Governing Body

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GB.274/MNE/1/1 274th Session Geneva, March 1999

Subcommittee on Multinational Enterprises	MNE

FIRST ITEM ON THE AGENDA

Follow-up on and promotion of the Tripartite
Declaration of Principles concerning Multinational
Enterprises and Social Policy

(a) Draft questionnaire for the Seventh Tripartite Survey
on the effect given in 1996, 1997, 1998 and 1999 to
the Tripartite Declaration of Principles concerning
Multinational Enterprises and Social Policy ⁽¹⁾  

1. On the recommendation of the Subcommittee on Multinational Enterprises, at its 268th Session (March 1997) the Governing Body requested the Office to submit to it for approval the questionnaire that would serve as the basis for the seventh full-scale survey on the effect given to the Tripartite Declaration, incorporating the suggestions made in the report of the Working Party entrusted with analysing the reports for the sixth survey.

2. The appended draft questionnaire, submitted for consideration by the Subcommittee, complies with the above request.

3. With regard to the deadline for the receipt of replies, the practice followed so far of fixing this at the end of February of the year in which the Governing Body examines the results of the survey, does not seem to call for any change and could be maintained.

4. The Subcommittee may wish to recommend that the Governing Body adopt the appended questionnaire for the Seventh Tripartite Survey on the Effect Given to the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy, in 1996, 1997, 1998 and 1999.

5. The Subcommittee may also wish to recommend that the questionnaire be dispatched not later than May 1999 and that the replies from governments, employers' and workers' organizations be communicated to the ILO by 29 February 2000 in accordance with the deadline indicated in the questionnaire.

Geneva, 20 January 1999.

Points for decision:

Paragraph 4;
Paragraph 5.

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Appendix

Report form for the Seventh Tripartite Survey on the
Effect Given to the Tripartite Declaration of Principles
concerning Multinational Enterprises and Social Policy

1. In accordance with the decision adopted by the Governing Body at its 268th Session (March 1997),⁽²⁾  the seventh full-scale survey on the effect given to the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy is now being conducted.

2. The survey covers the years 1996, 1997, 1998 and 1999, and the replies should be received in the ILO by 29 February 2000 at the latest.

3. In keeping with past practice and in order to facilitate the preparation of their replies, the attached questionnaire is being sent to governments, as well as to the most representative national employers' and workers' organizations of all member States.

4. While a joint reply by the government, employers and workers of each country would be most desirable, the employers' and workers' organizations receiving the questionnaire have the possibility, if they so wish, of transmitting their observations direct to the ILO. In such cases, the Office will, in compliance with a previous decision of the Governing Body, refer these reports to the government concerned for comment.

5. The reports are expected to shed light on and focus on new developments that have taken place during the reporting period in areas covered by the Tripartite Declaration. Respondents are accordingly urged to provide concise answers, specific data, and concrete information pertinent to the questions asked. They should highlight recent developments and policy changes which have taken place in the years concerned, and reflect to the fullest extent possible the reactions of all parties affected by such changes.

6. The information should provide a reliable indication of the extent to which the principles contained in the Tripartite Declaration are being observed and the areas in which there are still divergences between certain policies or practices of the social partners.

7. Where matters dealt with in the Tripartite Declaration may, in part, go beyond the competence of the ministry responsible for labour and social issues, close consultation with the competent authorities is highly recommended in the interest of obtaining as complete and clear a picture as possible.

Report form

The context in which the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy was adopted is reflected in its Preamble, which reads as follows:

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 Organization for Economic Cooperation 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

Please indicate in your replies to the questions asked in respect of the various sections or paragraphs of the Declaration, the degree of acceptance and application of the principles embodied therein. For this purpose, information on general trends regarding the effect given to the Declaration and particular issues arising in this respect should be given.

Background and aim

Paragraphs 1-7

1. Multinational enterprises play an important part in the economies of most countries and in international economic relations. This is of increasing interest to governments and to employers and workers and their respective organizations. Through international direct investment and other means such enterprises can bring substantial benefits to home and host countries by contributing to the more efficient utilization of capital, technology and labour. Within the framework of development policies established by governments, they can also make an important contribution to the promotion of economic and social welfare; to the improvement of living standards and the satisfaction of basic needs; to the creation of employment opportunities, both directly and indirectly; and to the enjoyment of basic human rights, including freedom of association, throughout the world. On the other hand, the advances made by multinational enterprises in organizing their operations beyond the national framework may lead to abuse of concentrations of economic power and to conflicts with national policy objectives and with the interest of the workers. In addition, the complexity of multinational enterprises and the difficulty of clearly perceiving their diverse structures, operations and policies sometimes give rise to concern either in the home or in the host countries, or in both.

2. The aim of this Tripartite Declaration of Principles is to encourage the positive contribution which multinational enterprises can make to economic and social progress and to minimize and resolve the difficulties to which their various operations may give rise, taking into account the United Nations resolutions advocating the establishment of a new international economic order.

3. This aim will be furthered by appropriate laws and policies, measures and actions adopted by the governments and by cooperation among the governments and the employers' and workers' organizations of all countries.

