International Standards for MNC Unionists

1. International Standards for MNC Unionists ICEM/FNV Asia MNCs & Social Dialogue Yoon Hyowon ICEM project coordinator

2. What is social dialogue? • What is the meaning of dialogue? • Conversation is informal, personal, individual talks. • Dialogue is formal/official, organizational/institutional, collective talks. • We need to have topics or agenda for dialogue, while we do not need to have topics or agenda for conversation. • To have topics or agenda means to produce results or effects in or after talks. • This means dialogue results in some results or effects.

3. What is social dialogue? • There is the terminology of social dialogue, while there is no that of social conversation. • ILO says social dialogue is “all forms of negotiation and consultation concerning the issues of common interests including information sharing among workers, employers, and governments”. • Social dialogue is formal, institutional, and collective talks among workers, employers, and governments to deal with information sharing, collective bargaining, and policy making.

4. What is social dialogue? • The results or effects of social dialogue • Collective agreements • Workers’ participation in management (information sharing and consultation) • Workers and employers’ participation in government policy • Cooperative/peaceful labor relations economy by making strong and active union.

5. International standards as agenda for social dialogue • In order to develop social dialogue with company and government, we need to have agenda and topics. • What must be the agenda and topics for social dialogue in labor relations? • International standards can be the agenda and topics for social dialogue.

6. International Standards for MNCs • ILO Core Labour Standards • OECD Guidelines for MNCs • UN Global Compact • Global Agreement with MNCs

7. ILO Core Labor Standards

8. What is ILO • International Labor Organization • UN agency specialized in labor issues • Established in 1919 after World War One • Tripartite structure of “equal” social partners • Governments, Employers, Workers • 182 member countries • ILO International Conference is held every June,

9. What is ILO • Main role to formulate international standards in the form of Conventions & Recommendations setting basic labor rights • Conventions: legally binding international treaties ratified by member countries • Recommendations: non-binding guidelines • 188 Conventionsand 199 Recommendations.

10. Ratifications by Countries (as of 2009 April) • Indonesia: 18 (8) • Korea: 24 (4) • Malaysia: 14 (5) • Thailand: 14 (5) • Vietnam: 17 (5) • India: 40 (4) • Brazil: 80 (7), China: 22 (4) • France: 102 (8) • Germany: 72 (8) • Japan: 41 (6) • Netherlands: 82 (8) • Saudi Arabia: No Data (5) • Singapore: 20 (5) • South Africa: 20 (8) • Sweden: 77 (8), UK: 68 (8) • USA: 14 (2) • Myanmar: 19 (2), Somalia: 12 (3) • Afghanistan: 15 (3) • Iraq: 61 (7) only 2 after 2001.3

11. ILO Core Labor Standards • Most basic and important conventions • Universal standards to be recognized and accepted internationally • Ratification by country is not important • Applicable to every country and every companies • 4 areas and 8 Conventions

12. ILO Fundamental Conventions • Freedom of Association and Protection of the Right to Organize Convention, 1948 (No. 87) • Right to Organize and Collective Bargaining Convention, 1949 (No. 98) • Forced Labor Convention, 1930 (No. 29) • Abolition of Forced Labor Convention, 1957 (No. 105) • Minimum Age Convention, 1973 (No. 138) • Worst Forms of Child Labor Convention, 1999 (No. 182) • Equal Pay Convention, 1951 (No. 100) • Discrimination (Employment and Occupation) Convention, 1958 (No. 111)

13. ILO Core Labor Standards • 4 areas • freedom of association & right to collective bargaining (C87, C98) • No forced labor(C29, C105) • No child labor(C138, 182) • No discrimination (C100, C111)

14. Freedom of Association • Workers have the freedom and right to organize their own organizations or join trade unions to represent their interests and defend their rights. • Employers or government can not interfere with union organizing or union activities.

15. Freedom of Association • Workers have the freedom and right to Umbrella workers organization like regional/national unions and industrial/national federation can directly engage in supporting workers and organizing unions.

16. The Right to Collective Bargaining • Collective bargaining is a negotiation between management and union to jointly decide wage, working conditions, social or economical environment which influence the livelihood of workers or their families.

17. The Right to Collective Bargaining • The final result of collective bargaining is to make a collective agreement (CBA). • The CBA can be made at local, regional, industrial and national levels.

18. No Child Labor • Minor work should not be allowed to those under 13-years old. • Normal work should not be allowed to those under 15-years old. • Dangerous work should not be allowed to those under 18-years old.

