Corporate Social Responsibility (IVOR nr. 77) 2010/10.7.1:10.7.1 The first mediation results

Corporate Social Responsibility (IVOR nr. 77) 2010/10.7.1

10.7.1 The first mediation results

Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.

The mediation attempt by Mr Lubbers took place in the Netherlands behind closed doors. After having heard the parties, Mr Lubbers informed the governments that he would try to mediate the case as long as the arrest warrants against the Dutch persons would not be issued at an international level. He also considered that besides the direct parties to the conflict, CCC/ ICN, the Internet Service Providers and FFI/JKPL, G-Star had also to be consulted. A continuation of its relationship with FFI/JKPL was vital to avoid bankruptcy on the part of FFI/JKPL and hence for the success of the mediatory attempt. The Indian Organisations were not present during the first meetings in the Netherlands, but CCC/ICN was encouraged by Mr Lubbers to communicate with them at all times in order to collect their ideas and to gain their commitment to a structural solution, and so they did.

Mr Lubbers examined all reports and publications available on the conflict and he initiated many meetings and consultations with CCC/ICN, FFI/JKPL, G-Star, SAI, the Indian Embassy in the Netherlands, the Ministers involved and their representatives, Indian lawyers and mediation advisors, and ILO representatives. It seemed that none of the disputing parties was prepared to put their campaigning or litigation on hold during the beginning of the mediation process. Mr Lubbers' goals were (i) to avoid that the international arrest warrants would be activated, (ii) to find assurance that the labour conditions at the FFI/JKPL sites conformed to generally acceptable international standards so that he could encourage the (former) customers of FFI/JKPL to place orders, and (iii) to achieve a consensus between the parties about terminating their public campaigning and litigation, while finding a means to re-establish communication where necessary. As a mediator, Mr Lubbers enquired of the parties which solutions they envisaged. By 28 January 2008, Mr Lubbers had issued a press release in which he announced that an agreement had been reached between the parties involved.1 It reads:

The Indian clothing producer and the Dutch NGOs have jointly come to the following solution: in consultation with local Indian organisations and unions, an ombudsperson in Bangalore will be appointed. The ombudsperson for future conflicts will be independent and have the full confidence of all parties, local as well as international. Should employees, local organisations or CCC/ICN have any complaints concerning labour conditions at FFI/JKPL, they can submit these to the ombudsperson, who has a mandate to resolve them. This initiative will not hinder the right of any employee to become a member of a union of his choice, which can then directly represent him towards the FFI/JKPL management. CCC/ICN are confident that any possible violations of labour rights will be reported in a timely fashion and will be resolved in a correct manner. Should FFI/JKPL or any of their customers have complaints about the remarks or behaviour of NGOs or unions, they can submit these to the ombudsperson, who will independently verify the issues and take binding decisions.

Supported by this solution, parties no longer require the courts to provide judgment on their difference of opinion concerning the allegations put forward by local Indian organisations, and disputed by FFI/JKPL as to events lying in the past (2005/2006). Therefore, the Indian company withdraws all legal proceedings and CCC/ICN bring to an end all campaigns against FFI/JKPL and the Dutch jeans brand G-Star. The NGOs have also withdrawn the complaint about the alleged violation of the OECD Guidelines.

In good consultation with Lubbers, G-Star, the most important former customer of FFI/ JKPL, re-establishes its commercial relationship with FI/JKPL, so that the 5,500 Indian employees are not the victim of the conflict. Lubbers has ascertained that with the litigation ending and the appointment of an ombudsperson, there is no reason to consider the labour conditions not in compliance with Indian law and international standards. He has encouraged G-Star to re-establish its commercial relationship with the Indian producer. He has made this request expecting that other customers will follow.2

Indeed, as Mr Lubbers indicated almost a month later in a new press release of 21 February 2008, 'no party (FFI/JKPL employees, Bangalore NGOs or unions, or CCC/ICN) has contradicted this positive statement [regarding the labour conditions being in compliance]. This is encouraging.'3 Fortunately for all parties, following the mediation agreement and the first press release by Mr Lubbers, G-Star re-established its relationship with FFI/JKPL, thereby saving the FFI/JKPL employees' jobs.

In following up the questions raised in the Dutch Parliament (section 10.3), the Dutch Ministers of Economic Affairs and for Foreign Trade informed Parliament of the outcome of the Lubbers Mediation.4 They emphasised the importance of CSR for the Netherlands, but also for India, and stressed that maintaining a dialogue is essential. They underlined that CSR can only take place by creating a channel of communication between companies and civil society organisations for the exchange of ideas, even when their positions differ greatly; all parties bear responsibility for maintaining such a dialogue.

Deze functie is alleen te gebruiken als je bent ingelogd.