Globalization, Burma, Decent Work, &

Challenges for Trade Unions

Arum Kumar
ACTRAV
Programmer for Workers Activities international Training Center of
the ILO Turn, Italy
Federation of Trade Unions-Burma

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Arum Kumar
Federation of Trade Unions-Burma

Globalization?

(Picture)
Participants views. . . . .

Picture Source: Kate Raworth, Oxfam presentation on Trade & Human Development,
Federation of Trade Unions-Burma

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Federation of Trade Unions-Burma

Many challenges facing the world & workers today. . .

Food crisis, fuel crisis, water, health care, unemployment, poverty, lack of rights at
work, etc

Since 2008, global economic crisis caused by greed & speculation, de-regulation of
economies & of labour markets

Global warming & climate changes that now threaten the very existence of many
countries & millions of people over 20m people displaced by climate disasters in 2008
alone!

How are these challenges being addressed?

Federation of Trade Unions-Burma

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Federation of Trade Unions-Burma

Unequal World
Richest 20% pocket 86% of the worlds GDP; poorest 20% more 1%

1.3 billion people live on less than one dollar a day;

OECD countries have more than 80% of the world incomes, receive more than 3/4th of
the foreign investment and almost 3/4th of the world trade is between them.

Low income countries, including Burma have less than 2%

More competition between Unequals;

[unequal capabilities lead to unequal outcomes]

Federation of Trade Unions-Burma

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(rnDr#aom vkyEf idk pf rG ;f &nfwdk@a=umifh rnDr#aom &v'fudk OD;wnfonf?
Federation of Trade Unions-Burma

Current answer to meet the problems

Economic liberalization, Globalization & in general policy belief that markets know
the best
One size fits all kind of policies:
One markets, free trade, de regulation, completion, free capital
flows, FDI rather
than foreign aid, no performance requirements on FDI, employment flexibility, cut govt
deficit, raise taxes &/ or raise interest rates, privatize, etc

Deregulate labour markets flexible labour, pre carious employment

Capital mobility Yes! But no labour mobility

Federation of Trade Unions-Burma

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Federation of Trade Unions-Burma

Why is world interested in Burma?

Federation of Trade Unions-Burma

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Federation of Trade Unions-Burma

Globalization & Burma

Over 400 companies from about 36 countries have invested in Burma Power, Oil &
Gas, Manufacturing, Mining & Tourism are the main sectors of investment.

Major investing countries: China, Singapore, UK, Thailand, Malaysia, Japan, France,
US & India.

Foreign investment since 2000: valued at $13.9 billion (Myanmar Investment

Commission MIC).

Since 2001, ADB provided US $887 million in projects ( in Ports, Roads & other
infrastructure).

Federation of Trade Unions-Burma

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Federation of Trade Unions-Burma

Globalization & Burma

Globalization has so far bad news for average Burmese
Privatization & foreign investment difficulties for most
workers, for
the environment; lack of rights & forced labour
pressure for migration;

Low & declining public investment in education, health care & skills development (
& the lack of basic infrastructure) means that average Burmese population will not
benefit for economic opportunities

Can Globalization put pressure for democratic reforms?

Federation of Trade Unions-Burma

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Federation of Trade Unions-Burma

Impact of Global Economic Crisis

Increase in global unemployment could go up to 241 million the highest level

ever on record.

Working poor (earning below US $2per person, per day) can go up to 1.4 billion
(45% of the worlds employed)

Workers pension funds globally pension funds lost over 5 trillion $ between 2007
& 2008) in some countries where pensions were privatized (ex in Latin America),
they lost more

Federation of Trade Unions-Burma

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Federation of Trade Unions-Burma

Impact on Asia
Outflow of capital from Asia ( >100 billion $$$ in 2008) what was its impact on
Asian economies, stock markets & currencies?

Impact of recession in western markets on Asian production, economic growth,

Remittances, foreign aid, govt revenues

Impact of credit squeeze on domestic investments, industry & jobs

Implications for industrial relations (wage cuts, wage freeze, rise in casual unprotected
work, higher work loads, forced unpaid leave, default on social security contributions,
violations of FoA)

Federation of Trade Unions-Burma

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Federation of Trade Unions-Burma

Impact of Burma
Burmese economy impacted by slow down in Asia
(Over 70% of Burmese exports go to the Asian region & about 90% of total import
comes from this region Burma China trade accounts for 72% of the total. Thailand
comes next with 16%)

Revenue from natural gas declining as prices of crude oil have fallen under US
$50 a barrel in the world market, Supply of raw gems (rubies, sapphire) reduced

Impact on Burmese workers inside Burma? Migrant workers? Impact on women?

