1 / 15

Labour Issues and EBRD

The European Bank for Reconstruction and Development (EBRD) is committed to promoting sustainable development by integrating labour rights and human rights into its operational mandate. Founded in 1991 and capitalized at €20 billion, EBRD is the largest single investor in Central and Eastern Europe and the CIS, focusing on private sector-driven projects. The bank assesses countries' human rights records annually, with strict lending criteria. This article explores EBRD's approach to tackling labour standards, encouraging trade unions, promoting non-discrimination, and ensuring compliance with ILO conventions through rigorous due diligence processes.

platt
Télécharger la présentation

Labour Issues and EBRD

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Labour Issues and EBRD Alke Schmidt Environment Department, EBRD

  2. EBRD • AAA-rated international financial institution founded in 1991 • Mandate: facilitate the transition to market economies in CEE/ CIS • Capital base of €20 billion • Largest single investor in the region • Project finance • Over 70% private sector/privatisation projects • Sound banking principles

  3. A strong mandate in EBRD’s Founding Agreement • Requires a commitment from EBRD members to respect human rights as a condition of membership and borrowing • EBRD to promote sustainable development “in the full range of its activities” • EBRD to foster productive investment…thereby assisting in making a competitive environment and raising productivity, the standard of living and conditions of labour.

  4. Operationalising the mandate: Policy/Portfolio level • Countries’ human rights record assessed annually in country strategies. Lending may be restricted or suspended if lack of progress • Assessment criteria explicitly include • Right to form trade unions and to strike • Rights of ethnic minorities (cf ‘Political Mandate Papers’, 1991/93)

  5. Operationalising the mandate: Project level EBRD Environmental Policy (2003) covers • Ecological issues • Worker protection issues • Occupational health and safety • Child labour, forced labour, non-discrimination • Community issues

  6. How does EBRD assess labour issues? • Process managed by Environment Department (ED) • Integrated into ED’s due diligence • Risk-based, iterative procedure: • Screen all projects (risk assessment) • Due diligence may include questionnaires or site visits by ED / consultants • Focus resources on high risk projects • Process developed in consultation with other IFIs, ILO, experts

  7. Labour standards risk assessment • Credit risk (fines, loss of markets, productivity) • Reputational risk • Risk indicators: • Country • Industry / sector • Client policies / compliance record / reputation • Employment impact of EBRD financing

  8. Benchmarks • All projects must meet • National laws • ILO conventions on child labour, forced labour, discrimination • Additional benchmarks are • EU (re discrimination) • For remediation: private sector good practice

  9. What if there is a problem? • Key is to move towards compliance • i.e. reject financing only in extreme cases • Action plan to achieve compliance with national law / ILO standards within a reasonable time frame • Often changes in client’s HR policies required • Enforcement agencies may impose corrective action plan • Client reporting on action plan implementation

  10. Legal documentation • All projects: Covenant on compliance with national labour laws and ILO standards in template legal documents • Covenant on Action Plan implementation if required • Reporting on covenant labour compliance/action plan implementation as part of annual reporting on environmental and social matters

  11. Monitoring • Client reporting • Monitoring visits by EBRD staff and/or labour experts • Third party audits • Role of NGOs/media

  12. Resources and support • 1 ED staff, plus labour expert consultants on retainer • All ED environmental staff trained on labour issues and risk assessment • Basic training for bankers on labour issues • Country fact sheets, sample questionnaires, ‘case book’ on project work • N.B.: This takes time!

  13. Main issues to date • Regulatory compliance • Work hours /overtime in supermarket chain • Retrenchment in privatisation/restructuring • Exploitation of migrant workers in construction • Endemic problems in country/region • Supply chain issues • Child/forced labour in cotton supply chain in Central Asia

  14. Outlook • Revision of Environmental Policy in 2006 offers opportunity to broaden scope and weight of social assessment • Need to clarify supply chain requirements • Process of continuous learning and improvement • Share experiences with others

  15. Labour Issues and EBRD Alke Schmidt Environment Department, EBRD

More Related