense," said Sotiris Poulikogiannis, a protester in Piraeus. "We don't accept this. Day by day we'll grow stronger and more aware of how to overturn this situation."
The Civil Protection Ministry said all ships scheduled to leave in the morning did set sail, with about 350 passengers. However, about 50-100 people didn't manage to board their ferries as strikers prevented them from entering the port. Authorities said their tickets would also be valid Wednesday.
Another four ships that were to sail for Crete and the Cycladic islands in the early afternoon had informed passengers that they would depart at midnight, the ministry said.
A similar strike by two seamen's unions last week - which was also declared illegal - left thousands of travelers stranded in Piraeus for a day. Shipping companies and officials in Greece's vital tourism industry strongly criticized the government for not taking action to stop the strikers.
Thursday, June 10, 2010
Labor Disputes Spread in China
NY Times
Striking workers outside a Honda factory in Zhongshan, China on Thursday.
HONG KONG — Scattered strikes have started to ripple into Chinese provinces previously untouched by the recent labor unrest, while striking workers at a giant Honda auto parts factory here in southeastern China said they were ready for a possible showdown on Friday.
There were fresh reports on Thursday of strikes at foreign-owned factories in at least five other cities. But all of these strikes appeared to have ended quickly as managers, faced with an acute labor shortage, sought to address workers’ demands.
Chinese-owned companies tend not to disclose when strikes have occurred, and it is not clear how many strikes have taken place in recent days at these businesses.
The demands of striking workers have been overwhelmingly economic, mainly for sharp increases in pay. But while there has been no sign of any political demands, the work stoppages have potential political overtones as well.
Large groups of workers filled a lane next to a muddy canal in front of the Honda auto parts factory here on Thursday afternoon and criticized not just the company but also the local government for supporting the company. The workers said that large numbers of the police had been positioned in the factory on Wednesday and Thursday in an attempt to intimidate them, and added that their resolve to remain on strike had not changed.
Workers described an organizational structure that seemed unusually democratic for China. Each factory department’s workers gathered, discussed who would be their most persuasive representative and then selected that individual to represent them on a factorywide council that has held negotiations with management, they said.
Large groups of workers repeatedly gathered around a foreign reporter even though clean-cut men in crisp shirts, probably plainclothesmen, were hovering nearby. The workers, who insisted on anonymity because of lingering concerns about retaliation, said that a company manager had announced over loudspeakers late Thursday afternoon that all workers would be asked on Friday morning to sign a new contract and would be dismissed if they failed to do so.
Asked if they would sign, the workers replied with a chorus of “no”, and said that they would gather outside the factory gates on Friday morning to express their displeasure. After going on strike on Wednesday morning, the workers have marched around inside the factory shouting slogans through the day on Wednesday and Thursday, before going home to cramped apartments in nearby buildings each evening.
The Chinese government strongly discourages large outdoor protests, and it is unclear how the local authorities would respond to one at the factory on Friday morning.
The workers voiced skepticism that the company would meet their demands, mainly an 89 percent increase in their pay, currently 900 renminbi a month, or $132.
Workers said that they had read news reports on the Internet that Honda had already granted pay raises of 500 renminbi a month in settling other strikes. Honda has not confirmed the percentage, while indicating it was large.
A municipal official standing with a group of private security guards outside the factory said that there was no evidence that Honda had broken any employment laws. The workers “just want more money, they’re inspired by the other Honda strikes,” said the official, who insisted on anonymity.
A Honda spokesman declined to comment on the details of the strike in Zhongshan.
The Chinese authorities have allowed some media coverage in the past two weeks of labor unrest, while Li Keqiang, the deputy prime minister and the heir apparent to Prime Minister Wen Jiabao, voiced support early this week for higher wages. The government even allowed national television coverage for two days of the strike at the Honda transmission factory two weeks ago, before abruptly barring further domestic media coverage.
But there have been signs lately of a more restrictive attitude. Workers here complained that when they posted comments on the strike here on the Web sites of Baidu, a big Chinese Internet company, the comments were quickly expunged.
The workers also described seeing at least two Chinese reporters politely escorted away by the police when they tried to cover the strike Wednesday.
The strike started Wednesday morning when a woman employee showed up with her identity card improperly attached to her shirt and was denied entry by a security guard. The women criticized the guard, who responded by shoving her to the ground, the workers said.
