EZA MAGAZINE
EZA PODCAST

Social dialogue in multinational companies in the building materials and in the construction industry

A conference entitled „Social dialogue in multinational companies in the building materials and in the construction industry” was organized by BIE Int. (Bouw-Industrie & Energie International) in cooperation with the Trade Union of Construction and Building Materials Industry Workers of Serbia and the Autonomous Trade Union of Road Maintenance Workers of Serbia on October 15 to 17 2017 in Belgrade with the financial support of EZA and the European Union.

The conference was part of the EZA special project for workers' organisations in the Western Balkans "Strengthening social dialogue – shaping European integration".

Participants of the conference were the representatives of branch unions from Romania, France, the Netherlands, Belgium, Croatia and Serbia.

At the Conference the state of social dialogue in different countries and multinational companies was discussed. Different tools for organizing and promoting a genuine social dialogue were presented and discussed. Particular attention was given to the case of LafargeHolcim that recently signed an agreement for a new European Works Council and that will sign a GFA including the installation of a global forum for social dialogue. In the set up of the program active participation was foreseen through group work and plenary discussions.

The following conclusions were adopted:

  1. Trade unions demand and expect from multinationals to provide decent work and social protection for their employees, right to organize, freedom of association and collective bargaining. A political framework promoting genuine social dialogue and strong and representative sectoral social partners are a precondition for the development of sustainable industrial relations and social dialogue. Participants expressed their readiness to further promote social dialogue at all levels, from company, via sectoral to national one.
  2. Strengthening social dialogue in multinationals will be further promoted and developed through :
  • strong and representative trade unions, with an active membership within targeted multinational companies
  • the further development of global and regional trade union networks within multinational companies
  • mutual trust and respect between trade union and employers' representatives,
  • unity and solidarity between trade unions across borders
  • legal framework that promotes a genuine social dialogue; in that sense the participants of the conference condemn the ongoing neoliberal attacks on trade unions and the institutions for social dialogue, especially –but not only– in Central- and Eastern Europe and in the Balkans.
  • the participants of the conference point out that the freedom of association and the rights for social dialogue and collective bargaining are enshrined within and protected by the ILO (core conventions), OECD guidelines on multinational companies and are regulated by the EU Directives on information and consultation of workers.
  1. Global framework agreements (GFA) and the OECD guidelines on multinational companies are a tool for promoting and respecting the ILO conventions
  • the participants agree that to engage in a genuine social dialogue trade unions need to work on achieving a better power balance („rapport de force“) in the relation between social partners; this demands strong and representative trade unions that can count on an active membership on the shop floor.
  • the participants of the conference expressed their readiness to fully use GFA and OECD guidelines on multinational companies as a tool for organizing workers and an entry point for further developing a genuine social dialogue. In case of infringements or other beaches to the principles laid down in the GFA the participating trade unions will bring clear cases to the table and actively use the complaint mechanism. The participants agree that it is essential to create and further develop regional and global trade union networks within multinational companies to build trade union power and enforce provisions guaranteed by the ILO conventions, GFA and OECD guidelines.
  • the participants stress that to make GFA work in practice, it is important to foresee an instance for control and enforcement. The participants welcome the creation of the LafargeHolcim Annual Conference, i.e. LH „Global Works Council“ that is foreseen in the LH GFA.
  • the participants stress the importance of the European Works Council (EWC) in setting up and developing regional and global trade union networks. The EWC can play an important role in these networks given that this body for transnational social dialogue within the EU is guaranteed and protected by EU legislation.
  • the participants stress the important role for the EFBWW (i.e. the EWC trade union coordinator), the BWI and the trade union organizations of the home country –where the head office is based– of multinational companies to promote and „animate“ the regional and global trade union network.
  1. The EU is the only region in the world with a clear legal framework that obliges multinational companies to organize transnational social dialogue, i.e. the European Works Council.
