Transcript Trade union membership in Europe Challenges and trade

ILO CORE LABOUR
STANDARDS
and
OECD GUIDELINES FOR
MULTINATIONAL
ENTERPRISES
ILO CORE LABOUR STANDARDS &
OECD GUIDELINES FOR MULTINATIONAL
COMPANIES
INTRODUCTION

The International Labour Organisation (ILO) Core Labour Standards and
the OECD Guidelines for Multinational Enterprises are 2 international instruments
that can be used by organisations or individuals which are not directly affected by a
violation of
trade union rights.

The ILO Core Labour Standards are international legal instruments (international
conventions) and the OECD Guidelines are soft law instruments (guidelines).

However, they may both be considered to be soft law instruments, because in
both cases no effective mechanisms have yet been designed to ensure enforcement
of the principles they promote.

ILO CORE LABOUR STANDARDS &
OECD GUIDELINES FOR MULTINATIONAL
COMPANIES

The two instruments refer to fundamental trade union rights, i.e.:
The right to freedom of association and the right to collective bargaining
(The OECD Guidelines refer to additional workers’ representatives right, such as the right to information
and consultation, etc…).

The two instruments use two different channels to promote fundamental trade union
rights :
1.
the legal obligations of States/Governments to comply with international conventions
they have ratified (ILO),
The good will of Multinational Enterprises to live up to their commitments to respect
fundamental human and labour rights and good governance principles (OECD).
2.
ILO CORE LABOUR STANDARDS &
OECD GUIDELINES FOR MULTINATIONAL
COMPANIES
STRUCTURE OF THE PRESENTATION
1.
Brief overview of the International Labour Organisation (ILO) and of the Organisation
for Economic Cooperation and Development in Europe (OECD)
2.
Introduction to the Core Labour Standards and to the Guidelines
3.
How can trade union and/or EWCs use the complaint mechanisms
4.
Conclusion
ILO CORE LABOUR STANDARDS &
OECD GUIDELINES FOR MULTINATIONAL
COMPANIES
1.
Brief overview of the International Labour Organisation (ILO) and of the
Organisation for Economic Cooperation and Development in
Europe (OECD)
---------------The International Labour Organisation was created in
1919, as part of the Treaty of Versailles.
Trauma of the first world war. The preamble of the ILO
Constitution states that : « Universal and lasting peace can
be accomplished only if it is based on social justice ».
ILO CORE LABOUR STANDARDS &
OECD GUIDELINES FOR MULTINATIONAL
COMPANIES

The preamble of the Constitution of the ILO, recognises that:
“Where social injustice, hardship and privation exist
peace and harmony are imperiled”,
2. “The failure of any nation to adopt humane conditions of
labour is an obstacle in the way of other nations which
desire to improve the conditions in their own countries”.
1.

1.
2.
Therefore the ILO assigns itself the following objectives :
Strengthen tri-partism and social dialogue
Promote and realise standards and fundamental principles and
rights at work
3. Enhance the coverage and effectiveness of social protection for
all
ILO CORE LABOUR STANDARDS &
OECD GUIDELINES FOR MULTINATIONAL
COMPANIES

The ILO is the only tri-partite international organisation :
Employers, trade unions and governments are all represented.

The three parties negotiate and draft international labour
conventions/standards. Convention will then be adopted by
the International Labour Conference (held every year in
June in Geneva, Switzerland). Once a convention is adopted, it will
become binding to a Member State if it is ratified by its national
Parliament.

Basic trade union rights (freedom of association &
collective bargaining) are fundamental labour rights which are
embedded in ILO conventions.
ILO CORE LABOUR STANDARDS &
OECD GUIDELINES FOR MULTINATIONAL
COMPANIES

The Organisation for Economic Cooperation and
Development was created in 1948 after the second world
war.

Its original mission was to administer the funds of the Marshall
Plan and only gathered European countries.

