Globalisation and Globalisation and Current Labour Current Labour

IssuesIssues

Dr. Marvic DeBarro LL.DDr. Marvic DeBarro LL.DB.A, M.A(Fin.Serv.), Adv.Trib.Eccl.MelitB.A, M.A(Fin.Serv.), Adv.Trib.Eccl.Melit

Questions to be addressedQuestions to be addressed How does globalisation occur?How does globalisation occur?

What is driving globalisation?What is driving globalisation?

Has it one primary cause or a combination of Has it one primary cause or a combination of causes?causes?

Is globalisation a uniform or an uneven process?Is globalisation a uniform or an uneven process?

What have been the major social and economic What have been the major social and economic effects of accession to the EU in our country? How effects of accession to the EU in our country? How are these different from those of globalisation?are these different from those of globalisation?

What is globalisation?What is globalisation? ““Everyone knows that something extroardinary is Everyone knows that something extroardinary is

happening to our World. We can send e-mails happening to our World. We can send e-mails across the planet in seconds, we hear that our across the planet in seconds, we hear that our jobs depend on economic decisions in far-off jobs depend on economic decisions in far-off places, we enjoy films, food and fashion from all places, we enjoy films, food and fashion from all over the world, we worry about an influx of drugs over the world, we worry about an influx of drugs and how we can save the ozone layer. These and how we can save the ozone layer. These growing global connections affect all aspects of growing global connections affect all aspects of our lives.” (our lives.” (Held, D & McGrew, A 1999) Held, D & McGrew, A 1999)

Mc Grew also states: Mc Grew also states: “Globalisation refers to the “Globalisation refers to the growing sense of interconnectedness between all growing sense of interconnectedness between all parts of the world and the associated feelings of parts of the world and the associated feelings of powerlessness and insecurity in the face of the powerlessness and insecurity in the face of the spread and scale of global change.”spread and scale of global change.”

Defining globalisation (1)Defining globalisation (1) Globalisation is characterized by the existence Globalisation is characterized by the existence

of global economic, political, cultural, of global economic, political, cultural, technological and environmental technological and environmental interconnections and flows. interconnections and flows.

3 distinct characteristics lie at the core of this 3 distinct characteristics lie at the core of this phenomenon. phenomenon.

First, globalisation involves the: First, globalisation involves the: creation ofcreation of newnew, and the , and the multiplication of existingmultiplication of existing

economic, political and social activities.economic, political and social activities.

Defining globalisation (2)Defining globalisation (2) Secondly the quality of globalisation is reflected in Secondly the quality of globalisation is reflected in

the the expansionexpansion and and stretchingstretching of existing of existing economic, political and social activities. economic, political and social activities. Examples : Financial markets stretch around the Examples : Financial markets stretch around the globe and electronic trading occurs around the globe and electronic trading occurs around the clock. Gigantic shopping malls have emerged in all clock. Gigantic shopping malls have emerged in all continents.continents.

Thirdly globalisation involves the intensification Thirdly globalisation involves the intensification and and accelerationacceleration of economic, political and social of economic, political and social exchanges. The Internet for example, relays exchanges. The Internet for example, relays distant information in seconds and satellites distant information in seconds and satellites provide consumers with pictures of remote events.provide consumers with pictures of remote events.

Effects of globalisation (1)Effects of globalisation (1) Globalisation can be seen as Globalisation can be seen as a unifying forcea unifying force, ,

bringing together various peoples, cultures, and bringing together various peoples, cultures, and thought patterns via channels of global mass thought patterns via channels of global mass media.media.

We can only begin to appreciate the effects of We can only begin to appreciate the effects of globalisation if we understand how goods and globalisation if we understand how goods and services are being transferred and how various services are being transferred and how various events happening on one side of the planet affect events happening on one side of the planet affect what is happening in another. what is happening in another.

For instance, we import our cars (Toyota) from For instance, we import our cars (Toyota) from Japan. If a problem occurs there, car imports in Japan. If a problem occurs there, car imports in our country are restrictive if not unavailable.our country are restrictive if not unavailable.

