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Freedom of Association, Collective Bargaining Agreements

Where freedom of speech guarantees working conditions and innovation

Workers' rights and working conditions are often more likely to be respected where there is freedom of association and direct dialogue. Open communication and direct engagement with workers to resolve workplace and compensation issues induce a better cohesion between workers, a common sharing of objectives, buy-in to the company’s policies and a better working atmosphere. This is why freedom of association and collective bargaining are recognised as a fundamental human right.

Itcan take many forms, from an informal association to trade unions or workers’ councils. The management should facilitate the free election of employee representatives and/or workers councils, but it is up to the workers to establish or join trade unions or not. Through these forms of organisation, collective bargaining agreements can be negotiated. Employee representatives, workers' councils and trade unions should be protected from discrimination.

What is the risk in the supply chain?

Daily business activities can cause company leaders to lose track of what happens on the ground, in the factory, in the field. The management runs the risk to take decisions that are detrimental to working conditions because of the lack or the refusal of a reality check coming from the workers. This can lead to:

• Management abuse: without counterpower, some managers force working rythms or conditions that allow child labour / forced labour, excessive or unpaid working hours, unfair compensation, dangerous health and safety conditions and discrimination among workers.
• Weaker competition: Employeescan be a source of competitive advantage; not taking into account their opinions and their claims leaves space for internal dysfunctions and slows down continuous improvement of quality and innovation.
• Demotivated workforce: forbidding, prohibiting orimpeding trade unions or workers associations, or discriminating against syndicated workersposes a risk of losing valuable employees and provoking social unrest among the staff.

Fromboth a humanas well asa reputation perspective, a precautionary approach in potentially risky situations is essential.

What can I do to improve the Freedom Association and Collective Bargaining Agreements in the supply chain?

From a buyer’s perspective, it is sometimes difficult totrackworking conditionson suppliers' and subcontractors' premises. Audits, testimonies and confidential interviews (possibly outside the working place) area goodway to verify the reality on the grounds. Managers too should ensure the following:

• Enquire if the workers' rights are respected, as set forth in local laws: to elect workers representatives or to form or join a union of their choice and to negotiate collectively, and without interference from the employer.
• In countries where freedom of association is prohibited, decided by the State or limited (like in free zones), a company should facilitate all parallel means of freely elected representation, i.e leave the liberty to all its workers to gather, elect representatives and negotiate collectively without reprisal. To have an overview of these countries, please consult the ILO ratifications table (http://www.ilo.org/ilolex/english/docs/declworld.htm).
• Make sure workers are able to communicate openly with management regarding working conditions without threat of reprisal, intimidation or harassment, between themselves and with the management, in the working place.
• Verify whether there is no discrimination (in salary, treatment, career, dismissal) towards people engaged in or willing to adhere to a trade union, that these people are protected adequately in their function.

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