International Confederation of Free Trade Union (ICFTU) and International Trade Secretariats (ITS) Basic Code of Labor Practice

Origin.   The 111th meeting of the ICFTU Executive Board (Brussels, December 1997) adopted a "Basic Code of Conduct covering Labor Practices". The Code’s text was developed by the ICFTU/ITS Working Party on Multinational Companies in a process that entailed extensive consultations with various trade union organizations, as well as other individuals and groups.

Purpose. The Basic Code seeks to establish a set of minimum standards that should be included in all codes of conduct addressing labor practices. It promotes the primacy of international labor standards and respect for trade union rights. A central idea behind the Code is that labor exploitation and abuse cannot be separated from the repression of workers and therefore codes of conduct must incorporate freedom of association and the right to collective bargaining.   The Basic Code can assist trade unions that are negotiating with companies or working with NGO’s in campaigns involving codes of conduct. The Code’s provisions also may be adopted by a company doing business internationally.

Critical Content.   The Basic Code requires a company and its contractors, subcontractors, principal suppliers and licensees/franchise holders to ensure that:

1. All employment is freely chosen – bonded or involuntary prison labor is prohibited;
2. There is no discrimination in employment;
3. Child labour is not used;
4. Freedom of association and the right to collective bargaining are respected;
5. Workers are paid a living wage;
6. Working hours are not excessive;
7. Working conditions are decent; and
8. The employment relationship is established – that is, obligations to employees under labor or social security laws/regulations are not be circumvented.

Implementation.   Implementation and monitoring requires a company to apply the Basic Code to its own operations and the operations of its contractors, subcontractors, principal suppliers and licensees.   This means:

• Contractors, subcontractors, principal suppliers and licensees must provide the company with operational information, permit inspection at any time, maintain complete worker records, inform workers of the Code provisions, and refrain from discriminating against any worker for providing information concerning observance of the code.
• The company will terminate contractors, subcontractors, principal suppliers and licensees that breach the terms of the Basic Code.
• The company must establish a procedure to resolve questions about the Code’s meaning and its implications.

To visit this code in its entirety please visit:  http://www.icftu.org/displaydocument.asp?Index=991209513&Language=EN

1. April 2003