As supply chains undergo significant transformations driven by digital and green transitions as well as geopolitical shifts, there is a growing necessity to reevaluate the trade-labour relationship. This rethinking aims to improve labour standards and foster inclusivity, ensuring that the benefits of globalization are distributed fairly and social justice is upheld.
Key Findings from the White Paper
The white paper, a joint effort by the World Economic Forum and the Thinking Ahead on Societal Change (TASC) Platform at the Geneva Graduate Institute, funded by the Laudes Foundation, synthesizes comprehensive desk research and insights from over 50 stakeholder interviews. This examination of the trade-labour nexus highlights both progress and ongoing challenges in enhancing labour outcomes.
Digital and Green Transitions:
- Digital Transition: The rise of digital technologies is reshaping supply chains by enhancing efficiency and transparency. However, it also presents challenges, such as job displacement and the need for new skills. The paper emphasizes the importance of upskilling and reskilling workers to adapt to these changes.
- Green Transition: The shift towards sustainable practices is driving changes in supply chains, requiring new standards and practices that prioritize environmental sustainability. This transition can create green jobs but also necessitates support for workers transitioning from traditional industries.
Geopolitical Shifts:
Geopolitical changes are influencing trade dynamics and labour markets. The paper underscores the need for policies that mitigate adverse effects on workers and promote stability and fairness in global trade relations.
Policy Tools for Enhancing Labour Outcomes
Multilateral Instruments:
Multilateral instruments, such as International Labour Organization (ILO) conventions, play a crucial role in setting global labour standards. These frameworks can help ensure that trade agreements include strong labour provisions that protect workers’ rights.
Regional Trade Agreements:
Regional trade agreements (RTAs) are increasingly incorporating labour standards. The paper highlights the potential of RTAs to promote better labour outcomes by including enforceable labour provisions and mechanisms for monitoring and compliance.
Corporate Due Diligence Frameworks:
Corporate due diligence frameworks require companies to assess and address the impact of their operations on labour rights. These frameworks can drive improvements in labour standards by holding companies accountable for conditions in their supply chains.
Recommendations for Fair Benefit Distribution and Social Justice
Fair Benefit Distribution:
To ensure that the benefits of globalization are distributed fairly, the paper calls for:
- Inclusive Policies: Policies that promote equitable access to opportunities and resources for all workers, particularly those in vulnerable positions.
- Living Wages: Ensuring that workers receive wages that allow them to meet their basic needs and live with dignity.
- Social Protection: Strengthening social protection systems to provide support for workers affected by changes in the labour market.
Social Justice:
Achieving social justice requires:
- Worker Representation: Promoting the rights of workers to organize and participate in collective bargaining.
- Non-Discrimination: Enforcing laws and policies that prevent discrimination in the workplace and promote diversity and inclusion.
- Safe Working Conditions: Ensuring that workplaces are safe and healthy, with mechanisms in place to protect workers’ well-being.
Strengthening Collaboration
The white paper calls for stronger collaboration between trade and labour communities to harness trade’s potential in creating better labour outcomes. This includes:
- Dialogue and Partnerships: Facilitating dialogue between stakeholders in trade and labour to identify common goals and develop coordinated strategies.
- Capacity Building: Investing in capacity building for labour organizations and trade unions to effectively advocate for workers’ rights in the context of trade.
- Research and Monitoring: Supporting research and monitoring efforts to track the impact of trade policies on labour outcomes and identify areas for improvement.
