Ensuring the effective implementation of transnational company agreements

Abstract

Over the past decade, a number of European companies have negotiated transnational company agreements. These agreements may help improve labour standards in the subsidiaries, and even more for those employed by subcontractors or suppliers. They may also encourage social dialogue at these levels. However, given their uncertain legal status, how it is possible to ensure their effective implementation throughout the company’s subsidiaries? What matters is less the legal status of the transnational collective agreement than the active involvement of the various actors involved in the process. The role of the signatories to the agreement is of course crucial, but its effective implementation also requires the commitment of local managements and workers’ representatives. This article draws on discussions and interviews with managers and worker representatives directly involved in the implementation of transnational company agreements, and identifies ways to encourage this kind of commitment.