The ILO Tripartite Declaration of The ILO Tripartite Declaration of Principles concerning Multinational Principles concerning Multinational

Enterprises and Social PolicyEnterprises and Social Policyandand

The OECD Guidelines for Multinational The OECD Guidelines for Multinational EnterprisesEnterprises

INTERNATIONAL TRAINING CENTRE OF THE ILO - Turin (Italy)INTERNATIONAL TRAINING CENTRE OF THE ILO - Turin (Italy)

26 November 200326 November 2003

(Fons Vannieuwenhuyse – ICFTU)(Fons Vannieuwenhuyse – ICFTU)

What are they?What are they?

The ILO Declaration and the OECD guidelines express the shared view of what is believed to be good corporate behaviour.

Both are a set of recommendations for multinational enterprises agreed by governments, trade unions, employer federations and, in the case of the OECD Guidelines, some NGO’s.

What they have in commonWhat they have in common At the national level, they At the national level, they do not replace do not replace

binding regulationsbinding regulations (the law) to govern (the law) to govern corporate activity and global markets.corporate activity and global markets.

They are in addition to that.They are in addition to that.

At the international levelAt the international level, in the almost , in the almost complete absence of international legally binding complete absence of international legally binding rules, the ILO Declaration and the OECD rules, the ILO Declaration and the OECD Guidelines are Guidelines are one of the very few ‘agreed’ one of the very few ‘agreed’ international instrumentsinternational instruments for trade unions to for trade unions to help create an environment in which workers can help create an environment in which workers can organise and unions can freely perform their organise and unions can freely perform their functions.functions.

They are not binding in a legal sense

but as they have been adopted by governments (i.e. governments agreed that this is what is expected of companies)

they are not voluntary either.

They are minimum standards

This is different from a “if you want to do something more than the others, this is what you can do” approach.

Their Their application does not depend on the application does not depend on the endorsement of companiesendorsement of companies, as they have been , as they have been adopted at the international leveladopted at the international level and apply and apply to companies in general.to companies in general.

Companies can also Companies can also not pick and choosenot pick and choose among the provisions of the Declaration and the among the provisions of the Declaration and the Guidelines, nor subject them to their own Guidelines, nor subject them to their own interpretations.interpretations.

For bothFor both instruments, there is instruments, there is a procedure to a procedure to determinedetermine what they actually mean. what they actually mean.

No definition of a multinationalNo definition of a multinational

(ILO Declaration): “to serve its purpose this Declaration does (ILO Declaration): “to serve its purpose this Declaration does not require a precise legal definition of multinational not require a precise legal definition of multinational enterprises”. enterprises”.

(OECD Guidelines): «A precise definition of multinational (OECD Guidelines): «A precise definition of multinational enterprises is not required for the purposes of the enterprises is not required for the purposes of the Guidelines.Guidelines.(……)(……)

The Guidelines are The Guidelines are addressed to all the entities within addressed to all the entities within the multinational enterprisethe multinational enterprise (parent company and/or (parent company and/or local entities).»local entities).»

Encourage, where practicable, business partners, Encourage, where practicable, business partners, including suppliers and sub-contractorsincluding suppliers and sub-contractors, to apply , to apply principles of corporate conduct compatible with the principles of corporate conduct compatible with the GuidelinesGuidelines

The difference between themThe difference between them

In very general terms:In very general terms:The ILO Declaration has more The ILO Declaration has more detailed recommendations on labour detailed recommendations on labour issues, while the OECD Guidelines issues, while the OECD Guidelines cover a broader range of corporate cover a broader range of corporate activities.activities.

HistoryHistory Both were Both were agreed upon and adopted in the agreed upon and adopted in the

70’s70’s, at a time when there was public concern , at a time when there was public concern that Multinational enterprises were becoming too that Multinational enterprises were becoming too powerful.powerful.

The OECD Guidelines were adopted in The OECD Guidelines were adopted in 19761976, the , the ILO Declaration in ILO Declaration in 19771977. .

A few years later, the negotiations about a UN A few years later, the negotiations about a UN code on Transnationals failed.code on Transnationals failed.

There was a There was a first phasefirst phase where both were used where both were used actively, until the middle of the 80’s. actively, until the middle of the 80’s. Several Several cases on the Guidelines were handled during the cases on the Guidelines were handled during the first 10 years following their adoption.first 10 years following their adoption.

A A second phasesecond phase (during “the wild years of liberalisation”), (during “the wild years of liberalisation”), when they were not used much, lasted until the end of the when they were not used much, lasted until the end of the 90’s.90’s.

During the During the 90’s90’s, there was a lot of public action concerning , there was a lot of public action concerning specific companies and sectors, that became notorious specific companies and sectors, that became notorious because of their negative labour, human rights and because of their negative labour, human rights and environmental practices.environmental practices.

