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Labour standards, union engagement and social justice – a workers' agenda for DFID in Asia

Report type
Research and reports
Issue date
TUC submission to the Department for International Development

Asia 2015: strategic options for DFID

We are in agreement with the broad thrust of the DFID's approach to Asia's developmental challenges and opportunities and acknowledge the need for mature partnerships with limited but clearly identifiable objectives based on mutual respect and welcome this opportunity to put forward our views on some points of particular relevance to trade unions, raised in the Discussion Paper on Asia 2015 Strategic Options.

We note that the Department considers the promotion of effective engagement between Asian governments, their private sectors and civil society to be its primary objective and that it intends to stimulate new forms of public private partnerships, for instance, in health service delivery. Free access to public services - notably health and education - has been a prominent feature in many countries in Asia and it has contributed significantly to alleviation of poverty. We would recommend utmost caution on any attempts to transpose reforms that have proved to be very controversial in the UK on to public services in Asia.

We are not sure whether the comparative advantage of the Department lies in working with Asian governments and building political relationships, although we do appreciate the need for both. We agree with the strategic priorities set out in the paper for achieving Millennium Development Goals. However, we notice that progress on respect for core labour standards is not among the outputs envisaged for 2007-11 or indeed among the identified strategic priorities. We would therefore take this opportunity to stress the need for respect for labour rights and the importance of decent employment opportunities and for action on growing inequalities in Asia. As acknowledged by the Department in the Core Labour Standards and Poverty Reduction, the realisation of workers' rights can make a critical contribution to the reduction of poverty.

Labour rights

Only eight countries[1] out of 40 ILO member countries in the Asian and Pacific region have ratified all the conventions relating to fundamental rights at work. A few countries have denounced some conventions ratified by them[2] . Moreover, countries have often been slow to introduce laws to give effect to the rights enshrined in the conventions[3] . In fact, there are a large number of well-documented cases of violations of trade union rights, ranging from brutal repression to undue interference with the internal affairs of unions in all, but a few countries in the Region[4] . Some countries have imposed severe restrictions on the right to organise and collective bargaining[5] . Labour law enforcement mechanisms remain weak, notably in Indonesia and the Philippines, while governments pay little attention to improving the efficiency of industrial relations systems. Although many governments tend to disregard respect of core labour standards in the search for economic gains, it is worth stressing that countries stand to benefit significantly from strict adherence to labour laws compatible with ILO conventions. The European Union, for instance, has put in place, under the Generalized System of Preferences (GSP), special incentive arrangements for countries with proven record of respect for workers' rights[6] . We would welcome any initiative by the Department to encourage governments in Asia to make an effective and meaningful contribution to the protection and promotion of workers' rights.

There is growing concern over trade union and human rights in the People's Republic of China where the Government does not recognize freedom of association and the right to collective bargaining[7] . The non-existence of independent trade unions has caused considerable difficulties for Chinese workers in a number of areas. There are reports of persistent wages and pensions arrears and poor health and safety conditions in workplaces. Moreover, there is evidence of incidence of forced labour and child labour in China. As China moves towards a full market economy, there seems to be no scope for Chinese workers to organise themselves and assert their legitimate rights within the new system, which could only increase the risk of social instability in future.

The proliferation of export promotion zones has long been a distinctive feature of the economies in the region, which has contributed substantially to economic growth and increased trade. Unfortunately, with a few rare exceptions, the expansion of special economic zones has been at the expense of fundamental rights at work. Free Trade Zones have become almost synonymous with extraterritoriality in so far as workers' rights are concerned, although many Asian governments are dismissive of such claims. Numerous complaints have been made to the ILO concerning serious violations of trade union rights in export promotion zones in a number of countries in Asia[8] . Many employees in the EPZs are young women from economically backward rural areas who can be particularly vulnerable to exploitation by employers. It is very hard for them to join trade unions to protect their rights unless labour laws expressly guarantee the right to freedom of association. It is, therefore, imperative that governments take adequate measures to ensure the effective enforcement of labour law in EPZs.

