Labour Standards in MDB Lending
UNION ORGANISING IN INFRASTRUCTURE
May 2012
Labour Rights in Procurement and Contracts
Strategy: Link Labour Laws to the
construction project, through contract
documents, take labour costs out of
competition in bidding and bring our rights
on site.
Approach MDBs on infrastructure lending argue for mandatory Labour Requirements.
Labour Clauses in Standard Bidding
Documents and Conditions of Contract for
procurement. World Bank, IFC, EBRD.
FIDIC General Conditions of Contract for
MDB Construction
CICA Agreement (contractors international)
Achieving Decent Work through Procurement
ILO Convention 94 Labour Clauses in Public
Contracts
Modernise National Procurement laws and
practice to include labour clauses –
especially Public Works. Access for Trade
Unions.
Industry agreements, International
Framework Agreements and Collective
Bargaining Agreements
BWI/ ITUC Secondment 2004, rationale and
text for Labour Clauses in lending, SBDs.
2006 IFC, 2008 EBRD, World Bank 2006 and
2010.
Our Rights On Site
1. In 2010 the Multilateral Development Banks adopted
compulsory Labour Clauses in their General Conditions
of Contract for Construction. Excellent scope for further
agreements with industry partners this year. FIDIC,
Contractors, Ministries Public Works, Multinationals.
2. Ongoing work with the Multilateral Development Banks,
national governments, major contractors and engineers
to improve implementation and monitoring of Labour
Standards on infrastructure projects.
3. National Unions are identifying public infrastructure
projects and conducting targeted recruitment and
organising campaigns, with capacity building support
from BWI staff.
4. Focus is on Trade Union Rights, employment, wages,
working hours, Health and Safety and improved working
conditions.
New edition 2010
Multilateral Development Banks use the
General Conditions of the MDB Harmonised
®
Edition of the FIDIC Construction Contract
MDB Supplement to Contracts
Guide available
Conditions of Contract for Construction MDB
Harmonised Edition 2010
6.1 Engagement of Staff and Labour
6.2 Rates of Wages and Conditions of
Labour
6.4 Labour Laws
6.5 Working Hours
6.6 Facilities for Staff and Labour
6.7 Health and Safety (and HIV AIDS)
6.13 Supply of Foodstuffs
Conditions of Contract for Construction MDB
Harmonised Edition 2010
6.14 Supply of Water
6.20 Prohibition of Forced Labour
6.21 Prohibition of Child Labour
6.22 Employment Records of Workers
6.23 Workers’ Organizations:
6.24 Non-Discrimination and Equal
Opportunity
(IFC PS2 and EBRD PR2)
Roles and responsibilities
Banks lend to construction client and supervise
conditions of lending, including requirements for labour
and health and safety (H&S), based on national laws and
International Labour Standards.
Client puts the construction work out to tender, using
standards bidding documents, including labour and H&S
clauses. Client awards contract on price and
performance, and supervises the correct
implementation of labour and H&S standards.
Contractor must implement contractual obligations on
site and ensure employment and working conditions are
correct, including H&S and welfare, and that Trade
Union rights are respected.
Trade Unions engage in organising, representation and
Collective Bargaining to ensure good treatment of
workforce.
Appraisal: Employment Policies and Labour
Practices – Enabling? Inhibiting? ReviewRisks:
Labour Laws, H&S, application,
compliance and enforcement?
Respect for worker rights? Sector
commitment to labour rights and
Collective Bargaining?
Standard contracts? labour clauses?
Monitored and enforced? Priced by
contractor in the Bill of Quantities?
Technical and managerial capacity In
the sector?
Union Involvement
Implementation phase: The national
government is the borrower, responsible for
implementation of the project. The Banks’
role is supervision and monitoring.
The government prepares specifications,
and invites and evaluates bids from
construction contractors for the
procurement of works, goods and services
associated with the project.
This is a critical time for consultations and
negotiations about jobs, labour rights and
employment conditions.
Organising Strategy – construction phase
•Identify infrastructure projects – plan
calendar for recruitment and organising
activities
• Approach client on Labour Standards
commitments
•Approach Contractors to get access and
negotiate Collective Bargaining Agreement
(CBA) check IFAs
•Set up tripartite social dialogue meetings
with construction industry partners and
provide training
Organising Strategy – construction phase
•Recruit workers and organise on-site
representation shop stewards safety reps
works committee, H&S Committee.
