Anna Biondi +Arun Kumar

Globalization How is it changing the world of work? Participants views… Picture Source: Kate Raworth, Oxfam presentation on Trade & Human Development,

ILO Global Employment Trends 2012 Global unemployment estimated at 200 m + 27 m since the crisis started 400 m new jobs would be needed on top of those 200 m to provide productive jobs for all = 600 m jobs missing 900 m workers below the US$ 2 a day poverty line

I LO Global Employment Trends 2012 Unemployment predicted to rise to 206/209 m 2016 Global unemployment rate 6% 29 m fewer people working in 2011 than expected In OECD countries if we add to unemployed those who have stopped seeking employment we go from 8.5 to 9.6%

Young workers (15-24) 2011 – 74.8 m unemployed (+ 4 m since 2007) Unemployment for young people 3 times higher than adults 6,4% young people given up the hope to find a job (number of those who withdraw from labour market in constant rising) Youth disproportionally high among working poor

Examples of today (3 September 2012) Italy: Release of labour market statistics Young workers (15-34) 2 nd trimester ,5 m compared to 2007 From 7,3 m to 5,8 m jobs At the same time older workers (55-64) + 26 % from 2,4 m to 3 m Intergenerational sustainability?

ILO Global Employment Trends 2012 Employment-to-population ratio declined sharply during crisis: from 61,2% (2007) to 60,2% in 2010 (the largest since data have been collected from 1991) 900 m working poor Extreme poverty: 456 m below the US$ 1,25 a day. This is the only data where improvement was found until 2008 due to East Asia/China growth (reduction of 158 m since 2000), but slowdown since m working poor than expected pre-crisis + 55 m workers and fam. below US$ 2 a day than expect

ILO Global Employment Trends stages of crisis 1 – shock = coordinated fiscal and monetary stimulus (banks) 2 – austerity measures: declined GDP from 5% to 4% in 2011, economy slowing down also in developing countries 3- Policy space limited in many countries, business investments declined. Let’s look at which paradigm brought us at this stage

Implications of ‘neo-liberal’ policies Shift from development cooperation to free trade - Open markets for trade, investment & capital flows: one decision maker = Capital; More competition between Unequals - High income countries have more than 80% of the world incomes, receive more than 3/4 th of the foreign investment and 3/4 th of the world trade is between them. But also within countries: 99% vs. 1 % (USA) Equality of “access” equality of “opportunity” unequal capabilities  unequal outcomes Withdrawal of ‘State’ from its economic & regulatory role; (markets Know the best, will self regulate )

Consequences for the world of work Labour flexibility & changing nature of employment relationships – precarious work for youth & women Implications of flexibilization for workers rights (right to organize, union formation, collective bargaining, social security, skills acquisition, wages, safe work, labour laws) _________________ Redistribution of income towards the rich (privatization, tax policies) – on the theory that rich invest, will promote growth led to Growth yes but widening inequalities - decline in labour’s share of GDP

Population & Wealth Shares by Region (2000) the richest 10% own 85% of the global assets (2000). 50% of the world population owns less than 1% of the global assets. Source: UNU-WIDER

Global Economic Crisis – root causes  Result of ‘liberalization’, speculation & greed - ‘markets know the best’ philosophy (financialisation of economy)  Widening Inequalities – between Capital & Labour, between countries, between regions, between workers  Wages lag behind productivity declining share of wages in value added & GDP debt financed consumption  Consequences of inadequate or lack of social protection on growth & recovery  Export dependence of Developing Countries

Global Economic Crisis: few lessons for developing countries Over dependence on exports & western markets For economic & social stability - countries also need domestic markets – how to develop & expand domestic & regional markets? Reduce widening inequalities: need for wages & incomes policy in the country to ensure equitable sharing in growth/productivity Labour standards & development: role of right to organize, collective bargaining & social security

