Statoil global workers' rights accord revised

A revised worldwide agreement on workers' rights was signed in March 2001 by the Norwegian-based petrochemicals group, Statoil, the International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM) and a Norwegian ICEM-affiliate, NOPEF. The accord, which updates a 1998 agreement, covers trade union and other human rights, health, safety and environment issues, information and training.

An innovative global agreement on "the exchange of information and the development of good working practice" was signed in 1998 between the Norwegian state-owned petrochemicals and energy group, Statoil, and representatives of the International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM) and the ICEM-affiliated Norwegian Oil and Petrochemical Union (Norsk Olje og Petrokjemisk Fagforbund, NOPEF) (NO9811197F). Statoil employs some 17,000 workers in over 20 countries worldwide.

A new agreement, updating and expanding this 1998 accord in some areas, was signed by the same parties on 15 March 2001 at Statoil's headquarters in Stavanger. The preamble to the agreement restates its purpose of creating "an open channel of information between NOPEF/ICEM and Statoil management about industrial relations issues in order to continuously improve and develop good work practices in Statoil's worldwide operations." As before, the updated agreement covers all activities where Statoil has direct control, but now the company also states that it will notify its subcontractors and licensees of the accord and encourage compliance.

Human rights

The parties to the agreement affirm their support for fundamental human rights, both in the community and at work. Specific human rights to be observed are:

• the right for employees to be represented by a trade union of their choice;

• basic trade union rights as defined by International Labour Organisation (ILO) Convention No. 87 on freedom of association and the right to organise and Convention No. 98 on the right organise and to engage in collective bargaining. Statoil expressly states that it will not oppose efforts to unionise its employees;

• a commitment not to employ forced or bonded labour, in conformity with ILO Conventions Nos. 29 and 105;

• a commitment to employ no child labour, in conformity with ILO Convention No. 138;

• a commitment to equality of opportunity and equal treatment in employment, in compliance with ILO Conventions Nos. 100 and 111. The revised agreement specifies that this includes equal pay for men and women for work of equal value and the prevention of discrimination based on race, colour, sex, religion, political opinion, national extraction or social origin;

• a commitment to pay "fair wages and benefits according to good industry standards in the country concerned"; and

• a commitment to provide a work environment which is safe and healthy, in line with "best practice" standards.

Protection of union representatives

Statoil gives a commitment that it will not dismiss or otherwise discriminate against union representatives or against employees who provide information which is relevant to the observance and implementation of the accord. All union representatives must, however, agree to respect the commercial confidentiality of any information disclosed to them in the exercise of their duties.

Further, Statoil states that it will assist union representatives in carrying out their duties by making available relevant information and any other agreed facilities. Time off taken to perform these functions will be agreed upon at local level, and may be paid, within the framework of local agreements.

The revised agreement adds a new provision that Statoil may facilitate meetings of unions representatives from Statoil operations in order to discuss the application and development of this agreement.

Health, safety and the environment

The parties state that they recognise the importance of protecting safety, health and well-being at work, and share a concern about "the impact of exploitation that production, use and disposal may have upon the natural and human environment".

The new version of the agreement introduces a section on environmental responsibility, committing the parties to cooperate to ensure that Statoil activities are carried out "with the fullest possible regard for the environment". Specific issues highlighted are:

• supporting a "precautionary approach to environmental challenges;"

• undertaking initiatives to promote greater environmental responsibility; and

• encouraging the development and diffusion of environmentally-friendly technologies

Implementation of the agreement

As under the previous agreement, the parties make a commitment to meet annually in order to review practice in the area of the agreed principles and in order to follow up the accord. Their aim will be to discuss the areas covered by the agreement with a view to "jointly agreeing actions that will further develop good working practices". In addition to general industrial and health, safety and environment issues, the accord then lists a number of wider topics for discussion in these annual follow-up meetings (which involve four or five representatives of the unions and relevant managers):

• general corporate policy on employment, occupational health, safety and environmental issues which affect the company and (a new provision) its suppliers and subcontractors;

• the economic and financial position of the company and the development of its business;

• training;

• issues affecting the exercise of trade union rights; and

• any other mutually-agreed issues.

The accord expressly states that it is not intended to replace or interfere with any local industrial relations practices in the area of information, negotiation or problem-solving. Further, the parties state that industrial relations issues are best resolved "as close as possible to the place of work".

In order to ensure the smooth implementation of the accord, the trade unions and the company will develop joint training arrangements covering all the issues dealt with, including appropriate training in health, safety and environmental best practice for union delegates from countries in which Statoil operates. Management training programmes within Statoil will also be developed.

The agreement will run for two years, after which it will be evaluated and may be prolonged.

Commentary

The revision of the Statoil agreement is viewed by the trade unions as an important development in terms of global workers' rights. "I believe that the agreement ... is a major step forward," stated the ICEM general secretary, Fred Higgs, "it should set an example to other multinational companies in our sectors". According to ICEM, the revised agreement is "designed to accord fully" with the Global Compact initiative launched by the United Nations in 1999, whereby companies are asked to "embrace and enact" nine principles in the areas of human rights, labour and the environment.

In a business environment which is becoming ever more global in nature, it would appear to be of paramount importance that companies operating transnationally sign up to agreements which give guarantees of basic human and labour rights to all their workers worldwide. Although the Statoil agreement states that it covers only employees in activities over which Statoil has direct control, the revised text now includes a company statement that it will endeavour to ensure wherever possible that these standards are met by its suppliers and contractors. Overseeing the continuing implementation of the agreement in all parts of the world in which Statoil operates will be a major challenge for the future.

The Statoil global arrangement has now been in place for three years. In 2000, it and a few similar initiatives (as at IKEA, the Swedish furniture group) were joined by new global workers' rights accords at companies such as the German-based Freudenberg (manufacturing) (EU0008267F) Faber-Castell (writing implements) and Hochtief (construction ) (DE0004249N), and the Spanish-based telecommunications group, Telefónica (EU0005244N). (Andrea Broughton, IRS)