Seminar on GLobalisation & Labour

by M.G. Labour Institute, Ahmedabad

on 25-10-2007
A presentation by

By Dr. Vibhuti Patel, Director, PGSR

Head, University Department of Economics
SNDT Women¶s University, New Marine Lines, ,
Mumbai-400020
Phone-26770227®, 22052970.
Mobile-9321040048
m
Email-vibhuti.np@gmail.com


 


  
 



 







  


 
 
 

 
 




 










 




 



  `
 

 
 South Asian (India, Pakistan, Bangladesh,
Srilanka, Nepal), South East Asia (Thailand,
Indonesia, Philippines, Malaysia) countries,
Indochina (Laos, Kampuchea and Vietnam)
and China is flooded with Sweatshops, ghetto
labour markets and stigmatised migrant
workers.
 ASEAN countries have recently discussed
establishment of Special Economic Zones that
would ensure flexibalisation of the labour force
to attract Foreign Direct Investment (FDI).
_



 


h
 Dual Labour Markets- Primary Sector &
Secondary Sector

Primary Sector 
  




  
!"

#"
 


"

# 
"













 

  
Secondary Sector 
  


  "

 

 

!

 

# 
@
STIGMATISED GROUPS are crowded into the 2ndary

sector with low pay, no chances for upward career

prospects, low security of employment and bad working
conditions. They have flatter wage earning profile.
The lack of registration,organisation and protection
does not have its origin in the free play of social forces,
but it is the product of economic interests that benefit
from the state of informality in which a wide range of
activities in all branches of the economy are kept,
systematically and on a large scale, in the informal sector.
Ä
through evasion of labour laws and
taxation, the employers cut the costs.

Informal sector functions not separate

from but subordinated to the
dominant circuit

i
 
$ 




Sizeable section of the informal sector goods
and services are produced, frequently by
means of contracting and subcontracting,
which are paid for on piecework rather
than a time-rate basis.
Much of the economic activity in the informal
sector is founded on capital from the formal
sector and given the low cost of labour and
taxed minimally or not at all, return to
where it came from with tidy profit. v
 #
% 

$

 Primitive accumulation in its classical form
included plunder, slavery and colonialism,
while primitive accumulation in the
contemporary period includes sweat- shops,
labour concentration camps and
criminalisation of the working class.

 In 1998, the world economy had 1.2 billion

poor i.e. population with an income of less than
1 dollar per capita per day. K
 

$



$

As a result of Structural Adjustment

Programme, sacked/ retrenched formal
sector workers and employees are forced
to work in the informal sector. Victims of
Voluntary Retirement Scheme have
downward economic mobility.
Rationalisation, mechanisation and
automation have had labour reducing
implications. m&
 Social Tensions
 Massive Urban unemployment and rural
underemployment and disguised
unemployment have resulted into social
tensions in terms of ethnic and religious
chauvinism in several Asian countries.

 Incidents of economic crimes have risen

drastically.

mm
 Ethnic & Communal Tensions
Co-existence of high wage islands in the sea of
pauperised working class has enhanced
human misery and social conflict in the
context of massive reduction in the welfare
budgets of the nation states in South Asia and
South East Asia.
With rising ethnic and communal tension
jeopardising economic activities, visible and
invisible activities of underground extra-legal
economy is displaying a tendency to expand.
m`
 Dual Economy Model
INDIVIDUALS WITH SIMILAR
LEVELS OF EDUCATION &
SKILLS get differential wages due to
casualisation of the workforce.
Introduction of contract system in
public sector has institutionalised neo-
liberal dual economy model.
Racist Wage Policies m_
 Šob & Wage Discrimination
Immigrants face job discrimination in pre-
entry phase & wage discrimination in
post entry phase. They remain the first
to be fired and the last to be hired.

