USCIB Welcomes ILO Framework to Abolish Violence, Harassment in World of Work

USCIB VP for Corporate Responsibility and Labor Affairs Gabriella Rigg Herzog at the ILC

In addition to marking the International Labor Organization’s (ILO) Centenary Anniversary, this year’s International Labor Conference (ILC) focused on the adoption of a new ILO Centenary Declaration and a new ILO Convention and Recommendation on Violence & Harassment in the World of Work. USCIB Vice President for Corporate Responsibility and Labor Affairs Gabriella Rigg Herzog was on the ground leading USCIB’s U.S. Employer delegation, which represented USCIB member companies for the entire duration of the two-week ILC, taking place June 10-21 in Geneva, Switzerland. Herzog was joined by more than 5,700 delegates at the ILC, who were representing members of the respective groups that comprise the tripartite structure of the ILO – workers, governments and business.

USCIB engaged actively in both the Centenary Declaration and Violence & Harassment discussions, and was particularly pleased to be part of the successful adoption of the new Convention on Violence and Harassment. “Both violence and harassment are unacceptable behaviors that have no place in our societies – and especially not in our workplaces,” said Herzog in her remarks at the concluding ceremony of the ILC. “The Convention document is aspirational in its vision, as it should be for such an important and universal concern. The Convention also clarifies that for public and private employers to effectively work to eradicate these negative practices, such efforts must be commensurate with their degree of control.” 

Herzog also noted disappointment that ILC participants did not join the Employers group in sufficient numbers to ensure that LGBTI would be explicitly cited in the new ILO instruments for protection. “Every person deserves to be treated with dignity and respect, and protection from violence and harassment applies to all people, without exception,” stressed Herzog. “As we enter the second century of the ILO’s history, we call upon the Secretary-General Guterres of the United Nations and Director General Ryder of the ILO to be unwavering in their work to bring added and necessary clarity to international instruments to ensure that they are truly inclusive so that ALL PEOPLE may be protected from violence, harassment and discrimination EVERYWHERE,” Herzog contended.

According to Herzog, adoption of an ILO Convention by the ILC is a clearly a great accomplishment, especially on such an important topic as violence & harassment. Even more important, however, will be for governments to take the next step to actually ratify the convention because that would trigger a responsibility for governments to modify their domestic laws to give effect to the provisions within any new ILO convention. This will be a critical next step if we want to see the needed changes to eliminate violence and harassment in countries and workplaces around the world.  

Still, the passage of the Convention and Recommendation, together with the Centenary Declaration, constitute important steps in tackling issues that have, are, and will affect governments, employers and workers.  Looking to the ILO’s coming 100 years, Herzog stated at the ILC, “We must all continue to respect the value and context of social dialogue and other labor relations systems in helping to navigate change.  As the ILO’s founders wisely understood 100 years ago, open and honest tripartite dialogue, based on trust and political will, can be an important tool for finding shared solutions and facilitating the implementation of reforms geared towards the future.”

 

World Chambers Congress Tackles Key Development Issues

The International Chamber of Commerce (ICC) concluded its 11th World Chambers Congress on June 14, held in Rio de Janeiro, Brazil. This year’s Congress included three days of engagement among over 1,000 delegates on key issues affecting chambers and their respective business communities.

The Congress focused on four main initiatives, including a sustainable future for all, skills for the future, financial inclusion and the World Chambers Competition. “This year’s event was a huge step forward in engaging the chambers network more actively and cohesively in ICC’s global work – with great buy-in for our five campaigns and a growing interest in how ICC can help chambers redefine their value proposition in a market that is undergoing significant disruption,” reflected ICC Secretary General John Denton.

Denton also highlighted a new initiative as part of ICC’s campaign to “Make Climate Action Everyone’s Business.” The “Chambers Climate Coalition” provides a platform for chambers to visibly demonstrate their commitment to take action aligned with the Paris Agreement and the latest climate science. It also provides an opportunity to showcase the important role Chambers can play in driving the transition to a cleaner and more resilient planet. More than 450 chambers from six continents have already signed-up for the Coalition – with signatories from countries including China, India, South Africa, Nigeria and the United States.

