1. Decent Work in Global Supply Chains and EPZs –role of international instruments and frameworks Githa Roelans – Head, Multinational enterprises unit
Global instruments/frameworks
OECD Guidelines
ILO MNE Declaration
UN Global Compact 10 Principles: initiative
How do these relate to one another?

2. International instruments and frameworks
Comply with national law = obligations for all enterprises (local, small, large, multinational)
And “Respect for principles of internationally agreed standards”  international instruments and frameworks to guide international business behaviour
Policy coherence in these international instruments  consistent guidance for enterprises

3. 1. Which instruments and in which context?

4. Which instruments and in which context?
ILO standards
FPRW
MNE Declaration
OECD MNE Guidelines
UN Guiding Principles on Business and Human Rights (UNGPs)
10 Global Compact Principles
ISO 26000

5. Which instruments and in which context?
Government
Business
Trade unions
Multistakeholder
Legislation
Corporate codes of conduct
Complaints mechanisms
Initiatives and coalitions
Trade and Investment agreements
Supplier codes
Social dialogue and collective bargaining
Sectoral codes
CSR policies
International Framework agreements
Procurement policies

6. Fundamental principles and rights at work
Respect freedom of association and the right to bargain collectively
End forced labour
End child labour
Fight discrimination
Commits all ILO member States (irrespective of ratification of convention) to promote and to realize these fundamental rights and principles  moral duty to respect
Incorporated in MNE Declaration – calling on all parties to contribute to realization of the FPRW

7. Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy (MNE Declaration)
Only ILO instrument with recommendations directly addressed to enterprises in addition to government and social partners
Only global tripartite instrument related to labour dimension of business conduct
encourage positive contribution of MNEs and mitigate and resolve negative impacts
Rooted in dialogue, including social dialogue
Balances roles and responsibilities of governments, MNEs, employers and workers’ organizations of host and home countries
March 2017: Governing Body adopts revised text and two new annexes – SDGs, UN Guiding Principles, “business relationships”
Instrument adopted in 1977 and updated several times to include the most recent conventions and declarations. The most recent revision dates back to 2006.

8. Recommendations in five areas (government – enterprises)
General policies
- Governments
- Enterprises
- Fundamental principles and rights at work
- Due diligence
- Consultations between home and host country governments
Employment
- Employment promotion
- Social Security
- Forced labour
- Child labour
- Equality of opportunity and treatment
- Security of employment
Training
- National policies for vocational training and guidance, closely linked to employment
- Provide training and lifelong learning opportunities
Conditions of work and life
- Wages, benefits and conditions of work
- Occupational safety and health
Industrial relations
- Freedom of association and right to organize
- Collective bargaining
- Consultation
- Access to remedy and examination of grievances
- Settlement of industrial disputes

9. Global supply chains and EPZ n MNE Declaration
6. Unless otherwise specified, the term “multinational enterprise” is used in this Declaration to designate the various entities (parent companies or local entities or both or the organization as a whole) according to the distribution of responsibilities among them, in the expectation that they will cooperate and provide assistance to one another as necessary to facilitate observance of the principles laid down in this Declaration. In that regard, it also recognizes that multinational enterprises often operate through relationships with other enterprises as part of their overall production process and, as such, can contribute to further the aim of this Declaration.
 «MNEs throughout their operations»
52. Where governments of host countries offer special incentives to attract foreign investment, these incentives should not include any limitation of the workers’ freedom of association or the right to organize and bargain collectively.

10. Meaning of Due Diligence and Access to Remedy in a labour context
Incorporates text from the UN Guiding Principles:
The General Principles of the «Protect, Respect and Remedy» Framework (para 10a and 10b)
The Corporate Responsibility to Respect (para 10c)
Human rights due diligence, as defined by the UNGPs (para 10d)
And highlights that the process of identifying and assessing actual or potential adverse human rights impacts should involve meaningful consultation with affected groups and other relevant stakeholders including workers’ organizations. “For the purpose of achieving the aim of the MNE Declaration, this process should take account of the central role of freedom of association, collective bargaining, industrial relations and social dialogue as ongoing processes” (para 10 e)
Builds on the “remedy” pillar of the UNGPs to strengthen its guidance on effective mechanisms for settling grievances and industrial disputes, including:
“Government measures should ensure effective access to remedy for affected workers within their territory or jurisdiction as well as voluntary conciliation and arbitration machinery” (para 64);
“Multinational enterprises should use their leverage to encourage their business partners to provide effective means for enabling remediation of abuses of internationally recognized human rights” (para 65).

