(EU) and the Common Market of the South (MERCOSUR)? - FDCL
(EU) and the Common Market of the South (MERCOSUR)? - FDCL
(EU) and the Common Market of the South (MERCOSUR)? - FDCL
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76<br />
European automobile producers in <strong>MERCOSUR</strong>, like Volkswagen do Brazil,<br />
traditionally produce, to a large extent, for <strong>the</strong> domestic market. As a result <strong>of</strong> <strong>the</strong><br />
weak Brazilian economy in 2002 <strong>and</strong> 2003 <strong>and</strong> given <strong>the</strong> importance <strong>of</strong> <strong>the</strong> Brazilian<br />
production <strong>and</strong> sales for <strong>the</strong> consolidated accounts <strong>of</strong> <strong>the</strong> Volkswagen AG globally,<br />
<strong>the</strong> Brazilian subsidiary Volkswagen do Brazil has been responsible for a major<br />
share <strong>of</strong> Volkswagen’s overall losses in 2002-2003. 203 VW do Brazil has an annual<br />
production capacity <strong>of</strong> 740,000 vehicles, but currently [2003], due to <strong>the</strong> “weakness<br />
in dem<strong>and</strong>”, only 473,000 vehicles are being produced. 204<br />
In times <strong>of</strong> such “weaknesses in dem<strong>and</strong>” transnational corporations like Volkswagen,<br />
which like to praise <strong>the</strong>ir “social responsibility” towards <strong>the</strong>ir employees in a<br />
publicity-effective manner, don’t take labor law too seriously, as <strong>the</strong> 2003 corporate<br />
strategy to confront <strong>the</strong>se losses shows: Cost-management through lay<strong>of</strong>fs. And<br />
in doing so <strong>the</strong> Wolfsburg headquarters has not been squeamish <strong>and</strong> with only<br />
shareholder value in mind is ready to pass over labor laws as well as over <strong>the</strong>ir own<br />
o<strong>the</strong>rwise publicly effective, marketed, both internally as well as globally valid codes<br />
<strong>of</strong> conduct.<br />
Volkswagen planned to reduce personnel in <strong>the</strong> plants in <strong>the</strong> federal states <strong>of</strong><br />
São Paulo, Tabaute <strong>and</strong> Anchieta by 4000 employees. Anchieta is <strong>the</strong> oldest Volkswagen<br />
plant in Brazil <strong>and</strong> at <strong>the</strong> same time <strong>the</strong> largest Volkswagen entity abroad.<br />
In order to reach this goal, without violating <strong>the</strong> job security agreement between <strong>the</strong><br />
union <strong>and</strong> <strong>the</strong> corporation which is valid until 2006, <strong>the</strong> 4000 employees are to be<br />
transferred to a Volkswagen employment <strong>and</strong> training firm –in response <strong>the</strong> VW-employees<br />
were up in arms <strong>and</strong> announced strikes. Volkswagen CEO Bernd Pischetsrieder<br />
felt he was in <strong>the</strong> position to pass over all valid Brazilian labor legislation, <strong>and</strong><br />
to threaten all strikers with lay<strong>of</strong>fs, 205 a statement which was explicitly confirmed by<br />
<strong>the</strong> Volkswagen spokesman. 206 This in turn induced <strong>the</strong> Brazilian Labor courts 207 to<br />
consider taking legal action against <strong>the</strong> VW-board <strong>of</strong> directors. 208<br />
Whe<strong>the</strong>r <strong>the</strong> right to strike is a fundamental right, however, is being disputed.<br />
The right to strike is not explicitly mentioned in <strong>the</strong> ILO Conventions No. 87 “on freedom<br />
<strong>of</strong> association <strong>and</strong> <strong>the</strong> protection <strong>of</strong> <strong>the</strong> right to organize” <strong>of</strong> 1948 <strong>and</strong> No. 98<br />
“concerning <strong>the</strong> application <strong>of</strong> <strong>the</strong> principles <strong>of</strong> <strong>the</strong> right to organize <strong>and</strong> to bargain<br />
collectively.” But <strong>the</strong> ILO Committee on Freedom <strong>of</strong> Association (CFA) considers <strong>the</strong><br />
203 Apart from <strong>the</strong> “weakness in turnover” <strong>the</strong> resulting “costs <strong>of</strong> restructuring for <strong>the</strong> Brazilian-bussiness” are adduced.<br />
http://www.ftd.de/ub/in/1067066343667.html?nv=sl.<br />
204 http://www.n-tv.de/3173891.html.<br />
205 http://www.bbc.co.uk/portuguese/economia/story/2003/09/030923_volksvale.shtml.<br />
206 http://www.bbc.co.uk/portuguese/economia/story/2003/09/030923_volksvale.shtml.<br />
207 “Procuradora-Geral do Trabalho.”<br />
208 http://www.estado.com.br/editorias/2003/09/26/eco043.html.