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SUMMARY 1. Delegates from 306 national trade union organizations representing 168 million workers in 154 countries met Nov. 1-3 in Vienna to found the International Trade Union Confederation. "The Confederation exists to unite and mobilize the democratic and independent forces of world trade unionism in giving effective representation to working people, wherever they work and in whatever conditions," says its constitution. Rejecting government-dominated labor organizations like those in China and Cuba, the Confederation offered associate (dues-free) status to struggling independent unions including the Unitary Council of Cuban Workers (whose imprisoned leader, Pedro Pablo Alvarez Ramos, was arrested in the 2003 crackdown on human rights defenders), the Federation of Trade Unions of Burma (whose exiled leader, Maung Maung, attended the Vienna meeting), and the Cambodian Labor Confederation. BCDTU/BKDP Belarus, KVPU and FPU Ukraine, and ZCTU Zimbabwe were among the unions represented at the meeting. The UK's Guy Ryder, elected unanimously to be the Confederation's General Secretary, cautioned the delegates that it was easier to pledge unity in Vienna than to realize it back home. "It remains to be seen whether or not we will be capable of doing it," he said. "And if we fail we should not look for the fault in our stars but in ourselves." BACKGROUND OF THE NEW CONFEDERATION 2. The International Trade Union Confederation (ITUC) is the product of the merger of two international organizations, joined by eight national trade union centers previously unaffiliated to either of them. The larger of the two, the International Confederation of Free Trade Unions (ICFTU), was founded in 1949 to provide a democratic, secular alternative to the communist-dominated World Federation of Trade Unions, which lingers on although it is much diminished. The smaller of the two was the World Confederation of Labor (WCL), originally called the International Federation of Christian Trade Unions, founded in 1920 and as its name suggests an organization with a strong religious orientation. 3. ICFTU and WCL delegates met separately in Vienna Oct. 31 to dissolve their respective federations in preparation for the founding of the ITUC. The ICFTU delegates voted for dissolution by acclamation. At the WCL meeting, however, only 95 percent voted for dissolution; two percent voted "no" and three percent abstained. Those speaking out against dissolution were chiefly from WCL affiliates in Western Europe, according to an observer who attended the meeting. The eight previously unaffiliated unions joining the ITUC as founding members are from Angola (UNTA-CS), Argentina (CTA), Madagascar (FISEMA), Colombia (CUT), Nepal (GEFONT), France (CGT), Poland (OPZZ), and Nigeria (TUC-N). THE FOUNDING CONGRESS 4. Leroy Trotman from Barbados, chairman of the Workers' Group in the ILO, proclaimed the creation of the ITUC at the first sitting of the founding congress on Nov. 1. Some 1600 delegates were present, plus numerous observers. There was music by the wind players of the Vienna State Opera, and then the speeches began. "The history of international trade unionism has been marked more by division than unity," said Emilio Gabaglio, former head of the European Trade Union Confederation and the first to speak, "but it is imperative to create a united and pluralistic movement to meet the challenges of a globalized economy." Austrian President Heinz Fischer called unions essential institutions in free societies. "There are no free trade unions in a dictatorship," he said. Austrian Trade Union Federation President Rudolf Hundstorfer said that, for all the problems facing workers in Europe, including high unemployment ("a continuing disgrace") and relentless pressure from employers to make concessions, voluntary cooperation between workers and employers had achieved much in Europe and the Austrian unions would support efforts by the ITUC to promote this practice globally. The congress chairwoman, Sharan Burrow of Australia, read a message of congratulations from UN Secretary General Kofi Annan. SIPDIS THE ITUC PROGRAM 5. Among the aims of the ITUC, says the constitution adopted unanimously in Vienna, is "to be a countervailing force in the global economy, committed to securing a fair distribution of wealth and income within and between countries, protection of the environment, universal access to public goods and services, comprehensive social protection, life-long learning