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American Center for International Labor Solidarity/AFL-CIO Copyright © May 2003 by American Center for International Labor Solidarity JJUSTICEUSTICE FFOROR AALLLL AA GuideGuide toto WorkerWorker RightsRights inin thethe GlobalGlobal EconomyEconomy American Center for International Labor Solidarity/AFL-CIO Copyright © May 2003 by American Center for International Labor Solidarity All rights reserved Printed in the United States of America American Center for International Labor Solidarity 1925 K Street, NW Suite 300 Washington, DC 20006 www.solidaritycenter.org The American Center for International Labor Solidarity, or the Solidarity Center, is a non-profit organization established to provide assistance to workers who are struggling to build democratic and independent trade unions around the world. It was established in 1997 through the consolidation of four regional AFL-CIO institutes. Working with unions, non- governmental organizations and other community partners, the Solidarity Center supports programs and projects to advance worker rights and promote broad-based, sustainable economic development around the world. Cover design by Fingerhut, Powers, Smith & Associates, Inc. Photos courtesy of the International Labor Organization JUSTICEJUSTICE FORFOR ALLALL A Guide to Worker Rights in the Global Economy American Center for International Labor Solidarity/AFL-CIO May 2003 Funding provided by a grant from the National Endowment for Democracy TABLE OF CONTENTS Introduction The State of Worker Rights Today xiii Chapter 1 Worker Rights Standards and Violation Checklist 1 ■ Freedom of Association (ILO Convention No. 87) 3 ■ Right to Organize and Bargain Collectively (ILO Convention 10 No. 98) ■ Forced Labor (ILO Conventions No. 29 and No. 105) 14 ■ Child Labor (ILO Conventions No. 138 and No. 182) 17 ■ Discrimination (Equality in Employment and Occupation) 23 (ILO Conventions No. 100 and No. 111) ■ Acceptable Conditions of Work (ILO Conventions No. 131, 38 No. 1, No. 95, No. 14, No. 106, No. 132 and No. 155) ■ Flexibility in Applying the Standards 41 Chapter 2 History of Worker Rights 43 ■ International Labor Organization (ILO) 45 ■ ILO World Commission on the Social Dimension of 47 Globalization ■ The Birth of the United Nations 47 ■ Worker Rights in the Era of Free Trade 50 Chapter 3 Worker Rights and Unilateral Trade Benefits 53 ■ Caribbean Basin Initiative (CBI/CBERA)–1983 55 ■ U.S. Generalized System of Preferences (GSP)–1984 56 Bangladesh 62 Belarus 62 Costa Rica 63 Swaziland 66 Thailand 67 Guatemala 68 El Salvador 71 Mauritania 72 Paraguay 72 Peru 73 Ukraine 74 ■ Impact of GSP 75 ■ European GSP–1995 76 ■ Overseas Private Investment Corporation (OPIC)–1985 77 ■ Impact of OPIC 79 ■ Omnibus Trade and Tariff Act–1988 80 iii ■ Andean Trade Preference Act–1991 81 ■ Tariff Act of 1930 (19 USC ¶1307)–2000 Modification 82 Chapter 4 Worker Rights and Regional Trade Pacts 85 ■ Africa and the Middle East 87 ■ African Growth and Opportunity Act (AGOA) 87 Economic Community of West African States 91 (ECOWAS) Southern African Development Community (SADC) 92 U.S.-Jordan Free Trade Agreement 92 Other African Economic Organizations 94 Social Charters 94 ■ Americas 97 The North American Free Trade Agreement (NAFTA) 97 and the North American Agreement on Labor Cooperation (NAALC) Introducing the NAALC 97 Labor Principles and Obligations 98 Institutional Structure of the NAALC 99 - Commission for Labor Cooperation: Ministerial 99 Council and Secretariat - National Administrative Offices (NAOs) 99 - Evaluation Committees of Experts (ECEs) 100 - Arbitral Panels 100 Weaknesses and Overall Impact of NAFTA and 101 the NAALC NAALC Submissions and Cases: Overview 106 Cases Involving Alleged Worker Rights Violations 108 in Mexico - Honeywell and General Electric (U.S. NAO 108 Case Nos. 940001 and 940002) - Sony (U.S. NAO Case No. 940003) 110 - Pesca Union (U.S. NAO Case No. 9601) 110 - Maxi-Switch (U.S. NAO Case No. 9602) 112 - Pregnancy Testing in the Maquiladora 112 (U.S. NAO Case No. 9701) - Han Young (U.S. NAO Case No. 9702) 113 - Echlin/ITAPSA (U.S. NAO Case No. 9703; 114 Canada NAO Case No. 98-1) - Aerovías de Mexico Flight Attendants 115 (U.S. NAO Case No. 9801) iv - TAESA (U.S. NAO Case No. 9901) 115 - Autotrim/Breed Technologies (U.S. NAO Case 116 No. 2000-01) - Duro Bag Manufacturing Corporation 118 (U.S. NAO Case No. 2001-01) Cases Involving Alleged Worker Rights Violations 119 in the United States - Sprint (Mexico NAO Case No. 9501) 119 - Solec, Inc. (Mexico NAO Case No. 9801) 120 - Washington State Apple Industry (Mexico NAO 121 Case No. 9802) - DeCoster Egg Farm (Mexico NAO Case No. 122 9803) - Labor Department/INS Memorandum of 122 Understanding (Mexico NAO Case No. 9804; Canada NAO Case No. 98-2) - Labor Policy Association and Section 8(a)(2) of 123 the