International: Wilkhahn signs worldwide employee rights agreement
Wilkhahn, a Germany-based furniture manufacturer with 600 employees worldwide, signed an international framework agreement in February 2009 on social responsibility and employees' rights, illustrating that such agreements are no longer the sole preserve of giant multinationals.
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International framework agreements
Wilkhahn
Free choice of work
Ban on child labour
No discrimination
Freedom of association, unions and employees' representatives
Occupational safety and health
Working hours
Remuneration
Environmental protection
Employment relationships
Suppliers and partners
Implementation
Reactions.
Key points
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International framework agreements
More than 80 multinational companies have signed a form of "international framework agreement" (IFA) on workers' rights and corporate social responsibility (CSR) issues with representatives of their workforces (in most cases a global trade union federation). The agreements generally commit the company concerned to observing recognised employment standards - often based on International Labour Organisation (ILO) Conventions - throughout their worldwide operations, along with a variety of other guarantees in areas such as pay, employment conditions, training and environmental protection.
IFAs, most of which have been signed since 2000, are thought to cover more than six million workers worldwide. So far, they have been signed mainly in large multinational companies with operations in numerous countries, including some of the world's biggest and best-known employers. Examples include G4S (UK, security services), ISS (Denmark, business services), Securitas (Sweden, security services), Bosch (Germany, engineering), Carrefour (France, retail), EDF (France, energy), France Télécom (France, telecommunications) and major automotive firms such as BMW (Germany), PSA Peugeot Citroën (France), Renault (France) and Volkswagen (Germany).
It is perhaps natural that large multinationals have been most likely to sign IFAs: for example, they are often the most "internationalised" companies, they may be the first to be targeted for IFAs by trade unions, and they may be particularly concerned with their global corporate image. However, there are signs that the IFA phenomenon is starting to spread beyond the top tier of firms. In today's increasingly globalised economy, even quite small companies often have operations in other countries. Management and/or employee representatives in such firms may see an IFA as a useful means of expressing and implementing CSR commitments, and ensuring the observation of workers' rights in all company operations and in supplier companies. Examples of relatively small companies with IFAs include Euradius (the Netherlands, printing) and Elanders (Sweden, printing). Now, Wilkhahn (Germany, furniture) has become probably the smallest company yet to sign an IFA.
Wilkhahn
Wilkhahn, headquartered in Bad Münder, Lower Saxony, manufactures office and conference furniture and has around 600 employees. It has manufacturing sites in Germany, Spain and Australia and distribution operations in 15 countries worldwide, along with licence partners in Japan, Morocco and South Africa. In 2008, company sales amounted to some €90 million, with markets outside Germany accounting for around 70% of the total.
As well as promoting itself as an exemplary employer, Wilkhahn states that it is committed to "the social and ethical responsibility which arises from the globalisation of the company and its markets", and to "ecological requirements". In the past it has expressed this commitment by, for example, signing up to the United Nations Global Compact in 2007, whereby companies accept a set of principles on human rights, labour standards, environmental protection and anti-corruption. A "self-declaration on corporate responsibility" adopted by the company in the same year states that: "In formulating and implementing its strategy on corporate responsibility, Wilkhahn actively seeks dialogue with its key [stakeholders]. In particular, Wilkhahn strives to shape the relationship towards its employees and their legitimate representatives according to the maxims of fairness in cooperation."
This dialogue led to Wilkhahn signing an "international framework agreement on social responsibility and promotion of employees' rights" on 13 February 2009 with the IG Metall trade union, representing the company's German workforce, and Building and Woodworkers' International (BWI), representing woodworking sector unions worldwide. Under the agreement, Wilkhahn undertakes to ensure employment and working conditions at its production sites and in its distribution companies that at least comply with ILO standards, and to conclude agreements with its licence partners and suppliers to ensure their compliance with these principles. The main provisions of the accord are as follows.
Free choice of work
Wilkhahn will not permit forced or compulsory labour, in line with ILO Conventions no.29 (forced labour) (external website) and no.105 (abolition of forced labour) (external website). Similarly, the company will not tolerate any form of bonded labour or prison labour. Employees will not be forced to surrender their passports, identity cards or valuables.
Ban on child labour
Wilkhahn will not tolerate child labour. Children will be employed only if they are over 15 years of age and at least over the age for completion of compulsory schooling, in compliance with ILO Convention no.138 (minimum age for employment) (external website). Children under the age of 18 will not be permitted to carry out any work which, by its nature or the circumstances in which it is carried out, jeopardises their health, safety or morals, as stipulated by ILO Convention no.182 (worst forms of child labour) (external website).
No discrimination
The company undertakes to guarantee equality of opportunity and to refrain from all forms of discrimination in respect of employment. Discriminatory practices will not be permitted towards employees on the grounds of gender, ethnic background, colour, religion, nationality, disability, political opinion (provided that such opinions are based on democratic principles and "tolerance vis-à-vis dissidents"), sexual orientation or age. This is in line with ILO Conventions no.100 (equal remuneration) (external website) and no.111 (discrimination in employment and occupation) (external website).
Further, the agreement forbids physical abuse, threats of physical abuse, unusual punishments or disciplinary measures, sexual or other harassment, and intimidation by the employer.
Freedom of association, unions and employees' representatives
Wilkhahn will recognise the fundamental right of all employees to establish unions, join unions and conduct collective negotiations, with reference to ILO Conventions no.87 (freedom of association) (external website) and no.98 (right to organise and collective bargaining) (external website).
