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ILO CORE LABOUR STANDARDS and OECD GUIDELINES FOR MULTINATIONAL ENTERPRISES

ILO CORE LABOUR STANDARDS and OECD GUIDELINES FOR MULTINATIONAL ENTERPRISES. ILO CORE LABOUR STANDARDS & OECD GUIDELINES FOR MULTINATIONAL COMPANIES. INTRODUCTION The International Labour Organisation (ILO) Core Labour Standards and

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ILO CORE LABOUR STANDARDS and OECD GUIDELINES FOR MULTINATIONAL ENTERPRISES

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  1. ILO CORE LABOUR STANDARDS andOECD GUIDELINES FOR MULTINATIONALENTERPRISES

  2. ILO CORE LABOUR STANDARDS &OECD GUIDELINES FOR MULTINATIONALCOMPANIES INTRODUCTION • The International Labour Organisation (ILO) Core Labour Standards and the OECD Guidelines for Multinational Enterprises are 2 international instruments that can be used by organisations or individuals which are not directly affected by a violation of trade union rights. • The ILO Core Labour Standards are international legal instruments (international conventions) and the OECD Guidelines are soft law instruments (guidelines). • However, they may both be considered to be soft lawinstruments, because in both cases no effective mechanisms have yet been designed to ensure enforcement of the principles they promote.

  3. ILO CORE LABOUR STANDARDS &OECD GUIDELINES FOR MULTINATIONALCOMPANIES The two instruments refer to fundamental trade union rights, i.e.: The right to freedom of association and the right to collective bargaining (The OECD Guidelines refer to additional workers’ representatives right, such as the right to information and consultation, etc…). The two instruments use two different channels to promote fundamental trade union rights : the legal obligations of States/Governments to comply with international conventions they have ratified (ILO), The good will of Multinational Enterprises to live up to their commitments to respect fundamental human and labour rights and good governance principles (OECD).

  4. ILO CORE LABOUR STANDARDS &OECD GUIDELINES FOR MULTINATIONALCOMPANIES STRUCTURE OF THE PRESENTATION Brief overview of the International Labour Organisation (ILO) and of the Organisation for Economic Cooperation and Development in Europe (OECD) Introduction to the Core Labour Standards and to the Guidelines How can trade union and/or EWCs use the complaint mechanisms Conclusion

  5. ILO CORE LABOUR STANDARDS &OECD GUIDELINES FOR MULTINATIONALCOMPANIES 1. Brief overview of the International Labour Organisation (ILO) and of the Organisation for Economic Cooperation and Development in Europe (OECD) ---------------- The International Labour Organisationwas created in 1919, as part of the Treaty of Versailles. Trauma of the first world war. The preamble of the ILO Constitution states that : « Universal and lasting peace can be accomplished only if it is based on social justice ».

  6. ILO CORE LABOUR STANDARDS &OECD GUIDELINES FOR MULTINATIONALCOMPANIES • The preamble of the Constitution of the ILO, recognises that: • “Where social injustice, hardship and privation exist peace and harmony are imperiled”, 2. “The failure of any nation to adopt humane conditions of labour is an obstacle in the way of other nations which desire to improve the conditions in their own countries”. • Therefore the ILO assigns itself the following objectives : • Strengthen tri-partism and social dialogue • Promote and realise standards and fundamental principles and rights at work • Enhance the coverage and effectiveness of social protection for all

  7. ILO CORE LABOUR STANDARDS &OECD GUIDELINES FOR MULTINATIONALCOMPANIES • The ILO is the only tri-partite international organisation : Employers, trade unions and governments are all represented. • The three parties negotiate and draft international labour conventions/standards. Convention will then be adopted by the International Labour Conference(held every year in June in Geneva, Switzerland). Once a convention is adopted, it will become binding to a Member State if it is ratified by its national Parliament. • Basic trade union rights(freedom of association & collective bargaining) are fundamental labour rights which are embedded in ILO conventions.

