International Framework Agreements Other initiatives by International Professional

International Framework Agreements Other initiatives by International Professional Trade Union Federations to promote decent work in Multinational Enterprises; role of trade unions at national level 1

Experiences with international agreements IFA constitute a major instrument to compel multinational enterprises to comply with desirable ethical and social principles all over the world International Framework Agreements (IFA) are proven to be a useful tool for workers all over the world; IFA are used successfully to discuss important issues for both parties and also allow problems to be resolved; 1

�IFA pay a special role in the field of corporate social responsibility (CSR); IFA are agreements signed by partners based on shared principles as a key aspect of international labour dialogue; � 2

�IFA are additional to other efforts such as: ü The field of corporate social responsibility, transparency of enterprises and/or sustainable development; ü OECD Guidelines for Multinational Enterprises; ü ILO Declaration of Tripartite Principles on Multinational Enterprises and Social Policy; 3

The objective of International Agreements (IFA): Reminder: Features of International Agreements • "to establish the principles and standards that the multinational enterprise concerned applies wherever it has its business activities throughout the world, regardless of whether it is necessary to do so through domestic laws • Negotiated, not unilateral: An international agreement is not a code of conduct • Recognition and implementation of core labour standards • Promotion of social dialogue at international, regional and enterprise level 4

Special provisions for: � Health and Environment � Inclusion � HIV of subcontractors and suppliers / AIDS � Protection of women � Approved surveillance and verification mechanisms � Mechanisms to deal with problems: procedures for breaches 5

Objectives (contd. ) International Framework Agreements (IFA) are proven to be a useful tool for workers all over the world; IFA are used successfully to discuss important issues for both parties and also allow problems to be resolved; IFA constitute a major instrument to compel multinational enterprises to comply with desirable ethical and social principles all over the world; IFA pay a special role in the field of corporate social responsibility (CSR); IFA are agreements signed by partners based on shared principles as a key aspect of international labour dialogue; 6

Examples of Existing International Agreements (Industri. All) Statoil. Hydro 1998 Freudenberg 2000 Endesa 2002 Norske Skog 2002 Anglogold 2002 ENI 2002 RAG 2003 SCA 2004 LUKOIL 2004 EDF 2005 Rhodia 2005 Lafarge 2005 Umicore 2007 10 7

CORPORATE SOCIAL RESPONSIBILITY �The concept of Corporate Social Responsability (CSR) consists of applying the notion of sustainable development to enterprises. �It refers to a "concept in which enterprises include social, environmental and economic concerns in their activities" 8

�CSR assumes that enterprises will reassess their economic model and strategy by including environmental issues, such as climate change or diminishing resources, social issues such as diversity or respect for human rights, while complying with rules on good governance. �It concerns both multinationals and small and medium enterprises but applies differently from one sector to another. 9

�Corporate responsibility results from civil society pressure (NGOs, associations) for a better inclusion of environmental and social impacts in the activity of enterprises. �This concept arose particularly as a consequence of the global environmental problems experienced since the 1970 s �The term "corporate social responsibility" comes from the European Commission (2001 Green Book) which defines it as "the voluntary inclusion by enterprises of social and environmental concerns in their commercial activities and relations with stakeholders" 10

�In the European definition, the term "social" is taken from the English word, whereas it is closer to the term "sociétale" in French, which specifically includes the environmental aspect. �According to the Commission, the concept of CSR essentially means that enterprises, of their own initiative, contribute to improving society and protecting the environment, in conjunction with stakeholders. �CSR tends to define the responsibilities of enterprises with respect to stakeholders using the philosophy of "act local, think global" (René Dubos). This means integrating the global and local situation into the strategic planning and practice of 11 enterprises.

Other initiatives �Tripartite declaration of principles concerning multinational enterprises and social policy adopted in 1977 by the ILO's Governing Body. Revised in March 2000 with the Trade Union Advisory Committee (TUAC), which represents workers' organizations within the OECD and over which it has de facto control. The ILO declaration deals mainly with employment, training, work conditions and professional relations within multinational enterprises. 12

�The OECD Guidelines for Multinational Enterprises adopted in 1976 which propose a series of measures to Member States aimed at ensuring healthy social management within MNE. �The ILO Declaration on Fundamental Principles and Rights at Work, and its follow up. This Declaration which refers to fundamental ILO conventions (there are currently eight of them) discussed during the Singapore Conference, binds Member States, even if they have not ratified one or several of these conventions. It has thus not had the effect of creating new obligations for Member States, as its declaratory nature classifies it as what is called "soft law" (Duplessis, 2004). 13

GLOBAL COMPACT Another initiative (concept of sustainable development) �Initiated by Kofi Annan in July 2000, the United Nations Global Compact is a network made up of the Compact Office and six United Nations Agencies. �The participants are: Enterprises, Governments, Trade Unions, NGOs and Civil Society Organizations as well as Academic Institutions, 14 development agencies, local authorities and

The Global Compact is based on ten principles sub -divided into four categories: �Human rights �Labour standards (fundamental standards) �Environment �Fight against corruption Voluntary decision of Enterprises to become a member (Letter to SG) of the United Nations Obligtory annual report by enterprises on compliance with principles 15

� There a good number of existing international instruments, designed to regulate the activities of transnational enterprises, which are inapplicable and thus largely ineffective in practice. � There are many such instruments, but few, i. e. none of them, are binding and enterprises have no qualms about disregarding them, especially in developing countries. � There are few national accountability mechanisms, where access to justice for ordinary citizens is difficult, and in which governments are ready to work with enterprises to protect the benefits enterprises bring to their economy. 16

INTERNATIONAL AND REGIONAL TRADE UNION ACTIONS � Negotiating and following up international agreements with multinational enterprises among others, on workers' rights, equality at work and the best health, safety and environmental protection standards in the world � Networking trade union representatives in multinationals; � Coordinating disputes � solidarity and supporting unionized workers during Creating and strengthening trade union organizations in countries where they are non-existent or weak 17

�Providing information and expert support on issues from collective bargaining to health and safety standards �Representing the interests of workers at the United Nations, its agencies and other intergovernmental organizations � Training trade union leaders and officers 18

�The trade union movement has developed "Global Union Federations" (GUF) for different industrial sectors, whose work is to provide assistance to national (affiliated) trade unions so that they can deal with existing problems with the General Management of Multinational Enterprises. �Generally, members of your basic network will include a GUF official responsible for your sector. 19

Creation of networks as a response to MNE strategies Within international enterprises that dominate modern industry, trade union officers can create permanent links among themselves, beyond national borders. The "networks" that these contacts provide give workers at these enterprises the possibility of: sharing information on work and working conditions warning each other of changes and developments in professional life ü ü strengthening the negotiating position of their trade union organizations ü helping each other in their organizational efforts ü representing each other jointly before the company management signing international agreement with the central management. . . and far more still. 20 ü

NETWORK: SOURCE OF POWER Negotiating power Trade union affiliation Information Solidarity 21

NATIONAL ACTIONS �Creating trade unions at branches of Multinationals �Training trade union leaders on awareness of and the use of IFA �Writing the content of IFAs in plain language per each sector concerned 22

�Reporting and making complaints against breaches of workers' rights in subsidiaries of Multinational Enterprises (GUF-ILO) �Holding campaigns for the adoption of collective agreements in enterprises �Making alliances with OSCs and NGOs �Joining or starting campaigns at the time of major trade union events (1 May, 7 October, 8 March, etc. ) 23

"Laws are made by and for the powerful, but once they exist, they can be used against them. " Thank you 24