4. The principles set out in this Declaration are commended to the governments, the employers' and workers' organizations of home and host countries and to the multinational enterprises themselves.

5. These principles are intended to guide the governments, the employers' and workers' organizations and the multinational enterprises in taking such measures and actions and adopting such social policies, including those based on the principles laid down in the Constitution and the relevant Conventions and Recommendations of the ILO, as would further social progress.

6. To serve its purpose this Declaration does not require a precise legal definition of multinational enterprises; this paragraph is designed to facilitate the understanding of the Declaration and not to provide such a definition. Multinational enterprises include enterprises, whether they are of public, mixed or private ownership, which own or control production, distribution, services or other facilities outside the country in which they are based. The degree of autonomy of entities within multinational enterprises in relation to each other varies widely from one such enterprise to another, depending on the nature of the links between such entities and their fields of activity and having regard to the great diversity in the form of ownership, in the size, in the nature and location of the operations of the enterprises concerned. Unless otherwise specified, the term "multinational enterprise" is used in this Declaration to designate the various entities (parent companies or local entities or both or the organization as a whole) according to the distribution of responsibilities among them, in the expectation that they will cooperate and provide assistance to one another as necessary to facilitate observance of the principles laid down in the Declaration.

7. This Declaration sets out principles in the fields of employment, training, conditions of work and life and industrial relations which governments, employers' and workers' organizations and multinational enterprises are recommended to observe on a voluntary basis; its provisions shall not limit or otherwise affect obligations arising out of ratification of any ILO Convention.

Paragraphs 1-7

Q.1 MNEs can make an important contribution to the promotion of economic and social welfare, the improvement of living standards, satisfaction of basic needs, creation of employment opportunities and the enjoyment of basic human rights. On the basis of experience in your country, do you have any observations with regard to the above?

Q.2 Has the concentration of economic power in the hands of MNEs led to any abuse? In the event of an affirmative reply, please explain.

Q.3 In the event that laws, policies, measures and actions with regard to MNE activities have been adopted by your government since 1996, was this done in consultation with the employers' and workers' representatives?

Q.4 Have the activities of MNEs in your country given rise to any general or specific problems on employment, training, conditions of work and life or industrial relations issues? If so, please explain briefly.

General policies

Paragraphs 8-12

8. All the parties concerned by this Declaration should respect the sovereign rights of States, obey the national laws and regulations, give due consideration to local practices and respect relevant international standards. They should respect the Universal Declaration of Human Rights and the corresponding International Covenants adopted by the General Assembly of the United Nations as well as the Constitution of the International Labour Organization and its principles according to which freedom of expression and association are essential to sustained progress. They should also honour commitments which they have freely entered into, in conformity with the national law and accepted international obligations.

9. Governments which have not yet ratified Conventions Nos. 87, 98, 111 and 122 are urged to do so and in any event to apply, to the greatest extent possible, through their national policies, the principles embodied therein and in Recommendations Nos. 111, 119 and 122.⁽³⁾  Without prejudice to the obligation of governments to ensure compliance with Conventions they have ratified, in countries in which the Conventions and Recommendations cited in this paragraph are not complied with, all parties should refer to them for guidance in their social policy.

10. Multinational enterprises should take fully into account established general policy objectives of the countries in which they operate. Their activities should be in harmony with the development priorities and social aims and structure of the country in which they operate. To this effect, consultations should be held between multinational enterprises, the government and, wherever appropriate, the national employers' and workers' organizations concerned.

11. The principles laid down in this Declaration do not aim at introducing or maintaining inequalities of treatment between multinational and national enterprises. They reflect good practice for all. Multinational and national enterprises, wherever the principles of this Declaration are relevant to both, should be subject to the same expectations in respect of their conduct in general and their social practices in particular.

12. Governments of home countries should promote good social practice in accordance with this Declaration of Principles, having regard to the social and labour law, regulations and practices in host countries as well as to relevant international standards. Both host and home country governments should be prepared to have consultations with each other, whenever the need arises, on the initiative of either.

Paragraphs 8-12

Q.5 The Tripartite Declaration calls for activities of MNEs to be in harmony with the development priorities, social aims and structures of host countries.

1. Is this the case in your country? If not, please explain.
2. Are development policies, priorities, aims and structures explicitly explained to MNEs, and are the national employers' and workers' organizations involved in such consultations?

Employment

Paragraphs 13-28

13. With a view to stimulating economic growth and development, raising living standards, meeting manpower requirements and overcoming unemployment and underemployment, governments should declare and pursue, as a major goal, an active policy designed to promote full, productive and freely chosen employment.⁽⁴⁾ 

14. This is particularly important in the case of host country governments in developing areas of the world where the problems of unemployment and underemployment are at their most serious. In this connection, the general conclusions adopted by the Tripartite World Conference on Employment, Income Distribution and Social Progress and the International Division of Labour (Geneva, June 1976) should be kept in mind.⁽⁵⁾ 

15. Paragraphs 13 and 14 above establish the framework within which due attention should be paid, in both home and host countries, to the employment impact of multinational enterprises.