The workers provided a copy of what they said was a flier distributed by management Thursday morning. The flier offered an increase of 100 renminbi a month for workers’ food and housing allowances, which are currently 300 renminbi a month.
But the flier did not include any increase in base pay, and said that the woman involved in the altercation with the guard had been adequately compensated by the company with a payment of 10 renminbi.
Many workers said that a strike for higher wages was inevitable even if the woman had not been pushed, and that the incident was only the final spark for a walkout.
Brother Industries of Japan said that strikes had stopped work for the past week at two sewing machine factories in Xi’an in central China’s Shaanxi Province. Production resumed Thursday morning after what Zhao Wei, the president of the government-approved union at the factories, described as “concessions” by the company; he refused to be more specific and the company said that negotiations were continuing.
There were reports Thursday as well of strikes at several Taiwanese-owned factories. These included a sporting goods factory in Jiangxi Province in east-central China, a liquid crystal display components factory in Shanghai, a plastic factory at another city near Shanghai, and an audio components factory across the Pearl River from Zhongzhan in Shenzhen.
Honda has already reached settlements in the past two weeks at a transmission factory and an exhaust factory in Foshan, about two hours’ drive northwest of Zhongshan.
The latest strike to close a Honda supplier involves 1,700 workers who have stopped work at a sprawling, two-story factory next to a muddy canal lined by imported eucalyptus trees in Zhongshan. The factory makes rear and side mirrors, door locks and a wide range of other auto parts for Honda assembly plants all over the world, and the strike by its workers is beginning to raise larger issues for Honda, for the city of Zhongshan and for China.
The factory is 65 percent owned by Honda Lock, a wholly owned subsidiary of Honda, and 35 percent owned by a local Chinese partner, said Takayuki Fujii, a Honda spokesman in Beijing.
There were fresh reports on Thursday of strikes at foreign-owned factories in at least five other cities. But all of these strikes appeared to have ended quickly as managers, faced with an acute labor shortage, sought to address workers’ demands.
Chinese-owned companies tend not to disclose when strikes have occurred, and it is not clear how many strikes have taken place in recent days at these businesses.
The demands of striking workers have been overwhelmingly economic, mainly for sharp increases in pay. But while there has been no sign of any political demands, the work stoppages have potential political overtones as well.
Large groups of workers filled a lane next to a muddy canal in front of the Honda auto parts factory here on Thursday afternoon and criticized not just the company but also the local government for supporting the company. The workers said that large numbers of the police had been positioned in the factory on Wednesday and Thursday in an attempt to intimidate them, and added that their resolve to remain on strike had not changed.
Workers described an organizational structure that seemed unusually democratic for China. Each factory department’s workers gathered, discussed who would be their most persuasive representative and then selected that individual to represent them on a factorywide council that has held negotiations with management, they said.
Large groups of workers repeatedly gathered around a foreign reporter even though clean-cut men in crisp shirts, probably plainclothesmen, were hovering nearby. The workers, who insisted on anonymity because of lingering concerns about retaliation, said that a company manager had announced over loudspeakers late Thursday afternoon that all workers would be asked on Friday morning to sign a new contract and would be dismissed if they failed to do so.
Asked if they would sign, the workers replied with a chorus of “no”, and said that they would gather outside the factory gates on Friday morning to express their displeasure. After going on strike on Wednesday morning, the workers have marched around inside the factory shouting slogans through the day on Wednesday and Thursday, before going home to cramped apartments in nearby buildings each evening.
The Chinese government strongly discourages large outdoor protests, and it is unclear how the local authorities would respond to one at the factory on Friday morning.
The workers voiced skepticism that the company would meet their demands, mainly an 89 percent increase in their pay, currently 900 renminbi a month, or $132.
Workers said that they had read news reports on the Internet that Honda had already granted pay raises of 500 renminbi a month in settling other strikes. Honda has not confirmed the percentage, while indicating it was large.
A municipal official standing with a group of private security guards outside the factory said that there was no evidence that Honda had broken any employment laws. The workers “just want more money, they’re inspired by the other Honda strikes,” said the official, who insisted on anonymity.
A Honda spokesman declined to comment on the details of the strike in Zhongshan.
