The ICFTU, the International trade Secretariats and their affiliates all over the world are actively promoting negotiations with business on codes of conduct that define the basic international responsibilities of business in respect of their employees and those of their subcontractors.

This document outlines an approach to such negotiations and offers model terms for codes and their implementation and monitoring. We recommend that all trade unions and nongovernmental organisations interested and involved in developing codes of conduct with business use these guidelines as a basis for their discussions with companies and industry associations.

The International Confederation of Free Trade Unions consists of nearly 200 national centres of independent and democratic trade unions in 137 countries and territories with a total membership of 124 million working men and women. Its World Congress meets every four years, most recently in Brussels in June 1996. The International Trade Secretariats (ITS) are international federations of unions grouped by industry or profession.

Codes of Conduct must be based on international standards universally applied

The main purpose of the ICFTU's model code is to promote the inclusion of core international labour standards defining human rights at the workplace in all codes of labour practice. Amongst these standards we emphasise trade union rights because their observance is critically important to the participation of working women and men in actions that directly concern their livelihood and conditions of work and to effective monitoring of codes by those they are intended to benefit. Codes of Conduct should not pledge to observe national law and practice where a superior ILO and or other internationally-recognised standard exists.

Codes of labour practice must include all core ILO labour standards

Core standards include the two key conventions on freedom of association (Convention No. 87 on Freedom of Association and Convention No. 98 on the Right to Organise and Collective Bargaining). They also include Convention No. 29 on Forced Labour, Convention No. 105 on the Abolition of Forced Labour, Convention No. 138 on the Minimum Age for Employment, Convention No. 100 on Equal Remuneration and Convention No. 111 on Discrimination in Employment and Occupation. When necessary, interpretation of the meaning of these standards should be based on ILO findings.

Codes of labour practice are not a substitute for inter-governmental cooperation

Codes of labour practice are not a substitute for international intergovernmental cooperation - but they can be one element in a long term strategy to achieve a comprehensive international framework for international business activity. Well-conducted campaigns for codes of conduct lead to increased public knowledge and acceptance of international labour standards, and put pressure on international business to respect basic standards of behaviour in the treatment of workers. Because Codes are brought about by pressure in consuming nations that result in applying standards in producing nations, they cannot by their nature overcome all the problems created by the lack of legal enforcement. Only multilaterally-negotiated agreements by governments can achieve the universal application of core labour standards. The ICFTU model code is intended to supplement the long-established ILO Tripartite Declaration of Principles on Multinational Enterprises and Social Policy.

Codes of Conduct are not a substitute for, nor alternative to, collective bargaining

The objectives of codes are best achieved when governments respect the trade union rights of workers. Standards, even when observed, cannot replace the representation function of trade unions at the workplace, nor do standards cover all of the legitimate concerns of workers. Codes of Conduct supplement action by workers themselves where their rights to join free and independent trade unions and to bargain collectively with their employer are secure and protected. Codes of Conduct should therefore not address issues that are more appropriate for collective bargaining, but contribute to the promotion of collective bargaining and help establish sound industrial relations practice.

Codes of conduct must be independently monitored

Codes of conduct will only be successful if they are implemented and independently monitored. In our view this is most likely to be achieved where secure and independent trade unions are able to work to apply the code in workplaces. A model agreement establishing an independent monitoring programme would assist in identifying both the principles and elements involved in monitoring programmes and the problems that would have to be resolved in order to make any programme work.

1 . (name of company) recognises its responsibilities to workers for the conditions under which its products or services are made and that these responsibilities extend to all workers producing products or services for (name of company) whether or not they are employees of (name of company).

2. Any workers producing products or services manufactured, sold or distributed by (name of company) must be provided with fair wages and decent working conditions, and the international labour standards established by Conventions 29, 87, 98, 100, 105, 111 and 138 of the International Labour Organisation must be observed.

3. (name of company) will require its contractors, their sub-contractors, principal suppliers and licensees to provide these conditions and observe these standards when producing or distributing products or components of products for (name of company). (name of company) will, prior to placing orders with principal suppliers, engaging contractors and subcontractors or granting licenses, assess whether the provisions of this Code can be met.

4. For the purposes of this codes the term contractor shall mean any natural or legal person who contracts with (name of company) to perform work or provide services. The term subcontractor means any natural or legal person who contracts with a contractor, as defined above, for the purpose of performing work or providing services related to or as part of an agreement with (name of company). The term principal supplier means any natural or legal person who provides (name of company) with materials or components used in the final products, or the final products, sold by (name of company). The term licensee means any natural or legal person who as part of a contractual arrangement with (name of company) uses for any purpose the name of (name of company) or its recognised brand names or images.