16. Multinational enterprises, particularly when operating in developing countries, should endeavour to increase employment opportunities and standards, taking into account the employment policies and objectives of the governments, as well as security of employment and the long-term development of the enterprise.

17. Before starting operations, multinational enterprises should, wherever appropriate, consult the competent authorities and the national employers' and workers' organizations in order to keep their manpower plans, as far as practicable, in harmony with national social development policies. Such consultation, as in the case of national enterprises, should continue between the multinational enterprises and all parties concerned, including the workers' organizations.

18. Multinational enterprises should give priority to the employment, occupational development, promotion and advancement of nationals of the host country at all levels in cooperation, as appropriate, with representatives of the workers employed by them or of the organizations of these workers and governmental authorities.

19. Multinational enterprises, when investing in developing countries, should have regard to the importance of using technologies which generate employment, both directly and indirectly. To the extent permitted by the nature of the process and the conditions prevailing in the economic sector concerned, they should adapt technologies to the needs and characteristics of the host countries. They should also, where possible, take part in the development of appropriate technology in host countries.

20. To promote employment in developing countries, in the context of an expanding world economy, multinational enterprises, wherever practicable, should give consideration to the conclusion of contracts with national enterprises for the manufacture of parts and equipment, to the use of local raw materials and to the progressive promotion of the local processing of raw materials. Such arrangements should not be used by multinational enterprises to avoid the responsibilities embodied in the principles of this Declaration.

21. All governments should pursue policies designed to promote equality of opportunity and treatment in employment, with a view to eliminating any discrimination based on race, colour, sex, religion, political opinion, national extraction or social origin.⁽⁶⁾ 

22. Multinational enterprises should be guided by this general principle throughout their operations without prejudice to the measures envisaged in paragraph 18 or to government policies designed to correct historical patterns of discrimination and thereby to extend equality of opportunity and treatment in employment. Multinational enterprises should accordingly make qualifications, skill and experience the basis for the recruitment, placement, training and advancement of their staff at all levels.

23. Governments should never require or encourage multinational enterprises to discriminate on any of the grounds mentioned in paragraph 21, and continuing guidance from governments, where appropriate, on the avoidance of such discrimination in employment is encouraged.

24. Governments should carefully study the impact of multinational enterprises on employment in different industrial sectors. Governments, as well as multinational enterprises themselves, in all countries should take suitable measures to deal with the employment and labour market impacts of the operations of multinational enterprises.

25. Multinational enterprises equally with national enterprises, through active manpower planning, should endeavour to provide stable employment for their employees and should observe freely negotiated obligations concerning employment stability and social security. In view of the flexibility which multinational enterprises may have, they should strive to assume a leading role in promoting security of employment, particularly in countries where the discontinuation of operations is likely to accentuate long-term unemployment.

26. In considering changes in operations (including those resulting from mergers, take-overs or transfers of production) which would have major employment effects, multinational enterprises should provide reasonable notice of such changes to the appropriate government authorities and representatives of the workers in their employment and their organizations so that the implications may be examined jointly in order to mitigate adverse effects to the greatest possible extent. This is particularly important in the case of the closure of an entity involving collective lay-offs or dismissals.

27. Arbitrary dismissal procedures should be avoided.⁽⁷⁾ 

28. Governments, in cooperation with multinational as well as national enterprises, should provide some form of income protection for workers whose employment has been terminated.⁽⁸⁾ 

Paragraphs 13-28

Q.6

1. What has been the impact, qualitative and quantitative, of the technologies used by MNEs on employment in the various industrial sectors?

2. Have there been any studies of the impact of MNEs on employment in different industrial sectors? If so, please provide a brief summary.

Q.7 To what extent do the operations of MNEs have backward linkages with national/indigenous enterprises?

Q.8 What has been the impact of MNE activities on employment in your country? Please describe briefly both general and specific aspects.

Q.9 Have any new policies been introduced or measures taken to promote equality of opportunity and treatment? If so, please explain briefly.

Q.10 Have any specific measures been taken to promote secure and stable employment, as advocated in the Tripartite Declaration? If so, what are they?

Training

Paragraphs 29-32

29. Governments, in cooperation with all the parties concerned, should develop national policies for vocational training and guidance, closely linked with employment.⁽⁹⁾  This is the framework within which multinational enterprises should pursue their training policies.

30. In their operations, multinational enterprises should ensure that relevant training is provided for all levels of their employees in the host country, as appropriate, to meet the needs of the enterprise as well as the development policies of the country. Such training should, to the extent possible, develop generally useful skills and promote career opportunities. This responsibility should be carried out, where appropriate, in cooperation with the authorities of the country, employers' and workers' organizations and the competent local, national or international institutions.

31. Multinational enterprises operating in developing countries should participate, along with national enterprises, in programmes, including special funds, encouraged by host governments and supported by employers' and workers' organizations. These programmes should have the aim of encouraging skill formation and development as well as providing vocational guidance, and should be jointly administered by the parties which support them. Wherever practicable, multinational enterprises should make the services of skilled resource personnel available to help in training programmes organized by governments as part of a contribution to national development.