Childrens education? Minimum wages? Money sent home?

Response of the Burmese Govt?

Federation of Trade Unions-Burma

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Federation of Trade Unions-Burma

So, what should be done?

Federation of Trade Unions-Burma

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Federation of Trade Unions-Burma

Union view

End deregulation of employment market & ensure respect for fundamental rights of
workers (FOA & CB rights)
Regulate financial markets so that these serve the objectives of real economy
Ensure basic social security for all (since this minimizes impact of economic crisis
& assists in improving effectiveness of recovery packages)

Policies to eliminate tax havens, tax evasion, transfer pricing & currency transaction
tax to dampen speculation.
What else? ? ?

Federation of Trade Unions-Burma

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Federation of Trade Unions-Burma

ILO Approach
Tripartite dialogue with social partners to develop policy responses at national
level & international level to address the economic & social crisis.

Pre-condition for effective social dialogue: ? ? ?

Global Jobs Pact promote economic recovery thru opportunities for decent work

Federation of Trade Unions-Burma

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Federation of Trade Unions-Burma

ILOs Global Jobs Pact

Framework for national & international policies aimed at:
A global economic recovery with job creation and the provision of social protection to
working people and their families at its core;
Stronger regulatory framework for the financial sector;
Efficient and well regulated trade and market;

Policy options identified include:

Employment incentive public investment;
Special employment programmers
Support for enterprises
Broadening social protection and minimum wages

Federation of Trade Unions-Burma

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h nf
 tvkyt
f udik f ae&mcsxm;a&;qdik &f mudk apmif;ay;Edik af omEdik if /H &if;ES;D jrKyfErSH ?_
 tvkyt
f udik f ae&mcsxm;a&;qdik &f m txl;tpDtpOfrsm;?
 vkyif ef;qkid &f mrsm;tm; taxmuftyHah y;&ef?
 vlra_ &;qdik &f m umuG,af y;r_rsm;ay;jcif;ESifh tedrq
fh ;Hk vkycf vpmrsm; owfrw
S jf cif;rsm;udk wk;d csJ@ay;&ef?
Federation of Trade Unions-Burma

At least one lesson for Asia

Over dependence on exports & western markets

Almost 60% of final demand for Asian goods comes from developed countries. Exports
account for about 47% of developing Asias output

For economic & social stability at home Asian countries need development &
expansion of domestic markets this implies Decent Work & respect for fundamental
labour standards.

Federation of Trade Unions-Burma

tm&StwGuf tedrq
fh ;Hk aom oifcef;pm w&yf
 Ekid if jH cm;odk@wifydk@a&mif;csrE_ iS fh taemufwidk ;f aps;uGut
f m; tvGeftu|H trSo
D [JjyKjcif;?

tm&SrS vdktyfaomukeyf pPn;f rsm; &mcdik Ef e_ ;f 60 cef@onf wk;d wufzGH@+zdK;aomEdik if rH sm;

rSwifoiG ;f jcif; 47 &mckid Ef e_ ;f onf tm&SrS zGH@+zdK;qJEidk if rH sm;. xGuu
f ek jf zpfonf?
 a'owGi;f pD;yGm;a&;ESifh vlra_ &;qdik &f m wnf+idraf &;twGuf tm&SEikd firH sm;onf zGH@+zdK;a&;ESifh
jynfwiG ;f
aps;uGuf
(a'oaps;uGu)f
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Ttcsuo
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oifjh rwfaomtvkyt
f ukid f
q
f idk &f mESifh
tvkyo
f rm;wdk@.tajccHtcGifhta&;rsm;udk
av;pm;a&;twGut
f rSo
D [JjyKonf?

Federation of Trade Unions-Burma

Negotiating Change. . .

What is the floor that should underpin every economy?

