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Governing Body

Summary of reports submitted by governments and by
employers' and workers' organizations for the Sixth Survey on
the Effect Given to the Tripartite Declaration of Principles
concerning Multinational Enterprises and Social Policy

Introduction

1. On the basis of the recommendations of the Subcommittee on Multinational Enterprises,(2) the Governing Body decided that there should be a sixth full-scale report on the Declaration covering the years 1992, 1993, 1994 and 1995.(3)

2. This document summarizes the replies of governments and employers' and workers' organizations to this sixth survey. As in the case of documents prepared for the five previous surveys,(4) this summary is intended to facilitate the work of (a) the Governing Body Subcommittee on Multinational Enterprises which is called upon to examine these reports and (b) the Working Group, constituted by its Officers, which has been entrusted with the task of analysing them before they are submitted to the Subcommittee.(5)

3. At its 205th (February-March 1978) Session, the Governing Body invited governments to report periodically on the effect given to the Declaration after full consultation with the national employers' and workers' organizations.(6) The action taken by the Governing Body was confirmed and reinforced in a resolution adopted at the 65th Session of the International Labour Conference in June 1979.(7)

4. Consequently, the first such reports, for the years 1978 and 1979, were examined in September 1980 by an ad hoc committee of the Governing Body. The Committee recommended, in particular, a second round of government reports covering the years 1980, 1981 and 1982, the creation of a standing Governing Body Committee on Multinational Enterprises entrusted with the follow-up, a procedure for the examination of disputes concerning the application of the Tripartite Declaration (also referred to as the interpretation procedure) and a series of studies which the Office would undertake in areas specifically relevant to it. The Governing Body endorsed the above proposals at its 214th (November 1980) Session.(8)

5. The second government reports on the Declaration were examined by the Committee on Multinational Enterprises and its report was approved by the Governing Body during its 224th (November 1983) Session.(9) In 1984, the Governing Body, on the recommendation of the Committee,(10) decided that the third round of government reports should cover 1983, 1984 and 1985 and that the next full-scale report (fourth survey) on the Declaration should be undertaken for 1986, 1987 and 1988.

6. At its meeting in February 1985 the Committee proposed that the Governing Body establish a working group composed of the Committee's Officers to analyse government reports on the Declaration prior to their examination by the Committee itself. Furthermore, the Committee, at the same session and in a private meeting, undertook the first interpretation of the Declaration (paragraph 26), following a request for such interpretation by a trade union organization subsequent to a collective dismissal.(11) The Committee's interpretation was endorsed by the Governing Body at its 229th Session.(12)

7. The Governing Body at its 231st (November 1985) Session endorsed a recommendation of the Committee calling on the Office to give priority to the updating of the list of Conventions and Recommendations to be referred to in the Declaration, and to prepare and submit to the Committee, a paper on measures to avoid undesirable overlap and conflict with activities of other intergovernmental organizations in the area of multinationals.(13)

8. At its 232nd (March 1986) Session, the Governing Body approved the revised procedure for the examination of disputes concerning the application of the Declaration, as agreed by the Committee on the basis of proposals made by its Officers who had earlier been entrusted with the task of elaborating more precise criteria for determining the receivability of requests for interpretation.(14)

9. Subsequent to the Governing Body's approval of the recommendation for the establishment of a working group (paragraph 6 above), the Officers met for the first time in November 1986 in connection with the Committee's examination of the third government reports on the effect given to the Declaration during the years 1983, 1984 and 1985.(15)

10. In November 1987, the Committee considered and approved an addendum which updated the list of international labour Conventions (22) and Recommendations (23) referred to in the Tripartite Declaration.

11. In February 1988, the Committee, sitting in private, undertook its second interpretation of the Declaration on the basis of a request submitted by a government and involving the abrupt closure of a branch of a multinational enterprise and the resulting collective dismissal of its workers (paragraphs 1-7). At the same session the Governing Body endorsed this interpretation made by the Committee.(16)

12. In November 1989, the Working Group, as constituted by the Officers of the Committee, met for the second time and in connection with the 244th Session of the Governing Body to analyse government reports on the effect given to the Declaration in 1986, 1987 and 1988. The Group's report and analysis were examined by the Committee and endorsed by the Governing Body, at its 245th (February-March 1990) Session. At that session the Governing Body decided, inter alia, that the fifth full-scale survey on the Declaration should cover the years 1989, 1990 and 1991 and that the summaries should be examined by the Committee in November 1992.

13. At its 248th (November 1990) Session the Governing Body approved the draft questionnaire for the fifth survey and decided that in addition to being forwarded to governments, it should also be sent direct to the employers' and workers' organizations.(17)

14. The fifth reports on the effect given to the Tripartite Declaration in 1989, 1990 and 1991 were examined by the Committee and its report approved by the Governing Body during the 254th (November 1992) Session. At its 258th (November 1993) Session the Governing Body approved the draft questionnaire for the sixth survey and its dispatch to governments as well as to employers' and workers' organizations.(18)

15. On the basis of the recommendation of the Governing Body Working Party on Improvements in the Functioning of the Governing Body, the Committee on Multinational Enterprises was replaced by the Subcommittee on Multinational Enterprises which was established within the framework of the newly created Committee on Legal Issues and International Labour Standards.(19) In consequence, the Governing Body decided, on the basis of the Subcommittee's recommendations, to substitute the word "Committee" with the word "Subcommittee" in paragraphs 3, 4, 7 and 8 of the Procedure for the examination of disputes concerning the application of the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy by means of interpretation of its provisions.(20)

16. At its 254th (November 1992), 261st (November 1994) and 264th (November 1995) Sessions, the Subcommittee on Multinational Enterprises considered two requests for interpretation submitted in accordance with the procedure for the examination of disputes concerning the application of the Tripartite Declaration. On the basis of majority decisions, both requests were declared not receivable.(21)

17. At its 264th (November 1995) Session, and in line with paragraphs 7 and 10 above concerning the updating of the list of Conventions and Recommendations referred to in the Declaration, the Governing Body decided that a further six Conventions and six Recommendations should constitute a new Addendum (Addendum II).(22)

18. In the light of the foregoing, the Subcommittee is invited by the Governing Body to examine the sixth report on the effect given to the Tripartite Declaration in 1992, 1993, 1994 and 1995, taking into account the Working Group's analysis contained in GB.268/MNE/1/2.

Replies received

19. In preparing this document, the Office has taken into account all replies received up to 30 September 1996 -- well beyond the deadline of 29 February 1996. The Subcommittee will be informed of any replies which are received by 31 December 1996. If members of the Subcommittee wish to consult the original reports, observations and annexes used for the preparation of this document, these are, as in previous years, at its disposal.

20. For the current (sixth) survey, the Office received reports from governments and/or employers' and workers' organizations from the following 74 countries:(23) 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, Ethiopia, Finland, France, Gabon, Germany, Greece, Grenada, Hungary, India, Indonesia, Ireland, Italy, Japan, Jordan, Republic of Korea, Kuwait, Luxembourg, Malaysia, Mauritania, Mauritius, Mexico, Myanmar, Namibia, Netherlands, New Zealand, Nicaragua, Nigeria, Norway, Pakistan, Philippines, Poland, Portugal, Romania, St. Vincent and the Grenadines, Singapore, Slovakia, Slovenia, Spain, Sri Lanka, Swaziland, Sweden, Switzerland, Syrian Arab Republic, Thailand, Trinidad and Tobago, Tunisia, Turkey, United Kingdom, United States, Uruguay, Venezuela, Zambia, Zimbabwe.

21. It will be recalled that the Governing Body approved the direct distribution of the questionnaire to employers' and workers' organizations with the aim of encouraging a greater response rate from them.(24) The following employers' and workers' organizations took advantage of this possibility and sent their replies direct to ILO Geneva, through the ILO's field offices or through international employers' or workers' organizations:

Employers' organizations:

(Copy sent to government): Bangladesh Employers' Association; National Association of Manufacturers (ANDI), Colombia; Confederation of Finnish Industry and Employers; and the Employers' Confederation of Service Industries, Finland; Japan Federation of Employers' Associations (NIKKEIREN); Korea Employers' Federation. (No copy sent to government): Barbados Employers' Federation; Dominica Employers' Federation; Employers' Federation of Pakistan; Employers' Confederation of Zimbabwe. (No indication as to whether or not copy sent to government): Antigua Employers' Federation; General Confederation of Employers of Mauritania (CGEM); Nigeria Employers' Consultative Association (NECA); St. Vincent Employers' Federation; Tunisian Confederation of Industry, Trade and Handicrafts (UTICA). (Employers' replies sent through international employers' organizations): The National Council of French Employers (CNPF) sent its report through the IOE. There was no indication of whether a copy was sent to the Government. The General Confederation of Industry (CONFINDUSTRIA), Italy, sent its report through the IOE, with a copy to the Government. The Mexican Confederation of Chambers of Industry (CONCAMIN) sent its reply through the IOE. There was no indication of whether a copy was sent to the Government.

Workers' organizations:

(Copy sent to government): Barbados Workers' Union; General Confederation of Democratic Workers (CGTD), Colombia; Solidarno, Poland; General Union of Workers (UGT), Portugal; General Union of Workers (UGT), Spain. (No copy sent to government): Nigeria Labour Congress. (No indication as to whether or not copy sent to government): Gabonese Confederation of Free Trade Unions (CGSL); Japanese Trade Union Confederation (JTUC-RENGO); Malaysian Trades Union Congress; Free Confederation of Workers of Mauritania (CLTM); American Federation of Labor and Congress of Industrial Organizations (AFL-CIO).

Replies from international trade secretariats:

The International Federation of Commercial, Clerical, Professional and Technical Employees (FIET).

22. In keeping with past practice, copies of replies from employers' and workers' organizations which were sent direct to the Office, were forwarded to governments for their information and comments. Comments from the Governments of Japan and Malaysia can be found in Annex 2 of this report.

23. Details with respect to consultations held by governments with the most representative employers' and workers' organizations of their respective countries can be found in Part II of this report. The names of all employers' and workers' organizations which were given copies of governments' reports are also specified.

24. The Director-General expresses his gratitude to governments and to employers' and workers' organizations for their cooperation in providing the Office with information, sometimes quite detailed, as well as relevant documents and publications dealing with foreign direct investment and/or the activities of multinational enterprises. He regrets, none the less, that the information has had to be summarized very concisely due to the limitations on the length of this document. However, he would like to assure all those that provided contributions that the information will be used throughout the Office in the preparation of publications and to update information on the labour and social situation in ILO member States.

25. For the convenience of the Subcommittee, as well as the Governing Body, and in line with past practice, the summaries of all the reports received from governments, employers' and workers' organizations have been grouped together in alphabetical order. Each section of the summary is preceded by the relevant paragraph(s) of the Declaration in chronological order and the question(s) pertinent thereto as they appear in the report form.

Tripartite Declaration of Principles concerning Multinational
Enterprises and Social Policy

Preamble

The Governing Body of the International Labour Office:

Recalling that the International Labour Organization for many years has been involved with certain social issues related to the activities of multinational enterprises;

Noting in particular that various Industrial Committees, Regional Conferences, and the International Labour Conference since the mid-1960s have requested appropriate action by the Governing Body in the field of multinational enterprises and social policy;

Having been informed of the activities of other international bodies, in particular the UN Commission on Transnational Corporations and the Organisation for Economic Co-operation and Development (OECD).

Considering that the ILO, with its unique tripartite structure, its competence, and its long-standing experience in the social field, has an essential role to play in evolving principles for the guidance of governments, workers' and employers' organizations, and multinational enterprises themselves;

Recalling that it convened a Tripartite Meeting of Experts on the Relationship between Multinational Enterprises and Social Policy in 1972, which recommended an ILO programme of research and study, and a Tripartite Advisory Meeting on the Relationship of Multinational Enterprises and Social Policy in 1976 for the purpose of reviewing the ILO programme of research and suggesting appropriate ILO action in the social and labour field;

Bearing in mind the deliberations of the World Employment Conference;

Having thereafter decided to establish a tripartite group to prepare a Draft Tripartite Declaration of Principles covering all of the areas of ILO concern which relate to the social aspects of the activities of multinational enterprises, including employment creation in the developing countries, all the while bearing in mind the recommendations made by the Tripartite Advisory Meeting held in 1976;

Having also decided to reconvene the Tripartite Advisory Meeting to consider the Draft Declaration of Principles as prepared by the tripartite group;

Having considered the Report and the Draft Declaration of Principles submitted to it by the reconvened Tripartite Advisory Meeting;

Hereby approves the following Declaration which may be cited as the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy, adopted by the Governing Body of the International Labour Office, and invites governments of States Members of the ILO, the employers' and workers' organizations concerned and the multinational enterprises operating in their territories to observe the principles embodied therein.

I. Principles contained in the Declaration

Background and aim

Paragraphs 1-7

(1) Have any of the activities of MNEs given rise to conflicts with national policy objectives and with the interest of the workers? If so, please explain.

(2) In an endeavour to further the aims of the Declaration, have any new laws been promulgated, policy changes made or action taken since the last survey to which you replied?

(3) Have any difficulties arisen for any of the addressees of the Tripartite Declaration in their attempts to respect its principles? If so explain.

The Government of Antigua and Barbuda notes that efforts are made to balance the activities of MNEs with national development priorities. The Labour Code, which is based on international labour standards, applies to all enterprises and it has served to minimize conflicts between the activities of MNEs, national policy objectives and workers' interests. The Labour Code and Workmen's Compensation Act are being amended in order to improve conditions of work and life, labour relations and tripartism. The principles of the Tripartite Declaration are valuable and the addressees are making efforts to respect them. The Antigua Employers' Federation states that all enterprises are governed by the same legislation, i.e. the Companies Act, Business Licence Act, and the Labour Code.

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

According to the Government of Australia, there are no indications that MNEs' activities in New South Wales and South Australia have given rise to conflicts either with national or state policy objectives and workers' interests. Several laws of relevance to the Tripartite Declaration were either passed or in force during the period covered by the Survey. In New South Wales, the Industrial Relations (Sick Leave) Amendment Act 1992, Anti-Discrimination (Age Discrimination) Amendment Act 1993 and the Anti-Discrimination (Homosexual Vilification) Amendment Act 1993, were passed. In Queensland, the Anti-Discrimination Act 1991 which makes specific reference to a number of international instruments such as ILO Convention No. 111 came into force on 30 June 1992. In South Australia, the Industrial and Employee Relations Act 1994, the Occupational Health, Safety and Welfare Act 1986 and the Workers' Rehabilitation and Compensation Act 1986, are in force. All the laws mentioned as well as decisions and policies in the fields of training, industrial relations, OSH and workers' compensation, apply to domestic enterprises and MNEs.

The Government of Austria reports that by virtue of the country's membership in the EU it has a legal obligation to incorporate into national law by the end of 1996, the provisions of Council Directive 94/45/EC concerning the establishment of a European Works Council. At the end of 1993, the major foreign investors were from Germany, Switzerland-Liechtenstein (jointly), the US and France. Of the 2,816 firms with majority foreign ownership operating in Austria in 1993, 1,484 were in the services sector, mainly in commerce (968 enterprises) and 720 were in manufacturing. Most of those in manufacturing were in the metal trades (233 firms), 107 were in the petroleum and chemical industries, and 68 in the textiles, garment and leather industries. At the end of 1993, there were 850 overseas-based Austrian MNEs (i.e. more than 50 per cent Austrian capital) operating in the services sector. Of those service enterprises, 47 per cent were in commerce and 12 per cent in banking and finance. Thirty-seven per cent of the 645 Austrian manufacturing MNEs abroad were in the metal trades and 11 per cent were in petroleum and chemicals. As regards employment, in 1993, Austrian MNEs employed approximately 89,900 persons abroad. Of these, 34,100 were in Hungary, 18,600 in Germany and 13,400 in the Czech Republic. In Austria, foreign MNEs (i.e. more than 50 per cent foreign capital) created direct employment for some 212,000 persons. Almost half of those workers were in German MNEs. (Data extracted and percentages calculated from report of the Austrian National Bank annexed to reply.)

The Government of the Bahamas reports that to date none of the activities of MNEs have given rise to conflicts with national policy objectives and workers' interests. Policies and procedures relating to investment have been amended in order to attract MNEs. So far there have been no difficulties for any of the addressees in their attempts to respect the Tripartite Declaration.

The Government of Bangladesh reports that the activities of MNEs have not given rise to any conflicts with national policy objectives, nor with the interests of the workers. No new law has been promulgated since the last survey. However, there have been some minor amendments to certain laws (unspecified). There have been no difficulties with regard to implementation of the principles of the Tripartite Declaration. The Bangladesh Employers' Association agrees with the Government, and it adds that in 1992 a Tripartite National Law Commission was set up to update existing labour legislation. Its recommendations have been submitted to the Government for consideration.

The Government of Barbados replies that there has been no known conflict with national policy objectives arising out of the activities of MNEs. During the period under review, the National Productivity Board Act 1993-14 was passed. None of the addressees of the Tripartite Declaration reported difficulties in their attempts to respect its principles. The Barbados Employers' Confederation replies in the negative to all three questions. The Barbados Workers' Union replies in the negative to all three questions.

The Government of Belgium reports that no distinction is made between multinational and national enterprises with respect to social policy. Both social and economic policies are subject to broad consultation between the social actors. Within the framework of interprofessional agreements which are concluded every two years, the social partners submit proposals to the Government relating to legislative and regulatory reforms. There are doubts about the extent to which MNEs operating in Belgium share the country's social concerns. The Government notes that Council Directive 94/45/EC of 22 September 1994 concerning the establishment of a European Works Council is for the purpose of informing and consulting with the workers. Problems of implementing national legislation are increasing, particularly as regards employment (specifically in cases of disinvestment) and conditions of work. The National Labour Council (NLC), which comprises the most representative employers' and workers' organizations, points out that even though increasing economic globalization and pressures to be competitive have taken their toll on employment, MNEs have generally had a positive impact on investment and employment in the Belgian economy. In its last reports, the Council had noted that there were no particular problems as regards conditions of work and industrial relations in MNEs. Regulations in these domains apply to all enterprises, whether Belgian or multinational and regardless of their location. The NLC identifies the major national laws, collective agreements and various Council Directives (of the EU) that comprise the framework for dealing with various labour-related issues. Since the last survey, several laws of relevance to MNEs have been adopted, pertaining mainly to the provision of information to workers, health and safety at work and equality of treatment. The laws adopted between 1992 and 1995 are: Royal Order of 7 April 1995 concerning the provision of information to works councils on employment-related matters; the Act of 13 April 1995 which requires that foreign-owned enterprises make various documents and information publicly available before starting their operations; Royal Order of 27 April 1995 amending section 12(2) of the Act of 17 July 1975 concerning accounting, and annual accounts of enterprises as well as certain orders for implementing this Act; Royal Order of 14 September 1992 relating to the implementation of the Council Directive of 12 June 1989 concerning the improvement of occupational safety and health; and Royal Order of 8 February 1993 amending the General Regulation concerning the provision of information to the Committee on Safety and Health and Improvement of the Work Environment. While on the whole MNEs respect the national labour legislation, problems have arisen with regard to informing workers about economic, social and financial issues in cases of closure or restructuring of enterprises. Certain MNEs have also had difficulties in adapting to local practices as regards social dialogue and consultations. However, these problems are by no means peculiar to multinationals. The possibility of incorporating European Directives into Belgian law as well as having them reflected in collective agreements are particular features worth noting. The NLC notes that during the period under review, Council Directives relating to working time (23 November 1993), the protection of young workers (22 June 1994) and the establishment of works councils (22 September 1994) were adopted.

The Government of Brazil states that the activities of MNEs have not given rise to conflicts with national policy objectives and workers' interests. During the period under review no new measures were adopted for furthering the aims of the Tripartite Declaration and there were no difficulties as regards the application of this instrument. The Single Central Organization of Workers (Central Unica dos Trabalhadores) reports that in Brazil, MNEs' activities have "constantly harmed workers' interests" and the rights of workers are being eroded. Dismissals have been on the increase in recent years and the principles of Convention No. 158 are not applied. No laws furthering the aims of the Tripartite Declaration have been passed.

The Government of Cambodia states that MNEs' activities have not given rise to conflicts with national policy objectives nor with workers' interests. There have been no policy changes during the period covered by the survey. Due to 23 years of war, this is the first survey to which Cambodia is replying. New legislation, i.e. the Investment Code, was enacted in August 1994. No difficulties have arisen with respect to observing the Declaration.

The Government of Canada reports that MNEs play an important role in the national economy. According to the most recent data available (1993), foreign-owned enterprises accounted for 20.9 per cent of the country's total assets. The 1986 Competition Act, which is still in force, lays down the basic principles for the conduct of business. With the increasing internationalization of the economy, several initiatives were made between 1992 and 1995 to enhance cross-border enforcement of this legislation. These include the signing of the North American Free Trade Agreement (NAFTA) which contains non-binding provisions relating to competition laws and cooperation for their enforcement, and the 1995 Canada-United States Competition Policy Agreement. NAFTA, which came into force in January 1994, is the only international agreement to link the enforcement of labour standards to trade. Under the Agreement on Labour Cooperation (NAALC), Canada, the US and Mexico undertake to improve working conditions and living standards and to protect and improve workers' rights. The Government lists the areas in which labour principles are to be promoted and respected: freedom of association and the right to organize; the right to bargain collectively; the right to strike; prohibition of forced labour; labour protection for children and young persons; minimum employment standards; elimination of discrimination in employment; equal pay for women and men; prevention of occupational injuries and illnesses; compensation in cases of occupational injuries and illnesses; and protection of migrant workers. It describes the programme through which the parties would work towards attaining these goals and the procedures for dealing with disputes that may arise. Canada is negotiating a bilateral accord on labour cooperation with Chile, as part of an interim bilateral trade agreement. As a member of the OECD, Canada adheres to the various OECD codes, declarations and decisions which have a bearing on international investment and the activities of MNEs. Bilateral investment agreements have either been concluded or are being negotiated with a number of CEECs and developing countries. The Government of the Province of Quebec notes that on average the incidence of labour-related problems in MNEs does not exceed that in other large enterprises. It draws attention to two disputes involving MNEs that arose during the period under review. The first concerned the acquisition by a foreign multinational (country of origin indicated) of non-unionized stores belonging to a big chain, and the subsequent closure of those stores which had unionized workers. The second concerned a strike in a flour-mill which lasted more than one year and during which strikebreakers were brought in. On the whole, however, MNEs tend to have more joint consultation arrangements than other companies -- 39 as opposed to 35.6 per cent. One quarter of all MNEs have joint job evaluation committees whereas only 8.8 per cent of other enterprises do. Nine per cent of MNEs have joint committees that look into social benefit schemes and 2 per cent of them have committees that deal with matters concerning staff movements. The situation is about the same in local companies. The 1990 Labour Standards Act which came into effect in January 1991 introduces changes with regard to the following: the right to three weeks' annual leave for those with five years' continuous service; the right of workers with at least three years' continuous service to submit complaints of unfair dismissal; the right to 18 weeks of maternity leave and 34 weeks' parental leave with guaranteed reinstatement; and the principle of equal pay for part-time and full-time workers in the same enterprise. Fifty-nine per cent of collective agreements in MNEs contain provisions concerning maternity leave and 29 per cent have provisions relating to parental leave. However, only 2 per cent of collective agreements in MNEs apply fully to part-time workers as opposed to 13.2 per cent of agreements in other enterprises. The Act to amend the Labour Code of Quebec (11 May 1994), is intended to facilitate the conclusion of collective agreements of more than three years' duration. MNEs are the main proponents of these types of contracts. The Act for the Development of Manpower Training (22 June 1995) provides for employers to devote 1 per cent of their wage bill to training. Those with a wage bill exceeding Can$1 million have to apply the law with effect from 1996. Other laws of relevance to MNEs are the Act to amend the Act on Complementary Retirement Systems (17 June 1994), the Act to amend the Tax Act (15 June 1993) and the Act to amend the Act concerning the Ministry of Cultural Communities and Immigration (no date given).

The Government of Chad states that MNEs' activities do not conflict with workers' interests. No new laws and regulations have been adopted since the last survey with a view to furthering the aims of the Tripartite Declaration.

The Government of Chile states that during the period under review a number of changes relating to labour relations and FDI were introduced. Among them were the passing of Act No. 19.404 of 21.8.95 concerning old-age pensions and the carrying out of heavy physical work, and Legislative Decree No. 600 (no date given) which eliminates restrictions on the repatriation of capital. The following were also prepared for consideration: the Bill to reform the Training and Employment Statute; the Bill to broaden the authority of the Labour Administration and the Bill to strengthen the right to organize and bargain collectively. The Government's policies and programmes are destined to keep unemployment rates low and to enhance the quality of jobs. The labour policies are in harmony with the Tripartite Declaration and the operations of MNEs have in no way conflicted with national policy and workers' interests. MNEs and national enterprises are treated in the same way and they all are subject to, and must respect, the national legislation. The Labour Administration authorities have implemented policies and programmes for the following: to prevent the violation of labour standards; to reorganize procedures for the registration and functioning of trade unions; to optimize the procedures and activities of the department that deals with collective bargaining; to evaluate the application of labour standards; to assess activities under the Workers' Training and Education Fund; and to systematize legislation and jurisprudence in the labour field. The goals are: to consolidate the decentralization process; to involve employers' and workers' organizations in official inspection methods with a view to improving the observance of labour laws, and to strengthen the capabilities of the Labour Administration. In 1995 a unit was set up to collect, process and analyse information relating to the evolution of labour relations systems in the country. Complementary activities are being carried out by those departments within the Ministry of Labour and Social Security, which deal with labour inspection, collective bargaining and workers' organizations.

The Government of China reports that at the end of June 1994, foreign investment in China amounted to US$76.6 billion, and that the number of foreign- funded enterprises exceeded 100,000. The number of employees in such enterprises stood at 140 million. In view of the "wide range of issues covered" by the questionnaire for the Survey and the amount of work that preparation of a meaningful response would entail, the Government is unable, due to "some constraints", to "provide an item-by-item reply". However, it provides copies of the "Provisions on Labour Administration of Enterprises with Foreign Investment" which were drawn up by the Ministry of Labour and the Ministry of Foreign Trade and Economic Cooperation, and promulgated on 11 August 1994. It notes that the "meaningful information" contained in this document may be "regarded as a partial reply". The "Provisions" cover the following: recruitment (articles 5 and 6); vocational training (article 7); the negotiation, content, modification and termination of labour contracts (articles 8-13); wages (articles 16 and 29); social insurance and benefits (articles 17-23); leave entitlements (article 24); dispute settlement (articles 25-26) and sanctions to be imposed when the "Provisions" are violated (articles 27-34).

The Government of Colombia reports that MNEs respect the national laws relating to human rights, labour matters and environmental protection. As regards pay, there must be no distinction between nationals and foreigners doing the same type of job. National treatment is accorded to foreign-owned enterprises which must also respect the legislation in force, concerning employment and related matters in both the private and public sectors. When necessary the State uses the mechanisms at its disposal to have the activities of MNEs brought into line with the relevant legislation. Opportunities for FDI and the establishment of MNEs are increasing because of liberalization, industrial restructuring and the internationalization of the economy. MNEs create jobs for both skilled and unskilled workers. During the period covered by the Survey regulations relating to Act 100 (1993) were issued. They emphasize the relationship between economic and social well-being, improved living standards and the importance of satisfying basic needs, including in the areas of health and pensions. Government, employers and workers concluded a social pact and efforts to control inflation are under way. A key objective is to create productive employment using adequate technologies and a social policy that addresses the question of productivity while paying special attention to vulnerable groups of workers. No problems have arisen with regard to the observance of the Tripartite Declaration and MNEs respect the national labour standards which are enforced by the Government. The National Association of Manufacturers reports that the activities of MNEs neither conflict with national policy objectives nor with the interests of workers. Working conditions in MNEs in Colombia are generally better than those in national enterprises and this contributes to an improvement in living standards. The General Confederation of Democratic Workers states that no new laws for furthering the aims of the Tripartite Declaration were enacted during the period under review. There is very little control over MNEs. However, the problems that have arisen concern not only these enterprises but also others operating in the country. The national laws in force in Colombia apply to all enterprises. None the less, they are not always respected and many enterprises pay wages which are less than the statutory minimum and they use different means to prevent the formation of unions and collective bargaining.

The Government of Costa Rica replies in the negative to all three questions.

The Government of the Czech Republic gives an overview of economic and social developments which marked the transition from a centrally planned, to a market-oriented economy. A number of macroeconomic and social reforms were instituted. Their aim is to create a favourable climate for foreign investment, develop the services sector, establish a network of employment services to facilitate the functioning of the labour market, and support the development of employers' and workers' organizations and collective bargaining. The creation of an efficient social security system is also one of the aims of social reform. There has been significant inward investment (examples of some 21 major foreign MNEs named) in all sectors of the economy. Several of the 21 largest accounting firms serving local enterprises and MNEs in Prague (ranked by total number of employees) were established during the period under review (data in material annexed to report). Since the reform measures were instituted in close collaboration with the social partners, there is stability in the social, political and macroeconomic spheres. Inflation is low and unemployment was around 3 per cent in 1995. MNEs' activities have not given rise to conflicts with national policy objectives and workers' interests. They have brought substantial benefits -- i.e., new production technologies, training of employees, higher OSH standards, better working conditions, innovative and improved management practices, and new forms of social dialogue. The Labour Code was amended and new legislation was adopted in the areas of employment and social security. The national labour legislation and related regulations, as well as the Tripartite Declaration, are applicable to all enterprises in the Czech Republic. MNEs' activities have been in conformity with the law, and the Government is not aware of any difficulties as regards the application of the national laws or the principles of the Declaration. The Regional Labour Offices which are responsible for labour inspection, have been given copies of the Tripartite Declaration. They implement its principles in their daily activities and monitor its application by MNEs. The Czech and Moravian Chamber of Trade Unions (MK OS) states that it is not possible to determine whether MNEs' activities conflict with national policy objectives, since trade unions are not privy to contracts between the Government and MNEs. A number of problems may arise because of the transitionary state of the economy and the speed with which market reforms are being implemented. Long-term policy objectives and workers' interests seem not to be major factors in determining the contractual obligations of MNEs. Certain problems may have arisen because of the abolition of traditional trade unions, profound changes in traditional Czech industries such as glass-making, uncontrolled mining and the impact of industrial activities on the natural environment. The Labour Law has been amended and a number of new laws enacted. However, these have been to the disadvantage of workers. The minimum wage is way below that which is necessary for maintaining minimum living standards. Government has shown a general reluctance to extend "higher level" collective agreements to certain enterprises and some employers' organizations have been unwilling to conclude such agreements. Tripartism has been weakened due to the Government's reluctance to negotiate and the union's defensive stance on this. According to MK OS, the principles of the Tripartite Declaration have not been sufficiently utilized to guide relations among the social partners.

The Dominica Employers' Federation reports that workers and their organizations complain that foreign enterprises, including MNEs, "fly out of the country by night" when fiscal exemptions and economic incentives expire, leaving workers jobless and debts to banks, state institutions, utility companies and workers. No changes were made with specific reference to the Tripartite Declaration and there are no known difficulties as regards the observance of this instrument.

The Government of Ecuador takes note of the observations made in paragraph 1 of the Tripartite Declaration as regards the effects of the activities of MNEs, and it affirms that it values the aims of this instrument.

The Government of Egypt reports that during the period under review, no new laws or policies were adopted to enhance the objectives of the Declaration. Since 1991, a programme of reforms for building a market economy has been under way and the 1991 Public Enterprises Law No. 203 provides for the privatization of state enterprises. Information by the Federation of Egyptian Industries shows that MNEs' activities (examples of enterprises from the pharmaceutical and metal trades cited by name) have not given rise to conflicts with national policy objectives and workers' interests.

The Government of Estonia states that the national Constitution, the Law on Foreign Investments, the Business Law and legislation regulating labour relations, apply to both national and multinational enterprises. The Government has no information about MNEs deliberately obstructing the exercise of workers' rights. The Estonian Confederation of Industry and Employers mentions that while there have been misunderstandings during the negotiation of collective agreements in certain MNEs, collective bargaining and labour relations pose no problems in others (examples of two companies (named) given to illustrate this point). According to information from the Association of Estonian Trade Unions, the activities of MNEs do not conflict with national policy objectives and the interests of workers. MNEs exert some influence on political developments. Since they often pay higher wages and offer better conditions of work, workers prefer to be employed by multinationals. However, problems in relation to the protection of workers' rights have arisen in some MNEs and there have been cases of managers directly obstructing collective bargaining. More often, they indirectly restrict workers' freedom to form and/or join trade unions. Sometimes the standards of industrial relations in MNEs are lower than those observed in the home country. Representatives of MNEs usually attribute this to insufficient knowledge of the Estonian language. Estonian entrepreneurs are not familiar with the Tripartite Declaration.

The Government of Finland replies that the activities of MNEs have not given rise to conflicts with national policy objectives and workers' interest. In general, there are no particular measures regarding multinationals in Finnish legislation or administrative practice. Consequently MNEs have no special rights or obligations. The achievement of national economic objectives requires close cooperation between the Government and the social partners, which will include MNEs since they are often members of local employers' organizations. During the period under review an Act concerning the taxation of employees and another, to enhance equality between men and women, came into force. One of the goals of Finland's industrial policy is to attract inward FDI and, to this end, legislation liberalizing former restrictions on foreign ownership (i.e. company acquisitions) was enacted on 1 January 1993. According to an OECD report (copy attached to reply), FDI inflows increased from US$406 million in 1992 to US$865 million in 1993 and US$1,467 million in 1994. FDI outflows rose from US$ -752 million in 1992 to US$1,677 million in 1993 and US$3,771 million in 1994. Inward FDI stock amounted to US$6,635 million in 1994, while outward stock was US$14,674 million in that same year. A report by the Bank of Finland (copy attached to reply) shows that in 1994 more than half of foreign investment in Finland was in manufacturing, with metal and engineering industries accounting for the largest share. Inward FDI comes mainly from Sweden, Switzerland, the Netherlands, Denmark and the US. Employment in Finnish manufacturing MNEs abroad rose from 133,330 in 1992 to approximately 138,300 in 1994. No difficulties have arisen for any of the addressees of the Tripartite Declaration in their attempts to respect its principles. The Confederation of Finnish Industry and Employers and the Employers' Confederation of Service Industries state that MNEs in Finland, like other comparable employers, respect collective agreements and national labour standards. They are normally members of the Finnish employers' organizations. During the reporting period there were no new developments of relevance to the Tripartite Declaration. Foreign investment in Finland has been further liberalized from the beginning of 1993 when new legislation concerning foreign acquisitions of enterprises came into force. Foreign ownership is now entirely free, except for cases where essential national interests may be at stake. The Industry Department of the Ministry of Trade and Industry decides on a case-by-case basis whether this internationally defined criterion is met, after which the Government takes the final decision on whether or not to allow a foreign acquisition. 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) indicate that there have been no significant incidents of conflict between the activities of MNEs and national policy objectives and the interests of workers. As a rule, foreign enterprises have to observe the standards set by collective bargaining, the industrial relations system and labour legislation. Legislation passed in January 1993 removes restrictions on foreign ownership. Consequently there are less possibilities for government authorities to monitor FDI. The significant legislative reforms are related to developments in the EU and the European Economic Area (EEA). By virtue of its membership in the EU, Finland is bound by the Council Directive on the establishment of a European Works Council. Another important Council Directive is the one concerning the Transfer of Undertakings, which has applied to Finland since 1994. It has improved the rights of workers in cases of the transfer of enterprise activities. However, some recent, purely domestic incidents show that implementation of the Directive could be somewhat improved. The addressees of the Tripartite Declaration have not reported any difficulties as regards its application. However, it is to be stressed that at the enterprise level, the Declaration is not known. A survey among elected workers' representatives in foreign-owned enterprises, carried out by the Chemical Workers' Union for the purpose of completing this questionnaire, showed that the effects of foreign ownership are felt at the shop-floor level because of the greater need for management to report to headquarters and obtain approval for significant local decisions. Local management often lacks the authority to take decisions on matters raised by the employees.