The Chinese authorities have allowed some media coverage in the past two weeks of labor unrest, while Li Keqiang, the deputy prime minister and the heir apparent to Prime Minister Wen Jiabao, voiced support early this week for higher wages. The government even allowed national television coverage for two days of the strike at the Honda transmission factory two weeks ago, before abruptly barring further domestic media coverage.
But there have been signs lately of a more restrictive attitude. Workers here complained that when they posted comments on the strike here on the Web sites of Baidu, a big Chinese Internet company, the comments were quickly expunged.
The workers also described seeing at least two Chinese reporters politely escorted away by the police when they tried to cover the strike Wednesday.
The strike started Wednesday morning when a woman employee showed up with her identity card improperly attached to her shirt and was denied entry by a security guard. The women criticized the guard, who responded by shoving her to the ground, the workers said.
The workers provided a copy of what they said was a flier distributed by management Thursday morning. The flier offered an increase of 100 renminbi a month for workers’ food and housing allowances, which are currently 300 renminbi a month.
But the flier did not include any increase in base pay, and said that the woman involved in the altercation with the guard had been adequately compensated by the company with a payment of 10 renminbi.
Many workers said that a strike for higher wages was inevitable even if the woman had not been pushed, and that the incident was only the final spark for a walkout.
Brother Industries of Japan said that strikes had stopped work for the past week at two sewing machine factories in Xi’an in central China’s Shaanxi Province. Production resumed Thursday morning after what Zhao Wei, the president of the government-approved union at the factories, described as “concessions” by the company; he refused to be more specific and the company said that negotiations were continuing.
There were reports Thursday as well of strikes at several Taiwanese-owned factories. These included a sporting goods factory in Jiangxi Province in east-central China, a liquid crystal display components factory in Shanghai, a plastic factory at another city near Shanghai, and an audio components factory across the Pearl River from Zhongzhan in Shenzhen.
Honda has already reached settlements in the past two weeks at a transmission factory and an exhaust factory in Foshan, about two hours’ drive northwest of Zhongshan.
The latest strike to close a Honda supplier involves 1,700 workers who have stopped work at a sprawling, two-story factory next to a muddy canal lined by imported eucalyptus trees in Zhongshan. The factory makes rear and side mirrors, door locks and a wide range of other auto parts for Honda assembly plants all over the world, and the strike by its workers is beginning to raise larger issues for Honda, for the city of Zhongshan and for China.
The factory is 65 percent owned by Honda Lock, a wholly owned subsidiary of Honda, and 35 percent owned by a local Chinese partner, said Takayuki Fujii, a Honda spokesman in Beijing.
Tuesday, June 1, 2010
Nurses in Minnesota, California set Strike Dates
Associated Press
MINNEAPOLIS — Thousands of nurses in Minnesota and California on Friday announced plans to walk off the job for a single day next month if they don't reach contract agreements with hospitals.
The nurses — 12,000 in the Minneapolis area and nearly 13,000 at hospitals across California — both set June 10 as a strike date. The walkout stands to be the largest in U.S. history.
Nurses in California say low staffing levels are their main concern. In Minnesota, nurses cited that along with pay and pension issues in authorizing a strike last week. On Friday, the Minnesota nurses said filing notice of intent to strike was necessary to get the hospitals to move on negotiations.
"There is no way to meaningfully negotiate when one side doesn't show up," Nellie Munn, a registered nurse at Children's Hospital in Minneapolis and a negotiator, said.
Maureen Schriner, a spokeswoman for the Minnesota hospitals, said the strike notice "clearly shows the union is interested only in a strike and has demonstrated that it does not want to negotiate in good faith."
She said the hospitals would detail their plans to respond to a walkout next week. "The hospitals will take the steps necessary to maintain patient safety," she said.
The two sides are scheduled to meet with federal mediators Wednesday and next Friday.
A strike would affect thousands of patients at 14 hospitals in Minnesota, but it wouldn't affect two of the largest Twin Cities hospitals, Hennepin County Medical Center in Minneapolis and Regions Hospital in St. Paul, nor two large suburban hospitals that don't have union nurses or a contract up for renewal.
In California, National Nurses United bargaining director Jill Furillo said the one-day strike on June 10 would involve nurses from all University of California hospitals, Citrus Valley Medical Center in Covina, San Pedro Hospital and Olympia Medical Center in Los Angeles.
The union says there isn't enough staff to treat patients, requiring more attention from nurses. UC spokeswoman Leslie Sepuka dismissed that, saying safety is a top concern and the hospitals follow the law.
