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19 May, 2010
Speaking at the IMF conference, Anne Lindsay of CAFOD (Catholic Agency for Overseas Development), which along with IMF is one of the founding members of the GoodElectronics network (www.goodelectronics.org), stressed the importance of trade unions and Non-Governmental Organizations working together to compel companies to improve conditions in their supply chains. Through GoodElectronics, unions and NGOs concerned with labour rights in the industry can strengthen their relationship and put a consistent message to the companies that they need to improve their approach to freedom of association and enter into direct dialogue with trade unions.
The ensuing discussion identified several more principles for dealing with supply chain labour abuses. Responses must be speedy and specific to the particular circumstances. One potential danger to guard against is that multinationals do not sever the supply chain relationship, and thus put workers' jobs at risk, without making all possible efforts first to remedy the situation. Trade unions in the multinational's home country have a particular responsibility to hold the company to respecting labour standards in their own relationship.
An important strategy is to improve dialogue with companies, including discussions towards International Framework Agreements (IFAs). The IMF has entered into a number of IFAs with multinational companies, though none in the electronics sector. Such agreements commit companies to respecting at least the key ILO Conventions on freedom of association and the right to collective bargaining, discrimination, child labour and forced labour. Most importantly, in signing an IFA with the IMF, the multinational company undertakes to pressure its suppliers to uphold the same standards.
Such an agreement in the electronics industry, besides avoiding the pitfalls inherent in unilateral codes, would provide a useful tool for enabling dialogue between companies and trade unions at the international level that could eventually lead to workers participating in monitoring labour conditions in their own factories.
In concluding the conference, IMF General Secretary Jyrki Raina highlighted areas for future IMF work. This will include:
- Supporting organizing and union building in the Asia-Pacific, prioritizing Indonesia, Thailand, Vietnam, and the Philippines;
- Organizing in industrialized countries;
- Spreading good examples of organizing non-manual workers, women, young people and migrant workers;
- Cooperation with NGOs to create public pressure on governments, companies and investors;
- Working with NGOs, including continued participation in the GoodElectronics network;
- Taking action against precarious work; and
- Developing trade union networks in TNCs and supply chains.