British, US trade unions to merge

British, US trade unions to merge
AFP - Monday, May 26 12:36 am

LONDON (AFP) - Britain's biggest trade union is set to announce a merger with a US counterpart to eventually create the first global labour organisation, a press report said Sunday.

The planned tie-up between Britain's Unite and United Steelworkers (USW) in the United States is designed to better protect workers against the effects of globalisation, the Sunday Telegraph said.

Unite has two million members in Britain and the Republic of Ireland working for major companies including oil giant BP and Rolls Royce, while USW has more than one million members in the United States and Canada.

The paper said the two unions had finalised the details of a "framework agreement" and a formal alliance would be unveiled at a USW convention in Las Vegas in July.

The two unions view the merger as the first step towards a global union that could take in labour movements from the world's emerging markets in eastern Europe, Latin America and Asia, the report added.

The plans also reflect recognition among union officials in Britain and the United States that as a cross-border body they would be stronger in negotiations with multi-national companies, the Sunday Telegraph said.

Unite was unavailable for comment.

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UK and US union 'to join forces'
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The UK's biggest union Unite is reportedly on the brink of merging with a counterpart in North America.

A deal between Unite and the United Steelworkers' union (USW), is hoped to be sealed by the USW's convention in July, the British union said.

An agreement would be a milestone in organised labour's efforts to deal with the globalisation of business.

The combined group would have more than three million members in the UK, the US, Canada and the Caribbean.

Stronger influence?

Talks between the union were held last week in London to thrash out the details of the establishment of the first transatlantic union.

"While big business is global and labour is national, we are going to be at a disadvantage"
Andrew Murray, Unite

A Unite spokesman told Associated Press that the talks were a "first step" and that many details had yet to be finalised.

"We are dealing with global companies that can move capital - and employment - around the world at will in many cases," said Andrew Murray.

"While big business is global and labour is national, we are going to be at a disadvantage."

Although there are different labour laws in other countries, union officials hope that a combined group will increase their bargaining clout in talks with multinational conglomerates.

It is thought the deal will eventually pave the way for the formation of a new umbrella organisation, with a single management structure and leader.

Labour unions from other regions, including from red-hot emerging economies in Asia, Eastern Europe and Latin America, are also being encouraged to co-operate.

Unite represents employees at some of Britain's biggest companies, including defence firm BAE, Rolls-Royce, brewer Scottish & Newcastle and Scotland's only oil refinery, Grangemouth.

The union is the product of last year's merger between the Transport and General Workers Union (T&G) and Amicus.