Sixth Survey on
the Effect Given to the Tripartite Declaration of Principles
concerning Multinational Enterprises and Social Policy
(1) Are the principles of Conventions Nos. 87, 98, 111 and 122 and
Recommendations Nos. 111, 119 and 122 applied by the government?
(2) Have consultations been held between multinational enterprises and government and/or
national employers' and workers' organizations concerned, in order to harmonize the
activities of MNEs with the development priorities and social aims of the host country? If
not, why not?
Antigua and Barbuda, Argentina, Australia, Austria, Bahamas, Bangladesh, Barbados, Belgium, Brazil, Cambodia, Canada, Chad, Chile, China, Colombia, Costa Rica, Czech Republic, Dominica, Ecuador, Egypt, Estonia, Finland, France, Gabon, Germany, Grenada, Hungary, India, Ireland, Italy, Japan, Jordan, Kuwait, Luxembourg, Malaysia, Mauritania, Mauritius, Mexico, Namibia, Netherlands, New Zealand, Nicaragua, Nigeria, Norway, Pakistan, Poland, Portugal, Romania, St. Vincent, Slovakia, Slovenia, Spain, Sri Lanka, Swaziland, Switzerland, Syrian Arab Republic, Thailand, Trinidad and Tobago, Tunisia, Turkey, United Kingdom, United States, Uruguay, Venezuela, Zambia, Zimbabwe.
The Government of Antigua and Barbuda reports that the principles of all the Conventions and Recommendations mentioned are applied. The industrial relations system facilitates the application of the Tripartite Declaration. However, there is still need for MNEs to consult with the Government and the social partners in order to harmonize their activities with the country's development priorities and objectives.
The Government of Argentina states that the information contained in its reply to the fifth survey is still applicable.
The Government of Australia reports that the principles of the instruments mentioned are fully reflected in national and state laws. For example, those pertaining to Conventions Nos. 87, 98 and 111 and Recommendations Nos. 111 and 119 are incorporated in the Queensland Industrial Relations Act 1990 and the Discrimination Act 1991 of the Australian Capital Territory (ACT). However, the legislation of the ACT contains no specific provisions relating to the principles of Convention No. 122. As regards New South Wales, special consultations of the kind referred to are not held, and they are not considered necessary since MNEs operate in the same way as local companies and are subject to the same laws. In the ACT, representatives of MNEs hold consultations with those of the local business community to ensure that their activities are in line with national laws as well as specific legislation and social policy objectives of the ACT.
The Government of Austria states that its reply to the last survey is still applicable and that in 1994 and 1995 it provided the relevant ILO committees with information on the application of the Conventions mentioned.
The Government of the Bahamas states that the Investment Authority generally informs MNEs of national policies and practices at the start of their operations.
The Government of Bangladesh states that the country has ratified Conventions Nos. 87, 98 and 111. Although Convention No. 122 has not yet been ratified, the Government has been consistent in pursuing a policy that fully respects the principles of the Convention. The labour laws are applicable to all enterprises including MNEs. Issues relating to the formulation and implementation of labour laws are discussed in meetings of the National Tripartite Consultation Committee in whichrepresentatives of MNEs participate, thereby paving the way for the harmonization of their activities with the development priorities and socio-economic objectives of the country. The observations made by the Bangladesh Employers' Association are similar to the Government's.
The Government states that the principles of the instruments cited are applied in Barbados. The Barbados Investment and Development Corporation and the Ministry of International Business are involved in consultations with MNEs at all times. In addition, MNEs usually consult with the recognized trade union body. The Barbados Employers' Confederation indicates that consultations are held between the parties concerned. Persons establishing businesses in Barbados are made aware of the national labour and fiscal laws and the penalties imposed if they are not respected. It is therefore not necessary to duplicate efforts by having specific consultations on these issues. The Barbados Workers' Union reports that the principles of the Conventions and Recommendations mentioned are applied in Barbados. However, no consultations are held between MNEs, the Government and national employers' and workers' organizations.
The Government states that Belgium has ratified all the Conventions and submits regular reports to the ILO as requested. Consultations on social and economic matters take place through organizations representing the interests of all concerned. Participation in these bodies is open to MNEs on the same basis as national enterprises.
The Government notes that there are in Brazil several institutionalized arrangements to facilitate consultations between the Government and enterprises, including MNEs. These arrangements, which exist at the sectoral, local, regional and national levels, make it possible to discuss the ways in which MNEs' activities could be harmonized with the country's social and economic objectives. There are MNEs which belong to industry associations (e.g. the National Association of Automobile and Motor Vehicle Manufacturers (ANFAVEA)) which provide fora for discussing such issues. The Single Central Organization of Workers notes that Brazil has not ratified Convention No. 87. While Convention No. 98 has been ratified, the national legislation has not been brought into line with the principles of this instrument. Recommendations Nos. 111, 119 and 122 are not implemented. Industrial disputes are not dealt with satisfactorily (e.g. the May 1995 oil workers' strike) and workers have had to submit complaints to the ILO in this regard. There have never been consultations involving the Government, workers and MNEs, and as a result there are growing difficulties in defining common social objectives. Consultation mechanisms are not effective.
The Government of Cambodia reports that the principles of Conventions Nos. 87 and 98 are embodied in the draft Labour Code, the enactment of which is being considered. Convention No. 122 was ratified in 1971. MNEs consult the Government and social partners to harmonize their activities with the country's development priorities and social aims.
All the Conventions and Recommendations mentioned are applied, states the Government of Canada. As regards consultation, the Department of Foreign Affairs and International Trade holds discussions with representatives of the business community through 16 Sectoral Advisory Groups on International Trade and four International Trade Advisory Committees. Talks are also held on an ad hoc basis between government officials, members of the Canadian Chamber of Commerce, the Canadian Council for International Business and other sectoral bodies. There is evidence that MNEs are becoming increasingly conscious of the interests and reactions of consumers at all levels with regard to the policies and initiatives of enterprises. As a result, consultations are being held with groups representing those interests. The Government of the Province of Quebec confirms that the ILO instruments mentioned, are fully respected. Referring to Convention No. 122 and its related Recommendation, it points out the main changes in the area of labour market policy. These are: the obligatory contribution of 1 per cent of an enterprise's wage bill to training; the harmonization of manpower development programmes; the adjustment and reduction of working time; the decentralization of employment policy and the development of an apprenticeship system that is integrated with the school teaching system. Since 1991, the strategy has been to bring together decision-makers from all major industries for consultations on a wide range of economic questions. MNEs are represented in the different committees that focus on diverse sectors.