California law requires hospitals to maintain specific staffing levels in different areas of the hospital. For example, one nurse must be present for every two critically ill patients.
UCLA Ronald Reagan Medical Center oncology nurse Manny Punzalan said on weekends, evenings and lunch breaks, nurses frequently double up on their patient load because there are no nurses dedicated to cover breaks at many UC hospitals.
Last month at UCLA, an intensive care nurse assigned to one critical patient took on two more critical patients so a fellow nurse could take a lunch break, Punzalan said.
During the break, one patient went into atrial fibrillation, which means their heart stopped pumping properly, requiring immediate attention.
"All the other nurses jumped in and helped that patient, but you can imagine a time when other nurses are busy" in a critical care unit, said Punzalan.
The nurses — 12,000 in the Minneapolis area and nearly 13,000 at hospitals across California — both set June 10 as a strike date. The walkout stands to be the largest in U.S. history.
Nurses in California say low staffing levels are their main concern. In Minnesota, nurses cited that along with pay and pension issues in authorizing a strike last week. On Friday, the Minnesota nurses said filing notice of intent to strike was necessary to get the hospitals to move on negotiations.
"There is no way to meaningfully negotiate when one side doesn't show up," Nellie Munn, a registered nurse at Children's Hospital in Minneapolis and a negotiator, said.
Maureen Schriner, a spokeswoman for the Minnesota hospitals, said the strike notice "clearly shows the union is interested only in a strike and has demonstrated that it does not want to negotiate in good faith."
She said the hospitals would detail their plans to respond to a walkout next week. "The hospitals will take the steps necessary to maintain patient safety," she said.
The two sides are scheduled to meet with federal mediators Wednesday and next Friday.
A strike would affect thousands of patients at 14 hospitals in Minnesota, but it wouldn't affect two of the largest Twin Cities hospitals, Hennepin County Medical Center in Minneapolis and Regions Hospital in St. Paul, nor two large suburban hospitals that don't have union nurses or a contract up for renewal.
In California, National Nurses United bargaining director Jill Furillo said the one-day strike on June 10 would involve nurses from all University of California hospitals, Citrus Valley Medical Center in Covina, San Pedro Hospital and Olympia Medical Center in Los Angeles.
The union says there isn't enough staff to treat patients, requiring more attention from nurses. UC spokeswoman Leslie Sepuka dismissed that, saying safety is a top concern and the hospitals follow the law.
California law requires hospitals to maintain specific staffing levels in different areas of the hospital. For example, one nurse must be present for every two critically ill patients.
UCLA Ronald Reagan Medical Center oncology nurse Manny Punzalan said on weekends, evenings and lunch breaks, nurses frequently double up on their patient load because there are no nurses dedicated to cover breaks at many UC hospitals.
Last month at UCLA, an intensive care nurse assigned to one critical patient took on two more critical patients so a fellow nurse could take a lunch break, Punzalan said.
During the break, one patient went into atrial fibrillation, which means their heart stopped pumping properly, requiring immediate attention.
"All the other nurses jumped in and helped that patient, but you can imagine a time when other nurses are busy" in a critical care unit, said Punzalan.
Friday, May 28, 2010
Chinese Workers Strike, Halt Honda Production
BBC News
Honda has had to halt production at its four Chinese car assembly factories, because of a strike over pay at one of its China-based parts plants.
The Japanese company said talks were continuing to try to resolve the dispute at the parts facility in the southern city of Fushan.
The strike at the plant, which makes gearboxes and engine parts, started last week.
Honda said it hoped to resume production as soon as possible.
The Japanese company said talks were continuing to try to resolve the dispute at the parts facility in the southern city of Fushan.
The strike at the plant, which makes gearboxes and engine parts, started last week.
Honda said it hoped to resume production as soon as possible.
Resolution efforts
According to newspaper reports, the 1,900 staff at the parts facility want their monthly wages to be increased from 1,500 yuan ($220; £151) to 2,500 yuan.
"We are still trying to resolve the labour dispute with the help of the local government at the Fushan plant," said Honda's China spokesman Zhu Linjie.
Like most of the world's leading carmakers, Honda has enjoyed a big rise in sales in China.
It sold 219,514 cars in China during the first four months of this year, up 39% on a year earlier.