Dualistic Models in the Asian region,

promotes differentiation based on
language, caste, religion, ethnic
background and exclusion from informal
network for upward economic mobility. mh
 External Sector
Majority of the toiling poor rot in
the external sector in which real
wages change at disparate rates.
Institutions like extended family,
caste and village nexus play an
important role in providing safety
nets to migrant workers.
m@
  

 Definition: A historical process whereby
political and economic forces encourage
division of labour market into separate sub-
markets processing different characteristics
and behavioural rules.

 SLM allows Division of Labour markets into

two segments. Recent economic policies in
Asia have consolidated SLM with detrimental
effects on the toilers and empowerment of the
owners of establishments. mÄ
Primary & Secondary Segments
1. Primary or Internal segment"
#





# 










2. Secondary or External Segment 






 
 
'(()*
+,('(-
%.+
+ )
+

)
+).











 "


 
 


mi
 Pre-capitalist Labour Relations
(





 "

 
"
 





#
 

 

 







 


 
 


#

 

 

 
 





 mv
 GHETTO LABOUR
MARKETS
 Burgeoning GHETTO LABOUR MARKETS are
perpetuating the law of jungle in the industrial
scenario. As a result a situation arises where legal
apartheid faced by micro-entrepreneurs at the foot of
the economy.

 Workers in casual sector are predominantly young

and single men and women, while workers in
regular sector are older and married.

mK
 Plight of the Poor
 Segmentation begins in the rural areas
where the asset-less poor in the margin of
economy migrate to the cities.

 Dual economy thrives on discrimination based on

gender relations, caste, religion, mother tongue,
parent¶s education, family occupation, migration
status and age.
 1. Income differs widely between these segments.
2. Mobility between them is limited.
`&
 /

% 

0

 In this situation, is development

possible without supranational
or even intra-national
redistribution of the sources of
wealth and prosperity?

`m
Globalisation has enhanced patriarchal
control over women¶s sexuality, fertility and
labour by superimposing commercial values
on the conventional values throughout the
world.
In response to imposition of structural
adjustment programmes and stabilization
policies at the behest of International
Monitory fund & World Bank, women¶s
movements across the national boundaries
have been debating various strategies and tactics
of transforming the Neo-liberal Development Paradigm. ``
 Multi-faced tragedies due to
marketisation of poor economies and commercialisation
of human relations,
commodification of women¶s bodies especially in sexual
trafficking,
advertisements and beauty-contests promoted by the
Trans-national corporations (TNCs) and Multi-national
Corporations (MNCs),
starvation deaths in the rural areas,
havoc played by onslaught of new reproductive
technologies, of both pro and anti-natalist varieties, racist
population control policies, sex selective abortions of
female foetuses,
violating dignity and bodily integrity of women, armed
conflicts, `_
increasing economic disparity, the feminisation of poverty,
World Social Forum and Regional Social Fora have provided
democratic platforms for reflections on a just, sustainable & caring
Global Economy.

These deliberations have convinced us that Another World is

Possible and globalisation also bears the promise and possibilities of
furthering women¶s rights and well-being.

Gender sensitive strategic thinking can address practical and

strategic gender needs of women. For example, more women in more
areas of economic activities can be gainfully and justly employed.
Information technology can enable women throughout the globe to
share strategies, successes and stress-free and safe life.

We should not forget that there is North in the South and there is
South in the North. So we must strive for global solidarity and
sisterhood of all women who are oppressed and exploited, degraded
`h
and dehumanised by the patriarchal class structure.
6
  

 


   

 

  

          
        

 
 
        
   

   
     !   
" 
  #
  
 

   
 
  

         


  


       


 $!
 $!
 



