Global Framework Agreements An Overview Trade union strategies

Global Framework Agreements: An Overview Trade union strategies for workers’ rights in the global supply chain of MNCs 1 Felix Hadwiger

Growing Importance of Global Supply Chains (GSC) w Trade liberalization and the dynamics in international investment benefited the rise of the “supply chain model”. w One in five jobs can be linked to supply chains (ILO 2015). w MNE-controlled GSCs undercut the power of labour to bargain over wages and working conditions. w A plethora of voluntary forms of regulation has emerged since the 1980 s: 4 Codes of conduct – Human Rights Policies (company level) 4 Global Compact of the United Nations 4 Certification schemes - ISO-26000 by the International Organization for Standardization 4 “CSR Industry“ w The challenge: Labour relations are largely missing in these initiatives. 2 Felix Hadwiger

Labour's Response: Global Framework Agreements w Labour’s response to globalization of production of MNEs operations (supply chains) are Global Framework Agreements (GFAs). w The added value of GFAs compared to other initiatives is that they are the outcome of direct negotiations between the representatives of management and workers in a MNE. w GFAs provide a rights based framework to encourage recognition of trade unions. w Their role is to promote labour relations at the national, sectorial and enterprise level. 3 Felix Hadwiger

Labour's Response: Global Framework Agreements 4 Felix Hadwiger

Background: Global Framework Agreements w ILO 4“an instrument negotiated between a multinational enterprise and a Global Union Federation (GUF) in order to establish an on-going relationship between the parties and ensure that the company respects the same standards in all the countries where it operates. ” w Industri. ALL 4“Global framework agreements are negotiated between Industri. ALL and multinational companies to protect the rights and working conditions of people at all stages of a multinational company’s global supply chain, including people working for suppliers and contractors. ” 5 Felix Hadwiger

Background: Global Framework Agreements w The most recent GFAs (2009 – May 2015). 4 Thyssen. Krupp, Total, Gamesa, Telefónica, AEON, Acconia, Sacyr, Inditex, Salino- Impregilo, Dragados, Svenska Cellulosa, Codere, Loomis, Solvay, Melia, Enel, Norske Skog, Metro, Telenor, Renault, Statoil, Lafarge, Aker, Eurosport, OHL, Siemens, Saab, Ferrovial, Ford, MAN, Securitas, Lukoil, FCC Contruccion, Sodexo, Umicore, Mizuno, Petrobras, ZF Friedrichshafen, Mann + Hummel, GDF Suez, Norsk Hydro, Pfleiderer, PSA Citroen, AB Electrolux, Telkom Indonesia, Antara, Malaysia Berhad, Shoprite Checkers, Wilkhahn, Anglo. Ashanti, Telecomunicaciones, Elanders, EDF, ENI. 4 Companies from 13 different countries Belgium, Brazil, France, Germany, Indonesia, Italy, Japan, Norway, Russia, South Africa, Spain, Sweden, USA 4 Direct employers for 4. 8 million workers 6 Felix Hadwiger

Background: Global. Framework Agreements Number of GFAs apportioned by Global Trade Union Federations (GUFs) 120 100 80 60 40 20 3 2 2 0 1 4 3 3 4 5 4 4 11 5 4 5 16 6 4 6 21 8 4 7 26 10 4 12 28 11 4 14 1 31 13 5 12 4 1 27 25 1 14 5 1 30 14 6 1 31 17 20 7 1 20 1 7 34 35 35 Industri. ALL UNI IUF BWI IFJ 34 33 36 40 45 46 46 49 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Graph created by the author (n=112) 7 Felix Hadwiger

Background: International Framework Agreements Number of GFAs apportioned by headquarters’ location 1 -3 GFAs 4 -9 GFAs > 9 GFAs Figure created by the author (n=112) 8 Felix Hadwiger

Global Framework Agreements Minimum content: w Reference to ILO core labor standards. 4 Freedom of Association and Collective Bargaining (Conventions 87 and 98); 4 Discrimination (Conventions 100 and 111); 4 Forced Labour (Conventions 29 and 105); 4 Child Labour (Conventions 138 and 182). 9 Felix Hadwiger

Global Framework Agreements Minimum content: w Recognition of fundamental labor and human rights standards. References in GFAs. Table created by the author (n=54) 10 Felix Hadwiger

Global Framework Agreements w Minimum content: w Cover all company operations throughout the world without exception. w Reference to suppliers and subcontractors. w Guarantee a commitment from the company to treat unions positively, and refrain from all anti-union activities and to remain strictly neutral. w Union representatives should have a reasonable access to the workplace. w Contain an effective mechanism for implementation, enforcement and a procedure for binding dispute resolution. 11 Felix Hadwiger

Discussion w Were you aware of the existence of GFAs before? w Do you know whether your trade union made use of GFAs in recent years? w If not, how could you make use of GFAs in your day-to-day work? 12 Felix Hadwiger