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SESSION FIVE: RESPONDING TO GLOBALISATION

Aims:

• to consider how workers and trade unions are organising in TNCs
• to discuss strategies for building links and solidarity between workers in TNCs in Asia

1. The effects of globalisation on workers and trade unions (45 minutes)

Read the reports sent by study circles in other countries. Discuss what is similar and what is different to how workers in your country have been affected by globalisation. What conclusions can you draw about globalisation, given the common problems which workers face?

Similarities

1. Weakening of trade unions due to lay-off or threat thereof.
2. Government threatens workers with reduction of minimum wage
3. Decrease in membership, increase in the number of casuals and contractuals
4. Dismissal of workers and job insecurity
5. Forced leaves, sometimes leading to resignation
6. Special early retirement programs being forced on the workers. There is a veiled threat: if they do not avail, their jobs will be taken away anyway but without or less separation pay.
7. Unequal distribution of wealth
8. Fast promotions for managers and supervisors
9. Salaries subjected to too many deductions

1. Unions are becoming bolder in Philippines, and are exerting more effort in educating themselves. However, some are of the opinion that others are becoming more docile - content with fighting for job security, instead of asserting their rights to collective bargaining. Also, because of the financial crisis, some unions are too focused on the economic rights of their workers, and often ignore their duty to advance societal change.
2. A lot of unions are being more active, although some opine (as stated in our previous reports), that members are becoming less inclined to join activities since they are too terrified to lose their jobs, and/or preoccupied with bargaining with management in order to protect their jobs. Some also find it hard to appreciate the relevance of unions.

Conclusion:

Because of globalization, the employers, including the TNCs, can easily dangle the threat of job loss. They often cite the experience in other countries and the other companies and industries in the Philippines.

Workers have lost faith in the government, and those who are in the know have considered the government nothing but puppets of the IMF/WB and the WTO.

Globalization results in violation of labor rights and the destruction of the environment. The trade union movement is effectively curtailed by TNCs, since they can easily transfer from one country to another. The SAPs and the other conditionalities of the WB/IMF result in "labor flexibility" and reduction in the budget for basic services.

2. Organising in TNCs

Discuss the following questions:

How can workers in the same TNC build stronger links and solidarity in Asia, and with workers in other regions?

• The unions can launch solidarity strikes in order to support the workers in other countries, and force the management to give in to their legitimate demands.
• There should be a council of leaders of workers and/or alliance of unions in the same TNC working in different countries. We should also join and become active in international trade secretariats like ITF, ITG, ICEM, IUF, IFBWW

 What other strategies can trade unions adopt to protect workers’ rights in TNCs?

• There should be a social clause in trade agreements, but instead of sanctions, trade preferences should be given to those which comply with basic labor rights. Also, the same should be limited to the five core labor rights, and should never include labor standards such as wages, benefits, health and safety standards. However, some were of the opinion that even standards should be included.
• There were also those who are afraid that the social clause may be used for trade protectionism.
• Still other object even to the discussion social clauses since it causes divisions among those with the same goal of promoting social justice - union, NGO’s and other people’s organization.
• Furthermore, the nation-states should be empowered in order to enforce and implement labour laws, instead of relying on international instruments such as the social clauses. At the same time, we should think of other international instruments which are not related to trade.
• However, all agree that more study circles should be conducted.
• We should also improve the publication of issues through the internet.

Draw up a list of guidelines/proposals for your trade unions on how to strengthen organisation in TNCs.

• We should study seriously the possibility of a standard CBA in a particular TNC, and/or a standard CBA in a group of companies.
• Some again broached the idea of social clauses (with the same nuances, qualifications, objections, etc. mentioned above), and also the ITS.
• We should also force the management of subsidiaries to allow the formation of unions by the effective use of corporate codes of conduct that provides that the company will buy only from those suppliers which respect the right to self-organization.

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