32. Multinational enterprises, with the cooperation of governments and to the extent consistent with the efficient operation of the enterprise, should afford opportunities within the enterprise as a whole to broaden the experience of local management in suitable fields such as industrial relations.

Paragraphs 29-32

Q.11 What role do MNEs have in human resources development and training, in particular in strengthening the training policies and systems in the host country at the national, sectoral and enterprise levels, and in the delivery of training?

Q.12 Are training policies elaborated, goals set and programmes implemented on a tripartite basis?

Conditions of work and life
(including safety and health)

Paragraphs 33-39

33. Wages, benefits and conditions of work offered by multinational enterprises should be not less favourable to the workers than those offered by comparable employers in the country concerned.

34. When multinational enterprises operate in developing countries, where comparable employers may not exist, they should provide the best possible wages, benefits and conditions of work, within the framework of government policies.⁽¹⁰⁾  These should be related to the economic position of the enterprise, but should be at least adequate to satisfy basic needs of the workers and their families. Where they provide workers with basic amenities such as housing, medical care or food, these amenities should be of a good standard.⁽¹¹⁾ 

35. Governments, especially in developing countries, should endeavour to adopt suitable measures to ensure that lower income groups and less developed areas benefit as much as possible from the activities of multinational enterprises.

36. Governments should ensure that both multinational and national enterprises provide adequate safety and health standards for their employees. Those governments which have not yet ratified the ILO Conventions on guarding of machinery (No. 119), ionizing radiation (No. 115), benzene (No. 136) and occupational cancer (No. 139) are urged nevertheless to apply to the greatest extent possible the principles embodied in these Conventions and in their related Recommendations (Nos. 118, 114, 144 and 147). The codes of practice and guides in the current list of ILO publications on occupational safety and health should also be taken into account.⁽¹²⁾ 

37. Multinational enterprises should maintain the highest standards of safety and health, in conformity with national requirements, bearing in mind their relevant experience within the enterprise as a whole, including any knowledge of special hazards. They should also make available to the representatives of the workers in the enterprise, and upon request, to the competent authorities and the workers' and employers' organizations in all countries in which they operate, information on the safety and health standards relevant to their local operations, which they observe in other countries. In particular, they should make known to those concerned any special hazards and related protective measures associated with new products and processes. They, like comparable domestic enterprises, should be expected to play a leading role in the examination of causes of industrial safety and health hazards and in the application of resulting improvements within the enterprise as a whole.

38. Multinational enterprises should cooperate in the work of international organizations concerned with the preparation and adoption of international safety and health standards.

39. In accordance with national practice, multinational enterprises should cooperate fully with the competent safety and health authorities, the representatives of the workers and their organizations, and established safety and health organizations. Where appropriate, matters relating to safety and health should be incorporated in agreements with the representatives of the workers and their organizations.

Paragraphs 33-39

Q.13 How do wages, benefits and conditions of work in MNEs compare with those offered by other employers in the country?

Q.14 Please describe measures, if any, taken by the government to enable lower income groups and less developed areas to benefit from MNE activities.

Q.15 Have the government, employers (including MNEs) and workers worked jointly in setting wage policies, drawing up relevant legislation thereon and ensuring respect for the principle of equal pay for work of equal value?

Q.16

1. Are there any safety and health issues/problems peculiar to MNE activities? If so, please identify them and indicate what is or is not being done by MNEs.
2. (i) Do MNEs maintain high standards of safety and health in conformity with national standards?
   (ii) Is their practice in this regard less favourable or better than that of comparable employers in the country?

Q.17 Are wages and working conditions determined through collective agreements? If not, how?

Industrial relations

Paragraphs 40-58

40. Multinational enterprises should observe standards of industrial relations not less favourable than those observed by comparable employers in the country concerned.

41. Workers employed by multinational enterprises as well as those employed by national enterprises should, without distinction whatsoever, have the right to establish and, subject only to the rules of the organization concerned, to join organizations of their own choosing without previous authorization.⁽¹³⁾  They should also enjoy adequate protection against acts of anti-union discrimination in respect of their employment.⁽¹⁴⁾ 

42. Organizations representing multinational enterprises or the workers in their employment should enjoy adequate protection against any acts of interference by each other or each other's agents or members in their establishment, functioning or administration.⁽¹⁵⁾ 

43. Where appropriate, in the local circumstances, multinational enterprises should support representative employers' organizations.

44. Governments, where they do not already do so, are urged to apply the principles of Convention No. 87, Article 5, in view of the importance, in relation to multinational enterprises, of permitting organizations representing such enterprises or the workers in their employment to affiliate with international organizations of employers and workers of their own choosing.

45. Where governments of host countries offer special incentives to attract foreign investment, these incentives should not include any limitation of the workers' freedom of association or the right to organize and bargain collectively.