5. (Name of company) and its contractors, their subcontractors, principle suppliers and licensees involved in the production and/or distribution of products for (name of company) shall ensure that:-

EMPLOYMENT IS FREELY CHOSEN

There shall be no use of forced, bonded or prison labour (ILO Conventions 29 and 105). Nor shall workers be required to lodge "deposits" or their identity papers with their employer.

THERE IS NO DISCRIMINATION IN EMPLOYMENT

Equality of opportunity and treatment regardless of race, colour, sex, religion, political opinion, nationality, social origin or other distinguishing characteristic shall be provided (ILO Conventions 100 and 111).

CHILD LABOUR IS NOT USED

There shall be no use of child labour. Only workers above the age of 15 years or above the compulsory school-leaving age shall be engaged (ILO Convention 138). Adequate transitional economic assistance and appropriate educational opportunities shall be provided to any replaced child workers.

FREEDOM OF ASSOCIATION AND THE RIGHT TO COLLECTIVE BARGAINING ARE RESPECTED

The right of all workers to form and join trade unions and to bargain collectively shall be recognised (ILO Conventions 87 and 98). Workers representatives shall not be the subject of discrimination and shall have access to all workplaces necessary to enable them to carry out their representation functions. (ILO Convention 135 and Recommendation 143)

Employers should recognise the constructive contribution of trade unions to preventing exploitation and adopt a positive approach towards the activities of trade unions and an open attitude towards their organisational activities.

LIVING WAGES ARE PAID

Wages and benefits paid for a standard working week shall meet at least legal or industry basic needs and provide some minimum standards and always be sufficient to meet discretionary income.

Deductions from wages for disciplinary measures shall not be permitted nor shall any deductions from wages not provided for by national law be permitted without the expressed permission of the worker concerned. All workers shall be provided written and understandable information about the conditions in respect of wages before they enter employment and of the particulars of their wages for the pay period concerned each time that they are paid.

HOURS OF WORK ARE NOT EXCESSIVE

Hours of work shall comply with applicable laws and industry standards. In any event, workers shall not on a regular basis be required to work in excess of 48 hours per week and shall be provided with at least one day off for every 7 day period. Overtime shall be voluntary, shall not exceed 12 hours per week, shall not be- demanded on a regular basis and shall always be compensated at a premium rate.

WORKING CONDITIONS ARE DECENT

A safe and hygienic working environment shall be provided, and best occupational health and safety practice shall be promoted, bearing in mind the prevailing knowledge of the industry and of any specific hazards. Physical abuse, threats of physical abuse, unusual punishments or discipline, sexual and other harassment, and intimidation by the employer Is strictly prohibited.

THE EMPLOYMENT RELATIONSHIP IS ESTABLISHED

Obligations to employees under labour or social security laws and regulations arising from the regular employment relationship must not be avoided through the use of labour-only contracting arrangements, or through apprenticeship schemes where there is no real intent to impart skills or provide regular employment. Younger workers should be provided the opportunity to participate in education and training programmes.

6. Contractors, subcontractors, principal suppliers and licensees shall undertake to support and co-operate in the implementation and monitoring of this code by:-

• maintaining records of the name, age, hours worked and wages paid for each worker and providing (name of company) with relevant information concerning their operations;
• permitting inspection at any time of their workplaces and operations by
• making these available to approved inspectors on request;
• informing, verbally and in writing, the workers concerned of the provisions of this Code; and,
• refraining from disciplinary action, dismissal or otherwise discriminating against any worker for providing information concerning observance of this Code.

7. Contractors, subcontractors, principal suppliers and licensees found to be in breach of one or more terms of the Model Code of Conduct shall lose the right to produce or organise production of goods for (name of company).

8. Questions as to the interpretation of the meaning of the provisions of this Code shall be resolved according to the procedure outlined in the Memorandum of Understanding on the (name of company) Code of Labour Practice between (name of company) and (names of other parties to this agreement).

9. The provisions of this code constitute only minimum standards and conditions for the purpose of preventing exploitation. (name of company) does not intend, will not use, and will not allow any contractor, subcontractor, principal supplier or licensee to use these minimum standards and conditions as maximum standards or as the only conditions permitted by (name of company) or to serve as the basis for any claim as to what standards or conditions of employment should be provided.