Sixth Survey on
the Effect Given to the Tripartite Declaration of Principles
concerning Multinational Enterprises and Social Policy


Paragraph 56 of the Declaration

Question

(1) Please explain the policy and practices of multinational enterprises concerning information and regular consultation on matters of mutual concern.

Answers

Antigua and Barbuda, Argentina, Australia, Bahamas, Bangladesh, Barbados, Brazil, Cambodia, Chad, Colombia, Costa Rica, Czech Republic, Dominica, Ecuador, Egypt, Estonia, Ethiopia, Finland, France, Gabon, Germany, Grenada, Hungary, India, Indonesia, Ireland, Italy, Jordan, Republic of Korea, Kuwait, Mauritania, Mauritius, Mexico, Namibia, Netherlands, New Zealand, Nicaragua, Nigeria, Pakistan, Poland, Portugal, Romania, Singapore, Slovakia, Slovenia, Spain, Sri Lanka, Swaziland, Switzerland, Syrian Arab Republic, Thailand, Trinidad and Tobago, Turkey, United Kingdom, United States, Uruguay, Venezuela, Zambia, Zimbabwe.

The Government of Antigua and Barbuda reports that there is no set policy governing information and consultation. Consultation tends to take place at the management level.

The Government of Argentina states that the information contained in its reply to the fifth survey is still applicable.

According to the Government of Australia, the Commonwealth Industrial Relations Act provides for management to consult with all workers in a given enterprise wishing to register an enterprise agreement. A declaration must be provided, attesting that consultations did take place. All agreements registered with the federal authorities must provide for the setting up of joint consultative mechanisms.

According to the Government of the Bahamas, information and regular consultation are facilitated through dialogue between the government authorities and representatives of trade unions and employers.

The Government of Bangladesh reports that MNEs follow the established practice of settling labour disputes through bilateral discussions. Matters of mutual interest to employers and workers are discussed in the Participation Committee, formed in compliance with the Industrial Relations Ordinance, 1969. The Bangladesh Employers' Association concurs with the Government.

The Government states that large MNEs in Barbados establish committees which hold consultations at frequent intervals to discuss matters of mutual concern. Meetings usually discuss matters such as training, education, safety, health and welfare. The Barbados Employers' Confederation points out that consultations are held on a voluntary basis, depending on the policies and practices of the individual enterprises. The Barbados Workers' Union reports that there are no policies concerning information and consultation in MNEs on matters of mutual concern.

According to the Single Central Organization of Workers, consultations are not held in multinational enterprises in Brazil. Decisions are communicated to workers after they have been taken by management.

According to the Government of Cambodia, consultations on matters of mutual concern take place at monthly meetings at the enterprise.

The Government of Chad reports that no such consultations are held.

As regards discussions between labour and management on matters of mutual concern, the Government of Colombia reports that there are no laws obliging employers to engage in such discussions. However, they may, on a voluntary basis, have committees in which workers participate. The National Association of Manufacturers states that in Colombia there are management-labour committees to discuss, inter alia, matters concerning jobs, recreational facilities, and safety and health. According to the General Confederation of Democratic Workers, neither MNEs nor national enterprises in Colombia have the political will to provide information to, and consult with workers and/or their representatives. In the few cases where this has been done, it was when the enterprise was undergoing economic difficulties and the workers' support was being sought to deal with the competent authorities.

The Government of Costa Rica states that agreements resulting from collective bargaining normally contain provisions concerning information and consultation on matters of common interest.

The Government of the Czech Republic is not aware of specific practices as regards information and consultation on matters of mutual concern within MNEs. It cites the example of one MNE (name given) in which consultation and the provision of information take place within an "Operational Committee". Under the Labour Code, unions representing workers in an enterprise must be informed of important developments, including the financial results achieved and expected performance of the enterprise. In addition, the employer is obliged to negotiate with the trade union on the following: the employment of older workers, mothers, young persons and persons with disabilities; employees' welfare; tests relating to OSH and the working environment; and all measures that would have an impact on large numbers of employees. Employers must supply information to the trade unions concerned, consult with them, and, "within the existing possibilities", take account of their observations. The Government is not aware of concrete measures taken by MNEs to implement these legal requirements. The Czech and Moravian Chamber of Trade Unions notes that in most MNEs where trade unions exist, such consultations are held. They also take place in trade union federations, and, where possible, at the international level. The situation differs according to the sector of activity and the origin of the MNE. It stresses that the involvement of trade union federations in multinational trade union structures opens up avenues for labour-management consultations in MNEs.

