International Standards for MNC Unionists

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International Standards for MNC Unionists

• ICEM/FNV/LO-TCO
• Asia MNCs Social Dialogue
• Yoon Hyowon ICEM project coordinator

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What is social dialogue?

• What is the meaning of dialogue?
• Conversation is informal, personal, individual
  talks.
• Dialogue is formal/official, organizational/instit
  utional, collective talks.
• We need to have topics or agenda for dialogue,
  while we do not need to have topics or agenda for
  conversation.
• To have topics or agenda means to produce results
  or effects in or after talks.
• This means dialogue results in some results or
  effects.

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What is social dialogue?

• There is the terminology of social dialogue,
  while there is no that of social conversation.
• ILO says social dialogue is all forms of
  negotiation and consultation concerning the
  issues of common interests including information
  sharing among workers, employers, and
  governments.
• Social dialogue is formal, institutional, and
  collective talks among workers, employers, and
  governments to deal with information sharing,
  collective bargaining, and policy making.

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What is social dialogue?

• The results or effects of social dialogue
• Collective agreements
• Workers participation in management (information
  sharing and consultation)
• Workers and employers participation in
  government policy
• Cooperative/peaceful labor relations economy by
  making strong and active union.

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International standards as agenda for social
dialogue

• In order to develop social dialogue with company
  and government, we need to have agenda and
  topics.
• What must be the agenda and topics for social
  dialogue in labor relations?
• International standards can be the agenda and
  topics for social dialogue.

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International Standards for MNCs

• ILO Core Labour Standards
• OECD Guidelines for MNCs
• UN Global Compact
• Global Agreement with MNCs

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ILO Core Labor Standards
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What is ILO

• International Labor Organization
• UN agency specialized in labor issues
• Established in 1919 after World War One
• Tripartite structure of equal social partners
• Governments, Employers, Workers
• 183 member countries
• ILO International Conference is held every June,

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What is ILO

• Main role to formulate international standards
  in the form of Conventions Recommendations
  setting basic labor rights
• Conventions legally binding international
  treaties ratified by member countries
• Recommendations non-binding guidelines
• 188 Conventions and 199 Recommendations.

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ILO Conventions

• ILO Conventions and Recommendations are
  international labor laws or international labor
  standards
• ILO Conventions are divided into 24 areas the
  freedom of association, collective bargaining,
  forced labor, child labor, equality of
  opportunity and treatment, tripartite
  consultation, labor administration, labor
  inspection, employment policy, promotion of
  employment, job training, job security, social
  welfare, wage, working hours, heath safety at
  work, etc.

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Ratifications by Countries (as of 2009 April)

• India 43 (4)
• Indonesia 18 (8)
• Malaysia 14 (5)
• Thailand 14 (5)
• Vietnam 17 (5)
• Korea 24 (4)

• Brazil 80 (7), China 22 (4)
• France 102 (8)
• Germany 72 (8)
• Japan 41 (6)
• Netherlands 82 (8)
• Saudi Arabia No Data (5)
• Singapore 20 (5)
• South Africa 20 (8)
• Sweden 77 (8), UK 68 (8)
• USA 14 (2)
• Myanmar 19 (2), Somalia 12 (3)
• Afghanistan 15 (3)
• Iraq 61 (7) only 2 after 2001.3

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ILO Core Labor Standards

• Most basic and important conventions
• Universal standards to be recognized and accepted
  internationally
• Ratification by country is not important
• Applicable to every country and every companies
• 4 areas and 8 Conventions

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ILO Fundamental Conventions

1. Freedom of Association and Protection of the
   Right to Organize Convention, 1948 (No. 87)
2. Right to Organize and Collective Bargaining
   Convention, 1949 (No. 98)
3. Forced Labor Convention, 1930 (No. 29)
4. Abolition of Forced Labor Convention, 1957 (No.
   105)
5. Minimum Age Convention, 1973 (No. 138)
6. Worst Forms of Child Labor Convention, 1999 (No.
   182)
7. Equal Pay Convention, 1951 (No. 100)
8. Discrimination (Employment and Occupation)
   Convention, 1958 (No. 111)

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ILO Core Labor Standards

• 4 areas
• freedom of association right to collective
  bargaining (C87, C98)
• No forced labor(C29, C105)
• No child labor(C138, 182)
• No discrimination (C100, C111)

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Freedom of Association

• Workers have the freedom and right to organize
  their own organizations or join trade unions to
  represent their interests and defend their
  rights.
• Employers or government can not interfere with
  union organizing or union activities.

