Iraqi Oil Workers to Strike Over Privatization Law - Solidarity Action Requested

www.uslaboragainstwar.org

Dear Sisters and Brothers:

This morning we received notice from our friends in England that the Iraqi oil workers intend to strike on Thursday to demonstrate their opposition to the proposed hydrocarbon law that has been pressed upon the Iraqi government by the Bush administration and the IMF. The press release is reproduced below.

Listed below is a list of things your organization can do to support these courageous Iraqi workers and their unions.

Opposition to this law within the Iraqi labor movement is universal.

WHY ARE IRAQI UNIONS OPPOSED TO THE OIL LAW?

The proposed hydrocarbon law, if adopted by the Iraqi parliament as proposed, would provide a backdoor opportunity for multinational oil corporations to secure long-term (as long as 30 years) control over more than 2/3 of Iraq's undeveloped oil reserves. The Bush administration and its corporate and political allies are putting tremendous pressure on the Iraqis to adopt this law. It has engaged the services of the IMF to pressure Iraq by making adoption of the law a condition of debt relief and further financing from the international community.

By making its adoption a benchmark of "progress" and "cooperation," the Congress would become complicit in effectively privatizing Iraqi oil while simultaneously undermining Iraq's sovereignty and depriving it of the resources that would otherwise be derived from the sale of its oil to finance reconstruction of the country we have destroyed. If the Iraqi government succumbs to this pressure (which it well might under these circumstances), Congressional action to require adoption of the law would provide legitimacy to this raid on Iraq's oil resources.

Last week we sent you the Open Letter we sent to the leadership of the Congressional Out of Iraq Caucus, Speaker Pelosi and others in which we critiqued the draft hydrocarbon law that is referenced in the supplemental appropriation, H.R. 508 and the other bills. If the leadership of the Congressional Out of Iraq Caucus had read the law which the Bush administration and oil lobby have been pressing the Iraqi government to adopt, they would not support a provision in the supplemental appropriation and H.R. 508 (Sec. 109), that establishes adoption of the oil law as a benchmarch of "progress" or "cooperation," as is presently the case.

I am confident that most members of the Out of Iraq Congressional Caucus embraced this concept in the belief that adoption of an oil law that assures a fair and equitable distribution of oil revenues to all parts of Iraq is a condition for national unity and national progress in Iraq. I am equally certain that in doing so, they did not realize that the oil law contemplated would have such deleterious effects on the Iraqi people - and the exact opposite of the intended result:
It would instead establish the conditions for the continuing presence of U.S. troops (to protect U.S. "vital" interests - read corporate investment in oil field development).
It would allow each province/governate of Iraq to negotiate its own deals, pitting region against region, and undermining the central government's authority and control over oil policy (a prescription for even sharper regional competition and conflict).
It would very likely result in greater unemployment among Iraqis who would be displaced from the oil industry by foreign workers (because there is no requirement that foreign contract holders hire local workers).
It would siphon oil revenues out of the country, giving the central government fewer resources with which to reconstruct the nation's shattered infrastructure, social programs and economy (the law mandates a royalty of just 12.5%; foreign contract holders are not required to reinvest in Iraq and can repatriate all their profits; they can even transfer ownership shares without approval of the Iraqi government).
It contains only one sentence that talks about equitable sharing of revenues, but even if rigorously enforced, this would only apply to revenues paid to the government in royalties AFTER the oil cartel takes its cut.
It would further undermine workers' rights and the rights of unions in Iraq, forcing them to deal with foreign multinational corporations that are known to be hostile to labor rights (as well as environmental protection) rather than their own government which can be held accountable to the Iraqi people. (Iraq still does not have a basic labor law that respects the right of workers to organize, bargain and strike).

For a more detailed analysis, please look at the open letter. USLAW has also assembled an comprehensive archive of articles and analyses on this issue on our website.

Yours in solidarity for peace with justice in Iraq,

Michael Eisenscher, National Coordinator

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ACTIONS YOU CAN TAKE TO SUPPORT THE IRAQ OIL WORKERS, THEIR UNION, AND THE IRAQ PEOPLE

1. CONTACT YOUR CONGRESSIONAL REPRESENTATIVE.

Explain why they should reject adoption of an oil investment law as a benchmark of progress or Iraqi cooperation in the next version of the Supplemental Appropriation, and any in other legislation they may be asked to consider.

2. CONTACT YOUR NATIONAL UNION

Send them a copy of this message and ask that they mobilize their Political Department staff to lobby Congress in opposition to any oil law benchmark. Please ask that they act quickly as a vote on a new supplemental appropriation could come up as early as Friday.

3. ASK YOUR UNION TO SEND SOLIDARITY MESSAGES TO THE IRAQI FEDERATION OF OIL WORKERS

Our sisters and brothers in Iraq are risking their jobs and their lives in the struggle to secure their rights, to care for their families and to protect the interests of Iraq as a sovereign nation. They need to know that workers around the world support them.

Send solidarity messages for the Federation of Oil Unions to President Hassan Juma'a Awad Al Assadi, c/o USLAW at < iraqsolidarity@uslaboragainstwar.org>. They will be transmitted to the Oil Workers Union and posted to the USLAW website.

