Paragraphs 41-47 of the Declaration
(1) Are there limitations on the ability of workers in MNEs to exercise fully the right to freedom of association or have there been cases in which MNEs have not observed, or have been alleged not to have observed, the principles of freedom of association? What remedial procedures are available to those concerned?
(2) Have there been any new initiatives to attract foreign direct investment (FDI) and if so, does the provision thereof -- in particular the incentives offered -- limit in any way freedom of association and the right to organize and bargain collectively?
(3) What efforts have been made by the government and national and multinational enterprises as well as workers' organizations to develop and improve industrial relations policies and practices and to bring them into conformity with the principles of the Declaration?
Antigua and Barbuda, Argentina, Australia, Bahamas, Bangladesh, Barbados, Belgium, Brazil, Cambodia, Canada, Chad, Chile, Colombia, Costa Rica, Czech Republic, Dominica, Ecuador, Egypt, Estonia, Ethiopia, Finland, Gabon, Germany, Greece, Grenada, Hungary, India, Indonesia, Ireland, Italy, Japan, Jordan, Republic of Korea, Kuwait, Luxembourg, Malaysia, Mauritania, Mauritius, Mexico, Namibia, Netherlands, New Zealand, Nicaragua, Nigeria, Norway, Pakistan, Poland, Portugal, Romania, St. Vincent and the Grenadines, Singapore, Slovakia, Spain, Sri Lanka, Swaziland, Sweden, Switzerland, Syrian Arab Republic, Thailand, Trinidad and Tobago, Tunisia, Turkey, United Kingdom, United States, Uruguay, Venezuela, Zambia, Zimbabwe.
The Government points out that workers in MNEs in Antigua and Barbuda are free to exercise their rights, which are in no way restricted by investment-promotion initiatives. Industrial relations policies and practices are governed by the Labour Code.
The Government of Argentina states that the information contained in its reply to the fifth survey is still applicable.
In principle, there are no limitations on the ability of workers in MNEs in Australia to exercise the right to freedom of association, reports the Government. A 1990 survey found that in enterprises with 20 or more workers, 49 per cent and 52 per cent were unionized in MNEs and other enterprises respectively. Unions face no problems in being recognized for the purpose of collective bargaining. Federal and state legislation protects the rights of unions and sets the framework for industrial relations policies and practices for all enterprises. The Commonwealth Industrial Relations Act 1988 prohibits anti-union discrimination. It provides for the settlement of labour disputes through compulsory conciliation and arbitration, voluntary registration of employers' and workers' organizations, and the use of the Industrial Awards System. However, in practice there are MNEs which attempt to marginalize unions, particularly as regards collective bargaining. The Government gives examples of two subsidiaries of a multinational in the aluminium industry (names given) which the Australian Industrial Relations Commission (AIRC) found to be discriminating against union members and attempting to marginalize the unions. Workers covered by industrial awards were offered individual contracts of employment, and those who chose to be represented by a union were discriminated against in terms of remuneration and conditions of employment. In the first case, the AIRC decided to grant a new interim pay rates award which effectively blocked the individual contracts, while in the second, it issued an interim order requiring the company to extend the same terms and conditions to employees covered by industrial awards, provided that either individually or through the union, they agreed to work in accordance with staff contracts. The parties were also called upon to seek a long-term solution to the problem. Those decisions affirmed that individual job contracts could not be used to erode the legitimate role of either trade unions or the AIRC. Initiatives for attracting FDI (e.g. Regional Headquarters Campaign) in no way limit workers' rights. All enterprises are legally obliged to adhere to the same standards of industrial relations, regardless of their origin. Recent reforms aimed at making the industrial relations system more flexible and promoting collective bargaining at enterprise level also guarantee minimum entitlements for all workers. At the February 1995 Forum for the Comprehensive Development of Indo-China, organized by the Economic and Social Commission for Asia and the Pacific, it was agreed that an advisory group would be set up to take into account the views of the business community on economic and social development and to promote the involvement of the private sector in this process. Australia, through its participation in the Advisory Group, will ensure that the principles of the Tripartite Declaration become widely known in the region.
According to the Government, there are no limits on the exercise of workers' rights in MNEs in the Bahamas. None of the incentives offered to attract FDI restrict workers' rights. Chapter 295 of the Fair Labour Standards Act is being amended and advice is being obtained from the Joint Tripartite Advisory Committee for Labour, trade unions and employers' organizations. The amendments are intended to improve industrial relations policies and practices and to bring them into conformity with the principles of the Tripartite Declaration.
The Government of Bangladesh reports that laws enacted in line with Conventions Nos. 87 and 98 fully guarantee the right to freedom of association which is applicable to all enterprises. Denial of such rights by employers is punishable under the Industrial Relations Ordinance, 1969. Incentives such as tax-holidays, credit and fiscal concessions and repatriation of profits are guaranteed by the Government, but there is no legal exemption with respect to freedom of association and the right to bargain collectively. Improvements to industrial relations are discussed at the plant level between labour and management and at the national Tripartite Consultation Committee meetings in which representatives of workers in MNEs also take part. Workers in MNEs are free to hold consultations and exchange views among themselves. The Bangladesh Employers' Association concurs with the Government.
The Government of Barbados states that according to the national Constitution every worker has the right to join a trade union of his or her own choice, and has recourse to the law if this is denied. There is no legislation compelling employers to recognize a union. However, the voluntary system of industrial relations operates effectively in the country, and if a dispute arises in this respect unions can refer the matter for settlement by means of conciliation. During this process a survey of trade union membership within the organization will be conducted. New initiatives, in the form of expanded Double Taxation Bilateral Investment Treaties, have been implemented to attract FDI. Moreover, the incentives offered in no way limit freedom of association and the right to organize and bargain collectively. A tripartite body has been set up to implement a Prices and Incomes Policy, which is a vital component of the country's macroeconomic programme for achieving economic growth and development through increased competitiveness. There has been some degree of success in creating the appropriate environment for enhancing social dialogue, improving the industrial relations climate, and creating better job opportunities. The Barbados Employers' Confederation replies in the negative to the first two questions. With regard to industrial relations policy and practices, national law and practice enable the parties to act in accordance with the principles of the Declaration. The Barbados Workers' Union is of the view that there are covert restrictions to the right to exercise freedom of association. Initiatives for attracting FDI in no way limit workers' rights.
The Government states that the same rules apply to all enterprises in Belgium, regardless of their origin. Workers' and employers' organizations are covered by regional, provincial or local policies for attracting investment within the framework of regional employment policies and economic restructuring plans. Job creation is a major preoccupation, followed by environmental protection. Investment guides are published and investors normally meet with the relevant institutions and authorities.
