Siemens and Unions Grapple with Company Strategy and Union Rivalry

Siemens has a complex relationship with its unions, with multiple unions vying for influence within the company.

The company's German workforce is represented by the IG Metall union, which has a significant presence at Siemens' plants in Germany. IG Metall has been a key player in Siemens' labor relations for decades.

In recent years, Siemens has faced criticism from some of its unions, including IG Metall, over its strategy to increase automation and reduce its workforce. The company has argued that these changes are necessary to remain competitive in a rapidly changing industry.

The rivalry between unions has also led to tensions between IG Metall and the company's other major union, the IG BCE.

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In 1960, employees at Siemens organized themselves under the Engineering and General Employees Union (EGEU), led by R.J.Mehta, President and J.H.Pinto, General Secretary, along with Narayan Shetye, Honorary Secretary.

The EGEU signed the first settlement with the company in December 1961 regarding working and service conditions, covering all workmen and service workmen, but not white-collar employees.

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Hundreds of workers at the Siemens Mobility plant in Sacramento filed a petition for a union election at an NLRB office in San Francisco, anticipating an election next month.

The workers, part of "Siemens Workers United", a partnership between the International Brotherhood of Boilermakers (IBB) Local 549 and the International Brotherhood of Electrical Workers (IBEW) Local 1245, are seeking better wages and working conditions.

The South Sacramento plant employs an estimated 1,600 workers, primarily manufacturing rail cars for public transit agencies, including in Sacramento and San Francisco.

A union election was also fought by 1,600 workers in a production unit, consisting of assemblers, equipment operators, painters, material handlers, maintenance technicians, and welders, who faced a brutal anti-union campaign.

The workers, led by Local 1245 and the International Brotherhood of Boilermakers Local 549 (IBB), had mounted an impressive, comprehensive campaign, but ultimately lost the election with 833 votes against and 538 in favor.

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Union activities at Siemens have a long history. Hundreds of employees at the Siemens Mobility plant in Sacramento filed a petition for a union election at the National Labor Relations Board office in San Francisco.

The workers, who are part of the International Brotherhood of Boilermakers (IBB) Local 549 and the International Brotherhood of Electrical Workers (IBEW) Local 1245, are seeking better wages and working conditions. They have reported working in unsafe conditions, including high heat and poorly ventilated workspaces.

In 1960, employees at Siemens organized themselves under the Engineering and General Employees Union (EGEU), which signed the first settlement with the company in 1961. This settlement improved working and service conditions for employees.

The workers at the Sacramento plant are not alone in their efforts. The California Federation of Labor Unions, AFL-CIO, represents over 2.3 million union members in California and strongly supports the Siemens workers' right to unionize.

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Here are some notable union activities at Siemens:

The IBEW hosted a policy meeting on May 7, bringing together senior Biden-Harris administration officials, Members of Congress, and union leaders to discuss increasing high-quality employment at Siemens plants.

Representatives Debbie Dingell and Donald Norcross, along with congressional staff from the Senate Health, Education, Labor and Pensions, and House Education and Workforce Committees, attended the meeting.

Brendan Danaher, Deputy Assistant to President Biden, delivered the keynote, followed by a panel moderated by Austin Keyser, assistant to the IBEW president.

The panel focused on the Biden-Harris Investing in America agenda, which aims to bring back U.S. manufacturing, rebuild the nation’s infrastructure, and transition to a lower-carbon economy.

Siemens, which employs over 900 IBEW members, is growing its footprint in the U.S. after receiving funding from the Biden-Harris infrastructure and energy agenda.

The company has already begun major expansions at IBEW-represented manufacturing plants in Pomona, CA and Grand Prairie, TX, bringing in hundreds of additional IBEW-represented employees.

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Siemens was also selected by Brightline West to build passenger cars for the new high-speed rail project linking Nevada and California, a project made possible by the Biden-Harris administration’s new infrastructure laws.

This project will create 35,000 construction jobs and 1,000 permanent positions when completed in 2028, and is projected to carry 8 million passengers a year between Las Vegas and Los Angeles.

The IBEW's presence in high-speed rail, clean transportation, renewable energy manufacturing, industrial decarbonization, and critical minerals mining makes it a natural fit for Siemens, according to Keyser.

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Union organizing is a crucial step in improving working conditions and advocating for workers' rights. Hundreds of employees at Siemens Mobility in Sacramento filed a petition for a union election, forming "Siemens Workers United" with the International Brotherhood of Boilermakers (IBB) Local 549 and the International Brotherhood of Electrical Workers (IBEW) Local 1245.

The workers are seeking better wages and working conditions, despite the company's record profits. Siemens Mobility collected over $3 billion in global revenue last year, while employees suffer under unsafe working conditions and struggle to support their families.

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In 1960, employees at Siemens organized themselves under the Engineering and General Employees Union (EGEU), led by R.J.Mehta, President and J.H.Pinto, General Secretary, along with Narayan Shetye, Honorary Secretary. This union signed the first settlement with the company in December 1961.

The company has a history of union rivalry, with the formation of the Association of Engineering Workers (AEW) in the 1970s. AEW demanded recognition, but the company refused, leading to a lock-out and a strike that was eventually broken by a handful of workers belonging to the rival SWU union.

