ILO is a specialized agency of the United Nations
ILO-en-strap
Governing Body

Tripartite Meeting on the Iron and Steel Workforce
of the Twenty-first Century

Geneva, 27-31 October 1997

Note on the proceedings

Contents

Introduction

Part 1. Consideration of the agenda item

Report of the discussion

Conclusions on the iron and steel workforce of the twenty-first century:
What it will be like and how it will work

Part 2. Other proceedings

Panel discussions

Closing speeches

Evaluation questionnaire

List of participants

Introduction

The Tripartite Meeting on the Iron and Steel Workforce of the Twenty-first Century: What it will be like and how it will work was held at the International Labour Office in Geneva from 27-31 October 1997.

The Office issued a report(1)  to serve as a basis for the Meeting's deliberations. It addressed the following topics: recent developments in iron and steel; improving competitiveness; the human dimension; labour-management relations; and steel and the environment.

The Governing Body had designated Mr. M. Arbesser-Rastburg, Employer member of the Governing Body, to represent it and to chair the Meeting. The three Vice-Chairpersons elected by the Meeting were: Mr. N. Narad (India) from the Government group, Mr. J. Senn from the Employers' group and Mr. B.-I. Eto from the Workers' group.

The Meeting was attended by Government representatives from Canada, Chile, China, Czech Republic, France, Germany, India, Japan, Republic of Korea, Poland, Sweden, United Kingdom, United States, Venezuela; 18 Employer representatives and 18 Worker representatives.

An observer from the Arab Labour Organization attended the Meeting and representatives from the following international non-governmental organizations also attended as observers: International Confederation of Free Trade Unions; International Iron and Steel Institute; International Metalworkers' Federation; International Organization of Employers; World Confederation of Labour; and World Federation of Trade Unions.

The three groups elected their Officers as follows:

Government group

 

 

Chairperson:

 

Mr. R. Saunders (Canada)

Vice-Chairperson:

 

Mr. J. McCann (United Kingdom)

Secretary:

 

Mr. A. Rivas Lairet (Venezuela)

Employers' group

 

 

Chairperson:

 

Mr. T. Sterling

Vice-Chairpersons:

 

Mr. E. Mantilla
Mr. S. Kaneda
Mr. S. Uku
Mr. U. Levál

Secretary:

 

Mr. J. Dejardin (International Organization of Employers

Workers' group

 

 

Chairperson:

 

Mr. D. Brookman

Secretary:

 

Mr. L. Powell (International Metalworkers' Federation)

The Secretary-General of the Meeting was Mr. V. Morozov, Director of the Sectoral Activities Department. The Deputy Secretary-General was Mr. N. Jennings of that Department's Industrial Activities Branch. The experts were Mr. V. Jamal and Ms. L. Tegmo-Reddy of the same Branch. The Clerk of the Meeting was Ms. M.-J. Canonica Marqués.

The Chairperson of the Meeting welcomed the participants to Geneva and stressed the important role sectoral meetings played in ILO activities by bringing together experts to exchange views and discuss important social and labour issues for a particular sector. The objective of this Meeting was to develop and agree an outcome that would serve as guidelines for policies and measures for dealing with labour issues in the iron and steel sector -- at the national level, and by the ILO. The topic for the Meeting was timely. The sector's 6 million workers were having to work in a more flexible way. Greater flexibility, more responsibility, and a high level of commitment were required in order to meet increasingly stringent quality standards and delivery schedules in a high-technology, extremely competitive industry. The importance of product quality and service was being felt throughout the industry and the human dimension was the key to its future. An important topic for the Meeting was what could the steel industry offer the worker of the twenty-first century. The Chairperson referred to changing work practices and their impact on training and work organization, the high social costs of increased competition, and environmental pressures as issues the Meeting would have to tackle. How were they being dealt with? Were the proper mechanisms in place? What could be learned from the experiences of others? What were the roles of employers' and workers' organizations and the ILO? These matters would be the focus of discussion.

In an opening address to the Meeting, Mr. K. Tapiola, Deputy Director-General of the International Labour Office, recalled the long history of the ILO's steel-related activities and drew attention to the continuing importance of the steel industry as a major engine of economic growth. Continued growth in steel consumption into the new millennium should soak up excess capacity and stimulate new investment, to the benefit of the industry and its workforce. Notwithstanding the completion of major steel industry restructuring in Western countries, further contractions in the workforce were likely elsewhere, particularly in Central and Eastern Europe, the former Soviet Union and in China. As well as being smaller, the steel workforce was working differently to reflect the changes in the industry. The steel industry had not been as quick to "globalize" as some other sectors due to a combination of existing capital investment, spare capacity, economies of scale and state ownership and/or control of the industry in many countries. As the State had increasingly released its direct hold, the industry had branched out, particularly in fast-growing markets. The growth in the importance of mini-mills and the rise in steel production in non-OECD countries had tended to decrease global concentration in the industry, whereas the tendency towards joint ventures was working towards greater concentration. Governments and workers' organizations would need to act accordingly to ensure the protection of the national interest and workers' interests respectively. There was room for greater international cooperation between workers' organizations in this regard. The Deputy Director-General pointed to the steel industry's leadership in demonstrating social responsibility concerning the environment. This was important in the context of the ILO because environmental constraints on steel production and the use of steel directly affected the steelworker and his or her employer. The problems experienced in the general environment often had their origins in the working environment and, in many cases, they could be dealt with or even prevented there. The speaker referred to the impressive efforts of the industry to reduce waste and increase recycling. Steel companies and steelworkers and their organizations should recognize both the opportunities and the powerful discipline of an increasingly competitive world steel market. Only when they did so would a modern and robust steel industry be able to master the twenty-first century. If high-paying jobs in the steel industry were to be retained and new jobs created, enterprises required a workforce that was more competitive in terms of quality and quantity, and more flexible. The output of this Meeting should shed some light on how best to achieve and sustain a skilled, flexible, motivated workforce in a dynamic and profitable industry. The Deputy Director-General closed by drawing the Meeting's attention to several relevant ILO activities, including special programmes on industrial relations, training and globalization, and ILO emphasis on "core" labour standards covering freedom of association and the right to collective bargaining; the prohibition of forced labour; equality of opportunity and treatment; and the elimination of child labour. These core standards should be borne in mind when exchanging views on the iron and steel sectors, just as they should with other sector.

 

Part 1.
Consideration of the agenda item

Report of the discussion (2)  

Introduction

1. The Meeting examined the item on its agenda. In accordance with the provisions of article 7 of the Standing Orders for sectoral meetings, the Government Vice-Chairperson, Mr. Narad (India), presided over the discussion.

2. The spokesperson for the Employers' group was Mr. Sterling and the spokesperson for the Workers' group was Mr. Brookman.

3. The Meeting held five sittings with Mr. Narad as Chairperson.

Composition of the Working Party

4. At its fifth plenary sitting, in accordance with the provisions of article 13, paragraph 2, of the Standing Orders, the Meeting set up a Working Party to draw up draft conclusions reflecting the views expressed in the course of the Meeting's discussion of the report. The Working Party, presided over by the Government Vice-Chairperson, was composed of the following members:

Government members

Employer members

Worker members

Presentation of the report and general discussion

5. The report that had been prepared for the Meeting was introduced briefly by the Deputy Secretary-General. The report attempted to achieve two objectives: serving as a basis for a lively debate on the 11 points for discussion proposed for the Meeting, and acting as a useful source of information for those concerned in the industry. The report consisted of three parts, commencing with an overview of the sector, which highlighted recent developments in production, consumption, trade, and technology, from global, regional and national perspectives, as well as recent privatizations and employment trends. The second part of the report focused on the topics covered by the title of the Meeting: competitiveness and productivity; human resource management; labour-management relations; and environmental management. In preparing the report, in addition to research and visits, nine case-studies had been commissioned, in order to take into consideration the diversity of the industry and different approaches taken to deal with similar issues in different regions and countries. Since it was not possible to provide an exhaustive coverage in the report, the speaker hoped that more examples would be brought out during the Meeting.

6. The spokesperson for the Employers' group commended the report and agreed with its basic approach of illustrating trends and problems by examples from different countries. Workers, governments and employers had to function in a globalized competitive world, where labour costs were an important element of competitiveness, the latter being understood to include competition from alternative materials. It was important for the Meeting to focus on means to address the competitive disadvantages that existed between unionized and non-unionized workers in the industry. Two competitive issues that arose from globalization were important: productivity and compensation strategies. The speaker appreciated the report's coverage of issues relating to team-based work and multi-skill training. He stressed that training should be broadened to include behavioural training which was required to change the mind-set of workers and employers in preparation for the competitive challenges in the market. Change was necessary for both existing and new workers and the industry had to study and implement new human resource strategies, such as variable types of compensation, in response to this. The report had pointed to the declining proportion of skilled and experienced workers in the industry throughout the world, highlighting the need to replace the ageing workforce with new workers having new skills. Resistance to change had to be recognized and overcome. The industry was competing in the labour market with smaller enterprises and with high-tech industries which potential employees might consider as more desirable places to work. Safety and health training and retraining were vital to the industry in the light of technological and workplace changes.

7. The Workers' spokesperson underlined the importance the trade union side attached to this Meeting because of the unique opportunity it provided to establish a broad understanding of the problems of the steel industry. While the medium-term prospects for the industry were bright, plants in Central and Eastern European countries would continue to face problems for a number of years to come (as would those in developing countries using outdated technologies). The further restructuring and rationalization that were inevitable in these cases should be accompanied by policies to redeploy the retrenched workforce in alternative employment and provide training in the acquisition of new skills. Large integrated steel plants, despite their cost disadvantages vis-à-vis electric arc furnace mini-mills, would continue to play a major role in the foreseeable future. Expected changes in supply and demand could result in higher steel prices, yet the threat of dumping remained and required action at the international level through multilateral agreements. The objective should be to promote fair trade, as opposed to free trade, which often was neither free nor fair. The current drive towards greater efficiency and competitiveness was most often achieved by cutting workers' wages and other benefits. The resulting "success" led to higher salaries and more share options for management. Privatization was a contributory factor in this which, together with globalization, had resulted in a concentration of economic power in the hands of acquisitive companies. One serious consequence of globalization and joint ventures was the denial of fundamental workers' rights. Non-unionized workers were likely to suffer major declines in their wages when industries contracted. They also were much less likely to have satisfactory sick pay schemes, retirement benefits and independent legal representation. Individual interactions with the employer were likely to be from a weak position. Increasing use of contractors was another area of concern to workers' organizations. By paying lower wages and employing fewer workers, contractors threatened the long-term viability of the industry. While currently they could tap the pool of skilled unemployed workers, how would they meet the cost of the required training when this pool disappeared? There was thus the danger of a multi-tier workforce emerging, where the higher wages of the core workforce were paid by the lower wages and lack of job security of the contract workers. If the ILO were to promote harmonization of working conditions in the steel industry, two specific principles had to be respected: trade union membership must be accepted as a universal right; and the goal of industrial relations should be "upward" harmonization, with an equitable distribution of the fruits of added value as a key element of sustainable economic growth. The Workers' spokesperson concluded by expressing his group's disappointment with some aspects of the report for the Meeting. Some of the information was out of date; there was no reference to gender discrimination; the report was biased towards the employers' perspective, particularly with respect to trade union membership and attempts to undermine the role of trade unions. More should have been said about the effects of globalization and about training and its financing. The current age structure of the workforce and the trend towards contracting had also to be addressed further because of their repercussions in terms of redundancies and training and the impending shortage of skilled workers.

