MNE Declaration Issues

Verena Schmidt, ACTRAV:TRIPARTITE DECLARATION OFPRINCIPLES CONCERNINGMULTINATIONAL ENTERPRISES ANDSOCIAL POLICY« These slides are partly based on a powerpoint presentation from MULTI »

MNE DeclarationIssues • Background and aim • General policies • Employment • promotion, equality, security • Training • Conditions of work and life • wages and benefits, child labour, safety and health • Industrial relations • freedom of association and right to collective bargaining

MNE DeclarationAdded Value • Universal reference point for social responsibility agreed by governments, business and labour • balances roles and responsibilities of business, governments and unions • applies equally across countries of operation

MNE Declarationoffers workers • Framework for: • fundamental rights at work • skills training for employability • good working conditions • sound industrial relations

MNE Declarationoffers business • Multinationals: risk management and productive relationships in country of operation • Local business: capacityto create and maintain partnerships in global markets

MNE Declarationoffers governments • Host countries: • ways to attract multinational investment and build decent work to reduce poverty • Home countries: • investment and partnerships opportunities

MNE DeclarationNational, regional and sectoral initiatives • building national, regional and sectoral partnerships • stimulating consultations and coordinated actionamong government, business and labour • influencing government action: FDI and employment policies • helping collective bargaining agreements • providing input at regional levels

MNE DeclarationPrinciples in practiceSkills training: Spain National Agreement on HRD and Continuing Training • MNEs develop working methods for training aimed at different occupational categories • MNEs submit training plans for funding upon approval by tripartite committee • Results: • MNE needs satisfied • increased jobs • higher technical skills developed • conditions of work enhanced

MNE DeclarationPrinciples in practiceProviding input at regional levels: a Southern African experience • The “Maputo Declaration” adopted in May 1999 byworker representatives in the textile, clothing, leather and footwear industry from nine SADC member countries: • respect and promotion of core labour standards • endorse and implement the MNE Declaration and the 1998 ILO Declaration on Fundamental Principles and Rights at Work • encourages regional collective bargaining agreements

Memorandum of Social Understanding & Plan of Action adopted by Governments, business and workers framework of objectives guided by the MNE Declaration key roles of each partner in coordinated action to promote employment, security, training, working conditions and sound industrial relations MNE DeclarationPrinciples in practiceStimulating social consultations: Philippines

MNE DeclarationCorporate Social Responsibility • inspiring company policies and programmes on a day-to-day basis • offering benchmarksfor corporate performance • providing baselines for framework agreements

MNE DeclarationCorporate Social ResponsibilityOffering benchmarks for corporateperformance Principles in practice Equality of employment opportunity • equal opportunity policy ? • training systems on non-discrimination ? • grievance procedure to address discrimination/harassment ? • sanctions for violation of company policy ? • recruitment based on skills ? • promotion and compensation based on performance ?

MNE DeclarationCorporate Social ResponsibilityProviding baselinesfor framework agreements • negotiated between MNE and Global Union Federation • apply to MNEs’ operations around the world • now, 52 framework agreements covering more than 4.2 million workers

MNE DeclarationILO products and servicesAssessing progress: follow-up surveys • Experiences in terms of MNE Declaration goals • Joint or separate views of home and host country governments and of workers’ and employers’ organizations across ILO membership • conclusions and recommendations decided by global representatives of government, labour and business • results: • examples of good practice • insights into new trends • practical experiences

MNE DeclarationILO products and servicesAddressing conflicts: interpretation procedure • Requests for interpretation of the MNE Declaration: • in specific cases of actual dispute over the meaning of the principles • examined and answered by the ILO Governing Body • to date, interpretations have been given in five cases covering: • Notice before change of operations • Consultations on decisions with major employment effects • Authority of management representatives to take decisions during negotiations

Consultation on decisions with major employment effects • In 1983 an American bank decided to lay off 200 out of 650 employees of its British subsidiary • The trade union was not informed • The MNE subcommittee accepted the case and agreed on the interpretation of the MNE Declaration based on C158 (Termination of an employment relationship) that the companies need to inform trade unions of a closure (where they exist)

Follow up to the MNE Declaration • Since 1996 the survey questionnaire on the MNE Declaration is sent sent directly to employers’ and workers’ organizations to increase the response rate • However, for the eight survey (2006) only 62 countries replied, from which 13 responses came from workers’ organizations

MNE DeclarationOther internationallevels of operationThe OECD Guidelineson Multinational Enterprises

MNE Declaration Other internationallevels of operationUN Global Compact UN Global Compact • Human rights principles • Environment principles • Labour principles • built-in dialogue and partnerships • UN agencies, business, labour and NGOs oversight MNE Declaration • Added guidance on ways to implement labour principles • built-in dialogue and partnerships • Tripartite oversight • freedom of association and collective bargaining • elimination of forced labour • effective abolition of child labour • elimination of employment discrimination

MNE Declaration Issues