CHAPTER 6OUR ROLE AS MANAGERS IN UNDERSTANDING AND FULFILLING THE LABOUR PRINCIPLES OF THE UN GC

By Michael J. D. Roberts

ATTITUDES At the core of many political parties is a

professed alignment with organized labor or business interests

One’s stance toward the organized labor movement is a major determinant of whether you are seen as being on the so called “left” or “right” of the political spectrum.

PRINCIPLES The labor principles of the UN GC are

built on the principles of the free-market economy and democracy.

A free and fair market for labor requires that laborers and firms that employ them enjoy a reasonably equitable amount of power in negotiating a wage.

FREE-MARKETA free-market economy is an “economic system … in which most of the means of production are privately owned, and production is guided and income distributed largely through the operation of markets” (“Capitalism,” 2011). The markets are controlled by free buyers and sellers.

COMMAND ECONOMYA command economy is an “economic system in which the means of production are publicly owned and economic activity is controlled by a central authority” (“Command Economy,” 2011). Central planners determine the assortment of goods to be produced, allocate raw materials, fix quotas for each enterprise, and set prices. Most communist countries have had command economies.

DEMOCRACYDemocracy is “a philosophy that insists on the right and capacity of a people, acting either directly or through representatives, to control their institutions for their own purposes. Such a philosophy places a high value on the equality of individuals and would free people as far as possible from restraints not self-imposed. It insists that necessary restraint be imposed only by the consent of the majority and that they conform to the principles of equality” (Democracy, 2011).

PRINCIPLES A free market requires that the seller

has a reasonable opportunity to refuse to sell.

Therefore, in a free market, workers must be able to refuse work agreements without that refusal having grave consequences for them or their families, and they must have an equitable amount of power to negotiate a fair price for their labor.

HISTORY International labor standards are

established by the UN International Labor Organization (ILO)

The ILO codified four categories of basic labor principles and rights that can help guide employers.

HISTORYFreedom of Association and the Right to Collective

Bargaining Freedom of Association and Protection of the Right to Organize

Convention (No. 87), 1948 Right to Organize and Collective Bargaining Convention (No. 98), 1949Forced Labor Forced Labor Convention (No. 29), 1930 Abolition of Forced Labor (No. 105), 1957Child Labor Minimum Age Convention (No. 138). 1973 Worst Forms of Child Labor Convention ((No. 100), 1951Discrimination in Respect of Employment and

Occupation Equal Remuneration Convention (No. 100), 1951 Discrimination (Employment and Occupation) Convention (No. 111), 1958

THE 4 PRINCIPLES OF THE UN GCPrinciple 3: Business should uphold the

freedom of association and the effective recognition of the right to collective bargaining;

Principle 4: the elimination of all forms of forced and compulsory labor;

Principle 5: the effective abolition of child labor; and

Principle 6: the elimination of discrimination in respect of employment and occupation.

THE 4 PRINCIPLES OF THE UN GCPrinciple 3: Business should uphold the

freedom of association and the effective recognition of the right to collective bargaining;

COLLECTIVE BARGAININGAFL-CIO (http://www.aflcio.org/Learn-About-Unions/Collective-Bargaining)Collective bargaining is the process in which working people, through their unions, negotiate contracts with their employers to determine their terms of employment, including pay, benefits, hours, leave, job health and safety policies, ways to balance work and family and more. Collective bargaining is a way to solve workplace problems.After the rights of public employees to collectively bargain for a middle-class life came under attack in 2010, working people in all kinds of jobs as well as students, community supporters, faith leaders and others united to defend this basic right.

PRINCIPLE 3First, laborers and managers have the right to form

their own organizations or associations and allow members to join those associations.

Second, the rules and constitutions of those organizations and the elected representatives must be democratically elected by the members.

Third, these organizations shall not be arbitrarily dissolved or influenced by agents of the state.

Fourth, these organization shall have the right to associate and form alliances with other like-minded domestic and international organizations.

PRINCIPLE 3 ~ ROLES OF MANAGERS1. Managers should not attempt to undermine

the negotiation power of the union by negotiating with individual workers.

2. Firms must send representatives who are able to make decisions and enter into agreements.

3. Managers must disclose a reasonable amount of financial and other information to the union to ensure equity in knowledge.