8. A spokesperson for the International Iron and Steel Institute (IISI) outlined aspects of the Institute's activities which might be of interest to the Meeting. The 52 countries in which its members operated produced over 70 per cent of world steel production. IISI currently provided the management for a consortium of 35 steel companies developing an "Ultra-light Steel Auto Body" to produce a passenger car 30 per cent lighter than existing models, without compromising safety. The Institute co-organized with the United Nations Environment Programme (UNEP) a conference entitled "Steel and the Environment" in Stockholm in 1997. A joint UNEP/IISI report issued at the conference provided a comprehensive review of environmental issues facing the steel industry. The continuing need to produce iron from smelting iron ore meant that each tonne of steel produced in an integrated steel plant generated almost 2 tonnes of carbon dioxide. However, IISI felt that the issue of global warming should not be highlighted at the expense of other environmental issues that had a sounder scientific base. In particular it should not be tackled through the imposition of "carbon taxes" which could displace production to less efficient producers, leading to an increase in carbon dioxide emissions. IISI's policy was to encourage voluntary programmes to reduce energy consumption by the steel industry. Education and training for young managers and plant safety were other areas receiving attention. A new study is being undertaken by IISI to identify best practices to achieve the goal of a 100 per cent accident-free working environment in the steel industry. A special forum -- the International Stainless Steel Forum (ISSF) -- has been set up for the world's stainless steel producers.

Competitiveness and productivity

9. The spokesperson for the Workers' group noted that, although trade unions could play a significant role in implementing technological and organizational change in the steel industry, they were often denied any meaningful role in the planning of change. This attitude arose from management regarding labour as a factor of production whose costs had to be reduced as an imperative. It was a view that should be rejected. Productivity and competitiveness were determined also by training and capital investment, but workers and their unions had limited influence over the former and even less over the latter. True job security could only be achieved if the enterprise was viable; but workers alone should not be asked to reduce their rewards to ensure competitiveness in the world market to the benefit of shareholders and management. Experience in Germany had shown that the most effective means of establishing a culture of product and process innovation was through worker participation. Joint management-union committees should be established to discuss and implement technological and structural change as part of the process of improving working conditions and wages. The spokesperson concluded by wondering what was the ILO's position on companies which deliberately denied employees the right to join or form a trade union, and the countries that allowed this.

10. The spokesperson for the Employers' group noted that the point for discussion referred to "the scope for cooperation between employers' and workers' organizations in planning and implementing technological and organizational changes" and considered they did not have a role to play in the planning process. Whatever role that existed was for employers and workers at the company or shop-floor level. The adoption of new technologies and the replacement of existing ones was driven almost entirely by customer requirements. The Meeting should thus be reviewing ways to respond to the demands of customers in order to ensure the future of the industry. Even though much of the industry was currently experiencing a period of prosperity, it was bound to be challenged when it hit the inevitable negative phase of the cycle. The Meeting should thus consider the role of the various parties. The primary role of workers in technological and organizational change was at the implementation stage of the process at the company level. He agreed with the Worker spokesperson that there were many instances when workers had not been given the chance to participate in the implementation of the strategies leading to change. The Employers considered that an environment could be developed at the company level to ensure that workers and managers came together to suggest and implement technological changes required to meet the challenges of the future. As technological change was driven by customers, the industry had to be ready to react quickly to remain and become more competitive.

11. A Worker member from the United States stated that for partnership to be genuine it had to be on a negotiated and equal basis, and not merely a "suggestion-box approach". In the US steel industry linking productivity provisions to employment security made organizational changes more acceptable to workers because that way they were at least assured they would not be negotiating themselves out of a job. This was employment security rather than job security because workers displaced through technological change, job restructuring or new work systems would be retained in the workforce. Other issues such as just-in-time delivery and quality standards could also be addressed through similar programmes.

12. A Worker member from Germany pointed out that steelworkers had ample know-how of product processes. Workers should therefore be involved as equal partners in measures to raise productivity. Two other conclusions he drew from this were that the flatter hierarchical structure in industry that was a result of rapid innovation meant that workers had to be involved in decision-making; and there was a need for a framework for negotiations between the social partners. The latter should be put in place by government in the context of national legislation.

13. A Worker member from India stated that workers' organizations appreciated the need for increasing competitiveness in the iron and steel industry, but there were many ways of achieving this -- for example through efficient operation of plants, optimum utilization of capacity, and organizational changes. In practice, however, particularly in developing countries, reduction of manpower had become the main means, often carried out drastically without regard to workers' morale or the working conditions of the remaining workers. Productivity and competitiveness could also be enhanced by reducing stress and strain on workers.

14. An Employer member from Germany emphasized that workforce reductions were inevitable, at least in industrialized countries. Increased productivity required staff restructuring and new forms of organization which included greater worker participation, but not in a rigid form.

15. An Employer member from India noted that there was unanimity about the dimension and direction of global change and its likely impact on the industry. The industry had to identify the technologies to be adopted; competitive advantage was linked to the optimum utilization of all resources, including human resources; and productivity could be increased through the adoption of agreed performance standards.

16. The spokesperson for the Workers' group was disappointed to hear that employers saw no role for workers' organizations in planning and implementing technological and organizational changes. He also expressed his disappointment in the implied distinction between "workers" and "management" in the Employers' statement.

Human res ources management

17. The spokesperson for the Employers' group noted that there was an overlap between the second and third points for discussion. As emphasized earlier, the group recognized the need to undertake human resource management analysis. Because the industry was facing an ageing of its workforce, there was a need to train new entrants regardless of whether or not they were union members. The Employers' group considered it vital to find a way to work together with workers' organizations to address the culture of workers in the industry to ensure they would accept change and recognize the need for continual development. It was essential to develop a more effective recruitment strategy which would take into consideration not only what was immediately required of the workforce, but also who would be required for work in the future. Training needs for the future had to be identified to enable companies to retain their competitiveness and thereby continue to be able to provide jobs. In order to remain competitive, employers had to review the way they did business and workers the way they looked at business. Methods of working closely together had to be developed so that a culture of change could be created and accepted.

18. The spokesperson for the Workers' group said that "human resource management" should be defined before its merits or demerits could be judged. For many employers/managers human resource management was simply a strategy to reduce costs, without any concern for the welfare of the employees or, indeed, the company itself. Human resource management was also often the means through which management, by reinforcing individualism, sought to undermine the collective values which found their expression in trade unionism. There was a need for companies to develop a flatter management structure, along with the establishment of relationships based on trust and mutual respect, so as to combine the interests of both management and workers to the best effect. The identification of future labour requirements should be an integral part of the planning process and dealt with by the joint committee proposed earlier.

19. A representative of the Government of Germany stated that social partnership was well established in her country and it had contributed to solving many disputes. In particular it had enabled acceptable outcomes with respect to the retrenchment of older workers from the iron and steel industry, albeit at enormous cost and with sacrifices by both workers and employers. The German model of social partnership could be commended to other countries.

20. An Employer member from the United Kingdom drew attention to points he considered vital for the future of the industry, given the fact that the number of employees would certainly decline further in the light of continuing changes in technology and work organization. The age pyramid had to be taken into consideration by governments, employers and workers' organizations and adequate skill standards of young recruits ensured. Future competence and training requirements had to be reviewed against the backdrop of a rapidly changing industry. The industry had proactively to ensure that current and new employees would be motivated to keep the industry alive and competitive. Old forms of contracts of employment would have to be dropped and new ones, relevant to the situation and reflecting the points he had made, developed.

21. A Worker member from Australia stressed the need for genuine partnership to bring about the "culture of change" that the Employers' spokesperson had referred to. In Australia workers had been subjected to so many massive changes they were now sceptical of what they saw as new management fads. Experience from surveys in Australia showed that productivity levels had improved in companies that had introduced programmes of change through a genuine partnership with workers and their unions, as opposed to the imposition of change in some non-union companies.

Recruitment, employment and training

22. The spokesperson for the Workers' group recognized that job security was linked to company viability, but this precisely required that there should be continuity in employment policy, such that skills acquired by older workers are passed on to the younger workers. The past restructuring of the industry had resulted in the retrenchment of predominantly older workers. Low levels of recruitment had combined to push a majority of the workforce in a narrow age band, storing up problems for the future. Agreements should be concluded which provided guarantees of training and retraining to likely surplus workers, while new workers should be encouraged to acquire additional skills during the course of their employment; for which they would be compensated. The basic framework for this should be a negotiated vocational training programme which should lead to nationally, or even internationally, recognized qualifications and identifiable career paths. Where companies could not provide such courses themselves, government-approved organizations should do so, either on or off the job. Companies should be encouraged to train their older workers in computing skills, which they were perfectly capable of assimilating. If funding was available for training older managers, why not for training older workers? Any strategy that discounted the knowledge and experience of older workers was wrong. Since many skills were specific to the steel industry, a list of required/desirable skills could be drawn up taking account of likely future evolution of the industry and the needs of existing workers. The problems being faced by many steel operations in Central and Eastern Europe were resulting in greater job insecurity and a deskilling of the workforce.

23. The spokesperson for the Employers' group reiterated the importance of the viability of the industry as mentioned by the Workers' group. Schools at all levels had to help young persons to develop skills, commencing already at an early stage of the educational process, in order to ensure that the new recruits would have the required skills. Much could be done prior to the point of employment. Retraining of existing employees was also important, but employees themselves often resisted and they had to be convinced of the need for change and provided with the means to undertake it. Employers did not want to lose workers with many years of valuable experience and knowledge, so it was vital for them to be convinced of the benefits of training. At the same time, workers entering the industry had to have adequate skills and receive adequate on-the-job training opportunities. School systems should be encouraged to spend time with all industries so they were better aware of the basic requirements of new workers. The Employers' group did not agree to an automatic link between remuneration and training.