The Dominica Employers' Federation points out that its reply to the fifth survey is still valid.

The Government of Ecuador reports that there is a system of settling disputes through mediation and facilitating frequent consultations between the social partners in order to resolve their differences.

Information given by the Federation of Egyptian Industries shows that the supplying of information and the holding of regular consultations on matters of mutual concern take place in some pharmaceutical enterprises and in the metal trades (names given). In some pharmaceutical companies, coordination between management and workers is regarded to be of mutual interest. Committees representing workers discuss with management, problems related to productivity, and matters affecting the great majority of workers are taken into consideration on a regular basis. In some pharmaceutical companies and metal trades enterprises, there are monthly labour-management meetings at which the demands of labour are made known to management, and labour is informed of certain company policies and activities. Discussions on specific issues (e.g. safety and health) also take place in different committees.

The Government reports that Estonian labour legislation requires employers to consult workers regularly. However, MNEs do not use that possibility. Workers' participation in discussions and decision-making at the enterprise level is only beginning.

The Government of Ethiopia reports that there is no special policy and practice for MNEs in this regard. It is common for management and workers to resolve problems through discussion.

The Government of Finland refers to its reply concerning cooperation on OSH matters (paragraphs 36-39). The Confederation of Finnish Industry and Employers and the Employers' Confederation of Service Industries report that information and consultation procedures are set out in the Act on Cooperation Within Enterprises (1978), and the provisions of supplementary agreements between the central employers' and workers' organizations, which apply to all enterprises operating in Finland. MNEs often supplement these provisions with their own internal procedures. 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) state that the provisions of the Council Directive on the establishment of a European Works Council will be incorporated into national legislation. They add that in the past there had been limited success in establishing works councils on a voluntary basis and that without the Directive the responses to workers' concerns would be inadequate. A March 1995 survey carried out by trade unions showed that 33 Finnish and 60 foreign enterprises in various industries were covered by the Directive on Works Councils. The number of enterprises to which the Tripartite Declaration applies is, of course, much larger.

The National Council of French Employers indicates that many MNEs have instituted information and consultation mechanisms or European works councils, in keeping with Council Directive 94/45/EC which must be incorporated into national law by 22 September 1996. The definition of European works council in the relevant law should stick closely to that of national group committees representing workers within the group of enterprises (comité de groupe national), which have been in existence since 1982. The law should give enterprises greater possibilities for setting up information and consultation procedures as well as councils.

The Government of Gabon states that such consultations are possible.

The Government of Germany says that its reply to the fourth survey is still applicable. It notes that since Council Directive 94/45/EC on the establishment of a European Works Council was adopted, several MNEs have concluded voluntary agreements providing for the transnational information and consultation of workers.

The Government states that there have been no regular consultations in Grenada.

The Government reports that in Hungary the labour regulations apply to MNEs as well as domestic enterprises. Initially, problems relating to regular consultations between employers and workers and their representatives, emerged among MNEs from certain OECD countries (named) where such practices did not exist in the parent companies. Fewer problems of this kind have arisen in MNEs originating from certain countries in western Europe (examples of two countries given by name).

The Government of India states that as required by law, MNEs, like national enterprises, have set up works committees and various other committees within the framework of the Workers' Participation in Management Scheme. However, it notes that according to workers' organizations, meaningful labour-management consultations on matters of mutual concern do not take place regularly.

The Government of Indonesia states that Pancasila Industrial Relations emphasizes, inter alia, the importance of consultation between the parties concerned for resolving labour problems.

Information and consultation practices vary among enterprises, notes the Government of Ireland. Many MNEs have well-developed systems in this regard.

