European Economic and Social Committee
REQUEST TO DRAW UP AN OWN-INITIATIVE OPINION
Requesting body:
Budget Group meeting:
Bureau meeting:
Subject:
1.
REX
Decent work in global supply chains
Background and objectives of the own-initiative opinion (Rule 29(2))
The Opinion would serve as a contribution by the EESC and European civil society to the
general discussion on decent work in global supply chains (GSCs) planned at the June 2016
International Labour Conference in Geneva. It would also contribute to the EU debate on the
subject.
It is triggered by the fact that an increasing amount of the world’s trade and investment occurs
through GSCs, which in turn leads to significant changes in the international division of
labour and trade flows between the countries, and to the structure of labour markets around
the world. GSCs can contribute to enterprise and employment creation and growth, and
promote skills development and the dissemination of knowledge and technologies to improve
performance and productivity. However, they can also create decent work challenges: for
example, poor and hazardous working conditions, non-standard forms of employment and
low wages. Therefore, based on research and evidence from different parts of the world, there
is a need to better understand and discuss how to maximise the potential of GSCs to generate
growth and productive employment, while at the same time promoting the application of
international labour standards and the realisation of decent work. Some sectors, including
automotive, electronics and TCLF (textile, clothing, leather and footwear) belong to the
leaders as regards the most developed and numerous GSCs, however, supply chains in
agricultural products, originating inter alia from ACP (Africa, Caribbean and Pacific)
countries or Latin America will become increasingly important as well.
The 2016 discussion at the ILC should also help to identify potential areas for further work,
including research, capacity building and technical assistance.
The EESC Opinion will also contribute to a broader debate on GSCs, ongoing in different
forums. The recently adopted 2030 Sustainable Development Agenda, as well as the "Addis
Ababa Action Agenda", the outcome document of the Addis Ababa conference on financing
for development of July 2015 acknowledge the role of trade and investment, as well as
integrating small and medium-sized enterprises, in particular from developing countries, into
regional and GSCs in supporting sustainable development and inclusive growth. The new EU
trade and investment strategy "Trade for all" adopted in October 2015 puts an emphasis on
strengthening Europe's place in GSCs and on the need for their responsible management.
EESC-2015-06322-00-00-TCD-TRA (EN) 1/5
EN
GSCs were also discussed by G-20 Trade Ministers in October 2015 (based on a report
prepared jointly by the OECD and the World Bank Group on SMEs and low income
developing countries in GSCs). In October 2015, G7 Development and Employment
Ministers adopted a Declaration on improving labour, social and environmental standards in
global supply chains and agreed to establish a Fund in 2015 supporting sustainable GSCs
respecting labour standards (with a European Commission contribution of EUR 3 million).
OECD continues work on guidance documents on responsible supply chains' management in
a number of sectors, such as minerals, agriculture or garment and footwear industry. The
incoming EU Dutch Presidency (the first half of 2016) also intends to put an emphasis on
sustainable GSCs and promotion of responsible business conduct, respect for human rights,
labour and environmental standards in EU policies, including in trade and development.
The discussion at the ILC will be guided by a report to be published in March 2016 by a
dedicated task force and will take account of the contributions from the ILO constituencies
(reflecting their interests, concerns and priorities), as well as case studies covering a wide
range of sectors and carried out to identify policies, good practices, programmes and tools
devised to promote decent work in GSCs, including good practices adopted and implemented
by multinational enterprises that make progress toward achieving decent work in their supply
chains.
The EESC Opinion could address all or some of the aspects, which will be addressed by the
ILO report and which will subsequently be discussed at the ILC. These include:
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2.
key structural changes, trends and drivers, as well as the economic dimension of GSCs
and their interlinkages, including their contributions to national and local economic
development;
the implications of GSCs (including gender-specific effects) on job creation, skills
development, distribution of employment, and working conditions, including wages,
working time and occupational safety and health; the effects of GSCs on the nature of the
employment relationship, as well as on collective bargaining and social dialogue; the role
of international labour standards
policies and good practices to promote integration of SMEs, cooperatives and other
companies into GSCs, and transitions to formality;
the roles and responsibilities of employers and workers at national and international
levels as well as of governments, including a government’s role in law enforcement.
Previous EESC work on the subject, if any
Some aspects related to GSCs, their responsible management, related opportunities and
challenges, respect for international labour and environmental standards and the role of SMEs
are covered by:
EESC-2015-06322-00-00-TCD-TRA (EN) 2/5
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3.
