1. Arun Kumar

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

3. Implications of ‘neo-liberal’ policies Shift from development cooperation to free trade - Open markets for trade, investment & capital flows; 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. 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 ) Redistribution of income towards the rich (privatization, tax policies)

4. 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, safe work, labour laws) _________________ Changing pressures on employers & ‘new’ decision makers (HRM, Financialization, Private Equity )

5. Global Economic Crisis – root causes  Result of ‘liberalization’, speculation & greed - ‘markets know the best’ philosophy (financialisation of economy)  Widening Inequalities – between K & L, between countries, between regions  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 Asian Countries

6. ILO’s Response

7. 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;

8. 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)

9. 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, Including Collective bargaining [+ Gender Mainstreaming]

10. Current Situation in Asia-Pacific - home to about 2/3 rds of global workforce

11. Growth not generating adequate employment [2001-2008] Source: Report of the DG 15th Asia and the Pacific Regional Meeting, ILO, 2011 Over 213 m jobs needed between 2010 & 2020 to keep pace with labour force growth - in addition to jobs for the 94 m currently unemployed people.

12. Wages lag behind productivity 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

13. Contribution Rates for SS Programs in selected Asian countries 2008 (%) A-P spends about 5.3% of GDP on public health and social security – lower than other regions

14. 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 although FoA & Right to collective bargaining exists in some form or the other. 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%).

15. State of the workers 2006-2015: 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

16. Work should life you out of poverty, Not keep you there In Asian context, what changes are needed in development & labour policies for promoting decent work?

17. Over dependence on Exports Pre-crisis: Almost 60% of final demand for Asian goods came from developed countries. Exports accounted for about 47% of developing Asia’s output - In Indonesia, Korea, Taiwan and Thailand exports contributed over 60% to growth - Exports contributed about 50% to income growth of China (pre-2008) (Source: http://www.southcentre.org )http://www.southcentre.org If Investment > domestic Consumption, then dependence on foreign markets (Exports) is the only way out to maintain growth – but can Asian countries continue to export at the same rate as in last decade? Limitations of Export led model growth?

18. Lessons from the ‘crisis’ for Asia for economic & social stability at home - Asian countries need also 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

19. 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?

20. Group Work 1: Country Situation Review Has the global economic crisis affected employment & wage developments in your country? Any examples? How has government responded? What is the system of minimum wages in your country? What are the factors taken into account while setting minimum wages in your country? List out the main problems you see in the Employers behaviour 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 What are main priorities of Trade Unions in your country? List top 4-5 priorities ------------------------------------------------ Data on your country: 1) Minimum wage 2) Wage share in GDP – trends, 3) median wages in your country