International framework agreement concluded at EADS

An international framework agreement was concluded in June-July 2005 between the European Works Council and management at the European defence company EADS. It commits the company to adhering to a range of ILO Conventions and other international instruments in order to ensure a fair and decent working environment for its workforce worldwide.

On 8 July 2005 the International Metalworkers’ Federation (IMF) announced that an international framework agreement had been concluded between management representatives from the European Aeronautic Defence and Space Company (EADS NV) and the European Works Council of EADS NV. The agreement was reached at the end of June 2005 and was co-signed by the IMF president, Jürgen Peters, and general secretary, Marcello Malentacchi, in the first week of July 2005.

In the preamble to the accord, EADS states that it wants to preserve its tradition of excellence in the context of the globalisation of its business activities. It is therefore committed to adhering to the provisions of international instruments such as International Labour Organisation (ILO) Conventions, the Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises and the provisions of the United Nations (UN) Global Compact (to which EADS subscribed in October 2003). The parties to the agreement state their 'strong belief' that corporate responsibility is 'a key to long-term success'.

The main provisions of the agreement are set out below.

Fundamental rights

The signatory parties state that they approve and support the respect of the UN Universal Declaration of Human Rights, the OECD’s Guidelines for Multinational Enterprises and relevant ILO Conventions.

Equal opportunities

EADS makes a commitment to uphold equal opportunities in employment and not to undertake any form of discrimination 'unless selection according to specific criteria is expressly provided for by national legislation'. It pledges its compliance with ILO Convention 100 on equal remuneration, Convention 111 on discrimination in employment and occupation and Convention 135 on workers’ representatives.

EADS also states that discrimination against employees on grounds of race, gender, colour, religion, political opinion, nationality, sexual orientation, social origin or trade union affiliation is 'unacceptable'.

Free choice of employment

EADS makes a commitment not to engage in any form of forced or compulsory labour, in compliance with ILO Convention 29 on forced labour and ILO Convention 105 on the abolition of forced labour.

Ban on child labour

EADS condemns child labour and makes a commitment to refrain from this, in compliance with ILO Convention 182 on the worst forms of child labour. EADS also states that it entities will respect ILO Convention 138 on the minimum age of employment or national legislation or collective agreements if they are more favourable.

Industrial dialogue

EADS states that it places importance on the permanence of quality of industrial dialogue within the EADS group. It also recognises the principles of freedom of association and the protection of the right to organise and collective bargaining, in line with ILO Conventions 87 and 98.

The company also emphasises its respect for freedom of thought and the right of all workers to form and join trade unions. Further, it respects the right of all workers to elect their representatives wherever this is stipulated by the law or by local regulations.

EADS and its EWC state that they will adapt, whenever relevant, the rules of industrial dialogue within the group to account for globalisation and the development of the group’s activities.

Pay

The company recognises the principle of 'fair reward for labour' and respects the principle of equal pay between men and women for work of equal value, as set out in ILO Convention 100.

Working time and leave

The company states that it respects national legislation, conventions and business practices governing working time and leave in the countries in which it operates. It also states that it adapts collective working time to the company’s needs, but taking employees’ expectations into consideration as far as possible.

Employment

EADS states its commitment to promoting the employment of its workforce. Specifically, in the case of company 'reorientation' or restructuring, it says that it will do 'all it can to protect employment by means of all possible measures, including training and mobility, whenever appropriate'.

Training

EADS states that it promotes and encourages lifelong continuing training among its workforce, as a means of maintaining the company’s business skills and the skills of its employees.

Health and safety and working conditions

EADS describes the protection and improvement of health and safety in the workplace and working conditions as 'a key element' for the group. It states further that it strives to develop a 'proactive occupational health and safety and risk prevention policy'. It also prohibits any type of or threat of physical and/or psychological abuse in the workplace.

Further, the group states that it strives to contribute to the improvement of worker’s social welfare, medical care and long-term disability coverage.

Relationships with suppliers

EADS aims to integrate its suppliers into its 'ethical' approach to business. Therefore, it states, compliance with EADS standards is a criterion for selecting suppliers. It also expects all its suppliers to recognise and apply the principles of this agreement and encourages them to introduce and implement equivalent principles in their own companies.

Implementation

The head of each business within the EADS group will be responsible for ensuring compliance with this agreement. All EADS employees will be informed, either orally or in writing, of all the agreement’s provisions.

EADS will ask its suppliers and subcontractors to cooperate 'as best they can' in applying the agreement and to remedy the situation in the case of infringement.

In the case of any breaches of the agreement’s provisions, trade union or works council representatives may inform central management either orally or in writing. Central management will then take 'appropriate measures' to eliminate any breach of the agreement. It will then report on any measures taken at a plenary session of its EWC. The EWC may also submit proposals for corrective measures to ensure compliance with the agreement.

In the case of a dispute concerning the application of the agreement, an arbitration process will be mutually agreed by the EADS head of human resources and the EWC.

Commentary

This is the latest in a series of international framework agreements, negotiated between the central managements of transnational companies and international and national trade union representatives. In some cases, as is the case at EADS, the agreement was negotiated with representatives of the company’s EWC and co-signed by international trade union representatives. Recent examples of international framework agreements include the accords signed in June 2002 at the German motor manufacturer Volkswagen and the Norwegian paper multinational, Norske Skog (EU0207203F), and in July 2004 at the German multinational Prym (EU0410203N).

IMF holds these agreements in high regard, stating that they are a powerful tool in the context of globalisation: 'International framework agreements (IFAs) are a relatively recent tool but one now widely used by the IMF and other Global Union Federations to lay down the rules of conduct for transnational companies. Since they are negotiated on a global level and require the participation of trade unions, international framework agreements are an ideal instrument for dealing with the issues raised by globalisation.'

As with all these agreements, the proof of the latest accord’s effectiveness will be in its transposition. In particular, it will have greater effect if EADS can ensure that its provisions are adhered to by it suppliers and subcontractors. (Andrea Broughton, IRS)