     

     
%               
 
  &

 
     
    

  
   
  

  `@




         
   
 
`Ä
This paper deals with issues and concerns relating to the following
economic rights of women:

1. Women and Employment

2. Self Help Groups

3. Property and Land Rights

4. Gender Budgeting, Auditing and Planning

The impact of Globalisation, WTO, taxation

patterns and Ơuser fee conceptơ are adversely
affecting women. `i
Women and Employment

Some Areas of Concern

 Non enforcement of Laws and Schemes(MBA,

ERA,Crèche, EGS

 Violation of basic Human Rights in Informal

Sector(irregular,no social protection, ragpickers)

 No skills training

 Abuse in Special Economic Zones (FTZs, EPZs)

 Night work

 Sexual harassment `v
Recommendations for Employment
Policy for Women¶s Employment

 Proper Implementation of Laws, Schemes

 Law Reform(Maternity Benefit Act, Family

Leave,Sexual Harassment at Workplace)

 Legal Protection for Informal Sector- Umbrella

Legislation-Occupational Health & Safety

 Capacity Building and Training

 Social Audits of laws, rights

`K
 °
 
  
°
 
  






  








 !




"





Maternity Benefit for ALL working Mothers irrespective of the

number of employees. Creches should be provided for children of all
workers and not merely women workers irrespective of the number
of employees. There could be a common fund for each industry.

 #
  $ 

_&
Recommendations for strengthening the SHGs :
÷ Groups formed by experienced and trained NGOs or WDCs
should be given bank credit and loans.
÷ Nurturing grants be released at regular intervals after review
and grading.
÷ Pension-linked insurance scheme
÷ Banks to release loans after examining sustainability for 5 years
÷ subsidy be replaced by revolving fund
÷ MIS be expanded to collect data on training and capacity
building.
÷ state level agency to be appointed to train NGOs
÷ initiatives and training to bankers for improving programme
delivery mechanism
_m
Property and Land Rights
 Need for a global campaign
 gender bias in property laws. Need for gender-just

family laws in matters such as marriage, divorce,

custody and guardianship of child, maintenance,

women¶s right to stay in the parental or

matrimonial home

As per the UN

³Women constitute ½ of world¶s population,

do 2/3 of world¶s work, in return get 1/10 of world¶s

income and 1/100 of world¶s wealth. _`

 #


Ë


 
 





%


 &
  


Ë'(

 (





Ë 


(


( 

Ë#  


((

 )
 
Ë *+*


,



Ë$ )*
'
-./

0 
 
Ë*


 
__
 Recommendations

 Testamentary powers that deny the daughters rights should

be restricted
 Allow daughters full right of residence in parental dwelling
houses
 Women must be given µthe right to residence¶
 putting private household property in the joint names of
partners, with precautions against misappropriation by the
male partner
 10% of all houses in the housing schemes(in both, public &
private sector) must be reserved for Women Headed
_h
Households.
Budgeting, Auditing and Planning

 budgetary policies to consider gender, class, caste

dynamics operating in the economy and civil society.
 need to highlight participatory approaches to pro-poor
budgeting, green budgeting, local and global implications
of pro-poor and pro-women budgeting,
 Women¶s Component Plan to assure at least 30% of
funds/benefits from all
 Tax benefits be extended to women who are only
earners in household.
 mandated approach of convergence of services at all
levels of governance, through inter-sectoral committees
of all Ministries/Departments at the Centre ,States with
specific responsibility to Councils and Municipalities
_@
 Affirmative Action
 Every ministry at the Centre and State levels to have a
women¶s division
 Women and Child Development Department must be
separated
 Training and capacity building workshops for decision-
makers in the government structures, village councils,

parliamentarians and audio-visual media for planning,

budgeting, implementing and monitoring.

_Ä
Strengthening of Public Distribution System (PDS)- Food
Security

visibility of women in statistics and indicators-gender

disaggregated data

Recognition of women¶s work in the Systems of National

Accounts

Access to critical resources ( fuel, fodder, water, health-

care, nutritious diet)

Poor and WOMEN ARE ECONOMIC AGENTS _i

Alternatives to Economic Globalisation (G)

There have been two responses to G from the social movements:

a. Humanise G by building in gender awareness. Think and

act globally as well as locally. Promote multilateral trade and
diplomatic relations to establish distributive justice and world peace.
ë
    
 6
'

 $ 

b Build local alternatives and quit WTO. E.g. Social movements

rooted only in the local soil.