4. MAKE A CONTRIBUTION TO THE USLAW IRAQ LABOR SOLIDARITY FUND

USLAW is organizing a speaking tour of the U.S. for Faleh Abood Umara, General Secretary of the Federation of Oil Unions, and Hashmeya Muhsin Hussein, President of the Electrical Utility Workers Union for June 4-29. This tour will provide an opportunity for Iraq labor leaders to speak directly to the American people and Congress to explain their opposition to the oil law, to describe the impact the occupation has had on working people, and to discuss the likely consequences of the occupation continuing and the occupation ending. Funds are desperately needed to defray the $25,000 in expenses of this tour. All funds raised in excess of the expenses will be contributed directly to Iraqi labor organizations to support their important work.

Please make a generous donation and ask your union/labor council/or other labor organization to do likewise. Donate on line or send a check payable to USLAW Iraq Labor Solidarity Fund to USLAW, 1718 M Street, NW, #153, Washington, DC 20036. (If you want a tax deduction, make it payable to USLAW/IPS and put Solidarity Fund in the memo line, but be aware that this will reduce the value of your contribution due to processing fees assessed by our fiscal sponsor, Institute for Policy Studies. )

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For Immediate Release
Tuesday May 8th 2007

Iraqi Oil Workers to Strike Over Privatisation Law

Iraq’s largest oil workers’ trade union will strike this Thursday, in
protest at the controversial oil law currently being considered by the
Iraqi parliament. The move threatens to stop all exports from the
oil-rich country.

The oil law proposes giving multinational companies the primary role in
developing Iraq’s huge untapped oilfields, under contracts lasting up to
30 years. Oil production in Iraq, like in most of the Middle East, has
been in the public sector since the 1970s.

The Union, representing 26,000 oil workers, has held three previous
strikes since 2003, each time stopping exports, for up to two days at a
time. The announcement of the strike has spurred negotiations with the
Ministry of Oil, which are ongoing.

Imad Abdul-Hussain, Federation Deputy Chair of the IFOU said: "The
central government must be in total ownership and complete control of
production and the export of oil". He warned against the controversial
Production Sharing Agreements favoured by foreign companies, saying
other forms of co-operation with foreign companies would be acceptable
but not at the level of control and profiteering indicated in the
current Oil Law.

Federation President Hassan Jumaa Awad al Assadi said: ‘The oil law does
not represent the aspirations of the Iraqi people. It will let the
foreign oil companies into the oil sector and enact privatisation under
so called production sharing agreements. The federation calls for not
passing the oil law, because it does not serve the interests of the
Iraqi people."

The Union is not alone in its’ condemnation of the current oil law.
Opponents of the law also include all of Iraq’s other trade unions, a
number of political parties, and a group of over 60 senior Iraqi oil
experts.

Hassan Jumaa went on to say: "The federation calls on all unions in the
world to support our demands and to put pressure on governments and the
oil companies not to enter the Iraqi oil fields."

Union members are also demanding an improved salary structure and a
distribution of land for building homes.

Ewa Jasiewicz of Naftana ­ the UK Support Committee for the IFOU said:
‘The Iraqi Federation of Oil Unions, like any union, has the right to
engage in collective bargaining over issues important to their members.
In this case, the issue of who controls Iraq’s oil and the economic
future of the country is an issue which is important to all Iraqis. The
Union has repeatedly called for civil society inclusion in the drafting
of the oil law and has been ignored. They are now asserting their right
to have a voice in the decision making process affecting their industry
and Iraq’s economic future ­ their courage and commitment to democracy
should be supported’.

Instead of the union’s participation being welcomed, leaders have been
accused of jeopardizing security and threatened with legal action.

Farouq Al-Asadi, the Federation's Secretary said: ‘The Oil Minister
chooses to forget that the right to strike is guaranteed by the
constitution - we have chosen the legal path’.

Union leaders have already received a number of death threats which they
are taking seriously. "As soon as the federation called for the strike,
many of our members and officials were physically threatened by parties
active in the political process, with the aim of thwarting the strike
and undermining the message of the strike organisers."

Contacts

Hassan Jumaa Awad Al Assadi, President of the Iraqi Federation of Oil
Unions 00964 7801 001 196 or 00964 7804 114 619 www.basraoilunion.org

Sami Ramadani, lecturer and writer and member of Naftana ­ UK Support
Committee for the IFOU 0044 7863 138 748 sami.ramadani@londonmet.ac.uk

Ewa Jasiewicz, Naftana UK Support Group for the IFOU and Hands Off Iraqi
Oil Campaign 0044 7749 421 576 freelance@mailworks.org
www.handsoffiraqioil.org

Notes

The IFOU is an independent trade union representing workers across 4
southern provinces in Iraq: Misan, Dhi Qar, Basra and Mauthanna in nine
oil and gas related companies.

The Union has been organizing since April 2003 and has stopped oil
exports and production over wages and workers rights in the past. It has
also held protests against oil smuggling, former regime bosses and what
the union sees as the deliberate neglect and degradation of the industry
in order to justify private investment.

Union members have carried out reconstruction work on drilling rigs,
port equipment, pipelines and refineries since the invasion with
minimal, mostly local resources.

The Union is not linked to any political party in Iraq but has members
which belong to various parties.

The Union enjoys the support of trade unions and civil society
organizations around the world including the International Confederation
of Energy, Mining and General Workers Union (ICEM), the AFL-CIO in the
US, and the Trade Unions Congress (TUC) in the UK including the NUJ and
TGWU. The union is partnered with UK development charity War on Want,
the 3 milllion strong US Labor Against War in the USA, and Italian NGO
Un Ponte Per.