Professional Documents
Culture Documents
known as export processing zones, in low-income countries .r lesource that is becoming exhausted due to the "de-ruralization of the world-
. To be aware of the cycle of exploitation experienced by "second
generation" temporary ',\'stem today."
migrant workers in Canada The exploitation of cheap labour, whether in high, or low-income countries,
r( rnains an integral component in the expansion of capitalisnt. Today, globaliza-
ti,n and neoliberalism through international institutions such as the IMF and
tlrc World Bank continue to break down the remaining impediments in national,
l,rr'al, or community labour markets. Therefore, in a neoliberal world of com,
lntroduction l,, tition where labour markets are deregulated, labour must also compete. This
, ()r)rpetition is conceptualized and regulated as individual workers rather than
affinity for
coffee is canadians' number one beverage of choice. But how does our
chains? .r.; the collective power of protected labour markets (Kalleberg and Hewison,
aromatic brew connect US to one of the most important global cr:mmodity
the present configurn' 'rtt.t:277).
this chapter we examlne the movement of work and workers IN
commodity
tion of the world economy through global commodity chains. The coffee
chain 1S the second most important and lucrative global commodity 1n the world artrl Global Commodity Chains and the Global
provides US with an example of how workers ate exploitecl at the bottom of the chain.
lnterconnection of Work and Workers
examining agrictrl
N ext, we examme child labour 1n the cocoa commodity chain. By
I riscussions of the impact of globalization on economic restructuring within high-
tural commodity chains, this chapter explores how the cleregulation of commodity
impacts peoplc rr( ()me or advanced capitalist countries and of the effect of market liberalization
prices brought about by globalization and neoliberal policies negatively
of Iabour within agt I .rrrtl tleregulation on developing nations have moved from national or sectoral
living 1n low-income countries. We move from the exploitation
export processl Irg ,rrr.rlysis to commodity-specific dynamics of transformation, exchange, and
cultural commodity chains to manufacturing industries located 1n
, r)nsurnption. Recent scholarship has concentrated on global commodity chains as
zones ln low-income countries. We bring the moYement of work and
workers homc lrt
migrant workcrs. Ir r, I'chical and spatially distinct structures. The work of Immanuel Wallerstein and
r'rt
Canada by examining the cycle of exploitation of secono generation'
lr r .lle ilgues centres on the world-systems global commodity chains (wsccc) and
t
"
r,, tlistinct I'rom thc gl.hal cornn.rodity chains (t;CC) research of Gary Gereifi
Globalization and the Transnational Corporation .,rr,l Migttcl Korzcrrir'',vitz (19(),1).'lhc lattcr approach to econornic rlevelopmcnt
r, ,r r') sttrtlics sl)c( ili( ( onrlr,(lilit'sr hy covcrirrg irll, ol rrrost,
Globalization, facilitateil by tlatrsrtrltional corporatiotts, ilrlilrtnatiott
rttltl Proecsscs iurtl trarrs
has ttt' r, ll{)llslt0lttItillt.tt) l)to,r",.iltli llrrr)n:;Unll)liott.t;t t t(':i('ill'(lrtotrsislstll :r1t;tli1.1l
ctltlltltutricittiotrs tcchllrllogics' ttttttlrliitltt st;rtt's' ittrtl tlt'olitrt'r'itlistrt' ,,r |olit),orit'tttt'tl',lu(lr{',,,11'1,,1',rl,lr.rirr:,;tntlottlr:ion.rlll,irrtlrrrlrit.sllr.rltross
. .^,1,,.,-,. rrrrrr l,l irrr.rrr.rlrlv itr r,,orltl iolrs, sl,llrlt' ,rrrtl sCttllf
9 The Movement of Work and Workers 173
172 Crises in Canadian Work
characterized by higher clegrec s of comPctiti()ll' ',l,rrlrueksltltssix((nlt(',tvlt,t, llrt lrt'lurslucroltstt'tl lrrrtl Pltcl<1ggtl initIrritt.tttcr
or low income cotttrtrics'
9 The Movement of Work and Workers 175
174 Crises in Canadian Work
the UK France maintains close relations with C6te d'Ivoire and other Francophone
similar to the manufacture of standardized products by fast food chains likc
( ountries. Dutch trading links with Indonesia remain important as well (Dicum
McDonalds (Supplychainquarterly.com, 2010).
;rnd Luttinger,2006).
AII products used in each Starbucks store are supplied by a central distribtr-
distribution centres in the United States, seven in tlrc But in 1989 the US withdrew from the agreement. The market soon became
tion centre. Starbucks uses 33
nregulated. The World Bank encouraged Vietnam to move into coffee production
Asia/Pacific region, five in Canada, and three in Europe, As a result of controlling
r r
ilespite the already large supply of coffee on the world market. By 2011, Vietnam
their co{Iee commodity chain, Starbucks has become the largest coffeehouse conr
,rccounted for approximately t4 per cent of global colfee production, ranking it as
pany in the world. Starbucks employs approximately 182,000 people across mofc
tlrc world's second largest coffee producer (Choudhary et al., 2011). The glut on the
than 19,700 company-operated and licensed stores in 62 countries and is a majol'
global transnational corporation with revenues topping $15 billion in 2014
rlirrket caused prices to plummet below the cost of production.
