TARGETING MULTINATIONALS

Multinational corporations (MNCs) are arguably the major key players in an increasingly globalising economy. Their operations transcend national borders in search for raw materials and markets for their products and, in recent times they can easily relocate production facilities to places, especially in the developing countries where labour is cheap and environmental standards very often slipshod.

MNCs also employ millions of workers across the globe; their operations have an impact not only on millions of people but also on the environment. Therefore trade unions have found it imperative that the activities of MNCs be closely monitored in order that they comply with international labour conventions and national legislation to safeguard the interests of the millions of workers they employ.

The Trade Union Solidarity Centre (SASK) of Finland is one of the key organisations actively involved in the targeting multinational companies' campaign, initiated by the International Textile, Garment and Leather Workers Federation (ITGLWF). The overall aim, according to ITGLWF, is to create a climate within the global operations of the MNCs that is conducive for trade unions to bargain on behalf of workers.

A key objective in the campaign is to secure an international framework agreement with the MNCs so that they fulfil their social responsibilities by disclosing the sources of their supply chains and putting in place a mechanism to implement internationally recognised labour standards throughout the supply chain.

But a crucial initial step is to carry out in-depth research on targeted MNCs which is particularly important because MNCs are so varied and their operations greatly complex. Therefore in order to successfully launch a dialogue with a particular company there would be the need to generate enough background information and profile of its activities. Many trade unions in the south simply do not have the capacity to do that kind of research.

SASK has already supported a number of studies in Africa and Latin America on key multinational firms operating in those regions. It has collaborated with African Labour Research Network to conduct surveys on South African-based multinationals operating in a number of African countries. In Latin America it has also worked with Observatorio Social in Brazil to conduct surveys on Finnish multinationals such as Nokia and Veracel, half owned by the forestry giant StoraEnso.

Other studies in the pipeline with SASK's funding and support involve companies in textile industry and the conditions in the cut flowers sector in Africa and Latin America and another on-going study on Nokia in Mexico.

Read more:

Targeting multinationals in Africa:

African social observatory
Metso in South Africa
Woolworths in Ghana
Shoprite in Zambia
Shoprite in Zimbabwe

Targeting multinationals in Latin America:

Nokia in Brazil

Text: Linus Atarah