Challenges for Trade Unions [Compatibility Mode]

8/2/2019 Challenges for Trade Unions [Compatibility Mode]

1/38

Globalization, Burma, Decent Work, &Challenges for Trade Unions

Federation of Trade Unions-Burma

Arum Kumar

ACTRAV

Programmer for Workers Activities international Training Center of

the ILO Turn, Italy


2/38

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ACTRAV

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Arum Kumar


3/38

Globalization?

(Picture)


Participants views. . . . .

Picture Source: Kate Raworth, Oxfam presentation on Trade & Human Development,


4/38

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Picture Source: Kate Raworth, Oxfam presentation on Trade & Human Development,


5/38

Many challenges facing the world & workers today. . .

Food crisis, fuel crisis, water, health care, unemployment, poverty, lack of rights at

work, etc

Since 2008, global economic crisis caused by greed & speculation, de-regulation ofeconomies & of labour markets


o a warm ng c ma e c anges a now rea en e very ex s ence o many

countries & millions of people over 20m people displaced by climate disasters in 2008

alone!

How are these challenges being addressed?


6/38

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7/38

Unequal World

Richest 20% pocket 86% of the worlds GDP; poorest 20% more 1%

1.3 billion people live on less than one dollar a day;

OECD countries have more than 80% of the world incomes, receive more than 3/4th of

the foreign investment and almost 3/4th of the world trade is between them.


Low income countries, including Burma have less than 2%

More competition between Unequals;

[unequal capabilities lead to unequal outcomes]


8/38

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9/38

Current answer to meet the problems

Economic liberalization, Globalization & in general policy belief that markets knowthe best

One size fits all kind of policies:

One markets, free trade, de regulation, completion, free capital flows, FDI ratherthan foreign aid, no performance requirements on FDI, employment flexibility, cut govt

deficit, raise taxes &/ or raise interest rates, privatize, etc


Deregulate labour markets flexible labour, pre carious employment

Capital mobility Yes! But no labour mobility


10/38

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11/38

Why is world interested in Burma?



12/38

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13/38

Globalization & Burma

Over 400 companies from about 36 countries have invested in Burma Power, Oil &

Gas, Manufacturing, Mining & Tourism are the main sectors of investment.

Major investing countries: China, Singapore, UK, Thailand, Malaysia, Japan, France,

US & India.


Foreign investment since 2000: valued at $13.9 billion (Myanmar InvestmentCommission MIC).

Since 2001, ADB provided US $887 million in projects ( in Ports, Roads & other

infrastructure).


14/38

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15/38

Globalization & Burma

Globalization has so far bad news for average Burmese

Privatization & foreign investment difficulties for most workers, for

the environment; lack of rights & forced labour pressure for migration;

Low & declining public investment in education, health care & skills development (

& the lack of basic infrastructure) means that average Burmese population will not


benefit for economic opportunities

Can Globalization put pressure for democratic reforms?


16/38

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17/38

Impact of Global Economic Crisis

Increase in global unemployment could go up to 241 million the highest level

ever on record.

Working poor (earning below US $2per person, per day) can go up to 1.4 billion

(45% of the worlds employed)


Workers pension funds globally pension funds lost over 5 trillion $ between 2007

& 2008) in some countries where pensions were privatized (ex in Latin America),

they lost more


18/38

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19/38

Impact on Asia

Outflow of capital from Asia ( >100 billion $$$ in 2008) what was its impact on

Asian economies, stock markets & currencies?

Impact of recession in western markets on Asian production, economic growth,Remittances, foreign aid, govt revenues


Impact of credit squeeze on domestic investments, industry & jobs

Implications for industrial relations (wage cuts, wage freeze, rise in casual unprotected

work, higher work loads, forced unpaid leave, default on social security contributions,

violations of FoA)


20/38

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21/38

Impact of Burma

Burmese economy impacted by slow down in Asia

(Over 70% of Burmese exports go to the Asian region & about 90% of total import

comes from this region Burma China trade accounts for 72% of the total. Thailand

comes next with 16%)

Revenue from natural gas declining as prices of crude oil have fallen under US

$50 a barrel in the world market, Su l of raw ems (rubies, sa hire) reduced


Impact on Burmese workers inside Burma? Migrant workers? Impact on women?

Childrens education? Minimum wages? Money sent home?

Response of the Burmese Govt?


22/38

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23/38

So, what should be done?



24/38

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25/38

Union view

End deregulation of employment market & ensure respect for fundamental rights of

workers (FOA & CB rights)

Regulate financial markets so that these serve the objectives of real economy

Ensure basic social security for all (since this minimizes impact of economic crisis

& assists in improving effectiveness of recovery packages)


Policies to eliminate tax havens, tax evasion, transfer pricing & currency transaction

tax to dampen speculation.

What else? ? ?


26/38

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27/38

ILO Approach

Tripartite dialogue with social partners to develop policy responses at national

level & international level to address the economic & social crisis.

Pre-condition for effective social dialogue: ? ? ?


Global Jobs Pact promote economic recovery thru opportunities for decent work


28/38

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29/38

ILOs Global Jobs Pact

Framework for national & international policies aimed at:

A global economic recovery with job creation and the provision of social protection to

working people and their families at its core;

Stronger regulatory framework for the financial sector;

Efficient and well regulated trade and market;


Policy options identified include:

Employment incentive public investment;

Special employment programmers

Support for enterprises

Broadening social protection and minimum wages


30/38

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31/38

At least one lesson for Asia

Over dependence on exports & western markets

Almost 60% of final demand for Asian goods comes from developed countries. Exports

account for about 47% of developing Asias output


expansion of domestic markets this implies Decent Work & respect for fundamentallabour standards.


32/38

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33/38

Negotiating Change. . .

What is the floor that should underpin every economy?

Core labour standards of the ILO

Freedom of Association the right to form unions, the rights to recognition

Right to Collective Bargaining


oc a rotect on as c soc a secur ty

Access to skills training

Minimum living wages

No discrimination, No child labour


34/38

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35/38

Why Labour Standards?

Labour Standards are not just a question of workers rights BUT are also means to

promote sustainable economic growth

Labour Standards create conditions for growth of domestic markets in so for as they

enable sharing in gains of growth & spread of purchasing powers and thereby

ameliorate poverty conditions this makes domestic economic growth more


.

Labour standards promote Occupational Safety, Health and Environment protection

Globle Economic Crisis & Climate crisis is an opportunity to re-think development

model but will this happen?


36/38

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37/38

Group Discussion/Work

What major changes in economic, political & labour policies has Burmese Govt made

in recent years?

How has foreign investment & international campaign against Burmese junta affected

workers in your country?


What has been the response of the workers and trade unions in Burma?

What role can the International Trade Union Movement play in assisting national

unions to meet the challenges in Burma?


38/38

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Documents

Challenges for Trade Unions [Compatibility Mode]