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International Labour

Organisation
Powerless yet Important? The ILO
and International Labor Standards
Referat von Yuan-Juhn Chiao, Veronika Rott, Stephanie Klein, Iris Hadrossek, Juliane Georg

International Labour Organization

Presentation Plan
1.
2.
3.
4.
5.
6.

Introduction
The ILO
Conventions and Core Conventions
Role of the ILO in Globalization
Codes of Conduct
Internal and External Monitoring

International Labour Organization

Authority of Global Rules


n

3 Variables in determining whether rules will be


followed by global actors (Rieth 2003)
1.
2.
3.

Power: coercion, enforcement mechanism


Interests: actors self interests must be
satisfied
Legitimacy: process participation and
credibility of information

International Labour Organization

Principle objectives
n

To promote better working and living


conditions

To support and protect peaceful industrial


relations

To support economic development by


homogeneous standards

To hinder war by ensuring social justice

International Labour Organization

The International Labour


Organization is built on
the constitutional principle
that universal and lasting
peace can be established
only if it is based upon
social justice.

International Labour Organization

Functions
n

Creation of international labour standards

Formulation of international policies

Technical assistance

Training, education, research and


publishing activities

International Labour Organization

History
1919 founded, first annual International Labour Conference,
constitution
1920 established headquarters in Geneva
1926 set up of the supervisory system on the application of
its standards
1944 Declaration of Philadelphia
1946 became the first specialized agency associated with the UN
1960 creation of the International Institute for Labour Studies
1965 creation of the International Training Centre in Turin
1969 ILO awarded the Nobel Peace
at its 50th anniversary
1998 Declaration of Fundamental Principles
and Rights at Work and 8 core conventions

International Labour Organization

Structure
The ILO has a unique
tripartite structure
with workers and
employers
participating as equal
partners with
governments in the
work of its governing
organs.

worker
25%

government

50%
25%

employer

International Labour Organization

Three main bodies


n

International Labour Conference


- creates international labour standards
- forum for discussion
- elects the Governing Body

Governing Body
- executive council
- decisions on ILOs policy
- establish programme and budget

The International Labour Office


- permanent secretariat
- research centre and printing house

International Labour Organization

Conventions
normal conventions and core
conventions
n Form of establishing labour standards
n Focuses on technical questions
concerning actual working conditions
n

International Labour Organization

Core Conventions
Forced Labour Convention / No. 29
n The Freedom of Association and
Protection of Right to Organize
Convention / No. 87
n Right to Organize and Collective Bargain
Convention / No. 98
n Equal Remuneration Convention / No. 100
n

International Labour Organization

n
n
n
n

Abolition of Forced Labour Convention / No. 105


Discrimination Employment and Occupation
Convention / No. 111
Minimum Age Convention / No. 138
Worst Form of Child Labour Convention / No.
182

International Labour Organization

Ratification
n

Majority of the core conventions have


achieved the status of universally
accepted human rights
but: just 37 member states ratified the
Worst Form of Child Labour Convention

International Labour Organization

Convention

Total ratifications

No. 29

Forced Labour

153

No. 87

Freedom of
Association

131

No. 98

Right to organize

147

No. 100

Equal Remuneration

148

No. 105

Abolition of Forced
Labour

146

No. 111

Employment and
Occupation

144

No. 138

Minimum Age

99

No. 182

Worst Form of Child


Labour

37

International Labour Organization

Enforcement
Enforcement mechanisms

sunshine

carrots

sticks

International Labour Organization

Enforcement Power
n
n
n
n

Sunshine = transparency ILO has mechanism


for supervising the application of conventions
Carrots and Sticks means Zuckerbrot und
Peitsche
Carrots ILO has regular technical cooperation
programs
Sticks ILO provides multiple avenues for
workers, employer and government
representatives to raise issues of alleged noncompliance (Article 26)

International Labour Organization

Global Role for the ILO?


n

Recent Developments:

1.

High profile cases of Third World labor


conditions in the 1990s raised public
awareness
Labor activists goal of inserting social clauses
in trade agreements
Greater activism by the ILO in defining its role
in globalized world

2.

3.

International Labour Organization

ILO initiatives:
1994 Working Party on the Social
Dimensions of the Liberalization of
International Trade

an unbridled liberalization of trade can


work against the social objectives of the
ILO

International Labour Organization

1994 GATT Marrakesh Ministerial


Founding of the WTO
Debate over the linkage between
international trade and labor
Delegates agreed that the ILO instead of the
WTO should address this matter

International Labour Organization

1995 Copenhagen UN World Summit on the


Social Dimensions
Fundamental labor standards first mentioned
Commitment by member governments to safeguard
the basic rights and interests of workers and to this
end, freely promote respect for relevant International
Labour Organization convetions, including those on
the prohibition of forced and child labor, the freedom
of association, the right to organize and bargain
collectively and the principle of non-discrimination

International Labour Organization

1996 Singapore WTO Ministerial Conference


Polarization of industrialized countries and LDCs over
the linkage between international trade and labor
standards
Compromise: WTO members are to commit to core
labor conventions
ILO referred to as the competent body that
establishes these standards

International Labour Organization

Remarks:
ILO

motivated to act because there was an


opportunity to be more relevant in the age of
globalization; increased prestige
Fundamental core conventions as opposed
to a listing of conventions.
Addressing the international trade and labor
standards link?

