Change a long time coming for subcontracted slaughterhouse workers

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Change a long time coming for subcontracted slaughterhouse workers
Change a long time
coming for subcontracted
slaughterhouse workers
Germany’s new Occupational Safety and Health Inspection Act, passed in December
2020, has banned subcontracting in the meat industry, a practice that was exploited
on a large scale to hire migrant workers on less favourable terms and conditions. In an
industry that has long been dogged by harrowing tales of working conditions, a mass
outbreak of Covid-19 in a meatpacking plant became a catalyst for reform. The Act is
an important milestone for the sector not just in Germany but across Europe, where
pressure along the supply chain has created similar problems in multiple countries.
Bethany Staunton
ETUI

↱ Many factors make
abattoirs particularly
susceptible to
transmission.
Photo:  ©  Martine Zunini

14            HesaMag 23 . Spring 2021   Special report
Change a long time coming for subcontracted slaughterhouse workers
"On the killing beds you were apt to be cov-     An open secret
ered with blood, and it would freeze solid; if
you leaned against a pillar, you would freeze    Germany is renowned for its strong indus-
to that, and if you put your hand upon the       trial relations system. Yet over the past few
blade of your knife, you would run a chance      decades, companies in the meat sector have
of leaving your skin on it."                     managed to find holes in the fabric of this
     Upton Sinclair’s classic American novel     system by hiring workers under various
The Jungle, the story of an immigrant fam-
ily from Lithuania working in the abattoirs
                                                 "alternative" forms of contract, such as sub-
                                                 contracted, temporary agency and posted
                                                                                                  "They stand shoulder
of Chicago, was published in 1906 to both        work. Official information about the inci-       to shoulder, sweating
critical acclaim and public outrage due to
its unflinching portrayal of the dire condi-
                                                 dence of contract workers in the meat in-
                                                 dustry is only available for some companies,
                                                                                                  due to the hard work."
tions in a meat industry dominated by big        but Specht estimates that in 2020 some 30-
business and rife with exploitation and un-      35 000 workers (around one third of the
sanitary practices.                              meat industry workforce) had a precarious
     Fast-forward over a century later, to       status, in some plants accounting for up to
June 2020. A mass Covid-19 outbreak              80-90% of the workforce.1 Specht explains
in a meatpacking plant in the North              the implications of this: "Tönnies is not at     plant, explains, "The subcontracted work-
Rhine-Westphalia region of Germany drags         all responsible for any of their working or      ers could not participate in the [works
the issue of working conditions in the meat      living conditions. [The company’s] line is:      council] election [with some exceptions].
industry into the spotlight once again. More     'My main workforce is not mine'. Covid-19        As a result, these employees were not seen
than 1 500 workers, out of a 7 000-strong        put a spotlight on the situation."               as part of their own workforce and there-
workforce, test positive, leading to lock-           It became clear from multiple research       fore less responsibility was shown towards
downs of the nearby districts of Gütersloh       and investigative reports that subcontract-      them." This, combined with "language bar-
and Warendorf and a lot of bad publicity         ing in this sector had become a business         riers, a large fluctuation, and the poor expe-
for the plant’s owner, the Tönnies Group.        in itself.2 In their work on this topic, re-     rience of eastern European workers in their
Tönnies is a behemoth in the German meat         searchers Dorothee Bohle and Cornel Ban          homelands with trade unions," made this
