Controversy Surrounding OECD's Labor Complaint Procedure: An Insight from Evolution
In an unusual turn of events, the Norwegian gaming company, Evolution, has found itself embroiled in a labor dispute with the Organisation for Economic Co-operation and Development's (OECD) National Contact Point (NCP). The conflict started following a July 2024 strike, with the Tbilisi-based Social Justice Centre (SJC) filing a complaint on behalf of Evo-Union, regarding Evolution's live casino studio in Georgia.
The NCP, chaired by a ministry representative and including members from government, employer organisations, and trade unions, noted that Evolution had declined offers of good offices, a mechanism designed to facilitate dialogue and resolve disputes. The company stated that the process would not "lead the procedure forward or provide results."
In June, CEO Martin Carlesund shared Evolution's version of events in an exclusive interview. He contested the NCP's characterisation, maintaining that Evolution was unwilling to engage with the union due to the union's alleged misconduct, including intimidation of non-striking workers, forcibly entering the company's premises, sabotaging property, and barricading entrances.
Evolution strongly rejected the OECD's conclusions, which included recommendations to re-engage in dialogue with the union. The company stated that its annual report and internal policies already embed its commitment to the OECD guidelines.
The NCP acknowledged that it was unable to fully assess the facts of the case due to "fundamentally different views" between the parties. The NCP does not have the power to issue binding rulings, but it plans to follow up on the case in 12 months and continue monitoring the company's conduct.
Carlesund criticised the NCP for creating headlines worldwide of a company violating human rights and actively counteracting unions and worker's dialogue. He suggested that the outcome of the process would have been the same if Evolution had refused to participate.
In a detailed letter, Carlesund described the process as flawed and one-sided, claiming that Evolution had fully cooperated with the OECD process. He called for change in the process, to truly uphold democracy, transparency, and the rule of law.
Evolution sent its final statement to the OECD's central Responsible Business Conduct unit. The company contests this characterization and calls for a fair and impartial process that truly represents the facts of the case.
The OECD's Responsible Business Conduct (RBC) unit operates with a high degree of independence in fulfilling its mandate. NCP decisions in RBC cases, such as labor disputes, follow a structured, consensus-based process guided by the OECD Guidelines for Multinational Enterprises. The process is intended to be impartial and transparent, with each NCP responsible for the management of complaints within its jurisdiction yet coordinated to maintain consistency with OECD standards.
Regarding Evolution's labor dispute in Georgia, the treatment in NCP cases would typically involve the Georgian NCP (if established) or another relevant authority acting under OECD guidelines to offer mediation or fact-finding regarding alleged breaches of responsible labor practices. However, publicly available sources do not detail the exact handling of Evolution's case, leaving room for further discussion and clarification.
In summary, the ongoing dispute between Evolution and the OECD's NCP underscores the complexities of labour disputes in the global business landscape. As the NCP continues to monitor the situation, it remains to be seen how this case will unfold and what changes, if any, will be made to the current process.
- Amidst the ongoing dispute, Evolution has expressed concerns about the impartiality of the OECD's Responsible Business Conduct (RBC) unit, particularly in cases related to the iGaming industry, as they believe the process has been one-sided.
- Despite the OECD's structure and guidelines for resolving labor disputes being designed for transparency and democracy, Evolution is of the view that the process lacks fairness, as shown in their complaint against the union in Georgia.
- In light of the complexities and potential biases in the handling of labor disputes in the gaming industry, there is a growing need for reevaluation and reform of the OECD's RBC unit, ensuring a more equitable and fair process for all parties involved, including businesses like Evolution.
