International Framework Agreements & role of national level unions

What is a International / Global Framework Agreement? What role can it play at local level? What can unions at national level do?

What is International Framework Agreement (IFA)? … (International) Framework agreements negotiated between MNEs and GUFs are agreements on certain principles which, while they do not constitute collective bargaining agreements in the same sense as agreements reached at the national or local levels, provide a rights framework to encourage recognition and bargaining to take place at those levels.

Why IFAs? Union Response to Globalization of MNC operations – MNC decisions taken at global level, Impact at local level – CBAs at national level not always effective in such a situation - labour laws determined at national level are not always adequate Global unions attempt at promoting respect for fundamental ILO Conventions by MNCs across the world – MNCs adopting codes of conduct, CSR policies, Certification schemes, etc – unilateral, voluntary initiatives, inspection by NGOs or audit companies Unions or workers not involved, parallel process, not involving the labour inspection machinery IFAs/GFAs bring in unions into this process and provides scope for unions in the compliance and monitoring process

IFAs/GFAs Applies mostly to MNCs & their branches/companies in other countries – in few cases, the scope exists to cover suppliers, sub-contractors Represent a formal recognition of social partnership at the global level between a MNC and Global Unions. Provide a global framework for protecting trade union rights, encouraging social dialogue & collective bargaining – includes ILO’s core labour standards Complement and do not substitute for agreements at the national or local level. Can help unions at national level to get recognized, organize & to start a social dialogue with the company, suppliers and subcontractors of MNCs/TNCs

IFAs: About 72 IFAs have been signed by GUFs, covering 4–5 million workers – started with DANONE in 1988 by IUF 62 out of 72 IFAs concluded with companies headquartered within the European Union (predominance of European companies as IFA signatories is also due to the legal obligation to form EWCs since 1994 in EU) ,. The other 10 IFAs negotiated in Australia, Brazil, Canada, Japan, New Zealand, Russia, South Africa and the USA. Major GUFs active in signing IFAs with MNCs: BWI, ICEM, the International Metalworkers Federation (IMF), Union Network International (UNI) and IUF.

IFA’s signed by Global Unions (indicative list only) IUF ACCOR, DANONE, CHIQUITA FONTERRA, CLUB MEDITERRANEE ICEM STATOIL,FREUDENBERG, ENDESA NORSKE SKOG, ANGLOGOLD, ENI UNI Telefónica (Telecom) Carrefour (Commerce) OTE (Telecom) H&M (Commerce) ISS (Property Services) Securitas (Property Services) Falck (Property Services) Portugal Telecom (Telecom) Metro (Commerce) BWI IKEA (FURNITURE, SWEDEN) FABER-CASTELL (PENCILS, GERMANY) HOCHTIEF (CONSTRUCTION, GERMANY) SKANSKA (CONSTRUCTION, SWEDEN) BALLAST NEDAM (CONSTRUCTION, HOLLAND) IMF MERLONI, ELETTRODOMESTICI VOLKSWAGEN DAIMLERCHRYSLER LEONI, GEA, SKF RHEINMETALL

IFA Content… Important that ILO Conventions are included… C 87 - Freedom of Association and Protection of the Right to Organise Convention, 1948 C 98 - Right to Organise and Collective Bargaining Convention, 1949 1 - Hours of Work (Industry) Convention, 1919 29 - Forced Labour Convention, 1930 47 - Forty-Hour Week Convention, 1935 94 - Labour Clauses (Public Contracts) Convention, 1949 95 - Protection of Wages Convention, 1949 100 - Equal Remuneration Convention, 1951 105 - Abolition of Forced Labour Convention, 1957 111 - Discrimination (Employment & Occupation) Convention, 1958 116 - Final Articles Revision Convention, 1961 131 - Minimum Wage Fixing Convention, 1970 135 - Workers' Representatives Convention, 1971 138 - Minimum Age Convention, 1973 155 - Occupational Safety and Health Convention, 1981 182 - Worst Forms of Child Labour Convention, 1999

ILO's Tripartite Declaration on Multinational Enterprises and Social Policy provides a useful point of reference for unions and companies considering drawing up IFAs This Declaration provides recommendations on what would be desirable behaviour of enterprises with regard to employment, equality of opportunity and treatment, skills training, working conditions, occupational safety and health, and industrial relations.

