g Working conditions
~ worldwide
OUTLINE
* Working conditions and labour relations
+ Globalisation
CHAPTER STRUCTURE
‘Twit ro Leann 1. Working concitions outside ofthe European Union +2, The situation
‘or workers inthe USA 3, Poverty an low wages 4, Working condtions and human
Fights +5. Factory Asa 6. Supply-chain slavery
“Twiero awaits 1 Reading ks 2. Vocabulary +3, Language point
vento vou: 1. Express yourself+2, Go further
GET STARTED!
Discuss the folowing questions:
“What do you know about working condition inthe USA?
2. What do you know about working conditions in emerging countries?
‘3. What responsibilty do European consumers and European companies have towards
‘workers in other counties?
KEYWORDS
clild labour + bt bondage + emerging countries» fal workweeks forced labour
+ garments» globalised labour market high-street brand human trafficking
* multinational company + on-site dormitory outsourcing poverty «relocation
+ slavery «subcontracting supply chain» sweatshop» tose chemicals trace «unfair
‘treatment wage theft swerkplaceah
0 Working conditions outside of the European Union
Social rights in the European Union have evolved over many years. It has been
acknowledged that workers can only work so many hours and that if their physical and
ental health are in good condition they work better. Paid holidays and paid leave for
Parents, limits on working hours and a minimum wage are guaranteed in national and
European laws. However it is not the same in the rest of the world where workers do not
hhave the same guarantees. Working weeks are generally longer in countries outside of
‘the European Union, with some countries having a culture of overwork. Most countries
guarantee 2 minimum wage and some paid sick leave and maternity leave, but many
workers still do not have basic rights.
Qo The situation of workers in the USA
Despite being one of the major world economies, the United Statesis the only developed
‘country which does not provide social. Protection for all of its workers at a national.
level, Laws have been implemented at local and state level for fair workweeks which
guarantee regular working hours because many workers, particularly those in low-
‘wage industries such as in retail and fast-food, face unpredictable, unstable and often
insufficient working hours. Full-time working hours are longer than in Europe. Paid sick
leave depends on the status of the employee; most full-time employees benefit from it
but not part-time employees.
There is no guaranteed paid matemity leave or parental leave at a national level,
Paid parental leave might be provided as a benefit by employers. In some situations
mothers and fathers can take unpaid leave depending on how long they have been
in the company and how big it is. Employees can usually go back to their job after
having a baby, but many Americans cannot afford to take time off without pay. There
is no minimum statutory paid leave at a national level, but the majority of private
employers offer paid leave to their employees. After one year of service, full-time
employees earn on average 10 days of paid leave and the amount of paid leave offered
by private employers increases with length of service in the company. There is also an
average of eight paid public holidays a year, but some employers offer ho paid leave
at all. The amount of the minimum wage is also decided at local or state level - there
is no national minimum. Unions have little collective bargaining power.
eo Poverty and low wages
The globalised labour market is characterised by relocation
moved to another place -, and outsourcing - when companies p
make and supply their products for them. Many companies from
States have relocated and outsourced to emerging countries
are cheaper and minimal workplace guarantees keep costs doPart Organisations
6 Working cond
subcontracting ~ when the work is done by another company ~ mean that the people
who dothe work are not employed by the company which sells the final product, and that
this company has no legal contracts with the workers or employment responsibilities
Despite fast economic growth in emerging countries with outsourced manufacturing,
low wages and poor working conditions still exist, Under pressure from multinational
companies, governments of emerging countries are sometimes reluctant to enforce
rational laws on minimum wages, overtime and safety standards because they are
worried that this would increase factories’ costs and the companies would relocate
to other countries with lower standards and less regulation, therefore taking away
employment and jobs. Multinational companies which outsource production to
factories in emerging countries put pressure on the suppliers to cut costs so they can
provide goods at the lowest possible prices to consumers in developed countries. In
‘order to stay competitive and continue to receive orders, these contract factories can
keep costs down by paying extremely low wages. The problem for many workers working
in factories in emerging countries is that they live in poverty they are not paid enough
to live on. Their wages do not provide enough for their basic needs including housing,
food, education and healthcare.
ns and human rights
‘Sweatshops are factories where many people work long hours in poor con
low pay.
ions for
When workers do not receive the pay stated in their contract, this is known as wage
theft and can include not paying overtime, not paying for all of the hours worked, not
paying the minimum wage or not paying the worker at all. Wage theft is a violation
of international human rights, but many workers in emerging countries are afraid to
fight for their rights and better wages because they might lose their jobs. Protests
over pay or unfair treatment can lead to workers being sacked or imprisoned, after
which itis difficult for them to find another job. Many workers live in fear of repression,
intimidation and oppression. Trade union membership iis often forbidden and worker
representatives can encounter police violence, abuse and even death threats.
Not only do workers in contract factories receive low wages and have few rights, many.
workers sleep in on-site dormitories a long way from home and family which they see
only a few times a year. Hours can be illegally long, breaks are monitored and workers do
not always have access to clean water in the workplace, Health and safety regulations
are not respected.
Accidents and injury are commonplace, for which workers are usually not insui
in some factories there are even suicide nets to stop workers killing themselves b
of stress and overwork. Exposure to dangerous and toxic chemicals, fires and
lapses have cost hundreds of lives, even though auditing firms had inspected
for safety and given the all clear. .Ghapter 4 Working condi nig
‘The global clothing and apparel sector produces hal of the world's clothes in Asia and
depends heavily on the production of garments in outsourced factories in emerging
countries. series of fatal accidents in badly built factories in Bangladesh and Pakistan
have made many consumers in developed countries question the supply chains which
are used by high-street brands throughout the world.
gmp
» Wn2013,1134 workers died in Bangladesh's worst industrial accident, when the Rana Plaza
factory bulding near Dhaka collapsed.»
98 Factory Asia
“Made in China” isa phrase recognised all over the world due to the fact that most
of the world’s electronic goods, computers, smartphones and machinery are made in
the People's Republic of China (PRC). Neary half of all of the world’s consumer goods
‘are made in Asia. All of these industries provide millions of jobs to men and women
{throughout Asia and have created immense economic growth in the region. For ¢
tong time China dominated al aspects of the supply of mass-produced goods from
the East for consumers in the West, bt mass production of goods in South East Asian
Countries such as Vietnam, Thailand, Cambodia ae indonesia now forms a supply c
s