At the end of the 1990’s, this led to a At the end of the 1990’s, this led to a boom in “Corporate boom in “Corporate Social ResponsibilitySocial Responsibility”” and to much greater public and to much greater public awareness about these problems – awareness about these problems – The third faseThe third fase..

As part of this, there was a ‘re-awakening’ of both As part of this, there was a ‘re-awakening’ of both instruments, mainly of the OECD Guidelines, leading to an instruments, mainly of the OECD Guidelines, leading to an important revision of the OECD Guidelines in 2000important revision of the OECD Guidelines in 2000. . This was also partly a result of the failure of the Multilateral This was also partly a result of the failure of the Multilateral Agreement on Investment (MAI)Agreement on Investment (MAI)

The ILO Tripartite The ILO Tripartite Declaration of Declaration of

Principles concerning Principles concerning Multinational Multinational

Enterprises and Social Enterprises and Social PolicyPolicy

What is the Declaration about?What is the Declaration about?

The ILO Declaration is a The ILO Declaration is a set of set of recommendations concerning recommendations concerning basic labour practices, based on basic labour practices, based on ILO principlesILO principles..

The Declaration is The Declaration is universally universally applicable and comprehensiveapplicable and comprehensive. .

The significance of the ILO Tripartite The significance of the ILO Tripartite Declaration is that it identified a long list Declaration is that it identified a long list of conventions that contain principles that of conventions that contain principles that are appropriate to apply to enterprises as are appropriate to apply to enterprises as well. In that sense, it is an important and well. In that sense, it is an important and historic document. historic document.

A number of the A number of the ILO ILO core conventionscore conventions were “were “transposedtransposed” so that the principles ” so that the principles would apply to enterprises as well.would apply to enterprises as well.

Extracts of the Extracts of the ILO Declaration ILO Declaration

ContentsContentsThe ILO declaration has three different chapters:The ILO declaration has three different chapters:

General PoliciesGeneral Policies Employment promotionEmployment promotion Equality of opportunity and treatmentEquality of opportunity and treatment Security of employmentSecurity of employment TrainingTraining

Conditions of work and lifeConditions of work and life Wages, benefits and conditions of workWages, benefits and conditions of work Safety and HealthSafety and Health

Industrial relationsIndustrial relations Freedom of Association and the right to organiseFreedom of Association and the right to organise Collective bargainingCollective bargaining ConsultationConsultation Examination of grievancesExamination of grievances Settlement of industrial disputesSettlement of industrial disputes

IntroductionIntroduction““Through international direct investment Through international direct investment

and other means”,… “enterprises can and other means”,… “enterprises can bringbring substantial benefitssubstantial benefits to home and to home and host countries.”host countries.”

““On the other hand, the advances made by On the other hand, the advances made by multinational enterprises” …”may lead tomultinational enterprises” …”may lead to abuseabuse of concentrations of economic of concentrations of economic power and to conflicts with national policy power and to conflicts with national policy objectives and with the interest of the objectives and with the interest of the workers.”workers.”

Employment promotionEmployment promotion

““Multinational enterprisesMultinational enterprises, particularly , particularly when operating in developing countries, when operating in developing countries, should should endeavour to increase endeavour to increase employment opportunities and employment opportunities and standardsstandards.”.”

““Multinational enterprises should give Multinational enterprises should give priority to the employmentpriority to the employment, , occupational development, promotion and occupational development, promotion and advancement advancement of nationalsof nationals of the host of the host country at all levels”.country at all levels”.

Equality of opportunity and Equality of opportunity and treatmenttreatment

““All governments should pursue All governments should pursue policies designed to policies designed to promote promote equality of opportunity and equality of opportunity and treatment in employmenttreatment in employment, with a , with a view to eliminating any view to eliminating any discrimination based on race, colour, discrimination based on race, colour, sex, religion, political opinion, sex, religion, political opinion, national extraction or social origin.”national extraction or social origin.”

Security of employmentSecurity of employment ““In considering changes in operations (including In considering changes in operations (including

those resulting from mergers, take-overs or those resulting from mergers, take-overs or transfers of production) which would have major transfers of production) which would have major employment effects, multinational enterprises employment effects, multinational enterprises should should provide reasonable notice of such provide reasonable notice of such changeschanges to the appropriate government to the appropriate government authorities and representatives of the workers in authorities and representatives of the workers in their employment and their organizations their employment and their organizations

so that the implications may be examined jointly so that the implications may be examined jointly in order to mitigate adverse effects to the in order to mitigate adverse effects to the greatest possible extent. This is particularly greatest possible extent. This is particularly important in the case of the closure of an important in the case of the closure of an entity involving collective lay-offs or entity involving collective lay-offs or dismissalsdismissals.“.“

TrainingTraining

““multinational enterprises should ensure multinational enterprises should ensure that that relevant training is providedrelevant training is provided for all for all levels of their employees in the host levels of their employees in the host country”, …,” to meet the needs of the country”, …,” to meet the needs of the enterprise as well as the development enterprise as well as the development policies of the country.” policies of the country.”

