TUAC comments on integrity in state-owned enterprises and privatisations

At a recent meeting of the OECD Working Party on State Ownership and Privatisation Practices (14 November 2018), the TUAC submitted written comments on on-going OECD work on anti-corrution and integrity for state-owned enterprises and on privatisation.

The TUAC supports the OECD work on anti-corruption and public integrity. We believe that the following key aspects should be included in the upcoming guidelines:

– enhanced guidelines on whistleblowers’ protection;

– reference to fair pay scales, collective agreements and employment stability as key deterrent against corruption;

– risk management systems explicity covering human rights, environmental, health and safety, and labour issues as well as due diligence in the global value chain. The role of policy-makers in laying down legal obligations should be underlined;

– well functioning information, consultation and board level participation mechanisms;

– board accountability towards the long-term interest of the company.

Any work on tools for privatisation practices shouldbuild on past privatisation experience and stress the importance of closely involving all key stakeholders, including workers. The objective should be to fully equip policy-makers with the evidence necessary to make a long-term assessment of privatisation. It should take the following elements on board:

– past inadequacies need to be acknowledged ;

– the long-term effects of privatisation need to be assessed, having regard in particular to possible higher costs and reduced efficiency;

– universal and affordable access to essential services needs to be a central element;

– employees need to be meaningfully involved at every stage of the procedure.