CROSS-BORDER SOCIAL DIALOGUE AND AGREEMENTS: An ...

International framework agreements in the context of global production – Hammer
between, first, the MNC committing to inform suppliers and the intention
to influence them in the sense of the IFA; second, a stricter position
that sees the respect of the IFA’s provisions as a criterion for establishing
and/or continuing business relations and that mentions some form of
consequence in this respect; and third, an approach that makes supplier
compliance with the IFA mandatory. According to such a rough classification,
out of 62 IFAs, 10 fall into the first category, 23 into the second
and 15 into the third (the remaining IFAs do not contain explicit supplier
provisions).
Whereas the first category states simply that the company will
“notify its subcontractors and licensees of this agreement and encourage
compliance with the standards” (Statoil-ICEM), the middle way is a
commitment by MNCs to encourage their suppliers to adopt similar
principles and standards, which is regarded as a favourable basis for future
business relations. What will in practice be more important is that the
continuing violation of fundamental rights is seen, in the last instance, as
reason to terminate business relations and/or contracts.
The IFA with Renault takes a more selective line when it treats its
health and safety provisions as a selection criterion for suppliers, and
makes compliance with ILO Conventions No. 29, No. 105, and No. 138
mandatory. The agreements with EdF and Rhodia also require strict compliance
with health and safety standards. Finally, there is a set of IFAs, in
the BWI domain particularly, that make compliance compulsory along
the entire value chain. The Ballast Nedam-BWI agreement (Ballast
Nedam and IFBWW, 2002) for example states:
Ballast Nedam requires that its contractual partners shall support this
agreement and shall also ensure that it is adhered to by any of their contractual
partners who are in any way active in connection with the business
activities of Ballast Nedam.
The Veidekke-BWI agreement (Veidekke and IFBWW, 2005) not
only extends fundamental labour rights down the supply chain but also
the provisions regarding wages:
Veidekke will use its fullest influence in order to secure compliance with
the principles set out in this agreement also with its contractors, subcontractors
and suppliers. … Employees at subcontractors and hiring agencies
are to have conditions at least in line with the present wage agreement
regulation.
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