Trade Unions, Globalisation and the WTO-Process

Speech Delivered by Klaus Zwickel
President of the International Metalworkers Federation (IMF) and Chairman of the Industrial Trade Union Metal (IG Metall)
Kathmandu, Nepal,

July 28, 2000

1. "Modern Governance in the 21st Century"

Ladies and gentlemen!

A few weeks ago, an international conference of 14 heads of state and government took place in Berlin.

The conference of reform-oriented governments centred on the consideration of "Modern Governance for the 21st Century". Demanded in the closing committee, among others is the following:

"Globalisation must lead to a higher living standard for all and not to a devastating downward spiral at the cost of environment and protection of employees".

"Globalisation with human countenance": so reads the formula of US President, Bill Clinton.

Modern governance does not mean to us, if politics passively gives in to the compulsion of globalisation or puts up with it without will.

Modern governance for us is not that the responsible politics subordinates itself to the boundless economy and determines the market. Modern governance, from our viewpoint, can only mean, if dynamism of globalisation is politically steered up and the consequences socially flanked.

2. Globalisation

Ladies and gentlemen!

Nothing fundamental has changed at dualism between politics and economy.

Applicable also today is the fact that economic aspiration and government bargaining should not be allowed to outmanoeuvre against one another, instead they must remain connected together.

Freedom, justice, democracy, equality: These trade union values and targets allow themselves to be realised neither in a radical market economy nor in an anonymous state bureaucracy in the long run.

Globalisation, opening of labour market and trade liberalisation remain closely together.

They offer the opportunity that many are well off, few very good and the others quite bad. Anyone, who only wants to make the rich countries of the developed regions more richer at the cost of the poor nations, misjudges the possibilities that lie in globalisation.

Anyone, who wants to pay the material well-being and social stability of the industrialised nations with economic under-development and political pressure in developing countries, has forgotten every moral and political credibility.

We know that liberalisation of word market and removal of trade barriers do not lead in self-course to more growth for all. They do not alleviate automatically the downward trend of economic prosperity in countries and among the regions.

It demands social formation and political regulation of the economic dynamics and the international capital network.

A central lever of pressure and the significant instrument for us is the embodiment of labour norms and the standard of environment in world trade.

3. The main labour norms/ trade union rights

Ladies and gentlemen!

We must make clear that the lifting of barriers of merchandise economy neither creates new legitimate areas, nor frees it from complying with social norms, ecological standard and rights of employees.

On the topic of "Social Clauses" and "Labour Norms", there are a number of rough misunderstandings and wrong interpretations, relating neither to the minimal standard during security at work and working hours, nor to the minimum wages that are valid world-wide. The fact is that the internationally-recognised main labour norms are incorporated in the regulation of the global economic system. The agreement on this relates to

• the freedom of unity and its protection,
• the right to unity and the right to collective negotiations,
• the prohibition of discrimination in occupation and job,
• the prohibition of forced labour and
• the eradication of child labour.

Each country that intends to take part in the free world trade must have to secure the right to free trade union activities.

The WTO is an institution, that has made the freedom of markets mandatory in its objectives. Therefore, it must also secure the main labour norms in its member states. Not arbitrarily, but as per the criteria and co-operation of the ILO.

Our objective remains that the ruinous competition between the poorest developing countries comes to an end and the productivity of their work increases.

It would, however, be also unfair to expect a greater commitment in social questions from the governments of developing and threshold countries, if the industrialised countries target at one-sided advantages.

Also the developed countries must make their contribution to fair trade conditions and international equality. Belonging to these are the cancellation of trade distorting subsidies and the removal of custom barriers. A free access to the world market for exports from developing countries must have to be given with a transitory period. The restoration of a stable world economic order would be an additional step in the right direction.

Globalisation and opening up of world markets should be allowed not only to accelerate the economic process, they must also promote democratic development.

The right to form independent trade unions and the collective bargaining of related labour contracts exist only on paper in many countries. The political denial of trade union rights leads to the undermining of rights. An agenda of persecution and suppression of committed trade unionists exist in many countries. The ugly face of globalisation is revealed by the statement given by the IBFG that in 1998

• 1,650 employees were attacked or injured,
• more than 21,000 were dismissed on grounds of their involvement in trade
• union activities, almost 4, 000 were arrested,
• 123 were killed because of their commitment to the rights of employees and that
• in 119 countries partly were brutally repudiated against the internationally
• recognised human rights.