Conventions Nos. 87, 98 and 111 have been ratified and their principles are implemented, reports the Government of Chad. Because of the difficult economic situation which the country is experiencing, the ratification and application of Convention No. 122 are not possible at this time. There have been no consultations between MNEs, Government and the social partners.
The Government notes that the ILO instruments mentioned are fully applied in Chile. The Bill to strengthen the right to organize and bargain collectively is designed to extend collective bargaining rights to all legally constituted trade unions, to increase their bargaining power, to upgrade the technical aspects of the bargaining process and to protect workers involved in such negotiations. The Bill to broaden the authority of the Labour Administration is intended to guarantee workers' rights particularly as regards security of employment, unionization and collective bargaining. All enterprises, including MNEs are subject to national labour laws and policies. The Ministry of Labour facilitates regular consultations between organizations representing employers and workers, with the aim of harmonizing the country's policies with those of different sectors of society. MNEs are also involved in such consultations.
The Government of Colombia reports that the fundamental principles of Conventions Nos. 87 and 98 are enshrined in section 38 of Act 50 (1990) which amends section 353 of the Labour Code. Labour administration procedures are set out in Decree 2145 (1992) and Decree 1741 (1993) and enforced by the competent authorities. There are laws and policies for furthering the goals of Conventions Nos. 111 and 122. Consultations have been held with the office that deals with matters relating to MNEs and these enterprises are required to carry out their activities in ways that are compatible with the country's development priorities. The National Association of Manufacturers states that the standards contained in ratified ILO instruments are respected by MNEs, since they are incorporated in national legislation which applies to all enterprises in Colombia. There is no mechanism for consultations before MNEs begin their operations. However, over the years, ministers of foreign affairs and ambassadors have often held meetings with prospective investors to discuss, inter alia, social and labour practices. The General Confederation of Democratic Workers recalls that Act 50 (1990) and the Labour Code of Colombia contain standards relating to freedom of association and collective bargaining. However, they are not properly enforced and the trade union movement remains weak. As regards Convention No. 111, there is on the whole no discrimination in respect of employment. Unemployment is on the rise as a result of economic liberalization policies. In an endeavour to counteract this, micro-enterprises are being promoted, but the desired results are not being attained because of the adverse effects of liberalization. Other measures being promoted are temporary work, home work and hiring on a fixed-term basis.
The principles enunciated in all the instruments mentioned are applied in Costa Rica, reports the Government. Consultations of the kind referred to are carried out through the employers' organizations, to which MNEs belong, as well as with the competent authorities. It is also common practice for senior government officials to meet on an individual basis with representatives of MNEs.
The Government of the Czech Republic points out that the principles embodied in the Conventions cited are promoted and applied. Those contained in Conventions Nos. 87, 98 and 111 are enshrined in the Constitution. All citizens have recourse to legal action if their rights have been violated or denied. Conventions Nos. 111 and 122 have been ratified and reports on the application of the latter were submitted to the ILO in 1993 and 1994. The fact that the average rate of unemployment has not exceeded 4 per cent during the period under review attests to the success of the Government's employment policy. Consultations between the Government and MNEs on development priorities and social aims were held during the initial stages of negotiations when a number of foreign companies acquired stakes in SOEs. The Government took account of, and examined the capacity and willingness of foreign investors to promote the objectives of the economic reforms. So far there has been no need to initiate further consultations with MNEs. The Czech and Moravian Chamber of Trade Unions (MK OS) reports that the principles of the instruments mentioned are generally respected and the provisions of Convention No. 87 are reflected in the national laws. None the less, there have been problems as regards their implementation. The opinions and attitudes of non-governmental organizations and trade unions are not usually taken into account, and MK OS believes that this situation is also influencing the behaviour of MNEs. The right of workers to organize and bargain collectively is being breached by domestic companies, and in more subtle forms, by MNEs. Several factors limit the effective involvement of trade unions, minimize possibilities for union eaders to function in the workplace, and render communication with top management difficult. These include: the refusal to supply basic economic information necessary for collective bargaining; dissuasion of middle management personnel from joining unions; and the use of wages and other incentives to reduce the interest in union membership. The amendment of Law No. 92/1991 concerning major privatization removed the right of unions to be informed about privatization projects and the entry of foreign investors. Since government policies on industrial and regional development and on matters relating to the environment "do not, in essence, exist", there is no real basis for negotiations with MNEs as regards the harmonization of their policies with national development priorities and social goals. The tripartite Council for Economic and Social Agreement (CESA), which had been active from the start of the economic transition process, was weakened after the suspensionof social dialogue at the end of 1994, when the unions contested the implementation of social reforms on the grounds that they did not correspond to the "concept of reform" on which there had been a consensus. The CESA has since become the Council for Dialogue between Social Partners, and in the opinion of the MK OS the Government no longer has the will to engage in a broad social dialogue.
Dominica has ratified Conventions Nos. 87, 98 and 111. The Dominica Employers' Federation states that the principles of both ratified and unratified Conventions, and all the Recommendations, are applied. Its reply to the fifth survey as regards consultations still applies.
The Government reports that Ecuador has ratified Conventions Nos. 87, 98, 111 and 122, and they are fully applied. Foreign investment is to fulfil the objectives of the Government's Development Agenda (Agenda para el Desarrollo), and enterprises are expected to contribute to this. No distinction is made between national and multinational enterprises. They are given equal treatment and must respect the same laws. Non-local enterprises must comply with the laws governing the establishment of foreign enterprises (several provisions of the Companies Act are cited to demonstrate some of the requirements for setting up and operating business in the country).
The Government states that Egypt applies the general principles embodied in the ILO instruments mentioned. Information provided through the Federation of Egyptian Industries shows that while certain enterprises in the pharmaceutical and metal trades (names given) consult with the government and employers' and workers' organizations, to harmonize their activities with the country's development objectives, there are other pharmaceutical enterprises which do not.