““Such training should, to the extent Such training should, to the extent possible, possible, develop generally useful develop generally useful skillsskills and and promote career promote career opportunitiesopportunities.”.”

Wages, benefits and conditions of workWages, benefits and conditions of work

““Wages, benefits and conditions of work Wages, benefits and conditions of work offered by multinational enterprises should offered by multinational enterprises should be be not less favourable to the workers not less favourable to the workers than those offered by comparable than those offered by comparable employers in the countryemployers in the country concerned.” concerned.”

They should be “They should be “at least adequate to at least adequate to satisfy basic needs of the workers satisfy basic needs of the workers and their familiesand their families.”.”

Safety and healthSafety and health

““Multinational enterprises should Multinational enterprises should maintain the highest standards of maintain the highest standards of safety and health, in conformity with safety and health, in conformity with national requirements …”.national requirements …”.

Industrial relationsIndustrial relations

Freedom of association and the Freedom of association and the right to organiseright to organise

““Workers employed by multinational enterprises, Workers employed by multinational enterprises, as well as those employed by national enterprises as well as those employed by national enterprises should, without distinction whatsoever, have the should, without distinction whatsoever, have the right to establishright to establish andand, subject only to the rules , subject only to the rules of the organization concerned, to of the organization concerned, to join join organizations of their own choosingorganizations of their own choosing without without previous authorisation.” previous authorisation.”

““They should also They should also enjoy adequate protectionenjoy adequate protection against acts of anti-union discrimination in against acts of anti-union discrimination in respect of their employment”. respect of their employment”.

““Where governments of host countries Where governments of host countries offer special incentives to attract offer special incentives to attract foreign investment, foreign investment,

these these incentives should not incentives should not include any limitation of the include any limitation of the workers' freedom of association workers' freedom of association or the right to organize and or the right to organize and bargain collectivelybargain collectively.”.”

Collective bargainingCollective bargaining ““WorkersWorkers employed by multinational employed by multinational

enterprises enterprises should have the rightshould have the right, in , in accordance with national law and practice, accordance with national law and practice, to have representative organizationsto have representative organizations of their own choosing recognized of their own choosing recognized for the for the purpose of collective bargainingpurpose of collective bargaining.”.”

““Measures appropriate to national Measures appropriate to national conditions should be taken”… “with a view conditions should be taken”… “with a view to the regulation of terms and conditions to the regulation of terms and conditions of employment by means of collective of employment by means of collective agreements”.agreements”.

Follow-up procedureFollow-up procedure

The ILO Declaration is, unfortunately, The ILO Declaration is, unfortunately, not very not very effectiveeffective in practice. in practice.

This is, in large part, because the This is, in large part, because the procedures for procedures for implementation are weakimplementation are weak. .

It basically relies on It basically relies on

periodic surveysperiodic surveys to accomplish its work. to accomplish its work.

a a procedure for submission of casesprocedure for submission of cases for for interpretation to a sub-committee of the ILO interpretation to a sub-committee of the ILO Governing Body on Multinational Enterprises. This Governing Body on Multinational Enterprises. This comes in the form of “requests for comes in the form of “requests for interpretation”.interpretation”.

• The procedure The procedure excludesexcludes any any casescases concerning concerning violation of violation of freedom of association and the freedom of association and the right to collective bargainingright to collective bargaining. .

Such cases are better dealt with in the Such cases are better dealt with in the Committee of Freedom of Association of the Committee of Freedom of Association of the Governing Body. Governing Body.

• For other cases, theFor other cases, the receivabilityreceivability rules make rules make access difficult. access difficult.

There have been There have been only a small handful of casesonly a small handful of cases in history.in history.It has been very difficult for requests for It has been very difficult for requests for interpretation to be considered. interpretation to be considered.

• There is also There is also no problem-solving no problem-solving rolerole for the ILO Declaration as there for the ILO Declaration as there is for the OECD Guidelines. is for the OECD Guidelines.

• Trade unions had hoped that this Trade unions had hoped that this would in effect create an would in effect create an international complaint procedure international complaint procedure against specific companies but, against specific companies but, in in fact, specific companies are not fact, specific companies are not mentionedmentioned. .

The OECD Guidelines for The OECD Guidelines for Multinational EnterprisesMultinational Enterprises

(OECD: Organisation for Economic Co-(OECD: Organisation for Economic Co-operation and Development)operation and Development)

What are the OECD Guidelines for What are the OECD Guidelines for Multinational Enterprises?Multinational Enterprises?

The text (the guidelines) are The text (the guidelines) are recommendations recommendations for good corporate behaviourfor good corporate behaviour, primarily , primarily addressed to enterprises whose headquarters are addressed to enterprises whose headquarters are based in those countries that adhere to them. based in those countries that adhere to them.

