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Industrial Relations in Asia and the ILO Activities Shigeru Wada Senior Specialist in Workers Activities ILO Bangkok
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The Global Economic Crisis Started from the final months of 2008 Economies of most countries went into the most serious global recession since the Great Depression World production contracted 2.2 % in 2009 Increase of unemployment worldwide by 34 million, from 2007 to the end of 2009
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Economic Crisis in Asia Less damaged compared with other regions Impressive growth in China, India, Indonesia and some other populous countries but Increased competition in world trade Far from achieving Decent Work or MDG More industrial disputes especially over low wages
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Wave of Industrial Actions in Asia In 2009 – 2010 saw serious and wide-spread strikes in many countries in Asia including Bangladesh Burma Cambodia China…………
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Bangladesh Garment workers demanded minimum wage increase from 1662 taka ($25) to 5000 taka ($73) Strike developed social unrest, following massive dismissal and arrest of the workers
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Burma In February 2010 desperate workers in industrial zones in Rangoon went on strike demanding wage increase from average 3000 Kyat ($30) Government rejected an application to form a trade union
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Cambodia Garment workers were not satisfied with the minimum wage increase from $50 to $61 but demanded $90 Prime Minister intervened but …..
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China Garment workers in Hainan protested against the end-year bonus cut (700 yuan=$102) in 2009, their average wage is 500-600 yuan ($73-88) Honda strike ignited China’s summer of worker protest
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Why? Fulltime employment, even with over time work, but still living under international poverty line of $1.25 a day (WB adjusted the figure in 2005 from $1) $22.50 T-shirt sold in US or Europe means (according to Asia Floor Wage): 2.8% ($0.64) of labour cost 23.1% of other costs 75% of profit
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Why? Millions of workers are denied their right to join trade unions Trade unions can not negotiate their wages through normal collective bargaining Simple industrial dispute turns into street protest or even social unrest
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Export-Oriented Economies and Industrial Relations Rapid industrialization and employment creation, but not enough decent jobs and conditions Trade union ban or restrictions in EPZs: often very aggressive and little culture of collective bargaining Huge increase of migrant workers in Asia Lack of social security (safety net)
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Collective Bargaining Coverage Low and declining union density in many Asian countries reflected also in limited CB coverage; e.g. in 2003: Country % of employees covered New Zealand13.4 Singapore12 Malaysia3.3 Philippines0.9 Thailand0.5 Japanless than 20 Indialess than 5 China?
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CFA Cases in Asia Pacific Cases since 2000 Australia (2) New Zealand (1) Fiji (1) Bangladesh (5) India (5) Nepal (3) Pakistan (7) Sri Lanka (5) Cambodia (1) Indonesia (9) Malaysia (3) Myanmar (1) Philippines (9) Thailand (5) China (1) China HK (2) Japan (8) Korea (5)
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CFA Cases in last 5 years 25 Cases submitted to CFA from Asia Pacific from June 2006 to March 2010 Dominated by Korea and ASEAN countries Korea4 Indonesia3 Malaysia2 Philippines7 Thailand2
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Some Developments ILO High Level Mission to the Philippines on Freedom of Association Light at the end of tunnel in Japan (Public sector and Kokuro cases) Renewed attacks in Korea Fiji Military Government ILO Campaign for Conv. 87 & 98
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Decent Work for All 2006-2015: Asian Decent Work Decade Progress in Asia will be the key for the success of the global campaign Freedom of Association is particularly weak in Asia: China, India, Thailand, Vietnam …not ratified the ILO Conventions No. 87 and No. 98 December 2011: 15 th ILO Asia Pacific Regional Meeting
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Global Jobs Pact and Better Work
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Core Labour Standards Core Labour Standards Conventions covering the FPRW Conventions
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World is changing, so as Trade Unions Globalisation (Goods, Capital, Services and Labour) Decline in Trade Union Membership New Challenges (Gender, Youth, MNCs, IFIs, HIV/AIDS, Precarious Work, Migrant Workers and etc.) Creation of ITUC and Global Unions
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International Trade Union Confederation ICFTU WCLITUC (2006) Independent Centres WFTU
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Council of Global Unions Created in January 2007 Composed of GUFs, the ITUC and TUAC Its role is to stimulate co-operation in agreed, priority areas and to reinforce work already being carried out by Global Unions
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Global Unions ITUC OECD-TUAC Global Union Federations (GUFs) BWI EI IAEAICEM IFJIMF ITF ITGLWF IUFPSI UNI
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Organising is the Top Priority Shrinking base of traditional trade unions (male, old, full-time permanent workers in developed countries’ public sector or manufacturing ) Organise “Unorganised Workers” (female, young, part-time, contract workers, new industries, service and informal sector, export processing zones, migrant workers, developing countries)
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