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How Should Unions Respond to Globalisation?

How Should Unions Respond to Globalisation?. ICTU Economic Conference DUBLIN 23 April 2008 John Evans Trade Union Advisory Committee to the OECD. Summary. Trade Unions and OECD Economic background – Rising Inequality Economic & Financial crisis 2008

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How Should Unions Respond to Globalisation?

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  1. How Should Unions Respond to Globalisation? ICTU Economic Conference DUBLIN 23 April 2008 John Evans Trade Union Advisory Committee to the OECD

  2. Summary • Trade Unions and OECD • Economic background – Rising Inequality • Economic & Financial crisis 2008 • Trade Union medium term priorities on globalisation • An example: Trade Union cases raised under OECD Guidelines for MNE • Other priorities for TUAC

  3. Trade Unions and OECD • TUAC as part of Global Unions • Why seek to influence the OECD? • Ideological Centre of gravity on national policy-Jobs Strategy • In theory across government approaches • « Hub » of globalisation • Expansion of membership

  4. Background • Context of Globalisation 2007 • What record on “decent work” • Falling Unemployment across OECD Countries • But Declining share of wages in national income • Rising Inequality and unequal reduction in poverty • Impact of “Financialisation”

  5. Rising inequality • Declining share of wages in national Y

  6. Rising inequality

  7. Economic & Financial Crisis 07-08 • US Sub-prime mortgage debt • Contamination through securitisation • International chain reaction • Bank collapses • Fall of the dollar • Sovereign Wealth Funds • Food price explosion

  8. Economic Policy Priorities • Put a floor in credit and housing markets • Need for fiscal and monetary stimulus outside the US (unions agree with IMF!) • Reregulate financial markets in the medium term • « This must not happen again »

  9. Medium Term Trade Union Priorities on globalisation • Guarantees on Core Labour Standards in all International Institutions • Collective Bargaining as “global public good” • Negotiating space in international industrial relations • Global Framework Agreements • Using market power • Pension funds: responsible investment • Using regional regulation – the EU • Rules for Multinational Enterprises

  10. OECD MNE Guidelines • Drawn up in 1976 revised in 2000 • Government reactions to « accountability crises » • Major change in implementation mechanisms- role of National Contact Points agreed in 2000 • Cases and sanctions

  11. OECD Guidelines Cases • 90 cases raised by TU since 2001:

  12. OECD Guidelines Cases • Types of leading breaches: • Anti-union behaviour • No consultation on restructuring • No enforcement of contract • Threat to relocate offshore • No information on financial performance of firm • Problems with occupational health & safety • Various

  13. OECD Guidelines Cases • Types of leading breaches / Region: • Anti-union behaviour: most frequent in Asia • Non-consultation if restructuring: most frequent in Europe

  14. OECD Guidelines Cases • Of all closed cases (53): • In half of the cases (28) we have at least some positive outcome • In 45%: Intermediation of NCP was very helpful • In 45%: Pressure on the company (via different ways) without help of the NCP • In 10%: court outcome in favour of TU which leaded to some positive outcome • In 61% of the closed cases, there is a public statement made by the NCP

  15. OECD Guidelines Cases • Implementation: influenced by the structure: • Only governmental departments • 27 NCP • Bipartite • 1 NCP: Romania • What about the objectivity? • Tripartite • 9 NCP: Belgium, Denmark, Estonia, France, Latvia, Lithuania, Luxemburg, Norway, Sweden • Quadripartite: • 2 NCP: Chile, Finland

  16. OECD Guidelines Cases • NCPs that received ≥ 3 TU-cases

  17. OECD Guidelines Cases • Conclusions: OECD guidelines for MNE • “Far from perfect” but still useful • if more political will more effective tool • Within the OECD • Need for more NCP capacity building • Peer review process • Link it to export credits guarantees • More regional focus • G8 declaration • Coherence between instruments • OECD/ILO Round Table June 2008 • More Information at www.tuac.org

  18. Other TUAC priorities • OECD Jobs strategy versus going for growth • Mainstreaming distribution & equity issues • OECD Enlargement and Enhanced Engagement • Combatting climate change – green jobs and greening the workplace • Education – quality public services

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