The Government reports that Estonia ratified Conventions Nos. 87 and 98 on 4 October 1993.Preparations are under way for the ratification of Convention No. 111 and this will be followed by action relating to Convention No. 122. Estonia has no experience with consultations between MNEs and Government or employers' and workers' organizations. This may be because consultations are not considered to be the main priority in efforts to promote development.
The Government points out that Finland has ratified all the Conventions mentioned and applies the principles of the corresponding Recommendations. There has been no particular need for the kind of consultations mentioned, since the Council of State has set up an Economic Council which is chaired by the Prime Minister. The members include the Minister of Labour and representatives of employers' and workers' organizations. Through their organizations, it is possible for MNEs to participate in discussions concerning national development. The preparation of OSH legislation is always based on the principle of tripartism. Significant issues are debated in the Finnish National Committee for Labour Protection in which the relevant authorities and organizations, as well as the most representative employers' and workers' organizations, take part. There is a tripartite Council for Labour Affairs, which functions as an advisory body to the Ministry of Labour on labour market and employment policy matters. The Confederation of Finnish Industry and Employers and the Employers' Confederation of Service Industries report that Finland has ratified the Conventions in question, and the principles outlined in the Recommendations mentioned are also taken into account. As far as they are aware, consultations of the kind mentioned have not taken place, since there has been no need for them. 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) report that the principles of the Conventions and Recommendations cited, have, by and large, been applied by the Government. As regards Convention No. 122, they note that unemployment has remained at unprecedented high levels throughout the reporting period, during which it reached a high of 20 per cent. A more active employment policy would seem to have been warranted. The current Government, which took office in the spring of 1995, cooperates closely with the social partners. Consultations between employers' and workers' organizations and the Government have not focused on the subject of MNEs apart from the question of information and consultation arrangements.
The National Council of French Employers states that the provisions of Conventions Nos. 98, 111 and 122 are applied through the national laws in which they are incorporated. As regards the termination of employment at the initiative of the employer, this is governed by the relevant laws and the regulations that have been "enhanced" by the provisions of collective agreements. The national legislation does not distinguish between enterprises on the basis of their origin. The Labour Code guarantees freedom of association and the protection of trade union rights. This is complemented by a national interprofessional agreement on trade union rights (3 June 1968) and the provisions of specific enterprise-level agreements.
The Government reports that Gabon has ratified all the Conventions mentioned except Convention No. 122. The principles contained in all the instruments are implemented to the greatest extent possible. Consultations have taken place in order to harmonize MNEs' activities with Gabon's development policies and social aims. There have been, for example, consultations for the drawing up of sectoral collective agreements, negotiating agreements for the establishment of enterprises and for wage negotiations in bipartite committees. While the Gabonese Confederation of Free Trade Unions acknowledges that the principles contained in the Conventions and Recommendations are generally recognized, it questions whether they are in effect implemented by the Government. Two reasons are given: first, the texts concerning the application of these principles are in contradiction with the new Labour Code, and secondly, employment promotion policy is virtually non-existent. It notes that only 3,000 new jobs have been created through the Employment Office while 70,000 persons are without jobs. If MNEs have consulted with the Government as regards Gabon's development policies and social aims, the workers' organizations were not involved.
The Government of Germany notes that its reports to the relevant ILO committees on the application of Conventions Nos. 87 and 98 should be referred to. It says that it has no information on consultations held with MNEs in order to harmonize their activities with national objectives and priorities.
The Government of Grenada replies in the affirmative and adds that it has ratified Conventions Nos. 87 and 98. No consultations have been held to harmonize MNEs' activities with the development priorities and social aims of the country.
The Government states that Hungary has ratified and applies the Conventions mentioned. MNEs regularly consult with the competent authorities prior to making their initial investment in order to familiarize themselves with Hungarian regulations. They also consult with the Association of MNEs and trade union officials. The National Confederation of Hungarian Trade Unions, the National Federation of Workers' Councils and the National Federation of Autonomous Trade Unions state that certain trade unions (i.e. the Union of Chemical Workers, and the Railway Workers' Union) had initiated consultations with MNEs in cases where the potential Hungarian partner had failed to do so. Most MNEs are amenable to these discussions even in cases where the parent companies may refuse to negotiate with the unions.
The Government states that India has ratified Convention No. 111, but not Conventions Nos. 87, 98 and 122. However, on the whole, the provisions of these Conventions as well as the Recommendations mentioned are taken into account. Consultations between MNEs, Government and/or national employers' and workers' organizations have not taken place on a regular basis.
Ireland has ratified Conventions Nos. 87, 98 and 122. These instruments and their corresponding Recommendations are implemented. Ratification of Convention No. 111 is being considered, reports the Government. Consultations of the kind referred to are not needed because MNEs' policies are compatible with the country's development priorities and social aims.
The General Confederation of Industry (Italy) indicates that the Government applies the principles embodied in the instruments mentioned. MNEs consult with the Government as well as with employers' and workers' organizations to harmonize their activities with the country's development priorities and social aims
The Government states that steps are taken to make sure that all ILO Conventions ratified by Japan are respected. The Japan Federation of Employers' Associations (NIKKEIREN) refers to the Guidelines for Overseas Direct Investment (Kaigai Tshi Kd Shishin) which urge Japanese MNEs to take into account the culture and welfare of host countries in the course of their activities, and to make efforts to participate in local employers' organizations.
The Government states that Jordan has ratified Conventions Nos. 98, 111 and 122. Even though Convention No. 87 has not yet been ratified, the legislation is in keeping with its principles. Legislation governing the country's economic activities provides for the type of dialogue and consultations mentioned, in order that MNEs' activities could be harmonized with the country's development priorities and social aims. According to the Amman Chamber of Industry, MNEs in Jordan abide by the national laws and regulations. There have been no doubts about the compatibility of MNEs' activities with the Government's economic plans. However, they are frequently reminded of the need to provide appropriate training and career opportunities in order that their employees acquire the competence necessary to assume managerial responsibilities.
