October 21st 2009
Danone and the IUF are experimenting with social dialogue at a global level
Danone and the International Union of Food Workers (IUF) formalized on October 12, 2009 the testing of a forum for social dialogue at global level. Their ambition is to give to the existing Information and Consultation Committee (ICC) a true global scope and thus enable a greater representation of employees from all Danone activities in the world.
The Danone ICC was established in 1996 and serves as the European Works Council. It follows the annual meetings between affiliates of the IUF and Danone management initiated in 1987. In its old form, the representation was ensured mainly at the European level, including outside the European Union: the ICC was in fact one of the first information and consultation jurisdictions in the world to include union representatives from Central and Eastern European countries as full members and not merely as observers. Another important element of the agreement involved the participation of national trade union representatives as well as representatives from regional offices of the IUF (Europe, Latin America, Asia).
For the concept that is currently being experimented on two of Danone’s four business lines (Fresh Dairy Products and Waters), the IUF and Danone have taken into account new business realities:
- opening the geographical scope to employee representatives from its subsidiaries in Asia (Indonesia), North America (U.S. and Canada), Latin America (Mexico, Argentina, Brazil ..) and Africa (South Africa, Algeria ...);
- holding discussions focused on the group’s business lines: Fresh Dairy Products and Waters, Baby Nutrition and Medical Nutrition.
The ICC meetings take place in Geneva at the ILO (International Labor Office), with a day dedicated to a meeting between management and employee representatives from different businesses, followed by 2 days of meetings on global policy with representatives from the Executive Committee (Chairman, VP Human Resources). In total, nearly 75 people who may hereafter attend the annual meeting of the ICC (the representatives of Baby Nutrition and Medical Nutrition joining ICC in 2010, expiry date of the agreement which established the European Works Council of Numico).
In parallel with the ICC, the international framework agreements (called joint opinions by Danone) continue to be negotiated between Danone and the IUF. Eight joint opinions have been negotiated to date, other topics are on the agenda of negotiations.
This evolution of the ICC is the acknowledgement of today’s Danone global economic scope. It is also a recognition of employees and trade unions within the group. Almost all representatives of employees who participate in this meeting are indeed company unionists designated by their organization, most of which is affiliated to the IUF.
In the past, the IUF and Danone have always shown interest in having an information and consultation body that gives employees and their unions the opportunity to share opinions on the political and strategic choices of the group and discuss employees prioritary issues: the evolution of this body (global scope, additional specific day dedicated to each business) is a sign that the quality of economic and social dialogue within Danone is a key factor of success.
For Franck Riboud, CEO of Danone, "the dialogue between management and employee representatives at all levels of the company is the basis of the group’s dual economic and social project and a key to its sustainable success."
For Ron Oswald, General Secretary of the IUF, "This major step allows us to establish a global platform where we can meet the Top Management of one of the largest transnational corporations and discuss with them. All of our member organizations affiliated with Danone’s world, in Africa, Asia, Latin America or North America can now join their peers in Europe to build together a dialogue with this company at a global level. We are not surprised that the first company to implement this type of dialogue in this form should be Danone. We hope that this model will become the rule when we move into a global economic model in which large groups such as Danone play an increasing part and have bigger impact on both the livelihood and well-being of a growing number of our members, their families and the society in which they live."
About Danone
Danone is a Fortune 500 company and one of the most successful healthy food companies in the world. Its mission is to bring health through food to as many people as possible. Fulfilling this mission is a major contributor to Danone’s continuous fast growth. Danone with 160 plants and around 80,000 employees has a presence in all five continents and over 120 countries. In 2008, Danone recorded € 15.2 billion sales. Danone enjoys leading positions on healthy food in four businesses: fresh dairy products (n°1 worldwide), waters (n° 2 on the packaged water market), baby nutrition (n°2 worldwide) and medical nutrition. Listed on Euronext Paris, Danone is also ranked among the main index of social responsibility: Dow Jones Sustainability Index Stoxx and World, ASPI Eurozone and Ethibel Sustainability index.
About IUF
The International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers (IUF) is a global union federation bringing together 383 affiliated unions in 120 countries, for a total more than 2.6 million members. Its headquarters is in Geneva, Switzerland.