and decent work opportunities for all." A program resolution also adopted unanimously calls for more effective and democratic governance of the global economy, including the establishment of a working group on trade and labor standards at the WTO with full ILO participation; the defense of trade union rights; the eradication of employment discrimination and child labor; safer and healthier workplaces; and a stronger ILO. 6. Nearly 100 delegates took the floor to comment on the program. Their remarks reflect the sometimes conflicting views within the new confederation. Hans Jensen of LO Denmark, saying trade is crucial to development, called on the ITUC to develop a strategy to bring the WTO negotiators back to the table. But Jan Sithole of SFTU Swaziland said WTO policies are ravaging African countries and Young-Ok Jin of KCTU South Korea said bluntly, "We don't want a WTO or an FTA." Gerd-Liv Valle of LO Norway said the ICFTU had made progress in getting the World Bank and the IMF to recognize the importance of core labor standards. But Ana Knezevic of UATUC Croatia said that, while the Bank and the Fund have agreed to talk to trade unionists, "they don't accept our recommendations." Amal El Amri of UMT Morocco said the ITUC must be able to propose alternatives to the Bank, the Fund, and the WTO. 7. A common theme in many interventions was the growing power of multinational corporations, the failure of governments to regulate them, and the need for a strong international trade union movement to challenge them. Bernard Thibault of CGT France said, "We will be judged by what we do to change the power dynamics at the global level." John Sweeney of the AFL-CIO said globalization must be fundamentally restructured. Brendan Barber of the UK's TUC said unions must learn to move "as fast as global capitalism." John Evans of the OECD's Trade Union Advisory Committee said unions must ensure that no multinational can boast of being union-free. 8. Anita Normark of the Building Workers' International said the growing number of framework agreements negotiated in recent years between sector-specific global union federations like hers and large multinationals would not help workers in the absence of strong national labor laws and a tradition of social dialogue between workers and employers. Marcello Malentacchi of the International Metalworkers' Federation, calling these agreements a key tool to promote labor standards in global supply chains, said they are the only alternative to unilateral corporate codes of conduct, which he called no more than public relations stunts. Larry Cohen of the Communication Workers of America said that if companies refuse to abide by these agreements, "We must be ready to fight back." 9. Renana Jhabwala of SEWA India spoke eloquently of her organization's efforts to organize workers, mostly women, in the informal sector. She said SEWA has 800,000 members who are street vendors, domestics, small farmers and artisans who have no rights and are often subject to violence. "We were told they are not workers, as they have no employers, and they are also too dispersed to organize," she said. "But our experience shows that they want to organize and can be organized." Informal workers account for 60-80 percent of workers in most developing countries, she said, and she urged the ITUC to recognize these workers and bring them into the fold of the trade union movement. 10. GFBTU Bahrain, PGFTU Palestine, GFJTU Jordan, KTUF Kuwait, GFWTUY Yemen, UGTT Tunisia, and three federations from Morocco (UMT, UGTM, and CDT) are among the Middle Eastern and North African unions who are founding members of the new Confederation. ITUC General Secretary Ryder said the Confederation wants to enter into a formal cooperation agreement with the International Confederation of Arab Trade Unions. ITUC STRUCTURE 11. "Unitary and pluralist," says the ITUC constitution's Declaration of Principles, "the Confederation is open to affiliation by democratic, independent, and representative trade union centers, respecting their autonomy and the diversity of their sources of inspiration, and their organizational forms." Any changes to the Declaration of Principles must be approved by a three-quarters majority of congress delegates. (Amendments to most other sections of the constitution require only a two-thirds majority.) General Secretary Guy Ryder told the delegates in his acceptance speech, "If ever we compromise on these principles we will be divided and our house will fall." Fred Van Leeuwen, president