International Labour Office Multinational Enterprises Department TRIPARTITE DECLARATION OF...

International Labour OfficeMultinational Enterprises

Department

TRIPARTITE DECLARATION OF

PRINCIPLES CONCERNING MULTINATIONAL

ENTERPRISES AND SOCIAL POLICY


Department

Tripartite Declaration of Principles Concerning Multinational Enterprises and

Social Policy


Department

What is the MNE Declaration?

• Only set of guidelines of its kind globally agreed by business, labour and governments

• Minimum benchmarks on good investment policy and practice for private and public sectors

• Inspired by principles underlying ILO conventions and recommendations

• Applies universally regardless of ratification, not legally binding


Department

What does the MNE Declaration address?

How MNE contributions to foreign direct investment can help achieve decent work

Decent work involves four aims:• promoting employment and incomes• realizing fundamental principles and rights at

work• enhancing social protection and social security• strengthening social dialogue


Department

How does the MNE Declaration address FDI and decent work?

• Background and aim

• General policies

• Employment

• Training

• Conditions of work and life

• Industrial relations


Department

BACKGROUND AND AIM

Universal commitments of four parties

• multinational enterprises (MNEs)

• workers’ organizations

• employers’ organizations

• governments

Two main aims

• To encourage the positive contribution which MNEs can make to economic and social progress, and

• To minimise and resolve difficulties to which their operations can give rise


Department

GENERAL POLICIES

All four concerned parties should:

obey national lawsrespect international standards - United Nations human rights instruments - fundamental principles and rights at worksupport development priorities


Department

EMPLOYMENT

The four parties assume respective roles to:

Promote productive employment in MNEs, directly and in linkages

Pursue equality of opportunity and treatmentEnhance employment security in set-up and

changes of MNE operations


Department

LINKAGES TO PROMOTE EMPLOYMENT IN DEVELOPING

COUNTRIES

MNEs encouraged to promote employment through supplier and subcontractor relationships

Contractual arrangements should not be used to avoid the responsibilities embodied in the principles of the Declaration


Department

TRAINING

Cooperation among the four parties helps to:

Develop national policies for vocational trainingEnsure training that meets needs of enterprise and

host countryEncourage skills development and vocational

guidance linked to employment


Department

CONDITIONS OF WORK & LIFE

The four parties assume their roles to: Offer wages, benefits and conditions of work in MNEs as

favourable as those of comparable employers -in developing countries with no comparable employers,

provide best possible wages in MNE operations Where appropriate, secure for workers basic amenities of a

good standard Help abolish child labour by respecting minimum age for

employment Ensure highest standards of safety and health


Department

INDUSTRIAL RELATIONS

The four parties assume their respective roles to: observe standards of industrial relations in MNEs as favourable as

those of comparable employers respect freedom of association and the right to organize effectively recognize and facilitate collective bargaining provide systems for consultations on matters of mutual concern

- not a substitute for collective bargaining set up processes to examine individual and joint grievances establish voluntary conciliation machinery to prevent and settle

disputes

- with workers and employers equally represented


Department

1998 ILO STUDY: 215 AVAILABLE CODES OF CONDUCT

Choice of issues:a. Health and safety (75%)

b. Employment discrimination (66%)

c. Child labour (50%)

d. Wage levels (40%)

e. Forced labour (25%)

f. Freedom of association (15%)

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40

50

60

70

80

a b c d e f


Department

1998 ILO STUDY: 215 AVAILABLE CODES OF CONDUCTDefinition of benchmarks

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10

20

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60

self-definition

national law

international labourstandards


Department

MNE DECLARATION

Only set of global guidelines of its kind followed up by business, labour and governments

Follow-up conducted in consultation with ILO Governing Body and International Labour Office