The General Confederation of Industry indicates that both national and multinational enterprises in Italy have good practices with respect to information and consultation on matters of mutual concern.

The Government points out that since the presence of MNEs is a rather recent phenomenon in Jordan, and they are very few, it is difficult to assess their policies and practices regarding consultation. However, nothing prevents them from engaging in such consultations if they wish. The Amman Chamber of Industry states that there are no policies or practices that hinder information or consultation in MNEs in Jordan.

The Government of the Republic of Korea notes that by law MNEs and national enterprises must establish labour-management councils at the workplace, and hold regular meetings to discuss issues of mutual concern -- e.g. increasing productivity, education and training, management and production plans. The Korea Employers' Federation reports that labour-management councils are established to promote workers' welfare through consultation.

The Government of Kuwait indicates that national laws encourage cooperation with MNEs on matters of mutual concern.

The Confederation of Independent Trade Unions (Luxembourg) states that the right to consultation is respected, but that its comments in relation to paragraphs 24-28 must be borne in mind.

The Government of Malaysia reports that various forms of consultative machinery exist in MNEs -- e.g. unions, welfare committees, and safety and health committees. The Malaysian Trades Union Congress states that MNEs do not have a policy as regards consultation on matters of mutual concern.

The General Confederation of Employers of Mauritania reports that MNEs do not have a particular policy concerning information and consultation on matters of mutual concern. The Free Confederation of Workers of Mauritania notes that MNEs show no interest in information and consultation in Mauritania and that they do not recognize the principle of reciprocity.

The Government of Mauritius states that the Code of Practice accompanying the Industrial Relations Act emphasizes the need for appropriate systems of communication whereby parties can have regular consultation and disseminate information on matters of mutual concern.

According to the Government of Mexico, there is no legal requirement with respect to information and consultation. However, the law and many collective agreements provide for the setting up of joint labour-management committees to deal with matters of mutual concern in the fields of OSH, training and the sharing of facilities. The Mexican Confederation of Chambers of Industry reports that in keeping with national law and practice, there are several arrangements through which MNEs can make available statistical and other company-related information. The Confederation of Mexican Workers shares the Government's views.

According to the Government of Namibia, MNEs' policies on information and consultation vary from company to company.

Under the Works Councils Act, all enterprises are required to inform and consult their works councils on a regular basis on matters of mutual interest, reports the Government of the Netherlands. The Federation of Netherlands Industry and Employers shares the Government's views.

The Government of New Zealand states that the information contained in its report to the fifth survey is still valid, and adds that policies and practices on information and consultation are a matter for negotiation between the parties. The New Zealand Employers' Federation shares the Government's point of view.

There is frank and effective communication between representatives of labour and management in MNEs in Nicaragua, reports the Government.

The Government states that the industrial relations practice in Nigeria allows for regular consultations between employers' and workers' representatives on matters of mutual concern and that such consultations complement collective bargaining. The Nigeria Labour Congress states that most MNEs permit regular consultation on matters of mutual concern.

According to the Government of Pakistan, MNEs are required by law to establish works councils and other arrangements whereby there can be joint consultations and workers' participation in management. The Employers' Federation of Pakistan reports that in the absence of statutory requirements, MNEs have developed their individual arrangements for labour-management consultations on matters relating to productivity, efficiency and labour relations.

The Independent Self-Governing Trade Union "Solidarno" (Poland) notes that the policies and practices of MNEs as regards consultation are generally favourable in large enterprises, which tend to attach great importance to their reputation.

The Government of Portugal states that its reply to the fifth survey is still valid. The General Union of Workers reports that discussions between representatives of labour and management in MNEs in Portugal are much easier and more frequent where there are enterprise agreements.

The Government of Romania reports that information and consultation on matters of mutual concern are non-existent.

The Government indicates that industrial relations policies and practices in Singapore are based on the principles of tripartism, and the social partners support the idea of sharing information. Employers generally provide workers with information required for negotiations. Consultations take place in some MNEs through Work Excellence Committees and similar joint union-management bodies. At the national level, consultations are held either through the Ministry of Labour or directly with the national employers' and workers' organizations. The observations made by the National Trades Union Congress are similar to those of the Government of Singapore.

