It was announced in July 2000 that an agreement setting out minimum labour standards for all those employed by the German multinational manufacturing group Freudenberg had been concluded by company management and international and national trade union organisations.
A global agreement on "cooperation, responsibility and social dialogue" was signed in July 2000 at Freudenberg, the German-based components-manufacturing multinational. The deal was negotiated by company management and the International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM), in cooperation with the German chemicals, energy and mining union, Industriegewerkschaft Bergbau Chemie Energie (IG BCE), which is affiliated to ICEM. IG BCE is a co-signatory of the agreement. In its preamble, the accord cites its primary aim as promoting cooperation and social responsibility, strengthening social dialogue and exchange of information and advice, and developing and maintaining the required standards in the areas of environmental protection and employment security. This will be built on the basis of long-term economic growth in all the group's companies and is also intended to serve as a basis for the development of good social relations throughout the group. The agreement covers all 258 companies in the Freudenberg group, which are estimated to employ some 30,000 people in 41 countries worldwide.
Basic principles
The parties to the agreement state that they wish to pursue the aims of job security and social justice, based on the long-term growth and success of the Freudenberg group. They commit themselves to finding acceptable solutions to problems by means of "appropriate dialogue", while recognising that they may have differing interests. They also note that any long-term job security at the group is dependent upon the economic success of the company and robust growth. The agreement notes further that the future success of both the group and its employees is based on trust and cooperation between management and employees and their representatives, innovation and flexibility of work organisation. Finally, the Freudenberg group condemns any participation in unethical or unlawful business and pledges not to manufacture any weapons or products which could be used for combat.
Respect of international instruments
The agreement commits the parties to treat each other with respect, understanding and trust. It also commits Freudenberg to respect the minimum standards contained in the following International Labour Organisation (ILO) instruments:
- Conventions Nos. 29 and 105 on forced labour;
- Convention No. 138 on child labour;
- Conventions Nos. 100 and 111 on equal opportunities and equal treatment; and
- Conventions Nos. 87 and 98 on freedom of association and collective bargaining.
Collective rights
The agreement states that it is the right of employees of the Freudenberg group to belong to the trade union of their choice, elect employee representatives and collectively represent their interests in collective bargaining. Where employees wish to organise themselves in a trade union, "ways will be sought to develop good labour relations in joint dialogue" and in this way all forms of discrimination, unfair treatment or sanctions relating to trade union organisation will be ruled out. This latter provision is based on the anti-discrimination provisions contained in ILO Convention No. 135.
Flexibility in work organisation
A specific chapter of the agreement is devoted to the topic of flexibility and new forms of work organisation, stating that the parties agree that this is indispensible for the attainment of the group's long-term and sustainable economic growth. It states that "all efforts must be made at local and national level to reach consensus over the introduction of flexible, effective and customer-oriented forms of work organisation", taking into account the needs and interests of employees and local considerations.
The agreement also commits the company to protection of the environment, safety at the workplace and the safety of its products.
Monitoring
An annual meeting will take place between company, ICEM and IG BCE representatives in order to assess the implementation of this accord. In the case of any conflicts arising from this agreement, or contraventions of its provisions, both sides commit themselves to "contact each other directly in order to find a common solution".
Commentary
This deal is seen as innovative, both in terms of its content and its proposed system of monitoring, by all those who were involved in its negotiation. ICEM notes in particular that the provisions for joint monitoring by means of annual meetings comprise the "crucial difference between a global agreement and the internal codes of conduct adopted by many multinationals". It goes on to state that the agreement is therefore "fully verifiable by the ICEM". IG BCE has also characterised the deal as "fair and constructive", noting that it is rooted in the history of good social partner cooperation in Germany. IG BCE is particularly satisfied with the provisions allowing trade union recognition in all Freudenberg companies worldwide. Hans-Jochen Hüchting of Freudenberg management noted that many of the principles contained in the agreement, such as those relating to environmental protection and the ban on child and forced labour, are principles which were already recognised by the company.
This agreement is the latest in an increasing number of similar global labour standards accords in which basic labour rights are guaranteed and certain minimum standards are set (DE0004249N and NO9811197F). It is likely that this trend will continue, possibly leading to a considerable number of such agreements as trade unions become increasingly persuasive in their demands for the guarantee of basic labour standards and rights on a global scale, and companies become more receptive to the need for such standards and rights to be enshrined in a formal document. (Andrea Broughton, IRS)