Union leaders call on the OECD to reinforce rules for fair globalization and responsible investment funds

Union leaders from OECD countries and Global Unions will call on governments to reinforce international rules and domestic policies to manage the social and environmental cost of globalisation at consultations between the TUAC and OECD Ministers on the evening of 14 May.

Union leaders from OECD countries and Global Unions will call on governments to reinforce international rules and domestic policies to manage the social and environmental cost of globalisation at consultations between the TUAC and OECD Ministers on the evening of 14 May. In a statement issued ahead of the Annual OECD Ministerial (15-16 May), the unions call on OECD Governments to rebalance growth, to invest in social protection and education, and to strengthen rules on international trade, investment and capital flows.

The OECD Ministerial takes place in between key G8 meetings. John Evans, TUAC General Secretary, speaking in Paris on 10 May, said: “The positive conclusions of the G8 Employment and Labour Ministers’ Conference in Dresden on 7-8 May represent an important benchmark for us on the social dimension of globalisation. They need to be echoed and amplified by the OECD Ministerial and next by the G8 Summit in June”. TUAC and Global Unions leaders will hold a press briefing at 1.00 p.m. on 15 May at the OECD forum (Palais Brongniart, Place de la Bourse – 75002 Paris) to take stock of the OECD Ministerial discussions and re-iterate unions’ call to reinforce rules for fair globalisation and responsible investment funds. The union leaders present will include John Sweeney (President of the American Labour Centre the AFL-CIO and TUAC), Guy Ryder (General Secretary of the International Trade Union Confederation, ITUC), John Monks (General Secretary of the European Trade Union Confederation, ETUC) and John Evans of the TUAC.

The TUAC Statement calls on OECD Governments to commit themselves to exercise more active governance of globalisation and ensure more equitable distribution of the benefits of growth. The share of wages as a proportion of national income has fallen throughout the OECD. In 17 of 20 countries surveyed by the OECD, income inequality has risen, undermining social cohesion and fuelling political alienation. In addressing this year theme, “Innovation, Growth & Equity”, TUAC calls on OECD Ministers:

• To ensure equitable distribution of growth by raising minimum incomes, investing in social protection, skills, gender equality, education and innovation;

• To rebalance growth among OECD regions and reduce risks of an unorderly correction of trade imbalances;

• To strengthening international trade and investment rules covering core labour standards and the social responsibility of businesses, including the OECD Guidelines for Multinational Enterprises;

• To meet past commitments made to achieve the Millennium Development Goals;

• To create “green jobs” to meet the social and economic impact of climate change.

The Statement also brings to light the alarming consequences of private equity and hedge funds who have in a short period become owners of significant swathes of the economy and of employment. Their growth requires a coordinated regulatory response by the OECD in four areas: (i) investment funds’ transparency, reporting and risk management, (ii) workers’ rights to collective bargaining and representation under private equity regime, (iii) tax regulation and corporate governance.

TUAC Press Briefing following Ministerial Consultations
Tuesday, 15th May 2007 at 1.00 pm
Palais Brongniart, Paris

For press accreditation for the Forum, please register on-line at the OECD Forum website (www.oecd.org/forum2007) or contact the OECD Public Affairs and Communications Division, Ms. Meggan Dissly, Telephone: +33(0)145248094 – Email: [email protected].

For more information on the statement, please contact the TUAC Secretariat, Pierre Habbard, Telephone:+ 33(0)6 30 66 92 87 – Email: [email protected].