24. A representative of the Government of Canada said government had a vital interest in good planning to ensure that downsizing of the workforce occurred in an orderly fashion. In this process, workers' needs should be properly assessed and addressed. In Canada a bipartite association -- the Canadian Steel Trade and Employment Congress -- was entrusted with this task and had scored some notable successes, presenting itself as a model worth emulating.

25. A representative of the Government of the Republic of Korea said that his country's rapid industrial development started in the 1970s, with the establishment of the chemical and other heavy industries. Changes in technology, particularly fast during the 1990s, had led to vast changes in production processes and industrial relations. The requirement for multi-skilled steelworkers meant that recruitment and training were the major factors in human resource management. Since Korean law made mass dismissals all but impossible, there had been no massive redundancies. Rather, the workforce was being restructured through natural attrition. He cited POSCO's own technical high school as a good example of the commitment to careful pre-employment training.

26. An Employer member informed the Meeting that his country, Germany, had a dual training system in enterprises which consisted of two phases -- practical training in the enterprise itself and training in an educational institution. It was essential to ensure that employees "learned to learn", as this was an important component of any training programme. There was a need to discuss and develop training programmes in a concrete manner. In Germany, if a qualification was required for a particular job and it was acquired through training, it would be compensated for. However, this was not the case for an employee who had qualifications which were not required for the performance of a job.

27. A representative of the Government of France recounted the turbulence experienced by the industry in her country, with employment declining by two-thirds in the last two decades. She reiterated the point about the peculiar age pyramid in the industry, which required that training programmes be carefully and specifically tailored for it, particularly at the level of the enterprise. In particular it had to be recognized that new workers were more attuned to computer technology than were older workers. The State had its own role to play in training by way of general education, but it was important for employers and workers' representatives to express the sector's educational needs.

28. A Worker member from the United States said several innovative approaches were available in the area of training and career development. She cited the example of the "Institute for Career Development" in the United States, in which workers in 13 companies at 53 sites were participating on a voluntary basis. The courses were self-designed and self-directed and involved both craft and non-craft training, including computer-related training. The fact that an important and increasing proportion of the workforce in the companies concerned were enrolled in these courses voluntarily demonstrated their efficacy. Training covered both incumbents and new recruits.

29. A representative of the Government of China informed the Meeting of his Government's recent ratification of the Employment Policy Convention, 1964 (No. 122), by his country. This should help the iron and steel industry to implement national employment policies and tackle the problem of low productivity and surplus workers. Various policies had been deployed for this -- reorganization, diversification, retraining of existing workers, and the establishment of employment service centres. Enterprises were also being encouraged to establish subsidiaries to create employment and shoulder some of the responsibility for dealing with surplus labour.

30. A representative of the Government of the United Kingdom gave an account of training policy in his country. Up to recently training was the responsibility of employers within a framework laid down by the Government. Since 1986 much effort had been put into establishing occupational standards of competence. It was estimated that 4 million trainees were currently engaged on these courses and 1 million already held National Vocational Qualifications. The recession of the 1980s had resulted in a reduction in apprenticeships, prompting the Government to provide funds to industries to develop modern apprenticeship courses, the first of which was in the steel industry. This year had seen the establishment of national training organizations charged with determining the future education and training needs of industries, among which iron and steel figured prominently. The partnership between business and education would continue to be an important aspect of skills training in the United Kingdom, facilitating a match between the demand and supply of skills.

31. Turning to the fourth point for discussion, the spokesperson for the Employers' group said that there should be different roles for governments, employers and workers in meeting the training and retraining needs of steelworkers. As emphasized earlier, governments had a vital role in educating young people and ensuring they acquired numeracy, literacy and social skills, the latter to prepare them for teamwork, and attitudes and skills that would enable them to undergo further training. Employers and workers could help governments define the education needs of the workforce of the future. Training responsibilities, however, rested primarily with employers and workers, with some assistance from governments. Since restructuring meant increased viability and competitiveness, training programmes had to be based on an analysis of company and workplace requirements, including such issues as the age distribution of the workforce. Training should encompass existing and new workers and be based on a concept of lifelong learning aimed at a continuous process of trying to improve and adapt skills. This concept was vital for the industry and there was a need for employer and worker cooperation to foster that attitude. The Iron and Steel Committee of the ILO at its Twelfth Session in 1992 unanimously adopted good conclusions on training that were mainly focused on restructuring, including the roles of the various parties. Conclusions No. 97 were of particular relevance and should be reconsidered for reaffirmation at this stage.

32. The spokesperson for the Workers' group elaborated on the respective roles of trade unions, employers and government in the training of steelworkers. Trade unions should participate in the design, implementation and evaluation of training and retraining programmes in order to ensure their suitability to the designated jobs. Governments should establish an industrial policy based on foreseeable development in the industry. Beyond this, it was a government responsibility to fund training programmes, within a framework of nationally and possibly internationally recognized qualifications. Employers should support the development of such a framework and also commit themselves to the establishment of a tripartite council for the industry. The speaker referred to the parlous state of training in some countries in transition to a market economy, including where large-scale redundancies had occurred. The Workers' group wholeheartedly supported the Employers' views concerning the validation of conclusions No. 97 of the Iron and Steel Committee.

33. A representative of the Government of Canada, speaking on behalf of the Government group, made a general point on the issue of retraining of older workers. Opportunities for this should be seized to avoid their retrenchment as this could have grave social implications in view of the difficulty such workers had in finding alternative sources of employment. Such efforts should form part of human resource strategies in the industry.

34. A Worker member from India pointed out that although in his country the network of training institutes was wide, most facilities were ill-equipped to provide the sort of skills, particularly multi-skills, needed in the modern steel industry. He looked to the ILO to provide assistance in this area in the region.

35. A Worker member from Germany noted that training could take place during working time and be tailored to production cycles. Training should be a continual process and it was the quality of training that was important, not just the quantity, including in specialized and social skills. Environment protection and occupational safety and health should also be part of the training curriculum.

36. A representative of the Government of Venezuela described his country's experience with restructuring which had resulted in a significant reduction in staffing. The Government had established an employment promotion fund and scheme to determine the skills of workers and develop job profiles. This was followed by a matching of skills and market requirements, after which relevant training was defined and implemented. Retraining was organized over a one-year period and workers received subsidies amounting to 70 per cent of their wages. The success of the retraining and reinsertion programme was largely due to the cooperation between workers and employers. With regard to the ongoing privatization of the steel industry, redundant workers will receive six months' retraining with 70 per cent of wages subsidized. Older workers were taken into account and specific programmes for them included training in the setting up of small-scale businesses. This initiative had been welcomed by older workers and the trade unions.

37. A Worker member spoke on the experience with privatization in Russia. In a large majority of enterprises control was now in the hands of shareholders who had so far shown little interest in training and retraining. Managers, who understood the position, were constrained from taking action. Collective agreements had been signed but the Government, preoccupied with macroeconomic problems, remained a passive onlooker. His trade union did not espouse safeguarding employment at any price and accepted the principle that workers should be paid based on their performance. A 22-point programme had been drawn up as a framework to carry out the necessary substantial redeployment of the workforce.

38. A Worker member from the United States cited the success achieved by a comprehensive joint training and development programme that provided skills training and retraining, counselling and job search assistance for workers likely to be laid off with little prospect of returning to work. The programme had all the elements of tripartism -- it had the support of the labour movement and received cash and in-kind contributions from employers and grants from federal, state or local government.

39. A representative of the Government of the Czech Republic stated that the report prepared for the Meeting was well written and balanced, and provided a good opportunity for discussion. Since the report did not focus on the Czech Republic he provided some current information. In 1990 the Czech Republic had embarked on an economy-wide programme of restructuring in the transition to a market economy. Between 1990 and 1997 around 50 per cent of the workforce moved or changed jobs. Unemployment, at about 3 per cent, was relatively low. Referring to active and passive measures of labour market policies, he noted that 20 per cent of the funds available had been devoted to active policies such as training and retraining. The Government provided subsidies to employers to fund training in relation to future needs. As mentioned by the spokesperson for the Workers' group, the identification of future labour market needs and skills was often quite difficult to determine. During restructuring, unemployment schemes did not work well, but concrete measures in regions were more effective. Tripartite advisory boards had been set up and it could be concluded that this had been an appropriate approach. In a major steel town, 3.5 million Czech crowns had been allocated to training the workforce affected by restructuring. The result had been the retention of a large number of workers.

40. A representative of the Government of the Republic of Korea said his country attached great importance to human resource development. Four components of human resource development were covered by national law. First, enterprises with 1,000 or more workers were required to train a certain proportion of their workforce, mostly new entrants. Companies not providing training were required to pay a levy. Second, skill upgrading was conducted in companies where new skills were required as a result of changes in production methods or new technologies, which enabled the companies to retain current workers. The funds were provided from the employment insurance fund. Third, training for unemployed jobseekers was provided and administered by government placement services, which matched demand and supply and paid unemployment benefits to jobseekers. Fourth, voluntary vocational training was provided by non-profit private institutions, which charged nominal fees. This vocational training system had contributed greatly to industrial development in the Republic of Korea since the 1960s. Rather than focusing on a narrow approach to skill development, multiskilling was now the mainstream of vocational training.

41. Responding to the statement made by the representative of the Czech Government, a Worker member pointed out that while it was true that in the transition to a market economy, one-half of the labour force had had to change jobs, this was done without any retraining. There was a lack of an active labour market policy as well as an industrial policy. So far, the process of liberalization could be considered anarchical and often bordered on the illegal. Notwithstanding the allocation of money for training, the Government was spending very little.

42. A Worker member from Italy reiterated the importance of retraining retrenched workers to help them to find alternative employment. This would be preferable to the past practice of providing only social assistance in the form of unemployment benefit.

43. An Employer member from Germany drew a distinction between training and retraining responsibilities. The dual system of training in his country was financed exclusively by enterprises and consisted of a three-year cycle at the enterprise and in an educational institution. During training, the trainee was provided with a small wage and materials, covered by the enterprise. Till now this was an attractive scheme and the enterprises were therefore willing to bear the cost. Instituting a system requiring the payment of a compulsory training levy would not be favoured. Moreover, it could also lead to a wasteful bureaucratic state system. On the other hand, retraining was the joint responsibility of enterprises, workers and governments. There had to be a legislative basis for the payment of unemployment benefits and other facets of retraining. Therefore tripartite agreement was necessary, as was some worker contribution to the cost.

