OECD Guidelines for MNEs rAdopted in 1976, and reviewed in 2000 rGuidelines, major features: –comprehensive set of rules, multilaterally endorsed, binding for adhering governments which are requested to promote their application by MNEs operating in their countries and by MNEs based in their countries operating worldwide –voluntary to enterprises, not legally but morally binding; rMajor components: NCP, CIME (Committee on International Investment and Multinational Enterprises), and TUAC

OECD Guidelines : content rThe Guidelines consist of ten chapters covering most aspects of company behaviour: 1.Concepts and Principles, 2.General Policies, 3.Disclosure, 4.Employment and Industrial Relations (FoA, CB), 5.Environment (OSH), 6.Combating Bribery, 7.Consumer Interests, 8.Science and Technology, 9.Competition and (10) Taxation.

Trade Union Advisory Committee to the OECD - TUAC r- international trade union organisation which has consultative status with the OECD; rTUAC represents views of organised labour in industrialised countries; r56 national trade union centres in 30 OECD countries, covers 66 million workers.

OECD Guidelines : application rThe Guidelines apply to MNEs operating in or from: 1.the 30 OECD member countries, plus currently nine non-OECD members: Argentina, Brazil, Chile, Estonia, Israel, Latvia, Lithuania, Romania and Slovenia. 2.Guidelines also apply to these companies’ operations worldwide.

Role of TU rCheck OECD Annual Report on Guidelines rWhen a company breaches the Guidelines, TU can raise this case with the NCP rConsult TUAC; it works closely with ICFTU, WCL, ETUC and GUFs. (

Code of Conduct rIs a written policy or statement of principles adopted voluntarily by a company to express its commitment toward a particular conduct rNOT NEGOTIATED BUT UNILATERAL DECLARATION rCode of conduct for business –consumer rights, product safety or environmental protection –ethical behaviour codes for employees –International instruments to monitor the social responsibility of business –ILO MNE Declaration –OECD Guidelines for MNEs –attempt by UN to set a global code

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; 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

CSR and TU rCSR could be a positive process for TU if: - Strengthen FoA and the creation of unions -Strengthen C.B -Support organising -Not only comply with the law but it goes beyond national legislation (socially and ethically responsible to stakeholders/local communities) -Alliances of TU and civil society

Negotiated agreements and global labour relations INTERNATIONAL FRAMEWORK AGREEMENTS rInstruments negotiated between a MNE and a Global Union Federation (GUF) concerning international operations of the company; rMNEs commit themselves to applying the same labour standards to their employees in all the different countries where they operate

Framework Agreements rImplement Core Labour Standards; rApply “Decent working conditions”; rApply environmental standards; rPromote 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)

Codes of conduct and FA Codes of ConductInternational Framework Agreements Unilateral actionsNegotiations between workers and management Not all Core Labour Standards are necessarily acknowledged All Core Labour Standards are explicitly acknowledged Rarely address suppliersUsually include suppliers Monitoring, when envisaged, is under the management’s control Unions are called to participate in the implementation process Feeble basis for dialogueStrong basis for dialogue between unions and management

Important Aspects for FA rCapacity of GUFs to engage in F.A. with a large number of MNEs rMonitoring F.A. rCapacity of MNEs to control subcontractors or supply-chains rExtension of EWC versus GWC and strategic alliances between European Trade Unions and GUFs. rAgreements between MNEs and GUFs for the implementation of monitoring of FA

Regional Economic Agreement National Labour Relation / Tripartite Committees ILO Tripartite Declaration on MNCs 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

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 (case: CROATIA, asbestos) –Multilateral approaches to problem-solving rImportance of International, Regional, and Sub-regional trade union networks/IT and communication systems rNetworking / SoliComm portal

PROGRAMME FOR WORKERS’ ACTIVITIES OF THE ILO TURIN CENTRE (ACTRAV) ACTRAV-Turin