International Instruments for Global Trade Union Campaigns on Promotion of ILS

1. International Instruments forGlobal Trade Union Campaigns on Promotion of ILS Trade Union Training on FOA/CB for Leaders of Youth Committees in Asia and the Pacific Region 21 - 25 October 2002: Puncak - Indonesia

2. Challenge Today • Mission : From “Social Exclusion” to “Social Inclusion” - social justice with stability, sustainability and predictability • What’s Needed? : To reach people (workers), securing rights and extending protection to all • How? : By effectively using all means available and enhancing international solidarity

3. Points for Discussions • Summary of international instruments available for trade unions in their campaigns for core labour standards for all; • Focus on “Framework Agreements” as an new option for international trade union campaigns; • Exercise : Comparison of major F.A.s

4. Points for Trade Unions • Involvement in the supervisory/ implementation mechanisms of available international instruments

5. Summary of International Instruments International ILCs ILO Tripartite Declaration on MNCs Framework Agreements UN Global Compact CFA ILO Declaration on F.P.R.W. OECD Guidelines for MNCs Code of Conducts Social Labelling Regional Economic Agreement Public Private National Labour Relation Committee Labour Legislation National

6. ILO Conventions:Supervisory 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 by Committee on Freedom of Association ILO Declaration Annual Review + General Survey

7. ILO MNE Declaration: Background • 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

8. ILO 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 reported in Mar.)

9. OECD Guidelines: Background • Adopted in 1976, and reviewed in 2000 • Guidelines is: • Recommendations addressed by governments to MNEs • Voluntary principles and standards for responsible business conduct • Major components: NCP, CIME, and TUAC

10. OECD Guidelines : 2000 Review • Expanded Coverage • All core standards, environment performance, human rights, corruption and consumer interests • Global application, not just in OECD countries • Strengthened National Contact Point (NCPs) • handle enquiries, assist in solving problems, and report and meet annually on national experiences • promote Guidelines for effective implementation • New Actor : NGO

11. UN Global Compact • 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.

12. UN Global Compact - Labour 3. 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. - Environment 7. 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.

13. Development ofPrivate Voluntary Initiatives (PVI) As response of global community to the growing power of MNEs • Alternative Trade Organizations • Social Labelling (SL) • Codes of Conduct (COC) • New Codes of Conduct (New COC) • Framework Agreements (FA) 1970s 1990s

14. Code of Conduct…(old) • Code 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!

15. New Code of Conduct Four Major Characteristics • Purely private, voluntary initiative (PVI) • Response to the situation of poor labour standards created by the failure of national governments and of international community; • international application • Cross-cutting application to suppliers and subcontractors

16. Definition 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)

17. Number 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

18. Why New Codes are important for Trade Unions? New Codes are about “labour practice” Great potential and also danger Most companies adopt COC without involving trade unions So, they can be used as an excuse for having no union Truly applied, codes may establish ILSs as binding international framework for responsible corporate behaviour So, union’s involvement is vital

19. Why New Codes are important for 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

20. Some 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?

21. What is “Framework 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

22. Major Framework Agreements • IUF- 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)

23. Points for Observations of F.A./COC • Substance (core labor standards) • Participation (trade unions / social actors) • Social responsibility (production chains) • Independent verification • Complaint and appeals (dispute settlement) • Incentives (sanctions)

24. Exercise • Compare the following F.A.s : • IFBWW/IKEA Agreement • IUF/Colsiba-Chiquita Agreement • UNI/OTE/OTE-OME Agreement • Discuss which F.A. is the best and how these F.A.s can be improved. • Discuss whether F.A. can be effective tool for international trade union movement in general, and for Filipino workers in particular. Give reasons.

25. Two Important Aspects • Capacity of ITSs to engage in F.A. with many MNEs • Capacity of MNEs to control subcontractors or supply-chains

26. So, What Do You Think? • Do you think the issue of F.A./COC should be a new area for trade union training? • Do you think ILO/ACTRAV/Turin to pay more attention and resources in this subject area?

27. The End… ACTRAV-Turin