Globalization, Trade

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Globalization, Trade Decent Work

• Arun Kumar

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Globalization?Participants views

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Why Globalisation?

• Capital Needs Marketsnew markets for profits
  Also natural resources
• Developing countries need to grow, need capital,
  access to new technology, goods services
• Investors need free trade, minimum or no
  regulations on capital safe guarding of their
  investments
• Economic reforms, free trade Globalization!

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Forces behind Globalization

• G7 Countries (reflecting Business/Financial
  Capital Interests) - US Treasury Dept major
  player
• IMF
• World Bank
• WTO Estd on 1st Jan 1995
• -----------------------
• Regional Banks like ADB and Private Banks,
• Global based Investment Funds, TNCs, UN
  Organizations,
• Domestic business interests

Estd after 2nd WW in 1944
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What is Globalization Promoting?

• Supremacy of markets, Government - a problem!
• One size fits all kind of policies
• Open markets for trade, investment capital
  flows, FDI rather than foreign aid, no
  performance requirements on FDI, cut govt
  deficit, privatize, etc
• Employment flexibility

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Global Labour Market Scenario, 2006

• Global workforce Over 3 billion (another 430
  million will be added by 2015 majority of who
  will be from developing countries)
• Women constitute 40 of the labour force (1.22b)
• About 1.37 billion working people earn less than
  2/day (working poor) 522 m live on less than 1
  a day majority of worlds poor are in Asia
  and Africa.
• Over 3/4th of the working population in Africa
  lives on less than US2 per person in the
  household, per day (260.3 million, expected to go
  up to 316.7 million by 2015).

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Global Labour Market Scenario, 2006

• No. of unemployed globally 195.2 m
• Women comprise about 42 of global unemployed
  (about 82 m)
• 44 of worlds unemployed are youth (86.3
  million) over 48 of these are in A-P region
  
• Over 43 m new jobs to be created each year in
  order to reduce global unemployment, says ILO

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Global Background (2002, in )

• Share in World Income/GDP
• Share in World Trade
• Share in FDI
• Share in Portfolio Investments

• HIC (80.5), MIC (11.5), LIC (2), China India
  (6)
• HIC (72.9), MIC (15.6), LIC (2.7), China India
  (8.7)
• HIC (76.6), MIC (12.5), LIC (1.1), China India
  (9.8)
• HIC (76.6), MIC (12.5), LIC (1.1), China India
  (9.8)

Source ILR, 2004/1-2, Vol 143, ILO, Geneva
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Trade Liberalization

• Doha Development Agenda- name given to the agenda
  for multilateral trade negotiations that
  restarted at the Fourth Ministerial Conference in
  Doha, Qatar, in November 2001
• There are about 21 items on this agenda, covering
  issues connected with what was agreed under
  Uruguay Round of GATT in 1994, new issues and WTO
  rules.
• Negotiations are still going on The original
  deadline of 1 Jan 2005 was missed as was the next
  unofficial deadline of end 2006.

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Main areas under negotiations

• NAMA Non Agricultural Market Access reduce
  eventually eliminate high tariffs non-tariff
  barriers at stake industrial development needs,
  employment livelihoods in developing countries
  
• Agriculture sector liberalization (need for rural
  development food security of developing
  countries, high tariffs, export subsidies and
  domestic support by EU US)
• TRIPS (Trade-related aspects of intellectual
  property rights)-Public health domestic
  development issues
• Services sector liberalization (covers almost all
  sectors and movement of personnel -skilled)

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Related issues of concern

• Obligations of least developed countries, special
  and differential treatment of LDCs, less than
  full reciprocity principle, development needs of
  developing countries
• Environment protection policies and trade
• WTO rules on regional trade agreements
  differences of interpretation (this is also one
  of the pressures on ACP countries for accepting
  EPAs)
• Anti-dumping measures subsidies needs of
  developing countries and practices of OECD
  countries
• A word about TRIMS obligations already in force.

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Implications of New Policies

• Shift from development cooperation to free trade
• More competition between unequals
• Equality of access (to international trade)
  does not mean equality of opportunity
• unequal capabilities lead to unequal outcomes
• Adverse impact on development employment both
  in developing countries in OECD countries many
  developing countries will be forced to remain
  providers of natural resources and low value low
  technology products
• The policies that helped developed countries to
  develop are now considered trade distorting and
  hence to be done away.