(SupplychainquarterlY, 2010). International prices for the raw product (either Arabica or Robusta) have
r.'mained low, hovering around $1.60 per pound for the past decade (Interna-
tional Coflee Organization [ICO], 2014: 23). The low price of coffee is good for
The Coffee CommoditY Chain thc transnational corporations that control the commodity chain since they can
rt'alize high profits at other stages in the chain. However, coffee is a yital source
Coffee is the world's second rnost valuable traded commodity, behind only petrtr
, rl' cxport for many of the developing countries that grow it. Today, small-scale
leum. Globally there are approximately 25 million farmers and coffee workers irr
lrrrnrers produce over 75 per cent of the world's coffee. Market liberalization and
over 50 countries involved in producing coffee. An estimated 11 million hectarcs
,lcregulation in producing countries have decreased their capability of control-
of the world's farmland are dedicated to collee cultivation. Worldwide, the annual
billion pounds. Coffee is the largesl footl ling exports and building up stocks, therefbre weakening their market power.
consumption of coffee has expanded to 12
fifth among the world's to| lrr irddition, coffee farmers in low-income countries are facing increased costs
import of th. Urrit.d States and in 2014, Canada placed
l0 irnporting countries (Indexmundi.com, 2016). The global commodity chain is lol replanting and other high costs for fertilizer and diesel fuel (Fitter and
l(.rplinksy, 2001).
a hierarchical structure beginning with farmers/workers, moving up to middlc
Coffee price decline and volatility have had negative economic impacts on
men, exporters, importers, roasters, and retailers befbre reaching the consumcl
(Globalexchange.org, n.cl.). Figure 9.i highlights the substantial inequalitybetwecr)
,lcveloping countries. One result has been declining export revenues, reclucing the
.rlrility of the state to invest in rural development, which, in turn, leads to increased
what is paid to the farmers/workers and what the consumer pays' Each box in tlrc
.off.. .o-*odity chain appropriates part of the surplus but leaves the lion's shalc l)()verty in coffee producing areas, declining labour standards, and unsustainable
l.rrrrl use (faffee, 20L4;Lyon,2010). "Ihe surplus generated by the coffee commodity
to the transnational corporations based in high-income countries.
, lnin comes largely at the expense of those at the bottom. As a result of globaliza-
Today, most of the world's coffee is grown in Colombia, Vietnam, and Brazil.
tion, the institutional frameworks have moved away from a formal and relatively
Across the globe, various processes, technologies, and forms of human labour arc
',trrble system where producers had an established voice toward today's more
employed in the cofee chain before reaching the consumer. coming into forcc
r lirrmal and buyer dominated system.
on 1 )uly 1963,37 countries representing coffee exporters and coffee consutnitrg
r r
nations entered into the International Coffee Agreement, which fixed prices at
In the coffee producing countries, the farmers through their cooperatives
Irrrd it difficult to compete with local subsidiaries of international trading
$4.40 to $5.30 per kilogram. Each colIee-producing country had an agreed-uporr
"fair" allotment of the market. This had been set uP to counter the rise ol lilrns. As trade liberalization and deregulation force governments to retreat
lrorn the regulation of domestic coffee markets, farmers' organizations lose
communism in Asia and South America. In addition, historic colonial trading
.r l,olitical forum of negotiation. The weakness and inherent instability of the
routes continue to remain important in shaping the colIee commodity chaitl'
A sizeable proportion of East African coffee finds its way to Germany antl rrrstitutional framework falls straight on the shoulders of coffee f'armers in
,lt vcloping countries. In the process, a "substantial proportion of total income
Paid Paid Consumer rit rrcrated in the coffee chain has been transferred from farmers to consuming
Farmer Paid ExPorter Paid !mporter Paid Roaster Cal6
, ountr| operators" (Ponte, 2002: 1116). We should ask ourselves, what differ-
.5o/kg $2/kg $1 o/kg $30/ks $300/ks
r'nr(' (locs it mahc to ir strrallholilcr if a consulner can buy tr double tall decaf
(100 servings @ $3)
l.rllt' lirr $4, or il sl)t't illty ht'rurs rrrc soltl lt $ltl pcr pouncl in the United Statcs
Figure 9.t conventional coffee commodity chain (Approximate Prices Paid per Kilogram) ,,r (.;rnrrtlrr, il-tlrc l,rrrnlr 1',r'ls lt'ss llrarr 50 rcnls lirr Ihc satttc pottntl <ll'col li'c
Source: Adapted Irom Ox{arn and Baskervillc, Prler /01') 'liIiilr,rrltrrinr; lhc rollot supply rhain' lrlllr //r'rlrrr'11o(olfeo qtlorn t I illt'r'ittrtl h,tlrlirr',1!\', .'()()l )"
.(on1/tl0irrdrlinir)q 1he tttllcc \tll)J)ly (h,rirr
'176 Crises in Canadian Work 9 The Movement 0f Work and Workers 177
The terms outsourcing and offshoring are often used interchangeably in much llrc lnternational Labour Organization (tt.o) separates negative child labour that
of the popular literature today. However, there is a dilference. When a company ,lrould be elirninated from positive child labour that may contribute to a child's
outsources, it buys from a different company a part or service it uses to product' rvcll-being. For example, children or adolescents' participation in work that does
either within the country or abroad. For instance, General Motors can outsourcc rrot affect their health and personal development or interfere with their schooling
production of an auto part to a different company in the United States or any ,s generally regarded as positive. This includes activities such as earning money
where in the world. However, if a company offshores, it moves its service provisiorr ,,rrtside school hours and during school holidays. Often these jobs provide children
clr production process to a different country. For example, if GM opens a factory rlrth skills and experience to prepare them to be productive members of society
in China and shifts production to its factory there from the US, it is offshoring, , lrr ring their adult life.
