Labour Standards in MDB Lending UNION ORGANISING IN INFRASTRUCTURE

May 2012

Labour Rights in Procurement and ContractsStrategy: 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.

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.

Our Rights On Site

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 responsibilitiesBanks 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?

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.

Bujagali Dam Uganda:

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.

Panama Canal and Panama Metro:

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.

Pan -European Roads and Rail Corridors:

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..

Cambodia, Nepal and Indonesia:

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.

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?

Let’s Step Up The Action !