  8. ILO CORE LABOUR STANDARDS &OECD GUIDELINES FOR MULTINATIONALCOMPANIES • The Organisation for Economic Cooperation and Development was created in 1948 after the second world war. • Its original mission was to administer the funds of the Marshall Plan and only gathered European countries. • Today it is a Forum of 30 countries « committed to democracy and the market economy », • It provides statistic, economic and social data, analyses of economic development and, act as a fierce advocate of free market and free trade policies, • The OECD does not produce legislation.

  9. ILO CORE LABOUR STANDARDS &OECD GUIDELINES FOR MULTINATIONALCOMPANIES 2. Introduction to the ILO Core Labour Standards and the OECD Guidelines ---------------- THE ILO CORE LABOUR STANDARDS • The ILO Declaration on Fundamental Principles and Rights at Work Adopted in 1998, the Declaration commits Member States to respect and promote principles and rights in 4 categories, whether or not they have ratified the relevant Conventions.

  10. ILO CORE LABOUR STANDARDS &OECD GUIDELINES FOR MULTINATIONALCOMPANIES ILO CORE LABOUR STANDARDS These 4 categories are: • freedom of association and the effective recognition of the right to collective bargaining, • the elimination of forced or compulsory labour, • the abolition of child labour, and • the elimination of discrimination in respect of employment and occupation. (Convention 87 – Freedom of Association and Protection of the Right to Organise, Convention 98 - Right to Organise and Collective Bargaining, Convention 29 – Forced Labour, Convention 105 - Abolition of Forced Labour, Convention 111 – Discrimination (Employment and Opportunity), Convention 100 – Equal Remuneration, Convention 138 – Minimum Age, Convention 182 – Worst Forms of Child Labour) (These are universal rights, they apply to all people in all States - regardless of the level of economic development)

  11. ILO CORE LABOUR STANDARDS &OECD GUIDELINES FOR MULTINATIONALCOMPANIES FREEDOM OF ASSOCIATION & EFFECTIVE RECOGNITION OF THE RIGHT TO COLLECTIVE BARGAINING These two fundamental rights are recognised in ILO Conventions n°87 (1948) and 98 (1949) Convention n°87 “ Workers..., shall have the right to : • establish and to join organisations of their own choosing without previous authorisation.” • “to draw up their constitutions and rules, to elect their representatives in full freedom, to organise their administration and activities and to formulate their programmes.” “The public authorities shall : • refrain from any interference which would restrict this right or impede the lawful exercise thereof”. • take all necessary and appropriate measures to ensure that workers and employers may exercise freely the right to organise.

  12. ILO CORE LABOUR STANDARDS &OECD GUIDELINES FOR MULTINATIONALCOMPANIES FREEDOM OF ASSOCIATION & EFFECTIVE RECOGNITION OF THE RIGHT TO COLLECTIVE BARGAINING Convention n°98 : This convention defines the practical conditions that must be guaranteed to ensure proper freedom of association and right to collective bargaining “Workers shall be protect against acts of anti-union discrimination in respect of their employment” What protection should be guaranteed ? “ (a) Employment of a worker must not be subject to the condition that he shall not join a union or shall resign from trade union membership; (b) A worker shall be dismissed of or be otherwise prejudiced by reason of union membership or because of participation in union activities.” (c) Workers' organisations shall be protected against any acts which are designed to promote the establishment of workers' organisations under the domination of employers or employers‘ organisations, or to support workers' organisations by financial or other means, with the object of placing such organisations under the control of employers or employers' organisations”.

  13. ILO CORE LABOUR STANDARDS &OECD GUIDELINES FOR MULTINATIONALCOMPANIES FREEDOM OF ASSOCIATION & EFFECTIVE RECOGNITION OF THE RIGHT TO COLLECTIVE BARGAINING The right to collective bargaining is detailed in Convention n°98 : “Measures appropriate to national conditions shall be taken to encourage and promote the full development (...) of (...) voluntary negotiation between employers (...) and workers' organisations with a view to the regulation of terms and conditions of employment by means of collective agreements”. Where a company fails to respect the right to freedom of association, the right to organise and to bargain collectively, it is the duty of the public authorities of the country concerned to ensure that these rights are enforced.... ... If the public authorities fail to ensure enforcement, a complaint to the ILO may be lodged by interested parties.

