International Instruments for Protection and Promotion of International Labour Standards in the Era of Globalization

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International Instruments for Protection and
Promotion of International Labour Standardsin
the Era of Globalization
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Challenges Today

• Mission for Trade Unions
• Achievement of social inclusion, based on fair,
  stable, sustainable and predictable development.
• Whats Needed?
• To reach as many workers (and their families) as
  possible and to secure/protect their rights and
  interests.
• How?
• By effectively utilizing all the means available
  for trade unions to protect and promote workers
  rights and interests.

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Main Assumptions

• The key target of trade union campaigns is
  Multinational Enterprises (MNEs)
• There are effective international instruments
  available for trade unions in their campaigns for
  workers rights and interests, but they are not
  fully used
• If trade unions use them more effectively
  intensively, they can bring about positive
  changes in the behaviours of MNEs.

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Summary of International Instruments
International
ILS
ILO F.P.R.W. Declaration
Framework Agreements
UN Global Compact
CFA
Reporting Initiatives
Corporate Social Responsibilities
OECD MNE Guidelines
ILO MNE Declaration
Code of Conducts
Regional/Bilateral Economic Agreement
Public
Private
National Labour Relation / Tripartite Committees
Political Campaigns/Lobbying
Labour Legislation
National
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ILO ConventionsSupervisory Mechanism

• For Ratified Conventions
• Article 22 Report - Review by CEACR/CCACR
• Article 24 Representation
• Article 26 Complaint
• For Non-Ratified Conventions
• Article 19(5-e) Report
• For violations of FOA rights
• Special procedure through Committee on Freedom of
  Association (CFA)

ILO F.P.R.W. Declaration
Annual Review Report on Non-ratified Core
Standards

General Survey
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ILO Tripartite Declaration on Principles
concerning MNEs (1)

• Adopted in 1977 by GB (amended in 2000) as a
  voluntary, promotional instrument to
• Regulate conduct of MNEs
• Define the terms of MNEs relations with host
  countries, esp. in labour-related and social
  issues
• Aims to
• Enhance the positive social and labour effects of
  the operations of MNEs

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ILO MNE Declaration (2)Follow-up Procedures

• An Interpretation procedure adopted by GB in
  1980 (revised in 86)
• provides for the submission of requests for
  interpretation in cases of dispute on the
  meaning/application of its provisions.
• Periodical Survey
• The effect given to the principles of the
  Declaration is monitored through a periodic
  survey (7th Survey conducted for 96-99)

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ILO MNE Declaration (3)Workers Participation
in Follow-up

• In the Survey, trade unions can (and should) send
  their comments to the Government or directly to
  the ILO concerning the behaviours of MNEs doing
  business in their countries
• In the 7th Survey, it was noted that trade unions
  did not actively participate.
• The main point is that if the ILO does not
  receive comments from workers, it has no choice
  but to BELIEVE the report by Govts.

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OECD Guidelines for MNEs (1)

• Adopted in 1976, with major review in 2000
• Guidelines is
• a multilaterally endorsed non-binding code of
  corporate conduct addressed to multinational
  enterprises (by the Governments)
• Voluntary principles and standards for
  responsible business conduct
• 38 countries (30 OECD members 8 non-members)
  are adhering to the Guidelines
• Major components NCP, CIME, and TUAC

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OECD Guidelines (2) 2000 Review

• Expanded Coverage
• All core standards, environment performance,
  human rights, corruption and consumer interests
• Global application, not just in OECD countries
• Strengthened National Contact Point (NCPs)
• are responsible for encouraging observance of the
  Guidelines
• handle enquiries, assist in solving problems, and
  report and meet annually on national experiences
• promote Guidelines for effective implementation
• New Actor NGOs

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OECD Guidelines (3) Areas Covered

1. Concepts and Principles
2. General Policies
3. Disclosure
4. Employment and Industrial Relations
5. Environment

1. Combating Bribery
2. Consumer Interests
3. Science and Technology
4. Competition
5. Taxation

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OECD Guidelines (4) Implementation

• Specific instances - a facility that allows
  interested parties to call a companys alleged
  non-observance of the Guidelines recommendations
  to the attention of an NCP
• Use of the Guidelines implementation processes
  by business, trade unions, NGOs and by
  governments has been increasing
• Promotional activities by NCPs
• Reflecting the Guidelines in domestic standards.
  (Australia)
• National corporate responsibility programme and
  report. (Finland)
• Comparison with national law. (New Zealand)
• Training of entry-level government economists.
  (Netherlands)
• National Funds use Guidelines as a benchmark.
  (Norway)
• Major international conference on the role of
  development cooperation agencies in corporate
  responsibility (Sweden)

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OECD Guidelines (5) NCP

• The structure of NCPs
• 21 NCPs are single government departments
• 6 NCPs are multiple government departments
• 9 NCPs are tripartite and
• 2 NCPs are quadripartite.
• Some 78 specific instances have been filed
• Austria (2), Belgium (1), Brazil (1), Canada (4),
  Chile (1), Czech Republic (5), Denmark (2),
  Finland (1), France (11), Germany (6), Japan (5),
  Korea (3), Mexico (1), Netherlands (11), Norway
  (1), Poland (2), Portugal (1), Spain (1), Sweden
  (2), Switzerland (2), Turkey (1), UK (3) and US
  (11).

