Professional Documents
Culture Documents
Standards Regulation4Development
Standards Regulation4Development
FOR DEVELOPMENT
ANIL VERMA
ROTMAN SCHOOL OF MANAGEMENT
CENTRE FOR INDUSTRIAL RELATIONS & HUMAN RESOURCES
UNIVERSITY OF TORONTO
Vicious
Virtuous
“HIGH ROAD” – “LOW ROAD”
52,000 Germany
50,000
48,000
46,000
44,000 UK
42,000
40,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Germany U.K.
RESPONDING TO GLOBALIZATION AT
THE FIRM-LEVEL: MOBILIZING TALENT
Skills
•Efficiency
•Innovation
Interesting •Creativity
Create a Work
Vision
Incentives
Hire the best
(domestic Autonomy Competitive
initially, but
Advantage
later more Respect for
globally) Diversity
Work-family
Balance
PROBLEM FOR GLOBALIZATION WITHOUT
STANDARDS OR REGULATION
• Race-to-the-bottom
• Inefficient allocation of human resources
• Not aligned with the goal of development: paths to
prosperity
• Unsustainble globalization
• Morally wrong
POLICY RESPONSES:
• Illegitimate:
• Apathy
• Lip service
• Smoke screen
• Whitewashing/Greenwashing
• Legitimate: Regulatory mechanisms to ensure fair &
“decent” standards
• Government-led; industry/firm led; labour-led; joint bi-partite, tri-partite
and multi-partite
• International vs. national
Labour Regulation
in the Context of
Globalization
CSR-
General Labour
Labour & Litigation for Industry Internatio
damages Firm Level level nal CB
Social
Clauses in under
Trade & existing
laws -UN Global ILO-Tripartite
Investment Codes of Compact
Agreements -Clean Body:
Conduct: - UN Guidelines - Core LS
-Bilateral - Clothes
-Nike for Trans-
Multilateral -Wal-Mart -Ethical - Supervisory - IFAs
Trading national Role
-Ford Corporations - B’desh
-Apple Initiative Demonstration
-SA8000 -ISO 26000 Accord
-Etc. Projects
- Bangladesh - Better Work
Alliance -Equator
Principles - IPEC
-Global
Reporting
Initiative (GRI)
-Voluntary
Principles
- OECD
Guidelines for
MNCs
- World Bank
Contract
Compliance
rules
THREE STEPS IN
LABOUR STANDARDS REGULATION
THROUGH INDUSTRY SELF-REGULATION
• Develop standards
• Relatively easy
• ILO Core LS
• Corporate Codes
Ø Ch. 19 - Labour
Ø Ch. 28 - Dispute Settlement
17
CASE STUDIES:
SOME DIFFERENT STRATEGIES WITHIN TRADE DEALS
18
WHAT IS NEXT FOR CANADA?
• Europe-based
• Code based on ILO Core LS+
• “Clean” Label
• Signed up many large firms
• Foundation to audit and monitor
THE ETHICAL TRADING INITIATIVE
International Buyers
26
LABOUR RELATIONS IN THE GLOBAL
ECONOMY
Garment Factories
International Buyers
27
BANGLADESH “ACCORD”
Garment Factories
Bangladesh
Accord on Fire
& Building
Safety
2 Global
Union
Federations
8 Domestic
unions
4 NGOs 28
International Buyers
PROGRAMME STAKEHOLDERS
Government
(PAC)
International
Better Work Buyers
Country
Programme
Workers/
Unions Manufacturers
(PAC)
(PAC)
Apply
remedies
Report
Monitor
compliance
Set
Standards
CONCLUSIONS FROM BW DATA
• Claims based on negligence, battery, false imprisonment, • Claims based on violations of customary international
etc. law/fundamental human rights
• Many examples in UK and EU member state courts, • Slavery, forced labour, torture, “cruel, inhumane and
including Vedanta (UKSC) degrading treatment”
• Canadian examples • Cases in United States and Canada, notably Nevsun in
• Das v. George Weston Limited, 2018 ONCA 1053 (CanLII) Canada
[Lawsuit against Loblaws for Rana Plaza]
• Garcia v. Tahoe Resources Inc., 2017 BCCA 39 (CanLII)
• Advantages: uses established law • Advantages: applicable law is the same everywhere,
recognizes unique nature of harms
• Disadvantages: applicable law will usually be law of 36
Chemical
Freudenberg 27,500 Germany ICEM 2000
Industry
Hochtief 37,000 Germany Construction IFBWW 2000
Carrefour 383,000 France Retail Industry UNI 2001
Chiquita 26,000 USA Agriculture IUF 2001
Source: www.global-unions.org
WAY FORWARD: DUE DILIGENCE
Voluntary Mandatory
International Domestic
Evolution of Domestic Labour Regulation
Voluntary Mandatory
International Domestic
ILO’s Approach to Labour Regulation
Voluntary Mandatory
Evolution of Public-Private Labour Regulation
Voluntary
International
Domestic
Mandatory