 |
 |
 |
  |
|
|
|
|
 |
|
|
MR LEKH RAM VAYESHNOI MINISTER FOR LABOUR, INDUSTRIAL RELATIONS, EMPLOYMENT, LOCAL GOVERNMENT, URBAN DEVELOPMENT AND HOUSING ADDRESS AT THE 42ND FTUC BIENNIAL CONGRESS (27th – 28th June 2008, Hexagon International Hotel, Nadi, Fiji) “New Challenges Ahead for Unions under ERP 2007.” Greetings The President, National Secretary, Executives and Delegates of the Fiji Trades Union Congress; The Director, Bureau for Workers’ Activities, ILO Geneva, Mr. Dan Cunniah; Senior Specialist, Bureau for Workers’ Activities, ILO Geneva, Mr. Raghwan Raghwan; Congress Resource Persons; Distinguished Guests; Ladies and Gentlemen. It is always a pleasure to be back with friends and colleagues, in particular to be celebrating with you another milestone in this 42nd Biennial Delegates Congress. Introduction I also convey a special welcome to Mr. Cunniah for reciprocating our visit to ILO, Geneva. I am very much encouraged in your meetings with Government and social partners in Fiji to promote the spirit of tripartism and good faith social dialogue. I know this Congress has been blessed and boosted immensely by your expertise in trade unions and ILO matters. May you have an enjoyable and memorable stay in your historic visit to our country. For Mr. Raghwan, welcome back home! The Fiji Government is fully appreciative of your pioneering work at the ILO and for looking after all the Fiji delegation during the annual ILO Conference in Geneva. Although the FTUC executives came to visit me a little over four (4) months after I was appointed as the Labour Minister, I wish to also remind them that my door is always open for dialogue. My officials will vouch that I am very committed to see the successful implementation of the Labour Reform under the Employment Relations Promulgation 2007 (ERP 2007). I am inviting all bona fide trade unions to actively play their lawful part in our journey forward under the new law. I am advised that in this Congress, you will be discussing major and urgent challenges arising out of the various reports and businesses of the year. I must also congratulate you for taking on the very timely Congress theme – “New Challenges Ahead for Unions under ERP 2007”. I would like to briefly touch on some of these challenges in my address, especially on the important role of the union to bring about Decent Work for All in our collective journey towards a fairer distribution of wealth and alleviation of poverty in Fiji. This is our common quest: to promote decent employment and alleviate poverty everywhere, improve security and the quality of our lives. You have all done commendable work in this regard over the years, because the trade union movement has become the essential focal point when it comes to seeking social justice in a globalize world. Global changes in employment patterns, labour markets and labour relations have had a profound impact on our employment relationships, particularly trade unions and employers' organizations. Therefore, trade unions in Fiji will have to be more dynamic and adaptable to new forms of employment, whilst maintaining their ‘seasoning salt’ so to speak. Background - Political, Social and Economic Reforms The recent and excellent Report of the ILO Director General on strategic challenges relating to Decent Work, provokes our conscience. It has challenged the leadership of all nations to have strong moral convictions and to reshape their political, social and economic policies to ensure that the fruits of globalization are fairly distributed within nations and between nations. In this regard, Government is strongly committed to ensure that our political, social and economic fundamentals are laid down now after years of neglect, or else we will never be able to do it. We were “the way the world should be”. What has gone wrong? Over the years we have lost our way in the jungle somewhere through poor governance, while other nations have progressed along the way of peace, prosperity and abundant wealth. Some of our problems that have been discussed to be corrected are - our weak Parliamentary democracy that is racially based; absence of a national identity; weak institutions and “rules of the game”; poor leadership and divisive policies – the list of neglect goes on. The Stakes are high! Although the efforts and challenges to correct these problems are great, but it is not insurmountable to overcome. We have been procrastinating on this vital issue. It is therefore an ideal time to pause, to reflect, to re-think, about where Fiji has been going. It is an ideal time to begin the move in a new direction: as one people, as one nation, towards a shared destiny. In this situation, what should be the strategic role of trade unions towards this common national vision of Building a Better Fiji? What can the trade unions do to be part of the solution, rather than be part of the problem? In the current political reality, I personally believe that the best way is to adopt the pragmatic approach. That is, to engage with Government in good faith dialogue and be actively involved in our collective