CROSS-BORDER SOCIAL DIALOGUE AND AGREEMENTS: An emerging global industrial relations framework? CROSS-BORDER SOCIAL DIALOGUE AND AGREEMENTS: An emerging global industrial relations framework? Editor: Konstantinos PAPADAKIS Contributors: Dominique BÉ Nathan LILLIE Brian BERCUSSON Doug MILLER Giuseppe CASALE Konstantinos PAPADAKIS Isabel DA COSTA Udo REHFELDT Renée-Claude DROUIN André SOBCZAK Dan GALLIN Katerina TSOTROUDI Nikolaus HAMMER International Institute for Labour Studies Geneva International Labour Office Geneva Published by the International Institute for Labour Studies The International Institute for Labour Studies(IILS) was established in 1960 as an autonomous facility of the International Labour Organization (ILO) to further policy research, public debate and the sharing of knowledge on emerging labour and social issues of concern to the ILO and its constituents — labour, business and government. Copyright © International Labour Organization (International Institute for Labour Studies) 2008. Short excerpts from this publication may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation, application should be made to the Director, International Institute for Labour Studies, P.O. Box 6, CH-1211 Geneva 22, Switzerland. ISBN 978-92-9014-862-3 (print) ISBN 978-92-9014-863-0 (web pdf) First published 2008 The responsibility for opinions expressed in signed articles, studies and other contributions of this volume rests solely with their authors, and their publication does not constitute an endorsement by the International Institute for Labour Studies of the opinions expressed. Copies can be ordered from: ILO Publications, International Labour Office, CH-1211 Geneva 22, Switzerland. For on-line orders, see www.ilo.org/publns Photocomposed in Switzerland BRI Printed by the International Labour Office, Geneva, Switzerland Preface Many multinational companies have adopted corporate codes of conduct that have social provisions. In some industrial countries, in fact, most multinationals have such codes. Yet there is concern that these codes, important as they are, may not translate into actual improvements in workers’ rights and employment conditions. Indeed, these private ini- tiatives often lack the kinds of monitoring mechanisms needed to ensure that social provisions are implemented in practice. Moreover, these codes are primarily a management tool, and are not negotiated with workers. In this sense, they do not deal with the fundamental difference that exists between the scope of the firm – which operates on a global scale – and workers, whose voice is expressed in a fragmented manner, in the differ- ent countries where the multinational operates. It is in this context that new initiatives have emerged, namely inter- national framework agreements (IFAs), which constitute the focus of this volume. In contrast to traditional corporate codes of conduct, IFAs are instruments negotiated with global trade unions. The purpose of IFAs is to stimulate global social dialogue between the multinational and the rep- resentatives of workers – that is, both where the firm is headquartered and where it operates. IFAs also aim at promoting compliance with Inter- national Labour Organization core labour standards. This volume represents the first comprehensive overview of IFAs. It covers the 62 IFAs that existed at the end of 2007 (compared with virtu- ally none in the early 1990s and about 20 five years ago); provides a detailed analysis of how the agreements operate in practice; examines the extent to which IFAs pave the way for cross-border industrial relations; v Cross-border social dialogue and agreements looks at the legal dimensions of IFAs, including recent case law on the related issue of cross-border industrial action; analyses factors that explain why there are few IFAs in two sectors (textiles, clothing and footwear; and maritime transport); and explores the options for international policy action. More fundamentally, the volume represents a major step in under- standing the possibilities for developing cross-border industrial relations, and has garnered contributions from some of the top international experts in the field. Earlier versions of their contributions were discussed at a workshop of the International Institute for Labour Studies, held on 15–16 December 2006 in Geneva. This is a fascinating project of the Institute, and one that calls for follow-up. The next stages will involve assessments of IFAs’ impact on actual working conditions and of their effectiveness vis-à-vis the policy goals of the International Labour Organization. Raymond Torres Director, International Institute for Labour Studies vi Table of contents Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . vii Contributors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xv Acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xix Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Konstantinos Papadakis Data concerning IFAs . . . . . . . . . . . . . . . . . . . . . . . . . 