Promoting Decent Work in Supply Chains:
Closing the Governance Gaps
International Framework
Agreements
Outline of Presentation
 Growing Importance of Global Supply Chains
 Trade Unions’ Response: International Framework Agreements
 Purpose of International Framework Agreements
 Some Examples of International Framework Agreements
 Minimum Content of International Framework Agreements
 Implementation of International Framework Agreements
 Monitoring of International Framework Agreements
 Conclusions
 Discussion Questions
Growing Importance of Global
Supply Chains
 Trade liberalization, advances in ICT and the dynamics of international
investment accelerated the rise of the “Supply Chain Model.”
 One in five jobs can be linked to supply chains according studies done
by the ILO
 MNEs controlled GSCs undercut the power of labour to bargain over
wages and working conditions
 Pro-business rules granted to TNCs through trade agreements
resulted in bad conditions for workers and societies

No corresponding globalized social rights such as human and labour
rights
 A plethora of voluntary forms of regulation has emerged since the
1980s:
 Codes of conduct
 Corporate Social Responsibility (self-regulation mechanism integrated
into a business model
 The challenge: Labour relations are largely missing in these initiatives
Trade Unions’ Response: International Framework
Agreements
 Labour’s response to globalization of the operations of
MNEs along GSCs are International Framework
Agreements (IFAs)
 The added value of IFAs compared to other initiatives is
that they are the outcome of direct negotiations between
MNEs and GUFs.
Definition:
“An International Framework Agreement is a policy
instrument negotiated between a Multinational Enterprise
(MNE) and a Global Union Federation (GUF) in order to
establish an on-going relationship between the parties and
ensure that the company respects the same standards in all
the countries where it operates.”
 IFAs consist of laid down basic principles and standards
generally originating from the core labour standards of the ILO.
Purpose of International Framework
Agreements
 IFAs are used as a means of engaging MNEs, their suppliers and
contractors to hold them accountable for working conditions
and employee representation in their operations.
 IFAs are voluntary and non-binding BUT are applicable everywhere and are a
source of inspiration for collective bargaining .
 IFAs provides trade unions an opportunity to monitor Corporate
behaviour, the reality of work and labour relations on the shopfloor level.
 IFAs define procedures that are to be followed in resolving cases
of violations
 Establish regular mechanism for social dialogue at local, national
and global levels
 Trade unions can use IFAs to strengthen their organization and
enhance the voice of workers
 Tool for networking and promoting solidarity actions among
trade unions across borders
 Ensure a realization of Decent Work across the globe
Some Examples of International
Framework Agreements
 IFAs negotiated by GUFs increased from 5 Agreements in 2000 to more
than 112 Agreements in 2015
 The most recent IFAs (2009 – 2015):
 ThyssenKrupp, Total, Gemesa, Telefónica, AEON, Acconia, Inditex,
Salino-Impregilo, Dragados, Svenska Cellulosa, Codere, Loomis, Solvay,
Melia, Enel, Norske Skog, Metro, Telenor, Renault, Statoil, Lafarge,
Aker, Eurosport, OHL, Siemens, Saab, Ferrovial, Ford, MAN, Securitas,
Lukoil, FCC Construction, Sodexo, Umicore, Mizuno, Petrobras, ZF
Friedrichshafen, Mann + Hummel, GDF Suez, Norsk Hydro, Pfleiderer,
PSA Citroen, AB Electrolux, Telkom Indonisia, Antara, Malaysia
Berhad, Shoprite Checkers, Wilkhahn, AngloAshanti, Tel
Telecommunicaciones, Elanders, EDF, ENI.
 Companies from 13 different countries: Belgium, Brazil, France,
Germany, Indonesia, Italy, Japan, Norway, Russia, South Africa, Spain,
Sweden, USA.
 Direct employers of 4.8 million workers
Minimum Content of International
Framework Agreement

Reference to ILO core labour standards:

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Recognition of fundamental labour and human rights standards:
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FOA and CB (C.87 and C.98)
Forced labour (C.29 and C.105)
Child labour (C.138 and C.182)
Equality (C.100 and C.111)
Universal Declaration of Human Rights
UN Guiding Principles on Business and Human Rights
UN Global Compact
OECD Guidelines for Multinational Enterprises
ILO MNEs Declaration
ILO Tripartite Declarations (Philadelphia, FPRW, SJD)
Decent Work Agenda – IFAs contain clauses which promote the four pillars of the DWA:
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Employment promotion
Respect of rights at work and international labour standards
Social protection
Social dialogue: tripartism and bipartism

Cover all company operations worldwide without exception

Reference to suppliers and subcontractors

Guarantee a commitment from the company to treat trade unions positively and refrain from all anti-union activities
and to remain strictly neutral.

Union representatives should have a reasonable access to the workplace.
 Mechanisms for implementation, enforcement and a procedure for binding dispute resolution.
Implementation of International Framework
Agreements
 Joint implementation procedures should be included in IFAs
 Need for strong trade unions and cooperation among transnational union networks to:
 Disseminate signed IFAs
 Educate and raising awareness about the IFAs
 Integrate the IFAs into local operations and practices at the workplace
 Ensure that MNEs are able to control their subcontractors, subsidiaries and suppliers in
supply chains on their obligation to active compliance with the IFAs.
 Trade unions need to revamp their capacities to fully utilize all available international
mechanisms to tame corporate power:
 Sending comments on the:


Application of ratified conventions (Art. 22 of the ILO Constitution) and
Effects given to non-ratified conventions and recommendations (Art. 19 of the ILO
Constitution)
 Submit representation (Art. 24 of the ILO Constitution)
 File complaints to the CFA
 Follow-up on the comments and recommendations of the ILO supervisory bodies.
 Trade unions to set-up international, continental, sub-regional and local trade union
networks and IT communication systems to facilitate workers’ solidarity actions across
borders.
Monitoring of International Framework
Agreements
Why monitor?
 To determined how MNEs are delivering on their
commitment to respect the tenets of the agreements they
have signed.
Note:
 It is highly unlikely that a company will police itself
effectively:
 Thus, monitoring MUST be the responsibility of:
 Labour inspectors to ensure compliance and enforcement
 Trade unions at local, sectorial, national and global levels.

The aim is to assess corporate behaviour and the reality of working
conditions and labour relations at the shop-floor.
 Shop stewards should be empowered to monitor the
implementation of IFAs
Conclusions
 IFAs are means for securing global workers’ rights.
 The main objectives of IFAs are to:
 Open space for organizing workers in MNEs and their subsidiaries –
unions can frame their organizing campaigns and solidarity actions
around IFAs;
 Protect labour rights, labour relations and improve working
conditions;
 Create space for dialogue where perhaps none existed before.
 The role the GUFs and their affiliates is vital to achieving
these objectives and likewise joint labour and management
effort.
 Organize, Organize and Organize to build workers’ power
Discussion Questions
1. Were you aware of the existence of
IFAs before?
2. Do you know whether your trade
union made use of IFAs in recent
years?
3. If not, how could you make use of
IFAs in your day-to-day work?