How Should Unions Respond to Globalisation?

How Should Unions Respond to Globalisation? ICTU Economic Conference DUBLIN 23 April 2008 John Evans Trade Union Advisory Committee to the OECD

Summary • Trade Unions and OECD • Economic background – Rising Inequality • Economic & Financial crisis 2008 • Trade Union medium term priorities on globalisation • An example: Trade Union cases raised under OECD Guidelines for MNE • Other priorities for TUAC

Trade Unions and OECD • TUAC as part of Global Unions • Why seek to influence the OECD? • Ideological Centre of gravity on national policy-Jobs Strategy • In theory across government approaches • « Hub » of globalisation • Expansion of membership

Background • Context of Globalisation 2007 • What record on “decent work” • Falling Unemployment across OECD Countries • But Declining share of wages in national income • Rising Inequality and unequal reduction in poverty • Impact of “Financialisation”

Rising inequality • Declining share of wages in national Y

Rising inequality

Economic & Financial Crisis 07-08 • US Sub-prime mortgage debt • Contamination through securitisation • International chain reaction • Bank collapses • Fall of the dollar • Sovereign Wealth Funds • Food price explosion

Economic Policy Priorities • Put a floor in credit and housing markets • Need for fiscal and monetary stimulus outside the US (unions agree with IMF!) • Reregulate financial markets in the medium term • « This must not happen again »

Medium Term Trade Union Priorities on globalisation • Guarantees on Core Labour Standards in all International Institutions • Collective Bargaining as “global public good” • Negotiating space in international industrial relations • Global Framework Agreements • Using market power • Pension funds: responsible investment • Using regional regulation – the EU • Rules for Multinational Enterprises

OECD MNE Guidelines • Drawn up in 1976 revised in 2000 • Government reactions to « accountability crises » • Major change in implementation mechanisms- role of National Contact Points agreed in 2000 • Cases and sanctions

OECD Guidelines Cases • 90 cases raised by TU since 2001:

OECD Guidelines Cases • Types of leading breaches: • Anti-union behaviour • No consultation on restructuring • No enforcement of contract • Threat to relocate offshore • No information on financial performance of firm • Problems with occupational health & safety • Various

OECD Guidelines Cases • Types of leading breaches / Region: • Anti-union behaviour: most frequent in Asia • Non-consultation if restructuring: most frequent in Europe

OECD Guidelines Cases • Of all closed cases (53): • In half of the cases (28) we have at least some positive outcome • In 45%: Intermediation of NCP was very helpful • In 45%: Pressure on the company (via different ways) without help of the NCP • In 10%: court outcome in favour of TU which leaded to some positive outcome • In 61% of the closed cases, there is a public statement made by the NCP

OECD Guidelines Cases • Implementation: influenced by the structure: • Only governmental departments • 27 NCP • Bipartite • 1 NCP: Romania • What about the objectivity? • Tripartite • 9 NCP: Belgium, Denmark, Estonia, France, Latvia, Lithuania, Luxemburg, Norway, Sweden • Quadripartite: • 2 NCP: Chile, Finland

OECD Guidelines Cases • NCPs that received ≥ 3 TU-cases

OECD Guidelines Cases • Conclusions: OECD guidelines for MNE • “Far from perfect” but still useful • if more political will more effective tool • Within the OECD • Need for more NCP capacity building • Peer review process • Link it to export credits guarantees • More regional focus • G8 declaration • Coherence between instruments • OECD/ILO Round Table June 2008 • More Information at www.tuac.org

Other TUAC priorities • OECD Jobs strategy versus going for growth • Mainstreaming distribution & equity issues • OECD Enlargement and Enhanced Engagement • Combatting climate change – green jobs and greening the workplace • Education – quality public services

How Should Unions Respond to Globalisation?