An Initiative from the Trade Union Movement for Global Job Redistribution?

The trade union movement calls for global implementation of core labour standards. It will resist "the race to the bottom" and insist on humane working conditions, but it will not rectify the imbalance in the international distribution of labour.

Is this even a function of the trade union movement? If it does not concern a trade union movement motivated by international solidarity, then who does it concern?

Employers have never sought an equitable distribution of labour. When companies operate globally their interest in a fair distribution of labour and full employment diminishes even further.

And what of policymakers in the wealthy countries, or the European Union? Few concrete actions suggest that they would independently – and without intense pressure – initiate corrections to the structural imbalance in the international distribution of labour. Neither is Finland, which proclaims its official relations to the developing countries to be "enlightened self-interest", a particularly serious contender in this respect.

While the developing countries have submitted several initiatives seeking to establish a balance in the international distribution of labour, they have had no unifying force behind them. During the decades of the Cold War developing countries were split along the lines of the various competing power blocs and no united third world front capable of exerting pressure came into being even in the 1990s.

With the beginning of the new millennium the third world is still divided in many respects. The most poignant form of this is manifest in continuing armed conflicts in Africa.

In the industrialised countries popular opinion in favour of justice supports a shift towards a more just international distribution of labour, insofar as this does not jeopardise employment and standards of living in the North.

In concrete terms support is demonstrated in the growing popularity of Fair Trade products in Western Europe and North America.

A filibustering approach is most apparent in the selective attitudes towards free trade of governments and the business communities of the industrialised countries. Regardless of their declarations of principle, these quarters have obstructed any change in the distribution of labour in favour of the developing countries through protective import barriers and subsidies to domestic enterprises. Often the same position is shared by the labour intensive sectors of the developed countries, such as textiles and the clothing industry, through trade unions and farmers’ organisations that have lobbied policymakers to continue current protectionist arrangements that perpetuate the unequal distribution of labour.

The best approach for everyone and the fairest overall would be to establish co-operation between the trade union movements of North and South on a programme for a regulated redistribution of labour and to organise a campaign front for this. Such an initiative would involve several non-governmental organisations of the North and South and dozens of governments of developing countries. Towards the end of the 1990s a few people in leading positions in the developed countries also began to speak of a need to balance the distribution of incomes. These speeches, however, did not generally deal with the main condition for achieving this: a change in the distribution of labour in favour of the developing countries.

It is easy to dismiss this idea as an unrealistic dream because there has been no corresponding achievement even at local or national level. The alternatives, however, are frightening. The international distribution of labour led by market forces, with its unfortunate social consequences, is becoming increasingly unfair.

The problems cannot be prevented from getting out of hand simply by ameliorating the undesirable social effects of the rapid acceleration of market forces. The causes must also be tackled. They are to be found in international trade rules and in the structures of the distribution of labour. They benefit a minority of humanity at the expense of a large majority.

Conflicts of Interest must
be Placed Openly on the Table

The global supply of labour is much greater than the corresponding demand. This is the most important reason for the conflict of interest between workers of different countries.

The question in practical working life is, does an order for ship construction, with all of its job-creating effects, go to a South Korean, German or Finnish shipyard? A burning question in a different way is, which transport company will win the next competitive bid for the bus routes of Helsinki or Tampere? Workers on the losing side are threatened with a loss of their hard-won benefits, even though the work itself remains in Finland.

The subsidies, tariffs and import quotas used as tools of trade policy also cause conflicts between workers of different countries. They reflect national efforts to succeed in international competition. To one group of workers their use secures jobs, while to the other group it means unemployment.

It would be in the long-term interests of workers of all countries for the competitive mechanisms that cause conflict to be dealt with openly within the trade union movement. The goal should be to resolve conflicts on the basis of common interests. This will not be easy but other alternatives are still worse and could result in the "race to the bottom".

More than enough Conflict:
the Agricultural, Trade and Development Policy of the European Union

From the perspective of the needs of developing countries the European Union policy on agriculture, trade and development form a mixed package. Agricultural producers in European Union countries receive most of the agricultural subsidies of more than EUR 330 million paid in the industrialised world. These subsidies support the livelihood of producer families, indirectly support firms in the agricultural sector and the food industry, and assist in exporting surpluses. The European Union also effectively restricts imports of agricultural products from the developing countries and from its other competitors by imposing tariffs and quotas.

The losers are dozens of developing countries. Their exports do not increase and, besides everything else, the subsidised goods of the European Union and the United States drive producers in the developing countries out of their own domestic markets.