The National Council of French Employers reports that the principles of the Tripartite Declaration are always respected by MNEs.

The Government of Gabon reports that the activities of MNEs do not conflict with national policy objectives or the interests of workers. During the period covered by the survey, the following laws were passed: the Ordinance of October 1993 (008/93/PR) creating the National Employment Office as well as Decree No. 273/93 concerning the application of the Ordinance, and the Act of 21 November 1994 (No. 3/94) which amends the Labour Code. Structural adjustment programmes together with the devaluation of the CFA franc have led to a significant decrease in investment. Consequently, many enterprises have either shut down operations or reduced their workforce. This has aggravated unemployment and lowered purchasing power considerably. The Gabonese Confederation of Free Trade Unions (CGSL) states that structural adjustment in Gabon has led MNEs to encourage locals to leave their jobs voluntarily in order to alleviate social security contributions. The CGSL notes that workers and their representatives faced difficulties with regard to the application of the principles contained in the Declaration prior to the enactment of the new Labour Code. However, the new Code contains provisions that are favourable to the exercise of freedom of association.

The Government of Germany points out that the information provided in its last report is still applicable. It adds that during the period under review it continued efforts to improve the regulatory framework governing the activities of MNEs and their effects on workers. Legislation is being drafted to incorporate into national law the provisions of Council Directive 94/45/EC on the establishment of a European Works Council. The Confederation of German Employers' Associations (BDA) is of the opinion that the survey is based on the assumption that MNEs enjoy a special status in host countries as regards social policy, which is not the case in Germany. MNEs are subject to the same labour and social legislation as local and other companies. Those which belong to the BDA's member organizations participate, like local enterprises, in labour-related matters (e.g. wage policy) and they are bound by sectoral collective wage agreements.

The Government of Grenada replies in the negative to all three questions.

The Government of Hungary reports that the activities of MNEs are generally not contrary to its national policy objectives or workers' interests. MNEs have made an important contribution to the achievement of economic objectives such as the privatization of SOEs and economic growth. One undesirable feature of the privatization process, however, has been staff lay-offs. None the less this is usually done in accordance with the regulations which seek to protect the interests of workers. Since the last survey, several new laws have been enacted to facilitate the transition to a market-oriented economy. New legislation, including the Labour Code enacted in 1992, and the New Labour Safety Code passed by Parliament in 1993, are in keeping with the Tripartite Declaration. No special difficulties have been experienced in applying the principles of this instrument during the period under review.

The Government of India replies in the negative to all three questions.

The Government of Ireland replies in the negative to all the questions.

The Government of Italy reports that MNEs' activities have not given rise to conflict with national policy objectives nor with workers' interests. None of the addresses of the Declaration have faced difficulties to implement its principles. It draws attention to Council Directive No. 94/45 on the establishment of a European Works Council, which was adopted during the period under review and must be complied with by 22 September 1996. It gives an overview of the provisions of the Directive, which applies to MNEs operating in the EU. The General Confederation of Industry (Italy) replies in the negative to all three questions.

The Government of Japan states that its reply to the fifth survey is still applicable. It adds that the trend of Japanese enterprises locating overseas continues and that various measures have been put into place to enable these MNEs to carry out their activities smoothly in the host countries. It refers to the Actions (ten items) Expected of Enterprises in Development of their Business Activities Overseas issued in 1989. These "proposals" urge Japanese MNEs to respect local trade unions and workers' representatives, and to observe good industrial relations practices. The Government has been trying to make these "proposals" well known. In 1992 they were partially revised to include a provision relating to safety and health. The Japan Institute of Labour (JIL) has issued a manual dealing with labour-related issues (by region) for use by Japanese MNEs abroad. Since 1990 the JIL has held seminars in host countries to Japanese MNEs, and in 1994 it commissioned research from workers' and employers' organizations, as well as research institutes in 15 countries where Japanese MNEs are based. Tripartite survey teams have also been sent to various countries to collect information on the labour situation. Seminars for Japanese managers in EU-based enterprises have been held. In 1993 a "Survey on Actual Situation of Vocational Life of Workers Despatched Overseas" was conducted to gain some insight into the ways in which Japanese workers adjusted to living and working in different host countries. Since 1994 there has been a "Society for Research on Personnel and Labour Management in Multinational Enterprises", designed to improve personnel management in MNEs in Japan. The Japan Federation of Employers' Associations (NIKKEIREN) supports the Government's view with regard to the globalization of Japanese MNEs. It notes that a group of major organizations representing the business community adopted the Guidelines for Overseas Direct Investment (Kaigai Tshi Kd Shishin) in order to address the social and labour dimensions of this overseas expansion. It is increasing its efforts to make these widely known to investors. The Guidelines (copy attached to report) cover, inter alia, the following: "Establishment of Sound and Fair Labor-Management Relations" (para. 4); "Employment and Promotion of Local Personnel" (para. 5); "Promotion of Education and Training for Local Employees" (para. 6); "Cooperation with Industries of the Host Country" (para. 10); and "Promotion of Technology Transfer" (para. 11). The Japanese Trade Union Confederation (JTUC-RENGO) points out that there have been cases in which Japanese enterprises experienced difficulties in respecting the principles of the Tripartite Declaration. It attributes this partly to the lack of will on the part of some managers to respect the Tripartite Declaration, and partly to the non-enforcement of national laws and regulations by authorities of the host countries. It notes that the ideal would be for host country governments and local management of enterprises to respect the principles of the Tripartite Declaration. However, since this is not the case, the "second best solution" would be to involve parent companies, their trade unions and home country governments in the search for a solution to problems relating to the practices of overseas subsidiaries. The JTUC-RENGO is of the view that many governments and headquarters of MNEs in home countries are "very reluctant" to become involved in resolving labour-management problems of affiliates in other countries. It expresses the hope that an agreement can be reached or "a new document adopted by the ILO Governing Body" as a result of which governments, employers and trade unions in home countries would collaborate with their counterparts in stopping "any flagrant violation of laws and legal procedures by their subsidiaries in other countries, especially in the developing regions".

The Government of Jordan replies in the negative to the first two questions. It notes that, to date, there are only a small number of MNEs in the country and so far, their influence on social, economic and political matters has been relatively weak. The addressees of the Tripartite Declaration have had no difficulties in respecting its principles. The Amman Chamber of Industry (Jordan) replies in the negative to all the questions.

The Government of the Republic of Korea reports that no conflicts have arisen between the activities of MNEs and national policy objectives. During the period covered by the survey, certain laws were amended to encourage inward investment. Under the amended Enforcement Decree of the Foreign Capital Inducement Act, the Comprehensive Assistance Centre for Foreign Investment and nationwide investment review consultation committees have been set up. All administrative procedures relating to the establishment of enterprises, fiscal advantages for high-tech companies and the granting of commercial loans have been simplified. The head of the competent authority is responsible for approving and following up all investment-related matters. There have been no difficulties in implementing the principles of the Declaration. The Korea Employers' Federation reports that MNEs' activities do not conflict with national policy objectives. Regulatory reforms to improve conditions for foreign investment are under way. The Ministry of Labour has set up a special unit to oversee labour-management relations in MNEs. No difficulties have arisen for employers in their efforts to respect the principles of the Declaration.

The Government of Kuwait states that MNEs' activities have not given rise to conflicts with national policy objectives or workers' interests, as they are governed by the Constitution and national legislation such as Labour Law No. 38/1964, all of which are applicable to the private sector. The Government is generally favourable to the adoption of new laws in line with the spirit of the Declaration. None of the addressees of the Declaration have faced difficulties in applying its principles.

The Federation of Luxembourg Manufacturers (FEDIL) states that the principles of the Declaration are embodied in the national legislation, and respected. FEDIL is not aware of difficulties that the addressees of the Declaration may have faced in implementing this instrument. The Confederation of Independent Trade Unions notes that in their search for profitability, MNEs in Luxembourg increasingly carry out social policies which infringe upon workers' rights. In recent years, weekend working has been introduced in the manufacturing and services sectors. By virtue of the internationalization of the economy and the complexity of the legal and commercial structures which characterize MNEs, the laws on information, consultation and codetermination are becoming increasingly inadequate in the case of these enterprises.

The Government of Malaysia reports that, in general, the formation of national unions, except in the textile and electronics industry, is encouraged. In the textile industry, there are state-based unions, while in the electronics industry establishment unions are encouraged. These unions can affiliate to National Labour Centres, such as the Malaysian Trade Union Council. The principles of the Declaration are complied with. According to the Malaysian Trades Union Congress, MNEs "constantly put pressure" on the Government to provide them with "non-union" guarantees for continued investment. In their view, an example of this occurred when the Government rescinded a 1988 agreement for the formation of a National Union for Workers in the Electronics Industry. No actions have been taken to further the aims of the Declaration and the Government has made no attempts to respect its principles.

The General Confederation of Employers of Mauritania (Confédération générale des Employeurs de Mauritanie) states that given the limited number of MNEs operating in the country, their activities have neither given rise to conflicts with national policy objectives nor with the interests of workers. No new laws were adopted during the period covered by the survey. The existing legal framework is favourable to the realization of the objectives of the Declaration. Neither the Government nor the social actors have faced difficulties in their attempts to respect the principles contained in this instrument. The Free Confederation of Workers of Mauritania (Confédération libre des Travailleurs de Mauritanie, CLTM) gives a historical background of MNEs' activities in the country. MNEs have been in Mauritania since the 1950s, mainly in the mining sector -- e.g. copper, mineral exploration (four companies named), as well as in related distribution services. After independence, the Government adopted a policy of encouraging nationals to invest in sectors hitherto dominated by MNEs -- i.e. trade, manufacturing, banking and insurance. The already small number of MNEs decreased significantly in the mid-1970s, mainly due to nationalization, the creation of a local currency and the development of private local capital. The lack of basic infrastructure and the small size of the domestic market also contributed to that drop. The CLTM names six MNEs active in the field of infrastructural development and reports that MNEs' activities have always been at odds with national policy objectives and the interests of workers, because these enterprises impose their rules and methods. While many laws for attracting foreign capital have been passed, they do not take into account the principles of the Declaration. The Government has "never shown interest" in applying national laws or ILO Conventions, whether or not they have been ratified. Workers are low paid and have no health and social security coverage. Furthermore, as MNEs resort to subcontracting, workers cannot identify their employer in cases of grievances, and this also undermines job security. These practices take place "sometimes with the complicity of the Government, sometimes as a result of its inability to take the necessary action". The Government itself resorts to subcontracting. In that respect, two state companies in the mining sector and in public utilities (names given) are cited by way of example. All the addressees of the Declaration have had difficulties to implement its principles. The Government is weak and thus unable to make MNEs respect the principles concerned, while the latter have to operate in a new environment, marked by different mentalities and a changed legal framework. As for the workers, they encounter problems due to the absence of social dialogue and the lack of political will on the part of the Government to ensure that laws and regulations are respected. The judicial system is characterized by serious deficiencies as no specific training is provided for dealing with the settlement of labour disputes.

The Government of Mauritius states that the activities of MNEs have, so far, not given rise to any conflicts with national policy objectives or with the interests of workers.

The Government of Mexico states that MNEs act in accordance with national policy objectives. During the period under review their activities did not conflict with those objectives nor with the interests of workers. It provides an annex listing the laws governing different industrial activities and trade, which were either amended or enacted between 1989 and 1994. Among them is the Foreign Investment Act (27.12.1993) which is intended to create a favourable investment climate, make the country competitive in the global economy and establish clear rules for inward investment in productive activities. National treatment for foreign investors, the lifting of restrictions on foreign participation in different sectors of the domestic economy and the simplification of administrative procedures for investment, are central features of the new regulatory framework, which is consistent with the national Constitution. In 1995, the national Constitution (paragraph 4, section 28) was amended, thereby facilitating greater foreign participation in the following sectors and industries: banking and finance; satellite communications, railway transport; petroleum extraction and specialized air transport. The NAFTA and the North American Parallel Agreement on Labour Cooperation between the United States, Mexico and Canada came into force during the period under review. Their provisions pertaining to job creation, improvement of working conditions and living standards, and the protection of workers' rights, demonstrate the commitment of the signatories to creating a larger and stable market for trade in goods and services, while taking into account the social dimensions of such economic initiatives. The National Development Plan 1995-2000 recognizes the importance of foreign private capital for the domestic economy and the contribution of MNEs to infrastructural, technological and economic development. There have been no difficulties as regards the observance of the Tripartite Declaration by MNEs. The Mexican Confederation of Chambers of Industry (CONCAMIN) reports that from the employers' point of view the presence and activities of MNEs have not given rise to conflicts. All the national laws in force apply to MNEs. Multinationals continue to create jobs and they comply with all the laws, including those pertaining to labour. It notes in particular the coverage and observance of the Parallel Cooperation Agreements in the Labour and Environmental Fields (Tratados Paralelos de Cooperación en Materia Laboral y Ambiental). With regard to economic liberalization and globalization, Mexico has signed many commercial agreements. These, together with its membership in the WTO and the OECD, have created a favourable climate for FDI. Even though no new laws to further the aims of the Declaration have been passed, no difficulties have arisen with regard to the application of the Tripartite Declaration, the principles of which are reflected in the provisions of the national Constitution and those of the national labour laws. MNEs' practices in relation to employment, training and OSH are in line with, and sometimes exceed the national requirements. The Confederation of Mexican Workers states that the law does not distinguish between national and multinational enterprises when it comes to the right to organize and bargain collectively. The principles contained in ratified ILO Conventions and their corresponding Recommendations are incorporated in the national labour legislation.

The Government of Namibia replies in the negative to all three questions.

The Government of the Netherlands states that its reply to the last survey is still applicable. It emphasizes that MNEs are treated in the same way as national enterprises and that the country's laws and regulations in all fields apply to enterprises without distinction. The Federation of Netherlands Industry and Employers agrees with the Government.

The Government states that New Zealand welcomes and encourages foreign investment. MNEs are seen as making a positive contribution to the economy by increasing private capital inflows, upgrading skills and technologies, promoting competition, efficiency and exports, and creating jobs. During the period covered by the survey, the Overseas Investment Amendment Act 1995 was passed and accompanying Regulations were issued. The new regulatory framework streamlines administrative procedures for processing and approving investment applications. MNEs must obtain approval to acquire or take control (i.e., 25 per cent or more ownership or controlling interest) of assets in the country. The fact that few applications are refused attests to the favourable attitude towards foreign investors. In 1994, the US accounted for the largest number of all approvals for FDI (23 per cent), followed by Australia (14 per cent) and the territory of Hong Kong (11 per cent). Commercial leasing, financial services and forestry were the main activities of interest to investors. There is an Overseas Investment Commission which monitors compliance with the statutory requirements governing inward investment, and the Government is of the view that this will make it possible to assess the degree of observance of the Tripartite Declaration. MNEs, like local enterprises, must abide by the national laws in force. The New Zealand Employers' Federation concurs with the Government.

The Government of Nicaragua replies in the negative to all the questions.

The Government of Nigeria reports that MNEs' activities have not given rise to conflict either with the principles of the Tripartite Declaration or with national policy objectives. However, even though most MNEs are downsizing in order to remain more competitive, the interests of workers are taken into account when determining dismissal compensation. Most national policy objectives are reflected in legislation or policy statements. During the period under review, the Nigerian Enterprises Promotion Act, 1972 and the Exchange Control Act, 1972, were amended to attract foreign investment. MNEs can now own and operate businesses in sectors hitherto reserved for nationals or where the level of their participation was restricted. Limits on the amount of foreign capital allowed into the country have also been removed. The observations made by the Nigeria Employers' Consultative Association are similar to the Government's. The Nigeria Labour Congress (NLC) reports that the activities of MNEs in the petroleum sector, particularly as regards their persistent demands to increase the prices of petroleum products, have often conflicted with the national policy objective of stabilizing domestic price levels and controlling inflation. Price increases in response to those pressures have greatly eroded workers' incomes and exacerbated poverty levels. The NLC is not aware of any new laws, policy changes or action taken to further the aims of the Tripartite Declaration. No difficulties have arisen with regard to attempts to respect the principles of the Declaration.

National legislation in Norway incorporates the principles of the Tripartite Declaration and MNEs are governed by the same regulations as national enterprises. The Government of Norway notes that the activities of MNEs have not given rise to conflicts with national policy objectives. Efforts to improve industrial relations in particular, have resulted in several legislative measures relating to enterprises which also further the aims of the Declaration. Following consultations with the Norwegian Federation of Trade Unions and the Confederation of Norwegian Business and Industry, it has been agreed that the requirements of the Council Directive on the Establishment of a European Works Council will be incorporated in the national legislation. Established enterprise structures are undergoing rapid transformation due to changes in ownership, for example, as a result of mergers and sell offs. These developments are raising new questions about the protection of workers' rights. A Committee is studying these problems with the aim of making the legislation "more precise". The Confederation of Norwegian Business and Industry shares the views expressed by the Government.

The Government of Pakistan states that MNEs' activities have not given rise to conflicts with national policy objectives because policies are often formulated taking into consideration the problems faced by workers. Therefore, workers' interests are protected to the greatest extent possible. No new laws to further the aims of the Declaration were passed. The labour legislation in force regulates the terms and conditions of employment of workers in MNEs and guarantees the protection of their rights. According to the Employers' Federation of Pakistan (EFP), the activities of MNEs have contributed greatly to industrial growth and development. Thirty-three of the top 101 companies (ranked by market value of assets) are MNEs. They have contributed to the following: increased job opportunities; HRD; the transfer of technology (including automation and information technologies); and new methods for factory construction and the provision of financial services. MNEs have played an important role in the field of education on business and economic issues and launched research and development programmes. According to a recent survey of 100 enterprises in Pakistan (no date given), the value of their investment was approximately Rs.10 billion, with sales revenues of Rs.40 billion (about 4 per cent of GDP). They contribute about one-sixth of the Government's total tax revenues, and provide about 50,000 jobs. MNEs' activities do not appear to have violated any national labour legislation or ILO Conventions. The EFP is of the view that MNEs are more "considerate and sympathetic towards their employees compared to national counterparts", particularly in matters relating to freedom of association. They are also more willing to enter into negotiations and have profit-sharing arrangements. National financial and investment regulations were changed to encourage FDI, and this led to an increase in the number of MNEs locating in the country. However, on the whole, the same legislation applies to all enterprises. The Government is planning to amend the Labour Policy in order to provide greater security for contract labour. No difficulties have arisen in attempts to respect the aims of the Declaration.

The Government of Poland reports that the presence of MNEs in the country is a relatively new phenomenon and that no comprehensive research on aspects of this development has been undertaken so far. The national labour legislation makes no distinction between local and foreign enterprises. All enterprises, regardless of their ownership, must respect the laws in force. In privatized former SOEs, the practice is for representatives of the future employers and organizations representing the workers concerned to conclude "social agreements" which guarantee that certain workers' rights and privileges will be preserved. These include the maintenance of current employment levels for between one and a half and two years after the change of ownership, and similar commitments with respect to wages and social security entitlements. The Government's reply focuses on a sample of 2,319 enterprises which were inspected in 1995. They had a combined workforce of 276,076. Comprising wholly foreign-owned MNEs, public-foreign private joint ventures and private local and foreign joint ventures, they are referred to by the Labour Inspectorate as MNEs. The Independent Self-Governing Trade Union "Solidarno" (Poland) reports that overall, MNEs' activities have not given rise to conflicts, and that these enterprises have had a positive impact on the labour market and the national economy as a whole. No new legislation of relevance to the Tripartite Declaration was passed during the period under review. There were difficulties with a joint venture in the automobile industry in Warsaw, involving a partner from an EU country (company named). In 1995, the new board of the enterprise attempted to impose changes on the "trade union statute and structures".

The Government states that the Constitution of Portugal requires that foreign investment be consonant with the country's development goals and workers' interests. During the period under review, Executive Order No. 312/95 of 28 November relating to foreign investment came into force. Foreign participation is seen as a means of creating jobs, boosting private capital inflows, and promoting more value-added activities, greater competition and internationalization. MNEs must observe the labour legislation. Official research on enterprises with 50 per cent or more foreign capital and at least 150 workers, found that the principles of the Tripartite Declaration are generally respected. Most MNEs originate from Switzerland, the Netherlands, Germany and France. They experience no difficulty in complying with the national laws and regulations which also apply to locally owned enterprises. In a few cases they observe higher standards as regards wages and benefits. FDI is channelled mainly into the textile and clothing, footwear, chemical, ceramics, food, electronics and motor vehicle industries. Jobs in labour-intensive industries tend to be less secure because production varies according to fluctuating market demand and changing requirements by management. The General Union of Workers (UGT) notes that economic globalization has provoked apprehensions about the possible relocation of MNEs to countries offering more advantageous conditions. However, on the whole, MNEs play a major role in the social and economic development of host countries and have positive effects on employment, investment and technological development. In recent years Portugal has intensified efforts to encourage MNEs, but the effects have not always been as expected. The arrival of MNEs may lead to the closure of other establishments with the resultant loss of jobs. There is also uncertainty as to whether the MNE would not eventually relocate, causing further redundancies. Initially, multinationals create direct jobs as well as indirect employment. Those that produce for the domestic market tend to respect fully the national labour laws and avoid disputes with workers and the Government. While those that essentially produce for export also take steps to avoid disputes, their interests supersede those of workers if a dispute does arise and they take little account of national policy objectives. The fact that the locus of decision-making is abroad makes it difficult to harmonize the enterprise's goals with national policy objectives. When there are consultations with the Government, the emphasis is on the company's interests rather than on the host country's economic and social development. The UGT argues that it is the Government's responsibility to get MNEs to reconcile these objectives. Except for "certain unusual cases" dialogue with trade unions is relatively uncommon and unions find it hard to establish themselves in MNEs.

The Government of Romania reports that activities by MNEs have not given rise to conflicts with national policy objectives or with the interests of workers. During the period covered by the survey, Act 57/1993 (section II) to amend Act No. 35/1991 concerning foreign investment was adopted to facilitate the activities of foreign investors. Difficulties with regard to the observance of the Declaration have arisen because the views of the national employers' and workers' organizations in Romania are not taken into account.

The St. Vincent Employers' Federation states that on the whole the activities of MNEs have not given rise to conflicts. However, there was one case in which a multinational (unnamed) closed its operations and relocated without giving due notice to the workers. Despite intervention by the Government it left without paying the necessary compensation to workers. No new laws of relevance to the Tripartite Declaration have been passed. Failure to observe the principles of freedom of association and collective bargaining far exceeds initiatives to apply them.

The Singapore National Employers' Federation replies that on the whole the country's experience with MNEs can be considered as positive, as regards employment and labour relations, training and the transfer of technology. In a context marked by macroeconomic changes, global economic developments, and projected slower economic growth, national enterprises will have to take certain internal measures to remain competitive.

The Government of Slovakia states that article 35 of the national Constitution guarantees everyone including all enterprises, the right to engage in entrepreneurial activities. Existing legislation enables MNEs to engage in such activities in accordance with the relevant regulations. The operations of MNEs have not given rise to conflict with the interests of workers.

The Government of Slovenia states that there are only a limited number of MNEs (six named) located in the country and they must abide by the relevant legislation. Enterprises with Slovene participation operating abroad must respect the legislation of the host countries and they do not have any influence on the social policies of these countries. There is no information to suggest that the activities of MNEs or domestic enterprises have given rise to conflicts with national policy objectives or the interests of workers. No difficulties have arisen for any of the addressees of the Tripartite Declaration in their attempts to respect its principles during the period under review.

The Government of Spain states that the labour legislation makes no distinction between enterprises on the basis of ownership and it therefore applies to both national enterprises and MNEs. In this regard it mentions Royal Decree 2/1995 of 7 April 1995 which approved the amended Labour Procedure Act and Act 14/1994 of 1 June concerning temporary work enterprises (empresas de trabajo temporal). As a member of the EU, Spain has until 22 September 1996 to incorporate into its laws and regulations, the provisions of "Council Directive 94/45/EC of 22 September 1994 on the establishment of a European Works Council or a procedure in Community-scale undertakings and Community-scale groups of undertakings for the purposes of informing and consulting employees". The General Union of Workers (UGT) reports that there is no national policy for coordinating investment by MNEs with the interests of workers, in accordance with the spirit of the Tripartite Declaration. Foreign investment is given priority with a view to fulfilling macroeconomic and commercial goals. Over the last few years, many MNEs in different sectors have been disinvesting, cutting output or relocating plants, because of the economic crisis and in keeping with the business strategies of parent companies. No compromises or efforts to maintain investment were made, even though in most cases, the enterprises had in the past, made high profits in Spain. Five enterprises were cited by way of example (names given). Even where governmental authorities proposed short and medium-term solutions (e.g. new business partners, change in activities etc.) they were unable to prevent MNEs from downsizing and restructuring, generally at great social costs. No new laws were passed or measures adopted in a bid to fulfil the aims of the Tripartite Declaration. The general policy has been to encourage inward FDI without focusing on the social dimension. MNEs take advantage of favourable economic conditions to make large profits and leave in times of economic crisis, leaving the State to deal with the unemployment resulting from their actions. Neither the Government nor employers attach importance to the Tripartite Declaration. They are driven by market considerations and the commitment to liberalization. Trade unions are in a weak bargaining position. Enterprises begin by proposing complete plant closures and unions find themselves having to settle for drastic reductions in both staff and labour rights. There have even been cases in which MNEs have called for a reorganization of the local enterprises which they want to acquire. This usually entails staff cuts (particularly as regards older and less qualified workers), the curtailing of labour rights and reduction of social security coverage. The Government generally fulfils these demands with not much objection, with the State bearing the cost of the measures. Such situations arose with regard to the sale of three enterprises in the telecommunication sector (names of enterprises given).

The open market policies of Sri Lanka actively encourage FDI by MNEs. According to the Government, no conflicts with either national policy objectives or workers' interests have arisen as a result of MNEs' activities. During the period covered by the survey, the Emergency Regulations which had been in force for over a decade were lifted, allowing workers, especially those in EPZs, to exercise their rights to freedom of association and to organize. No difficulties have arisen with regard to respecting the principles of the Declaration. The Employers' Federation of Ceylon, referring to MNEs that belong to its organization, reports that they strictly follow the labour legislation of Sri Lanka. The Lanka Jathika Estate Workers' Union concurs with the statement by the Government of Sri Lanka that the open market policies encourage MNEs to invest in the local economy, and adds that they are expected to make a meaningful contribution to national economic development. EPZs have been established to promote FDI and create greater employment opportunities for youth. Most of the workforce in the zones is made up of young women. As regards the terms and conditions of employment in the zones, there have been repeated complaints in various fora dealing with labour issues, that workers employed in the zones "do not seem to get a fair deal from their employers".

The Government of Swaziland replies in the negative to all three questions.

MNEs behave no differently from domestic enterprises, and they must comply with the national laws and regulations, reports the Government of Sweden. With very few exceptions, they cooperate satisfactorily with the competent authorities and organizations representing the social partners. During the period under review Sweden became a member of the EU. Many restrictions on inward foreign investment have been eliminated. Foreign participation in local enterprises has been facilitated with the repeal of the Law on Foreign Acquisition of Swedish Firms in 1992. Legislation concerning the acquisition of real estate for commercial use was also amended. In 1993 the monopoly on postal services and job placement agencies was abolished, and a new law enabling competition in the telecommunication industry was introduced. Parliament passed a resolution calling for greater efforts to encourage inward foreign investment, and, to this end, the Invest in Sweden Agency was set up in July 1995. Since July 1994 the Swedish National Board for Industrial and Technical Development (NUTEK) has been made responsible for collecting and publishing on a regular basis, statistics on foreign-based Swedish MNEs and foreign-owned MNEs in Sweden. The Swedish Employers' Confederation and the Federation of Swedish Industries state that they have nothing to add to the Government's report. The Swedish Confederation of Trade Unions (LO) and the Confederation of Professional Employees (TCO) reiterate the observations made in replies to previous surveys, about the "the poor state of knowledge" of the Tripartite Declaration.

The Government of Switzerland states that the Swiss economy is to a great extent export oriented and that the Tripartite Declaration is of relevance to a large number of enterprises of varying sizes. Foreign MNEs, particularly those with regional offices in Switzerland, tend to act in accordance with directives issued by the parent company. Inasmuch as the effects of these directives are not felt in Switzerland, the Government would have no means of intervening in this regard. The Central Union of Swiss Employers' Associations (UCAPS) reports that its reply concerns only foreign-owned enterprises operating in Switzerland. It is not aware of activities of MNEs having conflicted with national policy objectives or workers' interest during the period covered by the survey. The Tripartite Declaration is fully accepted and its voluntary nature should be maintained. Subsidiaries of MNEs in Switzerland have the possibility of joining sectoral or regional employers' organizations, which are members of UCAPS. During the period under review, the Workers' Participation Act (December 1993) and the Federal Act on Equality between Men and Women (March 1995) were enacted. The principles of the Declaration are fully respected. The Federation of Commerce, Transport and Food Industries Workers' Union (FCTA) reports that no conflicts have arisen as a result of MNEs' activities in the sectors or industries governed by collective agreements concluded with the FCTA. A growing number of multinationals in retailing (names given) are joining other long-established MNEs operating in the food industry in Switzerland (names given). The Federation of Swiss Salaried Employees' Associations (VSA) notes its special interest in relations between the social partners (para. 3 of the Tripartite Declaration). It underlines the importance of furthering the aims of the Declaration through appropriate laws and policies, and through cooperation among governments and organizations of employers and workers in all countries. The VSA expresses the wish that the ILO would elaborate a binding instrument to that effect. Such an instrument would take into account the large economic and social disparities among host countries, situations in which host countries have comparable levels of development and the fact that the national legislation of certain countries may contain loopholes that facilitate the abuse of economic power.

The Government of the Syrian Arab Republic reports that MNEs' activities do not conflict with national policy objectives nor with workers' interests. Measures to promote the goals of the Declaration have been reinforced. Since July 1991, a new law has been in force, providing for tax reductions. None of the addressees of the Declaration have faced difficulties in implementing its principles. The reply of the Chamber of Industry is the same as that submitted by the Government of the Syrian Arab Republic.

The Government of Thailand reports that some MNEs "strongly impose" anti-union restrictions by discouraging employees from exercising their rights to freedom of association and collective bargaining. The growing use of capital-intensive technologies by MNEs together with rising labour costs are making workers more vulnerable to job displacement. In recognition of this, laws such as the Notification of the Ministry of Labour and Social Welfare Respecting Labour Protection (on severance pay), have been amended. Their principles are in line with those of the Declaration concerning the protection of workers. The Notification has been amended to provide for special severance pay in the event of redundancies caused by the introduction of, or changes in, the machinery or technology used. No difficulties have arisen as regards the application of the principles of the Declaration.

The Government of Trinidad and Tobago replies that conflicts have arisen mainly in the field of occupational safety. New policies and laws of relevance to the Tripartite Declaration were adopted during the period under review. There have been no difficulties as regards the observance of the Tripartite Declaration. The Employers' Consultative Association of Trinidad and Tobago responds in the negative to all three questions.

According to the Government of Tunisia, MNEs are always encouraged to set up business in the country, and to respect national and international labour standards, and in particular the principles of the Tripartite Declaration. Since 1972, a number of laws designed to promote foreign investment have been adopted. To date, the socio-economic impact of MNEs has been satisfactory, and their presence has never given rise to conflicts with national policy objectives and workers' interests. MNEs have contributed to an increase in job opportunities, and to qualitative improvements in the domestic economy. During the period under review, the following laws were enacted: Act No. 93-120 of 27 December 1993 concerning the Code for Promoting Investments. This Code brings together into a single text the provisions of different sectoral codes dealing with investment in manufacturing, agriculture and fishing, services and tourism. It establishes the regime for encouraging both local and foreign investment, as well as joint ventures. It is also part of a general development strategy, of which one of the principal aims is to accelerate the creation of employment. A Ministry for International Cooperation and Foreign Investment, as well as an Agency for the Promotion of Foreign Investment, have been set up. Act No. 92-81 of 3 August 1992 concerning the creation of free economic zones has been amended by Act No. 94-14 of 31 January 1994. During the survey period, plans were made for the amending of Act No. 94-42 of 7 March 1994 establishing a regime for companies involved in international trade. In January 1995 Tunisia ratified the agreements concluded under the Uruguay Round, and in July it signed an Association Agreement with the EU. The Tunisian Confederation of Industry, Trade and Handicrafts, which groups both national and multinational enterprises, encourages the establishment of MNEs throughout the country in accordance with the spirit of international and local labour standards, and the principles of the Tripartite Declaration. Act 72/38 offered attractive concessions for promoting foreign investment and the establishment of MNEs. It was amended in 1987 to introduce flexibility. MNEs can now recruit four foreign employees per enterprise without administrative formalities, provided they are professional or managerial staff. Moreover, in 1990, a law was passed allowing both local and foreign employees with valid employment contracts, to transfer up to 50 per cent of their salaries outside the country. MNEs operating in Tunisia have had satisfactory social and economic effects and their activities have never given rise to conflicts with national policy objectives or workers' interests. The principles embodied in the Conventions mentioned are applied.