The adhering countries are the 30 OECD The adhering countries are the 30 OECD countries -plus Argentina, Brazil, Chile, Estonia, countries -plus Argentina, Brazil, Chile, Estonia, Lithuania, Slovenia and Israel.Lithuania, Slovenia and Israel.

However, they However, they applyapply to the corporate activities of to the corporate activities of companies from these countries companies from these countries wherever they wherever they operate worldwideoperate worldwide..

OECD member countriesOECD member countriesAustraliaAustralia Korea Korea AustriaAustria LuxembourgLuxembourgBelgium Belgium MexicoMexicoCanada Canada NetherlandsNetherlandsthe Czech Republic the Czech Republic New ZealandNew ZealandDenmark Denmark Norway Norway Finland Finland PolandPolandFrance France PortugalPortugalGermany Germany the Slovak Republicthe Slovak RepublicGreeceGreece SpainSpainHungary Hungary Sweden Sweden Iceland Iceland SwitzerlandSwitzerlandIreland Ireland TurkeyTurkeyItaly Italy the United Kingdomthe United KingdomJapan Japan the United States the United States

The contents of the GuidelinesThe contents of the Guidelines

II Concepts and PrinciplesConcepts and PrinciplesIIII General PoliciesGeneral PoliciesIIIIIIDisclosure of InformationDisclosure of InformationIVIV Employment and Industrial RelationsEmployment and Industrial RelationsVV EnvironmentEnvironmentVIVI Combating BriberyCombating BriberyVIIVII Consumer InterestsConsumer InterestsVIIIVIII Science and TechnologyScience and TechnologyIXIX CompetitionCompetitionXX TaxationTaxation

Extracts of the Extracts of the OECD GuidelinesOECD Guidelines

II. General PoliciesII. General Policies

Enterprises shouldEnterprises should

« Respect the human rights« Respect the human rights of of those affected by their activities those affected by their activities consistent with the host consistent with the host government’s international government’s international obligations and commitments »obligations and commitments »

Enterprises should Enterprises should

« Encourage, where practicable, « Encourage, where practicable, business partners, business partners, including including suppliers and sub-contractorssuppliers and sub-contractors, to , to apply principles of corporate conduct apply principles of corporate conduct compatible with the Guidelines »compatible with the Guidelines »

III. DisclosureIII. Disclosure

«« Ensure Ensure that timely, regular, reliable that timely, regular, reliable and relevant and relevant information is disclosedinformation is disclosed regarding activities, structure, regarding activities, structure, financial situation and performance »financial situation and performance »

« Apply « Apply high quality standardshigh quality standards for for disclosure, accounting and audit »disclosure, accounting and audit »

IV. Employment and Industrial IV. Employment and Industrial RelationsRelations

““Enterprises shouldEnterprises should,:,:

• Respect the Respect the right of their employees to be right of their employees to be represented by trade unionsrepresented by trade unions and other and other bona fide representatives of employees, and bona fide representatives of employees, and engage in constructive negotiationsengage in constructive negotiations, , either individually or through employers’ either individually or through employers’ associations, with such representatives with a associations, with such representatives with a view to reaching agreements on employment view to reaching agreements on employment conditions.”conditions.”

• ““Contribute to the effective Contribute to the effective abolition of child abolition of child labourlabour””

• ““Contribute to the Contribute to the elimination of all forms elimination of all forms of forced or compulsory labourof forced or compulsory labour””

• ““Not discriminateNot discriminate against their employees against their employees with respect to employment or occupation on with respect to employment or occupation on such grounds as race, colour, sex, religion, such grounds as race, colour, sex, religion, political opinion, national extraction or social political opinion, national extraction or social origin, unless selectivity concerning employee origin, unless selectivity concerning employee characteristics furthers established characteristics furthers established governmental policies which specifically governmental policies which specifically promote greater equality of employment promote greater equality of employment opportunity or relates to the inherent opportunity or relates to the inherent requirements of a job.”requirements of a job.”

““Provide informationProvide information to employees and to employees and their representatives which enables them their representatives which enables them to obtain a true and fair view of the to obtain a true and fair view of the performance of the entity or, where performance of the entity or, where appropriate, the enterprise as a whole.“appropriate, the enterprise as a whole.“

““Take adequate steps to Take adequate steps to ensure ensure occupational health and safetyoccupational health and safety in their in their operations.“operations.“

““employ local personnelemploy local personnel and provide and provide training with a view to improving skill training with a view to improving skill levels”levels”

In case of relocationIn case of relocation

““In considering changes in their operations which In considering changes in their operations which would have major effects upon the livelihood of would have major effects upon the livelihood of their employees, in particular in the case of the their employees, in particular in the case of the closure of an entity involving collective lay-offs or closure of an entity involving collective lay-offs or dismissals, dismissals, provide reasonable notice of such provide reasonable notice of such changeschanges to representatives of their employees, to representatives of their employees, and, where appropriate, to the relevant and, where appropriate, to the relevant governmental authorities, governmental authorities,

And co-operate with the employee And co-operate with the employee representatives and appropriate governmental representatives and appropriate governmental authorities so as to authorities so as to mitigate to the maximum mitigate to the maximum extent practicable adverse effectsextent practicable adverse effects.”.”

