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ILO / ACTRAV International / Global Framework Agreements, the labor movement and the role of the ILO: challenges and opportunities for the governance.

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Presentation on theme: "ILO / ACTRAV International / Global Framework Agreements, the labor movement and the role of the ILO: challenges and opportunities for the governance."— Presentation transcript:

1 ILO / ACTRAV International / Global Framework Agreements, the labor movement and the role of the ILO: challenges and opportunities for the governance of GSC

2 Mapping IFA/GFA International Public Initiatives on Corporate Social Responsibility (CSR)
The OECD Guidelines for Multinational Enterprises (MNEs) (1976). Updated in 2011. ILO MNEs Declaration (revised in 2017) The United Nations Global Compact Principles (2000) IFIs Standards such as the IFC (WB Group) Performance Standards on Social and Environmental Sustainability (2006 and being revised currently) UN Frame and Guiding Principles on Human Rights and Transnational Corporations and other businesses. (2008 and 2011)

3 International Private Initiatives on CSR (usually not negotiated)
Codes of conduct – Human Rights Policies (company level) Certification schemes - ISO on Social Responsibility (international voluntary standard). For profit organization. Private sectorial initiatives Private Initiatives (negotiated) International Framework Agreements between MNEs and GUFs (from 1989 onwards)

4 International / Global Framewortk Agreements (IFAs / GFAs) between MNEs and GUFs: negotiated initiatives. What is an International/Global Framework Agreement? Why do we need IFAs/ GFAs? What role can it play at at national/local level? Data on the development of IFAs/GFAs.

5 What is an International / Global Framework Agreement (IFAs or GFAs)?
IFAs / GFAs are negotiated between MNEs and GUFs Agreements on principles (usually they include all the 8 core ILO conventions). They provide a rights based framework to encourage recognition of trade unions (Freedom of Association) and bargaining to take place at the national level. IFAs/GFAs are not collective bargaining agreements in the same sense as agreements reached at the national or local level. Their key role: to promote labour relation at the national, sectorial and enterprise level

6 Why do we need IFAs/GFAs?
Labour response to globalization of production of MNEs operations (supply chains) Unions’attempt of promoting global respect for fundamental ILO Conventions by MNEs across the world. Counterbalance the power of MNEs. Their decisions are taken at global level and the impact of these decisions are at the local/enterprise level. Labour laws at national level are not always adequate (see EPZs or the case of Bangladesh for freedom of association). IFAs/GFAs are based on the development of a coherent framework of labour relations at different levels. Scope for unions in the compliance and monitoring process. Some MNEs are realising that adopting CSR policies (private unilateral, voluntary initiatives, inspection by NGOs or audit companies) is not effective nor sustainable…Turning point of Rana Plaza.

7 What role can it play at national/local level?
Can help trade unions at national, sectorial and enterprise level to organize workers in MNEs through supply chains. Can help trade unions at national, sectorial and enterprise level to get recognized & to start collective bargaining with the company, suppliers and subcontractors of MNEs IFA should complement and not substitute collective bargaining agreements at the national or local level. Key role of the affiliates of the GUFs at the national level for the enforcement and monitoring of IFAs/ GFAs.

8 Data on the development of IFA
About 100 IFAs/GFAs have been signed by GUFs, covering over 10 million workers – started with DANONE in by IUF 62 IFAs/GFAs concluded with companies headquartered within the European Union ( also due to the legal obligation to form EWCs since 1994 in EU). The other 10 IFAs/GFAs negotiated in Australia, Brazil, Canada, Japan, New Zealand, Russia, South Africa and the USA (data 2016) Major GUFs active in signing IFAs/GFAs with MNEs: IndustiALL, ITF, UNI, BWI and IUF.

9 IFA’s/GFAs signed by Global Unions (indicative list only)
IUF ACCOR, DANONE, CHIQUITA FONTERRA, CLUB MEDITERRANEE UNI Telefónica (Telecom) Carrefour (Commerce) OTE (Telecom) H&M (Commerce) ISS (Property Services) Securitas (Property Services) Falck (Property Services) Portugal Telecom (Telecom) Metro (Commerce) BWI IKEA (FURNITURE, SWEDEN) FABER-CASTELL (PENCILS, GERMANY) HOCHTIEF (CONSTRUCTION, GERMANY) SKANSKA (CONSTRUCTION, SWEDEN) BALLAST NEDAM (CONSTRUCTION, HOLLAND) IndustiALL MERLONI, ELETTRODOMESTICI VOLKSWAGEN LEONI, GEA, SKF RHEINMETALL, STATOIL,FREUDENBERG, ENDESA NORSKE SKOG, ANGLOGOLD, ENI

