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International Framework Agreements – a powerful tool for ensuring Core Labor Standards in a globalized world? Insights from Brazil

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Publication, 44. Friedrich-Ebert-Stiftung, São Paulo, (December 2012)

Abstract

Since 1980 we have witnessed a massive expansion of global economic activity through the “liberalization of trade” and the growth of investment and production driven by Transnational Corporations (TNCs). In many countries, a decline in trade union “control” over the national environment, a measure of which has been the increase of outsourcing, offshoring, flexibilization and casualization of work, has been one of the marks of this development. To keep up with the globalization of labor relations and to combat the unfettered international race to the bottom over labor costs trade unions are increasingly making efforts to develop cross-border approaches. International Framework Agreement (IFA) could be an important tool to meet the challenges of this new globalized environment. In contrast to the usually unilateral and voluntary character of corporate social responsibility (CSR), IFAs are based on a bilateral agreement, negotiated and signed as a policy document between TNCs and Global Union Federations (GUFs). But the agreements are only effective when their implementation is secured and closely monitored. This study therefore aims at evaluating the development and implementation of such IFAs within European TNCs in Brazil. What are the motives behind negotiating and signing such agreements? Who is involved in these negotiations? What contextual factors are relevant? Is there an added value in IFAs beyond unilateral and voluntary codes of conducts? What is their real impact at the company and plant level? These and other questions are guiding the research.

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