We must work with both tendencies, as the ultimate goals of both are
the same- social transformation for a just, fair and caring society.
Women¶s rights organisations and social action groups were the
most vociferous during the recently held Asia Social Forum against
Trans National Corporation and Multinational Corporation driven
_v
G.
 Important issues for Global and local level
Advocacy to Empower Women:

a.Strengthening of Food Security and Right to Food Top down and

bottom up initiatives to stop malnutrition and starvation deaths
created by stabilisation programmes resulting into withdrawal of
state from food security commitments.

b. Public Health issues must be highlighted thro¶ a national network,

People¶s Health Assembly. The Nation States should follow the UN
mandate of 5 % of the GDP for budgetary allocation on the public
health.

C.No to dumping of unsafe contraceptives for coloured and poor

women.

d.Ban sex-selective abortions of female foetuses in South Asia and

China. _K
f. State Support for Women¶s Education not only at the primary
school level but also at the secondary and high school level. Forum
for Child Care has demanded that one room of the school should be
converted into crèche so that girls who have to look after their
younger siblings can also join the schools. More budgetary allocation
and actual funding for girls¶ education.

g. Free Legal Aid and People¶s Court: Šustice and Peace

Commission, a network of community organisations working in
Mumbai provides free legal aid to poor women to deal with marital
disputes, divorce, maintenance, custody of children, alimony,
property, right to stay in the parental or matrimonial homes. This
model must be replicated everywhere.
h. Housing Rights are the most important. NCHR
demanded that in al1 housing societies and state
supported housing schemes, 10 % houses should be
reserved for female-headed households. h&
i.Sanitation, Public toilets: There is an urgent need to take up the
issues of urban sanitation in terms of higher budgetary provision
from the state and municipal funding.

Š.Safety nets for women in the subsistence sector of the economy in

terms of loans, infrastructure, storage and transport and state
subsidy and support price for agriculture, animal husbandry, dairy
development, horticulture and floriculture.

k. Environmental Issues: Natural resources, being humankind¶s

common heritage, must be preserved for the use of actual and future
generation with the perspective that each human being has an access
to water, air, energy, etc. according to her or his needs.

l. Commercialisation and privatisation of these resources must be

stopped. Biological diversity (flora, fauna, forests, ecosystems) must
be preserved and indigenous women¶s collective wisdom must be
recognised, respected and valued. hm
m.Occupational Health- Women scavengers and recycling workers
under extremely hazardous circumstances. They should be given
masks, hand gloves, gum- boots and free and quality medical care.

n.Crèches: the state, employers and trade unions should provide

more day care centres for the children of working mothers in the
community and near the workplace.

o.Implementation of Labour standards: Erosion of labour standards

as a result of globalisation should be fought tooth and nail. Let the
nation states compete to give better wages and work-conditions to
the workers.
p.Global Code Against Commodification of Women¶s Body as a
spare-part for sale, pornography and obscene portrayal of Women in
Media: Universal standards for decent portrayal of women in media
must be evolved.
q. Community Oriented Media: Social action groups need to interact
closely with the mainstream media, and also generate their alternate
h`

media to highlight women¶s rights to dignified life.

 Decision Making for the Global Governance:
We will have to change the direction of globalisation that has
rendered the toiling masses faceless and devoid of dignity.

We can see the human face of globalisation only when we are able to
reduce the North South Gap in the quality of life. Women decision-
makers across the globe must strive collectively and see to it that
resources and fruits of development and economic prosperity are
distributed justly among countries, within countries and among all
human beings thereby eliminating poverty.

This will ensure everyone access to food and nutrition, shelter,

health services, safe transportation, right to information, education,
justice, culturally rich leisure-time activities.

To deal with this crucial task force, we will have to evolve high
levels of participatory democracy in governance so that we h_ can

improve lives and freedoms of peoples in all parts of the globe.

Think Globally, Act Locally

Thank you

hh