An open letter to the Government of T&T, all trade unions, employees of ArcelorMittal and ArcelorMittal Pt Lisas Limited:
Firstly, please allow me to state for the record, that I am writing in the capacity of a concerned citizen, solely based on my research and understanding of employee rights as it relates to the insolvency of a multinational enterprise in accordance with the recommendations made by the International Labor Organization (ILO).
The objective of my letter is to ask the right questions, to encourage proactive thinking and discussion moving forward with the recent dismissal of more than 644 employees of ArcelorMittal Pt Lisas Limited.
The ILO has made numerous recommendations and standards concerning the protection of employee or workers’ claims during the insolvency proceedings of their employer.
It is however, the duty of the government of the country concerned to enforce these recommendations as law.
According to the ILO, certain claims should be protected by means of privilege. From my understanding, this relates to the inherent rights or benefits enjoyed by a select group of people (in this case, the workers).Claims protected by means of privilege should include, at a minimum:
1. The workers’ claims for wages relating to a prescribed period, which shall not be less than three months, prior to the insolvency or prior to the termination of the employment;
2. The workers’ claims for holiday pay due as a result of work performed during the year in which the insolvency or the termination of the employment occurred, and in the preceding year;
3. The workers’ claims for amounts due in respect of other types of paid absence relating to a prescribed period, which shall not be less than three months, prior to the insolvency or prior to the termination of the employment;
4. Severance pay due to workers upon termination of their employment
The above was taken directly from: Article 6, C173 - Protection of Workers’ Claims (Employer’s Insolvency) Convention, 1992 (No. 173). Convention concerning the Protection of Workers’ Claims in the event of the Insolvency of their Employer. Adopted in Geneva, 79th ILC session (23 Jun 1992).
It is noteworthy that severance benefits are included and should be protected by law. Now my question is this, in T&T, is the severance benefit of the worker protected by law in the event of insolvency of the employer? If it is not, then it is crucial that the Attorney General and the Government draft new legislation to protect its working class.
What is going to stop other multinational enterprises currently operating in T&T from invoking similar “loop holes” during this recession? Why are we still waiting to react to a situation when it arises, instead of being proactive?
Secondly, at the time of writing this article, I observe that ArcelorMittal did not make a formal press release on their corporate website. If this is an official decision by the board of directors, I would expect to see public disclosure of this decision to all stakeholders.
Is it that this decision, the disrespect shown to international labour standards and to the people of T&T, negatively impact the company’s reputation and by extension, its share price? Furthermore, how would this decision affect ArcelorMittal’s license to operate in other countries?
In hind sight, if this is the company’s final decision, I would encourage the workers to escalate this situation on the international stage; highlighting to other countries, governments and organisations such as the ILO, the ethical failure of ArcelorMittal as a responsible multinational enterprise to abide by international labour standards.
I hope our leaders are prepared to be more proactive as our working class is being held hostage and it is the responsibility of the Government to protect its people (for my political fanatics, I do not mean it is the responsibility of the PNM or UNC).
The recommendations of the ILO presented in this letter is 24 years old, didn’t someone in authority ever consider how medieval our laws really are?
My prayers and condolences go out to the workers of Arcelor Mittal Pt Lisas Limited. keep hope alive my brothers and sisters.
Rashad Ramjohn,
Penal