Conference (ILC)? Manuela Tomei Conditions of Work and Equality - - PowerPoint PPT Presentation

Global supply chains: Why a topic at the International Labour Conference (ILC)?

Manuela Tomei Conditions of Work and Equality Department (WORKQUALITY), ILO

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What are global supply chains?

Organization of production and delivery of a range of goods and services by lead firms through complex chains of suppliers and sub- contractors that span many different countries.

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Global supply chains range within 2 main types:

• 1. Foreign Direct Investment (FDI) by MNEs in

wholly-owned subsidiaries or joint ventures

• 2. International sourcing: lead firms engage with a

“cascade” of suppliers and sub-contracted firms with which they have no direct contractual relation, except for first-tier suppliers and/or intermediaries

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FDI inflows by region

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Global supply chains and employment  Employment opportunities in developing countries incl. for women, youth and migrants  Scale of employment in GSCs difficult to estimate but substantive and growing  Quality of employment is a concern, esp. wages, OSH, working time and non- standard forms of employment (NSFE)

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Why is ILO involved?

• C.177 on home-based work (1997);

Social Justice Declaration (2008)

• Value-based approach to development
• Mandate and expertise in the world of

work

• Tripartite structure
• Convening power to bring together main

actors required to bridge governance gaps

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Why is ILO involved?

• UNCTAD World Investment Report 2013
• WTO Global Value Chains in a Changing World 2013
• OECD, WTO and UNCTAD for G20 in 2013
• Extensive research on global value chains and global

supply chains

• BUT: first time quality of employment discussed at

global level

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Types of governance and related challenges

• Public governance
• Private governance
• Social partners’ initiatives
• Multilateral initiatives

Challenges  Regulatory space is crowded and confusing  Lack of coherence and coordination  Limits on extra-territorial application of legislation

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Workers’ views

 Concerns about downwards pressure on conditions

• f work as a result of competition among suppliers

 Address global governance gap to ensure global floor of rights at work  Tripartite constituents to become drivers of change to achieve decent work in GSCs  Possible gaps in International Labour Standards and the MNE Declaration

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Employers’ views

 GSCs stimulate growth/decent work and are proven means of development  Workers in GSCs enjoy better conditions than those outside

• GSCs. Pushing for DW for those already better off creates 2-

tiered system  International buyers and MNEs do not control/coordinate GSCs: suppliers are independent legal entities governed by national legislation  Central problem is lack of enforcement of national legislation  The primary duty to protect/enforce should not be shifted from States to companies

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Governments’ views

 GSCs contribute to sustainable development and stimulate growth and employment  DW challenges exist particularly in production/supplier countries  Governance gaps at the national, sectoral, regional and global level: close through ILS, national legislation and enforcement  Workplace compliance is primary duty State; GVTs often struggle with enforcement.  Level playing field - avoid protectionism.  Business responsibility: due diligence  Inadequate national legislation concerning NSFE, informality,

• utsourcing, subcontracting and labour migration

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Comprehensive ILO approach

 International labour standards  Closing governance gaps  Inclusive and effective social dialogue  Cross-border social dialogue  Capacity building and development cooperation  Harmonizing processes and sector-level approaches  Labour Administration & Inspection  Knowledge and statistics  Partnerships

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