Today it is a Forum of 30 countries « committed to democracy
and the market economy »,

It provides statistic, economic and social data, analyses of
economic development and, act as a fierce advocate of free market
and free trade policies,

The OECD does not produce legislation.
ILO CORE LABOUR STANDARDS &
OECD GUIDELINES FOR MULTINATIONAL
COMPANIES
2.
Introduction to the ILO Core Labour Standards and the OECD Guidelines
---------------THE ILO CORE LABOUR STANDARDS

The ILO Declaration on Fundamental Principles and Rights at Work
Adopted in 1998, the Declaration commits Member States to respect and promote
principles and rights in 4 categories, whether or not they have ratified the relevant
Conventions.
ILO CORE LABOUR STANDARDS &
OECD GUIDELINES FOR MULTINATIONAL
COMPANIES
ILO CORE LABOUR STANDARDS
These 4 categories are:
freedom of association and the effective recognition of the right to
collective bargaining,
2. the elimination of forced or compulsory labour,
3. the abolition of child labour, and
4. the elimination of discrimination in respect of employment and
occupation.
1.
(Convention 87 – Freedom of Association and Protection of the Right to Organise, Convention 98 - Right to Organise and
Collective Bargaining, Convention 29 – Forced Labour, Convention 105 - Abolition of Forced Labour, Convention 111 –
Discrimination (Employment and Opportunity), Convention 100 – Equal Remuneration, Convention 138 – Minimum Age,
Convention 182 – Worst Forms of Child Labour)
(These are universal rights, they apply to all people in all States - regardless of the level of
economic development)
ILO CORE LABOUR STANDARDS &
OECD GUIDELINES FOR MULTINATIONAL
COMPANIES
FREEDOM OF ASSOCIATION & EFFECTIVE
RECOGNITION OF THE RIGHT TO COLLECTIVE
BARGAINING
These two fundamental rights are recognised in ILO Conventions n°87 (1948) and 98 (1949)
Convention n°87
“ Workers..., shall have the right to :

establish and to join organisations of their own choosing without previous authorisation.”

“to draw up their constitutions and rules, to elect their representatives in full freedom,
to organise their administration and activities and to formulate their programmes.”
“The public authorities shall :

refrain from any interference which would restrict this right or impede the lawful exercise
thereof”.

take all necessary and appropriate measures to ensure that workers and employers may exercise
freely the right to organise.
ILO CORE LABOUR STANDARDS &
OECD GUIDELINES FOR MULTINATIONAL
COMPANIES
FREEDOM OF ASSOCIATION & EFFECTIVE
RECOGNITION OF THE RIGHT TO COLLECTIVE
BARGAINING
Convention n°98 :
This convention defines the practical conditions that must be guaranteed to ensure
proper freedom of association and right to collective bargaining
“Workers shall be protect against acts of anti-union discrimination in respect of their employment”
What protection should be guaranteed ?
“ (a) Employment of a worker must not be subject to the condition that he shall not join a union or
shall resign from trade union membership;
(b) A worker shall be dismissed of or be otherwise prejudiced by reason of union membership or
because of participation in union activities.”
(c) Workers' organisations shall be protected against any acts which are designed to promote the
establishment of workers' organisations under the domination of employers or employers‘
organisations, or to support workers' organisations by financial or other means, with the object of
placing such organisations under the control of employers or employers' organisations”.
ILO CORE LABOUR STANDARDS &
OECD GUIDELINES FOR MULTINATIONAL
COMPANIES
FREEDOM OF ASSOCIATION & EFFECTIVE
RECOGNITION OF THE RIGHT TO COLLECTIVE
BARGAINING
The right to collective bargaining is detailed in Convention n°98 :
“Measures appropriate to national conditions shall be taken to encourage and promote the full
development (...) of (...) voluntary negotiation between employers (...) and
workers' organisations with a view to the regulation of terms and conditions of employment by means
of collective agreements”.
Where a company fails to respect the right to freedom of association, the right to organise and
to bargain collectively, it is the duty of the public authorities of the country concerned to
ensure that these rights are enforced....
... If the public authorities fail to ensure enforcement, a complaint to the ILO may be lodged by
interested parties.
The ILO Freedom of Association Procedure
ILO CORE LABOUR STANDARDS &
OECD GUIDELINES FOR MULTINATIONAL
COMPANIES
The OECD Guidelines for Multinational Enterprises

