Ostensibly they usually are an agreement signed between a multinational enterprise (MNE) and a Global Union Federation (GUF), which principally concern international core labour standards. They generally apply throughout the relevant company, but in some instances also have implications for suppliers.

The earliest example of an IFA involved the French international food processing company Danone and the International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers’ Associations (IUF) in 1989. This agreement actually predates the first company labour code (Levi Strauss 1991).

The key sectors where IFAs have been signed are services, utilities, energy, mining and manufacturing sectors. Manufacturing accounts for more than five out of 10 of the MNEs concerned, services and utilities/energy/mining for around a fifth each and construction around 10%. In 2003 there was a notable increase in agreements in metalworking and particularly in the motor manufacturing. There are now agreements in place at some of the world’s largest car producers, namely DaimlerChrysler and Volkswagen. To date there are sixty such agreements signed by Global Union Federations (GUFs) - the international groupings of trade unions in a particular sector formerly known as International Trade Secretariats – with companies employing approximately two million employees.