2 Historical benchmarks and factors contributing to the evolution of IFAs . . . . . . . . . . . . . . . . . . . . . 5 Overview of chapters . . . . . . . . . . . . . . . . . . . . . . . . . . 7 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Part 1 History . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Chapter 1 International framework agreements: A reassessment . . 15 Dan Gallin Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 The original intention . . . . . . . . . . . . . . . . . . . . . . . . . 16 Conclusions from experience . . . . . . . . . . . . . . . . . . . . . 25 The first IFA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 IFAs and codes of conduct . . . . . . . . . . . . . . . . . . . . . . 32 IFAs and European works councils . . . . . . . . . . . . . . . . . . 35 Conclusions: Back to the future? . . . . . . . . . . . . . . . . . . . 38 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 vii Cross-border social dialogue and agreements Chapter 2 Transnational collective bargaining at company level: Historical developments . . . . . . . . . . . . . . . . . 43 Isabel da Costa and Udo Rehfeldt Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 The origins of a transnational bargaining strategy at company level: World councils . . . . . . . . . . . . . . . . . . . . . . . . 45 The European detour to transnational collective bargaining at company level . . . . . . . . . . . . . . . . . . . . . . . . 51 European and global framework agreements in the automobile sector 56 Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Part 2 Industrial relations . . . . . . . . . . . . . . . . . . . . . . 65 Chapter 3 International framework agreements as elements of a cross-border industrial relations framework . . . . . 67 Konstantinos Papadakis, Giuseppe Casale and Katerina Tsotroudi IFAs as industrial relations instruments from an ILO perspective . . 68 Definition and parties . . . . . . . . . . . . . . . . . . . . . . 69 Content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Machinery for monitoring and dispute settlement . . . . . . . 73 Scope and binding character . . . . . . . . . . . . . . . . . . 77 Dissemination . . . . . . . . . . . . . . . . . . . . . . . . . . 79 Possible contribution of IFAs to the emergence of a cross-border industrial relations framework . . . . . . . . . . . . . . . . . 80 Industrial relations . . . . . . . . . . . . . . . . . . . . . . . 80 Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 Politics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 Chapter 4 International framework agreements in the context of global production . . . . . . . . . . . . . . . . . . . 89 Nikolaus Hammer Changing structures of global production systems . . . . . . . . . . 91 International framework agreements . . . . . . . . . . . . . . . . . 95 Developing a tool for international industrial relations . . . . 96 Four levels of provisions . . . . . . . . . . . . . . . . . . . . 98 Implementation and monitoring . . . . . . . . . . . . . . . . 101 viii Table of contents Conclusions: The challenge of buyer-driven value chains for IFAs . . 105 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 Part 3 Legal dimensions . . . . . . . . . . . . . . . . . . . . . . 113 Chapter 5 Legal dimensions of international framework agreements in the field of corporate social responsibility . . . . . . 115 André Sobczak Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 Powers of signatories . . . . . . . . . . . . . . . . . . . . . . . . . 117 Signatories – employers . . . . . . . . . . . . . . . . . . . . 117 Signatories – workers . . . . . . . . . . . . . . . . . . . . . . 118 Content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 Scope of application . . . . . . . . . . . . . . . . . . . . . . 121 Rights conferred . . . . . . . . . . . . . . . . . . . . . . . . 123 Monitoring procedures . . . . . . . . . . . . . . . . . . . . . 124 Legal value . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 Legal nature . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 Towards a legal framework . . . . . . . . . . . . . . . . . . . 127 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 Chapter 6 Implementation and monitoring of cross-border agreements: The potential role of cross-border collective industrial action . . . . . . . . . . . . . . . . . . . . . 131 Brian Bercusson Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131 Cross-border social dialogue in the European Union . . . . . . . . . 132 Follow-up to the Commission’s Social Agenda . . . . . . . . . . . . 134 The experience of European works councils . . . . . . . . . . 135 The Commission’s Green Paper on modernizing labour law . . 137 Context: Collective action in the European single market . . . . . . 