efforts to bring sustainable peace and prosperity back to our country, where our people would love to work and live. This is the very essence of the consultations within the National Council for Building a Better Fiji and we are seeking your continued support towards a favorable outcome. Status after December 2006 We have come this far since December 2006 and I must commend the efforts of your President, National Secretary and other executives in their support for Government to improve governance in areas affecting the workers interests. Against all odds your leaders are doing a great job and have shown the workers and employers of this country that the trade union movement can rise above partisan ideals to make things happen for the people of this country. I am not forgetting the efforts put in by the employers to ensure a stable employment relations climate when the new Government assumed authority. We all see that good sense is prevailing and the social partners are going with the flow so to speak. Government’s Commitment on Decent Work for All I want to assure the FTUC that Government will play its partnership role with the trade union movement and employers towards a new focus that recognizes the central place that should be enjoyed by Decent Work in the social and economic policies of this country. This commitment is clearly demonstrated in the unwavering political will of Government to enact the Employment Relations Promulgation 2007 and its seven (7) subsidiary legislations. This new and reformed labour law is basically the ‘National Charter’ of the labour market. On this note I would like to congratulate all stakeholders, especially the Fiji Trades Union Congress, for their valuable contributions to develop this historic legislation. Although we are having some ‘teething problems’ (currently sorted out with PSC) in the setting up of the Mediation Service, the Employment Relations Tribunal and the Employment Relations Court, the new labour law is designed to ensure both workers and employers are treated fairly, with dignity and are rewarded fairly for their work. It ensures smooth and speedy resolutions of grievances and disputes. In this way, we will get rid of bottlenecks and delays in settling disputes that have incurred significant economic and productivity losses. The investors and employers will greatly benefit from the stable working environment under the new legislation which also promotes productivity and employment. Government supports a balanced development. Under this law, we see for the first time the prohibition of child labour, fully paid maternity leave and the introduction of the principle of equal employment opportunities to remove all forms of discrimination. The new law recognizes sexual harassment as a special form of gender discrimination and we have a new National Policy on the Prevention of Sexual Harassment in the Workplace, and Fiji’s first National Workplace Code of Practice on HIV and AIDS. To ensure good governance, a Code of Ethics for Mediators was also gazetted, including a new Employment Agencies Regulations to address labour mobility issues consistent with relevant ILO and UN Conventions. During our various meetings at the ILO Conference in Geneva, both the ILO Director General, Mr. Juan Sumavia, and the Director for ILO Standards, Ms. Cleopatra Doumbia Henry have commended the Fiji Government, the FTUC and FEF for the progressive Labour Reform policy reflected in the ERP 2007. A special commendation letter to the Fiji Government from the ILO was addressed to me on 2nd June 2008, after the current Government recently ratified a further six (6) ILO Conventions relating to labour inspections, occupational health and safety, nursing, agriculture, seafarers and working conditions in hotels and restaurants. To date, the Fiji Government has ratified a total of twenty eight (28) ILO Conventions, which include the eight (8) core ILO Conventions on the Fundamental Principles and Rights at Work. The provisions of all these Conventions are included in the ERP 2007. Court Challenge by FICTU With all these efforts to safeguard the interests of workers, it is sad to see another group of workers issuing court challenges to a modern and progressive piece of legislation. Affiliates of the Fiji Island Council of Trade Unions (FICTU) are working behind the scene to ensure that the Employment Relations Promulgation 2007 is thrown out. The High Court has given a ruling that the case will await the decision of the Qarase case ruling as it will determine the legality or otherwise of the Promulgation. Source of FICTU Dispute The majority of the social partners and other observers will agree that the genesis of the FICTU court action can be traced back to the FTUC Biennial celebration in 2002 when a faction of disgruntled members attempted to usurp powers through unreasonable demands and unacceptable practices. These people failed and some six years later they tried again but only this time at the potential expense of the very people they are supposed to protect: the workers of this country. As part of