of Education International, the global federation representing teachers' unions, put it bluntly: "Organizations that are not independent and democratic do not belong in the ITUC." 12. The delegates approved agreements to merge the former African and Asian regional organizations of the ICFTU and the WCL by Oct. 31, 2007. In the case of the Americas, however, where the divisions between the two predecessor confederations run deepest, the delegates adopted instead a "statement of commitment" setting forth a series of joint activities "in order to achieve union unification in the Americas by the set dates." These dates are not specified in the statement, but Ryder told the delegates the one-year deadline applies in all three regions. In Europe, the delegates adopted a resolution to establish a Pan European Regional Council (PERC) of unions in countries "from the Pacific to the Atlantic," also within a year. Mikhail Shmakov of FNPR Russia called the European Trade Union Confederation (which will continue to exist as an autonomous body) a model for the PERC. 13. The delegates agreed to establish a Council of Global Unions, described as a "structured partnership" among the ITUC, the sector-specific Global Union Federations, and the OECD's Trade Union Advisory Committee. A member of the International Metalworkers' Federation told us the IMF would remain outside the Council, but most of the other nine Global Union Federations are expected to join. And the delegates elected a 70-member General Council which will meet at least once a year and is the supreme authority of the ITUC between quadrennial congresses. Following the adjournment of the founding congress, the General Council met and elected Australia's Sharan Burrow as ITUC President. The ITUC headquarters are in Brussels, where both the ICFTU and the WCL were located. 14. As their final act, the delegates unanimously elected Guy Ryder ITUC General Secretary. Formerly the General Secretary of the ICFTU, Ryder in his acceptance speech SIPDIS alluded to the difficulties of founding the ITUC. It required political will, he told the delegates, "a commodity that can be made available or withheld at your discretion." He asked them "to be absolutely resolute in rejecting any type or temptation of organizing in internal tendencies or fractions." He offered an outstretched hand to governments, international organizations, and employers. "But to those who oppose us," he concluded, "to those whose business is exploitation and repression, whose way of work is diktat and the abuse of financial and political power and whose attitude is arrogance--and they are still many--our message is that the outstretched hand can quickly become a clenched fist, and that we will not flinch from confrontation when confrontation is the only way." The delegates gave him a standing ovation. COMMENT 15. The delegates to the ITUC founding congress are under no illusion that trade union unity will be easy to achieve. But they spoke with conviction about the need to unite to confront "globalization." The term means different things to different unions depending on their membership, the political environment in which they operate, and the employers whom they face across the bargaining table. The delegates all seemed to agree, however, that unification is essential if trade unions wish to be "a countervailing force in the global economy," a force for increasing the labor share of national income, promoting respect for international labor standards, strengthening democratic institutions, and making a contribution to peace through social justice. 16. More information about the ITUC is available at www.ituc-csi.org. 17. This cable was drafted by Amembassy Berlin Labor Counselor Bob Hagen, who with the help of Amembassy Vienna attended the ITUC founding congress as an observer. TIMKEN JR Kilner