Siemens has a significant presence in the US, with over 900 IBEW members employed in its manufacturing and technical service units. The company has expanded its operations in the US, including major expansions at IBEW-represented manufacturing plants in Pomona, CA and Grand Prairie, TX.

Here are some key facts about union organizing:

Siemens Workers Union (SWU) is the largest union in Siemens in India, having evolved from basic wage and working condition demands in the 1960s to fighting against de-unionization today.

The labour struggle in Siemens has gone through four distinct phases, with industrial relations being a crucial aspect of these changes. The Industrial Disputes Act (IDA) of 1947 is the single dominant legislation governing industrial relations in India, but it lacks provisions to identify representative unions and doesn't make management collaboration with unions mandatory.

Typically, unions in Siemens were led by external leaders who guided largely unskilled, first-generation blue-collar workers, with struggles revolving around basic wages and working conditions. The Indian Trade Union Act of 1926 allows seven workers to form and register a trade union, but it doesn't define a mechanism for recognizing unions.

Many clerical and administration staff joined the SEU, giving it an all-India status, prompting the union to change its name to All India Siemens Employees Union (AISEU). The lack of provisions in the IDA for collective bargaining means that unions and management don't have a formal framework for negotiating agreements.

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Siemens Workers United, a partnership between the International Brotherhood of Boilermakers (IBB) Local 549 and the International Brotherhood of Electrical Workers (IBEW) Local 1245, has filed a petition for a union election at the National Labor Relations Board (NLRB) office in San Francisco.

The union is seeking to organize workers at Siemens Mobility's South Sacramento plant, which employs an estimated 1,600 workers and manufactures rail cars for public transit agencies.

In 1960, employees at Siemens organized themselves under the Engineering and General Employees Union (EGEU), which signed the first settlement with the company in December 1961.

The EGEU union was led by R.J.Mehta, President, and J.H.Pinto, General Secretary, along with Narayan Shetye, Honorary Secretary.

Workers at Siemens have reported being paid dismally low wages and taking on second and third jobs to make ends meet, despite the company reporting record profits.

An investigation by Cal/OSHA was prompted by heat illness cases among workers, who reported working in unsafe working conditions, including high heat and poorly ventilated workspaces.

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In the late 1960s and early 1970s, a large number of trained workers from government Industrial Training Institutes (ITI) and apprentices trained from Siemens Training Centre were recruited, bringing in fresh skills and perspectives.

These trained workers were multi-skilled and their productivity was much higher than the existing workmen, which created tension between the two groups.

The existing workmen felt threatened by the new recruits, and altercations over jobs and promotions became a common occurrence.

The existing SWU leadership sided with the older workmen, failing to address the grievances of the young, trained workforce.

This decision not only hurt the morale of the new recruits but also posed a serious threat to the existing union leadership, as the young workers had a better understanding of the company and technology.

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Siemens and unions have had a complex history, particularly in the 1970s. The company's refusal to recognize the Association of Engineering Workers (AEW) union led to union rivalry and violence.

The AEW, led by Dr. Datta Samant, was formed in response to the company's actions. The union demanded recognition through a secret ballot, but the company refused.

The company's stance on the AEW union was clear: they would not negotiate or recognize the union even if 90% of workers were on strike. This led to a stalemate between the two factions of workers.

Violence erupted between the two factions, and the company declared a lock-out. The AEW responded with a strike, which was eventually broken after a month by a handful of workers belonging to the SWU union.

The company's actions were supported by the authorities, who took action against the striking workers. More than 100 workers were dismissed for taking part in the strike and indulging in violence.

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The company's strategy in dealing with unions is quite interesting. They adopted a de-unionisation strategy, designating all new recruits as "Executives" to prevent union formation.

This move was likely meant to create a sense of exclusivity and make workers feel like they were part of a special group. The company also made veiled threats, warning that unionising would harm their careers.

The management was very aggressive in pushing workers and the union on the defensive. They made it clear that unionising would not be tolerated.

On the business front, the company was equally aggressive. They became a group company of Siemens in 1995 and started expanding their operations. They set up a factory in Aurangabad in 1998.

The company started cutting costs by outsourcing parts and downsizing by removing machinery from switchgear and motor units. This was done continuously after 2000.

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The current situation with Siemens and unions is quite concerning. The company has denied the union permission to hold its bi-annual union elections within the company premises, a practice that was followed for the last 20 years.

Many of the rights and privileges enjoyed by the union's committee members have been curtailed over the last 10 years. The company has designated all workers in unorganised units as "Executives" and barred them from forming or joining any union.

These workers are subjected to de-regulated and unstructured service conditions, with long working hours, less holidays, and salaries at the whims of their superiors. They are also forced to perform menial tasks like moving material and equipment, shifting tables, and cleaning floors.

The Siemens Workers Union has taken steps to address these issues by forming an all-India federation, the Siemens Employees Federation, which has been supported by unions from Vadodara. However, the company has refused to recognise this federation.

The union has also affiliated with IG Metall, a union of metal workers in Germany, and the International Metal Workers Federation (IMF), in an effort to build pressure on Siemens to accept trade union rights for all employees.

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