Examples of Positive Action… UNI’s Telefónica GFA Brazil – SINTETEL used the GFA to increase membership Telefónica owns large call centre business and were trying hard to keep out unions and stop unionisation SINTETEL used the agreement to organise members overcoming the company opposition thru referring to the agreements clauses on ILO Conventions. The union now has over 120,000 members compared with 25,000 members prior to the GFA being signed. Not all members were as a direct result, but a “Springboard effect” took place where call centre workers joined the union.

BWI’s IFA with IKEA: Poland: Union in Poland organized workers in Swedwood – an IKEA company due to BWI’s IFA with IKEA Unionisation of 2 IKEA factories in Malaysia SKANSKA & Hochtief factories in US IMF IFA with Daimler Led to union recognition in two sub-contractors plants in Turkey & Costa Rica (on threat of cancellation of contracts with Daimler) IUF’s IFA with ACCOR Led to union organization in Accor group’s establishments in US, UK, Indonesia, Canada and Australia

However…. No legal enforcement mechanisms exist at the global level - any enforcement of IFA provisions relies on the readiness of management to cooperate or on the capacity of trade unions to compel companies to resolve complaints. therefore - provisions for the implementation of an IFA and its effective monitoring seem to be important if the agreement is to have any real impact In general, implementation & monitoring of the agreement is the responsibility of a joint committee of the signatory parties which may meet once or twice a year (ex. IKEA-BWI and Chiquita-IUF IFA) or once in 2 years (as in Faber Castell-BWI agreement) - IKEA-BWI and Chiquita-IUF IFA provide also for external audit inspections of company & its sub-contractors. EWCs/WCWC also monitor the agreement in some cases.

Role of unions at national level IFAs utility at national level is there only if there are unions at that level to take advantage of the good intentions of MNEs as reflected in signing of the IFA. Implementation of IFAs - monitor and promote compliance with IFAs? Reporting to GUF Organize workers in MNC at national level and its supply chains Notify the (relevant) GUF of abuses of IFAs

GUF’s recommendations to improve IFAs All IFAs must: • Contain respect for Core Labour Standards of ILO, clearly referenced by number • Cover all company operations throughout the world • Include a clear commitment by the TNC that suppliers & sub-contractors adopt similar standards for their workers Core Labour Standards of the ILO mentioned in the IFA should take precedence over national laws in case the latter are less favourable than the respective ILO Conventions

GUF’s recommendations to improve IFAs TNCs must ensure the agreement is disseminated in the appropriate local languages spoken or understood by the workers throughout the company’s operations to all workers & managers AND to all suppliers and sub-contractors Establishing union networks is of primary importance and should be prioritized Suppliers and sub-contractors account for many IFA violations and affiliates should develop specific strategies for organizing in these workplaces and for enforcing the IFA;

Can IFAs imply international Collective Bargaining? IFAs at present framework agreements on the fundamental principles and rights at work – mostly declaratory content. IFAs do not deal with investments, job transfers, employee protection measures, lay offs, etc. Should IFAs move towards more detailed CB? When capital goes global, how can unions go global? It is needed BUT - CB is usually the job of national level unions – negotiation of wages, social benefits and other working conditions are the prerogative of national trade unions which are not generally in favour of sharing their power and authority with the Global Union Federations in these matters. Can this function be given over to or shared with GUFs? How can balancing of interests of different workers be done? What does this imply for structures and functioning of international unions? Sharing of powers and responsibilities and link up of various bargaining levels?

ITF agreement in 2000 with IMEC The agreement laid the basis for an international regulation of the working conditions of sailors working under the flag of convenience system. It contains not only provisions on minimum wages and their annual progression from 2001 to 2004, but also provisions on hours of work, vacation, social benefits and grievance settlement procedures in the case of presumed violation of the agreement It succeeded because of international union solidarity through which unions managed to impose on employers in the same industry the obligation to negotiate their employees’ working conditions with trade unions coalition like ITF and thus reduce the wage gaps between workers hired for comparable activities internationally