« « In light of the specific circumstances of In light of the specific circumstances of each case, it would be appropriate if each case, it would be appropriate if management were able to give such management were able to give such notice prior to the final decision being notice prior to the final decision being takentaken.”.”

«….while employees are exercising a right «….while employees are exercising a right to organise, to organise, not threaten to transfer not threaten to transfer the whole or part of an operating unit the whole or part of an operating unit from the country concernedfrom the country concerned nor nor transfer employees from the enterprises’ transfer employees from the enterprises’ component entities in other countries…»component entities in other countries…»

V. EnvironmentV. Environment

Reflects the principles and objectives Reflects the principles and objectives in the Rio Declaration.in the Rio Declaration.

““Provide Provide adequate education and adequate education and trainingtraining to employees in to employees in environmental environmental health and safetyhealth and safety matters, … “matters, … “

VI. Combating BriberyVI. Combating Bribery

““Enterprises should Enterprises should notnot, directly or , directly or indirectly, offer, promise, give, or demand indirectly, offer, promise, give, or demand a a bribebribe or other undue advantage to or other undue advantage to obtain or retain business or other improper obtain or retain business or other improper advantage.“advantage.“

Enhance Enhance transparencytransparency, and use , and use management control systems that management control systems that discourage bribery.discourage bribery.

VII. Consumer InterestsVII. Consumer Interests

Enterprises “should take all Enterprises “should take all reasonable steps to reasonable steps to ensure the ensure the safety and quality of the goods safety and quality of the goods or services they provideor services they provide.”.”

Chapter VIII-XChapter VIII-X

VIII Science and TechnologyVIII Science and Technology Adopt practices that permit Adopt practices that permit transfer and transfer and

diffusion of technologiesdiffusion of technologies and know-how in and know-how in the countries where they operate.the countries where they operate.

IX CompetitionIX Competition Refrain from anti-competitive activities like Refrain from anti-competitive activities like

fixed prices.fixed prices.

X TaxationX Taxation Comply with tax lawsComply with tax laws and regulation and and regulation and

provide information to authorities.provide information to authorities.

The review of the Guidelines The review of the Guidelines 1998-20001998-2000

The Guidelines were revised in 1979, The Guidelines were revised in 1979, 1982, 1984 and 19911982, 1984 and 1991

A A major revision took place in major revision took place in 1998 – 20001998 – 2000, in consultation with , in consultation with trade unions, business and NGOstrade unions, business and NGOs

Resulted in major improvements:Resulted in major improvements:

global applicabilityglobal applicability of the Guidelines; of the Guidelines;reference to the supply chainreference to the supply chain;;stronger languagestronger language on human rights; on human rights;two two new chaptersnew chapters on bribery and on bribery and

consumer interests;consumer interests;reinforced chapterreinforced chapter on environment; on environment;

andandenhanced implementationenhanced implementation

proceduresprocedures

National Contact Point (NCP)National Contact Point (NCP)

According to the OECD Guidelines, According to the OECD Guidelines, eevery adhering country has to very adhering country has to sset up et up a National Contact Pointa National Contact Point (NCP) to (NCP) to « promote and implement the « promote and implement the Guidelines ».Guidelines ».

The NCP role has been made much more The NCP role has been made much more important after the revision of 2000.important after the revision of 2000.

Governments have to set up these NCPsGovernments have to set up these NCPs withinwithin their their administrationadministration (e.g. inside a ministry, or as (e.g. inside a ministry, or as an multi-agency, covering several ministries).an multi-agency, covering several ministries).

NCPs NCPs can be organisedcan be organised differently (tripartite, differently (tripartite, tripartite +NGO, or government office)tripartite +NGO, or government office)- governments have the ultimate responsibility.- governments have the ultimate responsibility.

Representatives of labourRepresentatives of labour, business and other , business and other interested parties (NGOs) interested parties (NGOs) need to be informedneed to be informed of their availibility.of their availibility.

NCPs shall develop and maintain relationsNCPs shall develop and maintain relations with representatives of trade unions, business with representatives of trade unions, business and NGOs.and NGOs.

What do they do?What do they do?

NCP are supposed to NCP are supposed to

Promote the guidelinesPromote the guidelines

Prepare reportsPrepare reports on their activities for the OECD on their activities for the OECD Committee on International Investment and Committee on International Investment and Multinational Enterprises (CIME). Multinational Enterprises (CIME).

Meet annuallyMeet annually to share their experiences with to share their experiences with their counterparts.their counterparts.

