EZA MAGAZINE
EZA PODCAST

Labour relations within multinationals and their subsidiaries

A seminar on “Labour relations within multinationals and their subsidiaries” was held on 18-22 May 2025 in Bucharest (Romania) organised by the CFTC (French Confederation of Christian Workers) in cooperation with EZA and funded by the European Union. 52 representatives of workers' organisations from Italy, Portugal, Romania, Bulgaria, Spain, Serbia, Germany, Cyprus, Moldova, Lithuania, Albania and France participated in the seminar.

Numerous employees in the EU work directly or indirectly for European or foreign multinational companies. Significant discrepancies arise from differences in legislation, corporate culture, economic development and political decisions. Experts and practitioners from a range of professional and geographical backgrounds first explained the various facets of the problems of multinational companies in a presentation based on their practical experiences in management, and then in dialogue with the participants.

The seminar enabled the attendees to reflect, compare different practices, make a diagnosis and discuss solutions.

The following themes were explored:

- The problems of multinational companies, presented by Joseph Thouvenel, Vice-President of EZA.

- Social experiences in a non-European multinational company, presented by François de La Rée Du Can, former CEO of Canon France and former Director of Canon Europe

- Decades of experience in an international corporation, presented by Jean-Luc Delenne, consultant and trainer in international labour relations.

- The impact of multinational companies on human rights, presented by Maria-Reina Martin, President of FIDESTRA (Association for the Training, Research and Social Development of Workers), Portugal

- The challenge of industrial relations within the international group, Veolia, by Olivier Carlat, Director of Development and Industrial Relations at Veolia

- A look at the establishment of multinational companies in their countries by Jovita Pretzsch, Vice President of LPSS (Lithuanian Trade Union "Solidarumas"), Lithuania, and Bilbil Kasmi, President of SAUATT (Independent Albanian Trade Union of Food, Agriculture, Trade and Tourism), Albania

- Political view of multinational companies in Romania by Francis Oscar Gal, State Secretary in the Romanian Ministry of Labour and Social Solidarity, Romania

- The view of Romanian employers of multinational companies, by Mihai Pasculescu, President of the Employers' Association of the Textile and Leather Industry, Romania

- Abuses carried out by certain companies: the example of child labour in the Congo, by Jean-Baptiste Pandzou, international expert

- What legal procedures exist against a multinational company? By Jean-Philippe Charpentier, expert from the CFTC

A panel discussion on best social practices in multinational companies included Veselin Mitov, international secretary of PODKREPA (Confederation of Labour) (Bulgaria), Joao-Paulo Branco, director of Base-Fut (Unitarian Front of Workers) (Portugal), Jorge Santana, former trade union representative of the CGTP (General Confederation of Portuguese Workers) (Portugal), and Bruno Ronsin, general secretary of the CFTC (France).

The representatives visited a French multinational company in Romania, where a meeting took place with employees of the Veolia water treatment plant and with Andreea Zoescu, the head of HR at this site.

Results

It became clear that the organisation of a multinational company varies from country to country. It is important to differentiate between multinational companies that have a direct control on production and those that have control through subcontracting, licensing, franchising or management contracts, which changes the nature of control and responsibility. It can be difficult to identify the owner or person responsible in certain multinational corporations, which makes the issue of social and environmental responsibility more complicated.

The participants discussed the positive and negative impacts of multinational companies in the economic and social context, and emphasised that a multinational company could have both positive and negative impacts depending on the context.

The responsibilities of the stakeholders and the importance of international regulation were the subject of lively debates, where participants specified the responsibilities towards workers and the countries in which the companies are based, and the need for regulation to enforce such responsibilities. This is nothing new, but the outcome of a long history.

The development of international law, notably since the 16th-century text "Protesta Civil", which proclaimed that every human being has fundamental rights, including the right to own land and the proceeds and benefits from such, which is a basic principle of international and national law.

Freedom of association and the right to collective bargaining based on European and international agreements are essential pillars for good regulation.

The responsibility of multinational companies extends beyond their direct employees and includes those who work indirectly for them; in this respect trade unions and non-governmental organisations are crucial allies in raising awareness of and combating abuses in the supply chain.

Key conclusions and resolutions

We must adhere to European guidelines and implement them. Directive 2009/38/EC on European Works Councils (EWC), aims to strengthen the right to information and consultation, improve the functioning of works councils, standardise regulations and promote European social dialogue. Directive 2001/23/EC (Acquired Rights Directive) on the transfer of employees, which protects the employment contract in the event of a transfer to a new employer.

We must raise awareness among teams regarding cultural, historical and religious differences in international working relations. Strengthen the predominance of the respective labour legislation applicable in various international contexts.

Consider the precise and appropriate use of terms in international dialogue, taking differences in meaning into account.

Expand networks of worker representatives to strengthen their influence on the management of multinationals.

We must address the persistent gap between the commitments declared by companies and the reality, criticise the lack of transparency and justification in certain transnational decisions, particularly by relying on European Works Councils and employee representatives, while anticipating the human and organisational impact of multinational companies.

We must urgently define and implement a practical strategy for defending our national and European interests against the major blocs such as the USA, China, India, Russia, etc. In real terms, we must therefore expand our industrial defence capabilities in a dangerous and uncertain world, without being dependent on non-European multinational companies.