no, outsourcing because it is still running the factory from its US headquarters, The ILO refers to negative child labour when children aged five to 17 years
Offshoring allows a company to make the product or offer the service at a much rr,ork in conditions that are physically or mentally harmful, socially or morally
, ll ngerous, interfering with schooling, or requiring children to attempt to combine
lower price because it is able to take advantage ofcheaper labour costs, lax govern
ment regulations on working conditions and the environment, restrictions on tratle .. lrool attendance with excessively long and heavy work. Although the nurnber of
unions, and attractive tax incentives (Fifarek,2007). Therefore, many early offshort' , lrilclren exposed to negative child labour has declined fron246 million in 2000 to
practices involved the movement of low-skilled, labour-intensive manufacturing l()S million in2012, the number of children involved in these destructive practices
positions to other countries, especially in the developing world. r.; llarming (tLO, 2015b).
Advances in telecommunications and information technology have led t0 In 2013, the largest percentage of children exposed to negative child labour
olfshoring service positions such as remote operations of call centres. Anothcl l,ructices was in agriculture (58.6 per cent), followed by services other than domestic
example is the offshoring of knowledge work such as research and developmerrl rvork (25.4 per cent), industry (7,2 per cent), and domestic work (6.9 per cent). Child
including software maintenance and development (Farrell and Fenwick' 2007), l,rlrourers who work on farms produce cash crops such as cocoa, coffee, cotton, and
Intel increased its engineering workforce 150 per cent by adding 600 engineers r rrbber. Another 20 million are employed in factories that make garments, carpets,
to its research a1d development operations in Russia (Foremski, 2004; Mangunr' t,ys, matches, and hand-rolled cigarettes (lto, 2015b).
2012). Otrshoring services or technological developments allow global corporatiotts While statistics on the wages which children receive for the work they do varies
to produce around the clock, and this results in lower costs. lry r;orrrr,., and industry, the consensus among international organizations is that
Writing in The Economist,Tamzin Booth (2013) refers to the phenomenon 0l , lrildren are paid pennies an hour. For example, a young child named Soe Min
"bringing work home" or reshoring work that was once done offshore. Among tlre Ln,in brings home $35 a month after working in a factory in Yangon, Myanmar.
companies Booth narnes as engaging in reshoring are Google, General Electric, With this money he can buy a sack of rice for $20 to feed his mother, stepfather,
Caterpillar, and Ford Motor Company. With regard to the loss of manufhcttrr t\v() younger brothers, and grandmother for one month (Saberi, 2015).
ing jobs in Canada, a large portion of employment in Canada's manufacturirrg
base came from foreign, primarily US-based transnational corporations such its
Ilrand Name Companies Exposed
GM, Ford, cr, |ohn Deere, Nabisco, Kellogg's, and Kraft. An example of a LJS
based transnational closing shop and moving jobs to the US is provided by lrn I rr 2013, an internal audit at Apple uncovered several cases ofnegative child labour
ergizer, a transnational corporation manufacturing batteries and personal cillc rrr its commodity supply chain, including one Chinese company that employed
products with headquarters in fbwn and country, Missouri. The company is wcll I chilclren under the age of 16. In total, the audit uncovered 106 cases ofunderage
known for its Energizer and Eveready batteries; Schick, wilkinson sword, arrtl l.rlrorrr employed at tl factories involved in making its products in20L2. The Apple
Edge shaving products; Playtex feminine hygiene products; and Hawaiian'l'ropir r ('l)ort came on the heels of a series of worker suicides over working conditions at
and Banana Boat sunscreen products. The company announced its feminine cirlc Iroxc<lnn, the Taiwtrnese company that assembles the iPad and iPhone and operates
facility in Montreal would close by 2017 with the loss of 450 jobs. As an exirtrrplc ,, rrrrurbcr of oft.shorc pllnts in China (Garside,2013).