One of its main functions is One of its main functions is problem solvingproblem solving

In case of a violation of the In case of a violation of the GuidelinesGuidelines

When a company is believed to be in violation of When a company is believed to be in violation of the Guidelines, the Guidelines, a trade union or other party a trade union or other party can raise the casecan raise the case with the NCP. with the NCP.

(the OECD refers to a Guidelines case as a specific instance”)(the OECD refers to a Guidelines case as a specific instance”)

Cases can be brought to the Cases can be brought to the NCP of the country NCP of the country where the violation of the guidelines is where the violation of the guidelines is occurringoccurring, , or to the NCP of the country or to the NCP of the country where the company involved has its where the company involved has its headquartersheadquarters..

The NCP first has to make an The NCP first has to make an initial assessmentinitial assessment as to whether the case merits examination (and as to whether the case merits examination (and give reasons if it thinks the case doesn’t merit give reasons if it thinks the case doesn’t merit examination)examination)

If the case goes aheadIf the case goes ahead, the NCP is required to help , the NCP is required to help the parties to resolve the problem. the parties to resolve the problem.

The The NCPNCP will will act as a forum for discussionact as a forum for discussion and and is supposed to assist the parties involved in an is supposed to assist the parties involved in an efficient and timely manner. It can (and is efficient and timely manner. It can (and is supposed) take the following steps:supposed) take the following steps:

Offer conciliation or mediationOffer conciliation or mediation to assist in dealing with the to assist in dealing with the issues.issues.

Seek adviceSeek advice from relevant authorities, trade unions, business, from relevant authorities, trade unions, business, NGOs and other experts. NGOs and other experts.

Consult the NCP in the other country or countriesConsult the NCP in the other country or countries concerned concerned

Seek guidance of the CIMESeek guidance of the CIME where there is doubt about the where there is doubt about the interpretation of the Guidelines.interpretation of the Guidelines.

In case that doesn’t workIn case that doesn’t work If the parties are unable to agree on how to If the parties are unable to agree on how to

solve the problem, the NCP is normally solve the problem, the NCP is normally required to issue a public statement on the required to issue a public statement on the casecase..

If appropriate, it should If appropriate, it should make make recommendations to the parties on how the recommendations to the parties on how the Guidelines applyGuidelines apply to the case. NCPs may, to the case. NCPs may, therefore, inform a company that its activities therefore, inform a company that its activities breach the Guidelines.breach the Guidelines.

There are some limits as to publicly commenting There are some limits as to publicly commenting on the case (facts and arguments may bring on the case (facts and arguments may bring some people in danger) but in essence, if the some people in danger) but in essence, if the parties, after the proceedings, still do not agree, parties, after the proceedings, still do not agree, they are free to comment publicly on the case. they are free to comment publicly on the case.

One step higherOne step higher The OECD headquarters have a body that is The OECD headquarters have a body that is

responsible for the guidelines: responsible for the guidelines: CIMECIME (the (the Committee on International Investment and Committee on International Investment and Multinational Enterprises)Multinational Enterprises)

CIME is the next stepCIME is the next step in the procedure when in the procedure when things go wrong at the national level.things go wrong at the national level.

It is the forum where requests are considered for It is the forum where requests are considered for assistance from the NCPs about how to carry out assistance from the NCPs about how to carry out activities, including handling specific cases. activities, including handling specific cases.

This includes This includes how to interpret the guidelines how to interpret the guidelines when a problem ariseswhen a problem arises..

Trade unions, employers or Trade unions, employers or governments also have the right to governments also have the right to take a case to the CIME if they take a case to the CIME if they believe that an NCP has not fulfilled believe that an NCP has not fulfilled its ‘procedural’ responsibilities its ‘procedural’ responsibilities related to a specific case.related to a specific case.

But they have to go through the NCP But they have to go through the NCP procedure first.procedure first.

CIME is the body that can “clarify” the OECD CIME is the body that can “clarify” the OECD guidelines.guidelines.

In an important clarification to the In an important clarification to the meaning of freedom of association, CIME meaning of freedom of association, CIME has stated that has stated that ““The thrust of the Guidelines in this The thrust of the Guidelines in this area is towards management area is towards management adopting a positive approach towards adopting a positive approach towards the activities of trade unionsthe activities of trade unions and other and other bona fide representatives of employees of bona fide representatives of employees of all categories and, in particular, all categories and, in particular, an open an open attitude towards organisational attitude towards organisational activities of workersactivities of workers within the within the framework of applicable rules and framework of applicable rules and practices”. practices”.

If the procedure has been followed and the If the procedure has been followed and the company still refuses to change its company still refuses to change its behaviour then the involved trade union behaviour then the involved trade union organisation(s) should return to the NCP organisation(s) should return to the NCP and request intervention.and request intervention.

