Globalisation and its Impacts: Labour

Introduction
Initiatives by International Organisations
Summary

Introduction

According to Cingno, Rosoti, and Guarcello (2002), globalization is the process by which a growing proportion of global production is traded on an international scale. It also involves the increasing integration of the productive systems of various nations. For developing and transitioning economies, such integration with global markets holds out the prospect of prosperity. Productivity should rise as a result of market forces brought on by globalization, and perhaps economic growth as well (Rama, 2003). By utilizing their shared norms for liberalization and deregulation, the globalization process helps to integrate national economies while also bringing about significant changes in the market (products and financial) (Rowley and Bensen, 2000). However, as a result of this integration, labor is directly impacted by liberalization in the global market, whether it be skilled, unskilled, or semiskilled. In the years following World War II, advanced industrial societies developed a new form of regulation and the idea of a welfare state as a result of the neo-capitalist model and the growth of globalization. Neo-colonialism, which is based on economic dominance, replaced colonial rule, which was based on direct political dominance, during this time (Munck, 2002). Neocolonialism and the globalization of commerce are bringing numerous technologies and massive industrial projects to less developed countries (host countries). Imports of finished goods, the outsourcing of the production of intermediates, and immigration all contribute to this expanding pool's increase in global labor. Through increased productivity and output, this ongoing globalization of labor has helped to raise labor compensation in advanced economies, while also benefiting emerging market nations with higher wages. Globalization is one of many factors that have worked to lower the share of income going to labor in advanced economies, but rapid technological change has had a bigger impact, especially on workers in unskilled sectors.

Leading this global wave of technological change are multinational corporations, which build and run new facilities and installations in host nations and collaborate in a variety of business ventures with local firms and organizations. Even host nations support MNC activities because of the jobs and other economic and societal advantages they bring. But MNCs, which are typically profit-driven and free-wheeling, have frequently been excessively exploitative and harmful, endangering the health, safety, and natural resources as well as, most importantly, the workers who are employed there. Because they lack the safeguards, knowledge, and public pressure that protect workers in developed countries from harm, the less developed countries hosting these activities are vulnerable to the exploitation of their human resources. According to the International Labor Organization (Takala, 2005), the industrialization of developing countries is frequently accompanied by a rapid increase in the number of fatal and non-fatal accident rates because of the growth of new factories, the development of infrastructure, and the construction of new buildings and roads, all of which may employ untrained (and migrant) workers in new environments who are exposed to risks they have never before encountered. 9).

In addition to harmful accidents, the ILO and various observers have identified other types of harms brought on by working conditions in host countries, including occupational diseases brought on by exposure to chemical and physical agents, disabilities brought on by overly demanding physical tasks, and harm to children working in hazardous conditions (Hasegawa, 2005; ILO, 2005; NSC, 2005). Numerous of these actions constitute violations of human rights and are harmful to both the environment and public health. For instance, the use of hazardous substances at industrial production facilities, such as Metales y Derivados in Mexico, has involved the careless discharge of pollutants, resulted in illnesses, and contaminated water and soil (Yang, 2005). Over 2000 people died and tens of thousands more suffered grave health issues as a result of an unintentional release of a toxic chemical in 1984 from a Union Carbide chemical processing facility in Bhopal, India (Eckerman, 2005). FreeportMcMoran, Shell, Exxon, Unocal, and other MNCs in Brazil and Chile are destroying ecosystems and indigenous cultures while also harming public health through the extraction and processing of hard minerals, oil, and timber in New Guinea, Nigeria, Colombia, and Burma (Perlez and Bonner, 2005; IRTK, 2003). High output manufacturing practices in Central America and Southeast Asia are harmful to workers and have resulted in catastrophic events, such as the fire at the Kadar Toy Company in Thailand that killed 188 people and left 469 people in critical condition (Hiatt and Greenfield, 2004).

