Enhance social dialogue

Download as PDF

Social dialogue at the workplace is defined as all the types of negotiation, consultation or simple exchange of information about the conditions of work between employers, workers and their representatives. Supporting strong dialogue can open up the path to collective bargaining on wages – the strongest foundation on which wages can be set.

 

Requirements for social dialogue:

ALERT! Please note that on this page we focus on social dialogue at the workplace. In some countries, dialogue at the sectoral and national level is taking place to address topics related to conditions of work.  

Challenges addressed by this intervention

Path

Low facility productivity

Social dialogue can help create engaged employees. Engaged employees are more likely to work hard and share their ideas for facility improvement.

Path

Low product quality

When structures for social dialogue are well established, problems like low product quality can be openly discussed and the ideas of workers and employers for solving the problem can be incorporated.

Path

Excessive working hours

When structures for social dialogue are well established, topics such as excessive working hours can be discussed and addressed.

Path

Precarious employment contracts

When structures for social dialogue are well established, topics such as precarious employment contracts can be discussed and addressed.

Path

Low quality/value of in-kind benefits

When structures for social dialogue are well established, employers can learn about the needs of the workers in relation to in-kind benefits.

Path

Lack of robust pay management system

When structures for social dialogue are well established, the ideas of the workers can be integrated in the establishment of an efficient and accepted pay management system.

Path

Inadequate wage setting mechanisms - e.g. lack of CBA

When structures for social dialogue are well established, this will have a positive effect on the acceptance and success of company specific or company overarching collective bargaining agreements.

Path

Lack of (adequate) social protection

When structures for social dialogue are well established, workers will be able to better vocalize the need for social protection either at the company level or at an overarching level.

Practical tips

Although social dialogue at the workplace is especially in the hands of the management of the company, the workers and their representatives; various supporting organizations can play a role to strengthen the dialogue. Get inspired by the following tips:

For Supplier

Strengthen worker representation

·Stimulate and support workers to join or form organizations that represent their rights and invest in the capacity of these organizations.

Strengthen workers agreements

Cooperate with peers to create a strong Collective Bargaining Agreement, including wages, hours and terms & conditions of employment.

Build trust

Trust is key. Build trust by communicating clearly about the mandate of the worker organizations, live up to your promises and be transparent about your decision making.

Signal commitment

Make sure higher management signals commitment to engaging with worker representatives and that all levels in the organization are aware of this commitment.

Involve your workers

Involve your workers with the company goals, by frequently sharing information about company performance and expectations.

For Buyer

Inform yourself

Deepen the relation with your supplier and ask about topics such as worker representation and social dialogue.

Inspire your supplier

Inspire your supplier by sharing experiences of (your) other suppliers with strong social dialogue

Connect

Connect your supplier to organizations that can help strengthening social dialogue at the workplace.

Show the business case

Show your suppliers that there is a clear business case for improved social dialogue. Be inspired by the case studies and reading options on this page. 

For Government

Be informed

Reach out to established organizations such as ILO and UN to learn about the importance of social dialogue and learn about best practices.

Stimulate social dialogue

Emphasize the importance of social dialogue at the workplace via public campaigns and support programs.

Engage in social dialogue

Organize social dialogue at the regional or national level with employee- and worker representatives.

For Supporting organisation

Educate workers

Inform workers about their formal rights in the workplace. Only when workers know their rights, they can signal and act upon the violation of their rights and improve their position.

Promote cooperation

Stimulate workers to join an organization. When workers speak with one voice, they can be a more effective in negotiations with employers.

Expand the dialogue

Stimulate social dialogue on sectoral and national level to collectively establish solutions for the entire sector or country.

Seek assistance

Seek assistance from international labor unions, such as the International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers' Associations (IUF), The Federation of Dutch Trade Unions (FNV) and The Christian National Trade Union Federation (CNV).

Gender lens

Awareness about gender specific topics should form part of the social dialogue agenda. It is important to make sure that men and women are well represented in the social dialogue, that the agenda includes topics that are relevant for men and women and that the social dialogue leads to outcomes that are favorable for men and women. When setting-up social dialogue, make sure to:

Case studies

Wage data supports strong collective bargaining: CNV International

Through collaborative partnerships, local union organizations leveraged data and buyer support for living wages in their negotiations to successfully increase salaries. This case study stands as a testament to the power of collective efforts and data-driven initiatives in creating positive change across supply chains.

