From International Framework Agreements to Transnational Collective Bargaining

Law and policy with regard to collective agreements have traditionally been the preserve of individual nation states. Due to the internationalization of business, the necessity of responses from the workers’ side became more and more evident and global trade union federations started to negotiate and sign global agreements with transnational companies. Today, numerous such international framework agreements with the aim to protect social standards are in place. The agreements developed over time and as industrial relations within Europe deepened, also European Agreements were concluded, and the terminology changed towards transnational collective agreements. With this development, the aspect that the agreements are the product of social dialogue and thus a form of collective bargaining is stronger emphasized. The content of agreements with European scope highly differs from the content of international agreements. While the latter primarily deal with minimum social standards, European agreements cover a wide range of subjects, restructuring being the main topic. New developments concerning transnational agreements can be highlighted with the conclusion of new agreements like the Bangladesh Accord on Fire and Building Safety, which contains not just a stronger mechanism of enforcement, but also a legally binding dispute resolution mechanism, which is a novelty and will have its impact on the composition of new transnational agreements. Summarizing, the development of transnational collective agreements can be characterized as a step towards the internationalization of industrial relations.

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Notes

Due to the global scope of application, the expression “global framework agreements” (GFAs) may also be found in literature.

Cf. to take some examples out of many Telljohann et al. (2009); as well as Sobczak (2012), pp. 139 ff.; each with further citations.

IndustriAll was founded 2012 by the unification of the global union federations International Metalworkers’ Federation (IMF), International Federation of Chemical, Energy, Mine and General Workers’ Unions (ICEM) and the International Textiles Garment and Leather Workers’ Federation (ITGLWF).

This is the case e.g. for the IFAs with EDF, ISS, OTE, RAG, Telefónica and Sécuritas, for further information see Zimmer (2008), p. 159.

In the following discussion, I will use the term “company” even though some agreements apply throughout the group of companies.

These are the companies/groups: Ability (Brazil); Al Jazeera Media Network (Qatar); AngloGold (South Africa); Antara (Indonesia); Banco do Brasil (Brasil); Chiquita (USA); Felaban-Bancing Association (Argentine); Fonterra (New Zealand); Icomon (Brasil); Itaú-Banc (Brasil); Mizuno (Japan); NAG-Banc (Australia); Nampak (South Africa); Quebecor (Canada); Petrobas (Brasil); Shoprite (South Africa) and Takashimaya (Japan).

Drouin (2015), p. 222; Miller (2004), p. 216; Thomas (2011), p. 274; Zimmer (2019b), para. 2; similar IOE (2007), p. 1.

There are a few agreements with multiple companies as contractual party on the employers’ side, like e.g. the Bangladesh Accord or the Indonesian Freedom of Association Protocol.

Research from 2008 had shown that around 54% of the IFAs contained the prohibition of the discrimination of workers’ representatives, see Zimmer (2008), p. 170.

Such a clause can be found in the IFA of IndustriAll with the Spanish textile and apparel company Inditex (2014), in the IFA between IndustriAll and Umicore, as well as in the IFA of IndustriAll and Tchibo from 2016.

See the IFA between the IMF (by now IndustriAll) and Brunel from 2007 or the IFA negotiated between Inditex and IndustriAll (in the revised version from 2014) or in Annex II (access to premises).

Following research from 2017, 85% of all agreements foresee such a committee, see Hadwiger (2017), p. 413.

This is a worldwide body of workers’ representatives, which is orientated on the EWC and formed on a voluntary basis (in consent with the employer). Sometimes a different wording is used, e.g. World Employee Forum, etc.

Blé (2011), pp. 209 f; Jagodzinski (2012), p. 42; Sobczak (2012), pp. 140 f; Zimmer (2013b), pp. 252 f.

This conclusion is the result of interviews concluded with all actors around the agreement on the protection of trade union rights (Freedom of Association Protocol) between Indonesian trade unions and sportswear companies like Adidas, Nike, Puma, Pentland, as well as local suppliers in November/December 2018 by the author.

See list of all identified CBAs from September 2018 (some agreements are no longer in force), European Commission/ILO (2018). https://ec.europa.eu/social/main.jsp?catId=978&langId=en (download 18.1.2019).

