How Should Unions Respond to Globalisation? ICTU Economic Conference ICTU Economic Conference DUBLIN 23 April 2008 DUBLIN 23 April 2008 John Evans John Evans Trade Union Advisory Committee to the OECD Trade Union Advisory Committee to the OECD

Summary Trade Unions and OECD Trade Unions and OECD Economic background – Rising Inequality Economic background – Rising Inequality Economic & Financial crisis 2008 Economic & Financial crisis 2008 Trade Union medium term priorities on globalisation Trade Union medium term priorities on globalisation An example: Trade Union cases raised under OECD Guidelines for MNE An example: Trade Union cases raised under OECD Guidelines for MNE Other priorities for TUAC Other priorities for TUAC

Trade Unions and OECD TUAC as part of Global Unions TUAC as part of Global Unions Why seek to influence the OECD? Why seek to influence the OECD? Ideological Centre of gravity on national policy-Jobs Strategy Ideological Centre of gravity on national policy-Jobs Strategy In theory across government approaches In theory across government approaches « Hub » of globalisation « Hub » of globalisation Expansion of membership Expansion of membership

Background Context of Globalisation 2007 Context of Globalisation 2007 What record on “decent work” What record on “decent work” Falling Unemployment across OECD CountriesFalling Unemployment across OECD Countries But Declining share of wages in national incomeBut Declining share of wages in national income Rising Inequality and unequal reduction in povertyRising Inequality and unequal reduction in poverty Impact of “Financialisation”Impact of “Financialisation”

Rising inequality Declining share of wages in national Y Declining share of wages in national Y

Rising inequality

Economic & Financial Crisis US Sub-prime mortgage debt US Sub-prime mortgage debt Contamination through securitisation Contamination through securitisation International chain reaction International chain reaction Bank collapses Bank collapses Fall of the dollar Fall of the dollar Sovereign Wealth Funds Sovereign Wealth Funds Food price explosion Food price explosion

Economic Policy Priorities Put a floor in credit and housing markets Put a floor in credit and housing markets Need for fiscal and monetary stimulus outside the US (unions agree with IMF!) Need for fiscal and monetary stimulus outside the US (unions agree with IMF!) Reregulate financial markets in the medium term Reregulate financial markets in the medium term « This must not happen again » « This must not happen again »

Medium Term Trade Union Priorities on globalisation Guarantees on Core Labour Standards in all International Institutions Guarantees on Core Labour Standards in all International Institutions Collective Bargaining as “global public good” Collective Bargaining as “global public good” Negotiating space in international industrial relations Negotiating space in international industrial relations Global Framework AgreementsGlobal Framework Agreements Using market power Using market power Pension funds: responsible investmentPension funds: responsible investment Using regional regulation – the EU Using regional regulation – the EU Rules for Multinational Enterprises Rules for Multinational Enterprises

OECD MNE Guidelines Drawn up in 1976 revised in 2000 Drawn up in 1976 revised in 2000 Government reactions to « accountability crises » Government reactions to « accountability crises » Major change in implementation mechanisms- role of National Contact Points agreed in 2000 Major change in implementation mechanisms- role of National Contact Points agreed in 2000 Cases and sanctions Cases and sanctions

OECD Guidelines Cases 90 cases raised by TU since 2001: 90 cases raised by TU since 2001:

OECD Guidelines Cases Types of leading breaches: Types of leading breaches: Anti-union behaviour Anti-union behaviour No consultation on restructuring No consultation on restructuring No enforcement of contract No enforcement of contract Threat to relocate offshore Threat to relocate offshore No information on financial performance of firm No information on financial performance of firm Problems with occupational health & safety Problems with occupational health & safety Various Various45%19% 16% 2% 2% 1% 1% 15%

OECD Guidelines Cases Types of leading breaches / Region: Types of leading breaches / Region: Anti-union behaviour: most frequent in AsiaAnti-union behaviour: most frequent in Asia Non-consultation if restructuring: most frequent in EuropeNon-consultation if restructuring: most frequent in Europe

OECD Guidelines Cases Of all closed cases (53): Of all closed cases (53): In half of the cases (28) we have at least some positive outcomeIn half of the cases (28) we have at least some positive outcome In 45%: Intermediation of NCP was very helpful In 45%: Intermediation of NCP was very helpful In 45%: Pressure on the company (via different ways) without help of the NCP In 45%: Pressure on the company (via different ways) without help of the NCP In 10%: court outcome in favour of TU which leaded to some positive outcome In 10%: court outcome in favour of TU which leaded to some positive outcome In 61% of the closed cases, there is a public statement made by the NCPIn 61% of the closed cases, there is a public statement made by the NCP

OECD Guidelines Cases Implementation: influenced by the structure: Implementation: influenced by the structure: Only governmental departmentsOnly governmental departments 27 NCP 27 NCP BipartiteBipartite 1 NCP: Romania 1 NCP: Romania What about the objectivity? What about the objectivity? TripartiteTripartite 9 NCP: Belgium, Denmark, Estonia, France, Latvia, Lithuania, Luxemburg, Norway, Sweden 9 NCP: Belgium, Denmark, Estonia, France, Latvia, Lithuania, Luxemburg, Norway, Sweden Quadripartite:Quadripartite: 2 NCP: Chile, Finland 2 NCP: Chile, Finland

OECD Guidelines Cases NCPs that received ≥ 3 TU-cases NCPs that received ≥ 3 TU-cases

OECD Guidelines Cases Conclusions: OECD guidelines for MNE Conclusions: OECD guidelines for MNE “Far from perfect” but still useful“Far from perfect” but still useful if more political will more effective toolif more political will more effective tool Within the OECD Within the OECD Need for more NCP capacity buildingNeed for more NCP capacity building Peer review processPeer review process Link it to export credits guaranteesLink it to export credits guarantees More regional focusMore regional focus G8 declaration G8 declaration Coherence between instruments Coherence between instruments OECD/ILO Round Table June 2008 OECD/ILO Round Table June 2008 More Information at Information at

Other TUAC priorities OECD Jobs strategy versus going for growth OECD Jobs strategy versus going for growth Mainstreaming distribution & equity issues Mainstreaming distribution & equity issues OECD Enlargement and Enhanced Engagement OECD Enlargement and Enhanced Engagement Combatting climate change – green jobs and greening the workplace Combatting climate change – green jobs and greening the workplace Education – quality public services Education – quality public services