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OECD Guidelines (6) Challenges

• Parallel legal proceedings
• Non adhering countries
• Closer link with UN Commission on Human Rights
• Business and human rights and
• Outsourcing and relocation.

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UN Global Compact (1)

• Initiative by Kofi Annan, launched in 2000
• Seeks to advance corporate citizenship so that
  business can be part of the solutions for a more
  sustainable and inclusive global economy
• Voluntary commitment by companies to support 10
  Principles in four areas
• Human Rights
• 1. Businesses should support and respect the
  protection of internationally proclaimed human
  rights.
• 2. Make sure they are not complicit in human
  rights abuses.

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UN Global Compact (2)

• - Labour
• 3. Businesses should uphold the freedom of
  association and the effective recognition of the
  right to collective bargaining
• 4. The elimination of all forms of forced and
  compulsory labour
• 5. The effective abolition of child labour
• 6. Eliminate discrimination in respect of
  employment occupation.
• - Environment
• 7. Business should support a precautionary
  approach to environmental challenges
• 8. Undertake initiatives to promote greater
  environmental responsibility
• 9. Encourage the development and diffusion of
  environmentally friendly technologies.
• - Anti-Corruption
• 10.The promotion and adoption of initiatives to
  counter all forms of corruption, including
  extortion and bribery.

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UN Global Compact (3)

• Not a regulatory instrument it is a voluntary
  corporate citizenship initiative
• A network-driven governments, companies, civil
  societies and the UN
• Facilitation engagement procedures
• Policy dialogues, Learning, Local structures and
  Projects
• 1890 companies signed up
• ICFTU, UNI, ICEM, TUAC, IMF

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Development ofPrivate Voluntary Initiatives (PVI)

• As response of global community to the growing
  power of MNEs
• Alternative Trade Organizations
• Social Labelling (SL)
• Codes of Conduct (COC)
• New Codes of Conduct (New COC)
• Framework Agreements (FA)
• Reporting Initiatives (GRI, SA8000, etc)
• Corporate Social Responsibilities (CSR)

1970s
1990s
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Code of Conduct(old code)

• Unilateral declaration, mainly for social appeal
  or marketing purpose
• Code of conduct for business
• consumer rights, product safety or environmental
  protection
• ethical behaviour codes for employees
• Code of conduct for international business
• ILO MNE Declaration
• OECD Guidelines for MNEs
• attempt by UN to set a global code

NoteThese are not PVIs!
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New Code of Conduct

• Four Major Characteristics
• Purely private, voluntary initiative (PVI)
• Response to the situation of poor labour
  standards created by the failure of national
  governments and of international community
• International application
• Cross-cutting application to suppliers and
  subcontractors

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Definition of New Code of Conduct

• Commitments voluntarily made by companies,
  associations or other entities which put forth
  standards and principles for the conduct of
  business activities in the marketplace
• (Workers tool or PR ploy? by Dr. I. Wick)

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Number of New Codes

• 246 codes (June 2000 by OECD study)
• 118 by individual companies, 92 by industry and
  trade associations, 32 by partnerships between
  stakeholders and 4 by inter-governmental
  organizations
• Only 163 mention monitoring
• Only 30 mention freedom of association, and
  only10.1 refer to ILO codes

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Why New Codes are important for Trade Unions?

• New Codes are on labour practice

Great potential and also danger
Most companies adopt COC without involving trade
unions
So, they can be used as an excuse for having no
union
Truly applied, codes may establish ILSs as
binding international framework for responsible
corporate behaviour
So, unions involvement is vital
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Framework Agreements

• An agreement negotiated between an MNE and an
  international trade union organization (such as
  an ITS) concerning the international activities
  (or behaviour)of the company

Main purpose of framework agreements is to
establish an ongoing relationship between the MNE
and the ITS to frame principles of industrial
relations and good labour practices
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Major Framework Agreements

• IUF- Danone, Accor, Nestle, Del Monte, Chiquita,
  etc.
• IFBWW- Ikea, Faber-Castell, Hochtief, Skanska,
  etc.
• ICEM- Statoil, Freudenberg, Endesa, Eni, Lukoil,
  etc.
• UNI- Telefonica, OTE, Carrefour, HM, and ISS
• IMF- Volkswagen, Daimler Chrysler, Bosch,
  Renault, etc.

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Points for Analyses of F.A./COC

• Substance (reference to core labor standards)
• Negotiations with, and participation of, trade
  unions (and other social actors)
• Coverage of responsibility (production chains)
• Independent verification (monitoring/follow-up)
• Complaint and appeals (dispute settlement)
• Incentives (or sanctions)

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Policy and Strategy for T.U.

• Set up institutional mechanisms and capacities to
  fully utilize all the available international
  instruments
• Regular reporting
• Complaints procedures in case of violation
• Multilateral approaches to problem-solving
• Importance of International, Regional, and
  Sub-regional trade union network

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Reporting Initiatives

• Global Reporting Initiatives (GRI)
• SA8000 (by SAI)
• Ethical Trade Initiatives (ETI)
• Clean Cloth Campaigns (CCC)
• Worker Empowerment Consortium (WEC)

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Exercise Case Study

• Consider the following case and see what they
  (or trade unions) can do?
• In a newly set-up EPZ in a beautiful island
  country, called DREAMLAND, a Japanese electronic
  company ISHIBASHI has been continuously harassing
  leaders of employees who are trying to form a
  trade union at their factory.

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The End

• ACTRAV-Turin