industry, far surpassing its closest competi-    discovered this system to be sustained by        mobile workforce a difficult group to or-
tors Vion and Westfleisch in workforce size,     a vast and complex "archipelago of recruit-      ganise. Finally, the problematic health and
market share and turnover (7.3 billion euros     ers". Bohle, professor of social and political   safety situation was further exacerbated by
in 2019, according to the company).              change at the European University Insti-         a low rate of workplace inspections, which
     Many factors make abattoirs particu-        tute, explains how "almost mafia-like sub-       were critiqued for often being announced
larly susceptible to transmission, even in       contractors recruit and channel people to        in advance, giving the employers time to
the best of conditions. "They stand shoul-       more powerful middlemen," who have con-          prepare.
der to shoulder, sweating due to the hard        tracts with the large German companies. In
work," says Johannes Specht, head of col-        fact, "mafia-like" is a term that often comes
lective bargaining at the Food, Beverages        up in interviews in reference to what Ban,       Feeling the pressure
and Catering Union (NGG), which repre-           associate professor at Copenhagen Business
sents meat industry workers in Germany.          School, calls the "understudied actors of big    According to Thorsten Schulten, head of
"They breathe deeply, it’s air-conditioned       meat" — from German multinationals to            the collective agreements archive of the
and cold." However, it soon became clear         small-time recruiters in Romanian villages.      Institute of Economic and Social Research
that workers were labouring in circum-           In Bohle’s words: "everybody benefits".          (WSI), things weren’t always this way: "Up
stances that were far from "the best of con-         Such a system of precarious contracts        until the 1990s, we had branch-level col-
ditions". In fact, what also helped the virus    made the monitoring of conditions and ac-        lective agreements, so there was relatively
to spread so easily was the fact that many of    cordance with labour law that much more          high coverage. But then the whole system
them were living together in cramped quar-       difficult. One of the biggest problems was       changed." The German meat industry be-
ters and travelling to the plant together in     working time: according to trade union           gan to rely heavily on labour from eastern
shared cars or public transport. Why? Be-        sources, workers had often been found
cause they were migrant workers, primarily       to be working 10, 12, even 16 hours a day.
from Romania, Poland and Bulgaria, hired         The next and related issue was pay. Despite
indirectly by "subcontracting agencies" to       the introduction of a statutory minimum
work at the slaughterhouse. Suddenly, The        wage in Germany in 2015 (currently €9.35,
Jungle didn’t seem like ancient history          which is already lower than other western
anymore.                                         EU countries), unpaid overtime and unjust                             1.	For more information
                                                                                                                           on the structure of the
                                                 subtractions from salaries for living and                                 German meat industry and
                                                 travel costs meant that these workers were                                its workforce, see Erol S.
                                                 often earning far below what they should                                  and Schulten T. (2021),
                                                                                                                           WSI Report 61, p. 9.
                                                 have been. This migrant, casual workforce
"This is not just
                                                                                                                       2.	See Solomon E., Hopkins
                                                 was also to a great extent blocked from                                   V. and Vladkov A. (2021)

