1. Vorstand Zweigbüro Düsseldorf 1 International Conference of the ILO Implementing Occupational Safety and Health Standards Globaly 4.11.2009 Düsseldorf Workers‘ Participation Instruments and Strategies in Multinational Enterprises Bert Römer IG Metall Management Board, Branch Office for Steel, Düsseldorf

2. Vorstand Zweigbüro Düsseldorf 2 Influence, effect and the basis of Employee involvement EWC IFA International Framework Agreement Legal framework: International, european and national Levels of action of trade unions: international, european and national European Agreement National collective agreements Company level agreements

3. Vorstand Zweigbüro Düsseldorf 3 Workers‘ Participation Instruments and Strategies in Multinational Enterprises Internationalization of firms requires new tools and networking of the different levels of involvement/ regulation Levels of action: IFAs - International Framework Agreements Multinational companies with  IMF (International Metalworkers Federation - IMF) national trade unions in the country of origin (HQ) Global Works' Council (GWC)  EWC (European Works Council)  EMF (European Metalworkers' Federation- EMF)  National trade unions Collective Agreements national/ branch level Partners: IG Metall Agreements plant level Partners: Works Councils, local trade unions

4. Vorstand Zweigbüro Düsseldorf 4 Three examples... IFA 19 International Framework Agreements in the scope of IG Metall examples: Volkswagen, Daimler, Leoni, Bosch, Faber-Castell, GM European Framework Agreement Arcelor Mittal (2009) Arcelor Mittal Global Health and Safety Agreement (2006)

5. Vorstand Zweigbüro Düsseldorf 5 Contents of the IFA agreements  Core labor standards of the ILO  Scope  Information to workers  Reporting / monitoring  Involvement of suppliers  Environmental policy  OSH  Qualification / training  Cost Coverage and levels of implementation Worldwide, all production and distribution units Suppliers: Worldwide, all contracts with suppliers

6. Vorstand Zweigbüro Düsseldorf 6 GBR/Löckle Creation / stabilization of the trade union structures at the production sites Access of trade unions Enforcement of collective bargaining: wages / working conditions Regulation of employment relations Democratic workers' representatives (works council Introduction of continuous processes to improve working conditions in companies Improvement Occupational Health and Safety Positive influence on suppliers The main objectives of IFA

7. Vorstand Zweigbüro Düsseldorf 7 GBR/Löckle  Agree on checklists to review rules  Existing audit systems (safety, environmental protection, quality standards such as ISO 9001, ISO 14001) for social screening criteria of the framework agreement to expand - avoid isolated solutions  Start with simple criteria, for example: - collective agreements? - workers' representatives? - level of wages? - child labor? - OSH system? - excessive working hours?  Responsibilities for implementation  Handling of complaints Monitoring audits

8. Vorstand Zweigbüro Düsseldorf 8 Ensure the implementation of the agreement at all locations. In particular: External and internal audits for verification Information and awareness raising of employees and management Integration into management systems and controlling Being included in manuals and guidelines on procurement and purchasing policies and contracts with suppliers Controlling reports are sent to the Board Integration of audits into incentive schemes Key points for implementation

9. Vorstand Zweigbüro Düsseldorf 9 Good practice IFA? Monitoring is integrated into management sytemd and implemented in a regular and sustainable way Social benchmarking of the sites - instead of only cost benchmarking IFA must be "values-based corporate policy“, e.g. Recognition and participation of employee representatives Cooperation with local trade unions, collective bargaining and codetermination Clear responsibility for implementation in a company Unions and employee representatives‘ at all levels involved in the implementation process Involvement of suppliers

10. Vorstand Zweigbüro Düsseldorf 10 IFAs can effectivley contribute to the realization of human rights and to the implemention of international labor standards. IFAs can‘t substitute for binding international and European legislation. Governments need to play an important role to enforce labor regulations. Conclusion

11. Vorstand Zweigbüro Düsseldorf 11 Spread of IFAs merely reflects the inability of governments and international organizations to enforce minimum standards. The enforcement and implementation of IFAs could in the future provide important information regarding ousourcing strategies. The experience with the implementation of the IFA show: Cross-national information and cooperation between trade unions and works councils including at company level is necessary and needs to be expanded

12. Vorstand Zweigbüro Düsseldorf 12 Closing down plants – compulsory reduction of working time to zero in some locations No negotiated solutions- cheap-compensation schemes in Eastern European countries Disastrous situation for contractors (subcontractors and temporary workers) Massive pressure on workers to abandon the workplace against severance pay Intensification and acceleration of programs to reduce the number of workplaces Trade unions are generally not involved The crisis in the steel sector and the reaction of european trade unions at Arcelor Mittal – European Framework Agreement Background

13. Vorstand Zweigbüro Düsseldorf 13 Demands of the EMF 1. Priority to retain the current workforce in order to be prepared for recovery of demand; 2. Commitment to negotiated solutions and no compulsory redundancies due to business operations; 3. Compensation for loss of salary in case of temporary lay-offs; 4. Fair compensation for productivity gains achieved by the group; 5. Maintaining the skills, knowledge and human capital of the company, including replacement of retiring workers with new staff and maintaining apprenticeship schemes;

14. Vorstand Zweigbüro Düsseldorf 14 6. Usage of reduced production periods to invest in workers’ education and training with a view to ensuring long-term employment security; 7. Usage of reduced production periods to invest in renovation and upgrading of machinery and production facilities with a view to maintaining the viability of sites, in cooperation with subcontracting companies; and 8. Development of clear industrial plans for the recommissioning of industrial sites and blast furnaces.

15. Vorstand Zweigbüro Düsseldorf 15 Outcome Memorandum of intent to recommission facilities No compulsory redundancies due to business operations Education and training for employees Proactive HRD strategy (including demographic change) Impact on investment Information on market shares and market strategies Improvement of the influence of trade unions Creation of national participation structures

16. Vorstand Zweigbüro Düsseldorf 16 What has been achieved? Reopening of all plants (depending on the market situation + modernization) Maintaining of a qualified workforce (temporary compulsory reduced working time) Limiting redundancies due to business operations Maintaining purchasing power Safeguarding of competence and qualifications ( only voluntray "mobility") Permanent social dialogue – has to be enforced nationally Social dialogue group with 12 members with reporting requirements