Global agreement signed at Endesa

Trade unions and management representatives concluded a 'global agreement' at the Spanish-owned power firm Endesa in January 2002. The accord commits the parties to respecting international labour standards, trade union rights and health and safety standards, and to recognising the importance of vocational training. It also establishes regular international meetings between unions and management. Also in January 2002, the existing global agreement on workers' rights at the German multinational Freudenberg was renewed without amendment.

On 25 January 2002, a 'global agreement ' on workers' rights and international management-trade union dialogue was signed by management representatives of the Spanish-based power multinational Endesa, two Spanish trade unions - the Trade Union Confederation of Workers' Commissions (Comisiones Obreras, CC.OO) and General Workers' Confederation (Unión general de Trabajadores, UGT) - and the International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM).

Basic commitments

In the agreement, the signatory parties make the following commitments:

• to comply with international labour standards and in particular theInternational Labour Organisation (ILO) Conventions on trade union freedom and the right to organise;

• to respect health and safety standards and prevent labour hazards;

• to look on vocational training as 'an instrument of qualifications which are beneficial to both sides';

• to provide the highest possible standard of service; and

• to support and maintain Endesa's expansion plans in order to enable its activities and employment to grow.

Dialogue and meetings

The parties to the Endesa agreement make a commitment to establish 'a channel of dialogue and international trade union communication' at the highest level of the organisation in order to achieve an adequate exchange of relevant information between management and trade union representatives. The agreement makes provision for an ICEM representative to participate once a year at least in meetings between Endesa and local trade unions, when these meetings discuss issues with an international dimension. These annual meetings in Spain take place within the framework of an agreement between the company and trade unions, dating from 25 October 2000.

Further, the agreement makes provision for a meeting to be held at least once every six months between the Endesa human resources director and the highest officials of the trade union signatory parties, in addition to one ICEM representative from every country outside of Spain where Endesa controls companies. These meetings will analyse and exchange information on 'the most relevant facts occurring in labour relations' in addition to examining the short- and medium-term outlook and employment prospects.

The accord also states that both parties may agree on other initiatives aimed at meeting the objectives and principles which underpin the agreement, including participation in international programmes. Both parties state that they will accord priority to devising a code of conduct.

Endesa undertakes to provide those attending meetings with 'the communication facilities necessary to maintain the contact of the participants among themselves and with the trade union organisations signing the present agreement'. Further, the company will also bear the 'reasonable' expenses related to organising and attending meetings.

The agenda of meetings will be distributed in advance by Endesa management and additional topics of a general or pressing nature may also be discussed, with prior notification.

The agreement contains a clause stating that the contacts and information exchanged between the parties to the accord must not replace or interfere with labour relations at local level.

In terms of confidentiality, the accord states that information provided by management at meetings may be declared to be reserved or confidential if its distribution could be detrimental to the company's economic interests or the correct execution of its plans. In this case, participants at meetings must commit themselves to respecting this confidentiality.

Reactions

The accord has been welcomed by all the signatory parties. The company has stated that this agreement will institutionalise the international dialogue between Endesa management and workers' representatives. Fred Higgs, the ICEM general secretary, issued a statement claiming that the accord is 'a major step forward both for Endesa's workers and for the company. It ensures that ICEM-affiliated unions are fully recognised in their company's operations worldwide, and gives them a proper say. At the same time, it gives the company guarantees of the workforce's commitment to the highest standards of service worldwide and to Endesa's expansion plans. The linkage to ILO standards is an important yardstick. It also ensures that the agreement is fully compatible with the United Nations' Global Compact initiative and will help to give further substance to that initiative.'

Freudenberg agreement renewed

The existing international agreement at the German-headquartered non-woven and allied products multinational Freudenberg, dating from July 2000 (EU0008267F) has been renewed without amendment until 31 December 2002. The signatory parties to this accord are the management of Freudenberg, ICEM and the German Mining, Chemicals and Energy Workers' Union (Industriegewerkschaft Bergbau Chemie Energie, IG BCE). The accord covers issues such as trade union rights, workplace equality, health, safety and the environment and the prohibition of child and forced labour. This accord is seen as innovative in that it gives the ICEM a monitoring role. It also provides for annual meetings between the global management of Freudenberg and ICEM representatives.

Commentary

The Endesa accord and the renewal of the Freudenberg agreement are the latest developments in a growing trend towards the conclusion of global-level agreements between the management of multinational companies and trade union representatives. The two accords contain commitments from both sides – from the company side a pledge to respect a wide range of employment rights and labour standards, usually in reference to ILO Conventions, and from the union side a commitment to support company growth plans and to provide the best possible levels of production and service. The success of these types of accord is manifest in the fact that original agreements are now starting to be renewed, as is the case at Freudenberg and in March 2001 at the Norwegian oil group Statoil (EU0103201F).

The increasing number of global agreements can only be seen as a positive development, which brings the signatory parties together within a framework of ongoing dialogue and information exchange. This is currently particularly relevant in the light of the current emphasis on the part of the European Commission on labour standards (EU0107229F), corporate social responsibility (EU0107228F) and employee involvement in company strategy, particularly within the context of redundancies (EU0106216N). (Andrea Broughton, IRS)