First adopted in 1976
 Revised and strengthened Guidelines adopted in 2000
 The Guidelines are not legally binding, but they are not optional for
companies
 Countries that have adopted the Guidelines should encourage the
enterprises operating in their territories to observe the Guidelines
wherever they operate’
The Guidelines are composed of 10 chapters containing principles by which
a company should abide in all its activities, wherever it operates.
ILO CORE LABOUR STANDARDS &
OECD GUIDELINES FOR MULTINATIONAL
COMPANIES
The OECD Guidelines for Multinational Enterprises
Four of these 10 chapters are of particular interest for trade unions as they
relate to economic and social matters.
Companies should :
 Contribute to sustainable economic, social and environmental progress,
respect human rights, build capacity with local communities, Support good
Corporate governance, promote awareness of company policies to employees
(Chapter 2, General policies)

Ensure that timely, regular, reliable and relevant information is
Disclosed. Information should cover basic information, company activities,
structure, financial situation and performance, further information regarding,
for example, social and/or environmental reporting are also covered. (Chapter
3, Disclosure)
ILO CORE LABOUR STANDARDS &
OECD GUIDELINES FOR MULTINATIONAL
COMPANIES
The OECD Guidelines for Multinational Enterprises
The abolition of child labour, elimination of forced labour, non
Discrimination (on grounds of race, colour, sex, religion, political opinion,
national extraction or social origin other than to address disadvantage),
observe standards not less favourable than comparable employer, employ
and train local labour. (Chapter 4, Employment)

The right to trade union representation, the right to ‘constructive
negotiations’, the provision of facilities to support these rights, provide
information necessary for meaningful negotiations, not use the threat of
transfer to unfairly influence negotiations or the right to organise. (Chapter 4, Employment)

Promote consultation and co-operation, provide information to
employees to give them a ‘true and fair view of the performance’ of the entity
or whole organisation, allow consultation with representatives of
management authorised to take decisions. (Chapter 4, Employment)

( = ILO FUNDAMENTAL LABOUR RIGHTS)
Where a company fails to respect these guidelines, an interested party (a trade
union, an EWC) may decide to lodge an OECD complaint.
ILO CORE LABOUR STANDARDS &
OECD GUIDELINES FOR MULTINATIONAL
COMPANIES
3.
How to use the ILO and OECD complaint mechanisms?
---------------The ILO Core Labour Standards and the OECD Guidelines are particular instruments:
There are no effective enforcement mechanisms, but a complaint mechanism exist.
The two instruments use different channels to achieve similar means :
 The ILO complaint mechanism is used to put pressure on governments so they enforce
their own labour legislation or their international commitment to respect the principle of
freedom of association and collective bargaining.
 The OECD complaint mechanism is used to put pressure on a company to have it
comply with basic principle of social responsibility and, additionally, make them bad
publicity.
ILO CORE LABOUR STANDARDS &
OECD GUIDELINES FOR MULTINATIONAL
COMPANIES

THE ILO COMPLAINT MECHANISM consists in writing a letter to the ILO Committee
on Freedom of Association, in which allegations of trade union rights’ violations are
described clearly and accurately.

The Committee on Freedom of Association was set up in 1951. It has examined more
than 2,000 cases since its creation. There are currently 142 under its scrutiny.
Paul van der Heijden
Chairman
Committee on Freedom of Association
International Labour Office
Route des Morillons, 4
CH - 1211 Geneva 22
Switzerland
The Committee on Freedom of Association will :
1. Examine the complaint,
2. Consider whether it falls under its remit,
3. Send a request to the Government of the country where the violation took place to allow
it to respond,
4. Draft recommendations with which the Government is « invited » to comply.
ILO CORE LABOUR STANDARDS &
OECD GUIDELINES FOR MULTINATIONAL
COMPANIES
The ILO complaint mechanism is only open to workers’ and employers’ organisations:
NGOs or even European Works Council are not entitled to lodge a complaint.


