Upgrading in GPNs: Labour Opportunities and Challenges Stephanie Barrientos University of Manchester

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Presentation transcript:

Upgrading in GPNs: Labour Opportunities and Challenges Stephanie Barrientos University of Manchester

Overview 1.Labour in GPNs 2.Economic & Social Upgrading and Downgrading in GPNs 3.Research challenges: analytical/empirical 4.Policy Challenges

GPN Estimates Global Production Networks 60-80% World Trade (WTO/OECD – UNCTAD 2013) Trade in Value Added (TiVA)……Jobs…..? (OECD/ILO 2015) Indicators of nos. workers 40 m jobs in apparel, 70% female (Hales and Wills 2004) 43 m jobs in 3000 EPZs, 80% female in Asia (ILO 2002; ITC 2011 Estimated value capture (% of retail price) IPhone: 1-2% assembly workers, 52% brand/retail Jeans: 2-3% garment workers, 65% brand/retail South Africa Fruit: 10% workers, 42% retail )

InputsProductionDistributionBrand/RetailConsumer Labour Market GVC Governance INSTITIONAL & SOCIO-ECONOMIC EMBEDDEDNESS Simplified GPN and Labour Standards Labour Market Regulation

Research Challenges Analytical – GPN and GVC Analysis – Labour Analysis Definitional – Social upgrading and downgrading (indicators) Empirical – Data availability/access – Comparative analysis x-country x-sector

Economic and Social Upgrading in GPNs - Economic Upgrading + + Social Upgrading - Economic Downgrading/ Social Upgrading Economic & Social Upgrading Economic & Social Downgrading Economic Upgrading/ Social Downgrading Source: Millberg and Bernhardt 2011 Economic Downgrading/ Social Upgrading Capturing the Gains: and

Source: Bernhardt and Milberg 2011 Fresh Fruit, Vegetables, Flowers

Opportunities vs. Challenges Social Upgrading and Downgrading – Commercial Drivers: Quality, cost, flexibility, JIT – Upgrading for some workers: quality/efficiency drivers – Downgrading for other workers: cost/flexibility drivers Promoting ‘Decent Work’ (ILO) – Workers: Skills upgrading legal rights, living wage enforcement for casual/informal/migrant workers – Gender equity: linking quality and cost/flexibility drivers – SME suppliers: capacity building to upgrade & comply

Policy Challenges Global Governance Deficits – Private, Public, Social Upgrading Strategies – Capacity building: suppliers and workers – Promoting Decent Work for all workers – Alliances public/private, national/international – Linking: public and private interventions