The Government of Turkey recognizes the importance of foreign capital and MNEs for attaining one of the country's national policy objectives -- i.e. achieving international competitiveness. Several initiatives have been taken to establish a legal framework in which competitiveness, consumer protection, and the protection of intellectual property rights would be furthered. Law No. 4077 on the Protection of Competition (23 February 1995), Law No. 4054 on Consumer Protection (7 December 1994) and Government Decree No. KHK/551 on the Protection of Patent Rights (24 June 1995), were issued. During the period under review, new labour market policies were considered for implementation in 1996. An intergovernmental agreement for the creation of a customs union between Turkey and the EU was reached. The Turkish Confederation of Employer Associations states that technological developments have had a profound impact on the influence and circulation of investment capital, as countries seek to achieve higher levels of competitiveness in the global economy. It shares the Government's view that MNEs can make a positive contribution to this effort. The Confederation of Turkish Trade Unions notes that the activities of some MNEs have given rise to conflict with workers' interests. Some have been reluctant to acknowledge basic trade union rights and have dismissed workers who may belong to trade unions. Certain MNEs have told workers that they would relocate, if they were to become unionized. No new laws have been promulgated or policy changes made to further the aims of the Declaration. Trade unions have been experiencing increasing difficulties to organize workers in MNEs.

The Government of the United Kingdom supports the principles of the Tripartite Declaration. It endorses its voluntary nature which it sees as offering flexibility and accommodating the needs and circumstances of both enterprises and workers. It says that "it is not immediately clear why multinationalism may lead to abuses or indeed if it will lead to a concentration of economic power at all", and adds that FDI may be an important source of competition for many economies. Since the last survey, several new laws and regulations were passed, including the following: the Trade Union Reform and Employment Rights Act, 1993; the Sunday Trading Act, 1994; the Deregulation and Contracting Out Act, 1994; the Maternity (Compulsory Leave) Regulations, 1994; and the Employment Protection (Part-time Employees) Regulations, 1995. The Government has had no difficulties in applying the principles of the Declaration. The Confederation of British Industry (CBI) notes that its report concerns only MNEs operating in the United Kingdom. These enterprises support the principles of the Tripartite Declaration, and their conduct is like that of large national companies. There are no reports of MNEs in the United Kingdom having difficulties in applying the Declaration. The CBI points out that during the period covered by the survey, a Council Directive on the establishment of European Works Councils was adopted, and that it applies specifically to MNEs.

The Government of the United States regards the Tripartite Declaration as being important for the emergence of mutually beneficial relationships among business, labour and the Government. By clarifying mutual expectations as regards social policy, it can help to foster an open and stable environment for investment, through which MNEs can make important positive contributions to economic and social development at the national and international levels. In view of the changing nature of foreign investment, the US believes that the definition of a multinational enterprise (paragraph 6) should remain broad and flexible since it encompasses the constantly changing form of activities by MNEs, which can involve both equity and non-equity relationships. In addition, it is essential that the Declaration is addressed to private, state and mixed enterprises. In view of the variety of practices in the field of labour relations, a voluntary Declaration based on general principles is the most appropriate means for dealing with MNE-related issues. Only such an instrument can gain the universal acceptance necessary for it to fulfil its potential role as an important complement to national labour law, contracts, international law and treaties. The obligations and requirements of US labour and employment laws apply to domestic and foreign enterprises. Following extensive consultations with representatives of business and labour, a voluntary statement of business principles governing the conduct of US multinationals operating abroad was adopted in 1995. The "Model Business Principles" (MBPs) urge MNEs to provide a safe workplace, recognize the right to organize and not to use either forced labour or child labour in their operations. They are asked to report on a voluntary basis on their overseas activities. The MBPs, which are based on similar sets of principles already applied by US enterprises in their global operations, are to be used as guidelines for the drafting of company-specific codes of conduct. The provisions of the MBPs are essentially the same as those contained in the OECD Guidelines for Multinational Enterprises and the ILO's Tripartite Declaration.

The Government of Uruguay replies in the negative to all the questions.

The Government of Venezuela replies in the negative to all three questions. The Venezuelan Federation of Chambers of Commerce and Manufacturers' Associations states that the transnational scope of MNEs' activities does not give rise to an abuse of concentration of economic power, nor to conflicts of interest with the host country. Workers in MNEs have greater prospects of, and possibilities for, being trained to use new technologies, and the competence they acquire is passed on to others in the society. The national labour laws are stringent, well enforced, and their application in large enterprises is more closely monitored than in smaller, locally owned and public enterprises. MNEs respect the laws in force and in most cases they conclude collective agreements offering better benefits than comparable local companies. They invest heavily in HRD and social programmes which have positive social and economic effects.

The Government of Zambia states that it has always been mindful of the significant contribution that MNEs could make in alleviating unemployment and improving social conditions, and that, for this reason, the partnership of MNEs in national development has been consistently sought and encouraged. In order to promote the political reforms and economic liberalization now under way in the country, a new Investment Act was introduced in 1993. It seeks to create a favourable environment for foreign investment by providing for, inter alia, the setting up of an Investment Centre. The Centre is to promote and coordinate investment policies, process applications from potential investors, and grant operating licences to those whose applications have been approved. Despite the influx of FDI, MNEs' activities have not given rise to any incidents of conflict with national policy objectives nor with workers' interests. Since the last Survey, no new laws have been promulgated nor policy changes made, to further the aims of the Declaration.

The Government of Zimbabwe replies that the activities of MNEs have not given rise to conflicts with national policy objectives in the field of labour, nor with workers' interests. During the period under review, the Labour Relations Act, No. 16 of 1985 was amended by the Labour Relations Amendment Act No. 12 of 1992. The aim is to introduce more flexible labour laws for the implementation of the Structural Adjustment Programme. This amendment established employment codes of conduct which are also applicable to MNEs. The addressees have had no difficulties in respecting the principles of the Tripartite Declaration. The Employers' Confederation of Zimbabwe states that the activities of MNEs have not given rise to conflicts with national policy objectives and the interest of workers. It noted that there were some amendments to the labour legislation to enhance the principles of collective bargaining and freedom of association, and confirms that no difficulties have arisen in attempts to respect the principles of the Declaration.

General policies

Paragraphs 8-12

(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?

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 which representatives 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 leaders 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 suspension of 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 other legislation 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.

Employment

Paragraphs 13-28

Employment promotion (Paragraphs 13-20)

(1) Please describe action taken by MNEs to increase employment opportunities and standards and to cooperate with government and workers' organizations in combating unemployment.

(2) In order to keep their manpower plans in harmony with national social development policies, do MNEs undertake appropriate consultations before starting operations?

(3) What steps have been taken by multinational enterprises to give priority to the employment, occupational development, promotion and advancement of nationals employed by them?

(4) Have multinational enterprises contributed to the local development and use of appropriate technology and to technology capable of generating both direct and indirect employment? If so, please cite any examples.

(5) What has been the policy and practice of MNEs with regard to the use of local raw material, local manufacture of parts or local processing of raw materials?

According to the Government, MNEs in Antigua and Barbuda have not taken any specific action to increase employment opportunities and standards and to cooperate with Government in combating unemployment. There is need for MNEs to hold consultations before starting their operations. They have not taken steps to make employment a priority. While they contribute to the local use of appropriate technology, this is not on a large enough scale to generate significant employment. MNEs have no policy to promote the use of local raw materials.

The Government of Argentina states that the information contained in its reply to the fifth survey is still applicable. It adds that the Employment Act No. 24.013 (copy provided) applies to both national and multinational enterprises. It sets out new modalities for recruitment as well as emergency procedures for preventing mass lay-offs. The principal objective is to create productive employment and to have vocational training constitute a fundamental component of employment policies.

The Government reports that MNEs in South Australia have participated extensively in programmes to combat unemployment and that they make full use of training programmes developed in conjunction with government agencies and workers' organizations. Before starting operations, all enterprises in the Australian Capital Territory consult the relevant government agencies on investment-related matters. In South Australia, MNEs generally hold consultations with the Department of Industry, Manufacturing, Small Business and Recreational Development, with the aim of acquiring a better understanding of the business environment and laws of this State. Examples of three MNEs (named) that held such discussions for the purpose of making investment decisions, are given. As regards the employment, occupational development and promotion of nationals, the policies and practices of MNEs must conform to the local and national laws relating to employment and non-discrimination in employment (example of South Australia cited). The transfer of technology by MNEs in Queensland has created direct and indirect employment. Since the proximity of Queensland to high-grade agricultural and mining resources is a key "pull factor" for investors, most MNEs obtain raw materials from local sources, thereby creating backward and forward linkages with domestic enterprises and generating jobs. Over the past five years, 2,500 direct jobs were created by multinationals receiving support under the Queensland Major Project Incentives Scheme. The Government of South Australia is of the view that MNEs have made a significant and positive contribution to local development, technology transfer and employment. According to the 1990 Australian Workplace Industrial Relations Survey, 21 per cent of the country's private sector workforce were employed by enterprises with head offices located abroad.

The Government of the Bahamas notes that several MNEs have significantly expanded their activities and this has led to a rise in the demand for labour, particularly in construction and related industries. Several thousand new permanent jobs have been created. Working conditions have also been improved. MNEs do hold consultations prior to starting their operations in order to keep their manpower plans in harmony with national social development policies. They have instituted training and retraining programmes from which actual and potential employees benefit. MNEs have contributed to the local development and use of appropriate technology (three enterprises cited as examples). Those in the hotel and tourism industry have contractual arrangements with local enterprises for the supply of furniture and agricultural products.

The Government of Bangladesh states that foreign investors are always welcome and MNEs already in the country are encouraged to expand their activities. MNEs cooperate with the Government and workers' organizations in combating unemployment. Some have undertaken expansion and development programmes and introduced new technology, in order to increase production and productivity, generate direct and indirect employment and promote workers' welfare. They hold appropriate consultations with various government agencies before starting operations, to keep their manpower plans in harmony with the Government's social development plans. MNEs use local raw materials as well as locally manufactured parts or locally processed raw material as far as possible. As a matter of national policy, the Government also encourages them in this respect.

According to the Government, MNEs are encouraged to establish operations in Barbados. These enterprises expand their activities in different sectors of the economy, thereby increasing employment opportunities. Some have also been involved in the "work experience programmes" which are particularly beneficial to youths. The appropriate government agencies hold discussions with MNEs in order to ensure that their manpower plans are in harmony with national social development policies. MNEs are granted permission to operate only after they have met all basic requirements as articulated by law, or custom and practice. While nationals comprise most of the workforce in MNEs, the management structure remains primarily dominated by expatriates. None the less, the granting of work permits ensures that employment opportunities for nationals are protected. MNEs have contributed both directly and indirectly to local development, by creating employment in different economic sectors and transferring skills -- e.g. in the field of computer technology. MNEs are encouraged to use local raw material and manufacture parts locally. However, they will do this only if universal standards are met. The availability of raw materials in commercially viable quantities is limited in the country. The Barbados Workers' Union reports that before starting their operations, MNEs consult with the Barbados Investment Development Corporation on matters concerning wages, hours of work, annual leave and social security. No steps have been taken to give priority to the employment, promotion and advancement of nationals. MNEs do not contribute to the local development and use of appropriate technology and the nature of their activities (e.g. information processing, electronics and telecommunications) is such that it does not offer much scope for the use of local raw material.

The Government of Belgium notes that the take-over of an enterprise by a multinational nearly always results in the loss of jobs, as such an operation implies the restructuring of the acquired enterprise. As a result, an argument often heard in labour disputes, relates to the feeling of insecurity -- i.e. the potential threat to employment -- that stems from the international character of MNEs. MNEs, like national companies, benefit from the advantages provided by Government or administered by the social partners, in order to reduce unemployment. The existing infrastructure for providing information and assistance services is well developed. The National Labour Council states that MNEs are subject to the national regulations and adequately integrated into the Belgian industrial relations system. None the less, certain problems have arisen in a limited number of cases, where MNEs did not comply with Belgian practices with respect to social dialogue and consultation. For instance, in certain cases of closures or restructuring, workers were not adequately informed before the decision was taken. In the interest of transparency, an Act was passed on 13 April 1995, with a provision (section 82) which obliges any foreign enterprise setting up a branch or subsidiary in Belgium to make publicly available, relevant information concerning the enterprise before starting operations.

According to the Government of Brazil, MNEs have made a great contribution by bringing in private investment capital, stimulating industrial development and exports, utilizing local raw material, components and services, and creating jobs. The Government, employers and workers have their own fora in which to discuss matters pertaining to production and work. The effects of MNEs on employment vary considerably depending on personnel policies, the choice of technologies, the use of raw materials and other local resources and the capacity of local producers to fit into the production chain. Given that MNEs tend to raise the capital intensity of their activities, it would seem reasonable to expect a decline in direct employment in the industries concerned. MNEs attach great importance to occupational development and many of them have in-house systems for the training and development of staff. Wages and benefits are among the best in the local context even though wages are noticeably lower than those paid in the home country. Many MNEs also give special advantages (unspecified). The introduction of advanced technologies by MNEs almost always results in a rise of new activities and the revitalization of those that have lost their dynamism. Developments in the automobile industry provide good examples of the positive impact of MNEs on employment and the economy. However, the processes of economic globalization and market integration are bringing about changes in the practices of MNEs as regards local sourcing and production. They are either locating their operations in countries with much lower production costs or importing raw materials and components from such countries. The Single Central Organization of Workers points out that over the past five years employment in industry in Brazil fell by 30 per cent. The introduction of new technologies results in job losses and MNEs do not hold consultations with workers' organizations on matters relating to manpower plans. The prices paid for local raw materials are very low and in those cases where they are extracted, there is no regard for the protection of the environment. As regards parts, particularly for use in the motor vehicle industry, most are imported. This policy, which has led to the closure of several domestic enterprises and inevitably the loss of jobs, is also being adopted by MNEs in the electrical and electronics industries.

The Government of Cambodia indicates that in a context of national reconstruction following more than 20 years of war, MNEs contribute to resolving unemployment by recruiting young people to a considerable extent. MNEs cooperate with the Government and undertake consultations prior to starting their operations to keep them in line with national social policies. MNEs organize training courses, send their trainees to developed countries for further training, and contribute to the local development of technologies in the field of woodwork -- more specifically cabinet-making. They also use local bamboos to make plywood for export.

The Government reports that there have been no country-wide studies on the employment effects of MNEs in Canada. In 1992, MNEs were said to account for about 35.9 per cent of the workforce, as opposed to 34 per cent in 1986. In the Province of British Columbia, the involvement of MNEs in infrastructural development projects is expected to contribute to job creation, and the upgrading of skills and acquisition of expertise in new fields. MNEs are therefore urged to contribute to the development and use of local technologies and to invest in the occupational development of local workers. There is an emphasis on providing jobs and apprenticeships for youths, women, persons with disabilities and indigenous peoples, through the conclusion of government-private sector contracts for various infrastructural development and transport projects. The activities of Canadian MNEs operating abroad are consistent with the Tripartite Declaration. The Montreal-based, Telecommunications Executive Management Institute of Canada, which is jointly funded by government and the private sector, has trained more than 600 senior and middle managers working in the telecommunication field in several developing countries. The Government of the Province of Quebec notes that almost three-quarters of all private enterprises with more than 500 workers are MNEs. Of these 46 per cent have their headquarters in Canada and 28 per cent are subsidiaries of foreign-owned companies. During 1994, there were job losses of 2 per cent in subsidiaries of foreign MNEs in Quebec and 1 per cent in Canadian multinationals. These were offset by employment created by several new MNEs, with the result that in 1995, employment in the foreign-owned subsidiaries increased by 5.5 per cent and in those with headquarters in Canada, by 0.5 per cent. In contrast, employment in public enterprises fell by 3.5 per cent. Interestingly, the largest growth of jobs was in large enterprises with non-unionized workers. Government's role as regards job creation by MNEs is difficult to assess. Quebec's industrial development strategy puts the accent on promoting SMEs which are known to account for as much as 70 per cent of job growth, stimulate export-oriented industry and enhance the involvement of workers in the enterprise. The strategy also emphasizes the promotion of leading, technologically advanced industries that could compete on world markets and the favouring of industrial activities that respond to regional development priorities. These initiatives, together with the decentralization of active labour market policy formulation, have opened up possibilities for the social partners, including representatives of MNEs, to identify and discuss employment-related priorities for reducing joblessness in Quebec. In most cases, MNEs hold consultations with Government, usually at the initiative of the latter. These talks help to create a favourable climate for labour relations. Just over 10 per cent of the 150 long-term collective agreements signed in Quebec since 1994 are in MNEs. Their average duration is 67.5 months. Ninety per cent of financing for industrial projects comes from enterprises in Quebec which play a critical role in job creation, technology transfer, skills development and gaining access to foreign markets. In a bid to boost productivity, large MNEs have reduced staff, largely through voluntary departures and early retirement. A survey by the Ministry of Employment, which included MNEs, revealed that companies which had taken that course of action experienced improvements in labour relations and in the internal flow of strategic information. The new policies of MNEs contribute to job creation, higher productivity and better quality products. In most cases, there has been an improvement in labour-management relations based on mutual confidence. Opportunities for communication between workers in different occupational categories have improved. None the less, workers complain that they have little influence in matters pertaining to business strategy and investment decisions, which are normally decided at the headquarters of MNEs. As regards working conditions, these do not systematically get better by virtue of the introduction of new practices at the workplace. However, improvements are under way as regards recruitment procedures, remuneration systems and mobility with the enterprise. Sixty per cent of MNEs allow staff to enhance their skills through further training. In the case of other enterprises, the figure is 42.5 per cent. Those enterprises that have changed their work organization base their training on the "total quality principle". Forty-one per cent of MNEs give leave for training, as opposed to an average of 32.1 per cent of other firms. Nineteen per cent of MNEs finance training whereas 17.2 per cent of other enterprises do. MNEs have sought to mitigate the negative employment effects of technological change. When changes are introduced, 40 per cent continue to pay the same wage (at least in the short term). In the case of other firms, it is 21.1 per cent. Seventeen per cent of MNEs as opposed to 18.7 per cent of other enterprises cover the costs of training and retraining workers to carry out new duties. However, only 9 per cent of MNEs as opposed to 16 per cent of other companies guarantee continued employment under such circumstances. MNEs are at the head of subcontracting networks and the major users of such arrangements. Whereas one-quarter of MNEs resort to subcontracting only 6.8 per cent of other enterprises do. Subcontracting has contributed to a fall in unionization rates in Quebec. However, the Labour Code guarantees the recognition of unions in enterprises regardless of whether there has been a reduction of their activities. Thirteen per cent of MNEs as opposed to 2 per cent of other enterprises guarantee that there will be no dismissals as a result of subcontracting. Nine per cent of MNEs in contrast to 7 per cent of other companies, give double assurance that there will be no dismissals and that union representation will be maintained, in keeping with section 45 of the Labour Code and the provisions of certain collective agreements. The rationalization of MNEs' operations has had an effect on their policies concerning local sourcing. Some have resorted to international subcontracting, others to strategic alliances in research and development activities and others have reconsidered their subcontracting arrangements with local enterprises. Certain multinationals which have just-in-time production systems have set up subsidiaries close to their customer enterprises.

The Government of Chad reports that no action has been taken by MNEs to harmonize their manpower plans with national social development policies and no consultations are held before starting operations. In fact, MNEs, in violation of the national legislation, use foreign labour even when there are qualified locals. They do not contribute to the development and local use of appropriate technology and no effort has been made to use local raw material and components.

According to the Government of Chile, MNEs play an important role in promoting economic growth and employment. In 1995, inward FDI flows amounted to US$3,500 million. The climate for foreign investment is being enhanced by creating political, social and economic stability, as well as providing fiscal and economic incentives. Prior to the setting up of operations, consultations between investors and public sector authorities take place in the Foreign Investments Committee, to which MNEs must submit their project proposals for approval. When it comes to the use of different factors of production, the Government leaves these decisions to MNEs, which are best placed to make the choice in keeping with their own interests and capacities. There are no specific data on the jobs created by multinationals.

According to the Government, the measures adopted by MNEs in Colombia, to increase job opportunities, enhance the quality of employment and cooperate with Government and workers in the fight against joblessness, are in line with the Government's programme to promote social progress. MNEs have a legal obligation to improve working conditions continually. Before starting their operations, MNEs meet with government experts to assess their requirements for local personnel and their subcontracting arrangements with local companies. The law stipulates the proportion of nationals and foreigners that must be recruited. MNEs must respect the laws concerning the rights of individual workers as well as those of the workforce as a whole, and to this end, the State informs them of this obligation on a regular basis. MNEs must train local workers to use new technologies. Training plans must be presented and the activities must contribute to the development of infrastructures which would help to promote the economic and social progress of the community or region where they are located. This is particularly emphasized with respect to telecommunications, and energy-based and mining industries. MNEs create job opportunities, particularly for unskilled persons. Enterprises providing producer services to the petroleum industry have also created a number of direct and indirect jobs. Moreover, SMEs have developed, and they supply intermediate products and raw material to MNEs in various industries. The National Association of Manufacturers (ANDI) reports that MNEs in Colombia have helped to alleviate unemployment by creating new industries. It agrees with the Government's comment concerning prior consultations and adds that MNEs get in touch with employers' organizations such as ANDI to inform themselves about the legal framework governing FDI and other aspects of their activities in the country. As regards the hiring and promotion of nationals, the results have been positive. New technologies are introduced gradually and they have a demonstration effect on local enterprises. With the internationalization of the economy there is increasing emphasis on productivity, competitiveness and quality. To the extent that the quality and price of locally made products are competitive, MNEs will resort increasingly to local sources. The General Confederation of Democratic Workers (CGTD) states that there are 646 MNEs in Colombia, of which 119 are currently going into liquidation. Of the 646 MNEs, only 245 have permanent workers among their combined workforce of 23,685. The CGTD cites the examples of three MNEs to illustrate what it considers to be a "worrisome" development -- i.e. the decline in the number of permanent local workers. Of the permanent workers in the three enterprises mentioned (names given), 90 per cent are non-nationals. The CGTD is of the view that MNEs do not set up operations in a country in order to cooperate with the government in the fight against unemployment. Their decision to invest is based on the outcome of feasibility studies and considerations of the profitability of the venture. MNEs act in response to their own concerns and not with a view to fulfilling the obligations prescribed by ILO Conventions. Not all MNEs contribute to the development and use of local technologies. In the absence of adequate information, the CGTD surmises that MNEs tend to import most raw materials and parts from the parent company.

According to the Government, MNEs in Costa Rica collaborate in national initiatives to increase employment and create better quality jobs, in the pursuit of the expansion of their activities. Consultations on manpower plans are not institutionalized; they may be undertaken as part of enterprise-specific studies carried out by individual MNEs. As a result of the training of local workers, there has been a gradual replacement of expatriate staff in middle-level and senior professional positions. There are no known examples of MNEs having adapted their technologies to the local context. Local raw materials are used when required, and if economic considerations justify such a choice.

According to the Government of the Czech Republic there is no difference in the conduct of MNEs and local employers as regards employment. Acquisitions have been accompanied by staff cuts and organizational changes in a bid to boost productivity. New investment and growth in output have led to a gradual increase in employment and greenfield investments have generated new jobs. The role of MNEs in the labour market is largely positive. They provide some degree of economic stability and frequently locate their undertakings in areas with relatively low levels of employment. Since unemployment is generally low, the adoption of specific job-creation measures is not considered necessary at this time. Formal consultations with representatives of MNEs before they start operations have taken place only in exceptional cases. With respect to the promotion and advancement of nationals employed by MNEs, top management is usually from the home country, while middle management positions are generally open to Czech nationals, who are trained and given opportunities for promotion. Under present conditions, the introduction of new technologies has not contributed to job creation. The Czech and Moravian Chamber of Trade Unions confirms that there was a significant decline in employment following the acquisition of Czech companies by foreigners, largely because of the need to rationalize operations and restructure companies to make them efficient. Employment in certain MNEs (names given) which made greenfield investment remained relatively stable. Several MNEs have HRD programmes. Given the low level of unemployment, the Government does not have an active employment policy, neither does it consult with, or seek to stimulate the interest of MNEs to invest in less developed regions or in areas where jobs are to some degree lacking. However, consultations with regional labour offices have made it possible for persons made redundant to be placed in other jobs. Some linkages have been generated by the operations of MNEs, through local subcontracting; however, these are decreasing as local suppliers are replaced by foreign ones. Another noticeable phenomenon is the rising number of workers in small-scale service enterprises and other businesses that have sprung up in areas near to where MNEs are located. On the whole, the technologies used by MNEs are comparable to average European standards, and in a few cases, particularly in greenfield investment projects, they are more advanced. There are no policies regarding the use of local raw materials, or laws governing the protection of natural resources. This has led to a degree of environmental degradation resulting from the activities of some MNEs involved in operations requiring raw materials from local sources.

According to the Dominica Employers' Federation (DEF) there has been no noticeable change as regards action by MNEs to increase employment opportunities and standards, since the last survey. The DEF holds consultations with MNEs on a voluntary and case-by-case basis. MNEs may consult either with the DEF or the Association of Industry and Commerce. The experience with respect to the employment and promotion of nationals has been positive. Although a number of foreign enterprises have expatriate Chief Executive Officers, many also hire nationals as senior executives and chief executives. While occupational development initiatives are frequently aimed at top management, clerical staff and production workers, this is not the case with respect to middle and junior managers. More efforts are needed to develop middle management staff. Most MNEs use production technologies from the home country. As regards the use of local raw materials and parts, the reply to the fifth survey still applies.

The Government of Ecuador reports that the country has ratified Convention No. 122 and it implements a policy designed to promote full, productive and freely chosen employment. Experience has shown that enterprises collaborate satisfactorily for the attainment of these goals. There are effective mechanisms to facilitate tripartite consultations with a view to harmonizing the interests of the social partners with government policy in the fields of employment and social development. Tripartite sectoral committees meet on a yearly basis to fix and revise minimum wages and salaries by sector, taking into account the cost of living. There is a National Salaries Board (Consejo Nacional de Salarios) on which employers' organizations and central trade unions are among those represented. This consultative body has an advisory function with regard to the elaboration and application of wage policies. Enterprises can belong to chambers of manufacturers in their respective fields of activity, and foreign enterprises generally take an active part in these bodies. Enterprises which have more than five workers and also employ foreigners must ensure that at least 80 per cent of the workforce is Ecuadorian. National economic policy is aimed at liberalizing trade and developing highly competitive export industries.

According to information given by the Federation of Egyptian Industries, employment in certain enterprises in the pharmaceutical industry has increased considerably. Efforts to upgrade the competence of local, technical and administrative employees have been made in certain cases (examples named) through advanced training. In the metal trades sector (enterprises named), employment has been created as a result of internal reorganization, reinvestment in increased production activities and training. In a number of instances, enterprises undertake consultations to harmonize their manpower plans with national social development policies. Certain companies in the pharmaceutical industry and the metal trades give priority to the recruitment of nationals, who in some cases comprise the entire workforce, with the executive director being the only expatriate. Concrete measures are taken to promote nationals and there are enterprises in the metal trades (named) which supply the Government with information on their manpower needs, and carry out training programmes at different levels of the enterprise. Certain companies support the development and use of local technology by upgrading local products to meet international standards and introducing new scientific know-how in the country. There are pharmaceutical companies that use local inputs as long as they are available. Certain enterprises in the metal trades, on the basis of scientific research, have also been successfully using local raw material. There are enterprises which are attempting to reconcile the use of local raw material with requirements concerning product quality and environmental protection.

The Government of Estonia states that the role of MNEs in the national economy has been small and there have been no special initiatives for creating employment. According to the Estonian Association of Trade Unions, there is no doubt that the establishment of MNEs (especially in less developed areas) has contributed to job creation. To a large extent MNEs operate outside Estonia's employment policy. Multinationals use local raw materials, particularly wood and agricultural products.

In order to promote economic and social development and combat growing unemployment, the Government of Ethiopia is endeavouring to create an atmosphere conducive to foreign and national investment. Policies for creating a market economy and encouraging inward FDI have been formulated and are being implemented. Labour Proclamation No. 42/1993 has also been promulgated. Various employment- and income-generating projects are being designed and undertaken in the different administrative regions. A large sum of money has been allocated for rural infrastructural development and one of the administrative regions (identified) has set up a 23 million Birr (over US$3.6 million) revolving fund for job creation schemes. A national employment policy is under consideration and a special programme for the Promotion of Employment of Women and Youth is being implemented. An Employment Service Capacity Building project, aimed at strengthening the Employment Service Office and reducing unemployment, is in operation. The number of MNEs in the country is insignificant. There has been no study of the employment, occupational development, promotion and advancement of nationals in MNEs. However, it is believed that social development policies are taken into consideration by MNEs before starting operations and the general situation indicates that these enterprises contribute to local development, including through the creation of jobs for skilled and unskilled labour (example of one car assembly plant (identified) cited). There is no policy as regards the local sourcing, manufacture of parts and processing of raw material.

The Government of Finland states that under the Act on Cooperation within Undertakings (i.e. those employing at least 30 persons) plans regarding staff and training must be discussed every year with the staff, prior to implementation. The Act states that with the objective of developing the operations of undertakings, improving working conditions and furthering cooperation between the employer and the staff, as well as among members of the staff, increased opportunities shall be provided for all employees to exercise influence in matters relating to their work and workplaces. The Act specifies that undertakings in Finland shall inform the relevant authorities of any changes affecting employment, and of new vacancies. A new feature in Finland is the penetration of foreign enterprises into social infrastructure services (e.g. water supply, waste collection and disposal, and the traffic sector) which were previously administered mainly by the public sector. In localities that are strongly dependent on one major (multinational) enterprise, the decisions of that particular enterprise may suddenly and strongly affect the activities and viability of the entire society. It is important that the practices of MNEs be in harmony with national requirements and that they take into account the needs of local communities. The impact of MNEs on employment in Finland was not studied during the period under review. An expert group set up by the EU Committee of the Regions has carried out a survey, as a first step towards assessing the social effects of the relocation of MNEs within the EU. The Confederation of Finnish Industry and Employers and the Employers' Confederation of Service Industries indicate that there is nothing new to report. The Central Organisation of Finnish Trade Unions (SAK), the Finnish Confederation of Salaried Employees (STTK) and the Confederation of Unions for Academic Professionals in Finland (AKAVA) state that employment opportunities and standards as well as job security do not seem to differ between domestic and foreign-owned firms. There are cases of MNEs according more generous benefits in cases of lay-offs. There is also some evidence of increased use of fixed-term contracts and a greater turnover of the labour force after acquisition by a foreign owner. At the same time, take-overs have also led to more business activity in Finland, to the benefit of subcontractors.

According to the National Council of French Employers the willingness of MNEs to contribute to employment promotion may be constrained by the shortage of suitably skilled labour, especially in traditionally agricultural regions. MNEs can only give priority to the employment of locals if they are adequately qualified. Multinationals apply the laws and relevant agreements in force, which are particularly stringent. Before setting up business, MNEs consult with authorities at the local, regional and national levels as well as with local enterprises and employers' organizations. In this way they are informed of the social development policies and particular characteristics of the host country. Once they have begun operating, they interact with workers' representatives through the works councils. Through their membership in employers' organizations MNEs can have better contacts with workers' organizations. Like national companies, MNEs are legally bound by collective agreements signed on their behalf, by organizations representing their interests. Most MNEs set up business when the economy was growing and there was a shortage of labour. The subsequent economic downturn has led to a reluctance by enterprises in certain sectors to hire more staff. In response the Government has gradually introduced different forms of assistance for maintaining and/or creating employment. These measures aim to reduce the labour costs of employees with little qualifications and to facilitate the entry of young persons into working life.

The Government of Gabon states that those MNEs which are represented on the Board of the National Employment Office (Conseil d'Administration de l'Office national de l'Emploi) have developed training structures. Before starting their operations, MNEs undertake appropriate consultations to harmonize their manpower plans with Gabon's social development policies. When requested by the Government, they prepare indigenization plans (gabonisation). Furthermore, they offer career development programmes as well as internal and external training to their staff for their professional advancement. MNEs do not usually contribute to the local development or use of employment-creating technology, nor do they use local raw material.

The Government of Grenada states that MNEs cooperate with local enterprises in promoting entrepreneurial skills and that they pool financial resources for assisting young entrepreneurs. MNEs do not undertake consultations before starting operations. They provide short-term training for staff, both locally and overseas, and also organize overseas attachment/temporary assignment programmes. MNEs contribute to the local development of appropriate technology and make maximum use of local raw material when the price is lower than the imported material.

The Government indicates that the divestment of SOEs as well as new investment have increased the involvement of MNEs in Hungary. During privatization negotiations, efforts were made to protect existing levels of employment within the enterprises concerned. However, in the initial stages of operation, these newly privatized enterprises were forced to reduce staff. At the same time, new investment by MNEs represent an important element in expanding employment. Such investment has resulted in the establishment of thriving new industries and a significant reduction in the level of unemployment, particularly in regions which had experienced economic decline. This has been attributed to the high level of cooperation between MNEs, government authorities and local council officials. Prior to commencing operations, MNEs generally consult with the competent authorities in efforts to coordinate their employment plans with national employment policy objectives. However, this approach has not yet produced satisfactory results. While a considerable number of MNEs have invested in depressed industrial areas in the western region of the country, very few have been attracted to the eastern and north-eastern regions, where unemployment levels are exceptionally high. Several initiatives have been undertaken to provide greater incentives to encourage MNEs to locate in these regions. These include major infrastructural development and the establishment of industrial parks. MNEs have greatly contributed to professional and language training for local employees. Others have provided job-specific, semi-skilled type training which is not always transferable to jobs elsewhere. Usually, foreign citizens are employed in critical positions but they are gradually replaced by local workers. MNEs have contributed to the technological and industrial development of the country and have played a decisive role in the development, at the local level, of communities such as Székesfehérvár, Esztergom and surrounding areas. Initially the use of locally processed and produced materials was minimal. In some cases, this resulted in a decline in production by local suppliers and the consequent loss of jobs. However, a number of MNEs have since established supply arrangements with local SMEs.

The Government of India indicates that information is not available on whether or not MNEs hold consultations in order to harmonize their manpower plans with national policies, nor on specific steps taken by MNEs to give priority to employment, occupational development, and the promotion and advancement of nationals. However, MNEs devote more attention to management development and training than other enterprises. They are expected to develop in a given time-frame, technologies which are suited to the needs of the country, but the record in this regard is not very encouraging. Only a few have adopted indigenous technologies. As in the case of national enterprises, MNEs are encouraged to use local raw material and manufacture parts locally.