The Government of Brazil states that freedom of association, the right to organize and the right to strike are guaranteed under the federal Constitution. Candidates for office in unions cannot be dismissed and neither can elected union officials, up to one year after the end of their mandate. The federal Constitution also recognizes the importance of collective bargaining, collective agreements and labour-management consultations on matters of mutual concern. Article 11 provides for the election of a workers' representative in enterprises with more than 200 employees. The Compendium of Labour Laws (Consolidação das Leis do Trabalho) protects workers involved in trade union activities against any form of discrimination and sanctions are imposed on enterprises that are found to restrict the exercise of trade union rights. Complaints about problems in this regard can be submitted to the labour inspection services and other competent legal authorities. There are no known cases of MNEs having violated the aforementioned principles and there are no investment-promotion incentives that limit workers' rights. Certain developments in the field of industrial relations are worth mentioning. For example, labour-related matters are among the subjects discussed in the tripartite Sectoral Chambers. In 1993 the Ministry of Labour with the ILO's support held a Forum on Collective Agreements which enabled foreign experts and representatives of diverse social groups in the country to discuss different experiences in this domain, and examine aspects of industrial relations systems of other countries and their relevance for Brazil. On 28 July 1995 the federal Government submitted to Congress for consideration Provisional Measure No. 1.079, which proposes free collective bargaining for determining wages and other terms and conditions of employment within the framework of economic stabilization policies. Labour questions are also dealt with in round tables and labour-management negotiations organized frequently by the Regional Labour Delegations, which are entities set up by the Ministry of Labour. The Single Central Organization of Workers (CUT) reports that there are frequent incidents of anti-union practices by MNEs in Brazil. ILO Convention No. 87 is not applied and workers are dismissed for having formed or joined unions. The CUT notes that efforts to modernize the industrial relations system have been initiated and that the discussions are highly contentious.
The Government of Cambodia states that in accordance with Conventions Nos. 87 and 98, workers in MNEs are not restricted from exercising their right to freedom of association. The Labour Code under consideration is in line with the requirements laid down in these Conventions. There have been no efforts to attract FDI. Steps are being taken to develop industrial relations policies and practices in conformity with the Declaration.
The Government of Canada points out that its reply to the last survey is still applicable. It reiterates that the labour legislation makes no distinction between national and multinational enterprises, and the latter are expected to observe the national standards of industrial relations. There are no limitations on the exercise of workers' rights in MNEs. Since the last survey, a review of the rules relating to the entry of temporary foreign workers was initiated with a view to bringing them into line with provisions concerning labour mobility in the North American Free Trade Agreement and the final Act of the Uruguay Round. The Government of the Province of Quebec states that its reply to the last survey is still applicable.
The Government states that workers in all enterprises in Chad can fully exercise their right to organize, which is guaranteed by law. Government has taken no measure that in any way restricts this freedom. It has been decided that in future, biennial consultations will be held with workers' and employers' organizations as well as MNEs, with a view to giving effect to the Tripartite Declaration.
The Government reports that freedom of association and the right to organize are guaranteed under the Constitution of Chile and the Labour Code. MNEs must respect these standards. Organizations representing workers in MNEs have the right to affiliate to, or withdraw from, locally based federations, confederations and central workers' organizations as well as international workers' organizations. Investment-promotion incentives in no way limit the exercise of workers' rights. The Government is considering proposals to reform the law as regards privileges to workers involved in establishing a union and to increase the compensation to be given to those who are victims of dismissal or anti-union practices during collective bargaining.
The Government states that all workers in Colombia are free to exercise their rights. Amidst policies to facilitate the internationalization of the economy and to liberalize foreign investment, the general climate for investment has improved considerably. A Social Pact on Productivity, Prices and Salaries (Pacto Social de Productividad, Precios y Salarios) has been concluded with the aim of bringing about a significant increase in productivity with a corresponding rise in wages and the control of inflation. The National Association of Manufacturers notes that Colombia has ratified Conventions Nos. 87 and 98 and that the provisions of these instruments are reflected in the national Constitution and other legislation (e.g. Act 50 of 1990). Sanctions are imposed on all employers who fail to respect the principle of freedom of association. Incentives for promoting inward investment in no way restrict freedom of association and collective bargaining. The Government has put into effect a policy of tripartite consultation and created a Tripartite Consultative Committee for the Development of the Trade Union Movement (Comisión Tripartita de Concertación para el Desarrollo del Movimiento Sindical) in which Government, employers' organizations and workers' organizations each have three members. The aim is to strengthen labour-management relations with a view to improving the quality of working life, as well as productivity, competitiveness, employment and wages. The Committee has signed agreements for the training of trade union leaders and employers' representatives in a bid to build a true culture of social dialogue. The General Confederation of Democratic Workers states that while, by law, workers in MNEs in Colombia have the right to organize, national as well as multinational enterprises use subtle means to hinder the exercise of that right. The Ministry of Labour does not have adequate mechanisms for preventing such conduct, and as a result, workers who attempt to form unions run the risk of losing their jobs. Where multinationals do not feel obliged to accept the presence of unions, the holding of meetings is not possible.
There are no restrictions on the exercise of workers' rights, states the Government of Costa Rica. Workers' organizations have brought complaints against MNEs for having allegedly promoted the setting up of "solidarist associations" and "permanent workers' committees" to the detriment of trade unions. The Government has decided that the worker's choice should be respected and that the decision as regards affiliation to a given organization should be left to the individual. There are new initiatives for promoting investment but they do not limit trade union rights. Efforts to develop and improve industrial relations policies and practices are geared to enhancing social dialogue, conciliation and consultation as different means for resolving disputes.
Freedom of association and the right to organize are guaranteed under the national Constitution and the Law on the Association of Citizens, reports the Government of the Czech Republic. The Labour Code and Law No. 2/1991 guarantee the right to bargain collectively. The rights of union representatives and the facilities to which they must have access for carrying out their activities are stipulated in the relevant laws and regulations. Employees whose rights have been violated have recourse to the courts. Conventions Nos. 87 and 98 were ratified during the period under review, and reports as regards their application were submitted to the ILO. The authorities are not aware of cases of violation of freedom of association or denial of the right to organize and bargain collectively by MNEs. Trade unions in MNEs are generally members of industrial trade unions, which are members of international trade union confederations. Similarly, MNEs are members of national employers' organizations which belong to the Confederation of Industry and Transport of the Czech Republic. This body is associated with the IOE. Other employers' organizations to which they belong are: the Union of Employers' Confederations, the Confederation of Entrepreneurs in Construction and the Association of Entrepreneurs in the Czech Republic. There are no restrictions on cooperation between employers' and workers' organizations and the relevant external organizations. The Czech and Moravian Chamber of Trade Unions (MK OS) states that there are many problems in exercising the right to form and join trade unions. While MNEs from Western Europe generally recognize trade unions, this is not the case with certain companies originating from certain non-European OECD countries. There are subtle anti-union practices which are being influenced by views expressed by government officials and certain employers' federations. Some of the methods being used to achieve this are: the influencing of employees and trade union leaders by offering attractive wages; rejection of collective agreements; and the establishment of independent trade unions and employees' councils outside the framework of existing trade union structures. In response, the MK OS set up the Centre for Trade Union Rights in 1994, to promote the observance of trade union rights as an inseparable part of respect for human rights. There are no special concessions given to MNEs that would erode workers' rights. As regards the improvement of industrial relations policies and practices, there is evidence of employers' organizations and their advisory institutions promoting modern management principles, which include aspects of the principle of "social partnership".