It is feared that new genetically modified crops will reduce biodiversity and speed up the evolution of pest species with superior resistance to chemical and biotechnological pesticides unless they are tightly regulated (Laxminarayan and Fischer, 2004). Industrial scale agriculture has been introduced to poor countries like Honduras, bringing with it pesticides and herbicides that are harming workers' health and polluting rivers and water supplies (Groom, 2005). And developed nations are increasingly shipping industrial and electronic wastes containing different toxins to India and other developing nations for fictitious recycling and disposal under working conditions that would not be tolerated in the industries of their home countries or any other developed and highly regulated nations (Basel Action Network, 2006; Sharma, 2006; Schmidt, 2006). The activities of industries and their business affiliates in developing countries frequently involve the exploitation of children, women, and migrant workers, depriving them of their rights frequently, especially in the case of the rural poor (Bureau of National Affairs Inc, 2005). This goes beyond creating workplace hazards.

In China, Southeast Asia, and South America, local businesses that are a part of the global supply chains and contractor networks set up by major industries producing consumer goods (e.g., the automotive industry) are notorious for requiring children and women to work long hours and perform strenuous physical labor. g. mining for minerals and other resources, and producing goods (clothing, electronics) (International Right To Know, 2003). These are only the immediate effects of rapid industrialization, though. Long-term disruptions or secondary effects also affect the less developed host countries, such as the mass migration of rural poor people to industrial areas that lack adequate infrastructure for housing, water, health care, education, and other basic needs. An additional long-term effect of such migration and demographic change is the disruption of indigenous activities like rural agriculture and crafts, as well as the breakdown of village and family systems, both of which have been crucial components of the socioeconomic structure of host countries (BNA, 2005).

These are complicated issues that pose a serious humanitarian threat. A well-organized labor movement that upholds labor rights is thought to be essential to the development of a welfare state. Recent discussions have focused on whether or not the growing integration of global markets has become the most significant factor influencing the capacity of governments to fulfill their social obligations (Rudra, 2002). Foreign Direct Investment (FDI), its effects, locations, and competition for it are all discussed in the globalization debate, not just MNCs or large industries. This is frequently associated with the idea that globalization promotes "regime shopping," "social dumping," and a "race to the bottom," with a perceived global subordination of labor (including low pay and standards) as a result of such trends (Rowley and Benson, 2000). Government also has a role in deregulating the economy, privatizing public assets, and luring investors with welfare programs, flexible hiring practices, and other strategies (Rowley and Benson, 2000). Not yet, though. The labor market is significantly influenced by capitalism, which aims to upgrade the informal sector to produce goods and services that require more skill (Simari, 1995b).

Profit-making is why capitalists are so involved; as a result, they are less focused on labor laws and worker welfare. Women make up a large portion of the workforce in these unorganized sectors. Numerous women who work in domestic economies' informal sectors are neither protected by national laws nor subject to international regulations (Munck, 2002). As a result, there have been disparities in the level of protection across geography (that is, developed versus developing economies), time (the strength of unions in developed economies in the 1970s compared to the 1990s), industry (manufacturing versus services, metals versus textiles, public versus private), and membership (gender division, level of migrant labor).

Labour and its Organisations:

According to some researchers and academics, organizations' increased internationalism could be advantageous to labor (Levisen, 1974; Labour Research Association, 1984). In practice, however, globalization has frequently heightened competition between labor movements at the national and industrial levels, reinforcing a global division of labor (Jenkins, 1984; Southall, 1988; Olle and Schoeller, 1987). Even the deregulation of immigrant labor in Hong Kong caused a split in the labor movement's consciousness. According to John Burgess (cited in Rowley and Benson, 2000), the globalization agenda in Australia led to a decline in trade unions, attacks on standard employment, and an increase in non-standard work because such arrangements are less regulated and typically outside the union's purview. With policies of deregulation, labor market reform, and IR decentralization, the Australian government responded to the world market by fostering more international trade for Hell and Harley. The labor market and all unions faced difficulties as a result of such things. Collective bargaining, wage inequality, and job security are all clear signs of the effects of globalization on the labor market. As a developed economy, Japan, on the other hand, experienced success in exports and overseas production, which made the country's economy dependent on a robust global economy. However, the 1990 recession had a negative impact on consumer demand for Japanese exports. It worsened the banking and financial crisis in Japan and fueled calls for the employment system to be changed. In Hong Kong, according to Hong and Rowley (2000), deregulation of the labor market and paradoxical results for government policies and trade unions were brought about by globalization. Regarding the challenge of protecting both local and guest workers at once, it had a significant negative impact on workers and labor organizations.