44. The spokesperson for the Workers' group pointed out that two questions for discussion assumed that a competency-based job structure was preferable to a seniority-based structure and, secondly, that teamworking and multiskilling were unquestionably beneficial to workers. These assumptions may not be borne out. The seniority-based system was introduced to avoid favouritism but was still based on competence. Trade unions saw the unilateral imposition of a competence-based system, together with a flatter structure, as another attempt by management to undermine their role. However, there were competency-based agreements that were negotiated with trade unions and these were seen as a positive trend. Teamworking and multiskilling were being introduced to reduce the level of employment. Moreover, teamworking was often accompanied by management selection of the team leaders, with little regard for experience and seniority. Such action could be detrimental to worker morale and team spirit. The resort to contract labour was also difficult to reconcile with the notion of team work. However, given the right conditions -- such as the development of social as well as technical skills, joint partnerships to implement agreed programmes, and the negotiated establishment of competency-based classification structures -- the shift towards teamworking and multiple skills could be successfully achieved. It was regrettable that nothing along these lines had been achieved in most of the countries in transition.

45. The spokesperson for the Employers' group said that the transition from seniority-based to competency-based structures, teamworking and multiskilling systems came together in a precise manner. He reiterated that remaining viable and the ability to continue to grow and be able to provide jobs was dependent on satisfying customer demands. Industry had to respond to its customers and even to its customers' customers in an ever changing market. One way of responding to demands was to become more efficient, another was to improve quality. However, it had to be emphasized that the industry needed to ensure it had a more effective, more productive and more satisfied workforce. To achieve this, the necessary tools had to be provided. There were workers, either existing employees or new entrants, who aspired to advance and improve their skills, knowing that self-improvement was also good for the enterprise. It was important for workers to feel self-satisfaction. Employers had to provide training, but results from training had to be achieved. Multiskilling and teamwork training had the objective of creating a more productive culture. There were different approaches, with teams of workers sharing functions or one worker performing many functions requiring different skills. There was an automatic flattening of structures in organizations if teams produced more with less. The result was a more satisfied workforce. New competencies should be recognized on a pay-for-performance principle. Open communications were vital to enable workers and employers to judge which competencies were necessary to respond to customer demands -- whether new trained employees had to be recruited or the retraining of existing workers or attitudinal change was required. The old system of job demarcation had to be put aside in favour of a flatter system of team participation. Avoiding favouritism when selecting team members was essential to the team's success. Remuneration methods had to be reviewed to link them more closely to performance. The seniority-based system was introduced as a means of rewarding loyalty when full employment was the norm. Nowadays, as fewer workers were required, the best qualifications were needed and rewarded accordingly. Both points had to be dealt with by employers and workers, with some involvement from governments in defined areas.

46. A representative of the Government of the United Kingdom agreed with the Employers' view on this question. The point of discussion seemed to imply that seniority and competence were incompatible. Training was useless unless it led to competence. Governments could only provide the framework to allow this to happen. The British experience relating to the developing of competencies was one dating back over ten years and the approach mentioned by the representative of the Government of Venezuela was much welcomed as it was similar to that of the United Kingdom. However, it was the responsibility of employers to define what was required in the workforce and for the trade unions to ensure fairness.

47. A Worker member from Australia underlined the point that a changeover from a seniority-based to a competency-based structure implied a major cultural change. Older workers who had devoted their lifetime to the industry stood to bear the brunt of this change. In Australia there was an ethnic dimension to this, since the iron and steel industry had been manned by successive waves of immigrants. They had contributed to the development of the industry, but now they risked losing their jobs. Their prospects for re-employment were even more remote than for most other older workers since they also suffered from a lack of fluency in English. They needed looking after by the management that had profited from them.

48. A Worker member from Canada took up the issue of contract work that was raised in the report. A number of questions concerned the workforce in the steel industry. How could we foster a highly motivated workforce if it had to work alongside low-paid workers? How could team spirit be fostered if core workers in the industry had to work with outsiders? How could occupational safety and health be monitored under these conditions? Would not the benefits of trade union membership be eroded as a result? How would women and representatives from minorities gain access to the workforce if contractors became the norm? All these reservations pointed to the need to guard against excessive contracting out.

49. A Worker member from Germany observed that it was time to move away from the old ways. Management could be considered as a "customer" of the labour force and had to guide the process of industrial reorganization. Flatter structures were in everyone's interest, provided the amount and flow of information was satisfactory. Skill requirements had to be carefully planned and implemented. Hence national consensus was important, particularly in terms of bilateral agreements between employers and workers. He too expressed his caution on contract work and saw a need to "in-source" some work that was contracted out in order to improve quality and competitiveness.

50. A Worker member from France reported on the success achieved so far in implementing a national agreement on competency involving trade unions and employers. Without overturning the centrality of collective bargaining, the agreement sought to tie wages to a person's skill level rather than to a particular post, as in the past. In this way the worker would have an incentive to upgrade his or her skills and thus take charge of his or her career development. A counterpart measure required being able to rate skills appropriately. The agreement was initiated in 1990 and, although far from being fully implemented, assured well for the future.

51. The spokesperson for the Employers' group said that, in the light of the discussion of a new Convention on contract labour by the International Labour Conference in 1997 and 1998, his group was not prepared to discuss contract labour and would defer to the Conference.

Labour -management relations

52. The spokesperson for the Workers' group made reference to various types of models of worker/trade union participation in corporate governance. The two-tier structure in Germany adopted in 1952, ensuring accountability of the executive level board, had served the country well as vouchsafed by the high level of productivity there. On the other hand, the UK model of "worker directors" had been of limited benefit to the workers since the directors were bound by rules of confidentiality. European works councils, introduced for all large transnational companies, had also proved to be limited in value. A more binding mechanism for consultation and participation was needed. However, agreements reached in the United States with major steel companies to establish and provide comprehensive partnership training had many positive elements to commend them because they aimed to ensure direct participation of the trade union in all major decisions. Genuine participation required mutual respect and the recognition of the needs of all the parties concerned. The speaker referred again to the severity of the situation in countries in transition where employee involvement in company decision-making was generally suppressed by management as well as by legislation.

53. The spokesperson for the Employers' group agreed that there were many forms of workers' participation throughout and even within countries from company to company. Generally, employers supported the concept of workers' participation in decision-making, but the issue was what form it should take. The closer the workers' representatives were to the workplace, the more effective the participation. Participation should not be dictated to a workplace, but emanate from within. In his own company, there were varying degrees of success. Much depended on plant management, employee groups, trust and mutual respect. Where there was a climate of trust there had been successful initiatives. However, in plants which had a long-established culture of mistrust, there had been less success. The industry was involved in global competition and workers and employers had to work together to survive. It was vital to provide employees with information and provide feedback on performance to show how a company was performing in relation to others. Information should flow two ways: from employers to workers, and vice versa. Teamwork should be seen as a bottom-up rather than a top-down matter and was a good means to involve workers more in decision-making. Teams should be involved in improving communication lines in all directions so that workers' participation could increase. Employers and workers had to be encouraged to expand their interest and activity in this area.

54. A representative of the Government of China said that in China, reliance on the working class was a political principle that enabled workers to participate in decision-making in enterprises in different ways. For example, a congress of workers' representatives deliberated on policies and productivity. There were quality-oriented and self-managing groups. Individuals had an economic income that linked them closely to the performance of the enterprise. Workers were held accountable and rewarded for their achievements.

55. A Worker member from the United States elaborated on the New Directions Program of the United Steelworkers of America which aimed at giving workers an unprecedented say in their own welfare and the performance of the business. Partnership agreements signed so far included the following elements: inclusion of a union nominee on the board of directors; union participation in management meetings for reviewing achievement of the overall business plan; information-sharing by the company; provision for training in effective participation techniques. There was even a clause giving employees and the union full voice in all decisions involving the installation of new technology. All this was being achieved without compromising traditional trade union objectives.

56. The spokesperson for the Employers' group recalled that the question of how the separate but related interests of the social partners could be achieved had been discussed at earlier sectoral meetings. As well as separate but related interests the social partners had joint interests. It was incumbent on employers and workers to review their respective organizations and determine whether they were structured appropriately to respond to the challenges of increased competition. The proper implementation of new technologies was important but so was their successful integration into the workforce. The social partners at all levels had to be involved in implementing the various strategies. Workers had to be empowered and continue to receive appropriate training and information, including business data. An enabling environment had to be created in which workers and employers could interact to achieve their joint interests, particularly with regard to the competitiveness of the industry in the face of alternative materials. Negotiations and discussions should as far as possible be at the shop-floor level to ensure maximum impact. Workers and employers needed to devise a programme and thought-processes to address the competitive factors of the steel market.

57. The spokesperson for the Workers' group reiterated that the important concept of employment security could ultimately be guaranteed only in a successful company. Adequate remuneration of all parties was important in achieving this. Unfortunately, recent years had seen gross distortions in the distribution of added value in terms of wages, dividends and salaries. It was anomalous that steelworkers were required to have more skills and responsibilities and work more intensively in order to compete when they were often faced with stagnant or falling remuneration, while directors and shareholders received rich rewards. The responsibility of governments in this was to implement, within the legislative framework, agreements resulting from negotiations between management and trade unions. While unions should encourage their members to participate actively in technological change and work reorganization, it was management's responsibility to improve work organization. The steel industry could not live in isolation; it shared in society's problems and had an important role to play in solving them.

58. A representative of the Government of Canada noted that governments had an interest in workplace participation and cooperation as this ensured that adjustments were planned and implemented together in order to mitigate the social costs which could result from restructuring.

59. A representative of the Government of France referred to the regulatory framework on labour management relations in France and in Europe, where worker participation at the enterprise level was the general rule and issues were normally dealt with jointly at that level. Where there were difficulties, the government could be obliged to arbitrate, which was often authoritarian and less satisfactory. In France, workers' participation also included programmes for workers' share in profits. In this context, employers and workers had to discuss measures within the framework of enterprise committees. There could be problems in smaller enterprises, such as mini-mills.

60. A representative of the Government of Venezuela considered that the participation of government could be relevant at different levels, generally and through tripartite committees. Generally there was the question of the enactment of labour laws on such issues as social security, including pensions, unemployment benefits, recreation, housing and medical schemes. These issues were discussed within tripartite committees in his country and were then referred to the Congress for approval. As mentioned by the previous speaker, labour and management had a responsibility, but it was difficult to decide on a pre-established system. Rather, there should be a flexible system based on mutual trust between parties. There would be success if there was a greater participation by both actors in this area.