Workers in all enterprises are free to associate with organizations of their own choosing, reports the Dominica Employers' Federation. None the less, complaints of anti-union practices by certain MNEs have been made to the competent government authorities and the Association of Employers. In every instance the MNEs were advised to cease those practices. There are no investment-promotion initiatives that limit workers' rights. These rights are guaranteed under the national Constitution. Bipartite and tripartite consultations have helped to "thaw many icy situations".
The Government of Ecuador reiterates that since there is no distinction between national and foreign enterprises, they must all apply the national laws. Labour relations are governed by the Labour Code and the same sanctions are applied to those who violate its provisions. The Labour Code provides for the following: workers in all enterprises have the right to exercise freedom of association; all workers' organizations are guaranteed the protection of the State; and the law prohibits employers from dismissing workers from the time that they notify the labour inspector that they are meeting to form any type of workers' organization. All employers' and workers' organizations have the right, under the Labour Code, either to affiliate to or withdraw from international workers' and employers' organizations. Organizations representing workers as well as employers in MNEs are usually affiliated to local workers' and employers' organizations. For example, the works council of a major food and drink MNE (name given) is a member of the Ecuadorian Confederation of Free Trade Unions. The Labour Code requires that employers give workers time off to carry out union activities once the necessary advance notice has been given, and prohibits them from interfering in trade union activities. The Government notes that this is reflected in the collective agreement signed by the aforementioned food and drink MNE. There are no known cases of employers' or workers' representatives being prevented from entering the country for the purpose of consultation on matters of mutual concern, as long as the immigration laws and requirements are duly respected.
Information provided through the Federation of Egyptian Industries shows that enterprises in the pharmaceutical industry and metal trades (named) do not limit workers' rights to exercise freedom of association. Initiatives to attract FDI do not impinge on freedom of association and collective bargaining. Efforts by certain pharmaceutical companies to improve industrial relations encompass the holding of regular meetings and responding to workers' demands in accordance with legal requirements. One company (named) has been acknowledged for its successful implementation of a project for enhancing industrial relations. Not all enterprises in the metal trades have workers' organizations. However, some do have enterprise committees in which workers can express their views and submit proposals for discussion. Workers may also submit grievances to be considered by management.
The Government of Estonia indicates that the Association of Estonian Trade Unions has not received official complaints of restrictions on the right to freedom of association. There has been no initiative to promote workers' participation in trade unions and certain MNEs are known to consider weak unions an advantage to enterprise development. Estonia has ratified Conventions Nos. 87 and 98. Freedom to organize is guaranteed by the Constitution and there are no known impediments to the exercise of this right.
The Ethiopian Government confirms that Labour Proclamation No. 42/1993 guarantees workers and employers "... the right to establish and form trade unions or employers' associations respectively, and actively participate therein". This covers workers in all enterprises, including MNEs.
The Government of Finland states that freedom of association is guaranteed by the national Constitution. More detailed provisions on its implementation are set out in the Associations' Act. Violation of workers' rights is considered a criminal offence under the Penal Code. The authorities do not know of any particular problems concerning MNEs in this respect. Finland is now in the process of implementing the Council Directive on the establishment of a European Works Council which is in line with existing national legislation concerning cooperation within enterprises. The Confederation of Finnish Industry and Employers and the Employers' Confederation of Service Industries indicate that workers in MNEs, like those in national enterprises, enjoy the right to form and join trade unions. The Government's initiatives to attract foreign investment do not affect freedom of association in any way. The Central Organisation of Finnish Trade Unions (SAK), the Finnish Confederation of Salaried Employees (STTK) and the Confederation of Unions for Academic Professionals in Finland (AKAVA) point out that the exercise of freedom of association and that of other basic trade union rights are not restricted. However, some foreign enterprises in the information technology sector have a negative attitude towards trade unions. The subsidiaries of foreign enterprises which operate in Finland are usually medium-sized or large enterprises, and their employees are unionized. The system of workers' representation and collective bargaining functions well. MNEs are generally members of national employers' associations.
According to the Government of Gabon, workers in MNEs are free to exercise trade union rights, including the right to collective bargaining. Apart from seminars organized by trade unions and financed by international organizations, no particular efforts have been made to improve industrial relations policies in conformity with the principles contained in the Declaration. The Gabonese Confederation of Free Trade Unions acknowledges that the only limit to freedom of association and the right to organize was the requirement to have a single trade union. This has been abolished under the new Labour Code.
The report to the fourth survey is still applicable, states the Government of Germany. It reiterates that the law prohibits all restrictions on freedom of association and the right to bargain collectively. Workers affected by violations in this regard can take the matter to the labour courts. There is no state intervention in the collective bargaining process.
The Government of Greece notes that certain MNEs have impeded the setting up of trade unions or, in some cases, works councils, even though the legislation in force provides for the establishment and operation of such entities. Furthermore, there have been cases in which the labour contracts of trade unionists have been terminated (with certain justification) but the matter was not handled according to the procedures stipulated in the legislation which deals with the democratization of trade union movements and the protection of freedom of association. In all such cases, the local labour inspectorate invites the parties concerned to discuss the matter further and takes steps to resolve the problems. Several enterprises, including MNEs, apply Council Directive 94/45/EC of 22 September 1994 on the establishment of a European Works Council. This is done on a voluntary basis since Greece has not yet adopted legal measures for the implementation of this Directive.
According to the Government of Grenada there are no restrictions on the exercise of freedom of association and grievances can be submitted to the courts. There have been initiatives to attract FDI but none of the incentives limit in any way, freedom of association and the right to organize and bargain collectively. Grenada has ratified Convention No. 144. All the social partners are actively engaged in studying a draft Labour Code which has been prepared in collaboration with the ILO.
The Government indicates that apart from one or two cases, it is unaware of any widespread practice by MNEs to limit trade union activities in Hungary. There were reports of subtle attempts to dissuade workers from joining trade unions. Limitation on trade union activities was not among the incentives offered to attract foreign investors. There was one case where prospective investors withdrew from a deal upon learning about a strong union presence at the enterprise concerned (unnamed). Trade unions have sought to make contact with their counterparts at the local level as well as with those at the parent company. A group of MNEs opted not to join the employers' side of the Interest Coordinating Council but founded the Hungarian Association of International Companies which represents the collective interests of MNEs. Others have joined the Hungarian Employers' Organization. Certain MNEs have taken into account the opinions of workers' organizations on issues relating to wages and other employment-related matters. The competent authorities regularly consult with the Hungarian Association of International Companies even though a formal mechanism for such consultations has not yet been established.
