UK-based multinational signs first international framework agreement

In December 2008, the world’s largest security solutions group G4S signed an international framework agreement with UNI Property Services. The provisions laid down in the agreement apply to all 570,000 G4S employees, spread across more than 110 countries. This international framework agreement states that G4S will follow international and national labour law in its relations with workers and is the first one signed between a global union federation and a UK corporation.

On 11 December 2008, G4S, UNI Property Services Global Union and the British General, Municipal, Boilermakers and Allied Trade Union (GMB) signed an International Framework Agreement on ‘Ethical employment partnership’. G4S is the world’s leading international security solutions group, which specialises in outsourced business processes in economic sectors where security and safety risks are considered a strategic threat.

According to the signatories to the agreement, the G4S group’s international expansion in recent years and the mix of labour practices prevailing in some developing markets mean that a global approach to labour relations is appropriate to ensure consistency in trade union and employee relations.

Provisions of agreement

The agreement, which is the first international framework agreement signed between a global union federation and a UK corporation, is expected to drive forward improvements in employment standards across the global security industry while helping to ensure that employee and trade union rights are respected throughout the company. In particular, the agreement stipulates that G4S will respect rights established through the ILO core conventions. Furthermore, the group agrees to respect the OECD Guidelines for Multinational Enterprises.

G4S, UNI and GMB recognise that the agreement is a significant step forward in company-level labour relations. While G4S accepts to contribute to a positive employee relations climate, UNI states that it will engage in constructive social dialogue with the G4S group on a global and local basis, seeking to settle any disputes by peaceful means. G4S has explicitly agreed to recognise the rights of employees to join and be represented by a trade union. The group has also agreed to work with UNI to support these rights.

The parties to the agreement also intend to expand the terms and conditions of employment for G4S employees to ensure that the group attracts and retains the most qualified workforce. As G4S operates in a highly competitive environment, in which many local competitors do not respect legislation on working hours and pay, trade unions and management will develop a joint strategy to monitor and raise standards among all of the companies in the market.

Implementation and monitoring of agreement

The G4S group’s management and UNI Global Union will jointly ensure that the agreement is effectively implemented. The agreement provides for a process and a forum for continuous improvement and resolution of concerns. In order to monitor the application of the agreement, joint review meetings will take place twice a year.

Commentary

In the group’s press release, the Director of Employee Engagement and Human Resources at G4S, Jenni Myles, commented:

As a market leader with a major exposure to developing markets, G4S is in a strong position to help improve employment standards across the security industry. G4S has a long history of building positive relationships with employees and their representatives – our relationship with the GMB in the UK has been in place for more than 40 years. We have been considering whether an agreement with UNI is appropriate for a number of years, and began serious discussions with the assistance of the GMB union back in 2007. (…) We take our responsibilities as a global leader very seriously and our new partnership with UNI is designed to support the raising of employment standards to even higher levels, and with its help we believe we can improve standards not just in G4S but in the wider business community. (…) We believe our employees, customers and investors will see the value in this global partnership and that we now have a real opportunity to work together with UNI for the benefit of all of our stakeholders.

In the trade union’s press statement, the General Secretary of UNI Global Union, Philip Jennings, added:

We welcome this agreement as a first for a British employer in the services sector. A global company working with a global union is the way forward for a sustainable business model. Global agreements are an integral part of a genuine corporate social responsibility policy and enable us grow the “triple bottom line” together. This agreement represents an opportunity for progress for the many thousands of workers who want to improve their lives through building unions and is intended to raise standards across the many markets where G4S operates.

Volker Telljohann, IRES Emilia-Romagna, Bologna