The Government of Slovakia states that the Labour Code provides for representatives of workers in MNEs to be consulted on matters relating to new conditions of employment, measures concerning an increase in the number of workers, employees' welfare, and the improvement of OSH standards.

The Government of Slovenia has no information on the policy and practices of MNEs as regards information and consultation.

The Government states that Council Directive 94/95/EC of 22 September 1994 on the establishment of a European Works Council inevitably covers MNEs operating in Spain. It adds that the concept of "consultations" encompasses the exchange of views and the facilitation of dialogue between workers' representatives and central management or management representatives at any other level, as may be appropriate. The General Union of Workers states that, as a general rule, MNEs in Spain hold periodic consultations with workers' representatives on matters of mutual interest.

The Government of Sri Lanka reports that while MNEs have no policies or established practices concerning consultations, certain produce information brochures on issues of interest to workers.

Although MNEs in Swaziland do consult with their counterparts on matters of mutual concern, the Government indicates that there have been cases of workers' representatives complaining that they are "informed just for the sake of information and not afforded the opportunity to look into the issue of concern".

The Government of Switzerland indicates that the Workers' Participation Act came into force on 1 May 1994. Largely inspired by Council Directives (EU), the Act provides a framework for the exercise of the right of workers in enterprises with more than 50 workers to appoint workers' representatives; and in the case of enterprises with less than 50 workers, it gives them the possibility of either electing a workers' representative or of having the right to information and participation by direct means, as defined by the law. Under the Act, workers' representatives have the right to be informed about all matters necessary for carrying out their tasks in a timely and comprehensive manner, and to participate in matters pertaining to OSH, transfer of the enterprise and collective dismissals. The right to participation implies that workers or their representatives must be informed, can express their views, and can submit proposals on the matters under discussion. Employers must justify decisions taken without having held consultations. The Act also applies to MNEs, which, given their large size, are particularly concerned by the election of workers' representatives. The Central Union of Swiss Employers' Associations (UCAPS) states that MNEs are subject to the same legal requirements as national enterprises. It makes reference to the provisions of the Workers' Participation Act, details of which are provided in the Government's reply. UCAPS notes that even before the Act was passed, many collective agreements contained provisions on information and consultation (e.g., article 36.11(2) of the Collective Agreement covering the Machine Industry (copy attached to report)). All enterprises make a special effort in this respect. The Federation of Commerce, Transport and Food Industries Workers' Union states that consultations and exchange of information take place in several MNEs in Switzerland (names given).

The Government of the Syrian Arab Republic is not informed about enterprises' practices with respect to consultations on matters of mutual interest. The Chamber of Industry (Syrian Arab Republic) reports that there have been no cases of such consultations being held.

According to the Government of Thailand most MNEs have company-specific policies and practices as regards the provision of information. Some have the practice of holding regular consultations.

The Government of Trinidad and Tobago states that while there is no set policy, other than provisions that may be contained in collective agreements, the practice is that parties meet as often as necessary in what is known as "non-crisis sessions".

The Government of Turkey is aware of the importance of holding consultations on matters of mutual concern. In 1994, a report prepared and adopted by government representatives and the social partners was published by the State Planning Organization (SPO). The Turkish Confederation of Employer Associations states that consultations involving the Government, individual MNEs and workers' organizations can be held to address matters of mutual concern. Such consultations can take place with the national employers' organization, if the MNEs in question are members of the organization. The Confederation of Turkish Trade Unions reports that there is very limited exchange of information, and consultation on matters of mutual concern seldom takes place.