“We are already rallying other chambers to sign on and will be providing toolkits to signatories to ensure effective local climate engagement in the coming months,” said Denton. The Coalition has received strong support from the United Nations Secretary General’s team and the UN Framework Convention on Climate Change.

USCIB Senior Vice President and CFO Declan Daly attended the meetings on behalf of USCIB.

The next Congress will be held in Dubai in 2021.

USCIB Urges Reversal of 1-800 Contacts FTC Ruling

USCIB filed an amicus brief with regards to 1-800 Contacts, Inc. case to highlight the challenges American businesses would face under the recent Federal Trade Commission’s (FTC) decision’s approach to antitrust liability for trademark settlements, and explain the potential negative impacts the decision would have on businesses, consumers and competition if left to stand.

USCIB General Counsel Nancy Thevenin led the process for USCIB. “The Commission’s decision creates substantial uncertainty regarding the enforcement and settlement of intellectual property rights, increases the risk of arbitrary enforcement against even routine settlements, and potentially exposes settlements to such risk for decades,” warned Thevenin. “The decision should be reversed.”

Earlier this year, the FTC decided to impose antitrust liability against 1-800 Contacts, the largest online retailer of contact lenses in the U.S., on the basis that 1-800 Contacts’ settlements of trademark infringing lawsuits against at least fourteen competing online contact lens retailers restricted trade. Among other things, USCIB’s amicus argues that the Commission’s decision ignores the critical importance to business of intellectual property rights and its enforcement and would unfairly require the lawful exercise of such rights to a higher pro-competition standard.

USCIB thanks Eileen M. Cole, Bryant D. Gant and Seiji Niwa of member firm White & Case for their work with the amicus.

 

USCIB Responds to US Tariff Escalation With China

In response to the recent escalation of tit-for-tat tariffs between the United States and China, USCIB submitted comments on June 17 to the office of the United States Trade Representative (USTR) on the proposed modification to Section 301 regarding China’s policies and practices related to technology transfer, intellectual property and innovation. USCIB members are concerned that proposed tariffs on essentially all Chinese imports will stifle the U.S. economy and will not achieve the Administration’s goal of changing China’s behavior.

Following this submission, USCIB’s China lead Eva Hampl is getting ready to testify at USTR on Friday, June 21. “While China’s forced technology transfer requirements, state interventions, and other unfair trade practices harm many U.S. companies, workers, consumers, and competitiveness, these tariffs can also similarly endanger the U.S. economy,” warns Hampl. “Specifically, this proposed list now includes categories of products that only impact U.S. companies, and not their global competitors. Ceding market share to competitors is not weakening the Chinese economy, it is merely weakening the U.S. market.”

USCIB also joined with Tariffs Hurt the Heartland, alongside 661 other companies and association, to send a letter to President Trump on June 13 urging the administration to negotiate a strong deal with China that addresses longstanding structural issues, improves U.S. global competitiveness and eliminates tariffs. “This goal can be achieved without taxing Americans,” the letter emphatically stated.

The letter also stated that “broadly applied tariffs are not an effective tool to change China’s unfair trade practices” and would “result in the loss of more than 2 million U.S. jobs, add more than $2,000 in costs for the average American family of four and reduce the vale of U.S. GDP by 1.0 percent.”

USCIB Sponsors Seminar on Mitigating Business Risk With Arbitration

USCIB/ICC USA sponsored a seminar in Albuquerque, New Mexico on June 14 on international arbitration and how that state’s businesses can use arbitration to mitigate the risks of doing business overseas. Some thirty New Mexico business executives, lawyers and law students attended the presentation, which was opened by Roberta Cooper Ramo, former president of both the American Bar Association and the American Law Institute.