the normalization process under the ERP 2007, the Registrar of Trade Union is conducting an investigation into the lawful existence of FICTU and appropriate actions will be taken as soon as possible. I wish to make it clear here that I will not tolerate any laxity in the implementation of the ERP 2007 from any trade union or employer, irrespective of their affiliations. However, this dispute could also be proactively solved in-house by the unions themselves, before reaching an open conflict situation as we are currently experiencing with associated ramifications. Those who create conflicts must have the primary responsibility to resolve them, not a third party. This will need visionary and mature leadership amongst union executives – the ability to distinguish the ‘forests’ from the ‘trees’. The mediatory skills to resolve conflicts quickly as they appear, coupled with the earnest desire to always seek solidarity amongst union members and executives for the singleness of purpose to expand rather than deplete union memberships. The in-fighting amongst some unions over the years has retarded the expansion of union memberships into the un-organized sectors. Lack of unionization of workers The trade union movement must take cognition of the fact that since 1926, when it started, it has only achieved the unionization of an abysmal 30% of the formal sector by 2008 – after a long period of about eight decades (82 years!). From a trade unionist perspective, it is shameful to have to say that. The provision of the ERP 2007 in this regard would have persuaded union leaders to renewed commitment and efforts to unionize the vast amount of workers crying out for assistance. I have convinced myself to believe that, maintaining the old principle of 50% membership for recognition is one of the hindrances in unionizing workers. This recognition threshold has lulled unions into complacency and comfort zones, dampening our commitment to organize non-unionized workers. May I just say here that established unions fearing being poached or cannibalized by other unions basically do not have any “heart” for their members. My response is – why do you fear if you are providing quality union services to your members? In this regard, the ERP 2007 promotes good governance in the operation of trade unions. Government fully supports this policy and I have no problem with that. But I have a problem with the fact that 70% of all workers are still not unionized. Hopefully, the ERP 2007 will allow healthy competition amongst unions to unionize the un-organized sector. Negotiations and Collective Bargaining through Good Faith There is no mystery in the implementation of the ERP 2007 as the culture has already been put in place by the Occupational Health and Safety legislation. In the OHS culture, it says “those who create the risk and those who work with the risk have the primary responsibility to solve the risk”, not the OHS Inspectors or the Judiciary. These institutions have secondary role in risk management. This approach was very successful in reducing the national rates of workplace injuries and fatalities since 1997 under the OHS Reform. This successful principle has been adopted in the ERP 2007. Similarly, the ERP 2007 is premised on the philosophy that “those who create or parties to the employment grievance or dispute have the primary responsibility to solve them”. That is the reason why the first step in the dispute resolution process under the Promulgation is the engagement of good faith dialogue and bargaining between the contending parties themselves at the enterprise level, with the facilitation of the Labour Management Consultation Committee (LMC). The secondary phase is the Mediation Service, where the notion of good faith is further put to the test before adjudication at the Tribunal level. It is envisaged that, once the good faith culture matures, the majority of cases will be sorted out between the parties themselves and at the mediation level and those that graduate to the Tribunal level are heard and disposed off quickly. That will be a great improvement to the status of the current disputes that are clogging up the system and frustrating the employers, the unions and the workers. That is one of the main challenges under the ERP 2007. This new law promotes partnership, working together with the employer to achieve a common ideal of enhancing productivity through the concept of good faith. This is where the employer and the union get together to negotiate and engage in collective bargaining under the Code of Good Faith. Negotiating behaviour is regulated here and the Employment Relations Tribunal will not hesitate to issue a Compliance Order if it receives a complaint from either parties not engaging in good faith. Government is not trying to regulate the behaviour of the parties here, but rather, to nurture the concept of good faith; honesty, mutual trust, fair dealing and transparency. Trained Advocates for Negotiations This good faith conflict resolution culture will demand very intensive training and rigorous application of the principles