From forty to fifty years of international Trade Union Co-Financing
Thanks to Johan for the invitation to draw on the rich history of 40 years of Trade Union Co-Financing (VMP),
and to illustrate what this has enabled trade unions and Mondiaal FNV to achieve. I would like to continue on
from your hypothesis: “Strong economic institutions, working swiftly and reliably, contribute to an
entrepreneurial climate in which the private sector is able to fully operate and grow. A growing private sector
creates employment and this contributes to poverty reduction in low and middle-income countries.”
Economic growth does not lead automatically to poverty reduction. Trade unions have realised this for quite
some time now and have for years experienced it in the day-to-day practice of bargaining for better collective
agreements. The OECD has now come to the same conclusion: inequality does not automatically decrease at a
time of economic growth and a high level of inequality is even damaging to the economy. In her recent Letter
to Parliament, Minister Ploumen referred to the findings of the OECD; away with the trickle down theory! The
IMF even goes so far as to use the term trickle up.
Powerful unions and economic growth
It pays to invest in the poorest groups, and wages are not only a cost factor. Higher wages give more
purchasing power and this stimulates the economy, just as having social security. In a recent study, the
researchers even dared to establish a causal link not only between powerful trade unions and higher wages but
also between powerful trade unions and economic growth. This reasoning can even be turned around: namely
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that where there are less powerful trade unions, there is lower economic growth.
Workers all over the world have organised themselves in trade unions to demand decent work and good
working conditions, preferably by way of social dialogue and by entering into collective agreements. The
Decent Work Agenda, with its Core Labour Standards at the basis, is the guiding principle. These international
ILO standards are ’pre-competitive’ as they are among the globally recognised human rights; the right to
organise and bargain collectively and the right to protection from child labour, forced labour and
discrimination.
Democracy
In many countries, the trade union is the only tool to achieve emancipation and build self-esteem. Trade unions
give a voice to working men and women who are crying out for democracy and human rights. Examples from
FNV history are: solidarity against the dictatorship in Chili; the call for the boycott of apartheid in South Africa;
the support for the Brazilian union leader Lula and the Polish electrician Lech Walesa and his Solidarnosc.
Successes thanks to the VMP
Every bit as important are the changes that came about owing to the VMP: the FNV was of help in a number of
different ways. For example, women in India were supported in setting up their own union, SEWA, now the
largest women’s union in the world. Support was given to trade unions and labour NGOs fighting against child
labour and successfully getting children out of the work environment and into school. Major sports brands
were challenged on their ‘fair play’ in clothing production. Recently, a number of these sports brands wrote a
letter to the government of Mexico urging union freedom*. Transport unions were able to give thousands of
lorry drivers in transport corridors from Asia to Africa advice and information on, and testing for HIV/Aids. FNV
undertook initiatives aimed at fair trade, and wrote letters for (and to) imprisoned union leaders to above all
not lose hope.
Framework Agreements
At the end of the eighties, the first International Framework Agreement (IFA) was concluded and more
followed over the years. Internationally organised unions and globally operating companies were at the
negotiating table and concluded universally applicable agreements on ILO standards, often supplemented by
rules on working hours, remuneration and labour contracts The agreements made were and still are monitored
by global networks of colleagues organised in trade unions, for example at Danone, Philips, IKEA, Chiquita and
Unilever.
Working on social dialogue together with employers’ organisations
The fact that employees and employers are able to enter into agreements by way of dialogue is not as yet a
matter of course in many places in the world. For this reason, FNV joins with central employers’ organisations
to get social dialogue going. For example in Peru, in Indonesia and in East Africa (in a project to be jointly
initiated with the Dutch Employers Cooperation Programme). In the strategic partnership with FWF and the
Ministry, FNV and CNV are digging into the entire textile garment chain, because we are together convinced
that better working conditions for the people who work on our T shirts and jeans are only possible if things
change not only in individual companies and the sector but also in the global production chain.
Favourable business environment and Decent Work
The basis each time again is entering into social dialogue and having an environment in which this is possible.
This includes strong independent and democratic unions just as much as employers’ organisations with the
same principles. Both social partners contribute the same goal: a favourable business environment and Decent
Work, each from its own specific perspective and recognising our diverse rank-and-file. Because successful
social discussion stands or falls with the capacity, the representativeness and the legitimacy of the social
partners.
You will soon be able to read about our successes in the book ‘40 jaar internationale vakbondssolidariteit’ ("40
years of international trade union solidarity"), which is soon to be published and the first copy of which
Minister Ploumen is to receive on 31 October.
And our wish? It is Mondiaal FNV’s desire that in ten years’ time trade union rights and social dialogue are
respected and practised worldwide thanks to and by strong Economic institutions.
*http://www.industriall-union.org/apparel-brands-urge-mexico-to-comply-with-ilo-recommendations
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Working for the economy. The economic case for trade unions. University of Greenwich and NEF, 2015