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Effects on Labour

• Downsizing, increasing workloads job
  insecurity
• Weakening of public transport, health care
  systems, primary education, etc as public
  expenditure and role of Govt in these sectors
  declines
• Growing informal economy rural-urban migration
  as agriculture becomes non-viable for small
  farmers
• Deterioration of labour standards social
  protection provisions

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Effects on Labour

• Weakening of TUs also thru new HR policies,
  outsourcing preference for casual labour
• Trade Union memberships are declining
• memberships range from 3 - 19
• Union density lowest in agriculture informal
  economy dominated countries declining in most
  countries
• What else? Participants experiences

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Trade Union Concerns

• Where are the jobs? Has Globalization process
  delivered on jobs front?
• IssuesNot only unemployment but also,
  underemployment, low paid, exploitative
  hazardous working conditions
• Youth (15-24 yrs) unemployment serious for every
  unemployed adult, there are about 3-5 unemployed
  youth
• Jobs without rights call centres, private
  services sector, SMEs in informal economy, EPZs
  and so on.
• Workers Rights to organize? to bargain
  collectively?

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So, what are TUs saying?

• Answer does not lie in Protectionism
• Ensure Justice, Equity and Democracy in the new
  global order
• Need for role of State and public regulation of
  business and international trade
• Review of Free Trade to re-focus on the
  objectives of Devt, Empl. Poverty reduction
  multilateralism rather than bilateralism.
• Respect for basic International Labour Standards
  for promotion of Decent Work
• Representation Participation of TUs in economic
  and social policy matters

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What is ILO saying?

• ILOs World Commission on the Social Dimension
  of Globalization says
• Global markets need governance i.e. a set of
  institutions rules for equitable functioning
  to
• Avoid market failures (e.g., economic crises)
• Redress vast inequalities between within
  countries
• Strengthen mechanisms for delivering social
  protection - manage change.

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Decent Work!!!

• Aimed at achieving the following strategic
  objectives
• Creating Jobs through opportunities for
  investment, entrepreneurship, wage employment
  sustainable livelihoods
• Guarantee Rights at Work of All workers
• Provide basic social protection against
  declining standards of living, marginalization
  poverty and
• Promote dialogue conflict resolution the right
  to be heard, to negotiate and dialogue is the
  best way to solve problems peacefully.

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ILO Declaration, 1998

• 1998 Declaration is the threshold to Decent
  Work
• a minimum social platform for the global economy
• a promotional instrument for universal rights and
  the development agenda
• a common objective for the international community

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TUs support to Decent Work

• TUs support the integrated approach of ILO to
  address the social impacts of globalization
• Because the concept of Decent Work -
• Focuses on core rights, addresses all workers, in
  all economic sectors (formal, informal)
• Is participatory, promotes Social Dialogue
  seeks to involve all social partners
• Is Dynamic progresses as the economy changes

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Trade Union Responses

• Mergers of trade unions GUFs
• ITUC merger of ICFTU, WCL some other unions
  on 1 Nov 2006, Vienna
• ITUC represents 306 affiliated national trade
  union centres of 154 countries territories
  representing some 168 million members.
• Organize!

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Trade Union Responses

• Campaign for core ILO labour standards,
  particularly C 87 98
• Global Collective Bargaining (GUFs have signed
  Codes of Conduct OR Framework Agreements with
  about 54 MNCs till now, covering over 4 million
  workers world wide)
• Build alliances with other social partners on
  mutually agreed agenda links with world TU
  bodies, Womens movement, NGOs where necessary,
  Consumer movement role of international labour
  solidarity.
• Using Workers Capital to promote Union Rights
  other labour standards (not tried so far)

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Negotiating Change at National level

• Ensure Right to Organize Right to Collective
  Bargaining!
• Adopt policies that apply to all workers
  prevent further divisions of workers in the
  labour market put all workers in one boat.
• Set nationwide floor labour standards that apply
  to all workers employers (de-link labour
  standards from permanency of employment) Roof to
  be attained thru Collective Bargaining the
  right to which should be ensured.

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Negotiating Change

• What is the floor that employers should respect?
• Core labour standards of the ILO
• Freedom of Association the right to form unions,
  the right to recognition
• Right to Collective Bargaining
• Basic social security contribution
• Access to skills training
• No discrimination, No child labour

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Why Labour Standards?

• Labour Standards are not just a question of
  workers rights BUT are also means to promote
  economic growth!
• Labour standards create conditions for growth of
  domestic markets since they enable sharing in
  gains of growth spread of purchasing powers
  this makes domestic economic growth more
  sustainable.

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Getting back to basics
Trade unions must strengthen their organizing and
bargaining power.
HOW?
Challenge 1 Creating anEnabling
Environment for Trade UnionActivities
Challenge 2 Building Capacity ofUnions in
Organizingand CollectiveBargaining
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Group Work

• How has Globalisation affected workers trade
  unions in your country?
• List the major changes in economic labour
  policies that have affected (positively or
  negatively) the employment Trade Unions
• What actions has your trade union taken or can
  take to meet challenges of Globalization free
  trade?
• What role can the International Trade Union
  Movement play in assisting national unions to
  meet the challenges of Globalization?