International Labour Organization

1998 ILO Declaration on Fundamental


Principles and Rights at Work
Defined

certain labor standards as


fundamental human rights
Fundamental labor rights do not require
ratification
Universal applicability, irregardless of country
conditions

International Labour Organization

codes of conduct
n
n
n
n
n
n

Another approach to labor standards


Companies policy statements defining ethical
standards for their conduct
Without authorized definition
Completely voluntary
involves self-regulation
implementation depends totally on the
company concerned

International Labour Organization

codes of conduct
Can be internal (company itself drafts the
code)
n Or external (ILO/OECD codes, South
Africa case, Starbucks case)
n Can address any issue (e.g. workplace
issues, workers rights or environmental
issues)

International Labour Organization

Issues in company ethics


statements 1991:

International Labour Organization

Why implement codes of conduct?


In the 1990s: growing interest in
multinational organizations behavior
towards their employees
n NGOs request companies to act socially
and ecologically responsible
n companies start publishing internal
codes of conduct
n codes of conduct as a comfortable way
to implement labor standards
n

International Labour Organization

The Starbucks case


1994: US labor rights advocacy group +
US-Guatemala Labor Education Project
start Campaign for Justice for Coffee
Workers against Starbucks

International Labour Organization

They want Starbucks to establish a code


of conduct requiring their business
partners in Guatemala to:
pay a living wage,
n respect freedom of association,
n provide sanitary housing,
n provide safe and healthy workplaces,
n and not practice discrimination
n

International Labour Organization

The Starbucks case


Starbucks

president refuses to establish


code of conduct
Public communication campaign starts
Feb. 1995: Starbucks president agrees to
adopt code of conduct but:
They draft their own: something that
works and something that we can live
with

International Labour Organization

Problems with codes of conduct:


n
n
n
n

Implemented to satisfy consumer/share-holder


expectations + avoid brand image reputation
Dependent on credibility
credibility depends on extent of awareness of
the codes existence and meaning
on transparency, enforcement, and
monitoring

International Labour Organization

Overview
Systems for monitoring labor standards
1. Nongovernmental Monitoring Systems in
connection with the codes of conduct
2. Monitoring System of the ILO and the
tools for improving working conditions
n

International Labour Organization

Nongovernmental Monitoring
Systems
Internal monitoring by brands and retailers
n External monitoring by third-party
organizations
n Independent investigations by NGOs,
unions, and private individuals
n

International Labour Organization

For example: Nike

International Labour Organization

Code of Conduct
1992
n On labor and environmental practices
n

International Labour Organization

Monitoring System
Implementation of an internal compliance
division
n Monitoring of the suppliers by Nike staff
n Review by external consulting firms

International Labour Organization

Evaluation System
Performance rankings
n High scorers garner more lucrative orders
n Low scorers risk losing contracts
n

International Labour Organization

Effects of firm-led selfmonitoring


Little research on the effects
n Most of the programs are confidential
n Accusation of using it for public relations
n

International Labour Organization

External Monitoring
n

For example: Fair Labor Association (FLA)

International Labour Organization

Development and Governance


Developed in 1996 by the Clinton
administration
n 6 industry representatives
n 5 NGOs
n 1 university representative
n

International Labour Organization

Monitoring System
Combination of internal and external
monitoring
n External auditors and factories of
monitoring are selected by the FLA
n Announced and unannounced visits
n

International Labour Organization

Certification
Applies for an entire brand
n Developing of a service mark, with
information on compliance
n

International Labour Organization

Public disclosure
Summaries of audit results
n Participating companies are listed on the
FLA website
n

International Labour Organization

Criticism
n

Auditors in these programs are often paid


directly by the brands or factories being
monitored

International Labour Organization

Independent Investigations
n

For example: Workers Rights Consortium


(WRC)

International Labour Organization

Development and Focus


In 1999 by the United Students Against
Sweatshops (USAS)
n Focus on factories that produce apparel
with university logos
n The WRC model code (e.g. a living wage)
should be adopted by participating
universities

International Labour Organization

Strategies
Inspection of factories due to worker
complaints
n Proactive inspections in countries with low
labor standards
n Information disclosure requirements

International Labour Organization

WRC goals
Compliance with a base code of conduct
of factories that produce universitybranded apparel
n Education of workers about university
codes and reporting of code violations
n Collaboration with local NGOs and
activists for investigative efforts
n

International Labour Organization

Public Disclosure
n

All factory investigation reports are


published

International Labour Organization

Criticism
pointing out problems, instead of resolving
them
n Inspection system: limited scope and
coverage

