International Instruments for Protection and Promotion of International Labour Standards in the Era of Globalization.

International Instruments for International Instruments for Protection and Promotion of Protection and Promotion of

International Labour StandardsInternational Labour Standardsin the Era of Globalization in the Era of Globalization

Challenges TodayChallenges TodayMission for Trade Unions:

From “Social Exclusion” to “Social Inclusion” - social justice with stability, sustainability and predictability

What’s Needed?:To reach as many workers as possible, assuring their rights can be secured

How?By effectively and maximally utilizing all means available for protecting and promoting core standard

Points for DiscussionsPoints for Discussions

Summary of international instruments available for trade unions in their campaigns for core labour standards;

Focus on multinational enterprises as a focal point for trade union campaigns

Regional Economic Agreement

National Labour Relation / Tripartite

Committees

ILO Tripartite Declaration on

MNCs

Summary of International InstrumentsSummary of International InstrumentsInternational

National

Private Public

ILO Declaration on F.P.R.W.

Framework Agreements

Code of Conducts

Social Labelling

Labour Legislation

CFAILCs

UN Global Compact

OECD Guidelines for MNCs

ILO Conventions:ILO Conventions:Supervisory MechanismSupervisory Mechanism

For Ratified Conventions– Article 22 Report - Review by CEACR

– Article 24 : Representation

– Article 26 : Complaint

For Non-Ratified Conventions– Article 19(5-e) Report

For Freedom of Association matters– Special procedure through Committee on Freedom

of Association

Annual Reviewon Non-ratified Core StandardsGeneral Survey

ILO Declaration

++

ILO Tripartite Declaration on ILO Tripartite Declaration on Principles concerning MNEs Principles concerning MNEs

Adopted in 1977 by GB (amended in 2000) as a voluntary instrument to:– Regulate conduct of MNEs– Define the terms of MNEs relations with host

countries, esp. in labour-related and social issues

Aims for:– Enhancing the positive social and labour effects of

the operations of MNEs

ILO MNE Declaration : Follow-upILO MNE Declaration : Follow-up

A Procedure adopted by GB in 1980 (revised in 1986) as promotional tool to:– provide for the submission of requests for

interpretation in cases of dispute on the meaning/application of its provisions

Survey– The effect given to the principles of the

Declaration is “monitored” through a periodic survey (7th Survey for 96-99)

OECD Guidelines for MNEsOECD Guidelines for MNEs

Adopted in 1976, and reviewed in 2000Guidelines is:

– Recommendations addressed by governments to MNEs

– Voluntary principles and standards for responsible business conduct

Major components: NCP, CIME, and TUAC

OECD Guidelines : 2000 ReviewOECD Guidelines : 2000 ReviewExpanded Coverage

– All core standards, environment performance, human rights, corruption and consumer interests

– Global application, not just in OECD countriesStrengthened National Contact Point (NCPs)

– handle enquiries, assist in solving problems, and report and meet annually on national experiences

– promote Guidelines for effective implementationNew Actor : NGO

UN Global Compact (1)UN Global Compact (1)

Shared value for the global market, promoting global citizenship

9 Principles– Human Rights

1. Businesses should support and respect the protection of internationally proclaimed human rights.

2. Make sure they are not complicit in human rights abuses.

UN Global Compact (2)UN Global Compact (2)

- Labour3. Businesses should uphold the freedom of association and the effective

recognition of the right to collective bargaining;4. The elimination of all forms of forced and compulsory labour;5. The effective abolition of child labour; 6. Eliminate discrimination in respect of employment occupation.

- Environment7. Business should 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.

Development ofDevelopment ofPrivate Voluntary Initiatives (PVI)Private Voluntary Initiatives (PVI)

As response of global community to the growing power of MNEs

Alternative Trade OrganizationsSocial Labelling (SL)Codes of Conduct (COC)New Codes of Conduct (New COC)Framework Agreements (FA)

1970s

1990s

Code of Conduct…(old)Code of Conduct…(old)

Unilateral declaration, mainly for social appealCode of conduct for business

– consumer rights, product safety or environmental protection

– ethical behaviour codes for employees

Code of conduct for international business– ILO MNE Declaration– OECD Guidelines for MNEs– attempt by UN to set a global code

Note:These are not VPIs!

