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Held on March 17th, at PILER's office

We went through the reports from other countries. The participants felt that the globalization is coming to all countries with a  centralized agenda even if it may differ in its pace which varies because of the local conditions everywhere. However situation in Australia is different.

1. Responses to the questions

India

1. Some of the items are;

• Exports:   Cotton, yarn, textiles, carpets, fisheries, sports and surgical goods, vegetables and fruits
• Imports:    Petroleum, chemicals, steel, cement, life saving drugs, tea, wheat, cosmetics and raw material for plastic etc. 

2. Recently the tariff has been reduced by 20 % on imports. The restriction on imports has been liberalized. There are also incentives in exports like freight concession upped 25%, income tax rebates on the 55% of profits, exemptions from the Excise duties in certain sectors, no indirect (like federal) taxes etc. also there
were special packages of incentives announced for the Textile and nontextile sectors.

3. The major public sector companies are: Pakistan Railways, Pakistan International Airlines, Pak Telecom, Water And Power Development
Authority (WAPDA), Sui Southern Gas company, Pakistan Steel, Two out of five major Banks have been privatized the rest are still in the
Public Sector.

4. Workers feel very strongly about the IMF/WB as institutions taking care of the interests of the world capital and big powerful economies
of Europe, America and Japan.

5. Strategies have varied situation to situation and there is a process of evolution within these strategies as the trade unions are coming to a better understanding of the globalization itself. For instance when the privatisation of public sector companies started in 1992 an All Paistan State Enterprises Workers Action Committee was formed and they put up a resistance through media campaign, protests and marches eventually forcing govt. to get a better deal for the workers. There were also larger forums, united fronts formed in the private sector but these are still at a growing stage. However a consensus is emerging among the trade unionists to join larger federations to be able to fight for the rights of the workers in a changing world economy which is threatening their existence.

Australia

For a long time Nestle has been in the market for coffee, with only one competitor, again a multinational Maxwell. In the recent years they have expanded to foods, cereals, milk etc. In milk they have two local competitors, Milk Pak and Haleeb.

1. How does the govt. try and attract foreign investment by the MNCs?

Initially the government spent a lot of money and resources to promote foreign investment by advertising in the international media. They promised to offer a conducive and secure environment for the investor. They offered flexibility in labour laws, less procedures, fewer restrictions (which was called one window-shopping). Especially with the previous governments a lot of MOUs (Memorandum Of Understanding) were signed. Many MNCs advanced to Pakistan especially in the power generation. The public sector units were sold to MNCs at very attractive terms. It was decided that Water & Power development
authority would buy electricity from these companies on rates double than that of in India & Bangladesh from these private companies.
After the government changed the new government ordered an inquiry because a lot of kickbacks and corruption was involved. The US, Japan
and the British from where these companies originate protested and apparently it's all quite now. But the government continues to
implement the SAP.

2. What are the implications of these policies for the workers and trade union?

In the public sector, the workers have been laid off in a big way. There were forced early retirements, retrenchments and a huge increase in temporary/contractual labour. In the private sector as well the sub-contracting of parts of production and contractual labour is on the rise. Workers feel much more insecure than ever
before. The labour movement is divided where the permanent employees despise the temporary workers and feel threatened. Because of this the unions
have become weaker and less effective.

3. What are the main features of the SAP?

1. Liberalizing trade or moving towards the free trade

   - Removal of quantitative restrictions
   - Reduction of tariff

   Non-tariff barriers to be converted into tariffs and various exemptions and questions on custom duties to be removed

2. Introduction of Direct foreign Investments (DFIs) & deregulation
3. Privatisation of health, education, and other public sectors is under process.
4. Subsidies on the fertilizer, seeds and some food products have
   already been withdrawn.
5. We have already mentioned the incentives for export earlier in
   response to the query from India
6. Reform of exchange rate regime i.e. devaluation of currency

4. What should be the strategy of the TUs when negotiating Structural Adjustment policies with the IMF/WB and or national govt.?

The TUs should form larger alliances and join major federations to press for safety nets for the workers. The more we are united nationally, regionally and internationally, the more negotiating power we will have with the national governments as well as the IMF, WB, and WTO. Such a forum can press for issues such as:

• No temporary, contractual or subcontracted labour?
• Rights of the workers are secured.
• Cost cutting not on the basis of worker's wages
• Basic social securities are the right of every citizen and should be provided by the governments

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