METRO Cash & Carry V Metro Habib Employee Union (on behalf of the employees of METRO Habib Cash & Carry, Pakistan)

Overview

NCP Decision No Decision
Current Status Withdrawn
Date Submitted 08/01/2014
Date Closed 21/05/2014
Case Duration 19 weeks and 0 days
Host Country Pakistan  (Non-adhering country)
Issue(s) Right to organise; retaliation against trade unionists; working conditions, health and safety
Provisions Cited V.1-e  V.4-b  V.4-c   
Case Description In January 2014, the Metro Habib Employee Union submitted a complaint to the German NCP regarding the activities of the German enterprise METRO AG’s subsidiary METRO Cash & Carry, in Pakistan. The complaint describes that employment contracts were breached in terms of remuneration and working hours, trade union members were treated unfairly and threatened because of their union activities, and that hygiene standards and safety provisions were not observed. According to the complainant, neither the management, nor the human resources department of METRO Cash & Carry reacted to the employees' complaints.
Developments Whilst the German NCP evaluated whether the complaint justified further investigation, Metro AG pursued an in-house solution. Shortly before contacting the NCP, the Union had approached METRO AG, which promptly began an internal process looking to address the problems in its subsidiary in Pakistan. In order to do this, it directly involved the trade union UNI Global Union in mediating the dispute. This co-operation was founded on a joint statement by METRO AG and UNI Global Union, which committed to dialogue and collaboration towards a resolution.

As a result of the dialogue, the management outlined proposals for a resolution, following which the parties received a positive agreement. Employees that had been dismissed were rehired. UNI Global Union welcomed the outcome commending METRO AG for being "a leading company" in the retail sector with regard to labour standards, the implementation and auditing of these standards, and its willingness to co-operate with stakeholders.

The joint measure consisted of contacting the trade union in Pakistan and the local management. A METRO AG co-ordinated workshop was organised for the management of all METRO stores in Pakistan. It focussed on the following issues: the relationship between employer and employees; social dialogue; and the relationship with workers' representatives. In turn, UNI Global Union organised a meeting for local employee representatives focusing on the relationship with management. The workshops resulted in a dialogue at the end of March 2014 in Lahore.
Representatives of Country Management MHCCP and MHCCP Union were present, supported by representatives of METRO AG and UNI Global Union.

Outcome On 4 April 2014 the German closed the case following a request from the complainants to close the case. In its Final Report, the German NCP welcomed the commitment made by METRO AG to find solutions together with UNI Global Union.

Organisations

Lead NCP Germany NCP : Single Department with Interagency Working Group 

Related Documents

German NCP  [Publication date: 21/5/2015] 'Final statement by the German National Contact Point…on a complaint by Metro Habib Employee Union against METRO Cash & Carry'
   http://www.bmwi.de/English/Redaktion/Pdf/oecd-ac-final-statement-metro,property
   =pdf,bereich=bmwi2012,sprache=en,rwb=true.pdf
[Date URL accessed: 6/8/2015]

TUAC Analysis

Did the NCP publish its initial assessment? status-icon
Did the case involve parallel proceedings? status-icon
Was the existence of parallel proceedings an obstacle to the NCP accepting the case? status-icon
Was the businsess relationship other than that of a subsidiary? status-icon
Was the nature of the business relationship an obstacle to the NCP accepting the case? status-icon
Did the NCP inform other relevant government departments about its acceptance of this case? status-icon
Did the NCP offer mediation or conciliation? status-icon
Did the company accept the offer of mediation or conciliation? status-icon
Did the complainant(s) accept the offer of mediation or conciliation? status-icon
Was mediation or conciliation held? status-icon
Was mediation or conciliation conducted by a professional mediator? status-icon
Did the parties reach agreement? status-icon
If yes, did the NCP publish this agreement following the consent of the parties? status-icon
If mediation was refused or failed did the NCP make an assessment of whether the company had breached the Guidelines? status-icon
Did the NCP conduct in-host country fact finding? status-icon
Did the NCP make recommendations to the company on the future implementation of the Guidelines? status-icon
Did the NCP publish its final statement or report? status-icon
Did the NCP provide for follow-up of the agreement/recommendations? status-icon
Did the NCP inform other relevant government departments about its final statement or report? status-icon
Did the NCP inform public pension funds about its final statement or report? status-icon
Did the NCP apply any consequences in this case? status-icon
Did the NCP follow the indicative timescales set out in the procedural guidance? status-icon
Was there a positive outcome for the workers involved in this case? status-icon
Did the filing of the case under the Guidelines have a positive impact for the workers involved? status-icon
Did the lead NCP play a positive role? status-icon
If different, did the home NCP play a positive role? status-icon