Social protection:
Employment protection and protective measures

Mergers and Acquisitions (M&A) is a phenomenon in the chemicals industry today. Between 1994 and 2004, there were at least 775 M&A transactions in the chemicals industry each worth a minimum of US$25 million. Total value of these transactions is an estimated US$300 billion. Although M&As are not necessarily the single cause of job loss, UN data indicates that over 1.5 million jobs in the industrial chemicals segment alone were lost on the global scale. In the overall chemical industry, about 3 million jobs were lost in the past decade. Some analysts suspect that the actual figure might be higher.

In order to promote the Decent Work Agenda in the chemicals industry, the ILO emphasizes that it is important to differentiate between employment security and stability as far as work flexibility is concerned. This is particularly valid in any period of transition between having a “job for life” and having stable but flexible employment which is becoming increasingly common today. The ILO also emphasizes that flexibility should not result in the erosion of workers’ rights. Nor should it undermine their occupational safety and health. Appropriate work flexibility can have a positive effect on employment stability. It can lead to increased job satisfaction and employment security, especially when combined with multiskilling and lifelong learning.

Prior consultation is also important to secure employment for a group of vulnerable workers. Social partners in the chemicals industry demonstrate that collective agreements establishing rights to jointly decide with management about whether to sub-contract and to whom to sub-contract are effective means of protecting vulnerable workers. Consultation and involvement in decision-making can help to secure effective planning for change rather than merely trying to protect workers after the decisions over contracting have been made.

Useful links/resources

• Note on the Proceedings of the Tripartite Meeting on Best Practices in Work Flexibility Schemes and their Impact on the Quality of Working Life in the Chemical Industries, Geneva, 27-31 October 2003