USCIB Supports First-Ever Multilateral Agreement on “Living Wage”

New York, NY, February 27, 2024–This weekend, the International Labor Organization (ILO), the UN entity responsible for setting international labor standards, reached the first-in-history multilateral agreement on the concept of a “living wage.” The alignment on the concept, negotiated between workers, employers and governments, was part of the outcome of a week-long expert meeting on wage policies, including living wages.

In recent years, there has been a rise in political pressures on ensuring wage levels that can ensure a decent standard of living and an increase in living wage initiatives and consulting firms, claiming to help companies set correct wage levels. Yet, as reported by the ILO, such initiatives have largely been ignoring the second pillar of wage-setting, namely economic factors. The expert meeting provided clarity on this and underscored that a wage-setting process must take into account both the needs of workers and economic factors.

“We are proud to have reached multilateral alignment on the concept of a ‘living wage,’” said Ewa Staworzynska, director of corporate responsibility and labor affairs at USCIB, who represented American business during the expert meeting, together with Ryan Larsen, group director, international labor relations at Walmart. “In order to set sustainable wages and not disrupt employment levels, it is critical that wage-setting processes couple the estimates of needs of workers with economic factors, such as macroeconomic stability and productivity levels.”

The full conclusions, including the ILO’s description of the concept, is expected to be published in the coming days.

About USCIB
The United States Council for International Business (USCIB) advances the global interests of American business. We do so through advocacy for an open system of world trade, finance, and investment, where business can flourish and contribute to economic growth, human welfare, and environmental protection. We are the sole U.S. affiliate of the International Chamber of Commerce (ICC), Business at OECD (BIAC) and the International Organization of Employers (IOE). USCIB is also the only U.S. business organization with standing at the UN Economic and Social Council (ECOSOC), and is recognized at the UN Environment Program (UNEP), UN Framework Convention on Climate Change (UNFCCC) and the UN Convention on Biological Diversity (UN CBD).

Cross-Atlantic Social Partners Convene to Discuss Jobs for a Green Transition 

Ewa Staworzynska (USCIB)

The EU-U.S. Trade and Technology Council (TCC) held a workshop of the Transatlantic Initiative for Sustainable Trade (TIST), titled “Promotion of Good Quality Jobs for a Successful, Just and Inclusive Green Economy,” in Washington DC on January 30. The workshop focused on the promotion of good quality jobs for a successful, just and inclusive green transition. Organizations such as the the International Labor Organization (ILO), Business Europe, AFL-CIO, the European Trade Union Confederation and government agencies from both sides of the Atlantic provided perspectives during the meeting. 

USCIB Director for Corporate Responsibility and Labor Affairs Ewa Staworzynska gave remarks at the workshop, alongside USCIB members Lisa Schroeter (Dow) and Josh Connelly (LinkedIn). Connelly provided relevant data on workforce skilling and the gender gap, highlighting that women are disproportionally impacted by the green transition, due to the lack of parity in the market, especially in the green sector. 

Staworzynska spoke on the issue of supply chain transparency in the context of the green transition, underscoring that supply chain traceability is extremely complex, especially in higher tiers. “American companies have championed supply chain improvements globally, and we count on the U.S. government and the European Union to help sourcing countries tackle root causes of labor risks, such as poverty and informality,” she said. Staworzynska further highlighted that the just transition policies must take into account the realities faced by companies globally in order to be effective. 

“USCIB has had a longstanding engagement at the TCC,” said Staworzynska. “We look forward to highlighting the important work of our members, such as LinkedIn and Dow, and working with the EU and the U.S. to ensure a just and inclusive green transition.” 

Business Provides Input Into Global Forum on Migration and Development

Left to right: Laura McElroy (McDonalds) and Ronnie Goldberg (USCIB)

Business played a prominent role at the 14th Global Forum on Migration and Development (GFMD) Summit, held in Geneva from January 23-25 under the chairmanship of the government of France. USCIB staff and members were well represented among more than 1,000 delegates, including governments from 150 countries, who met to exchange best practices on migration governance.

The 60-strong private sector delegation was organized by the Business Mechanism to the GFMD, which is housed in the International Organization of Employers (IOE) and chaired by Austin Fragomen (Fragomen, Del Rey, Bernsen & Loewy).  USCIB members from Deloitte, Oracle, McDonalds, Meta and SHRM, as well as USCIB Senior Counsel Ronnie Goldberg, serve on the Business Mechanism’s Executive Board and participated in the Summit’s roundtable sessions.

According to Goldberg, during the Summit, USCIB and its members advocated for migration pathways to bring talent to fill skills gaps, particularly as they relate to green skills, legal frameworks for responsible recruitment, harmonization of skills recognition systems, better use of technology to encourage innovation and improve migration systems and a public narrative based on facts and economic impacts.

