1 / 21

Setting Standards of Labor Practices in Global Production Networks –

Introduction: Taking Stock of IFAs. Setting Standards of Labor Practices in Global Production Networks – Trade Union Involvement via International Framework Agreements?

tocho
Download Presentation

Setting Standards of Labor Practices in Global Production Networks –

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Introduction: Taking Stock of IFAs Setting Standards of Labor Practices in Global Production Networks – Trade Union Involvement via International Framework Agreements? Michael Fichter, Markus Helfen & Jörg SydowInstitute of Political Science & Institute of Management,Freie Universität Berlin, Germany GUF WorkshopFriedrich-Ebert-Foundation / Hans-Böckler-Foundation IGM BildungsstätteMay 18, 2009 Fichter, Helfen & Sydow: Ensuring Core Labor Standards through IFAs?

  2. Context: Trends in labor related standards and Initiatives Scope ILO Tripartite Declaration of Principles ILO core labour standards WTO rules ILO Conventions OECD Guidelines for Multinational Enterprises EU directives UN Global compact ISO 26000 OHSAS 18001 Global reporting initiative (GRI) Business Social Compliance Initiative International Framework Agreements SA 8000 CSR Europe National state regulation Corporate codes of conduct Stewardship and charity Social investment Sanctions, Obligations Fichter, Helfen & Sydow: Ensuring Core Labor Standards through IFAs?

  3. Definition: International Framework Agreements (IFAs) are… • … based on contract relationships between transnational corporations (TNCs) und global union federations (GUFs) which within a defined space • afford a mutual recognition of both sides, • provide for mechanisms of conflict resolution and • set standards regarding • ILO core labour standards (union rights and collective bargaining, no forced or child labour, no discrimination), • additional ILO conventions (i.e. work- ing time, pay, health & safety, repre- sentation). As such, IFAs are an instrument of regulating international labour relations positioned between unilateral self-restrictions of TNCs and international law (ILO). Total number of IFAs (1994 to 2008) But: there is only a relatively small number of IFAs (ca. 80), compared to some 65,000 TNC (UNCTAD 2006: 122) ! Fichter, Helfen & Sydow: Ensuring Core Labor Standards through IFAs?

  4. What motivates TNCs on the one hand, and trade unions or employee representatives on the other hand, to negotiate and sign IFAs? How are IFAs being implemented at multiple levels of the global production network? To what extent are managers, suppliers and unions informed and involved at different levels? Research Questions Fichter, Helfen & Sydow: Ensuring Core Labor Standards through IFAs?

  5. Research Design • Key Variables in Regard to Implementation(Impact and Interaction to be determined): • The structure of the particular branch or sector • TNC organization structures and management. • Labor relations in the TNC and the global value network. • The political, institutional and socio-economic environment of TNC operations (country-specific; global impact) Fichter, Helfen & Sydow: Ensuring Core Labor Standards through IFAs?

  6. Research Design • Empirical Research across the Global Value Network • Dual Focus on Management and Trade Unions/Employee Representatives • Embedding the Empirical Findings in Broader Social Science Discourses • Global Governance • Corporate Social Responsibility • Global Production Networks • Cross-Border Labor Relations Fichter, Helfen & Sydow: Ensuring Core Labor Standards through IFAs?

  7. Context: IFAs and the regulation of labor Management of global production networks (GPN), including IHRM TNCs and corporate social responsibility (CSR) IFAs “Global governance” and industrial relations: ILO labor standards, GUFs, NGOs, … Fichter, Helfen & Sydow: Ensuring Core Labor Standards through IFAs?

  8. Research Design: Case Study Selection • Case Selection: First Wave – 16 TNC • Four GUFs account for 72 of 80 IFAs: BWI, ICEM, IMF, UNI • Region of Origin (EU) + Location of Subsidiaries • Second Wave – 8 TNC • expert interviews (1 x management, 1 x union/wc) • identification of "good practice" HQ Sub1-4 Sup1 Sup2 Fichter, Helfen & Sydow: Ensuring Core Labor Standards through IFAs?

  9. Research design: Case selection AllIFA cases(80 cases) Pre-selection (16 cases) Potential case studies (8 Fälle) Case Studies(4 cases) Expert interviews:Identification of „best practices“ Criteria: GUFs, region of origin, host countries IMF: Bosch, Daimler, Leoni, BMW, GEA, VW ICEM: Rhodia, Evonik, Freudenberg BWI: Lafarge, Hochtief, Skanska UNI: ISS, Carrefour, G4S, Securitas Fichter, Helfen & Sydow: Ensuring Core Labor Standards through IFAs?

  10. Research design: Criteria of case selection Region of origin ContinentalEurope 1 region of origin(majority of IFAs has been negotiated and concluded by TNCs from continental Europe). • 4 Industries(four GUFs have signed the majority of IFAs). • metalworking (IMF) • services (UNI) • chemicals (ICEM) • building & construction (BWI) One TNC per industry/GUF IMF UNI ICEM BWI • 4 Host countries (regional diversity, international division of labor): • Brazil • India • Turkey • USA Host countries Brazil India Turkey USA Fichter, Helfen & Sydow: Ensuring Core Labor Standards through IFAs?

  11. ManagementLaborNGONo. of Interviews Headquarters HRM GUF 1-2 4-8 Production National Trade Union(s) Sourcing WWC/EWC/other Subsidiary HRM National Trade Union(s) 1-2 3-8 Production employee reps. Sourcing other TU, empl. reps. Supplier HRM/Prod. Trade Union(s) empl. reps. 1-2 5-8 Supplier HRM/Prod. Trade Union(s) empl. reps. Minimum / Maximum per Case Study: 12 / 25 Research Design: Interview plan Fichter, Helfen & Sydow: Ensuring Core Labor Standards through IFAs?