of reshoring, the closing of the Montreal factory is part of a restrttctu ring progrl nl ()uc (lhincst' (()nrl);ury irr llrc Applc cotrrnrodity chain callecl Guangdong l{eirl
that will see procluction consolitlirtcd irt llncrgizcr's l)clirwitrc lircility (13tlsincss I ,ritlr l)irrgzlrorr Iilct lroni('. rr,rl\(:i t ilt tlit lroitrrls. Accortling to Applc, 74 children
Ncws Nctworl<,20l,l). urrtlt'r'tlrt'irgc ol ltr lr.r,l l,, , rr l..tr,rrlrtr1'.11' rt't luitcrl to tvot'li ott i(s Ptotlttt'tiotr litrt's lr1,
l7t] (-riscs in ( arradi,rrr Work
9 TheMovementofWorkandWorkers llg
one of the region's l:rrgest labour agcncies, Shcnz.lrcn (ltrirrrshrrn I lunran l{esorrlct.s, l.r cxa.rrrlc, irr .l()10, Ivori.n government authorities
detained three newspaper
Apple's investigators found that the agency conspirccl with fhrnilics to lirr,ge ,"rrr,:rlists alicr thcy published an articre exposing government
corruption in the
identification documents. Apple has since cut its relationship with the Chirresr I ( r( oa sector (Voice oJ'America,
16luly 2010). With low levels of education, fhmilies
circuit board supplier (Garside, 2013). rrr lhe cocoa sector are caught in a
vicious cycle ofpoverty. cocoa producers have
cocoa, an important global commodity, is critical to the livelihoorl .r lrttle bargaining power against the few large
transnational companies that
thousands of rural farmers especially in West Africa. Western African countrics,
' .rrtrol the supply chain and ultimatery deteimine the livelihoods of
mostly Ghana and the Ivory coast, supply almost 70 per cent of the worlcl's cocorl farming
l'rrrrilies (Internationar Labor Rights Forum,
(world cocoa Foundation, 2015). The main transnational corporate players in the
n.d.).while the ILRF continues its
"lr rggle to eliminate child labour from cocoa plantations by shaming corporate
chocolate trade are Archer Daniels Midlands, cadbury, Hershey, Kraft Foods, arr,l rirrr'rts such as Hershey, negative child labour remains
an integral part of the cocoa
Nestl6. In well-publicized reports in 2010, over 1.8 million chilclren were fburrtl
' "rrrmodity chain. In much the same way that coffee p.i.., u".. t<ept
low to ensure
to be working under exploitative conditions in cocoa related activities in Cdtr l.rse profits for transnational corporations,
low prices for cocoa and other com_
d'Ivoire, Cameroon, Ghana, and Nigeria (Payson center for lnternational Devekrp rrr.dities consumed in high-income countries
have similar arTects at the bottom
ment and rechnology Transfbr, Tulane University, 2011). The International l,abor
"l lhe commodity chain-namery fewer resources for the state and impoverished
Rights Forum (rlnE) stated that while almost 70 per cent of the world's supply .l l,rrrrilies who grow and cultivate the staple
commodity.
cocoa comes from c6te d'Ivoire and Ghana, farmers who produce cocoa and wor,k
on the plantations are paid below-poverty wages. Low prices in the cocoa industry
have Ieft smallholder farmers with impoverished incomes and with no choice bul to
Work in Export processing Zones (EpZs)
pull their children from school and have them help on the plantation. t ilrbalization has resulted
in the proliferation of re-export platforrns locatecl
Low prices and low wages combine to perpetuate child trafficking and the worst rrr.stly in low-income countries of the worlcl
economy. Export pr.cessing zones
forms of child labour that characterize the industry. Children are exposed to chenr (l l'zs) are special manufacturing
enclaves that are normally, though ,ot alwirys,
icals and long working hours, and are denied a decent education. The governmcrrt ,rhe
^.lirted from the rest of the national economy. International r,,rtr.u, ()rgari-
of c6te d'Ivoire has hampered the reporting of the worst of child labour practiccs, (ILO) states that EpZs take many forms,
"'rtion including fiee tracrc z.rcs, special
, ( ()nomic zones, export
processing factories, bonded wur.ho.r."., free porls,
anrl
rrr'rtluiladoras or maquilas in Mexico.
The ILo has defined EpZs as "industrial zones
rlrth special incentives set up to attract foreign investors,
in which importecl
rrrrr(erials undergo some degree of processing
before being re-exported,, (tr.o,
'ol5a)' Epzs have become the rargest manufacturing
centres orglobarization a,d a
1 'r i rne example of why industrialized countries have shed *"rry"of ,h.ir
unionized,
l)ieh-paying manufacturing jobs and moved
them there.
Mexico's early experiments with EpZs, known
as maquiladoras, or maquilas,
r rr iginated with the Mexico-us Border Industrialization program
in rg66whereby
rr:r.ufacturing plants were located in the border
towns of northern Mexico.
I lrc ,raquiladoras are a group of manufacturing
prants that use cheap labour and
I t'rx incentives to import and assemble duty-free
components for export. They
I l,((.lne a means of providing employment and
significant foreig,-exchange
I , .r rn ings for Mexico's developing economy (Hansen,
2003).
li,rployment in maquiradoras i'creased from approximatery
200,000 in the
I rrr irl- 1980s to more than r,000,000
by the turn of the .".rtury. uatrre, globalization,
I(, 'rrrtl l.w-cost offshore assembly in china, Asia, and Latin
America dramatically
'rllcctecl Mexico's nrarluirarloras. Iror example, approximately
529 maquilacloras
"lrrl rl.w'a.cl i.vcstrrcrrt irr rrsscrrrbly plants decreasccl by g.2 per ce,t i,2002
A cocoa farmer uses a machete to open a pod of raw cocoa for inspection on a cocoa plantation in Kumnrl,
Ghana. Cocoa is an important global commodity, critical to thc livllilrorrrl ol rhousands of rural farrncrt
This raw product becomes the chocolate made in Swilzr,rl,rrrrl ,rrrrl ollrr,r r orrlr,r liorr prorlucing nations belorfl tl'ltot l is, 2006) l)csPilt' llrt tlt't lirrt', howcvcr,
ovcr -r,(xx) rrrirtlrrilurl.r.as still c.,risr
export around the world. ,rl,ttg 1111',1,000 rrrilr. l,rr;,i .,lrr.tr lr.l llrr.tIrrilt.tl Slrrlr,s
,\4cxit.. lr.rtlt.r.,llr.y,11ryi111.