Marek Krasula, counsel for the ICC International Court of Arbitration in New York and David Wilson, partner at Sherman & Howard in Denver, provided an overview of ICC arbitration and how to best draft contracts to provide for it. Matthew Draper, a partner at Draper & Draper in New York and Santa Fe, moderated a panel discussion addressing issues of particular relevance to local companies, such as using arbitration to protect IP rights, recovery of attorneys’ fees by prevailing parties, and keeping the costs of arbitration to a minimum.

“The ICC’s new Expedited Procedures, which apply when less than two million dollars is at stake, reduce significantly the time and cost of dispute resolution, and may be a good fit for New Mexico companies,” said Draper.

Vice Dean of the University of New Mexico School of Law Camille Carey noted in her closing remarks that she hoped the law school would expand opportunities for students to learn about international arbitration.

Remembering John Kloosterman, Labor Standards Expert

John Kloosterman (2nd from left) relaxed prior to the 2016 ILO conference with (L-R) then-USCIB International Labor Counsel Ed Potter, USCIB President and CEO Peter Robinson, and USCIB Corporate Responsibility and Labor Affairs Committee Chair Laura Chapman Rubbo (Disney).

USCIB members, staff and friends mourn the passing of John Kloosterman, a widely respected labor and employment lawyer who was an active member of USCIB’s Corporate Responsibility and Labor Affairs Committee, and who served on many U.S. employer delegations to the International Labor Organization (ILO). John passed away tragically in a traffic accident on May 28, and will be greatly missed by USCIB and our members.

In particular, John’s contributions to the work of the ILO’s Committee on the Application of Standards, an important part of the ILO’s supervisory mechanism on which he served from 2012 to 2017, were recognized and appreciated by his peers in the global employer community.

We extend our heartfelt condolences to John’s family, especially his wife Jamie. The couple were serial adopters of large, lovable shelter dogs. In lieu of flowers or food, Jamie has asked that donations be made in John’s name to the San Francisco SPCA.

In 2018, John joined the Canadian law firm of Hicks Morley. Read more about his career and legacy in this tribute on the firm’s website.

Business Pushes Back Against Mexico Tariff Plan

Following President Trump‘s announcement of his administration’s plan to impose tariffs on imports from Mexico, to compel the country to act more forcefully against unauthorized migration, USCIB joined a broad array of U.S. business groups in criticizing the plan.

The groups wrote in a June 7 joint statement that the plan – involving five-percent tariffs that would ratchet up to 25 percent over a period of months – would impose undue hardship on American companies and consumers, and would jeopardize passage of the U.S. Mexico Canada Agreement, the successor to NAFTA.

“We have committed to work with the administration and both sides of the aisle in Congress to support congressional passage of USMCA,” the business groups wrote. “We are supportive of the constructive discussions members of the administration have had with members of Congress. But imposing unilateral tariffs on Mexico jeopardizes a successful bipartisan vote on USMCA and approval of the agreement.

President Trump withdrew the threat of tariffs following a pledge by Mexico to increase its enforcement efforts.

Business for 2030 Platform Honored by International Chamber of Commerce

The Business for 2030 initiative, launched by USCIB in 2015 as a platform to showcase private-sector efforts aligned with the UN Sustainable Development Goals, was honored by our partners at the International Chamber of Commerce in May.

At a meeting of ICC National Committees in Paris, Business for 2030 took third place in the Americas region in the “NC Initiative of the Year” competition for 2018-2019. USCIB President and CEO Peter Robinson accepted on behalf of USCIB and its Business for 2030 team.

“I couldn’t be prouder of our team and of the many, many companies and organizations that have contributed to this essential platform over the past four years,” Robinson said.

Business for 2030 showcases past and ongoing contributions by companies and business organizations to sustainable development, through the lens of the SDGs. It currently features projects in over 150 countries, which can be viewed by specific SDGs, by company and by country.

