Globalization, Informal Economy, Decent Work & Challenges for Trade Unions . Arun Kumar. Globalization? Participants views…. Why Globalisation?. Capital needs markets…new markets for profits; for natural resources
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Share in World Income/GDP for Trade Unions
Share in World Trade
Share in FDI
Share in Portfolio Investments
HIC (80.5), MIC (11.5), LIC (2), China & India (6)
HIC (72.9), MIC (15.6), LIC (2.7), China & India (8.7)
HIC (76.6), MIC (12.5), LIC (1.1), China & India (9.8)
HIC (76.6), MIC (12.5), LIC (1.1), China & India (9.8)Global Background (2002, in %)
Source: ILR, 2004/1-2, Vol 143, ILO, Geneva
Open markets for trade, investment & capital flows, seek FDI rather than foreign aid, no performance requirements on FDI, cut govt deficit, privatize, deregulate & reduce role of govt in economic activities, and so on
memberships range from 3% - 19%;
Union density lowest in agriculture & informal economy dominated countries & declining in most countries;
work & employment relations in informal economy (sector with growing employment) make it difficult for traditional forms of organizing.
Answer does not lie in Protectionism
ILO set up World Commission on the Social Dimension of Globalization in Feb 2002. Its report in Feb 2004 highlighted that for fair globalization –
Global markets need ‘governance’ i.e. a set of institutions & rules for equitable functioning to:
Equally importantly it called for wider & more
democratic participation of people and countries in
the making of policies that affect them.
What is Decent Work?
Work that is productive, gives fair income,
security in the workplace &
social protection for the family,
equal opportunities & treatment,
better prospects for - personal devt & social integration,
freedom to organize &
participate in decision making
…. a global social floor
TUs support the integrated approach of ILO to address the social impacts of globalization:
Because the concept of Decent Work -
ITUC represents 311 affiliated national trade union centres of 155 countries & territories representing some 168 million members.
Labour Standards are not just a question of workers rights BUT are also means to promote economic growth!
Labour standards create conditions for growth of domestic markets since they enable sharing in gains of growth & spread of purchasing powers – this makes domestic economic growth more sustainable.
Trade unions must strengthen their organizing and bargaining power.
Creating an“Enabling Environment”
for Trade UnionActivities
Building Capacity ofUnions in Organizingand CollectiveBargaining
[List the major changes in economic & labour policies that have affected (positively or negatively) the employment & Trade Unions]