MNEs in Ireland have created direct employment for 100,000 persons and the same number of indirect jobs, reports the Government. Before starting their operations, they hold consultations in order to keep their manpower plans in harmony with national social development policies. Priority is given to the employment, promotion and advancement of nationals, and these enterprises have contributed to the local development and use of appropriate technologies that have had positive effects on employment. As much as possible, use is made of local raw material and parts are made locally. Action in this regard is facilitated by the National Linkage Programme of the National Development Agency (Forbairt).

The General Confederation of Industry (Italy) states that on the whole there are no differences between multinational and national enterprises regarding employment promotion. Hence, action undertaken to increase job opportunities and cooperation with the Government and workers' organizations does not differ between national enterprises and MNEs. The same observation applies as regards consultations on manpower plans, the promotion of nationals, the local development of technology and the use of local raw material.

The Japan Federation of Employers' Associations (NIKKEIREN) refers to the Guidelines for Overseas Direct Investment (Kaigai Tshi Kd Shishin) which call on Japanese MNEs to employ local personnel and to promote those with the necessary qualifications in order to contribute to the expansion of employment opportunities in the host country. They are urged to "make as much effort as possible" to procure machinery, equipment, parts and raw materials from local sources. They are encouraged to give technical guidance to local enterprises when purchasing these inputs, in order to contribute to the improvement of the technological capabilities of local industry and to the transfer of technology, particularly in developing countries.

The Government of Jordan reports that MNEs contribute to increased employment opportunities and standards by providing jobs and training for nationals. They commence their activities only after consulting with the relevant authorities, in order to, inter alia, keep their manpower plans in line with national social development policies. They are committed to reserving a percentage of jobs for nationals. By virtue of their limited participation in the economy so far, it is difficult to assess their contribution to technological progress and the impact of their choice of technology on employment. Some have entered into joint venture arrangements with local investors, and are using and processing local raw materials. The Amman Chamber of Industry notes that MNEs, within the limits of their capabilities, are expected to contribute to job creation. It is believed that they consult with the competent authorities before commencing operations and they are constantly urged to contribute to national economic development efforts. This could be done through participation in equity arrangements, subcontracting or the manufacture of inputs, components and spare parts in Jordan. There is a growing trend of manufacturing MNEs operating under patents and franchises. A joint venture arrangement between MNEs (countries of origin named) and local investors has resulted in the manufacture of fertilizers from local phosphate deposits, while another MNE (country of origin given) is sharing in the production of phosphoric acid. Phosphate deposits and Dead Sea salt are the country's principal raw materials.

The Government of the Republic of Korea reports that no particular measures have been taken by MNEs to increase employment opportunities. However, since they recruit on the local market they contribute to job creation. MNEs take account of national vocational training policies when developing their manpower plans. No particular steps have been taken to improve employment prospects. MNEs are expected to contribute to the development of local technological capabilities. The Korea Employers' Federation reports that during the period of the survey there was full employment, and it was therefore not essential for MNEs to consider the job-creating effects of their activities. MNEs have not engaged in consultations on their manpower requirements and have had many difficulties in recruiting skilled workers. No steps have been taken by MNEs to give priority to the employment, occupational development and the advancement of local workers. Since July 1995 they have been participating in employment insurance programmes. Through the transfer of technology MNEs have contributed to the development of local technological capabilities. Decisions on the use of local raw material, and the local manufacture of parts or local processing of raw materials, depend on cost considerations.

The Government indicates that Kuwait has a free market economy which operates within limits set by the State to prevent undesirable practices. There is no unemployment in Kuwait, which relies mainly on migrant labour. The conditions of employment of foreign workers are subject to the relevant legislation in force. Institutional arrangements facilitate the placement of national and foreign workers with the suitable qualifications for a particular job. Activities relating to the technological development of the country are dealt with through national enterprises and public utility companies. MNEs do not undertake consultations to harmonize their manpower plans with national social policies before starting their operations. While they contribute to the local development of technology (e.g., electronic diffusion of information), they do not use local raw material or manufacture goods locally.

The Federation of Luxembourg Manufacturers reports that employment in MNEs has increased steadily, largely because of these enterprises' initiatives. MNEs consult very frequently with government authorities and the social partners to harmonize their manpower plans to the greatest possible extent with the country's social development policies. The Confederation of Independent Trade Unions is not aware of specific measures adopted by MNEs to give priority to employment, and has not seen any difference between the practices of MNEs and national enterprises in this respect. Contacts are made with government authorities when MNEs establish operations in the country and there is a consultative tripartite body within the Foreign Trade Ministry of Luxembourg in which trade unions are represented.

According to the Government of Malaysia, MNEs consult with the relevant authorities on their manpower plans and needs, prior to commencing operations. In order to enable them to raise pertinent issues before MNEs start operations, workers' representatives are also appointed to the tripartite bodies dealing with labour-related matters that hold consultations with MNEs. Priority is given to nationals for employment in MNEs. Through the introduction of new technologies, MNEs have helped to transform Malaysia from a mainly agricultural to an industrial economy. New technologies have been introduced (e.g. the Malaysian National Car Project) and a considerable number of indirect jobs have been generated. In general, the quality, costs and availability of materials and parts are key considerations when MNEs procure supplies locally. The Malaysian Trades Union Congress reports that even though MNEs are motivated by profit rather than social objectives, they have contributed to increased employment opportunities. However, this increase in jobs is marked by an imbalance, with large numbers of females performing low-paid jobs and men occupying mainly higher paid positions. Workers' organizations have not been party to any consultations on the manpower plans of MNEs. MNEs appear to prefer employing foreign rather than local workers. The majority of MNEs are involved only in assembly line activities, therefore the expected gains through the transfer of skills and technology have not materialized. In addition, their activities do not seem to have generated a lot of indirect employment. The 1986 Promotion of Investment Act permits the duty-free import of raw materials by MNEs for processing for export.

The General Confederation of Employers of Mauritania notes that MNEs have not taken any action to increase employment opportunities and standards, or to keep their manpower plans in line with national social development policies. Furthermore, MNEs have not adopted any measures to promote employment by nationals or to contribute to the development or use of technologies that generate employment. The same observation is valid concerning the use of local raw material. With regard to the absence of action on the part of MNEs to increase employment opportunities, the Free Confederation of Workers of Mauritania (CLTM) adds that MNEs do not wish to deal with the workers. They therefore resort to subcontracting which enables them to employ daily paid workers (without a clear legal status and labour contract). Whereas MNEs consult the competent authorities on manpower and national development plans, there is never an advantageous outcome to this process. MNEs give little importance to the occupational development, promotion and advancement of nationals. They contribute to a limited extent to the local use of appropriate technology and to technologies generating employment. The CLTM notes with regret that MNEs do not provide national workers with adequate training which would enhance their capacity to master the use of these technologies. MNEs in Mauritania are essentially active in the field of infrastructural development.

The Government of Mauritius states that MNEs have, since the 1980s, absorbed practically all jobseekers. There is full employment and even serious manpower shortages for highly technical jobs as well as floor-level operators in manufacturing industries. MNEs do undertake consultations, and this has enabled them to adopt the most appropriate technology. Some are quite cooperative in training local staff and by doing so they fulfil one of the conditions laid down for the issue of work permits for foreigners. However, when the time comes for the transfer of responsibilities to the local employee, there is some reluctance due to an element of mistrust. In spite of the technical skills acquired by Mauritians, there are limits to the levels of responsibility which they are given, in a number of cases. Expansions in telecommunication and air transport services have led to major developments in those sectors. Some construction enterprises execute entire projects without having recourse to local labour. At times the duration of the contract is so short that there is not ample time for the training of locals. As a result, there is no transfer of technology in such situations. Most raw materials used by MNEs are not available locally and they are therefore imported. The processing of some imported raw materials is, however, carried out. Spare parts are manufactured locally for use in certain industries (e.g. motor machines for the sugar and textile plants).

The Government of Mexico points out that its biggest challenge is to create jobs at a time of recession and amidst efforts to modernize the economy. Open unemployment rose from 2.8 per cent in 1992 to 4.7 per cent in 1995. Only the in-bond (industria maquiladora) industry did not register job losses. Between 1993 and 1994 the number of enterprises with foreign direct investment rose from 7,410 to 7,950 and the workforce in these enterprises increased from 1,333,522 to 1,414,484. Establishments with one to 100 workers accounted for 70 per cent of those enterprises (table 6 of annex to report). Under the National Development Plan 1995-2000, there are proposals to set up tripartite fora to consider new strategies and projects for combating unemployment. MNEs and other enterprises will take part in these fora. Section 7 of the Federal Labour Act states that at least 90 per cent of the workforce and all doctors in the medical services of an enterprise must be Mexican. Article 32 of the national Constitution also requires that priority be given to the recruitment of nationals. In the absence of suitably qualified local persons, foreign, technical and professional workers may be hired on a temporary basis as long as they do not exceed 10 per cent of staff in these categories. Foreign employers and staff must train locals. According to section 61 of the Regulation relating to the Act to Promote Mexican Investment and Regulate Foreign Investment (Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera), MNEs must give the government authorities responsible for foreign investment, trade and industrial development, information on their proposed activities, investment and manpower plans, as well as their likely effects on the host country. The technologies they are going to use must be described and information on the appropriate training that would be given to enable workers to use the technologies, must be provided. This is intended to keep investment plans in harmony with national policies. As regards recruitment, MNEs tend to hire the best qualified workers, some of whom are recruited through the National Employment Service (Servicio Nacional de Empleo). The training, professional development and advancement of nationals depend on the policies of enterprises and the quality of the workers. The Federal Labour Act does however state that workers have a right to be given training in order to be able to improve their living standards and productivity. Proven competence as well as seniority are important criteria when filling temporary and permanent posts. Section 13(V) of the Foreign Investments Act calls for investors to create permanent jobs and contribute to training and career development programmes. In 1994 the Decree to Promote the Creation of Business Enterprises to Supply Inputs for the In-Bond Export-Oriented Industry was issued (Decreto que Promueve la Creación de Empresas Comercializadoras de Insumos para la Industria Maquiladora de Exportación). In that same year the Programme for National Suppliers to the In-Bond Export-oriented Industry was created (Programa de Proveedores Nacionales a la Industria Maquiladora de Exportación). The Mexican Confederation of Chambers of Industry reiterates that regardless of their relationship with the parent company, MNEs must comply with the national laws in force. MNEs, before deciding on where to set up operations in areas where there are maquiladoras, seek the advice of local employers' organizations. MNEs have also had a big impact on employment and economic conditions in regions other than those with maquiladoras. As regards employment, MNEs' decisions are based on considerations of the availability of qualified workers. Enterprises in the in-bond and other industries use very simple, as well as advanced production technologies. There is an increasing use of local inputs and these have attained considerable proportions in certain industries. Proposals concerning work organization and the use of different technologies, put forward by nationals employed in MNEs, are being increasingly taken into account by these enterprises. The Confederation of Mexican Workers agrees with the Government's statement.

Multinational enterprises constitute a considerable number of the medium and large enterprises in Namibia, reports the Government. These enterprises generate employment opportunities through the purchase of local goods and services when they are available at competitive prices. They consult with the relevant government ministries before investing and give priority to the employment of nationals, primarily because it is more costly to recruit expatriates. Multinationals are actively engaged in training programmes for the promotion and advancement of local staff. They have contributed to the local development of appropriate technology. Those involved in manufacturing tend to use and process local raw materials. The larger multinationals, e.g. in the mining sector, carry out some further processing of raw materials (e.g. the production of uranium yellow cake, copper bars and lead ingots).

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

According to the Government, there is no information on actions taken by MNEs in New Zealand to increase employment opportunities and standards. It expresses the hope that, like domestic enterprises, MNEs' actions in this regard would be enhanced by virtue of their competitiveness and performance. Multinationals are considered to improve the quality of the workforce by providing access to foreign management practices, technology and training. Most of them take note of the Government's employment policies and objectives, and on the whole, they play an important role in creating jobs. In February 1992 there were 513 enterprises with between 25 and 49 per cent foreign equity, mainly in business and financial services (172 enterprises); wholesale and retail trades, restaurants and hotels (118), and manufacturing (105). Of those 513 enterprises, 298 were small-scale establishments with a maximum of five workers and 58 employed 100 or more persons. The workforce in those 513 enterprises comprised 7,926 part-time workers and 30,581 full-time staff. Enterprises with 50 per cent or more foreign equity numbered 2,928 in February 1992. Most of them were SMEs -- e.g., 1,558 with five workers or less, 232 with between six and nine workers, and 652 with a workforce of between ten and 49. These 2,928 firms created jobs for 28,773 part-time and 132,707 full-time staff (data drawn from tables annexed to report). MNEs are treated like local enterprises and they must respect the national laws and regulations concerning employment. Consultations on manpower plans are not held. When assessing investment applications, the Overseas Investment Commission does not currently carry out a detailed analysis of the applicant's employment policies. However it does take into account the following: potential job opportunities or the maintenance of existing jobs that would or might otherwise be lost; the introduction of new technology and business skills; the development of new export markets or increase in market access; impact on competition and productivity; and the increased processing of local primary products. Foreign workers can only be recruited if the particular skills being sought are not available in the local market. MNEs are expected to introduce the most appropriate technologies that are consistent with their concerns about competitiveness. In a number of cases they have introduced the latest technologies. This has had positive effects on direct and indirect employment, and local raw materials are being increasingly processed in the country (foreign MNE in the forestry, wood, pulp and paper industry named as example). Convention No. 122 has been ratified and Recommendation No. 122 adopted. There is a Pacific Islands Industrial Development Scheme to assist private entrepreneurs from New Zealand and the Pacific Islands in setting up ventures in the agricultural, manufacturing and tourism sectors, in the developing economies of the South Pacific Forum Island Countries. There is little involvement by the Government in what is essentially a scheme for developing the private sector, but on occasion, there are intergovernmental contacts to address specific legal questions, including those relating to the sustainability of natural resources. All entrepreneurs granted approval to operate in the country are subject to the national laws and policies. The Government's views are shared by the New Zealand Employers' Federation, which emphasizes the importance of allowing market forces and the development of successful enterprises to generate more employment opportunities and "real productive activity".

The Government reports that MNEs in Nicaragua cooperate in providing stable employment and in applying social policies which are beneficial to workers and contribute to security of employment. Surveys have shown that these enterprises respect the national labour laws in order to make their activities compatible with government policies. They provide permanent jobs, training and opportunities for occupational development. Appropriate technologies are used, thereby creating direct employment. Indirect jobs are generated through subcontracting. The goods produced by MNEs serve as inputs for production in SMEs. Some of the materials used by MNEs are procured from local sources and this contributes to the country's economic development.

The Government of Nigeria points out that since MNEs place great emphasis on commercial considerations, there is an increasing shift in emphasis from employment generation to productivity and competitiveness. The action being taken by MNEs is to protect investment and this may not necessarily increase employment. However, priority is accorded to nationals in employment matters, and adequate training programmes, career development and competitive conditions of service exist for nationals. In accordance with the National Policy on Backward Integration, MNEs have undertaken extensive research into the use of local raw materials. The Nigeria Employers' Consultative Association makes the same observations as the Government. According to the Nigeria Labour Congress, most MNEs do not employ local experts in areas they consider to be "sensitive" to their operations, even in cases where such local expertise is abundant. Most MNEs cooperate with Government in its efforts to combat unemployment, but there is no cooperation with workers' organizations in this regard, apart from collective bargaining on issues of retrenchment and redundancy. Most MNEs have no retraining facilities and before starting operations, they consult only the Government. Policies as regards the employment, occupational development, promotion and advancement of local staff differ among enterprises. There is no discussion with, or information provided to workers' organizations in this regard. Most MNEs rely on imported technologies for their operations and in spite of various government policies aimed at promoting the local sourcing of raw materials and manufacture of parts, there is still a heavy reliance on imported raw materials and semi-processed inputs. Most parts are either imported or only assembled in Nigeria.

According to the Government of Pakistan, MNEs have contributed to employment and economic growth during the period under survey. They have also played an important role in improving the economic and social conditions of their workforce by providing job opportunities with reasonable remuneration. Prior to undertaking any activity, MNEs must consult with the Government. Emphasis is placed on the occupational development of local workers. Local raw materials are used to the greatest extent possible and new technologies are used taking into account prevailing conditions. The Employers' Federation of Pakistan reports that MNEs' activities have expanded greatly during the period under survey, thereby opening up considerable employment opportunities. Prior to setting up operations, MNEs must agree to employ local workers. MNEs give priority to the occupational development of their workforce by providing all training which is beneficial to both the workers and the enterprise. Many MNEs have contributed to the development of local technological capability -- e.g. in the automobile industry, companies (named) are manufacturing and assembling vehicles, using local manpower and locally available parts. These companies expect to stop all imports shortly. All components will be made in Pakistan with the parent company being consulted only for technical expertise and quality control. MNEs use imports only when local raw materials and parts are not available.

The Government reports that MNEs endeavour to harmonize their manpower plans with Poland's social development policies, by concluding "social agreements" with workers' organizations, which guarantee that certain workers' rights and privileges will be maintained. These include the preservation of current employment levels for between one and a half and two years after the change of ownership, and similar commitments with respect to wages and social security entitlements. The Ministry of Industry and Trade and foreign investors sign agreements containing provisions which ensure that future business activities will be in line with the State's general industrial policy guidelines. The Independent Self-Governing Trade Union "Solidarno" (Poland) reports that MNEs' policies and practices as regards employment-related matters, the development of local technological capabilities and local sourcing, tend to be in line with the prescribed national and international standards if the enterprises are large, because they are found to attach great importance to their reputation (two examples cited by name). The obligation to hire nationals is set out in agreements between the Government and MNEs before they begin their operations.

Foreign enterprises in Portugal must respect national goals with regard to employment and training, states the Government. MNEs contribute to local and regional development, the introduction of new technologies and job creation. Local raw materials are generally used and such linkages have stimulated the development of local enterprises. In the course of fulfilling their manpower requirements, MNEs play a key role in the field of training, which is partly designed to promote an "enterprise culture" and enable workers to use new technologies. The Institute of Foreign Trade informs foreign investors of labour costs, labour legislation, sector-specific laws and regulations and other business-related laws. The General Union of Workers concurs with the Government's statement about the positive social and economic contribution of MNEs in Portugal, adding that this is particularly evident during the initial stages of their activities. It is of the view that "in many cases" vocational training programmes run by MNEs have "exploited national resources" intended for vocational training in general.

The Government of Romania is not aware of actions undertaken by MNEs to increase employment opportunities and standards or to reduce unemployment. MNEs do not, before starting their operations, engage in the type of consultations referred to. They have however promoted job creation, including through the use of local technologies, and contributed to the creation of a distribution network. On the whole MNEs import rather than use local material or components.

According to the St. Vincent Employers' Federation, since government policy is to have some degree of participation in foreign enterprises, it is represented on the boards of these companies where it can make known its views, including on the question of employment. Its policy is to increase employment. There is generally less confrontation in those contexts where collective bargaining takes place. MNEs discuss their manpower plans with the Government and the importance of training and retraining is emphasized. With the exception of senior management positions, all jobs should be held by locals. In special cases work permits may be issued to foreign workers. MNEs have contributed to technological development. For example, local water resources are now used to generate some of the electricity needs whereas in the past all electricity was generated using imported gas. Several local engineers have been trained as a result of these developments. Moreover, the greater supply of electricity has stimulated industrial activity -- e.g., a local brewery has been established and it uses water supplied by the local company. These two establishments are in fact the biggest employers in the country. The local manufacture of parts is not widespread.

The Government reports that the rate of unemployment in Slovakia reached 12.9 per cent in December 1995. MNEs have contributed significantly to a decrease in the level of unemployment, the creation of new job opportunities, and the introduction of new technologies and production techniques. The operations of MNEs require a highly qualified, experienced and knowledgeable workforce. Consequently, these enterprises have provided suitable training courses to meet their manpower requirements and in order to ensure high levels of productivity. The economic restructuring process involves the participation of foreign enterprises, including MNEs.

The Government of Slovenia has no information to reply to the first three questions. It notes that MNEs play a positive role in promoting the development of appropriate technology because their demand for high quality components puts pressure on local producers to meet the required standards. Policies and practices with regard to the use of local raw materials differ between MNEs. Certain MNEs (one named) mainly import the components and assemble them in the country, while others (one named) cooperate with local suppliers.

The Government of Spain reports that the job creation policies applied by MNEs are in line with the principles and objectives of Act 22/1992 of 30 July 1992 and Act 10/94 of 19 May 1994. The Government's employment programme was set up in accordance with section 44 of Act 42/94 of 30 December. Under this programme, fiscal incentives are granted and administrative measures taken to encourage the recruitment of persons for full-time work for indefinite periods and to enable the labour market entry and re-entry for youths, persons over 45 years of age and women. The employment policies of MNEs, like other enterprises, are consonant with this programme. The Government provides extensive details of the steps being taken to improve public employment services, the role of non-profit institutions engaged in activities relating to job placement and with which there can be collaboration, the functions of temporary work enterprises, and other action for creating jobs. The General Union of Workers states that there is no cooperation to deal with unemployment in Spain. MNEs, with the exception of having training programmes for the most qualified workers, generally have employment policies that respond to their own interests. These policies generally comprise the restructuring of enterprises with early retirement for older workers, the cancellation of contracts (with granting of economic incentives) in order to get rid of less qualified staff, and the granting of new contracts, either temporary or indefinite, which often tend to be on an individual basis. The ultimate objective is to adapt to changing circumstances without incurring large social costs. MNEs do not usually harmonize their own interests with national social development policies, nor do they engage in consultations in this regard, before beginning their operations. It is not possible to identify specific steps taken by MNEs to give priority to employment, occupational development, and the promotion and advancement of nationals. However, there have been a few programmes for training and promoting the most qualified workers, who generally have special contracts. Once an enterprise has been set up it does create direct and indirect employment and contribute to the development of the place in which it is located. However, it cannot be said that this local development is a result of the use and choice of specific technologies. The use of technologies and products from the host country varies considerably across sectors and among enterprises. MNEs do not usually use local raw materials and components, nor do they process raw materials locally. Imports can be as high as 90 per cent of total requirements and originate from companies within the group, which may in some cases also be in Spain.

The Government of Sri Lanka reports that MNEs have created more employment opportunities through new investment and the expansion of existing projects. The provisions of the Factories Ordinance regulate their consultations with the Labour Department. MNEs also consult with the Board of Investment. The aims of national social development policies are not of major concern to MNEs. The training and development of workers, which constitute an integral part of MNEs' activities, are provided either in-house or through courses at national training institutions. A few workers are sent abroad for specialized training. MNEs (named) contribute, to a certain degree, to the development of national technological capabilities. They not only have a long tradition of using local raw materials and parts, but are also involved in the local manufacture of parts and the processing of raw materials. As a result there has been a growth in the number of enterprises that supply inputs to MNEs. According to the Lanka Jathika Estate Workers' Union, the main benefit of MNEs to workers in Sri Lanka is the creation of employment opportunities. However, most MNEs do not provide favourable terms of employment and working conditions.

The Government of Swaziland states that it is working with MNEs in developing certain policies (e.g. regarding industrial location) and expects that this will reduce unemployment and underemployment. MNEs do hold appropriate consultations, especially with the relevant government agencies, before starting operations, and in addition to creating employment, they help to develop skills and provide opportunities for the advancement of nationals. MNEs contribute to the local development of appropriate technology capable of generating both direct and indirect employment. There are small-scale projects, e.g. water projects, agriculture and farming, being introduced especially in rural areas, to benefit the community. There are limits to the amount of local raw material that MNEs can use, since most of Swaziland's raw material is exported.

The Government of Sweden notes that because of the growth of foreign acquisitions since the 1980s, the percentage of majority foreign-owned enterprises in Swedish manufacturing rose from 6.3 per cent in 1980 to 16 and 14 per cent in 1992 and 1993 respectively. Between 1993 and 1994 the number of foreign MNEs rose from 2,719 to 3,074. Small enterprises (i.e., up to 49 workers) comprised 75 per cent of the 2,719 foreign-owned enterprises in Sweden in 1993, but as a single group, the 87 large MNEs (i.e., 500 or more workers) absorbed almost half of the 210,252 workers. Companies from the Netherlands, Switzerland, and increasingly, those from the UK and Germany, were the largest employers. During the period under review, the size of the workforce in foreign-owned MNEs in Sweden fluctuated from 222,062 in 1992 to 210,252 in 1993, and 214,014 in 1994. As regards the sectoral distribution of the workforce, in 1993, the most recent year for which data are available, 51 per cent were in manufacturing, 45 per cent in services and 4 per cent in construction. The metal trades employed just over half (52 per cent) of the 108,138 workers in manufacturing MNEs, while 13 per cent of them were in the chemical, rubber and plastics industries and 12 per cent were in the food industry. In the services sector there were 1,936 majority foreign-owned MNEs in Sweden employing 94,379 persons. The wholesale and retail trades accounted for 47 per cent of those workers. Seventeen per cent were in research and development and other business services, while 11 per cent worked in land, water and air transport companies. MNEs played, and still play, a key role in the domestic economy. In 1993, they employed 26 per cent of all workers in the machinery and electrical industries, the same percentage in the chemical industry and one-fifth of all those in the food industry. In the services sector, one-quarter of the workforce in the wholesale and retail trades were in foreign MNEs. According to data supplied by the National Board for Industrial and Technical Development (NUTEK), employment in Swedish-owned MNEs both at home and abroad generally declined during the period under review, mainly as a result of restructuring of large firms. Significant recruitment in the CEECs, and to a lesser extent, in India, was none the less reported. In 1993, there were 754 Swedish MNEs which employed 611,267 persons at home and 535,147 overseas. Ninety-seven per cent of the foreign-based workforce were in large companies (i.e., more than 500 workers), and most of these workers (86 per cent) were in manufacturing. The metal trades employed over half (60 per cent) of the 458,257 workers in manufacturing, while 12 per cent were in the pulp and paper industry and 10 per cent in chemicals. Swedish MNEs in the services sector employed 67,957 persons in foreign countries, of whom 30 per cent were in the wholesale and retail trades and 9 per cent in hotels and restaurants. The services sector accounts for the largest share of employment in Swedish MNEs at home (data extracted, and percentages calculated from tables in the Government's reply).

The Swedish Employers' Confederation and the Federation of Swedish Industries state that they have nothing new to add to the Government's report.

The Government of Switzerland indicates that in principle, MNEs are subject to the same regulatory framework applicable to national enterprises and that they must therefore cooperate with the local or regional labour authorities responsible for combating unemployment. Due to the international character of their activities MNEs may be granted preferential treatment by being allowed to recruit staff unavailable in the country, e.g., highly qualified managerial personnel, or certain staff undergoing professional training. As the result of the very strict conditions for the entry of expatriates, MNEs have to undertake consultations to harmonize their manpower plans. All enterprises must try to employ locally available labour to the greatest extent possible. The Central Union of Swiss Employers' Associations reports that MNEs contribute significantly to different sectors of the Swiss economy. In 1993 FDI inward stock amounted to Sw.frs.57,277 million, with the EU accounting for Sw.frs.34,925 million of the total (data in extract of report annexed to reply). By virtue of the size of their investments, MNEs play an important role with regard to employment. The Federation of Commerce, Transport and Food Industries Workers' Union reports that there is no difference between national and multinational enterprises in Switzerland when it comes to policies concerning labour. However, as opposed to national enterprises, MNEs affect employment in that their location and investment decisions are less bound by national frontiers.

The Government of the Syrian Arab Republic is not informed about action taken by MNEs to increase job opportunities and standards. The Government cooperates with employers' organizations to reduce unemployment, and in this regard, Investment Law No. 10 was promulgated in 1991, with the aim of promoting investment projects that would create jobs. MNEs discuss feasibility studies concerning their projects with the competent authorities which must approve them. This ensures that the manpower plans of these enterprises are in line with national development policies. New development and investment projects are approved if they lead to the transfer of technology and contribute to the training of nationals. Through their local manufacturing activities, some MNEs in the petroleum sector (unnamed), and a multinational in the food and drink industry (name given), contribute to the local development and use of technology. This practice is enhanced by the Government's policy of giving priority to projects which either use local raw material or manufacture goods locally. The Chamber of Industry makes the same observations as the Government of the Syrian Arab Republic, but does not indicate whether it has any knowledge of action taken by MNEs to increase job opportunities.

It is the opinion of the Government of Thailand that certain foreign MNEs have improved working conditions and provided welfare benefits in excess of those required by national policies and legislation. Many MNEs, especially those from OECD countries (origin given), have implemented on-the-job training schemes designed to enhance employees' occupational skills and promote their career advancement. This in turn contributes to increases in productivity.

Referring to MNEs in the energy sector, the Government of Trinidad and Tobago states that a number of initiatives have been taken to increase job opportunities in the areas of exploration, drilling and refinery operations. There has been a significant amount of contracting-out of work in the petroleum industry. A number of firms in this industry have adopted the specifications of the ISO 9000 with a view to improving safety standards for workers. A tripartite committee has been established with the specific objective of developing comprehensive plans as regards policies on wages and benefits, and methods of increasing employment opportunities. Most MNEs operate in the energy sector which is largely capital-intensive, but some employment is generated in spin-off industries, e.g. services. Because of the nature of their activities, MNEs utilize local oil and gas reserves. The Employers' Consultative Association of Trinidad and Tobago replies that MNEs have been training apprentices as part of efforts to increase employment. MNEs rarely engage in consultations with a view to keeping their manpower plans in harmony with national social development policies. The Association is not aware of steps taken by MNEs to give priority to the employment, occupational development, promotion and advancement of local staff. MNEs have contributed to the local development of appropriate technology and employment-creating technology. They have a policy of using, to the extent available, local raw material of good quality.

The Government of Tunisia notes that within the framework of the 1993 Code for Promoting Investments, different forms of financial incentives are given with the aim of promoting regional development (e.g. coverage of part of the cost of investment projects, including feasibility studies) and new investment. The State assumes the employers' social security contributions in the following cases: enterprises in manufacturing, tourism and services which are setting up operations in areas earmarked for regional development; new and small establishments; craftsmen; enterprises employing new teams of workers; and enterprises in the agricultural, fishing and manufacturing industries which hire qualified nationals and help to promote technological development and productivity. In the latter cases, the State may defray all or part of the training costs. When setting up their operations, MNEs are fully informed of the legal framework, and the economic and social conditions in Tunisia. The situation with respect to skill levels is also made known, thereby enabling them to define their investment priorities. Certain MNEs have concluded agreements with the Tunisian Vocational Training Office for the setting up of alternating training programmes. Alternating training and continuing training are among the main measures taken by MNEs to enhance the skills and professional advancement of local workers. The State provides different forms of assistance: tax relief; total financing of training in enterprises with less than 100 workers; and the financing of further training for jobseekers. MNEs contribute to the use of appropriate technologies which generate direct and indirect employment. They give an impetus to the development of micro-enterprises through subcontracting. According to the Tunisian Confederation of Industry, Trade and Handicrafts, MNEs have contributed to an increase in job opportunities, better working conditions and economic development.

The Government of Turkey states that MNEs take into account the objectives, principles and policies outlined in its Seventh Five-Year Development Plan. The basic objective of the Plan is to increase productive employment through the realization of higher growth based on a stable and competitive economic environment that is attractive to investment. Priority will be given to increasing the technological capability of the industrial sector and the value added component in the services sector. Legislation on employment-related issues will be reviewed and workers will be given suitable training in order to function in a changed economic environment. MNEs contribute to job creation, but there is no precise quantitative or qualitative information in this regard. The acquisition of large SOEs by MNEs through privatization could result in a decrease in jobs. MNEs, like national enterprises, have held general consultations both prior to and after commencing operations. MNEs have acted in accordance with the law and the collective agreement regarding the recruitment and advancement of nationals. They are careful not to deviate from local practice and seek to comply with legislation in the social and labour fields. MNEs use technologies that are necessary for their operations. Depending on the circumstances, some import technology to manufacture certain components. SMEs employing up to 49 workers comprise 98 per cent of enterprises in the manufacturing sector and the technology imported by MNEs should contribute to indirect employment in these SMEs. There are no data on which to assess the MNEs' contribution to the creation of new employment opportunities or their impact on employment, based on the choice of technology. It is recognized, however, that they usually opt for labour-intensive technologies if they suit the strategies of the enterprise and not because of the host country's needs. The technology choice of these enterprises merits examination in order to determine the direct and indirect employment effects and linkages to local suppliers and consumers. The Turkish Confederation of Employer Associations reports that, since MNEs tend to have a positive effect on employment, their presence could improve employment opportunities and generate indirect employment in SMEs. The Confederation of Turkish Trade Unions (TÜRK-IS) is not aware of any action taken by MNEs to increase employment opportunities or to combat unemployment. MNEs do not consult with the Government prior to commencing operations in order to keep their manpower plans in harmony with national development policies. As far as the TÜRK-IS is aware, no steps have been taken by MNEs to give priority to the employment and occupational development of nationals. MNEs have not contributed to the local development and use of appropriate technology capable of generating both direct and indirect employment. The policy and practice of these enterprises are to use or process local raw materials and manufacture parts locally, as long as it is cost-effective.

The Government of the United Kingdom believes that it is unrealistic to attempt to persuade MNEs to choose technologies which generate employment, and adds that MNEs will create jobs if it is in their commercial interest to do so. In its view, an important challenge for governments is to create conditions favourable to job creation. As regards the giving of priority to the employment and promotion of nationals of host countries, it thinks that this may be discriminatory and therefore in conflict with the provisions of paragraph 21 of the Declaration. As regards local subcontracting and the use of local raw materials, it believes that such action "could be interpreted as encouraging governments to impose local content conditions", which is contrary to the agreement on Trade Related Investment Measures (TRIMs) within the WTO. The United Kingdom has a liberal investment policy and FDI is seen as improving competitiveness and benefiting the domestic economy in various ways. Since the principles of non-discrimination and national treatment are central to this policy, domestic enterprises and MNEs in the United Kingdom are treated in the same way. MNEs make a significant contribution to increasing employment opportunities and standards, reports the Confederation of British Industry (CBI). They participate in CBI surveys on industrial trends and skill shortages, thereby providing an indication of their manpower plans. They place particular emphasis on the development of human resources and seek to apply the same standards used in the United Kingdom to their overseas operations. Local sourcing is based on considerations of competitiveness.