The Government of India states that workers employed by national enter-prises and MNEs have the right to establish and join organizations of their own choice. Under the provisions regarding "unfair labour practice" in the Industrial Disputes Act, management and workers are protected against acts of interference in each other's legitimate affairs. The Government, in its 1991 industrial policy, increased the limit of foreign equity holding from 40 per cent to 51 per cent in "high-priority industries". The incentives given do not restrict workers' freedom of association and the right to organize and bargain collectively. Those employed by MNEs have the same rights as workers in national enterprises, and can have representative organizations of their own choice in accordance with national law and practice. The national legislation provides for workers in all enterprises to conclude agreements with their employers and for them to be given the necessary assistance for negotiating effective collective agreements.
The Government of Indonesia guarantees workers the right to organize in both national and multinational enterprises. In this respect, assistance and guidance are always given to the workers and officials of workers' organizations. Government's efforts to attract foreign investment have been through deregulation. This policy does not affect the exercise of freedom of association, the right to organize and collective bargaining. The Government carries out development and training programmes on industrial relations for workers, employers and the relevant government offices.
The Government reports that workers in MNEs in Ireland enjoy the same right to exercise freedom of association as those in local companies. This right is guaranteed under the national Constitution. The Unfair Dismissals Acts 1977-1993 protect workers against dismissal because of trade union activities. There is a Labour Relations Commission which draws up codes of practice on industrial relations in consultation with workers' and employers' organizations, and other interested parties. To date, three codes have been elaborated covering dispute settlement procedures (including in the essential services), the duties and responsibilities of workers' representatives and disciplinary procedures. Although not legally binding, these codes (copies annexed to the report) are expected to be widely observed and incorporated in collective agreements. They apply to MNEs, where appropriate.
According to the Government of Italy, workers in MNEs are not restricted from exercising their right to organize. National labour relations legislation as well as bipartite and tripartite agreements are complied with. The General Confederation of Industry states that there are no limitations on workers' rights to exercise freedom of association and to organize in MNEs in Italy. No new initiatives to attract FDI have been undertaken. Industrial relations practices comply with the national legislation, and with bipartite and tripartite agreements in force.
Workers in all enterprises in Japan, including MNEs, are free to join and form trade unions, reports the Government. The law prohibits employers from engaging in all forms of interference in the exercise of workers' rights. Workers whose rights have been violated can submit a complaint to the Labour Relations Commission. Initiatives for attracting FDI cannot limit the exercise of freedom of association, the right to organize and collective bargaining. The Japan Federation of Employers' Associations (NIKKEIREN) refers to the Guidelines for Overseas Direct Investment (Kaigai Tshi Kd Shishin), according to which Japanese MNEs should improve their understanding of local trade unions and labour relations practices. They are urged to promote better labour-management relations through the exchange of information and points of view. The Japanese Trade Union Confederation reports that workers in a Japanese MNE (unnamed) operating in an Asian country (named) made four futile attempts in 1995 to obtain union recognition. In its view, the "very strong" anti-union stance of the local authorities was largely responsible for the inability of workers to vote on this question, and might have been "exploited" by the enterprise in order to prevent workers from organizing. It gives a second example of a Japanese MNE (unnamed) in another Asian country (named) in which union officials, at the end of 1993, sought recognition from the Ministry of Labour for the purpose of collective bargaining. The Government's request for a list of workers in order to determine the representativeness of the union was not fulfilled by the management of the enterprise, but the president of the union was dismissed in March 1994. The matter was brought to the labour court, which, in May 1995, ordered that the worker be reintegrated with full payment of wages. While the company accepted to make the payments, it did not agree to the worker's return to the workplace. The matter was brought to the court again in October 1995 and since the list of workers was never submitted to the government authorities, the union is yet to be recognized as a bargaining agent.
The Government of Jordan states that the labour legislation provides for workers and employers to join trade unions and employers' organizations. Discrimination against unionized workers is prohibited. While the Government seeks to attract FDI, it has never done so by limiting workers' rights. Attempts are always made to improve and develop sound industrial relations practices, by encouraging social dialogue, collective bargaining and the conclusion of collective agreements. The Amman Chamber of Industry affirms that workers in MNEs in Jordan can exercise the right to freedom of association. There are concerted efforts to attract inward FDI and the Encouragement of Investment Law provides for, inter alia, national treatment for foreign investors, extensive fiscal advantages and the transfer of profits abroad in convertible currency. Relentless efforts are made by the parties concerned to improve the industrial relations climate throughout the country.
According to the Government, in the Republic of Korea, the same legislation applies to MNEs and national enterprises, and workers can fully exercise their right to freedom of association. If necessary, workers in MNEs have recourse to the Labour Relations Commission and other national legal procedures. There are no incentives to attract FDI that impose limitations on workers' rights. Under the 1980 Labour-Management Council Law, labour-management councils must be set up in enterprises. During the period under review preparations were made for the setting up of a Presidential Commission on industrial relations reform in 1996. The 30-member Commission will reform the laws, systems and practices as regards industrial relations. According to the Korea Employers' Federation, there are no limitations on the rights of workers in MNEs, and they enjoy the same guarantees as workers in local enterprises. There are no incentives for FDI that restrict workers' right to freedom of association. No special efforts have been made by MNEs to bring industrial relations policies and practices into conformity with the principles of the Declaration.
The Government of Kuwait states that workers and employers have the right to organize, in accordance with Convention No. 87 which Kuwait has ratified. Enterprises in the private and petroleum sectors allow organizations representing their workers to exercise their rights. These organizations receive both "moral and material" support from the Government. No new initiatives to attract FDI have been taken. MNEs have internal regulations governing industrial relations, and tend to offer better conditions of work. The Government has been known to advise and hold consultations with enterprises (one example named) for the drawing up of their internal regulations concerning employment policy and labour relations.
The Federation of Luxembourg Manufacturers indicates that MNEs are members of the local organizations representing the industries in which they operate. There are no limitations whatsoever on the exercise of freedom of association, and the right to organize and collective bargaining. The Confederation of Independent Trade Unions (Luxembourg) states that MNEs respect freedom of association and workers' right to organize.
According to the Government of Malaysia, incentives to attract FDI do not in any way prevent employees from exercising the right to freedom of association and the right to organize and bargain collectively. The Malaysian Trades Union Congress reports that workers employed by MNEs in the electronics industry are denied the right to form or join a national union. In order to attract FDI, restrictions have been imposed on the right of association of workers to only in-house unions in the electronics industry and the right to collective bargaining is restricted in "pioneer status" industries. Overall, collective bargaining is rendered meaningless, as the right to strike is restricted.
The General Confederation of Employers of Mauritania indicates that the rules on freedom of association apply to all workers in all enterprises. However, only national workers may be members of the board and management of a trade union. No measures have been adopted which restrict the right to freedom of association, the right to organize and collective bargaining. In keeping with the spirit of the Declaration, a social programme encompassing labour relations is at the disposal of the social partners and the Government. The Free Confederation of Workers of Mauritania (CLTM) is of the view that freedom of association and the right to organize are "almost restricted" and often infringed by MNEs and other social actors. Aggrieved persons can resort to the legally prescribed appeals procedure, i.e. complaints to the labour inspectorate. If an agreement cannot be reached, the dispute will be transferred to the arbitration committee with a copy of the minutes of the discussion which did not result in conciliation. The matter can end up at the labour court. Many initiatives are undertaken in order to attract foreign investment, and Government will often take measures that restrict freedom of association, the right to organize and collective bargaining. As an example of such restrictions, the CLTM mentions that MNEs and Government often exert pressures in order to influence the workers' choice of a shop steward. No efforts have been undertaken by either Government, enterprises or workers' organizations to draw up and improve industrial relations policies in keeping with the principles of the Declaration.
