19 June, 2009
TNCs, in their pursuit of profits, exert enormous pressure on workers with little regard for democratic, labour and social rights. Employers, supported by many governments and institutions of international governance, seek to shift business risks onto workers and reduce their social, economic, and environmental obligations.
To date trade unions have struggled to act as a counterweight to the enormous economic power and sophistication of TNCs. Cost reductions sought by TNCs frequently include a shift from secure to insecure forms of employment, fragmentation of collective bargaining, corporate restructuring, and abuse of human and workers' rights. This serves to heighten competition between workers and communities within and across nations and triggers a race to the bottom in standards.
There is an urgent need for more effective international solidarity and cooperation among metalworkers in TNC and along the TNC supply chains to reverse these trends. The IMF has considerable scope to challenge this situation and a range of experiences to draw on, including strategies and activities to strengthen the solidarity between workers across sectors and TNCs. Nevertheless, better tools, a better exchange of information, and more mutual trust between workers need to be promoted by the IMF and its affiliates. This must be built on a critical analysis of the strengths and weaknesses of union organisation and corresponding networks, councils, and the resources available in each of the major TNCs. This analysis will be undertaken by the IMF Executive Committee, informed by the IMF regional and sectoral structures.