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12 March, 2001
Development of trade union structures dates from the start of the industrialisation process, more than 150 years ago. At that time, transnational companies (TNCs) did not exist and most workers were employed in huge, workforce-intensive plants.
Trade union structures were built up in order to strengthen solidarity between workers in different companies and regions. A great deal of emphasis was put on regional and national structures, and not on company level.
Industrial production is nowadays dominated by TNCs, although most workers are employed in small- and medium-sized industries -- at least this is the reality in our sectors.
The TNCs have created a new situation:
- Companies operate worldwide.
- Workers in the same company often think they have more in common than workers in the same country.
- In the name of competition, TNCs have created a situation to pit workers in one country against those of another.
- Globalisation is creating a world that undermines existing trade union structures.
There is no doubt about the fact that TNCs are important for the global economy and for jobs. They play an important role for development and weigh heavily in the decision-making system in many countries and international organisations.
For the trade union movement worldwide, TNCs are an important problem, which will have to be kept constantly under review. To counterbalance their increasing power, the International Metalworkers' Federation established in the 1960s World Councils for the automobile industry. It was an American initiative driven by the UAW. The goals are to strengthen links between workers in the same company all over the world, wherever the company concerned is operating.
This was meant to be a supplement, not in contradiction to the struggle conducted in every country which aims at negotiating nation-wide agreements.
To date, the IMF has set up over 30 World Company Councils in various sectors of the metal industry. The IMF World Councils are trade union forums.
The 1997 IMF World Congress, in San Francisco, decided to develop an IMF model Code of Conduct and to seek agreements on the Code with TNCs for which the IMF operates World Company Councils. A special working party was set up to deal with these specific issues and make proposals to the IMF Executive Committee on behalf of the general secretary. The Executive discussed and unanimously decided to adopt a Code of Conduct for TNCs, to be submitted to a number of TNCs for negotiations.
Now that we have the instrument, the question is what do we do with it?
It is extremely important that we do not let the TNCs determine what to do and how to do it. Negotiations have started in various TNCs at the initiative of national and local unions. It is especially in companies where industrial relations have been good for a long time that it is easier to conduct negotiations of this kind.
But the fact that a union in a company has good relations with management in one place does not necessarily mean that unions in the same company in other parts of the world are enjoying the same benefit. There are many differences in traditions and ways of acting which are sensitive and will have to be taken into consideration when a union is determining which strategy and tactic to adopt in implementing our programme.
Many TNCs adopt different tactics for different countries. Most of the unions in Europe have no problems as their existence is recognised in labour law, both national and European, but in many other parts of the world, both in industrialised and developing countries, the struggle for the right to have a union is a daily one.
A Code of Conduct is a global agreement with a transnational company implementing internationally-recognised labour rights in its own operations, and pressuring its suppliers to implement them as well. Such a Code can only be negotiated in cooperation with national and international labour organisations.
So, what do I suggest?
- All IMF affiliates should have comprehensive information about the policy documents adopted by the IMF Executive and Central Committees.
- The question of the TNCs and Code of Conduct will have to be part and parcel of national training programmes promoted and carried out by IMF affiliates.
- The IMF coordinates the negotiations and is co-signatory together with national and/or local unions of international agreements.
- A working group will have to be set up in each individual case.
- There must be a follow-up of the implementation of the agreements by special committees which include both the unions and management.
I believe this is a vital question for the entire trade union movement.
I believe in dialogue and discussion, if this is based on reciprocal respect and recognition.
This can only happen if we have a collective agreement.
Trade union structures were built up in order to strengthen solidarity between workers in different companies and regions. A great deal of emphasis was put on regional and national structures, and not on company level.
Industrial production is nowadays dominated by TNCs, although most workers are employed in small- and medium-sized industries -- at least this is the reality in our sectors.
The TNCs have created a new situation:
- Companies operate worldwide.
- Workers in the same company often think they have more in common than workers in the same country.
- In the name of competition, TNCs have created a situation to pit workers in one country against those of another.
- Globalisation is creating a world that undermines existing trade union structures.
There is no doubt about the fact that TNCs are important for the global economy and for jobs. They play an important role for development and weigh heavily in the decision-making system in many countries and international organisations.
For the trade union movement worldwide, TNCs are an important problem, which will have to be kept constantly under review. To counterbalance their increasing power, the International Metalworkers' Federation established in the 1960s World Councils for the automobile industry. It was an American initiative driven by the UAW. The goals are to strengthen links between workers in the same company all over the world, wherever the company concerned is operating.
This was meant to be a supplement, not in contradiction to the struggle conducted in every country which aims at negotiating nation-wide agreements.
To date, the IMF has set up over 30 World Company Councils in various sectors of the metal industry. The IMF World Councils are trade union forums.
The 1997 IMF World Congress, in San Francisco, decided to develop an IMF model Code of Conduct and to seek agreements on the Code with TNCs for which the IMF operates World Company Councils. A special working party was set up to deal with these specific issues and make proposals to the IMF Executive Committee on behalf of the general secretary. The Executive discussed and unanimously decided to adopt a Code of Conduct for TNCs, to be submitted to a number of TNCs for negotiations.
Now that we have the instrument, the question is what do we do with it?
It is extremely important that we do not let the TNCs determine what to do and how to do it. Negotiations have started in various TNCs at the initiative of national and local unions. It is especially in companies where industrial relations have been good for a long time that it is easier to conduct negotiations of this kind.
But the fact that a union in a company has good relations with management in one place does not necessarily mean that unions in the same company in other parts of the world are enjoying the same benefit. There are many differences in traditions and ways of acting which are sensitive and will have to be taken into consideration when a union is determining which strategy and tactic to adopt in implementing our programme.
Many TNCs adopt different tactics for different countries. Most of the unions in Europe have no problems as their existence is recognised in labour law, both national and European, but in many other parts of the world, both in industrialised and developing countries, the struggle for the right to have a union is a daily one.
A Code of Conduct is a global agreement with a transnational company implementing internationally-recognised labour rights in its own operations, and pressuring its suppliers to implement them as well. Such a Code can only be negotiated in cooperation with national and international labour organisations.
So, what do I suggest?
- All IMF affiliates should have comprehensive information about the policy documents adopted by the IMF Executive and Central Committees.
- The question of the TNCs and Code of Conduct will have to be part and parcel of national training programmes promoted and carried out by IMF affiliates.
- The IMF coordinates the negotiations and is co-signatory together with national and/or local unions of international agreements.
- A working group will have to be set up in each individual case.
- There must be a follow-up of the implementation of the agreements by special committees which include both the unions and management.
I believe this is a vital question for the entire trade union movement.
I believe in dialogue and discussion, if this is based on reciprocal respect and recognition.
This can only happen if we have a collective agreement.