According to the Government, there is in the United Kingdom, a tradition of regular labour-management consultations on matters of common concern in all enterprises, including MNEs. The Government affirms its commitment to the principle of workers' involvement in enterprises in which they work and it promotes and supports the development of voluntary arrangements to facilitate such participation. One of the many initiatives taken in this respect is a joint project with the Confederation of British Industry known as "Managing for Success -- Improving Business Performance through Employee Involvement". This recently launched campaign is intended to promote the practice of workers' involvement by demonstrating to a wide audience, the contribution that such participation can make to the success of enterprises. Management guidelines on this subject have been published and disseminated free of charge to enterprises upon request (copies of publications annexed to reply). In 1994, the Government published and distributed 20,000 copies of "The Competitive Edge" -- a booklet aimed at raising public awareness of different forms of "voluntary employee involvement" and encouraging both sides of industry to adopt and/or maintain such practices. Publications highlighting cases of best practice in this regard have also been issued and the Government continues to commission research on the development of employees' involvement in enterprises in the UK. According to the Confederation of British Industry, information and consultation practices in UK multinationals are in line with best local practice.

According to the Government of the United States, the extent to which enterprises operating in the US and their employees consult with each other outside of the context of collective bargaining is a matter for mutual agreement between the parties.

The Government of Uruguay states that it is not aware of any specific policies in MNEs regarding information and consultation on matters of mutual interest. However, in its view, consultation and the exchange of information are possible on a permanent basis in many of these enterprises.

According to the Government of Venezuela consultations between employers and workers in MNEs do take place. However, it has no detailed information on policies and practices in this regard. The Venezuelan Federation of Chambers of Commerce and Manufacturers' Associations states that in practice, workers' representatives and their organizations engage in regular consultations with employers on matters of common interest, and this results in better communication between both groups.

According to the Government of Zambia, the industrial relations policies and practices of MNEs have made it possible for there to be regular consultations between them and workers' representatives on matters of mutual concern, outside the sphere of collective bargaining. Consultation procedures are well defined in the Recognition and Collective Agreements and they must be respected. Experience has shown that since the ratification of Convention No. 144 in 1978, all the addressees have taken consultation seriously, and have deliberated on issues tabled for discussion with a sense of commitment, and without creating unnecessary problems.

The Government of Zimbabwe points out that MNEs, like national enterprises, are required by law to consult with workers on matters of mutual concern in the works council. According to the Employers' Confederation of Zimbabwe, MNEs and national enterprises engage in consultations on matters of mutual concern at both the bipartite and tripartite levels.

Paragraph 57 of the Declaration

Question

(1) Have any problems occurred in connection with the examination of employees' grievances in accordance with the principles set out in this paragraph? If so, please explain.

Answers

No problems were identified by the following respondents:

Governments of: Antigua and Barbuda, Australia, Bahamas, Bangladesh, Barbados, Brazil, Cambodia, Chad, Chile, Colombia, Costa Rica, Czech Republic, Ecuador, Estonia, Ethiopia, Finland, Gabon, Grenada, India, Indonesia, Ireland, Jordan, Kuwait, Mauritius, Mexico, Namibia, New Zealand, Nigeria, Portugal, Republic of Korea, Singapore, Slovenia, Spain, Sri Lanka, Syrian Arab Republic, Swaziland, Trinidad and Tobago, Tunisia, Turkey, Uruguay, United States, Venezuela, Zambia, Zimbabwe.

Employers' organizations: Bangladesh Employers' Association, Barbados Employers' Confederation, National Association of Manufacturers (Colombia), Dominica Employers' Federation, Confederation of Finnish Industry and Employers, Employers' Confederation of Service Industries (Finland), General Confederation of Industry (Italy), Amman Chamber of Industry (Jordan), Korea Employers' Federation, General Confederation of Employers of Mauritania, Mexican Confederation of Chambers of Industry, New Zealand Employers' Federation, Nigeria Employers' Consultative Association, Employers' Federation of Pakistan, St. Vincent Employers' Federation, Central Union of Swiss Employers' Associations, Chamber of Industry (Syrian Arab Republic), Employers' Consultative Association of Trinidad and Tobago, Tunisian Confederation of Industry, Trade and Handicrafts, Confederation of British Industry, Venezuelan Federation of Chambers of Commerce and Manufacturers' Associations, Employers' Confederation of Zimbabwe

Workers' organizations: Barbados Workers' Union, General Confederation of Democratic Workers (Colombia), Confederation of Independent Trade Unions (Luxembourg), Malaysian Trades Union Congress, Nigeria Labour Congress, Independent Self-Governing Trade Union "Solidarno" (Poland), General Union of Workers (Spain), Confederation of Turkish Trade Unions

The Government of Argentina states that the information contained in its reply to the fifth survey is still applicable.