The procedure foresees some form of The procedure foresees some form of ‘‘closureclosure’ of the procedure, after which the ’ of the procedure, after which the argument can be used that the company is argument can be used that the company is refusing to comply. refusing to comply.

Did the revision work?Did the revision work? There are signs that many governments There are signs that many governments

are taking their responsibilities to are taking their responsibilities to implement the revised Guidelines implement the revised Guidelines seriouslyseriously..

Many NCPs that were previously dormant Many NCPs that were previously dormant or non-existent have been or non-existent have been re-activatedre-activated..

The OECD guidelines are The OECD guidelines are mentioned by mentioned by many different organisations and in many different organisations and in many documents, statements or many documents, statements or decisionsdecisions..

The The OECD guidelinesOECD guidelines have been have been used as used as benchmarks in resolutionsbenchmarks in resolutions by the European by the European Parliament and communications from the Parliament and communications from the European Commission.European Commission.

The Dutch Government has taken the decision to The Dutch Government has taken the decision to link access to export creditslink access to export credits to companies' to companies' compliance with the OECD Guidelines for compliance with the OECD Guidelines for Multinational EnterpriseMultinational Enterprise

Some of the framework agreements have Some of the framework agreements have borrowed text from the Guidelines.borrowed text from the Guidelines.

Who does what?Who does what?

On the trade union side, a lot of the work On the trade union side, a lot of the work related to the OECD Guidelines is being related to the OECD Guidelines is being carried out by TUAC (carried out by TUAC (Trade Union Trade Union Advisory Committee to the OECDAdvisory Committee to the OECD).).

TUAC is based in Paris, represents national TUAC is based in Paris, represents national trade unions centres of the member trade unions centres of the member countries of the OECD with the OECD. countries of the OECD with the OECD. Most TUAC affiliates are also affiliated with Most TUAC affiliates are also affiliated with the ICFTU. the ICFTU.

TUAC has consultative status with the TUAC has consultative status with the OECD and its various committees.  It co-OECD and its various committees.  It co-operates closely with the ICFTU and the operates closely with the ICFTU and the GUFs on a wide variety of economic policy, GUFs on a wide variety of economic policy, sectoral and other issues.sectoral and other issues.

Obviously, as all this concerns Obviously, as all this concerns international issues, all the international issues, all the Global Union Global Union Federations have an important role to Federations have an important role to playplay in bringing forward and developing in bringing forward and developing cases.cases.

Concrete examplesConcrete examples

Before the revision of 2000Before the revision of 2000

The The Renault caseRenault case – Belgium – 1997 – Belgium – 1997

The question: The question: what constitutes reasonable what constitutes reasonable noticenotice of changes in operations? of changes in operations? (the company announced one morning that the (the company announced one morning that the factory in Belgium was going to close)factory in Belgium was going to close)

The answer: “it would be appropriate, in the light The answer: “it would be appropriate, in the light of the specific circumstances of each case, if of the specific circumstances of each case, if management were able to provide such notice management were able to provide such notice prior to the final decisions being taken”.prior to the final decisions being taken”.

The The Rio Tinto caseRio Tinto case – Australia – 1999 – Australia – 1999

The question: “Is compliance with national law The question: “Is compliance with national law necessarily, in of itself, sufficient to conform to necessarily, in of itself, sufficient to conform to the Guidelines”? the Guidelines”? (the company wanted to replace collective (the company wanted to replace collective bargaining with bargaining with individual contractsindividual contracts – the – the Australian NCP decided that this was no in breach Australian NCP decided that this was no in breach with the Australian law)with the Australian law)

The answer: “Although compliance with national The answer: “Although compliance with national law is necessary, this is not necessarily sufficient law is necessary, this is not necessarily sufficient to observance the Guidelines”.to observance the Guidelines”.“The guidelines are not substitute for national “The guidelines are not substitute for national laws”…”They represent supplementary standards laws”…”They represent supplementary standards of behaviour of a non-legal character).”of behaviour of a non-legal character).”

After the revision of 2000After the revision of 2000

Marks and SpencerMarks and Spencer - 2001 - 2001

(announcement of closure done without (announcement of closure done without prior consultations)prior consultations)

Result: French NCP stated publicly that Result: French NCP stated publicly that M&S had not consulted its employees M&S had not consulted its employees properly. properly.

In a letter to the company, the NCP In a letter to the company, the NCP pointed out that the company had violated pointed out that the company had violated the Guidelines.the Guidelines.

Several cases have been introduced in relation to Several cases have been introduced in relation to companies operating with companies operating with BurmaBurma..

(in France, Sweden, USA, Canada, UK and the Netherlands (in France, Sweden, USA, Canada, UK and the Netherlands to NCPs on companies in their countries and by TUAC to to NCPs on companies in their countries and by TUAC to CIME for clarification)CIME for clarification)

The results varied. Some cases are ongoing.The results varied. Some cases are ongoing.

