MALAWI CONGRESS OF TRADE UNIONS
PROPOSED PROGRAMME OF EVENTS
09: 30hrs
09:45hrs
Arrival of invited guests
Singing of solidarity Song in FULL
10:00hrs
Introductions
Welcome Remarks by MCTU Deputy secretary General
Reading of the ITUC General Secretary Speech for the day (DSG)
Speech by Regional Labour Officer (s) on Decent work Agenda
Speech by GESP Executive Director on Gender and Harassment
Speech by MCTU Council member on Hiv and aids
Speech by Employers Consultative Association of Malawi on theme
Launch Message by MCTU President on this years theme and activities
Question and answer session
Concluding remarks by MCTU President and Deputy Secretary General
11:20hrs
12:00hrs
REFRESHMENTS and DEPARTURES
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MCTU/ITUC Programme on World Day for Decent work 7th October 2008
MALAWI CONGRESS OF TRADE UNIONS
SOLIDARITY FOREVER
WHEN THE UNION’S INSPIRATION THROUGH THE WORKERS BLOOD
SHALL RUN. THERE CAN BE NO POWER GREATER ANYWHERE
BENEATH THE SUN. YET WHAT FORCE ON EARTH IS WEAKER THAN
THE FEEBLE STRENGHT OF ONE.
FOR THE UNION MAKES US STRONG.
SOLIDARITY FOREVER, SOLIDARITY FOREVER,
SOLIDARITY FOREVR
FOR THE UNION MAKES US STRONG
IT IS WE WHO PLOUGHED THE PRAIRIES, BUILT THE CITIES WHERE
THEY TRADE. DUG THE MINES AND BUILT THE WORKSHOPS,
ENDLESS MILES OF RAILROAD LAID. NOW WE STAND OUTCAST AND
STARVING MID THE WONDERS WE HAVE MADE.
BUT THE UNION MAKES US STRONG
THEY HAVE TAKEN UNTOLD MILLIONS THAT THEY NEVER TOILED
TO EARN. BUT WITHOUT OUR BRAIN AND MUSCLE NOT A SINGLE
WHEEL CAN TURN. WE CAN BREAK THEIR HAUGHTY POWER, GAIN
OUR FREEDOM WHEN WE LEARN.
THAT THE UNION MAKES US STRONG
IN OUR HANDS IS PLACED A POWER GREATER THAN THEIR
HOARDED GOLD. GREATER THAN THE MIGHT OF ATOMS MAGNIFIED
A THOUSANDFOLD. WE CAN BRING TO BIRTH A NEW WORLD FROM
THE ASHES OF THE OLD. FOR THE UNION MAKES US STRONG.
REPRINTED WITH KIND PERMISSION FROM THE AUSTRIAN TRADE UNION FEDERATION
BY mctu
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MCTU/ITUC Programme on World Day for Decent work 7th October 2008
MALAWI CONGRESS OF TRADE UNIONS
AN MCTU ISSUES PAPER ON THE DECENT WORK AGENDA FOR PRESENTATION DURING
THIS YEARS WORDL DAY FOR DECENT WORK
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It is now widely acknowledged that while growth is necessary for poverty
reduction (eradication), it is however an insufficient condition.
The quality, rather than quantum of growth is essential for sustainable poverty
reduction.
Employment, and in particular, decent work, is the nexus/link between growth
and poverty reduction/eradication.
Hence the focus is now increasingly on achieving pro-poor, employmentintensive growth in order to expand the opportunities for people to find
productive work and earn decent livelihoods.
Decent work is the means through which the benefits of growth can be shared
more widely to achieve more inclusive and equitable outcomes.
Thus, decent work deficits are at the core of poverty, and decent work is
central to its eradication.
At the 89th International Labour Conference in June 1999, the ILO launched its Decent
Work agenda, centered around four strategic objectives: [3]
1 To achieve fundamental principles and rights at work
2 To promote greater employment and income opportunities for both women and men
3 To aid in extending social protection
4 To promote social dialogue
The Essence of Decent Work
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Decent work entails productive work where rights are protected, generating
adequate income, with adequate social protection.
It also implies adequate work – where all have full access to income-generating
opportunities.
This means employment, income and social protection are achieved without
undermining workers’ rights and social standards.
Decent work has 6 dimensions, namely:
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Opportunity to work.
