3 International cooperation

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The third main task of the NCP is to cooperate and share good practices with the OECD and the National Contact Points in other countries. The NCP and the Secretariat participate in network meetings in the OECD and the Secretariat participates as an observer in the OECD Working Party on Responsible Business Conduct.

The OECD invited ministers and high-level representatives from OECD countries and other countries to a Ministerial Meeting on responsible business conduct in Paris on 14-15 February 2023. The main topics were how to promote and facilitate responsible business operations in a global economy and accountability as a cornerstone of the international rules-based trade and investment system. The Norwegian delegation was led by Anne Marit Bjørnflaten of the Ministry of Trade, Industry and Fisheries. The NCP Secretariat was part of the delegation.

The OECD’s updated guidelines

The NCP’s most important task in 2023 was the work on updating the OECD Guidelines for Responsible Business Conduct.

The NCP provided input to the updates and the Secretariat was in close contact with the Ministry of Trade, Industry and Fisheries, which represents Norway in the OECD Working Party on Responsible Business Conduct.

The NCP also attended network meetings for the National Contact Points and shared experiences from its efforts to promote the OECD Guidelines, provide guidance to the business community and handle complaints.

Nordic-Baltic network

Since 2018, the Nordic-Baltic NCPs have held annual network meetings to share information and experience and to learn from each other. In 2023, the network met in Reykjavik.

The Norwegian NCP shared its experience with handling complaints, presented findings from the survey of businesses and talked about how it works to reach companies through courses, its own events and events organised by others, and by developing tools for responsible business conduct and due diligence. The NCP shared its latest annual report in English at the meeting.

The NCP also participated in an external seminar, ‘Sustainable Value Chains – from voluntary measures to legislation’, organised by the Embassy of Sweden and the EU Delegation to Iceland, on laws and regulations concerning sustainability and responsible business conduct. The NCP presented the Transparency Act.

Educational trip to Bangladesh

Garment production has been vital to reducing poverty and securing economic growth in Bangladesh, but workers have yet to receive a living wage.

In 2023, the NCP participated in a project trip to Bangladesh, the world’s second largest garment producer after China. The trip was organised by Ethical Trade Norway and Ethical Trading Initiative Bangladesh. It provided useful insight into what has been achieved, but also the challenges that remain in the sector.

Breakthrough safety agreement

The garment sector accounts for 84 per cent of the country’s export and has enabled millions of women to participate in working life. However, the sector has also been plagued by accidents due to inadequate safety, which did not lead to any changes at the factories.

A catastrophic accident in 2013 changed that when the Rana Plaza factory building collapsed. 1,133 people were killed, and thousands were injured. This accident bolstered the demand from the trade union movement and civil society for the business sector to be held accountable for health and safety in the supply chain.

The result was a groundbreaking legally binding agreement between trade unions and international companies producing garments in Bangladesh – today known as the International Accord. In 2022, the agreement was extended with a separate Pakistan Accord.

The agreement has contributed to major improvements in terms of safety in factories in Bangladesh. The Rana Plaza accident was an important catalyst for regulatory developments in the EU and Norway in recent years, including the Transparency Act.

Minimum wage far from a living wage

However, workers’ rights have not been strengthened adequately, even though freedom of association is enshrined in the Constitution. Trade union work is disrupted by union busting, violence against workers and complicated processing requirements, according to the International Trade Union Confederation (ITUC).

This was evident in the autumn of 2023, when the minimum wage for workers in garment factories was negotiated for the first time in five years. Four worker representatives have been killed and many workers were arrested for participating in demonstrations.

Trade unions submitted a demand for an increase from the current minimum wage of 8,000 taka (NOK 910) to 23,000 taka (NOK 2,620), calculated as the minimum amount needed to meet the basic needs of a family in Dhaka. The authorities did not agree to the demand and set a new minimum wage of 12,500 taka in November. This may be a wage increase of some 56 per cent, but in real terms, as IndustriALL points out, it will primarily go to covering a sharp rise in prices and inflation.

Welcome legislation

The OECD Forum for Due Diligence in the Garment and Footwear Sector in February 2024 highlighted the importance of binding agreements, legislation and collective bargaining. These measures are important for the implementation of agreements, holding businesses accountable and for giving workers a seat at the negotiating table.

In a meeting with the group, IndustriALL Bangladesh Council stressed that they welcome legislation that enables buyers to put pressure on suppliers and authorities in Bangladesh. At the same time, it is important that buyers take their share of the burden and do not push costs and accountability down the supply chain.

Accounts 2023

The NCP’s budget in 2023 was NOK 5.5 million. The funds have mainly gone to the salaries in the Secretariat as well as remuneration of the NCP members. Other funds have mainly gone to promotional efforts and mediation in specific instances.

All figures in NOK.