46. Representatives of the workers in multinational enterprises should not be hindered from meeting for consultation and exchange of views among themselves, provided that the functioning of the operations of the enterprise and the normal procedures which govern relationships with representatives of the workers and their organizations are not thereby prejudiced.

47. Governments should not restrict the entry of representatives of employers' and workers' organizations who come from other countries at the invitation of the local or national organizations concerned for the purpose of consultation on matters of mutual concern, solely on the grounds that they seek entry in that capacity.

48. Workers employed by multinational enterprises should have the right, in accordance with national law and practice, to have representative organizations of their own choosing recognized for the purpose of collective bargaining.

49. Measures appropriate to national conditions should be taken, where necessary, to encourage and promote the full development and utilization of machinery for voluntary negotiation between employers or employers' organizations and workers' organizations, with a view to the regulation of terms and conditions of employment by means of collective agreements.⁽¹⁶⁾ 

50. Multinational enterprises, as well as national enterprises, should provide workers' representatives with such facilities as may be necessary to assist in the development of effective collective agreements.⁽¹⁷⁾ 

51. Multinational enterprises should enable duly authorized representatives of the workers in their employment in each of the countries in which they operate to conduct negotiations with representatives of management who are authorized to take decisions on the matters under negotiation.

52. Multinational enterprises, in the context of bona fide negotiations with the workers' representatives on conditions of employment, or while workers are exercising the right to organize, should not threaten to utilize a capacity to transfer the whole or part of an operating unit from the country concerned in order to influence unfairly those negotiations or to hinder the exercise of the right to organize; nor should they transfer workers from affiliates in foreign countries with a view to undermining bona fide negotiations with the workers' representatives or the workers' exercise of their right to organize.

53. Collective agreements should include provisions for the settlement of disputes arising over their interpretation and application and for ensuring mutually respected rights and responsibilities.

54. Multinational enterprises should provide workers' representatives with information required for meaningful negotiations with the entity involved and, where this accords with local law and practices, should also provide information to enable them to obtain a true and fair view of the performance of the entity or, where appropriate, of the enterprise as a whole.⁽¹⁸⁾ 

55. Governments should supply to the representatives of workers' organizations on request, where law and practice so permit, information on the industries in which the enterprise operates, which would help in laying down objective criteria in the collective bargaining process. In this context, multinational as well as national enterprises should respond constructively to requests by governments for relevant information on their operations.

56. In multinational as well as in national enterprises, systems devised by mutual agreement between employers and workers and their representatives should provide, in accordance with national law and practice, for regular consultation on matters of mutual concern. Such consultation should not be a substitute for collective bargaining.⁽¹⁹⁾ 

57. Multinational as well as national enterprises should respect the right of the workers whom they employ to have all their grievances processed in a manner consistent with the following provision: any worker who, acting individually or jointly with other workers, considers that he has grounds for a grievance should have the right to submit such grievance, without suffering any prejudice whatsoever as a result, and to have such grievance examined pursuant to an appropriate procedure.⁽²⁰⁾  This is particularly important whenever the multinational enterprises operate in countries which do not abide by the principles of ILO Conventions pertaining to freedom of association, to the right to organize and bargain collectively and to forced labour.⁽²¹⁾ 

58. Multinational as well as national enterprises jointly with the representatives and organizations of the workers whom they employ should seek to establish voluntary conciliation machinery, appropriate to national conditions, which may include provisions for voluntary arbitration, to assist in the prevention and settlement of industrial disputes between employers and workers. The voluntary conciliation machinery should include equal representation of employers and workers.⁽²²⁾ 

Paragraphs 40-58

Q.18 What is the experience in your country with regard to the industrial relations practices of MNEs?

Q.19 Have incentives offered and concessions made by governments to attract FDI affected workers' rights in any way, directly or indirectly?

Q.20

1. Have MNEs responded positively to requests for information required for meaningful negotiations by workers' representatives? If not, kindly elaborate.
2. In the context of collective bargaining, have there been any instances of MNEs not responding constructively to government requests for relevant information on their operations?

Q.21 Please explain briefly what steps/measures may have been taken to implement the Governing Body's previous recommendations "... to promote collective bargaining as a key element in industrial relations. Governments and the social partners should develop specific programmes to make their members and the public aware of the importance of collective bargaining for fostering peaceful industrial relations. Information and facilities for the negotiation and conclusion of collective agreements should be made available and those involved should be given the authority to make final decisions on the matters under discussion".

Q.22 Have their been any threats by MNEs to transfer their activities elsewhere, by way of unfairly influencing negotiations or hindering the exercise of the right to organize? If so, please explain.

Q.23 Are there any particular industrial relations problems specific to MNEs operating in your country? If so, please explain.

II. Consultation with the representative employers' and
workers' organizations concerning this report

In the event that the replies to the questionnaire were not prepared on a tripartite basis, governments are requested to provide copies of their replies to this questionnaire to the most representative employers' and workers' organizations in the country and to invite them to make such observations as they may consider relevant. While it would be desirable for such observations to be incorporated in the governments' replies, the employers' and workers' organizations may also transmit their comments direct to the ILO.⁽²³⁾ 

Q.24

Governments

1. If this is a joint report, please indicate the names of the employers' and workers' organizations that participated in preparing this reply.
2. In the event that this is not a joint report, please identify the employers' and workers' organizations to which copies of your report were sent.