The Government states that Convention No. 122 has been ratified by the Republic of Korea. Frequent consultations are held at the level of local and central governments in order to harmonize MNEs' activities with national policies. The Korea Employers' Federation reports that the general principles of the instruments cited are applied through the relevant national legislation. However, freedom of association and protection of the right to organize are restricted in the Trade Union Act. An organization is not authorized by law if its membership is the same as that of an existing trade union, or if the purpose of its activities is to obstruct the normal operation of an existing trade union. Consultations have been held between the Government, MNEs and employers' organizations, in order to harmonize MNEs' activities with the country's development priorities and social aims.
The Government reports that Kuwait applies the principles contained in Conventions Nos. 87 and 111 which have been ratified, as well as those in Recommendations Nos. 111 and 119.
According to the Federation of Luxembourg Manufacturers, all enterprises endeavour to apply good social practices and MNEs respect fully the country's social aims. The Confederation of Independent Trade Unions reports that Luxembourg has not yet ratifed Conventions Nos. 111 and 122.
The Government reports that Malaysia has ratified Convention No. 98 and the principles embodied therein are adhered to and enunciated in its national policies which apply to both local enterprises and MNEs. The salient features of the other Conventions and Recommendations cited have also been incorporated into the national legislation, where relevant. The 1967 Industrial Relations Act (IRA) protects the rights of workers, employers and trade unions, and it regulates collective bargaining, according to the provisions of Convention No. 98. Freedom of Association, which is guaranteed by Article 10(1)(c) of the Federal Constitution, is "subject to restrictions imposed by any law relating to labour or education". The existing national tripartite machinery provides a forum for consultations. The relevant authorities have also had discussions and consultations with MNEs. The Malaysian Trades Union Congress reports that the principles of Conventions Nos. 87, 111 and 122, which have not been ratified by Malaysia, are not fully applied by the Government. The national legislation is not consistent with the principles of Article 4 of Convention No. 98, which has been ratified by Malaysia. For example, section 13(3) of the 1967 Industrial Relations Act imposes limitations on matters that can be subject to collective bargaining; and prohibits collective agreements from including provisions that are more favourable than those in Part XII of the Employment Act 1955 (section 55 of the IRA 1967) on matters relating to rest days, hours of work, holidays, annual leave, and sick leave. Section 52 of the IRA imposes restrictions on the right to bargain collectively for certain public sector employees. Even though freedom of association is guaranteed by the Constitution, and by specific provisions of the 1959 Trade Unions Act, an application from employees in the electronics industries to form a national union was rejected, and permission was given instead for the formation of in-house or enterprise unions. Applications from unions in the statutory authorities to form a federation have also been rejected. Consultations on matters relating to industrial development have taken place between MNEs and the Government, but workers' organizations were not included.
The General Confederation of Employers of Mauritania reports that except for Convention No. 98, all the Conventions have been ratified. Efforts to harmonize the activities of MNEs with government policies are negligible because of the small number of subsidiaries of MNEs in the country (names given). The Free Confederation of Workers of Mauritania reports that the Government does not apply any of the principles contained in the Conventions and Recommendations, and particularly Conventions Nos. 87 and 98. MNEs do not consult with the Government or the organizations of employers or workers, largely because of the Government's antipathy to social dialogue and trade unions.
The Government of Mauritius reports that it has ratified only Convention No. 98. Except for Article 2 of the Convention, which protects workers' and employers' organizations from any acts of interference, the other provisions of the Convention are fully complied with. Though there have not been any acts of interference, specific provisions in this regard have now been inserted in the Trade Unions and Labour Relations Bill which is still under consideration by Government. As regards Conventions Nos. 87, 111 and 122, and Recommendations Nos. 111, 119 and 122, fundamental civil liberties and the freedom of assembly and association are guaranteed under the Constitution. The Industrial Relations Act also provides basic protection for freedom of association and the right to organize. As regards article 4 (dealing with dissolution and suspension of workers' and employers' organizations), the constitutionality of any law dissolving or suspending employers' and workers' organizations can be challenged before the Supreme Court. However, for reasons of public safety and public order, the fire service personnel and the prison staff do not, under the Industrial Relations Act, enjoy the right to establish or join organizations for promoting their occupational interests. Government is seriously considering ratification of Convention No. 87 and will do so after amending the law, to cater for fire service personnel and prison staff. A policy for the promotion of equality of treatment in employment is already being pursued. However, one major drawback is that there is no national authority to monitor the implementation of such a policy, and to ensure its observance in relation to vocational guidance, vocational training and placement services. This issue will be considered in the overall review and formulation of a new Labour Act. Legislation to implement a policy of equal opportunity in employment and education is being envisaged and an Equal Opportunities Commission will be created to eradicate discriminatory practices in employment. A Sex Discrimination Bill will be introduced in the National Assembly to protect the rights of women at the workplace. The 1975 Labour Act regulates the termination of employment in the private sector and the 1973 Industrial Relations Act, which covers both the private and public sectors, gives adequate protection to workers against dismissal for reasons of union membership or participation in union activities. Protection against dismissal on grounds of race, colour, religion or political opinion is guaranteed under the Constitution which, inter alia, safeguards freedom of association, freedom of expression and freedom of conscience. Workers are entitled to proper notice of termination of employment. However, they may be deprived of that right in the event of misconduct, where the employer cannot in good faith, take any other course of action except dismissal, after having afforded the workers concerned, an opportunity to answer charges levelled against them. Workers who feel that their employment has been unjustifiably terminated may appeal to the Industrial Court. Workers whose employment has been terminated are entitled, except in cases of misconduct, to severance pay. The Act provides protection against unjustified termination, prescribes payment of severance allowance and also covers termination of employment as a result of reduction of the workforce. However, the Labour Act does not require consultation with workers' representatives in the event of workforce reduction, nor does it provide for priority of re-engagement of those redundant workers, when the employer starts recruiting. Sustained government efforts have resulted in full employment and at present, the development of skills and upgrading of social and economic infrastructure, constitute the priorities.
