New global workers' rights deals

New "global agreements" providing for the respect a range of workers' rights in their worldwide operations have recently been concluded in three major European multinationals – Carrefour (France, commerce), Skanska (Sweden, construction) and Telefónica (Spain, telecommunications). These are the latest additions to a growing list of similar accords negotiated between multinationals and international trade union organisations.

The first few months of 2001 have seen a number of new "global agreements" on workers' rights and related issues agreed by Europe-based multinational companies and international trade union organisations.

Skanska agreement

An international agreement on workers' rights was signed on 8 February 2001 by the management of the Swedish-headquartered construction company Skanska and the International Federation of Building and Wood Workers ( IFBWW). The agreement applies to Skanska's 80,000 employers in a total of 60 countries worldwide. It states that the employment of all workers must meet the minimum requirements of legislation of countries in which Skanska companies operate, in addition to meeting the requirements of the relevant International Labour Organisation (ILO) Conventions.

The labour standards which should be respected are divided into eight areas, as follows:

• employment should be freely chosen – there should be no forced or slave labour;

• there should be no discrimination in employment;

• a ban on child labour should be in place;

• there should be recognition of the workers' right to organise;

• there should be "fair" compensation for work undertaken;

• workers should be subject to "reasonable" working hours;

• good working conditions should prevail; and

• there should be "fixed employment conditions".

The agreement provides for the setting up of an "application group", made up of representatives from the management of Skanska, in addition to representatives from IFBWW and the executive committee of the company's European Works Council (EWC). This group will examine compliance with the agreement and will try to resolve any conflicts connected with the accord which cannot be resolved through discussions at the workplace.

If the application group fails to reach agreement on a particular issue, the matter will be referred to an arbitration board comprising one member each of the group management and IFBWW, together with an independent chair appointed by both parties. The rulings of the arbitration board will be binding.

In terms of workplace inspection visits, a person appointed jointly by the management and the EWC executive committee will visit and inspect a number of selected sites each year. If a specific site does not comply with the terms of the agreement, this will be reported back to the group management, which will take steps to rectify the situation.

Telefónica code of conduct

The accord at the Spanish-based telecommunications group Telefónica takes the form of a [code of conduct](http://www.union-network.org/uniinfo.nsf/58f61ccf5875fe90c12567bb005642f9/a4c95949b1a2b3f8c1256a090056d49b/$FILE/UNI Telefonica code of conduct.pdf) on trade union and workers' rights and was signed on 12 March 2001 by the group's management and Union Network International (UNI), together with the Spanish unions, the Trade Union Confederation of Workers' Commissions (Comisiones Obreras, CC.OO) and General Workers' Confederation (Unión General de Trabajadores, UGT).

The agreement is the result of a social dialogue process at international level between the company and UNI and UNI's affiliates. A social protocol on international agreements, signed by the same parties in April 2000 (EU0005244N), prepared the ground for this latest code of conduct

The code of conduct refers to the relevant ILO Conventions and covers areas which are similar to the Skanska accord, as follows:

• employment must be freely chosen;

• a ban on discrimination in employment;

• no child labour;

• recognition of the right to organise and of trade unions to represent and negotiate on behalf of workers;

• compliance with minimum standards in the areas of wages and working time; and

• good health and safety and environmental standards.

In addition to the above, the code of conduct also includes clauses on themes such as respect for others at work, training and employment stability.

The signatories will engage in ongoing dialogue on the administration and implementation of the agreement and meet regularly

Carrefour agreement

The most recent global labour rights agreement was signed on 15 May 2001 between UNI and the French-based commerce multinational Carrefour. In the agreement, Carrefour and UNI undertake jointly to monitor the proper application of:

• ILO Convention 87 on the right of employees to join a trade union of their choice;

• ILO Convention 98 on the right to collective bargaining; and

• ILO Convention 135 on the protection of employees and their representatives against any act of discrimination which infringes upon trade union freedom.

The agreement goes on to state that respect for trade union rights and recognition of fundamental rights "are part of the corporate culture of the Carrefour group". In addition, the group condemns child labour, slavery and forced labour. It also intends to ensure that the relevant principles set out in ILO Conventions are respected by the group's suppliers.

UNI has welcomed the deal, particularly as it gives UNI a joint implementing role: "This means that UNI now has a formal position as a social partner in Carrefour, with the possibility to raise issues in connection with workers' and trade union rights."

Commentary

These latest three agreements join a small but growing number of similar accords negotiated between multinational companies and international and national trade unions. Notable agreements of this kind have over the past year been concluded at companies such as the Norwegian-based oil group Statoil (EU0103201F), the German-owned manufacturing group Freudenberg (EU0008267F), writing implements group Faber-Castell and construction group Hochtief (DE0004249N),

The growing number of such international agreements is a step forward for international trade union organisations, which are now beginning to feel that they are influencing the policy of some companies in this area. However, while the principle of establishing basic labour rights for a group's employees worldwide is an important one, it is the issue of compliance which is the most problematic. Most accords contain provisions relating to site inspection – in order to establish a real picture of compliance, it is essential that these checks are carried out impartially. The issue of a group's suppliers is even more problematic – although many of the agreements, including the Carrefour accord, state that they will try to ensure that the company's suppliers adhere to the terms of the accord, it will be a difficult task to ensure that all suppliers, and their suppliers in turn, comply. (Andrea Broughton, IRS)