International Instruments for Protection and Promotion of International Labour Standards in the Era of Globalization

Challenges Today rMission for Trade Unions: From “Social Exclusion” to “Social Inclusion” - social justice with stability, sustainability and predictability rWhat’s Needed?: To reach as many workers as possible, assuring their rights can be secured rHow? By effectively and maximally utilizing all means available for protecting and promoting core standard

Points for Discussions rSummary of international instruments available for trade unions in their campaigns for core labour standards; rFocus on multinational enterprises as a focal point for trade union campaigns

Regional Economic Agreement National Labour Relation / Tripartite Committees ILO Tripartite Declaration on MNCs Summary of International Instruments International National Private Public ILO Declaration on F.P.R.W. Framework Agreements Code of Conducts Social Labelling Labour Legislation CFA ILCs UN Global Compact OECD Guidelines for MNCs

ILO Conventions: Supervisory Mechanism rFor Ratified Conventions –Article 22 Report - Review by CEACR –Article 24 : Representation –Article 26 : Complaint rFor Non-Ratified Conventions –Article 19(5-e) Report rFor Freedom of Association matters –Special procedure through Committee on Freedom of Association Annual Review on Non-ratified Core Standards General Survey ILO Declaration +

ILO Tripartite Declaration on Principles concerning MNEs rAdopted in 1977 by GB (amended in 2000) as a voluntary instrument to: –Regulate conduct of MNEs –Define the terms of MNEs relations with host countries, esp. in labour-related and social issues rAims for: –Enhancing the positive social and labour effects of the operations of MNEs

ILO MNE Declaration : Follow-up rA Procedure adopted by GB in 1980 (revised in 1986) as promotional tool to: –provide for the submission of requests for interpretation in cases of dispute on the meaning/application of its provisions rSurvey –The effect given to the principles of the Declaration is “monitored” through a periodic survey (7th Survey for 96-99)

OECD Guidelines for MNEs rAdopted in 1976, and reviewed in 2000 rGuidelines is: –Recommendations addressed by governments to MNEs –Voluntary principles and standards for responsible business conduct rMajor components: NCP, CIME, and TUAC

OECD Guidelines : 2000 Review rExpanded Coverage –All core standards, environment performance, human rights, corruption and consumer interests –Global application, not just in OECD countries rStrengthened National Contact Point (NCPs) –handle enquiries, assist in solving problems, and report and meet annually on national experiences –promote Guidelines for effective implementation rNew Actor : NGO

UN Global Compact (1) rShared value for the global market, promoting global citizenship r9 Principles –Human Rights 1. Businesses should support and respect the protection of internationally proclaimed human rights. 2. Make sure they are not complicit in human rights abuses.

UN Global Compact (2) - Labour 3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; 4. The elimination of all forms of forced and compulsory labour; 5. The effective abolition of child labour; 6. Eliminate discrimination in respect of employment occupation. - Environment 7. Business should support a precautionary approach to environmental challenges; 8. Undertake initiatives to promote greater environmental responsibility; 9. Encourage the development and diffusion of environmentally friendly technologies.

Development of Private Voluntary Initiatives (PVI) As response of global community to the growing power of MNEs rAlternative Trade Organizations rSocial Labelling (SL) rCodes of Conduct (COC) rNew Codes of Conduct (New COC) rFramework Agreements (FA) 1970s 1990s

Code of Conduct…(old) rUnilateral declaration, mainly for social appeal rCode of conduct for business –consumer rights, product safety or environmental protection –ethical behaviour codes for employees rCode of conduct for international business –ILO MNE Declaration –OECD Guidelines for MNEs –attempt by UN to set a global code Note: These are not VPIs!

New Code of Conduct Four Major Characteristics rPurely private, voluntary initiative (PVI) rResponse to the situation of poor labour standards created by the failure of national governments and of international community; rinternational application rCross-cutting application to suppliers and subcontractors

Definition of New Code of Conduct “Commitments voluntarily made by companies, associations or other entities which put forth standards and principles for the conduct of business activities in the marketplace” (“Workers’ tool or PR ploy?” – by Dr. I. Wick)

Number of New Codes r246 codes (June 2000 by OECD study) -118 by individual companies, 92 by industry and trade associations, 32 by partnerships between stakeholders and 4 by inter-governmental organizations -Only 163 mention monitoring -Only 30% mention freedom of association, and only10.1% refer to ILO codes

Why New Codes are important for Trade Unions? New Codes are on “labour practice” Most companies adopt COC without involving trade unions So, they can be used as an excuse for having no union Great potential and also danger Truly applied, codes may establish ILSs as binding international framework for responsible corporate behaviour So, union’s involvement is vital

Why New Codes are important for ILO/ACTRAV? If truly applied, codes may establish ILSs as binding international framework for responsible corporate behaviour ILO/ACTRAV Need to: - Know pros and cons of new codes of conducts - Establish basic criteria/standards for verification - Train workers’ organizations

Some Questions to be Considered rCan codes really promote freedom of association and collective bargaining? rShould national trade union organizations negotiate codes with MNEs? rShould trade unions be responsible for implementation/monitoring of codes? rWhat are credible systems of verification?

Framework Agreements “An agreement negotiated between an MNE and an international trade union organization (such as an ITS) concerning the international activities (or behaviour)of the company” Main purpose of framework agreements is to establish an ongoing relationship between the MNE and the ITS to frame “principles” of industrial relations and good labour practices

Major Framework Agreements rIUF - Danone (1988), Accor hotel group (1995), Nestle (1996), Del Monte (2000) and Chiquita (2001) rIFBWW - Ikea (1998), Faber-Castell (2000), Hochtief (2000) rICEM - Statoil (1998), Freudenberg (2000) rUNI - Telefonica (2000), OTE (2001), Carrefour (2001)

Points for Observations of F.A./COC rSubstance (reference to core labor standards) rParticipation (trade unions / social actors) rSocial responsibility (production chains) rIndependent verification rComplaint and appeals (dispute settlement) rIncentives (sanctions)

Exercise 1 1.Compare the following F.A.s : ① IFBWW/IKEA Agreement ② IUF/Colsiba-Chiquita Agreement ③ UNI/H&M Agreement 2.Discuss which F.A. is the best and how these F.A.s can be improved. 3.Discuss whether F.A. can be effective tool for international trade union movement in general, and for Filipino workers in particular. Give reasons.

Three Important Aspects rCapacity of ITSs to engage in F.A. with many MNEs rCapacity of MNEs to control subcontractors or supply-chains rPractical applications (implementation) of F.A. in regions, countries and local communities

So, What Do You Think? rDo you think the Framework Agreements can be a new tool for trade union campaigns? rHow do you think national/local trade unions can maximally use F.A.?

Policy and Strategy for T.U. rSet up institutional mechanisms and capacities to fully utilize all the available international instruments –Regular reporting –Complaints procedures in case of violation –Multilateral approaches to problem-solving rImportance of International, Regional, and Sub- regional trade union network

Exercise 2: Case Study 1.Consider the following case and see what the trade union can do: In a newly set-up EPZ in a beautiful island country, called DREAMLAND, a Japanese electronic company ISHIBASHI has been continuously harassing leaders of employees in a bid to prevent the formation of a trade union in its factory. 2. Now, think about: - What options do you have to help the workers? - What information do you need to know?

The End… ACTRAV-Turin