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Labour

This section is for broad trade and labour issues. For a list of day to day articles related to labour, see this page.

The combined effect of structural adjustment programmes, increased capital mobility and the globalisation of production has resulted in mass job losses and precarious employment in many countries over the past 30 years. Attacks on social welfare, healthcare and education, as well as privatisations, high unemployment and strong arm tactics against trade union organising, have rolled back many of the hard-won fruits of struggle. In the name of global competitiveness, workers are set against each other in a race to the bottom which only the bosses can win.

International free trade and investment agreements are an important vehicle for the transfer of power from labour to capital. As transnational corporations are granted ever greater rights to trade and invest across the global economy, workers are increasingly cast as commodities in global value chains over which they have no control. The transnational capitalist elites that sit on top of these global networks of production can freely switch suppliers in search of lower labour costs or higher productivity, leaving behind a social devastation from which successive generations are often unable to recover.

The new generation of twenty-first century FTAs are now seeking to intensify this imbalance still further by removing the social standards and market regulations that have traditionally served to limit the power of transnational capital. The elimination of these regulatory ‘barriers’ to trade forms a central pillar of the most recent wave of FTAs, through which transnational corporations will be freed from any restrictions which might have allowed labour to participate in the benefits of trade or investment. Workers will create the wealth, and corporate elites will accumulate it.

One strategy previously advocated by trade unions in the global North was to press for social chapters in FTAs as a means of mitigating the worst effects of market liberalisation. This strategy is now widely recognised as ineffective, since such measures could never compensate for the devastation caused by bringing domestic enterprises into unequal competition with transnational corporations. The record of deindustrialisation and mass unemployment in the wake of trade liberalisations imposed on the peoples of Africa and Latin America shows just how high a price workers have paid for such policies. The negative experiences of US, Canadian and Mexican workers as a result of NAFTA are a reminder that workers in richer countries are also vulnerable.

Trade unions in the global South have long played an important role in mass movements of resistance to free trade and investment agreements. In Korea, many thousands of KCTU members participated in national mobilisations against both the US-Korea and EU-Korea FTAs. Workers in Central America actively opposed CAFTA, such as those from the state power and telecommunications sector in Costa Rica and education workers in Guatemala. Now Northern trade unions are joining these movements of resistance: all major European trade union federations have come out against CETA and TTIP, for example, just as the AFL-CIO called for a halt to the TPP negotiations for fear of the impact on US workers. The global union federation PSI has also spoken out against service liberalisation agreements such as TiSA, which threaten to undermine public services and public sector jobs alike.

Migrant workers’ associations have also formed part of the movement against FTAs. Free trade and investment agreements have resulted in social dislocations that have forced people from their farms, jobs, families and communities into exploitation as migrant workers, either internally within their own states or in other countries. At the same time, the growing number of FTAs that include provisions on temporary labour mobility have been condemned for endangering workers still further, driving people to migrate while still denying them basic rights in countries where their presence is highly precarious and often used by employers to undermine existing labour standards still further. Only when workers are no longer relegated to the status of commodities serving the economic strategies of capitalist elites can there be any hope of their liberation from such exploitation.

In the Asia Pacific region, unions have recently come together to strengthen their ability to intervene in international trade and investment related processes, by creating a network of trade unions called Unions for Trade Justice network. UTJ is coordinated by the Global Union Federations and aims to facilitate intervention by their affiliates and unions interested in challenging the free trade agenda and furthering the agenda of trade justice. UTJ’s formative document can be found here.

Contributed by John Hilary, and Susana Barria (PSI)

last update: January 2020


Salem outlines measures to protect workers’ rights in QIZs - Jordan
Jordan’s Minister of Labour Bassem Salem on Sunday met with US Ambassador David Hale and delegates of the Office of the US Trade Representative to outline efforts to safeguard workers’ rights in the country’s Qualified Industrial Zones (QIZ).
Flower power - But not for the workers
The Free Trade Agreement (FTA) between Colombia and the United States that could be signed in October or November this year will maintain the tariff exemptions already enjoyed by Colombia’s flourishing flower industry. But there are no plans for higher wages and better working conditions for the industry’s 100,000 workers.
CAFTA bait-and-switch destroys Georgia community
Remember during the debate over the Central American Free Trade Agreement, every Republican politician and corporate lobbyist was giving the public the "free trade creates American jobs" line? It’s a line that America has become used to hearing from Washington, D.C. — even though, as both Hostile Takeover and Take This Job and Ship It show, this mantra has no relation to reality.
Jordan shutting abusive factories
Jordan’s trade minister yesterday acknowledged that his country had failed to enforce its own labor laws in some instances. Mr. Zu’bi was in Washington to meet with the Bush administration, lawmakers and business groups after a May report by the National Labor Committee said the US-Jordan Free Trade Agreement encouraged sweatshop conditions in Jordanian garment factories.
US-Jordan free trade agreement descends into human trafficking
Tens of thousands of foreign guest workers are stripped of their passports, trapped in involuntary servitude, sewing clothing for Wal-Mart, Gloria Vanderbilt, Target, Kohl’s, Thalia Sodi for Kmart, Victoria’s Secret, L.L.Bean and others.
FIDH report on the effects on human rights of the NAFTA
The International Federation for Human Rights has published the report of a fact-finding mission on the effects on human rights of the North American Free Trade Agreement (NAFTA). The mission, conducted in Mexico between 22 and 31 of August 2005, looked specifically at the effects of NAFTA, ten years after its entering into force, on employment and working conditions in the Northern part of the country, in particular in the maquilas and in the informal economy.
Workers will suffer from weakened Andean Community
Free trade agreements with the United States and Venezuela’s announced withdrawal from the Andean Community trade bloc will have an impact on workers, the ‘Cinderella’ of decades of integration, said trade unionists and experts in the region consulted by IPS.
An ugly side of free trade: Sweatshops in Jordan
Propelled by a free trade agreement with the United States, apparel manufacturing is booming in Jordan, its exports to America soaring twentyfold in the last five years. But some foreign workers in Jordanian factories that produce garments for Target, Wal-Mart and other American retailers are complaining of dismal conditions - of 20-hour days, of not being paid for months and of being hit by supervisors and jailed when they complain.
UAE: Address abuse of migrant workers
The governments of the United States, the European Union, and Australia are currently negotiating free trade agreements with the UAE. Human Rights Watch called on these governments to require improvement of UAE’s labor practices and legal standards before signing such agreements.
Hunger on the border
The labor side agreement of NAFTA hasn’t forced anybody to take responsibility. It’s not an effective guarantee of anyone’s rights.