Archive for March, 2009

31
Mar

Changes at the IMF: Window dressing or the change we need?

Tim Newman, Campaigns Assistant, International Labor Rights Forum

As finance ministers from the G-20 nations prepare to meet in London, reports are emerging that 425321 Western nations are ready to accept some proposals for an increase in power for developing countries in the International Monetary Fund (IMF).  The Washington Post stated this morning that "the big winner will be the developing world, with the United States, Europe and Japan offering China, India, Brazil and other emerging nations unprecedented new influence in global financial decisions."  The notion that industrialized nations currently holding sway in the IMF have to ability to "offer" developing countries a voice in the lending policies that deeply affect their economies highlights some of the power imbalances within international financial institutions -- it also brings to mind Brazilian President Luiz Inacio Lula da Silva's controversial comments last week about the global economic crisis.

The issue of representation in the decision-making bodies at the IMF is a real concern.  Currently, Europe holds a third of the chairs in the executive board and continues to follow the "tradition" of filling the managing director position with a European while the US has veto power at the IMF due to its large voting share.  The power structure at the IMF, and other international institutions, needs to be changed, but the bigger question is how will these changes can result in a qualitative shift that promotes policies that support poor and working people globally?

As Walden Bello writes of many of the international financial institutions:

Among the mantras they thus legitimized were that capital controls were bad for developing economies; short-selling, or speculating on the movement of borrowed stocks, was a legitimate market operation; and derivatives — or securities that allow betting on the movements of an underlying asset — "perfected" the market. The implicit recommendation of their inaction was that the best way to regulate the market was to leave it to market players, who had developed sophisticated but allegedly reliable models of "risk assessment."

In addition to encouraging some of the policies that contributed to the economic crisis, IMF conditions on loans to many developing countries have had devastating impacts on poor and working people.  For example, ILRF did this report that explains how loans from the IMF to Cote d'Ivoire required the country to adopt policies that lowered labor standards and increased child labor in the cocoa industry.  The International Trade Union Confederation (ITUC) also just released a new report about how the policies of multinational corporations as well as the IMF have contributed to the global food crisis as well as lower working and living standards for agricultural workers globally.

Just last week, the IMF announced some changes in its conditionality policies on loans, the changes are only a small step in the right direction.

So, while changes in representation and the power structure at the IMF are important, there is an Failworld urgent need to change the actual policies of the IMF.  It is crucial that the G-20 seriously examine the proposals put forth by the ITUC as a starting point for designing an economic recovery that supports workers globally.  The Decent Work, Decent Life campaign put out a similar list of recommendations.  They articulated the challenge very well by stating, "The crisis must provide the trigger for a wholesale reform of the global economic order. As such it could be a turning point for the goal of achieving sustainable development and social justice. The central objectives of a new economic architecture should be shared prosperity with decent jobs and income for all."  Meanwhile, 35,000 people marched over the weekend in London to call on the G-20 to create a global economy "based on fair distribution of wealth, decent jobs for all and a low carbon future."  Will the G-20 be putting people first this week?

31
Mar

UK: Sacked workers occupy car factory

LabourStart headline - Source: BBC
31
Mar

China: The way forward for trade unions and workers in China: A new research report from CLB

LabourStart headline - Source: China Labour Bulletin
30
Mar

Iraq: Update on Iraqi teachers’ struggle

LabourStart headline - Source: ITU
30
Mar

New Zealand: Help stop Air NZ strike-breaking

LabourStart headline - Source: EPMU
29
Mar

USA: Help us raise $25,000 to pass Employee Free Choice Act: Fight back against the lies of corporate-funded anti-union, anti-worker groups

LabourStart headline - Source: American Rights at Work
28
Mar

UK: Bankers told keep low profile as public anger rises

LabourStart headline - Source: Reuters
27
Mar

Triangle Shirtwaist Factory Fire 98th Year Anniversary

Trina Tocco, Deputy Director, International Labor Rights Forum

March 25th was the 98th anniversary of the unforgettable Triangle Shirtwaist factory fire which is often framed as one of the key events that resulted in extensive changes to U.S. law and enforcement in garment factories.  This fire also helped to build the International Ladies' Garment Workers' Union which is known today as UNITE.

The summary of this important event is that 148 people died in 1911 from this disaster because the fire exits were locked.  The owners were able to make it up to the roof and ended up surviving.  This was the 2nd major disaster in New York City's history.

This is a great photo montage on YouTube

Another video that shares the stories of one of the women that survived the fire is available at http://stevenlathamproductions.com/video/3miracles.html

One thing that angers me the most about this fire is the fact that there are still cases of fire exits being locked in garment factories in operation right now.  In 2006, there was a fire at KTS Textile Mills in Bangladesh where over 50 workers died and many others were injured.  Another factory in Bangladesh collapsed in 2005 with close to 100 deaths as a result because the factory had been constructed on a swamp and hadn't even bothered to get government approval before building the factory and beginning operations.

As stated in a Daily Star article last year, there are five recent cases of fires in Bangladesh, all of which could have been prevented!

* 91 killed in a fire in KTS Textile Mill, Chittagong, February 23, 2006. At least 500 workers were inside the mill when the fire broke out. Most of the survivors had to jump from windows as the only exit from the factory was reportedly locked when the fire broke out late on a Thursday night. No representatives of the KTS Textile Mills were available for comment. Most of the victims were women, trapped by the flames or suffocated from smoke inhalation. The fire might have been caused by an electrical short circuit. The explosion of a boiler escalated the blaze. The fire had spread quickly through the building because of stacks of yarn piled up on the floors.

