Download - Ppt Cls And Trade Luinstra
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Labor Standards and Trade
Amy LuinstraSocial Protection
World Bank August 2004
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Labor Standards
Prohibition of forced labor Elimination of child labor Equal opportunity and non-discrimination Right of association and Right to organize and
bargain collectively Health and safety Payment of wages (minimum, in full, on time) Hours of work Social security payments
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Regional Distribution of Child Labor
0
50
100
150
200
250
Persons (millions)
Asia Africa LatinAmerica
ChildWorkers
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Cambodia – US scheme 1999-2005Cambodia – US scheme 1999-2005
5
1999 US – Cambodia Trade AgreementCambodia earns quota bonus for demonstrated improvements in working conditions.
2000: ILO Garment Sector Project Objective: increased compliance with labor law.
Strategy: monitor working conditions in factories; provide synthesis reports to US Govt.
Uniqueness: 100% of factories; transparent.
Weaknesses: (i) bonus not awarded to best factories; (ii) productivity gains not monitored.
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Cambodia’s perceived strengthsCambodia’s perceived strengths
6
1 2 3 4 5
Union rights
Quota
Laborstandards
Importance
Cambodia
Bangladesh
Thailand
Vietnam
China
Very poor Very good
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CSR Drivers for MNEs1.
2.2.
3. 3.
4.4.
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Growing influence of Corporate Social Responsibility
(CSR)
Much more influential
42%More influential46%
Equal influence9%
Don't know/NA1%
Much less influential
1%
Less influential1%
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Most important issues
0 10 20 30 40 50 60 70 80 90
Percentage of respondents identifying issue
Land rights
Human rights
Corruption
Labor rights
Environmental Mgmt.
Agribusiness Extractive Manufacturing
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Relative influence of CSR compared to cost, quality, delivery time.
Don't know/NA6%
Much more influential
8% More influential8%
Equal influence45%
Much less influential
9%
Less influential24%
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"CSR Issues Have Led Our Company To…"
0 10 20 30 40 50 60Percentage of sector that has taken relevant action
Choose one partnerover another
Withdraw from apartner
Choose one hostcountry over another
Withdraw from acountry
Agribusiness Extractive Manufacturing
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“Do strong laws on CSR issues make it easier to conduct your business?”
Don't know12%
Yes61%
No27%
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No19%
Don't know
6% Yes75%
“Does it help your business if the CSR-related laws are well-enforced?”
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Codes of Conduct
Forced labor Child labor Wages, benefits, terms of employment Hours of work Discrimination Harassment, abuse, and disciplinary action Freedom of association collective bargaining Health and safety policies
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Where go from here?
Bilateral Trade Agreements Incentive-based (US-Cambodia Textile Agreement) National-law focused (e.g. US-Jordan/Singapore/Chile)
Resources and capacity building to developing countries to improve standards
Enhance ILO resources/authority to monitor and assist in labor standards compliance
Allow sanction for egregious violations (intentional repression of LS for competitive adv).
Corporate Codes of Conduct