10 IFA & a rights based approach
ILO Conventions are included… C Freedom of Association and Protection of the Right to Organise Convention, 1948 C Right to Organise and Collective Bargaining Convention, 1949 1 - Hours of Work (Industry) Convention, 1919 29 - Forced Labour Convention, 1930 47 - Forty-Hour Week Convention, 1935 94 - Labour Clauses (Public Contracts) Convention, 1949 95 - Protection of Wages Convention, 1949 100 - Equal Remuneration Convention, 1951 105 - Abolition of Forced Labour Convention, 1957 111 - Discrimination (Employment & Occupation) Convention, 1958 116 - Final Articles Revision Convention, 1961 131 - Minimum Wage Fixing Convention, 1970 135 - Workers' Representatives Convention, 1971 138 - Minimum Age Convention, 1973 155 - Occupational Safety and Health Convention, 1981 182 - Worst Forms of Child Labour Convention, 1999

11 Where we stand…on IFAs/GFA
Applies mostly to MNEs & their branches/companies in other countries – in some cases, the scope exists to cover suppliers, sub-contractors (agreements covering the GSC). No legal enforcement mechanisms exist at the global level - enforcement relies on the readiness of management to cooperate or on the capacity of TUs to force companies to apply the agreement. Long list of provisions for the implementation of an IFA/GFAs and its effective monitoring. These elements are key, if the agreement is to have any real impact (role of national trade unions). In general, implementation & monitoring of the agreement is the responsibility of a joint committee of the signatory parties which may meet once or twice a year.

12 GUF’s recommendations to improve IFAs/GFAs (1)
All IFAs/GFAs must: • Refer to the Core Labour Standards, ILO conventions and the ILO MNEs Declaration • Cover all company operations throughout the world • Include a clear commitment by the MNEs that suppliers & sub-contractors adopt similar standards for their workers (full coverage of workers in the GSC) Monitor the implementation of the IFAs/GFAs with the affiliates of GUFs. Suppliers and sub-contractors account for many IFA/GFAs violations and affiliates should develop specific strategies for organizing in these workplaces and for enforcing labor rights Core Labour Standards of the ILO, mentioned in the IFA/GFAs, should take precedence over national laws in case the latter are less favorable than the respective ILO Conventions

13 GUF’s recommendations to improve IFAs/GFAs (2)
Establishing union networks is of primary importance and should be prioritized Strenthening global and national labour relations MNEs must ensure the agreement is disseminated in the appropriate local languages spoken or understood by the workers throughout the company’s operations to all workers & managers AND to all suppliers and sub-contractors

14 Inter-union relations and international CB
CB is usually the job of national level unions (negotiation of wages, social benefits, working conditions). How this role can be coordinated with the Global Union Federations? How the interests of workers can be globally promoted? Sharing of responsibilities and link up various bargaining levels. What does this imply for structures and functioning of national and international unions?

15 IFA and the ILO Key questions: Involvement of the ILO in IFAs/GFAs.
Challanges for the ILO Meeting of experts on cross border social dialogue and due diligence

16 1) Involvement of the ILO in IFAs/GFAs
IFAs/GFAs are based on International Labour Standards (rights based approach) Specific tool; the ILO MNEs Declaration Tripartite structure and constituents’ relation with GUFs and MNEs. IFAs/GFAs are part of industrial relations and deal with labour issues; mandate of ILO to promote labour relations in GSC IFA/GFAs signed at the ILO (Inditex & Telefonica). ILO seen as a guarantee for the agreement Mananagement of sectoral tripartite meetings

17 ILO's Tripartite Declaration on Multinational Enterprises and Social Policy
It provides a usefull point of reference for unions and companies considering drawing up IFAs This Declaration provides recommendations on what would be desirable behaviour of enterprises with regard to employment, equality of opportunity and treatment, skills training, working conditions, occupational safety and health, and industrial relations. Dispute resolution; conciliation, mediation and arbitration (presented in the annex of the Declaration)

18 2) Challanges for the ILO
Increase the focus on labour relations and sustainability (connect national systems to supply chains / international labour relations) instead of CSR Promotion of IFA/GFAs as effective tools for the governanace of GSC Technical assistance & capacity building

19 Challanges for the ILO (2)
Promote the MNE Declaration; how to rebuild an authoritative role for the ILO for the governance of GSC Offering space for conciliation, mediation and arbitration, if requested by the social partners Development of new global sectoral agreements between GUFs and MNEs / Brands with the involvment of the ILO (eg. Accord)

20 3) Meeting of experts on cross border social dialogue and due diligence
1) Challanges for workers’ organisations 2) Challanges for employers/MNEs 3) Challanges for the ILO Role of labour relations for strenthening governance in GSC

21 Meeting of experts on cross border social dialogue and due diligence
What do we need to get out of this meeting???

22 Many thanks for your attention…..


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