Core labour standards of the ILO
 Freedom of Association the right to form unions, the rights to recognition
 Right to Collective Bargaining
 Social Protection (basic social security & OHS)
 Access to skills training
 Minimum living wages
 No discrimination, No child labour

Federation of Trade Unions-Burma

ajymif;vJvmaom nEd i_d ;f r_

tm;vH;k aom pD;yGm;a&; tm;aumif;vmap&eftwGuf tajccHusaom
ILO .tajccHusaom pHEe_ ;f rsm; Core labour standards of the ILO
 vGwv
f yfpmG toif;tyif;rsm;zGJ@pnf;cGi/fh tvkyo
f rm;or*~rsm;zGJ@pnf;cGi/fh todtrSwjf yKydik cf iG hf
 pkaygi;f nEd id_ ;f ta&;qdyk idk cf iG fh
 vlrq
_ idk &f m umuG,af &; (tajccHusaom vH+k cHKa&;ESifh vkyif ef;cGif use;f rma&;ESifh ab;tE W&m,f
uif;a&;)
 t&nftaoG;qdik &f m oifwef;rsm; wufa&mufEidk af &;
 &Sio
f efaexdik af &;twGuf tedrq
fh ;Hk vkyv
f pm
 ESrd cfh s cGjJ cm;qufqrH r_ &Sad &;/ uav;oli,f vkyt
f m;r&Sad &;

Federation of Trade Unions-Burma

Why Labour Standards?

Labour Standards are not just a question of workers rights BUT are also means to
promote sustainable economic growth
Labour Standards create conditions for growth of domestic markets in so for as they
enable sharing in gains of growth & spread of purchasing powers and thereby
ameliorate poverty conditions this makes domestic economic growth more
sustainable.

Labour standards promote Occupational Safety, Health and Environment protection

Globle Economic Crisis & Climate crisis is an opportunity to re-think development

model but will this happen?

Federation of Trade Unions-Burma

tvkyo
f rm;rsm;twGuf pHEe_ ;f qdw
k mbmvJ
tvkyo
f rm;pHEe_ ;f qdo
k nfrmS tvkyo
f rm;rsm;twGut
f cGifhta&;qdik f&momrubJcEH ikd f&nf&adS om
pD;yGm;a&;zGH@+zdK;r_qidk &f mtm; jriw
fh ifay;&ef?
jynfwiG ;f aps;uGuf zGH@+zdK;vmjcif;rS 0,fvt
dk m;zGH@+zdK;jcif;ESiu
fh s,jf yef@vmjcif;wkd@twGuf tvkyo
f rm;
pHEe_ ;f rsm;rS zefw;D ay;onf?
tvkyo
f rm;pHEe_ ;f rsm;onf
vkyif ef;cGif
ywf0ef;usiu
f muG,af &;wdk@twGuf jriw
fh ifay;onf?

ab;uif;vH+k cHKa&;ESifh

use;f rma&;/

urBmph ;D yGm;a&;tusyt
f wnf;ESifh &moDOwkjy\em wkd@onf zGH@+zdK;wd;k wufap&eftwGuf pxm;I
jyefvnfawG;ac:&eftwGuf tcGit
fh a&;yifjzpfonf? wu,fyifjzpfvmrnfvm;?

Federation of Trade Unions-Burma

Group Discussion/Work
What major changes in economic, political & labour policies has Burmese Govt made
in recent years?

How has foreign investment & international campaign against Burmese junta affected
workers in your country?

What has been the response of the workers and trade unions in Burma?

What role can the International Trade Union Movement play in assisting national
unions to meet the challenges in Burma?

Federation of Trade Unions-Burma

tkypf v
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dk af qG;aEG;vkyu
f idk jf cif;
r=umjrifrh D tcsed fumvrsm;wGif jrefrmtpd;k &taejzifh pD;yGm;a&;/ Edik if Ha&;/ tvkyo
f rm;a&;qdik &f mwdk@ twGuf
rl0g'ta&;ygaom ajymif;vJrr_ sm; bmawGvyk yf govJ?
 Edik if jH cm;&if;ES;D jrKyfErSH E_ iS fh jrefrmppftpd;k &tm; Ekid if w
H umrS zdtm;ay;vkyaf qmifrr_ sm;onf jrefrmEkdifiH
wGi;f &Sd tvkyo
f rm;rsm;udk xdcu
dk rf &_ ySd govm;?
 jrefrmEdik if w
H iG ;f &Sd tvkyo
f rm;rsm;ESifh tvkorm;or*~taejzifh rnfodk@wek f@jyefrr_ sm;vkycf yJh govJ?
 jrefrmEkid if t
H vkyform;or*~rsm;taejzifh Tpdeaf c:r_rsm;udk &ifqidk Ef ikd &f eftwGuf
tvkyo
f rm;or*~ v_y&f mS ;r_taejzifh rnfuo
Jh dk@taxmuftuljyKEdik rf nfenf;?

Federation of Trade Unions-Burma

Edik if w
H umu