Impacts of Globalisation Hashim Lobe Director Trade Union Develoment Activities, UNI APRO

It’s a GLOBALIZING WORLD  Free flow of -- goods, capital, technology in a borderless economy (without frontiers) -- global connectivity : internet/cellphone can put you connected everywhere

Drivers of globalization  Technology Triumph of free trade philosophy everywhere (collapse of Eastern Europe, market economy in China, etc.) Role of IMF-WB (policy conditionalities) And WTO to promote borderless economy Through privatization, liberalization, deregulation

For global economy, yes, greater growth, greater integration, greater connectivity But also greater role for TNCs and elite people (wealth of 3 richest men equal to 60 developing countries) Hence, greater inequalities within and among countries/industries -- there are winners/losers UNDP: globalization a power to do good; also a power to do harm Negative more than Positive Outcome

Rise of China as export champion (from light to more sophisticated products) Decline of industries in other Asian countries Decline of manufacturing in Japan, Taiwan, SK Rise of India as another China Failure of development in some countries – Philippines, Indonesia Uneven/unequal growth w/n and across countries But TNCs are everywhere, triumphant Globalization Trends in Asia

-- jobless growth (esp. for developed countries) -- disruptive growth (esp. for developing countries) -- job insecurities (due to footloose industries, outsourcing, competition, technology, endless reorganization, privatization) -- race to the bottom -- (eroded bargaining power, lower labor standards) Impact on trade unions – generally negative almost everywhere

Busisiness flexibility means flexibile Responsibility global competition = search for higher productivity and lower cost of production = search for cheap and productive labor – paying workers as low as possible, lowering working conditions, hiring casual worker increasing productivity, work intensification

Impact Summary  Declining number of regular jobs  Declining union members  Declining bargaining rights  Declining labor rights

Global challenges Union action global new alliances urgent

Organising Wal-Mart Wal-Martisation

Offshore world map Source: BusinessWeek February 3, 2003 China Philippines CEE Russia India Latin America Ireland Israel IrelandCanadaChina IsraelIndia RoW (Source: McKinsey&Company 2004; Billion US$)

UNI Postal Global union UNI Commerce Global union UNI Property Services Global union Recruitment Recognition Rights Results

Multinational framework agreements 1.Telefónica (2000) 2.Carrefour (2001) 3.OTE (2001) 4.ISS (2003) 5.H&M (2004)

Multinational framework agreements Quebecor, Amcor, Kimberly Clark, SCA, Smurfit, British Telecom, Deutsche Telekom, France Telecom, Singtel, Vivendi Universal, Auchan, Casino, Ikea, Metro, Rewe, Tesco, Group 4 Securicor, Securitas, Axa, Deutsche Bank, Westfield, Banco Santander, Banco de Bilbao, HSBC, Barclays … Targets

Global and regional UNI-Africa African Union NEPAD SADC COMESA ECOWAS UNI-Europa European Union UNI-Asia&Pacific APEC ASEAN ASEM SAARC UNI-Americas FTAA NAFTA Mercosur Economic integration Social dimension Social dialogue

A new organising world UNI-Africa North Africa Middle East Nigeria South Africa UNI-Europa Central and Eastern Europe Mediterranean UNI-Asia&Pacific China India Indonesia UNI-Americas USA Mexico Brazil

Solidarity 24 hours Global support The global chain

Communications Web-based Info Bulletin Mailings Virtual committees Video conferences Conference calls Publications Press conferences Communicators’ forum

UNI supporting change in global labour movement ICFTU/WCL unification Global Unions’ Council