9 TheMovementofWorkandWorkers l8l
180 Crires in Canadian Work
than one of the eight ItPZs and the largest in Bangladesh, employing l88,76g workers
million workers ancl exports of more
employment for slightly more than who were mostly women and teenagers as of April 2015. The 453-acre chittagong
-2.
$196billion(TheEcono'mist,2[l3;Villalobos'2004)'However'verylowwagesand I;acility holds 137 factories and in 2014-2015 exported over $21.3 uSD billion
treacherousworkingconditionscharacterizemuchofthework.Forexample,Rosa called worth of manufactured goods. It claims to have the cheapest labour in the world.
from 10 p'm' to 7 a'm' ala factory
Moreno is one of many women working eYery night' six
'liansnational corporations manufacturing goods in chittagong
only pay workers
200-toi hydraulic stamping press
HD Electronics. Rosa op.*' a loses 300 pesos rrl average of $48 a month or about $1.50 a day (ntlze, zOts).
a week' If she misses a shift'
she
days a week, for 1,300 pt'o' * $100
from her weeklY wage (Bosque' 2013)'
Thelatestdatafromtt'erloestimatesthat'in2006'66millionpeoplewere were women
employed in over 3,500 EPZs in 130
countries' the majority of whom
a significant increase from
ILo estimates ffiqlx S" I ffiv*ry$ay W*r'k ffixpenimmc*s
(Boyenge, 2007). These numbers represent Corporate Responsibility and The Human Cost
inlggTwhen22,SmillionemployeeswerecountedinS45EPZslocatedin93coun-
the rapid growth in EPZs: transnational of Cheap Clothing
tries (ll-tl, 1998). The main 'e"son driving non-unionized'
easy access to large numbers of
companies (TNCs) wishing to gain
(Dunaway' 2014)' This functions to keep
low-wage *ort."-t'ftiuni*o*tn
and service activities in the cort'
ma"t'facturing
high-paying, t,o*f"ag*-i'ie'lsit"
low-wage' labour-intensive fragments
countries, while .utsJu"tt'g ot olTshoring (Fernandez-Kelly'2007t
of low-income countries
of commodity chains to theitpzs
and Matthews' 2009)'
C"itugtl.. and Zarsky, 2007; Sargent
has been an expansion of manufacturing
Over the past three ctecadei' there
including clesignated areas tll
enclaves in many South ancl East Asian countries,
China.Thesezonesareindustrialareasspeciallysetupbygovernmentstoattract
employment.lncentives to transnationrrl
foreign direct investment and to create ol
io ont'*t within such zones include duty-free imports
companies choosing
rawmaterials.Most,o,,..u,.exemptfromthenationallabourlawswhilehtrst
governmentsprovidetransnationalcorporationswithgenerous,andinsomecascs.
long term, tax concessions'
Bangladeshi government' for examplc'
When it comes to trade unions' the ttt
the fact thaieven after the 2014 amendments
actively promotes its in" Uy tn*g
theEPZAcf,traditionaltracleunionactivitiescontinuetobeforbiddenbylawarrtl
strikesremainillegal(Mirdha,2014).Whileworkersarepermittedtoformworl<ct Expttt l
from Human Rights in Bangladesh's
welfare associations (wwe)' reports compalliur'
processing Zones in<licate thatlhese councils are not in place in most
Thelackofunionsdoesnotmeantheabsenceofindustrialconflict,Asimportitttl
forestablishi,,gindu,t.iulpeace,EPZShavetheirownsecurityforces,or..irrclttrr
order' In 2010' thousands of workcr
r
trial police," specific"lly trained to maintain
clashedwithpoliceatthesouthKoreanYoungonefacilityintheChittagonlil|7 |ttttt
where it houses 13 garment factories
located in southeastern Bangla6esh, and Bttsitterq
(see more at Human Rights
were killed and hun<1reds ioundedn
l)laza
I und
CountrY Guide, 2014)'
to Sarn lVaher ind rh
WheredoesNikemakeitstrainers,orWrangleritsjeans?Intlreslmclllrt.t. llt,tt evcryo|("', \A/,r{lr, \/r,r{, ',il rl,rntn low to start with lt's not compensation
corPttratiotrs lil<c wirlnrirrt' Mothct'crttr" r', rn
Raleigh make its bikes antl transnatiot.tnl l.rlc
lr't'r'" l'ltrlrtttitt'ctttiertls to llshing
l'esco ([IK)' lrntl I{ccl-rol< Inakc evcrything c Lutlittttryl
'llre ( )lrittrrg'orrl" t'xl)()l t l)l()( t"''itll" t ottt' (lrl'7) irr llitlllillrtlt'slr
ls
rrtltl llrrst'lrirll eirps'
9 The Movement of Work and Workers I83
182 Crises in Canadian Work
other oECD countries, Canada ranks sixth in terms of the share of immigrants in its
ropulation with the foreign-born accounting for 20 per cent of the total population.