61. A Worker member from Australia, referring to the distribution of the value added in the steel industry, said that productivity had increased tremendously in the Australian steel industry in the last decade. Despite many job losses and changes in work organization, the steel unions had cooperated. Share prices had often risen following such measures, pointing to a worsening distribution of the added value. Globalization of the industry meant that global financial institutions were able to dictate terms to local companies. What was the ILO's stance on such matters in a globalized world economy?

62. An Employer member from Australia added that the industry was facing increasing difficulties throughout the world and it was essential that cooperation to protect employment as far as possible be greatly increased. The positive situation in Australia was due to worker cooperation and significant capital investments. Plant closures had involved joint discussions which had led to agreements on training, job creation and counselling.

63. A Worker member from Canada built upon the point made by the spokesperson for the Employers' group about the desirability of inculcating a "culture of change" in the steel industry. Why should the steel industry be singled out for this? How could steelworkers be expected to embrace change when social safety nets were being eroded everywhere?

64. Turning to the question of labour-management relations in a more global industry, the spokesperson for the Workers' group noted that increasing globalization required closer cooperation at the international level. World company councils, such as the one established by SKF and the International Metalworkers' Federation, provided opportunities for worker representatives from different countries to come together to share information on current issues and future trends affecting that industry. Enlightened multinational enterprises (MNEs) could implement "MNE codes of conduct" on occupational safety and health and trade union rights. Experiences gained through various tripartite bodies created by the European Coal and Steel Community (ECSC) could be used as a basis of a global framework to facilitate continuing dialogue between the social partners. The ILO could organize an appropriate forum to consider how the benefits of ECSC cooperation could be extended to other countries.

65. The spokesperson for the Employers' group stressed that the industry was involved in a global market-place and employers and workers had to be in the forefront of productivity and quality. The key was to think internationally while operating locally. Dialogue with workers had to be based on global issues and information on global competition had to be shared with them. To survive, all partners had to participate effectively and competitively, within the framework of global competition.

66. A representative of the Government of Germany supported the approach mentioned by the spokesperson of the Workers' group. The positive nature of the ECSC had been referred to and he hoped that the basic principles of the work will continue to exist. The ILO could be involved in such an initiative.

67. A Worker member from Canada noted that the Employers' spokesperson had referred to the need to "benchmark" data concerning wages and other conditions of work in the steel industry. He suggested that this should also be done to document the experiences of workers in the steel industry across the world.

68. A Worker member from Germany added that the ECSC was scheduled to terminate in 2002. Hence it was important that its accumulated technical work be preserved to provide guidance in the considerable restructuring of the industry that still lay ahead. This work could also be relevant in the countries in transition for the same reason. He hoped that on its dissolution another body could be formed.

Environmental management

69. The spokesperson for the Employers' group noted that a distinction had to be made between external and workplace environments, expressing the view that this Meeting was not the appropriate or best forum for the discussion of issues relating to the external environment. This view was echoed by other Employer members. Nonetheless, it was important for the iron and steel industry to be concerned about the issue. Society placed very complex pressures on the industry and sometimes various interest groups did not comprehend the effects these could have. The life-cycle assessment of products was very important to ensure their quality, use and recycling. In relation to the workplace environment, the subject had been reviewed extensively by the Iron and Steel Committee in 1992 and it was clear that good practices led to improved working environments. Employers and workers needed to work together on workplace environments, as was the case in his country where workplace committees had achieved successes. The key to improvement was training and ensuring that workers and employers understood their responsibilities, which often merged. A conducive environment could lead to the successful resolution of problems.

70. The spokesperson for the Workers' group disagreed that this Meeting was not the forum for discussing external environmental issues. There was a clear link between the internal and external environments and effecting an improvement in the internal environment of the plant would have a beneficial impact on the external environment. This link meant that the two issues could indeed be addressed in a forum such as this. Other Worker members spoke in a similar vein. The introduction of new steel-making technologies would increase the need to monitor their impact on both the internal environment of the plants and the environment at large. Regarding the former, he noted that a number of down-stream steel-processing activities made use of potentially hazardous organic solvents and steel companies had a duty to ensure that their employees were both aware of and adequately protected from such dangers. On the external environment, the spokesperson emphasized that companies must be held accountable through taxes for the pollution they cause. This "environmental prerogative" should also extend to subsidiary companies established abroad to prevent "environmental dumping". Indeed, a system of international certification should be established to ensure that technology transfer to developing countries did not jeopardize the safety of workers in such countries. The speaker again referred to the situation in Central and Eastern Europe where environmental legislation was difficult to enforce because of a general lack of resources. All major steel plants should establish joint trade union/management environmental committees to ensure the maintenance of environmental standards. The establishment of an "environmental benchmark" for the industry would be a part of their responsibility. Trade unions did not accept the view sometimes expressed that there was a trade-off between jobs and environmental standards. Technology existed to control harmful side effects of steel production, without necessarily sacrificing job security. Workers' participation in environmental and social research was an integral part of the industry's obligation to its employees and society at large.

71. A representative of the Government of Canada emphasized that there was clearly a role for governments and recalled the provisions of resolution (No. 102) concerning the protection of the working environment in the iron and steel industry adopted by the Iron and Steel Committee in 1992, which called upon governments to "to develop and implement standards based on the best scientific knowledge regarding the protection of the working environment in the iron and steel industry ...".

72. A representative of the Government of China noted that it was the responsibility of society as a whole to protect the environment. In China there were a series of regulations and policies in this field and a strict inspection system on environment protection. The iron and steel industry had invested heavily in this field and the pollutants had diminished, though the output of iron and steel had markedly increased. The Ministry of Metallurgical Industry had promulgated the Decisions on Reinforcing the Work for Environment Protection to try to bring the old sources of pollutants under control by 2000. The total amount of pollutants discharged should be no higher than those in 1995. Iron and steel enterprises were required to use clean energy to lower pollution levels and to have a timetable for pollution control. A supervisory and management mechanism for environment protection should be improved.

73. A Worker member from South Africa and several other Worker members supported their group's spokesperson regarding the suitability of this Meeting for a discussion of environmental issues. A precedent had been set in the meeting in 1992. He also found disturbing a sentiment sometimes expressed by management that a company's competitiveness had to take precedence over environmental concerns. Such a viewpoint was also heard in developing countries like his own.

74. A Worker member from the United States reiterated the point made by the spokesperson of her group about the presumed trade-off between jobs and the environment. There was no such trade-off, because companies who damaged the environment would eventually fail through consumer and government pressure. Thus workers had a double stake in environmental issues: they were the first to suffer the harmful effects of pollution and they were the ones harmed directly when their plants closed.

75. A Worker member from India noted that in his country, strict legislation in the last few years had led to a welcome improvement in the external environment, yet, because of relative neglect, the same could not be said of the working environment in steel plants. If society had to be protected against pollution, so should the individual workers who were the first to suffer from its effects.

76. A representative of the Government of the United Kingdom said that there were different views of what "environment" meant and for him recycling and waste management were also included. In the United Kingdom a 1994 regulation required that by 1999 managers of waste sites had to have a certificate of competency or they could lose their jobs. It remained to be seen what the impact on the steel industry and others would be.

77. A representative of the Government of Germany, noting the differences in views of the Employers and Workers, referred to the role of governments. It was their role to evolve environmental policies at a broader level. More and more governments were realizing the importance of environmental issues and taking actions. The outcome of the Summit Meeting in Kyoto in December would be important for the industry.

Role of the ILO

78. The spokesperson for the Workers' group preceded his group's proposals for future ILO activities with some general observations, which provided the context for the proposals. The ILO's role has always been to stress the importance of the link between social and economic development, by encouraging the upward harmonization of working conditions through the establishment of universal workers' rights. Recently it had been noticed that the ILO had joined the general consensus on the need for deregulation and trade and financial liberalization as a precondition for growth. The ILO publication, Employment Policies in Global Context (1996) was sympathetic to this. The trade unions did not subscribe to such views. Social development was the key to sustainable economic growth and the ILO had a significant role to play in this. The spokesperson for the Workers' group then made the following specific suggestions for future ILO activities: (a) efforts should be renewed to ensure the ratification by all countries of the seven core ILO Conventions (Nos. 29, 87, 98, 100, 105, 111 and 138) in order to encourage the upward harmonization of working and living conditions throughout the world; (b) given the wide-ranging impact of globalization, the ILO should convene a small tripartite meeting of experts to develop a research methodology to benchmark working conditions and work processes. Experiences of shop-floor workers should be fully taken into account for this. The results should be widely disseminated; (c) the ILO Tripartite Declaration on Multinational Enterprises and Social Policy should be widely disseminated to ensure that TNCs accepted full responsibility for their employees and the communities in which they operated; (d) the ILO should ensure compliance with minimum conditions in respect of wage standards and social conditions when regional economic groups, such as the European Union, expanded their membership.

79. The spokesperson for the Employers' group complimented the ILO on the changed format of sectoral meetings. The time frame was quite tight, but the emphasis on conclusions rather than resolutions enabled participants to focus better on issues and generated a better atmosphere for their discussion. However, the ILO should re-examine the format of the meetings in the future. Separate employer, worker and government meetings created a more contentious atmosphere. There should be a unique, genuinely tripartite meeting, which would be an open forum for understanding and a broad exchange of experiences. It should not be "us" and "them" but "we". Having said this, the sectoral iron and steel meetings were of great value as they provided for an opportunity to address common issues and understand differences in the industry worldwide. It was important for the ILO to produce information and it should ensure that countries, particularly the developing ones, received relevant literature.

80. The spokesperson for the Workers' group said the Workers' group also favoured openness, transparency, participation and sharing of experiences, but they did not want to see a tripartite meeting such as this end up as a "talk shop". Since it was the ILO's role to ensure democracy and proper living standards, the end result of a meeting such as this had to be conclusions regarding the action needed in the areas under discussion.

81. The spokesperson for the Employers' group said he was not advocating a "talk shop" but was recommending a different structure only.

82. A representative of the Government of Canada noted that there was a consensus amongst governments that the ILO should give priority to the promotion of basic occupational safety and health standards. Sound practice in this field could benefit all parties. The ILO should, through an examination of core occupational safety and health standards, examine issues in the iron and steel industry. The notion of core standards which were implementable and achievable should be reviewed by the ILO as had been the case for other matters.

83. The spokesperson for the Workers' group supported this proposal and added that the scope should be extended to the non-ferrous metals industry.

84. An Employer member from Germany said that in view of globalization in industry and the elimination of the traditional limit barriers between sectors, issues should be looked at more broadly. Rather than the ILO consider sectoral aspects and standards for a particular industry, it should widen its focus and look into cross-sectoral issues.

