European Works Council & Transnational Company Agreements: challeges for the present and the future Francesco Lauria Centro Studi N.le Cisl GDANSK, 14° October 2016 Etui Conference Innovate to Renew Project VS/2015/0405

Few words about Cisl CISL, the second largest Confederation of Trade Unions in Italy (around members in 2016) Born in 1950, independent and non ideological Cisl National Study Center was created in Florence in 1951 (training and research) Strong cooperation with Solidarnosc since the beginning (during the communist period)

EWC & TCA EWC & TCA WHY ? WHY ?

Economia dell’interdipendenza Abbiamo ancora tutti negli occhi l’immagine della tragedia del Rana Plaza in Bangladesh, nell’aprile del Il crollo della “fabbrica” tessile,, in cui si sono registrate oltre 1200 vittime, ha riportato l’attenzione su due elementi importanti: il rapporto tra tutela del lavoro e diritti umani, in February Lindsley (Gb) Manifestation against italian and portogues posted workers from Irem in a Total oil platform.

24th April Rana Plaza. Dacca, Bangladesh More than 1200 workers died in the collapse of a factory, where the they were working for famous global textile brands

Foxconn factory – Net to prevent suicides in the I Pad factory 6

Who are the people with yellow hats? 7

Solidarity?

Why the relation beetween EWC and TCAs is important for us… In Italy workers are usually organized depending on the type of productive activity exercised by the company for which they work The collective agreements through which organised workers express solidarity and concur to work regulations are therefore, mainly, the nation wide-sector collective contract.

Dimensions of the structure The degree of centralization of the structure and system of the Italian c.b. is on the middle in the international ranking. With the 1993 agreement the decentralization of the bargaining activity is controlled by the central level (centralised decentralisation). After the crisis of 2008, the Italian structure follows the decentralizing trend of the other European experiences.

Dimensions of the structure The Italian structure is two level: national (intersectoral and industrial) and local (mainly company). The absolute extension (or coverage) of the structure is high: around the 80% of the labour force (intersectoral and industrial agreements). That explains the high (?) unionization rate (around 30%). But only 30/35% of the labour force is covered also by company agreements.

In the past the effect of the downs was centralization, in the era of global markets and digitalization it happens exactly the opposite. A creeping process of erosion of collective bargaining is possible. A serious problem where as in Italy it’s not functioning a system of legal minimum wage.

Italian Multinational Companies Italian Multinational Companies: more than enterprises… Companies have increased their investments abroad; mainly these investments have been concentrated in Romania, Brasil, China, Ethiopia (countries characterized by low cost of labor).

Multinational companies in Italy - 13,165 foreign multinationals in Italy. Employing 1.2 million people. Turnover in 2014: 542 billion euro. - Multinationals in industry and services: 7.1% of the workforce 16.7% of total sales. - It is linked to foreign multinationals, 26.2% of exports and 46.2% of imports.

EWC based in Italy

EWC representatives in Italy Based on the agreement by the parties, transposed into national legislation, the EWC are appointed by the trade unions signing collective agreements in consultation with the company's trade unions representatives. Delegates are more experienced in dealing with directions and more politically formed and their designation meets needs for balance between the different unions.

BUT… Problematic flow of information and coordination between the three union figures involved in the process: the delegates at the EWC, representatives of workers, company officials trade-union counterparts. The exchange of informations is often limited to a relationship between delegates and company representatives without passing with the trade unionist structures.

IFAs TCAs with Italian Multinational Companies: Construction Sector Impregilo (November 2004) Italcementi (June 2008 but…) Salini (2011) Merger Salini-Impregilo (2014)

What do TCAs include? Respect for freedom of association and the right to collective bargaining Work as free choice (no forced labor, no retention of passports etc.) Equal opportunity and treatment in working conditions and wages of whatever ethnicity, religion, skin color (no discrimination) Protection of migrant workers and posted workers (equal pay for equal work)

What do TCAs include? No child labour Decent wages (written agreements on wage and working conditions – wage deductions only those foreseeen by law ) Respect of working time in accordance with the Host country law - ok overtime but within certain limits – at least one day off per week

What do IFAs Tcas include? Health and Safety of workers (working environment safe and healthy - decent housing - receiving personal equipment for safety in building-sites - training - risk prevention - the right to have representatives on the safety committees) Commitment to extend Health and safety principles to contractors - subcontractors and suppliers (their participation in meetings, seminars, as well)

What do IFAs-TCA include? Workers’ Welfare (drinkable water – canteen – decent housing - information and prevention of AIDS/HIV) Training (all workers must be entitled to participate in training programmes – also for skills - use of new technologies, etc...)

IMPREGILO IFA 1° International Framework Agreement of an Italian Multinational Company in the sector. Monitoring group (representatives from the International Trade Union Federation, the National Trade union organizations and HR Manager of the Company) in order to verify the implementation of this IFA in the building-sites where the Multinational Company is operating. IFA translated into the most relevant languages present in the Company

Risks and opportunities It’s crucial the role of the monitoring group or risk of dangerous complicity Recent cases of foreign building Multinationals making use of blacklists (avoiding to hire workers affiliated to TUs or close to TUs) Agreement/control - instrument of reconciliation between the social partners

IMPREGILO Monitoring group (regular meeting at least once a year) Visits at the building-site to verify IFA implementation)

Visit at the Building-site in Iceland and exchange of opinions with the local trade unions

Building a dam in Iceland

Project explanation and Visit at the school built by Impregilo for workers’ children in the building site

EXCAVATION OF A TUNNEL

More than 30 ethnic groups present in the building-site

Workers housing in the building site

Protocols – New Agreements to be negotiated? Ad hoc IFA – for the lenght of the works of the building sites – i.g. Consortium (Impregilo plus 3 other building enterprises) for the Extension Panama Channel. Same procedure for Qatar? Critical situation for workers (94% migrant workers coming from India, Nepal and Philippines) thousands of fatal accidents

So… A lot of matters included in the IFAs could be transferred to European level with the involvemente of EWC Committment from the general contractor to choose subcontractors and suppliers that respect the fundamental human and working conditions rights of workers Protection of migrant workers and posted workers (equal pay for equal work) – no discrimination

Why this Project is interesting for Cisl? RESEARCH JOINT TRAINING WITH POLISH EWC DELEGATES CASE STUDIES DEVELOP NEW TCA’S INVOLVING EWC LINK WITH ETUC POLICIES

Sectors and trade unions 1) Food Industry – (Ferrero) 2) Manifacturing (white goods like freezer, washing machines, cookers) Industriall Europe 3) Commerce/Textile (Zara- Inditex) Uni Global – extended to IndustriAll Over proposal: Ciett and Uni Global (Workers OF Temporary Agencies)

Cases FOOD INDUSTRY Ferrero EWC Agreement Discussion about possible TCA Ferrero is a global company based in Northern Italy (Alba Cuneo) Polish workers included in the agreement Historical Agreement: 17 th October 2016 celebrations of the 20 th Anniversary

Whirlpool – Domestic appliance manufacturer Framework agreement covering 24,000 workers (Whirpool and Indesit) Areas covered: Europe, Middle East, Africa Actors: Company, Industriall in strict contact with Fim Cisl Date of signature: 18 March 2016 Polish Workers Included

Inditex – Zara Commerce and Textile Sector First Agreement with Uni 2009 now extended also to Industriall also for the supply chain. More than 1 million workers and factories in all the supply chain Classical Tca not italian base Interesting for our perspectives. (multisectoral – global supply chains)

Conclusions… The importance of (euro) training… Etui Cisl Cgil Uil training course about Trade Union Active role in multinational companies and global supply chaines…