SECRETARY-GENERAL, INTERNATIONAL TRADE UNION REPRESENTATIVES, DISCUSS "GLOBAL COMPACT" AT HEADQUARTERS MEETING

Press Release
SG/2062
ECO/14

SECRETARY-GENERAL, INTERNATIONAL TRADE UNION REPRESENTATIVES, DISCUSS ‘GLOBAL COMPACT’ AT HEADQUARTERS MEETING

In a meeting today between United Nations Secretary-General Kofi Annan and representatives of the international labour movement led by the General Secretary of the International Confederation of Free Trade Unions (ICFTU), Bill Jordan, agreement was reached on the critical need for international cooperation in order to meet the challenges of globalization. Both sides stressed the need for trade and investment policies and other global economic developments to benefit working women and men, promote basic human rights at the workplace, and contribute to the eradication of poverty. It was agreed that global markets required global rules. The aim should be to enable the benefits of globalization increasingly to spread to all people, by building an effective framework of multilateral rules for a world economy that is being transformed by the globalization of markets. The meeting agreed that the Global Compact can contribute to this process, by helping to build social partnerships of business and labour.

Globalization has brought many benefits and improved overall aggregate efficiency. However, inequality has been rising, widespread unemployment continues to exist, and social exclusion of the poorest has become a critical challenge. The participants shared the view that insufficient attention paid to labour issues, the environment, poverty and social concerns has become a major challenge to the sustainability of globalization. This, coupled with a lack of adequate consideration paid to development, has led to the stalling of moves towards a new round of trade negotiations. The United Nations and its relevant agencies, particularly the International Labour Organization (ILO), have an important role to play in the search for solutions to this impasse, by reasserting the fundamental social principles that should underpin the globalization process, leading to shared prosperity, social justice and peace.

Labour leaders were in agreement with the United Nations Secretary-General that the Global Compact is part of the solution to the challenge of globalization, as it places the social dimension at the heart of the process by proposing nine principles which should inform ethical business practices, covering the areas of human rights, labour and environmental standards. Participants agreed that while governments continued to have prime responsibility for implementing internationally agreed standards, the novel feature of the Global Compact -– asking corporations directly to demonstrate good corporate citizenship by translating the nine principles into practice –- offered new opportunities to reconcile economic imperatives with social priorities. The principles outlined in the Compact rightly reflect a set of

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shared values agreed by the international community and enshrined in three basic instruments: the Universal Declaration of Human Rights; the Declaration of the International Labour Organization on Fundamental Principles and Rights at Work and Their Follow-up, which, in turn, draws on the commitments of the World Summit for Social Development in Copenhagen; and from the Rio Declaration of the 1992 United Nations Conference on Environment and Development (the “Earth Summit”).

Both sides welcomed the opportunity that will be provided in 2000 by the special sessions of the General Assembly on the follow-up to the Fourth World Conference on Women, held in Beijing, and the Copenhagen Summit and the United Nations Millenium Assembly, for governments to reassert their commitment to achieving effective social development and equality between men and women by creating the right enabling environment for sustainable growth with equity. This requires effective international cooperation, an open and fair trading and investment regime, respect for human rights, including fundamental workers’ rights and promotion of environmental standards, and renewed commitment to development. Markets do not exist in a vacuum. National markets are held together by shared values that balance the objectives of market efficiency with the imperative of social justice. As markets become more and more global, there is a pressing need to restore a balance between markets and social concerns at the global level. Private, voluntary initiatives, including social partnership initiatives, can make a positive contribution to this process.

Workers play a significant role in wealth creation. Their trade unions have a special contribution to make to the development of the Global Compact. Indeed, countries with strong trade unions and healthy industrial relations have higher growth, increased stability, more equity and better observance of human rights and democratic principles -– all of which contribute to achieving the principles in the Global Compact. Working with their business counterparts, trade unions can strengthen corporate social responsibility and help build the social dimension of globalization. Among international institutions, the ILO, with its tripartite structure and experience in employment and labour issues and standards, has a central role in informing this dialogue and working with all parties to the Global Compact.

The Global Compact is an instrument based on universal standards. It should foster dialogue with both sides of industry and civil society in a manner which encourages concrete measures aimed at promoting good corporate citizenship. It seeks to stimulate a healthy and productive public debate which will help balance globalization and make it more responsive to social and environmental needs.

In addition to Mr. Jordan, the trade union delegation was made up of: Neil Kearney, General Secretary, International Textile, Garment and Leather Workers’ Federation (ITGLWF); Fred van Leeuwen, General Secretary, Education International (EI); Ron Oswald, General Secretary, International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco, and Allied Workers’ Associations (IUF); and Gemma Adaba, ICFTU Representative to the United Nations.

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