[stop-imf] Unions Urge World Bank to Reverse Illegal Firings by Subcontractor in E Timor

[rob@essential.org]

CONTACT:
Ira Arlook
(202)  721-0111

MONDAY, JANUARY 26, 2004

World Bank Called Upon to Observe Labor Rights Standards in Treatment of
its Employees in East Timor

Human Rights Groups and Unions Ask Bank to Reverse Illegal Firings by
Subcontractor

A group of human and labor rights organizations including the
International Labor Rights Fund, the East Timor Action Network, the
AFL-CIO and the International Confederation of Free Trade Unions has
sent a letter to a senior manager at World Bank headquarters in
Washington, DC calling on the institution to observe
internationally-recognized labor rights in the treatment of workers
employed at the Bank's offices in East Timor.

The groups cite illegal firings of World Bank security guards and
custodians by its contractor, Chubb Protective Services:

On December 4, 2003, Chubb Protective Services, a multinational security
firm contracted by the World Bank to clean and provide security for its
office in Timor Leste, fired 32 workers for exercising their
constitutionally protected right to strike.  The workers were protesting
Chubb's unilateral decision to cut their salaries from $133 per month to
$94 per month.  We are sure you will agree that while they are not
directly employed by the World Bank, as a one of the Bank's contractors,
Chubb should fully follow international labour standards and Timor Leste
laws with respect to the security guards and custodial staff it employs
on the Bank's behalf.

The groups observe that the Bank's treatment of its workers contradicts
both the institution's stated labor policy and East Timor's labor code.
The text of the brief letter follows:

GLOBAL UNIONS
(ICFTU, GUFs, TUAC)
Washington Office

1925 K  Street, NW, Suite
425
Tel.: 202/463-8573 - Fax: 202/463-8564
Washington,
DC  20006

E-mail: pbakvis@earthlink.net



January 21, 2004


Ms. Inez Therese Ballard
Senior Manager, General Services Department
The World Bank
1818 H Street, NW
Washington DC 20433


Dear Ms. Ballard,

On December 4, 2003, Chubb Protective Services, a multinational security
firm contracted by the World Bank to clean and provide security for its
office in Timor Leste, fired 32 workers for exercising their
constitutionally protected right to strike.  The workers were protesting
Chubb's unilateral decision to cut their salaries from $133 per month to
$94 per month.  We are sure you will agree that while they are not directly
employed by the World Bank, as a one of the Bank's contractors, Chubb
should fully follow international labour standards and Timor Leste laws
with respect to the security guards and custodial staff it employs on the
Bank's behalf.

In the spirit of the World Bank's recently heightened commitment to
respecting fundamental workers' rights, we are writing to urge the Bank to
assume its responsibility for the treatment of these workers and to do all
in your power to ensure that the Bank's contractor, Chubb Protective
Services, which is a subsidiary of the conglomerate, United Technologies,
reinstates the 32 fired workers.  In addition, the World Bank should
require that Chubb engage in good faith collective bargaining with their
employees regarding wage levels, which by all accounts, appear to be below
the living wage for the country.

The Timor Lorosa's Trade Union Confederation (KSTL), the union representing
the security and cleaning staff at the World Bank facilities, has alleged
that in December 2002 Chubb Protective Services instructed workers to sign
a new contract, written in a language many did not understand, containing
the lower salary rate.  Efforts to get Chubb employees to sign the new
contract were coercive, involving threats to terminate workers who did not
sign.  In addition, no explanation was provided at the time on the reasons
for the salary cut.

Attached to this letter you will find a chronology and press release by
KSTL detailing the circumstances leading up to the strike.  KSTL's repeated
attempts to dialogue with World Bank staff  both orally and through
letters  were rebuffed.  World Bank staff refused to meet with KSTL
officials, but simply told them that the World Bank was not responsible for
the workers' treatment and salaries.  Please find a copy of correspondence
from the World Bank representative contacted in East Timor.  Chubb
Protective Services, on the other hand, told KSTL that the pay cut was due
to the World Bank.

We believe that the World Bank, as the contractor of Chubb, bears
responsibility for the conditions of the workers and must, at the very
minimum, ensure that national laws are respected.  The World Bank's and
Chubb Protective Service's actions in this case violate articles 9, 24, 35,
36, and 37 of Timor Leste's Labour Code, as well as articles 50, 51 and
52  "right to work," "right to strike and prohibition of lock-out," and
"trade union freedom," respectively, of Timor Leste's constitution.

Moreover, the refusal of the World Bank's contractor, Chubb, to recognize
and negotiate with its employees' union in Timor Leste is in direct
violation of one of the International Labour Organization's four core
labour standards, and in contradiction with stated Bank policy.  In recent
meetings with international trade union leaders, President James Wolfensohn
pledged the Bank's support for the promotion of core labour standards.  On
the occasion of the launch of a World Bank publication emphasizing the
positive role these standards could play in reaching development goals, a
Bank communiqu=E9 (February 12, 2003) gave examples of "the World Bank's wo=
rk
to support the promotion of core labor standards".

This case comes at an opportune moment when the World Bank is investigating
how to better adhere to the principles that it promotes among its own
country recipient clients within its own procurement of services.  Indeed
it is a test of commitment to these principles What better way for the
World Bank to demonstrate its respect for fundamental workers' rights and
the rule of law, and a commitment to better the lives of the world's poor,
than to take an active role in ensuring that workers in the world's newest
country have their rights protected while working for a World Bank
contractor?

Chubb's poor record of respect for labour rights in Timor Leste and other
countries is well known.  A quick Internet search reveals hundreds of
articles citing problems between the company and its employees.  The World
Bank's decision to contract to Chubb thus reveals either a failure on its
part to research its contractors or a lack of concern about putting into
practice the values the World Bank professes to uphold. Chubb's reputation
in Timor Leste has been characterized by termination without reason or
warning, unpaid overtime, recruitment without contract, and pay
discrimination.

The rule of the law is a prerequisite for sustainable economic growth and
deepening of democracies.  We ask that the World Bank do its part to uphold
the rule of law, and the enforcement of core labour standards by
communicating to Chubb Protective Services, a World Bank contractor, that
its actions are unacceptable.  Given the Bank's recent effort to apply
legal standards to its contractors, Timor Leste is a great place to start
putting ideals and policies into practice.

Sincerely,


Bama Athreya, Deputy Director, International Labor Rights Fund

Peter Bakvis, Director -Washington Office, International Confederation
of Free Trade Unions (ICFTU/Global Unions)

Philip Jennings, General Secretary, Union Network International (UNI)

Karen Orenstein, Washington Coordinator, East Timor Action Network

Barbara Shailor, Director International Affairs Department, AFL-CIO