EU: European CSR agreement in contract catering
The European-level social partner organisations in the contract catering sector have signed an innovative agreement on corporate social responsibility (CSR). Covering some 600,000 workers across Europe, the accord sets voluntary minimum standards in a range of employment- and business-related areas.
On this page:
EU-level dialogue in contract catering
Fundamental rights
Training
Health and safety
Food safety and hygiene
Relationship between social partners
Equal opportunities and non-discrimination
Working conditions and work organisation
Fair pay
Award of contracts in public procurement
Restructuring
Business relations and choice of suppliers
Fight against obesity
Implementation, monitoring and review
Comments
Resources
KEY POINTS |
The contract catering CSR agreement1 (on the EFFAT website) was signed on 31 January 2007 by the European Federation of Contract Catering Organisations (FERCO) and the European Federation of Food, Agriculture and Tourism Trade Unions (EFFAT).
FERCO brings together national associations of contract caterers from 12 EU member states (for example, the British Hospitality Association), whose members employ some 600,000 workers. It reports that around 30% of firms and other organisations have a contract with a contract catering company, and the sector has a turnover of some €22 billion across Europe.
Companies, local authorities, educational establishments, retirement homes, hospitals and so on are increasingly outsourcing their catering (for employees, students, patients etc) to external companies, and FERCO states that the sector now delivers around 6 billion meals a year in Europe, serving 67 million consumers a day. This represents a quarter of all meals taken outside the home, half of all meals taken at the workplace, over a quarter of meals at school and more than one-tenth of meals in healthcare or social sectors.
EFFAT represents 120 food, tourism and agricultural workers’ trade unions from across Europe, with a total of 2.6 million members.
EU-level dialogue in contract catering
The EU-level social dialogue between EFFAT and FERCO started in the late 1990s, although it appears to exist outside the formal sectoral dialogue structures recognised by the European Commission, which include a committee for hotels, restaurants and catering. The contract catering social partners have conducted a number of studies (on issues such as continuing training or collective bargaining) and agreed a number of joint texts over the years, including:
Most recently, “because of the social character of contract catering and the nature of its business” (as the agreement states), the dialogue has focused on CSR, especially its social aspects and employer/employee relationships. Following the European Commission’s formulation, the social partners define CSR as “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis”.
Discussions on the matter led to the drafting and signing of the CSR agreement, which aims to set voluntary minimum standards in a number of “suggested areas for integrating CSR”. In “pursuing continuous social development and the respect of fundamental rights”, the signatories will implement “exemplary and innovative initiatives aiming at the general improvement of working conditions in the sector”.
Through the framework provided by the agreement, EFFAT and FERCO recognise that CSR is becoming increasingly important and commit themselves to “pursue and demonstrate the overall sustainability” of the contract catering sector. Companies are “not only responsible for their products and services, but also for the conditions under which these are produced”. As CSR initiatives are “more likely to have a sustainable impact if major stakeholders are involved”, the planning, implementation and assessment of measures should be jointly undertaken by management, employee representatives and trade unions, according to national and/or local practices.
FERCO member companies, the accord states, comply with existing national, European and international regulations, including those resulting from International Labour Organization (ILO) conventions. Beyond these minimum standards, the aim of the agreement is to identify areas in which contract catering companies might consider, on a voluntary basis, undertaking CSR initiatives.
Given the voluntary nature of CSR, the agreement should be interpreted as an “inspiration source” and a basis for further discussion, and should encourage national industry associations and their member firms to undertake CSR initiatives. FERCO and EFFAT will, in the framework of their social dialogue, collect and disseminate examples of good practice and facilitate exchanges of experience among national social partners.
The “areas for integrating CSR” covered by the agreement are set out below.
The contract catering sector will comply with the principles and rights at work as defined by ILO conventions, the United Nations (UN) Universal Declaration of Human Rights6 (on the UN website) and European legislation. These include the 10 human rights, labour standards, environmental and anti-corruption principles of the UN’s Global Compact initiative7 (on the UN Global Compact website).
EFFAT and FERCO recognise that it is important to invest in the development of human resources, especially for a labour-intensive activity such as contract catering. Companies will implement the principles set out in the 1999 EFFAT-FERCO agreement on vocational training (see above ). Employers are encouraged also to apply these principles to temporary staff and the employees of subcontractor companies, by granting a right to be informed about vacancies and by specific measures to encourage workers to take part in training.
The signatories recognise the importance of health, safety and wellbeing at work. Companies will thus, while respecting EU and national legislation, implement policies ensuring health and safety for all employees and seek to anticipate new hazards by promoting preventive measures. Specific training programmes and safety procedures, focusing on the particular hazards linked to the contract catering sector, should be developed in all enterprises. Employees and their representatives should be fully informed on such programmes and procedures, and consulted according to national and/or local practices.
Companies in the sector will follow the principles set out in the 2000 EFFAT-FERCO joint declaration on food safety and hygiene standards. Particular attention will be paid to the proper communication of information on the expiry date of food products. The signatories will update a code of good hygienic practices and a training manual drawn up by FERCO in 1994–95.
Relationship between social partners
EFFAT and FERCO state that they recognise the importance for the development of the sector of a “constructive social dialogue, based on the principles of cooperation and consensus” between employers, employers’ associations, employees’ representatives and trade unions at all levels, which “takes into consideration the specificities” of contract catering. For this reason, they have jointly carried out a number of surveys and studies, and signed several joint texts (see above) and will continue to do so in the future.
