1 Fichter, Helfen & Sydow: IFAs in Global Production Networks ACTRAV Symposium on Collective Bargaining International Labour Organization Geneva, 12 – 15 October 2009 Session International Framework Agreements - Challenges and Opportunities International Framework Agreements: Opening the Way to Collective Bargaining? Dr. Michael Fichter, Freie Universitaet Berlin Acknowledgements:Supporting Grant Hans-Boeckler-Foundation, Germany Research Cooperation Global Labour University

2 Fichter, Helfen & Sydow: IFAs in Global Production Networks Research Project "Organization and Regulation of Employment Relations in Transnational Supply and Production Networks: Ensuring Core Labor Standards through International Framework Agreements? Michael Fichter, Markus Helfen & Jörg Sydow Institute of Political Science & Institute of Management, Freie Universitaet Berlin, Germany Oct – March 2011 Grant: Hans-Boeckler-Foundation, Germany Research in Cooperation with the Global Labour University

3 Fichter, Helfen & Sydow: IFAs in Global Production Networks Main Argument: IFAs: currently not a new level of collective bargaining on wages and working conditions. IFAs: create arena of standards, regulations and social dialogue opening space for collective bargaining within national systems of labour relations

4 Fichter, Helfen & Sydow: IFAs in Global Production Networks … based on contract relationships between transnational corporations (TNCs) und global union federations (GUFs) which afford a mutual recognition of both sides, provide for mechanisms of conflict resolution and agree recognition of ILO core labour standards (union rights and collective bargaining, no forced or child labour, no discrimination), additional ILO conventions (employee representative, working time, wages, health & safety) in a defined space or arena. As such, IFAs are an instrument of regulating international labour relations positioned between unilateral self-restrictions of TNCs and international law (ILO). Definition: International Framework Agreements (IFAs) are… Total number of IFAs (1994 to 2008, n=72) But: there is only a relatively small number of IFAs (72+), compared to 870 EWCs for example (ETUI 2008) !

5 Fichter, Helfen & Sydow: IFAs in Global Production Networks IFAs by region of TNC's origin (n = 77)

6 Fichter, Helfen & Sydow: IFAs in Global Production Networks IFAs by Global Union Federation (n = 77)

7 Fichter, Helfen & Sydow: IFAs in Global Production Networks IFAs: Creation of an Arena of Standards, Regulation and Social Dialogue Actors: HQ. and local TNC management, GUF (+ home country union, employee reps) Issues and Content Procedures for negotiation, monitoring and dispute resolution Reach or Boundary of Regulation. TNC operations, suppliers, contractors The IFA Arena

8 Fichter, Helfen & Sydow: IFAs in Global Production Networks Global Production Networks: Imbalanced structure in labor relations Headquarter Subsidiary NegotiationOrganized Labor EWC, WWC GWC Top management Division management Local management TNC units GUF National unions Local unions TNC/production network boundary Main interaction WC, shop stewards Actors involved in IFA negotiation (red) Supplier level

9 Fichter, Helfen & Sydow: IFAs in Global Production Networks International Framework Agreements IFAs and Collective Bargaining: ++ Transfer of Practice: Hq. to Subsidiaries (Suppliers) ++ Involvement of an external Actor: Trade Unions Dilemma: IFAs as top-down approach vs. organizational barriers to diffusion

10 Fichter, Helfen & Sydow: IFAs in Global Production Networks Actor constellation on employees‘ side IFAs by actor constellation on labour‘s side (n=72) Actor constellation on labour‘s side is marked by diversity: a) GUFs alone: ca. 28%, b) In ca. 72 percent of all cases national unions and/or employee representatives (EWC) are additionally involved. Question: successful cooperation or vertical and horizontal divergence of interests?

11 Fichter, Helfen & Sydow: IFAs in Global Production Networks IFAs: Recognition of ILO Conventions

12 Fichter, Helfen & Sydow: IFAs in Global Production Networks IFAs: Recognition of C98 C98 Right to Organise and Collective Bargaining Convention, 1949 protection for workers against acts of anti-union discrimination adequate protection against any acts of interference (for workers' and employers' organisations) appropriate to national conditions encourage and promote the full development and utilisation of machinery for voluntary negotiation. Regulation of employment relation via collective agreement

13 Fichter, Helfen & Sydow: IFAs in Global Production Networks IFAs: Recognition of C98 IFAs without specific provisions and no specific reference to C98: Volkswagen (IMF) Daimler (IMF) Securitas (UNI) Danske Bank (UNI) "The social rights and principles described in this declaration take the Conventions of the International Labour Organisation concerned into consideration." "The following principles, that are orientated at the conventions of the International Labor Organization, …" "Securitas respects the rights of all employees … to bargain collectively in accordance with local laws and principles." [mutual trust] "entails entering relevant collective bargaining processes and seeking agreements through genuine and constructive negotiations"

14 Fichter, Helfen & Sydow: IFAs in Global Production Networks IFAs with specific provisions: Rhodia (ICEM)Specific reference to C98. And: "respects the right of employees to be collectively organized and shall remain strictly neutral concerning their choices in this matter" ISS (UNI)Specific reference to C98. And: "Where no trade union exists, ISS shall adopt a positive and open view and shall not prevent workers from organising. It will respect the right of trade unions to organise employees" G4S (UNI)Specific reference to C98. And: 6. Union Rights a) Freedom of association (3 paragraphs) b) Union access (6 paragraphs) c) Union recognition (3 paragraphs) IFAs: Recognition of C98 - and beyond

15 Fichter, Helfen & Sydow: IFAs in Global Production Networks G4S: Reaching and Using Agreement 2003:UNI launches global campaign US union SEIU attacks G4S (Wackenhut) on working conditions, 2008: pay, sexual harassment, poor training, security lapses and retaliations against employees who reported problems. Wackenhut loses contract bids, faces public investigations 2008: G4S signs IFA (Dec.) 2009: Ghana G4S Workers' first Agreement: UNI Global Agreement a key factorGhana G4S Workers' first Agreement

16 Fichter, Helfen & Sydow: IFAs in Global Production Networks Myles (G4S HR Director): “We’re not in Kansas anymore” new momentum of the global union movement spectre of global recession "where common ground outweighs differences and agreement is reached, this new layer of dialogue between the multinational HQ and union federation has the potential to remodel local management-union relationships as entity- wide labour relations policies and processes are updated. Naturally, whether these changes emerge will depend on how the IFA is implemented by both company and union." IFA: A new dimension?

17 Fichter, Helfen & Sydow: IFAs in Global Production Networks Dannon (Danone USA) Case 1988:Danone signs first IFA 2007:Bakery, Confectionery, Tobacco Workers and Grain Millers International (Jan)Union (BCTGM) asked to represent Dannon employees at Ohio plant 2007:BCTGM contacts IUF. IUF launches global information campaign. US management starts anti-union campaign. IUF pressure on Danone management in Paris. Letter from EWC. 2007:US management refuses to accept card-check, BCTGM applies for NLRB recognition election. 2007:BCTGM wins NLRB election. International support crucial (Dec.) 2008:BCTGM members ratify collective agreement (Oct.) 2009:BCTGM organizes another Dannon plant (Utah) and signs contract

18 Fichter, Helfen & Sydow: IFAs in Global Production Networks Insights from Cases Insights: IFAs and Collective Bargaining Internationalization of strategy and policy Medium- and Long-Range Strategic Planning Incorporation of IFAs into daily union operations Training and Knowledge-building around IFAs Union Networks Claiming Ownership