Tripartite Declaration of principles concerning multinational enterprises and social policy (MNE Declaration) Githa Roelans Head Multinational enterprises unit Enterprises department, ILO

What is the MNE Declaration What challenges does this Declaration address Its principles and approach Applications at the international/regional levels Applications at the country-level

Sustainable supply chains Promoting decent work Respect for rights at work Opportunities for employment and skills development Access to social protection Access to social dialogue Sustainable supply chains Sustainable (economic, social, environmental) Supply chains Between companies within a country Between companies located in different countries (cross-border trade)

Conclusions of ILC 2016 on Decent Work in Global Supply Chains «The MNE Declaration is the ILO framework supported by all tripartite constituents that aims to maximise the positive impacts of multinational enterprises and resolve possible negative impacts. It states roles and responsibilities of governments (home and host), MNEs, and workers’ and employers’ organizations to that effect and brings these actors together to solve decent work challenges and identify opportunities for inclusive growth»

MNE Declaration “Declaration” = political statement , no ratification or adhering process Tripartite: Adopted in 1977 by GB and further endorsed in ILC policy documents, such as Resolution on Sustainable Enterprises (2007), Declaration on Social Justice for Fair Globalization (2008), Resolution on Decent Work in Global Supply Chains (2016). Only ILO instrument that directly addresses enterprises, in addition to governments, employers and workers’ organizations Principles = recommendations, all based on ILO Standards ILO GB as a specific policy segment to guide ILO’s work on promoting the MNE Declaration and its relation to other international instruments that guide business behaviour (OECD, OHCHR, UN Global Compact, ISO, …) and its incorporation in policies (EU, G20, G7, development bank, …)

Challenges addressed by the MNE Declaration Shared benefits: How to ensure that Foreign Direct Investment (FDI) and trade (Global Supply Chains) contribute to more and better jobs/decent work in the country of operations? Inclusive growth: How to encourage positive contribution of multinational enterprises to socio economic development and minimize and resolve any negative impacts in the country of operations? Policy coherence: What is needed in terms of policies (public – private) to make inclusive growth happen (national, regional and international)? Sustainable enterprises and Corporate social responsibility (CSR): How to better align private sector action with public national development and decent work priorities? Sustainable development Goals and Financing for Development

Its principles and approach Recommendations for Five areas Governments of home and host countries Enterprises – multinational enterprises - Employers’ organizations Workers’ organizations General policies Employment creation and security Training Conditions of work and life Industrial relations Roles and responsibilities – distinct but complementary Decent Work Agenda

Approach Strengthening legal and policy framework in country of operations -> labour, employment, skills but also investment, trade, fiscal, etc. Strengthening private sector policies and actions in own operations and closer align with public objectives  HR policies, CSR policies, Home countries stimulating responsible behaviour of their MNEs and consultation mechanisms between home and host countries Dialogue – consultations at all levels

Specific recommendations on sustainable supply chains Governments should: ratify conventions and apply in law and practice (principle 8 and 9) (home country gov) promote good social practice among MNEs and be prepared to have consultations with host country governments whenever need arises (principle 12) pursue an active employment policy (principle 13) carefully study the impact of MNEs in different industrial sectors (principle 24) develop national policies for vocational training and guidance, closely linked to employment (principle 29) endeavour to adopt suitable measures to ensure that lower income groups and less developed areas benefit as much as possible from activities of MNEs (principle 35). not include any limitations of freedom of association and collective bargaining in incentives offered to attract investment (principle 46)

Specific recommendations on sustainable supply chains MNEs / enterprises should: Contribute to the realization of the FPRW (principle 8) Develop activities in harmony with development priorities in country of operations (principle 10) Give priority to employment, occupational development, promotion and advancement of nationals in country of operations (principle 18) Use technologies which generate employment, both direct and indirect, and contribute to development of technology in host country (principle 19) Give consideration to contracts with national enterprises for manufacturing of parts and equipment, use of local raw materials and local processing of raw materials but such arrangements should not be used by MNEs to avoid their responsibilities (principle 20)

