23 May, 2011
The result of long-running consultations with trade unions, the OECD Guidelines for Multinational Enterprises have been updated and improved, representing a positive opportunity to force global capital to respect workers. Stronger clarification that companies’ must ensure compliance throughout supply chains is a significant improvement, as is a new chapter on human rights which requires multinational companies to respect human rights of all workers, in line with the Guiding Principles for Implementing the UN Framework, Protect, Respect, Remedy.
The OECD Guidelines for Multinational Enterprises are a strong international instrument for promoting corporate social responsibility. In practice, however, their implementation has encountered limits. In this regard, the Update will create a number of improvements in the Procedural Guidance including provisions for: indicative timescales for the completion of cases; and stronger cooperation between home and host country NCPs (National Contact Points).
The new developments to the text must now be effectively implemented and respected by national governments.
Other important advances include language on outsourced and temporary work, providing a tool for problematic precarious work to be addressed; and provisions for workers to receive a decent wage or “at least adequate to satisfy the basic needs of the workers and their families”.
The updated Guidelines will be adopted at the OECD Ministerial Council Meeting on Wednesday 25 May, and will be immediately in effect.
The ICEM participated in dialogue over the past year with OECD governments. Centrally important in those consultations was TUAC (Trade Union Advisory Committee to the OECD), with the ITUC, GUFs, BIAC (Business Forum), and OECD Watch also partners. There remains more room for improvement of the Guidelines, and dialogue will be ongoing.
The OECD Guidelines hold the potential to promote corporate social and environmental responsibility worldwide and to make an effective contribution to sustainable development and to the social dimension of globalisation. Potential is increased through this update.