A4-0423/98

Resolution on the communication from the Commission to the Council on the trading system and internationally recognised labour standards (COM(96)0402 - C4-0488/96)

The European Parliament

- having regard to the communication from the Commission (COM(96)0402 - C4-0488/96),

- having regard to its resolutions of 9 September 1986 ((OJ C 255, 13.10.1986, p. 69.)), 18 November 1988 ((OJ C 326, 19.12.1988, p. 315.)),11 October 1990 ((OJ C 284, 11.12.1990, p. 152.)), 30 September 1993 ((OJ C 279, 18.10.1993, p. 16.)), 28 October 1993 ((OJ C 315, 22.11.1993, p. 242.)), 9 February 1994 ((OJ C 61, 28.2.1994, p. 89.)), 14 December 1995 ((OJ C 17, 22.1.1996, p.175.)), 15 May 1997 ((OJ C 167. 2.6.1997, p. 158.)) and 15 January 1998 ((OJ C 34, 2.2.1998, p. 156.)), calling for guaranteed minimum standards with regard to the following: freedom of association, freedom to engage in collective bargaining, working hours, the minimum age for employment, security of employment, industrial safety and inspection of working conditions and the introduction of a code of good conduct for European multinational undertakings,

- having regard to its resolution of 2 March 1995 ((OJ C 68, 20.3.1995, p. 49.)) on the European Union's priorities at the World Social Summit in Copenhagen in March 1995,

- having regard to the conventions drawn up within the framework of the International Labour Organisation (ILO) as a whole,

- having regard to Articles 7 and 8 of Council Regulations (EC) Nos 2381/94 ((OJ L 348, 31.12.1994, p. 1.)) and 1256/96 ((OJ L 160, 29.6.1996, p. 1.)) on the new Community system of generalised tariff preferences,

- having regard to Regulation (EC) No 1154/98 ((OJ L 160, 4.6.1998, p. 1.)), which came into force on 5 June 1998, introducing special incentive arrangements into the Community system of generalised tariff preferences,

- having regard to the conclusions of the WTO Conference in Singapore in December 1996 pointing to the need for close relations between the Secretariats of the ILO and the WTO,

- having regard to the US Model Business Principles introduced by the US Administration in 1996,

- having regard to the report of the Committee on External Economic Relations and the opinion of the Committee on Employment and Social Affairs (A4-0423/98),

A. whereas it is necessary to draw attention to the significance of social responsibility in today's world which is characterised by the globalisation of economic and financial activities and of trade,

B. whereas the objectives of the multilateral trading system produce a long-term positive development of trade and economic reforms in particular when a close link is seen between trade liberalisation, economic development and social progress,

C. whereas international trade plays an important role in the creation of prosperity in all parts of the world and whereas international trade should be one of the preferred channels for introducing social change in order to ensure the observance of labour rights,

D. whereas the number of children put to work, in appalling conditions, is increasing every year throughout the world,

E. whereas the European Union's action in this area will only be credible once its own record is irreproachable, especially as regards child labour,

F. having regard to the ILO Declaration of 17 June 1998 on fundamental principles and rights at work whereby all members, even if they have not ratified the relevant conventions, are under a duty, merely by virtue of belonging to that organisation, to observe the following principles:

- freedom of association and the right to engage in collective bargaining (Conventions 87 and 98);

- the elimination of all forms of forced labour (Conventions 29 and 105);

- the abolition of child labour (Conventions 139, 79 and 90);

- the elimination of discrimination in respect of employment and occupation (Convention 111),

G. having regard to the worldwide success of the March against Child Labour in May 1998,

H. having regard to points 20, 21, 22 and 23 of the Social Charter adopted by 11 Member States at the Strasbourg European Council on 8 and 9 December 1989 according to which the minimum employment age must not be lower than the minimum school-leaving age and, in any case, not lower than 15 years, any young person in employment must receive fair remuneration, and the working hours of workers under 18 years old must be limited,

