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T ODAY ’ S A GENDA  IFAs – Overview of basics  Arguments for and against MNEs entering into an IFA  IFAs outdated or is a new waive coming?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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