INTERNATIONAL

Trade Unions, Globalization and the WTO process

Klaus Zwickel, Germany

"Modern governance in the 21st Century" A few weeks ago, an international conference of 14 heads of state and government took place in Berlin, Germany. The conference of reform-oriented governments centered on the consideration of "Modern Governance for the 21st Century". Demanded in the closing committee among others were the following:

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

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

Modern governance does not mean to us, if politics passively gives in to the compulsion of globalization 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 globalization is politically steered up and the consequences socially flanked.

Globalization:

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 outmaneuver against one another, instead they must remain connected together.

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

Globalization, opening of labor market and trade liberalization remains 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 richer at the cost of poor nations, misjudges the possibilities that lie in globalization.

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

We know that liberalization of word markets 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 labor norms and the standard of environment in world trade.

The main labor norms/trade union rights:

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

On the topic of "Social Clauses" and "Labor 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 recognized main labor norms are incorporated in the regulation of the global economic system. The agreement on this relates to:-the freedom of forming unions and protection; -the right to form unions and the right to collective negotiations; -the prohibition of discrimination in occupation and job; -the prohibition of forced labor and; -the eradication of child labor.

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, which has made the freedom of markets mandatory in its objectives. Therefore, it must also secure the main labor 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 industrialized 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 cancellations 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.

Globalization 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 labor 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 statement given by the International Confederation of Free Trade reveals the ugly faces of globalization Unions-ICFTU-that in 1998.

"Globalization with human face" can only materialize, if fundamental rights are finally implemented and agreements honored. Therefore, I support the appeal made by Juan Somavia, Director General of the ILO.

"All 175 member states of the UN must without restrictions and directly respect the fundamental rights to freedom of organization 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.

International Metalworkers’ Federation-IMF:

Politics in the global age always leads to less national solutions and opportunities and requires more international cooperation. With the globalization of the economies, as well as in the global interlocking, the trade unions, therefore, have to react with stronger internationalization of their structures. We must hold discussions to explore as to how we can further develop ourselves in the role of a Global Player.

International campaign on the level of multinational companies must have to be promoted and co-ordinated. We require more counseling of global companies and agreements on worldwide applicable behavioral regulations for the multinational companies. Their transformation and adherence must e.g. have to be implemented by the member trade unions of International Metalworkers’ Federation with closer coordination 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 and can not also totally stop them.

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

Europe and rest of the world:

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 EU. To be assesses from our point of view 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.

The criteria must, however, also count for the Association of Southeast Asian Nation-ASEAN-, the Asian-Pacific Economic Cooperation-APEC- the South African Development Council-SADC- or the organization of African Unity-OAU. And of course these criteria are also valid for the countries of South Asia.

Conclusion:

Uncontrolled capital flow and gigantic financial transfers, world-wide operating enterprises, big mergers and the segmentation of labor 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 labor sector engraves on the individual behavior patterns, it changes the social guidelines and influences the collective possibilities or 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 organizational 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 everything but superfluous. 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-Nepal.