Information Disclosure &Union Right to ConsultationWorkers Participation in Management

Which company is good and promising? A or B

Company A• Transparent• Inclusive• Participatory• Responsible• Cooperative• Honest• Friendly• Clean

Company B• Obscure• Exclusive• One man control• Irresponsible• Confrontational• Dishonest• Hostile• Corrupt

Good and promising company

• What we need to make our company good and promising?

• What is precondition of transparent, cooperative and participatory company ?

Information & Dialogue consultation / agreement between workers and management

Ideas: Workers Participation in Management

• Industrial Democracy– Workers participate in decision making, share

responsibility and authority in the workplace• Workplace Democracy

– Application of democracy in all its form (voting system, discussion, dialogue) to the workplace.

• Codetermination– Employees have an important role in management of

a company. • Information disclosure and union’s right to

consultation are essential to be equal partners.

Case: GermanyAct on Works council

Workers Right to Information• Making or introducing

an employment plan in the workplace

• Introducing a new working process

• Arranging new equipment and factory structure

• Building, rebuilding and expanding factory

Workers Right to Consultation/Agreement• Personnel management• Dismissal• Job training• Recruitment rules• Workplace arrangements• Job contents• Start/end and change of

working hours• Wage payment and its change• Company welfare• Recruiting and transferring an

individual worker

Case: KoreaAct on Employee’s Participation

Workers Right to Consultation• Sharing of performances

(profits)• Recruitment and training• Health & safety, working

environment• Personnel management• Dismissal, retraining, job

transferring due to managerial or technical reasons

• Working hours and rest hours

Workers Right to Consultation• Wage payment and wage

system• Introduction of new machine

and technology or improvement of working process

• Revision of work rules• Company welfare• Installation of monitoring

equipment like CCTV• Maternity protection and

family-work balance

Case: KoreaAct on Employee’s Participation

Workers Right to Information

• Overall managerial plan and output

• Quarterly production plan and output

• Personnel and workforce plan

• Economical and financial situation

Workers Right to Agreement

• Job training and skill development

• Company welfare

OECD GuidelinesChapter 3. Information Disclosure

• MNC should ensure that timely, regular, reliable and relevant information is disclosed.

• MNC should disclose basic information showing their name, location, and structure, the name, address and telephone number of the parent enterprise and its main affiliates, its percentage ownership, direct and indirect in these affiliates, including shareholdings between them.

OECD GuidelinesChapter 3. Information Disclosure

• MNCs should also disclose material information on:a. The financial and operating results of the company.b. Company objectives.c. Major share ownership and voting right.d. Members of the board and key executives, and

their remuneration (pay).e. Material foreseeable risk factors.f. Material issues regarding employees and other

stakeholders.g. Governance structures and policies.

OECD GuidelinesChapter 3. Information Disclosure

• MNC is encouraged to communicate additional information on:a) Social, ethical and environmental policies of

the MNCs and other codes of conduct. b) Information on systems for managing risks

and complying with laws, and on statements or codes of business conduct.

c) Information on relationships with employees and other stakeholders.

ILO Recommendation 129• General conditions of employment, including

engagement, transfer and termination of employment;

• Job descriptions and the place of particular jobs within the company structure

• Possibilities of training and prospects of advancement within the undertaking;

• General working conditions; • Occupational safety and health regulations

and instructions for the prevention of accidents and occupational diseases;

ILO Recommendation 129• Procedures for the examination of grievances as well

as the rules and practices governing their operation and the conditions for having recourse to them;

• Personnel welfare services (medical care, health, canteens, housing, leisure, savings and banking facilities, etc.);

• Social security or social assistance schemes in the undertaking;

• Regulations of national social security schemes to which the workers are subject by virtue of their employment in the undertaking;

• General situation of the company and prospects or plans for its future development;

ILO Recommendation 129• Explanation of decisions which are likely to affect directly

or indirectly the situation of workers in the company • Methods of consultation and discussion and of co-

operation between management and its representatives on the one hand and the workers and their representatives on the other.

• In the case of a question which has been the subject of negotiations between employer and workers in the company or of a collective agreement concluded at a level beyond that of the company, the information should make express reference thereto.

CBA and Workers’ Participation in Management

• Knowledge is a power and a precondition to be an equal partner with employers.

• Workers must participate in management for sustainable development, transparency and growth of our company.

• CBA is an useful tool for workers’ participation in management.

• Insert the chapter 3 of the OECD Guidelines on MNEs into our CBA.

• Not by our workplace union alone, but together with FOL and other workplace unions.

BASF Supervisory Board