Key priorities for the Local Content Policy

Dear Editor,

The local content policy is the Legally Binding Instrument, which represents a unique opportunity to end the impunity for corporate human rights violation.
Many companies have resorted to abruptly ending the procurement of goods and services and even to defaulting on prior commitments made with the consequence of a disastrous impact for workers in global supply chains.

Simultaneously, others designated as key workers in the COVID – 19 pandemic crisis, including seafarers and packing and distribution centres, continue to work afloat at huge personal risk of exposure and often without adequate personal protective equipment.
To ensure that the Guyana economy is not only resilient but also conducive to social progress, the Government of Guyana must now step up their engagement in the Binding Treaty process.
We also believe that that provides a sound basis for effectively addressing existing accountability and liability gaps arising from the complex structures of transnational companies and their supply chains dominating the global economy.

A key priority for trade unions is that the Legally Binding Instrument ensures that trans-national companies can be held liable for human rights violations throughout their activities, including those by supply chain entities, irrespective of the mode of creation, ownership or control.
Another significant is a provision that explicitly requires state to ensure that any existing or new trade and investment agreements are compatible with the human rights obligations under the Legally Binding Instrument.

However, we believe that a supplementary article that obligates state to integrate a binding and enforceable human rights and labour clause in trade and investment agreements will further boost the case for sustainable trade and development.
While we have the expanded scope of human rights protected under the Legally Binding Instrument, it is essential that respect for fundamental principles and rights at work is divorced from the requirement to ratify Core ILO Conventions.

We have advocated for the following key priorities to be included in Guyana Petroleum Sector Local Content Policy:
• A broad substantive scope covering all internationally recognised human rights, including fundamental workers’ and trade union rights, as defined by relevant international labour standards.
• Regulatory measures that require business to adopt and apply human rights due diligence policies and procedures.
• Reaffirmation of the applicability of human rights obligations to the operations of companies and their obligation to respect human rights.
• A strong international monitoring and enforcement mechanism.

The need to consult relevant stakeholders, we believe that there should be an express provision that human rights due diligence should be informed by meaningful engagement with trade unions. It should also be recognized that consultation is a right in itself in many labour-related instruments.
The OECD Due Diligence Guidance for Responsible Business Conduct makes this very clear, and this should also be reflected in the Legally Binding Instrument.

Sherwood Clarke
General President
Clerical & Commercial Workers’ Union