However, a European Works Council may lodge a complaint in the name of the trade
union of one of its member in solidarity with employees of its company abroad.
Example of cases when a complaint may be lodged :
Workers’ have been dismissed, downgraded, intimidated, threatened, hassled or discriminated
because 1/ they have joined a union, 2/ the union has been gaining membership and the
management decides to dismiss union members to undermine the union’s influence, 3/ they have
undertaken collective action (strike, lock-out, sit-in etc…),
When there is evidence that the management is supporting directly or not a competing trade union,
When the management refuses to negotiate after constructive attempts have been made on the part
of workers’ representatives...

It is important that any allegations that is made against an employer is supported by
hard and relevant evidence.

In some instances, the ILO complaint will come as a support to legal proceedings
undertaken against the employer at national level and often as a way to accelerate the
advent of a solution, either legal (through the court) or amicable.
ILO CORE LABOUR STANDARDS &
OECD GUIDELINES FOR MULTINATIONAL
COMPANIES

The OECD COMPLAINT MECHANISM will put pressure on the company rather than
on its Government, by reminding it universal principles of good governance and labour
rights. But the complaint procedure will involve the Government.

OECD member States have established « National Contact Points » (NCP), which
are in charge of examining complaints lodged against a company of that country. The
NCP will rather offer their « good offices » to settle a dispute amicably.

Contrary to the ILO mechanism, the OECD complaint mechanism is open to any
parties interested in a case of violation (NGOs, trade unions, employers’ association,
group of individuals…).

At present, only 90 cases have been lodged with the NCPs.

The complaint may be lodged against a company originating from an OECD country
or against the subsidiary of a company outside the OECD area. The Guidelines therefore
apply worldwide... (Bulgaria and Romania are not members of the OECD but the
Guidelines apply to companies and their subsidiary having operations there).

Do the Guidelines apply to the supply chain ?
ILO CORE LABOUR STANDARDS &
OECD GUIDELINES FOR MULTINATIONAL
COMPANIES
How to proceed concretely with the complaint ?

The complaint must be written and sent to the National Contact Point (addresses are
made public on www.oecd.org),

It must explain what is your stake, your link to the company or to the violation,

It must state clearly what paragraphs or chapters of the Guidelines have been
breached (prioritise !)

It must detail accurately facts that demonstrate that specific chapters of the Guidelines
have been breached.

It must bring hard evidence supporting allegations of violations.

It must stress the urgency of the situation and request a prompt examination of the
complaint...
ILO CORE LABOUR STANDARDS &
OECD GUIDELINES FOR MULTINATIONAL
COMPANIES
4.
Conclusion
---------------
The ILO and OECD complaint mechanisms are international instruments,
recognising workers’ rights to freedom of association and collective bargaining as
universal rights,

They are accessible to stakeholders not directly affected by a violation (EWCs in the
case of the OECD Guidelines, other trade unions, EMF),

They can be instruments of trade union solidarity in order to defend trade union
rights in countries where enforcement is weak,

They offer two different channels to defend and promote trade union rights : either by
putting pressure of the Government of the country where the violation takes place or on
the company itself.

In both cases, publicity of the violation is one the best instrument to put pressure on a
company and/or its subsidiaries.
ILO CORE LABOUR STANDARDS &
OECD GUIDELINES FOR MULTINATIONAL
COMPANIES
Weaknesses of the complaint mechanisms :

Both the ILO and OECD complaint mechanism are slow to deliver...
The ILO system is dependent on the “good will” of the member State to respond in
due time,


The OECD system is dependent on the “good will” of the NCP and of the company,

The lack of possible sanctions for companies or government is the main weakness of
these instruments.
Nevertheless, in both cases the accumulation of cases creates a form of “jurisprudence”
which is favourable to workers and their organisations.