Countries in Asia and the Pacific have grown in importance both as providers and recipients of migrant labour within and outside the region. Singapore, Malaysia, Thailand and South Korea are recipients of migrant labour in substantial numbers while many other countries in the Region -mainly, Bangladesh, India, Indonesia, Pakistan, the Philippines and Sri Lanka - provide migrant labour for countries in the Middle-East. Remittances have become an important source of foreign exchange for a growing number of countries in Asia and are having a significant impact on development[9] . Nevertheless, few countries have made meaningful efforts to protect the rights of migrant workers in the recipient countries where trade union rights are either non-existent or do not extend to migrant workers. The ratifications of the International Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families have so far been few and far between[10] . The Convention is an important milestone in the international effort to prevent the exploitation of migrant workers by providing a set of binding international standards to address the treatment, welfare and human rights, and to prevent and eliminate their exploitation. It is important to note that, while Azerbaijan, Bangladesh, the Philippines, Tajikistan and Sri Lanka have ratified it, none of the important recipient countries in Asia or elsewhere have done so.

Currently, some small island states are not members of the ILO, although they are members of the Asian Development Bank and other regional institutions. Being inhabitants of a small state need not be a barrier to the entitlement to, and enjoyment of, basic labour rights. Fiji Islands has been a member of the ILO since 1974. It is one of the eight countries that have ratified all the eight ILO conventions pertaining to fundamental rights at work. Solomon Islands, Kiribati, Vanuatu and Samoa have become full members of the ILO, recognizing the importance of labour rights. The Maldives is a case in point. Although the Government in the Maldives does not expressly prohibit unions, it does not recognize them either, which has led to violations of fundamental labour rights in some key sectors like tourism.

According ILO estimates, there are some 127 million child workers in the 5-14 age group in the Asia and Pacific region, about 62 million of whom are engaged in work considered hazardous. Child labour robs children of their childhood and education, damages their health, exposes them to numerous dangers and helps perpetuate a vicious circle. The international trade union movement in close collaboration with governments and other partners has long campaigned against child labour, which culminated in the adoption of the ILO Convention 182 in 1999. It is heartening to note that the majority of member countries have ratified the Convention within a short period[11] . Nevertheless, much remains to be done in terms of translating its aims and objectives into reality.

Engaging with trade unions

The Asia-Pacific Region of the International Confederation of Free Trade Unions (APRO) has 40 affiliated organisations in 28 countries with a membership of 30 million workers.

As well as supporting a labour standards approach, we would want DFID to put into practice the approach underpinning the 'How to Work with Trade Unions' guide drawn up by the Department and the TUC in its work in Asia. In particular, this would involve:

  • engagement at regional level with APRO and the equivalent regions of the sectorally-based Global Union Federations. This would apply to policy development and implementation, and it would be good if DFID could encourage other regional bodies such as ASEAN, the Asia Development Bank etc to engage with these regional structures;
  • engagement at country-level with national trade union confederations and the relevant sectoral affiliates, so that DFID offices are in regular contact with them over issues of policy, the development of good governance and so on. In particular, trade unions should be seen as potential partners in work on education (most countries have a teachers' union, often involved with the Global Campaign for Education); health services; anti-poverty strategies generally; health and safety in the workplace; women's empowerment; and the development generally of active civil societies; and
  • support for union:union links across Asia to encourage the spread of experiences and initiatives from one country to another.

In this work, trade unions in the UK and elsewhere can be key interlocutors for DFID - many contacts exist between the TUC and national centres (especially in Commonwealth countries such as India, Malaysia, Pakistan and Singapore), and between TUC affiliated unions and their equivalents. The TUC is currently running projects in Indonesia, Sri Lanka and Thailand, and the Australian trade union movement is also active in the region.