Read the whole story ›

Volta River Estates: Socially Responsible Business supports Living Wages

Volta River Estates, a leading banana producer in Ghana, has made significant strides in closing the living wage gap. Together with the local trade union, Fairtrade and retailers, they measured the living wage gap and increased wages across the entire farm to help reduce inequities. The living wage journey in Ghana reveals the power of working together for better wages and demonstrates the importance of having a foundation of social commitment to support living wage efforts.

Read the whole story ›

Nudie Jeans

Nudie Jeans is a Swedish denim brand that stands out for more than style. Their commitment to transparent production and their ambitious repair and reuse-program sets them apart, but the company also has living wages high on the agenda.

Read the whole story ›

Corporate uniforms made better: Schijvens

Uniforms from apparel maker, Schijvens, are found on employees at well-known companies, including McDonalds, Albert Heijn and the drugstore-chain Kruidvat. The company’s mission is to make their production as sustainable as possible, with a special focus on living wages.

Read the whole story ›

The importance of social dialogue: a race to the top

In 2016, IDH facilitated a pilot program to demonstrate the potential of sustainable manufacturing practices and better working conditions in the apparel and footwear sector. Social dialogue was a fundamental ingredient of this program.

Read the whole story ›

Fairphone: Listen to the employees

Fairphone has been exploring ways of improving the working conditions in the supply chains of their products. Although seemingly obvious, it learned that direct engagement with the workers is very effective in improving working conditions and business.

Read the whole story ›

Sector considerations

Social dialogue is not sector dependent, as it is a critical element in all supply chains and all sectors that are working towards a living wage. Each company should assess whether the conditions to facilitate social dialogue are present and favorable in their context. See also  ‘Improve policies in producer countries’.

Supporting materials

Quizrr

Quizrr's digital training platform enables de-risking in global supply chains by educating workers from the bottom up on business-critical topics to drive behavioral change.

A guide for brands: Freedom of association and the right to collective bargaining

Learn more about freedom of association and the right to collective bargaining in the guide for brands by Fair Wear Foundation.

Social Dialogue Library

The Social Dialogue Library provides an archive of 130 sources from academic, NGO and civil society on practical experiences from promoting social dialogue at the workplace. It is comprised of scientific publications, official documents from (inter)national institutions and white papers.

ACT

ACT is an agreement between 19 global brands and IndustriALL Global Union in pursuit of living wages for workers in textile and garment supply chains

A business case for social dialogue

Thematic Brief: A business case for social dialogue: How workplace representation and collective bargaining deliver better business performance by The Global Deal.

Social dialogue

Inspiration by ILO for companies to find a common voice. 

Supporting partners

Buyer
Supplier
Government
Supporting organisation

Inspiration and guidance

If you need more inspiration or guidance for the implementation of ‘social dialogue', or if you want to add a tip, sector consideration or case study send an email to the IDH living wage experts!

Wage data supports strong collective bargaining: CNV International

Through collaborative partnerships, local union organizations leveraged data and buyer support for living wages in their negotiations to successfully increase salaries. This case study stands as a testament to the power of collective efforts and data-driven initiatives in creating positive change across supply chains.

Spearheaded by the local union, and supported by CNV Internationaal, Nicaragua’s sugar cane industry has achieved significant success in cultivating equitable wage practices and improving conditions for its 35,000 workers. Through collaborative partnerships, local union organizations leveraged data and buyer support for living wages in their negotiations to successfully increase salaries. This case study stands as a testament to the power of collective efforts and data-driven initiatives in creating positive change across supply chains.

Recognizing the importance of data

While local unions can achieve great success through their own leadership and  expert local knowledge, they may not have the data at hand needed to identify gaps in progress. With support from CNV Internationaal , existing local unions in Nicaragua understood that data would allow them to be better prepared for wage conversations. Through this process, they also pivoted to understanding that the most vulnerable workers are not protected by unions.