The viability of the labor movement around the world has allegedly been severely undermined by globalization, privatization, and deregulation that it has brought about. Mobile capital demanded a conducive investment climate in Indonesia during the process of globalization, which increased pressure on governments to impose restrictions on organized labor. Globalization in China led to shifting economic environments, market reforms, and worsening working conditions in many places of employment. The labor market has not become "free" as a result of deregulation, but is still in fact regulated. Many workers remained constrained in a different way, having to "buy" their jobs and thereby becoming "bonded labor," even though earlier restrictions on allocating people to jobs in an economy have diminished.

Initiatives by International Organisations:

International Labour Organisation (ILO)

The International Labor Organization is one of the public international organizations that is most focused on workplace-related issues. Its "principal purpose is to establish minimum labour standards and to take the terms and conditions of employment out of global competition through the adoption of conventions and recommendations" (Potter, 2005, p. 1). The UN Employment and Social Affairs Department was established in the years following World War I and is currently one of the largest specialised agencies of the UN. 244). A recommendation is merely advisory, whereas a convention is binding on an ILO member nation if that nation ratifies it. Since the organization's founding in 1919, 185 conventions, 193 recommendations, numerous technical advisory standards, and other documents have been adopted by the ILO. All of these documents are concerned with workers' rights and employment practices, and some even address risks to their health and safety. However, the 176 member countries' performance in terms of implementation has been disappointing. (Helfer, 2006) ILO is still working to achieve better outcomes.

The 1998 ILO Declaration on Fundamental Principles and Rights at Work was unanimously adopted by all 176 member countries and does not need to be ratified in order to be implemented. Nations have agreed to submit progress reports for peer review and ILO publicity, as well as to be targeted for technical assistance when necessary. They are required to establish the right to collective bargaining, to outlaw forced labor, child labor, and employment discrimination. By incorporating the fundamental values and rights into their national laws, court rulings, and trade agreements, it is hoped that ongoing assessment and disclosure will inspire the nations to do so voluntarily (Potter, 2005). The "soft law" approach, i.e. e. It has developed four standards for labor and employment that are recognized by all of its nations and which are likely to be referenced in contracts and other aspects of private law as well as public law worldwide. However, there is no mention of a right to work-related health and safety in the Declaration, nor does it contain any components of a regulatory scheme with workplace requirements or other particulars.

However, the ILO has developed significant ongoing programs that deal with workplace health and safety in host countries. For instance, it established the International Occupational Safety and Health Hazard Alert System to facilitate the rapid dissemination of information on recently discovered hazards through a network of about 100 national agencies and created a model code of conduct for international technology transfer. Additionally, it collaborates on issues related to chemical safety with the World Health Organization and the UN Environmental Program (Gleckman, 1988). It also offers targeted and ongoing technical assistance to countries in need, such as Cambodia. ILO has created Guidelines on Occupational Safety and Health Management Systems for large industries that outline how businesses should organize and distribute management functions in order to prevent, record, control, audit, and respond to workplace hazards, manage change, and pursue continuous improvement. The manual briefly describes the management system and general management duties, but it doesn't offer any detailed procedures for worker protection, substantive standards, or technical limits on workers' exposure to physical and chemical hazards, safeguards for operating machinery or other potentially dangerous products, or any measures to prevent physical stress. Despite the fact that it includes a list of previous ILO conventions and recommendations for reference, no ILO follow-up or public evaluation of business progress is mentioned. ILO declares that its recommendations "are not intended to replace national laws, regulations, or accepted standards" (ILO-OSH, 2001), as if to ensure that they will have little impact on reducing actual hazards in any actual workplace. Without a doubt, the ILO works to promote worker welfare, but exploitation is still pervasive in the search for financial gain, not just in developing countries but also in developed ones.