I. having regard to Council Directive 94/33/EC of 22 June 1994 ((OJ L 216. 20.8.1994, p. 12.)) on the protection of young people at work according to which children of less than 15 years of age are not allowed to work except within the limited framework of cultural or sporting activities or in combined work/training schemes, children and young people at school may only work 15 hours per week on average outside school hours, and during the holidays this work may not exceed 8 hours per day or 40 hours per week, and night work is prohibited between 11 p.m. and 7 a.m. or 10 p.m. and 6 a.m.,

J. whereas unacceptable levels of child labour have developed in some Member States of the European Union; having regard to the alarming reports produced by many child welfare organisations denouncing the exploitation of the majority of the 2 million children with casual jobs in the United Kingdom and estimating that 4 out of 10 British children between the ages of 11 and 16 and 2 out of 3 between the ages of 15 and 16 are working, often outside the authorised hours, and that tens of thousands of children are working under unacceptable conditions in particular in the building and warehousing sectors,

K. having regard to the ILO's Programme for the gradual elimination of child labour (IPEC), which encourages governments to draw up and apply national policies and legislation complying with the international standards on child labour, to introduce programmes designed to prevent child labour and to encourage awareness so that action is taken with regard to child labour,

L. having regard to the tens of thousands of prisoners and political forced labourers whose labour is exploited worldwide,

M. whereas multinational undertakings can no longer evade their responsibility with regard to violations of labour rights committed by their subsidiaries or their foreign suppliers and whereas they are increasingly aware of their role in providing a model in the dissemination of improved social, health and environmental working conditions,

N. whereas it is necessary to incorporate in a global strategy the instruments for aid to investment in third countries financed by the Community budget (EC - IIP, AL-Invest, Asia-Invest, MED-Enterprise, MED-Partnership and CID for the ACP countries),

O. whereas in this connection a new Commission strategy should incorporate at the same time the European Union's international and development aid objectives and commitments, internationally recognised social and environmental standards and its legitimate interests in terms of reciprocity, employment and competitiveness,

P. whereas the affirmation of fundamental rights in the European Union treaties imposes obligations on both the developed and the emerging countries,

Q. whereas the liberalisation of world trade now calls for a similar global approach as regards social policy and environmental protection,

R. having regard to the essential role played by the trade union organisations and NGOs with regard to the introduction of codes of conduct for multinationals and to the complaints which they can submit both to the ILO and to the Commission's Committee on GSPs,

S. having regard to the essential part played by the ILO with regard to the observance of labour rights, especially by the Committee on Freedom of Association,

T. having regard to the prerogatives of the ILO's Committee on Freedom of Association which examines complaints of breaches of the principle of freedom to join a trade union, whether or not the countries in question have ratified the relevant conventions, complaints which can be submitted either by workers' organisations or employers' organisations in the country concerned or by international workers' or employers' organisations,

U. whereas since the WTO takes environmental issues into account, it will, in the long term, by virtue of its strengthened relationship with the ILO, be unable to avoid dealing with the issue of compliance with minimum social and trading standards,

V. whereas unilateral trade restrictions have a destabilising effect on the acceptance of global rules,

1. Recognises the fact that the United Kingdom has now accepted the Social Charter including recommendations for the protection of young people at work and urges further progress on this important issue and equally speedy ratification of ILO Convention 138 and the new convention on forced child labour;

2. Calls on Austria to conclude as rapidly as possible the negotiations for the ratification of ILO Convention 138; calls on Luxembourg, Ireland and the United Kingdom to ratify ILO Convention 111;

3. Calls on the Commission and the Member States of the European Union to work towards ensuring, possibly within the framework of the regular consultations held with the EFTA countries, that Switzerland and Iceland ratify Conventions 138 and 98 and Convention 138 respectively;

4. Calls on the Commission to take into account, in the case of the countries applying for membership of the Union, the state of ratification of the conventions forming part of the ILO Declaration on fundamental principles;

5. Calls on the countries of the European Union which are members of the ILO to insist that the Committee on Freedom of Association extends its prerogatives to the other conventions which form an integral part of the Declaration on fundamental principles;

6. Calls for stricter monitoring of the countries which have not ratified the conventions contained in the ILO's Declaration and for the annual report to contain not just one but all the conventions concerned;