The Government of the United States refers to the 1978 Full Employment and Balanced Growth Act which outlines the policy and responsibility of the Government to promote, inter alia, full employment and production, with the assistance and cooperation of small and large enterprises (including in the agricultural sector), labour, state and local governments. MNEs in the US have played a significant role in increasing employment in accordance with federal law, government policies and regulations. Between 1988 and 1993 the number of persons working in US affiliates of foreign-owned enterprises rose from 3.8 million to over 4.7 million -- 5 per cent of the workforce in the non-banking sector. It would be economically unproductive to interfere with the manpower plans of individual enterprises. Consequently, there is no legal obligation for enterprises to consult with either local, state or federal officials, or national employers' and workers' organizations on manpower plans before starting operations. However at the state and/or local level, enterprises sometimes voluntarily provide information or hold such consultations with the authorities of such jurisdictions or local unions. The information provided and the consultations held are not for the purpose of achieving implicit or explicit approval of enterprises' manpower plans; rather they are "informational and facilitative in nature". MNEs' practices in this regard do not differ significantly from those of comparable domestic enterprises. MNEs in the United States generally employ US citizens or permanent residents of foreign origin. However, no data are available on the number of US nationals and foreign nationals employed by such enterprises. The Government provides details of procedures for employers to request work permits under the US Immigration and Nationality Act (INA), for different categories of workers and the quotas of visas available. Under the INA the employer must provide notice of labour certification for foreign workers to the appropriate union, or employees at the workplace, if there is no union. The union and/or employees have the right to challenge the employer's application for certification or challenge the wages and working conditions which the employer intends to offer foreign workers.

The Government of Venezuela says that no employment policy in line with the aims of the Tripartite Declaration has been drawn up within the framework of its FDI policy. The Venezuelan Federation of Chambers of Commerce and Manufacturers' Associations (FEDECAMARAS) states that certain MNEs hold consultations at the sectoral and national levels, to find out the areas of possible collaboration with regard to job creation. They contribute to efforts to improve the quality of jobs, and to set up programmes for training and skill formation. To a certain degree, they assume responsibilities that are rightly those of governments. Both the MNEs and host country gain from the training that is given to enable workers to utilize new technologies. In many cases, efforts to adapt technologies to local circumstances and needs would retard progress and not be in the host country's interest. While in the majority of cases there are consultations with respect to the local development and use of appropriate technology, FEDECAMARAS believes that it is the responsibility of host countries to adapt their institutions to modern technological requirements. There are specific examples of companies training staff to use new technologies in assembly operations, including through overseas training. MNEs have a policy of using to the maximum, local raw materials in the iron and steel, aluminium, petroleum and related industries.

The Government of Zambia is currently implementing a Structural Adjustment Programme (SAP) with the aim of revitalizing the economy and raising living standards. The privatization of SOEs is one of the components of the SAP, which has reached a very advanced stage. This, together with the removal of subsidies, have in the short term, led to retrenchment in both the public and private sectors. The streamlining and rationalization of national enterprises in the interest of achieving greater efficiency, coupled with other economic factors, have aggravated unemployment. As regards MNEs, they tend to use capital-intensive technologies as opposed to hiring more workers. The Government is promoting labour-intensive programmes (e.g. public works) with the aim of increasing job opportunities. MNEs in different sectors contribute to the occupational development and advancement of nationals. Moreover, because of the policy of "Zambianization", many nationals occupy senior positions. They can influence policies and take decisions that lead to the development and use of appropriate local technologies that generate both direct and indirect employment.

The Government of Zimbabwe states that MNEs are informed about national employment policy during discussions with the competent authorities regarding investment prospects in the country. In particular, MNEs are advised of the requirement that nationals should be given preference in these enterprises, and that expatriates may only be considered for employment in positions where local skills are not available. MNEs undertake consultations with the competent authorities before commencing operations. They are involved in labour-intensive activities. They promote the advancement of local employees by sending them abroad for training. Some MNEs have "actually adopted" appropriate technology which has directly and indirectly contributed to the generation of employment. One enterprise (name given) utilizes mechanized labour-intensive technology in its operations. The company creates employment-generating linkages by subcontracting certain tasks to local enterprises. Most MNEs use local raw materials depending on the availability, as well as local processing facilities. The Employers' Confederation of Zimbabwe states that MNEs have increased employment opportunities, raised standards and cooperated with the Government and workers' organizations in reducing unemployment by investing in large-scale operations in sectors such as mining, construction, metal trades and the food and drink industries. MNEs respect the laws relating to the termination of employment. They undertake appropriate consultations with the competent authorities, as required, in order to keep their manpower plans in harmony with national social development policies. MNEs have "improved their performance" as regards their contribution to the development, promotion and advancement of nationals. Consequently, they are acting in accordance with the labour code which prohibits discrimination on the basis of race. MNEs have contributed to the local development and use of appropriate technology capable of generating both direct and indirect employment. One MNE in the mining sector (name given) has generated employment for thousands of nationals because of its use of sophisticated technology. MNEs, wherever possible, utilize and process local raw material.

Equality of opportunity and treatment (Paragraphs 21-23)

(1) Does government policy promote equality of opportunity and treatment in employment and does the practice by multinational enterprises comply fully with the letter and spirit of such policy?

The employment policy of Antigua and Barbuda promotes equality of opportunity and treatment, reports the Government. MNEs are monitored to ensure that they fully respect that policy.

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

Referring to Queensland and the Australian Capital Territory, the Government of Australia points out that the relevant laws prohibiting all forms of discrimination, including in employment, apply to all enterprises, regardless of ownership. There are established legal procedures for submitting complaints and resolving disputes in this regard.

The Government of Austria notes that its reply to the last survey is still applicable. It adds that the Equal Treatment Act was amended by the Accompanying Labour Act (ArbBG), BGBI. No. 833/1992 which came into force on 1 January 1993. The aim is to speed up equality of opportunity and treatment for men and women in practice, and to bring national law into line with the requirements of the EU. The new law includes the concepts of "indirect discrimination" and "work of equal value", considers sexual harassment as an act of discrimination and provides for the payment of compensation in such circumstances. Workers discriminated against at the time of recruitment are entitled to compensation of up to two months' pay. Compensation is also provided for, in cases of discrimination with regard to promotion.

According to the Government of the Bahamas, MNEs comply with its policy for promoting equality of opportunity and treatment in employment.

The Government states that Bangladesh has ratified Convention No. 111 and is actively pursuing a policy to promote equality of opportunity and treatment in employment. It has also decided to ratify Convention No. 100. The national Constitution guarantees equality of opportunity to all citizens and the practices of MNEs, so far, fully comply with this policy. The Bangladesh Employers' Association agrees with the Government's reply.

The Government of Barbados states that its policies promote equality of opportunity and treatment in employment at all levels. These policies are clearly defined under the long-term goals of each development plan. MNEs generally comply with the letter and spirit of the policies. The Barbados Employers' Confederation affirms that the Government's policy promotes equality of employment and treatment.

The Government of Belgium notes that there is nothing particular to report as regards MNEs' policies on equality of opportunity and treatment. The National Labour Council draws attention to the legal framework governing equality in employment -- e.g. the Act concerning job contracts applicable to all workers regardless of their nationality (3 July 1978), and the amended collective agreement No. 38a (29 October 1991) which prohibits the employer from taking into account personal attributes, especially national origin, when recruiting, as long as this has no bearing on the activities of the enterprise. The laws in Belgium do not distinguish between national and foreign enterprises. This is in keeping with the OECD's requirements that enterprises must not be discriminated against by virtue of their origin. All enterprises, including subsidiaries of MNEs, are covered by the national legislation in force.

The federal Constitution of Brazil prohibits any form of discrimination, reports the Government. MNEs have been found to respect the law which calls for equality of opportunity and treatment in employment. According to the Single Central Organization of Workers women and low-skilled workers in Brazil are discriminated against. The wages of women doing "the same work" as men are about one-third less than those of their male counterparts. When new technologies are introduced, low-skilled workers are dismissed and no efforts are made to train them.

The Government of Cambodia pursues a policy of promoting equality of opportunity and treatment, as provided for in article 36 of the Constitution.

The Government of Canada notes that the statements made in its reply to the Fifth Survey are still valid and so too are those contained in its reports on the implementation of Conventions Nos. 100 and 111 which were submitted to the ILO's Committee of Experts on the Application of Conventions and Recommendations in 1993 and 1995 respectively. The Agreement on Internal Trade which came into force on 1 July 1995 provides for the harmonization of different provincial requirements for the certification of trades and professional qualifications. The aim is to guarantee labour mobility and the recognition of qualifications throughout the country. The last report of the Government of the Province of Quebec is still applicable. Legislation guaranteeing equal wages for women is being considered. As regards collective agreements, only 29 per cent of those involving MNEs apply either partly or fully to part-time workers, whereas in other enterprises it is 49.4 per cent. With respect to amenities, only 1 per cent of all enterprises in Quebec (local and foreign) have child-care facilities. Opportunities for women to obtain jobs and have union protection are relatively limited.

The Government reports that Chad has ratified Conventions Nos. 100 and 111. The national legislation guarantees equality of opportunity and treatment in employment. However, MNEs do not comply with the spirit and letter of this legislation, particularly when it comes to the treatment of foreigners and Chadians with the same qualifications who carry out work of equal value.

The Government of Chile indicates that the principle of non-discrimination is enshrined in article 19(16) of the national Constitution and section 2 of the Labour Code, both of which must be respected by enterprises, regardless of their origin. Section 39 of Legislative Decree No. 1.446 of 1976 concerning the Training and Employment Statute also prohibits discrimination by municipal and private placement services. The national labour policies and minimum labour standards apply to workers in all enterprises. Standards exceeding the minimum may be obtained through individual job contracts or collective bargaining.

The Government reports that the national Constitution and laws of Colombia guarantee equality of opportunity and treatment in employment and those MNEs that do not respect them are sanctioned accordingly. Under section 74 of the Labour Code, nationals must comprise at least 90 per cent of the workforce and at least 80 per cent of the skilled, technical and managerial personnel in MNEs as well as local enterprises. The National Association of Manufacturers concurs with the Government's observations and adds that considerable progress is being made with respect to promoting equality of opportunity and treatment in employment between men and women. Colombia has ratified Convention No. 111 and issued Decree 1398 of 1990 in order to further the 1979 UN Convention on the Elimination of All Forms of Discrimination Against Women. The General Confederation of Democratic Workers states that government policy promotes equality of opportunity and treatment in employment in all enterprises in Colombia, including MNEs.

The Government states that the Constitution and laws of Costa Rica guarantee equality of opportunity and treatment in employment and these norms are respected by MNEs.

The principle of equality of opportunity and treatment is guaranteed by the Constitution and the national labour legislation, states the Government of the Czech Republic. No violation of this principle by MNEs has so far been found. The Czech and Moravian Chamber of Trade Unions is of the view that while equality of opportunity and treatment in employment is guaranteed by law, certain categories of workers, such as those with physical disabilities, face problems because of inadequate structures to facilitate their integration in the labour market. However, this does not concern MNEs.

According to the Dominica Employers' Federation the principles enunciated in these paragraphs are contained in the national legislation. However, claims of unfair treatment on the grounds of sex, religion and trade union involvement, are not unusual.

The Government of Ecuador reports that Conventions Nos. 111 and 100 are respected, and those who violate these principles are sanctioned. MNEs apply the national standards concerning non-discrimination in employment.

The Government of Egypt promotes a policy of equality of opportunity and treatment. However, MNEs do not comply with the spirit of that policy since they discriminate between Egyptian and foreign staff. MNEs demand special qualifications such as languages, computer skills, and foreign educational background, which put nationals at a disadvantage vis-à-vis foreigners. There are also major wage differences between Egyptians and expatriates. Information provided through the Federation of Egyptian Industries shows that the Government promotes a policy of equality of opportunity and treatment and that enterprises in the pharmaceutical and metal trades (named) comply with the policy.

The Government reports that in Estonia any kind of discrimination on the basis of race, colour, sex or religion is prohibited by the Constitution, the Employment Contract Law, the Wage Law, and international agreements to which the country is a signatory. According to the Association of Estonian Trade Unions there is no discrimination in employment.

The Government of Ethiopia points out that a provision of Labour Proclamation No. 42/1993 explicitly underlines the importance of equality of opportunity and treatment in employment. This is in line with the national Constitution and the social policy of the country. The few MNEs in operation do comply with this policy and recruitment is based primarily on merit.

The Government of Finland states that an amendment has been made to the Constitution Act of Finland, according to which discrimination, including on the basis of sex, is prohibited. The same provision states that gender equality shall be promoted in social activities and in working life, particularly when determining salaries and wages as well as other terms of employment. The Penal Code was supplemented by a new chapter on offences relating to working life. Discrimination at work, violation of the rights of workers' representatives, and violation of workers' right to organize have been made a criminal offence. The provisions apply to all employers, regardless of the type or ownership of the enterprise. The Act on the Supervision of Labour Protection and Appeal Procedure in Matters concerning Labour Protection has been amended to enable the labour protection authority and the public prosecutor to prosecute offenders. The Act on Equality between Women and Men was supplemented by a provision explicitly stating that discrimination because of pregnancy is prohibited. At the same time, the prohibition of indirect discrimination on the basis of sex was specified. The relatively comprehensive reform of the Equality Act, which entered into force on 1 March 1995, included further specifications and clarifications of the prohibition of discrimination. It reinforced the obligation of the competent authorities as well as employers to promote equality between the sexes and strengthened the legal protection of those discriminated against. The Act obliges employers to promote equality between women and men at the workplace if they regularly employ at least 30 persons, by including specific measures in the annual personnel and training plan or the action programme for labour protection. The observance of the Equality Act is supervised by an Equality Ombudsman and an Equality Board in accordance with separate provisions of the law. MNEs are also obliged to promote equality and prevent discrimination. A Working Group that was set up in 1990 by central employers' and workers' organizations to study existing job evaluation schemes, presented its report in 1994. The report contained a number of recommendations for refining existing schemes and removing wage inequalities. A 1995 agreement on economic, employment and labour market policies called for the monitoring of the preparation of job evaluation guidelines and the assessment of data collection processes with respect to the status of male and female employees. Recent data show that since the 1993 recession there has been a disturbing trend toward growing wage disparities between men and women. The Confederation of Finnish Industry and Employers and the Employers' Confederation of Service Industries point out that in every respect MNEs take account of the efforts of the Government and the authorities to promote equality and combat discrimination. 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 there is no evidence of discrimination in employment by MNEs. The amended Equality Act, which entered into force on 1 March 1995, stipulates that a plan for promoting equal opportunity has to be prepared for each workplace which has over 30 employees (details of the provisions of this Act are in the Government's reply).

According to the National Council of French Employers the principle of non-discrimination is fundamental to all national laws and it is fully respected by all MNEs.

According to the Government of Gabon, equality of opportunity and treatment in employment is promoted through several provisions contained in the Labour Code (sections 2, 140 and 179). It notes that employers have a slight preference for foreign workers and that they sometimes use "fraudulent practices" to obtain work permits for foreigners (e.g. by prolonging the status of deputy to the expatriate worker, requiring certain qualifications for the job or through the transfer of personnel). The Gabonese Confederation of Free Trade Unions acknowedges that while the law provides for equality of opportunity and treatment, this is not the case in practice.

The Government states that Grenada has ratified Convention No. 100 and MNEs comply fully with the letter and spirit of government policy in this regard.

The Government of Hungary states that a fundamental objective of its economic policy is the creation of equal employment opportunities. This is promoted through anti-discrimination legislation and by providing support to disadvantaged groups. The achievement of this objective is threatened however, by the nature of activities and by the preference of MNEs for young and middle-aged workers over those who are older. MNEs have undoubtedly made a significant contribution by providing jobs for unemployed youths, with some companies operating special employment-promotion programmes. There are also a few examples of MNEs taking initiatives to employ persons with disabilities.

The Government of India has introduced specific laws to promote equality of opportunity and treatment in employment and there has been no violation of such legislation by MNEs.

The commitment of the Government of Ireland to the principle of equality of opportunity for men and women in employment is reflected in its policies, as well as in the 1974 Anti-Discrimination (Pay) Act and the 1977 Employment Equality Act. These laws apply to all enterprises in Ireland. Under the 1974 Act, men and women have the right to equal pay for "like work" with the same or an associated employer, while the Employment Equality Act prohibits discrimination either directly or indirectly, on the basis of sex or marital status, as regards recruitment, conditions of employment, training and promotion. Discriminatory rules or instructions are prohibited. The Act is directed not only at employers but also vocational training institutions, employment agencies, employers' or employees' organizations and professional bodies. It also applies to the publication or display of advertisements. In the wake of the national agreement concluded by Government, employers and trade unions, i.e., the Programme for Competitiveness and Work, new legislation concerning equality is to be presented to Parliament in 1996, to strengthen existing provisions in this field. There is an Employment Equality Agency which, inter alia, gives continuous advice and assistance to both sides of industry. In special circumstances the Agency may either represent individuals or arrange for them to be represented in equality-related legal proceedings.

The Government of Italy promotes a policy of equality of treatment and of opportunities in employment. The General Confederation of Industry (Italy) concurs with the Government.

According to the Government of Japan, the legislation in force guarantees equality of opportunity and treatment in employment. Attempts are made to ensure that there is equal treatment between men and women as regards recruitment, promotion, training, working conditions, retirement age and dismissal.

The Government of Jordan affirms that the principle of equality of all citizens, including in the area of employment, is fundamental to the national legislation, which must be respected by MNEs. Scientific qualifications, practical experience, skills and competence are taken into account for the recruitment and promotion of workers, in order to meet national priorities. The Amman Chamber of Industry confirms that the Government promotes equality of opportunity, and that MNEs in Jordan comply with this policy. It is not aware of any complaints about discrimination in employment.

According to the Government, in the Republic of Korea equality of opportunity and treatment in employment is guaranteed under the 1993 Basic Employment Policy Act. In addition, as part of its efforts to expand employment opportunities for minorities, laws promoting employment for the aged and disabled persons have been enacted. The Labour Standards Law and the Equal Employment Law prevent discrimination on the basis of sex, nationality and social status. National laws apply equally to MNEs and other enterprises, and as such MNEs must comply with the provisions of the relevant laws. The Korea Employers' Federation notes that MNEs comply fully with national policies promoting equality of opportunity and treatment in employment.

The Government of Kuwait promotes equality of opportunity and treatment in employment, regardless of origin, sex, religion or nationality. The fact that local and foreign workers enjoy the same rights attests to the application of this principle in accordance with articles 29 and 41 of the Constitution.

The Federation of Luxembourg Manufacturers indicates that equality of opportunity and treatment prevails in MNEs. The Confederation of Independent Trade Unions (Luxembourg) is of the view that the policies and practices of enterprises conform with the provisions of the paragraphs mentioned.

The Government of Malaysia reports that the National Development Policy provides for equality of opportunity in employment. It also recognizes the concepts of "equal pay for work of equal value and equal opportunities for training and advancement irrespective of gender". The Malaysian Trades Union Congress reports that equality of opportunity is not promoted.

The General Confederation of Employers of Mauritania indicates that the Government has a policy of furthering equality of opportunity and treatment. ILO Convention No. 111 has been ratified and the Labour Code contains provisions in this regard (section 40, Title V). The Free Confederation of Workers of Mauritania is of the opinion that the Government does not promote equality of opportunity and treatment, as its employment policy is characterized by discrimination, based on a system of oppression and exclusion.

The Government reports that in Mauritius, the policy is to promote equality of opportunity and treatment in employment. There is a tendency for MNEs to employ a few of their own nationals in key positions where specific local competence is in short supply. Otherwise, they generally comply with the letter and spirit of the Government's policy.

Equality of opportunity and treatment in employment is guaranteed by the national labour laws of Mexico and they apply to all enterprises including MNEs, reports the Government. Mexico has ratified Conventions Nos. 100 and 111. In addition, under the Federal Labour Act, the principle of non-discrimination must also be applied by employers in all enterprises when it comes to the training of workers. The Mexican Confederation of Chambers of Industry notes that within the framework of the country's employment policy, care is taken to ensure that MNEs observe the principle of equality of opportunity in employment, which is guaranteed by law. Employers' organizations are very concerned about this issue and they collaborate with the authorities in this regard. The Confederation of Mexican Workers agrees with the Government.

The Government of Namibia affirms that its policies promote equality of opportunity and treatment and that MNEs fully comply with them. Multinationals provide both direct and indirect employment. Stability of employment in these enterprises is determined by developments in the product markets in which they operate. In considering operational changes that may have major effects on employment, MNEs provide reasonable notice to all concerned. Where staff cuts have been required, some MNEs have negotiated termination benefits as required by law. Such packages have included retraining.

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

Referring to Convention No. 111 and Recommendation No. 111, and Convention No. 100, both the Government of New Zealand and the New Zealand Employers' Federation state that reference should be made to reports made to the ILO's Committee of Experts on the Application of Conventions and Recommendations for the periods 1 July 1994-30 June 1995, and 1 July 1991-30 June 1992, respectively.

The Government of Nicaragua reports that its policies promote equality of opportunity and treatment in employment, and that they are fully respected by MNEs.

The Government of Nigeria states that subject to the Immigration Act, and the Government's policy for encouraging the employment of local skilled and semi-skilled labour, discrimination in employment on any grounds is prohibited. MNEs do not discriminate in employment matters, since qualifications and skills constitute the basis for recruitment and career advancement. The reply of the Nigeria Employers' Consultative Association is the same as the Government's. The Nigeria Labour Congress reports that government policy promotes equality of opportunity and treatment in employment. Most MNEs do not, however, comply fully with the letter and spirit of this policy.

According to the Government of Norway, national policy gives high priority to achieving the objective of equality of opportunity and treatment in employment. Section 55A of the Act respecting Workers' Protection and the Working Environment (1977) promotes equality of opportunity in employment. The employer may not, either when advertising vacancies or otherwise, ask job applicants for information about their political, religious or cultural affinities and whether they belong to any workers' organizations. To avoid the exclusion of certain groups, a supplement to this provision has been proposed to prohibit discrimination based on race or colour. The 1978 Act on Equality between the Sexes, which came into force in 1979, has been effective in fostering progress towards gender equality. Its purpose is not only to promote equality between the sexes, but also access to education and employment, better remuneration, and improved cultural and professional development for women. Complaints of discrimination based on sex can be brought, either by individuals or organizations, before the Gender Equality Ombudsman who can also take the initiative to intervene in a dispute. Cases may be brought before the Gender Equality Appeals Board for resolution. In order to investigate a case, both the Ombudsman and the Board are empowered to request any necessary information from the parties involved. Cases of non-compliance with equality-related provisions of collective agreements can be brought to the Industrial Disputes Courts. This Act, together with other measures, provides national guidelines for the development of appropriate recruitment policies to ensure equality of treatment in employment. As a follow-up, the views of the Ministry of Children and Family Affairs are also sought to monitor compliance with the spirit and letter of such policies. None the less there are still "problems in achieving the goals of equal opportunity and treatment" -- i.e. there may be difficulties in proving whether discrimination has actually occurred. Tripartite commitment to "binding agreements and mechanisms for application" is a prerequisite for attaining the objectives of the Act. To date, only 14 enterprises (out of 10,337 covered) have a plan for gender equality as stipulated by the 1982 agreement between the Norwegian Federation of Trade Unions and the Confederation of Norwegian Business and Industry. The lack of effective implementation of and follow-up to the Act, has led the Government to intensify efforts in this regard, through legislation, information, research and pilot projects. Amendments have also been proposed to strengthen the provisions of the Act with regard to the following: employment; equal pay and working conditions; the implementation of equal pay provisions in collective agreements; and the role of the Ombudsman. A simple job evaluation methodology for comparing wages across occupational categories is being developed by a group of experts, in a bid to assist the social partners in their efforts to promote the principle of equal pay for work of equal value. The Confederation of Norwegian Business and Industry supports the views expressed by the Government.

The Government of Pakistan reports that MNEs provide equal opportunities for all workers, and that discrimination based on race, colour, sex and religion is totally discouraged. The Employers' Federation of Pakistan states that national policy promotes equality of opportunity and eliminates gender discrimination. Under the relevant laws, women have special treatment with regard to working time, maternity benefits and special leave for mourning or for other personal reasons.

The Government of Poland reports that the standards enunciated in Conventions Nos. 100 and 111 and the corresponding Recommendations have been incorporated in the national legislation which applies to all enterprises, including MNEs. According to the Independent Self-Governing Trade Union "Solidarno", practices with respect to equality of opportunity and treatment tend to be favourable in large MNEs which usually attach great importance to their image and reputation. Moreover, this question is covered in agreements signed between the Government and the MNEs before they begin operating in Poland.

The Government affirms that all enterprises in Portugal must respect national law and practice which guarantee protection from discrimination on any grounds. There is no difference between the conduct of MNEs and national enterprises in this respect. Notwithstanding the law, men tend to have easier access than women to positions requiring skills and qualifications. This may be accounted for by social and cultural factors which have had an impact on the educational levels and skills of women, and on their family responsibilities. The General Union of Workers reiterates the Government's observations with regard to the legal protection of individuals against discrimination and confirms that it applies to all enterprises in Portugal, including MNEs.

The Government states that Romania has a policy of equality of opportunity and treatment in employment which is respected by MNEs.

Government policy promotes equality of opportunity and treatment in employment, states the St. Vincent Employers' Federation.

The Government of Slovakia states that its labour market policy is based on the "Concept of Transformation of Social Domain in the Slovak Republic", and implemented at two levels. At one level, the overall employment policy is shaped by the country's general macroeconomic policies, and at another level, there are the supporting mechanisms, for promoting this policy -- e.g., employment agencies; retraining and upgrading of workers' skills; and the organization of public works programmes.

The Government of Slovenia confirms that it has a policy to promote equality of opportunity and treatment in employment and that MNEs comply fully with the letter and spirit of this policy.

The Government of Spain states that equality of opportunity and treatment in employment is promoted through Act 22/92 and Act 4/95 of 23 March 1995. Under the former, subsidies are granted to encourage the hiring of women in professions or positions where they are underrepresented and to enable their re-entry into the labour market after a period of absence of more than five years. Act 4/95 extends, from one to three years, the period during which parental leave is guaranteed. Employers are given economic incentives in the form of reduced social security contributions for recruiting workers to replace those on leave. The General Union of Workers (UGT) states that equality of treatment is guaranteed under sections 14 and 35.1 of the Constitution of Spain, sections 42(c), 17.1, 24.2 and 28 of the Workers' Statute and Act 11/1994 in which the concept of "work of equal value" replaces the old concept of "equal work". However, the evaluation of specific tasks for the purpose of job classification and the granting of performance-related bonuses sometimes make it possible for there to be hidden discrimination against women. The law provides for the partial nullification of agreements which contain discriminatory provisions. The UGT is of the view that the measures to combat discrimination are insufficient and somewhat late in coming, particularly given the problems that already exist in this regard.

The Government of Sri Lanka states that equality of opportunity and treatment in employment is guaranteed by the Constitution, and MNEs comply with this policy.

Government policy in Swaziland promotes equality of opportunity and treatment in employment in line with the relevant ratified Conventions and the Recommendations adopted in this respect.

The Government of Switzerland refers to its reply under paragraphs 8-12. MNEs are subject to, and respect, the national laws and regulations. They have at times shown themselves to be "more open-minded" than national enterprises. The Central Union of Swiss Employers' Associations (UCAPS) indicates that the principle of equality of treatment between men and women is laid down in the national Constitution. The Federal Act on Equality between Men and Women complements the Constitution by prohibiting, inter alia, sex discrimination related to recruitment, assignment of tasks, working conditions, remuneration, training and further vocational training, promotion and termination of employment. In a Guide for Employers concerning the Act (copy attached to report), UCAPS notes that it respects the principle of promoting women at work, and recognizes the responsibility of enterprises in this domain. However, it does not think the problem of discrimination against women, which is a social one, either can or must be resolved by imposing legal obligations on enterprises. Under the Act, discrimination encompasses sexual harassment and victims of discrimination are entitled to compensation. The Labour Code protects workers against unfavourable treatment because of their race or ethnicity, and an Act on Racial Discrimination was adopted in September 1994, introducing in section 261(a) of the Penal Code, a new provision covering labour-related issues (copy annexed to report). All enterprises are subject to this legislation. The Federation of Commerce, Transport and Food Industries Workers' Union (FCTA) states that the regulatory framework on equality of opportunity and treatment applies to all enterprises in Switzerland. In addition, collective agreements concluded by the FCTA increasingly contain provisions on this subject.

According to the Government of the Syrian Arab Republic, there is a policy of promoting equality of opportunity and treatment in employment, and MNEs respect it. The Chamber of Industry (Syrian Arab Republic) makes the same observations as the Government.

The Government of Thailand states that while national policy promotes equality of opportunity and treatment in employment not all MNEs comply with such requirements.

The Government of Trinidad and Tobago has a policy to promote equality of opportunity and treatment in employment and this is respected by MNEs. In a context marked by high unemployment and a scarcity of necessary skills, it is difficult to monitor MNEs' compliance with the letter and spirit of the policy. The Employers' Consultative Association of Trinidad and Tobago reports that government policy promotes equality of opportunity and treatment in employment, and that it is fully respected by MNEs.

According to the Government of Tunisia, equality of opportunity and treatment in employment is guaranteed by law, and it must be respected by MNEs. This includes the right to maternity protection for working women (maternity leave, paid time off for breastfeeding), the right to continuing training, and trade union rights. Act No. 93-66 of 5 July 1993 guarantees non-discrimination between men and women as regards the application of the Labour Code. In November 1992, Act No. 92-114 was adopted, incorporating the provisions of the Protocol of 1990 concerning the Convention on Night Work (Women) (Revised), 1948. Concerning equality of opportunity and treatment in employment, the Tunisian Confederation of Industry, Trade and Handicrafts indicates that MNEs apply the national standards, which are inspired by international labour standards.

According to the Government of Turkey, MNEs do not discriminate on any grounds and they fully respect the principle of equality of opportunity and treatment in accordance with the national legislation. The Confederation of Turkish Trade Unions affirms that government policy promotes equality of opportunity and treatment in employment and that MNEs comply fully with these policies.

The Government notes that the United Kingdom remains fully committed to the principle of equal opportunity for men and women in employment. As regards part-time workers, on 6 February 1995 regulations came into effect to guarantee employment protection on the same basis as that given to full-time workers. In the case of Northern Ireland, similar regulations came into effect on 19 March 1995. Previously, those working less than 16 hours per week were subject to more stringent requirements to qualify for "all statutory employment protection rights", and those who worked less than eight hours per week had no such entitlement. Under the Trade Union Reform and Employment Rights Act 1993, workers who believe that they are adversely affected by the application of a provision of a collective agreement or by a rule made by an employer, have the right to submit a complaint to an industrial tribunal. The provision or rule may be declared void by the tribunal. Moreover, under this Act, any code of practice concerning equal pay which is issued by the Equal Opportunities Commission under the Sex Discrimination Act 1975 is admissible as evidence and must be taken into account by any industrial tribunal considering a matter to which the code is relevant. In the case of Northern Ireland, the Industrial Relations (Northern Ireland) Order 1993 containing similar provisions came into effect on 26 November 1993. The 1994 Maternity (Compulsory Leave) Regulations provide for 14 weeks' maternity leave, automatic protection from maternity-related dismissal, and longer periods of maternity absence (around 40 weeks) for women with two years' continuous service. The Government gives details of maternity pay and entitlements, and eligibility for their receipt. These minimum statutory maternity rights may be made more favourable as a result of agreements between employers and employees. In the case of Northern Ireland, similar new provisions governing maternity leave and protection came into force on 10 June 1994. Under the Trade Union Reform and Employment Rights Act 1993, the identity of those involved in sexual harassment cases is protected for the duration of the case. In the case of Northern Ireland, the Industrial Relations (Northern Ireland) Order 1993 contains similar provisions. The Government notes that since 1993, limits to the amount of compensation which may be made in cases concerning sex discrimination have been abolished. This also applies to compensation in cases of racial discrimination, in keeping with the provisions of the 1994 Race Relations (Interest on Awards) Regulations and the 1994 Race Relations (Remedies) Act. As regards Northern Ireland, upper limits on compensation for victims of discrimination on any grounds were abolished in 1995. In 1994 the Government and the Equal Opportunities Commission introduced "Opportunity 2000" -- an initiative for creating regional consortia, comprising members from the public and private sectors, with responsibility for identifying barriers that women face at work and in public life, and devising ways of overcoming them. This is based on a similar 1992 initiative in Wales (Chwarae Teg). In the case of Northern Ireland, "Opportunity 2000", an employer-led initiative, was launched in 1994, with the aim of encouraging enterprises to take action for improving women's representation in senior positions (on the basis of merit). In Scotland, the Equal Opportunities Commission is involved in developing proposals for a "Fair Play" initiative and for supporting "Training 2000", an organization concerned with the training and occupational development of women. In 1993 the Out-of-School Childcare Grant was launched as a means of facilitating greater labour market participation of parents, by providing childcare for children of school age; 45 million is being channelled through Training and Enterprise Councils and Local Enterprise Councils for this purpose. An EU-funded Out-of-School Childcare Scheme is also to be introduced in Northern Ireland. Flexible working arrangements are encouraged and in 1991 and 1993 the Government issued two booklets highlighting the advantages of flexible working hours, part-time jobs and job-sharing to employers and workers (The Best of Both Worlds, 1991, and Be Flexible, 1993). Since 1990 public and private enterprises in Northern Ireland with more than 250 workers have had to register with the Fair Employment Commission. They must monitor annually the religious composition of the workforce and carry out triennial reviews of work practices to ensure that there is equality of opportunity and to introduce affirmative action programmes where necessary. As from 1992 these requirements were made applicable to enterprises with between 11 and 25 workers. The sanctions are quite significant. Recruitment and promotion must be based on merit and "positive discrimination and quotas are unlawful". As part of its national policy to promote equality of opportunity and treatment, the United Kingdom Government has produced, for widespread distribution, the following kits, guides and booklets (copies attached to report): A ten-point plan pack (a kit for employers); Equality pays -- How equal opportunities can benefit your business: A guide for small employers (booklet); Employers' equality networks (booklet); and Positive action -- Promoting racial equality in employment (booklet). Legislation on race relations in Northern Ireland is to be introduced, using the 1976 Race Relations Act (United Kingdom) as a model. The national legislation concerning equality of opportunity also applies to MNEs, states the Confederation of British Industry.