New Code of ConductNew Code of Conduct

Four Major CharacteristicsPurely private, voluntary initiative (PVI)Response to the situation of poor labour

standards created by the failure of national governments and of international community;

international applicationCross-cutting application to suppliers and

subcontractors

Definition of New Code of ConductDefinition of New Code of Conduct

“Commitments voluntarily made by companies, associations or other entities which put forth standards and principles for the conduct of business activities in the marketplace”

(“Workers’ tool or PR ploy?” – by Dr. I. Wick)

Number of New CodesNumber of New Codes

246 codes (June 2000 by OECD study)- 118 by individual companies, 92 by industry and

trade associations, 32 by partnerships between stakeholders and 4 by inter-governmental organizations

- Only 163 mention monitoring- Only 30% mention freedom of association, and

only10.1% refer to ILO codes

Why New Codes are important for Why New Codes are important for Trade Unions?Trade Unions?

New Codes are on “labour practice”

Most companies adopt COC without involving trade unions So, they can be used as an excuse

for having no union

So, they can be used as an excuse for having no union

Great potential and also danger

Truly applied, codes may establish ILSs as binding international framework for responsible corporate behaviour So, union’s involvement is vitalSo, union’s involvement is vital

Why New Codes are important for Why New Codes are important for ILO/ACTRAV?ILO/ACTRAV?

If truly applied, codes may establish ILSs as binding international framework for responsible corporate behaviour

ILO/ACTRAV Need to:

- Know pros and cons of new codes of conducts

- Establish basic criteria/standards for verification

- Train workers’ organizations

Some Questions to be ConsideredSome Questions to be Considered

Can codes really promote freedom of association and collective bargaining?

Should national trade union organizations negotiate codes with MNEs?

Should trade unions be responsible for implementation/monitoring of codes?

What are credible systems of verification?

Framework AgreementsFramework Agreements

“An agreement negotiated between an MNE and an international trade union organization (such as an ITS) concerning the international activities (or behaviour)of the company”

Main purpose of framework agreements is to establish an ongoing relationship between the MNE and the ITS to frame “principles” of industrial relations and good labour practices

Major Framework AgreementsMajor Framework AgreementsIUF

- Danone (1988), Accor hotel group (1995), Nestle (1996), Del Monte (2000) and Chiquita (2001)

IFBWW- Ikea (1998), Faber-Castell (2000), Hochtief (2000)

ICEM- Statoil (1998), Freudenberg (2000)

UNI- Telefonica (2000), OTE (2001), Carrefour (2001)

Points for Observations of F.A./COCPoints for Observations of F.A./COC

Substance (reference to core labor standards)Participation (trade unions / social actors)Social responsibility (production chains)Independent verificationComplaint and appeals (dispute settlement)Incentives (sanctions)

Exercise 1Exercise 1

1. Compare the following F.A.s :① IFBWW/IKEA Agreement

② IUF/Colsiba-Chiquita Agreement

③ UNI/H&M Agreement

2. Discuss which F.A. is the best and how these F.A.s can be improved.

3. Discuss whether F.A. can be effective tool for international trade union movement in general, and for Filipino workers in particular. Give reasons.

Three Important AspectsThree Important Aspects

Capacity of ITSs to engage in F.A. with many MNEs

Capacity of MNEs to control subcontractors or supply-chains

Practical applications (implementation) of F.A. in regions, countries and local communities

So, What Do You Think?So, What Do You Think?

Do you think the Framework Agreements can be a new tool for trade union campaigns?

How do you think national/local trade unions can maximally use F.A.?

Policy and Strategy for T.U.Policy and Strategy for T.U.

Set up institutional mechanisms and capacities to fully utilize all the available international instruments– Regular reporting

– Complaints procedures in case of violation

– Multilateral approaches to problem-solving

Importance of International, Regional, and Sub-regional trade union network

Exercise 2: Case StudyExercise 2: Case Study

1. Consider the following case and see what the trade union can do:

In a newly set-up EPZ in a beautiful island country, called DREAMLAND, a Japanese electronic company ISHIBASHI has been continuously harassing leaders of employees in a bid to prevent the formation of a trade union in its factory.

2. Now, think about:- What options do you have to help the workers?- What information do you need to know?

The End…The End…

ACTRAV-Turin