7. Hopes that, following the example of Germany, Belgium, France and Luxembourg, all the Member States will play a significant part in the ILO's IPEC programme;

8. Congratulates the Commission on granting ECU 1 million in December 1997 to the IPEC programme for action against forced child labour in Pakistan and, as a result of this gift, enabling the European Community as such to participate in this important programme; calls on the Commission to continue to support the ILO initiatives aimed at combating forced labour and dangerous or forced child labour;

9. Calls on the Commission and the Council to give more definite political support to the ILO and in particular to its declaration of fundamental principles and rights at work and to do everything possible to ensure that genuine coordination is established between the WTO and the ILO, in the first place by links being established immediately between their secretariats as was decided at Singapore;

10. Urges that those links not be confined to mere information meetings and calls upon all the countries belonging to the WTO to ratify in due course the ILO Declaration on fundamental principles; hopes that this matter will be considered when a common document is drawn up by the two organisations;

11. Hopes that Article XX(e) of the GATT on prison labour will incorporate the ILO's Declaration on fundamental principles;

12. Welcomes the adoption by the Council in March 1998 of abovementioned Regulation (EC) No 1154/98 introducing special incentive arrangements into the Community Generalised Scheme of Tariff Preferences;

13. Notes, nevertheless, that the substantial erosion of the preferential margin accorded to the developing countries under the GSP as a result of tariff reductions following the successive rounds jeopardises, in the long term, the effectiveness of the special incentive arrangements;

14. Calls on the Council to do everything possible to apply these incentive arrangements without discrimination to all developing countries which benefit from tariff preferences including those which currently benefit from a zero rate; deplores at the same time the Council's rejection of a proposal to this effect by the Commission, and calls on the Council to take the proposal in question into account when the GSP is next extended;

15. Calls on the Council to do everything in its power to apply this incentive clause to the Andean and Central American countries when the GSP is next extended;

16. Hopes that the European Union will introduce this positive approach at the next round of WTO negotiations, if the issue of trade and labour standards arises, in the form of preferential treatment for States that comply with ILO standards;

17. Calls on the Commission and the EU Member States to advocate in the WTO decision-making bodies that, when assessing applications, compliance with minimum social standards in the applicant countries should be used as a criterion for acceptance into the WTO;

18. Welcomes the action taken by European social partners in favour of the introduction of codes of good practice in certain sectors such as textiles;

19. Calls on the Commission, particularly DG V, to take further-reaching action by proposing that a code of minimum conduct be drawn up based on the ILO declaration of fundamental principles and other minimum applicable international standards which could be ratified at will by European multinational undertakings; such a code would not at present be accompanied by sanctions, but undertakings entering into such a commitment would have their name mentioned in the Official Journal of the European Communities and on the Commission's Internet site; calls on the Commission to work in close partnership with representatives of business, trade unions and NGOs from North and South in developing and implementing these proposals; hopes that the DG V unit responsible for relations with the ILO will monitor this code via a network allowing regular consultation of the European Trade Union Confederation, UNICE and certain NGOs; calls on the Commission to inform Parliament of the results of these consultations;

20. Calls for a European initiative to combat child labour in the countries concerned by helping them to provide educational and vocational training opportunities for boys and girls;

21. Calls on the Commission to consider in its deliberations in particular:

- the criteria for intervention;

- the procedure for granting, and the amount of, such aid;

- the financing criteria;

22. Suggests that this initiative should be financed by appropriations from the Community budget and by contributions from public, private, trade union, trade and charity organisations in the Member States of the Union;

23. Approves the proposal that, within the framework of the 1999 budget, chapter B7-600 on Community measures to support non-governmental organisations will cover the setting-up of pilot projects to compensate families for loss of earnings due to their children no longer working;

24. Considers it essential that a social clause be included not only in the trade and cooperation agreements concluded by the EU with third countries but also in all financing conventions between the Commission and European undertakings benefiting from the various instruments to encourage investment in third countries;

25. Calls on the Commission to submit to it and to the Council by January 2000 concrete proposals for the implementation of the principles laid down in this resolution;

26. Instructs its President to forward this resolution to the Council, the Commission, the governments of the Member States, the ILO and the WTO.