Workers Rights in a Global Economy: Recap of Chapter 1

The genesis of the ILO

The industrial revolution created a huge urban proletariat. A socialist labour movement aiming to abolish
capitalism was growing rapidly.

In the aftermath of World War I and in the light of the revolutionary uprisings throughout Europe the ILO was
founded to support the transition from class war to class cooperation.

The reasoning for creating the ILO and International Labour Standards were threefold:
To eliminate inhuman working condition
To build social peace as the foundation of international peace
To avoid a competitive raise among nations

While some progress has been made reality falls short of the high aspiration at the founding days of the ILO.
The decline in workers radicalism, growing capital resistance and government reluctance resulted in
insufficient support for a strong ILO as it was envisaged in the founding days.

Workers Rights in a Global Economy: Recap of Chapter 1

The principles of tripartism

The ILO is the only international organization were not only governments but also non- governmental
organization (employers and workers organizations) have voting rights and decision making power.
Governments have 50% and workers and employers 25% of the votes in the International Labour Conference.

Tripartism is not an aim in itself but a mechanism for capital, labour and governments to find common
solutions for labour and social policies.

Function tripartism requires as a minimum:

Independent workers and employers organization that represent and have authority over a significant
part of the workforce and the enterprises.
Democratic governments that gurantee the right to organise and bargain collectively and provide a
conducive environemt for genuine substanitve dialogue.
A willingness of all sides to accept the demands and very existence of the counterparts as legitimate.

Workers Rights in a Global Economy: Recap of Chapter 1

Labour Standards and international competitiveness

Higher Labour Standards can on the short run increase production cost.

In the medium and long term higher labour standards and wages tend to lead to efficiency gains as workers are
better nurtured, healthier, more motivated and hence more productive.

In particular among countries with similar levels of productivity and labour supply, short term costs increases
in one country can lead to relocation of production.

These countries phase a collective action problem. Whoever improves labour conditions might lose
employment, if other fail to do the same.

In the past national regulations helped to solve this dilemma nationally. In a globalised economy, the universal
application of at least core International Labour Standards would be an important step to overcome this
collective action problem.