Contract catering enterprises will abide by EU legislation, such as the Directives on national information and consultation (2002/14/EC)8 (on the EUR-Lex website) and on European Works Councils (94/45/EC)9 (on the EUR-Lex website), and seek “to continuously enhance the cooperation between the social partners, as a well-functioning social dialogue is a competitive edge”. Specific efforts should be made to reduce the staff turnover and to retain workers in companies.
In connection with EU enlargement, FERCO and EFFAT “express the wish that, with the assistance and support of the public authorities, a social dialogue can be established in the new member states”.
Equal opportunities and non-discrimination
EFFAT and FERCO encourage the social partners at all levels to promote equal opportunities and to work against all types of discrimination, by fully abiding with EU legislation on these matters and by implementing innovative measures at the appropriate level. The contract catering sector should ensure the “full integration of each employee in his or her working environment”, regardless of ethnic or national origin, colour, age, gender, disability, trade union or political affiliation, religion, sexual orientation or other distinguishing characteristics.
Enterprises should develop explicit policies against discrimination in recruitment, remuneration, promotion, training or termination of contract: “In general, the same regulations as laid down in law and/or collective agreements have to be applied to any worker at a given location.”
Working conditions and work organisation
The contract catering sector will fully respect EU legislation on working conditions, the agreement states. FERCO and EFFAT condemn any form of illegal or undeclared work, and support any initiative aimed at the eradication of this form of work in order to avoid unfair competition and “social dumping”. They also invite companies to be open to a better work–life balance.
Enterprises should assure their employees “fair pay in proportion with their position in the company and the hours effectively worked”, the accord recommends. Pay levels in the sector should at least meet the minimum rates provided for by branch or industry collective agreements and/or legal provisions. When no agreement or pay scale exists, wages should be enough to ensure that workers and their families have a decent standard of living as defined by the Universal Declaration of Human Rights and the ILO.
In order to avoid discrimination, the right of employees in similar conditions to receive equal pay for equal work (as set out in EU law and ILO convention no.10010 (on the ILO website) is recognised.
Award of contracts in public procurement
National contract catering associations are encouraged to promote the use of the 2005 EFFAT-FRECO “guide to the economically most advantageous offer”, which proposes a method for the awarding of catering contracts that take account of both quality and price.
Because “an open dialogue is a prerequisite for a climate of mutual respect and confidence”, employees and their representatives should be regularly kept aware of the situation of the enterprise, as well as informed and consulted on planned restructuring measures in due time, in order to avoid, or at least limit, any negative consequences of such changes on employment.
The transfer of contracts is a particular feature of the contract catering sector and companies will seek to safeguard employees’ rights in the event of such transfers, respecting the EU Directive on business transfers (2001/23/EC11, on the EUR-Lex website)
Business relations and choice of suppliers
According to the agreement, the European contract catering sector expects “socially responsible behaviour” from its suppliers. Suppliers are generally chosen on a “professional business basis”, but for major suppliers this also includes a “consideration of their CSR according to the provisions of this agreement”. The contract catering sector will thus help “circulate the concept of CSR at a wider level”.
The sector supports all European provisions aimed at counteracting fraud and corruption in international trade and, in the general context of business ethics, undertakes to comply with the Organisation for Economic Co-operation and Development (OECD) guidelines for multinational enterprises, (PDF format, 136.3K)12 (on the OECD website).
According to the World Health Organisation, the agreement notes: “Obesity and overweight have reached epidemic proportions on a world scale and the consequences of obesity make this disease one of the greatest challenges of public health for the 21st century.” Given the “multifactor nature” of obesity, this challenge requires “the involvement over time of all stakeholders and of society as a whole” in order to counter this rising trend and reduce morbidity and mortality attributable to obesity.
In this context, FERCO and EFFAT recognise the role that the contract catering sector can play and commit themselves to using their social dialogue as a platform from which to encourage their members to contribute to the promotion of a healthy diet and the prevention of sedentary lifestyles.
Implementation, monitoring and review
EFFAT and FERCO will invite their members to disseminate and discuss the agreement at national level. To ensure wide dissemination and “good understanding” of the agreement at national level, it will be translated into the various European languages.
EFFAT and FERCO members will be encouraged to report on examples of best practice developed by enterprises in relation to this agreement. These best practices will be assessed in periodic reports so as to ensure the follow-up of the agreement’s implementation. The reports will be discussed in the framework of the EFFAT-FERCO social dialogue and disseminated among national member associations.
CSR is an increasingly important issue in the European-level sectoral social dialogue, reflecting both national concerns and the attention being paid to the topic by the EU institutions, especially the commission. For example, joint texts on CSR have been signed by the sectoral social partners in: postal services (2005); banking (2005); electricity (2004); hospitality (2004); sugar (2004); and commerce (2003).
The contract catering agreement is notable, not least because the sector is a growing one, not necessarily always regarded as having “best” employment practices, and faced with specific issues such as food safety, public health, public procurement and numerous business transfers. In addition to “standard” CSR topics such as fundamental rights, equality/non-discrimination and fair pay, the agreement addresses: HR issues such as training, social dialogue, information and consultation, working conditions, work–life balance and dealing with restructuring; and sector-specific themes such as hygiene, the award of catering contracts and the fight against obesity. It also seeks to disseminate a CSR approach among the suppliers of catering companies.
This article was written by Mark Carley, editor, European Employment
Review.
European Employment Review
399 (EER 399) contents
