### American Federation of Labor and C ongress of Industrial Organizations

Trade Union Advisory Committee to the OECD

15, rue Lapérouse

75016 Paris 0033(0)155373737
www.tuac.org

October 27, 2010

U.S. OECD National Contact Point Review U.S. Department of State E-mail: input@state.gov

Re: Review of the U.S. National Contact Point

Dear U.S. National Cont act Point Review Staff:

The American Federation of Labor and Congr ess of Industrial Organizations (AFLCIO) and the Trade Union Advisory Committ ee to the OECD (TUAC) welcome your

initiative to review the U.S. NCP. The OECD Guidelines for Multinational Enterprises have a potentially significant role to play in addressing deficits in global governance and improving standards of business conduct globally.

The creation of an effective, accessible a nd accountable U.S. Na tional Contact Point is essential in establishing the reputation of the U.S. Governm ent as a champion for responsible business conduct on the world st age. Moreover, in the context of the current Update of the OECD MNE Guidelines , it would send a strong signal of support for the transformation of the OECD MNE Guidelines into an effective international instrument for the prom otion of responsible business conduct.

We therefore urge the U.S. Government to show leadership and ambition and

ensure that the reform of the U.S. NCP provides for the following:

Resources: assign adequate resources to ensure that the NCP has sufficient levels of trained staff to support mediation and fact-finding;Letter to U.S. OECD National Contact Point Review October 27, 2010 Page Two

Performance criteria: develop NCP structures and opera ting procedures in line with the existing core criteria of visibility, accessibility, transparency and accountability. As regards the specific instance procedur e, ensure compliance with the additional criteria proposed by Prof essor Ruggie, UN Special Rapporteur on Business and Human Rights, of legitimacy, predictability, rights-com patibility and equitability;

Structure: involve relevant U.S. government agenc ies, including the Department of Labor, establish an oversight body involvin g the social partner s and other external stakeholders, and provide for a right of appeal;

Consultations: hold regular consultations, at least once a year, with social partners and other external stakeholders;

Parallel proceedings: develop guidance that requires pa rties to show that there would be prejudice to the par allel proceedings in order for a case to be rejected or suspended and require any such rejection or suspension to be subject to external oversight;

Mediation: offer the good offices of the NCP for mediation for the purposes of trying to resolve issues arising under the Guidelines;

Determination: where a party refuses mediation or mediation fails, carry out an assessment of the issues raised and, w here appropriate, make recommendations on the implementation of the Guidelines;

Final statement: in all cases accepted for review pub lish a final statement, including, where appropriate, recommendations on implementing the Guidelines;

Monitoring and follow-up: develop follow-up procedures , including reporting by all parties on progress made in implementing recommendations and the publication of a follow-up statement by the U.S. NCP describing the progress made;

Consequences: develop measures, together with procedures for using such measures, to preserve the in tegrity and the credibility of the Guidelines in cases where companies flout the Guidelines process or are involved in egregious violations;Letter to U.S. OECD National Contact Point Review October 27, 2010 Page Three

Timescales: incorporate indicative timescales in to the Procedural Guidance, while allowing for the extension of these timescales if all parties agree that it is in the

interests of the case to do so:

Initial assessment: within 3 months of submission;

Mediation: within 6 months of offering its good offices; Completion: within 12 months of receiving a case.

Finally, within the wider c ontext of the Update of t he OECD MNE Guidelines, we urge the U.S. Government to support mandat ory peer review, in line with OECD best practice, in order to help ensure that all NCPs operate to an acceptable level of performance.

Sincerely,

Richard L. Trumka John Evans President General Secretary

AFL-CIO TUAC

RLT/CF/ca