In addition, the Business Mechanism staged a Start Up competition for innovative migration-related applications and contributed substantive papers on Green Borders: Climate Change and Business Mobility, Digital Nomads and Hybrid Work, and Engaging with Employers in Skills Mobility Partnerships.

The GFMD chair has now been assumed by the Government of Colombia.

USCIB and IOE Host “Getting Business on Board for the 2024 UN Summit of the Future” 

USCIB and the International Organization of Employers (IOE) co-hosted a webinar, “Getting Business on Board for the 2024 UN Summit of the Future,” on December 4. The webinar spotlighted expectations for the 2024 UN Summit for the Future (SOTF) and discussed ways in which the private sector could participate and impact the preparations and outcomes. 

The event was headlined by Ambassador Paula Narváez, president of the United Nations Economic and Social Council (UN ECOSOC) and permanent representative of Chile to the UN. Participants also heard from USCIB Senior Vice President for Policy and Global Strategy Norine Kennedy, who presented USCIB’s two Moving the Needle reports that were published during the UN General Assembly in September. 

A panel on “What to expect and how to come prepared for the Summit of the Future” discussed private sector priorities in the coming year of deliberations. The panel also highlighted the growing role that small and midsize enterprises (SMEs) play – and will continue to play – in the economy and global trade. 

“Unless we address the issues of good governance, accountability and oversight, we’re going to find it difficult to mobilize private and public funding to finance SMEs, which are the backbone of so many economies,” stated Shea Gopaul, permanent representative to the UN in New York for the IOE. 

Other speakers included: 

  • Michael Pan, program management officer, ‘Our Common Agenda’, Executive Office of the Secretary General   
  • Angus Rennie, partnerships manager, United Nations Global Compact   
  • Ilze Melngailis, senior director, Business Council for the UN and Private Sector Engagement at the UN Foundation  
  • Patricia Veringa-Gieskes, president, Federation of Employers of Congo (FEC) 

This webinar was the first in a series that will continue to engage with UN representatives and key government delegations to inform the formation of the SOTF and its outcomes. 

Baird Discusses USCIB Priorities With Leaders of WTO and UNCTAD 

L-R: Whitney Baird (USCIB), Ngozi Okonjo-Iweala (WTO), Angela Ellard (WTO) in Geneva

USCIB President and CEO Whitney Baird was in Geneva the week of November 27, meeting with the heads of the World Trade Organization (WTO) and the UN Conference on Trade and Development (UNCTAD) to press membership priorities.  

 

The focus of the meeting with WTO Director General Ngozi Okonjo-Iwealaand Deputy Director General Angela Ellard was industry positions for the upcoming WTO Ministerial Conference (MC13), with Baird underscoring concerns regarding the U.S. retreat from important digital safeguards in the JSI on E-Commerce negotiations, the imperative of a permanent renewal of the moratorium on customs duties on electronic transmissions and staunch opposition to a waiver extension under the WTO Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreement. USCIB also relayed its history as a leading industry voice in support of the WTO, spearheading business coalition letters urging better U.S. leadership in negotiations.   

 

“USCIB will attend MC13 in February 2024 showcasing our deep commitment to the WTO and a global rules-based trading system,” said Baird. “With some 70 percent of world trade covered under WTO rules, USCIB is a steadfast and staunch advocate for the WTO and its critical role in keeping the global trading system open for business particularly during times of pandemic or geostrategic crisis.” 

 

Baird also expressed her gratitude to the DG for establishing the WTO Director General business advisory group to ensure industry voices are heard. “USCIB truly understands the importance and the power of institutionalized stakeholder engagement as the unique U.S. affiliate to the International Chamber of Commerce (ICC), Business at OECD (BIAC) and the International Organization of Employers (IOE),” added Baird. 

 

Separately, Baird met with UNCTAD Secretary General Rebeca Grynspan to discuss mutual areas of interest regarding foreign direct investment (FDI) and issues related to the Sustainable Development Goals (SDGs). USCIB’s engagement with UNCTAD spans years of active participation at the World Investment Forum Meetings, the leading international meeting on investment matters. 

 

USCIB has been a longstanding, leading voice for the U.S. private sector on international investment policy issues in the multilateral system, promoting FDI and defending investor safeguards in investment agreements as a paramount priority.   

 

“USCIB advocates for inclusive practical multilateralism and welcomes opportunities to engage with UNCTAD in dialogue and through public-private partnerships to learn about the barriers to investments in developing countries,” said Baird.  