85. A Worker member from Germany remarked that a sectoral viewpoint was still essential since efforts to improve working conditions of workers had to address the specific conditions in an industry.

86. The spokesperson for the Workers' group and a Worker member stressed that a sectoral approach was needed to address specific sectoral issues. To do away with a sectoral approach amounted to excluding the iron and steel industry from the ILO's agenda.

87. A Worker member from Canada pointed out that there was no uniform methodology for ranking training in terms of its effectiveness. Everybody knew very well where their plant or industry ranked against others in terms of cost, but comparable statistics on the important subject of training were lacking. The ILO could contribute to this.

88. A representative of the Government of the Republic of Korea emphasized the importance of dialogue between parties to cope with the challenges of the industry. The ILO had vast tripartite experience and could facilitate the process at the national and international levels through meetings such as the present one. More meetings dealing with the industry in the twenty-first century should be organized and further case-studies should be undertaken and the information provided to member States at appropriate intervals.

Consideration and adoption by the Meeting
of the draft report and the draft conclusions
89. The Working Party on Conclusions submitted its draft conclusions to the Meeting at the latter's sixth sitting.

90. At the same sitting, the Meeting unanimously adopted the draft conclusions and the present report.

Geneva, 31 October 1997. (Signed) Mr. Naresh NARAD, Government Vice-Chairperson.

Conclusions on the iron and steel
workforce of the twenty-first century:
What it will be like and how it will work (3)  

The Tripartite Meeting on the Iron and Steel Workforce of the Twenty-first Century: What it will be like and how it will work,
Having met in Geneva from 27 to 31 October 1997,
Adopts this thirty-first day of October 1997 the following conclusions:

General considerations

1. The cyclical nature of the iron and steel industry means that the current growth in steel consumption and production is no reason for the industry to be complacent about the future. Competition, both internal and from alternative products, is intense and growing, spurred on by accelerating globalization, including the globalization of customers. Governments, employers and workers' organizations should work together to find ways to remove or minimize competitive disadvantages in order to ensure the industry's sustained growth and to promote the development of stable, productive and skilled employment.

2. Recognizing the need for a highly skilled workforce to meet increasing customer requirements, action by governments, employers and workers' organizations will be required if new entrants, with the requisite basic skills and aptitudes, are to be attracted to making a career in the iron and steel industry. Action to facilitate the retraining of workers already in the industry would be helpful in this regard.

Competitiveness and productivity

3. Technological change in the iron and steel industry is partly driven by customer requirements. Thus, in order to remain competitive and profitable, the industry must react quickly to customers' needs. Employers and workers' organizations should develop, in accordance with national law and practice, effective means of ensuring a culture of product and process innovation throughout the enterprise. They should use these means to discuss and implement technological and structural change that will enhance productivity, competitiveness and employment security.

4. Since employment security can only be assured in the longer term in a viable, iron and steel industry, links between employment, working conditions and productivity should be discussed between employers and workers' organizations at the appropriate organizational level.

Human resources management

5. Changes that are occurring in the iron and steel industry, particularly an ageing workforce, make it imperative that detailed analyses of human resources needs, of the consequences of change and of the existing and new human resources management techniques are undertaken jointly by employers and workers' organizations, and the findings discussed and implemented in an agreed manner. Sound human resources planning and analysis is important, not only because it enhances enterprise performance but also because it can mitigate the social costs of adjusting to change.

Recruitment, employment and training

6. A competitive iron and steel industry should preserve and create employment. The close link between employment security and competitiveness means that training, retraining, motivation and career paths are integral parts of employment policy. Joint efforts at the level of the enterprise should ensure that ageing workers are able and motivated to acquire new skills, as well as passing on their accumulated knowledge to new workers. Newly trained workers should, as far as practicable, have the opportunity to use their new skills and be rewarded accordingly.

7. New entrants to the industry should have adequate and appropriate basic skills and aptitudes and be provided with appropriate training opportunities. There should be a partnership among employers and workers' organizations and education, to ensure continual skill development and a matching of the demand for and supply of skills. It is desirable that industry articulate its entry requirements to the education sector.

8. Training should encompass existing and new workers and be based on a concept of lifelong learning aimed at a continuous improvement in and adaptation of skills. To this end, all workers should have ready access to training leading to the acquisition of both general and industry-specific skills, and be informed of the benefits and opportunities training offers.

9. Training and development programmes should be based on the industry's needs. To this end, employers and workers' organizations, assisted by governments as appropriate, should jointly examine changing job requirements and develop and recognize training criteria and the objective certification of training achievements.

10. The Meeting recalls and re-endorses conclusions No. 97, concerning vocational training, retraining and skill development in the iron and steel industry and the role of governments, employers and workers' organizations, adopted unanimously by the Iron and Steel Committee of the ILO at its Twelfth Session in 1992.

Work organization

11. Seniority and competence generally go hand in hand and promotion based on seniority should always be on the basis that the person is competent to do the job. Agreements to replace seniority-based promotion by criteria based on competence should ensure career development and be negotiated and agreed between the employer and workers' representatives concerned.

12. A flatter organizational structure resulting from new work organization can bring both empowerment and greater responsibility to those concerned. Traditional workplace roles need to be redefined and new relationships developed and understood at all levels of the enterprise. Consequential changes in remuneration should be established through collective bargaining.

13. Teamwork and multi-skilling are generally observed consequences of the iron and steel industry's drive for increased competitiveness. Enterprises must ensure that the workforce is motivated to embrace these new work methods and has the means to do so.

Labour-management relations

14. Different forms of worker participation in decision-making have been and are being used throughout the iron and steel industry, from board-level representation to shop-floor consultation. Their success has generally been linked to the degree of genuine participation, information exchange and mutual respect surrounding it rather than the level of participation. Merely mandating worker participation is insufficient; it has to be developed and agreed by the parties concerned.

15. Workers who are involved in the process of participation should receive the information and training necessary to enhance their participation.

16. Employers and workers have common interests, goals and aspirations as well as separate but related ones. Each of the social partners should review their own organization and ensure it is structured so as to be able to respond to all the challenges of new technology and new work practices.

17. The social partners should create an environment at the work place or enterprise level in which they can interact to serve their joint interests. A key to ensuring that related interests are realized may be through participation in the results arising from successful business operations.

18. Governments should consider providing the necessary framework to enable the implementation of employer-worker cooperation.

19. Increasing globalization requires closer cooperation between the social partners at the international level. Employers and workers' organizations should explore the establishment of ways in which information could be shared relating to global issues concerning the enterprise.

20. When the establishment of company-wide procedures in areas such as occupational safety and health, training and labour-management cooperation is being considered, there are useful lessons to be learnt from the activities of others, including the European Coal and Steel Community.

Environmental management

21. In an increasingly environmentally aware world, the iron and steel industry should continue to improve environmental protection. The introduction of clean production technologies can have a beneficial impact in both industrialized and developing countries.

22. Employers and workers' organizations have a role to play in identifying and implementing improvements in the in-plant working environment. There may be a role for governments in setting minimum standards.

23. Governments should adopt a balanced approach to the protection of the general and working environments and develop and implement environmental standards based on the best scientific knowledge. Governments, industry and the scientific community should promote programmes on protection against hazardous substances and research into their possible replacement and also disseminate the information widely throughout the industry.

24. Training and awareness raising are important means to improve the working environment and these activities should be focused at the plant level.

25. Major steel-producing plants should consider establishing joint environmental committees.

Role of the ILO

26. The ILO should actively encourage member States to ratify and implement the seven "core" ILO Conventions (Forced Labour Convention, 1930 (No. 29); Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87); Right to Organise and Collective Bargaining Convention, 1949 (No. 98); Equal Remuneration Convention, 1951 (No. 100); Abolition of Forced Labour Convention, 1957 (No. 105); Discrimination (Employment and Occupation) Convention, 1958 (No. 111); Minimum Age Convention, 1973 (No. 138)) in order to ensure a basis of minimum common standards that would facilitate improving working and living conditions worldwide.

27. In view of the impact of globalization on the iron and steel industry, the ILO should, in consultation with experts in the field, develop a means to facilitate the sharing of comparative information relating to working conditions, work practices and training in the industry.

28. The ILO should continue to promote widely the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy.

 

Part 2.
Other proceedings

Panel discussions

Sectoral activities in the ILO

Moderator: Mr. M. Arbesser-Rastburg, Chairperson of the Meeting
Panellist: Mr. J. McLin, Industrial Activities Branch, Sectoral Activities Department, ILO, Geneva.

Mr. McLin explained the history, present set-up, and rationale of sectoral activities in the ILO. In the 1920s and 1930s -- i.e. in the formative years of the Office -- sectoral meetings were held on an ad hoc basis as the most effective vehicle to give practical effect to the otherwise very general deliberations at the annual Conference. After the Second World War, on a British initiative, such meetings were systematized and regular meetings began to be organized covering the major sectors in the formal economy. Several procedural changes were effected, with the last ones in 1996, to take account of changes in the world economy. Under the present arrangement, 22 sectors were covered: 11 within the industry sector, including agriculture; two in maritime and transport; one in hotels and tourism, and eight in public and private services. Six sectoral meetings were held every year which, by rotation over the 22 sectors covered, implied a meeting for a particular sector every four years. Sectoral work -- follow-up studies, technical advisory services, national and regional seminars -- was carried out in between sectoral meetings in close collaboration with the international employers' organizations, sectoral employers' organizations, where they existed, and international trade secretariats, mainly based on sectoral lines. The total budget of the Department amounted to US$7 million for 1998. In addition, US$3 million had been available in recent years from bilateral and other donors. The Department maintained close links with other departments in the ILO, e.g. those dealing with occupational safety and health, industrial relations, and standards. In practical terms, the Department's work included most areas within the ILO's competence but at the sectoral level. Issues raised at the sectoral level had often provided the basis for ILO positions on important emerging problems. For example, work done on multinational corporations in the 1970s resulted in the Tripartite Declaration on these entities in 1997 and the current debate at the International Labour Conference on contract labour initially had started on the basis of sectoral work. Currently voluntary initiatives and codes of conduct in enterprises had become the subject of general interest throughout the ILO.

