International framework agreements and impact on Labour Law

States ceased their interventions into economic and social fields and abandoned welfare policies as a result of neoliberal economic policies introduced to fight against the economic crisis of 1970s. Thus, the idea of free market started to affect every aspect of life and in line with this idea the process of globalization accelerated. In the new order, multinational enterprises create income internationally through global value chains. Under these conditions, there is competition especially among developing countries in order to be included in the global value chains. In this competition, the predominant choice to gain advantage is to reduce labour costs. Within this context, while labour law was the essential tool to reduce power asymmetry between workers and employers and to regulate labour market in the previous era, it is seen as one of the reasons that increase the labour cost in the new era. In this period, the function of labour law to protect workers has eroded. In order to fulfil the function of labour law to protect workers, new methods are being tried. Certification of working conditions, putting provisions on working conditions in free trade agreements and adopting code of conducts by multinational enterprises are among these methods. But none of these methods entail worker participation. Hence, the protection of workers against employers and improvements in working and living conditions are out of question. However, international framework agreements differ from these methods. As workers participate in the bargaining and implementation process of agreements, international framework agreements are expected to improve working and living conditions and to reduce power asymmetry between workers and employers. It is doubtful whether these expectations are materialized. Since international framework agreements are not legally binding, workers' enjoyment of their fundamental rights regarding work and the reduction of power asymmetry is up to the will of multinational enterprises. Therefore, unless international framework agreements are legally binding, they will have no other function than to distribute income in favour of multinational enterprises.