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The Social Charter: A South Asian Trade Union Perspective

By Bishnu Rimal
Secretary General, gefont


Trade union and social charter

The concept of 'trade union is one of the social partners' has displaced the wrong traditional notion of 'trade union is the only vehicle to increase wages & facility, and that is for strikes'. Present day trade union movement has proven that it has two-fold responsibilities. Trade Union's primary responsibility of Professional work related to rights & interests concerning job & employment as of public image has already been demonstrated. However, another significant responsibility of the trade unions-Social responsibility related to the liberation of the oppressed segment of society is yet to be established in the countries like ours.

GEFONT is in opinion that new and better World on the solid ground of justice and equality can be built on through strong national trade union movement equipped by international solidarity. Such trade unions are the representatives of the working masses, and working masses are in majority in every society. If social responsibility is wiped-out from trade union's activities, participation of majority people in policies and programmes of the state with the viewpoint of socio-economic development will be bye-passed.

South Asian context

South Asia has around 10% of unionised workers. General trend of labour market is denial of basic labour rights particularly in informal sector. Further process of informalisation in the industrial sector is increasing day by day.

Globalisation of capital has resulted in a steady increase in unemployment & a drastic deterioration in the living & working conditions of labour. It has resulted into privatisation, closures & retrenchments of the company and led to massive job losses.

Sub-contracting of work by companies to small family based, home-based units is also increasing simultaneously with sub-contracting and casualisation of labour. Another impact of the globalisation is de-unionisation in work place. The result is reduction in membership and weakening of the bargaining capacity of the trade unions. This process has intensified exploitation of toiling masses. The rich are becoming richer, and the poor are the poorer.

Therefore, the central point of trade union demand today is to put an end to the adverse effects of the policies of globalisation. The effects such as- massive job losses, new job creation in poorly paid informal sectors, restructuring of enterprises to face competition, slowdown in the industrial growth, growth mainly in service sector and growing industrial sickness imposed by the globalising finance capital.

It is not just an accidental happening. We cannot come to easy conclusion that this is because of IMF and World Bank. The two and WTO are the carriers of globalisation and globalisation & global competition motivates employers to adopt new strategies. Private employers alone cannot be made responsible for this. Government as the big employer is the first to be accused as it is escaping from its social responsibility towards the working masses. In the name of downsizing as right sizing of work force, the big employer is acting disguisely on new methods like early retirement, voluntary retirement, flexibility, mobility, golden hand shake and so on. The pattern of employment is changing rapidly.

By this strategy, employers want to cut down the cost of production. They call for flexible labour arrangements. They resort to lay off, retrenchment, sub-contracting and casualisation - all to reduce costs. They seek to replace or substitute the unskilled workers with skilled, hi-tech employees. They match their HRD or industrial relations technique also to increase labour productivity. The essence of their HRD policy is minimising permanent employees.

There are two different segments in industrial workforce mainly caused by this process of informalisation. First is skilled, technical professional, non-unionised and confidential staff-hiring takes place in this segment only; where loyalty is the main consideration. Next is semi-skilled and unskilled mass of workers. The job for this segment is only casual. There is marked scenario by a large percentage of non-regular work forces and a small percentage of regular work forces.

The Nepali Context

As Nepal is a least developed country with 23 million population-50% living below poverty line (however official statistics claim it to be 42%). High disparity in distribution of income and wealth exists and is ever widening with the intensifying new economic policies of globalisation. Land is the major form of asset and still agriculture is the major occupation involving 80.2% of labour force. Majority of peoples around 88% live in rural areas and most of them engaged in subsistence farm.

In total, size of labour force is of 11 Millions and annual growth rate is 2.4%. Of the total labour force, women cover 47% but in agriculture, women cover 62% of the total labour. However, in formal sector of work only 4% of the total labour force are female.

In informal sectors of work, 87% of the total female and 67% of the total male labour force are involved.

Unemployment is at 4.89% but if go through head count methodology, it stands as high as 15%. But underemployment is the most severe and is 45% of the total human days.

Nepali labour market is largely unfair. Working hours, leaves and benefit vary with different business and the government services. Still there is prevalence of bonded labour and different pattern of forced labour.

