Sustainable Enterprise Academy: Promoting Decent Work in Sustainable Supply Chains, Turin 20 to 24 June 2016 Promoting Decent Work in Supply Chains: Closing the Governance Gaps International Framework Agreements

Outline of Presentation Growing Importance of Global Supply Chains Trade Unions’ Response: International Framework Agreements Purpose of International Framework Agreements Some Examples of International Framework Agreements Minimum Content of International Framework Agreements Implementation of International Framework Agreements Monitoring of International Framework Agreements Conclusions Discussion Questions

Growing Importance of Global Supply Chains Trade liberalization, advances in ICT and the dynamics of international investment accelerated the rise of the “Supply Chain Model.” One in five jobs can be linked to supply chains according studies done by the ILO MNEs controlled GSCs undercut the power of labour to bargain over wages and working conditions Pro-business rules granted to TNCs through trade agreements resulted in bad conditions for workers and societies No corresponding globalized social rights such as human and labour rights A plethora of voluntary forms of regulation has emerged since the 1980s: Codes of conduct Corporate Social Responsibility (self-regulation mechanism integrated into a business model The challenge: Labour relations are largely missing in these initiatives

Trade Unions’ Response: International Framework Agreements Labour’s response to globalization of the operations of MNEs along GSCs are International Framework Agreements (IFAs) The added value of IFAs compared to other initiatives is that they are the outcome of direct negotiations between MNEs and GUFs. Definition: “An International Framework Agreement is a policy instrument negotiated between a Multinational Enterprise (MNE) and a Global Union Federation (GUF) in order to establish an on-going relationship between the parties and ensure that the company respects the same standards in all the countries where it operates.” IFAs consist of laid down basic principles and standards generally originating from the core labour standards of the ILO.

Purpose of International Framework Agreements IFAs are used as a means of engaging MNEs, their suppliers and contractors to hold them accountable for working conditions and employee representation in their operations. IFAs are voluntary and non-binding BUT are applicable everywhere and are a source of inspiration for collective bargaining . IFAs provides trade unions an opportunity to monitor Corporate behaviour, the reality of work and labour relations on the shop-floor level. IFAs define procedures that are to be followed in resolving cases of violations Establish regular mechanism for social dialogue at local, national and global levels Trade unions can use IFAs to strengthen their organization and enhance the voice of workers Tool for networking and promoting solidarity actions among trade unions across borders Ensure a realization of Decent Work across the globe

Some Examples of International Framework Agreements IFAs negotiated by GUFs increased from 5 Agreements in 2000 to more than 112 Agreements in 2015 The most recent IFAs (2009 – 2015): ThyssenKrupp, Total, Gemesa, Telefónica, AEON, Acconia, Inditex, Salino-Impregilo, Dragados, Svenska Cellulosa, Codere, Loomis, Solvay, Melia, Enel, Norske Skog, Metro, Telenor, Renault, Statoil, Lafarge, Aker, Eurosport, OHL, Siemens, Saab, Ferrovial, Ford, MAN, Securitas, Lukoil, FCC Construction, Sodexo, Umicore, Mizuno, Petrobras, ZF Friedrichshafen, Mann + Hummel, GDF Suez, Norsk Hydro, Pfleiderer, PSA Citroen, AB Electrolux, Telkom Indonisia, Antara, Malaysia Berhad, Shoprite Checkers, Wilkhahn, AngloAshanti, Tel Telecommunicaciones, Elanders, EDF, ENI. Companies from 13 different countries: Belgium, Brazil, France, Germany, Indonesia, Italy, Japan, Norway, Russia, South Africa, Spain, Sweden, USA. Direct employers of 4.8 million workers

Minimum Content of International Framework Agreement Reference to ILO core labour standards: FOA and CB (C.87 and C.98) Forced labour (C.29 and C.105) Child labour (C.138 and C.182) Equality (C.100 and C.111) Recognition of fundamental labour and human rights standards: Universal Declaration of Human Rights UN Guiding Principles on Business and Human Rights UN Global Compact OECD Guidelines for Multinational Enterprises ILO MNEs Declaration ILO Tripartite Declarations (Philadelphia, FPRW, SJD) Decent Work Agenda – IFAs contain clauses which promote the four pillars of the DWA: Employment promotion Respect of rights at work and international labour standards Social protection Social dialogue: tripartism and bipartism Cover all company operations worldwide without exception Reference to suppliers and subcontractors Guarantee a commitment from the company to treat trade unions positively and refrain from all anti-union activities and to remain strictly neutral. Union representatives should have a reasonable access to the workplace. Mechanisms for implementation, enforcement and a procedure for binding dispute resolution.

Implementation of International Framework Agreements Joint implementation procedures should be included in IFAs Need for strong trade unions and cooperation among transnational union networks to: Disseminate signed IFAs Educate and raising awareness about the IFAs Integrate the IFAs into local operations and practices at the workplace Ensure that MNEs are able to control their subcontractors, subsidiaries and suppliers in supply chains on their obligation to active compliance with the IFAs. Trade unions need to revamp their capacities to fully utilize all available international mechanisms to tame corporate power: Sending comments on the: Application of ratified conventions (Art. 22 of the ILO Constitution) and Effects given to non-ratified conventions and recommendations (Art. 19 of the ILO Constitution) Submit representation (Art. 24 of the ILO Constitution) File complaints to the CFA Follow-up on the comments and recommendations of the ILO supervisory bodies. Trade unions to set-up international, continental, sub-regional and local trade union networks and IT communication systems to facilitate workers’ solidarity actions across borders.

Monitoring of International Framework Agreements Why monitor? To determined how MNEs are delivering on their commitment to respect the tenets of the agreements they have signed. Note: It is highly unlikely that a company will police itself effectively: Thus, monitoring MUST be the responsibility of: Labour inspectors to ensure compliance and enforcement Trade unions at local, sectorial, national and global levels. The aim is to assess corporate behaviour and the reality of working conditions and labour relations at the shop-floor. Shop stewards should be empowered to monitor the implementation of IFAs

Conclusions IFAs are means for securing global workers’ rights. The main objectives of IFAs are to: Open space for organizing workers in MNEs and their subsidiaries – unions can frame their organizing campaigns and solidarity actions around IFAs; Protect labour rights, labour relations and improve working conditions; Create space for dialogue where perhaps none existed before. The role the GUFs and their affiliates is vital to achieving these objectives and likewise joint labour and management effort. Organize, Organize and Organize to build workers’ power

Discussion Questions Were you aware of the existence of IFAs before? Do you know whether your trade union made use of IFAs in recent years? If not, how could you make use of IFAs in your day-to-day work?