Work in Global Society
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BUSM4559Week9SRMandworkersrights.pptxBUSM4558 Work in a Global Context
Week 9 - Socially Responsible Management and Workers Rights
Objectives:
Introduce the concept of international labour standards
Analyse the relationship between CSR and workers’ rights
Case study: The Cambodian Garment Industry
Case study: Reebok
Discuss the role that governments, workers and unions perform in making management more socially responsible in the treatment of its workforce.
RMIT University
Slide 2
International Labour Standards
International labour standards:
Various conventions and recommendations that the International Labour Organisation (ILO) has developed since 1919 which aim to improve wages and conditions of work and the opportunities for women and men to obtain decent, safe and productive work.
The ILO is a tripartite body consisting of government, employer and worker representative whose role has been to develop International labour standards which set out basic principles and rights at work. Labour standards can be either:
Conventions (legally binding international treaties that member states are encouraged to ratify)
Recommendations (non-binding guidelines).
RMIT University
Slide 3
ILO’s Core Labour Standards
Core Labour Standards:
Eight fundamental International Labour Organisation (ILO) rights conventions that apply to all ILO member states even if they have not ratified them.
They include:
The prohibition of all forms of forced labour (slavery, prison labour, etc.)
Elimination of the worst forms of child labour
Non-discrimination in employment: equal pay for equal work
Freedom of association: workers are able to join trade unions are independent of government and employer influence.
The right to collective bargaining: workers may negotiate with employers collectively as opposed to individually.
RMIT University
Slide 4
CSR and International Labour Standards
Advocates of CSR suggest international labour standards can be achieved without the need for international treaties or improvements to national labour laws.
The market as ‘socialiser’
Consumers as ‘socialisers’
Corporations as ‘socially responsible’
Can corporations be ‘socialised’ to improve global labour standards?
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Labour Standards and the Global Garment Industry
The textile, garment and footwear industry is often used to illustrate the worst forms of workers’ rights abuses by transnational corporations (TNCs).
Use of child labour
Extremely poor wages
Long-hours
Widespread use of unpaid overtime
Unsafe working conditions
RMIT University
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Labour Standards and the Global Garment Industry
Corporations associated with the textile, garment and footwear Industry have become a target for labour activists around the globe (e.g. Nike, Old Navy, the Gap, Adidas, Reebok, etc.).
Anti-Sweatshop Campaigns
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A Strategy for Improving Labour Standards under Globalisation
One of the ways civil society organisations (e.g. students, unions, NGOs, labour lawyers, etc.) have sought to make corporations more socially responsible is through linking labour standards to trade agreements (e.g. social clauses).
RMIT University
Slide 8
The Case of Cambodia’s ‘No Sweat Garment Industry’
Historical Background:
Cambodia is one of the poorest nations in the world.
From 1970 to early 1990, the country suffered from civil war, genocide and foreign occupation.
Between 1975-1979 over two million people were killed by the Khmer Rouge.
In the late 1990s, steps were taken to begin rebuilding the country.
RMIT University
Slide 9
Globalisation and the Emergence of the Cambodian Garment Industry
The development of an export garment industry was seen as an important avenue to rebuilding the economy.
The US Government was keen to assist this development through a bilateral trade agreement with Cambodia.
US unions feared further job losses in the struggling US textile industry and a further degrading of global labour standards.
US unions successful convinced the US’s Clinton-Administration to include improvements in Cambodian labour standards to access to the US market
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US-Cambodia Trade Agreement
Tied increased garment quotas to improvements in wages and working conditions.
Monitoring of factories was carried out by the International Labour Organisation (ILO).
The rise of an active Cambodian union movement emerged to improve wages and working conditions.
RMIT University
Slide 11
The Case of Cambodia’s ‘No Sweat Garment Industry’
Today,
Cambodia’s industry has the reputation for being a ‘no sweat’ industry (no incidence of child labour or forced labour, ‘fair’ wages and working conditions).
Some 270,000 works (over 90% of whom are women) are employed in the country’s 200+ clothing factories.
Cambodia’s garment factories are nearly 100% foreign owned (China, Taiwan, Hong Kong, South Korea).
RMIT University
Slide 12
The Case of Cambodia’s ‘No Sweat Garment Industry’
The garment industry is Cambodia’s most important sector.
Accounts for over 80% of the country’s exports and employs 65% of its industrial labour force.
The value of these exports has risen from $26 million in 1995 to $1.9 billion in 2004.
Over 2/3 of the exports go to the US with Gap, Old Navy, Ralph Laurent and Calvin Klein being some of the largest buyers.
In 2005, Cambodian garment workers sent $50 million to their families in rural areas (i.e. remittances).
RMIT University
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The WTO and Future of Cambodia’s Garment Industry
The End of Preferential Trading
In January 2005, the global garment trade came under the world trade system of the World Trade Organisation (WTO).
Preferential trading arrangements are no longer permissible.
Cambodia’s industry is having to compete with much larger and more competitive industries (e.g. China, Vietnam, Bangladesh, etc.).