Specific recommendations on sustainable supply chains MNEs / enterprises should: When considering changes in operations, inform government authorities and workers representatives to assess and mitigate impacts on loss of employment (principle 26) Provide relevant training for all levels of their employees in host country and participate in training programmes (principle 31) Provide best possible wages, benefits and conditions of work, related to the economic position of the company and at least adequate to satisfy the basic needs of the workers and their families (principle 34) Respect the minimum age of employment and take immediate measures within their own competence to secure elimination of WFCL (principle 36). Maintain the highest standards of OSH and share international experiences (principle 38) Observe standards of industrial relations not less favorable than those observed by comparable employers in the country concerned (principle 41).

Follow-up to MNE Declaration GB 320 (March 2014): adoption of new implementation strategy for follow-up mechanism to increase uptake of principles by all actors. Strong emphasis on: Support to tripartite constituents in their engagement on FDI and with MNEs Enhance the contribution of MNEs/enterprises to DWC priorities as part of promoting sustainable enterprises Dialogue facilitation (home-host; public-private; company-union) International policy coherence (OECD, G20, UNCTAD) GB 326 (March 2016): review the MNE Declaration text and interpretation procedure, taking into account increased globalization and expectations on enterprises

ILO Helpdesk for Business Established by the GB as an ILO programme to: « facilitate the realization by enterprises of principles relating to international labour standards and the MNE Declaration » assistance@ilo.org = expert advice service « build on and facilitate enterprises’ access to the wide range of expertise and resources across the Office » www.ilo.org/business = website in English, French and Spanish Active outreach to constituents, UN (UN Global Compact) and business CSR initiatives

Capacity building E-learning tool : Business and Decent Work (6 languages) Training courses in Turin: MNEs, development and decent work, the approch of the MNE Declaration International labour standards and CSR Facilitating investment and sustainable development (in partnership with WAIPA) Global resource kit with country case studies National statistical offices to collect data related to FDI/operations of MNEs and decent work to better inform policies at national level  Resolution in the International conference of labour statisticians 2018 Cooperation with UNCTAD and WAIPA on closer linking investment policy and FDI attraction to decent work opportunities  sustainable investment for sustainable development

Tripartite policy discussions during ILO regional meetings 18th American regional meeting (2014, Lima) 13th African regional meeting (2015, Addis Ababa) 16th Asia and the Pacific regional meeting (2016, Bali) Report Regional FDI trends and impact on decent work How ILO constituents promote and apply the principles of the MNE Declaration -> direct inputs from constituents Tripartite discussion -- > outcomes = requests for more capacity building of constituents technical support to constituents for their involvement on policy discussions on FDI and their engagement with MNEs exchange of experiences among ILO constituents in different member States

International policy coherence Alignment of other instruments with ILO standards ISO 26000 Social Responsibility 2010 Labour chapter Human Rights chapter OECD Guidelines for MNE 1976, 2000, 2011 Employment and Industrial Relations Chapter Human Rights chapter ILO MNE Declaration, 1977, 2000, 2006 ILO 1998 Declaration on Fundament Principles and Rights at Work UN Business and Human Rights Framework (2008) and Guiding Principles (2011) 4 Labour Principles 2 Human Rights Principles

Country level interventions Entry points / challenges to be addressed: Insufficient benefits in host country of FDI and operations of MNEs in terms of decent work opportunities  shared value/benefits, LED and inclusive growth opportunities Workplace compliance issues along the supply chain  compliance with national law and requirements of international buyers Intervention focused on: Capacity building of actors Assessments – studies to inform discussions Bringing all actors together (tripartite plus frameworks – home/host country government) Development and adoption of action plan to address the issue at hand Establishment of a national dialogue mechanism and programme Sharing of experiences and good practices ILO as independent but competent broker

Country level interventions (2016-2017) But further technical support provided in many other countries and at regional level Africa Asia Pacific Americas Europe Cote d’Ivoire Fiji Barbados Azerbaijan Ghana Japan Dominican Republic France Mozambique Myanmar Jamaica Senegal Nepal Zambia Pakistan Vietnam

Questions? Visit: www.ilo.org/multi