Effects of globalisation (2)Effects of globalisation (2)

Globalisation is Globalisation is an uneven processan uneven process. . People are affected differently. Some People are affected differently. Some people argue that people argue that economic economic processesprocesses lie at the core of lie at the core of globalisation. Others argue that globalisation. Others argue that political, political, cultural aspectscultural aspects are more are more significant. Still others point to significant. Still others point to environmental processesenvironmental processes as the as the essence of globalisation.essence of globalisation.

What drives globalisation?What drives globalisation? Technological innovation such as computers has led to structural Technological innovation such as computers has led to structural

changes (quicker services like booking of flights, training and changes (quicker services like booking of flights, training and courses through Internet, the use of MSN and SKYPE to courses through Internet, the use of MSN and SKYPE to communicate)communicate)

Increasingly more investment in businesses (more diversity)Increasingly more investment in businesses (more diversity)

Growth of international financial markets which move money Growth of international financial markets which move money around the world more easilyaround the world more easily

Increase in the volume of goods and services which move from Increase in the volume of goods and services which move from one country to another (purchase and sale of an item via Ebay).one country to another (purchase and sale of an item via Ebay).

Neo-liberal policies such as privatisation, labour market flexibility, Neo-liberal policies such as privatisation, labour market flexibility, liberalisation of trade.liberalisation of trade.

Health issues, environment changes, women’ s rights, Health issues, environment changes, women’ s rights, racism/migrationracism/migration

Global economy and Europe Global economy and Europe (1)(1)

In the modern era, all European economies In the modern era, all European economies have been undergoing profound change have been undergoing profound change because of globalisation. All the more so, because of globalisation. All the more so, for the countries which most recently for the countries which most recently acceded to the European Union (Cyprus, acceded to the European Union (Cyprus, Czech Republic, Estonia, Hungary, Latvia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Lithuania, Malta, Poland, Slovakia and Slovenia). Slovenia).

In Europe there has been a general trend In Europe there has been a general trend of fewer people being employed in of fewer people being employed in agriculture. People tended to leave the agriculture. People tended to leave the countryside to work in urban areas.countryside to work in urban areas.

Global economy and Europe Global economy and Europe (2)(2)

Another labour force trend is the labour market Another labour force trend is the labour market participation of women. In Europe the labour force participation of women. In Europe the labour force participation rate has been rising for many years. This gives participation rate has been rising for many years. This gives women greater economic independence and they are less women greater economic independence and they are less subservient to their families and male partners. subservient to their families and male partners.

A third trend is the shift of labour from production to A third trend is the shift of labour from production to services. Reasons may be technological changes and the services. Reasons may be technological changes and the fact that consumers demand more services.fact that consumers demand more services.

Many countries have realised that their costs of production Many countries have realised that their costs of production can be drastically reduced if they source and manufacture can be drastically reduced if they source and manufacture their goods and services in other countries where labour is their goods and services in other countries where labour is cheap. Thus, for instance, most of the clothing sold in the cheap. Thus, for instance, most of the clothing sold in the United States and Europe is actually shipped in from United States and Europe is actually shipped in from countries like China and Malaysia where it is produced. countries like China and Malaysia where it is produced.

International Labour International Labour StandardsStandards

The ILO’s Governing Body have identified eight Conventions The ILO’s Governing Body have identified eight Conventions as fundamental to the rights of human beings at work and as fundamental to the rights of human beings at work and these are sometimes referred to as the ILO core labour these are sometimes referred to as the ILO core labour standards. They are: standards. They are:

Freedom of Association and Protection of the Right to Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87) Organise Convention, 1948 (No. 87)

Right to Organise and Collective Bargaining Convention, Right to Organise and Collective Bargaining Convention, 1949 (No. 98) 1949 (No. 98)

Abolition of Forced Labour Convention, 1957 (No. 105) Abolition of Forced Labour Convention, 1957 (No. 105) Minimum Age Convention, 1973 (No. 138) Minimum Age Convention, 1973 (No. 138) Worst forms of Child Labour Convention, 1999 (No 182) Worst forms of Child Labour Convention, 1999 (No 182) Equal Remuneration Convention, 1951 (No. 100) Equal Remuneration Convention, 1951 (No. 100) Discrimination (Employment and Occupation) Convention, Discrimination (Employment and Occupation) Convention,

1958 (No. 111) 1958 (No. 111)

Violation of labour rights (1)Violation of labour rights (1) It is true that globalisation removed the economic barriers, but It is true that globalisation removed the economic barriers, but

unfortunately, it is also mitigating and even destroying labour rights. unfortunately, it is also mitigating and even destroying labour rights.