UNCLAS SECTION 01 OF 04 VIENNA 003297 SIPDIS STATE FOR DRL/ILCSR AND IO/T USAID FOR DCHA/DG (KIMBERLY LUDWIG) NSC FOR AMBASSADOR KOZAK PARIS ALSO FOR USOECD LABOR FOR ILAB (BILL BRUMFIELD, BOB SHEPARD) E.O. 12958: N/A TAGS: ELAB, ECON, ETRD, EAID, PHUM, PGOV, PREL, SOCI, ILO SUBJECT: WORKERS OF THE WORLD UNITE IN VIENNA SUMMARY 1. Delegates from 306 national trade union organizations representing 168 million workers in 154 countries met Nov. 1-3 in Vienna to found the International Trade Union Confederation. "The Confederation exists to unite and mobilize the democratic and independent forces of world trade unionism in giving effective representation to working people, wherever they work and in whatever conditions," says its constitution. Rejecting government-dominated labor organizations like those in China and Cuba, the Confederation offered associate (dues-free) status to struggling independent unions including the Unitary Council of Cuban Workers (whose imprisoned leader, Pedro Pablo Alvarez Ramos, was arrested in the 2003 crackdown on human rights defenders), the Federation of Trade Unions of Burma (whose exiled leader, Maung Maung, attended the Vienna meeting), and the Cambodian Labor Confederation. BCDTU/BKDP Belarus, KVPU and FPU Ukraine, and ZCTU Zimbabwe were among the unions represented at the meeting. The UK's Guy Ryder, elected unanimously to be the Confederation's General Secretary, cautioned the delegates that it was easier to pledge unity in Vienna than to realize it back home. "It remains to be seen whether or not we will be capable of doing it," he said. "And if we fail we should not look for the fault in our stars but in ourselves." BACKGROUND OF THE NEW CONFEDERATION 2. The International Trade Union Confederation (ITUC) is the product of the merger of two international organizations, joined by eight national trade union centers previously unaffiliated to either of them. The larger of the two, the International Confederation of Free Trade Unions (ICFTU), was founded in 1949 to provide a democratic, secular alternative to the communist-dominated World Federation of Trade Unions, which lingers on although it is much diminished. The smaller of the two was the World Confederation of Labor (WCL), originally called the International Federation of Christian Trade Unions, founded in 1920 and as its name suggests an organization with a strong religious orientation. 3. ICFTU and WCL delegates met separately in Vienna Oct. 31 to dissolve their respective federations in preparation for the founding of the ITUC. The ICFTU delegates voted for dissolution by acclamation. At the WCL meeting, however, only 95 percent voted for dissolution; two percent voted "no" and three percent abstained. Those speaking out against dissolution were chiefly from WCL affiliates in Western Europe, according to an observer who attended the meeting. The eight previously unaffiliated unions joining the ITUC as founding members are from Angola (UNTA-CS), Argentina (CTA), Madagascar (FISEMA), Colombia (CUT), Nepal (GEFONT), France (CGT), Poland (OPZZ), and Nigeria (TUC-N). THE FOUNDING CONGRESS 4. Leroy Trotman from Barbados, chairman of the Workers' Group in the ILO, proclaimed the creation of the ITUC at the first sitting of the founding congress on Nov. 1. Some 1600 delegates were present, plus numerous observers. There was music by the wind players of the Vienna State Opera, and then the speeches began. "The history of international trade unionism has been marked more by division than unity," said Emilio Gabaglio, former head of the European Trade Union Confederation and the first to speak, "but it is imperative to create a united and pluralistic movement to meet the challenges of a globalized economy." Austrian President Heinz Fischer called unions essential institutions in free societies. "There are no free trade unions in a dictatorship," he said. Austrian Trade Union Federation President Rudolf Hundstorfer said that, for all the problems facing workers in Europe, including high unemployment ("a continuing disgrace") and relentless pressure from employers to make concessions, voluntary cooperation between workers and employers had achieved much in Europe and the Austrian unions would support efforts by the ITUC to promote this practice globally. The congress chairwoman, Sharan Burrow of Australia, read a message of congratulations from UN Secretary General Kofi Annan. SIPDIS THE ITUC PROGRAM 5. Among the aims of the ITUC, says the constitution adopted unanimously in Vienna, is "to be a countervailing force in the global economy, committed to securing a fair distribution of wealth and income within and between countries, protection of the environment, universal access to public goods and services, comprehensive social protection, life-long learning and decent work opportunities for all." A program resolution also adopted unanimously calls for more effective and democratic governance of the global economy, including the establishment of a working group on trade and labor standards at the WTO with full ILO participation; the defense of trade union rights; the eradication of employment discrimination and child labor; safer and healthier workplaces; and a