Productive work.
Freedom at work.
Equality at work.
Security at work.
Dignity at work.
MCTU/ITUC Programme on World Day for Decent work 7th October 2008
MALAWI CONGRESS OF TRADE UNIONS
Key Challenges for Employment
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Globalisation resulted in further marginalisation of Africa in world trade: Share
of exports in African regional groupings declined from 1.6% in 1970 to 0.4% by
2003 in COMESA; from 0.3% to 0.1% in EAC; 1.1% to 0.5% in ECOWAS; & 2.2%
to 0.7% in SADC.
ILO data suggests the employment-intensity of growth has declined.
New and insecure forms of employment characterised by casualisation of
employment.
Informalisation of work and the economy, 90% of new jobs in Africa are in the
informal economy.
Cutback in resources (both human & financial).
Race to the bottom, incentives-based competition in EPZs.
Growing inequality between and within countries.
Immiserising growth (jobless, ruthless – with growing inequality, rootless – that
withers cultural identity, voiceless – without democratic space & futureless –
that undermines the prospects for the future).
Trade and Employment
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For too long, the employment impacts of trade and trade liberalisation were
ignored – assuming the net impact was positive.
Trade liberalisation is not automatically beneficial for sustainable development
and employment creation – this only happens under certain conditions.
Great changes occurred in the way world trade is organised and hence the need
to explore the relationship between trade and employment.
Trade has led to the relocation of companies and workers.
Production methods and the international division of labour have changed
substantially.
The opening up of trade boosts certain sectors and certain countries.
It can also destroy thousands of jobs in more fragile and less competitive
economies.
Now more widely acknowledgement that trade leads to substantial employment
losses in both the short and long terms.
Trade and investment can also lock countries into certain production processes
and thus certain types of employment, which lack the capacity to lift large
groups of the population out of poverty.
Too little attention is given to trade policies required to create decent and
productive employment.
On the contrary, trade policies that prevent the creation of decent and
productive employment are widely pursued.
Trade and trade liberalisation have increased the wage gap in many countries.
Income inequality has increased both within and between countries.
MCTU/ITUC Programme on World Day for Decent work 7th October 2008
MALAWI CONGRESS OF TRADE UNIONS
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The effect of more open economies is to reduce the bargaining power of both
trade unions and governments.
Most African countries are disadvantaged in terms of access to information,
capital, technology and productive capacities: hence they need to use trade and
other policies to build competitive and productive industries and services.
The push for trade liberalisation from developed countries results in highly
detrimental trade relationships for developing country economies with adverse
effects for the creation of decent jobs.
Developed countries such as the USA and Europe are aggressively pushing for
increased market access through trade agreements under the guise of achieving
WTO-compatible reciprocal market access provisions.
They are insisting on the rejected Singapore issues such as investment,
competition, government procurement, and intellectual property in trade
negotiations.
There is therefore need to promote decent work and core labour standards in
trade agreements.
Trade has to promote respect for labour standards, facilitate the creation of
productive employment, raise the level of social protection and enhance social
dialogue.
Provisions in trade agreements should require respect for labour standards
through positive incentives, built-in projects and development cooperation,
particularly in the areas of labour legislation, inspection and enforcement.
Both passive (income support during periods of unemployment) and active
(policies that attempt to facilitate re-employment) labour market interventions
should be promoted to assist workers that lose their jobs.
For instance, one of the demands of ACP countries in the current trade
negotiations with the EU was for specific trade adjustment assistance to
displaced workers (see also the joint ILO/WTO study).
Productive employment creation should be at the core of trade and trade
agreements: this requires the design of labour market policies, fiscal policies,
technology, education and trade policies in a coordinated and coherent way –
mainstreaming employment issues.
Foreign Direct Investment (FDI) in Africa
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FDI’s role in economic development has continued to rise - in the past two
decades, the rate of growth of FDI inflows exceeded that of global GDP, exports
and domestic investment
FDI inflows exceeded US$1.3 trillion in 2006
The number of TNCs increased significantly to 78,000 parent companies with
780,000 foreign affiliates in 2006 (UNCTAD, 2008)
Thus, through their increasingly integrated international production systems,
TNCs are one of the main drivers of economic integration in the world, and
hence a major force behind globalisation.
