Fair Supply Chains - Roles and opportunities of trade unions. Workshop discussion paper. 1. Introduction

Transcription

1 Fair Supply Chains - Roles and opportunities of trade unions Workshop discussion paper This discussion paper is meant to serve as a guide for reflexion and discussion during the workshop Supply Chain Responsibility, which will be part of the consultation between CNV Internationaal and it s partner organisations from of November Introduction The process of economic globalisation has been driven by the increased liberalization of international trade and foreign direct investment, and by freer capital flows. The liberalisation programmes, together with a system of bilateral and regional trade agreements, have stimulated the further integration of world trade. The process manifests itself mainly through the intensification of international trade in goods and services, increasing capital flows (Foreign Direct Investment (FDI) and short-term flows) and mobility of people. It is characterised by an increasing role of multinational enterprises (MNEs) and the globalisation of value chains; the reorganisation of production networks on an international scale and the internationalisation of business processes and dialogue. Apart from the economic process, other processes (or global public goods ), like climate change, terrorism and health epidemics, show the world has become more interrelated and interdependent. For example, the products in our supermarkets and our clothes have multiple links with workers elsewhere in the so called value chain. Companies from the north are active in the south. The increased interdependence of the world that comes with globalisation brings opportunities, as well as severe challenges in the area of planet, people and profit. Trade unions need renewed thinking, as well as new policies and activities, in order to cope with this interconnectivity. CNV Internationaal will take up this challenge by supporting its partner organisations to improve working conditions in the value chain and focuses on the social (people) aspects of international corporate social responsibility (CSR)1. There are several international conventions and guidelines dealing with CSR. Some of them are recognized by almost every state and by businesses f.e. the Universal Declaration of Human Rights and the ILO Conventions. Besides this there are separate guidelines such as the ILO Tripartite Declaration on Multinational Enterprises, the OECD Guidelines for multinational enterprises and since 2011 the UN Protect, Respect and Remedy Framework also called the Guiding Principles of John Ruggie (Ruggie Principles)i. What makes it complex is a.) the fact that most guidelines are not legally binding and b.) the fact that conventions are agreed upon between states which gives room to manoeuvre for international businesses to behave in non responsible ways. Besides this governments within the multilateral organisations like the UN and the 1 Policy note Fair Globalization CNV Internationaal 2011 Partner Consultation 2012 Workshop discussion paper Fair Supply Chains - November 22,

2 WTO try to come to agreements on liberalisation and to set rules, to come to a level playing field where shared rights and values are respected. But in these systems power is divided unequally and not enough success has been reached on the improvement of the social dimension. In the meantime regional blocks try to make their own trade agreements and association agreements in the absence of a well functioning global system. Finally the increasing role of MNE s, private sector interests dominate more and more. Strengthening processes of social dialogue and independent confederations and federations is important to give a voice to workers in value chains and to defend their interest. 2. Fair Supply Chains what does this mean for us? Ideally trade relations between the Netherlands and developing countries (encouraged by the Dutch government) offer a stimulus for sustainable economic growth, extension of decent work opportunities, poverty reduction, development of policies for a minimum living wage and social security. It is true that investments stimulate economic growth and the creation of new job opportunities in developing countries: being in or out of poverty, is about having or not having a job. Escaping poverty is however also highly related to how decent these jobs are. For the vast majority of workers around the world, globalization has not met their simple aspiration for decent jobs, livelihoods and a better future for their children. Moreover, existing jobs are becoming more insecure as more and more companies opt for flexible contracts and outsourcing. CNV Internationaal and its partner organisations recognise this and therefore aim to connect the agendas of the partner organisations to the agenda of CNV in order to protect and advocate for workers rights in matters related to trade and investment relations between the Netherlands and developing countries, specifically in the development of sustainability in the supply chain. It is desired to increase the number of companies working along the lines of CSR throughout their chains in relation to the Decent Work Agenda. With respect to CSR one of the main goals for trade unions (in the Netherlands as well as in developing countries) is to increase attention and for the social aspects of CSR. 2.1 Stimulating International Corporate Social Responsibility Trade unions have a unique position as they are - on the one hand closely linked to businesses and on the other hand are part of civil society. This unique position has been recently backed by the content of the UN Guiding Principles on Business and Human Rights ''Protect, Respect and Remedy Framework'' as adopted by the UN Human Rights Council and the OECD Guidelines. The proposed programme aims to increase knowledge within CNV federations about the content and application of these guiding principles with respect to Dutch companies active in developing countries. Furthermore, in the proposed programme CNV Internationaal and the CNV federations will continue their cooperation/participation in different initiatives such as MVO Platform, VBDO, Dutch Coal Dialogue, Fair Food and in the Fair Wear Foundation (FWF). 2.2 International awareness & Supply chain initiatives There are several entrances which CNV Internationaal should use to start the dialogue on social responsibility of Dutch companies f.e. CNV is a board member of important investment companies such as pension funds. CNV Federations contribute to global citizenship as they create awareness among the CNV members and within companies about labour conditions elsewhere in the companies chain. Partner Consultation 2012 Workshop discussion paper Fair Supply Chains - November 22,