Wilkhahn, trade unions and employees' representative organisations will "work together openly and honestly and in the spirit of overcoming conflicts in a constructive and cooperative manner". The company will take a positive approach towards the work of unions and be "open to their activities in respect of organised labour of the employees". Employees' representatives will not suffer discrimination and will have access to all workplaces, as necessary for the exercise of their representative functions, in conformity with ILO Convention no.135 (external website) and Recommendation no.143 on workers' representatives (external website).
Occupational safety and health
The company will guarantee a safe, hygienic and "wholesome" working environment, with reference to ILO Convention no.155 (occupational safety and health) (external website), taking into account the most recent findings in the area of occupational medicine and any special risks. This commitment will be implemented by a "company organisation for occupational safety", including the establishment of health and safety committees.
Working hours
Wilkhahn will ensure compliance with the relevant national regulations and collective agreements on working hours and paid holidays. Working hours may not exceed the maximum limits identified by "the latest scientific findings". All employees must have at least one day of rest per week.
Remuneration
Remuneration and the other benefits - such as social benefits and holidays - must take into account the principle of fairness and will at least correspond to national legal norms and "standard wages". All employees must receive written and comprehensible information about their remuneration and an itemisation of their wages in their own language before commencing employment. All employees must receive equal pay for equal work. Deductions from wages are not permitted without the express permission of the employees concerned, except where such deductions are based on national laws, collective agreements or company agreements.
Environmental protection
Wilkhahn's products, production processes and services will "display the highest possible degree of environmental friendliness". The protection of the environment and the improvement of living and environmental conditions is an "essential corporate objective" of all Wilkhahn businesses.
Employment relationships
With reference to ILO Recommendation no.198 (employment relationships) (external website), Wilkhahn will observe: the employer's obligations towards employees, as set out in national labour law; and the protection provided by "regular" employment relationships. Employment relationships must be set out in a written agreement. The company will endeavour to keep temporary agency employment to a minimum.
Suppliers and partners
Wilkhahn expects its suppliers and partners to apply principles comparable to those set out in the agreement and regards this as an important basis for a lasting business relationship. If suppliers and partners fail to comply with the contents of the agreement, Wilkhahn will examine the facts and take "appropriate measures in accordance with its possibilities". Acceptance of the agreement will be a prerequisite when Wilkhahn enters into business relationships and awards contracts. A requirement to disclose the relevant data will be incorporated into contracts with suppliers, and form part of Wilkhahn's assessment of suppliers. The staff responsible for purchasing at Wilkhahn will be trained accordingly.
Implementation
The management of each Wilkhahn business will be responsible for compliance with the agreement's principles, while Wilkhahn will appoint a manager with overall responsibility for implementing the accord.
To monitor and ensure compliance with the agreement, the following procedures will be put in place:
- All Wilkhahn businesses, along with suppliers and licence partners, will fill out a questionnaire disclosing information relevant to the issues covered by the agreement, at least every three years.
- Wilkhahn businesses will conduct an internal audit of compliance with the agreement every three years and report the results to the manager with overall responsibility for implementation.
- A monitoring committee will meet at least once a year to oversee compliance, made up of representatives of company management, Wilkhahn's German works council, IG Metall and BWI. The participants will receive all information necessary to carry out their role and Wilkhahn will meet the committee's costs. Every three years, the committee will conduct an external audit of a Wilkhahn business, a licence partner or a supplier, in which unions represented at the location concerned may participate.
Any disputes over the agreement's implementation that cannot be resolved at local level will be referred to the monitoring committee, which will examine the facts and circumstances and propose appropriate measures.
The agreement will be made available to employees at all Wilkhahn locations, in the language of the country concerned.
Reactions
Jochen Hahne, the managing director of Wilkhahn, said that the agreement is a further step in underlining the company's commitments to "social and ecological responsibility" and to partnership with its employees and their representatives, which is a "key prerequisite for our success". The accord also stresses these commitments to Wilkhahn's business partners and helps "embed" them in management thinking. Particularly in view of "current distortions", according to Hahne, it is necessary to "demonstrate the advantages of a sustainable and social market economy on an international level too".
He added: "For export-focused companies such as Wilkhahn and for economies such as Germany, it is of paramount importance to establish clearly defined value orientation[s] and rules as fast as possible. Business will then also become predictable. Apart from fundamental ethical convictions, this agreement is therefore [also] an act of economic reason [which] focuses on long-term success."
Berthold Huber, the chair of IG Metall, called the agreement "a joint acknowledgement of social responsibility in a global economy". At a time when "the downside of self-indulgent competition is obvious", the Wilkhahn accord reflects "a common interest in social values" and shows "the necessity of regulation in the interest of the employees". According to Huber: "The rights of employees in a global economy have to be respected everywhere. The agreement is a step in the right direction." He also praised the "excellent" procedures for monitoring compliance with the accord, which "clearly demonstrate the genuine interest of the company in implementing the agreement".
Anita Normark, the BWI general secretary, added: "Wilkhahn shows that globally active small and medium-sized companies can assume international commitments and respect international labour standards." The Wilkhahn agreement is the 13th IFA to be signed by BWI, and the fourth among Germany-based woodworking companies (the others being Faber-Castell, Schwan-Stabilo and Staedtler).
This article was written by Mark Carley, editor of European Employment Review.
European Employment Review 424 (EER 424) contents