Dozens of developing countries have hardly anything else to sell on the world market than agricultural products. Agriculture is the main element in the livelihood of families in third world countries.

The agricultural and trade policy of the European Union also conflicts with the interests of European Union citizens. Restricting competition increases prices, while the subsidies help to perpetuate higher taxes.

The benefit of the policy pursued lies in the maintaining a high self-sufficiency in food for the European Union, which means that the Union is well prepared for any crisis that may ensue.

The present policy can also be justified in a different way by asking what sense it would make to buy goods from other parts of the world that we are capable of producing ourselves. However the same logic should also apply when the highly processed products of the European Union, the United States and Japan conquer the markets of other countries and continents.

"It is not fair if . . ."

"It is not a fair development co-operation policy if the agricultural, trade and environmental policy or policies pursued in other sectors conflict with the goals of development co-operation policy. In this respect the European Union still has a great deal of work to do" commented Satu Hassi, Finland's Minister for development co-operation, on 24 August 2000.

Damage to the Farmers of the South

In 1999, Public Services International (PSI) took a position on the damage caused by agricultural subsidies and import restrictions. PSI expressed its criticism as follows: "The European Union does not allow its agriculture to compete with producers of other regions. Agriculture is carefully protected and receives State support. The surplus is, from time to time, sold on the world market at give-away prices, which causes significant damage to third world farmers."

Conditioning by
Core Labour Standards

The international trade union movement has demanded conditioning of trade by core labour standards. This issue has been considered by the World Trade Organisation (WTO) but opposition by India, Pakistan, Egypt, Mexico and others has blocked implementation in this area. Some progress has been made, however, as the trade union movement has persuaded the European Union, the United States and Japan to pursue the matter at the WTO.

"The trade union movement should continuously activate consumers, ethical investors and large corporations. If these begin to work actively according to ethical principles, then this will increase pressure on the developing countries," commented Peter J. Boldt, an economist at the Confederation of Finnish Trade Unions - SAK in winter 2000. He considered that it would be difficult for developing countries to continue violating the rights of workers because consumers in the industrialised countries have become more interested in the conditions under which goods are produced. Boldt presumes that "the use of child labour even in one sector alone can damage the country’s entire export drive and serve as a disincentive to investors to operate in the country".

Western Import Protection Merciless
towards the Developing Countries

The United Nations Development Programme (UNDP) has published an estimate, according to which trade restrictions of developed countries cause an annual loss of USD 600 billion to the developing countries. This is more than ten times the sum provided by the affluent world in development aid.

A Fair Game

How can a consumer know that the production process of a commodity on the shop shelf has not polluted the environment, or that it has not infringed decent labour standards or involved the use of child labour?

It is for this purpose that there is a Fair Trade network. In Finland the network uses a label depicting an elephant carrying traded goods. In spring 2000 tea and coffee that met the requirements of Fair Trade was sold in Finland. Since then the selection has been increased to include cocoa, sugar, bananas, chocolate and honey. In summer 2000 the Fair Trade organisations of various countries prepared requirements for rice, orange juice and textiles.

The sale of Fair trade products began to increase rapidly in the industrialised countries in the latter half of the 1990s. In 1997 the total value of such goods imported into Europe was EUR 200 million. A large number of consumers are prepared to pay a little more for products produced in a way that people know corresponds to their ideas of justice and environmental soundness.

Workers who participate in producing Fair Trade products have the right to organise and defend their interests. Small farmers who produce the goods receive a reasonable reward for their work that does not fluctuate according to the cycle of the world market. The main goal is to improve the social status of producer families.

One Dollar or Eight?

"In the market the position of small producers is difficult because world market prices can fall below the cost of production. In Ecuador the price of a box of bananas has fallen from four dollars to one. At the same time the Fair Trade guarantee price is 7.75 dollars per box. Five big companies control the banana trade in the world market." Quoted from a Finnish Fair Trade information sheet of 7 March 2000

Without Tariffs and Subsidies

"Of course developing countries should be able to sell their agricultural and other produce here without tariffs and restrictions. Otherwise they will not be able to rise economically. The prices should, however, correspond to the real costs of production, so that various subsidies do not distort competition," says shop steward Irma Rajantie from Kotka, who is a member of the Board of the KTV organisation. "We must be prepared to buy from developing countries because we also sell to their markets". Another shop steward in Kotka, Jukka Virtanen, reminds us that the quality and purity of food must also be carefully controlled. "And working conditions must be in order. Workers must be entitled to organise engage in collective bargaining," he stresses.