The Government of Mauritius confirms that the right to freedom of assembly and association and the right to organize are guaranteed by the Constitution and the Industrial Relations Act, and there are no limitations on the exercise thereof. Fiscal incentives in no way undermine the right to freedom of association and to organize and bargain collectively. The Government is committed to maintaining permanent social dialogue through the Labour Advisory Board and other fora. In this context a new legal framework for regulating industrial relations will be introduced.
The Government states that there are no known cases of MNEs in Mexico restricting the exercise of workers' rights and it reiterates that all employers must respect the Federal Labour Act which guarantees freedom of association for both workers and employers. The Foreign Investment Act in no way offers incentives that erode the right to organize and bargain collectively. Government, national and multinational enterprises and workers' representatives must work together to develop and improve industrial relations policies and practices, and there is the practice of drawing up agreements for attaining common objectives. The Mexican Confederation of Chambers of Industry knows of no situation in which workers in MNEs are restricted from exercising their right to freedom of association. In fact, the most significant trade union activities are in some MNEs. None of the incentives or concessions for promoting FDI constitute exemptions from obligations under the Federal Labour Act. Not only would such exemptions lead to unfair competition with local enterprises, they would also adversely affect workers. The national Constitution and labour legislation are consistent with the principles of the Tripartite Declaration. The Confederation of Mexican Workers agrees with the Government.
The Government reports that Namibia has ratified Convention No. 87 and that workers in MNEs are not restricted from associating with or joining organizations of their own choosing. Furthermore, no case of alleged violation of freedom of association has been reported. The establishment of the EPZ in Namibia is one of the Government's strategies for attracting FDI. Freedom of association and the right to organize and bargain collectively are in no way restricted in the EPZ. The Namibian Labour Act (No. 6, 1992) provides for the establishment of a Tripartite Labour Advisory Council in which all labour-related issues are discussed before they are tabled in Parliament. Through the Council, the Government aims at promoting tripartism and consultation, thereby improving industrial relations policies and practices in the country.
The Government of the Netherlands reports that the proposal concerning the protection of workers who are trade union members, included in a Bill that was being considered to revise the legislation relating to dismissal, is to be withdrawn. The First Chamber of Parliament is unwilling to accept several other elements of the Bill. A new Bill is being prepared for submission to Parliament and it will include provisions regarding the protection of trade union members. The Federation of Netherlands Industry and Employers agrees with the Government.
The Government states that New Zealand's May 1995 response to complaints submitted to the ILO's Committee on Freedom of Association by the New Zealand Council of Trade Unions, its response to the "Interim conclusions" of this Committee, and its reports submitted (under article 19 of the ILO's Constitution) on Conventions Nos. 87 and 98 for the period ending December 1992, contain information on the application of these standards in the country. It emphasizes that MNEs and domestic enterprises are subject to the national labour legislation and that investment-promotion incentives have no adverse effects on freedom of association and the right to organize and bargain collectively. There have been no major changes in the country's industrial relations policies and practices during the period under review, and specific information on the policies and practices of MNEs is not gathered. The New Zealand Employers' Federation supports the Government's statement. It adds that it has also produced and disseminated widely, a booklet outlining the rights and obligations of employers and workers, and publications providing specific information on employment-related matters, including human rights, privacy and sexual harassment.
Workers in MNEs in Nicaragua are in no way restricted from exercising their rights, states the Government. Investment-promotion incentives do not obstruct the exercise of freedom of association, the right to organize and collective bargaining. Employers in all enterprises, as well as workers' organizations and the Government, fully respect these principles.
The Government of Nigeria states that MNEs observe standards of industrial relations that are no less favourable than those applied by other employers. By law, workers in MNEs, as well as those employed by other organizations, are guaranteed the right to organize. In keeping with Convention No. 87, the law protects workers against acts of anti-union discrimination. MNEs support employers' organizations either by joining representative organizations in their respective industries or sectors, or by establishing their own associations. The Nigeria Employers' Consultative Association is the main organization to which most employers' organizations affiliate. These organizations are affiliated to the Pan African Employers' Federation. The workers' organizations are affiliated to the Organization of African Trade Union Unity. There have been no attempts to prevent representatives of employers' and workers' organizations of other countries from visiting their local counterparts, if such visits would be beneficial to the employers or workers concerned. There are special incentives offered by the Government to attract FDI. These include the provision of land, adequate physical infrastructure, as well as tax exemptions on a certain percentage of profits that are repatriated. These incentives do not in any way affect workers' rights. Representatives of workers in MNEs are not hindered from meeting for consultations. The Nigeria Labour Congress (NLC) reports that on the whole there are no limitations on the exercise of the right of freedom of association. A new initiative to attract FDI is the proposed EPZ in Calabar, Cross Rivers State of Nigeria. The NLC is of the view that "... as is usual with EPZs, the incentives being offered will certainly limit freedom of association and the right to organize and bargain collectively". Efforts to develop and improve industrial relations policies and practices have been limited to occasional tripartite deliberations on issues as they arise.
The Government of Norway states that its replies to previous surveys are still applicable. The legislation governing industrial relations is identical for national enterprises and MNEs and, as such, there are no limitations on the ability of workers in MNEs to exercise fully their right to freedom of association. All basic agreements concluded between workers' and employers' organizations recognize the right to freedom of association and the Government is not aware of any problems of non-observance by MNEs. Freedom of association is protected under paragraphs 55(3), 55A and 60 of the Act respecting Workers' Protection and the Working Environment (1977) which contains provisions regulating wage deductions and protecting the right to organize in connection with recruitment requirements. Workers are also protected against unfair dismissal because the conditions under which their employment may be terminated, are clearly specified. Dismissal will be considered unfair if it is based on an employee's political views, union membership, activities as a union representative or decision not to join a union. There can be recourse to legal action in cases of alleged violations of these provisions. The principles of Convention No. 87 are applied, and MNEs must act in accordance with them. National legislation is in conformity with the principles of the Declaration and there is ongoing consultation between the social partners to develop and improve existing regulations, and industrial relations policies and practices. The Confederation of Norwegian Business and Industry shares the views expressed by the Government.