19. No Child Labor Vietnam News (4 June, 2009) • Over 26,000 under-age children are working illegally and many are being exposed to harmful substances, according to reports to the Ministry of Labour, Invalids and Social Affairs by 63 provinces and cities. • Ngo Ngoc Hai (12) from Phu Tho Province, has been working at a food shop in Ha Noi for six months. He has to work from 4pm to midnight everyday and gets paid VND500,000 (US$27) a month. "My family is poor, and because my parents do not have enough for me to go to school, I go to work," Hai said. • A survey in HCM City in 2008 discovered that 758 children were working illegally in ceramic workshops or selling lottery tickets, food or polishing shoes. There are about 4.4 million poor children under 17 in Viet Nam.

20. Forced Labor • Doing work by threat and enforcement, without my agreement or approval • Overtime without dialogue with workers or unions

21. No Discrimination • Equal pay for equal work, equal treatment for equal work • Discrimination between men and women • Discrimination between regular and non-regular workers • What kind of discrimination do we experience in our workplace?

22. Ratification by Country

23. OECD Guidelines for Multinational Enterprises

24. What is OECD • Organization for Economic Cooperation & Development • International organization for “Rich” Countries led by USA and Europe • Established in 1948 • 30 member countries • Europe: 23 countries (Austria, Belgium, Czech, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland, Turkey, UK) • Asia Pacific: Japan, Korea, Australia, New Zealand • America: USA, Canada, Mexico

25. OECD Guidelines for MNCs • International standard for “good corporate conduct” • Created in 1976 and new version revised in June 2000 • Applicable to OECD member countries and 7 non-member countries (Brazil, Chile, Egypt, Israel, Latvia, Romania, Slovenia) • The purpose of MNC is “Not only to reap profit, but to improve social conditions around world” • Not legally binding, but voluntary guidelines • Government engagement with National Contact Point (NCP) • Encouragesuppliers and subcontractors to apply the Guidelines

26. OECD Guidelines for MNCs • Concept of multinational companies • Companies operating in more than 1 country • Ten chapters • 1. Concept and principles, 2. General Policies, 3. Information Disclosure, 4. Employment and Industrial Relations, 5. Environment, 6. Combating Bribery, 7. Consumer Interests, 8. Science & Technology, 9. Competition, 10. Taxation

27. OECD Guidelines for MNCs • Chapter 3. Information Disclosure • MNC activities, structure, financial situation and performance, main affiliates, its percentage ownership, direct and indirect in these affiliates, shareholding • MNC should disclose material information on • The financial and operating results of the company • Member of the board and key managers, and their pay • Information on employees and other stakeholders • Governance structure and policies

28. 2007/2008 BASF key managers salary

29. Bayer 2008 Report

30. Bayer 2008/2007 CEO Pay

31. Bayer CEO’s Promise for Financial Transparency

32. Holcim CEO Salary, 2008

33. Holcim Personnel costs 2007

34. OECD Guidelines for MNCs • Chapter 4. Employment & Industrial Relations • The right to join trade union and engage in collective negotiation • The abolition of child labor • The elimination of forced labor • No discrimination against workers at work on such grounds on race, sex, religion, political opinion, nationality and social origin

35. OECD Guidelines for MNCs • Employment & Industrial Relations • Provide facilities to workers representatives for collective bargaining • Provide appropriate information for constructive negotiation • Observe national labor standards in host country • Promote health & safety at work • Provide reasonable notice and meaningful cooperation in case of collective dismissal • Do not threaten to transfer the whole or part of plant to other country in the excuse of collective bargaining and collective action • Allow workers representatives to consult with management representatives who are authorized to take decisions

36. OECD Guidelines for MNCs • Participating countries in the Guidelines should set up a National Contact Point (NCP). • NCP is usually established in government departments dealing with trade, investment and labor. • For example, Korean NCP belongs to the Ministry of Commerce, Industry & Energy. • In the case of violating the Guidelines, anybody can raise the issue to a relevant NCP. • NCP should report the case to OECD.

