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international labour standards, as well as in-house efforts to prevent bribery and
corruption. These will not be achieved, implemented and sustained without dialogue and
consultation at all levels of the organization.
242. The costs of poor CSR and poor corporate governance are high and long-lasting. The oil
industry has therefore developed due diligence practices in order to increase compliance
with good governance principles and international and national laws. Increased
transparency, engagement with and contribution to local communities, for example,
through community employment creation, are important aspects of CSR. Concerns about
corruption associated with the development of natural resources led to the Extractive
Industries Transparency Initiative. Given the lack of effectiveness of some of voluntary
initiative schemes, there is also a need for a legal framework, such as the OECD’s antibribery
convention.
243. Exploring for and producing oil and gas often involve the rights of indigenous people.
Social dialogue can contribute to improving the living conditions of indigenous people and
their rights through a participatory approach. In a similar context, dialogue between
indigenous people who are affected by the development of natural resources and the oil
industry is important to ensure they can participate in the whole process. In another
context, social dialogue can also bring together the industry and trade unions to protect
workers’ rights in the massive oil industry procurement market.
244. Social dialogue can increase democracy and transparency in the management of sovereign
wealth funds (SWFs); by 2010 they may exceed US$12 trillion. A lack of transparency is
making it difficult for some recipient countries to accept capital inflows from SWFs.
Norway, however, has shown that the successful management of a SWF requires
transparency and ethics based on dialogue and has taken measures in this regard.
7.2. Suggested points for discussion
245. In the light of the foregoing treatment of the issues, the following points are offered as a
basis for discussions at the meeting:
1. How can decent employment creation, increased efficiency and competitiveness in
the oil industry be better combined? Which social measures should accompany
changing employment practices?
2. What are the key elements that underpin good industrial relations in the oil industry?
What measures could be taken by governments and the social partners to promote and
ensure good industrial relations?
3. What challenges and opportunities are presented by contract labour in the oil
industry? What measures could be taken in order to address the implications of a
contract workforce on workers’ rights and their safety and health?
4. What skills and qualifications are conducive to the sustainable development of
employment in the oil industry? How could the industry be made more attractive to
young workers and provide better opportunities for training and career development,
particularly for women?
5. How can social dialogue, good governance practices and voluntary initiatives
promote sustainable enterprises and contribute to decent work in the oil industry?
6. What measures should the ILO take to contribute to promoting social dialogue and
good industrial relations in the oil industry?
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