United Nations:

The environment and sustainable development among industrialized nations have been the main areas of focus for the UN. Similar to the ILO, it has produced a number of reports and recommendations that member countries may choose to voluntarily adopt through judicial action, legislative action, or incorporation by reference in treaties. The UN's Centre for Transnational Corporations (UNCTC) made a concerted effort to create a framework for regulating industrial activities by publishing reports on Hazardous Products, the Role of Transnational Corporations in World Development, and Industrial Process Safety and Hazards (Gleckman, 1988). The 1991 UNCTC Report on Transnational Corporations and Industrial Hazards Disclosure covered best practices for corporate disclosure of risks posed by proposed construction activity, industrial facility operation, sale and export of hazardous products, and the management of hazardous workplaces as required by laws and regulations of the USA and European Community nations. Detailed recommendations for legislative adoption of a standard international code of disclosure policies for industries were included in the report's conclusion (Baram and Marchant, 1991). The failure of this program was due to a combination of industry opposition to the UNCTC and lack of support from developing countries.

Other UN organizations, including the UN Conference on Trade and Development, the UN Industrial Development Organization, the World Health Organization, and the International Atomic Energy Agency have also produced standards and suggestions for adoption by host nations. A significant UN initiative called Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human Rights, which had been negotiated over a long period of time, was unable to secure the necessary backing from powerful countries. Its supporters wanted to create an international, legally binding system for industrial governance. Section 7 on workers' rights was one of its normative provisions that stood out. According to previously passed conventions and other international instruments that contain fundamental standards for worker protection, e.g., it would have been stipulated that host nations establish an affirmative duty for corporations to provide a safe and healthy environment for workers. g. for businesses to be open about the health and safety requirements that apply to their local operations and to give employees the right to refuse unsafe work. Unfortunately, this initiative was dropped in 2005 due to a lack of support (Backer, 2006).

OECD and Corporate Codes of Conduct:

In order to "improve the international investment climate and to strengthen the basis of mutual confidence between multinational enterprises and the societies in which they operate," the Organization for Economic Cooperation and Development (OECD) has adopted Guidelines for Multinational Enterprises, which are "non binding recommendations" to industries operating in host countries or from OECD's thirty-three member nations (OECD, 2001, p. 2). The OECD's Guidelines from 2000 merely ask MNCs "to contribute to" upholding ILO standards for human rights and "to take adequate steps to ensure occupational health and safety in their operations" (p. 2). However, the accompanying OECD "Commentary" on the Guidelines (2001) also states that MNCs "are expected to follow current regulatory standards and industry norms to minimise the risk of accidents and injury to health.". while performing work-related duties. even when doing so may not be formally required by laws in the nations in which they operate" (pp. 20-21).

Additionally, the OECD advises that businesses set performance improvement goals, monitor their progress, train their employees on hazards in a timely manner, and continually strive to improve their performance by implementing tools and methods that correspond to those used in the "best performing parts of the enterprise.". Despite the fact that these standards are not legally binding and that the OECD does not offer a system for observing or enforcing their compliance, the organization nonetheless pioneers by urging industrial performance to go above and beyond the minimum standards set by the host country and to at least the level of an MNC's best practices anywhere, which are generally thought to be in the MNC's home country or another advanced country. Thus, an MNC's performance in a host country can be openly evaluated in comparison to both the OECD norms and its best past results in other highly regulated developed countries. It is hoped that this will encourage multinational corporations to use their own best practices to protect their employees in their host countries, and that as MNCs do so voluntarily, host countries will be emboldened to adopt the norms as part of their hard law, reducing comparative advantage and preventing the "race to the bottom" (Kinley and Tadaki, 2004).

