icftuppt
TRANSCRIPT
What is Globalisation and
why does it concern us?
The working of the world economy is changing in a
number of ways Multinational investment Capital markets Technology Trade The IMF and the World Bank The WTO
These changes have different impacts on
different players
Companies
Consumers
Workers
Governments
Impacts on the different players : Companies
Wider markets Increased competition Outsourcing and sub-contracting mobile production set the terms exploitation in epz’s
Impacts on the different players : Consumers
Cheaper goods
Choice : more or less?
Lack of information
Impacts on the different players : Workers
Better reward for high skills
first target of cost cutting
threat of shifting production
competitiveness means NO union
wealth is not shared fairly
rights violated and standards drop
Why are so many workers not benefiting?
Low skilled jobs lost or moved
unemployment keeps wages low
attractive to investors
How governments attract investment
allow child or forced labour
ban unions
prevent collective bargaining
Export Processing Zones
turn a blind eye to discrimination
How are governments allowed to do this?
Weak national laws
international rules are silent
Who do international rules protect ?
WTO rules and member countries
protecting the money
developing vs. industrialised
nothing to protect consumers, workers,
or the environment
What can workers do about this ?
Know the issues Make our voices heard Solidarity with the most vulnerable Educate others Know what we are buying Transparency Democracy New Rules
What kind of rules are needed?
Fair comparative advantage
protect health and the environment
protect public services
sharing the wealth
…and what is Global Unions?
International Confederation of Free Trade Unions
The Trade Union Advisory Committee to the OECD
The 10 International Trade Secretariats
Multinational investment
more and more investment in businesses and production comes from foreign investors
Capital markets
Money is moved around the world more easily, making currencies and economies more vulnerable to financial speculation
Technology
technological innovation leads to structural change (such as losses of low-skilled jobs, goods produced through production processes in several countries, and so on) in manufacturing and other industries
Trade
increasing proportion of the products bought, in virtually any country, come from overseas, and more of countries' own products are sold abroad
The IMF and World Bank
rules are being made which force developing countries to open up public services to the private sector, even in areas like public health, education, and public utilities
The WTO
the capacity for national governments deciding on subsidies, investment controls and environmental standards is being greatly diminished or lost entirely
Increased competition
Increased competition from overseas competitors makes it harder for any business to make a profit and they are forced to cut costs as a result
Outsourcing
Outsourcing / subcontracting certain
parts of the production process to
cheaper suppliers in other countries (to
increase profit margins) becomes far
easier
Mobile production
Investors can always take their money elsewhere, if it's cheaper and gives them better profit margins
Set the terms
Poorer countries, desperate for investment, have no choice but to comply with whatever criteria investors lay down for investment. Even with industrialised countries, it is often the investor that sets the terms
Exploitation in EPZ’s
Workers in an increasing number of developing countries are being exploited in export processing zones(particularly women workers) where they often have no right to join trade unions
Choice : more or less ?
Some argue that there is more choice than before. Others say that globalisation allows big global players to knock out small local producers, in effect, limiting consumer choice
Lack of information
When goods are produced, it is often hard to know where they are made, where the components are made, how they were produced or the working conditions under which they were produced
Better reward for skills
Highly skilled workers can, in some cases, get better jobs due to more demand for their skills
Cost - cutting
workers tend to be the first target of company cost cutting
Shifting production
Investors and big companies can shift production quickly to where costs are lower. They also threaten to move in order to refuse workers’ demands or union organising drives
Competitiveness
Employers often use "international competitiveness" as a pretext to fight union organising and refuse to negotiate at the bargaining table
Wealth not shared
Workers often sacrifice wages and benefits when companies act to protect or increase profit margins - they rarely share equitably in the wealth which is generated
Rights violated
Worker rights are being violated and standards lowered in the name of achieving higher productivity for export sales (such as when women workers are exploited in export sweat-shops)
Jobs lost or moved
Lower-skilled workers tend to be replaced by technology or find their jobs transferred to other countries
Unemployment
If unemployment levels are high, it's easier for companies to find others willing to work for less
Attract investment
Governments (especially, but not only, in poor countries) are desperate for investment - and since foreign and local investors prefer a "docile" workforce which has no collective voice, governments are often willing to suppress the basic human rights of workers
Child and Forced labour
In the name of low labour costs, some governments allow the use of child and forced labour, even in production for export markets
Ban on Unions
Some governments advertise their ‘non - union’ workforces as proof of a good investment situation
Collective bargaining
Some governments will either obstruct collective bargaining mechanisms or set wages themselves, in order to keep wages and conditions down
EPZ’s
Some governments create EPZ’s to attract investors
labour laws are often much weaker in EPZ’s, and trade unions are outlawed in many
Discrimination
Some governments ignore discrimination that keeps labour costs down, for example:
women in EPZ’s migrant workers in agriculture or other
hazardous occupations
Weak national laws
Often national legal protections for workers are too weak to be effective or are not enforced
No global rules
International rules on trade and investment do not penalise those who undermine worker rights
WTO rules
Different agreements, such as TRIPS, TRIMS, Food Safety...
Protect the money
These rules protect the party with the resources, ie.
The investor The patent owner The exporting company
Rich vs. Poor
In theory, these rules protect developing countries' equal rights, but in practice, long-established loopholes make it easier for industrialised countries to benefit.
Also, special privileges for developing countries have been agreed, but not delivered
No Protection
The rules do nothing to protect workers, consumers or the environment
In some cases, it is against the rules to try and protect workers, consumers, or the environment
Solidarity
Show solidarity with workers in other countries, especially in the poorest countries
The Global Unions Day of Action aims to do just that
Right to know
Was it made with child labour or forced labour ?
Was it made in a sweatshop where no unions are allowed ?
Does it contain toxic ingredients banned in other places ?
Did its production pollute the environment ?
Transparency
Much of the WTO process goes on behind closed doors
IMF and World Bank lending programmes are often drawn up and agreed without even the knowledge of the national parliament
Democracy
A seat at the table for trade unions - our future is at stake, and we have a right to be consulted on it
Comparative advantage
rules to ensure that comparative advantage is not sought and gained through the violation of fundamental workers' rights - this is not really an advantage, and it actually hinders development
Share the Wealth
rules to make sure the wealth generated by Globalisation is shared within countries and between countries and between women and men
International Trade Secretariats
• Education International (EI)• International Federation of
Chemical Energy, Mine & General Workers' Unions (ICEM)
• International Federation of Journalists (IFJ)
• International Textile, Garment & Leather Workers' Federation (ITGLWF)
• Public Service International (PSI)
• International Transport Workers' Federation (ITF)
• International Federation of Building and Woodworkers (IFBWW)
• International Metalworkers' Federation (IMF)
• International Union of Food Agric. Hotel Rest.Cater.Tobac.& Allied Work. Assoc. (IUF)
• Union Network International (UNI)