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ILO Turin Centre, November, 2003 1
The IUF’s Transnational Company Work
ILO Turin Centre, November, 2003 2
Transnational company work
IUF has prioritized two forms of activity in this area:Campaigns or actions against companies that attack basic rightsProactive action and strategies to gain recognition from companies like Coca-Cola for the IUF as an international trade union federation
ILO Turin Centre, November, 2003 3
Recent campaigns and actionsPakistan Sugar MillsBelarus, trade union rightsBAT & BurmaEcuador banana workersPearl ContinentalPepsi, GuatemalaSky Chefs, USACoca Cola, Russia
ILO Turin Centre, November, 2003 4
That is campaign activity…. But what of pro-active IUF Company Strategy
What does it mean?How is it developed within the IUF?
ILO Turin Centre, November, 2003 5
“Proactive” IUF company strategy has basically three stages:1. Organize and build strength2. Negotiate for international
recognition from the target company
3. Move to international bargaining
ILO Turin Centre, November, 2003 6
OrganizeUse education projects to:
Strengthen existing unionsCreate New unions
Recruitment of those unions to IUFCompany networks (eg in Coca-Cola through global and regional meetings)
ILO Turin Centre, November, 2003 7
Negotiating recognition
Area of major progress in recent yearsAchieved through seizing and building on opportunities, following-up on conflicts, maintaining contact with companies and dogged and determined negotiations
ILO Turin Centre, November, 2003 8
Recognition 1997Where were we in 1997?Danone (formal)Accor (formal)Nestlé (formally limited to Europe but informally wider)Coca-Cola (informal, irregular and limited having arisen from major successful international campaigns against Coca Cola over past years)
ILO Turin Centre, November, 2003 9
Recognition 2003Where are we today?26 companies and growingDanoneAccorNestléCoca-ColaBritish American TobaccoChiquita Brands InternationalClub MéditerannéeCompass
ILO Turin Centre, November, 2003 10
Del Monte Fresh ProduceFonterra (formerly New Zealand Dairy Board, a major dairy transnational)Fyffes Hershey FoodsImperial TobaccoInterbrewJapan Tobacco InternationalKraft Foods
ILO Turin Centre, November, 2003 11
MarsParmalat Philip Morris InternationalScandinavian Tobacco CompanyAltadisSodexhoDimon Tobacco Leaf ProcessorsStandard Tobacco Leaf ProcessorsUniveral Tobacco Leaf ProcessorsShangri-La Hotel Corporation
ILO Turin Centre, November, 2003 12
Company recognition of the IUF 1997 - 2003
20
4
0
4 3
21
6
0
5
10
15
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1997 2003
Formal union rightsagreementsIUF/TNC agreementsto resolve local issueFull labour relationsrecognitionChild labour only
ILO Turin Centre, November, 2003 13
Bargaining…..About what issues?Not workplace issues but more over …..Rights and “space”Space for…..
Rights to form and join unions (F. of A.)Rights to collective bargainingNo discrimination, child and forced labour etc
ILO Turin Centre, November, 2003 14
What does this mean?
Setting standards through agreements with specific transnational companies (normally built on ILO Core Conventions)Clarifying what the ILO standards actually meanEstablishing agreed union/company mechanisms for enforcing those standardsNegotiating agreed remedial action when those standards are not met
ILO Turin Centre, November, 2003 15
8 formal IUF international worker rights agreements:Danone:
Union RightsEqualityTrainingInformationRestructuring and employment
Accor – union rightsChiquita – Rights, employment and health and safetyFonterra – Rights, employment and health and safety
ILO Turin Centre, November, 2003 16
3 “ formal” IUF/Company agreements to end conflicts
Del Monte – Guatemala (2001)Interbrew – Montenegro (Dubrovnik Agreement) (2002)Shangri-La Hotels – Indonesia (2003)
ILO Turin Centre, November, 2003 17
The case of Coca-Cola
Tough structure and tough companyUS corporate cultureCommon target of IUF actions and campaignsLong-term target of IUF proactive strategy
ILO Turin Centre, November, 2003 18
“Proactive” work
OrganizeNegotiate recognitionBargain about rights
ILO Turin Centre, November, 2003 19
International organizing within Coca-Cola
Building unions (Guatemala, Philippines, India, Moscow etc)
Recruiting to the IUF - global IUF representation has never been stronger
Strengthening networks and our capacity for mutual solidarity
Global meeting in March 2003 and regional meetings throughout the year
ILO Turin Centre, November, 2003 20
Negotiating for recognition
De facto recognition for the Coca-Cola “system” - which means we deal with bottlers and franchise holdersInitially informal and irregular contactsStuck at the informal and irregular level for some years
ILO Turin Centre, November, 2003 21
Recognition breakthrough in 2003?
April 2003 agreement to hold twice-yearly meetings (starting in October 2003)Small team from IUF:
Four affiliates and the general secretaryHead Office team from The Coca-Cola Company
ILO Turin Centre, November, 2003 22
Nature of the planned twice-yearly meetings
Exchanging informationMainly on rights and labour issuesPossibly on corporate global, regional and local strategies
Discussing problems and abuses of worker rightsExploring influence of The Coca-Cola Company on bottlers and franchise holders
ILO Turin Centre, November, 2003 23
Bargaining about rights with Coca-Cola?
Will see where the more formal twice-yearly meeting take usMajor challenge is an eventual agreement between the IUF and The Coca-Cola Company
ILO Turin Centre, November, 2003 24
Principal obstacles to progress
Tough “US corporate culture”Structure of the company and issue of responsibility for bottlers and franchise holders
ILO Turin Centre, November, 2003 25
Principal strengths we haveVulnerable companyStrong global IUF representation throughout the companyProven IUF capacity to effectively act against CokeClear and determined IUF strategyIUF’s unique capacity to maintain long-term pressure on Coca-Cola
ILO Turin Centre, November, 2003 26
How the future with Coke looks and what it will need from us…
There will be difficult and slow processIntelligent, tough but vulnerable companyOrganizing globally will be one key issueMaintaining constant pressure will be another key issueSmart negotiating at global level a thirdEffective solidarity and action from affiliates when necessary will be the key issue
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