The OECD Guidelines for Multinational Enterprises and Labour Relations 1976–1979: Experience and Review

304 Pages·1979·6.309 MB·English

by  Prof. Dr. R. Blanpain (auth.)

The OECD Guidelines for Multinational Enterprises and Labour
Relations 1976-1979
The OECD Guidelines for
Multinational Enterprises and
Labour Relations 1976-1979
Experience and Review 1
by Prof. Dr. R. BLANPAIN
University of Leuven, Belgium
Foreword by Prof. Dr. Mark Eyskens
Minister for Development and Co-operation
1979
SPRINGER-SCIENCE+BUSINESS MEDIA, B.V.
Distribution in the USA:
KLUWER LAW AND TAXATION PUBLISHERS
160 Old Derby Street
Hingham, MA 02043
USA
Library of Congress Cataloging in Publication Data
Blanpain, Roger.
The OECD guidelines for multinational enterprises
and labour relations, 1976-1979.
Includes index.
1. Collective bargaining- International business
enterprises- Europe. 2. Collective bargaining
International business enterprises. 3. Organization
for Economic Cooperation and Development. 4. Labor
policy- Europe. 5. Labor policy. I. Title.
HD6657.B56 658.31'54 79-26195
ISBN 978-94-017-4494-2 ISBN 978-94-017-4492-8 (eBook)
DOI 10.1007/978-94-017-4492-8
Cover design: Pieter J. van der Sman
© 1979 Sp1inger Science+ Business Media Dordrecht
Originally published by Kluwer, Deventer, The Netherlands in 1979
Softcover reprint of the hardcover 1st edition 1979
All rights reserved. No part of this publication may be reproduced, stored in a retrieval
system, or transmitted in any form by any means, electronic, mechanicaL photocopying,
recording or otherwise, without the written permission of the publisher.