The Single Central Organization of Workers reports that in Brazil there are no regulations relating to the examination of grievances, nor is there a specific body for dealing with grievances.

The Government of Canada states that its reply to the last survey is still applicable.

The Czech and Moravian Chamber of Trade Unions states that the handling of individual complaints, has given rise to problems, even in cases where the trade union can fully support the employee. In most companies the employer-employee relationship has not reached a stage where the submission of grievances without adverse consequences for the worker, can be guaranteed. The workers' apprehensions are a critical factor and the specific cases are very difficult to monitor.

According to information provided by the Federation of Egyptian Industries, there have been cases in the pharmaceutical industry and metal trades (enterprises named) where problems have arisen with respect to the examination of grievances. However, no details were given.

The Free Confederation of Workers of Mauritania states that problems related to the examination of workers' grievances may take different forms. The claimant worker may be deprived of certain responsibilities that give the right to certain privileges (e.g. car or emolument) and will always be discredited. Furthermore, if the individual continues to pursue the matter, there is the risk of dismissal even if the grievances are well-founded.

The Government of the Netherlands states that the Second Chamber of Parliament did not approve the Bill on the Right to Complaint, which had been submitted to Parliament on 17 April 1990. It has been argued that the social partners should assume responsibility for implementing the "right to complaint". The Stichting van de Arbeid, in which employers and workers are represented, has drafted recommendations in this regard and has called on the social partners to include grievance procedures in collective agreements. The Federation of Netherlands Industry and Employers shares the Government's views.

The Government of Thailand reports that workers tend to claim their right to submit grievances to the competent authorities and to the Labour Court, and there have been only a few complaints in this regard.

Paragraph 58 of the Declaration

Question

(1) Are there any particular problems in the setting up and/or functioning of voluntary conciliation machinery as presented above? If so, please explain.

Answers

No particular problems were identified by the following respondents:

Governments of: Antigua and Barbuda, Australia, Bahamas, Bangladesh, Barbados, Brazil, Cambodia, Colombia, Costa Rica, Czech Republic, Ecuador, Estonia, Ethiopia, Finland, Germany, Grenada, Indonesia, Ireland, Italy, Japan, Jordan, Republic of Korea, Kuwait, Malaysia, Mauritius, Mexico, Namibia, New Zealand, Nicaragua, Nigeria, Norway, Singapore, Slovenia, Spain, Syrian Arab Republic, Thailand, Trinidad and Tobago, Tunisia, Turkey, United Kingdom, United States, Uruguay, Venezuela, Zimbabwe

Employers' organizations: Bangladesh Employers' Association, Barbados Employers' Confederation, National Association of Manufacturers (Colombia), Dominica Employers' Federation, Federation of Egyptian Industries, Employers' Confederation of Service Industries (Finland), Confederation of Finnish Industry and Employers, General Confederation of Industry (Italy), Amman Chamber of Industry (Jordan), Korea Employers' Federation, Federation of Luxembourg Manufacturers, General Confederation of Employers of Mauritania, Mexican Confederation of Chambers of Industry, New Zealand Employers' Federation, Nigeria Employers' Consultative Association, Confederation of Norwegian Business and Industry, Employers' Federation of Pakistan, St. Vincent Employers' Federation, Central Union of Swiss Employers' Association, Chamber of Industry (Syrian Arab Republic), Employers' Consultative Association of Trinidad and Tobago, Confederation of British Industry, Venezuelan Federation of Chambers of Commerce and Manufacturers' Associations, Employers' Confederation of Zimbabwe

Workers' organizations: Confederation of Independent Trade Unions (Luxembourg), Malaysian Trades Union Congress, Nigeria Labour Congress, Federation of Commerce, Transport and Food Industries Workers' Union (Switzerland), Confederation of Turkish Trade Unions

The Government of Argentina states that the information contained in its reply to the fifth survey is still applicable.

