Labour rights and the social cause

7/27/2019 Labour rights and the social cause

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labour rights and the social clause

HRD-10

2010


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overview:

1. Labour rights

2. 'Fair trade' and the 'social clause'

3. Child labour

4. research/essay notes

Essay question:

Q: What impact might a social clause have on child labour?


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1. labour rights

International Covenant on Economic, Cultural andSocial Rights (1966) -- Article 7

"States ... recognise the right of everyone to the enjoyment ofjust and favourable conditions of work which ensure ...

Remuneration which provides all workers, as a minimum,with ... Fair wages and equal remuneration for work ofequal value ... a decent living for themselves and theirfamilies ... safe and healthy working conditions ... equalopportunity for everyone to be promoted ... [and] rest,leisure and reasonable limitation of working hours andperiodic holidays with pay"


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labour rights elsewhere

! CROC (1989) - Art 27. state will assist parents withnutrition, clothing and housing; Art 28. right toeducation; Art 31. right to rest, leisure and play; Art 32.minimum work age rights, and -

"the right of the child to be protected from economic exploitation

and from performing any work that is likely to be hazardous or tointerfere with the child's education, or to be harmful"

! ILO - two minimum age conventions, 1973 and 2000


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The International Labor Organization:

! ILO origins - post WW1

! Tripartite form - states, employers, trade unions - c.f.governance structures of WB/IMF, UN, WTO

!ILO conventions - over 200 since inception

! Uneven development of international law - compare ILOand environmental treaties to WTO law


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Shareholder board structure - shares relateto size of eternal economyWorld Bank/IMF(from 1944)

One country one vote (except at theSecurity Council)

UN agencies(from 1945)

'consensus' - voting a possibility, but neveracted on

GATT / WTO(from 1947)

Tripartite - states along with employergroups and trade unions - UN affiliated

ILO (from 1919)

governance structure


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Global labour trends - driven by neoliberalism

1. 'Flexibilisation' of labour - cost containment,deployment powers, core/peripheral employees -flexibility for whom?

2. Informalisation of labour - increase in marginallyemployed and self-employed, 'sub-contractors',pieceworkers, child home workers, etc - less employeesand less 'unemployment'

3. Export orientation in work - can boost GDP and tradebut breaks link between wages and consumption

(overproduction=underconsumption), dual economies,'free trade zones' with migrant workers


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Related problems for workers:

! job losses, wage cuts, polarisation of labour hours (toomany or too little), loss of job security throughcasualisation and contracts, lack of access to workbenefits (training, leave, overtime rates, paid holidays),

weakened work conditions particular problem for thosewith broken work careers (esp. women), trade unionshave great difficulty recruiting transient / casualworkforce - growth of 'precarious work' - OHS disappearsas no 'workplace', reduced work related welfare - limitedrights for migrant workers


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'Fundamental' Conventions of the I.L.O.

ILO Convention # 29 (1930) -- Forced Labour ConventionILO Convention # 105 (1957) --Abolition of Forced Labour ConventionILO Convention # 87 (1948) -- Freedom of Association and Protection of

the Right to Organise Convention

ILO Convention # 98 (1949) -- Right to Organise and CollectiveBargaining Convention

ILO Convention # 100 (1951) -- Equal Remuneration ConventionILO Convention # 111 (1958) -- Discrimination (Employment and

Occupation) ConventionILO Convention # 138 (1973) -- Minimum Age ConventionILO Convention # 182 (2000) - Worst Forms of Child Labour Convention


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! Forced Labour Conventions - no forced labour for private individuals,companies, discrimination, labour discipline or political punishment -excludes military service, penal work, civic obligations (168 and 165 r.)

! Freedom of Association and Protection of the Right to Organiseand Collective Bargaining Conventions -- workers and employers canform their own organisations without authorisation - freedom to organise- no state interference - no anti-union discrimination, no politicalinterference - encourage collective agreements between workers'organisations and employers' organisations (144 & 154 r.)

! Equal Remuneration and Discrimination Conventions - equalremuneration (wages and other benefits) for men and women - nodiscrimination (162 & 163 r.)

! Minimum Age & Child Labour Conventions - progressive andeffective abolition of child labour, "raise progressively the minimum agefor admission to employment or work to a level consistent with the fullestphysical and mental development of young persons", compulsory

schooling to age 15, light work which does not jeopardise health orschooling from age 13 ban on sale of children, debt bondage,recruitment in armies, child prostitution, dangerous work (141 & 156 r.)


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Note:

! the difference between labour rights (capabilities) andlabour wages and conditions

! This is significant when considering the 'north-south'

disputes (e.g. lower wages do not = rights abuse)


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increase in ratification of ILO Conventions

Fundamental OtherTotal

2005 1253 6082 7335

2003 1214 5950 7177

2001 1149 5856 7005

1999 936 5675 6611

1997 856 5621 6477

1995 799 5531 6330

ILO (2005) 'International Labour Standards', http://webfusion.ilo.org/public/db/standards/


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2. 'fair trade' and the 'social clause'

'fair trade' has several meanings -

! 'fairness' in market relations (economic liberal)

! 'fair prices' in commodity markets (e.g. fair tradecoffee)

! 'fair treatment' of labour in preferential tradeagreements --> 'social clause' campaigns

see: Riedl, E. and T. Anderson (2004) 'Fair Trade: the scope of the debate',Australian Journal of Professional and Applied Ethics, Vol 8, No 1, June


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! social clause an attempt to institutionally link tradetreaties with the ILOs fundamental labour rights (sevenin 1996, now eight)

! proposed by the ICFTU / ITUC - sponsored by USA

!rejected at the WTOs Singapore meeting in 1996

! implemented/proposed in other trade treaties, e.g. -US-Jordan FTA (2000); EU-India FTA (2010?)