Employers and workers

3. In the event that employers' or workers' replies are being sent direct to the Office, have copies thereof been sent to the relevant government authorities and to the most representative employers' or workers' organizations? If so, please identify them.

III. Promotion of the observance of the Declaration

At its 226th (May-June 1984) Session, the Governing Body once again called upon governments and employers' and workers' organizations to further promote acceptance of, and adherence to, the principles of the Declaration. One measure suggested was that the annual reports of enterprises (both domestic and multinational) should express support for, and adherence to, the provisions of the Tripartite Declaration. Other means include: the distribution of copies of the Declaration to the affiliates of employers' and workers' organizations (the second edition of the Declaration is available in 30 languages, and copies can be obtained from the ILO); and discussion of the Declaration at seminars, round tables and other types of meetings. Ministers responsible for labour and social affairs could, for example, inform other ministries or government authorities involved in investment promotion, industry, services, etc. of the guidance offered by the Tripartite Declaration and could provide copies thereof, stressing that a peaceful industrial relations climate, which the principles of the Tripartite Declaration aim to promote, is a sine qua non for investments and growth.

Governments could also promote and implement the principles of the Tripartite Declaration by, inter alia, initiating policies that would give more practical meaning to the principles set out in the Declaration and the standards embodied in the instruments appended to the Declaration. They are urged to encourage their acceptance as constituting everyday norms of conduct to be observed by all concerned.

Q.25 What kind of promotional activities, if any, have been undertaken by government and the employers and workers -- alone or jointly -- during the last four years, with the aim of increasing awareness of the aims and principles of the Tripartite Declaration?

IV. The Tripartite Declaration and various
economic and industrial sectors

At its 245th Session (February-March 1990) the Governing Body noted with regret that some member States in which MNEs had considerable activities had never replied to any of the surveys and that countries with important export-processing or special economic zones had either not responded at all or had only partially replied to questions relating to their experience with the Tripartite Declaration and its application.⁽²⁴⁾ 

Q.26

1. In the event that there are export processing or special economic zones in operation, do the labour laws applicable in such areas differ in any way from those applied elsewhere in the country? If so, please explain.
2. Have workers in export processing and special economic zones the right to form associations of their own choosing and bargain collectively on the terms and conditions of employment which would apply to them?
3. Do special incentives that may be offered to investors in such special areas limit in any way, directly or indirectly, fundamental human rights or basic trade union rights, employment security, equality of treatment, safety and health standards and other rights of workers?
4. Is there any particular experience with regard to the application of the Tripartite Declaration in the various economic/industrial sectors on which you would wish to provide information?
5. Can you provide any information specific to export processing/special economic zones or offshore production installations with regard to paragraphs 17, 20, 25, 26, 30, 34, 37, 40, 41, 45, 52, 54, 56 and 58 of the Declaration?
6. Has the participation of MNEs in what were previously state, and now privatized, industries or deregulated sectors given rise to any particular labour problems? If so, please explain briefly.
7. What is your assessment of the observance -- in EPZs, SEZs and similar operations -- of the principles of the Tripartite Declaration, and in particular employment and workers' rights? Please explain briefly.

V. Disputes concerning interpretation of the
provisions of the Declaration

At its 232nd (March 1986) Session the Governing Body adopted the procedure (appended hereto) for the examination of disputes arising out of the application of the Tripartite Declaration.

Q.27

1. Have any disputes arisen in your country as a result of different interpretations being given by parties concerned to any paragraph(s) of the Tripartite Declaration? If so, please provide details on the issues and the ways in which these were resolved.
2. Does the procedure, as outlined, raise difficulties? If so, please explain, and also suggest any improvements you consider feasible.

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Annex I

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

(To replace Part IV of paragraph 85 of GB.214/6/3)

1. The purpose of the procedure is to interpret the provisions of the Declaration when needed to resolve a disagreement on their meaning, arising from an actual situation, between parties to whom the Declaration is commended.

2. The procedure should in no way duplicate or conflict with existing national or ILO procedures. Thus, it cannot be invoked:

1. in respect of national law and practice;
2. in respect of international labour Conventions and Recommendations;
3. in respect of matters falling under the freedom of association procedure.

The above means that questions regarding national law and practice should be considered through appropriate national machinery; that questions regarding international labour Conventions and Recommendations should be examined through the various procedures provided for in articles 19, 22, 24 and 26 of the Constitution of the ILO, or through government requests to the Office for informal interpretation; and that questions concerning freedom of association should be considered through the special ILO procedures applicable to that area.

3. When a request for interpretation of the Declaration is received by the International Labour Office, the Office shall acknowledge receipt and bring it before the Officers of the Committee on Multinational Enterprises. The Office will inform the government and the central organizations of employers and workers concerned of any request for interpretation received directly from an organization under paragraph 5(b) and (c).