Collecting the data needed for successful negotiations

As part of this initiative, data gathering including monitoring – in the form of surveying all permanent and temporal workers in the sugarcane industry through the Fair Work Monitor developed by CNV Internationaal. The survey asked participants for wage levels, and whether these met the legal minimum wage or benchmark living wage.  This was complemented by an economic analysis, which shed light on information about the wider environment, including the profitability data of companies.

 Together, this provided the local unions with a powerful position in its collective bargaining. By being better informed, negotiations were more effective, and salaries were successfully increased by between 8% and 12% over the last three years. Learn more about this case here.

Volta River Estates: Socially Responsible Business supports Living Wages

Volta River Estates, a leading banana producer in Ghana, has made significant strides in closing the living wage gap. Together with the local trade union, Fairtrade and retailers, they measured the living wage gap and increased wages across the entire farm to help reduce inequities. The living wage journey in Ghana reveals the power of working together for better wages and demonstrates the importance of having a foundation of social commitment to support living wage efforts.

Full article coming soon.

Nudie Jeans

Nudie Jeans is a Swedish denim brand that stands out for more than style. Their commitment to transparent production and their ambitious repair and reuse-program sets them apart, but the company also has living wages high on the agenda.

Nudie Jeans is committed to make living wages possible for employees at all their main suppliers in high-risk countries by 2025.Nudie Jeans is a small but important buyer with most of their suppliers. Nevertheless, the brand is now paying their share of the living wage to one third of their suppliers’ workforces. Nudie Jeans applies a unique strategy that puts the supplier in the lead and empowers them to define their approach to living wage, manage the living wage payments transparently and build their capacity for social dialogue. Moreover, they encourage their suppliers to engage with additional buyers besides Nudie Jeans to join in and do their part. For more information you can visit the full case study here.

Corporate uniforms made better: Schijvens

Uniforms from apparel maker, Schijvens, are found on employees at well-known companies, including McDonalds, Albert Heijn and the drugstore-chain Kruidvat. The company’s mission is to make their production as sustainable as possible, with a special focus on living wages.

Uniforms from apparel maker, Schijvens, are found on employees at well-known companies, including McDonalds, Albert Heijn and the drugstore-chain Kruidvat. Schijvens began their living wage journey by making changes at their own factory in Turkey before expanding the effort to include suppliers in other countries, such as Pakistan and China. Schijvens uses transparency to bring its customers on board. They share open cost calculations – showing them exactly how the price they pay relates to wages paid in the factories – with customers to communicate the impact of living wage payments on worker livelihoods. For instance, Schijvens’ found that raising the price of polo shirts by 25 cents per item was sufficient to achieve a living wage.  Most customer companies support the mission, and when prices cannot be raised, Schijvens pays the difference from its own margin. For more information you can visit the full case study here.

The importance of social dialogue: a race to the top

In 2016, IDH facilitated a pilot program to demonstrate the potential of sustainable manufacturing practices and better working conditions in the apparel and footwear sector. Social dialogue was a fundamental ingredient of this program.

The program brought a broad range of companies and experts together, including GAP, Levi’s, USAID, Better Work, and the Sustainable Apparel Coalition. One of the main parts of the program was the establishment of better interaction between workers and employers. The management, supervisors and workers were trained to develop the soft skills needed for meaningful and respectful engagement. By changing the way that workers and management interacted, they ultimately made factories more productive, improved working conditions, and generated higher job satisfaction and fewer unresolved grievances. Participating factories have shown:

  • An increase in worker voice and soft skills,
  • Improved productivity and working conditions,
  • And engaged employees at all levels of employment

Read more in the full case stud

Fairphone: Listen to the employees

Fairphone has been exploring ways of improving the working conditions in the supply chains of their products. Although seemingly obvious, it learned that direct engagement with the workers is very effective in improving working conditions and business.

Fairphone uses worker surveys and dialogue session to gather insights on how satisfied workers are with current working conditions. The surveys are filled in anonymously, which gives workers a safe opportunity to reveal ideas for improvement. In addition, dialogue sessions are held with the workers in which the perspective of the workers can be safely shared. Learn more about Fairphone’s practices in the full case study.