International Labour Organization

Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy

Origin

The Governing Body of the International Labour Organization adopted the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy in 1977.

Purpose

The Declaration is intended to encourage the positive contribution which multinational enterprises (MNE’s) can make to economic and social progress, and to minimize difficulties arising from their operations. It provides principles regarding the social aspects of multinational enterprises, for the use of governments, employee organizations, and MNE’s themselves.

Critical content

General Policies

MNE’s should obey national laws, respect international standards, honor voluntary commitments, and harmonize their operations with the social aims and structure of countries in which they operate .

Employment Promotion

Governments should promote full, productive, freely chosen employment.   MNE’s should endeavor to increase employment opportunities and standards in host and home countries; give priority to the employment, development, promotion and advancement of host country nationals at all levels; and promote employment through use of employment generating technologies and local sourcing arrangements.  

Equality of opportunity and treatment

All governments should promote equality of opportunity in employment.  

Security of employment

Governments should take suitable measures to deal with the employment impacts of MNE’s.   MNE’s should strive to provide stable employment and reasonable notice to government authorities when operational changes would have major employment effects. Governments, together with MNE’s, should provide some form of income protection for workers whose employment has been terminated.

Training

Governments should develop national policies for vocational training and guidance.   MNE’s should ensure relevant training is provided to all employees, to meet the needs of the firm and those of the host country.   Multinationals should also afford opportunities within the enterprise as a whole to broaden the experience of local management.

Conditions of work and life

In developing countries, MNE’s should provide the best possible wages, conditions of work (including health and safety), and benefits, adequate to satisfy basic needs and within the framework of government policies.   Governments should adopt policies ensuring that lower income groups and less developed areas benefit as much as possible from MNE activities.   MNE’s should provide upon request information concerning health and safety standards observed in other countries which are relevant to local operations.

Industrial relations

Workers should have the right to establish and join organizations of their choosing, and protection against anti-union discrimination.   MNE’s should allow collective bargaining, providing facilities and access to resources that will allow meaningful negotiation.   MNE’s and national enterprises should consult regularly with employees on matters of mutual concern.   All workers should have the right to submit grievances without prejudice, and to have them investigated.   MNE’s and national enterprises should work to develop resolution mechanisms to assist in the prevention and settlement of disputes.

Implementation

Implementation of these standards is on a voluntary basis.  

To visit this code in its entirety please visit:  http://www.ilo.org/public/english/standards/norm/sources/mne.htm

03. November 2003