4. The Officers of the Committee on Multinational Enterprises shall decide unanimously after consultations in the groups whether the request is receivable under the procedure. If they cannot reach agreement the request shall be referred to the full Committee for decision.

5. Requests for interpretation may be addressed to the Office:

1. as a rule by the government of a member State acting either on its own initiative or at the request of a national organization of employers or workers;
2. by a national organization of employers or workers, which is representative at the national and/or sectoral level, subject to the conditions set out in paragraph 6. Such requests should normally be channelled through the central organizations in the country concerned;
3. by an international organization of employers or workers on behalf of a representative national affiliate.

6. In the case of 5(b) and (c), requests may be submitted if it can be demonstrated:

1. that the government concerned has declined to submit the request to the Office; or
2. that three months have elapsed since the organization addressed the government without a statement of the government's intention.

7. In the case of receivable requests the Office shall prepare a draft reply in consultation with the Officers of the Committee on Multinational Enterprises. All appropriate sources of information shall be used, including government, employers' and workers' sources in the country concerned. The Officers may ask the Office to indicate a period within which the information should be provided.

8. The draft reply to a receivable request shall be considered and approved by the Committee on Multinational Enterprises prior to submission to the Governing Body for approval.

9. The reply when approved by the Governing Body shall be forwarded to the parties concerned and published in the Official Bulletin of the International Labour Office.

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Annex II

International labour Conventions and Recommendations
referred to in the Tripartite Declaration of Principles
concerning Multinational Enterprises and Social Policy

Conventions

Convention (No. 29) concerning Forced or Compulsory Labour, 1930.

Convention (No. 87) concerning Freedom of Association and Protection of the Right to Organise, 1948.

Convention (No. 98) concerning the Application of the Principles of the Right to Organise and to Bargain Collectively, 1949.

Convention (No. 100) concerning Equal Remuneration for Men and Women Workers for Work of Equal Value, 1951.

Convention (No. 105) concerning the Abolition of Forced Labour, 1957.

Convention (No. 110) concerning Conditions of Employment of Plantation Workers, 1958.

Convention (No. 111) concerning Discrimination in Respect of Employment and Occupation, 1958.

Convention (No. 115) concerning the Protection of Workers against Ionizing Radiations, 1960.

Convention (No. 119) concerning the Guarding of Machinery, 1963.

Convention (No. 122) concerning Employment Policy, 1964.

Convention (No. 130) concerning Medical Care and Sickness Benefits, 1969.

Convention (No. 135) concerning Protection and Facilities to be Afforded to Workers' Representatives in the Undertaking, 1971.

Convention (No. 136) concerning Protection against Hazards of Poisoning arising from Benzene, 1971.

Convention (No. 139) concerning Prevention and Control of Occupational Hazards caused by Carcinogenic Substances and Agents, 1974.

Convention (No. 142) concerning Vocational Guidance and Vocational Training in the Development of Human Resources, 1975.

Recommendations

Recommendation (No. 35) concerning Indirect Compulsion to Labour, 1930.

Recommendation (No. 69) concerning Medical Care, 1944.

Recommendation (No. 90) concerning Equal Remuneration for Men and Women Workers for Work of Equal Value, 1951.

Recommendation (No. 92) concerning Voluntary Conciliation and Arbitration, 1951.

Recommendation (No. 94) concerning Consultation and Cooperation between Employers and Workers at the Level of the Undertaking, 1952.

Recommendation (No. 110) concerning Conditions of Employment of Plantation Workers, 1958.

Recommendation (No. 111) concerning Discrimination in Respect of Employment and Occupation, 1958.

Recommendation (No. 114) concerning the Protection of Workers against Ionizing Radiations, 1960.

Recommendation (No. 115) concerning Workers' Housing, 1961.

Recommendation (No. 116) concerning Reduction of Hours of Work, 1962.

Recommendation (No. 118) concerning the Guarding of Machinery, 1963.

Recommendation (No. 119) concerning Termination of Employment at the Initiative of the Employer, 1963.

Recommendation (No. 122) concerning Employment Policy, 1964.

Recommendation (No. 129) concerning Communications between Management and Workers within the Undertaking, 1967.

Recommendation (No. 130) concerning the Examination of Grievances within the Undertaking with a View to their Settlement, 1967.

Recommendation (No. 134) concerning Medical Care and Sickness Benefits, 1969.

Recommendation (No. 144) concerning Protection against Hazards of Poisoning arising from Benzene, 1971.

Recommendation (No. 147) concerning Prevention and Control of Occupational Hazards caused by Carcinogenic Substances and Agents, 1974.

Recommendation (No. 150) concerning Vocational Guidance and Vocational Training in the Development of Human Resources, 1975.

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Annex III

References to Conventions and Recommendations in
the Tripartite Declaration of Principles concerning
Multinational Enterprises and Social Policy

A number of international labour Conventions and Recommendations containing provisions relevant to the Declaration are referred to in footnotes in the Declaration and in an annex. These footnotes do not affect the meaning of the provisions of the Declaration to which they refer. They should be considered as references to relevant instruments adopted by the International Labour Organization in the corresponding subject areas, which have helped shape the provisions of the Declaration.