replace income that was lost" (Hoskins, 2015)
Even
the true sense; it,s purely to l
moredtsconcerting,withtheexceptionofCanada,sJoeFreshandPrimark,wasthe Immigrants are well educated. For example, in 2012, 42 per cent of permanent
disaster. For example, walmart'
slowness of companies to respond financially to the rt'sidents between the ages of 25 and 64 years had completed some post-secondary eciu-
of over $480 billion (2015) donated an esti-
the world,s Iargest retaiIer with net sales , .rtion (OECD, 2014b: 242). The foreign-born population is on average more educated
mated$lmillion.AccordingtoKalponaAkter,executivedirectoroftheBangladesh llrirn across OECD countries with 52 per cent reporting some post-secondary education
(scws): "We believe it could have been sorted out by
Center for Worker Solidariiy r ornpared to 31 per cent across OECD countries. Thirty-eight per cent of immigrants
phone calls. They have money, but they
these companies in a few minutes with a few to (lanada come from an OECD high-income country and 46 per cent come to Canada
responsible people' who
don't want to take responsibility. Ultimately they are the
in a very bad shape emotionally I rrrm a country with the same oflicial languages of either English or French (OECD, 2012).
made these children orphans.nd p,t these families
On average, over a third of immigrants to Canada since 2010 have completed
and financiallY" (Hoskins, 2015)'
ltWaSnotuntiltheGTmeetinginGermanyinJune20l5andundertheleader- ';oure post-secondary education. Since 2000-2001, immigrants have represented
I I per cent ofthe increase in the highly educated labour force in Canada, but only
shipofGermany,sDrAnjaTrebes,who,,calleduponthebusinesscommunitytoclose
against the backdrop that reSpon-
the funding gap of $2,4 million as Soon as possible 'l per cent in the United States and 14 per cent in Europe (Dumont and Liebig,
the highlighted by the German presidency of
sible supply chains are one of issues l{)14). In addition, immigrant students are becoming one of the main sources
reach $30 million was made
the G7" (Hoskins, 2O'1 5). The frnal donation needed to ,,1 highly skilled foreign labour in all or,cp countries. There is ample evidence
anonymously.TheRanaPlazaDonorsTrustFundreaCheditsgoalof$30millionover rlrat fbreign education from non-oECD countries is largely discounted in the host
However, the workers at
two years after the largest industrial disaster in the world
later' , ountry's labour market. Therefore, after graduation from university, many inter-
Bhopal are still waiting for their money 30 years
ForanoverviewofbrandsthatWerelinkedtotheRanabuilding,aSWellas rrrtional students decide to remain in Canada or other OECD countries. Employers
visit wrnw cieanclothes'or9 , lsily recognize their domestic credentials so that there is little uncertainty regard-
brands that have a sourcing relationship with Bangladesh,
/resources/rana.plaza-actual-and.potential-donors-listed-by-gT.countrylvieW. rrrs the actual "value" of the degree (Dumont, 2014).
Among skilled immigrants who entered Canada in the 1990s, there was a
,lisproportionately high concentration ofoccupations in the IT sector, specifically
, rrgineering and computer-related occupations. As a result, their average earnings
lmmigrant Workers, Migrant Workers, rlt'r.e also disproportionately impacted by the collapse of that sector at the begin-
and the Quest for Social Justice rring of this decade (Government of Canada,2012).
severitl As noted above, Canada consistently has one of the highest rates of
As we saw in chapter 5, canada's immigration policies have undergone
admission and by single cat rrrrn-rigration among OECD countries. Moreover, as Table 9.1 shows, even after the
changes. Today, canada sets annual targets for total
r((cssion of 2008-2009, there is near equality in employment rates between the
egoriesofimmigrants'Thetargetsrangefrom240'0001o265'000andrepresctrl
According to t'r
.Iughly 0.8 per cent of the totai population of about 35 million.
i*l-,,lg,atio, target levels throughout the recession, atttl
oECD, Canada maintainecl Iable
evenovershotthetargetto2Sl,000in2010,theflfthhighestintheoECnaftertlre / 000
the past several dectrdcr'
United States, the United Kingdom, Italy, and Spain' Over Employment/Population Ratio 2000
federal government policy his relied on immigration
to swell the ranks of aviril 2012
64 per cent of women were classified as econornic imrnigrants. From 2010 until
Canadian-bornandimmigrant-bornpopulations.Intermsoflabourforcepartici.
females 2013, the percentages for both men and women declined to approxirnately 60 and
i" tutlt between banadian-born and immiSral;forn
pation, the disparity 54 per cent for both sexes.
isthelowestamonguEcl,.ou,,t.iesandthedifferenceamongmalesremains
rate of immigrant The two major categories within econornic immigrants include skilled workers
between the unemployment
negligible. However, ti" aiffttt"te per cent in and business immigrants, Business immigrants include investors, entrepreneurs,
from 7 per cent in 2000 ro 9'2
men and native-born men increased the disparity and self-employed individuals. Entrepreneurs are defined as immigrants who have
to native-born women'
2012. For immigrant women compared business experience of at least five years prior to their application, have a legally
2000 to 34 per cerrt2012'
decreased from 40 per cent in clefined net worth of at least $300,000 and can create at least one full-time job for a
Recentdatashowthatearningsclisparitiesbetweenrecentimmigrantsantl Cnnadian citizen or permanent resident (Canada, 2015). However, while nonstan-
Canadian-bornworkerscontinuedtoincreaseintothefirstdecadeofthe2000s.l}y
85 cents dard employment has been woven around gender and age as we discussed in Chap-
contrast, in 1980, *'grant men with employment income earned tcr 6, it has also intersected with immigration and years of residence in Canada.