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Freedom of Association

• Workers have the freedom and right to Umbrella
  workers organization like regional/national
  unions and industrial/national federation can
  directly engage in supporting workers and
  organizing unions.

17
The Right to Collective Bargaining

• Collective bargaining is a negotiation between
  management and union to jointly decide wage,
  working conditions, social or economical
  environment which influence the livelihood of
  workers or their families.

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The Right to Collective Bargaining

• The final result of collective bargaining is to
  make a collective agreement (CBA).
• The CBA can be made at local, regional,
  industrial and national levels.

19
No Child Labor

• Minor work should not be allowed to those under
  13-years old.
• Normal work should not be allowed to those under
  15-years old.
• Dangerous work should not be allowed to those
  under 18-years old.

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No Child Labor

• Vietnam News (4 June, 2009)
• Over 26,000 under-age children are working
  illegally and many are being exposed to harmful
  substances, according to reports to the Ministry
  of Labour, Invalids and Social Affairs by 63
  provinces and cities.
• Ngo Ngoc Hai (12) from Phu Tho Province, has been
  working at a food shop in Ha Noi for six months.
  He has to work from 4pm to midnight everyday and
  gets paid VND500,000 (US27) a month. "My family
  is poor, and because my parents do not have
  enough for me to go to school, I go to work," Hai
  said.
• A survey in HCM City in 2008 discovered that 758
  children were working illegally in ceramic
  workshops or selling lottery tickets, food or
  polishing shoes. There are about 4.4 million poor
  children under 17 in Viet Nam.

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Forced Labor

• Doing work by threat and enforcement, without my
  agreement or approval
• Overtime without dialogue with workers or unions

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No Discrimination

• Equal pay for equal work, equal treatment for
  equal work
• Discrimination between men and women
• Discrimination between regular and non-regular
  workers
• What kind of discrimination do we experience in
  our workplace?

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Ratification by Country
Country Conv. 87 Conv. 98 Conv. 29 Conv. 105 Conv. 138 Conv. 182 Conv. 100 Conv. 111
India No No 1954 2000 No No 1958 1960
Indonesia 1998 1957 1950 1999 1958 1999 1999 2000
Malaysia No 1961 1957 No 1997 No 1997 2000
Thailand No No 1969 1969 2004 2001 1999 No
Vietnam No No 2007 No 2003 2000 1997 1997
Korea No No No No 1999 2001 1997 1998
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OECD Guidelines for Multinational Enterprises
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What is OECD

• Organization for Economic Cooperation
  Development
• International organization for Rich Countries
  led by USA and Europe
• Established in 1948
• 31 member countries
• Europe 23 countries (Austria, Belgium, Czech,
  Denmark, Finland, France, Germany, Greece,
  Hungary, Iceland, Ireland, Italy, Luxembourg,
  Netherlands, Norway, Poland, Portugal, Slovakia,
  Spain, Sweden, Switzerland, Turkey, UK)
• Asia Pacific Japan, Korea, Australia, New
  Zealand
• America USA, Canada, Mexico, Chile

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OECD Guidelines for MNCs

• International standard for good corporate
  conduct
• Created in 1976 and new version revised in June
  2000
• Applicable to OECD member countries and 6
  non-member countries (Brazil, Egypt, Israel,
  Latvia, Romania, Slovenia)
• The purpose of MNC is Not only to reap profit,
  but to improve social conditions around world
• Not legally binding, but voluntary guidelines
• Government engagement with National Contact Point
  (NCP)
• Encourage suppliers and subcontractors to apply
  the Guidelines

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OECD Guidelines for MNCs

• Concept of multinational companies
• Companies operating in more than 1 country
• Ten chapters
• 1. Concept and principles, 2. General Policies,
  3. Information Disclosure, 4. Employment and
  Industrial Relations, 5. Environment, 6.
  Combating Bribery, 7. Consumer Interests, 8.
  Science Technology, 9. Competition, 10. Taxation

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OECD Guidelines for MNCs

• Chapter 3. Information Disclosure
• MNC activities, structure, financial situation
  and performance, main affiliates, its percentage
  ownership, direct and indirect in these
  affiliates, shareholding
• MNC should disclose material information on
• The financial and operating results of the
  company
• Member of the board and key managers, and their
  pay
• Information on employees and other stakeholders
• Governance structure and policies

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2007/2008 BASF key managers salary
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Lafarge 2009 Annual Report
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Bayer 2008 Report
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Bayer 2008/2007 CEO Pay
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Bayer CEOs Promise for Financial Transparency
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Holcim CEO Salary, 2008
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Holcim Personnel costs 2007
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OECD Guidelines for MNCs

