Labour principles

Pooran C. PandeyGlobal Compact Network

India

Global Compact Network India

In the year 2000, with an aim to conjoin private sector activities with civil society initiatives, and for the establishment of an inclusive corporate sustainability in the global economy, a leadership platform with a global dimension – United Nation Global Compact was launched by the then UN Secretary – General Kofi Anan

The UNGC primarily operates on four fold realms – Human Rights, Labour, Environment and Anti-Corruption

10,700 participants including over 7000 businesses in 135 countries and 101 local networks

Seven Partners: Office of the High Commissioner for Human Rights (OHCR), ILO, UNODC, UNDP, UNIDO and UNIFEM

In taking forward this agenda of the UNGC in the Indian context, the Global Compact Society was launched in December 2000. And, on 24th Nov 2003 in New Delhi, it was registered as a legal entity and was named as Global Compact Network India –the Indian arm of UNGC.

Global Compact Network India (GCNI) is a platform, for businesses, private sector organisations, civil society organizations public sector and institutions. As a network, GCNI enables aligning of various stakeholders’ practices towards the Ten Universally Accepted Principles of UNGC

The Ten Principles

~Businesses should:

Principle 1: Support and respect the protection of internationally proclaimed human rights; and

Principle 2: Make sure that they are not complicit in human rights abuses

Human Rights

Labour

~Businesses should uphold:

Principle 3: the freedom of association and the effective recognition of the right to collective bargaining;Principle 4: the elimination of all forms of

forced and compulsory labour;Principle 5: the effective abolition of child

labour; andPrinciple 6: the elimination of discrimination in employment and occupation

Environment

~Businesses should

Principle 7: support a precautionary approach to environmental challenges;Principle 8: undertake initiatives to promote greater environmental responsibility; Principle 9: encourage the development and diffusion of environmentally friendly technologies

Anti- Corruption

~Businesses should:

Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery

Background of the labour principles

~ The Principles and Rights identified, in 1998, in the ILO Declaration comprise the labour portion of the Global Compact

~The principles identified in ILO Declaration are:

to promote and realize in good faith the right of workers and employers to freedom of association and the effective recognition of the right to collective bargaining;

to work towards the elimination of all forms of forced or compulsory labour;

the effective abolition of child labour; and

the elimination of discrimination in respect of employment and occupation.

Origin of the Labour principles

The four labour principles of the

Global Compact are taken from the ILOs

Declaration on Fundamental Principles and Rights at Work

This Declaration was adopted in

1998 by the International

Labour Conference, a yearly tripartite

meeting that brings together

governments, employers and

workers from 177 countries

The Declaration calls upon all ILO Member States to

apply the principles in line with the

original intent of the core

Conventions on which it is based

At the G8 Meeting in Evian, France, in 2003, the leaders of the industrialized world encouraged companies to work with other parties to implement the

Declaration

The United Nations Global Compact Labour Working Group

The United Nations Global Compact Board established a Labour Working Group in June 2008. It is co-chaired by the Secretary-General of the International Organisation of Employers (IOE) and the General Secretary of the International Trade Union Confederation (ITUC), and supported by the International Labour Office (ILO). It aims to:Raise the profile, relevance of, and respect for the four labour principles among UN Global Compact companies and networksHelp ensure a consistent approach is taken to the application and understanding of the four principles, drawing on ILO, ITUC, and IOE information and experienceDevelop tools, information exchange, and forums for UN Global Compact companies’ engagement on the four labour principles

ILO MNE (Multinational Enterprises) for companies

The ILO’s main instrument for promoting labour standards and principles in the corporate world is the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy (ILO MNE Declaration)

The ILO MNE Declaration is unique in this area as it was developed by representatives of governments, employers, and workers, and is the most comprehensive instrument in advancing the labour dimension of CSR.

The ILO MNE Declaration contains recommendations on how companies should apply principles deriving from international labour standards in the areas of general policies, employment promotion and security, equality of opportunity and treatment, training, wages and benefits, minimum age, occupational safety and health, and industrial relations.

It provides more detailed guidance on labour issues and a more complete picture of how companies can maximize their positive contribution to society, and minimize any negative impacts.