stronger ILO. 6. Nearly 100 delegates took the floor to comment on the program. Their remarks reflect the sometimes conflicting views within the new confederation. Hans Jensen of LO Denmark, saying trade is crucial to development, called on the ITUC to develop a strategy to bring the WTO negotiators back to the table. But Jan Sithole of SFTU Swaziland said WTO policies are ravaging African countries and Young-Ok Jin of KCTU South Korea said bluntly, "We don't want a WTO or an FTA." Gerd-Liv Valle of LO Norway said the ICFTU had made progress in getting the World Bank and the IMF to recognize the importance of core labor standards. But Ana Knezevic of UATUC Croatia said that, while the Bank and the Fund have agreed to talk to trade unionists, "they don't accept our recommendations." Amal El Amri of UMT Morocco said the ITUC must be able to propose alternatives to the Bank, the Fund, and the WTO. 7. A common theme in many interventions was the growing power of multinational corporations, the failure of governments to regulate them, and the need for a strong international trade union movement to challenge them. Bernard Thibault of CGT France said, "We will be judged by what we do to change the power dynamics at the global level." John Sweeney of the AFL-CIO said globalization must be fundamentally restructured. Brendan Barber of the UK's TUC said unions must learn to move "as fast as global capitalism." John Evans of the OECD's Trade Union Advisory Committee said unions must ensure that no multinational can boast of being union-free. 8. Anita Normark of the Building Workers' International said the growing number of framework agreements negotiated in recent years between sector-specific global union federations like hers and large multinationals would not help workers in the absence of strong national labor laws and a tradition of social dialogue between workers and employers. Marcello Malentacchi of the International Metalworkers' Federation, calling these agreements a key tool to promote labor standards in global supply chains, said they are the only alternative to unilateral corporate codes of conduct, which he called no more than public relations stunts. Larry Cohen of the Communication Workers of America said that if companies refuse to abide by these agreements, "We must be ready to fight back." 9. Renana Jhabwala of SEWA India spoke eloquently of her organization's efforts to organize workers, mostly women, in the informal sector. She said SEWA has 800,000 members who are street vendors, domestics, small farmers and artisans who have no rights and are often subject to violence. "We were told they are not workers, as they have no employers, and they are also too dispersed to organize," she said. "But our experience shows that they want to organize and can be organized." Informal workers account for 60-80 percent of workers in most developing countries, she said, and she urged the ITUC to recognize these workers and bring them into the fold of the trade union movement. 10. GFBTU Bahrain, PGFTU Palestine, GFJTU Jordan, KTUF Kuwait, GFWTUY Yemen, UGTT Tunisia, and three federations from Morocco (UMT, UGTM, and CDT) are among the Middle Eastern and North African unions who are founding members of the new Confederation. ITUC General Secretary Ryder said the Confederation wants to enter into a formal cooperation agreement with the International Confederation of Arab Trade Unions. ITUC STRUCTURE 11. "Unitary and pluralist," says the ITUC constitution's Declaration of Principles, "the Confederation is open to affiliation by democratic, independent, and representative trade union centers, respecting their autonomy and the diversity of their sources of inspiration, and their organizational forms." Any changes to the Declaration of Principles must be approved by a three-quarters majority of congress delegates. (Amendments to most other sections of the constitution require only a two-thirds majority.) General Secretary Guy Ryder told the delegates in his acceptance speech, "If ever we compromise on these principles we will be divided and our house will fall." Fred Van Leeuwen, president of Education International, the global federation representing teachers' unions, put it bluntly: "Organizations that are not independent and democratic do not belong in the ITUC." 12. The delegates approved agreements to merge the former African and Asian regional organizations of the ICFTU and the WCL by Oct. 31, 2007. In the case of the Americas, however, where the divisions between the two