MNEs, like domestic enterprises in Mexico, must respect the national Constitution, the Federal Labour Act and all other laws and regulations in force, reports the Government. Freedom of association and the right to organize are guaranteed by the Federal Labour Act. Mexico has ratified Conventions Nos. 87 and 111. Their provisions, together with those of Conventions Nos. 98 and 122 are reflected in national law and practice. There is a National System of Democratic Planning (Sistema Nacional de Planeación Democrática) which provides for consultations on economic and social matters to be held with different groups of society. When the National Development Plan 1995-2000 was being elaborated, organizations representing both sides of industry, peasant communities, academic, professional and research institutions as well as the general public, held discussions in Consultation Fora (Foros de Consulta). At the initiative of the Confederation of Mexican Workers (CTM) and the Employers' Council of the Republic of Mexico (Consejo Patronal de la República Mexicana, COPARMEX) in September 1995, the labour authorities began talks with different employers' and workers' organizations on subjects relating to the development of a new work culture in the country. After nine months of work, the committee that was set up to analyse different aspects of this question received proposals that focused on the following: the creation and protection of jobs; improvement of workers' living standards; and the need to cultivate new values as regards work, solidarity, honesty, competitiveness, quality and discipline. Proposals for action to be taken in the short, medium and long term were also forthcoming. The Mexican Confederation of Chambers of Industry notes that all enterprises, including MNEs, must respect the national laws which incorporate the principles of the ILO Conventions mentioned and their corresponding Recommendations. Employers, workers and the competent authorities have cooperated in social security and training activities in the in-bond industries (maquiladoras) which have a significant workforce. The Confederation of Mexican Workers concurs with the Government.
The Government reports that Namibia has not ratified Conventions Nos. 111 and 122 but it applies the principles of the Conventions and Recommendations mentioned, as well as those of Conventions Nos. 87 and 98 which have been ratified. Consultations have been held between MNEs and the Government in order to harmonize MNEs' activities with the country's development priorities.
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's statement.
The Government reports that New Zealand has ratified Conventions Nos. 111 and 122 and details concerning their application have been given in reports submitted under article 22 of the ILO's Constitution, for the periods July 1994-June 1995 and July 1992-June 1994, respectively. Conventions Nos. 87 and 98 have not yet been ratified. Even though the Employment Contracts Act has removed barriers to the ratification of these Conventions, the ILO's Committee on Freedom of Association has identified the prohibition of multi-employer strikes as being inconsistent with these instruments. The Government considers this provision to be necessary to protect employers' freedom of association, so that they are not compelled to be bound by arrangements with other businesses with which there may be competing interests. MNEs are governed by the national laws and regulations in all domains. There are no formal requirements for MNEs to hold consultations with the Government and the social partners, to harmonize their activities with the country's development priorities and social objectives. However, the parties are free to hold discussions on any issue of their choice. The New Zealand Employers' Federation concurs with the Government.
The principles of the instruments mentioned are incorporated in the national Constitution and otherlegislation which are respected, reports the Government. Nicaragua has ratified Conventions Nos.87, 98, 111 and 122.
The Government of Nigeria states that MNEs are required under the 1990 Companies and Allied Matters Act, to register with the Corporate Affairs Commission. They have the same status as national companies and are bound by national legislation where applicable. To a large extent, the principles of ILO Conventions Nos. 87, 98, 111 and 122 are respected and applied by the Government. There are mechanisms for consultation involving MNEs and Government and/or the national employers' and workers' organizations concerned. These arrangements are not effectively utilized by the Government. Conventions Nos. 111 and 122 have not been ratified. The Nigeria Employers' Consultative Association makes the same observations as the Government. The Nigeria Labour Congress states that the principles of Conventions Nos. 87, 98 and 122 are being applied. Nigeria has yet to ratify Convention No. 111. Consultations have been held between MNEs and Government, but not between MNEs and labour, because neither of the parties has taken the initiative to do so.
The Government reports that all the Conventions specified in these paragraphs have been ratified by Norway. The activities of both MNEs and national enterprises are regulated by national legislation that reflects the principles of the Declaration and therefore, there is no need for any regulation specific to MNEs. Norwegian legislation guarantees employees' participation in enterprise-level decision-making on matters affecting them. Furthermore, in order to ensure that the country's social aims are respected, laws such as the 1977 Act respecting Workers' Protection and the Working Environment, have been passed. Their aim is to improve labour-management cooperation, to protect workers in the event of collective redundancies and to ensure that changes in ownership do not adversely affect employees. The purpose of the Act is, inter alia, to protect workers and enable the establishment of bipartite committees in companies with at least 50 employees. Employers and workers are equally represented in these bodies. It also provides for consultations between the employer and the elected workers' representatives in the event of management decisions that may have a negative impact on workers -- e.g. in the event of a transfer of operations or collective redundancies. Such consultations take place before any final decision is implemented. The Confederation of Norwegian Business and Industry concurs with the Government.
The Government reports that Pakistan has ratified Conventions Nos. 87, 98 and 111. The principles of the Universal Declaration of Human Rights, as well as the ILO's Constitution, and ILO instruments are also respected. Periodic consultations take place between MNEs and relevant government departments to harmonize MNEs' activities with the country's development priorities and social aims. The Employers' Federation of Pakistan (EFP) reports that Pakistan has ratified Conventions Nos. 87, 98 and 111 and that the principles embodied in them and in the related Recommendations are applied. No formal tripartite consultations have been held, but there have been informal dialogue and negotiations in order to harmonize MNEs' activities with national development priorities. The EFP adds that it "is an undisputed fact that the MNEs have not only contributed to the economic and employment sectors of the country but have set high standards of social conditions for their workers".
According to the Government of Poland, contracts concluded between foreign investors and the Ministry of Industry and Trade contain provisions to ensure that the future activities of MNEs conform to the State's general industrial policy guidelines. According to the Independent Self-Governing Trade Union "Solidarno" the principles of the instruments cited are not applied by the Government of Poland. As regards consultations, large MNEs, which attach great importance to their reputation (examples cited by name), tend to respond positively to calls by trade unions for consultations on different matters.
