Social Standards

„Labor standards are simply the rules that govern how people are treated in a working environment. They come in a variety of forms and originate at the local, national, and international levels.“  (ADB 2006, p.10)

 

The discussion around working conditions and labor rights emerged by the end of the 19th century during the industrialization process, in response to the exploitation of workers in industry factories. In order to achieve international consensus on socially acceptable employment relations, the International Labour Organization (ILO) was established in 1919. Its major task is to adopt internationally agreed labor standards which are an increasingly important component of the globalized economy for ensuring social justice. The value of these international labor standards as a means to improve the conditions of employment and labor worldwide is generally accepted by the international community through the ratification of various international conventions and recommendations, such as the UN Universal Declaration of Human Rights in 1948, the Convention on the Rights of the Child in 1989, the Declaration of the 1995 Copenhagen Summit on Social Development and the ILO Declaration on the Fundamental Principles and Rights at Work in 1998. This latter declaration reflects the eight most important ILO conventions (No. 29, 87, 98, 100, 105, 111, 138, 182) and defines the fundamental workers’ rights which are now known as the core labor standards. All 181 member countries of the ILO thus committed themselves to observe, promote and realize the following rights:

(1)    Freedom of association and the effective recognition of the right to collective bargaining;

(2)    The elimination of all forms of forced or compulsory labor;

(3)    The effective abolition of child labor; and

(4)    The elimination of discrimination in respect of employment and occupation.

 

These core or fundamental labor standards focus on important human rights and include basic union rights, equal opportunity in employment, freedom from forced labor, and the abolition of child labor. Whereas these core rights mainly receive prevailing international acceptance, some issues such as the freedom of association as well as other standards related to actual labor market outcomes and working conditions, like minimum wages or safety and health standards in the workplace, are highly controversial.

The ILO conventions have not been ratified by all members and the ILO does not entail an enforcement mechanism, but supervises the ratification and implementation processes at the national level of each member state. Other international guidelines and initiatives based upon the core labor standards set out by the ILO include the OECD Guidelines on Multinational Enterprises which entail a section on labor rights and the UN Global Compact.

At the national level labor standards are laid down as laws or regulations which are mandatory for national production sides and sanctions apply in the case of non-compliance. These encompass regulations on employment, including regulations on minimum legal wages, safety regulations and compulsory social insurances, as well as standards on the negotiation of labor contracts, such as collective bargaining agreements (on behalf of the workforce by trade unions and staff councils), fixing of wages and working conditions under the resulting agreements. Many of these regulations are process standards defining the conduct procedure towards employees.

Although there is global consensus on the core labor standards, the internationalization of production and thus the movement of labor intensive manufacturing from developed to developing countries (especially in the toy, garment and electronics production) in order to reduce labor costs, has amplified critical voices who argue that the “race to the bottom” is associated with deteriorating standards of work. This development goes hand in hand with a changing role of the state and the rising power of multinational corporations (MNCs) and therefore MNCs are increasingly seen as having a corporate social responsibility towards their employees. At the national political level, governments may lack the capacity to effectively control the regulations at hand or there may be concerns to monitor regulations because of the fear of losing competitiveness. Growing emphasis is laid on voluntary codes of conduct as a means of regulating the labor standards found within the supply chains of MNCs. Such codes of conduct are mostly based on core labor standards but include provisions on safety, health, working hours, and working conditions. The Business Social Compliance Initiative (BSCI) for example is a union of companies that have agreed on common codes of conduct. Other private voluntary social standard initiatives that are generic (non-sector specific) include the planned social responsibility guidelines ISO 26000 and the Social Accountability International (SAI). SAI sets up social standards based on regulations and voluntary codes (SA 8000) and certifies and controls their compliance. Further private standard initiatives include provisions on social aspects, for example environmental certification schemes, Fair Trade or UTZ Certified.

 

References:

ADB & ILO (2006). The core Labour Standards Handbook. Manila, Philippines: Asian Development Bank (ADB) and International Labour Organisation (ILO).

Bakvis, P. & McCoy, M. (2008): Core Labour Standards And international Organisations: what Inroads Has Labour Made? (Briefing Paper No. 6/2008). Bonn, Germany: Friedrich-Ebert-Stiftung.

Busse, M. (2002). Do Labor Standards Affect Comparative Advantage in Developing Countries?. World Development, 30 (11), 1921-1932.

Elias, J. (2003). International labour standards, codes of conduct and gender issues: A review of recent debates and controversies. Non-State Actors and International Law, 3 (2-3), 283-301.

ILO (1998). ILO Declaration on Fundamental Principles and Rights at Work, 86th Session, Geneva, June 1998.

ILO (2004). A Fair Globalization: Creating opportunities for all. Geneva: International Labour Organisation (ILO).

Kuruvilla, S. & Verma, A. (2006). International Labor Standards, Soft Regulation, and National Government Role. Journal of Industrial Relations, 48 (1), 41-58.

Reichert, T. (2004). Social Standards in the Global Economy. Eschborn, Germany: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH.

Riisgaard, L. (2009). Global Value Chains, Labor Organization and Private Social Standards: Lessons from East African Cut Flower Industries. World Development, 37 (2), 326-340.

 

Further information:

• ILO: http://www.ilo.org

Private Sector

Print this pageEmail this page