GRI 402: LABOR/MANAGEMENT RELATIONS 2016 GRI 402 Contents Introduction 3 GRI 402: Labor/Management Relations 5 1. Management approach disclosures 5 2. Topic-specific disclosures 6 Disclosure 402-1 Minimum notice periods regarding operational changes 6 Glossary 7 References 9 About this Standard Responsibility This Standard is issued by the Global Sustainability Standards Board (GSSB). Any feedback on the GRI Standards can be submitted to standards@globalreporting.org for the consideration of the GSSB. Scope GRI 402: Labor/Management Relations sets out reporting requirements on the topic of labor/management relations. This Standard can be used by an organization of any size, type, sector or geographic location that wants to report on its impacts related to this topic. Normative This Standard is to be used together with the most recent versions of the following references documents. GRI 101: Foundation GRI 103: Management Approach GRI Standards Glossary In the text of this Standard, terms defined in the Glossary are underlined. Effective date This Standard is effective for reports or other materials published on or after 1 July 2018. Earlier adoption is encouraged. Note: This document includes hyperlinks to other Standards. In most browsers, using ‘ctrl’ + click will open external links in a new browser window. After clicking on a link, use ‘alt’ + left arrow to return to the previous view. 2 GRI 402: Labor/Management Relations 2016 Introduction A. Overview An organization then selects from the set of topic- specific GRI Standards for reporting on its material This Standard is part of the set of GRI Sustainability topics. These Standards are organized into three series: Reporting Standards (GRI Standards). These Standards 200 (Economic topics), 300 (Environmental topics) and are designed to be used by organizations to report 400 (Social topics). about their impacts on the economy, the environment, and society. Each topic Standard includes disclosures specific to that topic, and is designed to be used together with The GRI Standards are structured as a set of GRI 103: Management Approach, which is used to interrelated, modular standards. The full set can be report the management approach for the topic. downloaded at www.globalreporting.org/standards/. GRI 402: Labor/Management Relations is a There are three universal Standards that apply to every topic-specific GRI Standard in the 400 series organization preparing a sustainability report: (Social topics). GRI 101: Foundation GRI 102: General Disclosures GRI 103: Management Approach B. Using the GRI Standards and making claims There are two basic approaches for using the GRI GRI 101: Foundation is the starting point for using Standards. For each way of using the Standards there the GRI Standards. It has essential information is a corresponding claim, or statement of use, which on how to use and reference the Standards. an organization is required to include in any published materials. Figure 1 Overview of the set of GRI Standards 1. T  he GRI Standards can be used as a set to prepare a sustainability report that is in accordance with Foundation Starting point the Standards. There are two options for preparing for using the a report in accordance (Core or Comprehensive), GRI Standards depending on the extent of disclosures included in GRI the report. 101 Universal An organization preparing a report in accordance Standards with the GRI Standards uses this Standard, General Management GRI 402: Labor/Management Relations, if this is one Disclosures Approach of its material topics. GRI GRI 102 103 2. S elected GRI Standards, or parts of their content, can also be used to report specific information, To report contextual To report the without preparing a report in accordance with information about management approach an organization for each material topic the Standards. Any published materials that use the GRI Standards in this way are to include a ‘GRI-referenced’ claim. Economic Environmental Social See Section 3 of GRI 101: Foundation for more Topic- specific information on how to use the GRI Standards, Standards GRI GRI GRI and the specific claims that organizations are 200 300 400 required to include in any published materials. Select from these to report specific disclosures for each material topic GRI 402: Labor/Management Relations 2016 3 C. Requirements, recommendations and guidance The disclosures in this Standard can provide information about an organization’s impacts related The GRI Standards include: to labor/management relations, and how it manages these impacts. Requirements. These are mandatory instructions. In the text, requirements are presented in bold font Reporting on collective bargaining is covered in more and indicated with the word ‘shall’. Requirements are detail in GRI 407: Freedom of Association and Collective to be read in the context of recommendations and Bargaining. In addition, Disclosure 102-41 in GRI 102: guidance; however, an organization is not required to General Disclosures requires reporting on the comply with recommendations or guidance in order percentage of total employees covered by collective to claim that a report has been prepared in accordance bargaining agreements. with the Standards. Recommendations. These are cases where a particular course of action is encouraged, but not required. In the text, the word ‘should’ indicates a recommendation. Guidance. These sections include background information, explanations and examples to help organizations better understand the requirements. An organization is required to comply with all applicable requirements in order to claim that its report has been prepared in accordance with the GRI Standards. See GRI 101: Foundation for more information. D. Background context In the context of the GRI Standards, the social dimension of sustainability concerns an organization’s impacts on the