Competitive challenges:
Low productivity and low skills of workers
Poor infrastructure
Difficulties in sourcing raw materials
High level of corruption
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Slide 14
The WTO and Future Policy Options for Cambodia’s Garment Industry
Fear: ‘race to the bottom’ on wages, conditions and labour standards as Cambodia’s garment industry competed with other low cost countries.
Policy Responses:
Niche marketing in ‘No Sweat Garments’ and the embracing of the CSR movement.
ILO’s Better Factory Project (Tripartite/Multi-donor):
Aims to ‘inform overseas buyers’ purchasing decisions’ through continued monitoring of the industry.
RMIT University
Slide 15
The WTO and Future Policy Options for Cambodia’s Garment Industry
Continuing Concerns:
International buyers have renewed influence and are growing impatient
Foreign investors may relocate production (some factories have closed post-2005).
Workers are struggling to hold onto wages and working conditions.
The government and employers are resisting call for a significant increase in the minimum wage.
Cambodia’s economy continues to be heavily dependent on the garment industry. (see reading by Natsuda, Goto. and Thoburn 2010)
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Slide 17
Voluntary Codes of Conduct and Workers Rights
Voluntary codes of conduct:
Non-prescribed voluntary codes of conduct which set out specific standards of conduct for a company or industry on issues related to how to deal with customers, employees, the environment, etc. The codes only apply to those firms that sign up to them.
They are guidelines that aim to encourage companies and industries to conduct themselves in ways that benefit the firms, employees and the broader community.
Many companies prefer voluntary codes of conduct to legal regulations.
RMIT University
Slide 18
The UN’s Global Compact
The world's largest voluntary corporate sustainability initiative (9,000+ companies are signatories).
“A call to companies to align strategies and operations with universal principles on human rights, labour, environment and anti-corruption, and take actions that advance societal goals” (UN Global Compact).
RMIT University
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Source: UN Global Compact
Case: Reebok’s Chinese Supplier Factories
Reebok is a leading brand in the global athletic footwear industry.
Reebok is a signatory to the UN’s Global Compact.
“Since the late 1980s, Reebok has employed a strategic CSR approach to portray itself as a conscientious promoter of human and labour rights. Seeking to improve its human rights–focused CSR reputation, the company established the Reebok Human Rights Foundation, sponsored the ‘Human Rights Now!’ concert tour, set up the Reebok Human Rights Awards, adopted codes of conduct addressing labour standard issues (the ‘Reebok Human Rights Production Standards’) and went to great lengths to achieve an industrial leadership position in the current CSR movement against sweatshops” (Yu, 2015: 175).
RMIT University
Slide 21
Case: Reebok’s Chinese Supplier Factories
Yu (2015) examines the effectiveness of Reebok’s Human Rights Production Standards in improving workers rights in their Chinese supplier factories.
Key findings:
Major sweatshop labour abuses were curbed (e.g. child labour, dangerous working conditions, etc.) but production workers were required to work harder and faster while receiving less pay.
As a consequence of Reebok’s Human Rights Production Standards an employee-elected trade union was established. However, the unions operated under China’s labour laws which prohibit collective bargaining.
“…the employee-elected union achieved little in the way of providing workers with a greater voice in decision making and did not engage in collective bargaining activities to demand better pay and working conditions” Yu, 2015: 177).
RMIT University
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Key concepts and essay questions:
Concepts:
International Labour Standards and Core Labour Standards
Voluntary Codes of Conduct
The Global Compact
Questions:
How would you describe the debates about the relationship between CSR and workers rights?
“Behind a facade of social responsibility, profits always trumped social concerns. CSR was only a fig leaf hiding abusive treatment of workers” (Compa, 2008: 1). Drawing upon evidence provided in the readings, discuss the strengths and limitations of this statement.
What has been the role of the ILO in improving international labour standards and how effective has the ILO been in accomplishing these aims?
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References (key readings in bold)
Bellace, J. (2014) ’Hoisted on their own petard? Business and human rights’ Journal of Industrial Relations 56 (3): 442-457.
Compa, L. (2008) ‘Corporate Social Responsibility and Workers’ Rights’ Comparative Labor Law and Policy Journal 30 (1): 1-10.
De Neve, G. (2014) ‘Fordism, flexible specialization and CSR: How Indian garment workers critique neoliberal labour regimes’ Ethnography 15 (2): 184-207.
Harpur, P. and Peetz, D. (2011) ‘Is Corporate Social Responsibility In Labour Standards An Oxymoron?’ Conference paper for the Association of Industrial Relations Academics of Australia and New Zealand Annual Conference
Natsuda, K., Goto, K. and Thoburn, J. (2010) ‘Challenges to the Cambodian garment industry in the global garment value chain’ European Journal of Development Research 22: 469-493.
Yu, X. (2015) ‘Upholding labour standards through corporate social responsibility policies in China’ Global Social Policy, 15 (2): 167-187.
RMIT University
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