a German but a                                   workplace representation. As Armin Wiese,                                 "Inside Germany’s
                                                                                                                           abattoirs: the human cost
                                                 NGG Detmold-Paderborn managing direc-
European problem."
                                                                                                                           of cheap meat", Financial
                                                 tor and officer responsible for the Tönnies                               Times, 8 January 2021.

                                                 Special report                                   HesaMag 23 . Spring 2021                        15
Change a long time coming for subcontracted slaughterhouse workers
Europe, first via bilateral quota agreements       ↱ Wiebke Warneck,
with individual countries, before these            EFFAT’s Political
                                                   Secre­tary for the food,
were rendered unnecessary by the EU en-            drink and tobacco
largements of 2004 and 2007. The Posted            sector. Photo:  
Workers Directive (1996) gave workers and          ©  Martine Zunini
agencies the "freedom to provide services"
in another EU country, while remaining
under the labour law and social security
system of their home country3. In the ab-
sence of a statutory minimum wage in Ger-
many (until 2015), this also meant work-
ers could be paid the (far lower) pay rates
of the sending country. In 2015, German
firms agreed to stop using posted workers,
instead turning to subcontractors based in
Germany — now migrant workers were em-
ployed according to German law, but critics
maintained that unlawful practices on the
part of subcontractors, together with these
large companies’ abdication of employer re-
sponsibility, meant that abuses continued.
Schulten is adamant: "The German meat
industry has been following a wage dump-           and Lidl, which she calls a "special breed"
ing strategy and been very successful at it.       due to their emphasis on bargain prices. In     "The whole business
                                                                                                   model relies on cheap
The whole business model relies on cheap           this chain of pressure to maximise profits
labour." In his view, the reinstatement of in-     and drive down labour costs, the sector’s
dustry-level bargaining is a vital element to      firms, workers and trade unions across the      labour."
achieving true reform.                             continent all feel the heat.
    But this is not just about Germany. Af-            According to the "Meat-up Ffire" report,
ter a reflective pause, the NGG’s Johannes         an EU-financed research project on the pork
Specht comments: "Trade unions in many             value chain, compared to Germany, several
countries are very interested in what is           other meat-producing countries, particu-
happening here because Tönnies was put-            larly in northern Europe, have maintained       "multi-service" companies. These are just
ting pressure not only in Germany but              higher labour costs and wider collective        some of the ways that companies are trying
also in other countries because it was the         bargaining coverage in this sector. In Den-     to compete in a highly competitive Euro-
number one producer. The NGG was even              mark, for example, a very high unionisation     pean (and global) context. In the words of
sometimes blamed because slaughterhous-            rate and an absence of subcontracting has       Somaglia, "The meat sector is facing major
es elsewhere kept being closed down." This         kept slaughterhouse workers, both native        challenges everywhere in Europe."
is something that Enrico Somaglia, depu-           and migrant, better protected. But such an
ty general secretary of the European Fed-          industrial relations landscape is, unsurpris-
eration of Food, Agriculture and Tourism           ingly, not always seen as the most "favour-     A new chapter?
Trade Unions (EFFAT), would concur with:           able" environment for big business. Multi-
"A very negative process has developed             nationals such as Danish Crown (Denmark)        However, the wind could finally be blowing
around Europe, because to remain compet-           and Vion (the Netherlands) have moved           in the right direction for those pushing for
itive, in other countries the sector had to        many of their facilities to Germany over the    reform. In December 2020, the Bundestag
launch similar processes like subcontract-         years. In Belgium, where the labour costs in    (German parliament) passed the Occupa-
ing. Our affiliates complain a lot because a       the industry are also comparatively higher      tional Safety and Health Inspection Act
lot of jobs have been lost due to the unfair       and a binding industry-level agreement is       (Arbeitsschutzkontrollgesetz), which im-
competition in Germany." This process has          in place, companies also began to relocate      mediately banned subcontracting in the
been further intensified by the development        or subcontract activities to Germany. This      meat industry (with a further ban on tem-
of large retail chains with greater bargain-       actually culminated in a formal complaint       porary agency work as of April 2021), as
ing power, which demand cheap meat and a           about unfair competition and social dump-       well as obliging the electronic recording of
lot of it; Bohle points in particular to the in-   ing from the Belgian economy and employ-        working hours and introducing a minimum
fluence of such German discounters as Aldi         ment ministers to the European Commis-          workplace inspection rate, amongst other
                                                   sion in 2013. In Italy, meanwhile, where        measures.
                                                   the sector is more fragmented into smaller          But will it be enough? Despite cele-
                                                   businesses, trade unions are facing issues      brating this watershed moment, unions
3.	See Rasnača Z.,                               of "bogus co-operatives" and what EFFAT         still have many concerns, and not without
    Bernaciak M. (eds)                             calls "collective bargaining dumping" —         cause. After all, hopes have been falsely
    (2020) Posting                                 meaning the application of less favoura-        raised before. Enrico Somaglia remembers,
    of workers before
    national courts,                               ble collective agreements than those in         "In 2015, German companies committed to
    Brussels, ETUI.                                the meat sector through subcontracting to       not using posted workers anymore. And in