of good faith negotiation and mediation amongst union negotiators. It is therefore incumbent on the union leadership to ensure that their advocates possess the necessary skills and expertise to handle any situation that may arise during negotiations like the ability to read a chartered account report on the state of an employer’s finances. These are some of the things that are taken for granted but not any more as the outcome of the negotiations will depend very much on these qualities. This is the responsibility of the unions and as union leaders I urge you to put your house in order first; get your delegates trained and your advocates exposed to the best trade union practices in negotiations, including the familiarization of ERP 2007 and ILO standards. Retirement Age On civil servants retirement age, I wish to reiterate again Government’s position that it should be reduced from 60 to 55, to allow graduates and school leavers to be absorbed into the service. Under the current economic conditions of subdued growth, it is considered grossly negligent for civil servants beyond 55 years to be paid a high salary for a position together with his or her pension, when a young recruit can be paid a much cheaper base salary for the same position with better qualification. This “double-dipping” scenario does not energize or create the right incentive for a productive workforce. However, I am just stating Government’s position and will not say more on this issue as it is to be determined by the Court. Whilst I appreciate FTU’s position on this issue, I do not understand why FPSA support the 60 years retirement age in their joint-court action with questionable FICTU affiliates. This may be a bitter pill to say here. It would be better if the FTUC has a common policy position of 55 years on this issue in the best national interests to generate more employment and businesses. Civil servants retirees have huge potentials to create successful small businesses and boost employment and exports in the private sectors. A lot of them are well trained and have their own lands to cultivate. Strong Unions The growth of strong unions and the spread of collective bargaining have shifted attention from the organizational stage of labour relations to the problems of making collective bargaining a more effective institution for the conduct of employment relations. Unions must be strong and not merely in terms of numbers but in the conviction to reduce the decent work deficit, the commitment to make workers realize their aspirations and for their children to go to school and realize their abilities and to escape from the curse of child labour. The ILO Conference in 2002 passed a resolution that the social partners; the employers’ federation and unions must be strong to represent their members’ interests both domestically and internationally. As alluded to earlier, it is therefore imperative that unions indulge in recruitment drives to organize the unrepresented workers under your wings and at the same time inculcate in them the freedom derived from the 1997 Constitution. Especially, the fundamental rights at work Conventions dealing with the right to organize for collective bargaining purposes and the equal employment opportunities principles. Individual Rights It is also very important that unions provide awareness on workers individual rights under the ERP 2007 to access the different institutions for addressing grievances. You have to make them understand that you the unions can do it better by representing them. In that connection you must realize that the extension of personal grievance entitlements to all workers has increased the protection and bargaining power of workers; particularly those on individual employment contracts. The effects on employment relations have been far reaching in terms of employer and worker behaviour, the implementation of improved human resources management practices and transaction costs. Threats to Unions and Collective Bargaining It is against that background that you must work out your strategy that will enable these workers to join your unions remembering that unions and collective bargaining face difficult challenges in the years ahead. Virtually all collective bargaining takes place at enterprise, industry or national level. In contrast the economy is increasingly global. Apart from Europe, however, unions have yet to develop effective mechanisms for bargaining across national boundaries. Such bargaining is a top priority for international labour federations. It can best be promoted through stronger and more effective international union structures, strong social clauses in world trade agreements and appropriate international instruments, such as those of the International Labour Organization. For example, the ILO Tripartite Declaration on Multinational Enterprises refers specifically to both collective bargaining and occupational safety and health. Many unions overseas are developing direct links with their counterparts in other countries in order to coordinate their bargaining and provide mutual assistance. This