International Labour Organization

Monitoring of the ILO


Tools for improving working conditions

International Labour Organization

Tools of the ILO


Supervision and Publication
n Technical assistance
n Enforcement mechanism
n

International Labour Organization

Supervision of compliance

International Labour Organization

International Labor Conference


Annual meeting
n Adoption of new conventions
n Review of the implementation of existing
conventions
n

International Labour Organization

Mechanisms for Supervision


Article 22: requires member governments
routinely reporting of ratified conventions
n Article 19: requires member governments
periodically reporting of not ratified
confentions and of efforts to ratify other
conventions

International Labour Organization

Review of the governments


reports
Committee of Experts on the Application of
Conventions and Recommendations
(CEACR)
n Compiles a report to the International
Labor Conference
n individual observation of failure
n

International Labour Organization

Conference Committee on the


Application of Standards
Review of the CEACR report
n Selection of problem cases
n Invitation to the affected governments to
respond in public session
n

International Labour Organization

Follow-up Mechanism
Additional tool for implementing the 1998
Declaration
n Requires an annual reporting of countries
that have ratified none of the eight core
conventions, of what they are doing to
promote the conventions
n

International Labour Organization

Public Disclosure of the ILO


Publishes much of the information
generated by ist supervisory mechanisms
on its Website
n Increased the transparency of its Website
in recent years
n

International Labour Organization

Criticism of affected countries


Is concerning the public disclosure
n Affected countries convict the ILO of
naming names
n

International Labour Organization

Technical Assistance
Dissemination of knowledge through
seminars
n Funding for less developed countries
n

International Labour Organization

Funding and Programs


Since the late 1990s funding of many
wealthier member stetes for ILO programs
increased
n Initiation of technical cooperation
programs
n

International Labour Organization

Enforcement of Conventions
n

Article 33: gives the ILO authority to take


action against states suspected of noncompliance

International Labour Organization

Mechanisms that could lead to


Article 33 sanctions
Article 24: right of any worker or employer
organization to complain a member
government of noncompliance
n Article 26: right of member governments to
complain another member government

International Labour Organization

The Burma Case


2000: the ILO invoked Article 33 against
Burma because of noncompliance to
Convention 29 concerning forced labor
n First Article 33 invoking in ILO history
n Long-standing process, that started in
1996 with a complaint of worker delegates
n

International Labour Organization

Sanctions concerning the


Article 33 invoking
Requirement to member governments to
review their relationship with the
government of Myanmar (Burma)
n And to take measures that the relations do
not facilitate the system of forced labor
n Requirement to other international
organizations to review their activities in
Burma and the effects concerning forced
labor
n

International Labour Organization

Consequences of Article 33
n

2002: Burma accepted a permanent ILO officer


to oversee implementation of the forced labor
ban
Unions, NGOs, and others concerned with
forced labor in Burma stated that the problem
continued
No government, international organization, or
workers or employers group had taken action
against Burma under the Article 33 resolution

International Labour Organization

Summing up...
n

Slow response to Burmese continuous failure


underscores the unwillingness of ILO members
to punish dissenters, which underlines the
weakness of the ILO
ILO authorizes member governments and other
UN organizations to take action to remedy
violations and does not impose them directly
itself
Main beneficiaries of compliance with ILO
standards are workers in the countries charged
with non-compliance, whereas no perceived
benefits for governments or employers

International Labour Organization

Literature
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Block, r. N. / Roberts, K. / Ozeki, C. / Roomkin, M. J. (2001): Models of International Labor


Standards. In: Industrial Relations, No. 2, Vol. 40, pp. 258-292
Compa, L. / Hinchliffe-Darricarere, T. (1995): Enforcing International Labor Rights through
Corporate Codes of Conduct. In: Columbia Journal of Transnational Law, Vol. 33, p. 663-689
Elliot, K. A. (2000): The ILO and Enforcement of Core Labor Satndards. In: Institute for
International Economics, Number 00-6, p. 1-7.
Monitoring International Labor Standards: Techniques and Sources of Information. Commitee on
Monitoring International Labor Standards, National Research Council. 306 pages, 6 x 9, 2004
Scherrer, C. / Greven, T. (2001): Global Rules for Trade. Codes of Conduct, Social Labeling,
Workers Rights Clauses. Mnster: Westflisches Dampfboot.
ILO Actrav (Ed.): Corporate Codes of Conduct, online: <http://www.itcilo.it/actrav/
actravenglish/telearn/global/ilo/code/main.htm>. Download: 06.11.2004

ILO (Ed.): The Model Use of International Labour Standards, onli ne: <http://www.ilo.
org/public/english/standards/norm/howused/model/>. Download: 06.11.2004

Reichert (2002): Sozialstandards in der Weltwirtschaft, Deutsche Gesellschaft fr


Technische Zusammenarbeit (GTZ) (Ed.), online: <http://www.gtz.de/socialstandards/downloads/deutsch_WW_reichert.pdf>. Download: 01.11.2004
www.ilo.org
www.bostenreview.net/BR26.1/fung.html

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