TRIPARTITE DECLARATION OF PRINCIPLES CONCERNING MULTINATIONAL ENTERPRISES AND SOCIAL POLICY ACTRAV OCTOBER 2013 The ILO MNEs Declaration ACTRAV

State of Play Renewed Urgency: Crisis (moral, financial, food, youth unemployment) has widened gaps Globalized production systems, diverse players in the value chain Multi-polar world: US - EU - BRICS – G8 – G20 MNEs in spotlight to reduce inequities - sought as development partners Labour issues in trade & investment agreements and public procurement policies Evolution of an issues-driven agenda 21 st Century communications: Social media/social dialogue

State of Play (2) Major new instruments/updates  OECD, ISO 26000, UN Guiding Principles “Protect, Respect and Remedy”, IFC Performance Standards on Social & Environmental Sustainability, EU Communication on CSR Business Schools: Business ethics, responsible management education More Reporting and Certification Schemes Lack of consensus/data on effectiveness  Continued search for business case CSR Industry Growth

Multiple Players in CSR UN agencies UN Global Compact and local networks Human rights groups – Amnesty International, Human Rights Watch, Development Banks Private foundations Media - Ethical Corporation, CSR newsletters, websites Governments Consultants OECD Standards and reporting – ISO, GRI,SAI SRI Fair/ethical trade organisations G8, G20 Business schools, academia ILO...

1. ILO. Conventions. Recommendations. Supervisory System. Declarations: Particularly the GB Tripartite Declaration on Principles concerning MNEs and Social Policy; the ILC Declarations on Fundamental Principles and Rights at Work and the Declaration on Social Justice and a Fair Globalization. 2. UN. Human Rights Treaties. Many HR treaties recognises labour rights and standards. Treaty and Special Procedures Mechanisms. Many HR Treaties have their compliance mechanisms and within the UN there are plenty of special mechanisms such as the country reports, the Special rapporteurs, Independent experts, etc… INSTRUMENTS TO PROMOTE LABOR STANDARDS with MEMBER STATES. -Hierarchy of Standards. (ILO, UN, Regional Systems and Domestic Law)

ILO CONVENTIONS  International labor standards are legal instruments drawn up by the ILO's constituents (governments, employers and workers) and setting out basic principles and rights at work. They are conventions, which are legally binding international treaties that may be ratified by member states. The ILO's Conference has identified eight conventions as "fundamental", covering subjects that are considered as fundamental principles and rights at work. Fundamental conventions are: 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 Labour Convention, 1930 (No. 29) 4. Abolition of Forced Labour Convention, 1957 (No. 105) 5. Minimum Age Convention, 1973 (No. 138) 6. Worst Forms of Child Labour Convention, 1999 (No. 182) 7. Equal Remuneration Convention, 1951 (No. 100) 8. Discrimination (Employment and Occupation) Convention, 1958 (No. 111)

INSTRUMENTS TO PROMOTE LABOR STANDARDS with MEMBER STATES. The ILO's Conference has also designated another four conventions as “governance" instruments, thereby encouraging member states to ratify them because of their importance for the functioning of the international labor standards system. The Governance Conventions are: Labour Inspection Convention, 1947 (No. 81) Employment Policy Convention, 1964 (No. 122) Labour Inspection (Agriculture) Convention, 1969 (No. 129) Tripartite Consultation (International Labour Standards) Convention, 1976 (No. 144) Currently there are 189 Conventions.

INSTRUMENTS TO PROMOTE LABOR STANDARDS within MEMBER STATES  Recommendations. They are also international labour standards legal instruments drawn up by the ILO's constituents (governments, employers and workers) which serve as non-binding guidelines. In many cases, a convention lays down the basic principles to be implemented by ratifying countries, while a related recommendation supplements the convention by providing more detailed guidelines on how it could be applied. Recommendations can also be autonomous, i.e. not linked to any convention. Currently there are 202 Recommendations.

INSTRUMENTS TO PROMOTE LABOR STANDARDS with MEMBER STATES.  Supervisory System. International labor standards are backed by a supervisory system that is unique at the international level and that helps to ensure that countries implement the conventions they ratify. The ILO regularly examines the application of standards in member states and points out areas where they could be better applied. If there are any problems in the application of standards, the ILO seeks to assist countries through social dialogue and technical assistance. Regular system of supervision The Committee of Experts on the Application of Conventions and Recommendations The International Labour Conference’s Tripartite Committee on the Application of Conventions and Recommendations, the CAS 1. Special Procedures. 2. Procedure for representations on the application of ratified Conventions. 3. Procedure for complaints over the application of ratified Conventions. 4. Special procedure for complaints regarding freedom of association (Freedom of Association Committee).