As for specific MNCs, larger companies with strong brand recognition among consumers or public notoriety for risky activities, and their trade associations, have voluntarily adopted codes of conduct that reflect various social responsibility norms. The most extensive of these codes is "Responsible Care," which was created by chemical manufacturer associations soon after the Bhopal tragedy to regain the public's trust and is now being used by member companies in more than 40 countries (Baram, 1993). Several "Codes of Management Practices" on product stewardship, process safety, and worker health and safety are included in the concept of responsible care. These guidelines are provided as general principles and best practices for managing chemical hazards, and they essentially set a global standard of care for chemical company management. Each national chemical association is in charge of enforcing compliance by its member companies. Companies are required to submit annual reports to their association on progress toward full compliance and be subjected to a verification process. The association is then required to punish companies that fail to show progress by excluding them from membership. Expulsion is a serious penalty because it harms a firm's standing and future business opportunities, as it has been done to several American companies, for instance. Responsible Care has been imitated in other business sectors because it is widely acknowledged as an progressive and privately enacted response to public worries about industrial hazards.

Such widely accepted codes also frequently encourage government regulations that turn best practices from the private sector into binding law, i. e. Because the codes are regarded as the industry's own voluntary consensus on the cutting edge of managing its hazards, they are enforceable rules and standards. In addition, a company's performance in other nations or in the host country can be evaluated in relation to its management practices. The International Organization for Standardization (ISO) certification is sought after by numerous multinational corporations and industries. Firms can obtain ISO certification, which identifies them as having a superior management system, by modifying their management systems to meet the "quality management" and "environmental management" criteria of ISO. Having an ISO certification gives a company a competitive advantage because other companies looking to build public trust are more likely to choose these companies as partners or suppliers. However, similar to the ILO's Guidelines, this approach does not always result in a decrease in risks or harms, and many ISO-certified businesses are infamous for breaking regulations. Business opposition, which claimed that ISO's initial approach was too rigid and would not be able to account for "local conditions," also prevented ISO from developing a certification program for occupational safety and health management.

Summary

International organizations take a variety of actions to improve the lives of laborers, particularly by giving them access to minimal pay and basic healthcare services, as well as by promoting their general welfare. They have laws passed for them. However, there is little evidence of big businesses and industries adhering to these laws and other similar recommendations. Because there aren't enough effective checks and balances in place, even the application of standard laws isn't doing well. For instance, the Indian Constitution establishes the directive principle of "equal pay for equal work," along with the provision of health services to the workforce. The organized sector largely complies with this code of conduct, but what about the unorganized sector, where the majority of workers are employed in conditions devoid of adequate facilities? For instance, workers in the industries that produce salt, bidis, crackers, and bricks are afflicted with a wide range of health issues. No legal action has been taken against those in charge up to this point. In addition, smuggling, human trafficking, and bonded labor are global issues. They cannot be controlled because there is no reliable check. The UN offers recommendations to manage these issues, but how well they are put into practice is another matter. Controlling and defending labor laws becomes more challenging. Even labor unions and organizations at the regional and global levels are unable to give their members a minimal standard of living. For instance, the Bhopal gas tragedy victims who were employed as laborers have yet to receive any form of compensation and still face health risks. This is just one instance, but there are many more like it throughout the world that aren't even properly reported. A worker's lifestyle and development are also hampered by wage fluctuation. Trade unions undoubtedly became active with the aid of the ILO and UNO, and even major industries and MNCs began to adhere to certain standards and measures for the benefits of their employees. However, a sizable portion of the labor force is employed in the unorganized sector, which is the one most severely impacted by corruption due to its exploitative nature. International NGOs and organizations that protect the rights of workers should focus on the unorganized sector where employment should be governed and protected by the law as well as by other rules and regulations to prevent labor from being exploited by others.