139 The law: Transnational collective industrial action and free movement in the European Union . . . . . . . . . . . . . . . 140 Viking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 Laval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 The Charter of Fundamental Rights and the European Court of Justice . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 Response of the European Court of Justice to the Charter . . . . . . 146 European Court of Justice citation of the Charter . . . . . . . . . . 147 ix Cross-border social dialogue and agreements European Court recognition of a fundamental right to collective action . . . . . . . . . . . . . . . . . . . . . . . 150 An “anti-social dumping principle” . . . . . . . . . . . . . . . . . . 152 Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155 Part 4 Varieties of dialogue and regulation at cross-border level 159 Chapter 7 The ITGLWF’s policy on cross-border dialogue in the textiles, clothing and footwear sector: Emerging strategies in a sector ruled by codes of conduct and resistant companies . . . . . . . . . . . 161 Doug Miller Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161 Textiles, clothing and footwear: Figures and misperceptions . . . . 163 Targeting multinational companies for cross-border dialogue in textiles, clothing and footwear . . . . . . . . . . . . . . . . 171 Why no IFA? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174 The disclosure debate . . . . . . . . . . . . . . . . . . . . . 176 Codes of conduct . . . . . . . . . . . . . . . . . . . . . . . . 177 ITGLWF involvement in multi-stakeholder initiatives . . . . . 178 Union avoidance . . . . . . . . . . . . . . . . . . . . . . . . . . . 180 Breakthrough? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183 Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185 Chapter 8 The ILO Maritime Labour Convention, 2006: A new paradigm for global labour rights implementation 191 Nathan Lillie Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191 Significance of the ILO Maritime Labour Convention, 2006 . . . . 194 Maritime industry regulatory structure . . . . . . . . . . . . . . . . 197 Flag States . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 Port State Control . . . . . . . . . . . . . . . . . . . . . . . . 199 Labour supply States . . . . . . . . . . . . . . . . . . . . . . 200 Labour market competition . . . . . . . . . . . . . . . . . . . 201 Maritime Labour Convention contents and functioning . . . . . . . 204 ILO as an institutional setting for labour standards negotiations . . 205 Actors and interests . . . . . . . . . . . . . . . . . . . . . . . . . . 208 Discussion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215 x Part 5 Policy action . . . . . . . . . . . . . . . . . . . . . . . . 219 Chapter 9 A report on the European Commission initiative for a European framework for transnational collective bargaining . . . . . . . . . . . . . . . . . . . . . . . . . 221 Dominique Bé Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221 Transnational collective bargaining within the framework for European social dialogue . . . . . . . . . . . . . . . . . . 222 The reality of transnational collective bargaining in Europe . . . . . 223 Towards a European Union framework for transnational collective bargaining . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 First Commission announcement . . . . . . . . . . . . . . . . 224 Second Commission announcement . . . . . . . . . . . . . . 225 Commission study report and seminars on transnational collective bargaining . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226 First study, on transnational collective bargaining . . . . . . . 226 First seminar, on transnational collective bargaining . . . . . 227 Second study, on transnational agreements . . . . . . . . . . 227 Second seminar, on transnational agreements . . . . . . . . . 224 Views of European social partners . . . . . . . . . . . . . . . . . . 228 Union of Industrial and Employers’ Confederations of Europe 228 International Organisation of Employers . . . . . . . . . . . . 231 European Trade Union Confederation . . . . . . . . . . . . . 232 International Confederation of Free Trade Unions . . . . . . . 233 Next steps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234 Chapter 10 The role of the ILO in promoting the development of international framework agreements . . . . . . . . . 237 Renée-Claude Drouin Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237 Recognizing international trade union rights in International Labour Conventions and other instruments . . . . . . . . . . . . . . 240 Promoting IFAs through sectoral activities . . . . . . . . . . . . . . 247 Dispute resolution services and technical assistance to trade unions and employers . . . . . . . . . . . . . . . . . . . . . . . . . 253 Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259 xi
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