  14. ILO CORE LABOUR STANDARDS &OECD GUIDELINES FOR MULTINATIONALCOMPANIES The OECD Guidelines for Multinational Enterprises • First adopted in 1976 • Revised and strengthened Guidelines adopted in 2000 • The Guidelines are not legally binding, but they are not optional for companies • Countries that have adopted the Guidelines should encourage the enterprises operating in their territories to observe the Guidelines wherever they operate’ The Guidelines are composed of 10 chapters containing principles by which a company should abide in all its activities, wherever it operates.

  15. ILO CORE LABOUR STANDARDS &OECD GUIDELINES FOR MULTINATIONALCOMPANIES The OECD Guidelines for Multinational Enterprises Four of these 10 chapters are of particular interest for trade unions as they relate to economic and social matters. Companies should : • Contribute to sustainable economic, social and environmental progress, respect human rights, build capacity with local communities, Support good Corporate governance, promote awareness of company policies to employees (Chapter 2, General policies) • Ensure that timely, regular, reliable and relevant information is Disclosed. Information should cover basic information, company activities, structure, financial situation and performance, further information regarding, for example, social and/or environmental reporting are also covered. (Chapter 3, Disclosure)

  16. ILO CORE LABOUR STANDARDS &OECD GUIDELINES FOR MULTINATIONALCOMPANIES The OECD Guidelines for Multinational Enterprises • The abolition of child labour, elimination of forced labour, non Discrimination (on grounds of race, colour, sex, religion, political opinion, national extraction or social origin other than to address disadvantage), observe standards not less favourable than comparable employer, employ and train local labour. (Chapter 4, Employment) • The right to trade union representation, the right to ‘constructive negotiations’, the provision of facilities to support these rights, provide information necessary for meaningful negotiations, not use the threat of transfer to unfairly influence negotiations or the right to organise. (Chapter 4, Employment) • Promote consultation and co-operation, provide information to employees to give them a ‘true and fair view of the performance’ of the entity or whole organisation, allow consultation with representatives of management authorised to take decisions. (Chapter 4, Employment) ( = ILO FUNDAMENTAL LABOUR RIGHTS) Where a company fails to respect these guidelines, an interested party (a trade union, an EWC) may decide to lodge an OECD complaint.

  17. ILO CORE LABOUR STANDARDS &OECD GUIDELINES FOR MULTINATIONALCOMPANIES 3. How to use the ILO and OECD complaint mechanisms? ---------------- The ILO Core Labour Standards and the OECD Guidelines are particular instruments: There are no effective enforcement mechanisms, but a complaint mechanism exist. The two instruments use different channels to achieve similar means : • The ILO complaint mechanism is used to put pressure on governments so they enforce their own labour legislation or their international commitment to respect the principle of freedom of association and collective bargaining. • The OECD complaint mechanism is used to put pressure on a company to have it comply with basic principle of social responsibility and, additionally, make them bad publicity.

  18. ILO CORE LABOUR STANDARDS &OECD GUIDELINES FOR MULTINATIONALCOMPANIES • THE ILO COMPLAINT MECHANISM consists in writing a letter to the ILO Committee on Freedom of Association, in which allegations of trade union rights’ violations are described clearly and accurately. • The Committee on Freedom of Association was set up in 1951. It has examined more than 2,000 cases since its creation. There are currently 142 under its scrutiny. Paul van der Heijden Chairman Committee on Freedom of Association International Labour Office Route des Morillons, 4 CH - 1211 Geneva 22 Switzerland The Committee on Freedom of Association will : 1. Examine the complaint, 2. Consider whether it falls under its remit, 3. Send a request to the Government of the country where the violation took place to allow it to respond, 4. Draft recommendations with which the Government is « invited » to comply.