According to the Government of Pakistan, the 1969 Industrial Relations Ordinance allows workers and employers in MNEs to exercise fully their right to freedom of association. Labour disputes are resolved through bilateral negotiations. If necessary, a conciliator is appointed. Workers' and employers' organizations in MNEs are permitted to affiliate with international federations and organizations of their own choosing. Special incentives offered to attract FDI in no way limit the exercise of workers' rights. In keeping with the principles of the Declaration, there are no restrictions on the entry of representatives of foreign workers' and employers' organizations who come at the invitation of the respective local or national organizations. The Employers' Federation of Pakistan reports that freedom of association is guaranteed under the Constitution and the Industrial Relations Ordinance. In cases of violations, workers can take the matter to Court, the National Industrial Relations Commission and the Supreme Court. In the EPZs, certain MNEs have been exempted from applying some of the provisions of the relevant labour laws. All other enterprises must obey the law on freedom of association or face legal action if they fail to do so. MNEs, particularly those from developed countries, tend to be more concerned about freedom of association and collective bargaining, partly because they follow policies laid down by the parent company. Tripartite efforts are being made to develop and improve industrial relations policies and practices, and bring them into line with the aims of the Declaration.
The Government notes that the right of workers and employers in Poland to organize and defend their interests is guaranteed by the Trade Union Act of 23 May 1991, the Act of 23 May 1991 on Employers' Organizations and the Act of 23 May 1991 concerning the Settlement of Collective Disputes. During the period under review, the Act of 29 September 1994 was passed, amending the Labour Code, which lays down rules and procedures for the conclusion of collective agreements at the enterprise and higher levels (e.g. for an entire industry or profession). These agreements are sometimes reinforced by "social agreements" entered into by foreign investors in privatized SOEs and organizations representing workers in these enterprises. There are no legal or practical restrictions on the exercise of the right to organize and bargain collectively, and the results of inspections of 2,120 MNEs in 1995 have shown that 95 per cent respected trade union rights. The Independent Self-Governing Trade Union "Solidarno" notes that there is a general tendency among MNEs in Poland to accept trade unions in privatized SOEs. However, according to the information it has received, this is not the case with new MNEs, where workers are not always able to exercise fully their right to freedom of association. In its view, the fact that the law provides for the imposition of a fine in cases of violations of this right is not sufficient. There have been no investment-promotion incentives that have had the effect of restricting the exercise of workers' rights. There have been no efforts to develop and improve labour relations policies and practices to make them consistent with the principles of the Tripartite Declaration.
The Government of Portugal states that its reply to the fifth survey is still valid. It adds that all enterprises regardless of their ownership must observe the legally prescribed standards of industrial relations. The General Union of Workers notes that while there are no restrictions on the right to organize, in practice, unions face certain difficulties in exercising their activities fully (e.g., lack of information and problems of organizing workers in certain companies). The establishment of MNEs in Portugal has not led to restrictions on workers' rights. The social partners have not been given a hearing by Government as regards FDI-related matters and the provisions of agreements governing the establishment of MNEs.
The Government of Romania is not aware of cases of workers in MNEs being restricted from exercising their rights. Initiatives for attracting FDI do not restrict freedom of association, and the right to organize and collective bargaining. Romania has ratified Conventions Nos. 144, 154 and 168. The Government has submitted a bill to Parliament on the functioning of the Economic and Social Committee which is a tripartite consultative body. Three other relevant institutional arrangements are mentioned: a government department dealing with relations with trade unions and employers' organizations, the National Agency for Employment and Vocational Training, and the National Council for Vocational Training. Led by tripartite boards of directors, the two latter bodies will become operational in 1996.
The St. Vincent Employers' Federation reports that the Ministry of Labour is currently involved in efforts to resolve a case of non-observance of the principle of freedom of association. There are no investment-promotion incentives that limit workers' rights. There are ongoing initiatives to harmonize industrial relations policies and standards at the level of the Caribbean Community and Common Market.
The Government of Singapore reports that MNEs generally observe workers' rights. By law, workers are free to organize or join unions. Local employers' organizations to which MNEs are affiliated, generally inform them of the industrial relations system that applies in the country. The Ministry of Labour also plays an important role in advising employers to respect national law and practice. Sanctions are imposed on employers who engage in anti-union activities. There are established procedures for resolving individual and collective disputes which may arise over issues such as the recognition of unions, terms and conditions of employment and wages. Incentives for encouraging inward FDI in no way limit workers' freedom of association and the right to bargain collectively. There is an ongoing process of promoting tripartism and this has made for constructive discussions on major labour issues. The National Trades Union Congress concurs with the Government of Singapore.
The Government states that freedom of association is guaranteed by the national Constitution and fully respected in Slovakia. There are no restrictions on the number of trade unions, nor any encouragement of specific unions in certain companies and industries. Under the Freedom of Association Act, any violation of the right to associate freely is considered to be a criminal offence that is punishable by imprisonment or a fine. Appropriate macroeconomic policies are being implemented to promote privatization and encourage foreign investment, including by MNEs. The Government has provided a further incentive to attract foreign investment, by establishing the National Property Fund of the Slovak Republic which guarantees such investments. Foreign investors must respect the right of workers to form and join trade unions and bargain collectively.
The Government of Spain states that all enterprises must respect the principles of freedom of association and the right to organize which are enshrined in the Constitution of Spain, and other laws such as Royal Decree 2/1995 of 7 April to approve the amended text of the Labour Procedure Act. The information and consultation procedures set out in Council Directive 94/45 of 22 September will be promoted at the national level through legislation that will be drawn up in this regard. The Government summarizes the main features of the Directive on the establishment of a European Works Council. The General Union of Workers says that workers in MNEs in Spain have the same rights as those in other enterprises. Multinationals usually respect the principles and norms relating to freedom of association. None the less, there are some (origin mentioned) which try to prevent the emergence of trade union representation in their Spanish subsidiaries, and in a few cases they prefer to promote company unions. In such situations the unions and the workers concerned can take the matter to the labour court, as long as the measures taken by the enterprises are in violation of the applicable standards. There are no investment-promotion incentives which adversely affect the exercise of freedom of association. The industrial relations policies and practices of enterprises are in line with the principles of the Tripartite Declaration and the unions are prepared to denounce all actions that run counter to these principles.
According to the Government of Sri Lanka, workers in many MNEs, particularly in the EPZs, have been denied the right to freedom of association. However, measures to remedy this are provided for in the National Workers' Charter which was recently drawn up, and which makes trade union recognition mandatory. National legislation is being introduced to implement the provisions of the Charter. There is no information on whether any new initiatives have been taken to attract FDI. However, government policy makes it clear that such measures will in no way limit workers' freedom to organize and engage in collective bargaining. Legislation is being introduced to make the recognition of trade unions mandatory and to prevent anti-union discrimination. Industrial relations policies and practices are being improved due to the increasing numbers of workers' and employers' organizations engaging in collective bargaining. The Lanka Jathika Estate Workers' Union reports that although the labour laws apply equally to workers in all enterprises in Sri Lanka, in practice, workers in EPZs face difficulties -- e.g., possible reprisals on the part of their employers -- when trying to organize. Workers are also reluctant to get involved in trade union activities for fear of dismissal. Employers are cooperating with their workers' representatives in joint consultative councils to look into issues relating to workers' welfare. These appear to be the only workers' organizations operating within the EPZs.
