Globalization Crisis Decent Work Implications for Union Agenda

Globalization, ‘Crisis’ & Decent Work: Implications for Union Agenda Arun Kumar

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

Some features of current development model � Shift from development cooperation to free trade - Open markets for trade, investment & capital flows; � Withdrawal of ‘State’ from its economic & regulatory role; (markets Know the best, will self regulate ) � 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” unequal capabilities equality of “opportunity” �unequal outcomes � Redistribution of income towards the rich (privatization, tax policies)

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 )

Global Economic Crisis – root causes Ø Result of ‘markets know the best’ philosophy – Financialization of the economy, speculation & greed Ø Widening Inequalities – between K & L, between countries, between regions Ø Wages lag behind productivity declining share of wages in value added & GDP debt financed consumption Ø Consequences of inadequate or lack of social protection on growth & recovery Ø Export dependence of Asian Countries

So, what has been the response to Crisis? �Rescue Banks & financial sector �Stimulus packages �Easy money policy to promote credit, investments and economic activity Has it worked? Financial crisis Economic Crisis Public debt crisis To be paid for by workers, retirees & people in general

ILO’s Response

GJP is not just about creating more jobs! It’s 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; Among other things, recommends use of wage policy tools, social protection and respect for workers rights to boost wage share and domestic demand

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 individual and collective dimensions (C 87 & 98)

Decent Work to be achieved thru actions on 4 pillars … productive employment & sustainable enterprises social protection/ social security for all Standards & basic rights at work Promotion of Social dialogue, including Collective bargaining [+ Gender Mainstreaming] UNIVERSALITY & INTERDEPENDENCE: the objectives to be promoted by all & are “inseparable, interrelated and mutually supportive” (SJD, 2008)

Decent Work: nationally defined goal thru tripartite dialogue, based on national context & needs • No Ceiling, Perpetual • Relative & multiple paths • Social Floor • basic rights at work progress

Pre-conditions for Decent Work: Fundamental Rights at Work principle: All those who work, have rights at work! How many Asian countries have ratified C 87 & C 98?

If work is to be decent, it must be safe! �Every year around 337 million people are victims of work accidents – about 1. 1 m people die in Asia because of occupational injuries or work-related diseases �Most affected: the poorest, least protected, least informed & least trained �Costs: human lives, healthcare costs & economy �Improving safety & health at work & social protection for workers is a key element in realizing the goals of the Asian Decent Work Decade

Decent work: mainstreaming gender A gender perspective is a matter of human right - helps to ¡ Analyse economic and social roles ¡ Identify forces leading to inequality ¡ Address “de-jure” and “de-facto” discrimination ¡ Promotes efficiency & inclusive policies So, what are the main DW concerns for women?

So, what is the current situation in Asia-Pacific home to about 2/3 rds of global workforce �Employment? �Wages and collective bargaining? �Social Protection? �Labour standards & workers rights? �Women workers work & lives?

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. Source: Report of the DG 15 th Asia and the Pacific Regional Meeting, ILO, 2011 Growth not generating adequate employment [2001 -2008]

Wages lag behind productivity 2000 - 2009 �Average growth in output per worker in Asia: 4. 1% p. a. , 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 �decline in labour’s share of national income, contributing to rising inequality & restricted domestic markets. �Gender pay gap - women’s wages represent between 70– 90% of the wages of their male counterparts

Contribution Rates for SS Programs in selected Asian countries 2008 (%) Source: Prof. Mukul G Asher, National University of Singapore A-P spends about 5. 3% of GDP on public health and social security –lower than other regions

Fo. A & Collective Bargaining �Asia has the lowest ratification of the Convention 87 (19) and Convention 98 (25). �Important countries like China, India, Iran, Korea, Thailand, Vietnam, etc have not ratified these conventions although Fo. A & 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 119%).

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

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?

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 ) � 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?

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

Wages & labour Standards led growth �Are labour standards only a question of ‘rights’ of workers? �What role does Wage policy, Fo. A, CB & Social Security/social protection play in economic development?

« THERE IS NO ADVOCACY WITHOUT EVIDENCE » FROM KNOWLEDGE DEVELOPMENT TO ADVOCACY… • ADVOCACY • NEED TO INCREASE THE ACTIVE SUPPORT OF POLICY MAKERS UNDER THE NATIONAL SOLIDARITY PRINCIPLE • CAPACITY BUILDING • ENHANCE THE TECHNICAL CAPACITIES OF THE UNIONS & OTHER ACTORS INVOLVED IN THE MANAGEMENT OF SOCIAL & ECONOMIC POLICIES • • KNOWLEDGE DEVELOPMENT • NEED TO DEVELOP STRONGER EVIDENCE ON WHAT WORKS/ BEST PRACTICES AT THE GRASSROOTS LEVEL…

Group Work 1: Country Situation Review G 1. What impact the ‘economic crisis’ had on your country & workers? What policies Government initiated to deal with impact of crisis? Any example of union response? G 2. What are the factors that prevent unions from playing effective role in dispute resolution & collective bargaining? (focus on drawbacks in law, capacity of unions, employers behaviour, role of authorities – give examples) G 3. What are the main demands of the employers in your country? G 3. What are the ‘means’ available to unions to enforce workers rights? � What are main priorities of Trade Unions in your country? List top 3 priorities