predecessor confederations run deepest, the delegates adopted instead a "statement of commitment" setting forth a series of joint activities "in order to achieve union unification in the Americas by the set dates." These dates are not specified in the statement, but Ryder told the delegates the one-year deadline applies in all three regions. In Europe, the delegates adopted a resolution to establish a Pan European Regional Council (PERC) of unions in countries "from the Pacific to the Atlantic," also within a year. Mikhail Shmakov of FNPR Russia called the European Trade Union Confederation (which will continue to exist as an autonomous body) a model for the PERC. 13. The delegates agreed to establish a Council of Global Unions, described as a "structured partnership" among the ITUC, the sector-specific Global Union Federations, and the OECD's Trade Union Advisory Committee. A member of the International Metalworkers' Federation told us the IMF would remain outside the Council, but most of the other nine Global Union Federations are expected to join. And the delegates elected a 70-member General Council which will meet at least once a year and is the supreme authority of the ITUC between quadrennial congresses. Following the adjournment of the founding congress, the General Council met and elected Australia's Sharan Burrow as ITUC President. The ITUC headquarters are in Brussels, where both the ICFTU and the WCL were located. 14. As their final act, the delegates unanimously elected Guy Ryder ITUC General Secretary. Formerly the General Secretary of the ICFTU, Ryder in his acceptance speech SIPDIS alluded to the difficulties of founding the ITUC. It required political will, he told the delegates, "a commodity that can be made available or withheld at your discretion." He asked them "to be absolutely resolute in rejecting any type or temptation of organizing in internal tendencies or fractions." He offered an outstretched hand to governments, international organizations, and employers. "But to those who oppose us," he concluded, "to those whose business is exploitation and repression, whose way of work is diktat and the abuse of financial and political power and whose attitude is arrogance--and they are still many--our message is that the outstretched hand can quickly become a clenched fist, and that we will not flinch from confrontation when confrontation is the only way." The delegates gave him a standing ovation. COMMENT 15. The delegates to the ITUC founding congress are under no illusion that trade union unity will be easy to achieve. But they spoke with conviction about the need to unite to confront "globalization." The term means different things to different unions depending on their membership, the political environment in which they operate, and the employers whom they face across the bargaining table. The delegates all seemed to agree, however, that unification is essential if trade unions wish to be "a countervailing force in the global economy," a force for increasing the labor share of national income, promoting respect for international labor standards, strengthening democratic institutions, and making a contribution to peace through social justice. 16. More information about the ITUC is available at www.ituc-csi.org. 17. This cable was drafted by Amembassy Berlin Labor Counselor Bob Hagen, who with the help of Amembassy Vienna attended the ITUC founding congress as an observer. TIMKEN JR Kilner

null Dayna R Robison 11/16/2006 10:22:37 AM From DB/Inbox: Dayna R Robison Cable Text: UNCLAS VIENNA 03297 SIPDIS CXVIENNA: ACTION: DCM INFO: POLEC EXEC AMB DISSEMINATION: AMB CHARGE: PROG APPROVED: ADCM:GPHILLIPS DRAFTED: AMEMBASSY BERLIN:RSH CLEARED: NONE VZCZCVII830 RR RUEHC RUEHXI RUEHAM RUEHAN RUEHKT RUEHKU RUEHKV RUEHLU RUEHMK RUEHMB RUEHSK RUEHGO RUEHYN RUEHVB RUEHJM RUEHUB RHEHNSC RUCNDT RUEHC DE RUEHVI #3297/01 3131448 ZNR UUUUU ZZH R 091448Z NOV 06 FM AMEMBASSY VIENNA TO RUEHC/SECSTATE WASHDC 5502 INFO RUEHXI/LABOR COLLECTIVE RUEHAM/AMEMBASSY AMMAN 0224 RUEHAN/AMEMBASSY ANTANANARIVO 0034 RUEHKT/AMEMBASSY KATHMANDU 0114 RUEHKU/AMEMBASSY KUWAIT 0124 RUEHKV/AMEMBASSY KYIV 0007 RUEHLU/AMEMBASSY LUANDA 0032 RUEHMK/AMEMBASSY MANAMA 0100 RUEHMB/AMEMBASSY MBABANE 0029 RUEHSK/AMEMBASSY MINSK 0744 RUEHGO/AMEMBASSY RANGOON 0027 RUEHYN/AMEMBASSY SANAA 0085 RUEHVB/AMEMBASSY ZAGREB 1752 RUEHJM/AMCONSUL JERUSALEM 0188 RUEHUB/USINT HAVANA 0014 RHEHNSC/NSC WASHDC RUCNDT/USMISSION USUN NEW YORK 0163 RUEHC/DEPT OF LABOR WASHDC

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