Geneva, 8 - 12 May 2000
| The Tripartite Meeting on the Social and Labour Impact of Globalization in the Manufacture of Transport Equipment, |
| Having met in Geneva from 8 to 12 May 2000; |
| Adopts this twelfth day of May 2000 the following conclusions*: |
General considerations
1. By any economic, social or labour measure the transport equipment manufacturing (TEM) industries are important for many economies. Through constant innovation to increase the ease with which people and goods can be transported, the TEM industries may have done more than any other to improve the quality of life. The automobile industry, in particular, is considered by many governments to be a barometer of economic performance. In good times it is an engine of economic growth which can benefit all stakeholders. The TEM industries have been going through a process of rapid change over the past decades. Automobile production and consumption are concentrated in industrialized countries, therefore more should be done to spread the benefits of both more equally, to develop appropriate TEM industries in developing countries and more affordable and ecologically sustainable means of transportation. Efforts should be made to increase purchasing power of all consumers and thereby increase demand. This will help to more fully utilize capacity and create quality employment.
2. The TEM industries are capital-intensive and highly dependent on research, development and design (RD&D). Furthermore, they are subject to swings in consumer demands, business cycles, government policies and exchange-rate fluctuations which impact on the TEM industries and, ultimately, on the number of jobs generated or retained. In this respect, governments are called upon to pursue policies conducive to economic growth and stimulating demand in a sustainable and equitable manner and to mitigate the effects of economic fluctuations. Employers= and workers= organizations (1) should have consultations and negotiations, where appropriate, on how to accomplish these policies.
3. The diverse structures of the TEM industries make it clear that there is no single solution that could apply to the issues that were discussed. Appropriate solutions should be negotiated to fit local situations and cultures, where appropriate between the social partners, or on a tripartite basis. There were, however, important lessons to be learnt from others= successes and failures and information on these should be collected and disseminated. The importance of lifelong learning to maintain and strengthen the employability of workers in the TEM industries was fully recognized. Although women represent at least 50 per cent of the users of transport equipment, their involvement in its manufacture is still very low. Efforts are desirable to increase their hiring and participation rates at all levels. Any discrimination in the workplace which impedes the full participation of women should be removed.
Employment implications of consolidation and change
4. Although there has been much publicity about the current wave of mergers and acquisitions, most of the existing companies have been steadily growing over the past century through a series of national mergers and acquisitions. Many TEM companies, particularly from the automobile industry, are entering into international strategic alliances. Therefore recognizing that the process of globalization in the TEM industries will continue in the twenty-first century, governments, employers' and workers' organizations have to make every effort to enhance productivity and ensure the equitable distribution of the resulting gains. While in the immediate future (because of the state of the economy) there might be some employment gains in the automobile sector, the longer term outlook throughout the TEM industries is more pessimistic. There are likely to be job losses in economies due to market saturation, overcapacity and structural change in the TEM industries.
5. To assist workers in times of economic downturn or industry restructuring, governments, employers' and workers' organizations should take steps to prepare for such eventualities, which could include retraining, job retention, or an appropriate level of income protection.
6. In response to prolonged adverse economic conditions, TEM enterprises should only act to close a plant as a last resort. In the event that such a plant closure is unavoidable, enterprises should provide advance notice and information to all concerned, and employers and workers' representatives (2) should negotiate terms regarding impacts on workers, in accordance with government policies.
7. The motor vehicle and other segments of the TEM industries are resorting increasingly to the use of suppliers and to outsourcing. Changes in employment relationships should not infringe on the right to organize and bargain collectively. There is an array of possibilities, including transferring and continuing to apply previously negotiated conditions.
8. Information technology is creating jobs around the world. Although the Internet will have a profoundly positive impact on the functioning of the TEM industries, it is not yet clear whether the employment impact will be positive or negative. While some jobs might be eliminated, easy access to an increased number of options for vehicles or lower prices could stimulate demand and lead to additional employment opportunities. In addition, new technologies offer significant opportunities for education and training. Studies should be undertaken by the ILO to assess the employment implications of information technology on the TEM industries. Should there be a net loss of TEM jobs as a result of new information technologies, employers and workers' representatives should take steps to address this job loss, which could include retraining, job retention or an appropriate level of income protection.