4
Contents
Foreword 11
M. Eyskens
List of Abbreviations 13
Introduction 15
Prologue 25
I. The Organization for Economic Co-operation and Development 25
II. The Committee on International Investment and Multinational
Enterprises: the IME Committee 31
1. The establishment of the Committee: 1975 31
2. The 1976 mandate 34
3. The new mandate after the 1979 review 36
III. The advisory bodies: BIAC and TUAC 36
1. BIAC 36
2. TUAC 40
IV. The International Trade Union Movement 45
V. The Guidelines for Multinational Enterprises 48
1. The Genesis of the 1976 Declaration and of the Guidelines 48
2. Content of the Declaration and of the Guidelines 53
a. Content of the Declaration 53
b. Content of the Guidelines 55
3. The (non) definition of the multinational enterprise 58
4. Nature and binding character of the Guidelines 59
Part I. The Action under the 1976 Guidelines and
Decisions 63
I. THE ACTION BY MEMBER GOVERNMENTS 63
A. Survey of measures taken by Member governments to promote
the Guidelines 63
1. Dissemination of the Guidelines 63
2. Promotion of the Guidelines in private circles 64
3. Discussions with the interested parties 64
4. Use of the Guidelines in the context of national
policies 65
B. Introduction of cases 65
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Contents
II. THE ACTION BY THE IME COMMITTEE 66
A. Composition and working of the IME Committee and of the
ad hoc Working Group 66
B. The review - the IME Report to the Council of Ministers 67
III. THE ACTION BY BUSINESS AND LABOUR 69
A. BIAC 70
1. BIAC's report of activities: 1976, 1977, 1978 70
2. Contacts with the IME Committee and Levy Group:
BIAC's point of view 77
a. BIAC's welcome of the Guidelines 78
b. Support of the Guidelines 78
c. Disclosure of information 88
1. Difficulties 89
2. Compliance 89
3. The report of the IME Committee 98
d. BIAC's general attitude regarding the discussion of cases
and the role of the IME Committee 100
e. Composition of the BIAC delegation 101
B. TUAC's point of view 103
1. TUAC's qualified welcome of the Guidelines 103
2. Role of the IME Committee 105
3. TUAC and the 'legal' nature of the Guidelines 116
4. Composition of the TUAC delegation 120
Part II. The Impact of the Guidelines. Cases - Issues and
Clarification 123
I. THE Co-RESPONSIBILITY oF THE PARENT CoMPANY AND SuBSIDIARIES.
'THE BADGER CASE' 125
1. The issue 125
2. Note by the Belgian Delegation 126
3. TUAC's note of March 24, 1977 130
4. Position of BIAC 135
co
5. Position of the Badger 136
6. Agreement between Badger- Belgian Trade Unions 138
7. The report of the IME Committee 142
8. Some comments 143
II. AccEss To REAL DECISION-MAKERS. THE FIRESTONE CASE 146
1. The issue 146
2. Submission by the Swiss Trade-Union Centre 146
3. Position of BIAC 148
4. The report of the IME Committee 148
5. Some comments 149
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Contents
III. THE CLOSEDOWN OF AN ALLEGEDLY PROFITABLE SUBSIDIARY. THE
BATCO CASE 150
1. The issue 150
2. CNV-Holland. Submission to TUAC and to the OECD IME
Committee 151
3. Memorandum by the Dutch Government on the facts and issues
in the case of BATCO (Nederland) BV 161
4. Questions and answers in the Dutch Parliament 169
5. Position of BIAC 171
6. The report of the IME Committee 171
7. Some comments 173
IV. THE RIGHT OF EMPLOYEES TO BE REPRESENTED 173
A. Respect of that Right by the Employers. The Citicorp Case 174
1. The issue. Submission by FIET 174
2. Managers Guide to Employee Relations. 175
3. Position of BIAC 184
4. The report of the IME Committee 185
5. Some comments 185
B. The Status of International Trade Secretariats 186
1. The issue 186
2. The report of the IME Committee 186
3. Some comments 187
C. The Guidelines and International Collective Bargaining 187
1. The issue. Submission by IMF 187
2. The position of BIAC 190
3. The report of the IME Committee 190
4. Some comments 190
D. Participation in International Trade Union Seminars. The
Philips Case 191
1. The issue. Submission by IMF 191
2. Position of Philips 192
3. The position of BIAC 198
4. The report of the IME Committee 198
5. Some comments 198
V. PROVISION OF INFORMATION TO EMPLOYEES 199
A. Collective Bargaining. A True and Fair View 199
1. The issue 199
2. Submission by TUAC 200
a. Cases introduced, March 30, 1977 200
b. Proposals put forward, April 11, 1978 206
c. Meeting with the Working Group, January 29, 1979 211
3. Position of BIAC 211
4. The point of view of Philips 211
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Contents
5. The report of the IME Committee 213
6. Some comments 214
B. 'Reasonable Notice' in Case of Major Change 215
1. The issue 215
2. The position of TUAC 215
3. The position of BIAC 215
4. The report of the IME Committee 216
5. Some comments 216
VI. COMPARABLE STANDARDS OF EMPLOYMENT. THE WARNER LAMBERT
CASE 217
1. The issue. Submission by IMF 217
2. Some comments 218
VII. TRANSFER OF EMPLOYEES IN CASE OF A LABOUR DISPUTE. THE
HERTZ CASE 219