social systems within which it operates. GRI 402 addresses the topic of labor/management relations. This covers an organization’s consultative practices with employees and their representatives, including its approach to communicating significant operational changes. An organization’s consultation practices are expected to be aligned with relevant international norms and standards. Collective bargaining can play an important role in an organization’s consultation practices. Collective bargaining refers to all negotiations which take place between one or more employers or employers' organizations, on the one hand, and one or more workers' organizations (trade unions), on the other, for determining working conditions and terms of employment or for regulating relations between employers and workers.1 These concepts are covered in key instruments of the International Labour Organization and the Organisation for Economic Co-operation and Development: see References. 1 This definition is based on the International Labour Organization (ILO) Convention 154, ‘Collective Bargaining Convention’, 1981. 4 GRI 402: Labor/Management Relations 2016 GRI 402: Labor/Management Relations This Standard includes disclosures on the management approach and topic-specific disclosures. These are set out in the Standard as follows: • Management approach disclosures (this section references GRI 103) • Disclosure 402-1 Minimum notice periods regarding operational changes 1. Management approach disclosures Management approach disclosures are a narrative explanation of how an organization manages a material topic, the associated impacts, and stakeholders’ reasonable expectations and interests. Any organization that claims its report has been prepared in accordance with the GRI Standards is required to report on its management approach for every material topic, as well as reporting topic-specific disclosures for those topics. Therefore, this topic-specific Standard is designed to be used together with GRI 103: Management Approach in order to provide full disclosure of the organization’s impacts. GRI 103 specifies how to report on the management approach and what information to provide. Reporting requirements 1.1 The reporting organization shall report its management approach for labor/management relations using GRI 103: Management Approach. GRI 402: Labor/Management Relations 2016 5 2. Topic-specific disclosures Disclosure 402-1 Minimum notice periods regarding operational changes Reporting requirements The reporting organization shall report the following information: a. Minimum number of weeks’ notice typically provided to employees and their representatives Disclosure prior to the implementation of significant operational changes that could substantially 402-1 affect them. b. For organizations with collective bargaining agreements, report whether the notice period and provisions for consultation and negotiation are specified in collective agreements. Guidance Guidance for Disclosure 402-1 This disclosure also allows an assessment of an Minimum notice periods can be found in corporate organization’s consultation practices in relation to policies and standard employment contracts. Different expectations expressed in relevant international norms. policy statements can exist at a regional level. The essence of consultation is that management An organization can identify the collective bargaining takes the views of workers into account when agreements referred to in Disclosure 102-41 of making specific decisions. Therefore, it is important GRI 102: General Disclosures, and review the notice that consultation takes place before a decision is period clauses within these documents. made. Meaningful consultation includes the timely provision of all information needed to make an Background informed decision to workers or their representatives. Genuine consultation involves dialogue; opinion surveys Organizations are expected to provide reasonable and questionnaires are not considered consultation. notice of significant operational changes to employees and their representatives, as well as to appropriate Timely and meaningful consultation allows the affected government authorities. Minimum notice periods parties to understand the impacts of the changes, are a measure of an organization’s ability to such as possible loss of employment. It also gives an maintain employee satisfaction and motivation opportunity for them to work collectively to avoid while implementing significant changes to operations. or mitigate negative impacts as much as possible (see references 11 and 12 in the References section). This disclosure provides insight into an organization’s Consultative practices that result in good industrial practice of ensuring timely discussion of significant relations help to provide positive working environments, operational changes, and engaging with its employees reduce turnover, and minimize operational disruptions. and their representatives to negotiate and implement these changes, which can have positive or negative implications for workers. 