wcms_161662
wcms_161662
wcms_161662
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4.2. Employee–employer relations<br />
4.2.1. Unionization<br />
120. The oil industry is not characterized by a preponderance of workers’ organizations. Trade<br />
unions are more frequent in NOCs, especially in South America and Africa, than in IOCs.<br />
In Mexico, in 2005, the oil industry had the highest unionization rate (more that 75 per<br />
cent) of any industrial sector. Temporary workers in the Mexican oil industry are also<br />
unionized, whereas in most private sector enterprises they are not part of the unionized<br />
workforce. 51 In Nigeria, the unionization rate in the oil industry in 2003 was about 60 per<br />
cent. 52 In the United Kingdom, in 2003 the unionization rate in the oil extraction sector<br />
was 18.1 per cent, lower than in industry as a whole (26.5 per cent). However, the<br />
unionization rate has traditionally been higher in the refinery sector (21.7 per cent), 53 than<br />
offshore. In the United States, the unionization rate in the extraction sector was 11.4 per<br />
cent in 2004. 54 Declining rates of unionization seem to be widespread. In Canada, for<br />
example, the unionization rate in oil well work, including mining, has dropped by about<br />
4 per cent over a decade, from 32.5 per cent in 1980 to 28.4 per cent in 1990. 55<br />
121. The level of unionization among women workers in the oil industry is very low. In the<br />
United Kingdom, almost no women workers are unionized in the extraction and related<br />
activities sectors. In the oil refinery sector, union density of women was only 5.5 per cent<br />
compared with 27.8 per cent for all women in employment. 56 In Nigeria in 2003, about<br />
20 per cent of women workers in the oil industry were unionized. 57<br />
4.2.2. Collective bargaining<br />
122. Union recognition for collective bargaining is of paramount importance for unions and<br />
their members and often for non-union members. Employers often resist bargaining with<br />
workers’ organizations, especially if it is not a legal requirement. This is particularly true<br />
at the enterprise level, where such resistance from management can more easily be<br />
exercised and “individual workplace agreements” entered into, sometimes on a “take it or<br />
leave it” basis rather than through legitimate bargaining. In the Canadian petroleum<br />
51 C. Reynoso Castillo: Industrial relations in the oil industry in Mexico (Geneva, ILO, Sectoral<br />
Activities Programme Working Paper No. 239, 2005), p. 28.<br />
52 S. Fajana: Industrial relations in the oil industry in Nigeria; (Geneva, ILO, Sectoral Activities<br />
Programme Working Paper No. 237, 2005), p. 6.<br />
53 C. Forde et al.: Good industrial relations in the oil industry in the United Kingdom (Geneva,<br />
ILO, Sectoral Activities Programme Working Paper No. 230, 2005), p. 8.<br />
54 G. Chaison: Unions in America (London, Saga Publications, 2006), p. 51.<br />
55 N. Meltz and A. Verma: “Developments in industrial relations and human resource practices in<br />
Canada: An update from the 1980s”, in R. Locke, T. Kocharn and M. Piore (eds): Employment<br />
Relations in a Changing World Economy (Massachusetts, MIT Press, 1995), p. 103.<br />
56 C. Forde et al., op. cit.<br />
57 S. Fajana, op. cit.<br />
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