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DIAM International and Birlesik Metal-Is in Turkey
Lead NCPFrance
Supporting NCP(s)Turkey
DescriptionThis specific instance concerns the alleged non-observance of the OECD Guidelines by DIAM International's Turkish subsidiary, DIAM Vitrin in Istanbul.
Theme(s)Employment and industrial relations, General policies
Date2 Aug 2017
Host country(ies)Turkey
SourceTrade Union
Industry sectorManufacturing
StatusConcluded
Summary

Read the initial assessment issued by the French NCP – 14 December 2017 (French) (English)

Read the final statement issued – 14 May 2019 (French) (English)


On 2 August 2017 the French NCP received a specific instance from the Turkish trade union Birlesik Metal-Is concerning the alleged non-observance of the Guidelines by the DIAM INTERNATIONAL SAS Group (DIAM Group).

The case was concerned with the activities of the company’s Turkish subsidiary, Diam Vitrin Tasarim Hizmetleri Ambalaj San (DIAM Vitrin), regarding an industrial dispute that allegedly started in DIAM Vitrin in Istanbul in May 2017, which resulted in the dismissal of a large number of workers and alleged anti-union bias. The submitter alleged that the DIAM Group did not observe the OECD Guidelines’ standards related to due diligence, human rights, workers’ freedom of association and collective bargaining. 

On 5 September 2017, the French NCP accepted the case and issued its initial assessment on 14 December 2017, and began its good offices on 2 November 2017.

Following numerous and complex meetings between the parties and ongoing parallel legal proceedings, on 6 November 2018, the NCP stopped its good offices and began drafting the final statement. The French NCP approved the draft of the final statement on 5 February 2019 and consulted with the parties and the Turkish NCP. Subsequently, the NCP adopted the final version of the final statement by consensus with the exception of one trade union.

The NCP determined that following the dialogue, DIAM Group improved its due diligence policy, but the NCP did note shortcomings with respect to a number of the Guidelines’ recommendations. The NCP concluded that DIAM Group must strengthen its due diligence vis-à-vis its Turkish subsidiary to achieve full compliance with the Guidelines. The NCP issued the following recommendations:

 

  • The NCP recommends that DIAM and DIAM Vitrin improve social dialogue within the Turkish subsidiary in order to comply with the OECD’s Guidelines and decisions of the Turkish courts.
  • When the courts issue their final decisions, the NCP requests that DIAM’s Turkish subsidiary should act promptly to comply with these decisions. For these purposes, the NCP recommends that DIAM and DIAM Vitrin establish and contribute to a remediation schemes that could be used, for example, should the Turkish courts rule that the dismissals in May – June 2017 were anti-union in nature.
  • The NCP requests that DIAM Vitrin comply with the “Employment and Industrial Relations” chapter of the Guidelines. More specifically, the NCP recommends that the Group should ramp up its action plan at DIAM Vitrin, so that workers can elect their own representatives as soon as possible and begin consultations on matters of mutual concern until a union is recognised as legally competent to carry out collective bargaining or to lead negotiations on labour relations. It notes that DIAM has informed the NCP that an election process was launched and elections have been held in its Turkish subsidiary.