The "Peace Dividend" is Increasing,
but Development Aid is being Cut

In the 1990s the industrialised countries clearly became more affluent. Equally clearly, their development aid decreased. In 1993 the official development aid of the 21 leading industrialised countries was 0.30 per cent of GDP. In 1998 it was no more than 0.23 per cent of GDP.

Over half of this development aid comes from the European Union and its member countries. Of individual countries Japan is the largest donor. The United States is at the tail end of the industrialised countries in terms of the proportion of GDP devoted to foreign aid.

Following a sharp decline in the early 1990s, Finland now stands at the European Union average level. At the beginning of the new millennium Finland spent 0.32 per cent of its GDP on development aid. Part of this went to pay the salaries of Finnish experts and associated expenses and procurement from Finnish companies.

The former Director General of the International Monetary Fund, Michel Camdessus, comments that "aid fatigue" is approaching outright cynicism.

Development co-operation funding decreased even though the reduction in armaments following the end of the Cold War has resulted in an annual EUR 200 billion saving: "a peace dividend". This alone is four times more than the annual expenditure of affluent countries in development co-operation. During the Cold War supporters of the developing countries campaigned for disarmament, calling for the savings to be channelled into development co-operation.

The Public Support
Increased Development Aid

Forty-five per cent of the population in Finland supports an increase in the country's development co-operation funding, and only four per cent of respondents propose that such spending should be reduced. This information is based on attitude research commissioned in April 2000 by the Ministry for Foreign Affairs. One year earlier 30 per cent called for an increase and six per cent for a reduction.

70 per cent of the respondents regarded Africa as the primary target region. They nominated health care, population issues and education as the most important sectors on which aid should focus. The next most favoured sectors after these were human rights, democracy, equality, good governance, water supply and sewage treatment. Environmental protection came after these.

Tobin Tax Sufficient
to Eradicate Acute Poverty

According to UN estimates, alleviating the worst shortages in the education, health care, clean water provision and nutrition standards of the developing countries would require EUR 42 billion over and above the present budget. By doubling this sum to EUR 84 billion extreme poverty could be eradicated entirely.

This is no great sum, and is tiny when compared with the value of international currency transfers: less than 0.02 per cent of the amount of currency exchanged annually on world markets. The Tobin tax would be enough to end acute poverty.

Finland’s Policy
in Need of Reform

In the 1990s Finland began to emphasise human rights, democracy and good governance as conditions of its own development aid. Satu Hassi, as Minister for Development Co-operation since spring 1999, has argued for a policy of applying these conditions more rigorously in practise.

Even in the late 1980s Finland considered the corruption of the élites in the developing countries to be a purely "internal problem of the developing countries", and failed to strike out even the most corrupt countries from its list of aid recipients.

Bureaucracy

"The development co-operation policy of the EU has been justifiably condemned for its slowness, rigidity and bureaucratic character. The issue has to be taken up in Brussels and in the capitals of Europe" commented Satu Hassi, Minister for Development Co-operation on 24 August 2000.

Development Co-operation
in a Leading Role

For the donor countries development aid means channelling a few thousandth parts of their GDP to promote the common good. Besides this, about half of all development aid is returned directly to the donor countries in the form of equipment procurement and salaries to experts. Even so, many recipient countries are greatly dependent on development aid. According to UNICEF, by the end of the 1990s development aid was more than 20 per cent of GDP in 17 countries:

• Sao Tome and Principe 104
• Guinea Bissau 67
• Mozambique 63
• Rwanda 53
• Micronesia 50
• Nicaragua 56
• Eritrea 46
• Cape Verde 31
• Chad 29
• Malawi 27
• Surinam 26
• Guyana 25
• Congo 24
• Mongolia 23
• Bhutan 22
• Mali 21
• Sierra Leone 21

Social Transfers
Primarily to One’s "Own" Poor

All industrialised countries use social transfers to combat poverty within their borders. Also in the European Union, from the shores of the Mediterranean to the outermost regions of the Nordic countries, regional development and income differences are smoothed out with significant sums of money. The benefits are especially visible in the economic and social ascent of Ireland and Portugal. Social transfers have for decades significantly limited the number of poor people in the industrialised countries.

The development aid donated for the benefit of the third world, to say nothing of social transfers, is insignificant compared to the internal social transfers of the affluent world.

Most development aid is channelled to the developing countries through project activities aimed at promoting development. Part of this aid is given as disaster relief aid to victims of natural catastrophes and conflicts. It represents the most important social transfer to the third world, and often significantly alleviates the situation of people affected.