  • the participants of the conference are invited to participate actively in existing European Work Councils. Special attention should be given to the designation and/or election of EWC members. All too often EWC members are no trade unionists, not supported by the trade union or even „chosen by management“.
  • it is of great importance that the EWC and all its instances –eg. the select committee– can be representative also on regional basis. we need positive examples and role models from Central & Eastern Europe in the EWC.
  • the EFBWW organizes training for EWC representatives. It is important that EWC members  EFBWW has a very important role
  • when negotiating a new EWC agreement it is important to try and involve trade unions from accession countries, such as Serbia. This can be realised through foreseeing observer seats in the EWC.
  1. The sector of road building and road maintenance is a very specific subsector with specific regulations. The participants consider that it is a priority to further develop the Pan-European network for road building and road maintenance.
  • ACV BIE and CGT will organize a conference for the sector of road building and road maintenance in 2018. this conference will take place in Houffalize.
  • In Croatia a Chinese state-owned construction company is participating in the bidding of a large infrastructure project. The bid of the Chinese company is 40% lower than the second offer. The participants of the conference agree that Chinese construction companies want to penetrate the EU construction market and that is of the highest importance to follow this case very closely. The participants invite the Croatian trade union to send detailed information about this case to the EFBWW. The participants think it would be a good case for joint lobbying together with the Croatian and the European employer federations in the context of fair competition and creating a level playing field.
  1. STRABAG has a particularly bad reputation in Central & Eastern Europe and in the Balkans when it comes to salaries, working time and working conditions. Workers in this region have the feeling they are treated as second rated compared to workers in the home country and other countries in Western Europe.
  • the participants suggest that it would be a good idea to launch a campaign to push STRABAG to change its attitude towards workers and trade unions in this part of Europe.
  • the EFBWW has introduced a European project on promoting social dialogue, STRABAG is one of the targeted multinational companies in this agreement. The participants of this conference are invited to participate actively in this project. More information about this project will be sent out by the EFBWW.
  1. CRH is a target company for setting up of a trade union network
  • After the divestment of assets because of the merger between Lafarge and Holcim, CRH has become a very important regional and global player in the building material industry. CRH has a Euroforum in place since 1996. According to present day legislation the agreement and the practice of the Euroforum is well below minimum standards. It is a priority for the EFBWW and the participants of the conference to open negotiations with the company to revise the agreement, thus setting the standards that should permit a genuine social on European level.
  • In some countries in the EU and in the pan-European region, CRH has a very bad reputation on social issues. Actively blocking and/or undermining social dialogue and the role of the trade unions. Recently there have been severe problems and conflicts in Ukraine between the trade union and local management.
  • ACV BIE will take the initiative to organize a pan-European conference with trade unions present in CRH. The goal of this conference will be to map out trade union presence in CRH, to set up a regional trade union network in CRH and to agree on a campaign to push CRH to enter into negotiations to revise the existing Euroforum agreement and to change its attitude towards trade unions and social dialogue.
  1. Even though there is social dialogue, according to participants' statements there are also the following:
  • abuse of employees' rights through the non-payment of overtime work, usurping employees' free time meant for rest and family,
  • insisting that employees do various jobs due to which they are exposed to a huge risk of getting injured and are constantly in the state of alert and under stress,
  • fear of losing job destroys solidarity between trade unions and employees, consequently leading to the lack of collective action (strikes and protests),
  • workers are deprived of bonuses and share of profit, while teams of managers get bonuses worth millions as a prize for having implemented previously mentioned unpopular measures.

Through joint activities and exchange of experiences in global and regional networks, search for solutions for alleviating listed problems.

  1. The participants welcome the results of the conference and hope to continue these discussions and reflections on a structural basis. The participants express their will to have such meetings 2 times a year. The organization of such conferences depends on the availability of funding. ACV BIE will look into possible resources and project funding.
  2. The participants want to express their gratitude to the EU and EZA as well as EFBWW, ACV-BIE and CNV who have enabled financially and supported organizationally this conference.