According to the Government of Swaziland, there is no evidence of MNEs having restricted workers from exercising fully their right to freedom of association, nor have there been any allegations by workers that MNEs have not observed the principle of freedom of association. The incentives offered to attract foreign investment do not in any way limit the right of workers to freedom of association and the right to organize and bargain collectively. Tripartite meetings are frequently organized for the social partners to try to iron out any differences that may exist between them and also to promote the spirit of free consultation and association.
The Government of Sweden notes that there is no distinction between MNEs and local enterprises as regards the obligation to respect the right to exercise freedom of association, to organize and to bargain collectively. The Swedish Employers' Confederation and the Federation of Swedish Industries state that they have nothing new to add to the Government's report.
The Government of Switzerland reports that under the national Constitution, workers have the right to join or not to join an organization, and it is prohibited to influence their choice in this regard. These principles apply to all individuals and legal entities in the country. The law protects workers against unfair dismissal, which includes dismissals as a result of membership or non-membership in a workers' organization and the exercise of rights inherent to freedom of association. The Government is not aware of cases of MNEs involved in dismissals for these reasons. Efforts to promote economic activities at cantonal or national levels in no way impinge on freedom of association. The Central Union of Swiss Employers' Associations indicates that its reply to the last survey is still applicable. The right to organize is fully respected. Industrial relations, based on the concept of "industrial peace" which was introduced in 1937, can be described as "very good". Set up on a voluntary basis, works councils are widespread in industry, thereby enabling management to inform representatives of production workers and office staff on various matters. These practices are reinforced by the Workers' Participation Act, under which workers in all enterprises must be informed on OSH matters, transfer of the enterprise and collective dismissals. For example, article 8 of the Collective Agreement covering the Machine Industry provides for labour-management cooperation and for the establishment of Joint Committees to deal with questions relating to training, equality between men and women, OSH and the environment. There are to be annual meetings to exchange views. The Federation of Commerce, Transport and Food Industries Workers' Union has concluded collective agreements and kept good relations with many MNEs for decades, particularly with those operating in the food industry in Switzerland. This is not the case with MNEs in retailing, a large number of which are reluctant to deal with trade unions.
The Government of the Syrian Arab Republic indicates that workers in MNEs have the right to exercise freedom of association. Initiatives to attract FDI do not impinge on freedom of association and the right to collective bargaining. The principles embodied in the Declaration are considered to be "sound and sufficient". The Chamber of Industry agrees with the statement made by the Government of the Syrian Arab Republic.
The Government of Thailand states that national legislation governing freedom of association applies to workers in all enterprises. However, there are allegations of non-observance of these principles by some MNEs which discourage workers from engaging in trade union activites. The Government does not impose limitations on workers' rights in order to attract FDI. It has made great efforts to develop and improve industrial relations policies and practices. Many tripartite consultations, involving also MNEs, have been held in this regard.
The Government of Trinidad and Tobago replies in the negative to the first question. It confirms that there have been new initiatives to attract FDI. There is the 1990 Foreign Investment Act which repeals the Alien Landholding Act, thereby enabling foreigners to invest in private companies, and to acquire land for residential and commercial purposes without requiring a licence. The Free Zones Act No. 19 of 1988 (amended through Act No. 6 of 1991 and Act No. 33 of 1995), grants unlimited tax holidays, and allows duty-free status for imports for those enterprises exporting at least 80 per cent of their output outside of the Caribbean Community and Common Market. The Central Bank Amendment Act No. 23 of 1994 redefines the role of the Central Bank in the light of the removal of foreign exchange controls in April 1993. It should be noted that these incentives do not in any way limit freedom of association and the right to organize and bargain collectively. Industrial relations in free zone companies set up under the Free Zone Act are, and will continue to be, in keeping with the principles of the Tripartite Declaration. Other relevant regulations are also expected to be issued. The Employers' Consultative Association of Trinidad and Tobago replies in the negative to the first two questions.
The Government reports that trade unions' rights are protected under article 8 of the Constitution of Tunisia, section 242 of the 1966 Labour Code, the 1973 Framework Collective Agreement (amended in 1984), which applies to all non-agricultural activities, and the National Sectoral Collective Agreements. Among the rights that are guaranteed is that of trade union officials to be received by the employer (or the employer's representative) once per month and whenever there is an emergency. The law prohibits employers from discriminating against workers either because they belong or do not belong to a union. Tunisia has ratified Conventions Nos. 87, 98 and 111 and these instruments are fully respected. Act No. 93-120 (27 December 1993) concerning the promotion of investment, applies to both foreign and local investors, and in no way violates the workers' rights to organize and to bargain collectively. According to the Tunisian Confederation of Industry, Trade and Handicrafts, the national Labour Code guarantees trade union rights and freedom of expression. Its provisions apply to sectoral collective agreements and are implemented by all enterprises. The Government applies the principles embodied in Conventions Nos. 87 and 98 and the laws provide for the conclusion of collective agreements at the sectoral and enterprise levels. These laws apply to both national and multinational enterprises.
The Government of Turkey replies that workers in MNEs enjoy the same rights as those in domestic enterprises and there are no restrictions on their ability to exercise these rights. In an effort to attract FDI, Act No. 6224 on the Encouragement of Foreign Capital came into force during the period under review. Its main objective is to promote economic development and provide for the increased participation of domestic and foreign private enterprises. However, foreign investors cannot acquire the majority share of a monopoly in the country. No incentive has been offered that would limit in any way the right to freedom of association and the right to organize and bargain collectively. However, the law concerning free zones waives the application of the national legislation in relation to strikes, lockouts and conciliation for a period of ten years. Disputes arising during this period shall be dealt with by the Supreme Arbitration Committee. Collective agreements can only be concluded between unions and employers in a given enterprise. Some efforts have been made by the Government to develop and improve the industrial relations policies and practices and to bring them into conformity with the principles of the Declaration. MNEs must comply with the labour legislation and the relevant collective agreements. Membership in national employers' associations is open to MNEs, and many of them, especially in the petroleum, chemical, rubber and food industries, belong to the Confederation of Turkish Employer Associations. Legislation concerning trade unions and employers' associations provides for international affiliation, on condition that these organizations fulfil certain requirements. According to the Turkish Confederation of Employer Associations, MNEs and national enterprises are governed by the national labour legislation and collective agreements. The Confederation of Turkish Trade Unions states that cases of violations of the right to freedom of association by MNEs are becoming frequent. They have all been referred to the Court. With regard to incentives to attract FDI, the Law on Free Zones prohibits strike action by workers for a period of ten years. No special efforts have been made to improve industrial relations policies and practices to bring them into line with the principles of the Declaration.
