promoting labour standards in mnes: voluntary v/s
TRANSCRIPT
What are the key voluntary standards?
Inter-governmental
ILO MNE Declaration
OECD Guidelines
UN Global Compact
UN Framework for Business
and Human Rights
Types of “voluntary standards”
Private
Company codes , e.g., NIKE, Walmart
Industry initiatives, e.g., BSCI (Business Social
Compliance Initiative), EICC (Electronic Industry Citizenship
Coalition)
Multi-stakeholder initiatives, e.g., ETI, Workers’
Rights Consortium, Clean Clothes Campaign,
ISO 26000, IFC Performance Standards on
Social & Environmental Sustainability
ILO MNE Declaration (adopted in 1977 and amended in 2000)
Objective:
« to encourage the positive contribution
of MNEs & FDI and to minimize
difficulties caused by their operations »
Tripartite & the only global instrument agreed to by G,
E & W, provides for
Principles that MNEs should respect in host countries,
especially in labour and social matters
Seeks to promote synergies between public & private
policies
MNE Declaration offers
Framework for:
Decent Employment with rights @ work
Skills training for employability
Good working conditions
Sound industrial relations
MNE Declaration Provisions
Concerning promotion of good industrial relations (IR),
Governments should:
Apply the principles of Freedom of Association
Not include in their incentives to attract foreign investment
any limitation of the workers' freedom of association or the
right to organize and bargain collectively.
Speaking mainly to « host » governments where
companies are operating
MNE Declaration Provisions
Concerning promotion of good industrial relations (IR),
MNEs should:
Observe IRs no less favourable than those observed by
comparable employers
Respect FoA & the right to collective bargaining, provide the
facilities & information required for meaningful negotiations
Support representative employers’ organizations.
Provide for regular consultation on matters of mutual
concern.
Examine the grievances of worker(s), pursuant to an
appropriate procedure.
MNE Declaration « Interpretation »
Procedure For disputes over the meaning & application of the
provisions of MNE Declaration
Voluntary process which is promotional in nature
Limitations—requests go to tripartite committee on
receivability, which must UNAMIOUSLY conclude that the
request is receivable
Complaints are outside the scope, but can be referred to
other parts of the ILO for action.
New « dialogue facilitation » procedure
ILO Helpdesk for Business
Service launched in March 2009
To assist company managers and workers’
organizations to align private standards with ILS
Programme comprised of two services:
Individual requests from managers or workers’
representatives [email protected]
Access to the wide range of expertise and
resources across the Office
www.ilo.org/business
MNE Declaration Advantages and disadvantages
Most comprehensive concerning labour rights
Addresses both business and government
Global instrument & tripartitely agreed
But
Not widely known,: but new EC CSR strategy will
require EC to invite all EU MNEs to adhere to the
principles
No remedy for violation of rights
OECD Guidelines for MNEs
First adopted 1976; last revised May 2011
Aligned with the UN Guiding Principles on Business
and Human Rights of the ‘Protect Respect and
Remedy” Framework
Signed by governments (45, including 11 non OECD
countries) – not by MNEs
Provide (non-binding)recommendations to MNEs
Apply to MNEs with headquarters in countries that have
signed the Guidelines, wherever those MNEs operate
Cover subsidiaries as well as suppliers, investors and other
business partners of these MNEs (new concept – “adverse
impacts”)
Chapters of the OECD Guidelines
I. Concept and Principles
II. General Policies
III. Disclosure of Information
IV. Human Rights
V. Employment and Industrial Relations
VI. Environment
VII. Combating Bribery, Bribe Solicitation and Extortion
VIII. Consumer Interests
IX. Science and Technology
X . Competition
XI. Taxation
National Contact Points
Governments that sign the Guidelines are required to
establish National Contact Points (NCPs) to resolve
issues arising under the Guidelines including handling
cases/complaints of breaches of the Guidelines:
Complaints mechanism:
1. Conciliation/Mediation (problem-solving)
2. Recommendations on future implementation of the GL
3. Examination to determine a breach of the Guidelines
Complaints mechanism is a unique characteristic of the
Guidelines
Filing Cases/Complaints
No complaints mechanism at the OECD
Complaints filed with the National Contact Points
If the violation takes place in a country that has signed
the Guidelines – then the case should be filed with the
host country NCP
If the violation takes place in a country that has not
signed the Guidelines then the case should be filed with
the home country NCP
Landmark successes : IUF and Unilever
Unilever (food): Brooke Bond & Lipton’s tea factory
NCP: UK - Factory in Pakistan (Khanewal)
Issue: precarious work/abusive use of temporary contracts/
agency work (22 v 723):
Provisions of the Guidelines: right to organise (V. 1a)
NCP Role: Provided external mediation - led to an
