How Do Collective Agreements Work

Answer: The ILO Tripartite Declaration on Multinational Enterprises and Social Policy (“MNE Declaration”) states that enterprises “should contribute to the implementation of and follow-up to the ILO Declaration on Fundamental Principles and Rights at Work (FPRW) adopted in 1998”. [1] The FPRW is interested in the importance of respect for freedom of association and the right to collective bargaining, as well as other “core labour standards” in relation to child labour, forced labour and non-discrimination. Companies “should also respect the commitments they have made voluntarily, in accordance with national law and international obligations”. [2] Promoting the recognition of the right to collective bargaining in the supply chain can be an effective way to contribute to the implementation of the 1998 Declaration. .

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