Productivity
9. Productivity is a function of many factors, including the implementation of new technologies, new production methods, flexible methods of work, reorganization and intensification of work, etc. Productivity growth is critical to enhancing the ongoing competitiveness of the enterprise and raising standards of living. It should come as a result of "working smarter, not harder". It can result in enhanced prospects for long-term sustainability of both the enterprise and employment.
Teamwork
10. There is no single model for teamwork since many factors influence how and in what form it is introduced and applied. Much depends on the specific context and on industrial relations. The proper and effective use of teamwork in some cultures and locations can be productive. It is one element among many which could be used in human resource management to organize work. Team systems must not discriminate against women, older workers, or those with reduced capacity. Prior agreement between employers and workers' representatives, where appropriate, on the introduction and implementation of, and participation in, teamwork is a prerequisite for its success.
Training
11. Human capital is a company's most valuable asset and has to be nurtured in times of rapidly changing skill requirements. Some countries are having trouble in attracting workers (male and female) to technical and engineering professions, and some vocational training institutes and other educational institutions are experiencing problems in equipping workers for employment in the TEM industries and/or in making the transition from training in mechanical disciplines to electronic disciplines and beyond. Consultations with all stakeholders on training and retraining needs should be undertaken to address these issues. Enterprise-based education is also useful but the foundation should be provided by public institutions.
Combating unemployment
12. Many positive examples of measures to create employment were discussed. There has also been some success in preserving employment levels in situations in transition. Different approaches are required and an appropriate legal framework should accommodate various possibilities. Depending on conditions, these might include part-time work, job-sharing, early retirement and work time reductions. Employment pacts negotiated between employers and workers' organizations are one way of preserving jobs. Whatever scheme is adopted, it has to take fully into account national laws and can only succeed with the commitment of all concerned.
Social dialogue
13. Effective solutions are generally negotiated at the appropriate level depending on the issues. Recent experience with European Works Councils was described. Those Government and Worker members who took part reported positively. Guidelines for social dialogue should ensure that all parties' rights are recognized and respected.
Occupational safety and health
14. Occupational safety and health, including workplace stress and repetitive strain injuries should be dealt with by employers providing the necessary training, technology and other techniques. Given these, workers can ensure that they carry out their duties in a safe manner. Governments should ensure that the legal and regulatory framework is up to date, implemented, and provides for sanctions if necessary.
15. Based on clearly identifiable hazards and hazardous substances associated with ship-breaking operations, the ILO, in cooperation with other interested parties (within the framework of the InFocus Programme on SafeWork), should draw up a compendium of best practices, adapted for local conditions, as a first step towards the preparation of a comprehensive code of practice on occupational safety and health in ship-breaking. Meanwhile, governments should be encouraged to require ships to have an inventory of hazardous materials on board that is updated throughout the life of the vessel. Consideration should be given to having hazardous materials removed before ships are sent to be scrapped.
Activity by the ILO to assist in the process of change
16. The ILO should maintain its campaign for the ratification of the core labour Conventions. The ILO should increase its contacts with other international agencies and the international financial institutions for the purpose of promoting the Declaration on Fundamental Principles and Rights at Work and its Follow-up. According to its mandate, the ILO should be the international organization responsible for setting international standards on occupational safety and health at the workplace. It should also be the international organization responsible for setting international standards on the promotion and protection of women at the workplace. The ILO should continue its promotion of the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy. The ILO must retain its tripartite character and labour focus and give equal access to governments, employers' and workers' organizations to its departments and activities. The ILO should encourage education and training, especially lifelong learning using new distance-learning technologies. The ILO should encourage the use of technology to spread economic benefits and should continue to provide tripartite forums to discuss important issues in the TEM industries.
1. When the term "workers' organizations" is used, it refers primarily to trade unions as well as other workers' organizations.
2. Throughout this text when the term "workers' representatives" is used, it refers to Article 3 of the Workers' Representatives Convention, 1971 (No. 135), which reads as follows: "For the purpose of this Convention the term 'workers' representatives' means persons who are recognised as such under national law or practice, whether they are: (a) trade union representatives, namely, representatives designated or elected by trade unions or by the members of such unions; or (b) elected representatives, namely, representatives who are freely elected by the workers of the undertaking in accordance with provisions of national laws or regulations or of collective agreements and whose functions do not include activities which are recognised as the exclusive prerogative of trade unions in the country concerned."