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Implementation of International Framework Agreements In SindNova, Fondazione Di Vittorio, IRES France, Fundación 1° de Mayo FINAL REPORT Implementation of Edit by SindNova International Mariangela Zito, Michela Cirioni, Claudio Stanzani Framework Agreements in multinational companies From the International legal framework to the empirical analysis of IFAs study cases September 2017 EURIDE. Employee involvement in multinational companies: from knowing and demanding European rights to new kinds of contracts (TCA) VS/2017/0039 The project was realized with EU financial support INDEX INTRODUCTION EURIDE project: objectives, methodology, results achieved, general remarks 3 IFAs and EFAs: quantitative survey by Udo Rehfeldt 7 IFAs: role of European Works Councils and Global Works Councils by Mariangela Zito 10 LEGAL PROFILES Legal framework of TCAs. Open questions by Fausta Guarriello 14 Private international law and dispute resolution by Aukje Van Hoek 17 CASE STUDIES - NATIONAL STUDY REPORT Bosch, ENEL, Salini-Impregilo (Italy) by Michela Cirioni 21 ENI, Electrolux (Italy) by Salvo Leonardi 47 Renault, Solvay, GDF Suez (France) by Udo Rehfeldt 67 Endesa, OHL, Thyssenkrupp AG (Spain) by Jesús Cruces Aguilera 91 CONCRETE EXPERIENCES IFAs and BWI. Principles and objectives by Vicente Sanchez Jimenez 126 IFAs and sub-contracting: the best practice of Salini Impregilo IFA in constructions’ sector by Claudio Sottile 129 Bangladesh: a successful case on TCAs effectiveness by Gianni Alioti 131 CONCLUSIONS by Claudio Stanzani 135 INTRODUCTION EURIDE project: objectives, methodology, results achieved, general remarks The biannual Project “EURIDE. Employee involvement in multinational companies: from knowing and demanding European rights to new kinds of contracts (TCA)” VS/2017/0039 was granted by the European Commission in the framework of the budget heading VP/2015/003 “Information, consultation and participation of representative of undertakings”. The project represents a continuum in the analysis of Transnational Company Agreements, started with the previous experience of EUROACTA, a research project led by Fondazione Di Vittorio. Thanks to a consolidated partnership with this Institute, IRES France, Fundaciòn 1° de Mayo, and the strong support of CISL1, FILCA2 and FIM3, the project aims at investigating the effective implementation of the Agreements. Differently from other projects mainly focused on the analysis of the contents and the negotiation process, EURIDE stressed out the analysis of the monitoring process and the effectiveness of Agreements’ implementation in order to evaluate whether these tools have a real impact on plants and workers’ rights within the whole company perimeter. Starting from the information and provisions envisaged by the Agreements, the research addressed the presence or lack of tools for monitoring, reporting and disseminating the contents defined in the Agreements. During the empirical research phase, project partners focused on the effective results achieved by these tools and their concrete implementation. The research pointed out the elements that could be improved and the gaps between the provisions of TCAs and their effective compliance. Three different types of activities were conceived in the framework of the project: 1. Research phase (home-based). Drafting of three study reports (1 Italy, 1 Spain, 1 France) on the subject of the enforceability of information and consultation rights, based on the analysis of relevant Transnational Company Agreements. 2. European seminar (Brussels). Event held in Brussels on the 5th of December 2016, at the International Trade Union House (ITUH). The audience was composed by actors involved in the debate on TCAs (GUFs, ETUFs, ETUC, ETUI, Multinational Companies and National Trade Union representatives). 3. Local workshops (Madrid, Paris, Rome). In each workshop, academics, trade union and entrepreneurial representatives, selected by the project partner hosting the event, will take part as local target group. The aim is to share concrete experiences among the local actors involved in Transnational Company Agreements for promoting the debate and analysis of the effective implementation of the texts. Moreover, the workshops’ findings will contribute to the definition of the report contents, thanks to the presence of relevant stakeholders. The workshops support a better understanding of the research topics, by underlying critical issues and gathering suggestions. According to the methodology set out by the Scientific Committee of the project, the study cases were selected based on the following criteria: - 11 case studies (5 for Italy, 3 for Spain, 3 for France) 1 Confederazione Italiana Sindacati Lavoratori /Italian Confederation of Workers' Trade Unions 2 