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Norske Skog Signs Global Labour Agreement

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12 August, 2005ICEM News release No. 31/2002

Worker rights in its operations worldwide are guaranteed by leading paper multinational Norske Skog under a global agreement signed with trade unions today. This marks a further important step forward in the globalisation of industrial relations.

       

Employment conditions and union rights are covered by the new package, which the company signed in Oslo with the 20-million-strong International Federation of Chemical, Energy, Mine and General Workers’ Unions (ICEM).

The ICEM-affiliated Norwegian union Fellesforbundet facilitated the agreement and is a co-signatory. Fellesforbundet organises Norske Skog workers in the company’s home country, Norway, and is the largest trade union in the private sector in Norway.

(photo: Knut Vadseth for Norske Skog)

Norske Skog is a leading producer of wood-containing publication paper, particularly newsprint. It employs some 11,000 people worldwide. 5,820 of these are in Europe, including 2,950 in Norway.

Under today’s agreement, Norske Skog and the unions will work together “locally, nationally and internationally” on the basis of the company’s core values – openness, honesty and cooperation. “This ensures the possibility for the employees to influence decisions through consultations with the management,” the agreement says.

(photo: Norske Skog/Creative Partners Tasmania;
Norske Skog Gilbey)

The main points:

Union rights: All Norske Skog workers “shall have the right to be members of trade unions” and the employer “shall take a positive attitude to trade union activities, including organising.” Unions will be recognised for collective bargaining purposes. There will be no discrimination against workers’ representatives, who will have all necessary access rights to the company’s premises.

Equality of opportunity and treatment “regardless of race, colour, gender, religion, political conviction, nationality, cultural origin or other irrelevant factors.”

Health and safety: Norske Skog will “work with the employees, their representatives and trade unions, to continually improve the company’s health and safety performance.”

The company will not use child labour or forced labour.

“Wages and benefits paid for a standard working week shall at least be sufficient to cover the basic needs of the worker and his or her family.”

Employment “shall, as a main rule, be based on permanent employment.” Temporary and part-time employees “should as a main rule receive the same relative terms and conditions as full-time permanent employees.” All employees “shall have the opportunity to take part in relevant educational and training programmes.”


Signing up in Oslo (left to right):
Fellesforbundet President Kjell Bjørndalen, Norske Skog's President and CEO Jan Reinås and ICEM General Secretary Fred Higgs.
(photo: Hege Vatnan/Fellesforbundet)

These are described as “minimum rules”. On the company’s side, responsibility for ensuring compliance will rest with “the top manager for each business unit”. The agreement applies to all operations directly controlled by Norske Skog. However, the company also undertakes to encourage full compliance within operations where it does not have a controlling interest, as well as by its subcontractors and suppliers.

These are described as “minimum rules”. On the company’s side, responsibility for ensuring compliance will rest with “the top manager for each business unit”. The agreement applies to all operations directly controlled by Norske Skog. However, the company also undertakes to encourage full compliance within operations where it does not have a controlling interest, as well as by its subcontractors and suppliers.

As with all the ICEM’s global agreements, the touchstones for compliance are the detailed worldwide standards adopted by the UN’s International Labour Organisation (ILO). The relevant ILO Conventions are cited by number in the new agreement with Norske Skog, which is also designed to meet the requirements of the Global Compact initiative launched by UN Secretary-General Kofi Annan.

Importantly, compliance with the agreement is subject to annual review at a joint meeting of the signatories. There is also a step-by-step complaints procedure, leading up to the global level where necessary. This is the crucial difference between the ICEM’s global agreements and the internal codes of conduct adopted by many multinational companies.

The company undertakes to provide all the information, access rights and training needed to ensure proper monitoring of the agreement.

Signing up for the ICEM in Oslo today was General Secretary Fred Higgs. “We are proud to have achieved this agreement with a leading paper manufacturer like Norske Skog,” Higgs said. “I am confident that we will maintain our excellent relationship with this company, and that we will soon go on to sign further global agreements with other enlightened multinationals.

“Such agreements are vital to the interests of workers worldwide,” Higgs added. “But they are also of great benefit to the companies and their other stakeholders. Global agreements give substance and credibility to corporate ethics. Local presence, global strength is Norske Skog’s slogan. We are sure this agreement will provide exactly that, to the benefit of all concerned.”


(photo: Norske Skog/Creative Partners Tasmania)

Kjell Bjørndalen, President of Fellesforbundet stated, “For us living in Norway, it is an obvious thing that the workers’ rights are protected through legislation and collective agreements. But in many parts of the world, this isn’t the case. The agreement now concluded, will ensure all employees of Norske Skog worldwide, basic human and trade union rights. This means for instance the right to be members of trade unions recognised for the purpose of collective bargaining, the right to information and minimum standards for health and safety.”

“The agreement with Fellesforbundet/ICEM is an expression of our will and ability to think innovatively in our efforts to be a good employer and a company aware of its social responsibility,” said Norske Skog’s CEO and President Jan Reinås. “We take it for granted that all Norske Skog's activities should respect basic human rights and fundamental ILO Conventions on the protection of employee rights. The agreement harmonises well with our core values of Openness, Honesty and Cooperation,” he added, pointing out that this agreement commits the company to observe basic human rights and to guarantee good working and cooperation conditions. “This is what we do at Norske Skog, and it is an absolute requirement for our entire global organisation,” said Jan Reinås.