 

Baird added, “It is now more important than ever that international organizations like UNCTAD work with business to call for the necessary welcoming environment for FDI in quality projects that help put the SDGs back on track, power sustainable economic growth and shared prosperity. USCIB looks forward to a productive working relationship with the Secretary General and her colleagues at UNCTAD.” 

USCIB Highlights Critical Role of Business in Advancing Human Rights at UN Forum

Participants: IOE corporate partners, USCIB delegation, and UN Deputy High Commissioner
Photo Credit: IOE

The annual UN Forum on Business and Human Rights took place the week of November 27 in Geneva. As the world’s largest conference on business and human rights (BHR), it convened governments, business, civil society, experts and practitioners to discuss the implementation of the UN Guiding Principles on Business and Human Rights, share best practices and learn about BHR initiatives from all regions.

According to USCIB Director for Corporate Responsibility and Labor Affairs Ewa Staworzynska, this year’s discussions were marked by the commemoration of the 75th anniversary of the UN Declaration on Human Rights, as well as the 12th year since the adoption of the UN Guiding Principles on Business and Human Rights (UNGPs). There was broad consensus that more progress was needed on human rights and many stakeholders called for a stronger role to be played by business. Emphasis was placed on leveraging the UNGPs in emerging topics such as Artificial Intelligence (AI) and environmental protection.

IOE Business Caucus L-R: Ewa Staworzynska (USCIB & IOE), Renate Hornung-Draus (Confederation of German Employers (BDA) & IOE), Roberto Suarez Santos (IOE), Whitney Baird (USCIB), Jason Pegat-Toquet (IOE). Photo credit: IOE

The American business community actively engaged across the various discussions at the UN Forum and USCIB member companies, including Hewlett-Packard and Google, were featured in plenary sessions to share their valuable contributions to the human rights agenda. The commitment to progress on human rights was also underscored in the dialogue with UN High Commissioner for Human Rights Volker Türk, during a Business Caucus organized by the International Organisation of Employers (IOE), as well as in a business meeting with the UN Deputy High Commissioner for Human Rights Nada Youssef A. Al Nashif.

USCIB and the U.S. Mission in Geneva co-organized a dialogue between USCIB member companies and the U.S. Government delegation to the UN Forum. The dialogue allowed for an open discussion among businesses and representatives from the U.S. Departments of State and Labor and USAID, on key topics such as the UN Legally Binding Instrument on Business and Human Rights, AI, due diligence trends and labor rights.

The USCIB delegation was led by President and CEO Whitney Baird and included Ewa Staworzynska, director for corporate responsibility and labor affairs and Jose Arroyo, policy manager.

“We are thrilled to lead the U.S. business engagement at the UN Forum on Business and Human Rights,” said Baird. “The presence and participation of U.S. companies highlights the private sector’s commitment to advancing human rights globally, and it is imperative that we do so in alignment with the UN Guiding Principles on Business and Human Rights.”

USCIB Voices Concern Over UN Treaty on Business and Human Rights

Ewa Staworzynska

The “Open-Ended Intergovernmental Working Group on Transnational Corporations and Other Business Enterprises with Respect To Human Rights” convened in Geneva this week for its ninth session of negotiations on Legally Binding Instrument on Business and Human Rights. The Legally Binding Instrument, also known as the “UN Treaty on Business and Human Rights,” is in its fourth draft, as released on July 31st this year.

For years, the business community has been concerned about onerous requirements on business, liability risks and legal uncertainty the draft Treaty would create both for States and companies, and these challenges continue to persist based on the fourth draft. It also promotes extraterritorial jurisdiction and includes broad definitions, causing further questions about its viability and implementation feasibility.

“USCIB is firmly committed to respecting human rights and advancing responsible business conduct globally,” said Ewa Staworzynska, USCIB director of corporate responsibility and labor affairs, who represented USCIB during the negotiations. “This draft Treaty, in its current form, would create a severe level of legal uncertainty for governments and for business, and it would contribute to divestments and market exits, especially in developing countries. Unfortunately, the current draft Treaty takes us away from the well-respected UN Guiding Principles for Business and Human Rights.”

The negotiations progressed slowly, only covering three out of 24 articles with vast disagreements on what the scope of the Treaty should be. The governments ultimately adopted the session report, by consensus, and thus agreed to present a procedural decision to the Human Rights Council in 2024 to request additional resources for the process. In addition, intersessional consultations will be held, together with legal experts, ahead of the 10th negotiation next year.

USCIB Supports Joint Global Business Position on UN Treaty on Business and Human Rights

USCIB joins in support of the Global Joint Business Position on the Draft Legally Binding Instrument on Business and Human Right.