Federazione italiana lavori costruzioni e affini/Italian federation of Building, Wood and allied workers 3 Federazione italiana metalmeccanici/Italian Federation of Metalworkers 3 - Focus on International Framework Agreements (IFAs)4 - Sectors involved: construction, metalworking, energy, chemical - The study cases involved both TCAs signed by a multinational company headquartered in the country selected, and TCAs signed by a foreign company having a subsidiary in the country selected. Taking into account the countries of the partners involved in the project and the related geographical areas of expertise, the selection of the cases involved Italy, France and Spain. In addition to these countries, according to the methodology criteria set up for foreign companies, also Belgium, Germany and Sweden were involved in the territorial scope of the project research. The interviews were carried out through semi-structured questionnaires. Interviews were addressed to: company management (HR or Industrial relations department); trade union representatives (home and/or host country); GUFs and/or ETUFs representatives; EWC – GWC members. Moreover, in specific cases, EWCs’ members were interviewed in those Agreements where the information and consultation bodies played a significant role in the adoption of the IFAs. The representatives interviewed were asked to refer on the periodic report of the monitoring activities and its dissemination, the actors involved, the type of activities put in place in the framework of the Agreement. Moreover, a focus was given to the impact of the implementation of TCAs at local level, the potential conflicts with the national unions and local company management. A specific question about suppliers investigated whether these actors are informed and if they were included in the monitoring and implementation of the Agreement. With reference to the assessment, the questionnaire addressed the role of TCAs as added value compared to local/national standards, the future plans of renegotiations and any suggestions concerning the improvement of the Agreement. With reference to the year of signature, with the exception of the Bosch Agreement signed in 2004 and the case Endesa signed in 2002 (subsequently substituted by the ENEL GFA after the acquisition), the majority of the study cases has at least a few years in order to allow their effective implementation. Many agreements clearly specify the deadline for the renewal, some do not mention any date, and others state that the Agreement remains in force until one of the signatory parties decides to amend the text. Concerning the Joint monitoring bodies, with the exception of Bosch, all the Agreements foreseen the setup of joint bodies that include the participation of company and union representatives. GUFs are usually part of these bodies and often represent those countries where the threshold of representativeness is limited. EWCs and GWCs play an important role in the monitoring phase. It is not usual to have annual reports drafted jointly. The drafting of the report is usually carried out by the company that can count on a better technical know-how, human resources and technical competences for performing such a task. Concerning some cross-cutting topics emerged during the research, relevance was given to the following items: 4 IFAs usually refer to the principles established in the UN declaration of Human rights, the ILO Core Labor Standards, the UN Global Compact, The Guidelines for Multinational Enterprises of the OECD, the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy, ILO Declaration on Fundamental Principles and Rights at Work, etc. Among the main topics addressed: working time, no discrimination, health and safety, working conditions, vocational training, freedom of association to establish and join a trade union, free choice of employment, norms against child labor and so on. 4 - Role of EWCs in supporting the negotiation process of TCAs. The role played by EWCs in providing the stimulus for starting the negotiation process and establishing the Global Works Councils (GWCs). The legitimacy and capacity of negotiating of the actors involved as signatory parties. - Establishment of GWCs and their role in monitoring TCAs. The provisions of the IFAs can include the establishment of a Global Works Council. Despite the lack of legislative framework, this information and consultation body plays a crucial role in the monitoring and assessment of the Agreements. The workforce thresholds for the appointment of the members, the rotation system of attendance and the frequency of meetings are usually defined in the IFAs. - Agreements renegotiated after mergers or acquisitions. They can count on previous Agreements already signed by one or both the companies
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