global companies global union organization/action

Cardiff Symposium, January 9, 2008

1

GLOBAL COMPANIES

GLOBAL UNION ORGANIZATION/ACTION

The IUF’s Transnational Company Work&

The Chiquita Case


2

IUF GLOBAL STRATEGY

Organize the Company internationally If necessary fight them globally Build pressure for recognition of global union

organization“de facto” and/or backed by a signed agreement

Recognition leads to global “bargaining rights”normally in rights areas (around “access” to rights)

rather than in interest areas (local bargaining) Enhanced access to rights should mean greater

levels of union organization and stronger workplace labour standards


3

IN PRACTICE WHAT DOES THIS MEAN? A COUPLE OF CASES

#1: A tough company and yet the most progress:

The Coca-Cola System#2 Tough as well but with

less “global” impact:

Chiquita


4

20 Years of IUF Campaigns

1983 - 2003: Guatemala, South Africa, Pakistan, India, Peru, France etc. A series of conflicts - mainly victories…..but all temporary


5

2003 From History to Plan

1980’s - Global Campaign in support of Guatemalan affiliates

1990’s - Sporadic conflicts against background of corporate chaos and declining corporate prestige

2003-2007 - History turns to Plan:unions organize throughout the systemachieve recognition of the IUF and affiliates internationallyestablish a global negotiating table for rights & employmentavoid and win conflicts across this ”global bargaining table” -

always backed by capacity for conflict when this fails to deliver


6

The Challenges“Company” vs. “System”

Employment - company and “system”:TCCC employs 80,000+ peopleCoke system employs 600,000+ people“Top to top bottlers” (400,000+)Franchisees (<120,000)Labour Relations “in principle” handled by system bottlers -

risks mainly lie with TCCC

TCCC controls:Some major bottlers (large minority shares and board seats)Concentrate (the “formula”)Marketing and product strategy


7

2003-2005: Global Union Recognition March 2003 - First global meeting of CC unions (100+

unions in New York) 2005 agreement to recognize the IUF and meet with a

group of 5-8 IUF affiliates and senior Coca-Cola Executives twice yearly (normally in Atlanta)

De facto “contact group” - IBT and UFCW (USA), NGG (Germany), CAW (Canada), FESTRAS (Guatemala), UI ZENSEN (Japan), FAWU (South Africa), FATAGA (Argentina) led by IUF GS

2005 signed statement formalized global recognition and recognized that Coca-Cola workers have ILO, OECD and all related rights - though nothing on access to rights


8

Results of global recognition and the “Contact Group” meetings: 2005-2007

Reinforced union recognition and protection:RussiaSouth AfricaHaitiPakistan

Membership decline reversal/growth:RussiaPakistan (included public campaign to Accelerate

progress)Philippines (close to +1,000 in 2007)

Local union recognition “victories”:Pakistan: recognition of IUF federationIndia: recognition of national Coca-Cola union federationRussia: recognition of local and national union grouping

IndiaPhilippinesGuatemala


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The following companies have refused recognition despite tough conflicts and direct union/IUF approaches:

Nestlé (at global level - though concession by CEO in December 2007 and first meeting likely in February 2007)

Unilever (though first meeting now on February 1 2008)

Hilton InternationalPepsiCoKraft (at global level)

Where do we stand today?


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“Open Door” Companies

Companies that recognize the IUF:•Accor•British American Tobacco•Cadbury’s •Chiquita•Coca-Cola•Compass•Danone•Del Monte•Dole•Favorita (bananas)•Fonterra•Heineken

•Hershey Foods •Imperial Tobacco•INBEV •Japan Tobacco International•Masterfoods (Mars Incorporated)•Permira (Private Equity Fund)

•Bird Eye/Igloo•Galaxy Entertainment (Macau)

•Philip Morris International•SAB (now SABMiller)•Scandinavian Tobacco•Sodexho


11

THE CASE OF CHIQUITA

“In the banana sector the first company we will try to build an organization within and gain recognition from will certainly NOT be Chiquita - they are the biggest, the worse, the most brutal and the most anti-union. We’ll take on a softer banana giant first….”. Statement in 2000 from...