Or in the case of the Indonesian Protocol, negotiation and conclusion was at least supported by the respective GUF.

Concerning the politics of the ITF and the international CBAs, see information on the webpage of the ITF. Concerning legal aspects: Däubler (1997); Lillie (2004), pp. 47 ff. as well as Zachert (2000), pp. 121 ff.; and Zimmer (2015), pp. 103 ff.

Hoek and Hendrickx (2009), p. 11; Rüb et al. (2011), p. 19; Carley (2001), pp. 13 ff.; Zimmer (2013c), p. 318.

See Rüb et al. (2011), p. 19; Telljohann et al. (2009), p. 57; Zimmer (2013a), p. 462; Zimmer (2013c), ELLJ, p. 318.

The Allianz SE Works Council for example, concluded Guidelines concerning Work Related Stress with Management (2011), the SE-Works Council from MAN produced a Declaration on Human Rights and Working Conditions with management (2012), Guidelines concerning Lifelong Learning were concluded by the Allianz SE Works Council (2012), just to mention some prominent examples.

See in more detail Zimmer (2013c), pp. 321 ff.; Zimmer (2013a), pp. 466 ff., both with further references.

Collective bargaining and the conclusion of CBAs is defined as a central task in trade union statutes. Upon joining the trade union, members sign to accept the statutes and therefore mandate the organisation to bargain collectively on behalf of the member, see Zimmer (2016b), pp. 18 f.

Collective bargaining and the conclusion of CBAs is defined as a central task in trade union statutes. Upon joining the trade union, members sign to accept the statutes and therefore mandate the organisation to bargain collectively on behalf of the member, Zimmer (2016b), pp. 18 f.

E.g. at the conference Max Planck Institute for Comparative Public Law and International Law/University of Bristol/University of Oslo/SMART on Transnational Labour Law in an Era of Rising Nationalism: A New Role of Public Institutions for Sustainable Market Practices? 20/21 June 2018 in Heidelberg.

In addition, four NGOs signed the agreement as witnesses (Workers Rights Consortium, International Labour Rights Forum, Clean Clothes Campaign and Maquila Solidarity Network); the list may be found online under http://bangladeshaccord.org/signatories/.

The Bangladesh Textile and Garments Workers League; the Bangladesh Independent Garment Workers Union Federation; the Bangladesh Garments, Textile and Leather Workers Federation; the Bangladesh Garment and Industrial Workers Federation; the Bangladesh Revolutionary Garment Workers Federation; the National Garment Workers Federation; the United Federation of Garment Workers; and the IndustriAll Bangladesh Council (IBC).

In addition, four NGOs signed the agreement as witnesses; the list of signatory parties may be found online here: http://bangladeshaccord.org/signatories/ (24.11.2018).

In-depth interviews with the signing parties of an agreement to protect trade union rights in Indonesia (the FoA-Protocol) at the end of 2018 have shown, that such a neutral chair would be necessary to prevent stagnation in the supervisory committee in cases of conflict.

The Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention) of 10 June 1958, online http://www.newyorkconvention.org/11165/web/files/original/1/5/15457.pdf.

Art. 4 ILO-Convention 98; Art. 6 ESC; Art. 11.1 ECHR, which also includes the right to collective bargaining since the decision of the European Court of Human Rights in the case of Demir & Baykara (ECtHR 11.12.2008—No. 34503/97).

On that debate, see: Krause (2012), pp. 758 ff.; Thüsing (2010), p. 91; Zimmer (2013b), pp. 252 ff.; Zimmer (2008), pp. 267 ff.; all with further references.

Regulation 593/2008/EC of the European Parliament and of the Council of 17 June 2008 on the law applicable to contractual obligations (Rome I).

Däubler (2016), paras. 781 and 788; Kocher (2014), para. 45; Thüsing (2010), p. 91; Zimmer (2008), p. 270.

Deinert (2013), § 15, para. 20; Schlachter (2019), Art. 9, para. 32; De Koster and van den Eynde (2009), pp. 135 ff.; Felkl (2010), pp. 207 ff.; Hoek and Hendrickx (2009), pp. 9 and 19; Krause (2012), p. 763; Seifert (2006), p. 221.