 Declaration: The tripartite Declaration on Principles concerning MNEs and Social Policy. The ILO’s key tool for promoting labor standards and principles in the corporate world is the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy (“MNE Declaration”). This global declaration, adopted in 1977 and last revised in 2006, is aimed at inspiring effective, socially responsible labor relations policies and practices in the world of work. The MNE Declaration: Is the only international instrument on socially responsible business practices that has been agreed to by governments and representatives of workers’ and employers’ organizations. Sets core labor principles and promotes effective practices for both multinational and domestic enterprises in the areas of employment, skills training, conditions of work and life, and industrial relations. Recognises the responsibility of governments in promoting good social practices.

MNE Declaration Added Value  Universal reference point for social responsibility agreed by governments, business and labour  International tripartite agreement on roles and responsibilities of business, governments and unions  applies equally across countries of operation

MNE Declaration offers workers  Framework for:  fundamental rights at work  skills training for employability  good working conditions  sound industrial relations

MNE Declaration Issues  Background and aim  General policies  Employment  promotion, equality, security  Training  Conditions of work and life  wages and benefits, child labour, safety and health  Industrial relations  freedom of association and right to collective bargaining

MNE Declaration National, regional and sectoral initiatives  building national, regional and sectoral partnerships  stimulating consultations and coordinated action among government, business and labour  influencing government action: FDI and employment policies  helping collective bargaining agreements  providing input at regional levels

MNE Declaration  Checking company policies and programmes on a day-to- day basis  offering benchmarks for corporate performance based on the principles derived from the 69 ILS included in its Annex  providing baselines for framework agreements

MNE Declaration  Requests for interpretation of the MNE Declaration:  in specific cases of actual dispute over the meaning of the principles  examined and answered by the ILO Governing Body  Cases addressing FoA and CB referred to CFA  to date, interpretation mechanism has failed, but CFA jurisprudence important (is the labour movement using it enough beyond national specific boundaries?)

Helpdesk Establishment of the Helpdesk Provides answers free of charge for companies and other actors on how principles derived from ILO standards can be applied in practice Review of the website FAQs ( Child labour Collective bargaining Discrimination and equality Employment promotion Forced labour Freedom of association and the right to organize General policies Occupational safety and health (OSH) Security of employment Wages and benefits Working time

International Public Initiatives on corporate social responsibility The OECD Guidelines for Multinational Enterprises (MNEs) (1976). Updated in ILO Tripartite Declaration of Principles concerning MNEs and Social Policy (1977). Amended in 2000 and The United Nations Global Compact Principles (2000) IFIs Standards such as the IFC (WB Group) Performance Standards on Social and Environmental Sustainability (2006 and being revised currently) UN Frame and Guiding Principles on Human Rights and Transnational Corporations and other businesses. (2008 and 2011)

Private Initiatives on CSR (usually not negotiated ) Codes of conduct – Human Rights Policies (company level) Certification schemes - ISO on Social Responsibility (international voluntary standard). For profit organization. Private sectorial initiatives, such as the private banks and the “equator principles ” Private Initiatives (negotiated) International Framework Agreements between MNEs and GUFs (from 1989 onwards)

International / Global Framework Agreement (IFAs or GFAs IFAs / GFAs are negotiated between MNEs and GUFs They provide a rights based framework to encourage recognition of trade unions (Freedom of Association) and bargaining to take place at the national level. Agreements on principles (usually they include all the 8 core ILO conventions). IFAs /GFAs are not collective bargaining agreements in the same sense as agreements reached at the national or local level. Their Role: to promote labour relation at the national, sectorial and enterprise level

Challenges for the ILO  Increase the focus on labour relations and sustainability (from national systems to supply chains / international labour relations)  Promotion of IFA/GFAs by offering space for negotiations  Technical assistance; capacity building and facilitate negotiations  Dispute resolution; interpretation, mediation and arbitration

CONCLUSIONS – FINAL REMARKS  Many standards and initiatives – Confusing scenario.  Importance of not losing perspective on ILO while acknowledging the new initiatives and its possible functional implementation and use.  Need to properly analyse each one for building a case.  Xxx?  THANK YOU!