The position paper responds to fourth Draft of the Legally Binding Instrument, also referred to as the “UN Treaty on Business and Human Rights,” prepared as the basis for the Ninth Session of the Open-Ended Intergovernmental Working Group on Transnational Corporations and Other Business Enterprises with Respect to Human Rights (OEIGWG).

According to USCIB Director for Corporate Responsibility and Labor Affairs Ewa Staworzynska, the Joint Business Position is the result of extensive inputs from USCIB member companies, as well as the International Organization of Employers (IOE), BusinessEurope and Business and OECD (BIAC).

Since the beginning of the negotiations of the Treaty, there have been fundamental concerns, and these continue to persist based on the content in the fourth Draft.

“At the core, the Treaty fails to address the root causes of adverse human rights impacts, such as weak governance, weak rule of law, corruption, lack of development and high levels of informality,” said Staworzynska. “Further, it blurs the differentiated roles of States and business when it comes to human rights, it promotes extraterritorial jurisdiction, and it would create severe liability risks and legal uncertainty if it were to be adopted in its current form.”

USCIB is committed to advancing responsible business conduct and encourages governments to take into account the legal implications and the feasibility of implementation and further urges governments to ensure that the Treaty is aligned with the well-respected and widely supported UN Guiding Principles on Business and Human Rights.

The position paper can be accessed here.

Annual Engaging Business Forum Gathers Experts to Grapple With Complex Human Rights Challenges

USCIB President and CEO Whitney Baird in Atlanta

USCIB, the International Organization of Employers (IOE) and the U.S. Chamber of Commerce hosted this year’s annual Engaging Business Forum (EBF) from October 11-12. As the largest business and human rights conference in the United States, the conference brought together nearly 500 public policy leaders from multinational companies, experts in human rights and sustainability, as well as representatives of civil society and government.

USCIB’s new President and CEO Whitney Baird reflected on the EBF’s unique value proposition for USCIB members and stakeholders.

“I am blown away by the business community’s engagement on human rights, labor rights and sustainability at large,” said Baird. “Our members are grappling with some extremely complex policy issues, which is why the discussions this week are so important; only when we come together to reflect on challenges and candidly share our perspective, can we effectively shape policies that work for all stakeholders.”

IOE Secretary General Roberto Suárez Santos, UN High Commissioner for Human Rights Volker Türk, and ILO Director-General Gilbert Houngbo were among this year’s speakers, along with prominent companies such as Disney, Walmart, Apple, Mondelez, among others.

Over the two-day conference, participants heard from experts about timely and critical topics such as corporate political responsibility and business and human rights, stakeholder right information, Artificial Intelligence (AI) and human rights, practical challenges of just transition and bringing living wage to life.

Hosted annually by Coca-Cola, EBF has become known for its innovative panels and eminent speakers, who have anticipated trends and helped shape industry-leading responsible business practice. The Forum is also unique in that it provides a platform for leaders from business and government to engage in candid discussions about practical solutions to complex human rights challenges.

“The business community is firmly committed to upholding the UN Guiding Principles on Business and Human Rights,” said USCIB Director for CRLA Ewa Staworzynska. “In order to advance global progress on human rights, States must protect human rights, and businesses must respect human rights.”

Staworzynska Leads Negotiations on Digitalization in Retail at the ILO

Last week, the International Labor Organization (ILO) convened a sectoral meeting on “Digitalization in the Retail Sector as an Engine for Economic Recovery and Decent Work.” The meeting brought together experts from around the world to discuss the rapid transformations in the retail sector and how to harness the potential of digitalization to advance post-pandemic recovery and decent work globally. The week-long meeting in Geneva resulted in a set of Conclusions, adopted by consensus.

USCIB Director of Corporate Responsibility and Labor Affairs Ewa Staworzynska served as the spokesperson on behalf of the Employers Group, representing business from all regions.

“Digitalization in the retail sector has brought new innovations and technologies and allowed for new jobs to be created,” said Staworzynska. “Digitalization is also facilitating formalization of work, which is important since many of the 420 million people employed in retail operate in the informal sector. Digitalization truly is a catalyst for economic growth and decent work,” she said.

According to Staworzynska, the negotiations were between employers, workers and government delegates, in line with the tripartite structure of the ILO. Several USCIB member companies were present as advisors to the employer delegation.

As a follow-up to the sectoral meeting, the ILO has been asked to continue promoting ratification of ILO instruments and providing technical assistance to Member States. The ILO was also asked to build capacities of its tripartite constituents to develop strategies for greater investment in digital technologies for enterprises and for the promotion of skills development programs, among others. They are also expected to share good practices and collect data on social inclusion and how harnessing digitalization can advance formalization and social dialogue in the sector.