* On May 3rd 2004, nine women were trampled to death and 50 others injured when they ran for their lives after a false fire alarm at Misco Super Market, Dhaka. 3,000 to 5,000 workers from five garment factories jam-packed in the Misco Supermarket complex in Dhaka, Bangladesh. While some of the workers exited through the fire escapes, most workers took the main stairway to the front gate of the building, where they found the gate locked

* On the morning of August 8, 2001, in Dhaka's Mirpur area, at 9 am, a worker at Mico Sweater Ltd., on the seventh floor of the building, sounded the alarm after seeing flames shooting from the electric circuit board. Workers from five different units converged on the stairs, but found the single exit locked and the security guard absent. In the resulting stampede, twenty four workers died and over one hundred were injured.

* March, 2006, three female workers were killed and 50 were injured in the Saiem Fashion Ltd fire and the subsequent stampede to escape the burning building. The only exit to the factory was deliberately blocked by boxes

* 26 killed in a fire in a garments fire in Kafrul, August 01, 2001

* On 6 March, 2006, 3 more garment workers were killed in a stampede from a fire panic at a Gazipur garment factory, near Dhaka.

* A fire occurred on November 25, 2000 at the Chowdhury Knitwear and Garments Ltd factory in Narsinghdi. Some 600 workers who were working at the time surged towards the single narrow staircase, but found both the main gate and the emergency gates locked. Most of the 46 victims died of suffocation or were crushed to death in the panic.


This anniversary of the Triangle Shirtwaist Factory fire is a time for us to reflect on the past and recommit ourselves to making sure that whether its in the U.S. or Bangladesh, that NOT ONE MORE WORKER dies in a preventable fire.

27
Mar

UK: Thousands expected to march peacefully for jobs, justice and climate ahead of G20 summit

LabourStart headline - Source: TUC
26
Mar

The G20 Summit and Unions

Tim Newman, Campaigns Assistant, International Labor Rights Forum

Next week, representatives of G-20 governments will be meeting in London to discuss strategies for addressing the global economic crisis.  As working people around the world are facing the LondonSummit-resized consequences of this crisis, unions are responding with their own proposals for the G-20.

This Monday, the International Trade Union Confederation (ITUC) released a "London Declaration" that focuses on five key policy recommendations for the G-20:

  • a coordinated international recovery and sustainable growth plan to create jobs and ensure public investment;
  • nationalization of insolvent banks and new financial regulations;
  • action to combat the risk of wage deflation and reverse decades of increasing inequality;
  • far-reaching action on climate change;
  • a new international legal framework to regulate the global economy along with reform of the global financial and economic institutions (IMF, World Bank, OECD, WTO).

You can read the full document online here.  The introduction to the declaration states,

Workers around the world, who are losing their jobs and their homes, are the innocent victims of this crisis: a crisis precipitated by greed and incompetence in the financial sector, but which is underpinned by the policies of privatisation, liberalisation and labour market deregulation of recent decades. The effects of these policies – stagnating wages, cuts in social protection, erosion of workers’ rights, increased precarious work, and financialisation – have combined to increase inequality and vulnerability...

When our economies begin to recover there can be no return to ‘business as usual’. The crisis must mark the end of an ideology of unfettered financial markets, where self-regulation has been exposed as a fraud and greed has overridden rational judgement to the detriment of the real economy. A new national and global regulatory architecture needs to be built, which restores financial markets to their primary function of ensuring stable and cost-effective financing of productive investment in the real economy. Beyond this, there is a need to establish a new model of economic development that is economically efficient, socially just and environmentally sustainable. It must bring to an end the policies that have generated massive inequality over the past two decades.

While all of ITUC's policy recommendations are very important, the third recommendation definitely requires attention.  As the full declaration explains, wage deflation and increasing inequality can be reversed in part "by extending the coverage of collective bargaining and strengthening wage setting institutions so as to establish a decent floor in labour markets." 

Here in the US, a report released this week by Government Accountability Office showed that the Department of Labor's Wage and Hour Division is failing in its role of protecting workers from wage theft, child labor and other abuses.  With a new Secretary of Labor, it is vital that the government strictly enforce the labor laws we already have on the books.  We also need to take additional steps to ensure that workers can use collective bargaining agreements to improve wages and working conditions.  That means passing the Employee Free Choice Act (EFCA) as a first step.  EFCA is an important part of ensuring that US workers are able to exercise the freedom of association and the right to collective bargaining.

At the G20 summit in London, it is also essential that world leaders support alternative systems and Egg_a_Politician policies that can improve the lives of the workers facing poverty.  Divine Chocolate, a pioneering Fair Trade chocolate company co-owned by cocoa farmers in Ghana, has shown that paying a fair price to farmers does more than create a sustainable future for a few farmers -- it is a model that can be replicated on a mass scale.  Divine set up a new website where you can "Egg a Politician" -- meaning that you can toss a chocolate egg at one of the G20 leaders and then send them a message telling them to keep fair trade on the agenda.

Unfortunately, I fear that the representatives at the G-20 will not be promoting policies focused on reducing inequality, protecting workers' rights and promoting fair trade.  Labor rights advocates globally will have to keep the pressure on governments to support better policies and work together to raise standards for workers everywhere.  As one example, workers all across the Americas are participating in an upcoming Continental Day of Action against the CrisisHow do you think unions and worker organizations around the world can work together to address the impact of the global economic crisis on workers?




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