Portugal has ratified all the Conventions mentioned. The national legislation which incorporates their principles and those of the corresponding Recommendations, applies to all enterprises, reports the Government. It draws attention to reports submitted in this regard, to the relevant ILO Committees. Enterprises with foreign participation have been found to show interest in complying with norms regulating the structure, establishment and functioning of workers' organizations. However, there have been difficulties as regards the exercise of trade union activity in MNEs. Union structures are weak, and membership rates are low. This may be attributed to the good working conditions in these establishments. Where workers' committees exist, periodic information and consultation sessions take place. The effectiveness of arrangements through which workers' views and demands are made known to management depends on the characteristics and policies of the enterprise. Those which belong to employers' organizations are bound by the collective agreements concluded by these organizations and trade unions representing workers in a given sector. However, there are some MNEs of considerable size, which have refused to engage in direct negotiations with unions, preferring instead to revise wages and benefits unilaterally, bringing them into line with sectoral collective agreements that have more favourable provisions. According to the General Union of Workers there is no practice of holding either labour-management or tripartite consultations with representatives of MNEs in Portugal.
The Government of Romania indicates that it applies the principles contained in the instruments mentioned. MNEs do not consult employers' and workers' organizations for the purposes mentioned. However, representatives of MNEs have held consultations with the President and Prime Minister. Under the Foreign Investment Act (section 16), Government may propose the granting of additional concessions to investors involved in activities of particular interest to the national economy.
The principles of the instruments mentioned are applied, reports the St. Vincent Employers' Federation. Arrangements for consultations of the kind mentioned, involving employers' and workers' organizations, do not exist to date.
The Government points out that Slovakia applies the principles of Conventions Nos. 87, 98, 111 and 122, which are reflected in the relevant provisions of the Constitution, the Labour and Commerce Codes, laws relating to collective bargaining, employment, and the association of citizens, and other regulations. These Conventions were ratified in 1993. Consultations on national development priorities are held under the aegis of the Council of Economic and Social Agreement of the Slovak Republic. It is a tripartite body. MNEs have the opportunity to participate in these consultations through their membership in employers' organizations.
The Government states that Slovenia has ratified the Conventions mentioned and incorporated their principles in the national legislation. The ILO was informed through the submission of national reports, about the application of these standards. No consultations are held between MNEs and the Government, and/or national employers' and workers' organizations.
The Government of Spain reports that MNEs, like other enterprises, must apply the labour and social security legislation. The ILO instruments mentioned are fully applied and the country has also ratified Convention No. 172 concerning Working Conditions in Hotels, Restaurants and Similar Establishments which was adopted on 25 June 1991. The General Union of Workers (UGT) states that the principles of ILO instruments are incorporated in the National Constitution of Spain as well as other laws, including those pertaining to social and labour matters. While Conventions Nos. 87 and 98 are respected, this is not the case with all other ratified ILO instruments. For example, even though the observance of Convention No. 111 is in principle reinforced through amendments to section 28 of the Workers' Statute in line with EU standards, and also through tribunal decisions, there is still discrimination in employment on the basis of sex. Legal measures need to be complemented by disseminating information to raise awareness and by carrying out inspections on this specific matter. Recent legislation in support of the 1994 labour reforms has adversely affected workers as regards wages. The UGT gives the examples of Act 14/1994 concerning temporary work enterprises and Legislative Decree 18/1993 of 3 December setting out the new arrangements for apprenticeship contracts for young persons between 16 and 25 years. As regards employment policy (Convention No. 122), the Government's action in recent years has not tackled the structural causes of unemployment and the turnover of temporary labour. Instead, it has reduced unemployment benefits, which affects temporary workers who inevitably face periodic unemployment. The implementation of policies for stimulating industrialization, promoting training and reorganizing the labour market has been delayed. As a result, unemployment is almost 25 per cent and precarious employment is on the rise, affecting 35 per cent of the working population. With respect to Recommendation No. 119, the UGT notes that section 52 of the Workers' Statute still makes it possible to dismiss workers because of absence from work even in cases of illness or injury, when the worker has used up 20 per cent of the legally prescribed days within two consecutive months. Workers may be dismissed with the union having no say in the matter. This provision could be considered as being inconsistent with Article 6 of the Convention. Recent legal reforms to facilitate enterprise restructuring have also put jobs and certain guarantees (e.g. relating to dismissed workers), in jeopardy. On the question of consultations, these usually take place when there is a crisis, but not at the time of setting up operations. Whatever consultations investors may have with Government at that stage, the unions are not involved, and those consultations are not the result of a clearly defined industrial policy. They are also not intended to harmonize social objectives with the development of the enterprises' activities. The Government's policy is to favour, within the framework of promoting free enterprise, foreign investment, including through the granting of subsidies. Regional governments can grant fiscal and economic concessions to attract FDI. None the less, a number of enterprises tend to set up business, not in areas that are hardest hit by unemployment, but rather in the more developed districts.
The Government reports that Conventions Nos. 87 and 98 have been ratified by Sri Lanka, and the principles of Conventions Nos. 111 and 122 are satisfactorily reflected in national legislation. The national Constitution guarantees protection against discrimination on the basis of sex, religion, caste, political opinion, etc. The principles contained in Recommendation No. 119 are fulfilled by the provisions of the Termination of Employment Act and the Industrial Disputes Act. Some consultations have been held between employers' organizations (in which MNEs are also represented), and trade unions. The Lanka Jathika Estate Workers' Union reports that Sri Lanka has ratified Convention No. 98 but that in its view, its principles are not implemented through the law. Convention No. 87 was ratified in 1995 and the principle of freedom of association and protection of the right to organize is enshrined in article 14 of the Constitution. However, in section 21(1)(b)(i) of the Trade Unions Ordinance, this right is restricted in respect of trade unions in the public sector. The other two Conventions mentioned have not been ratified.
The Government reports that Swaziland has ratified Conventions Nos. 87, 98 and 111, and that the principles of these instruments are applied. Convention No. 122 (Employment Policy) has not yet been ratified, but since Swaziland respects the Universal Declaration of Human Rights, the principles of the above Convention and the corresponding Recommendation are fully respected. Consultations with national employers' and workers' organizations, as well as with MNEs, are constantly taking place in order to harmonize industrial relations practices and the policies of MNEs with the development priorities and social aims of the country.
