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UniCredit European Works Council Global Framework Agreements Milan, 27-28 April 2009 Oliver Röthig, Head of UNI Finance
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2 1.A transnational framework for industrial relations 2.Global Framework Agreements 3.Annex: UNI Finance
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3 New Type of MNCs Emergence of integrated transnational operations and transnational identity (eg UniCredit, Axa, Allianz, Erste Bank) SE: Allianz, Scor (Nordea) Eastern and Central Europe Offshoring International/EU regulation
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4 State of Play National traditions, laws and practices differ widely Companies’ behaviour and practice hardly go beyond national legal requirements Companies have not yet developed tools to implement policies and monitor them across countries of operation No comprehensive overview by group management of what is happening in other countries in terms of industrial relations
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5 Riskier Environment Transnational companies are complex, less transparent and difficult to control Markets scrutinise companies on labour policy Unions develop international leverage Bad industrial relations & social dialogue increases investment risk
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6 Integrated Transnational Operations requires Transnational Industrial Relations Framework not Acting in National Boxes
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7 Transnat. Framework of Industrial Relations Overarching framework not replacing but linking national level industrial relations Industrial relations joint affair: i.e. neither HQ nor local manager can say not in charge. Two elements of labour: 1.In-house workers’ representatives 2.unions Principle: ensuring business success without losing sight of a bank’s most important asset – its employees
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8 Win-win Situation Company-union cooperation Unions combine internal knowledge with outside independence Extensive network of affiliates around the world Common cross-national approaches Early warning system on local operation
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9 TODAY‘S CHALLENGE FOR INDUSTRIAL RELATIONS -- Setting up Transnational Company-wide Frameworks -- Developing Industry Standard & Good Practice Managing Complexity and Intransparency of Multinationals Together
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10 1.A transnational framework for industrial relations 2.Global Framework Agreements 3.Annex: UNI Finance
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11 EWCs Character: Focus of transnat. social dialogue in company In-house representation of workers Practice often to restrictive Often disconnected from nat. industrial relations Requirements: Timely and full consultation to allow input Continuous work Close cooperation with UNI and unions
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12 Global Framework Agreements Framework for all industrial relations stakeholders group-wide Legally non-binding Can be half-way house for countries not covered by EWCs
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13 Global Framework Agreements Elements: 1.Group-wide bilateral dialogue/relationship (UNI to aggregate workers‘ side) 2.Labour standards for group-wide operations 3.Monitoring mechanism for point 2 4.Trade union network (5.Process for formulating group-wide policies)
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14 Dialogue/Relationship 1.Open door for trade union-employer relationships at national level 2.Define common interests, ie relationship of benefit for company (eg early warning system, give company‘s CSR credibility 3.Deepen relationship by common action (eg policy on lifelong learning) 4.Promoting GFAs (peer pressure, media)
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15 Setting Standards 1.Regular dialogue unions/workers‘ reps/management (at all levels) 2.Recognition of unions (right to organise and freedom of association) 3.Other core labour standards 4.Other issues (eg work-life balance)
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16 Monitoring 1.Mechanism for monitoring of standards by company 2.At least annual monitoring meeting 3.Conflict resolutions system 4.Publishing results on implementation 5.Trade union part in CSR/annual report? 6.Ensuring adherence by commitments of labour side
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17 Company Union Network: Elements =>Based on extensive network of affiliates around the world 1.Unions organising in a company 2.In-house workers representative bodies (national/transnational) 3.UNI Finance Secretariat
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18 Company Union Network: Functions 1.Exchange of information 2.Monitoring company (early warning system on local operations) 3.Coordinating activities 4.Partner of company
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19 Making Group-wide Policies 1.Process for consultation/formulation on group-wide IR policies 2.Transnational Collective Bargaining –Over 100 quasi-agreements exist with EWC –Legally non-binding –disconnected to nat. system 3.Group-wide policies require: –Link with collective bargaining agents, ie unions. –Structure to aggregate workers‘ interests across countries, ie UNI trade union network in company
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20 The Nordea Model “Group EWC” “EWC” for each business unit Bilateral dispute resolution committee Union representatives on supervisory board Group-wide company union linked to national unions and UNI Group-wide policies
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21 1.A transnational framework for industrial relations 2.Global Framework Agreements 3.Annex: UNI Finance
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22 UNI Global Union 20 million members in 900 unions worldwide Organises the private services sectors 20 million members in 900 unions worldwide Organises the private services sectors http://www.uniglobalunion.org/finance
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23 UNI Finance The global union for finance workers Worldwide: 3 million members in 240 unions Europe: 1.5 million members in 109 unions More than 80% of membership in unions organising both in banks and insurance companies
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24 UNI Finance: Activities Targeting multinationals Corporate social responsibility Globalisation of employment & labour markets (eg offshoring) Social dialogue (Bank, Insurance, ECB) Financial regulation (formal consultations with EU ) Collective Bargaining Network Organising
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