An initiative for the Globalisation of Rights

What is OBSERVATÓRIO SOCIAL (Social Observatory) It is an initiative from the main Trade Union Confederation in Brazil (CUT), in cooperation with DIEESE, CEDEC e UNITRABALHO. Our goal is to OBSERVE the behaviour of NATIONAL, MULTINATIONAL companies in regards to the fundamental RIGHTS at work.

FNV-Mondiaal – Netherlands The Social Observatory cooperates with the following institutions: DGB-Bildungswerk - Germany AFL-CIO – USA International Labour Office PSI – Public Services International LO – Norway Hans Böckler Foundation – Germany Oxfam – United Kingdom SASK – Finland

ABN Amro Bank Ahold/Bompreço Akzo Nobel (I e II) Bayer Basf Bosch Cargill (port) Embratel Honda (port) Light (port) Hartmann-Mapol Nestlé (port) Nokia Norsk Hydro Some previous reports and studies Aluminium supply chain (to be published) Parmalat Philips LG Philips Santander (port) Sara Lee (port) Shell Thyssen. Krupp Unilever (I e II) Wal Mart

DATA BASE COMPANY PROFILE (available only in portuguese) RESEARCH REPORT MAP OF PROBLEMS SOCIAL AND LABOUR BEHAVIOUR PUBLICITY WEB SITE ARTICLES REPORTS NEWS CLIPPING PUBLICATIONS MAGAZINE CD-ROM’S PRODUCTS

Research: references and methods

REFERENCES AND INDICATORS • Declaration on Fundamental Principles and Rights at Work (ILO) • Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy (ILO) • OECD Guidelines to Multinational Enterprises • UN Global Compact • Decent Work Concept – Decent Work Country Programmes – Four dimensions: • • Fundamental Rights Employment Social Dialogue Social Protection

REFERENCES AND INDICATORS • Norms were adapted for the evaluation of COMPANIES • We take into consideration the context, the laws, and the practices in Brazil • We elaborated indicators for 9 rights/themes (2 main blocks) • Plus one complementary block regarding Corporate Social Responsibility policies

INDICATORS Block 1: Fundamental Rights • Freedom of association and collective bargaining • Non-discrimination • Abolition of Forced Labour (supply chain) • Abolition of Child Labour (supply chain) Block 2: Work and Employment Conditions • Job creation • Decent wage • Decent working hours • Health and Safety at work • Employment and social protection Complementary block: Engagement, monitoring and transparency of the CSR policies

INDICATORS Example: Freedom of association and collective bargaining – how to measure? • Freedom of a worker to be unionized; • Unions representatives’ access to the company; • Respect to the right to strike; • Recognition of decisions aproved on assemblies; • Access to information about the company for effective negotiations; • Direct negotiations between company and unions

INDICATORS Example: Health and Safety at work – how to measure? • Participation of workers on the elaboration, aplication and monitoring of the mechanisms to improve working conditions; • Existence of clear information about the work environment and the risks to health and safety; • Programs on prevention and protection; • Number of accidents in the last years; • Medical center’s conditions; • Proper treatment of injured or ill workers

RESEARCH PROCEDURE: Participatory Methodology Ø Company Ø Trade Union / Confederation Ø Other representative groups Ø Monitoring group Documents analysis Workers’ opinion survey Ø Representative sample Ø Stratified samples Ø “Closed” questionnaire Ø Applied by researchers (or self-applied)

RESEARCH PROCEDURE: Open interviews Ø Managers Ø Trade Union Leaders Ø Members of CIPA (Internal Comission for Accidents Prevention) Ø Others Focal group – group interviews Report validation Ø Trade Union Ø Company Publication of the validated report Negotiation

Thyssen. Krupp Example

• Controlled 17 companies and 40 locations in Brazil 2002: • DGB and IGMETTAL visited the Trade Union office and two plants • Contacts with CNM (Brazilian Metalworkers Confederation) and CUT Example: Thyssen. Krupp 2003: • Setting of the research project • Social Observatory Europe Project – Exchange and European campaigns (Germany/ DGB and Netherlands/ FNV) • Negotiation with company management

Example: Thyssen. Krupp Research description: Ø Field research in two plants: Foundry (Barra do Pirai/ RJ) and Elevators factory (Guaiba/ RS) ØSample size: 492 of 1. 918 workers ØNumbers of managers interviewed: 10 from areas like Health and Safety, Environment, Human Resources, Industrial Relations ØNumbers of trade union leaders: 2 one from each city ØGroup: 6 researchers and 1 statistician ØTime: from July 2002 to June 2003 – five months of negotiation ØMain difficulty: HR staff close monitoring of workers interviewed

Example: Thyssen. Krupp Ø Main conclusions: • Bad work environment conditions in the foundry plant • Wages below the sectoral average Ø Germany-Brazil exchange: discussions about the report outcomes between trade unionists and management Ø Report publication provokes impact and headquarters reaction Ø Germany HQ management visits the plant Ø Trade Unions in Brazil develop a Company network (7 unions) Ø Company headquarters announces investments from 7 million euros for improvement of the work conditions in the foundry factory

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