Private initiatives and collective bargaining Friends or foes? Emily Sims, Senior Specialist, MULTI

The evidence so far…. Thousands of codes of conduct, guidelines and ethical principles have been adopted. « Reports » are increasing, and in some cases increasingly transparent. Monitoring and verification businesses are booming. The financial sector is becoming a major source of pressure for companies. But what is the impact for workers?

Impact of CSR on FofA, CB Of 25 sites studied, none showed an increase in union membership or the establishment of a collective bargaining agreement as a result of code implementation. However, at five worksites codes had made some contribution towards greater freedom of association and union activity. (ETI, 2006) Social audits are frequently conducted without consultation with workers and their representative organisations, excluding them from the process of improving their own working conditions. (Clean Clothes Campaign, 2005)

Examples from Romania In the electronics sector, Contract Electronics Manufactures (CEMs) « are in particular known for their hostile behavior against trade unions » even though the industry code (GeSI) promotes respect for FofA and CB. In the apparel sector many buyers have adopted a code of conduct, most promoting FofA and CB; but improvements resulting from the codes were mostly limited to OSH. Research commissioned by the Austrian Federal Chamber of Labour

Clearly useless? While private initiatives clearly have limitations, they can contribute to protecting workers’ rights, particularly in poorly organised supply chains where works have no other recourse. (Miller, 2008) Growing convergence around ILS (C87, C98) Increasing engagement with workers’ representatives (e.g., growing number of IFAs, multi-stakeholder initiatives)

How to make friends… ILO MNE Declaration To encourage the contribution which multinational enterprises can make to economic and social progress, and to minimize and resolve difficulties

MNE Declaration MNEs should observe standards not less favourable than comparable employers. Workers should have the right to organize and to affiliate with international workers’ organizations.

MNE Declaration, cont. MNEs should provide workers’ organizations with information required for meaningful negotiations. Collective agreements should include provision for dispute resolution. MNEs and national enterprises should devise systems of consultation. These should not replace collective bargaining.

MNE Declaration, cont. MNEs and national enterprises should provide measures for grievances to be taken up. Measures should be taken to establish voluntary conciliation and arbitration machinery.

Other leading instruments OECD Guidelines -Drafted with ILO input -NCPs Global Compact -FPRW -ITUC/IOE Labour Working Group ISO Drafted with ILO inputs -Will it be adopted? -Follow-up?

Increasing the odds…step 1 Getting the roles right Governments must assume their responsibility for protecting workers’ rights. Private initiatives are a complement, not a substitute, for regulation.

Role of MNEs Follow guidance provided in MNE Declaration Support representative employers’ organizations. Engage in national and local dialogue with government and workers’ and employers’ organizations on points of mutual concern

Government’s role Legislate and monitor compliance with law. Ensure that investment incentives do not limit the right to organize and bargain. Encourage the full development of machinery for voluntary negotiation with a view to the regulation of terms and conditions of employment by means of collective agreements. ILO promotes ratification and supports governments with labour administration

ILO guidanceILO technical assistance Increasing the odds…step 2 Helping companies

Friend or Foe? It all depends… ILO is working to increase the odds in the right direction Trade Unions also can help  Advocating use of the MNE Declaration  Promoting a mature industrial relations approach  Encourging companies to consult the Helpdesk and to participate in programmes like Better Work

Thank you!