MCTU/ITUC Programme on World Day for Decent work 7th October 2008
MALAWI CONGRESS OF TRADE UNIONS
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Inward FDI to Africa increased during the past ten years.
From US$2.4 billion in 1985 to US$36 billion in 2006.
Inward FDI stock in the African region increased from US$40 billion in 1980 to
US$315 billion by 2006.
Most of the inflows were in the primary and services sectors due the existence of
vast natural resources, and privatisation schemes.
The recent surge of FDI inflows to the African region was a result of the upward
spiral in commodity prices and the more positive climate for investments in the
region.
However, the region’s share in global FDI declined as flows to the other regions
grew faster.
Africa’s share of global FDI inflows declined from 9.5% in 1970, stagnating at 3%
between 2000 and 2006.
The emerging trends with respect to FDI flows in Africa are:
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FDI inflows have surged in the last decade.
Only a few African countries have been the main recipients, chiefly, South Africa,
Nigeria, Egypt, Morocco, and Tunisia, with the top 10 countries receiving 90% of
the region’s inflows in 2006.
The region’s share in global FDI flows declined from 9.5% in 1970, stagnating at
about 3% between 2000 and 2006.
Much of the inward FDIs are going into the primary sector.
Developed countries are the main source of the inward FDI stock.
TNCs from Asia (mainly India and Malaysia) and within Africa (mainly South
Africa) are emerging as investors on the continent.
The World Bank now admits that the openness of capital markets was a key
source of fragility. Countries that successfully opened their economies have done
so following a striking variety of policy approaches. They have opened up
different sectors at different speeds (Bangladesh, India).
There is need to recognise country specificities, and more economic analysis and
rigour than does a formulaic approach to policy making. During the 1980s and
1990s, China’s approach was to “cross the stream by groping for stones,” (2005:
15).
Privatisation is often seen as necessary to promote FDI inflows. Some see the
limited privatisation that has taken place in Sub-Saharan Africa as offering great
scope for using privatisation to attract investment (UNCTAD, 2008.
After more than two decades of privatisation experience, the pendulum has
swung to a more cautious approach following widespread failures, especially
with respect to infrastructure (see World Bank, 2005: Economic Growth in the
1990s: Learning from a Decade of Reform, The World Bank, Washington D.C. ).
The UNDP has found that privatization of basic utilities such as water, electricity,
sanitation etc. has undermined MDGs.
MCTU/ITUC Programme on World Day for Decent work 7th October 2008
MALAWI CONGRESS OF TRADE UNIONS
WAY FORWARD
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Re-emergence of social issues, fairness & justice (focus on eradication of poverty - see MDGs,
pro-poor growth concept, ILO’s Report on A Fair Globalisation of 2004).
Focus on flexibility without undermining the need for social protection (regulated flexibility).
Realisation that a minimum level of social protection is necessary, hence the need for decent
work for all.
Realisation that social concerns should be integrated with the economic ones consciously.
Realisation that democratic participation (social dialogue) is vital and enhances win-win
outcomes.
Promotion of the ratification and implementation of the Fundamental Principles and Rights at
Work based on the 8 core Conventions.
Balanced Bilateral and Multilateral Trade and Investment Agreements.
Regional Labour Frameworks that incorporate the ILO’s Declaration on MNEs of 1977 (latest
revision in 2006), e.g. the Charter of Fundamental Social Rights in SADC of 2003.
Emergence of initiatives to promote Social Conduct: the UN’s Global Compact, a voluntary
initiative for businesses to align their operations with universally accepted principles of human
rights, labour and environment and corruption; the OECD Guidelines; International Framework
Agreements and Global Works Councils between Global Union Federations and some MNEs.
Coordination and Harmonisation of Investment Policies.
A People-driven and Humane Development Strategy, with a human rights approach to
development (see the Alternatives to Neo-liberalism in Southern Africa – ANSA book, 2007).
For unions to be effective and be taken seriously requires that they:
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Mobilise workers to create strong unions with voice at all levels: shop-floor, sectoral, national,
regional, continental and global.
Are well organised, professional and democratic at all levels: shop-floor, sectoral, national,
regional, continental & global (including Global Union Federations.
Develop effective education & training programmes.
Are well grounded through research & analysis.
Have effective advocacy, engagement and networking capacities.
Develop coherent alternative positions based on their principles and values.
MCTU/ITUC Programme on World Day for Decent work 7th October 2008