is the case of the relationship between mining unions in the United States and in Colombia. Unions and Deregulation Be warned, that rapid changes in technology and work organization can overwhelm existing labour agreements. Unions in overseas countries are attempting to develop a form of continuous bargaining to respond to workplace changes as employers can quickly relocate due to deregulation. Notice for Collective Bargaining What the ERP 2007 has done is to allocate obligations to the parties to initiate collective bargaining with the giving of the relevant notice. This will ensure that the other party is prepared and the negotiation will become fruitful. This is what should be told to workers who are not organized, that joining a union will enable them to enjoy better conditions and protection. Advocates, the Tribunal and the Employment Court Similarly, union leaders should now identify a competent team of advocates to represent aggrieved workers before the Employment Relations Tribunal and the Employment Relations Court. This matter has been raised by the Permanent Arbitrator and he has put the reason for the delay on the failure of unions to make available sufficiently competent people in the Tribunal. The Tribunal cannot be waiting for ever as it has to decide on matters dealing with bread and butter issues; issues that need to be tackled and resolved within the minimum delay. The ball is in your court, to make available the advocates and the Tribunal will proceed; remembering that under the ERP 2007 there will be a Chief Tribunal, a Legal Tribunal and a Non Legal Tribunal. Competent Representatives As union leaders I must remind you that to deny a grievor competent representation by an experienced union advocate would also prejudice the proceedings and would place the grievor at a distinct disadvantage. This is especially so, when in most disputes employers are represented by legal practitioners. Maximum Representation Unionists have always acted for other workers and this ERP 2007 allows you the maximum capacity to do that and to do it properly. As you can comprehend from reading on the part regarding mediation services, a worker can be represented from that level all up to the Employment Court. So, like I have stated earlier on, it is the question of competence and capacity to sustain that ability to offer quality services to other workers and fellow union members. There you have it, it is to a certain extent the realization of the dream to be able to represent workers and be able to give notice to an employer to prepare to engage in social dialogue. You do not have to go through the process of recognition because the ERP 2007 recognizes your status as a worker, as a union that must be engaged in good faith for the common good which is the enhancement of productivity improvement. Labour Management Consultative and Cooperation Committee To conclude, I will touch briefly on the issue of Labour Management Consultative and Cooperation Committee (LMCC). For the last five decades, the social partners have been living in an adversarial relationship and that has deeply affected the functioning of the labour market resulting in the stagnation of social and economic growth. The reason for that type of relationship was the apparent lack of good faith. This is where the LMCC comes in; it is the seed, the embryo of the relationships based on good faith. In the workplace it is envisaged that LMCC will create an enabling environment for the achievement of goals and the nurturing of good faith in everyday and future relationships for the promotion of productivity. Your union members will also be eligible to be members of this LMCC and it is the challenge for you as leaders to talk to these people and encourage them to participate in the free exchange of information, disclosures, consultation and cooperation. For these people are your eyes and ears on the ground and at the management level for the LMCC is essential in building the human and social capital of the enterprise. Labour of Love LMCC is an innovative way of getting the parties to be engaging in social dialogue relating to evolving work practices, and it is also the forum to nurture spiritual capital which has such values as respect, tolerance, trust and forgiveness, which are fundamental to the shaping of a person’s character be it a worker or an employer. This is our labour of love. Vision and the People’s Charter The vision is for this LMCC to evolve into a dynamic and effective national institution, promoting the principles of the ERP 2007 – the People’s Charter of the labour market. I appeal and invite all trade unions, employers and everyone here to participate in the implementation of the ERP 2007 through the nurturing of the concept of good faith and productive employment relationships. I call on you as union leaders to support your individual members in realizing that vision. I thank you for your attention, and I wish this Fiji Trades Union Congress 42nd Biennial Conference a very fruitful deliberation. Dhanayavaad Vinaka Vakalevu Thank You |
|
|
 |
     |