Since the adoption of the Declaration by the Governing Body on 16 November 1977, new Conventions and Recommendations have been adopted by the International Labour Conference. This makes it necessary to include a new list of Conventions and Recommendations adopted since 1977 (including those adopted in June 1977), containing provisions relevant to the Declaration, and this list is set out below. Like the footnotes included in the Declaration at the time of its adoption, the new references do not affect the meaning of the provisions of the Declaration.

In keeping with the voluntary nature of the Declaration, all of its provisions, whether derived from ILO Conventions and Recommendations or other sources, are recommendatory, except for the provisions of Conventions which are binding on member States which have ratified them.

Conventions and Recommendations adopted since 1977
which contain provisions relevant to the Declaration

Paragraphs of the Declaration to which the instrument is relevant
Conventions
No. 148	Protection of Workers against Occupational Hazards in the Working Environment Due to Air Pollution, Noise and Vibration, 1977	36
No. 154	Promotion of Collective Bargaining, 1981	9, 49
No. 155	Occupational Safety and Health and the Working Environment, 1981	36
No. 156	Equal Opportunities and Equal Treatment for Men and Women Workers: Workers with Family Responsibilities, 1981	21
No. 158	Termination of Employment at the Initiative of the Employer, 1982	9, 26, 27, 28
No. 161	Occupational Health Services, 1985	36
No. 162	Safety in the Use of Asbestos, 1986	36
No. 167	Safety and Health in Construction, 1988	36
No. 168	Employment Promotion and Protection against Unemployment, 1988	13
No. 170	Safety in the Use of Chemicals at Work, 1990	36
No. 173	Protection of Workers' Claims in the Event of the Insolvency of their Employer, 1992	28
No. 174	Prevention of Major Industrial Accidents, 1993	36
No. 176	Safety and Health in Mines, 1995	36
Recommendations
No. 156	Protection of Workers against Occupational Hazards in the Working Environment Due to Air Pollution, Noise and Vibration, 1977	36
No. 163	Promotion of Collective Bargaining, 1981	51, 54, 55
No. 164	Occupational Safety and Health and the Working Environment, 1981	36
No. 165	Equal Opportunities and Equal Treatment for Men and Women Workers: Workers with Family Responsibilities, 1981	21
No. 166	Termination of Employment at the Initiative of the Employer, 1982	9, 26, 27, 28
No. 169	Employment Policy, 1984	9, 13
No. 171	Occupational Health Services, 1985	36
No. 172	Safety in the Use of Asbestos, 1986	36
No. 175	Safety and Health in Construction, 1988	36
No. 176	Employment Promotion and Protection against Unemployment, 1988	13
No. 177	Safety in the Use of Chemicals at Work, 1990	36
No. 180	Protection of Workers' Claims in the Event of the Insolvency of their Employer, 1992	28
No. 181	Prevention of Major Industrial Accidents, 1993	36
No. 183	Safety and Health in Mines, 1995	36

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1. The Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy was adopted by the Governing Body at its 204th Session on 16 November 1977.

2. GB.268/9, para. 203.

3. 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.

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

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

6. 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.

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

8. ibid.

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

10. Recommendation (No. 116) concerning Reduction of Hours of Work.

11. Convention (No. 110) and Recommendation (No. 110) concerning Conditions of Employment of Plantation Workers; Recommendation (No. 115) concerning Workers' Housing; Recommendation (No. 69) concerning Medical Care; Convention (No. 130) and Recommendation (No. 134) concerning Medical Care and Sickness.

12. The ILO Conventions and Recommendations referred to are listed in "Publications on occupational safety and health", ILO, Geneva, 1976, pp. 1-3. An up-to-date list of codes of practice and guides can be found in the latest edition.

13. Convention No. 87, Article 2.

14. Convention No. 98, Article 1(1).

15. Convention No. 98, Article 2(1).

16. Convention No. 98, Article 4.

17. Convention (No. 135) concerning Protection and Facilities to be Afforded to Workers' Representatives in the Undertaking.

18. Recommendation (No. 129) concerning Communications between Management and Workers within Undertakings.

19. Recommendation (No. 94) concerning Consultation and Cooperation between Employers and Workers of the Level of Undertaking; Recommendation (No. 129) concerning Communications within the Undertaking.

20. Recommendation (No. 130) concerning the Examination of Grievances within the Undertaking with a view to their Settlement.

21. Convention (No. 29) concerning Forced or Compulsory Labour; Convention (No. 105) concerning the Abolition of Forced Labour; Recommendation (No. 35) concerning Indirect Compulsion to Labour.

22. Recommendation (No. 92) concerning Voluntary Conciliation and Arbitration.

23. GB.244/MNE/1/3(Rev.), para. 121, and GB.258/205, para. 67(c).

24. GB.244/MNE/1/3(Rev.), para. 110.

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