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Globalization & Decent Work: Challenges for Trade Unions

Globalization & Decent Work: Challenges for Trade Unions. Arun Kumar, Actrav-ILO-Turin. What is Globalization Promoting?. New Economic Orthodoxy – Washington Consensus Supremacy of markets, the Government - a problem! Therefore -

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Globalization & Decent Work: Challenges for Trade Unions

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  1. Globalization & Decent Work:Challenges for Trade Unions Arun Kumar, Actrav-ILO-Turin

  2. What is Globalization Promoting? New Economic Orthodoxy – Washington Consensus • Supremacy of markets, the Government - a problem! Therefore - • Open markets for trade, investment & capital flows, Cut govt deficit, Raise taxes &/or raise interest rates, Privatize, Focus on FDI rather than Foreign Aid, No performance requirements on FDI, employment flexibility, etc

  3. Impact of New Policies • Rising Social & Income Inequalities • Adverse impact on development & employment issues – in both OECD & developing countries • Downward pressure on labour standards & social protection of workers • Strain on International Labour Solidarity • Restricting Democracy What else does Union experience show?

  4. Globalization and SPOCTU Region Cotonou Agreement (June 2000) Objectives • Poverty Reduction and Eradication in the ACP countries; • Sustainable development; and • Gradual integration of the ACP countries into the world economy. What it also represents is - shift from development cooperation to free trade

  5. EPAs and SPOCTU Region • EPAs - will eliminate trade barriers on more than 90% of EU-ACP trade – EPAs seem to be more about EU’s access to ACP markets than about ACP devt • Areas covered – investment, competition, trade facilitation, govt procurement, data protection & services • EPAs endanger regional integration efforts of ACP countries, will expose ACP producers to EU competition in domestic and regional markets, loss of revenue for the Govts • Will further increase unemployment, loss of livelihoods, social inequalities

  6. So, what can TUs do? Answer does not lie in Protectionism • Need for review of EPAs – to refocus on the objectives of Poverty reduction & Devt • Reinstitute the principle of non-reciprocity to take account development needs of the ACP countries • Need to uphold the role of the Govts in economic development • Representation & Participation of TUs in economic policy matters …Contd

  7. So, what can TUs do? • Influence rules of International Trade & Investment – thru national & International actions • Campaign for International Labour Standards for promotion of Decent Work What role can SPOCTU play?

  8. ILO’s Response - Decent Work an integrated approach to address the social impacts of globalization • Addressing all workers (w/m) in all economic sectors (formal, informal, less protected) • Dynamic and participatory: a common platform of core rights • Interventions in different but connected aspects of the world of work ILO ‘Standards’ are tools for promotion of Decent Work

  9. “ILO strategic objectives” • Rights provide ground rules for • Decent Employment which is made secure through • Social Protection which is enabled by economic growth and made sustainable by • Social Dialogue as link between wealth production and distribution

  10. ILO Declaration The ILO Declaration on Fundamental Principles and Rights at Work (1998) • Freedom of association / recognition of the right to collective bargaining • Elimination of forced/compulsory labour • Abolition of child labour • Elimination of discrimination in employment and occupation

  11. World Commission on the Social Dimension of Globalisation Global markets need « governance », i.e., a set of institutions & rules that maintain their smooth & equitable functioning • Avoid market « failures » (e.g., economic crises) • Redress vast inequalities between & within countries • Strengthen mechanisms for delivering social protection - manage change

  12. International Instruments International ILCs Framework Agreements ILO Tripartite Declaration on MNCs UN Global Compact CFA ILO Declaration on F.P.R.W. OECD Guidelines for MNCs Code of Conducts Social Labelling Regional Economic Agreement Public Private National Labour Relation / Tripartite Committees Labour Legislation National

  13. Getting back to basics Trade unions must strengthen their organizing and bargaining power. HOW? Challenge 1: Creating an“Enabling Environment” for Trade UnionActivities Challenge 2: Building Capacity ofUnions in Organizingand CollectiveBargaining

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