1. Informality and Precarious Work in GSCs and EPZs February 2016 Lome TOGO DIA Insa Ben Said

2. Background
In October 2013 , the ILO took the decision to put on the agenda of the 105th Session of the International Labour Conference (2016) an item for general discussion on decent work in global supply chains.
The first General discussion on this «new concept» focused on the the economic and trade dimensions of GSCs : positive aspects of GSC for a sustainable development and less on the working conditions which is essential for us as ILO

3. DEFINITION : NOT YET ADOPTED. BUT…
The ILO will say that : the definition of GSCs refers to the cross-border organization of activities required to bring goods or services to consumers through inputs and various phases of development and production.
This highlights one of the glaring failures of the current model of globalisation. There is a need for fair trade and inclusive workers rights across the global supply chain.

4. From Traditional market : Which was A serie of
Individual who produces for
The MARKET+Interm>Export
Don’t work like that now. WALMART for example :
Team of specialists in 28 countries
24 hours 7/7…high degree of organization
CHANGING RETAIL LANDSCAPE
A range of standards applied

5. Changing retail landscape

6. World Retail Ranking** Total Countries Operating Group Revenue
Supermarket
Country of Origin
World Retail Ranking**
Total Countries Operating
Group Revenue
(US $ m)
Walmart
USA 1 16
421,849
Carrefour
France 2 33
121,519
Tesco UK 3 13
94,244
Shoprite Holdings Ltd
S. Africa 92
10,362
Massmart Holdings Ltd
126 14
7,589
Nakumatt
Kenya
n/a 4
350***
Tuskys
193***
Uchumi
104***
Source: Deloitte 2012 and Dihel 2011
Top 3 Smkts Group Revenue > GDP of 173 countries (// Switzerland)
S. Africa Fruit direct to supermarkets: 40% in 2000 – % in 2011
Walmart: 51% acquisition Massmart (2011); China’s 7th largest trading partner (2010)

7. Rise of Private Standards:
North & South
localg.a.p.

8. Workers in GSCs Estimates of 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)
1.5 m smallholders in W. Africa cocoa 25% women (Oxfam 2013)
Estimated Value Capture as % Final Retail Price ( )
Labour Cost of Production
Retail/Brand Mark Up
Apple IPod ($300)
1-2%
52%
Men’s Jeans ($36.71)
2-3%
65%
Fresh Grapes ($3/kg)
9-13%
42%
Sources: Linden et. al. 2007; Birnbaum 2006; Barrientos and Visser 2013;

9. Simplified Global Supply Chain and Labour
Inputs
Production
Distribution
Brand/Retail
Consumer
Regulation
GVC Governance
Standards
Labour Market
Labour Market
Labour Market
Labour Market
INTERNATIONAL LABOUR ORGANISATION
DEFINITION OF GLOBAL SUPPLY/VALUE CHAIN:
Customer oriented
Lead firm coordinated
Links all stages – design, inputs, production, distribution, retail
Sourcing cross-border (fragmentation/ specialisation of production)
Lead firm Governance – inc. standards (technical, social, environmental)
(Stephanie Barrientos)

10. Economic and Social Upgrading in GPNs/GVCs
Economic Upgrading
Move from low to high value activities
Product, Process, Functional & Chain upgrading
Social Upgrading
Decent work framework: employment, rights, protection, social dialogue
Enhanced capabilities and rights
Measurable Standards: Contracts, wages, benefits, hours, H&S etc.
Enabling Rights: Freedom of association, no discrimination
Upgrading versus Downgrading Trajectories

11. Capturing the Gains Research Africa
Four sectors in sub-Saharan African (SSA) countries:
Agro-food: ZA, Kenya, Uganda (horti/floriculture); Ghana (cocoa)
Apparel: ZA, Kenya, Lesotho, Mauritius & Madagascar
Mobile telecoms: ZA, Kenya & Uganda
Tourism: ZA, Kenya & Uganda
Africa research led by: Dr Shane Godfrey, UCT

12. Mixed outcomes:
S. Africa Fruit

13. Capturing the Gains Africa Summary of case study findings
Buyer/cost pressures across sectors challenge to supplier economic upgrading. Expansion of new markets/buyers (including within Africa)
Apparel and tourism: where economic upgrading occurs it is often captured by foreign-owned firms
Skills deficits are widespread across all sectors and countries, both for workers but also managers and technical skills.
When social upgrading does occur, it is often social upgrading for some and downgrading for others, e.g. in tourism and horticulture upgrading for permanent/regular workers but downgrading for casuals/contract labour.

14. GSC/EPZ
« Exploiting the circumstances of vulnerable people – whether intentionally or not – is at
the heart of many employment strategies in global supply chains. Of course vulnerable
social groups desperately need employment as a means of escaping poverty and
inequality. But it is no escape at all if the way that they are employed turns their
vulnerability into an opportunity for employers to pay them less, work them harder
and longer, and avoid paying their rightful benefits.»

15. to my employer, he gave me a written warning»
«We have to do overtime until midnight to earn a decent income. I am afraid of having
children because I wouldn’t be able to feed them»
«We don’t have the right to be sick. One day when I was not well and I took a doctor’s note
to my employer, he gave me a written warning»

16. Women at the end of Supply chains
Globalisation has drawn millions of women into paid employment across the developing
world. Today, supermarkets and clothing stores source the products that they sell from
farms and factories worldwide. At the end of their supply chains, the majority of
workers – picking and packing fruit, sewing garments, cutting flowers – are women.
Their work is fuelling valuable national export growth. And their jobs could be providing
the income, security, and support needed to lift them and their families out of poverty.
Instead, women workers are systematically being denied their fair share of the benefits
brought by globalisation.

17. Decent Work Challenges
Social Upgrading and Downgrading
Commercial Pressures: quality vs. cost
Upgrading for some workers: quality driver
Downgrading for other workers: cost driver
Key Decent Work Issues
Workers:
Skills, Rights, Living wage
Enforcement for casual/contract/migrant workers
Gender equity: linking quality and cost drivers
Suppliers/SMEs: capacity building to upgrade & comply

18. Policy Challenges Governance Deficits: Policy Areas:
Private, Public, Social, Multi-stakeholder
Policy Areas:
Linkages between public and private interventions
Enforce Decent work for ALL workers
Address commercial drivers e.g. living wages
Forge alliances public/private, national/international
Ensure ILO Fundamental Principles central to ALL interventions across GSCs

19. ILO Role/Interventions
ILO unique position on decent work in GSCs
Tripartite
ILO Conventions: (a) standards (b) legislation (c) initiatives
Links across countries, sectors , internationally
Prioritisation Essential
ILO expertise - where best promotes DW
Identify key leverage points /Alliances in GSCs
Possible strategies/interventions across GSCs:
Endorsement
Scaling Up
UN/Ruggie Principles
Joint and Several Liability (Regulatory and Voluntary)

20. END / Fin
Thank you / Merci! 