The unions and globalisation Course 552.51.PED - Turin, 16-19 March 2006

1. Forms of globalisation and the main players involved The unions and globalisationCourse 552.51.PED - Turin, 16-19 March 2006 Ben Chibani Mohsen - ICFTU

2. Forms of globalisation Globalisation is anti-social: the market economy does not work. • 3 billion people, two thirds of whom are women, have less than $2 a day • No North-South polarisation, • An economic war between all countries, in particular those in the South

3. Tragedies are less visible, monotonously predictable and readily preventable. • Every hour more than 1,200 children die away from the glare of media attention. This is equivalent to three tsunamis (over 300,000 dead) a month • In the midst of an increasingly prosperous economy, 10.7 million children every year do not live to see their fifth birthday • More than 1 billion people survive in abject poverty on less than $1 a day • The HIV/AIDS pandemic claimed 3 million lives and left another 5 million people infected. • Source: World human development report, September 2005

4. The world's richest 500 individuals have a combined income greater than that of the poorest 416 million. Today, someone living in Zambia has less chance of reaching the age of 30 than someone born in England in 1840. The risk of mortality linked to pregnancy range from 1 in 18 in Nigeria to 1 in 8,700 in Canada. "Hunger is the worst of all weapons of mass destruction, claiming millions of victims every year. Fighting hunger and poverty and promoting development is the truly sustainable way to achieve world peace. There will be no peace without development and no development without social justice." President Lula da Silva

5. The 189 United Nations Member States have pledged to reach the following goals by 2015: Halve extreme poverty and hunger Achieve universal primary education Promote gender equality and empower women Reduce child mortality Improve maternal health Combat HIV/AIDS, malaria and other diseases Ensure environmental sustainability Develop a global partnership for development Millennium Development Goals:

6. Globalisation is anti-unionist: downward pressure on labour standards. Violations of trade union rights • Redundancies • Independent union action • = severe repression • Application of laws • = shortfalls

7. In Asia, redundancy is the most common form of repression. The redundancies mainly take place in India (350,000), but also in South Korea (774), Sri Lanka (700),Turkey and Thailand. In China, the slightest attempts to conduct independent union action are still met with the most severe repression. Export Processing Zones (EPZ) (Bangladesh, Fiji, India, Korea, Pakistan, the Philippines and Sri Lanka).

8. In Europe last year,ten countries in the region finalised preparations for their accession to the European Union (EU) In practice, there are sometimes shortfalls in the application of these laws (Czech Republic, Belarus, Bulgaria, Moldova, Romania)

9. In the Arab countries, the violations of union rights continue to occur in the public and private sectors. Economic (privatisations) or political (fight against fundamentalists or state of siege as a result of war) reasons are often used to justify the violation of workers' fundamental rights. Free and democratic unions are still not the norm in the Middle Eastern and Gulf countries.

10. Therefore, globalisation is not a North-South polarisation but is increasingly an economic war between all countries, in particular those in the South. Due to the termination of the quota system, Bangladesh will suffer a pure loss of one million jobs in the textiles sector. The same also applies to Honduras, Sri Lanka and Mexico. Mexico has recently experienced a pure loss of over 200,000 jobs (electronics, assembly) in the space of three years. The majority were relocated to China.

11. The integration of goods, capital and labour markets. A degree of interdependency Rapid and mass movements of capital. What is globalisation?

12. Cultural, Social, Economic, Political, Environmental. Dimensions of globalisation: Environmental problems currently require a global approach.  The economic aspect was a key element of this new world order: IMF and the World Bank. The third pillar: the World Trade Organisation, WTO.

13. Foreign direct investment and an important role for multinationals. The internationalisation of financial markets. The international financial institutions, IMF, World Bank and WTO Free trade groupings Players involved in globalisation:

14. Strategies of players involved in globalisation: 1. First player: Europe • How can Europe function effectively with 25 Member States and tackle its major challenges in a context of globalisation? • How can we consolidate the European social model? • The European social model also concerns universal access to employment and the active fight against unemployment.

15. 2. – The impunity of multinationals: players involved in globalisation. • The 500 largest companies in the world have a combined turnover of $14,900 billion which is more than the $14,100 billion generated during the new technology boom in 2000. Their combined profit totals over $731,2 billion. • Example:World Com, the American long-distance telephone operator, and the fraud scandal at Enron (end of 2001). The workers are the first victims of bankruptcy in the private sector. The importance of increasing the responsibility of multinationals and providing them with a code of conduct based on the respect for the main ILO international conventions.

16. 3. –Third player involved in globalisation: • - The policies of the international financial institutions (IFIs) and the failure of 'managed' globalisation: need for a change of model • The implementation of the Washington Consensus, resulted in structural adjustment policiesThe polices of the IFIs aimed to promote privatisation and deregulation in the interests of the market and of opening up to foreign investment. • b. – Pension system reforms: the World Bank has to adopt a new new approach • Failure of the privatisation of the social security systems in Latin America • c. – The same model imposed in Central and Eastern Europe • d. – The IMF also advocates the reduction of public social security • The IMF states that "over the last 30 years, growth in European GDP per inhabitant has been maintained by a rapid increase in productivity, but undermined by a decline in the use of labour". On 5 August2004, the ETUC condemned, the IMF's opportunist appeal for a longer working week, stating that the standard 40-hour week is not what Europe needs. Instead what it needs are more intelligent working methods.

17. 4. -Fourth player involved in globalisation: • The WTO: crisis of global governance • After the Ministerial Conferences in Singapore (December 1996), Geneva, Switzerland (1998), Seattle, United-States (December 1999) and Doha, Qatar (November 2001), the fifth WTO ministerial conference in Cancún (September 2003) ended in failure due to the WTO's inability to face up to the needs of the developing countries and the social problems of trade.

18. Rethinking the WTO's structure • In principle, the WTO is a 'highly democratic institution' and the key rule that needs to be respected is 'one country, one vote' • Each member has the right to veto any decision • In theory: Benin has as many votes as the United States and Bangladesh has as many as the European Union • In practice, this principle of 'one country, one vote' conceals the unequal power relations that influence the results of the negotiations within the WTO • The world economic super powers (United States, Europe) have shaped the multilateral regulations based on their national policies (e.g. the Agreement on Agriculture defends the subsidies proposed by the EU and the US).

19. The report by the World Commission on the Social Dimension of Globalisation - A Fair Globalisation: Creating Opportunities for All • A democratic and effective State, • Sustainable development, • Productive and equitable markets • Fair rules of the global economy • Globalisation with solidarity • Deeper partnerships between public and private players, labour, civil society, multilateral institutions. • A more efficient United Nations

20. Towards fair globalisation • The need for global macroeconomic policies for full employment • The need for political coherence: important precondition for change • The need for a coordinating and control body • The need for political action • Nine months after publication, the ILO report had not yet led to in political action • The need for strong civil society

21. Conclusions: • The respect for democratic principles, democracy and the state under the rule of law are extremely important factors governing social stability, which fosters investment and contributes to the success of development models. • To stem speculative movements: the Tobin Law • Boost exports by creating regional markets.  Regional integration processes are very important. • Do more to promote technology transfer with greater accessibility for the developing countries. • Strengthen the ILO and establish closer cooperation with other international organisations, such as the WTO. • The very concept of 'nation state' is therefore seriously called into question. Workers' fundamental rights must be protected. • The responsibility is global, however action also needs to be taken at local level. Local and national trade union organisations must play their role fully.