  12. global union federations (5): IMF, ICEM, BWI, UNI First Results: Case Studies and secondary content analysis Secondary data Primary data: 24 Interviews • data set of 72 IFA cases containing information on year of agreement, industry, ownership structure, number of employees, etc.) • TNCs (11): • TNCs with an IFA: Evonik, Freudenberg, Rhodia, • Leoni, BMW, Daimler, • Lafarge, Hochtief, • ISS • TNCs without an IFA: • Deutsche Bank, BASF • Qualitative and quantitative content analysis of IFA texts (Atlas.ti): • Goals and Motives: HRM, competitiveness, labour relations • Substantial Rules: ILO core conventions and additional ILO conventions, other substantial rules, etc. • Procedural Rules: Forms of monitoring, extension to suppliers, etc. • country experts, NGOs, Employers (8): Brazil, India, Turkey, USA, NGO, IOE • Additional information for 16 TNCs which might enter the case study group and 4 GUFs Fichter, Helfen & Sydow: Ensuring Core Labor Standards through IFAs?

  13. Political, institutional and socio- economic conditions at a TNCs‘ country of origin IFA Origins: Country and Sector (GUFs) IFAs by TNCs‘ country of origin (n=72) • Activities and strategies of GUFs IFAs by global union federation (GUFs) (n=72) Fichter, Helfen & Sydow: Ensuring Core Labor Standards through IFAs?

  14. Initial findings:Actor constellation on employees‘ side Actor constellation on labour‘s side is marked by diversity: a) global union federations (GUFs), b) In around 75 percent of all cases national unions and/or employee representatives (EWC) are additionally involved. c) Interpretation: successful cooperation or vertical and horizontal divergence of interests? IFAs by actor constellation on labour‘s side (n=72) Fichter, Helfen & Sydow: Ensuring Core Labor Standards through IFAs?

  15. Initial findings: Monitoring of subsidiary’s compliance Forms of monitoring show differing degrees of institutionalization depending: a) on the GUF involved in negotiations (*):IMF: EWC embodiment, ICEM, UNI: meetings only, BWI: special bodies. b) on TNCs’ country of origin (*): German TNCs and Western Europe: EWC embodiment, South European TNCs: special body, Scandinavian TNCs: meetings only. IFAs by form of monitoring (n=72) Fichter, Helfen & Sydow: Ensuring Core Labor Standards through IFAs?

  16. Initial findings: Formal extension to suppliers Formal extension to suppliers by sanctioning is positively associated with: a) form of monitoring (*): (EWC embodiment and special body go along with stronger forms of sanctioning), b) individual complaint procedures(*): (participatory HR management style) c) specific GUFs (*):(IMF and BWI) and d) TNC‘s country of origin (*):(Western and Southern Europe vs. Scandinavia and other countries). Extension of IFAs to suppliers by type of sanctions (n=72) Fichter, Helfen & Sydow: Ensuring Core Labor Standards through IFAs?

  17. Initial Findings on actors‘ motivation: Goals and expectations of management Transnational Corporations (TNCs) Global union federations (GUFs) • credibility of CSR activities • risk management and legitimation of management decisions • management of global production networks by standardization • Avoidance of state regulation • recognition as a negotiation partner • institutionalization of collective conflict resolution • minimum labour standards • definition of an independent role for GUFs • creation of organizing space Fichter, Helfen & Sydow: Ensuring Core Labor Standards through IFAs?

  18. Initial Findings:Overall CSR typology Voluntary CSR initiatives Holistic-integrated management approach • integration of sustainability dimensions • several management functions, processes, structures and locations involved • management incentives and empowerment • code of conducts • reference to global compact • standard reporting & controlling • issue management & public relations Initial stage of CSR Union involvement in management practices • reference to Corporate Governance Standards • complaint handling by management • „meetings“ • Implementation process • special monitoring procedures • Robust conflict-resolution mechanism Fichter, Helfen & Sydow: Ensuring Core Labor Standards through IFAs? Fichter, Helfen & Sydow: IFAs and the Transfer of Practices in Global Production Networks

  19. Initial Findings: Headquarter-Subsidiary relationships Problems for implementation and monitoring emerge out of complicated HQ-subisdiary relationships, and complex supplier relationships in value chains: Subsidiaries as completely owned and controlled by focal multinational Subsidiaries as legally independent entities, sometimes not fully owned by focal multinational Subsidiaries as joint-ventures, partnerships Sub-contracting: first and second tier suppliers Sub-contracting: informal economy Fichter, Helfen & Sydow: Ensuring Core Labor Standards through IFAs?

  20. Initial Findings: Implementation: processes, instruments Implementation ad hoc vs. implementation by integration in management practices • ad-hoc approach of implementation: complaint handling by management and „meetings only“ • systematic implementation: special monitoring procedures and bodies, definitions of sanctions for suppliers and union involvement The type of GUF involved has an impact on the potential of labour-related CSR to be effectively implemented throughout GPN. Fichter, Helfen & Sydow: Ensuring Core Labor Standards through IFAs?

  21. Preliminary Conclusions • IFAs have a very limited impact in the global economy • IFAs may protect workers from financialization pressures, but could become less relevant in the crisis. • Multiple actors (signatories) on labor side could indicate still unresolved conflicts and power struggles • Unions generally junior partner in implementing and monitoring IFAs. Need for stronger union input. • Management places IFAs in context of a broader CSR repertoire • Newer IFA (e.g. Rhodia, ISS) are models for using IFAs for union organizing. Fichter, Helfen & Sydow: Ensuring Core Labor Standards through IFAs?

More Related