A report in the Netherlands stated that the Dutch delivery company "Just Eat" violated the basic OECD guidelines for international business when it did not intervene in the actions of its Israeli subsidiary Ten Bis, which prevented its employees from organizing. The report was published by the Netherlands National Contact Point (NCP), which, along with the OECD, specifically addresses responsible business conduct. The report was conducted at the request of the Histadrut and the Confederation of Dutch Trade Unions (FNV).
Workers at Ten Bis, a food delivery courier company, unionized in October 2020 with the Histadrut, after two previous attempts to unionize with the Hapoel HaMizrachi Histadrut. On its first day of organizing, the Histadrut announced that it had succeeded in obtaining representation in the company. However, the company's management chose not to recognize the union.
Ten Bis management took various actions, involving managers at various levels, in order to hinder the union. Later, following the Histadrut's petition, both the Regional Court and the National Labor Court determined that the company's management had harmed the workers' union. As such, the company was required to pay approximately 80,000 shekel in compensation for the damage to the union.
As part of the procedure and in solidarity with the Histadrut in Israel, the FNV contacted the Netherlands National Contact Point, which published its investigative report. In the report, it was stated that Just Eat acted in a way that is not consistent with the OECD guidelines, which allowed harm to the union of the subsidiary's employees.
The report stated that the parent company was expected to be involved, directly or through its Israeli subsidiary, with local stakeholders, including the Histadrut. This is with regard to the alleged violations of the rights of Ten Bis workers and their union as stipulated in the labor relations chapter of the OECD's guidelines. The Netherlands National Contact Point even stated that it offered Just Eat to mediate. Its offer was accepted by the FNV but rejected by Just Eat.
The Netherlands National Contact Point rejected the claims of Just Eat, who state that this is a local issue, irrelevant to the parent company. The NCP also clarified that the existence of ongoing legal proceedings in Israel does not justify its refusal to enter into a dialogue with the Histadrut.
"Companies are expected to act according to OECD guidelines beyond what is required of them according to the local law and regulations," the report states. "When the law and regulations conflict with the guidelines, organizations are required to look for ways to adhere to the guidelines to the greatest extent possible.
"Furthermore, Ten Bis’ local law and regulations refer specifically to the Histadrut's right to collective bargaining and not to its right as a trade union dealing with labor issues. Therefore, the outcome of the proceedings was not relevant to whether the Histadrut is a legitimate stakeholder that Just Eat should deal with as part of its due diligence."
Dutch union advised Just Eat to ensure negotiations with the Histadrut
The report also includes a series of recommendations for the future of the Dutch company. Among other things, it was recommended that Just Eat work to ensure that the Ten Bis subsidiary enters into a meaningful dialogue with the Histadrut, in accordance with the OECD guidelines for preventing violations of freedom of association. It is also recommended that the parent company, together with the subsidiary company, clarify to all Ten Bis employees that they can join a trade union of their choice, and that they will be assured that joining a trade union will not have negative consequences regarding employment.
It was also recommended that Just Eat conduct a continuous review of its policies and procedures in order to make sure that they meet the OECD guidelines, especially with regards to its subsidiaries, and that the company will enter into a dialogue with the Confederation of Dutch Trade Unions to check its suitability as the parent company of Ten Bis.
In the margins of the report, the NCP stated that Israeli law sets a relatively high threshold for the representation of a workers' union in the workplace – at least one-third of the company's workforce. According to the International Labor Organization's (ILO) committee of experts, having a threshold requirement of one-third of the workers for representation is relatively high and may harm the development of voluntary collective bargaining.
The committee also determined that unions should be allowed to conduct collective bargaining, at a minimum, for the workers who are members despite not meeting the one-third requirement. In any case, the report clarified that the lack of a one-third union membership should not have prevented the company from meeting with the Histadrut and having a dialogue with it.
Uri Metuki, the chairman of the trade union division of Hanoar Ha’Oved Ve’Halomed, which organizes the Ten Bis workers’ union, said: "The Dutch company Just Eat acted against the basic principles of a company from an OECD country when it allowed the Israeli management of Ten Bis, which it owns, to act against the organizing of the workers. We are happy with the recommendations of the report of the NCP that call on the management of Ten Bis to sit down with the Histadrut and the workers. The couriers in Israel work hard in all weather conditions and through a number of safety hazards, and there is a need to regulate their working conditions."
"I would like to thank Avital Shapira, the Histadrut's director of international relations, and the entire international division of the Histadrut, who helped us to forge ties with our counterparts in the Netherlands, and to bring this important issue to the agenda,” he continued. “In particular, the Confederation of Dutch Trade Unions (FNV) should be praised here for an impressive demonstration of international solidarity. They pressured the parent company for acceptable behavior and fought for two years until the publication of the report that unequivocally validated the desires of the workers."
In Just Eat's response, it claimed that it considers the issue a local Israeli interest. Furthermore, it claimed that it does not believe that the FNV is a party relevant to the issue. It is also written that Ten Bis trained its workers on how to deal with labor unions in order to ensure that its employees are not afraid of joining a union. According to them, Ten Bis is in line with Israeli law and is allowed to question the Histadrut's representation among its employees, and this is not a violation of the OECD guidelines.
This article was translated from Hebrew by Noah Mirkin.