National Labor Relations Act (Canada NAO Case No. 99-1) - New York State Workers’ Compensation 125 System (Mexico NAO Case No. 2001-1) Cases Involving Alleged Worker Rights Violations 126 in Canada - McDonald’s (U.S. NAO Case No. 9803) 126 - Canadian Rural Letter Carriers (U.S. NAO 127 Case No. 9804) Mercosur and the Social-Labor Declaration 128 Sub-Group 11 128 Protocol of Ouro Preto 129 Working Group 10 129 Economic and Social Consultative Forum 131 Social-Labor Declaration of Mercosur 132 Social-Labor Commission 133 Impact of Mercosur 133 Community of Andean Nations (CAN) 135 The Canada-Chile Free Trade Agreement on Labor 138 Cooperation (CCALC) The Canada-Costa Rica Free Trade Agreement on Labor 141 Cooperation (CCRALC) The Caribbean Community (CARICOM) and the Charter 141 of Civil Society The CARICOM Declaration of Labor and Industrial 143 Relations Principles v NAFTA Parity 144 Comparison of Worker Rights Measures in the Americas 144 Tripartism 144 Complaints and Oversight 145 Sanctions 145 Free Trade Area of the Americas (FTAA) 146 ■ Asia 148 Asia-Pacific Economic Cooperation (APEC) 148 U.S.-Cambodia Bilateral Textile Trade Agreement 152 ■ Europe 153 Maastricht Treaty–1992 156 Treaty of Amsterdam–1999 157 Treaty of Nice–2000 158 Charter of Fundamental Rights of the European 160 Union–2000 Stability Pact for Southeastern Europe–1999 161 Working Table I: Democratization and 162 Human Rights Working Table II: Economic Reconstruction, 162 Development and Cooperation Working Table III: Strengthening of Internal and 162 External Security Initiative for Social Cohesion–2000 163 ■ New Free Trade Agreements with Chile and Singapore 165 Chapter 5 Worker Rights and Global Trade Pacts 171 ■ World Trade Organization (WTO) 173 ■ Organization for Economic Cooperation and Development 176 (OECD) ■ Multifiber Arrangement (MFA) 176 Chapter 6 Worker Rights and International 181 Financial Institutions ■ History of the World Bank and the International 183 Monetary Fund ■ Structure and Operations of the World Bank Group 183 The International Bank for Reconstruction and 184 Development (IBRD) The International Development Association (IDA) 184 The International Finance Corporation (IFC) 184 The Multilateral Investment Guarantee Agency (MIGA) 184 vi The International Centre for Settlement of Investment 184 Disputes (ICSID) ■ Organization and Management of the World Bank 184 Board of Governors 185 Executive Directors 185 World Bank President 185 ■ Development of the IMF’s Mission 186 ■ Structure and Management of the IMF 186 Board of Governors 186 Executive Board/Board of Directors 187 Interim Committee 187 Development Committee 187 Managing Director 187 ■ Lending Practices of the World Bank and the IMF 188 ■ International Controversy over IFIs 188 Lack of Transparency 190 Power and Jurisdictional Imbalances 190 Environmental Concerns 191 ■ Impact of IFI Policies on Workers, Democratization and 193 Economic Development Chapter 7 Strategies for Promoting Corporate Accountability 201 ■ Corporate Codes of Conduct 203 Multilateral Government-Initiated Codes 204 UN Code 204 OECD Code 204 ILO Code 206 Privately Drawn Up “Sign-Up” Codes of Conduct 206 Sullivan Principles 206 MacBride Principles 207 Slepak and Miller Principles 207 Global Sullivan Principles of Social Responsibility 207 Maquiladora Code 209 ICFTU/ITS Basic Code of Conduct Covering 209 Labor Practices Internal Corporate Codes of Conduct 211 Levi Strauss & Company: Terms of Engagement 211 and Guidelines Reebok’s Worker Rights Code 212 The New Generation of External “Stakeholder” Codes 212 Ethical Trading Initiative (ETI) 213 vii Apparel Industry Partnership (AIP)/Fair Labor 213 Association (FLA) Clean Clothes Campaign (CCC)/Fair Wear 213 Foundation (FWF) Social Accountability 8000 (SA8000) 213 United Students Against Sweatshops (USAS) 214 Worker Rights Consortium (WRC) 215 Worldwide Responsible Apparel Production 218 (WRAP) Ethical Trading Action Group (ETAG) 218 Developing Country (Southern) Code Initiatives 218 Government Initiatives 219 Global Reporting Initiative (GRI) 220 Mandatory Sustainability Reporting for French 221 Companies Impact of Corporate Codes and Trade Union/NGO 221 Cooperation ■ Other Strategies 228 Strategic Campaigns 228 Role of Global Union Federations (GUFs) 231 International Campaigns 231 Company Councils 232 Framework Agreements 232 European and Global Works Councils 234 GUFs and the ILO 235 Global Anti-Sweatshop Coalition 236 UN Global Compact 236 Shareholder Initiatives 237 Emerging Market Investment Guidelines 239 AFL-CIO Investment Product Review (IPR) 241 Social Labeling 241 Rugmark 241 Foulball 242 Local Government Sanctions and Corporate 242 Response Chapter 8 Pursuing Worker Rights in the New Millennium 247 Appendix A Worker Rights Violation Report Form 253 Appendix B ILO
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