Ron Oswald, general secretary, IUF


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But research and experience revealed…...

Most vulnerableMost committed to internal changeMost prepared to invest in real rather

than cosmetic changeMost seriously committed at the very

top of the companyAnd…..Already the most unionized


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IUF and COLSIBA work together

COLSIBA presence on the groundIUF strategies and experience

negotiating with major companiesMutually reinforcing and comradely

relationship arising pragmatically out of historical necessity (pre IUF entry into an agricultural jurisdiction in 1994)


14

Conferences and Crises

1st International banana conference in Brussels in May 1998

IUF, COLSIBA, NGO Proposal to meet all banana companies in Miami in 1999 To discuss “industry crisis” and the future

Chiquita, Del Monte, Dole and Fyffes accepted invitation

Corporate strategy clearly differed…….


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Follow-up engagement

Costa Rica meeting in 2000Again all companies were invitedDifference in corporate strategies

become even clearer……Chiquita and Del Monte came - Dole

and Fyffes did not…..


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“Engagers” vs “Fakes”

Chiquita - clearly committed to engaging with unions locally, regionally and internationally

Del Monte - nervously following Chiquita’s lead…..but little corporate commitment

Dole - hiding behind SA 8000 certification “fig leaf” - no willingness to engage seriously with unions

Fyffes - felt little “reputational impact” and so dropped out


17

IUF/COSIBA AGREEMENT WITH CHIQUITA

On June 14 2001 the agreement was signed at the ILO and witnessed by ILO Director general Juan Somavia

Mechanism was set up to review the agreement

Limitations:RegionalPartial in terms of Chiquita employeesWeakest on “supplier” issues


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What we think has worked

Credence given to Chiquita’s “will to change” and much of its internal and external CSR work (though concerns still about its certification programme both environmentally and particularly “socially”)

Increased union membership in Colombia and Honduras

Protection of union recognition in Costa Rica, Colombia, Honduras, Guatemala and Panama

Partially effective conflict resolution mechanism prior to public campaigns


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Examples of what has worked…. Colombia - over 4,000 new union memebrs and

27 new collective agreementsHonduras - newly unionized farms- Buenos

AmigosUnion-management dialogue and recognition

protected in Guatemala, Panama and Costa RicaAgreement reached protecting rights in transfer

of Colombian operations in 2004Opening to Ecuador Chiquita supplier(together

with IFC pressure)


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What has not worked…….

Adequately dealing with suppliers - notably supplier contract issues

Breaking free of the Costa Rican “Solidarismo” structures and rights vacuum

Establishing robust and effective mechanisms and an environment for discussing tough “change at work” locally in dialogue between Chiquita country management and national and local unions


21

CSR Issues and limitations

Can substitute for real engagement (Dole and SA 8000 example) so IUF does not work with Companies on “Codes”

Limited credibility arising from:“Frauds and fakes” - not always the case of courseLack of constant presence on the ground - always risk

of “missing” things (Chiquita/RA and Colombia)Worker rights/social issues challenge most CSR and

NGO groupsLimited ambition………..IUF concerns about “access to

rights” rather than simple acknowledgment of them


22

Fair Trade Issues

IUF in principle very supportive of “Fair Trade” initiatives

Difficult transition from small producer systems to plantations and thus corporate systems

Dangers of FT parallel structures - notably the establishment of joint bodies to oversee “premium” use in unionized plantations

Union concerns about worker right and “union presence” weight in FT criteria and evaluation

global companies global union organization/action

Documents

results of global recognition

global union recognitionmarch

global levelwhere

global impact

iuf global strategyorganize

recognition of local

reinforced union recognition

global bargaining table