Social dialogue

The term social dialogue includes all types of negotiation, consultation or exchange of information among representatives of governments, employers and workers, on issues of common interest. It may ultimately facilitate stable industrial relations. Because large oil companies operate globally, the issues of industrial relations are also globalized. Social dialogue increasingly operates or is expected to operate at the global level. 

Social dialogue is well-established throughout Europe. The European Works Council Directive was adopted in 1994. The Directive applies to European Union undertakings or groups, having at least 1,000 employees within the 15 Member States and at least 150 employees in each of at least two of them. There are more than 15 European Works Councils (EWCs) in the oil and gas sector, and they embrace a large number of employees. For example, ENI’s EWC represents just over 70,000 employees; that of BP Oil Europe about 15,000. Oil companies try to maximize this important vehicle for social dialogue by extending participation to non-EU regions as observers. While the agenda of the meetings varies from company to company, topics normally include industrial relations generally, the economic and financial situation of the company, business and investment plans, employment, training and occupational safety and health.

Formal social dialogue also takes place under Global Framework Agreements (GFAs). A framework agreement is not a collective bargaining agreement, nor is it intended to replace such agreements. Rather, it is a useful tool to increase transparency and promote Corporate Social Responsibility (CSR). Oil and gas industries have increasingly dedicated themselves to the application of the core ILO principles beyond national borders as a universal value for all operations. An example is Statoil, which was the first oil company to conclude a global agreement with the International Federation of Chemical, Energy, Mine and General Workers’ Unions (ICEM). The agreement is unique in many aspects. It includes reference to the ILO’s core Conventions and principles. It provides opportunities for global social partners to engage and resolve conflict before they become problems. The agreement applies to all activities worldwide no matter where the company has direct control. The agreement obligates the company and unions to meet once a year to review the implementation of the agreement. Similar agreements have followed in other oil, energy and chemicals enterprises.

Useful links/resources

• Global Framework Agreements (GFAs)
• Corporate Social Responsibility (CSR)