Discussion
The discussion centred on the efficacy of the sectoral approach to questions of social policy. An Employer member from Germany raised the point he had made during the discussion in the plenary: was there any room for a sectoral approach when in the real economy sectoral boundaries were becoming fuzzy. In the same vein, the spokesperson for the Employers' group noted that not only employers but workers too were becoming multisectoral. Mr. McLin replied that the reality was that industrial relations and collective bargaining still took place along sectoral lines, although the situation was indeed now much more complex because of the blurring of sectoral demarcations. It was for this reason that the last review of sectoral activities, carried out between 1992 and 1995, attempted to introduce a degree of flexibility in the work of the Department. While conceding the desirability of maintaining a sectoral approach, the Governing Body had suggested a more rationalized list of sectors with, if necessary, the possibility of carrying out multi-sectoral work. The spokesperson for the Workers' group supported the stance taken by the Governing Body and reiterated the statement he had made in the plenary during the discussion on the same topic. Giving up sectoral work at the ILO would make it difficult to discuss real problems of industrial relations in their proper and concrete context; in particular, the Workers' group would not want to see a downgrading of work on the iron and steel industry.

Safety and health in the iron and steel
industry and relevant ILO activities

Moderator: Mr. M. Arbesser-Rastburg, Chairperson of the Meeting
Panellist: Mr. K. Novikov, Occupational Safety and Health Branch, Working Conditions and Environment Department, ILO, Geneva

Mr. Novikov explained the activities of the Occupational Safety and Health Branch of the ILO. He observed that almost one-third of ILO standards concerned safety and health and a number were of recent origin, including those concerning chemical safety, construction, major accidents, and safety in mines. Some of these were relevant to the iron and steel industry, which also had its own code of practice on safety and health published in 1982. Other relevant codes of practice on safety and health had been developed on major industrial accidents, and the transfer of technology. The preparation of training manuals constituted another important part of the work of the Branch. In the next biennium (1998-99), key programmes concerned occupational safety and health in biotechnology and the promotion of a "safety culture". The latter programme would be targeted not only at the world of work, but also at young people in schools and universities. Advisory services were rendered through technical cooperation activities. The tripartite constituents were encouraged to submit proposals through the relevant ILO Area Offices. Some past and ongoing programmes included promotional activities in relation to the Occupational Safety and Health Convention, 1981 (No. 155), human resource development and capacity building, managing safety in particularly hazardous occupations (e.g. construction, mining, agriculture and forestry), silicosis elimination, and the promotion of occupational safety and health in agriculture. The CIS database on occupational safety and health provided linkages worldwide, and the forthcoming fourth edition of the ILO's Encyclopaedia on Occupational Safety and Health covered virtually every occupational safety and health issue and included a chapter on the iron and steel industry. It would be published in several languages in both paper and CD-ROM formats.

Discussion
The discussion commenced with strong support from the spokesperson of the Workers' group for safety and health-related activities in the ILO. He emphasized the importance of developing a "safety culture" through an awareness programme built on the principle that if work was not safe it should not be done. Where labour was not organized, safety and health standards were weaker; in this respect it was particularly important to monitor the situation in relation to contracting. A safety and health code of practice was required for non-ferrous metals industries. A representative of the International Iron and Steel Institute endorsed the statement by the Workers' spokesperson. While progress had been made with respect to safety standards, even the best companies had accidents. The target had to be the elimination of all accidents regardless of their severity and regardless of the contractual situation. Studies were not enough; the results had to be widely disseminated. A Worker member from South Africa expressed concern with statements that attributed accidents to workers' neglect of safety rules. He stressed the importance of ensuring that programmes on safety and health took into account workers' views.

New technology , training and flexibility
in the iron and steel industry

Moderator: Mr. B.-I. Eto, Worker Vice-Chairperson of the Meeting
Panellists: Ms. D. Kelly, Department of Economics, University of Wollongong, Australia
Mr. R. Avis, Director of Human Resources, British Steel, United Kingdom
Mr. N. Marshall, National Organiser, Responsible for Steel Industry, Australian Manufacturing Workers' Union, Australia

Ms. Kelly opened her presentation with three propositions: (a) maintaining production and jobs in the twenty-first century required a competitive steel industry; (b) a significant aspect of achieving competitiveness required flexibility in the production processes and the workforce; and (c) flexibility required effective and innovative training of employees at all levels. Apart from the pressures emanating from rapid changes in production technologies, those from greenhouse targets would add further constraints on the industry. Ms. Kelly made a distinction between macro- and micro-level flexibility. The former referred to the ability to cope with the changing market position of the steel industry, which in turn implicated the labour market. The major component of macro flexibility was a labour force with a sufficient degree of inter-industry mobility. Government policies on training and credential transferability were the core determinants of macro flexibility. Micro flexibility, on the other hand, referred to the capacity of firms to effect changes in their production and workforces in response to developments in the markets. A flexible workforce was at the heart of this. Two types of skills were needed for this: technical and relational. The present-day advances in information technology facilitated the introduction of a great deal of flexibility into training methods themselves, but employees first needed to be taught how to learn in these new training environments. Teamwork and trust assumed even greater importance in consequence of this.

Mr. Avis discussed three recent and successful scenarios in the British steel industry with respect to the introduction of new technologies. The first concerned the installation of a second continuous caster in a plant. Around 150 new recruits had to be trained as managers and operators. The operative philosophy was based on teamwork, flexible management and self-development. Professional requirements were analysed, with social and relational skills being given prominence even at the recruitment stage. On- and off-the-job training modules were developed and training was of a sufficient quality to qualify for external accreditation. Positive outcomes were obtained in terms of production levels and job satisfaction. The second scenario concerned configuring an existing set-up to respond quickly to changing demand for downstream products. A new range of information-based skills was required. The automated centre in question obtained all its labour requirements from sources of principally inexperienced labour. Assessment centres and psychometric testing were used. Team building was emphasized, with whole teams being trained in technical as well as relational skills. The team leaders were themselves trained to conduct the training, creating a bond between them and the teams in meeting the objectives. Each individual had a documented training plan with accredited training outcomes. The factory was operational within 12 months with a highly motivated team. The third scenario concerned a team-oriented programme for improved customer service. The employees had previously complained about management and had expressed a desire for increased training. A programme was launched to introduce fully integrated teams. Employees could enter into a selection process based on competence with a quid pro quo in the form of job enrichment and new careers. Selection was carried out in a fair and open way and new, simplified wage structures, including reward for added skills, were negotiated with workers' representatives. Mr. Avis drew the following conclusions from these examples. Firstly, technology strikes in many forms. Secondly, investment in technology, without investing in the people who operated it, was a waste. Thirdly, training and flexibility should be viewed on three axes: a horizontal one concerning multiskilling across trade groups; a vertical one relating to training across traditional hierarchies within and across shopfloors and management; and a diagonal axis, which was all-pervasive and encompassed the cultural dimension. While technology and flexibility reduced jobs, they also provided the possibility of a secure future for a considerable number of people.

Mr. Marshall emphasized the need for an integrated approach to questions of training and productivity in the steel industry. Issues such as team work and the introduction of new technology and new job classification schemes were interrelated, so that it was not a question of changing simply one section of the workforce, but the whole organization. This necessarily implied a degree of partnership between workers and employers. There was evidence that such a partnership was much more likely to be on an equal footing where workers were organized in trade unions, and that agreements thus achieved had a greater chance of survival. There was also evidence that the ensuing productivity gains in such firms were themselves greater and more durable. The role of the government should not be minimized; in fact a three-way partnership was called for in which the government's role was to provide the necessary resources and framework for new classification and pay structures. Four key principles had to be recognized in the area of training: (a) training should lead to nationally accredited qualifications; (b) training should result in higher wages and foreseeable career paths for all grades of workers; (c) training plans should include agreements on who gets training and when; (d) training should be voluntary.

Discussion
Questions were put to Mr. Marshall on his presentation. Several participants asked about the linkage between remuneration and training. Should training funded by the enterprise lead directly to higher wages? This could encourage people to train for money and not for acquisition of skills. Mr. Marshall emphasized that his context was a skills-based classification structure of the type introduced in Australia in the 1980s, as opposed to a job-specific, task-based structure. In such a structure employees would be granted higher wages for improving their skills. A representative of the Government of Argentina asked a question regarding the right of workers not to undergo training, if they so wished; in a team-oriented and competitive context, was it not a worker's responsibility to advance along with his colleagues? Mr. Marshall replied that his particular context was again Australia where new immigrant workers had picked up basic skills from their colleagues. The rights of such workers had to be protected by not imposing training on them. It was not a question of retaining lesser quality work, but protecting the individual. In any case, most such workers would voluntarily take up training when they saw its advantages.

From human resources development to
improved labour-management relations

Moderator: Mr. J. Senn, Employer Vice-Chairperson of the Meeting
Panellists: Mr. W. Boning, Graduate School of Industrial Administration, Carnegie Mellon University, Pittsburg, United States
Ms. P. Seehafer, Director of Research, United Steelworkers of America, United States
Mr. D. Atlan, Directeur des ressources humaines, SOLLAC DAS, France

Mr. Boning opened his presentation by underlining that the essence of good human resource practices lay in reconciling management goals (productivity and profitability) with labour goals (income, security and job satisfaction). Human resource practices should be seen as a whole and should complement each other. He cited the results from a recent study of four steel mills which produced the same products, but employed different systems of human resource practices, ranging progressively from a traditional adversarial system to one incorporating full communication and teamwork. Productivity was positively correlated to the degree of teamwork and problem-solving. One indicator of this was that the plant which used the most participative approach to decision-making experienced 7 per cent more "uptime" (i.e. operated 7 per cent more hours) compared to the most tradition-bound plant. However, Mr. Boning underlined that there was no unique best system for all environments. Change would be unsuccessful where personal resistance was encountered, such as where individuals felt a threat to their position as a result of new practices and role changes. The key factor was to make all parties integral participants in change. Crisis (e.g. threat of closure) could facilitate the change process as would persistence and demonstrated commitment to change.

Ms. Seehafer commenced by contrasting two approaches to labour-management relations -- the traditional and the non-traditional. The former was characterized by management control of all workplace activities, while the latter attempted to operate on the basis of a genuine partnership between management and workers in all aspects of work, starting from business plans to day-to-day production tasks. The partnership approach was predicated on two premises: (a) that continuous review and problem-solving could prevent a situation coming to a crisis; and (b) that the person doing the job was the best expert on it. The participative process built on giving those who have the "how" (to do the job) the "why" for doing it -- whether as before or differently. Wherever this approach had been adopted benefits had been forthcoming in the form of increased worker morale, reduced absenteeism, and declining grievance procedures. The main obstacle to instituting a participative approach was resistance from middle-level management because of a perceived threat to their entrenched position. This resistance could be overcome. In particular, consultants in the field of cultural change could assist all parties concerned in accepting the change from an autocratic to a more democratic workplace. Both sides would have to be convinced of the futility of the adversarial process. Although the participative process was beneficial to workers (and employers) and they in general welcomed it, they had to be involved, through their unions, from the outset in instituting and implementing participative agreements. One other important precondition for assuring workers' cooperation in such management-labour agreements was an employment guarantee -- a guarantee that workers would not be laid off as a result of agreeing to a new way of doing things.

