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! 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 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

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?

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

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 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 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 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 Will further increase unemployment, loss of livelihoods, social inequalities

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

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?

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)Addressing all workers (w/m) in all economic sectors (formal, informal, less protected) Dynamic and participatory: a common platform of core rightsDynamic and participatory: a common platform of core rights Interventions in different but connected aspects of the world of workInterventions in different but connected aspects of the world of work ILO ‘Standards’ are tools for promotion of Decent Work

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

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

Declaration is the threshold to Decent Work Declaration is the threshold to Decent Work a minimum social platform for the global economy (Copenhagen) a minimum social platform for the global economy (Copenhagen) a promotional instrument for universal rights and the development agendaa promotional instrument for universal rights and the development agenda a common objective for the international communitya common objective for the international community

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)Avoid market « failures » (e.g., economic crises) Redress vast inequalities between & within countriesRedress vast inequalities between & within countries Strengthen mechanisms for delivering social protection - manage changeStrengthen mechanisms for delivering social protection - manage change

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

Getting back to basics Getting back to basics Trade unions must strengthen their organizing and bargaining power. HOW? Challenge 1: Creating an “Enabling Environment” for Trade Union Activities Challenge 2: Building Capacity of Unions in Organizing and Collective Bargaining