Impacts of Globalisation

Hashim Lobe

Director Trade Union Develoment Activities, UNI APRO

It’s a GLOBALIZING WORLD

Free flow of

-- goods, capital, technology in a borderless economy (without frontiers)

-- global connectivity : internet/cellphone can put you connected everywhere

Drivers of globalization

Technology

Triumph of free trade philosophy everywhere(collapse of Eastern Europe, market

economy in China, etc.) Role of IMF-WB (policy conditionalities)

And WTO to promote borderless economyThrough privatization, liberalization, deregulation

For global economy, yes, greater growth, greater integration, greater connectivity

But also greater role for TNCs and elite people

(wealth of 3 richest men equal to 60 developing countries)

Hence, greater inequalities within and among countries/industries -- there are winners/losers

UNDP: globalization a power to do good; also a power to do harm

Negative more than Positive Outcome

Rise of China as export champion (from light to more sophisticated products)

Decline of industries in other Asian countries

Decline of manufacturing in Japan, Taiwan, SK

Rise of India as another China

Failure of development in some countries – Philippines, Indonesia

Uneven/unequal growth w/n and across countries

But TNCs are everywhere, triumphant

Globalization Trends in Asia

-- jobless growth (esp. for developed countries)

-- disruptive growth (esp. for developing countries)

-- job insecurities (due to footloose industries, outsourcing, competition, technology,

endless reorganization, privatization)

-- race to the bottom -- (eroded bargaining power, lower labor standards)

Impact on trade unions – generally negative almost everywhere

Busisiness flexibility means flexibile

Responsibility

global competition = search for higher productivityand lower cost of production = search for cheap and productive labor – paying workers as low as possible, lowering working conditions, hiring casual workerincreasing productivity, work intensification

Impact Summary Declining number of regular jobs

Declining union members

Declining bargaining rights

Declining labor rights

Global challenges

Union action

• global• new alliances• urgent

Organising Wal-Mart

Wal-Martisation

Offshore world map

Source: BusinessWeek February 3, 2003

ChinaChina

PhilippinesPhilippines

CEECEE

RussiaRussia

IndiaIndiaLatin AmericaLatin America

IrelandIreland

IsraelIsrael

8.3

3.71.1 3.0

Ireland Canada China

7.7 8.2

Israel India RoW(Source: McKinsey&Company 2004; Billion US$)

• UNI Postal

Global union

• UNI Commerce

Global union

• UNI Property Services

Global union

Recruitment

Recognition

Rights

Results

Multinational framework agreements

1. Telefónica (2000)

2. Carrefour (2001)

3. OTE (2001)

4. ISS (2003)

5. H&M (2004)

Multinational framework agreements

Quebecor, Amcor, Kimberly Clark, SCA, Smurfit, British Telecom,

Deutsche Telekom, France Telecom, Singtel, Vivendi Universal,

Auchan, Casino, Ikea, Metro, Rewe, Tesco, Group 4 Securicor,

Securitas, Axa, Deutsche Bank, Westfield, Banco Santander, Banco

de Bilbao, HSBC, Barclays …

Targets

Global and regional

UNI-Africa• African Union• NEPAD• SADC• COMESA• ECOWAS

UNI-Europa• European Union

UNI-Asia&Pacific• APEC

• ASEAN

• ASEM

• SAARC

UNI-Americas• FTAA

• NAFTA

• Mercosur

• Economic integration• Social dimension• Social dialogue

A new organising world

UNI-Africa• North Africa• Middle East• Nigeria• South Africa

UNI-Europa• Central and

Eastern Europe• Mediterranean

UNI-Asia&Pacific• China• India• Indonesia

UNI-Americas• USA• Mexico• Brazil

Solidarity

• 24 hours• Global support• The global chain

Communications

• Web-based• Info• Bulletin• Mailings• Virtual committees• Video conferences• Conference calls• Publications• Press conferences• Communicators’ forum

UNI supporting change in global labour movement

• ICFTU/WCL unification

• Global Unions’ Council