"ttt" had dropped to *tt'' ny 2000' the ratio
for each dollar received by Canadian-born Hira-Friesen's (2014) examination of Canadian Labour Force Survey data from
67cents,in2005to6:centsbutreboundedtoT0centsin2008.Thecorrespondins
in 2000 and 2006 to 2012 in terms of precarious employment (involuntary part-time work,
were 85 cents in 1980' 65 cents
ratios for recent immigrant women lcmporary contracts, or multiple job holding) amongst recent and established
56centsin2005'Howt"t'thesamereportnotedthatlow-incomeratesforimmi irnmigrants reyeals alarming and growing inequities. Recent male and female
grantswhohavebeeninCanadaforlongerperiodsoftimearesignifi.cantlylowcr irrrmigrants (who arrived in the past five years or less) are much rn ore likely (three
(Gor..rr*.t t of Canada, 2012)'
tirnes for males and 2.5 times for females) in comparison to their Canadian-born
Table 9'2 provides evidence for
the increasing importance of economic
r()ntemporaries to hold involuntary part-time positions (20i4: 108). Not only are
immigrants into Canada since 1990'
In 1990' 45'7 per cent of permanent immi-
immigrants' lhey over-represented in involuntary part-time work but the trend is increasing
44'8 Per cent as female economic
grants were classified as male and (2014: 48). Similarly, recent female immigrants holding multiple jobs have steeply
Thatpercentagecontinuecltoincreaseuntil2010when6g.3Percentofmenatrtl irrcreased since 2006. Further, recent immigrant women are almost twice as likely
,rs Canadian-born women to be temporary workers. As a result, recent immigrants
Category, 1990-2013 .rre often underemployed (relative to their educational credentials) and earn-
Table 9.2 Permanent Residents by Cender and
2005 2010 2011 2012 2013 irrg lower wages than more established immigrants and Canadian-born workers.
CategorY 1990 1995 2000 2009
lrr 2009-10, close to 40 per cent of foreign-born immigrants were overqualified
Males Ior their jobs and 60 per cent of new immigrants find themselves in low-skilled
25,049 26,,g7g 24,946 23'762 21 ,54 1 33,73t1
Family class 33,634 32,256 23,790
|a/o 11.2olo 19' 5% 21.8olo 27"1,, l,rlrs within six months of their arrival (Burleton et a1.,20L4:21). Similarly, a recent
31.7olo 7A.7ok 19.6% 72
30.8%
72,669 80,900 18,711 94,948 80,01 3 82, ,773 75,61 \rrrvey of 450 Toronto immigrants reported, for example, unemployment rates
Economic 49,931 53,720
64.10/o 69.3% 65.7o/o 65.40h 60.6"1, I
,rvcraging 23 percent, high rates of very low income and frequent underemploy-
45.7olo 527olo 64.70/o 63.3%
',l1,545
13,967 11,1) 4
s.436 16,124 18,557 1 1,596 1 2,608 rrrcnt as only 3 per cent were in the professional occupations they occupied before
Refugees 24.027
22.00/o
1
Once in Canada, these workers are under complete control of the four mairt Questions for Critical Thought
players: the Mexican and Canadian governments, SAWP management, FARMS'
and employers. These powerful groups have final say over the assignments of tlrc
workers and their timelines within Canada. As such, anything these workers miry
require, such as a remittance-sencling service, is available but at a handsome prolil
to ihe provider. In fact this arrangement makes these migrants a "captive markcl"
2.
for intermediaries and businesses targeting migrants'
With regaril to recruitment, often the intermediary is a family member who
"knows thc 3.
has already worked in cana<la or a private agent who is paid and who
"l
ropes" and can assist others to find work in Canada' As one worker confided: lt'
(a private agent) asked me if I was interested in joining the program to go to canad0
He told me that for 1000 Pesos ($75-$100 CDN), he could help me get in"
(qtd irr
Suggested Further Resources
Hennebry, 2008: 348). Because these workers are temporary, they need special st:r
vices. The growth of international tCTs and services such as international teleph<lrrc l'rrrta, Donatella Della, Massimiliano Andretta, Lorenzo lvlosca, and Herbert Reiter. 2006, Globalization
providers and remittance-sending services take advantage ofthe isolation ofthcs.' fiom Below; Transnational Activists ond Protest Networks.l\,4inneapolis: University of IVlinnesota
Press. When violence broke out at the demonstrations suirounding the 2001 CB summit in Cenoa,
migrant workers. communicating with family members back home is importrlrtl Italy the protests proved to be a critical moment in the global justice movement. Globalizatian from
but it costs the worker to use international telephone cards. Because there are n(l Below analyzes this movement from the viewpoints of the activists, organizers, and demonstrators
provisions for access to telephones at their workplaces, workers typically canll()l themselves. The authors travelled to Cenoa with antr-C8 protesters and collected data from more
receive calls and must Iind telephones offsite to use during free time in order
to than 800 participants. A year later, they surveyed 2,400 activists at the European Social Forum in
Fl ore n ce.
