Will the bill for the crisis be footed by workers again? Allegations of a 'Secret Agreement' at Şişecam

ACTIVIST ERKAN ERDEM

On December 26, 2024, Şişecam acquired shares in Ciner Group's US companies for $285.4 million. However, the picture for workers in Turkey is entirely different: workers, who are threatened with the relocation of factories abroad under the pretext of a crisis, are being asked to give up their welfare share. Furthermore, it is alleged that the union has accepted this proposal and that the workers' rights have been left on the table.

So, who is really in a difficult situation? The bosses or the workers? And how did this “silent agreement” come to be without being explained to the workers?

A STORY OF THREATS AND COMPROMISE

According to the workers, the Şişecam management threatened to close the glass fiber factory in Balıkesir and move several production facilities to Egypt. The justification for this threat is, once again, familiar: "Financial difficulties."

However, this "struggling" company is making hundreds of millions of dollars in acquisitions during the same period and continues to report profits.

During the negotiations, the Şişecam management demanded the removal of the 20% additional "welfare share" received by workers, despite the binding clause in the collective bargaining agreement, in exchange for not moving the factories abroad. This means the expected raise for salaries would be approximately 6% less.

And according to the allegations, the union signed this agreement. However, this compromise was not explained to the workers.

WELFARE SHARE GONE, NEW WORKERS HIRED AT MINIMUM WAGE

It is stated that new workers to be hired to replace those who retired under the EYT (Retirement at Age) regulation will start at minimum wage. According to the workers' claims, the Şişecam management also managed to profit from this process.

Although the exact number is not clear, it is stated that approximately 1,000 workers have retired or were forced to retire under EYT in 1.5 years. By getting rid of the high salary burden of veteran workers who retired, the company is reducing its costs by paying lower wages to newly hired workers. In short, the bosses win at every step; the losers are, once again, the workers.

ISN'T IT ILLEGAL NOT TO COMPLY WITH A 'BINDING AGREEMENT'?

Workers emphasize that the terms in the collective bargaining agreement are binding and that acting against them constitutes a serious injustice: “This means leaving the worker in the lurch. Ignoring our rights is unacceptable. A binding agreement is valid for both parties.”

Criticism directed at the Kristal-İş union is harsh: “The union has left the workers' sweat on the table by compromising with the employer. Decisions are made without the workers' knowledge, and no one is held accountable.”

IS SILENCE THE SHADOW OF FEAR?

According to what the workers have shared, although some branches of the union opposed this agreement, the vast majority chose to remain silent.

At the root of this silence lies the “fear of being fired.” It is alleged that the union gave the workers the message, “If you defend your rights, you will be fired.” This policy of fear prevents workers from defending their rights.

WORKERS ARE THE ONES IN THE REAL CRISIS

Bosses constantly bring up new losses of rights under the pretext of a "crisis." However, workers say that the real crisis is for them:

“While the bosses continue to grow, we workers are losing our welfare share. We are the ones suffering the biggest loss, yet we are the ones paying the bill again.”

Another concern of the workers is that this agreement is only the beginning: "Today we gave up our welfare share. Tomorrow they will want to take away our other rights as well."

CRISIS MANAGEMENT OR USURPATION OF RIGHTS?

In Turkey, companies use crises to legitimize the loss of workers' rights. While employers continue to make profits, workers are asked to sacrifice their hard-won rights, such as the welfare share, in the name of "sacrifice." While Şişecam's multi-million dollar investments in the US continue, the pressure on workers with the threat of moving factories abroad shows that the crisis is not being managed by employers, but rather turned into an opportunity.

Such agreements imposed on workers under the name of crisis management make precariousness permanent. What management calls “strategic steps” is actually leaving the workers' sweat on the table.

THE “LOSS” STORY WITH INFLATION ACCOUNTING: WHERE ARE THE FACTS?

The fact that the 4.74 billion TL profit seen in Şişecam's 2023 third-quarter results turned into a 658.6 million TL loss after inflation accounting presents a striking picture. But does this loss represent a real loss? No.

Inflation accounting allows companies to show the loss of value of money on the balance sheet. However, this technical adjustment does not change the company's operational success or market power. The most critical point is that Şişecam offset 3.35 billion TL in financing expenses with 4.1 billion TL in monetary gains. This shows that the company is able to manage its financial risks and has reduced its debt ratio.

In short, the figures reveal that the company's real economic strength is not at a loss, but that it still maintains its profitability. In this case, forcing workers to waive their rights under the pretext of a "crisis" is merely a reflection of the goal to further increase the company's profit.

FINAL WORD: SILENCE IS COMPLICITY

According to the workers, while a deduction from the welfare share is planned for blue-collar workers affiliated with the union, it is alleged that no raises, including inflation adjustments, will be given to white and gray-collar employees either.

This situation shows that not only blue-collar workers but all employees of the company will experience a loss of rights.

The employers' threat and the union's silence are a major blow to the labor struggle. However, it should not be forgotten that silence is the greatest betrayal.

Şişecam, which is a source of pride for Turkey with its “Boss-less Company” model, wrote a success story for years with labor-intensive production. However, cutting workers' welfare shares today, leaving their rights on the table, and imposing a compromise through threats contradicts this deep-rooted history. The fact that the workers who created this success are facing loss of rights and pressure today is contrary to the spirit of this deep-rooted history and is an unacceptable practice.

News Source: 12punto