As Secretary of State John Kerry recently noted in a speech prior to meetings between the United States and the Association of Southeast Asian Nations (ASEAN), Myanmar has made significant strides toward reform in recent years that have created opportunities for foreign investment.

USCIB has stepped up its advocacy for business in Myanmar, particularly on issues related to investment and responsible business practices. Here are some updates of our work in a country that awaits significant investment opportunities if political reforms continue.

International Labor Organization Action

In July, USCIB convened a high-level meeting in Washington, D.C. with the International Labor Organization, several U.S. government agencies (State Department, Department of Labor and U.S. Trade Representative) and representatives from U.S. civil society and unions to address responsible investment in Myanmar. USCIB and its affiliate network, the International Organization of Employers, also have excellent contacts on the ground through the long serving ILO Myanmar representative, Steve Marshall. Until the recent opening in Myanmar, Marshall was the only UN official posted there. He has extensive contacts with the regime and deep knowledge of the unique dynamics businesses face on the ground.

At the end of July, the Myanmar Parliament passed into law ILO Convention No. 182 on the Worst Forms of Child Labor, which the country ratified this past December. The law will ban child labor and calls for the immediate elimination of the worst forms of child labor, including slavery, trafficking, the use of child soldiers in armed conflict and child prostitution. The Labor Minister announced recently that implementation of the convention will start in December 2014.

“Much of the progress in Myanmar on labor issues is the result of sustained pressure since 1999 by the ILO, with the support of employers, to get the government to amend its law and practice, which ultimately resulted in expanded ILO technical assistance on forced labor and freedom of association, including a substantial ILO presence on the ground in Myanmar,” said Ariel Meyerstein, USCIB’s vice president of labor affairs, corporate responsibility and governance. The ILO is currently advising on the reform of many of Myanmar’s labor laws, an essential aspect of revamping its economy that will enable increased foreign investment there by U.S. companies.

U.S. Company Best Practices Bearing Fruit

Building upon these exiting reform efforts and the momentum from the July high-level meeting in Washington, U.S. Trade Representative Michael Forman visited Myanmar in late August to conclude an agreement with the Republic of Myanmar to begin a consultative process intended to lead to a new Initiative to Promote Fundamental Labor Rights and Practices in Myanmar by the time of the ASEAN Leaders meeting in November, 2014. According to USTR’s press release, other interested governments, as well as businesses and labor stakeholders, will be invited to take part in the development and implementation of the Initiative, whose main goals will be to develop a multi-year strategy for labor law reform and capacity building, to implement fundamental labor rights and decent working conditions on the ground, and to foster strong relations between businesses, workers, and the government of Myanmar.

There is also some evidence that local companies are absorbing the responsible business practices of U.S. companies – albeit slowly. The Myanmar Center for Responsible Business published the results of its transparency survey, which documented the transparency practices of Myanmar companies. The study found that nine of the largest Myanmar companies publish a significant amount of information about their policies, standards and practices on responsible business conduct, but that 25 of the 60 large companies are not at all transparent and have no websites. A number of other companies publish only a little information, generally relating to anti-corruption or organizational transparency. Companies scored fewest points in the areas of human rights, including land acquisition, a major concern to the Myanmar population.

As reforms continue on the ground in Myanmar, USCIB is supporting further investment opportunities for U.S. and other foreign companies as well as the application of more responsible business practices at all levels.

Staff contact: Ariel Meyerstein

More on USCIB’s Corporate Responsibility Committee

Founded last year in response to the global youth unemployment crisis, the Global Apprenticeships Network (GAN) is a coalition of companies that offers apprenticeships to young workers and shares youth employment best practices with other companies and labor administrations.

Developed jointly by USCIB’s affiliate networks – the International Organization of Employers and the Business and Industry Advisory Committee to the OECD – the GAN aims to create job opportunities for young people and ensure that businesses can tap employees with the right skills for the future.

Last week, the GAN took an important step forward by becoming an independent non-profit Swiss association. The IOE appointed José María Álvarez-Pallete, Chief Operating Officer of Telefónica, as the network’s chairman.

“I am honoured to take on the role of chair of the GAN and very committed to leading this association,” said Álvarez-Pallete. “Our vision is that corporations – big and small – can work together to address the difficult education-to-work transition faced by young people when they access the labor market.”

The GAN is committed to advocating work readiness programs by sharing best practices, establishing GAN National Networks with employer federations and developing practical toolkits.

Read more on the IOE website.

Staff contact: Ariel Meyerstein

More on USCIB’s Labor and Employment Committee

The tragic collapse of the Rana Plaza garment factory in Bangladesh last year, which killed over 1,000 people and injured many more, put a spotlight on the garment industry and the safety of the millions of workers, factory owners and consumers that make up the entire supply chain of textiles and garments.

The garment sector has been high on the agenda of the Organization for Economic Cooperation and Development (OECD), which issued a statement this month on “One Year After Rana Plaza,” calling for increased action on guidelines for multinational enterprises operating in the textile industry.

At this year’s OECD Global Forum, an informal Ministerial meeting between OECD government representatives resulted in a call for a joint ILO-OEC Roundtable on Responsible Supply Chains in the Textile and Garment Sector, which will be held at the OECD headquarters in Paris on September 29-30, 2014. The roundtable will convene many government and OECD officials, and provides an opportunity for business to have its voice at the table, as well as allow a diverse array of stakeholders and policymakers to have fruitful discussions and share their viewpoints.

The roundtable, which is organized with active input from the Business and Industry Advisory Council to the OECD and the International Organization of Employers, will provide a forum for dialogue between representatives of governments, the private sector, trade unions and civil society organizations on building responsible supply chains in the textiles and garment sector, taking into account the OECD Guidelines for Multinational Enterprises. The roundtable will also identify challenges and areas for future collaborative action.

Staff contact: Ariel Meyerstein

More on USCIB’s Corporate Responsibility Committee