TUAC - TRADE UNION ADVISORY COMMITTEE TO THE OECD

07/10/2009

TUAC used the occasion of World Day for Decent Work, 7th October 2009, to call on the OECD to ensure that the forthcoming review of the OECD Guidelines for Multinational Enterprises delivers a significant upgrade that strengthens the National Contact Points (NCPs) and broaden the applicability of the Guidelines. 

In a formal consultation with the OECD Investment Committee, which was also attended by the Business and Industry Advisory Committee BIAC (BIAC) and OECD Watch, TUAC presented the trade union priorities for the 2010 Update of the Guidelines. These had been identified at a brainstorming meeting of affiliates and GUFs in September 2009.

TUAC called for the Update to be an “upgrade not a downgrade”, for the process to be “transparent, participatory and inclusive”, with the active participation of trade unions throughout, and for the creation of an Update Working Group involving TUAC, BIAC and OECD Watch, together with representatives of the ILO and the UN Special Rapporteur for Business and Human Rights, Professor Ruggie. 

TUAC stressed that improving the effectiveness of the Guidelines depends, above all else, on improving the performance of the NCPs. This means strengthening the core principles that govern the functioning of NCPs, introducing a mandatory peer review system to make sure these are applied, and increasing the role of home NCPs. It also requires strong guidance on dealing with parallel legal proceedings and confidentiality that reflects the core principles of accessibility and transparency. Finally, the Update must introduce follow-up measures, including penalties, so to ensure that there are consequences for employers that fail to cooperate with the NCP. 

In terms of content, TUAC emphasised the need to broaden the Guidelines’ applicability by incorporating the requirement for companies to undertake due diligence on their human rights impacts across their supply chain and other business relationships and removing the requirement for an investment nexus. TUAC also informed the Investment Committee that it will bring forward proposals with regard to a living wage and tackling precarious work.

The next consultation on the Update of the Guidelines will be a half-day meeting held on the 8th December 2009, as part of the OECD Global Forum on International Investment VIII. Affiliates and partner organisations wishing to attend should inform TUAC.