The Government of the United States reports that its policy on equality of opportunity and treatment in employment is embodied in constitutional decisions, legislation and executive orders. An important piece of legislation in this regard is Title VII of the 1964 Civil Rights Act, as amended by the 1972 Equal Employment Opportunity Act, the 1991 Civil Rights Act and other legislation. Title VII prohibits discrimination on the basis of race, colour, national origin, religion or sex, in all aspects of employment by all employers, employment agencies and labour organizations with 15 or more employees (or members where applicable). It also prohibits any reprisals or discriminatory action against individuals or groups of individuals "because they have opposed discriminatory practices, participated or assisted in any way, in a charge, investigation or proceeding brought under its provisions". Title VII is administered by the US Equal Employment Opportunity Commission, an independent federal agency. It receives individual and collective complaints, may issue its own complaints and has litigation and enforcement powers. By law, employers with a workforce of more than 100 and government contractors must submit annual reports to the Joint Reporting Committee indicating by race, sex and national origin the numbers employed by major job category. Federal contractors and subcontractors with 50 or more employees and contracts or purchase orders amounting to US$50,000 or more must file similar annual reports. Under Title VII, as amended by the Civil Rights Act of 1991, victims of harassment or discrimination based on sex, religion or disability may be granted monetary compensation. The Act clarifies procedures for dealing with cases of employment practices "which are fair or non-discriminatory in form but have a disparate impact on a particular group". Under the Act, a Glass Ceiling Commission chaired by the Secretary of Labor has made recommendations for overcoming artificial barriers to the advancement of women and minorities in the workplace. Title I of the 1990 Americans with Disabilities Act prohibits discrimination in all aspects of employment against qualified indivi-duals with disabilities, as well as retaliation against those who oppose discrimina-tory practices or participate in efforts to enforce the statute. Systematic data on the incidence of discrimination by MNEs are not available, but there appears to be no major problem in this regard. US law does provide for nationals of the home country of MNEs to hold certain positions in the enterprise; therefore the presence of such individuals does not in itself constitute evidence of discrimina-tion. The selection of home country nationals for certain positions could, however, be challenged under Title VII of the Civil Rights Act and a case-by-case analysis of the qualifications required for particular positions could be undertaken.

The Venezuelan Federation of Chambers of Commerce and Manufacturers' Associations notes that the labour legislation as well as government policy, promote equality of opportunity and treatment in employment. MNEs apply fully the principles of ILO Conventions Nos. 100 and 111, together with their corresponding Recommendations. "Equal pay for equal work" is guaranteed by law. Foreigners can only comprise a maximum of ten per cent of the workforce in an enterprise.

The Government of Zambia states that its policies promote equality of oppor-tunity and treatment in employment. Zambia has ratified Conventions Nos. 100 and 111. These and the corresponding Recommendations are duly respected. So far, the practices of MNEs comply fully with the letter and spirit of this policy.

The Government of Zimbabwe states that the Labour Relations Act. No. 16 of 1985 stipulates that, as regards employment-related matters, employers shall not discriminate against employees or prospective employees on the basis of race, tribe, place of origin, political opinion, creed or sex. This provision applies to both MNEs and national enterprises. The Employers' Confederation of Zimbabwe confirms that the Government's policy is in line with the Labour Relations Act, and that it promotes equality of opportunity and treatment in employment. MNEs respect both the law and policy.

Security of employment (Paragraphs 24-28)

(1) What role do multinational enterprises play in promoting and providing stable and secure employment?

(2) In considering changes in operations that may have major employment effects, do multinational enterprises provide reasonable notice to: (a) those employees affected; (b) their organizations; and (c) to the appropriate organs?

(3) What have been the respective roles of government, multinational enterprises and national enterprises in providing income protection for workers whose employment has been terminated?

According to the Government, MNEs in Antigua and Barbuda operate within the parameters of the Labour Code and collective agreements, and the Government monitors the situation with regard to security of employment. Reasonable notice is given to workers and their organizations when changes in the operations of MNEs are to be made. By law, workers whose employment has been terminated are entitled to severance pay and pension benefits. Labour contracts also contain such provisions.

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

The Government of Australia believes that MNEs as well as other employers should endeavour to provide stable and secure employment. In a bid to encourage this, provisions prohibiting arbitrary and unfair dismissal were included in the 1988 Commonwealth Industrial Relations Act, on 30 March 1994. They supplement the state laws in force, which are based on ILO Convention No. 158. When considering changes in operations which may have major effects on employment, MNEs have to respect a number of requirements specified by the Commonwealth Industrial Relations Act, the Queensland Industrial Relations Act 1990, the Victoria Employees Relations Act 1992 as well as industrial awards made by the Australian Industrial Relations Commission. They all require that employers provide information about proposed changes to workers and their unions, notify affected workers about planned changes at the earliest feasible date and discuss the changes with a view to finding ways of mitigating their negative effects. By law, certified agreements (i.e. between an employer and the relevant unions) and enterprise flexibility agreements (i.e. between an employer and employees (directly)), must, unless otherwise agreed, provide for consultations on matters relating to changes in the enterprise or the performance of duties. According to the 1990 Australian Workplace Industrial Relations Survey, MNEs, as opposed to other enterprises, were more likely to inform workers and their organizations on a regular basis, about their marketing strategies, investment plans, corporate plans and financial position. They were, however, a little less likely to supply information about future staffing plans. There is no indication that these findings are not still valid. Dismissed workers in Australia receive social security payments under the non-contributory social security system. In order to continue getting those benefits, it must be shown that they are actively seeking employment, willing to accept reasonable job offers or acquiring approved education and training. Under the Industrial Relations Act of the Commonwealth, all employers must give advance notice of dismissal or pay compensation if this is not done, and the Australian Industrial Relations Commission can issue orders for the payment of severance benefits to those dismissed. Under many federal awards, employers must pay severance benefits to those dismissed for economic, structural or technological reasons. Government has developed adjustment packages for affected workers. They include vocational and preparatory training, wage subsidies for new employers providing jobs to those who have been made redundant and assistance for relocating to regions with better job opportunities. Three such packages for workers in the following industries were in operation between 1994 and 1995: textiles, clothing and footwear; passenger motor vehicles, and railways. Another, covering workers in industrial activities related to forestry, was announced in December 1995.

The Government of the Bahamas notes that MNEs set up business with a view to obtaining a fair share of the market. They provide retraining and exchange programmes to boost workers' productivity and the competitiveness of the enterprise. In cases where changes in operations were anticipated, reasonable notice was given to the workers, their organizations and the appropriate organs. There is evidence that MNEs seek to make acceptable severance payments to those who have been made redundant, and the Government, through the Department of Labour, ensures that a just settlement is reached. In some cases workers are redeployed.

The Government of Bangladesh reports that MNEs must comply with the national laws and regulations with regard to employment and conditions of service. Protection of the income of those jobseekers who lost their jobs as a result of structural change, is guaranteed by law. Violation of those legal provisions is a punishable offence. Labour laws with regard to termination of employment and social security payments apply to both national and multinational enterprises. The Bangladesh Employers' Association shares the Government's views.

The Government of Barbados points out that the ability of MNEs to contribute to stability and security of employment depends on market demand for their products and services. Experience has shown that the efforts made by MNEs to maintain or expand their operations, have a positive impact on employment. As regards changes in operations and their effects on employment, those MNEs in which workers are unionized are guided by the relevant provisions in collective agreements, which define "reasonable notice". The law stipulates the minimum notice required in cases of redundancy, while the Prices and Incomes Protocol encourages consultation. Income protection is provided for persons who are made redundant after at least two years of continuous employment under the Severance Payment Act Cap. 355A. Under the National Insurance Scheme and Social Security Regulations, all employers are required to contribute a percentage of their wage bill to the Unemployment and Severance Fund. Employers are responsible for paying severance benefits. However, the Government, through the National Insurance Scheme, may also make payments to the workers concerned if the enterprise can demonstrate its inability to do so. The Barbados Employers' Confederation states that MNEs play no particular role in providing stable and secure employment. In cases of redundancy all employers, including MNEs, are required by law to give a minimum period of notice, depending on the worker's length of service. Income protection is provided for under the Severance Payment Act and unemployment benefits are paid to all workers whose employment has been terminated, regardless of the ownership of the enterprises in which they worked. The Barbados Workers' Union states that MNEs do not play a special role in providing stable and secure employment. They do not give reasonable notice when considering changes in operations. The national social security legislation provides for the payment of severance and unemployment benefits to workers whose employment has been terminated. Both foreign and local employers contribute 1 per cent of the employee's insurable earnings to the Severance Fund and 0.5 per cent of that amount towards the unemployment benefit fund. Workers also contribute 0.5 per cent of their insurable earnings towards the latter. The Government has agreed to meet with the other social partners to discuss the inclusion of a clause in the Prices and Incomes Protocol in order to provide security of employment during the period that the Protocol is in force.

The Government of Belgium states that its replies to previous surveys are still applicable. It emphasizes that all enterprises must comply with the rules relating to termination of labour contracts. These rules are governed by the 1978 Act on labour contracts. Attention is drawn to a particular problem of non-compliance by MNEs with Belgian law in cases of the transfer of an enterprise. The non-observance relates to collective dismissals, plant closure, as well as information and consultation with workers regarding employment or the maintenance of rights. The most recent case concerned the sudden shutdown of a plant (name given) in order to transfer the activities elsewhere under subcontracting arrangements. The possibility of negotiating a social plan or a restructuring arrangement after the decision has been taken, is even more difficult than the imposition of sanctions because of the multinational character of the group. Such plans have been the product of very difficult negotiations and public opinion has been marked by MNEs' decisions to restructure for the sole purpose of maximizing profits. The decisions taken by two enterprises -- one in the cosmetics industry and the other in the tobacco industry (names given) -- are examples of this. The National Labour Council notes that increases in the restructuring of enterprises and economic concentrations at the international level add to feelings of insecurity in employment. Furthermore, information and consultation procedures are not always respected in cases of closure or restructuring of MNEs in Belgium.

The Government states that MNEs in Brazil have created, and continue to create, considerable opportunities for high-quality direct and indirect jobs. They are at the forefront of the economic restructuring process. However, there are signs that technological innovation and the application of new management methods by MNEs in certain fields have resulted in the decline of direct employment and a rise in precarious forms of employment. In the absence of detailed studies on these developments it is not possible to assess their scope. It is not known with certainty whether MNEs inform those concerned about changes that are likely to affect employment. Practices vary across enterprises. Problems in this regard tend to get considerable publicity and eventually become subjects of discussion and negotiation in different bilateral and tripartite fora. The Government, through Decrees Nos. 2.284/86 and 92.608/86, has instituted an Unemployment Insurance Programme (Programa Seguro-Desempleo) which operates within the framework of the social security system. In 1994, some 4 million unemployed persons got temporary financial assistance under this Programme. The Single Central Organization of Workers notes that Convention No. 158 is not yet being applied in Brazil. There is no prior notice of dismissals and no possibility of holding discussions with a view to dissuading the enterprises from taking that course of action. There have been complaints and strikes by workers in certain enterprises. Nothing has been done with regard to income protection for workers who have been made redundant.

According to the Government of Cambodia, MNEs promote stable and secure employment by recruiting and training highly qualified persons and paying them reasonable wages. MNEs give prior notice to employees who are to be dismissed, in accordance with the provisions of the Labour Code. While regulations do not yet cover income protection for workers whose employment has been terminated, the enterprise concerned gives them compensation according to its means.

According to the Government of Canada the information provided in response to questions 13-20 also applies to this section. Its reports submitted to the ILO's Committee of Experts with respect to Conventions Nos. 88, 122 and 158 also contain information of relevance. Attached to its report is a copy of a text entitled "Termination of employment" which gives details of legal provisions in this regard. The Government of the Province of Quebec draws attention to its observations relating to paragraphs 13-20. It adds that MNEs can make use of government programmes under which committees for assisting enterprises to adapt to change are set up. Twelve per cent of MNEs which have unions envisage work sharing when jobs are threatened. In enterprises as a whole, 6.8 per cent consider that option. By law, employers must give the Ministry of Employment between two to four months' notice of collective dismissals, depending on the number of workers affected. In the case of individual dismissal, the law requires that the individual be given between one and eight weeks' notice, depending on the length of unbroken service. When it comes to collective dismissals, no MNE gives prior notice that exceeds the legal requirement. However, for individual dismissal, 19 per cent of them do give more advance notice than required by law. In addition to the statutory unemployment benefits, 56 per cent of collective agreements in MNEs as opposed to 26.7 per cent of those in other companies provide for termination benefits. Fourteen per cent of MNEs offer supplementary unemployment insurance, whereas only 5.7 per cent of other enterprises do.

The Government of Chad notes that MNEs do not play any special role in promoting and providing stable employment. Some MNEs give reasonable notice to employees and their organizations when considering changes in operations. However, only the labour inspectorate is sometimes consulted in this regard. In the event of termination of employment, both MNEs and local enterprises observe the laws governing the rights of workers.

The Government of Chile states that sections 159-178 (section V) of the Labour Code set out the justified causes for terminating employment and specify the compensation to be paid according to the number of years of service. Workers with trade union privileges can only be dismissed with prior authorization of the competent court. Workers made redundant are entitled to an allowance paid from a contributory fund. A Bill is being drafted to establish an income protection system for such workers. There already are retraining programmes, and both national and foreign enterprises participate in the planning and implementation of these activities. The openness of the domestic economy makes it susceptible to fluctuations in the global economy, which in some cases lead to the loss of jobs.

The Government of Colombia states that MNEs have created stable employment. According to Act 50 of 1990, all enterprises taking measures that affect employment (e.g. closure and suspension of activities) must seek the authorization of the Ministry of Labour and notify their workers. Two strategies have been put into place by the Government: the Comprehensive Labour Adjustment Service (SALI) and the Public Sector Labour Adjustment Service (SAL SP). The SALI is designed to support private enterprises which must restructure. It reduces the social cost of restructuring, prepares displaced workers for new job opportunities through training and retraining and/or encourages labour-management negotiation of alternatives to the closing of factories. The SAL SP was set up by Decree 2151 of 30 December 1992 to assist civil servants affected by administrative reforms, support workers in their efforts to enter other sectors of the labour market and to offer training which would enhance the skills of those wishing to set up their own business. According to the National Association of Manufacturers, the labour legislation prohibits the sudden closure of enterprises and this is enforced. Enterprises in Colombia must get the authorization of the Ministry of Labour and Social Security before ceasing operations, either partially or totally and for any period whatsoever. They must inform workers of their intention in writing except in cases of force majeure and their actions must have no adverse effect on benefits. Workers are entitled to one month's salary for each year of service, or proportionate to the part thereof. By law, enterprises which consider collective lay-offs to be necessary must seek prior authorization from the Ministry of Labour and inform workers in writing. The General Confederation of Democratic Workers is of the view that MNEs in Colombia do not play a role in promoting stable and secure employment. They provide employment according to the normal requirements of the enterprise. MNEs give reasonable notice concerning changes in operations, not after holding consultations with workers, but as a unilateral decision. MNEs and local enterprises have the same approach to dealing with workers' incomes: they try by all means to pay the least possible, without considering the situation of those concerned.

MNEs have played a significant role in creating jobs, especially in the agricultural sector, reports the Government of Costa Rica. During the period under review, MNEs expanded their activities and there was increased demand for labour in the banana industry. There were no job cuts.

According to the Government of the Czech Republic, job security in MNEs is very high due to the economic strength of these companies. However, MNEs tend to prefer and implement more flexible and less traditional conditions of employment, in the forms of fixed-term and temporary job contracts. Under section 20 of the 1991 Employment Act, all employers must communicate to the competent authorities, operational changes that may have employment effects. MNEs have complied with section 60a of the Labour Code which provides for income protection, and in certain cases they have offered dismissal compensation that exceeds the statutory requirements. The Czech and Moravian Chamber of Trade Unions notes that MNEs respect the legal requirements. However, labour legislation is being "weakened", and the protection of workers is being undermined. MNEs generally give advance notice of changes that may have an adverse impact on employees, and they seek acceptable solutions to the problems, in accordance with the collective agreements. They cooperate with labour unions and the Government in this regard, and the separation payments made to affected employees generally exceed the legal requirement.

The Dominica Employers' Federation notes that it is difficult to identify the role played by MNEs with respect to security of employment, since many have been operating in the country for less than ten years. While MNEs generally provide reasonable notice when considering changes in operations that may have major employment effects, it is not uncommon for a multinational enterprise especially from a given country (named), to discontinue operations without informing any of the interested parties of the reasons for doing so. Income protection is provided for in the national legislation.

The Government of Ecuador states that it has a particular interest in carrying out studies and assessments of developments in the labour market. To this end, it works closely with the National Employment Institute (Instituto Nacional de Empleo). The country has a social policy designed to protect workers and guarantee stability of employment. It is very difficult to dismiss workers arbitrarily without having to pay heavy compensation. Workers who have been made redundant and are experiencing difficulties in finding a new job receive benefits, and collective agreements generally provide for the payment of adequate compensation to those who have lost their jobs. The Government attaches to its reply a copy of a collective agreement to which a large European MNE in the food and drink industry (name given) is party, as an example of the scope of the provisions of such agreements.

According to information given by the Federation of Egyptian Industries, certain enterprises in the pharmaceutical and metal trades (named) aim at ensuring stable employment through different measures, which include further training and attractive remuneration packages and benefits for staff. Some enterprises in the pharmaceutical industry and metal trades (named) give reasonable prior notice to all concerned when considering changes with major employment effects, whereas others (named) only provide such information to the employees affected.

The Government of Estonia indicates that MNEs have no special role in providing stable and secure employment and their influence with respect to employment policy is small. MNEs are interested only in developing their own operations and therefore their primary concerns relate to their workers. They have never sought to cooperate with workers' organizations. As regards the termination of employment, workers in MNEs have the same income protection as other workers. There are no major conflicts in this regard.

According to the Government of Ethiopia, the role played by MNEs in promoting and providing stable and secure employment basically depends on their performance and productivity. In the event of operational changes that may have major employment effects, the law requires that employers give reasonable notice to those employees who will be affected. Labour Proclamation No. 45/1993 obliges employers to pay severance to workers whose employment has been terminated. The competent authorities follow up the implementation of these requirements.

The Government of Finland, the Confederation of Finnish Industry and Employers and the Employers' Confederation of Service Industries state that their reply to the fifth survey is still applicable. 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) note that reliable data on the employment effects of Finnish investment both at home and abroad are lacking. In their view, foreign enterprises entering Finland generally promote stable and secure employment. The same cannot be said of Finnish enterprises operating abroad. Research has demonstrated that while investment by Finnish enterprises in the Baltic States or the Russian Federation is not responsible for a net decrease in employment, it has resulted in job displacement. Unskilled and low-paid jobs in the textile and clothing industry have been lost, while new employment opportunities have been created in other industries. Those who have lost their jobs have not been able to move into the new ones. There have been cases in which workers learned of the enterprise's intention to invest overseas from the newspapers but were neither informed by management nor consulted on the employment effects.

The National Council of French Employers notes that when lay-offs are being considered, employers provide workers with information and hold extensive consultations with them. Industry-specific agreements generally contain provisions on advance notice in the event of changes in activities, likely to have an impact on employment.

The Government of Gabon indicates that on the whole, MNEs offer good working conditions -- e.g., high wages, vocational training as well as refresher training. With respect to decisions having a major impact on employment, MNEs are subject to section 56 of the Labour Code which stipulates that prior authorization is required from the labour inspectorate in cases of redundancies. Section 51 of the Labour Code also sets out the procedure to be used in cases of dismissal for personal reasons. The new provisions in the Labour Code (sections 70-74) constitute an improvement with regard to income protection upon termination of employment. In cases of dismissals, all enterprises, whether national or multinational, pay outstanding salaries and dismissal compensation. The Gabonese Confederation of Free Trade Unions is of the view that MNEs neither contribute to the promotion of employment nor provide reasonable notice when considering decisions likely to have a major impact on employment. Furthermore, there is no income protection for workers.

The Government of Greece indicates that within the framework of its policy for employment creation and income protection for workers who have lost their jobs, there is an entity responsible for carrying out specific programmes to provide subsidies to employers for the following: creation of new jobs; promotion of new professional positions; preservation of jobs in the hotel sector and recruitment of students from Technological Educational Institutes (Etablissements Technologiques d'enseignement). Under Act 1545 of 1985, workers who have lost their jobs and who have unemployment insurance coverage are entitled to unemployment benefits if they have worked for 125 days during the 14 months preceding termination of employment.

According to the Government, MNEs in Grenada provide career-long employment. The retirement age is 60 years. Employees and their organizations are given at least one month's notice in the event of workforce reductions, but information is not provided to the appropriate government authorities.

The Government of Hungary notes that legislation concerning the obligations of foreign owners upon the acquisition of SOEs has been enacted. The law stipulates that the worker/employer relationship is not automatically terminated by the transfer of ownership. This has contributed to job security, particularly for workers in such enterprises. While MNEs normally offer labour contracts for undetermined periods, some have offered their employees fixed-term contracts. While this practice considerably erodes job security it has not led to major labour disputes because of the attractive remuneration associated with this type of contract. MNEs have contributed to stability of employment through investment and training. By law, workers, workers' organizations and employment agencies, must be notified of impending significant staff cuts and MNEs generally comply with these requirements. The State has primary responsibility for providing support to workers whose employment has been terminated. Employers must give "appropriate" advanced notice to workers who are to be laid off and make severance payments commensurate with the length of service. In some cases, MNEs have provided dismissal compensation exceeding the legal requirements, contributed to retraining, granted early retirement instead of laying off workers, and helped some people to start their own business. The National Confederation of Hungarian Trade Unions, the National Federation of Workers' Councils and the National Federation of Autonomous Trade Unions believe that the interests of workers are better served by collective agreements and that individual and/or fixed-term contracts of employment are only accepted by workers "for fear of losing their jobs".

The Government of India states that MNEs generally follow the laws of the country with regard to conditions of service, security of employment, change in working conditions, compensation procedure for retrenchments, etc. There is no specific information on whether or not MNEs provide adequate notice to staff whose employment may be affected due to changes in operations. However, MNEs follow the provisions of section 9A of the Industrial Disputes Act 1947, which requires employers to give notice to the workers before effecting any change. At present it is not possible for the Government to provide income protection for workers whose employment has been terminated. However, workers so affected receive compensation.

According to the Government, MNEs in Ireland have played their part in promoting stable and secure employment. When considering changes in operations that may have major effects on employment, MNEs give reasonable notice to the workers concerned, their organizations and the appropriate state authorities. There is an enlarged Social Insurance Fund which was formed in 1990 by combining the Redundancy and Employers' Insolvency Fund with the Occupational Injuries Fund and the Social Insurance Fund. An employer who makes a lump-sum payment under the Social Insurance Fund is entitled to a rebate -- i.e., 60 per cent of the lump-sum if the minimum period of two weeks' dismissal notice is given. The amount of the rebate may be reduced at the discretion of the Minister of Labour if the employer fails to comply with any provision concerning redundancy notice (information extracted from Guide to the Redundancy Payments Scheme, 1992, annexed to report). Workers are given income protection under a government scheme to which employers and workers contribute.

The Government of Italy reports that all enterprises abide by the law, particularly the Workers' Statute, and the collective agreements in force, when it comes to the protection of workers in cases of the restructuring of enterprises and also with respect to income protection for workers whose employment has been terminated. The General Confederation of Industry (Italy) concurs with the Government.

All enterprises in Japan, including MNEs, must report significant fluctuations in the size of the workforce to the relevant authorities, states the Government. They must also employ a certain percentage (unspecified) of persons with physical disabilities. Contributions to unemployment insurance are obligatory, and there is income protection for workers who have been made redundant.

The Government points out that given the small number of MNEs operating in Jordan, it is difficult to evaluate their role in providing and promoting stable and secure employment at this time. There have been no cases of changes in the operation of any enterprise that have had significant employment effects. However, in such circumstances, the law requires that employers notify the affected workers and the Ministry of Labour. If a worker does not get notice prior to the termination of employment, compensation in lieu thereof, must be paid. If a worker is temporarily suspended because of reasons "beyond the employer's control", then the latter is required to pay a percentage of the worker's wages. In the event of arbitrary termination of employment, the worker could seek redress from the court. Employers must pay an end-of-service allowance if the worker does not have social security coverage. There are proposals to strengthen these provisions in the new labour law which is being drafted. The Amman Chamber of Industry states that MNEs in Jordan help to provide job security and they contribute to the Social Security Fund. Employees whose services have been terminated receive social security benefits.

The Government of the Republic of Korea notes that MNEs contribute to job creation by hiring locals. Under the Labour-Management Council Law, councils, composed of workers' and employers' representatives, are set up in enterprises with at least 50 workers. Management must inform its employees of important decisions through these councils. The 1995 Employment Insurance Act provides for unemployment benefits. It also facilitates re-employment by providing other allowances -- e.g. a job competence development allowance, "wide-area" job-seeking expenses and relocation expenses. Income protection for workers whose employment has been terminated is provided for under the Labour Standards Law which must be respected by MNEs. The Korea Employers' Federation notes that MNEs play a significant role in promoting stable and secure employment, especially for highly skilled workers. They give reasonable notice to workers whose employment is affected by changes in operations. Income protection is provided under the mandatory national pension scheme and there is unemployment insurance. The Labour Standards Law enables all workers to receive, upon retirement or termination, a lump-sum payment of not less than 30 days' wages for each consecutive year of service.

According to the Government of Kuwait, workers in the public and private sectors are guaranteed stable and secure employment in accordance with national labour laws and practice. Under the laws in force, foreigners enjoy income protection upon termination of employment. They are given awards as well as other payments from savings funds. Nationals receive social security benefits and payments under a special savings scheme.

The Federation of Luxembourg Manufacturers reports that due to their large number MNEs play a considerable role in providing stable and secure employment. Arbitrary dismissals are avoided, and considerable efforts are made to enable those concerned to obtain other jobs or to take early retirement. The Confederation of Independent Trade Unions (OGB.L) states that MNEs play a very important role in the economy of a small country, such as Luxembourg. They, like other enterprises, generally comply with the legislation on employment, collective dismissals and information and consultation with workers. The OGB.L stresses that subsidiaries of MNEs often try to claim that their status and authority to act independently vary depending on the situation. They state that they act autonomously when dealing with labour matters, but not when it comes to financial and fiscal issues, because of the characteristics of the MNE and their relationship with other enterprises in the group. As a result, trade unions face practical problems in the implementation of industrial relations legislation with respect to information, consultation and codetermination, workers' representation and the conclusion of collective agreements. The OGB.L argues that there is a growing need to revise the relevant laws so that MNEs' practices regarding their legal status and authority would not compromise the application of these laws.

The Government of Malaysia reports that employers must notify workers of the employment effects of changes in the operations of a company. This is required by existing legislation, collective agreements or the Code of Conduct for Industrial Harmony. The 1955 Employment Act provides for the payment of termination benefits. Any employer, including MNEs, must pay such benefits to employees whose services have been terminated. In this regard, MNEs often include in collective agreements terms and conditions of income protection that are more favourable than those stipulated in the Act. The Malaysian Trades Union Congress states that MNEs do not provide stable and secure employment. In the event of any changes affecting employment, they "very seldom" give adequate notice to the workers concerned and "very rarely" are the workers informed of such changes. Under the legislation that deals with Termination and Lay-off Benefits, income protection for workers whose employment has been terminated is based on length of service (details of rates of benefits provided).

The General Confederation of Employers of Mauritania reports that Recommendation No. 119 is not taken into account. The few MNEs operating in Mauritania play no role in promoting and providing stable and secure employment. When considering changes with important effects on employment, MNEs are required by law to give reasonable prior notice to the workers concerned, trade unions and labour administration (sections 15 and 43 of Title V, sections 20 and 27 of Title I of the Labour Code). In accordance with the General Collective Agreement, workers whose employment has been terminated as a result of cutbacks are given priority over other jobseekers to work in their former enterprise. The Free Confederation of Workers of Mauritania (CLTM) is of the view that MNEs play no role in promoting job security as they resort to subcontracting arrangements under which workers are hired either on a temporary basis or with renewable labour contracts. In cases of changes with major employment implications, MNEs sometimes provide reasonable notice, which, in the absence of national standards, is not based on national law, nor on international standards. The CLTM further draws attention to the problem of unionized workers and their representatives being subject to pressures. These workers are deprived of rights and their trade unions are often not accepted. Labour inspectors often turn a blind eye to these problems. The question of income protection for workers whose employment has been terminated is not accorded importance.

The Government of Mauritius reports that since the setting up of the Mauritius Export Processing Zone, MNEs have played a crucial role in employment creation in the industrial sector. A multinational enterprise employing no less than ten workers and not operating in the EPZ sector, is required under the provisions of the Labour Act to notify and explain to the Minister its intentions, if there is to be a reduction in the number of its employees either temporarily or permanently. According to the Labour Act, any worker whose employment has been terminated is entitled, except in cases of misconduct, to severance allowance. Furthermore the protection of workers, in the case of termination of employment following the insolvency of an enterprise (whether multinational or national), is guaranteed by the Code Napoléon which gives workers' claims the same consideration as that accorded to investment loans by banks and other authorized institutions.

Security of employment in MNEs depends on the economic conjuncture, states the Government of Mexico. It cannot be said that these enterprises guaranteed permanent and stable jobs between 1992 and 1995. None the less, section 5(V) of the Regulation relating to the Act to Promote Mexican Investment and Regulate Foreign Investment calls on enterprises to provide, inter alia, permanent jobs. The Federal Labour Act sets out the procedure to be followed in the event of collective disputes, including those arising from changes in staffing levels or working conditions. By law, workers who have been dismissed are entitled to compensation. In cases of temporary staff reductions, the Federal Conciliation and Arbitration Board (JFCA) determines the compensation to be paid to workers and, if conditions do not change, it holds consultations every six months with the trade union to review the situation. If the situation does change, workers must be reintegrated under the previous conditions, within 30 days. The authorization of the JFCA is required in the case of permanent staff cuts, closure of an enterprise or lay-offs as a result of the introduction of new machinery or production processes. If the enterprise resumes operations or a new company is set up, the employer must recruit those persons who had been laid off. Protection against arbitrary dismissal is guaranteed by law and those who are victims of such dismissal can submit their complaints to the Conciliation and Arbitration Boards, which are tripartite in structure. For the most part, labour disputes in Mexico are settled by means of conciliation. According to the Mexican Confederation of Chambers of Industry, recent external economic developments have had adverse effects on employment. The Government has collaborated with the most representative workers' and employers' organizations in an effort to attenuate these effects. Tripartite consultations were also held at the national level, as evidenced by the conclusion of the Agreement for Economic Recovery. Some MNEs, faced with economic difficulties as a result of developments in the world economy, have attempted to avoid redundancies by taking the following measures: work stoppages for technical reasons; advancement of vacation periods; or short-time working (in terms of hours or days). The Confederation of Mexican Workers agrees with the Government.

The report submitted for the last survey is still applicable, states the Government of the Netherlands. The Federation of Netherlands Industry and Employers agrees with the Government.

The reply of the Government of New Zealand to the last survey is still valid. While the law does not prescribe any minimum advance notice to be given in the event of changes in operations which may affect employment, this may be provided for in labour contracts. Over the years, the courts have made it clear that if no advance notice period is agreed to, then "reasonable notice" must be given. The company's contractual requirements and the circumstances of each case would determine to whom the notice must be given. Information on the Government's role as regards the provision of income support for persons who have been made redundant, can be found in New Zealand's report to the ILO on the application of Convention No. 158 for the period ending 30 June 1994. Separation payments are subject to negotiation between employers and workers, or their representatives. This applies to both local and multinational enterprises, which are also obliged to give "fair and reasonable treatment" to all employees, including those who have been made redundant. Except in "very exceptional circumstances" the provisions of a contract concerning compensation will apply. However, the Government notes that during the period under review, there was a case in which the Court of Appeal held that an employer may be required to pay compensation even where there are no contractual agreements to do so. In such cases, the courts will consider factors such as the reasons for the redundancy, length of service, period of notice provided and the means of the employer to pay. The New Zealand Employers' Federation supports the Government's statement.

According to the Government, MNEs in Nicaragua play a positive role in the country's economic development by creating permanent jobs and providing training and opportunities for the advancement of nationals. They inform the competent authorities of changes which may result in unemployment. Where this is the case, they notify the workers after obtaining approval from the authorities concerned. They pay benefits and severance pay, depending on the years of service of the employees concerned. The Government ensures that all statutory benefits are paid to workers who have been made redundant.

In the opinion of the Government of Nigeria, MNEs play a very important role in promoting and providing stable and secure employment through comprehensive remuneration policies and employee welfare programmes, manpower training and development, and good industrial relations. In the event of operational changes, such as restructuring and downsizing, which can have major effects on employment, MNEs, in line with national policies, are required to hold discussions with the union. Management must therefore give reasonable notice of its intention to workers and their organizations which may be involved either in negotiating redundancy benefits or in ensuring that sickness benefits are paid. The legal requirements governing income protection are therefore respected. The Nigeria Employers' Consultative Association shares the Government's point of view. According to the Nigeria Labour Congress, MNEs' practices with respect to security of employment conform with the statutory provisions. In carrying out changes that may have major employment effects, reasonable notice is given to the employees concerned and, occasionally, also to the central labour organization. The provision of income protection to workers who have lost their jobs is in line with ILO Recommendation No. 119. The law provides for workers to be given notice of termination of employment or payment in lieu thereof. MNEs and national enterprises often respect these requirements.

The Government of Pakistan states that the national employment policy clearly requires that workers be provided with stable employment and employment protection. Efforts are made to ensure that the terms and conditions of employment and benefits are regulated. "Free" and "cordial" collective bargain-ing takes place according to the labour laws in force. The 1968 West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance governs the closure of enterprises. Cases of violations in this regard may be taken to the Labour Courts. Arbitrary dismissal is prohibited and in the event that it does take place, there are different procedures through which workers may seek redress. The Employers' Federation of Pakistan notes that MNEs' activities are regulated by the same laws as national enterprises. The Government of Pakistan is planning to amend its Labour Policy to provide better protection for contract and part-time workers. Under the existing legislation, these workers are entitled to social security benefits and compensation in case of work-related accidents, provided that the contracting enterprise operates within the framework of the relevant laws in force. MNEs must respect the laws governing termination of employment and workers can submit grievances if these procedures are not respected. Each year, there are many cases of workers being reinstated with full or partial pay and benefits. Income protection, in cases of termination of employment, injury or disability, is provided for, under the social security scheme.