Mr. Atlan based his presentation on the experience of reorganizing Usinor in the face of losses in the 1980s. A reduction in the workforce was imperative. How could this be done? The approach adopted was a partnership between trade unions and management based on open-ended reviews of organizational innovations in other enterprises, trade unions and institutions. Instead of starting with a draft agreement, a "blank sheet" approach was adopted in which the various actors jotted down what were thought to be indispensable elements of an agreement, for example with respect to wages and employment guarantees. Agreement was thus reached through an incremental process. This system was more successful than a formal, detailed drafting of an agreement, the approach of which was inflexible and had the potential to waste energy and create conflictual situations. Looking at the evolution of the industry, he emphasized that the focus had now changed to "brain power" in place of "muscle power". Management had a choice between a law-and-order approach to management or one in which there was real participation at the work place. Management had to be able to evaluate the skills and capacity of individual workers and to manage knowledge. Problems existed for the trade unions as new wage-earners were more independent and union membership was declining. Also, workers were often shareholders. Management needed to enter into direct dialogue with the workers in addition to the indirect discussions held with workers' representatives through trade unions.

Discussion
The discussion was initiated by the Chairperson who attempted first to clarify some concepts. What was distinctive about a non-traditional system compared to the traditional? Were wage levels also set for the duration of the management-labour agreements? What details were ultimately jotted down on the "blank sheet"? Mr. Boning replied that the distinction between the two systems could be summed up succinctly in one phrase: in the traditional system "management says and labour does", whereas in the non-traditional system the emphasis was on problem-solving through partnership, with the implicit recognition that solving the problem would be rewarded. In this regard Mr. Atlan underlined the point from Mr. Boning's presentation that a change of the social system towards a participative mode had resulted in a gain of over 7 per cent in "uptime". Ms. Seehafer clarified that long-term labour-management agreements always had a wage-related reopener clause to take account of changes in the economy. Mr. Atlan explained that the "blank sheet" approach consisted simply of separating the various elements of an eventual agreement into self-contained components and filling in the important items for negotiation. Training, job security and skills development were obvious components of a management-labour agreement. Best practices seen in other companies would provide the material for filling in the "blank sheet".

The Chairperson observed that from the three presentations it was obvious that in France and the United States the trade unions had been able to move away from traditional demands regarding wages and hours of work to negotiating about qualitative aspects of jobs. An inference was also possible that as workers became better educated they would not need the intermediary of trade unions to air their grievances. What role could be seen for trade unions in the future? There was general agreement on the Chairperson's first point, but as regards the future role of the unions, Ms. Seehafer said that in so far as management was fair and changed things for the betterment of their workers there would indeed be less need for trade union representation at any time, but if management violated some basic principles of industrial relations then mechanisms would have to be present, at any given time to take the matter to arbitration. Since workers as a group would be affected they would always find it advantageous to negotiate jointly, which implied through their unions. Mr. Atlan agreed, but pointed out that future workers being sensitive to fairness would demand more streamlined systems of arbitration. The present system was simply much too complicated and costly. Reacting to this debate, a Worker member from France observed that managers themselves felt the need to be represented by trade unions, so the need was all the greater in case of the workers, and would remain. Direct democracy could not be practised in situations where vast numbers of employees were involved and management would always need a partner they could deal with, not workers as individuals. It was true that trade unions were costly, but how else would conflicts be resolved? The only feasible alternative -- the judicial process -- was no less costly. A Worker member from Australia introduced the dimension of the changing role of trade unions in the context of globalization. Transnational corporations, which in their home base had to comply with stringent regulations, chose to operate at the lowest common denominator elsewhere. They had to be made to change their ways. The need for union protection was all the more greater in the context of globalization. Mr. Atlan reacting to this point said trust was an important ingredient of better industrial relations, whether in a national or a global context. But trust had to be two way. If workers were trusted by management, so should management be trusted by workers. Workers' brainpower was often the only natural resource of a country in the production of steel or other goods and its effective exploitation required this kind of two-way trust.

Closing speeches

The Secretary-General (Mr. Morozov) thanked the participants for their high and active levels of participation, which were clear indications of the importance of the iron and steel industry and of concern for its future. The unanimous adoption of conclusions that contained plenty for governments, employers' and workers' organizations to think about, discuss and act upon at the national level meant that the Meeting's objectives had been realized. He was heartened by the call to encourage the ratification and implementation by all the ILO's member States of the seven core labour standards. The Office would do its best to meet the request for the development of the means to facilitate the sharing of comparative information on working conditions, work practices and training in the iron and steel industry that would make international comparisons that are important in a global environment more straightforward. He felt that the Meeting had contributed in a material way to a better understanding of the issues that would affect the industry's workforce in the new millennium and had clarified how they should be dealt with in order to ensure the continued health and growth of the industry in view of the considerable competitive and environmental pressures it faced.

Mr. Saunders (representative of the Government of Canada; Chairperson of the Government group) expressed his group's satisfaction with the outcome of the Meeting's productive discussions and negotiations that had taken place in a constructive atmosphere. The report prepared by the Office was a good overview of the challenges facing the industry at the turn of the century and the conclusions developed and adopted by the Meeting should provide valuable guidelines as the industry focused on these challenges.

Mr. Sterling (spokesperson for the Employers' group) believed that there had been a strong recognition of the importance of competition to the steel industry and that it concerned both employers and workers. The conclusions addressed important matters. They created a better understanding of the issues in the various companies and countries and fostered a climate for further development in the areas that were discussed during the Meeting. The three groups had worked well together and contributed to meaningful conclusions. He was sure that the contracts established and renewed would be sustained at future meetings for the sector. He thanked the secretariat for its support and skill in ensuring that what was said was understood by all and reflected in the documents.

Mr. Brookman (spokesperson for the Workers' group) said that the conclusions needed to be widely circulated and acted upon if they were to have an impact. Much had been said about globalization, which was an issue that had to be tackled in an intelligent manner, as did such matters as teamworking, restructuring, safety and health and the environment, both within plants and outside. All these issues had been discussed at length resulting in conclusions all could be satisfied with. He added his thanks to those of Mr. Sterling to the Government group, to Mr. Narad who presided over the discussion of the report and the negotiation of the draft conclusions and to the secretariat.

The Chairperson felt that the Meeting could justifiably be pleased with its achievements. Although the timetable was crowded, it worked: shorter meetings enabled busy people to participate and by so doing they had made the Meeting a success. Not having had resolutions had made the logistics of the Meeting rather easier and the formal discussions, panel sessions and informal contacts had all contributed to a greater understanding of different aspects of common issues. He reiterated that sectoral activities in the ILO were strongly supported by all three groups: Governments, Employers and Workers and he was sure he spoke for all of them in saying how pleased he was with the new formate and timing of the meetings and their output. The importance of globalization, competition, job security and meeting customer demands and how to address these issues had been highlighted throughout the week. The fact that the participants accounted for over three-quarters of world steel production gave the conclusions added weight -- they were truly applicable to the global iron and steel industry. He reminded the participants that it was up to them to promote the conclusions and use them in their own countries. He praised the eloquent spokesmen of the groups, who had put their case clearly and forcefully, and their advisers. He thanked the three Vice-Chairpersons for their assistance during the Meeting, particularly Mr. Narad who had so effectively presided over the discussion of the report and the negotiation of the conclusions. The Chairperson thanked the secretariat for its support throughout, recognizing the hard work and dedication it took to produce so quickly the documents used throughout the week. He declared the Tripartite Meeting on the Iron and Steel Workforce of the Twenty-first Century: What it will be like and how it will work closed.

Evaluation questionnaire

A questionnaire seeking participants' views on various aspects of the Meeting was distributed before the end of the Meeting; the response rate was 40.6 per cent of participants. The Meeting itself, rated as regards six different criteria, obtained the highest scores for the choice of the agenda item and the Meeting's benefits to the sector. Of the three panel discussions, the one concerning human resources development and labour-management relations obtained the highest score. All aspects of the report for the Meeting scored well, as did the arrangements. The consolidated results are reproduced hereafter.

1. How do you rate the Meeting as regards the following?

Scoring 

5

4

3

2

1

 

 

Excellent

Good

Satis-
factory

Poor

Unsatis-
factory

Average
score

The choice of agenda item
(subject of meeting)

16

17

8

0

0

4.2

The points for discussion

9

21

8

3

0

3.9

The quality of the discussion

5

24

10

2

1

3.8

The Meeting's benefits to the sector

10

21

7

1

1

4.0

The conclusions

5

22

9

1

0

3.8

Panel discussion on ILO activities:
Sectoral activities/safety and health

7

14

10

2

2

3.6

Panel discussion: New technology, training and flexibility in the iron and steel industry 7 16 4 4 0 3.8

7

16

4

4

0

3.8

Panel discussion: From human resources development to improved labour-management relations 8 14 6 1 0 4.0

8

14

6

1

0

4.0

 

2. How do you rate the quality of the report in terms of the following?

 

Excellent

Good

Satis-
factory

Poor

Unsatis-
factory

Average
score

Quality of analysis

12

22

5

1

0

4.1

Objectivity

14

20

7

0

0

4.2

Comprehensiveness of coverage

10

22

7

3

0

4.0

Presentation and readability

14

19

8

0

0

4.2

Amount and relevance of information

12

21

6

2

0

4.0

 

3. How do you consider the time allotted for discussion?

 

Too much

Enough

Too little

Discussion of the report

2

29

10

Panel discussions

4

31

5

Groups

4

26

11

Working Party on Conclusions

2

24

12

 

 4. How do you rate the practical and administrative arrangements (secretariat, document services, translation, interpretation)?

 

Excellent

Good

Satis-
factory

Poor

Unsatis-
factory

Average
score

 

21

19

1

-

-

4.5

 

5. Respondents to questionnaire

Government

Employer

Worker

Observer

Total

 

12

13

12

4

41 (% of participants: 40.6)

 

6. Participants at Meeting

26

25

24 

26

101

 

1.  ILO, Tripartite Meeting on the Iron and Steel Workforce of the Twenty-first Century: What it will be like and how it will work, Geneva, 1997: The iron and steel workforce of the twenty-first century, 110 pp.

2.  Adopted unanimously.

3.  Adopted unanimously.


Updated by VC. Approved by NdW. Last update: 26 January 2000.

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