The Dispute

After 8 days of peaceful protest, the 32 workers then began a legal strike on December 3rd 2003. On December 4th, Chubb issued termination letters to the striking workers. Through their union, the Konfederasaun Sindicatu Timor Lorosa'e (KSTL), the workers refused to accept the termination letters, claiming they were illegal because:-

1. It contravenes the Labour Code of Timor Leste Section 37.2c, which says that employers have to give 30 days notice before issuing a termination letter if a worker has worked for a year or more.

2. The picket undertaken on 3rd December was legal because the workers gave prior notification on 18th November 2003.

3. World Bank is not an essential service. According to the Labour Code, essential services include the Police, Ambulance, electricity, hospitals and public transportation (Labour Code, Section 1, Part 2)

4. Moreover, by terminating workers who were undertaking a legal strike, Chubb are acting against the Constitution of the Democratic Republic of Timor Leste, Article 51. which guarantees the right to strike.

Currently, the KSTL has lodged a claim in the courts against Chubb for unfair dismissal, but it may be six months before this is heard. Meanwhile, Chubb is trying to re-employ workers on individual contracts with a clause specifying they do not undertake union activity. To date, 5 of the dismissed 32 workers have re-signed the new contract. The new contracts are for $94 a month ($85 wage plus $9 for annual leave, sick leave, etc)

Chubb's parent company, United Technologies Corporation (UTC) is a $US 28.2 billion global corporation, with seven operating companies and United Technologies Research Centre. UTC employs approximately 155,000 people worldwide and operates in 180 different countries. It is the 49th largest U.S. corporation and a component of the Dow Jones industrial average. Besides Chubb, UTC's other business units are: Carrier, Hamilton Sundstrand, Otis, Pratt & Whitney, Sikorsky, UTC Power and United Technologies Research Centre.

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Last Modified: Wednesday, 16-Nov-2005 16:05:25 EST
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