TUAC NEWS
OECD MNE Guidelines Case Victory on Precarious Work
A case submitted under the OECD MNE Guidelines by the International Union of Foodworkers (IUF) has resulted in Unilever agreeing to create 200 permanent jobs for casual workers at the Lipton tea factory in Khanewal, Pakistan. This is a landmark case that demonstrates the application of the Guidelines to the problem of precarious work.
30/10/2009
A negotiated settlement between Unilever and the IUF has resolved a long conflict over the rights of precarious workers at the company's Lipton/Brooke Bond tea factory in Khanewal, Pakistan.
The IUF made its submission to the UK NCP in March 2009 as part of a wider campaign. In what is now standard procedure, the UK NCP engaged an external mediator who played a pivotal role in negotiating a successful outcome.
This is first and foremost a victory for the IUF and the Khanewal workers' Action Committee. "The Khanewal agreement... is a great moment for hundreds of our members in Pakistan who will now take up permanent employment with Unilever," said IUF General Secretary Ron Oswald. "The IUF is committed to finding ways to begin resolving those challenges 'across the table' – a global table, rather than through a public fight..."
But it is also a victory for the OECD MNE Guidelines and specifically the UK NCP, which is now routinely using mediation for the resolution of cases and by far outperforming other NCPs. "This is an excellent outcome not only for workers in Khanewal, but also for workers worldwide," said John Evans, General Secretary of TUAC. 'It shows just how powerful the Guidelines can be when NCPs use the procedures available to them and provide effective mediation."
A review of the Guidelines is expected to take place in 2010. The OECD should be seeking to draw best practice lessons from this case so as to drive up standards and ensure that all NCPs reach the same level of performance.
TUAC congratulates the IUF and the UK NCP on this success.