According to the Government of Poland, foreign investors in privatized SOEs play a role in providing stable and secure employment by concluding agreements with workers' organizations, guaranteeing that existing employment levels will be maintained for between one and a half years and two years after the change of ownership. According to the Independent Self-Governing Trade Union "Solidarno" (Poland), policies and practices relating to job security are favourable in large MNEs, which tend to attach great importance to their reputation. Income protection for those whose employment has been terminated is provided for under the Employment and Unemployment Act of 1991.

MNEs, like other enterprises in Portugal, must respect the standards governing dismissals, and unjustified dismissals are prohibited, reports the Government. Workers may be dismissed for economic or technological reasons. The individual concerned and the workers' representative are given prior notice of the reasons for dismissal and can make known their views on the matter. The final decision must be communicated to the worker with at least 60 days' prior notice and there is the right to compensation amounting to at least one month's basic pay for each year of service, with at least three months' remuneration. If the dismissal is unjustified or the correct procedures were not followed, the decision may be declared null and there is the possibility of being reintegrated into the enterprise. Social insurance is financed by workers' and employers' contributions, and workers who have been made redundant are entitled to unemployment benefits. Those over 55 years can agree with the employer to apply the previous system, under which the employment contract is not terminated and the enterprise continues to pay a stipend that is not less than 25 per cent of, but not more than, the last remuneration. The General Union of Workers is of the view that the stability of jobs created by MNEs depends on the medium-term and long-term interests and strategies of enterprises. By law, advance notice must be given in the event of changes with major employment effects. Trade unions in Portugal are not usually notified unless the leaders themselves are involved. Dismissed workers receive compensation depending on age, last wages and length of service.

The Government of Romania states that while the role of MNEs with regard to promoting and providing job security is still quite modest, it is not negligible. Furthermore, as an incentive for MNEs to create jobs, the Foreign Investment Act provides tax rebates for investors creating a minimum of 50 jobs either through new investment or by developing existing investment. When considering changes which may have major effects on employment, MNEs may provide reasonable prior notice to workers but not to their organizations. Under the Act concerning the social protection of unemployed persons, benefits are given to those who are registered, for a period of nine months. Thereafter, additional income support allowance may be provided for a maximum of 27 months. The 1995 national Collective Agreement obliges employers to provide compensation equivalent to 50 per cent of the average salary to those individuals who have been dismissed, when this dismissal is not for reasons attributable to the employee concerned. All other outstanding benefits must also be paid. Collective agreements concluded at the enterprise or sectoral level have similar provisions which must be at least equal to those contained in the national Collective Agreement. Income-related matters in MNEs are determined by agreement.

According to the St. Vincent Employers' Federation MNEs help to promote stable and secure employment by organizing internal seminars, workshops and apprenticeship programmes for the workers. In a few cases scholarships are awarded for study at secondary and tertiary institutions both within and outside the region. There are now provisional arrangements for MNEs to give prior notice of changes in operations that may have major effects on employment. However, up to three years ago, certain enterprises left without arranging for workers to receive holiday and severance payments. There now exist proper arrangements to protect workers against "any form of exploitation".

The Singapore National Employers' Federation points out that the restructuring of the economy with an emphasis on higher value-added activities has led to a decline in the number of redundancies -- 8,800 workers in 1995 compared to 9,444 in 1994. Most of these workers were in MNEs in the manufacturing sector. Through the granting of separation benefits and other forms of assistance such as outplacement services, these enterprises greatly helped the workers concerned. The low unemployment rate and strong employment creation has enabled these displaced workers to find new jobs in less than two months.

According to the Government, the activities of MNEs in Slovakia have contributed to the implementation of its labour market policy to a considerable degree.

The Government of Spain notes that measures have been taken to reduce the cost of social protection and encourage unemployed persons to seek employment. Act 22/93 of 29 December aims to balance the granting of adequate benefits to unemployed persons with the exigencies of keeping costs in line with budgetary constraints. The Government provides detailed information concerning eligibility for receiving unemployment benefits and the basis for calculating benefits. The General Union of Workers (UGT) reports that MNEs in Spain play a key role in creating employment in many sectors of the economy. Large enterprises generally offer more stable employment than SMEs and the public administration. The high incidence of temporary job contracts (35 per cent of the economically active population) has become possible because of the lack of vigilance of the labour inspection services and the lack of sanctions against such practices by the labour courts. The Workers' Statute requires that employers inform and consult with workers' representatives with respect to measures which will have repercussions on employment. The Freedom of Association Act also provides for such information and consultation within enterprises. As regards changes in enterprises, MNEs generally comply with the requirements for giving reasonable advance notice to workers and they try to mitigate the effects of such changes on the workforce by offering possibilities for early retirement and other incentives for premature departures. Unions are generally in a weak bargaining position, particularly when enterprises are to be restructured. In such cases the employers generally have the full support of the public authorities, with which prior consultations are usually held. Workers of between 54 and 55 years who accept early retirement receive unemployment benefits from the State and a complementary sum agreed between management and the workers' representatives. This sum is paid by the enterprise up until the normal retirement age. The benefits paid by Government, together with the sum paid by the employer, are supposed to amount to a sum close to the last salary. The UGT states that workers in this situation face serious disadvantages, because under the national social security system the pensions of those who do not make contributions in the last years of their working life or who take early retirement (i.e. before age 65), are considerably reduced.

According to the Government, while some MNEs in Sri Lanka have entered into collective agreements with trade unions, in general, they do not provide stable and secure employment. MNEs do not give reasonable notice to workers or their organizations in the event of changes in operations that may affect employment. Dismissals, with little or no notice, occur especially in the EPZs. Appeals, in such cases, can be brought before the Labour Tribunal. However, sometimes, the foreign owners of MNEs leave the country and their workers are left "high and dry". When Government's efforts to negotiate a settlement between MNEs and the workers concerned are not successful, workers can bring their case before the Labour Tribunal or to the special division of the Department of Labour which deals with the termination of employment.

The Government of Swaziland confirms that MNEs play a significant role in providing stable and secure employment. They take measures to deal with unemployment and the impact of changes in the labour market. They make sure that labour laws are respected in order to protect employment. In considering changes in operations that may have major employment effects, MNEs provide reasonable notice. In the event of collective redundancy, the law requires that written notice be given to the Commissioner of Labour and to the workers and their organizations within specified time-limits. The appropriate organizations are the Swaziland Federation of Trade Unions and the Swaziland Federation of Labour. So far, the Government, MNEs and national enterprises do not provide income protection for workers whose employment has been terminated. However, in the event of unfair termination of employment, the law enables employees to claim compensation from their employers.

The Government of Switzerland reports that job security in MNEs depends on competitiveness and conditions in the international economy. Since the 1990-91 economic crisis, the Swiss economy has become particularly vulnerable to the relocation of MNEs, with the result that an increasing number of jobs are created in other countries with large supplies of skilled workers and lower labour costs. MNEs' practices and attitudes vary considerably as regards changes in operations which may have an important bearing on employment. They must, however, comply with the standards on dismissals. The Central Union of Swiss Employers' Associations refers to its reply under paragraphs 13-20. In cases of collective dismissals all enterprises must give advance notice to the Cantonal Labour Office. Workers whose employment has been terminated receive unemployment benefits which are among the highest in the world. The Federation of Commerce, Transport and Food Industries Workers' Union states that MNEs in Switzerland with which they have concluded collective agreements, provide timely information on any changes in operations which have a bearing on employment.

The Government of the Syrian Arab Republic states that all companies operating in the country comply with the social legislation in force, and that national and multinational enterprises play the same role in promoting stable and secure employment. MNEs give reasonable prior notice to those concerned when considering changes with major employment effects. Special income protection measures for workers whose employment has been terminated are provided for, by Statutory Order No. 49 of 1962 and its subsequent amendments. The statement made by the Chamber of Industry (Syrian Arab Republic) is the same as the Government's.

The Government of Thailand reports that MNEs and national enterprises are regulated by the same laws regarding income protection for workers whose employment has been terminated. National labour inspection authorities ensure that there is compliance with the provisions of this legislation.

The Government of Trinidad and Tobago reports that MNEs are governed by the provisions of the Industrial Relations Act and the 1985 Retrenchment and Severance Benefits Act. These laws are generally respected. Under the Retrenchment and Severance Benefits Act, MNEs must notify the Government within a period of 45 days prior to actual retrenchment, where five or more workers are involved. Individual agreements stipulate that prior notice, or payment in lieu thereof, should be given to employees. Individual contracts stipulate the amount and type of income security to be provided. The Retrenchment and Severance Benefits Act, as well as the Industrial Relations Act, outline the procedures for implementing the provisions of such agreements. The Ministry of Labour and Cooperatives plays a conciliatory role, while the Industrial Court acts as the compulsory arbitrator. The Employers' Consultative Association of Trinidad and Tobago states that MNEs provide stable and secure employment depending on their capacity to do so. In considering changes in operations that may have major employment effects, MNEs provide reasonable notice to the employees affected, their organizations and the relevant authorities. The provision of alternative employment to workers who have been made redundant constitutes the main form of assistance.

The Government reports that there are 2,000 MNEs in Tunisia, half of which have some degree of foreign participation. Those in the services sector account for 45 per cent of the total value of FDI and 44 per cent of total employment in MNEs. They facilitate the transfer of technology and know-how, thereby contributing to the country's economic and social development. MNEs follow the example of national enterprises by having sound HRD planning, offering stable employment and fulfilling their obligations as regards job security and social security coverage. There are special legal provisions governing situations in which enterprises envisage making changes, including restructuring, which may have an impact on employment. The competent authorities must be notified of all such changes. New measures for providing income protection to workers made redundant for technical reasons have been introduced. Workers whose employment has been terminated should continue to receive social benefits for a specified period. According to the Tunisian Confederation of Industry, Trade and Handicrafts, MNEs promote and provide job security. Like local enterprises, they inform the labour inspection services when considering changes in operations due to economic and financial difficulties, or in the case of transfer of activities. The Government of Turkey states that the rights of employees in all enterprises are protected by labour legislation and collective agreements. Dismissals and lay-offs due to commercial and socio-economic circumstances must comply with the legal requirements. The Labour Act provides for advance notification and severance pay, depending on years of service. There are attempts to protect employees from arbitrary dismissals. The Turkish Confederation of Employer Associations (TISK) notes that MNEs play a positive role in providing stable and guaranteed employment. Security of employment depends, to some extent, on the activities and economic viability of these enterprises. Compensation is given to workers whose employment has been terminated, with the minimum being 30 days' wages for each year's service. This system of compensation based on "seniority" also provides for compensation in lieu of notice, and it applies to all MNEs. The TISK believes that this requirement could have a negative effect on the overall capacity of MNEs to provide stable and secure employment. According to the Confederation of Turkish Trade Unions, MNEs do not play a positive role in promoting and providing stable and secure employment because the threat of relocation is always present. MNEs comply with the legislation in force which has not yet been brought into line with Convention No. 158 which Turkey ratified in 1995. No steps have been taken to provide income protection (e.g. unemployment benefits) for workers whose employment has been terminated.

The Government of the United Kingdom reports that the amended Trade Union and Labour Relations (Consolidation) Act 1992, requires all employers to inform and consult workers' representatives "in good time" about proposed collective redundancies, with a view to avoiding dismissals, reducing the numbers to be dismissed and mitigating the consequences of dismissals. Employers must notify the Department of Trade and Industry of collective redundancies (i.e., 20 or more dismissals within a 90-day period). Of particular relevance to MNEs is the fact that employers cannot escape the notification requirements by arguing that the controlling undertaking (regardless of its location) either did not inform them at all about its plans or did not inform them in time. Since 1993, the law imposes heavier sanctions for non-compliance with these requirements. The law protects workers in all enterprises against arbitrary and unfair dismissal. Those made redundant may be entitled to unemployment and other benefits provided by the State and those with at least two years' service with a given employer may be also entitled to benefits from the employer. Surveys have shown that up to two-thirds of all employers, and on the whole, larger enterprises (which include MNEs), are more likely to pay more than the amounts required by law. The Sunday Trading Act, 1994, guarantees shop workers the right not to be dismissed, selected for redundancy or to suffer any other prejudice (e.g. denial of overtime, promotion or training) for refusing to work on Sundays. Under the Deregulation and Contracting Out Act, 1994, employers are required to "act reasonably" in selecting workers for redundancy. Those who believe that such selection was unfair have the right to submit a complaint to an Industrial Tribunal. The Trade Union Reform and Employment Rights Act, 1993, guarantees workers the right not to be dismissed or victimized for taking specified types of action on health and safety grounds and the right not to be dismissed for seeking to assert a statutory employment right. It also enhances rights relating to entitlements to receive written details concerning employment and, also, itemized pay statements. According to the Confederation of British Industry, MNEs take fully into account the legislation concerning dismissals and in cases of unavoidable redundancies many seek to pay compensation above the statutory requirements.

Referring to paragraph 24 of the Tripartite Declaration, the Government of the United States reports that during the period under review two studies on the impact of MNEs on employment and wages were carried out under the sponsorship of the Labor Department: Foreign-owned firms and US wages and Multinational corporations, outsourcing and American wage divergence. The enactment of the Worker Adjustment and Retraining Notification Act in 1988, has led to "widespread cooperation" and voluntary notification by domestic and foreign enterprises (including MNEs) as regards plant closures and mass lay-offs. The Act requires that employers with a workforce of 100 or more persons give affected employees and local government 60 days' advance notice of the closure of a plant or mass lay-off. The Act provides for limited exceptions. Employers who violate the requirements are liable for back pay and related fringe benefits to each affected employee for each day of violation and for certain compensation to local governments. While most local foreign enterprises, including MNEs, comply with the Act, there is evidence that "a significant percentage may be failing to meet their obligations". Under the law, state and local governments have the authority and financial resources to coordinate efforts to provide retraining and readjustment services to the affected workers. However, under US law, domestic enterprises and MNEs generally have no obligation to provide additional information to public authorities concerning changes in operations which could have major employment effects. The extent to which enterprises must provide such information to workers' representatives is also covered. It may also be prescribed by state law (Maine and Wisconsin) or specified in collective agreements. While only a small percentage of collective agreements contain provisions in this regard, about 30 per cent of them provide for severance pay in the event of plant closures. US law does however require enterprises to bargain upon request with workers' representatives concerning the impact that changes in operations may have on wages and other specific terms of employment. The representative must be provided with all relevant information necessary to bargain in good faith. Many enterprises notify employees of changes in operations likely to have a major effect on employment after the decision has been reached. This practice may be either a matter of company policy or determined by collective agreements. At the time that notification is given to employees, enterprises usually publish such information for dissemination to the general public and others, including the public authorities, especially if such decisions would affect the activities of the enterprise considerably. Arbitrary dismissal by enterprises, either national or multinational, is not a major problem in the US due to public and private safeguards. Until the 1960s, US employment law largely left the question of dismissal to the employer's discretion. Today, under federal and state legislation, employers are prohibited from dismissing workers because of union activity or for reasons based on race, colour, sex, national origin, religion, disability or other reasons (e.g. identification of OSH violations). In addition, under common law, most state courts prohibit dismissals that are in violation of public policy. Finally, dismissals are also regulated under collective agreements as well as public and private employment contracts. When private grievance procedures are exhausted, judicial recourse is available. There is income protection for workers whose employment has been terminated, under state unemployment insurance programmes and a variety of other public and private compensation programmes. Many of these are funded by employers. Approximately 47 per cent of American workers are in jobs covered by unemployment insurance. State rules differ as to the eligibility and levels of compensation, but workers whose employment has been terminated and who fulfil the requirements can generally receive about half of their previous wages, up to the maximum benefit amount -- e.g. 26 times their weekly benefit. In some cases federal legislation provides for more generous assistance to special groups, including workers in the railroad and transit industries, and workers adversely affected by imports. Severance pay based on length of service is often provided by employers to workers who have been made redundant. Almost 40 per cent of workers covered by major collective agreements are eligible for severance pay. There are also employer-financed supplementary unemployment benefits which provide for high levels of replacement of lost wages in several major industries.

The Venezuelan Federation of Chambers of Commerce and Manufacturers' Associations states that, except for the last three years during which the economic situation in the country worsened, MNEs have always sought to provide stable and secure employment. They invest in HRD with the aim of upgrading the skills of their staff, and they also develop career plans. In the event of changes in their operations which may have significant effects on employment, they give enough advance notice to the workers concerned and usually reach an agreement with workers' organizations as regards the changes to be made. They discuss the consequences of their actions with the competent authorities, which are also given advance notice of changes. Workers and employers contribute to the unemployment insurance scheme, under which benefits are given to workers who have been made redundant.

According to the Government of Zambia, MNEs recruit on the local market whenever qualified manpower is available. This practice is in line with established procedures and the provisions of collective agreements. Where employees, for one reason or another, are not unionized, termination of employment is carried out according to the statutory provisions. The strict adherence to these regulations by the majority of MNEs operating in the country has gone a long way towards promoting and providing stable and secure employment.

The Government of Zimbabwe states that MNEs play a role in promoting and providing stable and secure employment by creating employment opportunities, and by following the separation procedures laid down in the relevant legislation. In considering changes in operations that may have major employment effects, MNEs are guided by the regulations on retrenchment, contained in Statutory Instrument 404 of 1990, and by the employment codes of conduct concerning lay-offs and dismissals. As regards workers whose employment has been terminated, MNEs are required to comply with section 13 of this Act concerning wages and benefits. The Employers' Confederation of Zimbabwe points out that MNEs promote and provide stable and secure employment by recruiting employees on a permanent basis, contributing to HRD, and by providing social security benefits. In considering changes in operation that may have major employment effects, MNEs give reasonable notice to the affected employees, their organizations and to the appropriate organs. The role of the Government in providing income protection for workers is to set the legal and policy framework, and to participate in the legal procedures for the settlement of disputes relating to the termination of employment.

Training

Paragraphs 29-32

(1) Does training provided by MNEs also meet the needs of the development policies of host countries?

(2) Are there national programmes (including funds) aimed at enhancing/encouraging human resources development?

(3) If so, do national and multinational enterprises support and actively participate in such programmes? What role do they have in the process of implementation?

The Government of Antigua and Barbuda indicates that training provided by MNEs is in line with national development policies and there are government programmes for encouraging HRD, from which enterprises also benefit.

The Government of Argentina states that national training policies are closely linked to employment, HRD programmes and agreements concerning training which have been concluded with enterprises. The country has ratified Convention No. 142. Details of various types of training programmes carried out during the period covered by the survey are contained in a report annexed to the main reply. They include the following: special training programmes for women; retraining of public sector workers in privatized enterprises; retraining workers to use new technologies in ways that improve productivity and the competitiveness of enterprises; and institution-building (i.e. creation of networks of institutions involved in training and vocational guidance). According to the report, 8,808 contracts for providing on-the-job training to young persons up to the age of 24 years were signed between January 1992 and July 1995. Trainees received wages corresponding to the occupational categories in which they were placed, in accordance with the collective agreement covering the particular branch of industrial activity. Over the same period, 9,465 first-time jobseekers of up to 24 years of age, obtained contracts enabling them to put to practical use the training they had already received. Between 1993 and 1995 the Government concluded 76 vocational training agreements with enterprises and employers' organizations. Most of the establishments were of national origin and 20,328 persons benefited from those arrangements.

The Government of Australia notes that training is one of the subjects dealt with during discussions between local and foreign employers and government officials in Queensland. While no analysis of MNEs' training policies exists, MNEs (which generally have medium- and large-scale operations) are seen as being more likely to provide formal training than small enterprises. Training given by MNEs in South Australia and in the Australian Capital Territory (ACT) is generally in line with general development policies and the relevant legislation (e.g., the ACT Vocational Training Act 1989). In the case of South Australia, these enterprises have played an important role in the field of training. There are national and regional institutions and programmes devoted to HRD, e.g., the Australian National Training Authority, the State Department of Training and Further Education (South Australia) and the Australian Vocational Training System which was implemented in 1994. Private sector employers, which include MNEs, are assuming greater responsibility in this domain, while Government (at both the state and national levels) is involved mainly in coordination, strategic planning and providing guidance and funding. On the whole, employers support the Government's initiatives. They collaborated in the development and implementation of the HRD programme known as "Working Nation", which was launched in 1994. Under this programme, employers are given incentives to train young persons and a National Employment and Training Task Force was set up to increase jobs and training opportunities for new labour market entrants and unemployed persons. In New South Wales, there are a number of policies and institutional arrangements for assisting individuals, the community and industry to achieve high-quality results from training initiatives. MNEs do not only take active part in training programmes, they often serve as role models for local enterprises.

The Government of Austria notes that its reply to the last survey is still applicable. It adds that under the Vocational Training Act workers and employers, including those in MNEs, participate in the elaboration and implementation of vocational training policies, through their representative organizations. They take part in the activities of the Land Vocational Training Advisory Councils and the Federal Vocational Training Advisory Council. They have the right to express their views and submit proposals on draft legislation and regulations that deal with training.

The Government of the Bahamas points out that the training provided by MNEs meets the needs of the national development policies. There are national programmes for encouraging human resources development, and an additional B$10 million are being devoted to the improvement of the Technical and Voca-tional Institute. National and multinational enterprises make financial contributions to training programmes and also help in identifying specific skills needed.

The Government of Bangladesh reports that MNEs conduct internal training programmes. At times they nominate participants to attend programmes organized by the Government. Such training enables employees to enhance their knowledge, skills and attitudes to work. MNEs cooperate with the government agencies involved in programmes for skill formation and the development of vocational training. The Bangladesh Employers' Association concurs with the Government.

The Government of Barbados notes that since the type of investment encouraged is usually in keeping with the country's developmental policies, the training provided by MNEs therefore contributes both directly and indirectly to the attainment of national objectives in this regard. There are national programmes aimed at enhancing and encouraging HRD. The National Training Board -- i.e. the Barbados Vocational Educational Training Board, and the Technical Vocational Educational Training (TVET) Council, are established organs that promote national HRD programmes. The emphasis is on apprenticeship programmes, training for persons requiring new skills and the retraining of persons who have been retrenched. The TVET Council is responsible for preparing plans, establishing standards and coordinating technical and vocational education and training activities. The organizations identify, formulate and manage strategies and programmes for supporting the national export-promotion drive and meeting the demands of a changing economy. MNEs usually train their employees both in Barbados and abroad, to ensure that they meet the needs of the particular enterprises. MNEs contribute to, and benefit from, training provided by the national training institutions. Funding for the delivery of training through these organizations comes from a training levy which all employers, including MNEs, must pay. Participation in the apprenticeship programmes is open to all enterprises. Both the Barbados Vocational Training Board and the TVET Council are tripartite bodies. The Barbados Employers' Confederation has no specific details about the training provided by MNEs, but confirms that some training does take place. There are national programmes, such as technical training provided by the Samuel Jackman Prescod Polytechnic and the Technical and Vocational Education and Training. Free tertiary education is available at the Cave Hill campus of the University of the West Indies. Training programmes for youths (aged between 16 and 25 years) also exist. National and multinational enterprises actively support these activities. They are represented on committees, participate in general discussions and support local professional associations. The Barbados Workers' Union indicates that the training provided by MNEs is usually designed to meet the specific requirements of the enterprise. Government has a Training Fund to which employers and workers each contribute 0.5 per cent of the worker's insurable earnings. The National Training Board offers technical and vocational training and the Government has set up a tripartite Technical, Vocational and Educational Council to deal with HRD.

The Government of Belgium states that training forms part of the country's employment policy. Apart from the traditional vocational training activities, specific programmes for disadvantaged (or vulnerable) groups have been developed. Drawn up within the framework of collective agreements, they are financed and managed by the social partners. Since MNEs participate in these programmes under the same conditions as Belgian enterprises, it is not possible to assess their specific role in these programmes.

Compared with other enterprises, MNEs in all sectors make the biggest investment in the training of workers, states the Government of Brazil. While training is geared to meet the needs of the enterprise, MNEs also run basic educational and literacy programmes. These are private initiatives in which the Government does not intervene. All enterprises, including MNEs, contribute to sectoral and general training programmes. By virtue of the relatively large workforce and the size of their wage bill MNEs are the largest contributors to HRD funds. Activities carried out under the "System S", which comprises five different training bodies, are administered by employers' federations and confederations, with workers represented in only one of them. The Government sits on the boards of all. The Workers' Protection Fund (FAT) has a tripartite board on which MNEs are represented. The main aim of FAT is to finance training and retraining programmes for unemployed and vulnerable persons. The Single Central Organization of Workers points out that in Brazil, the demand for highly qualified staff is greater in MNEs than national enterprises and the former generally have their own training programmes. There is no effective participation of workers in the administration and curriculum development activities of publicly funded training institutions.

The Government of Cambodia notes that the training provided by MNEs meets national development needs. While there are national programmes to encourage human resources development, Cambodia needs funds from donors for their implementation. MNEs contribute financially to these programmes, albeit insufficiently.

The Government of Canada states that its vocational training policies are consistent with the Tripartite Declaration. They are directly linked to employment, in keeping with the 1989 Labour Force Development Strategy which builds on the Canadian Jobs Strategy. The Canadian Labour Force Development Board encourages both sides of industry, including in MNEs, to take responsibility for the development and implementation of training programmes and standards. Through the 1992 Sectoral Partnership Initiative, labour and management work together to identify labour market requirements and training needs and to implement appropriate training strategies. The Government of the Province of Quebec notes that there are institutional arrangements for providing assistance in the following areas: counselling, human resources management and measures for protecting and maintaining jobs. There are initiatives (including funding) for promoting employment and reforming employment policy at the sectoral, regional and national levels. MNEs have so far participated in all HRD programmes. The Act for the Development of Manpower Training (22 June 1995) provides for employers to devote 1 per cent of their wage bill to training. Those with a wage bill exceeding Can$1 million have to apply the law with effect from 1996. All contributions relating to training may be used by the Manpower Development Company of Quebec (Société québécoise de développement de la main-d'oeuvre) for granting training subsidies.

The Government reports that Chad has not yet elaborated an employment policy and the training provided by MNEs is geared to meet their own needs. There are no national programmes nor funds for encouraging human resources development.

One of the goals of the Government of Chile is to improve the quality of education both in institutions and in the workplace. The State subsidizes training by giving tax rebates to enterprises that have spent the equivalent of 1 per cent of the annual taxable remuneration. Tax concessions are also granted for apprenticeship contracts. MNEs, which tend to be among large enterprises, benefit from these concessions. It is left up to enterprises to decide on the content of training programmes as long as it meets the requirements of the National Training and Employment Service (Servicio Nacional de Capacitación y Empleo). The reform of the Training and Employment Statute which is under way is intended to involve workers and employers in the joint planning of training programmes, as a means of harmonizing the interests of both parties. Although Chile has not ratified Convention No. 142, Legislative Decree No. 1.446 of 1976 provides fiscal incentives to encourage employers to train workers. During the period under review there has been a steady rise in the number of workers who have been trained -- from 297,231 in 1992 to 434,454 by 1995. While MNEs are known to provide training for workers in all occupational categories, the aforementioned data do not provide a breakdown of training by type of enterprise.

The Government of Colombia states that MNEs support the training of Colombian workers, particularly in those areas where locals are not skilled in using new technologies. There are state-supported training programmes and the Government has restructured the National Training Service (SENA) which is a tripartite institution responsible for providing workers with training in areas for which there is a demand. There is also a school which provides higher-level training for workers in the public sector. The National Association of Manufacturers supports the statement of the Government of Colombia. The General Confederation of Democratic Workers states that MNEs in Colombia provide workers with training on an individual basis, depending on the exigencies of the job. It refers to the role and functions of the National Training Service (SENA) and adds that all enterprises are obliged by law to pay contributions to this institution. This gives them the right to send persons for job-related training.

The Government notes that former employees of MNEs in Costa Rica are a great asset to the local private sector. The training provided by multinationals responds to the country's needs. There are no national programmes and funds for promoting HRD.

The Government reports that the training provided by MNEs in the Czech Republic enhances the career prospects of local workers who acquire new technical, managerial and linguistic skills. Training programmes are generally organized in collaboration with centres approved by the Government. They meet the general standards of training as well as the overall requirements of MNEs. There are state-funded retraining programmes for "unemployed jobseekers" and internal retraining programmes funded by employers. Certain programmes related to structural changes in specific companies may be co-financed by the labour offices and enterprises under specific agreements. Others, targeted to the needs of young people, are organized and run by Labour Offices and sponsored by local enterprises. The Czech and Moravian Chamber of Trade Unions observes that a high level of specialized training is provided by MNEs (names given) which use relatively advanced technologies, and have been operating in the country over a relatively long period. National programmes, such as the Programme of Active Employment Policy, have been made possible with the support of foreign aid. However, problems relating to placements and apprenticeship centres persist. The training of apprentices, previously provided with government support, is now dependent on sponsorship and parents have to bear a significant share of the costs. The union cites the exceptional case of an MNE (name given) which retained a specialist training centre after it acquired a local company.

The Dominica Employers' Federation (DEF) states that training provided by MNEs meets the needs of the country and helps to prepare it to become competitive in the future. There are national programmes and funds devoted to HRD -- i.e. the National Training Board, the Education Trust Fund, the Higher Education Committee and Student Loan Funds. National and multinational enterprises support and actively participate in such programmes, but the levels of support and participation are not known to the DEF.

The Government of Ecuador notes that vocational training and guidance con-stitute major concerns. The Ministry of Labour, which has prime responsibility for policies in this field, applies them through the Ecuadorian Vocational Training Service (Servicio Ecuatoriano de Capacitación Profesional, SECAP). The Govern-ment as well as the private sector are represented in the management of SECAP. The Ministry of Education and Culture includes vocational training in its plans which must be carried out in all intermediate and secondary educational institu-tions. The participation of MNEs in this field can be illustrated by article 55 of the collective agreement concluded by a major MNE in the food and drink indus-try (name given). According to this agreement, the company provides training for workers at all levels and covers the cost of such training. MNEs offer workers opportunities for career advancement and personal development. For example, articles 21 and 22 of the aforementioned collective agreement provide for the setting up of bipartite bodies to deal with the promotion of staff in the company.

According to information supplied by the Federation of Egyptian Industries, the training provided by enterprises in the pharmaceutical and metal trades (named) meets the country's needs. There are national HRD programmes which are supported by certain enterprises. For example, some pharmaceutical companies provide services to different health authorities and scientific associations and are involved in various educational projects. Certain companies in the metal trades participate actively in the planning and implementation of national training policies through employers' organizations and other business associations, and provide donations to social and scientific associations, and to the local authorities responsible for higher training.

The Government of Estonia states that training is well organized in MNEs and this helps to enhance the skills of the workforce. Often, well-qualified specialists prefer working for MNEs because of opportunities to get in-depth, further training which sometimes requires going abroad. The Estonian Confederation of Industry and Employers gives the example of an enterprise (named) which spends about 4.6 per cent of its management expenses per year on training. In the opinion of the Association of Estonian Trade Unions, MNEs play an essential role, particularly in the field of retraining and updating workers' skills. There is no national HRD programme; however, there are some projects and programmes based on the Law on Protection of the Unemployed and the Law on Adult Training. However, the goals of these activities are relatively narrow.

The Government reports that Finland has strengthened activities in the field of training in order to reduce unemployment. In the autumn 1995 agreement on economic, employment and labour market policy it was agreed that 4,000 additional "starter places" (i.e. entry-level positions) per year would be created for young people. The Confederation of Finnish Industry and Employers and the Employers' Confederation of Service Industries state that their reply to the fifth survey is still applicable. 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 a survey by the Chemical Workers' Union demonstrates that foreign-owned enterprises provide more education and training for employees, particularly in areas of direct interest to the enterprises. The subjects covered are: quality control systems, team work, business economics, improving production and productivity, communication skills, and also occupational health and safety and environmental issues.

The National Council of French Employers points out that MNEs have the same obligations as other enterprises when it comes to training, and their initiatives in this field are quite significant. For the most part, and especially in the service sector, they contribute more than the legally required 1.5 per cent of their wage bill to training.

The Government of Gabon states that the training provided by MNEs is in line with the national development policies. In addition to compulsory schooling until the age of 16, there are training institutions such as the National Agency for Training and Further Vocational Training (Agence Nationale de la Formation et du Perfectionnement Professionnel). A training levy, as well as a fund for facilitating initial employment and the return to work, have been introduced in a bid to reduce unemployment. The new Labour Code (sections 81-96) contains provisions concerning apprenticeships. By law, there is a training levy on all enterprises which do not have training units. Enterprises which are exempted from the levy are, none the less, considered to support national training programmes since they hire persons who have been trained under these programmes. In addition, they collaborate closely with those responsible for the training units by providing advice on the content of training programmes. The Gabonese Confederation of Free Trade Unions reports that, contrary to the national training programmes, the training provided by MNEs does not correspond to national employment needs. It draws attention to the noteworthy activities carried out by the National Employment Office since its creation in 1993.

The Government of Grenada confirms that the training provided by MNEs is in line with the country's development policies. There is a national programme to enhance HRD. This, however, is provided and funded by the Government and two donor agencies. Local enterprises and MNEs which belong to national organizations contribute to, support, and participate in programmes which they themselves develop. There is a secretariat which promotes the implementation of those programmes.

The Government of Hungary states that the development of the manufacturing and services is a priority. This requires a pool of highly trained and skilled manpower. In this regard, MNEs are making a significant contribution to HRD. However, training and retraining programmes are generally tailored to meet the needs of adult employees, while less emphasis is placed on addressing the skill requirements of young workers. A number of MNEs have very advanced training programmes that expose workers to the most up-to-date technologies. HRD is promoted through government-sponsored programmes financed from regular budgetary allocations, and the Labour Market Fund -- established to provide vocational training and employment support for the retraining of adults. Enterprises can deduct the cost of professional training provided to young persons from their contribution to that portion of the Fund which is earmarked for employment support programmes. Enterprises mainly from the metal trades sector have participated in these programmes which are also open to MNEs. There is a World Bank-funded national programme for the establishment of regional centres for adult training. These centres are responsible for training both employed and unemployed persons and a number of MNEs have made use of these services for their workers. The National Confederation of Hungarian Trade Unions, the National Federation of Workers' Councils, and the National Federation of Autonomous Trade Unions believe that there is a contradiction between MNEs' policies of training young persons and their employment practices as regards this group. MNEs meet their obligations regarding their contribution to the cost of vocational training, but only to the extent of fulfilling their own labour requirements.