REX/443 Information Report Corporate social and societal responsibility as a lever for
action in the EU's partnership agreements (trade, investment and
cooperation/development), 17 September 2015, rapporteur, Ms Pichenot,
REX/410 Opinion Role for sustainable development and civil society involvement in
stand-alone EU investment agreements with third countries, 19 March 2015, rapporteur
Mr Peel
REX/441 Opinion Financing development – the position of civil society, 2 July 2015,
rapporteur Mr Voleš
CCMI/037 Opinion Value and supply chain development in a European and global
context, 25 April 2007, rapporteur Mr van Iersel
Compliance of request with the Committee's political priorities and/or links with
current European political developments of particular importance
According to the new EU trade and investment strategy "Trade for all" of October 2015, more
than 30 million jobs in the EU are supported by exports to third countries. This include over
600 000 SMEs employing more than 6 million people and exporting directly outside the EU,
and many more which are suppliers of bigger European exporters. At the same time, 80% of
EU imports are made up of energy, raw materials, parts, components and capital goods (like
machinery) serving for further manufacturing processes and also producing goods for export.
This interdependence with other economies and inclusion into the GSCs may further increase
as a result of the recently negotiated and implemented EU trade and investment agreements,
as well as negotiations at the WTO or with groups of like-minded WTO members (plurilateral
agreements). Moreover, according to the UNCTAD 2013 World Investment Report, around
60% of the global trade consists of trade in intermediate goods and services which are
incorporated in different stages of production.
A better understanding of GSCs operation, as well as their impact on the economy and labour
market should help to better harness their potential and mitigate any possible negative impact,
thus supporting the sustainable development, inclusive growth and creation of decent jobs in
the EU and partner countries. The EESC Opinion as a contribution to the ILO debate and the
EU's own reflection as part of implementation of the new trade and investment strategy,
would also support attaining other EESC priorities, such as supporting achievement of the
Sustainable Development Goals, promotion of decent work, social dialogue, respect for
international labour standards and responsible business conduct, as well as support for trade
and investment policy conducive to sustainable development.
4.
Arrangements for involving civil society organisations in the preparation of the opinion
Preparation of the Opinion would include organisation of a hearing in Brussels with
participation of EU business representatives, trade unions, NGOs, as well as other civil
society organisations (e.g. farmers) and international institutions (such as the ILO, OECD or
FAO) relevant for a discussion on GSCs and decent work in this context. Envisaged could be
EESC-2015-06322-00-00-TCD-TRA (EN) 3/5
invitations for private sector and other civil society representatives engaged in sectorial
initiatives on sustainable GSCs. This could include sectors, such as textile and garment,
financial sector, agro-commodities, palm oil or gold.
5.
Planned or envisaged institutional follow-up
The Opinion would be presented to the ILO, in the run-up to and during the June 2016 ILC,
as well as to the European Commission and the European Parliament. It could also be used in
a dialogue with governments and civil society representatives from partner countries in the
context of implementation of the EU trade and investment agreements, and discussion on
their impacts.
6.
Expected impact and potential added value of the opinion in the context of EU decisionand policy-making
The Opinion would serve primarily as the EESC and the European civil society contribution
to the ILO debate on decent work in GSCs. However, it would also contribute to the
discussion with the European Commission in the framework of the implementation of the EU
trade and investment policy and the new strategy in this area, in line with the Commission's
announcement of an enhanced partnership and dialogue with civil society, focus on
sustainable development, respect of core labour standards, and health and safety at work, as
well as responsible management of supply chains.
7.
Clear interest for civil society
There is a clear interest for European civil society in matters related to responsible
management of supply chains, respect for human rights and labour standards. In addition,
civil society organisations from partner countries, e.g. from Central America, have expressed
interest in a discussion with EU counterparts on supply chain management, requirements of
European customers and retailers, recognition of sustainable development practices of Central
American suppliers, as well as support for micro-, SMEs, and producers' organisations
(including cooperatives) from developing countries for their inclusion in GSCs to increase
their income and productivity, thus contributing to the fight against poverty and supporting
inclusive growth.
8.
Planned or envisaged communication activities to promote the own-initiative opinion or
information report
A wide-ranging programme will be drawn up.
EESC-2015-06322-00-00-TCD-TRA (EN) 4/5
9.
Financial estimates
Financial estimates:
– Cost centre:
– Participants:
9 members (Item 1004)
 1st study group meeting (1/2 day)
 2nd study group meeting + hearing (1 day)
... delegates (Item 1008)
... experts (Item 1422) Decision to be taken by the
Groups
2 other guest participants (Item 2542)
– Interpreting (Item 2548): total cost
Cost per slot x number of slots x number of interpreters
 1st study group meeting (1/2 day): Type of
interpreting + Interpretation DG or local
 2nd study group meeting + hearing (1 day): Type
of interpreting + Interpretation DG or local
– Room hire (Item 2000)
– Technical infrastructure (Article 214)
– Vehicle hire (Article 216)
– Mission expenses (Article 162) (... AD+ ... AST)
– Representation expenses (Item 2546)
– Expenses for water, coffee, etc. (Item 2540)
– Other (please specify)
TOTAL
_____________
EESC-2015-06322-00-00-TCD-TRA (EN) 5/5
€
REX Other
13 662
6831
6831
3 000
8 028
(€446 x 1 slot x 6 int.) = 2676
3/3 + Interpretation DG or local
(€446 x 2 slots x 6 int.) = 5352
3/3+ Interpretation DG or local
100
24 790