4. All parties must adhere to an honest policy of bargaining in good faith.

PRINCIPLE 4 ~ ILO DEFINITIONForced or compulsory labor is any work or service that is extracted from any person under the menace of any penalty, and for which that person has not offered himself or herself voluntarily. Providing wages or other compensation to a worker does not necessarily indicate that the labor is not forced or compulsory. By right, labor should be freely given and employees should be free to leave, subject to previous notice of reasonable length.

THE 4 PRINCIPLES OF THE UN GCPrinciple 4: the elimination of all forms

of forced and compulsory labor;

PRINCIPLE 4 Forced labor is a violation of human

rights ILO estimates that there are 12.3 million

people who are victims of forced labor at the hands of private agents

The principle against forced labor is an absolute standard and cannot be waived for “less desirable” people or for “good cause.”

PRINCIPLE 4 ~ MANAGERS’ ROLE Be proactive and root out forced labor Be an advocate for those who have no voice

to defend themselves Seek out solutions for victims of forced labor Ensure that employment contracts of others

businesses one deals with have been provided

Contribute to larger community efforts to eliminate force labor and help workers to find freely chosen work

THE 4 PRINCIPLES OF THE UN GCPrinciple 5: the effective abolition of

child labor; and

PRINCIPLE 5

Since the industrial revolution in Britain in the 18th century, controlling and eliminating child labor has been crucial for the development of modern society.ILO conventions (Minimum Age Convention, No. 138 and the Worst Forms of Child Labor Conventions, 182) define child labor by using minimum age standards for entering the workforce (ILO, 2001)

PRINCIPLE 5

Source: International Labor Office (2008).

Minimum Age for Admission to Employment or Work

Developed Countries

Developing Countries

Regular Work 15 years 14 years*Hazardous Work

18 years 18 years

Light Work 13 years 12 years*For a definition of “hazardous work” see Lawrence and Beamish (2013, p. 98).

PRINCIPLE 5

According to the ILO (2008), “child labour damages a child’s physical, social, mental, psychological and spiritual development. Child labour deprives children of their childhood and their dignity. They are deprived of an education and may be separated from their families” (p. 28)

PRINCIPLE 5Roles of Responsible Managers Managers should begin by making sure that

they are not in violation of child labor laws in their own firms and subcontractors.

When removing children from the workplace, managers should ensure that they are not forced into a situation which may be even more exploitative.

When possible, children removed from the workplace should be provided adequate support.

THE 4 PRINCIPLES OF THE UN GCPrinciple 6: the elimination of

discrimination in respect of employment and occupation.

DISCRIMINATE1 a : to mark or perceive the distinguishing or peculiar features of b : distinguish, differentiate <discriminate hundreds of colors>

2 : to distinguish by discerning or exposing differences; especially : to distinguish from another like object

intransitive verb1 a : to make a distinction <discriminate among historical

sources> b : to use good judgment

2: to make a difference in treatment or favor on a basis other than individual merit <discriminate in favor of your friends> <discriminate against a certain nationality>

PRINCIPLE 6 Fighting discrimination in the

workplace is an ongoing concern in the most developed countries.

People should be considered for employment based on relevant qualifications, experience, or characteristics for the position for which they have applied.

PRINCIPLE 6 Normally, candidates should not be

discriminated against based on race, color, sex, religion, political opinion, nationality, or social origin. More recently, some countries have extended discrimination protection to include sexual orientation, age, and HIV/AIDS.

PRINCIPLE 6Discrimination can show up in a number of ways,

including Recruitment Remuneration Hours of work and rest, paid holidays Maternity protection Security of tenure Job assignments Performance assessment and advancement Training opportunities Promotion prospects Occupational safety and health Termination of employment

PRINCIPLE 6 Local laws in some countries make it

difficult for some people to access certain types of employment.

For the most part, however, discrimination occurs informally through socially embedded attitudes and beliefs.

A policy of nondiscrimination means that employers will consider potential employees solely on their ability to carry out the duties state in the job requirements.

PRINCIPLE 6The Roles of Responsible Managers Eliminating discrimination in the workplace

takes commitment and time. Managers should institute company policies

and procedures that make qualifications, skills, and experience the basis for recruitment, placement, training, and advancement of staff at all levels.

Employees should be provided training on nondiscrimination policies and practices, including disability awareness.

PRINCIPLE 6

I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin, but by the content of their character.

~Martin Luther King, Jr.

PRINCIPLE 6

Equality may perhaps be a right, but no power on earth can ever turn it into a fact.

~ Honore de Balzac

All the people like us are “we,” and everyone else is “They”.

~Rudyard Kipling