Fundamental labor rights and freedoms in the business sector in light of the UN Global Compact principles “From text to implementation in the GCC Countries” First Regional Conference On Corporate Social Responsibility in the Middle East Istanbul- Turkey 19-20 June 2013 Mohamad Arfan Alkhatib, Ph.D. Associate Professor of Law Ahmad Bin Mohammad College Doha – Qatar Alkhatibur@yahoo.com ‹#› Outline Fast Reminder of the UN Global Compact Principles Main Features of the GCC Labor Markets Compliance of GCC Countries with the UN Global Compact and CSR Principles Case Studies from KSA and Qatar. Findings and Recommendations. ‹#› The UN Global Compact: The Ten Principles Labor • Principle 12 • Principle 79 • Principle 36 Human Rights AntiCorruption • Principle 10: Environment ‹#› The UN Global Compact: The Pillars The Universal Declaration of Human Rights The International Labor Organization's Declaration on Fundamental Principles and Rights at Work The Rio Declaration on Environment and Development The United Nations Convention Against Corruption ‹#› Particularity of GCC Countries labor market Particularity in population Particularity in funds Particularity in employment The high pace of economic development in GCC Countries, and the lack of national HR led to a dominant non-national HR on the employers (corporates) as well as on the employees (imported labor) levels. ‹#› Population growth in the (GCC) Countries 2011 (total by year and million) 46 2011 44 2010 43 2009 42 2008 39 2007 35 2006 34 2005 30 2000 26 1995 21 1990 0 5 10 15 20 25 30 35 40 45 50 ‹#› Percentage of foreigners to citizens in the GCC Countries 80 72.95 68.6 70 79.3 76.83 66.97 61.89 60.82 60 50 40.25 40 30 39.18 33.03 31.4 27.05 23.17 20.7 20 10 0 Saudi Arabia Oman Bahrain Ratio of to foreigners % Qatar Kuwait Ratio of citizens % United Arab Emirates Total ‹#› National to non-national employment rate In the GCC Countries 100 91.62 90 82.2 74.54 80 75.78 70 60 66.5 62.25 51.03 48.97 50 37.75 40 25.46 30 33.47 24.22 17.8 20 8.38 10 0 Saudi Arabia Oman Bahrain Non-national employment rate Qatar Kuwait National employment rate (%) United Arab Emirates Total ‹#› Imported labor... but,,, Low cost labor Non-selective Unskilled Massive Temporary Illiterate Physical nature Difficult duties Domestic work… ‹#› The UN Global Compact Human worker = Human dignity The Universal Declaration of Human Rights 1948 International Covenant on Civil and Political Rights 1966 • First Optional Protocol 1966 • Second Optional Protocol 1989 International Covenant on Economic, Social and Cultural Rights 1966 • Optional Protocol 2008 ‹#› Role of Corporates (GCC) Countries All national and international corporates operates in accordance with national laws and legislations of these countries or dual conventions. In terms of universality of human rights, multinational companies (especially oil companies) do face several cases of legal duplication. ‹#› Worker human = Professional dignity ILO Declaration on Fundamental Principles and Rights at Work 1998 Freedom of association and the effective recognition of the right to collective bargaining. Elimination of all compulsory labor. forms of forced or C87, 1948. C98, 1949. C29, 1930. C105, 1957. C138, 1973. Effective abolition of child labour. C182, 1999. Elimination of discrimination in respect of employment and occupation C100, 1951. C111, 1958. ‹#› Worker human = Professional dignity ILO Declaration on Fundamental Principles and Rights at Work 1998 Freedom of association and the effective recognition of the right to collective bargaining. Elimination of all forms of forced or compulsory labor. Effective abolition of child labor. Elimination of discrimination in respect of employment and occupation ‹#› GCC Countries ratifications of the ILO Declaration on Fundamental Principles and Rights at Work of 1998 8 8 7 6 6 6 6 5 5 5 4 3 2 2 1 1 1 0 Total number C87 Freedom of Association and Protection of the Right to Organise Convention, 1948 C98 Right to Organise and Collective Bargaining Convention, 1949 C29 Forced Labour Convention, 1930 C105 Abolition C100 Equal of Forced Remuneration Labour Convention, Convention, 1951 1957 C111 Discrimination (Employment and Occupation) Convention, 1958 C138 Minimum Age Convention, 1973 C182 Worst Forms of Child Labour Convention, 1999 ‹#› Elimination of discrimination in respect of employment and occupation C111 Discrimination (Employment and Occupation) Convention, 1958 Arabic labor situation is not better • ALO C2 1967 concerning labor mobility and ALO C4 1975 for the same subject “modified”. • Countries exporting the labor did ratify them while non of the countries importing labor did ratify these conventions. • Exporting countries ratified. • Importing countries (GCC) did not. ‹#› Average of Salaries ($) in Bahrain 2011 by sector and by nationality 3205 3500 3000 2414 Citizens 2500 Foreigners 1587 2000 1500 568 1000 500 0 Public Sector Private Sector ‹#› Case Study (1): CSR Situation Across KSA A Study Conducted in 2009 by The National Commercial Bank - YouGovSiraj ‹#› Which of the following social causes are the most important for the benefit of the Saudi society ? (%) 61 62 60 58 55 56 53 54 52 50 48 Basic education for children Human rights support Rehabilitation of divorced Saudi women ‹#› CSR Revenue on Corporates (%) 70 61 57 60 50 34 40 31 30 20 10 0 Are considered to exhibit good business ethics Are trusted by people who deal with them Are perceived to be fair in rewarding employees Do not discriminate between employees based on nationality / gender ‹#› Case Study (2): CSR IN QATARGAS ‹#› Diversity and Equal Opportunity No difference is applied on the basis of gender, age or origin. Salary grades and basic salaries, including minimum amount paid, are the same for male and female employees. ‹#› Findings and Recommendations • GCC Countries are dealing with all issues of fundamental rights and freedoms at work in order to fully comply with the international labor laws and standards. Several challenges are being faced • Corporates, especially multinational, are to comply with international standards, and not to invoke national laws to evade respect. ‹#› Findings and Recommendations (2) • Business institutions, especially multinational, may form , as part of their social responsibility, effective units to promote CSR principles and practices in their hosting countries. • GCC governments are urged to finalize the ratification of all international conventions related to civil, political and socio-economic rights. ‹#› Thank you for listening Alkhatibur@yahoo.com ‹#›