  19. ILO CORE LABOUR STANDARDS &OECD GUIDELINES FOR MULTINATIONALCOMPANIES • The ILO complaint mechanism is only open to workers’ and employers’ organisations: NGOs or even European Works Council are not entitled to lodge a complaint. • However, a European Works Council may lodge a complaint in the name of the trade union of one of its member in solidarity with employees of its company abroad. Example of cases when a complaint may be lodged : • Workers’ have been dismissed, downgraded, intimidated, threatened, hassled or discriminated because 1/ they have joined a union, 2/ the union has been gaining membership and the management decides to dismiss union members to undermine the union’s influence, 3/ they have undertaken collective action (strike, lock-out, sit-in etc…), • When there is evidence that the management is supporting directly or not a competing trade union, • When the management refuses to negotiate after constructive attempts have been made on the part of workers’ representatives... • It is important that any allegations that is made against an employer is supported by hard and relevant evidence. • In some instances, the ILO complaint will come as a support to legal proceedings undertaken against the employer at national level and often as a way to accelerate the advent of a solution, either legal (through the court) or amicable.

  20. ILO CORE LABOUR STANDARDS &OECD GUIDELINES FOR MULTINATIONALCOMPANIES • The OECD COMPLAINT MECHANISM will put pressure on the company rather than on its Government, by reminding it universal principles of good governance and labour rights. But the complaint procedure will involve the Government. • OECD member States have established « National Contact Points » (NCP), which are in charge of examining complaints lodged against a company of that country. The NCP will rather offer their « good offices » to settle a dispute amicably. • Contrary to the ILO mechanism, the OECD complaint mechanism is open to any parties interested in a case of violation (NGOs, trade unions, employers’ association, group of individuals…). • At present, only 90 cases have been lodged with the NCPs. • The complaint may be lodged against a company originating from an OECD country or against the subsidiary of a company outside the OECD area. The Guidelines therefore apply worldwide... (Bulgaria and Romania are not members of the OECD but the Guidelines apply to companies and their subsidiary having operations there). • Do the Guidelines apply to the supply chain ?

  21. ILO CORE LABOUR STANDARDS &OECD GUIDELINES FOR MULTINATIONALCOMPANIES How to proceed concretely with the complaint ? • The complaint must be written and sent to the National Contact Point (addresses are made public on www.oecd.org), • It must explain what is your stake, your link to the company or to the violation, • It must state clearly what paragraphs or chapters of the Guidelines have been breached (prioritise !) • It must detail accurately facts that demonstrate that specific chapters of the Guidelines have been breached. • It must bring hard evidence supporting allegations of violations. • It must stress the urgency of the situation and request a prompt examination of the complaint...

  22. ILO CORE LABOUR STANDARDS &OECD GUIDELINES FOR MULTINATIONALCOMPANIES 4. Conclusion ---------------- • The ILO and OECD complaint mechanisms are international instruments, recognising workers’ rights to freedom of association and collective bargaining as universal rights, • They are accessible to stakeholders not directly affected by a violation (EWCs in the case of the OECD Guidelines, other trade unions, EMF), • They can be instruments of trade union solidarity in order to defend trade union rights in countries where enforcement is weak, • They offer two different channels to defend and promote trade union rights : either by putting pressure of the Government of the country where the violation takes place or on the company itself. • In both cases, publicity of the violation is one the best instrument to put pressure on a company and/or its subsidiaries.

  23. ILO CORE LABOUR STANDARDS &OECD GUIDELINES FOR MULTINATIONALCOMPANIES Weaknesses of the complaint mechanisms : Both the ILO and OECD complaint mechanism are slow to deliver... The ILO system is dependent on the “good will” of the member State to respond in due time, The OECD system is dependent on the “good will” of the NCP and of the company, The lack of possible sanctions for companies or government is the main weakness of these instruments. Nevertheless, in both cases the accumulation of cases creates a form of “jurisprudence” which is favourable to workers and their organisations.

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