Department

TOOLS TO REACH BENCHMARKS: INFORMATION

REPORTING AND FOLLOW- UP SURVEYS

Questionnaire agreed by business, labour and governments Questionnaire sent to constituents in all ILO member states Consultations among business, labour and governments at

national level Separate or tripartite responses provided to the ILO Summaries of replies and analysis negotiated by business, labour

and government representatives Recommendations for further action adopted by the Governing

Body


Department

MNE DECLARATION FOLLOW-UP

INTERPRETATIONS under a Procedure approved by the Governing Body, interpretations can be

requested in concrete disputes a request for interpretation must meet certain procedural criteria to be

accepted, or « received » for subsequent review on the merits Process of review: requests are processed by the Office, then examined by the

ILO Governing Body To date, interpretations of the MNE Declaration have been given in four cases Interpretations confront common concerns in diverse contexts, for example:• Access by workers’ organizations to MNE representatives authorized to make

decisions• Timing of notice to governments and workers’ organizations before MNE

change of operations that would significantly affect employment.


Department

TOOLS TO REACH BENCHMARKS: INFORMATION

RESEARCH AND STUDIES Highlight and learn from successes and difficulties in integrating FDI

and decent work in policy and practice Consultation and cooperation with business, labour and governments Thematic, sectoral, and analytic studies by country, region and at a

global level Showcase tools to manage and report on social and labour effects of

MNE/FDI activities Link research findings to promotional activities and advisory services


Department

TOOLS TO REACH BENCHMARKS: DIALOGUE

PROMOTIONAL & ADVISORY ACTIVITIES

Promote use of the Declaration as a tool for good investment practice• in roundtables, seminars, conferences and workshops • upon request and in cooperation with government, business and labour

Encourage synergies in applying the Declaration in countries/regions• Negotiate social understandings with government, business and labour• Facilitate mechanisms for tripartite consultations on FDI, decent work,

and employment• Provide advice on laws, policies, and partnerships that integrate FDI

and decent work


Department

MNE DECLARATION FOLLOW-UP

INFORMATION & LIAISON SERVICES

Communicating up-to-date developments on MNE-related trends

• databases searchable by country and topic

Advocating the Declaration’s integrated approach to FDI and decent work in international policy making

• in human rights, investment, and development fora

• liaison with UN System, World Bank, OECD, EU, OAU, and others


Department

The Global Compact

Shared Values for the Global Market

Promoting Responsible Global Citizenship


Department

Nine PrinciplesHuman Rights

LabourLabour

EnvironmentEnvironment

1. Businesses should support and respect the protection of internationally proclaimed human rights.

2. Make sure they are not complicit in human rights abuses.

3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;

4. The elimination of all forms of forced and compulsory labour;

5. The effective abolition of child labour; 6. Eliminate discrimination in respect of employment

occupation.7. Business should support a precautionary approach to

environmental challenges;8. Undertake initiatives to promote greater environmental

responsibility; 9. Encourage the development and diffusion of environmentally

friendly technologies.


Department

CoreElements

• Advocacy and Promotion

• Policy Dialogues

• Learning and Communication


Department

Multinational enterprises Multinational enterprises

Business AssociationsBusiness AssociationsInternational Business of Commerce

International Organisation of Employers

World Business Council for Sustainable Development

Prince of Wales Business Leaders Forum

Business for Social Responsibility

Global, sectoral and national associations

LabourLabour

ICFTU

Civil Society OrganisationsCivil Society OrganisationsInternational human rights and environmental organizationsInternational human rights and environmental organizations


Department

STRATEGIES FOR ADDRESSING BENCHMARKS:

Acceptance of a globally-agreed floor MNE Declaration of ILO OECD Guidelines on MNEs UN Global CompactComplementarity of action rather than competitionParticipatory implementation of policy and

practice to reach benchmarksTransparency in evaluation and reporting to

enhance comparability


Department

Visit us at www.ilo.org/multi

Contact us at

[email protected]

Tel. +41.22.799.6481

International Labour Office Multinational Enterprises Department TRIPARTITE DECLARATION OF...

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