1. The issue. Submission by FIET 219
2. TUAC proposal to prohibit the transfer of staff across borders
during a labour dispute 219
3. The report of the IME Committee 226
4. Some comments 227
VIII. DEFINITION OF A MuLTINATIONAL: THE EuROPEAN AIRLINE
GROUPINGS 229
1. The issue. Submission by ITF 229
2. The KSSU 231
3. The report of the IME Committee 235
4. Some comments 235
Part III. The 1979 Review: The Follow-up Procedures 237
I. PREPARING THE REVIEW 237
A. The point of view of BIAC 237
B. The point of view of TUAC 241
C. Note from the Swedish delegation on consultation procedures 249
D. Note by the Netherlands: fact-finding under the Guidelines 253
II. THE NEW FOLLOW-UP PROCEDURES 256
A. Reporting 257
1. Acceptance and reporting by Multinational Enterprises 257
2. Bi-Annual follow-up reports by Governments 257
3. Mid-Term and follow-up reports by the IME Committee 258
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Contents
B. Problem Solving 258
1. At National Level 258
2. At International Level 259
a. The role of the IME Committee 259
1. Discussion of cases and issues. Information in advance 259
2. Timely clarification of the G.uidelines 260
3. The Committee will not reach conclusions on the conduct
of the individual enterprises 260
b. Formal and informal contacts between the IME Committee
and BIAC and TUAC 261
c. The role of individual companies 262
C. Review at the latest in 5 Years, June 1984 262
III. STATEMENTS BY BIAC AND TUAC ON THE 1979 REVIEW 263
A. Statement by BIAC 263
B. Statement by TUAC 265
Conclusions 267
Annexes
I. DECLARATION OF 21 JUNE, 1976 ON INTERNATIONAL INVESTMENT AND
MULTINATIONAL ENTERPRISES, AS REVISED ON 13 JUNE, 1979. 277
II. MOTOR IBERICA AND BLACK AND DECKER CASE, suBMmED BY
IMF 291
III. NOTE TO EDITORS: OECD PRESS RELEASE, APRIL 11, 1978 295
IV. CASE NOT CONSIDERED RELEVANT BY THE IME COMMITTEE: INTER
NATIONAL CREDIT MARKET AND MULTINATIONAL BANKS, SUBMITTED BY
FIET AND TCO 299
V. INFORMATION NOTE, JUNE 14, 1979. INTERNATIONAL INVESTMENT AND
MULTINATIONAL ENTERPRISES-OECD MINISTERIAL REVIEW 303
Index 307
9
Foreword
by Professor Dr. Mark EYSKENS
Minister for Development and Co-operation1
There is no doubt that the OECD Guidelines correspond to the growing need
of the piloting of, international investment and the behaviour of multinational
enterprises. They are the expression of far reaching co-operation between
Member countries, which is necessary to maintain and even improve a better
investment climate; they constitute a positive contribution to the resolving of
difficulties, to which the operations of multinational enterprises may give rise,
especially in the labour relations area.
Belgium especially, has gained immensely from the positive contributions,
which multinational enterprises can make to economic and social progress,
could also, from the very moment of their existence, call upon the Guidelines
and the competent OECD Committee for help, in order, to solve an important
problem concerning the responsibility of the parent company for the (financial)
obligations of its subsidiaries. 2 The guidance the Belgian Government received
in the framework of the OECD declaration contributed largely to the satisfac
tory solution of the problem, with which Belgium was confronted. Undoubt
edly, other examples could be given, where the Guidelines aided significantly
to the creation and maintaining of co-operation between the Government, the
enterprise and labour in difficult questions, such as the closing down of a plant.
The Report, written by the Committee on International Investment and Multi
national Enterprises at the occasion of the 1st review of the Guidelines, testifies
to the seriousness and depth with which the Committee has performed its task
by creating a reliable and stable framework for the activities of multinational
enterprises; it indicates at the same time the Committee's sense for evolution
and step by step approach, strengthening especially the use to be made of the
Guidelines, what is termed in the Report as the 'follow-up' of the Guidelines.
The 1979 Review has indeed revealed the need to strengthen the efforts to
make the Guidelines better known by multinational enterprises and by labour;
to integrate them in their thinking and practices, so that their impact may
steadily increase.
1. M. Eyskens (born 29 April1933) is Dr. Juris, Dr. in Economy and Baccelaurus in Philosophy, all
of the University of Leuven. He also holds an M.A. degree in economics of the Columbia
University (USA) and is Professor at the Business School of the University of Leuven and
Commissary-General of the Catholic University Leuven-Louvain. He is the Representative of the
Leuven area in the Belgian Parliament since 1977, and was in 1976, respectively 1977 appointed as
Secretary of State for Flemish Regional Economy and for Budget. He is since 1979 Minister for
Development and Co-operation.
2. See Part II, I.
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