The Government of the United Kingdom stresses that national standards of industrial relations apply to all enterprises and there is no evidence of differences in the norms observed by MNEs. All workers have the right to belong to a trade union. To dismiss or discriminate against them for exercising this right is against the law. Since 1992, legislation has been passed, providing for the following: the right to hold a "fully postal ballot" before being called upon to take industrial action by a union; the right to go to court to restrain the unlawful organization of industrial action which deprives the individual of any goods and services; the right to seek settlement by an industrial tribunal if denied membership of a particular union because of an inter-union agreement that restricts or seeks to restrict membership; the right to confirm the willingness to have union membership subscriptions deducted directly from pay by the employer; the right to an annual statement of the union's financial affairs; and the right to seek a settlement by an industrial tribunal if disciplined by a union for either working with or proposing to work with non-union members, or workers belonging to another union. Employers also have the right to go to court to restrain the organization of industrial action if the union did not give at least seven days' notice of its intent to ballot its members before organizing the action, and at least seven days' notice of the planned industrial action, after the ballot has been held. The Confederation of British Industry notes that, like national enterprises, MNEs must observe the industrial relations standards applicable in the UK. All workers can exercise freedom of association and the right to organize. Initiatives for attracting FDI do not pose industrial relations problems in MNEs, and the principles of the Declaration are fully respected.
The Government of the United States reports that the National Labor Relations Act (NLRA) applies to all enterprises including MNEs. It governs relations between most private employers and their non-supervisory employees. All employees covered by the NLRA are guaranteed the right to establish and join workers' organizations without the authorization of the employer. They are also protected against anti-union discrimination. However, under the law employers are free to express opposition to the organization of their employees, as long as there are no threats of reprisal, coercion or other forms of interference. Under the US Constitution, MNEs, like national enterprises, have the right to choose whether or not to join employers' organizations. US law and practice do not restrict MNEs and their representative organizations, nor workers' organizations, from affiliating to international employers' and workers' organizations of their choice. No special incentives are given to foreign investors at the federal level. While often mistakenly regarded as investment incentives, the so-called "right-to-work laws" of several states do not restrict the right of workers in any enterprise to join or not to join a union, or to organize and bargain collectively. Since the NLRA grants employees the right to organize, any incentives to MNEs or any other enterprises that limit the exercise of this right would be contrary to the law. The policies and procedures applicable to meetings of representatives of workers of MNEs for consultation and exchanges of views among themselves, are the same as those applicable to the representatives of workers employed by national enterprises. Employees and their representatives generally enjoy the right to meet and exchange views during "non-work time" and in "non-work areas". There are no restrictions on employers' and workers' representatives from other countries entering the US for consultations with local or national organizations on matters of mutual concern, as long as entry is sought for that purpose. According to the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), workers in MNEs are restricted from exercising the right to freedom of association because of "harassment, intimidation and firing of union organizers and supporters", as well as the permanent replacement of workers who "engage in certain forms of strikes". It draws attention to the conclusion of the ILO's Committee on Freedom of Association which, with reference to the replacement of workers on strike in the US, stated that the right to strike is "... not really guaranteed when a worker who exercises it legally runs the risk of seeing his or her job taken up permanently by another worker, just as legally" (session not indicated). The AFL-CIO gives the example of a US-owned MNE (name given) which fired 235 workers in July 1994 only days before a vote on union representation was to take place. Unions in Mexico filed a complaint with the National Administrative Office (NAO) in Mexico, set up under the North American Agreement on Labor Cooperation, to protest against the company's actions in the US and called for the company to be prohibited from operating in Mexico until it complied with US labour law. The National Labor Relations Board did not consider the closing of the office to be in violation of US labour laws. However, the company reportedly admitted to a number of violations of workers' rights. The workers were subsequently rehired and the company agreed to recognize unions both in the US and Mexico when there is a majority vote in favour of unionization. No final decision has yet been reached on this case. The AFL-CIO also notes that workers in MNEs operating in certain overseas US territories (one example cited) are subject to anti-union discrimination, unsatisfactory conditions of work and various forms of violation of civil and workers' rights. As regards investment-promotion incentives, states with "right-to-work" laws have lower labour standards, which are often used to attract investors. It cites the example of a foreign-owned multinational in the automobile industry (name given), which decided to invest in South Carolina because of the attractive incentive package which included tax breaks, upgraded airport infrastructure and low labour costs. The AFL-CIO points out that the MNE has a policy of paying higher than average wages in order to discourage workers from organizing. Very low unionization rates are said to be among the main factors that attract investment to certain states. It notes that the Tripartite Declaration is "virtually unknown" in the US and many enterprises adopt codes of conduct which make no reference to this instrument, nor to the OECD Guidelines.
According to the Government of Uruguay, the standards relating to industrial relations apply to both domestic and foreign enterprises. Where these are not respected, they can be, and have been, reported. Investment-promotion incentives in no way obstruct the exercise of freedom of association and the right to bargain collectively which are guaranteed by law.
The Government of Venezuela reports that the national legislation concerning trade union rights applies to both national and foreign enterprises and the State ensures that the laws are respected. Neither the State nor MNEs obstruct the exercise of these rights and there have been no complaints from workers in this regard. Recent initiatives to attract FDI, particularly in the petroleum sector, in no way limit workers' rights. According to the Venezuelan Federation of Chambers of Commerce and Manufacturers' Associations, there are no restrictions on the exercise of trade union rights. There have been initiatives for boosting inward FDI, but these in no way limit the right of workers to organize and bargain collectively. As regards the improvement of industrial relations policies and practices, efforts have been made with respect to freedom of association, as well as the revision and elaboration of collective agreements.
The Government of Zambia states that the quality of labour-management relations determines the climate of industrial relations in a given workplace. Therefore it encourages industrial peace and the expeditious settlement of industrial disputes. The establishment and functioning of trade unions and employers' organizations are regulated by the 1993 Industrial and Labour Relations Act. There have been isolated cases, reported to the Ministry of Labour, of MNEs denying workers their right to exercise fully, freedom of association. This practice may be attributed to the perception of some employers, particularly new investors, that workers' organizations are not necessary in a liberalized economy. The reasoning is that individual employees should be left to negotiate their terms and conditions of employment with their employers. Recently enacted legislation guaranteeing freedom of association and the right to organize should contribute to bringing about a change of attitudes in this regard. The encouragement of inward FDI ranks as a high priority, but the State has no intention of eroding any workers' rights provided for in the Industrial and Labour Relations Act. There is no problem for Zambian workers' and employers' representatives to affiliate with international organizations, if they wish. Everything possible is being done to improve and develop industrial relations policies and to ensure that they contribute to higher productivity in the country.
The Government states that Zimbabwe respects the right of workers to join trade unions. Investment-promoting incentives offered by Government do not limit the right to freedom of association. The Employers' Confederation of Zimbabwe notes that there are no limitations on the ability of workers to exercise the right to freedom of association. There are a few cases of alleged failure to observe this principle by employers who are accused of "influencing trade unions". The Labour Relations Act provides for the observance of these principles and aggrieved persons can utilize the dispute settlement mechanism. There have been new initiatives to attract FDI, including an Act of Parliament to facilitate the establishment of EPZs. The Act also provides for the labour legislation in these zones to be waived. This could lead to restrictions on the right to associate freely and to organize and bargain collectively. Employers' and employees' representatives meet regularly with the Government to discuss matters of mutual interest, and in particular to develop and improve industrial relations policies and practices. Similarly, employers' organizations and employees' representatives meet on a bilateral basis to discuss industrial relations matters at the industry and sectoral levels.