Honda runs three of its four car assembly factories in China as joint ventures with Chinese carmakers to supply the domestic market.
It has two factories in association with Guangzhou Automobile and one with Dongfeng Motor Corporation.
Honda's fourth Chinese factory makes its Jazz small car model solely for export.
According to newspaper reports, the 1,900 staff at the parts facility want their monthly wages to be increased from 1,500 yuan ($220; £151) to 2,500 yuan.
"We are still trying to resolve the labour dispute with the help of the local government at the Fushan plant," said Honda's China spokesman Zhu Linjie.
Like most of the world's leading carmakers, Honda has enjoyed a big rise in sales in China.
It sold 219,514 cars in China during the first four months of this year, up 39% on a year earlier.
Honda runs three of its four car assembly factories in China as joint ventures with Chinese carmakers to supply the domestic market.
It has two factories in association with Guangzhou Automobile and one with Dongfeng Motor Corporation.
Honda's fourth Chinese factory makes its Jazz small car model solely for export.
Saturday, May 22, 2010
British Airways Posts Another Record Loss as Strikes Loom
USA Today
LONDON — British Airways posted a record net loss for the second consecutive year on Friday — giving Chief Executive Willie Walsh a platform to accuse striking cabin crews of being out of touch with reality.
The full year net loss of 425 million pounds ($611 million), compared with a 358 million pound loss the previous year, was the largest since the former national airline was privatized in 1987. Revenue dropped 11% to 7.99 billion pounds from 8.99 billion pounds.
The earnings report was slightly better than analysts had feared and BA was more upbeat about the current financial year, but Walsh said it underscored his argument that staff need to accept changes to pay and working conditions for the airline — and their jobs — to survive.
The union representing cabin crews, which are due to walk off the job on Monday for a series of strikes totaling 15 days, accused Walsh of "macho" posturing and urged him to back down from a hardline stance that has revoked staff travel perks and taken disciplinary action against striking workers.
Walsh has repeatedly warned the Unite union that the changes at the center of their dispute with the airline, including fewer staff on long haul flights, are necessary to cope with reduced demand for air travel in the wake of the global financial crisis.
"Returning the business to profitability requires permanent change across the company and it's disappointing that our cabin crew union fails to recognize that," he said. "The dispute ... should be put behind us as quickly as possible for everybody that works at BA."
Unite joint general secretary Derek Simpson said that union leaders were willing to negotiate with BA over the weekend to avoid the strike beginning on Monday.
"We don't want this dispute," Simpson said. "This has to be resolved by negotiated settlement."
However, there has been little sign that BA and Unite, which represents around 90% of the carrier's 12,000 cabin crew staff, will be able to reach a deal in the monthslong dispute.
Negotiations have become increasingly difficult since Unite forged ahead with a financially damaging walkout in March and BA retaliated by revoking the travel perks and taking disciplinary action some 50 workers.
Unite was further incensed when BA turned to the courts earlier this week, just hours before a planned series of strikes totaling 20 days was due to begin on Tuesday, winning a ruling that the walkouts were unlawful because of a technical error in the union's ballot of members.
That decision by the High Court was overturned by the Court of Appeal on Thursday and Unite announced plans to carry on with the rest of the planned strike dates — May 24-28, May 30-June 3 and June 5-9.
Friday's earnings report included the seven-day cabin crew walkout in March, but not the recent closure of European air space because of the Icelandic volcanic ash cloud.
CEO Walsh was more positive about the airline's performance this year, saying it was making progress on a cost savings program that has included cutting jobs and restructuring the company.
"Our cost base has improved and we are seeing signs of market conditions improving," he told reporters on a conference call. "The combination of the two of those leads us to forecast break even at the PBT (profit before tax) level."
Walsh added that the carrier was targeting 6% revenue growth this year.
Shares in the airline were down 0.6% at 185.3 pence in morning trade in London after rising initially — the stock has dropped around 11% in the past three months, compared with an 8% fall in the FTSE 100 index.
"The loss was slightly less than investors had feared, and the cost cutting program has almost equalised the overall loss of revenue." said Richard Hunter, Head of UK Equities at Hargreaves Lansdown Stockbrokers. "The company's ongoing issues are numerous, however, and a root and branch structural change is clearly necessary."
Bob Atkinson, travel expert at travelsupermarket.com, said BA was performing well compared with a euro691 million net loss posted by Air France/KLM on Thursday.