6 GRI 402: Labor/Management Relations 2016 Glossary This Glossary includes definitions for terms used in this Standard, which apply when using this Standard. These definitions may contain terms that are further defined in the complete GRI Standards Glossary. All defined terms are underlined. If a term is not defined in this Glossary or in the complete GRI Standards Glossary, definitions that are commonly used and understood apply. collective bargaining all negotiations which take place between one or more employers or employers' organizations, on the one hand, and one or more workers' organizations (trade unions), on the other, for determining working conditions and terms of employment or for regulating relations between employers and workers Note 1: Collective agreements can be at the level of the organization; at the industry level, in countries where that is the practice; or at both. Note 2: Collective agreements can cover specific groups of workers; for example, those performing a specific activity or working at a specific location. Note 3: This definition is based on the International Labour Organization (ILO) Convention 154, ‘Collective Bargaining Convention’, 1981. employee individual who is in an employment relationship with the organization, according to national law or its application impact In the GRI Standards, unless otherwise stated, ‘impact’ refers to the effect an organization has on the economy, the environment, and/or society, which in turn can indicate its contribution (positive or negative) to sustainable development. Note 1: In the GRI Standards, the term ‘impact’ can refer to positive, negative, actual, potential, direct, indirect, short-term, long-term, intended, or unintended impacts. Note 2: Impacts on the economy, environment, and/or society can also be related to consequences for the organization itself. For example, an impact on the economy, environment, and/or society can lead to consequences for the organization’s business model, reputation, or ability to achieve its objectives. material topic topic that reflects a reporting organization’s significant economic, environmental and social impacts; or that substantively influences the assessments and decisions of stakeholders Note 1: For more information on identifying a material topic, see the Reporting Principles for defining report content in GRI 101: Foundation. Note 2: To prepare a report in accordance with the GRI Standards, an organization is required to report on its material topics. Note 3: Material topics can include, but are not limited to, the topics covered by the GRI Standards in the 200, 300, and 400 series. GRI 402: Labor/Management Relations 2016 7 significant operational change alteration to the organization’s pattern of operations that can potentially have significant positive or negative impacts on workers performing the organization’s activities Note: Significant operational change can include restructuring, outsourcing of operations, closures, expansions, new openings, takeovers, sale of all or part of the organization, or mergers. 8 GRI 402: Labor/Management Relations 2016 References The following documents informed the development of this Standard and can be helpful for understanding and applying it. Authoritative intergovernmental instruments: 1. International Labour Organization (ILO) Convention 87, ‘Freedom of Association and Protection of the Right to Organise Convention’, 1948. 2. International Labour Organization (ILO) Convention 98, ‘Right to Organise and Collective Bargaining Convention’, 1949. 3. International Labour Organization (ILO) Convention 135, ‘Workers’ Representatives Convention’, 1971. 4. International Labour Organization (ILO) Convention 154, ‘Collective Bargaining Convention’, 1981. 5. International Labour Organization (ILO) Convention 158, ‘Termination of Employment Convention’, 1982. 6. International Labour Organization (ILO), Key Indicators of the Labour Market (KILM), http://www.ilo.org/global/statistics-and-databases/research-and-databases/kilm/lang--en/index.htm, accessed on 1 September 2016. 7. International Labour Organization (ILO), LABORSTA Internet, http://laborsta.ilo.org/, accessed on 1 September 2016. 8. International Labour Organization (ILO) Recommendation 91, ‘Collective Agreements Recommendation’, 1951. 9. International Labour Organization (ILO) Recommendation 94, ‘Co-operation at the Level of the Undertaking Recommendation’, 1952. 10. International Labour Organization (ILO) Recommendation 163, ‘Collective Bargaining Recommendation’, 1981. 11. International Labour Organization (ILO), ‘Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy’, 2006. 12. Organisation for Economic Co-operation and Development (OECD), OECD Guidelines for Multinational Enterprises, 2011. GRI 402: Labor/Management Relations 2016 9 Legal liability This document, designed to promote sustainability reporting, has been developed by the Global Sustainability Standards Board (GSSB) through a unique multi- stakeholder consultative process involving representatives from organizations and report information users from around the world. While the GRI Board of Directors and GSSB encourage use of the GRI Sustainability Reporting Standards (GRI Standards) and related Interpretations by all organizations, the preparation and publication of reports based fully or partially on the GRI Standards and related Interpretations are the full responsibility of those producing them. Neither the GRI Board of Directors, GSSB nor Stichting Global Reporting Initiative (GRI) can assume responsibility for any consequences or damages resulting directly or indirectly from the use of the GRI Standards and related Interpretations in the preparation of reports, or the use of reports based on the GRI Standards and related Interpretations. Copyright and trademark notice standards@globalreporting.org This document is copyright-protected by Stichting Global Reporting Initiative (GRI). The reproduction and distribution of this document for information and/or use in www.globalreporting.org preparing a sustainability report is permitted without prior permission from GRI. However, neither this document nor any extract from it may be reproduced, stored, translated, or transferred in any form or by any means (electronic, mechanical, photocopied, recorded, or otherwise) for any other purpose without prior written GRI permission from GRI. PO Box 10039 Global Reporting Initiative, GRI and logo, GSSB and logo, and GRI Sustainability Reporting Standards (GRI Standards) are trademarks of Stichting Global 1001 EA Reporting Initiative. Amsterdam © 2018 GRI All rights reserved. The Netherlands ISBN: 978-90-8866-113-6 10 GRI 402: Labor/Management Relations 2016