Verena Schmidt, ACTRAV: TRIPARTITE

DECLARATION OF PRINCIPLES CONCERNING

MULTINATIONAL ENTERPRISES

AND SOCIAL POLICY« These slides are partly based on a powerpoint

presentation from MULTI »

MNE DeclarationIssues

Background and aimGeneral policiesEmployment

promotion, equality, securityTrainingConditions 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 Declaration offers workers

Framework for:

fundamental rights at work

skills training for employability

good working conditions

sound industrial relations

MNE Declaration offers business

Multinationals: risk management and productive relationships in country of operation

Local business: capacity to 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 action among government, business and labour

influencing government action: FDI and employment policies

helping collective bargaining agreements

providing input at regional levels

MNE Declaration Principles in practice Skills 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 jobshigher technical skills developedconditions of work enhanced

MNE Declaration Principles in practice

Providing input at regional levels:

a Southern African experience The “Maputo Declaration” adopted in May 1999 by worker 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

MNE Declaration Principles in practice

Stimulating social consultations: Philippines

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 DeclarationCorporate Social Responsibility

inspiring company policies and programmes on a day-to-day basis

offering benchmarks for corporate performance

providing baselines for framework agreements

MNE Declaration Corporate Social Responsibility

Offering benchmarks for corporate performance

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 Declaration Corporate Social Responsibility

Providing baselines for 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 Declaration

ILO 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 trendspractical experiences

MNE DeclarationILO products and services

Addressing conflicts: interpretation procedure

Requests for interpretation of the MNE Declaration: in specific cases of actual dispute

over the meaning of the principlesexamined and answered by the ILO

Governing Body to date, interpretations have been given

in five cases covering:Notice before change of operationsConsultations on decisions with major

employment effectsAuthority 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 Declaration Other international levels of

operation The OECD Guidelines on

Multinational EnterprisesMNE Declaration All ILO member states

Tripartite oversight

Assistance by ILO offices on a tripartite basis

OECD Guidelines Countries of operation of OECD countries companies

OECD governments’ supervision

Service by National Contact Points with or without business and labour inputs

MNE Declaration Other international levels of

operation UN 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