communicate with their families. In addition, workers must send money honlc
Wallerstein, lmmanuel. 2013. Uncertain Worlds. World-systems Analysis in Chanqinq limes. New York:
for their families' basic needs and/or debt repayment, For this, they rely on banlts Paradigm. This book is the definitive presentation of the evolution of world-systems analysis from
and/or Western Union despite the costs associated with transfers in addition lo the point ofview of its founder, lmmanuel Wallerstein. The book includes a conversation between lm-
exchange rate fees. As a Mexican worker explained: "'Yes I come here to work
str manuel Wallerstein and Charles Lemert about the history ofthe fleld as it has come down to the pres-
enttime, a long essay by Charles Lemert on the uncertainties ofthe modern world.system, as well as a
I can send money home. It is my life, for my family and to pay my debts, and therc concluding essay by Immanuel Wallerstein, No other book lends biographical, historical, and personal
fore yes, it is difficult, but I have to"' (qtd in Hennebry, 2008: 350)' nuance to world-systems analysis.
clearly, the group of "second generation" migrant labour benefits tlrc
Canadian agricultural sector ancl the growing migration industry associated witlr
it. Yet a succession of private agents profit handsomely throughout the migranl Suggested Websites
workers' exploitation cYcle. rtrrrnlttlllh
Conclusion oxfam
This chapter began with the conceptual framework to understand the movemcttl
of work and workers in the global economy. From there we moved to an examitltt
ks
"t'c
tion of the exploitation of farm labour and child labour in two of the world's tnosl
l)i)Of.
industrial clisaster in recent history. Finally, we brought the exploitation of lithortt lrr111 ,,111111 vidco st't1rrrr,rrl,, llr,rl lrr,rlrrwrllt llto creatiorr of thc Ci\40 coil.on seed and the
from low-income countries horlc to (lirrrlrlu with "sccond gcncrirtiott" tclllporillV I rrvt'tlittrl ttl tollott ttt I\It',',r'.', lrlr l',lt{l lrlorrn,rlron;trtrl rottrrlunic;itions tccltnolor;ics rrrr
nrigrant worltcrs.
190 Crises in Canadian Work
automated pickers to collect the cotton with a handful of workers (the US remains the #i
producer of cotton), then video #2 follows the cotton to Colombia, lndonesia, and Bangla-
..
desh where it is made into cotton fabric using automated machines that employ only a small
number of workers. The third video allows yoi, to tu. how women's cotton t-shirts are made
in Bangladesh and men's cotton t-shirts in Colombia, and video #4 shows how the t-shirts are
shipped via containers to the U.5.
Notes
1, Harold tnnis, with his staple theory of economic growth and development, is the acknowledged pro
genitor of the Canadian political economy tradition. A "staple" refers to any resource intensive exporl
or commodity, According to the staples approach, Canada's status as a capitalist nation was inextrica
bly linked to its colonial past. An examination into Canada's patterns of international trade and capr
tal transfers became a significant theoretical and methodological concern for those working withirt
the political economy trrdition until rouqhly the turn of the twenty-first century. The "new" political
economy approach became associated with such terms as "growth through trade, not development"
or Watkins (1967) "inhibiting export mentality." For a more detailed examination and critique of tho
foundational literature ofthis political economy approach see Glenday ('l988; l9B9).
2. While the world-systems global commodity chain (wSCCC) and global commodity chain (cCC) support
ers agree that the commodity chain concept is a useful construct for thinking about the international
division of labour characteristic of capitalist production, there are signifrcant differences between tho
two schools. World-systems theorists understand commodity chains as consisting not only ofthe Stepr
involved in the transformation of raw materials into flnal goods, but also as webs connecting that sol
of productive activities with an equally critical input: namely' the soLiar Ieproductron ol human labrrrrt
power, Additionally, world-systems theorists are interested in how commodity chains structure and
reproduce a stratified and hierarchical worid-system. On the other hand, CCC researchers understand
commodity chains as sets of inter-firm networks which connect manufacturers, suppliers, and subcott
tractors in global industries to each other and to international markets. They are principally concernorl
with the question of how participation in commodity chains can facilitate industrial upgrading lot
developin g country exporters.
3. While Starbucks is a transnational corporation, the main players remain the big four coffee roastert,
Kraft, Nestl6, Procter & Gamble, and Sara Lee.
4. The fact that there are no traditional trade unions in these rpzs does not mean there is induslrial
peace, ln 2010, workers were waiting for the implementation of the first government mandated now
wage increase since 2006 which would raise their minimum wage from $25/month to,$45/month
After several months, garment workers were demanding the implementation of a new minimum warlo
in the Chittagong EPZ. There were similar protests around Dhaka lThe Koreo Times,2OlO).
5. ln 2008, the Turkish population, who were once "guest workers," represented the largest settled rrll
grant population in Germany with 2.5 million people, followed by ltalians,6reeks, and Poles