Social dialog and BWI startegies to address the shadow economy challange

1. Social dialog and BWI startegies to address the shadow economy challange Budapest, 10 February 2010

2. BWI – Building and Wood Workers‘ International BWI in figures: Created in December 2005 by IFBWW and the WFBW • Is a Global Union Federation grouping free and democratic unions with members in the Building, Building Materials, Wood, Forestry and Allied sectors. • 318 trade unions representing around 12 million members in 130 countries. Our mission: • to promote the development of trade unions in our sectors throughout the world and to promote and enforce workers rights in the context of sustainable development

3. BWI – Building and Wood Workers‘ International Key areas of our strategic plan 2010-2013 • Organising and Trade Union building: Increase membership and workplace representation through unions which have a rights based approach, strong structures, clear policy agendas and organising ability. • Bargaining: Raise standards through binding agreements and strengthen systems of Collective Bargaining to give greater coverage to workers in our sectors. • Influencing Policy and improving Institutional participation: It is of fundamental importance to improve the institutional capacity and to support tripartite industry structures in our sectors, if we are to have meaningful social dialogue, tripartite working relationships and sustainable industrial policy development.

4. BWI – Building and Wood Workers‘ International BWI approuches on achieving decent work and sustainabel development in BWI sectors: • Promoting ILO Core Labour Standards: a) in international framework agreements with MNEs (IFAs), b) through forest certification c) sustainabel forest management and wood product supply chains c) in PublicContracts (C94) and infrustructure projects funded by the International Financial Institutions d) Sports mega campaigns e) Campaigns on OHS, child labour, migrant workers rights, gender equite and youth

5. Cross-Bordedr Social Dilaogue and Agremeents: MNC Engagements BWI signed several IFAs on workers rights with major MNCs, namely with: 1. IKEA (furniture, Sweden) 2. Faber-Castell (pencils, Germany) 3. Hochtief (construction, Germany) 4. Skanska (construction, Sweden) 5. Ballast Nedam (construction, Holland) 6. Stabilo (instruments for writing and cosmetics, Germany) 7. Impregilo (construction, Italy) 8. Veidekke (construction, Norway)and 9. Lafarge (construction, France) 10. Royal BAM Groep (construction, Netherlands) 11. Staedtler (writing and drafting, Germany) 12. VolkerWessels (construction, Netherlands) 14. Wilkhahn (office furniture, Germany)

6. BWI – Building and Wood Workers‘ International in the Forestry

7. BWI – Building and Wood Workers‘ International • The largest single organisation representing social interests in forest certification • Close cooperation with paper workers‘ unions (ICEM) • Supports all certification efforts which incorporate ILO Core Labour Standards • Encourages and supports involvement by affiliates nationally and locally

8. 2 Key global systems • FSC – Forest Stewarship Council (Savet upravljanja šumama) www.fsc.org • One global set of rules • PEFC – Programme for the Endorsement of Forest Certirfication (Program za prihvatanje sertifikacije šuma) www.pefc.org • More of a federation of national systems

9. Why are unions interested in certification ? • To create employment that is sustainable • To support an industry which is sustainable: • Economically, Environmentally and Socially • Improvement of working and living conditions

10. What is needed? • Same rights for workers in downstream industries as in forestry • Rights which are verified as being the reality • A safer, more sustainable industry • Recognised as such by consumers and decision-makers • Upholding trade union rights are the key component • Trade union rights are human rights

11. What instruments exist ? • Only one set of internationally-recognised standards • ILO Core Conventions • Ratified by the majority of governments and included in labour legislation • Developed uniquely through a tripartite dialogue • Like any legal system, there are violations • Violations need to be addressed and corrected in certification systems

12. International Labour Conventions Freedom of Association Right to organise and to collective bargaining Child labour No discrimination Social Security Minimum Wage Working hours ILO Code of Practice on Safety and Health in Forestry Work 1997 Health and Safety Conventions: 155, 161, 170

13. Verfied Adherence • Decisions of ILO Committee on national adherence should apply where legislation is either lacking or not enforced • All certificate holders should be required to demonstrate compliance with these standards

14. The vision • Certification standards that produce real improvements for all stakeholders • Improved respect and acknowledge-ment of certification as a real tool in sustainability • Getting rid of pictures like this:

16. BWI – Building and Wood Workers‘ International in the Construction

17. working life in construction • Construction provides much needed employment for many of the world’s poorest and most vulnerable people. • 150 million workers. • 75%in developing countries • 5 trillion dollar industry.