agreement between IUF and Unilever – providing for
200 permanent positions at Khanewal, in addition to the
existing 22 positions at this facility AND use of contract
agency workers (labour engaged through third party service
providers) only in case of ancillary, non-manufacturing and
seasonal positions http://www.bis.gov.uk/files/file49308.doc
BUT FAILURES TOO - High to low performing NCPs
- NCPs have common rules
- visible, transparent, accountable, impartial,
predictable and equitable
- No common performance
- Challenge: Strengthen NCP Performance
- Key obstacles to success
- Other legal proceedings (parallel proceedings)
- Timescales
- Getting parties (companies) to mediation
Key Resources for OECD Guidelines
TUAC web site on trade union
cases and NCP performance:
http://www.tuacoecdmneguideline
s.org/home.asp
OECD Watch web site on NGO
cases: http://oecdwatch.org/
OECD web site:
http://mneguidelines.oecd.org
UN Global Compact
Backed by the United Nations
Supported technically by other international
organizations, including ILO
« Labour Working Group » secretariat includes
representatives of ITUC and IOE
Global Compact Labour Principles
1 Support & respect internationally proclaimed human rights
2 Ensure that their operations are not complicit in human rights
abuses
3 Uphold FoA & recognition of the right to collective bargaining
4 Uphold elimination of forced or compulsory labour
5 Uphold effective abolition of child labour
6 Uphold elimination of discrimination in employment & occupation
7 Support precautionary approach to environmental challenges
8 Undertake initiatives to promote environmental responsibility
9 Encourage the development & diffusion of environmentally
friendly technologies
10 Work against all forms of corruption, including extortion & bribery
Business should...
IFC Performance Standards
1: Social & Environmental Assessment & Management System
2: Labor and Working Conditions [ apply to employees, non
employee workers & also in supply chains]
3: Pollution Prevention and Abatement
4: Community Health, Safety and Security
5: Land Acquisition and Involuntary Resettlement
6: Biodiversity Conservation and Sustainable Natural Resource
Management
7: Indigenous Peoples
8: Cultural Heritage
Areas of ILS covered in PS2
Wages and benefits
Hours of work
Sickness and maternity leave
Annual leave
Workers’ Organizations: national law or parallel means
Non-Discrimination and Equal Opportunity
Retrenchment
Grievance Mechanism
Child Labor
Forced Labor
OHS
UN "Respect, Protect and Remedy"
framework « Ruggie Framework »
Governments duty to PROTECT people from human rights abuses, including in connection with business activity; businesses responsibility to RESPECT; & Obligation of both government & business to provide a REMEDY for violations of rights Addresses both companies and governments
MNEs responsible for supply chain operations
Approach: Instead of naming & shaming, knowing & showing: due diligence requires companies to give special attention to high-risk sectors and countries
Obligation to provide remedies has great potential for Trade Union action
Working Group on business & human rights set up to follow up
UN Business and Human Rights Framework:
Limitations
Companies are encouraged, but not obliged, to respect
human rights
Guidance isn't enough – mechanisms needed to
scrutinize how companies & governments apply these
principles
Too early to tell how the Working Group on business &
human rights and annual Forum on business & human rights
will operate
No working group members have labour backgrounds
ISO 26000
Guidance on social responsiblity
Voluntary international standard on CSR developed by International Organization for Standardization (ISO)
Provides 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
ISO 26000 Guidance on social responsiblity
Advantages
Contains some provisions which go beyond ILS
Reaches companies which may not otherwise be
reached, e.g., companies operating in Asia and Arab
States
Disadvantages
Much like a management system
No enforcement
No remedies available
Codes: What happens in practice
Codemonitoringremediationreporting
Monitoring has brought about limited change
Issues of poor training, hasty assessments, lack of
input from workers or worker coaching, corruption
« static » snapshot taken only periodically
No sanction for non-compliance
Procurement officers typically ignore findings
Remediation rarely based on IR approach
Limits of voluntary standards Not a rights-based approach
Creates a lottery approach to respect for workers’
rights
Risk that governments will off-load their
responsibility to protect workers’ rights
Reinforces notion that market solutions are always
better than government solutions
Paternalistic model doesn’t address, and often
aggrevates, power imbalances
Negotiated Instrument:
International Framework Agreements
Negotiated between a GUF and an MNE, with
joint oversight of implementation
Formal recognition of social partnership
Can apply to MNE employers, supply chain
workers or both
Compliments national and local agreements
(baseline for collective bargaining)
Current number – over 100