The Government refers to previous reports on the implementation of Conventions Nos. 87 and 111 that Switzerland has ratified. The Federal Act on Equality between Men and Women was adopted by Parliament on 24 March 1995. The Act prohibits discrimination with regard to recruitment, assignment of tasks, working conditions, remuneration, promotion as well as termination of employment. Under the Act, cases of discrimination can be reported by competent organizations, and dismissals (as a means of retaliation) may be declared null and void. Swiss legislation takes into account the principles embodied in the Conventions and Recommendations mentioned, to the greatest possible extent, and ratification of Convention No. 98 is being considered. The Central Union of Swiss Employers' Associations reports that Switzerland has ratified Conventions Nos. 87 and 111. Freedom of expression and of association is guaranteed by law and fully respected by both national and multinational enterprises. The Federation of Commerce, Transport and Food Industries Workers' Union (FCTA) states that it is not aware of consultations being undertaken at the national level in Switzerland. Coordination takes place mainly at the level of the international trade secretariats (ITSs) to which FCTA belongs.
The Government states that the Syrian Arab Republic has ratified Conventions Nos. 87, 98 and 111. Their principles as well as those of their corresponding Recommendations are applied. MNEs consult with the Government and with employers' and workers' organizations, in order to harmonize their activities with national development and social policies. The Chamber of Industry (Syrian Arab Republic) concurs with the Government.
National labour legislation applies equally to MNEs and national enterprises and the Government reports that certain principles of all the above-mentioned Conventions are applied in order to meet national social policy objectives. Thailand has ratified Convention No. 122 and has incorporated the principles embodied therein and those in Recommendation No. 122, in the Seventh National Economic and Social Development Plan (1991-1996). Development priorities for this period are: to upgrade the quality of life and the environment and to create employment opportunities for disadvantaged groups through the provision of vocational training and skills development. Special employment promotion measures are under way to reduce the rate of unemployment. These include: increasing the job placement activities of state employment services (total job placements increased from 28,348 persons in 1992 to 216,700 persons in 1995); and promoting vocational guidance for young people (in 1995, 352,134 persons were provided with vocational guidance). The development of SMEs is also being encouraged to provide additional employment opportunities. Occasionally, bipartite consultations are held between the Government and MNEs.
The Government of Trinidad and Tobago replies in the affirmative to both questions, adding that consultations are held on an ongoing basis. The Employers' Consultative Association of Trinidad and Tobago states that the principles of the Conventions and Recommendations mentioned are applied, even though the Conventions have not been ratified by Trinidad and Tobago. There have been no consultations involving MNEs, the Government, and national employers' and workers' organizations, with a view to harmonizing MNEs' activities with the country's development priorities.
The Government reports that Tunisia has ratified all the Conventions mentioned. Their principles are incorporated in the national legislation which is applied. The Tunisian Confederation of Industry, Trade and Handicrafts reports that Tunisia has ratified the instruments mentioned, and that the Government implements the principles contained therein.
The Government states that Turkey has ratified the Conventions cited. Tripartite consultations take place at different levels. In this respect, the Foreign Investment Association can act as a facilitator. MNEs constantly consult with the relevant parties in order to adapt to the country's socio-economic structure and development objectives. Another organization, the Foreign Capital Association (YASED), plays an important role in this area. While MNEs comply with the labour legislation, they basically implement the labour standards of the home country and from time to time make proposals on various subjects. The Turkish Confederation of Employer Associations confirms that MNEs, through constant consultations with the relevant parties, seek to harmonize their activities with the country's socio-economic structure and development objectives. An important role is played by the Foreign Capital Association (YASED). The Confederation of Turkish Trade Unions (TÜRK-IS) contends that the principles of the Conventions mentioned are not applied by the Government. TÜRK-IS has made representation to the ILO under Article 24 of the ILO Constitution as regards the Government's non-observance of Conventions Nos. 87 and 98 and has sent reports to the Committee of Experts concerning Conventions Nos. 111 and 122.
The United Kingdom has ratified Conventions Nos. 87, 98 and 122, reports the Government. There is full commitment to the principles of equality of opportunity and treatment. There are comprehensive laws to combat discrimination on the basis of sex and race, as well as a publicly funded Equal Opportunities Commission and a Commission for Racial Equality. According to the Confederation of British Industry (CBI), MNEs, through their membership in the CBI, play an important role in the development of social policy in the United Kingdom.
