Brussels. September 21 1998 (ICFTU OnLine): International and European trade unions said today that they were astounded at the action being taken by the European Union under WTO rules to force the US state of Massachusetts to do business with companies which trade with Burma, a country in which institutionalised forced labour amounts to a crime against humanity, and which was condemned in a report published last month by the UN’s International Labour Organisation (ILO).

The European Union has taken a case against the USA to a WTO disputes panel because Massachusetts is refusing to award public contracts to any companies which trade with Burma, because of the country's appalling human rights record. According to Massachusetts, the UK-based company Unilever, and the German-based company Siemens do business in Burma, so Massachusetts state is refusing to sign contracts with them. US multinationals such as the computer giant Apple have also faced action under the Massachusetts law.

"If the actions of (the US state) of Massachusetts which put the human rights of the Burmese people above the interests of a few multinational companies do not comply with WTO rules, then the WTO rules need changing, not the actions of Massachusetts", exclaimed Bill Jordan, ICFTU General Secretary.

In August this year, the ILO issued a 400-page report by a special Commission of Inquiry on the use of forced labour in Burma, which concluded that there was widespread and systematic use of forced labour on projects ranging from the carrying of equipment and ammunition for the military to the building of roads, railways, bridges and other infrastructure. It also concluded that the practice "often give(s) rise to extortion of money, … threats to the life and security and extrajudicial punishment of those unwilling to comply" and said forced labour was widely imposed on "women, children, elderly persons as well as persons otherwise unfit for work".

The publication of this recent report by a United Nations body coincided with crackdowns against Daw Aung San Suu Kyi and other democratic opponents of the military regime in Burma, drawing widespread condemnation from the international and European community. The trade union organisations said they were astounded that the EU has decided to bring this case. Just last week, the UK government called for EU countries to consider fresh measures to discourage trade and investment, and on September 11, the Austrian government, currently holding the Presidency of the EU, issued a statement condemning Burma.

"It is extraordinary that one arm of the EU can pass resolutions condemning Burma's human rights record, while at the same time, another EU arm is helping the Burmese generals’ commercial ties with big multinational companies" said the ICFTU and ETUC.

"The European Union will now risk appearing to be condoning the current repression of human rights in Burma in order to promote the interests of European multinational companies" say the ICFTU and ETUC.

"Rather than seek to prevent others from subjecting the Burmese regime to further economic pressure, the European Union should welcome these measures which support EU decisions under its own GSP rules to suspend trade privileges to Burma because of its human rights record", concluded Emilio Gabaglio, ETUC General Secretary.