The Barbados Workers' Union states that voluntary conciliation services are provided by the Ministry of Labour. While access to these services poses no problems, there are delays in organizing meetings, largely because of the shortage of staff.

According to the Single Central Organization of Workers there is no mechanism for voluntary conciliation in Brazil. Intervention by the legal authorities in labour disputes is always to the disadvantage of workers. In the event of strikes, workers are threatened with imprisonment and ordered to end the strikes.

The Government of Canada and the Government of the Province of Quebec report that their replies to the last survey are still applicable.

The Government of Chad reports that there is no voluntary conciliation machinery, but other legal procedures for settling disputes exist.

The Government of Chile reports that the mediation and arbitration procedures prescribed by law have been hardly used. Reforms have therefore been proposed to enable the Labour Inspection Services to use conciliation machinery for settling disputes that arise in the course of collective bargaining.

The General Confederation of Democratic Workers reports that there have been problems in the setting up and functioning of voluntary conciliation machinery in Colombia.

According to the Czech and Moravian Chamber of Trade Unions, industrial tribunals and conciliation machinery do not exist and this has an impact on dispute settlement in both national enterprises and MNEs. Trade unions offer legal protection and support to their members, as well as representation in the event that cases are taken to the legal authorities.

The Government explains that there is no voluntary conciliation machinery in Hungary, and no provision for dispute settlement by arbitration. The labour regulations provide for the settlement of disputes by the Labour Court. The Interest Coordinating Council is developing proposals for the establishment of dispute settlement mechanisms, including conciliation services.

The Government of Kuwait states that the labour legislation provides for the settlement of collective disputes in private enterprises. Direct negotiations are held with a view to concluding an agreement, which is then registered at the Ministry of Social Affairs and Labour, and considered as constituting part of special labour regulations. If a settlement is not reached, the matter is brought to a conciliation committee and the resultant agreement is also registered at the Ministry. If all these efforts fail, the dispute is referred to an arbitration committee which may impose its decision. The institution of an appeals procedure within a labour arbitration council, is being considered.

The Free Confederation of Workers of Mauritania reports that applying a voluntary conciliation mechanism still gives rise to serious problems as employers are often not inclined to use such a mechanism. Many enterprises refuse the election of shop stewards who have the legal mandate to solve certain labour problems. Furthermore, management "very seldom" accepts voluntary conciliation mechanisms.

The Government of the Netherlands reports that its reply to the last survey is still valid. The Federation of Netherlands Industry and Employers agrees with the Government.

According to the Independent Self-Governing Trade Union "Solidarno" (Poland), problems in the setting up and functioning of voluntary conciliation machinery are more likely to occur in the case of enterprises with relatively small-scale operations than in larger enterprises which tend to accord great importance to their reputation.

By law, collective agreements can provide for the setting up of voluntary dispute settlement mechanisms (e.g. conciliation, mediation or arbitration), reports the Government of Portugal. Under these arrangements, labour disputes other than those related to the implementation of collective agreements, may also be dealt with. However, these procedures have not been established, and the Government does not have the necessary information on the reasons for this. The General Union of Workers confirms that there is no bipartite voluntary conciliation machinery in Portugal, but adds that there is dialogue between unions and management with a view to settling disputes through conciliation.

The Government of Sri Lanka reports that problems associated with the setting up of a voluntary conciliation mechanism stem from the following: the non-recognition of trade unions which leaves workers without effective representation; the lack of institutionalized procedures governing negotiation; and the absence of established grievance procedures which could serve as a basis for developing voluntary conciliation machinery.

According to the Government of Swaziland, workers' representatives, as well as employers, have access to voluntary arbitration. The only constraint is the financial ability to acquire this service. So far, conciliation services are free.

According to the Government of Zambia, voluntary conciliation machinery has not yet been set up, because it is not considered to be appropriate under prevailing conditions. The Industrial and Labour Relations Act provides for the settlement of collective disputes, through a Conciliator or by a Board of Conciliation.

Part II

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