OECD Guidelines for MNEs

1. OECD Guidelinesfor MNEs • Adopted in 1976, and reviewed in 2000 • Guidelines, major features: • comprehensive set of rules, multilaterally endorsed, binding for adhering governments which are requested to promote their application by MNEs operating in their countries and by MNEs based in their countries operating worldwide • voluntary to enterprises, not legally but morally binding; • Major components: NCP, CIME (Committee on International Investment and Multinational Enterprises) , and TUAC

2. OECD Guidelines : content • The Guidelines consist of ten chapters covering most aspects of company behaviour: • Concepts and Principles, • General Policies, • Disclosure, • Employment and Industrial Relations (FoA, CB), • Environment (OSH), • Combating Bribery, • Consumer Interests, • Science and Technology, • Competition and (10) Taxation.

3. Trade Union Advisory Committee to the OECD - TUAC • - international trade union organisation which has consultative status with the OECD; • TUAC represents views of organised labour in industrialised countries; • 56 national trade union centres in 30 OECD countries, covers 66 million workers.

4. OECD Guidelines : application • The Guidelines apply to MNEs operating in or from: • the 30 OECD member countries, plus currently nine non-OECD members: Argentina, Brazil, Chile, Estonia, Israel, Latvia, Lithuania, Romania and Slovenia. • Guidelines also apply to these companies’ operations worldwide.

5. Role of TU • Check OECD Annual Report on Guidelines • When a company breaches the Guidelines, TU can raise this case with the NCP • Consult TUAC; it works closely with ICFTU, WCL, ETUC and GUFs.(http://www.tuac.org)

6. Code of Conduct • Is a written policy or statement of principles adopted voluntarily by a company to express its commitment toward a particular conduct • NOT NEGOTIATED BUT UNILATERAL DECLARATION • Code of conduct for business • consumer rights, product safety or environmental protection • ethical behaviour codes for employees • International instruments to monitor the social responsibility of business • ILO MNE Declaration • OECD Guidelines for MNEs • attempt by UN to set a global code

7. New Code of Conduct Four Major Characteristics • Purely private, voluntary initiative (PVI) • Response to the situation of poor labour standards created by the failure of national governments; • international application • Cross-cutting application to suppliers and subcontractors

8. Definition of New Code of Conduct “Commitments voluntarily made by companies, associations or other entities which put forth standards and principles for the conduct of business activities in the marketplace” (“Workers’ tool or PR ploy?” – by Dr. I. Wick)

9. Number of New Codes • 246 codes (June 2000 by OECD study) • 118 by individual companies, 92 by industry and trade associations, 32 by partnerships between stakeholders and 4 by inter-governmental organizations • Only 163 mention monitoring • Only 30% mention freedom of association, and only10.1% refer to ILO codes

10. Why New Codes are important for Trade Unions? New Codes are on “labour practice” Great potential and also danger Most companies adopt COC without involving trade unions So, they can be used as an excuse for having no union Truly applied, codes may establish ILSs as binding international framework for responsible corporate behaviour So, union’s involvement is vital

11. CSR and TU • CSR could be a positive process for TU if: - Strengthen FoA and the creation of unions • Strengthen C.B • Support organising • Not only comply with the law but it goes beyond national legislation (socially and ethically responsible to stakeholders/local communities) • Alliances of TU and civil society

12. Negotiated agreements and global labour relations INTERNATIONAL FRAMEWORK AGREEMENTS • Instruments negotiated between a MNE and a Global Union Federation (GUF) concerning international operations of the company; • MNEs commit themselves to applying the same labour standards to their employees in all the different countries where they operate

13. Framework Agreements • Implement Core Labour Standards; • Apply “Decent working conditions”; • Apply environmental standards; • Promote good labour practices

14. Major Framework Agreements • IUF- Danone (1988), Accor hotel group (1995), Nestle (1996), Del Monte (2000) and Chiquita (2001) • IFBWW- Ikea (1998), Faber-Castell (2000), Hochtief (2000) • ICEM- Statoil (1998), Freudenberg (2000) • UNI- Telefonica (2000), OTE (2001), Carrefour (2001)

15. Codes of conduct and FA

16. Important Aspects for FA • Capacity of GUFs to engage in F.A. with a large number of MNEs • Monitoring F.A. • Capacity of MNEs to control subcontractors or supply-chains • Extension of EWC versus GWC and strategic alliances between European Trade Unions and GUFs. • Agreements between MNEs and GUFs for the implementation of monitoring of FA

17. International Instruments International ILCs Framework Agreements ILO Tripartite Declaration on MNCs UN Global Compact CFA ILO Declaration on F.P.R.W. OECD Guidelines for MNCs Code of Conducts Social Labelling Regional Economic Agreement Public Private National Labour Relation / Tripartite Committees Labour Legislation National

18. Policy and Strategy for T.U. • Set up institutional mechanisms and capacities to fully utilize all the available international instruments • Regular reporting • Complaints procedures in case of violation (case: CROATIA, asbestos) • Multilateral approaches to problem-solving • Importance of International, Regional, and Sub-regional trade union networks/IT and communication systems • Networking / SoliComm portal http://www.solicomm.net/

19. PROGRAMME FOR WORKERS’ ACTIVITIES OF THE ILO TURIN CENTRE(ACTRAV)WWW.ITCILO.IT/ACTRAV ACTRAV-Turin