Magnus (2011), para. 27 f; Hoek and Hendrickx (2009), p. 18; Krause (2012), p. 749; Meißner and Ritschel (2012), p. 62; Zimmer (2019b), § 8, para. 20; Zimmer (2013a), p. 470.

Däubler (2016), paras. 781 ff.; Deinert (2013), § 15, para. 24; Drouin (2015), p. 227; Schlachter (2019), Art. 9, para. 7; Hoek and Hendrickx (2009), pp. 19 f and 22 f; Junker (1992), p. 423; Kocher (2014), para. 46; Krause (2012), p. 763; Meißner and Ritschel (2012), p. 63; Thorn (2019), para. 5; Seifert (2006), p. 221; Zimmer (2013b), p. 470.

Deinert (2013), § 15, para. 25; Schlachter (2019), Art. 9, para. 32; Kocher (2014), para. 48; Krause (2012), p. 763; Thorn (2019), para. 5.

Däubler (2016), para. 788; Schlachter (2019), Art. 9, para. 32; Krause (2012), p. 763; Thüsing (2010), p. 91.

Krause (2012), p. 763; Seifert (2006), p. 221; Thüsing (2010), p. 91; Zimmer (2019b), § 8, para. 21; Zimmer (2013a), p. 470.

Zimmer (2019b), § 8, para. 222; see as well: CJEU 18.10.2016—C-135/15, BeckRS 2016, 82514 m. Anm. Pfeiffer.

Regulation 1215/2012/EU of the European Parliament and the Council of 12 December 2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters, replacing the Brussels I Regulation.

Is the defendant based outside the EU, due to lacking international norms, the national provisions on local jurisdiction apply, in Germany these are the norms of the ZPO (§§ 12 ff.), Koch (2019), § 1 ArbGG, para. 4.

In this regard, see the materials and reports uploaded to the European Commission’s website https://ec.europa.eu/social/main.jsp?catId=707&langId=en&intPageId=214#navItem-3.

A similar view is taken by Deinert (1999), pp. 440 ff. This option is also favoured by the ETUFs and the ETUC, see: ETUC (2016) p. 65.

ETUC (2016). Building an enabling Environment for voluntary and autonomous Negotiations at transnational Level between Trade Unions and Multinational Companies. Final Report, p. 74.

See the views of Business Europe in relation to the study from 2011, as expressed by Ms Hornung Drauss and recorded in the minutes of the Sixth Meeting of the Expert Group on Transnational Company Agreements on Oct. 11, 2011, p. 7. A rather sceptical view is also taken by the International Organisation of Employers (2007), International Framework Agreements. An Employers’ Guide, pp. 10 ff.; although in the fact sheet on IFAs for business from 2013, the IOE takes a neutral position (see p. 3).

Joint Conclusions of ETUC and Business Europe (2018), in: Building on Experiences: A Win Win Approach to Transnational Industrial Relations in Multinational Companies, Final Report, p. 18.

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Authors and Affiliations

1. Berlin School of Economics and Law, Berlin, Germany Reingard Zimmer

1. Reingard Zimmer

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Editor information

Editors and Affiliations

1. Faculty of Law, Saarland University, Saarbrücken, Germany Marc Bungenberg
2. Faculty of Law, University of Erlangen-Nuremberg, Erlangen, Germany Markus Krajewski
3. School of Law, University of Glasgow, Glasgow, UK Christian J. Tams
4. Competition and Regulation Institute, Leuphana University Lüneburg, Lüneburg, Germany Jörg Philipp Terhechte
5. Faculty of Law and Criminal Sciences, University of Lausanne, Lausanne, Switzerland Andreas R. Ziegler

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Zimmer, R. (2019). From International Framework Agreements to Transnational Collective Bargaining. In: Bungenberg, M., Krajewski, M., Tams, C.J., Terhechte, J.P., Ziegler, A.R. (eds) European Yearbook of International Economic Law 2019. European Yearbook of International Economic Law, vol 10. Springer, Cham. https://doi.org/10.1007/8165_2019_29

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• DOI : https://doi.org/10.1007/8165_2019_29
• Published : 17 October 2019
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• Print ISBN : 978-3-030-22484-4
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