Contract labour is a serious issue in this regard. Gender discrimination is in rampant. Serious violation of labour law and international labour standard is one of the common phenomenons. All of sudden imposing Essential Services Act aiming to ban workers strikes in 10 different services including Hotel, Restaurant &catering service very recently is one of the fresh examples. Social security is almost non-existence in Nepal.

Feudal mentality of employer treating workers not as partners but as servant is major hurdle which needs overall attitudinal change. On the other hand, the state machinery even after its membership in ILO for almost Five decades is still less sensitive on labour issues. For instance in government bureaucracy, Labour Ministry is considered as one of the neglacted ministry. As a result, labour administration is too weak to implement Laws regulation in an effective manner. In addition, government machinery is less socially responsive and does not care about developing a sound social welfare, protection and security system.

In this context, we feel that the conflict between labour and capital continues to play an essential role for most workers and their unions. However, still there are additional factors and some of them have become more visible and relevant in recent years. As for example, there are the wide differences between "North" and "South", between rich and poor countries. Secondly, the questions come across related to Gender, formal and informal sector, economy and environment, tradition and modernity etc.

Should we trade unionists see the world through the old concept as being divided into workers and capitalists? Or is it to be viewed as a regional division of the world into a privileged "North" and an underprivileged "South". If we go with this division, we will also divide into the regional hemispheres. The answer is crystal-clear! We will find the privileged as well as the underprivileged both in the "North" and the "South". Thus the unions under any circumstances should try to represent the underprivileged from any corners of the world, irrespective of the place where they work.

South Asia & Social Charter

The 10th SAARC summit of July 1998 has developed a Social Charter which focuses attention in the area of poverty, ill-health, illiteracy, malnutrition, population control, HRD, empowerment of women, protection of children and proper mobilisation of youth and so on. But it does not include the components related to workers and thus it differs from European Social Charter. European Social Charter was designed to establish common standards concerning employment, working conditions and social security of workers of the continent.

However, the solution presented in the proposed South Asian social charter without addressing directly the working class may not prove fruitful. And hence, South Asian Social Charter among other things that have been included, should cover at least the following:

  • Establishment of basic labour rights in all South Asian countries in conformity with the 8 ILO core conventions including conventions 102,103,107 & 141
  • National need based Minimum wage and the formulation of wage policy in each SAARC country
  • Formulation of SAARC Trade Union Alliance
  • Migrant Workers Rights
  • Inclusion of labour charter, as one of the activities of SAARC area of activities
  • The South Asian Consultations of trade unions, human right organisations and NGOs after the establishment of WTO on the issue of Social Clause particularly from 1995 developed a three-fold charter:
  • Human Right Charter
  • Labour Charter
  • Environment Charter
  • A policy adopted by 17th Congress of icftu-Globalising social justice trade unionism in the 21st century has put-forth 6-fold programme. The programmes can be listed out as following:

Spreading & Deepenning Democracy in the era of Globalisation (including policy of considering democracy as the yardstick for good governance, findout common principle in a diverse world and making worker's views heard from the workplace to international plateforms)

Jobs & Justice in the Global Economy (recognising safety net of social protection as a basic state responsibility, inclusion of core labour standards in world trade system to achieve genuine development and inclusion of employment & environment on sustainable development agenda)

Human Rights and world of work (recognising democracy as foundation of global economy, opposing no-union policies in epzs, elimination of child labour & recognising unity and democracy as source of union strength)

Ending Discrimination at the Workplace (recognising rampant discrimination in workplace, necessity of gender aware union & recognising women as vital force for change in unions and inclusion of insecurity-racism & 3-d jobs as union agenda)

Organising International Solidarity (engaging with mncs to develop diologue & agreements, linking workers in the global production chain, organising informal sector to include excluded voice and building respect for workers in a changing world) and

Trade Unions in 21st century (campaigning for social justice in globalised world and drive reform with clear vision of value of international union work)

The ICFTU-APRO has designed Social Charter for democratic development for Asia pacific countries which emphasises on minimum basic standards & best practice standards, human & trade union rights and social policies. The apro's Five essential areas of minimum are-

