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

www.global-unions.orgdayofaction@icftu.org

…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)