! World Bank's International Finance Corporation (IFC)adopts a watered down version of the social clause -'performance standards' for finance recipients - in 2006


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the interests involved:

! US/EU and 'offshore' (i.e. DC) industries

! investor access to DC industries

" US/EU lose interest in inter-national disputes withgreater investment in DC industries

! trade unions/NGOs in the wealthy countries! some NGOs in developing countries


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Context: a wide range of unilateral U.S. sanctions

! Countries: Balkans, Belarus, Burma, Ivory Coast,Cuba*, DR Congo*, Iran, Iraq, North Korea, Somalia,Sudan, Syria, Zimbabwe* (*WTO members)

! Programs: Counter Narcotics, Counter-terrorism,

Diamond Trading, Non Proliferationsource: O.F.A.C. (2010) US Treasury Sanctions Programs


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the WTO position on labour rights

! the WTOs 1996 Singapore ministerial declaration rejectsthe social clause proposal

! WTO currently wants to avoid core labour standards

! however there are several broad problems related to

trade regulation and labour


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1996 Singapore ministerial declaration on core labour standards

! We renew our commitment to the observance of internationallyrecognized core labour standards. The International LabourOrganization (ILO) is the competent body to set and deal withthese standards, and we affirm our support for its work in

promoting them. We believe that economic growth anddevelopment fostered by increased trade and further tradeliberalization contribute to the promotion of these standards. Wereject the use of labour standards for protectionist purposes, andagree that the comparative advantage of countries, particularlylow-wage developing countries, must in no way be put intoquestion. In this regard, we note that the WTO and ILO

Secretariats will continue their existing collaboration. (WTO 1996)


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Labour standards: highly controversial

Strictly speaking, this should not be mentioned here at all becausethere is no work on the subject in the WTO, and it would be wrongto assume that it is a subject that lies ahead ...

The WTO agreements do not deal with any core labour standards ...

However - broad questions currently outside the WTO

! should trade action be permitted as a means of putting pressureon countries considered to be severely violating core labour rights?

! should trade action be permitted as a means of putting pressureon countries considered to be severely violating core labour rights?

! if a country has lower standards for labour rights, do its exports

gain an unfair advantage? (WTO 2005)


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criticisms of the social clause

commercial/state criticisms:

! damages market (corporate) freedoms

! damages DCs comparative advantage

developing country civil society criticisms! packaging self-interest as solidarity

! sanctions regimes could harm DC workers


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Criticism from FOCUS on the Global South (Bullard):

! civil resistance to the WTO agenda (not reform) is critical -- thisincludes resisting 'globalisation with a human face

! social clause proposals are "deeply flawed" - they "confer legitimacyon an international system which .. squeezes and exploits workers"

! many WTO agreements restrict the powers of national governments

to improve conditions of workers - social clause ignores the "decisiverole of footloose capital" which pits worker against worker"

! the ICTFU represents elite workers in the north, who have dressed up'old protection' - "packaging self-interest as solidarity"

! solidarity links, to defend labour rights, must be built up within civilsociety, using progressive trade unions (eg. U.S. Longshoremen,Korean KCTU) and others with a history of solidarity - the National

Alliance of Peoples' Movements (India), the Landless Movement(Brazil), and the Forum of the Poor (Thailand)


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Response from the ICFTU (now ITUC):

! ICFTU is not just privileged workers - it has members in easternEurope, Latin America and Africa, and makes policy ininternational conferences - the proposal for a social clause doesnot just come from northern unions and their governments

! the social clause proposal does not depend on WTO policing, but

rather ILO arbitration after WTO referrals - civil/trade unionsolidarity elements of enforcement must also be involved - andincentives and assistance should be used in preference tosanctions

! child labour (eg.) cannot be ignored because of problems ormisplaced solidarity efforts - the ILO has long recognised thecomplexity of the problem, but efforts need to be made

International Trade Union Confederation

previously: International Confederation of Free Trade Unions


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the conditional yes position:

in 1996, 26 Filipino labour and community organisations (SALIGAN)supported a 'conditional yes' on the social clause, with tenconditions, which included:

" no sanctions which might hurt workers in poor countries, butassistance and incentives

"the ILO should have the jurisdiction to investigate, monitorcompliance and have a say in enforcement

" WTO representation must be changed, with developingcountries having a strong say in social clause adjudication

" labour groups and workers must be able to file complaints

" WTO members should have a MNC disciplinary tribunal

"

social clause should extend to the informal sector andmigrant workers


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A World Bank social clause?

