WRITTEN QUESTION E-3190/02

by Armando Cossutta (GUE/NGL) to the Commission

(8 November 2002)

Subject: TotalFina-Elf and forced labour

According to the International Confederation of Free Trade Unions (ICFTU), certain multinational companies, including TotalFina-Elf, have used forced labour in Burma. According to a 350-page report drawn up by ICFTU, in 2002 this French company paid the ruling military junta in Burma for the use of civilians removed by force from their villages for the construction of roads and other associated infrastructure connected with the completion of the Yadana gas pipeline. TotalFina-Elf denies any involvement in the incidents referred to, but ICTFU is convinced that, unfortunately, there is a genuine link between investment by certain multinationals in Burma and the increasing use of forced labour.

1. Is the Commission aware of these instances of exploitation?

2. Does the Commission agree that it is unacceptable for European companies to be involved in situations of this kind?

3. What measures does the Commission intend to take to protect the most fundamental human rights from abuse by European companies operating outside Union territory?

4. Does the Commission agree that this question involves not only an affront to human dignity, but also the infringement of the rules on fair competition?

5. Would it not be appropriate to impose a tax on all goods that Community undertakings produce outside the Union, thus bypassing the requirements of European social legislation?

Answer given by Mr Patten on behalf of the Commission

(16 December 2002)

The Honourable Member will understand that the Commission is not in a position to comment on a legal case which currently is under investigation in one of the Member States.

The Union has taken a number of measures, set out in its Common Position on Burma/Myanmar, in response to the political situation in the country, as well as to widespread human rights abuses, including forced labour.

The Common Position was first adopted in 1996 and has been strengthened on a number of occasions since. It imposes an arms embargo, as well as a ban on the export of any equipment that might be used for internal repression or terrorism, and suspends defence co-operation and all bilateral aid other than strictly humanitarian assistance. High level Government visits to Burma/Myanmar are also suspended and there is a ban on the granting of visas for entry into or transit through the Union to members of the military regime, members of the government, senior military and security officers and their families,

as well as tourism officials. Since April 2000, the list of persons covered by the visa ban has been published and a freeze has been imposed on funds held abroad by persons included in the list. The Common Position was recently renewed until 29 April 2003.

As regards trade relations, Community trade privileges, normally granted to developing countries, were withdrawn from Burma/Myanmar in 1997 because of forced labour. This also means that the country is not eligible to benefit from the Union's Everything but Arms initiative, launched in 2001, notwithstanding its status of least developed country.

The Commission strongly supports the International Labour Organisation's (ILO) role in upholding labour standards and the significant position it has taken on Burma/Myanmar in relation to the very serious violation of convention 29 on forced labour. The Commission in common with the Member States has supported the ILO in using to the maximum extend the procedures foreseen by the Constitution of the ILO as regards the violation of convention 29 by Burma/Myanmar (Article 33 of the ILO Constitution). The Commission has informed the ILO of the Union Common Position and the measures taken in that context. The issue of forced labour has also been raised with the Burmese Government on several occasions, during the Union Troika visits as well as in the Union-ASEAN dialogue.

The Commission, in common with the Member States, will continue to monitor the situation closely and, should the authorities in Burma/Myanmar fail to take the necessary steps in this respect, the Commission will be ready to propose further measures for consideration by the Council.

The Commission has adopted on 2 July 2002 a Communication on Corporate Social Responsibility (CSR). The respect of fundamental rights at work by European companies, wherever they operate, is an important issue in this Communication. The multi-stakeholders forum launched in October 2002 will also deal with the development and international dimension of CSR.

The Commission supports the application of the revised (2000) Organisation for Economic Cooperation and Development guidelines for multinational companies which are also covering the fundamental rights at work. The Commission has recently also strengthened its cooperation with the ILO in order to promote the application of core labour standards. In that context, a new exchange of letters has been signed between the Commissioner responsible for Employment and Social affairs and the Director general of the ILO, J. Somavia, on the 14 May 2001.