11. New Annex I
Consolidates into one annex all relevant and up-to-date ILO instruments:
ILO Declarations
International labour standards organized by topic
ILO Codes of Practice, Guidelines and other guidance documents
Accessible via website of ILO Helpdesk for Business

12. Policy coherence - MNE Declaration and other CSR Instruments
ISO Social Responsibility 2010
Labour chapter
Human Rights chapter
OECD Guidelines for MNE
1976, 2000, 2011
Employment and Industrial Relations Chapter
Human Rights chapter
ILO MNE Declaration, 1977, 2000, 2006, 2017
ILO 1998
Declaration on Fundamental Principles and Rights at Work
UN Business
and Human
Rights Framework (2008) and Guiding Principles (2011)
4 Labour Principles
2 Human Rights Principles

13. OECD Guidelines : 10 Chapters
Concepts and Principles – Government to Business
General Policies – corporate citizenship
Disclosure – timely, regular, reliable and relevant
Human Rights – UN Business and Human Rights „Protect, Respect and Remedy‟ Framework
Employment and Industrial Relations – MNE Declaration
Environment – includes health and safety disclosure
Combating Bribery, Bribe Solicitation and Extortion
Consumer Interests – safety, quality, disclosure, privacy
Science and Technology – promote tech and knowledge transfer
Competition
Taxation – local compliance and timely payment
Adopted by the governments of the OECD member states in 1977 (same year as the MNE Declaration)
Adhered to by OECD and non-OECD member States.
Follow-up mechanism: network of national contact points: role to promote the Guidelines on the national level, to handle enquiries, to discusses matters related to the Guidelines and to assist in solving problems that may arise in this connection. When issues arise concerning implementation of the Guidelines in relation to specific instances of business conduct, the NCP is expected to help resolve them.
Common standards on employment and industrial relations and ILO referenced as “competent body on international labour standards”.
Instrument updates and revision; joint events and promotional activities.
Updated in 2011 to include chapter on human rights and due diligence concept throughout the chapters of the Guidelines –

14. 10 Global Compact Principles: Business should...
support and respect the protection of internationally proclaimed human rights 2
ensure that their own operations are not complicit in human rights abuses 3
uphold the freedom of association and the effetive recognition of the right to collective bargaining 4
uphold the elimination of forced or compulsory labour 5
uphold the effective abolition of child labour 6
uphold the elimination of discrimination in respect of employment and occupation 7
support a precautionary approach to environmental challenges 8
undertake initiatives to promote greater environmental responsibility 9
encourage the development and diffusion of environmentally friendly technologies 10
work against all forms of corruption, including extortion and bribery
The UN Global Compact initiative launched in 2000 by the then UNSG Kofi Annan
Incorporates the core labour standards as four of its ten principles. All four Labour Principles have underlying ILO Conventions, providing the normative basis for policies and action in this area.

15. UN Guiding Principles on Business and Human Rights
« State Duty to Protect, Business Responsibility to Respect, Access to Remedy for victims»
Human rights:
Universal Declaration of Human Rights and two covenants
Labour rights component: ILO 1998 Declaration of Fundamental Principles and Rights at Work
«Due diligence» approach to ensure that there is no negative impact including in business contracts

16. ISO 26000 Guidance on social responsiblity
Voluntary international standard on CSR developed by ISO
Providing guidance, not for certification
Covering 7 core subjects of social responsibility, including labour practices
In core subject on labour practices:
1998 ILO Declaration,
MNE Declaration and
other ILO Conventions

17. 2. Follow-up mechanisms
Although international policy alignment, each organization has different follow-up mechanisms
MNE Declaration: tripartite adopted and global – promoting dialogue (national tripartite; company-union; home-host)
UN GPs on Business and Human Rights: Human Rights Council – Working Group, Annual Forum – country visits – thematic reports - national action plans – research on national remedies for victims

18. New Annex II Operational tools
Promotion
Governing Body
Regional follow-up
National: tripartite appointed national focal points
Office
Technical assistance in member States
Information and guidance – ILO Helpdesk for Business
Company-union dialogue
When a company and a union voluntarily agree to take advantage of using the dialogue facilities offered by the ILO.
Facilitated and supported by ILO Office
Interpretation procedure – examination of disputes
ILO Governing Body
Application of the principles in a real situation

19. Follow-up mechanisms OECD MNE Guidelines:
governments of OECD and adhering countries  National Contact Points (NCPs): promotion and specific instances procedure
due diligence guidance as part of Responsible Business Conduct – sector due diligence guides linked to all chapters of the OECD MNE Guidelines

20. Specific Instances by chapter

21. Trends Themes
Majority of cases cite human rights chapter (4% of specific instances from to 54% from 2011)

22. Follow-up mechanisms
Global Compact: Communication on Progress – integrity measures – GC Local Networks – calls for action on SDGs

23. 3. International instruments and frameworks
How can unions work with these to engage with MNEs on decent work issues in global supply chains and in EPZs
What new opportunities offer the revised MNE Declaration text and its new operational tools?