Kulubekova Galiya Aidarovna (Кулубекова Галия Айдаровна)

L. N. Gumilyov Eurasian national university, Republic of Kazakhstan (Евразийский национальный университет им. Л. Н. Гумилёва, Республика Казахстан)

Tripartite declaration of principles concerning multinational enterprises and social policy as an instrument for international regulation of transnational corporations

Tripartite declaration of principles concerning multinational enterprises and social policy (MNE declaration) is an important document designed to regulate the activities of transnational corporations. It was adopted in 1977 by the International Labor Organization, which is the United Nations' agency dealing with labor issues. The principles laid down in this universal instrument offer guidelines to transnational corporations, governments, and employers’ and workers’ organizations in such areas as employment, training, conditions of work and life, and industrial relations [1]. Thus, the MNE declaration is “soft law” which is not binding document, it has no normative force for transnational corporations. Even so, the MNE declaration has certain value, as it is an international instrument fixing a coordinated approach of governments, employers and workers to regulation of transnational corporations' activities in the social and labor spheres.

The preamble of MNE declaration states the importance and significant role of transnational corporations in the economy of most countries and in international economic relations. At the same it notices that transnational corporations' operations might lead to abuse of concentrations of economic power and to conflicts with national policy objectives and with the interest of the workers. In this regard, the MNE declaration determines its purpose as follows: “to encourage the positive contribution which multinational enterprises can make to economic and social progress and to minimize and resolve the difficulties to which their various operations may give rise, taking into account the United Nations resolutions advocating the establishment of a New International Economic Order, as well as subsequent developments within the United Nations, for example, the Global Compact and the Millennium Development Goals” [2].

The MNE declaration is a document consisting of 59 provisions which are systematized as following: the preamble (provisions 1-7) and five sections, which are

1. “General Policy” (provisions 8-12). These provisions oblige all parties to whom a declaration is addressed to respect the sovereign rights of States, obey the national laws and regulations, to comply with the norms of national and international law.

2. “Employment”, including “Employment promotion” (provisions 13-20), “Equality of opportunity and treatment” (provisions 21-23), “Security of employment” (provisions 24-28). This section of the MNE declaration contains recommendations for transnational corporations in the sphere of employment. It is stated that transnational corporations shall endeavor to increase employment opportunities and standards, give priority to the employment of citizens of the host countries, be wiling to conclude contracts with national enterprises, eliminate any discrimination based on race, colour, sex, religion, political opinion, national extraction or social origin. Besides this transnational corporations shall endeavor to provide security of employment, such as income protection for workers whose employment has been terminated, etc.

3. “Training” (provisions 29-32). These provisions are related to development of national policies for vocational training and guidance, closely linked with employment, including encouragement for transnational corporations to participate in different programs and special funds.

4. “Conditions of work and life”, including “Wages, benefits and conditions of work” (provisions 33-35), “Minimum age” (provision 36), “Safety and health” (provisions 37-40). This section deals with wages, benefits and conditions of work, stating that transnational corporations shall provide the best possible wages, benefits and conditions of work, within the framework of government policies. Besides this, the section states that transnational corporations shall respect the minimum age for admission to employment or work, maintain the highest standards of safety and health, cooperate fully with international organizations, competent authorities, concerned with international safety and health standards, the representatives of the workers.

5. “Industrial relations”, including “Freedom of association and the right to organize” (provisions 42-48), “Collective bargaining” (provisions 49-56), “Consultation” (provision 57), “Examination of grievances” (provision 58), “Settlement of industrial disputes” (provision 59). The provisions of this section include several important points. First, transnational corporations shall observe standards of industrial relations not less favorable than those observed by comparable employers in the country concerned. Transnational corporations shall respect workers' right for freedom of association and the right to have representative organizations recognized for the purpose of collective bargaining, right to submit grievance without suffering any prejudice whatsoever as a result, and to have such grievance examined pursuant to an appropriate procedure. Moreover, transnational corporations shall seek to establish voluntary conciliation machinery to assist in the prevention and settlement of industrial disputes between employers and workers [3].

The text of the MNE declaration contains links to various conventions and recommendations of ILO, which set specific standards in the social and labor spheres. Besides this there is one annex to the MNE declaration, which contains list of 17 ILO Conventions and 24 ILO Recommendations, which are referenced in the text of the declaration.

Besides this there are two addenda to the MNE declaration. The first one contain the list of international labor Conventions and Recommendations adopted since 1977 which contain provisions relevant to the MNE declaration. The second addendum contain the interpretation and application of the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy should fully take into account the objectives of the ILO Declaration on Fundamental Principles and Rights at Work.

The nature of the MNE declaration is not legally binding. So, just like the above mentioned documents the MNE declaration is “soft law”, which principles could be followed by transnational corporations or states in case of their will. At the same time the MNE declaration is valuable due to fact that it contributes to the general trend of popularization of business conducted in accordance with ethical norms and attracts the attention of the global society to importance of transnational corporations' regulation.

BIBLIOGRAPHY

1. Data from official web site of ILO http://www.ilo.org/empent/Publications/WCMS_094386/lang—en/index.htm. Accessed on 12.12.2015

2. The preamble of the Tripartite declaration of principles concerning multinational enterprises and social policy (MNE declaration). Fourth edition. International labour organization. Geneva. 2006. available at http://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_ent/---multi/documents/publication/wcms_094386.pdf, accessed on 12.12.2015

3. Tripartite declaration of principles concerning multinational enterprises and social policy (MNE declaration). Fourth edition. International labour organization. Geneva. 2006. available at http://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_ent/---multi/documents/publication/wcms_094386.pdf, accessed on 12.12.2015