The International Trade Union Confederation (ITUC) calls on the International Finance Corporation (IFC) to urgently strengthen its Sustainability Framework to better protect labour rights and deliver on its development objectives.
In a new report, The IFC at a Crossroads: Labour Rights for Development Impact, the ITUC highlights significant shortcomings in the implementation of the IFC’s policies over the past two decades. The IFC, part of the World Bank group, is expected to launch a review of its Sustainability Framework shortly.
ITUC General Secretary Luc Triangle said: “The IFC was the first multilateral development bank to introduce policies to protect workers on its projects nearly two decades ago. These policies were a major victory for workers, but often the reality has fallen short of their goals.
“In many cases employers on IFC projects have violated the performance standards with impunity and workers have been left without recourse or remedy. To maintain its leadership among peer institutions and achieve its goals, the IFC must improve the transparency and accountability of its operations and modernise its policies in key areas.”
“For the IFC to play the role it aspires to in promoting sustainable development, it needs the right policies in place, and they must be followed. This is even more important in the fragile and conflict-affected states where the IFC seeks to expand. It must actively promote responsible employers who raise standards in their sectors.”
Key findings of the report include:
- Employers on IFC projects frequently violate performance standards with impunity, leaving workers without access to remedies.
- Challenges in enforcement of labour rights in fragile and conflict-affected states where the IFC aims to expand its operations.
- Missed opportunities to foster sustainable development through the creation of responsible employment ecosystems.