"From the customer's point of view, we are highly likely to see a fares bonanza in the summer months and through to the autumn," Atkinson said, noting that Air France/KLM announced they would sell cheaper seats over the summer.
"BA will no doubt react once strike action is over," he said.
Walsh said Friday he expected a large number of cabin crew staff to ignore the strike call — as several did during the March walkout.
The airline, which has been running a reduced service this week, said it plans to fly around 70% of passengers booked to travel over the targeted period, which includes British school summer vacation period, a long weekend and the run-up to the football World Cup in South Africa.
As with the March strike, London's Heathrow Airport will again bear the brunt of the cancelations with the airline planning to operate around 60% of its longhaul program and 50% of its shorthaul service from that hub. It plans to operate a full schedule at Gatwick and London City.
The full year net loss of 425 million pounds ($611 million), compared with a 358 million pound loss the previous year, was the largest since the former national airline was privatized in 1987. Revenue dropped 11% to 7.99 billion pounds from 8.99 billion pounds.
The earnings report was slightly better than analysts had feared and BA was more upbeat about the current financial year, but Walsh said it underscored his argument that staff need to accept changes to pay and working conditions for the airline — and their jobs — to survive.
The union representing cabin crews, which are due to walk off the job on Monday for a series of strikes totaling 15 days, accused Walsh of "macho" posturing and urged him to back down from a hardline stance that has revoked staff travel perks and taken disciplinary action against striking workers.
Walsh has repeatedly warned the Unite union that the changes at the center of their dispute with the airline, including fewer staff on long haul flights, are necessary to cope with reduced demand for air travel in the wake of the global financial crisis.
"Returning the business to profitability requires permanent change across the company and it's disappointing that our cabin crew union fails to recognize that," he said. "The dispute ... should be put behind us as quickly as possible for everybody that works at BA."
Unite joint general secretary Derek Simpson said that union leaders were willing to negotiate with BA over the weekend to avoid the strike beginning on Monday.
"We don't want this dispute," Simpson said. "This has to be resolved by negotiated settlement."
However, there has been little sign that BA and Unite, which represents around 90% of the carrier's 12,000 cabin crew staff, will be able to reach a deal in the monthslong dispute.
Negotiations have become increasingly difficult since Unite forged ahead with a financially damaging walkout in March and BA retaliated by revoking the travel perks and taking disciplinary action some 50 workers.
Unite was further incensed when BA turned to the courts earlier this week, just hours before a planned series of strikes totaling 20 days was due to begin on Tuesday, winning a ruling that the walkouts were unlawful because of a technical error in the union's ballot of members.
That decision by the High Court was overturned by the Court of Appeal on Thursday and Unite announced plans to carry on with the rest of the planned strike dates — May 24-28, May 30-June 3 and June 5-9.
Friday's earnings report included the seven-day cabin crew walkout in March, but not the recent closure of European air space because of the Icelandic volcanic ash cloud.
CEO Walsh was more positive about the airline's performance this year, saying it was making progress on a cost savings program that has included cutting jobs and restructuring the company.
"Our cost base has improved and we are seeing signs of market conditions improving," he told reporters on a conference call. "The combination of the two of those leads us to forecast break even at the PBT (profit before tax) level."
Walsh added that the carrier was targeting 6% revenue growth this year.
Shares in the airline were down 0.6% at 185.3 pence in morning trade in London after rising initially — the stock has dropped around 11% in the past three months, compared with an 8% fall in the FTSE 100 index.
"The loss was slightly less than investors had feared, and the cost cutting program has almost equalised the overall loss of revenue." said Richard Hunter, Head of UK Equities at Hargreaves Lansdown Stockbrokers. "The company's ongoing issues are numerous, however, and a root and branch structural change is clearly necessary."
Bob Atkinson, travel expert at travelsupermarket.com, said BA was performing well compared with a euro691 million net loss posted by Air France/KLM on Thursday.
"From the customer's point of view, we are highly likely to see a fares bonanza in the summer months and through to the autumn," Atkinson said, noting that Air France/KLM announced they would sell cheaper seats over the summer.
"BA will no doubt react once strike action is over," he said.
Walsh said Friday he expected a large number of cabin crew staff to ignore the strike call — as several did during the March walkout.