ILO’s Response June 2009

GJP is not just about creating of more jobs! the roots of global (& national) crisis lie in economic & labour markets policies that undermine employment, purchasing powers & demand in the economy, weakens social security & collective rights. Recommends use of wage policy tools, social protection and employment-led development policies with respect for workers rights GJP seeks to provide a framework for Decent Work led policies aimed at economic recovery with job creation and provision of social protection to workers & their families at its core;

So, what is Decent Work? Work that is productive, gives fair income, security in the workplace & social protection for the family, equal opportunities & treatment, better prospects for - personal devt & social integration, freedom to organize & participate in decision making concept of decent work encompasses both concept of decent work encompasses both individual and collective dimensions (C 87 & 98)

Decent Work to be achieved thru actions on 4 pillars productive employment & sustainable enterprises Standards & basic rights at work social protection/ social security for all Promotion of Social dialogue, Collective bargaining key + Gender and non-discrimination as cross- cutting issues

Example: Asia Output per worker in Asia grew on average by 4.1% p.a. between 2000 & 2009, much higher than in the rest of the world (0.4%) [East Asia: averaged 8.3% p.a., followed by South Asia at 3.9% & South-East Asia at 3.0%]. BUT average real wages grew by only 1.9% per year Leading to decline in labour’s share of national income and contributing to rising inequality & restricted domestic markets. Gender pay gap - women’s wages represent between 70–90% of the wages of their male counterparts

FoA & Collective Bargaining Asia has the lowest ratification of the Convention 87 (19) and Convention 98 (25). Important countries like China, India, Iran, Korea, Burma, Thailand, Vietnam, etc have not ratified these conventions. In practice, little or no respect for workers right to form unions, to union recognition & to negotiate collective agreements - (TU density & CB coverage range between 1-19%). Other regions: examples of USA, Canada, Brazil and Kenya which have not ratified C. 87. EU attack on CBA at national and sectoral level. Precarization of jobs lead to erosion of employment relationship

State of the workers – example Asia : Decent Work Decade for A-P region - BUT While extreme poverty has reduced, about 1.1 billion workers (60% of the region’s workers), are in vulnerable employment (poor-quality, low-paid & insecure work); [63% women & 58% men] 422 m workers live on less than US$1.25 per day. Child Labour: About 114 m (2008), 48 m in hazardous conditions 566 m people are malnourished, 469 m lack access to safe water and 1.8 billion people have no access to sanitation

Work should lift you out of poverty, Not keep you there what changes are needed in development & labour policies for promoting decent work?

Lessons from the ‘crisis’ for economic & social stability at home - countries need development & expansion of domestic & regional markets/domestic consumption - how to do this? Wages - main source of domestic consumption - but wages lagging behind productivity & wage share in GDP declining - plus no social protection for the majority  need for wage policy & social protection floor aimed at reducing inequalities, keeping wages in line with productivity, to increase disposable incomes, avoid debt financed consumption & promote sustainable growth

Wages & labour Standards led growth Are labour standards only a question of ‘rights’ of workers? What role does Wage policy, FoA, CB & Social Security/social protection play in economic development?

Business is our business! Reclaiming democratic and transparent decision making and rules: - Financial markets: stop to the shareholders mantra, regulation, FTT, redistribution including for public sector needs - - Multinationals: regulation, CBAs and GFAs, value chains for development (ex. EPZ, Zara)= ILO MNE Declaration - Markets need to be socially embedded (national and local communities, workers, indigenous people)

Some issues to reflect upon Has the global economic crisis affected employment & wage developments in your country? Any examples? How has government responded? Is there a system of minimum wages in your country? What are the factors taken into account while setting it? List out the main problems you see in the Employers behavior in regard to collective bargaining with the union? What are the ‘means’ available to unions to enforce workers rights? What are the factors that prevent unions from playing more effective role in dispute resolution & collective bargaining? (focus on drawbacks in law, capacity of unions, role of authorities) – give specific examples Which is the government response to TU claims? Which alliances your union is making for progress in workers’ rights? Data on your country: 1) Minimum wage 2) Wage share in GDP – trends, 3) median wages in your country