Dominique Michel: Most framework agreements cover the entire supply chain, even if suppliers are not involved. Companies generally undertake to inform all their subsidiaries, suppliers, contractors and subcontractors of the agreement. If it turns out that a subsidiary or affiliate does not comply with the global agreement, the case can be referred to the headquarters of the multinational, which seeks solutions through dialogue. Stretching, V. (2013). Transnational alliances for the negotiation of international framework agreements: power relations and negotiation process between global trade union federations and European works councils. British Journal of Industrial Relations, 51(3), 577-600. To be effective, it is important to make arrangements for the effective implementation and monitoring of the AFI. The European Trade Union Confederation and BusinessEurope recognise that stakeholders may have difficulties in adopting the agreement at local level.
They identify three areas of innovation and experimentation with regard to the implementation of transnational company agreements: The term „international framework agreement” is used to distinguish negotiated agreements from the type of voluntary codes of conduct that companies unilaterally adopt to demonstrate their commitment to corporate social responsibility. Therefore, the negotiations on IFAs can be seen as the beginning of collective bargaining at the level of transnational corporations. GIFs therefore see IFAs as an opportunity to involve companies` business activities in a private standardization process in order to improve conditions for workers and unions around the world. In fact, several GUFs have developed their own guidelines to promote the negotiation and implementation of IFAs, such as . B IndustriALL guidelines for CGAs. [4] Dominique Michel: As a recent development in the field of industrial relations, international framework agreements are an interesting subject for the ILO. The Director-General of the ILO witnessed the signing of some of them, such as Chiquita. Several ILO departments (Social Dialogue Sector, Institute for Labour Studies, Offices for Employers` and Employees` Activities and the Programme for Multinational Enterprises) monitor and analyse these developments. The ILO Tripartite Declaration on Multinational Enterprises and Social Policy is a useful point of reference for enterprises considering the content of these agreements. This declaration contains recommendations on the desirable behaviour of enterprises with regard to employment, equal opportunities and treatment, qualifications, working conditions, occupational safety and health and industrial relations.
Helfen, M., & Fichter, M. (2013). Building transnational trade union networks through global production networks: designing a new arena of labour-management relations. British Journal of Industrial Relations, 51(3), 553-576. There are no enforcement mechanisms for IFAs at the global level. Although there have been relatively few examples of complaints about an IFA, in January 2019 IndustriALL suspended its global declaration on social rights and labour relations at the volkswagen car company because the company refused to allow workers at one of its plants in the United States to join a union. [2] This example shows that complaints often relate to violations of the IFA`s provisions on freedom of association and the right to collective bargaining. Kristensen, P. H., & Zeitlin, J. (2005). Local actors in the World Games: the strategic constitution of a multinational.
Oxford: Oxford University Press. ILO Online: Do these agreements also have an impact on suppliers or affiliated companies? Dominique Michel: Fifty companies active in different sectors have signed international framework agreements with five global trade union federations. The first was signed in 1988 by the French food company Danone, the second in 1995 by the hotel chain ACCOR. It was only in 2000 that the number of agreements signed per year increased to 50 by the end of 2006. Among them you will find the Swedish furniture company IKEA; the American banana company Chiquita; the German pencil manufacturers Faber-Castell and Staedler; Oil companies in Norway (Statoil), Italy (ENI) and Russia (Lukoil); car manufacturers in Germany and France such as Volkswagen, Daimler-Chrysler, Renault and Peugeot-Citroën; Spanish and French electricity producers Endesa and EDF; Telecommunications companies in Spain (Telefonica) and Greece (OTE) as well as retailers in France (Carrefour) and Sweden (H&M). IndustriALL has also concluded global agreements with multinational companies that cover specific key issues in the operations of these companies. These include our global health and safety agreement with ArcelorMittal and our global agreement on sexual harassment with Unilever. International Labour Organization (ILO). (2016).
Report IV. Decent work in global supply chains (105th session). Geneva: International Labour Organization. Egels-Zandén, N. (2009). TNC`s motivations for signing international framework agreements: a model of continuous negotiation of stakeholder pressure. .