1. 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

2. 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

3. 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

5. 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.

6. 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

7. 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

8. 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.

9. 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.

10. 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

11. 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

12. 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?