How Should Unions Respond to Globalisation? ICTU Economic Conference ICTU Economic Conference DUBLIN 23 April 2008 DUBLIN 23 April 2008 John Evans John.

How How ShouldShould Unions Unions Respond to Globalisation? Respond to Globalisation?

ICTU Economic Conference ICTU Economic Conference DUBLIN 23 April 2008DUBLIN 23 April 2008

John EvansJohn Evans Trade Union Advisory Committee to the OECDTrade Union Advisory Committee to the OECD

SummarySummary

Trade Unions and OECDTrade Unions and OECD Economic background – Rising InequalityEconomic background – Rising Inequality Economic & Financial crisis 2008Economic & Financial crisis 2008

Trade Union medium term priorities on Trade Union medium term priorities on globalisationglobalisation

An example: Trade Union cases raised An example: Trade Union cases raised under OECD Guidelines for MNEunder OECD Guidelines for MNE

Other priorities for TUACOther priorities for TUAC

Trade Unions and OECD Trade Unions and OECD

TUAC as part of Global UnionsTUAC as part of Global Unions Why seek to influence the OECD?Why seek to influence the OECD? Ideological Centre of gravity on Ideological Centre of gravity on

national policy-Jobs Strategynational policy-Jobs Strategy In theory across government In theory across government

approachesapproaches « Hub » of globalisation« Hub » of globalisation Expansion of membershipExpansion of membership

BackgroundBackground

Context of Globalisation 2007Context of Globalisation 2007 What record on “decent work”What record on “decent work”

• Falling Unemployment across OECD Falling Unemployment across OECD CountriesCountries

• But Declining share of wages in national But Declining share of wages in national incomeincome

• Rising Inequality and unequal reduction in Rising Inequality and unequal reduction in povertypoverty

• Impact of “Financialisation”Impact of “Financialisation”

Rising inequalityRising inequality

Declining share of wages in national YDeclining share of wages in national Y

Rising inequalityRising inequality

Economic & Financial Crisis 07-08Economic & Financial Crisis 07-08

US Sub-prime mortgage debtUS Sub-prime mortgage debt Contamination through Contamination through

securitisationsecuritisation International chain reactionInternational chain reaction Bank collapsesBank collapses Fall of the dollarFall of the dollar Sovereign Wealth FundsSovereign Wealth Funds Food price explosionFood price explosion

Economic Policy PrioritiesEconomic Policy Priorities

Put a floor in credit and housing Put a floor in credit and housing marketsmarkets

Need for fiscal and monetary stimulus Need for fiscal and monetary stimulus outside the US (unions agree with IMF!)outside the US (unions agree with IMF!)

Reregulate financial markets in the Reregulate financial markets in the medium termmedium term

« This must not happen again »« This must not happen again »

Medium Term Trade Union Medium Term Trade Union Priorities on globalisationPriorities on globalisation

Guarantees on Core Labour Standards in all Guarantees on Core Labour Standards in all International InstitutionsInternational Institutions

Collective Bargaining as “global public good”Collective Bargaining as “global public good” Negotiating space in international industrial Negotiating space in international industrial

relationsrelations• Global Framework AgreementsGlobal Framework Agreements

Using market powerUsing market power• Pension funds: responsible investmentPension funds: responsible investment

Using regional regulation – the EUUsing regional regulation – the EU Rules for Multinational EnterprisesRules for Multinational Enterprises

OECD MNE GuidelinesOECD MNE Guidelines

Drawn up in 1976 revised in 2000Drawn up in 1976 revised in 2000

Government reactions to Government reactions to « accountability crises »« accountability crises »

Major change in implementation Major change in implementation mechanisms- role of National Contact mechanisms- role of National Contact Points agreed in 2000Points agreed in 2000

Cases and sanctionsCases and sanctions

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

Nr of breaches submitted as case by TU

6

7

7

12

7

11

3

5

7

6

3

3

3

9

0 2 4 6 8 10 12 14 16

2001

2002

2003

2004

2005

2006

2007

Adhering Non-Adhering

OECD Guidelines CasesOECD Guidelines Cases Types of leading breaches:Types of leading breaches:

Anti-union behaviourAnti-union behaviour

No consultation on restructuringNo consultation on restructuring

No enforcement of contractNo enforcement of contract

Threat to relocate offshoreThreat to relocate offshore

No information on financial performance of firmNo information on financial performance of firm

Problems with occupational health & safetyProblems with occupational health & safety

VariousVarious

45%45%

19%19%

16%16%

2%2%

2%2%

1%1%

15%15%

OECD Guidelines CasesOECD 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

0

5

10

15

20

25

30

35

Africa Latin America North America Europe Asia

Anti-union behaviour Consultation on restructuring

Enforcement of contract Threat to relocate offshore

Inform on corporate performance Occupational Health and Safety

Various

OECD Guidelines CasesOECD Guidelines Cases Of all closed cases (53):Of all closed cases (53):

• In half of the cases (28) we have at least some In half of the cases (28) we have at least some positive outcomepositive outcome

In 45%: Intermediation of NCP was very helpfulIn 45%: Intermediation of NCP was very helpful In 45%: Pressure on the company (via different ways) In 45%: Pressure on the company (via different ways)

without help of the NCPwithout help of the NCP In 10%: court outcome in favour of TU which leaded to In 10%: court outcome in favour of TU which leaded to

some positive outcomesome positive outcome

• In 61% of the closed cases, there is a public In 61% of the closed cases, there is a public statement made by the NCPstatement made by the NCP

OECD Guidelines CasesOECD Guidelines Cases

Implementation: influenced by the structure:Implementation: influenced by the structure:• Only governmental departmentsOnly governmental departments

27 NCP27 NCP

• Bipartite Bipartite 1 NCP: Romania1 NCP: Romania What about the objectivity?What about the objectivity?

• TripartiteTripartite 9 NCP: Belgium, Denmark, Estonia, France, Latvia, 9 NCP: Belgium, Denmark, Estonia, France, Latvia,

Lithuania, Luxemburg, Norway, SwedenLithuania, Luxemburg, Norway, Sweden

• Quadripartite:Quadripartite: 2 NCP: Chile, Finland2 NCP: Chile, Finland

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

0

2

4

6

8

10

12

14

16

18

BELCAN

CHILE

POL

SWIS

S

CZECH

JAP

BRAZFRA

KOR UK US NL

nr cases as leading NCP nr cases as 2nd ncp

OECD Guidelines CasesOECD Guidelines Cases

ConclusionsConclusions: OECD guidelines for MNE : OECD guidelines for MNE • ““Far from perfect” but still usefulFar from perfect” but still useful• if more political willif more political will more effective tool more effective tool

Within the OECDWithin 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 focus More regional focus

G8 declarationG8 declaration Coherence between instrumentsCoherence between instruments OECD/ILO Round Table June 2008OECD/ILO Round Table June 2008

• More Information at www.tuac.orgMore Information at www.tuac.org

Other TUAC prioritiesOther TUAC priorities OECD Jobs strategy versus going for OECD Jobs strategy versus going for

growthgrowth Mainstreaming distribution & equity Mainstreaming distribution & equity

issues issues OECD Enlargement and Enhanced OECD Enlargement and Enhanced

EngagementEngagement Combatting climate change – green Combatting climate change – green

jobs and greening the workplacejobs and greening the workplace Education – quality public servicesEducation – quality public services