International Instruments for Protection and Promotion of Workers’ Rights in the Era of Globalization

1. International Instruments for Protection and Promotion of Workers’ Rightsin the Era of Globalization

2. Points 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

3. International Instruments ILO • Conventions and supervisory mechanism • ILO Tripartite Declaration on MNEs and Follow-up OECD • Guidelines on MNEs UN • GLOBAL compact Private voluntary initiatives • “Old” code of conduct • “New” code of conduct • Framework agreements Policies and Strategies for Trade Unions

4. 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 through Committee on Freedom of Association ILO Declaration Annual Reviewon Non-ratified Core Standards + General Survey

5. ILO Tripartite Declaration on 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

6. 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)

7. OECD Guidelinesfor MNEs • 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

8. 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

9. 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.

10. UN Global Compact (2) - 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.

11. 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

12. Code of Conduct…(old) • Unilateral declaration, mainly for social appeal • 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!

13. 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

14. 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)

15. 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

16. Codes of Conduct (issues by frequency)

17. Codes of Conduct: Contents

18. Codes of Conduct: Contents (cont.)

19. Certification Systems and Social Quality Labels • ETI (Ethical trade Initiative, UK) • FLA (Fair Labour Association, USA) • FWF (Fair Wear Foundation, NL) • TCFUA (Textile, Clothing and Footwear Union of Australia • WRC (Worker Right Consortium, USA) • WRAP (Worldwide Responsible Apparel Production, USA) • ISEA (Institute of Social Ethical Accountability, UK) • FLO (Fair Label Organization, UE) • SA8000 (Social Accountability 8000, USA/Europe) • Social Accountability Certification for Consumers (Italy) • DET Sociale Indeks (Denmark) • Label Socialment Responsable (France)

20. Why New Codes are important for Trade Unions? New Codes are on “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

21. 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?

22. Framework Agreements “An agreement negotiated between an MNE and an international trade union organization (such a GUFs) 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 GUFs to frame “principles” of industrial relations and good labour practices

23. 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)

24. Codes of conduct and FA

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

26. Three Important Aspects for CoC and FA • Capacity of GUFs to engage in F.A. or Codes of conduct with a large number of MNEs • Capacity of MNEs to control subcontractors or supply-chains • Practical applications (implementation) of F.A.and codes of conduct in regions, countries and local communities

27. International Instruments International ILCs Framework Agreements ILO Tripartite Declaration on MNCs 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 / Tripartite Committees Labour Legislation National

28. 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 networks/IT and communication systems

29. PROGRAMME FOR WORKERS’ ACTIVITIES OF THE ILO TURIN CENTRE(ACTRAV)WWW.ITCILO.IT/ACTRAV ACTRAV-Turin