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Thuong Dinh Shoe factory in Hanoi, Vietnam further resources
documents
dodgy deals
companies
Labour Iron and steel plant in Wuhan, Hubei province, China (www.boston.com)
what is at stake
Protecting people in the workplace is a fundamental responsibility of companies and governments. Workers have the right:
-readmore- These basic conditions should apply to all workers, irrespective of race, gender or religion. Meeting these conditions helps contribute to sustainable human capital development. Respect for these rights can also contribute to the development and growth of democratic societies, and thereby help create a more favourable operating climate for business. Special attention to the position of women in labour relations is important. Empowerment of women contributes to the health and productivity of whole families and communities and to improved prospects for the next generation. The UN Convention on the Elimination of All Forms of Discrimination Against Women affirm women's rights to non-discrimination in education, employment and economic and social activities. The importance of Gender Equality in labour conditions serves as a framework for halving poverty and improving lives, which is underscored by its inclusion as one of the eight Millennium Development Goals. All businesses should ensure that workers have the right to be free of discrimination and abuse, to work in a safe environment, to associate freely with co-workers and representative organisations, and to earn fair wages and benefits. The bank's policy should ensure that it will only be involved in investing in companies which meet these criteria.
selected standards and initiatives
General The international standard setting body for labour issues is the International Labour Organization (ILO), the tripartite UN agency which brings together governments, employers and workers. By the end of 2006, the ILO had adopted 187 Conventions and 198 Recommendations covering a broad range of labour subjects. With the adoption of the ILO Declaration on Fundamental Principles and Rights at Work (FPRW) in 1998, the ILO identified eight of its conventions as "fundamental". These eight conventions address four subjects:
-readmore- Another crucial ILO document is the Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy, which was originally adopted by the ILO in 1977. In March 2006 the fourth, updated edition was published. The Tripartite Declaration addresses the responsibilities of corporations and their treatment of labour issues more specifically. In addition to re-affirming workers' rights to freedom of association and collective bargaining, and a ban on discrimination and forced labour, the agreement calls on corporations to:
The following declarations and principles endorse the four ILO fundamental principles and rights at work and the Tripartite Declaration:
Women Both the FPRW and the Tripartite Declaration call for protection against gender discrimination in the workplace:
The UN Convention on the Elimination of All Forms of Discrimination Against Women affirm women's rights to non-discrimination in education, employment and economic and social activities. Children Child labour refers to the employment of children at regular and sustained labour. States ratifying the Minimum Age Convention adopted by the ILO in 1973, have adopted minimum ages varying from 14 to 16. The UN Convention on the Rights of the Child supports the call for an abolition of child labour. Health and safety The employers' responsibility for health and safety of its workers is laid down in various international standards:
Supply chain issues Companies should have clear procedures for monitoring and supervision of the treatment of workers by their suppliers, and should specify its required labour standards in its contracts with suppliers. Supply chain standards have been developed in the FTSE4Good Supply Chain Labour Standards Criteria, SA8000 Standard, Fair Wear Code of Conduct, the FTSE4Good Supply Chain Labour Standards Criteria and the Fair Labour Association Code of Conduct. content of a bank policy
Like all companies, banks are expected to respect local, national and international law and to adhere to the international labour standards in all their spheres of influence. For banks, three spheres of influence are important, which need to be addressed separately in their policies on labour issues:
This report does not consider internal labor practices, as it focuses on the policies related to lending and investment banking services and to investments by its asset management division. The following elements should be incorporated in a bank's policy: essential elements
The bank will only invest in companies that:
additional elements
The bank will:
scores
how do we score this?
analysis scores labour
The 35 signatories of the UN Global Compact received one point because the issue of labour is part of the principles, but it does not require banks to verify whether the companies they invest in uphold the same principles. In general, banks are concerned about their own employees, but hardly consider the rights of their clients' workforce and they fail to develop strict criteria that clients should meet, or an engagement or disinvestment procedure when clients do not meet the standards. Clear investment policies on labour rights and working conditions are rare. Only twelve banks (of which ten have signed UN Global Compact) have developed their own policy on labour rights. These policies are often part of a position or statement on human rights or part of a social and environmental policy. Six banks adhere to the four subjects of the ILO Declaration on Fundamental Principles and Rights at Work (Barclays, Crédit Agricole, Crédit Agricole China Industrial Bank, ING, Intesa Sanpaolo and WestLB). Rabobank in its policy does not explicitly refer to the right to freedom of association and collective bargaining, but it does require adherence to labour rights from all clients' suppliers. These banks are all rewarded two points. None of the banks pay explicit attention to women's' rights and only Santander mentions the Tripartite Declaration in its policy.
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