Inequality and social justice

Economic growth has not brought about a commensurate increase in employment. The ILO Global Employment Trends in January 2006, reported that 'unemployment rates in Asian Sub-regions did not change markedly. East Asia's unemployment rate was 3.8 per cent, thereby remaining the lowest in the world. South Asia's unemployment rate was 4.7 per cent and South-East Asia and the Pacific's was 6.1 per cent.'[12] However, as many analysts[13] have pointed out, low unemployment in many countries in Asia is partly a reflection of poverty. The poor in the countries concerned have no alternative, but to engage in some economic activity even when the remuneration is meagre. Moreover, it is necessary to take into account under-utilization of labour in order to gauge the true extent of unemployment in the region. Unemployment and underemployment remains a serious problem, although official unemployment figures continue to paint a different picture. In this regard, we strongly feel that the DFID in its relations with Asian governments should persuade them to take into serious consideration the recommendations of the World Commission on the Social Dimension of Globalisation in order to ensure decent employment opportunities for all.

There are indications that economic growth has exacerbated existing inequalities in income distribution. Reports from China suggest that recent trends in economic growth have benefited only a section of the population - about 20% - according to Chinese sources. In the Philippines, inequalities in income are reported to be greater than in Japan or in the United States. The income of the richest ten percent of the Filipinos were ten times that of the poorest ten percent in 2003[14] . Moreover, growing inequalities are found to be closely related to the ever-increasing gap between the urban and rural areas in a number of countries, notably, in China, India and Thailand, according to a UN report[15] .

The last decade has also witnessed a significant increase in the informal sector employment. According to a UN estimate, the share of the informal sector workers in the non-agricultural labour force could be as high as 65% in Asia, which is likely to result in greater inequalities and erosion of social cohesion.

The Tsunami, which struck part of Asia with devastating impact in December 2004, has exposed the vulnerability of the region to natural disasters. Some countries in the region have suffered huge loss of life and property and massive damage to infrastructure. The economies concerned will take years to recover. It is important to ensure that every effort is made to support people to come to terms with the appalling consequences of the tragedy, that assistance from the international community is put to good use on the basis of need and that fundamental human rights of the people concerned are respected in the long-term rehabilitation and recovery phase.

HIV/AIDS

Some 8m people are estimated to be living with HIV/AIDS in Asia, which, in absolutes terms, places it among the worst hit regions in the world. Although the level of incidence of the pandemic remains low in percentage terms, the epidemic has the potential to nullify painstakingly made progress over decades. Economic growth is likely to increase rural exodus; migrant workers in urban areas will be at risk. UNAIDS is particularly concerned about Pakistan and Indonesia and has advised the two countries to scale up their programmes. The situation in Thailand is considered to be particularly worrying. The need for appropriate and effective measures to protect the employment and human rights of people living with HIV/AIDS in Asia cannot be overemphasized.


[1] Fiji, Indonesia, Mongolia, Papua New Guinea, the Philippines, Sri Lanka, Syrian Arab Republic and Yemen

[2] Malaysia denounced C105 in 1990. Singapore denounced C5, C7 and C15 in 2005. Thailand denounced C123 in 2004.

[3] Sri Lanka shelved the implementation of the National Workers' Charter following objections from employers.

[4] See ICFTU Annual Survey, 2005.

[5] See, for instance, individual observation by CEACR on C98, in the case of Malaysia, ILO, 2005.

[6] Only Mongolia and Sri Lanka currently benefit from GSP +.

[7] There are of course free trade unions in Hong Kong - our comments refer to the mainland .

[8] For instance, in 2005, following a complaint, the ILO Committee of Experts on the Applications of Conventions and Recommendations called upon the Government of Bangladesh to amend legislation to ensure meaningful respect for Freedom of Association in its EPZs.

[9] Migrants' remittances are estimated to be around US$1.5bn per year for Sri Lanka.

[10] The Convention came into effect on 1 July 2003. The Committee on the Protection of the Rights of All Migrant Workers and Members of Their Families, which monitors the Convention, reported only 25 ratifications in March 2004.

[11] 158 countries have so far ratified C182.

[12] ILO Press release, 26 January 2006

[13] Amartya Sen expressed a similar view in 1975.

[14] The National Statistical Co-ordination Board, Philippines. 2005

[15] The Report on the World Social Situation 2005

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