WRITTEN QUESTION E-2024/98

by Laura De Esteban Martin (PPE) to the Commission

(30 June 1998)

Subject: Code of conduct for EU companies operating in LDCs

The Spanish Senate recently adopted a motion with a view to the establishment of a code of conduct in respect of the working conditions of workers employed by Spanish-owned undertakings in third-world countries, in order to combat the hyperexploitation of the workforce (e.g. by outlawing child labour and introducing a maximum working week). In addition, the European Parliament's Committee on Development and Cooperation has begun work on an own-initiative report on working conditions in Community undertakings carrying out their activities in LDCs.

How have these initiatives been received by the Commission?

Does the Commission intend to submit a proposal for a code of conduct in respect of working conditions in undertakings based in the Member States carrying out their activities in LDCs?

Does the Commission consider it desirable to include this subject as an item in the post-Lomé negotiations which are due to begin in September 1998?

Answer given by Mr Pinheiro on behalf of the Commission

(24 September 1998)

Improving living and working conditions in the developing countries has always been a concern of the Commission, which follows with interest the various initiatives under way in the matter and values, in particular, the efforts made to draw up voluntary codes of conduct. The Commission, which is involved in the efforts of the Organisation for Economic Cooperation and Development (OECD) to revise the guidelines for multinational enterprises, is trying to foster a coordinated approach by the Member States and the Commission in this sphere. It nevertheless believes it vital that such issues be incorporated into the developing countries' own legislation

Community policies address this issue from various angles. The social incentives recently introduced into the scheme of generalised tariff preferences are just one example. This scheme allows further preferences to be granted to beneficiary countries effectively applying the basic labour rights enshrined in International Labour Organisation (ILO) Conventions Nos 87, 98 and 138. These arrangements amply reflect the Commission's chosen strategy of positive incentives in the sphere, the aim being to treat labour issues as aspects of development cooperation policy rather than the protectionist means of coercion clearly rejected at the Singapore ministerial conference of the World Trade Organization (WTO).

Community policy also encompasses a wide range of activities likely to help defend labour rights, notably support for trade unions and grants in the social sectors. Moreover, all cooperation agreements between the Community and developing countries now expressly cite commitments made at the Copenhagen social development summit alongside human rights and democratic principles. They include not only agreements with developing countries in Asia, Latin America and the Mediterranean region but the future partnership agreement with the African, Caribbean and Pacific (ACP) countries, which, according to the negotiating directives adopted by the Council on 29 June, must specifically mention respect for fundamental labour rights reflecting the principles set out in the relevant ILO conventions.

With more specific reference to future relations with the ACP countries, the negotiating directives address the issue of respect for fundamental labour rights on a number of levels. Outside the Preamble, the Community's development support will include backing for labour-market policies and institutions, and in particular the introduction of legislation guaranteeing workers a suitable level of protection, respect for fundamental labour rights and the improvement of health and safety at work. Similarly, Community operations under the investment facility for promoting the development of enterprises in the ACP countries must take express account of ILO standards. Lastly, the Community negotiating directives require the economic and trade provisions of the agreement to refer to international conventions on fundamental labour rights and promote cooperation in that field.

The machinery needed to give substance to these guidelines will need to be defined in the course of the negotiations and partnership with the countries concerned.