37. UN Global Compact

38. UN Global Compact • Proposed by United Nations (UN) Secretary General Kofi Annan in World Economic Forum in 1999 • International initiative or campaign for Corporate Social Responsibility (CSR) driven by UN • Not legally binding, but voluntary promise • 6000 MNCs join the Global Compact • 4 areas and 10 principles

39. UN Global Compact • Human Rights • MNC support human rights • MNC do not abuse human right • Labor Standards • MNC respect the freedom of association and the right to collective bargaining • Elimination of forced labor • Abolition of child labor • Elimination of discrimination at work • Environment • MNC support precautionary approach to environment • Promote greater environmental responsibility • Develop environmentally friendly technology • Anti-Corruption • MNC should work against all forms of corruption

40. Freedom of Association & Collective Bargaining • Ensure that all workers are able to form and join a trade union of their choice without fear of intimidation or reprisal, in accordance with national law. • Put in place non-discriminatory policies and procedures with respect to trade union organization, union membership and activity in such areas as applications for employment and decisions on advancement, dismissal or transfer. • Do not interfere with the activities of worker representatives while they carry out their functions in ways that are not disruptive to regular company operations.  • Allow the collection of union dues on company premises, posting of trade union notices, distribution of union documents, and provision of office space. • Provide workers’ representatives with appropriate facilities to assist in the development of effective collective agreement.

41. Freedom of Association & Collective Bargaining • Recognize trade union for the purpose of collective bargaining. • Use collective bargaining as a constructive forum for addressing working conditions and terms of employment and relations between employers and workers. • Address any problem-solving or other needs of interest to workers and management, including restructuring and training, redundancy procedures, safety and health issues, grievance and dispute settlement procedures, disciplinary rules, and family and community welfare. • Provide information needed for meaningful bargaining. • Balance dealings with the most representative trade union to ensure the viability of smaller organizations to continue to represent their members • Inform the local community, media and public authorities of your company's endorsement of the UN Global Compact and its intention to respect its provisions, including those on fundamental workers' rights.

42. No Force Labour • Situations of forced labour are generally characterized by a lack of consent to work. • Exploitative practices such as forced overtime • Physical or psychological (including sexual) violence as a means of keeping someone in forced labour (as a threat against worker, family, or close associates) • Deception or false promises about terms and types of work • Slavery, Bonded labour or debt bondage, Physical abduction or kidnapping, Sale of a person into the ownership of another, Physical confinement in the work location (in prison or in private detention), The work or service of prisoners, Work required to punish opinion or expression of views ideologically opposed to the established political, social or economic system, The lodging of deposits (financial or personal documents) for employment, Full or partial restrictions on freedom of movement, Withholding and non-payment of wages (linked to manipulated debt payments, exploitation, and other forms of extortion), Deprivation of food, shelter or other necessities

43. No Child Labour • the term "child" covers all girls and boys under 18 years of age. • Developed countries • Light Work 13 Years • Regular Work 15 Years • Hazardous Work 18 • Developing countries • Light Work 12 Years • Regular Work 14 Years • Years Hazardous Work 18 Years • Exercise influence on subcontractors, suppliers and other business affiliates to combat child labour.

44. No Discrimination • Equal treatment for equal work • Equal treatment in terms of Recruitment, Remuneration, Hours of work and rest/ Paid holidays, Maternity protection, Security of tenure, Job assignments, Performance assessment and advancement, Training and opportunities, Job prospects, Social security, Occupational safety and health

45. www.holcim.org

46. International Framework Agreement (Global Agreement)

47. International Framework Agreement • IFA is an agreement negotiated between MNC and Global Union Federation like ICEM concerning the international activities of the MNC. • MNC unilaterally made the Code of Conduct by itself without any involvement of trade union. • IFA is a tool for trade union to engage in setting minimum standards with MNC. • The first IFA was made between IUF and Danone • ICEM has made Global Agreements (IFA) with 12 MNCs.

48. International Framework Agreement • ICEM’s Global Agreements (IFA) with • Umicore in 2008 • Lafarge in 2005 • Rhodia in 2004 • SCA in 2004 • EDF in 2004 • Lukoil in 2004 • Eni in 2002 • AngloGold in 2002 • Norske Skog in 2002 • Endesa in 2002 • Freudenberg in 2000 • Statoil in 1998

49. Global Agreement with Lafarge in 2005 • Abolition of forced labor • No discrimination at workplace • Elimination of child labor • Right to organizing trade union and collective bargaining • Guarantee living wage • Improve health, safety and working conditions • Provide Job training

50. Global Agreement with Freudenberg in 2000 • No forced labor and child labor • Equal opportunities and equal treatment on the job • Freedom of association and the respect for basic trade union rights • Right to organizing trade union and collective bargaining • No discrimination against trade union representatives • Health & safety at workplace • Flexible, efficient and customer-oriented forms of work organization