The airline, which has been running a reduced service this week, said it plans to fly around 70% of passengers booked to travel over the targeted period, which includes British school summer vacation period, a long weekend and the run-up to the football World Cup in South Africa.
As with the March strike, London's Heathrow Airport will again bear the brunt of the cancelations with the airline planning to operate around 60% of its longhaul program and 50% of its shorthaul service from that hub. It plans to operate a full schedule at Gatwick and London City.
Thursday, February 25, 2010
Europe Goes on Strike
The Wall Street Journal
On Wednesday, a union-backed general strike shut down Greece. Roughly a million workers protested their government's plans to bring its 12.7% budget deficit under some semblance of control. Shipping, air traffic, trains, schools, and numerous private industries ground to halt. In the one country that can least afford to put an economic gun to its own head, the unions have decided to pull the trigger.
Nor were Greek workers alone. In Spain, tens of thousands of union members and fellow-travelers rallied in the streets. In France, air-traffic controllers and refinery workers have walked off the job. In Germany, a brief strike by Lufthansa pilots has left Europe's airports even more clogged than usual. Only in the U.K. do British Airways' cabin-crew members remain coy as to when exactly they will bring operations to a grinding halt.
Nor were Greek workers alone. In Spain, tens of thousands of union members and fellow-travelers rallied in the streets. In France, air-traffic controllers and refinery workers have walked off the job. In Germany, a brief strike by Lufthansa pilots has left Europe's airports even more clogged than usual. Only in the U.K. do British Airways' cabin-crew members remain coy as to when exactly they will bring operations to a grinding halt.
What accounts for this Continent-wide outbreak of unrest at a time when Europe's economies can so ill-afford it? Call it the welfare-state mentality coming home to roost. For decades, European workers have been told that somebody else will provide for them. You want a shorter workweek? Paris is here to help—along with a laughable promise that the 35-hour law will reduce unemployment. Are fuel prices too high? Here's a subsidy, extracted from excise taxes that account for more than half the cost of other people's gas. You want more vacation, longer and better-paid family leave, more generous benefits? Your employer surely has the necessary funds stashed away somewhere or other.
In Greece, one union representative gave voice to the general mentality. "We understand the difficulties in the economy, but the average worker can't give anything more," said Stathis Anestis, a spokesman for a private-sector umbrella union. "If the EU wants more measures [to improve Greece's finances], the rich and those who evade taxes should pay for it."
Mr. Anestis is right that Greece has a serious tax-evasion problem. But it's equally clear that Athens has made promises to its public-sector employees that it cannot afford to keep even if it were to collect every euro cent owed to it by every tax cheat.
In a different world (or on a different continent) the anger and frustration now being vented on Europe's streets would be directed at government policies that have led to economic stagnation, anemic or nonexistent private-sector job creation and a welfare state that in many countries consumes half of all economic output for distribution to others. But a statist mentality has become so entrenched that few people even think to ask for greater freedom to provide for themselves. They demand, instead, that someone else provide for them.
This mindset is not immutable. It's the product of economic and political arrangements that tax the fruits of success at 50% and more. Change the incentives and you change the mentality. The question is whether there's a politician anywhere on the Continent willing to offer his countrymen a better bargain than welfare, unemployment and unrest.
In Greece, one union representative gave voice to the general mentality. "We understand the difficulties in the economy, but the average worker can't give anything more," said Stathis Anestis, a spokesman for a private-sector umbrella union. "If the EU wants more measures [to improve Greece's finances], the rich and those who evade taxes should pay for it."
Mr. Anestis is right that Greece has a serious tax-evasion problem. But it's equally clear that Athens has made promises to its public-sector employees that it cannot afford to keep even if it were to collect every euro cent owed to it by every tax cheat.
In a different world (or on a different continent) the anger and frustration now being vented on Europe's streets would be directed at government policies that have led to economic stagnation, anemic or nonexistent private-sector job creation and a welfare state that in many countries consumes half of all economic output for distribution to others. But a statist mentality has become so entrenched that few people even think to ask for greater freedom to provide for themselves. They demand, instead, that someone else provide for them.
This mindset is not immutable. It's the product of economic and political arrangements that tax the fruits of success at 50% and more. Change the incentives and you change the mentality. The question is whether there's a politician anywhere on the Continent willing to offer his countrymen a better bargain than welfare, unemployment and unrest.
Subscribe to:
Posts (Atom)