3 Partner organisations can investigate and reveal poor labour conditions in specific companies and plants. Within the approves 4 year programme the focus of the supply chain initiatives will be on the textile, metal, wood and coffee & cacao sectors. The capacities of the partner organisations will be strengthened to investigate and monitor at enterprise level the human and labour rights in these 4 sectors. Furthermore, partner organisations will be stimulated to develop alert systems for violation of labour rights at company level. The information from research and partner organisations will be used in different ways to raise awareness: to inform and influence members of CNV Federations in the Netherlands; to inform and influence consumers in general in the Netherlands; to raise awareness among Dutch employees about the working conditions of their colleagues in developing countries; to inform and influence consumers locally in countries where the violations occur. to raise awareness on social aspects of CSR among Dutch entrepreneurs, for example through the so called Business portal in cooperation other Dutch NGO's, employers organisations and government. The portal will provide the possibility for entrepreneurs interested in investing in developing countries to contact CNV Internationaal and its partner organisations. 3. Lessons learned: knowledge and experiences on Fair Supply Chains In 2011 a policy note on Fair Globalisation was developed and distributed among the partner organisations. In , different outputs and results were achieved in this area. To mention a few: Fair Wear Wage Ladder Tool development in Macedonia, several activities have taken place in a strategic alliance with the NGO Fair Food in South Africa, Costa Rica, Colombia, Indonesia, Ghana and now starting in Honduras. As a result of these activities, for example in South Africa, the partner organisation is actively participating in the implementation of a fruit Certification System, whereby the labour rights of the workers on the plantations are being fully respected. In order to create CSR awareness among CNV negotiators CNV Internationaal developed a Ruggie Principles leaflet. CNV Internationaal also joins Dutch CSR networks and is involved in the development of the joint (NGO, government and TU) international CSR ''Business Portal''. Finally research has been done by SOMO in the following sectors: wood, textile, cacao and coffee. One of the Lesson Learned, is the importance of good assessments/research capacity and the strong need for Evidence Based Policy Influencing. As written in our new proposal: In order to be able to develop sound lobby and advocacy strategies and campaigns to pressure companies, it is necessary to have reliable and up-to-date information on Decent Work in the selected supply chains. This information will be delivered by conducting research on this subject. In addition to this, CNV Internationaal will build the capacities of its partner organisations to enable them to monitor the respect for human rights in the selected chains. Information collected through these monitoring activities will be used for (international) lobby and awareness raising campaigns. Also the need to form strategic alliances with other stakeholders is crucial to a successful contribution to sustainable supply chains. Partner Consultation 2012 Workshop discussion paper Fair Supply Chains - November 22,

4 3.1 Outputs: to improve the rights of workers in the international supply chains In the newly approved 4 year programme, CNV has set the following targets/outputs to improve the rights of workers in the international supply chains: Research is conducted on Decent Work in the supply chains in at least 4 programme countries (Joint) awareness-raising campaigns raised awareness at company and investors levels (both at the management level as well as on the workfloor) in the Netherlands and programme countries of neglect of human and labour dimensions in supply chains (for example cooperation with VBDO, IDH, MVO platform); Complaints filed on violations of OECD guidelines are formulated and international action is taken International lobby campaigns and/or actions to pressure companies to respect OECD guidelines Lobby campaign to promote participation of partner organisations in programmes of trade missions and to include CNV Internationaal in the preparation of the trade missions raise awareness among CNV federations staff of neglect of human and labour dimensions in supply chains. Information campaign targeted at CNV federations about the OECD guidelines (follow-up to actions taken in 2012) Awareness-raising campaign targeted at workers and consumers about working conditions in developing countries Publicity campaign on Decent Working conditions in the supply chain Technical assistance provided on the development of lobby strategies targeted at companies Provision of technical support for the establishment of strategic alliances at the national level Provision of colleague-to-colleague training on the principles of CSR and OECD guidelines 3.1 Expected Outcomes National and international companies that operate in the (international) supply chains of wood, textile, cocoa and coffee show increased respect for labour rights of workers and human rights of local communities. Based on the principle of supply chain responsibility which is included in authoritative international guidelines such as the UN Guiding Principles for Business and Human Rights and the OECD guidelines for multinational enterprises Dutch companies can be called to account on these malpractices and induced to take steps to mitigate the situation. Aware CNV members and negotiators are in direct contact with the management of Dutch companies and are therefore well-positioned to address CSR issues. When CNV members and the broader public are aware of the conditions under which many workers in developing countries have to work and how they can make a difference, they will become (more) willing to support public campaigns on CSR and labour rights. Partner Consultation 2012 Workshop discussion paper Fair Supply Chains - November 22,

5 4. Questions for reflexion and discussion 1. This theme fair supply chains might be somewhat new or even innovative in a way to some of you as our partner organisations. Please describe if and how you see your organisation participate in making supply chains more just and fair? 2. What are the chances of success? What are the risks? 3. Would you like to add intervention suggestions? Based perhaps on best practices? 4. What kind of knowledge and means would be recommended in order to be successful? What are your expectations of the role of CNV Internationaal and or others? 5. Wrap up & Conclusions i See also Towards fair supply chains - The Ruggie Principles on Business and Human Rights A practical guide, CNV Internationaal 2012 Partner Consultation 2012 Workshop discussion paper Fair Supply Chains - November 22,