ITCILO COURSE A 106025 Capacity Building for Organizing
ITCILO COURSE A 106025 Capacity Building for Organizing and Managing Trade Unions 26 to 30 August 2013 Impact of Globalization on the World of Work: Perspectives of Trade Unions
Aspect of Globalization most In-focus q The current global economic and financial crisis q Collapse of US banks and financial structure (cause + origin) q Globalised in days/weeks due to: ü Interdependence of countries + economies ü Dominance of financial economy over real economy q Crisis not due to globalization per se but failed neo-liberal model of globalisation: ü ü ü Law of the jungle Maximize short-term profit Speculative investment Deregulation of economic governance Reliance on markets and reduced role of the State in the economy Scaling down social and human standards – lowest common denominator = China (= model)
Some Positive Aspects of Globalization q Globalization can and should be positive if it is based on fairness: q Based on decent standards and rules (for people) q Include respect for DW and Labour Standards q. Has generated: q. New markets q. New products q. New technologies q. World mobility (capital and production) q. Enormous resources
Key Drivers of Globalization 1. Unfair and unequal distribution of gains ü Wages grew far less than productivity 2. Export-oriented world economy ü Mass production of cheap export goods 3 Deregulation of financial markets: free to move + abuse ü Undermined real economy
But ILO + TUM Warned q ILO + TUM warned: globalization with no social dimension is unsustainable + has negatively impacted: q Workers’ rights + conditions q Living standards q Consumer economy (consumption) Demand, production + growth = well known vicious circle of poverty WE HAVE NOT BEEN WRONG
Consequences at world level (situation 2012) q Total unemployment: 197 million (+ rising) q +28 million since start of crisis 2008 q +39 million stopped job search (dropped out) q Equal to 67 million jobs gap since crisis q More than 5 million further increase projected in 2013 q ¼ of increase in unemployment in industrialized countries and ¾ in other regions (Asia, Sub-Saharan Africa, etc. ) q Youth unemployment: about 75 million worldwide (dramatic increase) q. Particularly severe in Europe (22% of youth NEET) q. Spain, Greece (more than 50%) but also rising in Portugal, Italy, etc.
Continues… q Overall decline in training budgets (state + private) q Lack of skills for new jobs q. When unemployment increases: q. Rise in insecure jobs and poor working conditions, poverty and inequality q. Income drops q. Consumption drops q. Slower recovery q 397 million in extreme poverty (below 1. 25$ a day) q 472 million cannot meet basic needs (below 2$ a day) q 869 million below the poverty line q Large army of working poor: concept of mass + cheap production for export – the current global model.
Continues… q Employment in exporting industries = particular vulnerabilities: q Mismatch between labour productivity (+15% 2000 -2011) and real wages (+6% same period) q Decline in share of wages/labour in GDP q Growing gap between level of wages and profits (most sectors) q Cheap production, increased profits, disregard for H + LRs q Workers rights downgraded q Breakdown of social dialogue in most countries + in all regions q Richest 20% of the world’s population had at its disposal 86% of the world’s GDP while 20% had access to a mere 1%. q Global unemployment is estimated at 202 million. q Growing inequality + social exclusion q Child labour: 215 million
Worsening Social Situation q Blind austerity imposed by IMF-US-EU under neo-liberal domination: q Slash public services q Labour rights and conditions q Social protection q Pumped 100 billon dollars into the banks q Forced countries in need to privatize q Long term strategic objective: transfer wealth and power to private sector q More poverty, misery, inequality, social unrests, dismantling of state power q But after 5 years austerity – no solution or improvement insight q Damage is still there and economic decline continues