A Rod and a Fish

"It is better to give a rod than a fish," best captures the main principle of development aid. According to the predominant idea "fish" are given only to the underprivileged in the developed countries, even though an overwhelming majority of those suffering from daily shortages live in Africa, Southern Asia and other parts of the world’s poorest regions.

That the developed countries make social transfers almost exclusively in favour of their own nationals may have no other serious justification than the albeit progressive nationalism that characterised the era in which such systems became popular. Following the increased interdependence of various parts of the globe such a view has, however, now become narrow-minded and fails to allow for the need to increase global equality, or at least to prevent inequality from spiralling out of hand.

Opinion polls indicate that people condemn the present inequality on ethical grounds. Making the jump from this opinion to significant social transfers from the North to the South, however, is a problem, as influential, neo-liberal politicians have questioned the value of the social benefits given to the poorest groups even within the industrialised countries.

The Finnish Trade Union Movement
has Over 50 Development Projects

Development co-operation is an important aspect of the international collective bargaining work of the Finnish trade union movement. The Trade Union for the Municipal Sector – KTV implements this work in collaboration with other trade union organisations and the Finnish Trade Union Solidarity Centre – SASK. The work is done mainly in the form of development projects administered centrally by SASK.

The year 2000 programme of SASK included more than 50 development projects in Asia, Africa, Latin America and in the Balkans, Russia and the Baltic countries. Work is going on in dozens of countries.

SASK was formed at the beginning of autumn 2000 by the largest central trade union organisation in Finland – SAK – and its member unions, together with three unions belonging to another central trade union organisation – STTK. STTK and the central third central trade union organisation – Akava also participate in concrete project activities administered by SASK.

The development projects help to strengthen the trade union movements of the target countries. Training is the central form of work. Special attention is paid to the participation of women.

The results of the work are evaluated regularly and the use of funds is carefully monitored. Working conditions are difficult and so fundamental changes are only expected in the long-term. Nearly all projects last several years.

In 2000 SASK will spend over EUR 1.7 million on its projects. One third of its income is provided by the member organisations and almost two-thirds from the Finnish development co-operation funds. The European Union began to participate in the funding of SASK projects in 1997. The Centre budgeted over EUR 50,000 in European Union support for its work in 2000.

The work of SASK has gradually expanded. Full implementation of the year 2000 budget will mean growth of over 50 per cent since 1995. Additional funding is based on an increased membership base of the organisation, an increase in project funding by the unions and an increase in State support.

KTV Shows Solidarity

The Trade Union for the Municipal Sector – KTV has a long tradition of solidarity work and development co-operation. This idea already emerged in the 1930s when the union was formed, as sister unions in the Nordic municipal sector strongly encouraged KTV with financial, activity-based and emotional support.

KTV created the basis for its own long-term solidarity work and development co-operation at its congresses in the 1980s, where the principles and operational guidelines for the work were approved. The union reserves funds annually for development projects and for projects in Finland's neighbouring regions. In the 1990s the annual appropriation was stabilised at around EUR 84,000.

KTV has mainly supported trade unions and activities in the public sector. In 1987 co-operation began with the South African Municipal Workers Union – SAMWU when it was formed under the most difficult conditions of apartheid. Two years before this KTV initiated an operation in Zimbabwe. The Finnish municipal workers are project activity pioneers within Public Services International – PSI.

In 1992 KTV began solidarity work in the Baltic countries with training projects. This was followed by work in Bosnia Herzegovina in 1997, with similar co-operation in training. At the beginning of autumn 2000 a training programme was prepared within KTV to support municipal and local industry workers union in Ukraine, where KTV was also one of the first organisations to offer rapid assistance.

KTV trainers are centrally involved in training programmes.

Union Branches

The Member organisations of KTV actively participate in development co-operation. They have their own projects and carry significant weight in national and international campaigns and fund raising. In the 1980s the members sent clothes to Nicaraguan children. In the 1990s voluntary contributions supported the Estonian trade union movement. The latest example of the desire of municipal workers to help was in the renovation of a home for children in St. Petersburg.

Some member associations of KTV have joined the Trade Union Solidarity Centre as supporting members. Membership enables participation in collective projects. In 1999-2000 the child labour campaign in Pakistan was implemented as a project dedicated to the supporting members. Individuals can also join SASK as supporting members.

SASK, PSI and Sister Unions

KTV has many partners in the practical implementation of its projects. The network implementing these projects comprises the Trade Union Solidarity Centre – SASK, Public Services International – PSI and other Finnish trade unions of public sector workers. The Finnish Ministry for Foreign Affairs assists in the funding of almost all KTV projects.

The public sector unions of the other Nordic countries and the Netherlands also occupy an important position as partners of KTV in its solidarity work.