16             HesaMag 23 . Spring 2021                          Special report
4.	The Pure Food and
the same year, we had the introduction of        unless there is really a European re-regula-                      Drug Act and the
the minimum wage in Germany. And we              tion of these working relations."                                 Meat Inspection Act,
all thought, 'Ok now in Germany, it’s over.          And this is exactly what EFFAT is fight-                      1906.
There is no exploitation anymore.' But then      ing for. The organisation published "10
they started with subcontracting."               demands for action at EU level" which in-
    The fear now is that companies will find     clude "regulating the use of subcontract-
ever-inventive ways of evading this new law.     ing in the meat sector" and "instituting a        on working conditions went largely unad-
Before it was even passed, Tönnies was re-       system of full chain liability covering both      dressed, famously declaring: "I aimed for
ported to have founded 15 subsidiaries with      cross-border and domestic situations", "a         the public’s heart, and by accident hit it in
fewer employees. While there is still much       legally binding EU instrument ensuring            the stomach." This is a form of "dirty, dif-
debate about whether this action would           decent housing for all mobile workers", and       ficult and dangerous" labour that we prefer
be successful or was even intended to cir-       "the urgent introduction of a European So-        not to speak of, that we outsource to the
cumvent the lower employee threshold for         cial Security Number" to make it easier to        most vulnerable in our society who take
the contract ban — Tönnies declared that         perform checks on pay and conditions. In          on the burden of intense physical and psy-
this did not disprove its intention to hire      light of the chronic problem of ineffective       chological strain that it can involve. The
employees directly — the NGG remains on          workplace inspections, EFFAT are also             enforcement of truly effective measures to
guard. Meanwhile, the vast network of in-        calling for the greater empowerment of the        protect them could mean a moment of reck-
termediaries studied by Bohle and Ban will       European Labour Authority to carry out            oning for the entire industry. ●
most likely not be disappearing into thin        cross-border inspections. On this point,
air. As Bohle points out, "Where these ma-       Wiebke Warneck, EFFAT’s Political Secre-
jor players are, these middlemen also own        tary for the food, drink and tobacco sector,
part of the real estate that is then rented to   emphasises the importance of looking at
migrant workers. So they cannot disappear        the bigger picture: "Generally speaking, we
from there." And the companies themselves        don’t have enough controls throughout Eu-
                                                                                                               FURTHER READING
could start moving more facilities to other      rope — the first big cut of labour inspectors
countries. In September 2020, there were         came with the financial crisis. And it’s not                  Campanella P. and Dazzi D. (eds.)
reports of Tönnies planning a €75 million        just an issue in meat. It’s not just an issue                 (2020) Meat-up Ffire: fairness,
investment in a new pork-processing plant        in Germany."                                                  freedom and industrial relations
in Spain. Finally, as is clear from all of the       Infamy has long dogged this industry,                     across Europe: up and down
above, working conditions in the meat in-        peaking at various moments in history,                        the meat value chain, Milano,
dustry is not just a German but a Europe-        often due to consumer, environmental or                       FrancoAngeli.
an problem, meaning that European solu-          animal welfare concerns. Sinclair’s novel
                                                                                                               EFFAT (2020a) Covid-19 outbreaks
tions may be required. Bohle is certainly        was a catalyst for the introduction of new
                                                                                                               in slaughterhouses and meat
convinced of this: "[These practices] are        food safety legislation in the United States. 4
                                                                                                               processing plants: state of
going to be reproduced in other countries        But the writer felt frustrated that his focus
                                                                                                               affairs and demands for action
                                                                                                               at EU level, Brussels, European
                                                                                                               Federation of Food, Agriculture
                                                                                                               and Tourism Trade Unions.
↴ Enrico Somaglia,                                                                                             EFFAT (2020b) Hungry for
Deputy General
Secretary of EFFAT.                                                                                            fairness: raising standards in the
Photo:  ©  Martine Zunini                                                                                      meat sector EFFAT’s 10 demands
                                                                                                               for action at EU level, adopted
                                                                                                               by the Executive Committee on
                                                                                                               10 September 2020, Brussels,
                                                                                                               European Federation of Food,
                                                                                                               Agriculture and Tourism Trade
                                                                                                               Unions.
                                                                                                               Erol S. and Schulten T. (2021)
                                                                                                               Renewing labour relations in the
                                                                                                               German meat industry: an end to
                                                                                                               'organised irresponsibility'?, WSI
                                                                                                               Report 61, Düsseldorf, Institute of
                                                                                                               Economic and Social Research.
                                                                                                               Wagner B. and Hassel A. (2015)
                                                                                                               Labor migration and the German
                                                                                                               meat processing industry:
                                                                                                               fundamental freedoms and the
                                                                                                               influx of cheap labor, The South
                                                                                                               Atlantic Quarterly, 114 (1),
                                                                                                               204-214.

                                                 Special report                                    HesaMag 23 . Spring 2021                     17
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