•How can the unions push for better
compliance with Labour Standards and
guarantee rights in Collective Bargaining
Agreements? And Policies?
•Wages, working hours, health and safety,
welfare, transport, accomodation?
•Migrant workers, Casual Workers, Equal
rights, skills training, apprenticeships,
youth employment?
Bujagali Dam Uganda:
1. The first major infrastructure project funded by the IFC after
introduction of PS2 is Bujagali hydro electric dam in Jinja,
Uganda. In July 2007, the BWI starts the organising work
with the Uganda Building Workers’ Union before work
begins. IFC, Client, Contractor, construction industry.
2. Site meetings held, Safety Reps and shop stewards elected
and trained, the CBA negotiated with main contractor, H&S
committee and site committee established. 2,500 workers
recruited, Second and third annual Collective Bargaining
Agreements improved wages and benefits on 5 year
project.
3. Increased membership and new projects on the way.
4. Increased capacity to negotiate Collective Bargaining
Agreements. Wages, H&S, Welfare. Improved standards of
Collective Bargaining nationally in the sector. Improved
institutional relationships with construction industry partners.
Panama Canal and Panama Metro:
1. The Project Finance on the Canal is from the IFC, BID and
CAF, International Contractors form consortium to carry out
the work. Banks, Client /Government, Contractors, industry.
2. August 2010 organising work on the Canal begins, industrial
action stops work. BWI and affiliates support national
union.
3.
Meetings with contractors and client in November 2010
February 2011 and April 2011
4.
Site meetings Shop Stewards and Health and Safety
Representatives in place
5. Collective Bargaining Agreements achieved good results on
Wages, H&S, Welfare, transport, bonuses, but with strikes.
6. Panama Metro first meetings with FCC in February and
Odebrecht in April 2011 to prepare Trade Union rights
agreements on wages, H&S and welfare for the project.
Pan -European Roads and Rail Corridors:
1. The Project Finance is from the World Bank, EBRD and EIB
several International Contractors to carry out the work,
including Strabag and Alpine. New IFA with FCC.
2. June 2010 planning and mapping work begins, Organising
and recruitment drives underway in June 2011
3.
Campaigns on Labour Standards in the Balkans,
Macedonia ratifies C94, dialogue and protests in Serbia
4. Joint Platform for Regulating Rights of the Workers in
Collective Agreements in the Corridor countries. Covers
wages, working hours, health and safety and welfare
conditions.
5. 2012 ongoing: Site visits, recruitment and organising in
Croatia, Bosnia, Serbia and Macedonia.
Cambodia, Nepal and Indonesia:
1.
Cambodia rail infrastructure, funded by the ADB. The union
have recruited a large majority of the workers, have carried
out the union elections and have negotiated a new,
improved Collective Bargaining Agreement to cover all
workers on the project up to end 2013. 11.5% wage
increase. TSO French company, assistance to affiliate from
BWI and CGT.
2. Nepal Melamchi Hydro electric dam, funded by the ADB.
The unions have recruited almost one thousand people on
the Melamchi project (85% of all staff and workers). They
reached the first agreements with contractors two years
ago, work ongoing..
Next Steps
Step up organising on infrastructure projects
Capacity building work - national and regional
Whole of industry approach: Ministries, clients,
procurement entities, contractors, unions.
Demonstrate benefits of Labour Clauses approach to
Decent Work in the sector
Preparing Guidance with FIDIC for the Labour Clauses in
the General Conditions of Contract – need World Bank.
Include Pricing and bidding, compliance indicators
MDB Contract conference June 2011 and 2012organised
by BWI, FIDIC and EIC with MDBs.
Let’s Step Up The Action !
Potential for Trade Union recruitment in infrastructure
development is unlimited – if we have the capacity to
organise without frontiers and to support each other with our
practical knowledge and experience.
Trade Union Rights
•
•
•
How do we engage governments? Get Industry Agreements?
How do we best guarantee Trade Union representation in
Public Works projects or projects financed by the MDBs?
How can we get collective bargaining agreements with the
contractors at an early stage in the projects?
Cooperation between Trade Unions
•
How do we develop a more systematic, agile, approach to
exchanging information on how our companies behave,
providing copies of CBAs and other agreements, as well as
providing practical support measures union to union?