• Chapter 4. Employment Industrial Relations
• The right to join trade union and engage in
  collective negotiation
• The abolition of child labor
• The elimination of forced labor
• No discrimination against workers at work on such
  grounds on race, sex, religion, political
  opinion, nationality and social origin

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OECD Guidelines for MNCs

• Employment Industrial Relations
• Provide facilities to workers representatives for
  collective bargaining
• Provide appropriate information for constructive
  negotiation
• Observe national labor standards in host country
• Promote health safety at work
• Provide proper job training
• Provide reasonable notice and meaningful
  cooperation in case of collective dismissal
• Do not threaten to transfer the whole or part of
  plant to other country in the excuse of
  collective bargaining and collective action
• Allow workers representatives to consult with
  management representatives who are authorized to
  take decisions

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OECD Guidelines for MNCs

• Participating countries in the Guidelines should
  set up a National Contact Point (NCP).
• NCP is usually established in government
  departments dealing with trade, investment and
  labor.
• For example, Korean NCP belongs to the Ministry
  of Commerce, Industry Energy.
• In the case of violating the Guidelines, anybody
  can raise the issue to a relevant NCP.
• NCP should report the case to OECD.

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UN Global Compact
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UN Global Compact

• Proposed by United Nations (UN) Secretary General
  Kofi Annan in World Economic Forum in 1999
• International initiative or campaign for
  Corporate Social Responsibility (CSR) driven by
  UN
• Not legally binding, but voluntary promise
• 6000 MNCs join the Global Compact
• 4 areas and 10 principles

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UN Global Compact

• Human Rights
• MNC support human rights
• MNC do not abuse human right
• Labor Standards
• MNC respect the freedom of association and the
  right to collective bargaining
• Elimination of forced labor
• Abolition of child labor
• Elimination of discrimination at work
• Environment
• MNC support precautionary approach to environment
• Promote greater environmental responsibility
• Develop environmentally friendly technology
• Anti-Corruption
• MNC should work against all forms of corruption

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Freedom of Association Collective Bargaining

• Ensure that all workers are able to form and join
  a trade union of their choice without fear of
  intimidation or reprisal, in accordance with
  national law.
• Put in place non-discriminatory policies and
  procedures with respect to trade union
  organization, union membership and activity in
  such areas as applications for employment and
  decisions on advancement, dismissal or transfer.
• Do not interfere with the activities of worker
  representatives while they carry out their
  functions in ways that are not disruptive to
  regular company operations. 
• Allow the collection of union dues on company
  premises, posting of trade union notices,
  distribution of union documents, and provision of
  office space.
• Provide workers representatives with appropriate
  facilities to assist in the development of
  effective collective agreement.

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Freedom of Association Collective Bargaining

• Recognize trade union for the purpose of
  collective bargaining.
• Use collective bargaining as a constructive forum
  for addressing working conditions and terms of
  employment and relations between employers and
  workers.
• Address any problem-solving or other needs of
  interest to workers and management, including
  restructuring and training, redundancy
  procedures, safety and health issues, grievance
  and dispute settlement procedures, disciplinary
  rules, and family and community welfare.
• Provide information needed for meaningful
  bargaining.
• Balance dealings with the most representative
  trade union to ensure the viability of smaller
  organizations to continue to represent their
  members
• Inform the local community, media and public
  authorities of your company's endorsement of the
  UN Global Compact and its intention to respect
  its provisions, including those on fundamental
  workers' rights.

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No Force Labour

• Situations of forced labour are generally
  characterized by a lack of consent to work.
• Exploitative practices such as forced overtime
• Physical or psychological (including sexual)
  violence as a means of keeping someone in forced
  labour (as a threat against worker, family, or
  close associates)
• Deception or false promises about terms and types
  of work
• Slavery, Bonded labour or debt bondage, Physical
  abduction or kidnapping, Sale of a person into
  the ownership of another, Physical confinement in
  the work location (in prison or in private
  detention), The work or service of prisoners,
  Work required to punish opinion or expression of
  views ideologically opposed to the established
  political, social or economic system, The lodging
  of deposits (financial or personal documents) for
  employment, Full or partial restrictions on
  freedom of movement, Withholding and non-payment
  of wages (linked to manipulated debt payments,
  exploitation, and other forms of extortion),
  Deprivation of food, shelter or other necessities
  

45
No Child Labour

• the term "child" covers all girls and boys under
  18 years of age.
• Developed countries
• Light Work 13 Years
• Regular Work 15 Years
• Hazardous Work 18
• Developing countries
• Light Work 12 Years
• Regular Work 14 Years
• Years Hazardous Work 18 Years
• Exercise influence on subcontractors, suppliers
  and other business affiliates to combat child
  labour.