"Globalisation with human countenance" can only materialise, if fundamental rights are finally implemented and agreements honoured.

Therefore, I support the appeal made by Juan Somavia, Director General of the International Labour Organisation (ILO).

"All 175 member states of the UN Organisation must without restrictions and directly respect the fundamental right to the freedom of organisation and assembly".

We can , with the help of increasing economic contacts and the strengthening of trade relationships, accelerate the political pressure on independent trade union activities and press for the consequent compliance of human rights.

4. International Metalworkers' Federation (IMF)

Ladies and gentlemen!

Politics in the global age always leads to less national solutions and opportunities and requires more international co-operation.

With the globalisation of the economies, as well as in the global interlocking, the trade unions, therefore, have to react with stronger internationalisation of their structures.

We must hold discussions to explore as to how we can further develop ourselves into the role of a Global Player.

International campaign on the level of multinational companies must have to be promoted an co-ordinated. We require more counselling of global companies and agreements on world-wide applicable behavioural regulations for the multinational companies. Their transformation and adherence must e. g. have to be implemented by the member trade unions of International Metal Trade Union Federation (IMB) with closer co-ordination and in country-overlapping manner.

We must have to develop a common strategy as to how we can go along with business sales and mergers. We should not ignore the changes of business structures, we will not or cannot also totally stop them.

We must, however, try to restrain the negative impacts on the employees.

5. Europe and the rest of the world

Ladies and gentlemen!

In Europe also, the case can not only occur while extending the markets and dispersing the free trade zone during the eastern extension of the European Union.

To be assessed from our viewpoint are, therefore, not only the standard economic-political statistics or the finance-political aspects for the admission of a country in the EU.

Modifiable for us are:

• the consequent adherence of human rights,
• the independent activity of trade unions in the building up of democratic process,
• the immediate creation of social minimal standard and social conciliation of interests,
• a democratic and functioning jurisdiction of works, as well as a broad participation of employees in the democratic features of a socially- regulated market economy.

These demands apply not only in Europe. They apply to the planned creation of a Free Trade Zone (FTAA) encompassing the whole of America, incorporating a home market with 800 million people in 2005.

These criteria must, however, also count for the Association of Southeast Asian Nation (ASEAN), the Asian-Pacific Economic Co-operation (APEC), The South African Development Council (SADC) or the Organisation of African Unity (OAU). And of course this criteria are also valid for the countries of South Asia.

6. Conclusion ( future questions)

Ladies and gentlemen!

Uncontrolled capital flow and gigantic financial transfers, world-wide operating enterprises, big mergers and the segmentation of labour markets do not strengthen our position, but limit our possibilities of the formation process.

In countries, that find themselves in the transition from the industry to the information society, the trade unions see for themselves that they are exposed to similar problems.

The structures of enterprises change. Old industries lose, new sectors gain significance. Big industry structures disappear, small and medium-sized industries grow up. On the one hand, we experience a gigantic amalgamation and concentration process, on the other, enterprises are battered and small units exist.

During which strong hands and long-standing experiences engraved on the production process before, prudent heads and a permanent re-thinking are required today. Knowledge, information and education are becoming the most important raw materials more and more in the industry and service sectors. At the same time, they are the tools and result of the working process.

The change in economy and labour sector engraves on the individual behaviour patterns, it changes the social guidelines and influences the collective possibilities of regulations.

We must not persevere to go defensive in these challenges, but must remain in the offensive ahead. We must assess our traditional instruments and think of our accessible answers. We must find new answers for new questions.

Therefore, we have decided ourselves in the IG Metall to conduct a future debate. We want to strengthen the IG Metall from the organisational point of view, obtain more members and remain fit for the present and the future.

Economic dynamism, political changes and social change make trade unions superfluous in all. The opposite is the case. Today, the employees need strong and influential representations. The political democracy and social civic society require a stable and future-sustainable trade unions. This is not only true for Germany but also for this country.