Union demands halt to demolition work until working conditions improve

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In May 1997, the Dutch trade union Industriebond FNV demanded a halt to demolition work by a Chinese company on two blast furnaces in the Netherlands, in a case which has highlighted concerns about working and employment conditions in complex transnational assembly and demolition operations.

Industriebond FNV, the Industrial Union of the Dutch Federation of Trade Unions, has demanded an immediate stop to the demolition of two blast furnaces in the Netherlands by a Chinese company. Since demolition started in September 1996, 14 employees have been involved in accidents, two of which were fatal.

The two blast furnaces were sold by the Dutch enterprise Hoogovens to an Indonesian steel company which then contracted a Chinese company to dismantle and reassemble them in Malaysia. This complex process of sale and subcontracting has made it difficult to determine which company can be held responsible for safety matters during the demolition works. According to the Decree on the Construction Process (Bouwprocesbesluit), the initiator of the demolition works bears this responsibility. Nevertheless, although Hoogovens applied for the demolition permit, it has refused to accept responsibility for the working conditions. In the opinion of Hoogovens, the new owner, Indonesia's Gunawan Iron and Steel, should be responsible for ensuring their acceptability.

In an open letter sent in May 1997 to various organisations including the Ministry of Social Affairs and Employment and the Labour Inspectorate, Industriebond FNV called for measures to improve the working conditions of employees involved in demolition. In addition to the lack of appropriate safeguards to prevent employees from falling, Industriebond FNV also found that the Chinese workers have been exposed to asbestos and noxious fumes. The Labour Inspectorate replied that working conditions have since improved and no longer pose a threat to the lives of the employees concerned.

It is not only the working conditions during demolition works that have attracted attention: the terms and conditions of employment are also being scrutinised. The Central Office of the Employment Service (Centraal Bureau Arbeidsvoorziening), to which the open letter was also addressed, will determine whether the Chinese company has complied with the Minimum Wage Act and the sector's collective agreement. In the event of non-compliance, the Central Office can suspend the company's work permit. However, it is expected that the required legal procedures will not be completed before the demolition ends in September 1997. Meanwhile, demolition can proceed as planned.

Industriebond FNV argues that the case of the blast furnaces must be seen in a broader context. When competing for a contract to assemble or dismantle industrial constructions, foreign companies increasingly cut down on costs relating to working conditions and terms and conditions of employment. This could endanger the level of Dutch employment in this sector. Industriebond FNV has announced that this question will be addressed in a joint campaign with the sector's employers' organisation FME-CWM. The aim is to change legislation to prevent companies from avoiding their responsibility to provide safe working conditions by simply selling their problems on.