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No Discrimination

• Equal treatment for equal work
• Equal treatment in terms of Recruitment,
  Remuneration, Hours of work and rest/ Paid
  holidays, Maternity protection, Security of
  tenure, Job assignments, Performance assessment
  and advancement, Training and opportunities, Job
  prospects, Social security, Occupational safety
  and health

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www.holcim.com
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International Framework Agreement (Global
Agreement)
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International Framework Agreement

• IFA is an agreement negotiated between MNC and
  Global Union Federation like ICEM concerning the
  international activities of the MNC.
• MNC unilaterally made the Code of Conduct by
  itself without any involvement of trade union.
• IFA is a tool for trade union to engage in
  setting minimum standards with MNC.
• The first IFA was made between IUF and Danone
• ICEM has made Global Agreements (IFA) with 13
  MNCs.

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International Framework Agreement

• ICEMs Global Agreements (IFA) with
• Umicore in 2008
• Lafarge in 2005
• Rhodia in 2004
• SCA in 2004
• EDF in 2004
• Lukoil in 2004
• Eni in 2002
• AngloGold in 2002
• Norske Skog in 2002
• Endesa in 2002
• Freudenberg in 2000
• Statoil in 1998

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Global Agreement with Lafarge in 2005

• Abolition of forced labor
• No discrimination at workplace
• Elimination of child labor
• Right to organizing trade union and collective
  bargaining
• Guarantee living wage
• Improve health, safety and working conditions
• Provide Job training

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Global Agreement with Freudenberg in 2000

• No forced labor and child labor
• Equal opportunities and equal treatment on the
  job
• Freedom of association and the respect for basic
  trade union rights
• Right to organizing trade union and collective
  bargaining
• No discrimination against trade union
  representatives
• Health safety at workplace
• Flexible, efficient and customer-oriented forms
  of work organization

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Global Agreement with Norske Skog in 2000

• Freedom of association collective bargaining
• No discrimination and equal opportunity
• Health and safety at workplace
• No forced labor
• No child labor
• Wages benefits covering basic needs of the
  workers and their family
• Employment status for workers based on permanent
  job
• Irregular workers like temporary/part-time
  workers must receive the same terms conditions
  with comparable regular workers.

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International Standards for MNCs

• ILO Core Labour Standards
• OECD Guidelines for MNCs
• UN Global Compact
• Global Agreement with MNCs

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Common Points of International Standards

1. Workers rights to organize and CBA
2. No child labor, No forced labor
3. No discrimination
4. Guarantee of union activity
5. Facilities for collective bargaining union
   activity
6. Decent wage
7. Good working conditions and work hours
8. Health safety
9. Information sharing
10. Consultation right
11. Job training / skill development

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Implication of international standards for Social
Dialogue in MNCs

• MNCs promise to respect international standards.
  
• MNCs has interests in their good image.
• International organizations (ILO, OECD, UN) and
  governments are directly involved in these
  standards.
• International standards say about workers rights,
  union activity, constructive collective
  bargaining, good working conditions, health
  safety, information sharing, consultation, job
  training, etc.
• Considering the above-mentioned points,
  international standards can be good agenda or
  topics for social dialogue in MNCs.

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International standards for collective bargaining

• Collective bargaining is an important part of
  social dialogue.
• Read and study international standards on the
  basis of the standards, discuss, debate and
  create your demands
• Compare international standards with your
  Collective Agreement (CA) strong points and weak
  points.
• Insert good points of international standards
  into your CA.
• ICEM can support your activities to promote
  social dialogue in your workplaces international
  solidarity, union networking at global level.

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International standards for collective bargaining

• Set up joint preparatory team for collective
  bargaining
• To compare quality and scope among the existing
  CBAs strong points weak points.
• To compare the existing CBAs with international
  standards strong points weak points.
• To develop common agenda for CBAs.
• To make CBA Guidance which can be applied to
  every company

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Domains of Labor Relations
Job Training Discrimination Equal
opportunities Contractors Health
safety Contract agency workrers Management of
Change Restructuring Privatization Economic policy
Human Rights
Wages Working time
CSR
Equitable Trade
Company/workplace
Industrial
National
International
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Yoon Hyowonmobile (82) 10 2083
4715icem.asia.mnc_at_gmail.comfax (82) 2 6008
7682icemmncsocialdialogue.blogspot.com