CIME replied to TUAC that “delegates emphasise the CIME replied to TUAC that “delegates emphasise the important contribution that observance of the Guidelines’ important contribution that observance of the Guidelines’ recommendations by MNEs can make to the elimination of recommendations by MNEs can make to the elimination of all forms of forced or compulsory labour, in Myanmar and all forms of forced or compulsory labour, in Myanmar and elsewhere.”elsewhere.”

The AFL-CIO never received a reply.The AFL-CIO never received a reply.

In France, Accor left Burma. In the Netherlands, the case In France, Accor left Burma. In the Netherlands, the case was stopped as the Premier Oil left Burma.was stopped as the Premier Oil left Burma.

A number of cases were settled after the A number of cases were settled after the companies involved agreed to negotiate companies involved agreed to negotiate and take part in social dialogue.and take part in social dialogue.

• Siemens and BoschSiemens and Bosch – Czech republic – 2001 – Czech republic – 2001 (companies threatened to fire workers if they (companies threatened to fire workers if they formed a union).formed a union).

• Choi Shin/Cima textilesChoi Shin/Cima textiles (Korean firm) (Korean firm) harrased and threatened workers in Guatemala harrased and threatened workers in Guatemala as part of an anti-union campaign.as part of an anti-union campaign.(case raised by the ITGLWF)(case raised by the ITGLWF)

Result: the company signed a first collective Result: the company signed a first collective bargaining agreement and started to reinstate bargaining agreement and started to reinstate the union members that had been dismissed.the union members that had been dismissed.

In general, the results of the work of the In general, the results of the work of the NCPs and/or the further decisions and NCPs and/or the further decisions and clarifications by CIME have been clarifications by CIME have been satisfactory for many cases, from a trade satisfactory for many cases, from a trade union point of view.union point of view.

In some cases, the case didn’t go In some cases, the case didn’t go anywhere because the information anywhere because the information provided was not sufficient or not provided was not sufficient or not sufficiently clear. Other cases did not sufficiently clear. Other cases did not continue for various reasons. continue for various reasons.

Well prepared cases have a better chance Well prepared cases have a better chance of succeedingof succeeding. TUAC can provide . TUAC can provide assistance in this respect.assistance in this respect.

Why are the ILO Declaration Why are the ILO Declaration and the OECD guidelines and the OECD guidelines

important?important?

What’s the purpose?What’s the purpose?

Both the OECD guidelines and the ILO Both the OECD guidelines and the ILO declaration should be seen as « declaration should be seen as « tools in a tools in a toolboxtoolbox ». There are many ways to use  ». There are many ways to use them.them.

They are, on the one hand, an instrument They are, on the one hand, an instrument as such – and as such – and can be the core of a can be the core of a campaigncampaign – in trade union campaigns – in trade union campaigns involving key global corporations on issues involving key global corporations on issues such as trade union rights violations, such as trade union rights violations, human rights, supply chain issues, the human rights, supply chain issues, the environment, etc..environment, etc..

But - they But - they can also be seen as just can also be seen as just one part of a larger campaignone part of a larger campaign, an , an extra form of pressureextra form of pressure..

The introduction of a guidelines case The introduction of a guidelines case (or threat thereof) can be considered (or threat thereof) can be considered in addition to other, more ‘usual’ in addition to other, more ‘usual’ campaign tactics, such as strike campaign tactics, such as strike action or political campaigning at the action or political campaigning at the national level.national level.

Both are Both are international standardsinternational standards that that have been have been adopted by governmentsadopted by governments and others. and others.

They therefore also are They therefore also are benchmarks for benchmarks for other standardsother standards. .

And they (or part of them) can be used as And they (or part of them) can be used as an integral part in other benchmarks.an integral part in other benchmarks.

With the explosion of all kinds of Corporate With the explosion of all kinds of Corporate Social Responsibility efforts, it’s useful to Social Responsibility efforts, it’s useful to have these instruments to have these instruments to counter self-counter self-made standardsmade standards. These are often drawn . These are often drawn up by companies and used in codes of up by companies and used in codes of conduct. Many of these codes are vague, conduct. Many of these codes are vague, don’t mean much and do not have don’t mean much and do not have accepted standards as a basis.accepted standards as a basis.

Multilateral examples where the Multilateral examples where the Guidelines have been used: the Global Guidelines have been used: the Global Reporting Initiative, Socially Responsible Reporting Initiative, Socially Responsible Investment standards, social labels, …Investment standards, social labels, …

Unlike, most of what is labelled Unlike, most of what is labelled corporate responsibility, the corporate responsibility, the Guidelines do Guidelines do not represent a not represent a privatisationprivatisation of the government of the government rolerole to ensure that workers’ rights to ensure that workers’ rights are protected. are protected.

Indeed, they extend the role of the Indeed, they extend the role of the State so that it reaches beyond State so that it reaches beyond national boundaries. national boundaries.