Home / About the Global Compact / The Ten Principles / Principle 3
Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.
Businesses face many uncertainties in this rapidly changing global market. Establishing genuine dialogue with freely chosen workers' representatives enables both workers and employers to understand each other's problems better and find ways to resolve them. Security of representation is a foundation for building trust on both sides. Freedom of association and the exercise of collective bargaining provide opportunities for constructive rather than confrontational dialogue, and this harnesses energy to focus on solutions that result in benefits to the enterprise, its stakeholders, and society at large.
A number of studies indicate that the dynamic that results from freedom of association can set in motion a "decent work"-cycle that increases productivity, incomes and profits for all concerned. The guarantee of representation through a "voice at work" facilitates local responses to a globalized economy, and serves as a basis for sustainable growth and secure investment returns. The results help bridge the widening representational gap in global work arrangements, and facilitate the input of those people, regions and economic sectors - especially women and informal sector workers - who otherwise may be excluded from participating in processes that build decent work environments.
Freedom of association and collective bargaining involve employers and workers and their respective organizations freely discussing issues at work in order to reach agreements. Collective bargaining requires independent parties and thus representative organizations of workers (including trade unions). In order to function, trade unions require respect for various internationally recognized civil and political liberties including freedom of speech and assembly, freedom from arbitrary arrest and the right to be free of government interference (to name a few).
Freedom of association implies a respect for the right of employers and workers to freely and voluntarily establish and join organizations of their own choice and these organizations have the right to carry out their activities in full freedom and without interference.
Employers should not interfere in an employee’s decision to associate, or discriminate against the employee or their representative.
"Association" includes activities of rule formation, administration and the election of representatives. The freedom to associate involves employers, unions and workers representatives freely discussing issues at work in order to reach agreements that are jointly acceptable. These freedoms also allow for industrial action to be taken by workers (and organizations) in defense of their economic and social interests.
Collective bargaining refers to the process or activity leading up to the conclusion of a collective agreement. Collective bargaining is a voluntary process used to determine terms and conditions of work and the regulation of relations between employers, workers and their organizations.
An important part of the effective recognition of the right to collective bargaining is the 'principle of good faith'. This is important for the maintenance of the harmonious development of labour relations. This principle implies that the social partners work together and make every effort to reach an agreement through genuine and constructive negotiations, and that both parties avoid unjustified delays in negotiations. The principle of good faith does not imply a pre-defined level of bargaining or require compulsory bargaining on the part of employers or workers and their organizations.
The Global Compact does not suggest that employers change their industrial relations frameworks. However, as organizations such as the International Organization for Employers have indicated, some 'high performance' companies have recognized the value of using dialogue and negotiation to achieve competitive outcomes.
