ILPC 2027

 In the age of globalization, workers’ protection is no more (only) a national concern, but a global one. Multinational corporations (MNCs) operate across many states, usually worldwide, which allows them to reduce production costs by outsourcing part of their business in countries where labour and/or capital are less expensive. Besides, the processes of production and distribution are more and more scattered throughout the world, within a plethora of big and small entities, whose contributions, as a whole, constitute the so called global value chain (GVC). However, these chains, especially the so called buyer-driven ones (Gereffi et al. 2005), are usually hard to control, and might cause troubles (at least in terms of public image) whenever serious accidents occur. In order to tackle the GVCs governance problem in relation to labour issues (Riisgaard and Hammer, 2011), a few MNCs have signed international framework agreements (IFAs) with global union federations (GUFs). These agreements usually recognize, as a minimum, the right of association and collective bargaining, along with other social standards, and aim to secure such rights for every person employed in the GVC itself.

This paper thus investigates the (potential) role played by IFAs in providing signing companies with useful tools for a better GVCs monitoring. In the first section, the author examines IFAs personal scope of application, mainly on the employers' side, and the available sanctions in case of violation of the commitments (that range from almost no sanction to the termination of the agreement). The second one deals with the supervising mechanisms envisaged in IFAs (usually, a joint meeting once a year as well as periodical communications between the parties) and the ways through which GUFs’ networks may serve as early monitoring systems capable of detecting possible labour-related risks. The third section is dedicated to the analysis of two model agreements (Inditex’s and IKEA’s) specifically devised for suppliers and subcontractors, which can be considered as the most advanced instruments for the purpose of the paper. In the last one, a literature review on the concrete implementation of some IFAs is presented, and a few lessons are drawn from such experiences, in order to steadily improve IFAs effectiveness (the so called "collective ownership" of the agreements is essential for them to be successful).

In light of the aforementioned considerations, the author comes to the conclusion that IFAs can turn out to be powerful means for MNCs to achieve a better control over their own GVCs, by cooperating with GUFs. In this respect, he points out that such converging (but not coinciding) interests between MNCs and GUFs could eventually lead to original virtuous relations, which, in turn, would be profitable for both the company and the employees. Therefore, not only trade unionists but also managers should be encouraged to conclude IFAs, and to contribute to their effective implementation, even in the perspective of the MNC's best interest.