Examples are: Examples are: a)a) the increasing use by employers of definite contracts instead of the increasing use by employers of definite contracts instead of

indefinite contractsindefinite contractsb)b) large number of redundancies (last in first out rule not observed)large number of redundancies (last in first out rule not observed)c)c) transfer of business complications (who is receiving i.e. transferee transfer of business complications (who is receiving i.e. transferee

refuses to receive the affected employees with all the same terms and refuses to receive the affected employees with all the same terms and conditions)conditions)

d)d) Child labour (it is evident in most parts of Europe and Asia).Child labour (it is evident in most parts of Europe and Asia).e)e) Prevention in pay rises (rates of pay remain low)Prevention in pay rises (rates of pay remain low)f)f) Health and safety conditions (unfortunately they are not a priority for Health and safety conditions (unfortunately they are not a priority for

employers, contractors etc)employers, contractors etc)g)g) Number of jobs (more demand than opportunities, thus sometimes one Number of jobs (more demand than opportunities, thus sometimes one

is obliged to accept what comes along).is obliged to accept what comes along).h)h) Jobs transferred out of our country (like in Far East countries).Jobs transferred out of our country (like in Far East countries).

All this leads to lack of decent work.All this leads to lack of decent work.

Violation of labour rights (2)Violation of labour rights (2) As a result of such issues, the employee ends up As a result of such issues, the employee ends up

being treated badly. He is not given the being treated badly. He is not given the opportunity to show his concerns. He is afraid to opportunity to show his concerns. He is afraid to speak, to argue or even to discuss with his speak, to argue or even to discuss with his employer. employer.

The The restriction of trade union activityrestriction of trade union activity violates violates labour rights. International labour rights are labour rights. International labour rights are fundamental human rights so, more awareness in fundamental human rights so, more awareness in this sense is needed among trade unionists, this sense is needed among trade unionists, consumers, politicians and the general public. consumers, politicians and the general public.

Workers should be free to organise and bargain Workers should be free to organise and bargain collectively in order to improve working conditions. collectively in order to improve working conditions.

What should be done?What should be done? Lobbying and campaigning can be effective Lobbying and campaigning can be effective

means at getting governments to comply fully means at getting governments to comply fully with ILO Conventions, so that they can support with ILO Conventions, so that they can support workers whose collective rights are being abused workers whose collective rights are being abused or limited.or limited.

In the case of European Union members, they can In the case of European Union members, they can also lobby European Parliament and Commission.also lobby European Parliament and Commission.

Organisations such as SOLIDAR and Amnesty Organisations such as SOLIDAR and Amnesty International are campaigning to raise awareness International are campaigning to raise awareness among trade unionists, politicians and the among trade unionists, politicians and the general public.general public.

Violation of labour rights (3)Violation of labour rights (3)

Mr Brendan Barber General Secretary of Mr Brendan Barber General Secretary of the Trade Unions’ Congress when asked the Trade Unions’ Congress when asked about this phenomenon, delivered a about this phenomenon, delivered a message to all Trade Unions of the message to all Trade Unions of the World: World:

““All trade unions should try and All trade unions should try and convince their Governments to start convince their Governments to start discussing such global issues togetherdiscussing such global issues together.”.”

Violation of labour rights (4)Violation of labour rights (4) Employees need ‘security’ in a developed globalised Employees need ‘security’ in a developed globalised

world. When they say security, they mean not a job world. When they say security, they mean not a job for life but a decent life and decent work. for life but a decent life and decent work.

They need to ensure respect for core labour They need to ensure respect for core labour standards in the context of globalisation standards in the context of globalisation

It does not mean that employees say ‘no’ to It does not mean that employees say ‘no’ to globalisation but with the help of their trade unions, globalisation but with the help of their trade unions, they need to remove the bad part of globalisation they need to remove the bad part of globalisation which prejudices their interests.which prejudices their interests.

A greater action is needed by all Trade Unions of the A greater action is needed by all Trade Unions of the World to continue fighting and acquire back their World to continue fighting and acquire back their employees’ conditions lost along the way.employees’ conditions lost along the way.

Thank youThank you