home / course outline / general information / facilitators / materials / summaries / links
Session 1 / Session 2 / Session 3 / Session 4 / Session 5 / Session 6 / Session 7 / Session 8

ILO Triparte Declaration Summary of Selected Passages

This declaration, officially called the Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy, was approved by the ILO in 1977. It is one of the few internationally recognised standards designed specifically to control the conduct of transnational corporations.

It is not an ILO Convention and therefore does not have to be ratified by member governments. However, the principles in the Declaration should be respected by all international corporations and by the countries in which they operate.

Introduction

Transnational corporations, by virtue of their concentration of economic power and ability to operate beyond the capacities of local governments, can help develop countries both economically and socially. They can also abuse this power by operating in a way that conflicts with the workers' and country's best interests. Due to the size and complexity of their operations, TNCs can cause concern both in their home and host countries.

The Tripartite Declaration aims to encourage the positive side of international investment and to minimise the negative aspects.

The governments, workers, and employers should further this aim through laws and policy.

The Declaration applies to, but is not limited to, the following transnational enterprises: private and publicly-owned corporations which "own or control production, distribution, services or other facilities outside the country in which they are based".

General Policies

TNCs should respect the laws and customs of the host country in which they are operating. They should also respect internationally recognised standards, including the Universal Declaration of Human Rights and the corresponding international covenants adopted by the General Assembly of the United Nations. TNCs should honour all commitments they have made both to the host government and internationally.

The activities of TNCs should not conflict with the development policy and social aims of the host country. TNCs, host governments, and worker and employer organisations should consult together to make sure their policies are harmonious.

Transnational and local businesses should be held to the same standards regarding their treatment of workers and general conduct.

The governments of both the host country and the home country should be prepared to meet with each other regarding the conduct of the TNCs at the request of either government.

Employment

TNCs in developing countries should try to increase the availability of secure jobs and emphasise the long-term development of their enterprise. They should cooperate with the employment objectives of the host government.

Before a TNC begins its operations it should consult with the local worker and employer organisations so that its hiring plans are in harmony with local policies. Consultations should continue after operations have begun.

Citizens of the host country should be given priority in hiring and promotions.

When possible, TNCs should use technologies that create jobs. Tghey should also develop appropriate technology in the host country.

To increase employment in developing countries, TNCs should try to obtain parts and equipment manufactured by local businesses. They should also attempt to use local raw materials and promote the local processing of those materials.

TNCs should promote equal opportunity and non-discrimination but should also abide by government policies (such as the establishment of racial quotas) to correct historical patterns of discrimination.

Host governments should not encourage or require TNCs to discriminate when hiring or promoting workers.

TNCs should provide stable, long-term employment and should respect obligations and agreements concerning employment that they have made with host countries and worker representatives.

Governments together with TNCs should provide some form of support for workers who have been laid-off or fired.

Training

Governments should create a national policy for worker training. TNC training programmes should operate within this policy.

Training of employees by the TNC should be appropriate for both the enterprise and the overall development of the country. It should teach generally useful skills and provide opportunities for promotion within the enterprise. training should be designed in consultation with local government, worker and employer organisations.

TNCs in developing countries should participate in and provide funds for training programmes to improve the technical skills of workers. They should make their skilled personnel available for these programmes.

Conditions of Life and Work

Wages, benefits and working conditions in TNCs must be equal to those of other comparable businesses operating in the country.

TNCs in developing countries should offer the best possible wages, benefits, and work conditions within the framework of host government policies. They should at least support the basic needs of workers and their families. If the TNCs provide housing, medical care, or food they should be of "a good standard".

Governments should try to ensure that lower income groups and less developed areas benefit from the activities of TNCs.

Governments should require TNCs to respect ILO guidelines on safety and health in the workplace.

TNCs' health and safety standards should not only conform with those of the host country but should take into account their experiences in other countries.

TNCs should provide information on the safety and health standards they maintain in other countries to representatives of workers in the host countries. Upon request, they should also make this information available to worker and employer organsiations in all countries in which they operate. TNCs "should make known any special hazards and related protective measures associated with new products and processes".

TNCs should "play a leading role" in finding the causes and preventing the occurrence of industrial accidents.

TNCs should cooperate with international organisations in the creation of safety and health standards.

TNCs should cooperate with local health and safety authorities and worker representatives. health and safety should be part of agreements made between MNCs and worker representatives.

Industrial Relations

Workers for TNCs should have the same freedom to organise unions, federations or other groups as do workers for local businesses.

Governments should not suppress workers' right to organise as an incentive for TNC investment.

Governments should not restrict representatives of workers from other countries from visiting workers in the host country.

TNCs should allow worker representatives from every country in which they operate to negotiate with management.

TNCs should not threaten to move all or part of their operations in an attempt to influence negotiations with workers, nor should they transfer workers from other countries in order to influence negotiations.

TNCs should provide information about the operations of the company in order to negotiate fairly with workers.

Governments should provide information on the relevant industry to worker representatives to help achieve meaningful negotiations. TNCs should cooperate with government requests for this information.

TNCs should allow workers to express their complaints and problems to the appropriate authority without fear of reprisal.
Source: Field Guide to Labor Rights, by Jim Sugarman, Multinationals Resource Center/Essential Books, USA.

For problems or questions regarding this site contact [Alana Dave].
Technical problems and ideas contact [Technical staff].
This site was developed with financial assistance from the European Commision's Socrates Programme