The Government notes that the United States endorses the concept embodied in these paragraphs. In the US, domestic and multinational enterprises, as well as workers, generally respect US laws and regulations, give due consideration to local practices, and observe relevant international standards. Although the US has not ratified the Conventions mentioned, its employment policies, laws and practices generally reflect the principles embodied in these instruments and the related Recommendations. The Tripartite Advisory Panel on International Labour Standards (TAPILS), which was set up in 1980, will continue to identify Conventions which should be reviewed for possible ratification. Convention No. 111 is currently being examined while Conventions Nos. 87 and 122 are to be reviewed in the future. The US economy operates on the free market principle under which domestic and foreign firms can respond to the forces of free and open markets when making investment decisions. Under these conditions MNEs have contributed greatly to the US economy. As of the end of 1993, FDI stock in the US totalled $464.1 billion and there were 12,703 subsidiaries of foreign MNEs in the United States. All enterprises are subject to the same laws, regulations and administrative procedures concerning their general conduct and social practices. Problems related to the operations of foreign-owned enterprises have generally not been different from those related to the activities of domestic enterprises. Consequently, the Declaration need not introduce inequalities of treatment between multinational and national enterprises. Such inequalities would in most cases only serve to hinder the operation of the market and the most efficient allocation of investment. The policy is that both foreign and domestic enterprises in the US should promote good social practices in accordance with the principles of the Declaration, the laws, regulations and administrative procedures of the host country and the relevant international standards. The US Government is prepared to consult with other governments when the need arises. The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) is of the view that many features of US labour law and practice violate freedom of association and the right to collective bargaining. These include provisions which allow employers to interfere "often in a very heavy-handed way" in workers' decisions with respect to trade union representation. Notwithstanding the limits set by the National Labor Relations Act (NLRA), employers still have the power to make known to workers "on the job and during working time" their opposition to unionization. In contrast, trade union representatives "do not even have the right to enter the premises and talk with workers". Anti-union activities include the elimination of trade union representation where it already exists, the dismissal of union leaders, and protracted election procedures. The penalties for violations of the law are so minor that they have no dissuasive effect and every year there are about 10,000 "proven cases" of illegal dismissals. As regards coverage of the NLRA, large groups of workers are excluded -- e.g. state and local government employees, agricultural workers, domestic servants and supervisory personnel. For example, state and local government employees in more than 20 states do not have the right to collective bargaining. Only two states (California and Hawaii) have "decent collective bargaining laws for farm workers" and supervisors at all levels do not have the right to organize, nor to refuse to participate in anti-union campaigns. While it is illegal to fire workers for going on strike, it is legal to replace them on a permanent basis for this reason. Other employment-related changes have had the effect of limiting the exercise of the right to organize, while the increase in the number of employees in precarious employment requires new forms of organization which are not currently provided for in the law. As regards subcontracting, there have been cases in which whole units of workers who may have spent long periods organizing into unions were replaced by non-unionized contract workers. The AFL-CIO cites the example of an enterprise in the hotel industry (name given) which dismissed more than 20 workers in June 1995 without prior notice and contracted out the work to low-wage companies. The enterprise refuses to negotiate with the union and the prevailing climate is such that it makes the holding of a free election "virtually impossible". Subcontracting arrangements make it possible for manufacturers to claim that they have no responsibility for the workers who make the products. The AFL-CIO relates the incident of summer 1995, in which a sweatshop producing garments in California was found to be using forced labour. The 72 illegal immigrants were underpaid (e.g. US$1.40 per hour) and compelled to work extremely long hours (e.g. 115 hours per week). It adds that this is just one example of numerous factories of this kind, many of which supply large retailing chains (five examples given by name). In a two-year period (years unspecified) labour officials from the federal and state authorities imposed fines exceeding US$8 million on hundreds of garment companies in the aforementioned state for violating regulations regarding the minimum wage, overtime and the use of child labour. Another development adversely affecting collective bargaining is the closure of enterprises which are subsequently reopened with a non-unionized workforce. If an enterprise is sold, the new owners are not automatically bound by collective agreements concluded under the previous ownership. The National Labor Relations Board is currently challenging what it perceives to be a "built-in double standard in the law", where-by court injunctions can be sought for certain unfair labour practices (including secondary boycotts) on the part of workers, but there is no mandate to take similar action "for even the most serious" unfair labour practices on the part of employers. Congressional efforts to reduce funding for labour inspection and adjudication procedures may erode some recent gains as regards the enforcement of labour legislation. ILO Conventions Nos. 87, 98, 111 and 122 are under review by TAPILS. Most of the issues covered in the Conventions are reflected in US regulations which exceed ILO standards, and therefore the Government is of the view that ratification is not as important as the application of standards. However, the AFL-CIO strongly supports both the ratification and full implementation of these instruments. There are private enterprises in the US which make use of prison labour (names of three MNEs given). Federal law requires that prison authorities consult with local business and unions prior to engaging in these activities, but such consultations rarely take place. While employers must pay the statutory minimum wage, the prisoners receive only a small fraction of that amount, and they get no health or workers' compensation benefits. There are no consultations for harmonizing MNEs' activities with the priorities and social objectives of the country.
Uruguay has ratified the instruments mentioned, reports the Government. The following Acts have been passed in order to promote these Conventions and their corresponding Recommendations: Act No. 12.030 of 27 November 1953 (Conventions Nos. 87 and 98); Act No. 16.063 of 6 October 1989 and Act No. 14.566 of 30 August 1976 (Conventions Nos. 111 and 122 respectively). No consultations have been held with MNEs.
According to the Government of Venezuela the principles contained in the Conventions and Recommendations mentioned, are reflected in the legislation in force and they are applied. There have been consultations between MNEs, the Government and employers' and workers' organizations. According to the Venezuelan Federation of Chambers of Commerce and Manufacturers' Associations, national laws and regulations, local practice and international instruments in the fields of labour and human rights, are fully respected by all the addressees of the Tripartite Declaration. Consultations of the kind referred to have been held between MNEs, the Government and organizations representing the social partners.
According to the Government, Zambia has ratified Conventions Nos. 111 and 122 and all national labour policies and legislation will be made compatible with the principles and objectives of these instruments as well as the others mentioned. MNEs and national enterprises are treated in the same way when it comes to the application of laws and regulations. Regular consultations between the Government and MNEs take various forms, with the latter usually being represented through organizations such as the Zambia Federation of Employers and the Zambia Chamber of Commerce and Industry. The aim is to strengthen relations and make MNEs' activities compatible with national economic and social priorities. Employers' and workers' representative organizations are also consulted on matters relating to the application of the principles of the Conventions referred to. However, the workers' organizations do tend to complain that the Government does not regularly seek their views on issues. Under the Industrial and Labour Relations Act No. 27 of 1993, there is a Tripartite Consultative Labour Council which consists of an equal number of members representing the Government, employers and workers. The Council meets at regular intervals (at least twice annually) to consult and advise the Government on all labour-related issues, including the use and development of human resources.
The Government states that Zimbabwe applies the principles of the instruments cited, despite the fact that the Conventions have not yet been ratified. The tripartite partners have all agreed to ratification, and efforts are being made to do so during 1996. Meanwhile, the national Constitution and the Labour Relations Act as amended, reflect the principles embodied in the Conventions. Investment by MNEs is handled through the Zimbabwe Investment Centre -- a quasi-government organ established to facilitate the process. Consultations are held between the competent authorities and MNEs on the country's development priorities and labour practices. The employers' organization also represents the interest of MNEs when discussing labour-related matters with the Government. According to the Employers' Confederation of Zimbabwe, the principles of the instruments mentioned are applied by the Government. Consultations have not been held between MNEs and the Government, and/or the national employers' and workers' organizations, in order to harmonize MNEs' activities with development priorities, because there is no existing forum or institutional framework to facilitate such consultations. Traditionally, the Government, employers and workers have held meetings to discuss labour-related issues.