From poverty to power - Oxfam-Québec
From poverty to power - Oxfam-Québec From poverty to power - Oxfam-Québec
3 POVERTY AND WEALTH THE CHANGING WORLD OF WORKvast majority get no maternity or health coverage – but80 per cent fear dismissal if they complain.• In China’s Guangdong province, one of the world’s fastestgrowingindustrial areas, young women face 150 hours ofovertime each month in the garment factories. They havelittle option but to comply, given that 60 per cent have nowritten contract and 90 per cent have no access to socialinsurance, should they be fired. 113DOING BUSINESS THE WORLD BANK WAYThe International Monetary Fund (IMF) and the World Bank havebeen among the most determined proponents of ‘flexibilisation’. In2002, the World Bank recommended ‘eliminating labour-relatedrigidities’ in Mexico, including ‘the current system of severancepayments; collective bargaining and industry-binding contracts…restrictions to temporary, fixed-term, and apprenticeship contracts’.In 2001, the IMF ‘viewed favourably certain aspects of the [Chileangovernment’s] proposal (such as reducing restrictions on workschedules and allowing part-time contracts... )’. However, it ‘expressedconcern over other elements (such as allowing collective negotiationsat the inter-firm level...) which would reduce labour market flexibility’.114Since 2003, the most important source of pressure from the Bankhas been the labour section of its annual Doing Business publication.The labour market flexibility indicators of this section are often usedin World Bank and IMF country-level strategy documents to forcecountries to do away with various kinds of workers’ protection. Forexample, a recent World Bank Economic Memorandum to Colombiademanded that the government make hiring and firing decisionsmore flexible in order to improve its Doing Business indicators, eventhough it is uncertain whether this will have a positive economicimpact. The World Bank also made compliance a condition for loansto Colombia.The 2008 edition of Doing Business declared the Marshall Islandsto be the world’s ‘Best Performer’ for ‘ease of employing workers’,displacing the previous champion, Palau. What the Marshall Islands155
FROM POVERTY TO POWERand Palau have in common is that they are tiny Pacific island nationsthat have no labour code and are not members of the ILO. 115Infringing workers’ rights and limiting their compensation isincreasingly common in developed countries as well. For a short timein history, thanks largely to a vocal trade union movement, a fewprivileged workers won the right to be compensated for most of thecosts of maintaining the labour force and of caring for past and futureworkers: health care,a monthly salary (paying for rest time at weekends),compensation for injury and old age, and paid leave for illness, maternity/paternity, breast-feeding, funerals, religious events, and holidays. Insome cases, employers and the state also paid for training/retraining,job search, or removal costs when workers were transferred oreconomic restructuring took place. In both developed and developingcountries, that era now risks being consigned to history, degrading thequality of work and the lives of workers.Flexible labour policies entail costs to society in terms of the healthand education of future generations of workers, and even in the qualityand reliability of production. Without a stable income or access tosocial protection, workers, particularly women workers, are trappedin poverty and are vulnerable to shocks. When in addition the statecuts back social spending, the accumulated hidden costs (ill health,lack of training opportunities, short working life spans, and so on)become overwhelming. The result: greater inequality.A study of women factory workers in Lesotho, for example, foundthat long and inflexible work hours, between ten and 12 hours a dayduring the week and up to ten hours a day at weekends, constituted amajor obstacle to mothers caring for their children. 116 During periodswhen hours were even longer, women reported never seeing theirchildren awake. They were allowed no time off to care for, or get medicalcare for their children, and their wages were docked when they did.Some women therefore avoided both pre-natal and post-natal clinics,putting their own health at risk as well as that of their children.For any single country, the flexible labour policies encouragedby international financial institutions may seem necessary to staycompetitive with other cheap and ‘flexible’countries. But the advice to‘flexibilise’ has been given simultaneously to many developing156
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FROM POVERTY TO POWERand Palau have in common is that they are tiny Pacific island nationsthat have no labour code and are not members of the ILO. 115Infringing workers’ rights and limiting their compensation isincreasingly common in developed countries as well. For a short timein his<strong>to</strong>ry, thanks largely <strong>to</strong> a vocal trade union movement, a fewprivileged workers won the right <strong>to</strong> be compensated for most of thecosts of maintaining the labour force and of caring for past and futureworkers: health care,a monthly salary (paying for rest time at weekends),compensation for injury and old age, and paid leave for illness, maternity/paternity, breast-feeding, funerals, religious events, and holidays. Insome cases, employers and the state also paid for training/retraining,job search, or removal costs when workers were transferred oreconomic restructuring <strong>to</strong>ok place. In both developed and developingcountries, that era now risks being consigned <strong>to</strong> his<strong>to</strong>ry, degrading thequality of work and the lives of workers.Flexible labour policies entail costs <strong>to</strong> society in terms of the healthand education of future generations of workers, and even in the qualityand reliability of production. Without a stable income or access <strong>to</strong>social protection, workers, particularly women workers, are trappedin <strong>poverty</strong> and are vulnerable <strong>to</strong> shocks. When in addition the statecuts back social spending, the accumulated hidden costs (ill health,lack of training opportunities, short working life spans, and so on)become overwhelming. The result: greater inequality.A study of women fac<strong>to</strong>ry workers in Lesotho, for example, foundthat long and inflexible work hours, between ten and 12 hours a dayduring the week and up <strong>to</strong> ten hours a day at weekends, constituted amajor obstacle <strong>to</strong> mothers caring for their children. 116 During periodswhen hours were even longer, women reported never seeing theirchildren awake. They were allowed no time off <strong>to</strong> care for, or get medicalcare for their children, and their wages were docked when they did.Some women therefore avoided both pre-natal and post-natal clinics,putting their own health at risk as well as that of their children.For any single country, the flexible labour policies encouragedby international financial institutions may seem necessary <strong>to</strong> staycompetitive with other cheap and ‘flexible’countries. But the advice <strong>to</strong>‘flexibilise’ has been given simultaneously <strong>to</strong> many developing156