Some governments have adopted and others are planning to adopt a range of austerity measures: Austerity Measures Adjustments Strategies No. of Countri es No. of Developing Countries High-income Countries Eliminating or limiting subsidies Reducing subsidies, predominantly on fuel, but also on electricity, food and agricultural inputs 100 78 22 Cutting or Capping the Wage Bill Reducing the public sector wage bill as part of civil service reforms 98 75 23 Increasing Consumption Taxes Increasing or expanding VAT rates or sale taxes or removing exemptions 94 63 31 Reforming old-age pensions Raising contribution rates, increasing eligibility periods, prolonging retirement age or lowering benefits 86 47 39 Rationalizing and/or further targeting social safety nets Rationalizing spending on safety nets and welfare benefits, often by revising eligibility criteria and targeting the poorest, which is a de facto reduction of social protection coverage 80 55 25 Healthcare system reforms Raising fees and co-payment for patients as well as cost-saving measures in public healthcare centers 37 12 25 Labour flexibilization Reducing minimum wage, limiting salary adjustments to cost of living standards, decentralizing CB and increasing the ability of 32 15 17
Policies/Strategies: What to Do? q Through DWCPs promote: q Workers’ Rights q Ratification & implementation of core labour standards q Ratification & implementation of ILS q Participation in the ILS supervisory system and the follow-up of the Declaration on FPRW q Employment policies q Equal opportunities and treatment q. Development of SME q Social Protection q Development of Social Security Systems q Expansion of social protection through the SP Floors q. Social Dialogue q Development of effective tripartism & bipartism systems q Strengthening workers’ & employers organisations
Continues… q Ensure tax justice with a just, progressive and permanent taxation system on revenues, wealth and corporate profits q Outlaw tax havens and strengthen measures against fraud and tax avoidance and evasion. q Develop public, Africa-wide investment programs under social control for a social and ecological transition q Guarantee rights for all: no to Poverty and Precariousness q Restore the right to bargain collectively + right to collective action q End social + wage dumping in Africa and in the world
Continues… q Establish an adequate minimum wage set by law q Impose equality of wages, pensions + career development between women + men and outlaw discrimination q Strengthen the social + political protagonism of migrants q Make banks to serve the public interest q Stand up for democracy
Trade Union Practical Actions q Insist on + campaign for: q End to blind austerity policies q Policies for economic + social development q. Denounce and bring evidence of social decline – workers, families, children, precariousness, public service q. Show that neo-liberal dogma does not solve economic crisis q. Put forward TU program + alternatives q. Insist on cleaning up financial markets q. Agitate for investment in real economy - SMEs
Continues… q Agitate for an end to the policy of overproduction of cheap goods, exploitation and degrading of standard labour conditions q Insist on investment in decent jobs, social protection, green economy, and special programs and strategies for youth employment. q TUs themselves should: q Make better use of (+ insist on govt. respect) for ILO instruments: q Conventions, Recommendations, Protocols, Declarations, Resolutions, Codes of Practice q Monitor, verify and report violations of ILO instruments q Use ILO data and reports q DWCP q Advisory services (e. g. ACTRAV)
Continues… q Strengthen TU voice + position at AU level and other relevant regional institutions q Strengthen international TU solidarity + interaction (data + information exchange and networking) q Support/participate in creation of socio-economic policies q Seek strategic alliances: consumer organizations, student organizations, media q Above all: speak with one voice: q TU fragmentation = decline credibility and membership q Improve TU public image (marketing TUs) q Special efforts to address the plight of youth, women + informal economy workers q Campaign for the restoration of social dialogue q TU unity has a key role in all this.
Conclusions q There can be no sustainable economic recovery without sustainable benefits and up-to-date labour standards. q Ensuring respect for Fundamental Principles and Rights at Work results in undeniable benefits to: ü The development of human resources; ü Economic growth; ü Global economic recovery. q The crisis must not be used as an excuse for lowering standards. q Treaty obligations, voluntarily undertaken, are to be fully respected. q Tax avoidance, corruption and reduced role of government undermine development initiatives.
Continues… q Neoliberal doctrines undermine education, health, increase inequality & reduce labour’s share in income. q Wages – main source of domestic consumption but: ü Wages lagging behind productivity ü Wage share in GDP is declining ü No social protection for the majority.
« 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…
The End Thank you!
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