18. Construction provides work for low skilled or entry level workers • Of special importance for the landless poor • Large numbers of rural - urban migrants look for work in construction • The industry is dominated by micro enterprises • 90% of firms have less than ten workers • Workers are recruited through intermediary agents, labour only subcontractors or directly at pick up points for day labouring

19. Outsourcing of labour through chains of subcontractors and hiring through labour-only subcontractors is now the norm, offering little direct employment. • The industry uses large numbers of bogus self employed workers and informal labour. This has had a profound, negative effect on job security, safety and health and skills training and social security coverage. • These exploitative employment policies and labour practices have also weakened trade union organisation and undermined collective bargaining in the sector.

20. Legislation Promotion activities: labour rights: guidelines, information, and training, assistance, workplace inspections, interviews. Targeted campaigns on specific hazards and prevention measures. Enforcement and real deterrents:the fear factor: properly resourced inspectorate; enforce laws, meaningful costs of fines and compensation; social stigma and loss of license or liberty for negligent employers.

21. Informality and cutthroatcompetition undermine rights • There is an extremely high level of competition in the construction industry and contractors win bids by lowering their costs. • Labour is a major component of these costs. • “Outsourcing” offers the opportunity to secure significant cost reductions by passing responsibilities to subcontractors, and by avoiding responsibilities for labour legislation, wages, hours,health, safety and welfare regulations and social costs (tax, insurance).

22. Construction contract • In this situation, the construction contract is an important mechanism for the implementation of labour standards. • There is a clear need for clauses that relate specifically to labour standards to be included in bidding and contract documents. Strong argument for direct employment. • There must be a clear flow of responsibilities from the client, prime, subcontractors to all workers on site

23. BWI Lobbying on procurement • Labour clauses in Public Contracts that reflect the key ILS - public procurement reform is underway…. • Multilateral Development Banks: World Bank and International Finance Corporation, Regional Development Banks adopted ILS • ILO Convention 94, opportunities to raise need for social objectives • Modernise National Procurement laws and regulations to include labour clauses

24. World Bank Clauses in SBDs for Procurement of Works (10mUSD+) • 6.1 Engagement of Staff and Labour • 6.2 Rates of Wages and Conditions of Labour • 6.5 Working Hours • 6.6 Facilities for Staff and Labour • 6.7 Health and Safety (and HIV AIDS) • 6.20 Prohibition of Forced/ Compulsory Labour • 6.21 Prohibition of Harmful Child Labour • 6.22 Employment Records of Workers • Sub-Clause 6.23 Workers’ Organizations: • Sub-Clause 6.24 Non-Discrimination and Equal Opportunity

25. International Finance Corporation The private sector lending wing of the World Bank Group introduced the new Performance Standard 2 in April 2006. Commits IFC clients to respect national law and international standards on: • Freedom of association and collective bargaining • Non-discrimination and equality of opportunity • Freedom from child labour • Freedom from forced labour • Retrenchment –required to have a retrenchment plan • Working relations – documentation and communication of conditions • Working conditions – compliance with collective bargaining and national law on pay, hours, OSH. • Grievance mechanisms – must be in place for workers • Human resource policy - the client is also expected to have a human resource policy in place. • The policy applies to non-employee workers, contract labour, sub contractors and suppliers

26. Mega-Sports Campaign • Introduced an area of BWI Work in 2006 • World Cup 2010 in South Africa was the first Campaign launched

27. Mega-Sports Campaign • We engaged FIFA • Unions gained in organising, workers protection and bargaining

28. BWI – Building and Wood Workers‘ International Jasmin Redžepović Project Coordinator BWI Project Office for SEE – Sarajevo www.bwint.org