  • essential social security schemes
  • essential clause in cba, which includes unions & agency shop, check-off, compulsory consultation for redundancies and joint consultative system
  • essential provisions in labour legislation
  • essential area in social development, which includes compulsory education, eradication of child labour and universal health care
  • essential conventions on International Labour Standards

The ICFTU-APRO social charter is concerned with how union should work together to promote the recognition and respect for the fundamental rights of workers. Thus it has tried to dig-out practical measure for justice at the workplace in the context of global market economy. Simultaneously the charter has developed a guideline for social dialogue, which covers a numbers of issues like employment, wages & working condition, vocational training & retraining, industrial relations, OSH & environment, women workers, MNCs & EPZs, migrant workers, social security and so on.

The Conclusion

In this age of globalisation, while discussing the social charter, the issues of social protection and social security comes as the core agenda for trade unions both in the developed and underdeveloped world.The major components of social security system such as Old age benefits, Unemployment benefits, Compensation of workplace injuries, Medicare, Sickness benefits, Maternity protection, Invalidity and Family as well as survivors benefits, should not be curtailed, but should be expanded to cover the workers of informal & self-employed areas of work. It may be phase-wise in implementation, based on the stage of socio-economic development of the country in question.

Thus, in this context, GEFONT views that the union activities and priorities in Nepal should be as follows:

  • Extension of the legal framework favourable to the working masses. Formulation, revision & amendment of labour laws, effective implementation of laws & regulation
  • Maximum job security, currently under threat from new economic policies, which encourage informalisation and casualisation
  • Unionising formal & informal sectors
  • Widening the coverage and enforcement of minimum wages
  • Promoting a sound wage structure
  • Ensuring fair working conditions
  • Minimising particularly unfair labour practices effecting women, child and bonded labour
  • Increasing workers' education programmes
  • Promoting the establishment and extension of a dependable social security system, compatible with the Nepali economy

Regional blocks in various levels have been developed everywhere. But we South Asian, in spite of our commonalties are far behind in this connection. Trade Union Network is also one-sided. Neither ICFTU based SAARTUC is functioning well, nor the WFTU SAARC Council of Trade Unions. WCL exercise in this regard is naturally unproductive. In contrary, effective independent trade union centres are also in the scene, but are outside these networks. Recognising all efforts made by either side, it is necessary to form a broad alliance of all South Asian Trade Unions. Focal points of the Alliance will be the following:

  • It will raise issues emerged as the adverse impacts of globalisation based on practical level and not just the theoretical grounds.
  • It will try to develop commonality of responses against anti worker moves & activities of MNCs, Big Houses and their joint ventures.
  • It will try to develop issue based-action based unity among the existing numerous diversities in South Asian Trade Unions.
  • It will develop a sound system of networking among South Asian Trade Unions.
  • It will take up the issue of Social Charter for South Asian Countries and will go on lobbying in Sub Regional level.
  • It will try to implement officially guranteed minimum wage to alll wage earners irrespective of their Nationalities in order to regularise sub-regional labour migration and protect migrant workers right.
  • It will try to build a strong social movement in co-operation with other wings of social movement as peasant movement, women movement, Dalit movement and other forms of human right movement.

In view of the poverty and problems of south Asia, the social charter should be focused towards informal sector and establishments of a sound system of social security network covering all workers in formal, informal and self-employed works.


Reference Cited:

  • cec, India : Campaign Dossier India 1996
  • gefont : Policy Documnet 2000
  • gefont/fes : Proceedings of High Level Panel duscussion 1999
  • icftu, hq : Globalising social Justice: Trade Uionism in the 21st century 2000
  • icftu-apro : Social Charter for Democratic Development 1994
  • Internet Sources : Central & Eastern Eureopean Countries in the EU:
  • Labour Market Impacts of Enlargement? 2001
  • Internet Sources : Draft Charter of Fundamental Rights of the Eureopean Union 2001
  • Internet Sources : TUC: Europen Charter of Fundamental Rights 2001
  • marga, Sri Lanka : The SAARC social charter-Perspective and Issues 1999

 

 
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