Global Compact Principle 3 (Labour)

Freedom of association implies a respect for the right of all employers and all workers to freely and voluntarily establish and join groups for the promotion and defence of their occupational interests

Workers and employers have the right to set up, join and run their own organizations without interference from the State or any another entity.

The right of workers to bargain freely with employers is an essential element in freedom of association

Collective bargaining is a voluntary process through which employers and workers discuss and negotiate their relations, in particular terms and conditions of work.

Global Compact Principle 4 (Labour)

Forced or compulsory labour is any work or service that is exacted from any person under the menace of any penalty, and for which that person has not offered himself or herself voluntarily

Forced labour is a fundamental violation of human rights The ILO estimates that at least 12.3 million people are

victims of forced labour worldwide, 80 per cent of which is exacted by private agents.

Uphold the freedom of association and the effective recognition of the right to collective bargaining

The elimination of all forms of forced and compulsory labour

ILO conventions provide the framework for national law to prescribe a minimum age for admission to employment or work that must not be less than the age for completing compulsory schooling, in any case not less than 15 years

The minimum age for hazardous work is higher, at 18 years for all countries

Companies should make efforts to eliminate all forms of child labour. Efforts to eliminate the worst forms of child labour should not be used to justify other forms of child labour

The complexity of the issue of child labour means that companies need to address the issue sensitively, and not take action which may force working children into more exploitative forms of work

Global Compact Principle 5 (Labour)

Global Compact Principle 6 (Labour)

Discrimination means when a potential candidate is treated differently or less favourably because of characteristics that are not related to his/her merit or the inherent requirements of the job

These characteristics commonly include in national law: race, colour, sex, religion, national extraction or social origin, sexual orientation (in some cases), age, HIV/AIDS, etc

Principle 6 allows companies to consider additional grounds where discrimination in employment and occupation may arise. Companies should also familiarize themselves with grounds prohibited under national legislation

The effective abolition of child labour

The elimination of discrimination in respect of employment and occupation

The relationship between labour principles and business

Global Compact labour principles are global principles, which, upon ratification by member companies, though voluntary, are transposed into companies’ operations

The Global Compact Principles bring international standards to companies and express them in the behaviour of business Although only member companies ratify principles and recommendations contain principles and valuable guidance which may also be relevant to non-member companies seeking to improve their workplace practices beyond legal compliance

Companies must respect national law in their efforts to advance the labour principles

Labour Laws in India

~ Indian Constitution safeguards human labour through Article 16, 19, 23, 24 in Chapter III and Article 39, 41, 42, 43, 43A, & 54 in Chapter IV

~ Over 50 labour laws in India

~ Most prominent laws are

The Child Labour (Prohibition and Regulation) Act, 1986

The Building and Other Constructions Workers’ (Regulation of Employment and Conditions of Service) Act, 1996

The Equal Remuneration Act, 1976

The Industrial Disputes Act, 1947

The Industrial Employment (Standing Orders) Act, 1946

The Maternity Benefit Act, 1961

The Minimum Wages Act, 1948

Continued

The Payment of Bonus Act, 1965

The Payment of Gratuity Act, 1972

The Payment of Wages Act, 1936

The Maternity Benefit Act, 1961

The Minimum Wages Act, 1948

The Trade Unions Act, 1926

The Payment of Wages Act, 1936

Unorganized Workers Social Security Act, 2008

The Factories Act, 1948

Labour issues and solutions in India

Too many labour laws

At least 50 at centre level and 100 at state level

Merge similar laws

Overlapping of authorities

Some labour laws come under the jurisdiction of the central government, some in that of state governments and the Concurrent List

Labour laws should be governed centrally

Many laws are obsolete

Few of them enacted more

than 100 years ago

Repeal out of date and

obsolete laws

Complex web of legislation

In 2012, there are around 15,000 disputes pending in the central labour courts and more than 500,000 at state level (MoL)

Establish fast track Labour

courts, increase

personnel

Inflexible laws for companies

Companies with over 100

employees have to take

permission from the

government

Makes room for more flexible

contracts in the labour market

Issues Description Solutions

Thank you