Kepa and Amnesty International

KTV is a member of the Service Centre for Development Co-operation – Kepa. This broadens the union’s contacts and fruitful interaction with other non-governmental organisations engaged in development work. Over 200 organisations have joined Kepa. The Finnish Chapter of Amnesty International, the well-known global human rights organisation, is a partner of KTV in its human rights campaigning.

Helping the Trade Union Movement
in Bosnia Herzegovina

Bosnia Herzegovina was badly damaged in the 1992-1995 war. The belligerents in the war also destroyed social services and the infrastructure of civil society. Since the war the trade unions were among the remnants of civil society that were capable of recovering rapidly.

Since 1997 KTV has supported projects in Bosnia Herzegovina seeking to restore working relations between organisations and population groups. An objective has also been to create a foundation for labour market relations and for international contacts of trade unions. Members have been trained in trade union issues.

The working environment of the project has been exceptionally difficult because the war severed normal social intercourse between people. Activists – former friends – who belonged to opposing camps in the war met each other for the first time in many years during the initial meetings of the project. The special circumstances required the Finns to adopt a more hands-on approach than is usual. The support person Pertti Vainio, a KTV College teacher, has worked locally in the project.

The project has helped unions to resume their activities and bring together various parties in concrete work. Although the slow recovery of agriculture and the Kosovo war at times threatened continuation of the project, the will to co-operate has overcome these obstacles. The most important objectives for the year 2000 will be achieved and KTV will continue its co-operation with the municipal sector unions of Bosnia Herzegovina in new forms.

In Central America and the Caribbean

Since 1994 KTV has supported projects in four Central American countries and the Dominican Republic in the Caribbean. In these projects leaders of small groups and shop stewards have been trained for work in public sector unions. The work has strengthened trade union activity at the level of the work place.

Members have been trained in study groups at workplaces and in trade union organisations. The project has also included organising campaigns. The union leaders have been trained in strategic planning and decentralisation of policymaking.

Networking of the region's women was promoted in an international seminar.

Support for the Lithuanians

Since 1998 KTV has supported work in Lithuania to strengthen the trade union movement as a negotiating party in the public sector labour market. A further important goal is to clarify the understanding of Lithuanians of the role of the trade union movement. Three Lithuanian trade unions are involved in the four-year project. Their mutual co-operation is being reinforced. Members are being trained and the public relations work of the organisations is being improved.

A Regional Project in Southern Africa

In Southern Africa a project is under way to strengthen the public sector trade unions of seven countries and to improve their co-operation. Fourteen African organisations are involved.

The programme consists of regional and industry-wide campaigns, meetings and studies. Defending workers' rights and securing their job security is a hard challenge in countries implementing structural adjustment programmes. The task also demands the ability to encourage co-operation by the regional organisation, SADC.

The project, which was launched in 1995, is being co-ordinated by Public Services International – PSI and its Southern African office. KTV is helping the project financially. In the year 2000 its central focus was the economically and politically crisis-ridden Zimbabwe.

Values and Attitudes
in Programmes in the Philippines

Project work in the Philippines influences the values and attitudes that obstruct co-operation between workers. The training concentrates on group solidarity, democracy and gender equality.

The targets are trade unions and activists in the municipal sector, cement and metal industries, and those of Nestlé and Coca-Cola. A Philippine women's organisation is also involved. LEARN – a local training and research centre, is the local partner in this work.

This one-year project was financed by KTV, the Workers' Educational Association – TSL and the Metal Workers Union.

Organising Asian Women

In 1999-2002 work will be done around Asia and Oceania to activate public sector women in the trade union movement. KTV and FNV - the largest central trade union organisation in the Netherlands - are funding the project, which is co-ordinated by Public Services International – PSI.

The project is providing training, campaigning and strategic planning to strengthen the role of women at all levels of trade union organisation.

Nordic Solidarity Fund

The co-operation organ of the Nordic Municipal Workers Unions – KPY maintains a solidarity fund, disbursing financial aid to the member associations of KTV for projects promoting trade union work and gender equality in developing countries and in Finland's neighbouring regions.

Sponsoring of Children and
Voluntary Work and Fact Finding Trips

In the beginning of 2000 KTV conducted a study of the international activities of its member organisations using a questionnaire. Half of the member organisations responded to the study.

140 of more than 600 member organisations claimed to be engaged in international activities. The most common forms of support appeared to be sponsoring the education of children in the developing countries and occasional participation in aid work. Voluntary work and fact finding trips had been made by members, mainly to Nicaragua, Russia and the Baltic countries.