The Government of India states that training provided by MNEs meets the country's development policy needs. There are national programmes and funds that encourage the development of human resources. National enterprises are heavily involved in such programmes. They not only help to shape national policies but are also involved in the direct implementation of the training programmes. MNEs have also been associated with various training programmes, including the Apprenticeship Training Scheme and they generally have in-house training facilities for their personnel.

MNEs provide training that primarily responds to their needs, states the Government of Ireland. However, they do contribute to skill formation by giving local workers the opportunity to work in enterprises using state-of-the-art technologies. They introduce new work organization and management techniques. Notwithstanding the absence of precise information, it is the widely held view that the skills and know-how gained by workers in these enterprises "spill over" through the movement of workers from MNEs to local industry. The State gives grants to help MNEs setting up business and to finance the training of new workers. Thereafter, these enterprises are treated as national companies, which means that they are eligible for financial assistance under the National Training and Employment Authority's (FÁS) Training Support Scheme and other forms of assistance (e.g., under the national apprenticeship scheme). Under the Training Support Scheme (TSS), firms with a workforce of less than 500 obtain grants to help finance training. According to the FÁS, in 1994, 22,480 workers in 1,700 enterprises were trained under the TSS and 11,876 apprentices were registered at the end of that year. Twenty-four new companies were assisted in developing training plans under the New Industry Training Grants. These data include MNEs since no distinction is made according to the ownership of companies. MNEs and local enterprises are represented on the employers' side of the FÁS Board and other Industrial Training Committees that advise the Board. They are regularly consulted on matters relating to the design of training programmes.

The Government states that MNEs in Italy must contribute to initiatives in the field of training and the use of human resources, taking into account as much as possible, the country's development policies. There are training programmes as well as national funds and EU co-financing to enhance HRD, with the aim of responding to market demand for certain skills and qualifications. Through their associations, enterprises play a significant role in supporting regional and national training programmes. State-financed in-plant training, jointly managed with employers' organizations, plays a positive role in retraining workers in industries undergoing conversion. This contribution is widely acknowledged, including in trade union circles. MNEs' training activities are therefore in line with social development policies. MNEs enhance the professional development of workers by contributing to national training funds. The Government believes that the continuous exchange of information on experiences as well as collaboration with regard to resources, should take place between the Government and MNEs. The General Confederation of Industry (Italy) indicates that MNEs provide training that is consonant with national development policies and that there are national HRD programmes, which all enterprises support and participate in.

The Government of Japan states that basic vocational training and guidance programmes are drawn up in accordance with the Human Resources Development Law. When necessary, the Minister of Labour can make recommendations to organizations representing employers in both national and multinational enterprises, as regards the proper implementation of the law. The Japan Federation of Employers' Associations (NIKKEIREN) refers to the Guidelines for Overseas Direct Investment (Kaigai Tshi Kd Shishin), which call on Japanese MNEs to organize in-house training programmes for upgrading workers' skills, and to take into account the need for the transfer of technology to developing countries, when implementing such programmes.

MNEs in Jordan provide training opportunities for staff, reports the Government. However, because of their small numbers and the limited scope of their activities, it is difficult to assess the extent to which the aims of the country's development policies are met. Various training programmes are run by the Vocational Training Centre, the Ministry of Education, the General Administration Institute and the Jordanian Administration Institute, as well as the national universities. MNEs and local companies participate in these programmes either by sending their employees for training, or organizing their own activities in collaboration with these bodies. Overseas training is also offered. The law requires that enterprises allocate one per cent of their annual profits to training and skills development. The Amman Chamber of Industry urges MNEs to provide training opportunities for their staff. There are several training institutions, including the Public Management Institute, the Jordan Management Institute which is run by the private sector, and the university, which sponsor some courses. The extent of MNEs' support for these institutions is not known, but they do contribute to the Banking Studies Institute.

According to the Government of the Republic of Korea, the training provided by MNEs is expected to meet the requirements of the country's vocational training policy. There are two national HRD funds, one set up under the Basic Law for Vocational Training and the other, the Job Competence Development Fund, which operates under the Employment Insurance Act. In accordance with the Basic Law for Vocational Training, enterprises with at least 1,000 full-time workers must conduct in-house vocational training. A vocational training levy is imposed on those that do not comply. The job competence development scheme applies to all enterprises with between 70 and 1,000 workers, and they have to pay an employment insurance fee. However, they are entitled to several govern-ment incentives when they implement these schemes. The Korea Employers' Federation notes that the training provided by MNEs generally meets national policy requirements. Vocational training programmes are funded by the national budget and the vocational training levy (if expenditure on vocational training is less than the obligatory amount, employers are obliged to pay the difference as a levy to the Ministry of Labour). A fund, linked to the employment insurance system is also used to finance national HRD projects. While national enterprises and MNEs participate in these HRD programmes, the vocational training levy is considered to be burdensome. A financial penalty is imposed in cases of non-participation in the programmes.

The Government of Kuwait considers training to be important and has established centres, such as the General Institution for Applied Education and Training. Moreover, under a special scheme instituted by the Government, national and multinational enterprises must set up training centres to train local staff in areas in which they need expertise. There are national HRD programmes. Employers' and workers' organizations have a great interest in training and education and they cooperate with enterprises in this regard. They organize courses for workers in their own educational centres. The Government encourages such activities. Enterprises make financial contributions and also participate in activities for implementing training programmes. Workers' interests are taken into consideration in the process.

According to the Federation of Luxembourg Manufacturers, there are consultations with MNEs when national training and vocational training policy is being finalized. The Confederation of Independent Trade Unions (Luxembourg) acknowledges that whereas many MNEs, mainly in the manufacturing sector, make serious efforts to provide workers with continuing training, they have however almost ceased to provide apprenticeship. This important part of initial vocational training continues to exist almost entirely through the efforts of national SMEs.

According to the Malaysian Trades Union Congress, the training provided by MNEs is aimed primarily at meeting their own needs. The Human Resources Development Fund supports the training and retraining of workers in the manufac-turing and services sectors. Employers must contribute 1 per cent of their payroll to the Fund. MNEs support and actively participate in national HRD programmes.

According to the General Confederation of Employers of Mauritania, MNEs do not provide training and this must be partly because they employ few workers. Within the framework of the national programmes aimed at enhancing human resources development, an apprenticeship tax is imposed on all enterprises. Furthermore, the administration responsible for vocational training supervises several regional training centres and carries out training programmes. Enterprises which solicit the services of a training centre, contribute financially to the training or vocational training of their staff. Their role in the field of training consists of making known their needs which are taken into account when plans are drawn up by the centres. The Free Confederation of Workers of Mauritania states that the training provided by MNEs does not respond to the country's development needs. While there are national programmes, including funds, to enhance human resources development, these are not applied in practice.

According to the Government, the National Human Resource Development strategy of Mauritius aims at ensuring that lack of trained manpower does not constitute a major constraint to further economic development. A Ministry of Manpower Resources and Vocational and Technical Training was set up in October 1991 to coordinate the provision of appropriate manpower to meet the economic and social development needs of Mauritius. Sectoral studies covering the whole economy were undertaken with a view to making concrete proposals for improving manpower training and development. The Industrial and Vocational Training Board (IVTB) set up in 1988, inter alia, regulates, administers and operates training programmes. In order to ensure that the training efforts of the Government are responsive to the needs and have the full support of all concerned, equal numbers of private and public sector representatives comprise the council which administers the IVTB. The IVTB is currently running Vocational and Pre-Vocational Training Centres and operating a Distance Training Programme. A National Apprenticeship Scheme has also been set up to provide both on-the-job and institutional training to youths who have dropped out of the formal education system, while other training centres are run by various ministries and parastatal organizations. Moreover, a number of private training institutions and in-house training centres provide training and IVTB ensures that the quality of such training meets the required norms. In order to promote and boost training, a number of financial incentives are available to trainees, employers and private training institutions. The private sector contributes a training levy of 1 per cent of its wage bill to IVTB and participates in the Task Force on Human Resource Development.

According to the Government of Mexico, human resources development is a matter of great concern and a Project for the Modernization of Labour Markets, partly financed by the World Bank, is being implemented. The aim is to facilitate labour mobility and the adjustment processes, raise productivity, promote transparency and mitigate the social effects of structural change. In order to attain these goals, the Total Quality and Modernization Programme (CIMO), activities for the Strengthening of the National Employment Service (FSNE) and the Training Scholarships Programme for Workers (PROBECAT) are being implemented. Other supporting activities include the dissemination of labour market information, policy evaluation and institution building. CIMO is demand-driven, co-financed by the private sector and reaches workers and enterprises in different parts of the country. It has so far been implemented in a wide range of industries, the main ones being the metal trades, wholesale and retail trades, construction, food processing, hotels and restaurants, educational services, and the textile, chemical and wood industries. Micro-enterprises (15 workers or less) and small enterprises (between 16 and 100 workers) have been the main beneficiaries of CIMO which responds to the training needs of these enterprises, which together accounted for 81 per cent of the activities of the Training Promotion Units (UPC). The FSNE and PROBECAT handle basic training, retraining, building competence for self-employment and acquiring skills for the development of micro-enterprises. National and multinational enterprises as well as government authorities at the state and federal levels take active part in the sectoral training committees. The Mexican Confederation of Chambers of Industry indicates that training programmes in all enterprises must be organized in accordance with the statutory requirements. MNEs tend to have advanced training schemes and their participation in this area is significant. They also take part in industry-specific training programmes. The Confederation of Mexican Workers agrees with the Government.

According to the Government, training provided by MNEs in Namibia is in keeping with the country's development policies. There are national programmes and funds aimed at enhancing and encouraging HRD. Since both national and multinational enterprises are equally represented on the Namibian Vocational Training Board, they are actively involved in the implementation of HRD programmes.

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.

Under the 1992 Industry Training Act, industry-based training has been sub-stantially reformed, reports the Government of New Zealand. The aim of the new law is to enhance the relevance, quality and amount of training provided. Industry Training Organizations (ITOs), which are recognized by the Education, Training and Support Agency (ETSA), have been set up to do the following: set national skill standards for the industries they represent; develop and implement internal and off-the-job training arrangements for enterprises in the respective industries; and determine the modalities for monitoring training standards and assessing trainees. Standards developed by the ITOs are registered with the National Qualifications Framework and subject to regular review and updating in consulta-tion with the New Zealand Qualifications Authority (NQA). ITOs can obtain subsidies through government training funds. At the end of 1995 there were 50 officially recognized ITOs covering some 66 per cent of the entire workforce. There is no specific information on the participation of MNEs in training and the practices of these enterprises are indistinguishable from those of large local com-panies. However, there is evidence that MNEs support and take active part in ITO training activities. The Government gives the example of a foreign MNE from an OECD Asian and Pacific country (enterprise and country named) in the forestry, wood, pulp and paper industry, which is training its workers within the frame-works developed by the NQA and in close collaboration with the relevant ITO. The Government's views are shared by the New Zealand Employers' Federation.

The Government of Nicaragua states that HRD policies and related activities are defined and administered by the National Institute of Technology (Instituto Nacional Tecnológico). MNEs respect the policies and standards in this field, and they also have programmes for training and further training, both within the enterprise and abroad. There is a National Vocational Training Programme which is financed by the State and employers' contributions. MNEs participate in national training programmes by sending staff on courses, signing agreements for the use of facilities for training new workers, and delegating specialists to sit on technical committees which draw up training programmes. They are also represented on the tripartite Administrative Council for Vocational Training, responsible for defining training policies and strategies.

The Government of Nigeria reports that training programmes for local management in fields such as industrial relations and manpower development are provided by many relevant, private and public institutions. These institutions are supported and utilized by MNEs for their training and HRD needs. A number of multinationals have set up vocational training schools of a high standard for the training of their employees in useful fields, which open up career opportunities. By law, all enterprises, including MNEs, must train a fixed percentage (unspecified) of their workforce and contribute towards an education fund. The Nigeria Employers' Consultative Association concurs with the Government. The Nigeria Labour Congress confirms that training offered by MNEs meets the needs and development policies of the country. There are no national HRD programmes or funds. Most programmes (including funds) exist mainly at the level of the respective organizations.

The Government of Norway reports that the 1977 Act respecting Workers' Protection and the Working Environment promotes HRD. One of the objectives is to secure meaningful employment for individuals (paragraph 1(2)). In order to ensure that the kind of training provided by MNEs meets the host country's needs, the Act stipulates that "conditions shall be so designed that the workers are afforded a reasonable opportunity for occupational and personal advancement" (paragraph 12(1)). The issue of lifelong learning is a subject of public debate. The Confederation of Norwegian Business and Industry endorses the views expressed by the Government.

According to the Government of Pakistan, the 1969 Apprenticeship Ordinance also applies to MNEs. Under the terms of this Ordinance, employers have to provide 70 per cent of the "selected workers" with training. MNEs must provide trainees with a stipend for the duration of the training period. The Federal Government has initiated a scheme to educate workers and managers in enterprises on industrial relations practices. HRD is mainly carried out through government-funded programmes. The National Training Ordinance of 1980 provides for the creation of a National Training Board, and the Provincial Training Boards in each province. The aim of Phase II of the National Vocational Training Project is to enhance training programmes by setting up new training centres and upgrading existing facilities. Under this project, Centres' Management Committees and Skill Development Councils have been set up to increase employers' representation in training schemes. The Apprenticeship/Inplant Training Programmes have been expanded, and Mobile Training Units are used to train workers in the informal sector. In 1994, the Prime Minister's Special Programme for Training in Technical Trades and Domestic Services was launched to train 31,120 youths. Under the Public Sector Development Programme, each province includes in its annual budget, allocations for the establishment of new training centres and for the improvement of HRD programmes. The Employers' Federation of Pakistan (EFP) notes that the training provided by MNEs meets national requirements. Under the Apprenticeship Ordinance, enterprises of a certain size must train a minimum number of their workers. In order to increase productivity at the local level and enhance national economic development, a National Training Board, Provincial Training Boards and Skills Development Councils have been set up to provide vocational training to half-a-million people over a five-year period.

The Independent Self-Governing Trade Union "Solidarno" notes that MNEs in Poland train workers to meet the requirements of the enterprise. There are no national HRD programmes and funds. The training policies and practices of MNEs are favourable in large enterprises which tend to accord great importance to their reputation.

The Government of Portugal has no specific information on training offered by MNEs. However, it surmises that these enterprises, by virtue of their size, pay special attention to HRD, which is critical to their development strategies. They contribute to training at the sectoral, regional and national levels, by participating in a number of tripartite bodies that deal with vocational training policies and programmes (eight such entities named). Government institutions (especially the Employment and Vocational Training Institute) give technical, teaching and financial support to all enterprises, including MNEs, which carry out their own training activities. During the period under review, the Government issued a number of Orders and legislative decrees, some of which dealt with the following: the training of youths and adults to facilitate their entry into the labour market; provision of grants to unemployed persons and workers for full-time or part-time training; regulation of information systems on vocational training; the promotion, organization and functioning of special vocational training schemes; incentives for the recruitment of young, first-time jobseekers and the long-term unemployed; and support for training in the field of agriculture (list of all laws provided). A noteworthy development is the enactment of Legislative Decree No. 34/95 of 11 November 1995 to provide training, job placement services and other forms of support to workers in sectors undergoing restructuring, those in enterprises experiencing difficulties and those in regions hard hit by the social and economic effects of restructuring. The General Union of Workers notes that MNEs train workers within the framework of national policies in this field. The training is packaged to meet the needs of the enterprise. Portugal has received funding from the EU for improving training and MNEs, like local enterprises, have access to these and other national resources to finance their activities.

The Government of Romania states that the training provided by MNEs meets the country's needs. Under the Foreign Investment Act, a 25 per cent reduction of taxes on profits for periods exceeding the legal limit is given to investors who devote more than 10 per cent of their total expenditure to scientific research, the development of new technologies in Romania and vocational training. There are no national programmes for enhancing HRD.

The St. Vincent Employers' Federation states that the training provided by MNEs is in line with the country's development policies and there are national training programmes. Most of the funding for training comes from external agencies with some contribution from the Government. MNEs support training initiatives by accepting to take on individuals so that they can gain work experience. Some of the graduates are subsequently hired.

According to the Government of Singapore, MNEs have provided various types of training. This has contributed to the fulfilment of local manpower needs and has supported economic development policies. The Skills Development Fund (SDF) was established in 1979 to provide incentive grants for the building up of a highly trained workforce to support the country's economic restructuring effort. Funding is provided for under the Skills Development Levy Act, which requires that all employers make a contribution equivalent to 1 per cent of the total salaries of employees earning less than S$1,000 per month. A wide range of training schemes is carried out under this programme. (A list of the schemes and the range of activities was annexed to the report.) MNEs and national enterprises have collaborated in the development of training infrastructures. For example, three joint training centres have been established with the participation of local tertiary institutions, foreign MNEs and foreign governments (names of two MNEs given). These centres satisfy the requirements of these MNEs, while also helping to meet the needs of others in the industry. Joint and bilateral initiatives have been undertaken with a view to responding to the country's technological needs. (A list of major projects established under this approach was annexed to the report.) Several MNEs which provide "excellence" training programmes, as well as local enterprises, collaborate with the SDF to develop better and more cost-effective programmes. So far, 15 projects have been launched through this collaborative effort. The country has also benefited from adopting training systems from other countries as a means of facilitating the transfer of technology. The Singapore National Employers' Federation points out that HRD has played an important role in transforming Singapore from "an under-developed country into a prosperous one". The country has benefited substantially from inflows of skilled workers, professionals and managers. Over the years, it has increased its pool of skilled local workers and professionals through the extensive development of its educational and vocational training institutions. The focus is now mainly on upgrading skills, increasing productivity, encouraging wage flexibility and attracting skilled and professional personnel from overseas. There has been an appreciable investment in training. MNEs have undoubtedly contributed to enhancing managerial and technical skills, and by virtue of their ability to attract and retain the best local managers they play an important role in improving the quality of management. A survey conducted by the Nanyang Business School, Nanyang Technological University (NTU) found that organizational development was not yet considered an integral human resource function among companies in the country. Human resources managers were found to play a greater role in MNEs compared to local companies in developing career development programmes -- 42 per cent in MNEs as opposed to 17 per cent in local companies. The survey also showed that of the 42 per cent of the companies with overseas operations which conducted international HRD programmes, foreign MNEs comprised the majority. Both MNEs and local companies were found to conduct technical training more frequently than other types of training.

The Government states that the training and retraining programmes organized by MNEs meet the development policy objectives of Slovakia. Both national and multinational enterprises comply with regulations which provide for the implementation of an active employment policy which supports and stimulates HRD.

The Government of Slovenia states that most MNEs are "deeply aware" that the achievement of high quality and standards depends on the quality of the workforce. Therefore, MNEs (examples given by name) provide various types of training locally and abroad. There are national programmes financed by the Government which are aimed at training and retraining mainly unemployed persons. The financial resources provided for these programmes are not intended to assist MNEs.

According to the Government of Spain, Royal Decree 631/1993 of 3 May governing the National Plan for Training and Entry into Working Life (Plan FIP) (Plan Nacional de Formación e Inserción Profesional), makes it possible for employers' and workers' organizations to participate in training activities. Their participation may take place through programmes organized by their respective centres or through arrangements in keeping with Collaboration Agreements concluded with the National Employment Institute (INEM). Activities for training employed persons are carried out within the framework of the National Agreement on Continuing Training (Acuerdo Nacional de Formación Continua). This Agreement is complemented by the Tripartite Agreement which was signed in December 1992 by the most representative employers' and workers' organizations. The aim of these Agreements is to define and promote training activities for workers, with a view to improving their professional qualifications and personal development, thereby contributing to the competitiveness of enterprises and economic efficiency. The National Agreement opens up training opportunities for workers in all enterprises with less than 200 workers. While this is particularly advantageous to SMEs, enterprises of any size, including MNEs, can take part. Under the National Agreement on Continuing Training, enterprises can grant workers time off for training with a view to obtaining an official certificate or diploma. As regards MNEs, they facilitate the transfer of technology from countries with more advanced research and development capabilities and enhance the skills of local personnel. Like national enterprises, MNEs take part in and benefit from subsidized training schemes. Subsidies averaged 22.6 per cent and 46 per cent of the costs of training schemes in large enterprises in 1993 and 1994 respectively. The General Union of Workers (UGT) states that MNEs in Spain generally provide training for the most qualified workers. However, large enterprises tend to have training programmes for workers in all occupational categories and these are usually based on standards elaborated by or agreed with state authorities. There is a National Agreement on Continuing Vocational Training (1993-96) which was signed by the UGT, the CC.OO (Trade Union Confederation of Workers' Committees) and the CIG (a regional trade union (full name not given)), the CEOE (Spanish Employers' Federation) and the CEPYME (an employers' confederation (full name not given)), with the cooperation of the Government, which has drawn up laws for the application of this Agreement. There are also sector-specific training agreements. MNEs participate in the implementation of the National Agreement through a foundation set up by the signatories to approve and manage training programmes. They also take part in the Joint State Committee on Continuing Training (Comisión Mixta Estatal de Formación Continua) which lays down the criteria and procedures for financing training activities. Large and medium-sized enterprises can draw up individual training plans and small enterprises can have joint plans.

According to the Government, the training provided by MNEs is in line with national HRD policies. In Sri Lanka there are national HRD programmes in which only some MNEs actively participate. The Employers' Federation of Ceylon, referring to MNEs that belong to its organization, states that the training provided by MNEs in Sri Lanka is more advanced than in other enterprises.

According to the Government of Swaziland, the training provided by MNEs meets the country's development policy objectives, albeit to a limited extent. There are national programmes as well as funds operated by certain organizations, e.g. the STRIDE Project, and the Training Section of the Ministry of Labour and Public Service. National and multinational enterprises support and actively participate in such programme. However, they do not closely supervise or follow up their implementation.

The Central Union of Swiss Employers' Associations reports that the majority of enterprises, whether national or multinational, have a system of dual apprenticeship, comprising combined training at the enterprise and at vocational school. Implemented on a voluntary basis, this system enables young workers to obtain recognized qualifications which are essential for their integration in the labour market. On the whole, enterprises make a great effort in the field of training which is important for competitiveness. The establishment of specialized higher-level schools will further enhance the level of technical and commercial training. According to the Federation of Commerce, Transport and Food Industries Workers' Union, MNEs, like national enterprises in Switzerland, provide training of relevance to their operations.

The Government of the Syrian Arab Republic reports that the training provided by MNEs meets the country's development policies. National enterprises contribute to national HRD programmes, but multinationals do not. The Chamber of Industry agrees with the views expressed by the Government of the Syrian Arab Republic.

The Government of Thailand reports that MNEs provide on-the-job training to enhance skills and efficiency and increase productivity. National HRD programmes, some of which are undertaken with the assistance of MNEs, also provide vocational training and career guidance for young people. MNEs' involvement includes providing training materials, facilities and financial support.

The Government of Trinidad and Tobago reports that there are national programmes (including funds) for encouraging HRD. Approximately TT$79.7 million have been provided in the 1996 estimates under recurrent expenditure for a number of programmes, including the following: early childhood care and education; the National Apprenticeship System; the Adolescent Development Training Programme; the Youth Training and Employment Partnership Programme Ltd.; the Skills Development Programme for Heavy Industry and Advanced Technology; the Metal Industries Co-Training Subsidy Annual Scholarship; and the Study Leave Programme. National and multinational enterprises support and actively participate in the four major national training programmes: the Journeyman's Programme; the Master Craftsman Programme; the Technologist Programme; and the Master Technologist Programme. Apart from these, there are many short courses, e.g. for the training of trainers and training of supervisors. These are designed specifically to prepare people for work in the energy sector and the light, medium and heavy manufacturing industries. MNEs actively support programmes that have a technical/vocational component and they are invited to recruit persons who have received training. Once they have accepted these trainees, the MNEs share the cost of the stipend. They are also responsible for the daily supervision of these trainees, and for providing them with practical skills to complement their academic training. The Employers' Consultative Association of Trinidad and Tobago replies in the affirmative to all the questions, but adds that the role of MNEs in the process of implementing HRD programmes is limited.

The Government of Tunisia reports that the Ministry for Vocational Training and Employment has developed training policies that are closely linked to the needs of enterprises for qualified and technical personnel. Special programmes for continuing training have been implemented. Training is provided by both public and private institutions, and certificates are issued at various levels. Training programmes include the following: general and technical education; practical work; courses in social legislation, especially in OSH; and compulsory internships in enterprises. Alternating training has been successfully carried out in five areas of activity: maintenance; leather and footwear; carpentry and woodworking; textile and garments; and clerical work. This attests to the importance of the enterprise in the training process and such arrangements are to be progressively introduced at the national level. Special training programmes to enable young persons to enter into the labour market have also been set up. These include: internships; employment-training contracts; and funds to assist young persons and private enterprises. The Tunisian Confederation of Industry, Trade and Handicrafts states that legislation on vocational training was enacted in February 1993. One of its aims is to encourage the recruitment of young graduates and stimulate enterprises' interest in the university. It applies to all enterprises in the country.

The Government of Turkey states that Act No. 3308 provides for the establishment of the Apprenticeship, Vocational and Technical Training Development and Extension Fund. The aims of the Fund include the following: to extend vocational and technical training through a system of formal apprenticeship and non-formal training; to increase the number and quality of trained persons; and to facilitate the training of jobseekers and workers in the private and public sectors. The Chamber of Commerce, petty traders, artisans' associations, trade unions, and the general public, contribute to the Fund, which is also financed from a 1 per cent increase on total income and corporate taxes. An Employment and Training Project has been launched to set up training programmes for the unemployed, and to develop and establish national vocational training standards, as well as testing and certification organizations. There are many training programmes available to national and multinational enterprises which are run by public and private-sector organizations. However, the level of participation by enterprises in the training process is insufficient. Large enterprises attempt to establish their own training centres, which compete with other training initiatives. Consultations with MNEs concerning the development of national HRD policies take place through the employers' associations, of which they are members. With the privatization of SOEs, MNEs should give more serious consideration to training and retraining. According to the Turkish Confederation of Employer Associations, MNEs respect the relevant legislation when developing HRD plans to meet their needs. They make a general contribution to vocational training programmes by employing nationals. The Confederation of Turkish Trade Unions states that, while not much training activity is being undertaken by MNEs, their initiatives in this field are in line with the Government's policies. There are national HRD programmes, but the funds are extremely limited and MNEs do not support and participate in these programmes.

The Government of the United Kingdom indicates that MNEs, like other enterprises, are encouraged to develop workers' skills "in every appropriate way". Government's training strategy is aimed at self-employed persons, youths, unemployed persons and those with particular disadvantages as regards skills. A key objective is to make vocational education and training more responsive to changing demands. The Government provides details of a number of national schemes and programmes that have been developed within the framework of the National Targets for Education and Training (NTET). The Confederation of British Industry (CBI) was the instigator of the NTET and, through the CBI and local training and enterprise councils, employers contributed to the drawing up of the training strategy. In the case of Northern Ireland, the Training and Employment Agency (T&EA) works closely with employers through 16 "sector training councils", which act as the voice of industry. The budget and programme of the T&EA are to help jobseekers acquire necessary skills and to enhance workers' skills. Most of the resources go into the company development programme (CDP) in which about 370 local enterprises participate. They get support for training and development and a maximum of 50 per cent of total training costs can be obtained under the CDP, which is designed to provide the impetus for additional spending on HRD by enterprises themselves. The Confederation of British Industry has been very influential in the development of vocational training policies. It is well represented in many standard-setting bodies and has contributed to the establishment of local training and enterprise councils (and in Scotland, local enterprise companies) which are responsible for implementing government-funded training programmes for young first-time jobseekers and unemployed adults. MNEs play a major role in vocational training and guidance through their in-house training programmes and involvement in "Investors in People" -- a national standard based on "best practice" in the field of HRD in leading companies.

The Government reports that in the United States there is no difference between MNEs and other enterprises as regards the degree of observance of paragraphs 30 and 32. Specific vocational training is provided primarily by public and private employers through formal and informal training in institutions and at the workplace. Training is also provided by vocational schools at the secondary level as well as in junior and community colleges at the post-secondary level. These programmes are administered by the states with limited federal financial assistance. Federally supported training is highly targeted and reaches only a very small segment of the workforce. The Comprehensive Employment and Training Act (1973) was replaced by the Job Training Partnership Act (JTPA), also known as the Economic Dislocation and Worker Adjustment Assistance Act. Under the JTPA, which came into force in October 1983, training and related services are provided for disadvantaged youths and adults as well as displaced workers. The programme is administered through a partnership arrangement involving state and local governments and private business and industry. In the programme year which ended in June 1994, expenditures for the retraining of displaced workers under Title III of the JTPA amounted to some $543 million, about 51 per cent of which was for retraining. The federal Government is working closely with business representatives, workers' organizations and academics, to help identify and implement new approaches to training. This effort includes exploring possibilities for the establishment of a voluntary system for accrediting work-based training programmes, based on standards developed jointly with industry, and providing for the certification of individual worker's skills. In cooperation with representatives of enterprises, including MNEs, academics and labour unions, Government has also developed a set of recommended "work-readiness skills", which young and adult jobseekers need in order to obtain meaningful employment and cope with a dynamic workplace. These recommended skills can be used to create secondary school curricula and to develop work-based training curricula for employees. The programmes outlined provide the framework within which enterprises in the US are participating in carrying out government policy for vocational training and guidance and closely linking educational programmes with employment opportunities. Many enterprises, especially large ones, have their own privately funded training schemes which enable workers to acquire useful skills and enhance their career opportunities.

There is no national HRD policy, reports the Venezuelan Federation of Chambers of Commerce and Manufacturers' Associations. Consequently, MNEs set their own policies in order to meet their needs for qualified personnel. There is a National Institute for Cooperation in Education (INCE), which should develop study programmes in response to the country's needs. However, it is unable to meet the country's basic training requirements. Agreements have been signed with national and multinational enterprises, enabling them to use the facilities of INCE and other institutions, to develop their own special training activities. Enterprises, in many cases, finance training and skill development programmes.

The Government of Zambia attaches importance to training. Through the Ministry of Science, Technology and Vocational Training, a national training policy, which takes into account the manpower requirements and needs of the labour market, has been formulated. Training needs are met through programmes carried out in universities, colleges and vocational training institutes. MNEs carry out their own training programmes at various public and private training centres, and such training generally meets the country's development policy. The involvement of national enterprises and MNEs in training constitutes an important form of support to national initiatives for promoting HRD.

The Government of Zimbabwe states that MNEs do provide training for their workers. The Zimbabwe Manpower Development Fund (ZIMDEF) is responsible for HRD, and MNEs and national enterprises, apart from contributing to the fund, are also involved in the development of programmes. The Employers' Confederation of Zimbabwe notes that the training provided by MNEs meets the needs of the development policies of the country and that national programmes are aimed at enhancing and encouraging HRD. The Government, through the Ministry of Higher Education, operates the Zimbabwe Manpower Development Fund (ZIMDEF) to promote HRD. MNEs and national enterprises support and actively participate in these arrangements through the National Advisory Council which is a tripartite body comprising Government, industries, employers' and workers' representatives. MNEs and national enterprises which participate in the training of apprentices may obtain a rebate from ZIMDEF.

2. GB.258/10/21, para. 15.

3. GB.258/205, para. 67.

4. GB/MNE/1980/D.1; GB.224/MNE/1/1/D.1(1983); GB.234/MNE/1/1(1986); GB.244/MNE/1/2(1989); and TDME/REP 5(Rev.)(1992).

5. GB.229/13/13, para. 5 and GB.229/PV(Rev.), p. VII/2.

6. GB.205/10/2, para. 9 and GB.205/PV(Rev.), p. VI/4.

7. "Resolution concerning follow-up to the World Employment Conference", International Labour Conference, 65th Session, Record of Proceedings (Geneva, International Labour Office, 1979), section on multinational enterprises, pp. XCV-XCVI.

8. GB.214/6/3, para. 85; GB.214/PV(Rev.), p. IV/11.

9. GB.224/17/30.

10. GB.228/19/24, paras. 12 and 14.

11. GB.229/13/13, para. 8.

12. GB.229/PV(Rev.), p. VII/3.

13. GB.231/18/20, para. 35(b) and (d) and GB.231/PV(Rev.), p. X/7.

14. GB.232/12/15, appendix.

15. GB.229/13/13, para. 5.

16. GB.239/PV(Rev.), p. II/8.

17. GB.248/15/26, para. 11 and GB.248/205, para. 84.

18. GB.258/10/21, para. 15(a) and (c).

19. GB.256/13/24, para. 6(b)(i).

20. GB.261/MNE/5/2; GB.261/9/30, paras. 20-22; GB.261/205.

21. GB.254/MNE/4/6; GB.254/MNE/4/6(Rev.); GB.254/14/23; GB.255/MNE/1/1; GB.255/10/12; GB.261/MNE/4/1; GB.261/9/30, paras. 23-50; GB.264/MNE/2; GB.264/13, paras. 16-44.

22. GB.264/MNE/3 and GB.264/205, para. 52.

23. These refer to replies to all or part of the questionnaire. Replies may have been submitted either by the government, or by the representative employers' and workers' organizations(s) of a country. The names of those respondents which informed the Office of the reasons for which they did not prepare replies to the questionnaire are contained in Annex 3. If they were the only respondents from the countries concerned, the names of the countries do not appear in this list.

24. GB.248/205, para. 84(c).

25. Convention (No. 87) concerning Freedom of Association and Protection of the Right to Organise; Convention (No. 98) concerning the Application of the Principles of the Right to Organise and to Bargain Collectively; Convention (No. 111) concerning Discrimination in Respect of Employment and Occupation; Convention (No. 122) concerning Employment Policy; Recommendation (No. 111) concerning Discrimination in Respect of Employment and Occupation; Recommendation (No. 119) concerning Termination of Employment at the Initiative of the Employer; Recommendation (No. 122) concerning Employment Policy.

26. Convention (No. 122) and Recommendation (No. 122) concerning Employment Policy.

27. ILO, World Employment Conference, Geneva, 4-17 June 1976.

28. Convention (No. 111) and Recommendation (No. 111) concerning Discrimination in Respect of Employment and Occupation; Convention (No. 100) and Recommendation (No. 90) concerning Equal Remuneration for Men and Women Workers for Work of Equal Value.

29. Recommendation (No. 119) concerning Termination of Employment at the Initiative of the Employer.

30. ibid.

31. Convention (No. 142) and Recommendation (No. 150) concerning Vocational Guidance and Vocational Training in the Development of Human Resources.


Updated by VC. Approved by NdW. Last update: 26 January 2000.

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