Ensure the effective abolition of child labour and to

raise progressively the minimum age for work to a

level consistent with the fullest physical and mental

development of young persons .. The minimum age ..

shall not be less than the age of completion of

compulsory schooling and not less than 15 years ..

The minimum age for work likely to jeopardise the

health, safety or morals of young persons shall not beless than 18 years.

Child labourWhere national laws have provisions for the

employment of minors, the client will follow those

laws .. Children below the age of 18 years will not be

employed in dangerous work

Workers .. shall have the right to establish and join

organisations of their own choosing without previous

authorisation ... encourage and promote the regulation

of employment by means of collective agreements.

Union rightsWhere national law recognizes [union rights]

clients will comply with national law where

national law restricts workers organizations, the

client will enable alternative means for workers to

express their grievances and protect their rights

ILO fundamental conventions -excerpts

IFC performance standard' (May2006)


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3. child labour

Minimum Age Convention 1973 (No 138)" Progressive and effective abolition of child labour,

compulsory schooling to age 15, ban on hazardouswork under age 18, light work which does not

jeopardise health or schooling from age 13, and other

controlschild labour per the ILO

" work done by children under 15" except work done to aid their parents at home, where

that does not interfere with their schoolingthe extent of child labour

" over 250 million children work in this way worldwide,often illegally, and mainly driven by family poverty


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major problems of child labour?

! children work at too early an age, such as six

! working days are too long and poorly paid

! children work in hazardous conditions

! forced labour is often involved

! psychological damage eg. through child prostitution


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the Global March campaign (one of several on trade andrights) was begun in 1996 by NGOs aiming to

! raise global awareness and mobilise global opinion aboutchild labour

! urge laws to protect children and provide education! mobilise support and funding for education for all children! demand the end to the worst forms of child labour! promote positive action on child labour! ensure the rehabilitation of child labourers


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video: child labour

global march campaign (8 min)


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further to the video

! what problems are there in identifying child labour?

! how are these problems inter-related: child labour,poverty and lack of access to education?

! solutions?

!school food programs (Venezuela, Timor Leste)


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International law: how would the current WTO system dealwith a child labour dispute?

Country A produces shoes, but also imports shoes from Country B(which uses child labour) and Country C (which does not).

To avoid encouraging (or participating in) the use of child labour,Country A decides to take action - but which action wouldNOT incur WTO sanctions

?

1. Country A restricts the quantity of shoe imports fromCountry B

Likely DSP result: GATT Article XI:1 does not allow quotas and Article

I:1 on MFN does not allow discrimination between Country B andCountry C -A loses


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2. Country A imposes a punitive tariff on Country B's shoes

Likely DSP result: GATT Article I:1 requires the same treatment for'like products', and the products cannot be distinguished by theirproduction process -A loses

3. Country A imposes a punitive internal tax on Country B's

shoes

Likely DSP result: GATT Article III (national treatment) requires thatforeign products must not be treated less favourably that the'like product' of national original -A loses


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4. Country A stops government shoe purchases from Country B

Likely DSP result: GATT Article III:8a allows exceptions to nationaltreatment for Government procurement, where the product is notfor subsequent resale -A may win, but this may have little impact

5. Country A introduces mandatory labeling, indicating Country'

B's are produced by child labour

Likely DSP result: in the Dolphin-Tuna case mandatory eco-labelling didnot violate GATT, so long as it was not applied in a discriminatoryway - but this ruling has not yet been adopted/testedagainst GATTArticle III

(Drache et al 2000)


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Essay question:

Q: What impact might a social clause have on child labour?

Relevant considerations for an essay plan

! child labour, its dimensions and causes

! what is the social clause? what are the debates?

! differing concepts of 'regulation' - which interests areserved?

! arguments over the legitimacy of the institution(s)

! domestic challenges - education, income poverty, schoolfood programs, sub-contractors, displacement)

!conclusions on the question


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likely essay problems

! lack of focus / structure?

! will stories drive the essay? or will a strong conceptualessay make use of the stories?

!conceptualise the problem - regulation? tradeagreements?

! is specific evidence used to 'ground' the conceptualargument?


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summary

! labour rights have developed a strong consensus, but face anuneven system of international law

! fears of wealthy country leverage, US unilateralism! the 'social clause' is one means developed to link trade

treaties and 'fundamental' labour rights

! there is intense debate, and several perspectives on the valueof a social clause, not least over 'agency'

! child labour is a problem associated with poverty and failuresin education - integrated solutions are needed

! current WTO processes (untested) cannot really deal withchild labour - but argument for social responsibility in traderemains


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tutorial questions

! Which two groups are said (by the TWIN-SAL) to be inalliance over the social clause? What 'asymmetry' and'selectivity' does the TWIN-SAL refer to?

! The ICFTU says the ILO has made decisions against thewealthy countries - how does this help its argument for a

social clause?

! Why does TWIN-SAL: refer to trade as a poker game? Howdoes TWIN-SAL suggest the ILO could be given teeth?

! How might the governance structures of the WTO and theILO bear on the TWIN-SAL - ICFTU debate?

Documents

Labour rights and the social cause