C ROSS - BORDER HUMAN RESOURCES DEMISE OF UNIONS AND COLLECTIVE BARGAINING ? Unions, International Framework Agreements and MNEs Patricia Burke Johan Lubbe Gunda Niehaus Ajay Raghavan
T ODAY ’ S A GENDA IFAs – Overview of basics Arguments for and against MNEs entering into an IFA IFAs outdated or is a new waive coming? IFAs and backdoor union strategies IFAs, supply chain & independent validators IFA drafting – pitfalls to avoid MNE strategies to avoid IFAs/reduce risks
IFA S – THE BASICS From company codes to transnational bargaining agreements MNEs & GUFs Basic clauses – GUFs developed “models” 91 Mostly European headquartered MNEs Entered mostly between 2000 and 2008 First in Danone
IFA S ARGUMENTS FOR AND AGAINST IFAs are good for MNEs Avoid IFAs
IFA S O UTDATED OR IS A NEW WAIVE COMING ? 91 IFAs through 2011 82,000 multinational companies New targets? The concern: new IFAs or merely a creative use of current IFAs
IFA S AND BACKDOOR UNION STRATEGIES Pressure via main contractors Alliances with NGOs Elevating local disputes to international level Transforming local bargaining disputes to human rights/international labor standards violations Entrance to OECD dispute mechanism (even UN Compact)
IFA S, SUPPLY CHAIN AND INDEPENDENT VALIDATORS Supply chain responsibility – indirectly or expressly in IFAs Environmental & human trafficking Health & Safety Working regulation compliance & living wage New laws – California 2012 UN Ruggie Report – business and human rights Due diligence & reporting/dispute resolution process
IFA S – DRAFTING & OTHER PITFALLS TO AVOID Reference to ILO conventions etc. and what it means Scope of issues? Terminology Dispute resolution Internal training
MNE STRATEGIES Brand name protection trumps all: just sign the IFA? Clear definitions and bargain best can? Dissect issues? Special & comprehensive codes on child labor, discrimination, human trafficking & labor law compliance Left -- lean and mean IFA re collective bargaining/union neutrality agreement? Other strategies?
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