The site aims to stimulate a more productive partnership between the public and private sectors – at the UN and at national levels – and to demonstrate the need for a proportionate role for business in the negotiations, implementation and follow-up mechanisms of the 2030 Development Agenda at both the UN and at national levels.

Rounding out the winners from the Americas region were ICC Brazil, which won 1st place (and the top worldwide prize overall) for its ITTI Cognitive Trade Advisor program, and ICC Guatemala in 2nd place for its GuateIntegra anti-corruption initiative.

USCIB Statement on WTO e-Commerce Negotiations

USCIB has issued Recommendations on the WTO e-Commerce negotiations, reflecting member priorities and goals for the negotiations, which had their first round in May. The recommendations are being shared with relevant government officials and stakeholders.

At the December 2017 WTO ministerial in Buenos Aires, 71 countries agreed to begin discussing new global rules to facilitate the expansion of the digital economy. Thanks to intensive work by those countries, last January 76 countries (notably including the U.S., EU, and China) announced the launch of formal negotiations.

In addition to this paper, USCIB is actively engaging in the negotiations in Geneva via various efforts, including the Digital Trade Network and the International Chamber of Commerce.

“The vast majority of the world’s economy is at the table,” wrote Nick Ashton-Hart, the Digital Trade Network’s Geneva representative, in the most recent issue of USCIB’s magazine, International Business. “Since it is estimated that the digital economy underpins approximately one-third of global GDP this is a negotiation that will impact industry everywhere.”

In Peru, USCIB’s Goldberg Highlights Gender Inclusion

USCIB’s Ronnie Goldberg (center) at the UN Equal Pay International Coalition meeting in Lima, Peru

USCIB Senior Counsel Ronnie Goldberg participated in a meeting of the UN’s Equal Pay International Coalition (EPIC), May 28-29 in Lima, Peru. Launched by the UN General Assembly in 2017, EPIC aims to help stakeholders realize and achieve SDG Target 8.51: “By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.”

Specifically, EPIC is an initiative driven by stakeholders committed to reduce the gender pay gap and make equal pay for work of equal value a reality across all countries and sectors. Coordinated by a secretariat encompassing the ILO, UN Women and the OECD, the coalition engages governments, employers, workers and their organizations, the private sector, civil society and academia to take concrete steps to accelerate the closing of the gender pay gap and the achievement of pay equity.

At the Peru meeting, which was focused on “south-south” dialogue among developing countries, Goldberg spoke on behalf of the International Organization of Employers (IOE), part of USCIB’s global business network. She said that while the rights-based case for gender equality, women’s empowerment, and equal pay is clear, there is also a robust business case for gender equality.

“To speak in the language of business, the economic empowerment of women is a critical enabler of economic development and growth,” Goldberg stated. “Representing at least half of all human talent and potential and an enormous market of consumers, women are a valuable and strategic resource in developed and developing countries alike.”

Moreover, a growing body of evidence shows that companies that commit to and enable gender diversity are realizing clear bottom line benefits, not least through the attraction and retention of talented women, Goldberg said.

Companies can do – and are doing – a lot to foster gender diversity in their workplaces, according to Goldberg. Among the many lessons learned from the private sector’s experience:

  • Buy-in at the top is essential.
  • Pay equity is not a one-time fix. Constant attention is required, including annual benchmarking exercises.
  • Unconscious bias is an important issue. Some companies have instituted training programs designed to uncover and deal with such biases.
  • HR and hiring practices/policies need to be continually monitored.
  • Some companies are opening themselves to rigorous outside audit and certification.
  • Family-friendly and gender-blind policies on flexible work hours, maternity/paternity and sick leave benefit everyone, and extending them to all employees helps to reduce gender gaps.

Goldberg said the experience of employers indicated that gender pay gaps are not going to magically disappear, and eliminating them should not be viewed as a one-time fix. “Rather, they require specific interventions that will differ according to national circumstances, corporate cultures, available resources, and political will,” she said. “The good news is that the issue is now firmly in the public eye and an increasing number of companies are stepping up to meet the challenge.”