Transcript Workers` Situation August 2002

 Globalization
 Giving
freer rein to the operations of
private (capitalist) enterprise through
neoliberal policies
Liberalization
 Deregulation
 Privatization
 Fiscal austerity
 Tight credit

 Who
gains at whose expense?
Slowdown of World Economy
In the last decade, at least one major
financial crisis erupted somewhere in the
world every two or three years – Japan in
1990, Mexico, Argentina and Brazil in
1994-95, East Asia in 1997-98, Russia
Grow th rate
and Brazil in 1998-99, and so on. Linear (Grow th rate)
Year
2000
1998
1996
1994
1992
1990
1988
1986
1984
1982
1980
1978
1976
1974
1972
7.0
6.5
6.0
5.5
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
1970
% grow th
Chart 4: Grow th Rate of Real World Gross Dom estic Product,
1970-2001 (market exchange rate w eighted)
Global Inequality
100%
90%
Hi-income OECD
80%
Eastern Europe & the CIS
70%
Sub-saharan Africa
60%
South Asia
50%
Latin America & Carribean
40%
East Asia & Pacific
30%
Arab States
20%
LDCs
10%
0%
Population
GDP
In 2003, there were 185.9 million
people with no jobs…
Highest unemployment figure
ever recorded- ILO
6.2% of total global labour force
"This deteriorating world employment picture
and the prospect of a weak or delayed
recovery is very disturbing. A continuation of
these trends will dramatically increase the
number of unemployed and working poor. A
full-scale global recession could have grave
consequences for the social and political
stability of large parts of the world.“
- Juan Somavia
Dir. Gen. of ILO, 2004
Among the world's unemployed, some 108.1 million were men, up 600,000
from the year 2002. Among women, there was a slight decline, from 77.9
million in 2002 to 77.8 million in 2003;
Hardest hit were some 88.2 million young
people aged 15-24 who faced a crushing
unemployment rate of 14.4 per cent;
The so-called "informal economy" involving
persons without fixed employment continued to
increase in countries with low GDP growth
rates
fujitsu cut
jobs up to
20,000;
alcatel17,000;
siemens15,000
the number of "working poor" - or persons
living on the equivalent of US$ 1 per day or
less - held steady in 2003, at an estimated 550
million.
Regional Trends

In industrialized countries: jobs are sluggish,
employment growth decreased between 2000
and 2002, increasing part time and temporary
workes
 In transition economies: unemployment
climbed from almost zero before integration in
the global economy to 10% across the region
 In the Third World countries: rapid increase in
informal sector as unemployment increase
 In the Middle East and Africa: regions with
highest unemployment rate of 12.2% and
10.9%, respectively
High unemployment rate in the
Philippines is perennial…
Open Unemployment, 1957-2001
4,000
12.0%
3,500
Unemployed
Unemployment Rate
10.0%
8.0%
2,500
2,000
6.0%
1,500
4.0%
1,000
2.0%
500
1993
1995
1997
1999
2001
1979
1981
1983
1985
1987
1989
1991
0.0%
1967
1969
1971
1973
1975
1977
-
1957
1959
1961
1963
1965
in thousands
3,000
In the Philippines…
Last year, the highest
level of unemployment rate ever
recorded since 1957 was recorded at 12.7% with 4.3 million
Filipinos out of work

But this figure is even conservative,
+ 5 to 8 million Filipinos forced to work outside the
country
+ 16.5 million Filipinos aged 15 yrs. Old and above
who are not included in the labor force
+ 6.2 million underemployed
+ 4.3 million open unemployment figure
= 35 million Filipinos who cannot find employment inside their
country or almost 70% of the potential labor force
Globalization: massive
unemployment in a global scale
Neoliberal “Globalization”
At the Macro level:
Privatization
Liberalization
Deregulation
denationalization



At the Micro-enterprise
level:
Flexible production
Flexible labor
Flexible production means striving
for five zeros:
 Zero
delay
 Zero default
 Zero production
 Zero paper
 Zero cost
Imperialism Destroying
Employment
KMU Education
Department
February 1, 2004
International Consultation
on Youth Education and
Employment
Massive lay-offs…

In the US:
Arvin Industries (automotive components)streamlined 10% of employees
Union Carbide- re-engineered production,
administration and distribution system and
trimmed 13,900 workers
GTE- laid off 17,000 workers
NYNEX Corp- laid off 16,800 workers
Pacific Telesis- laid off 10,000 workers
AT&T- laid off 77,000 managers
Bankcorp- laid off 8,000 workers
Massive lay offs…
 In
Germany:
Siemens- laid off 16,000 employees and
15,000 workers around the world during
the bursting of the Tech Bubble
In Sweden: ICA food coop- eliminated
5,000 employees
In the Philippines:
768,862 laid off workers due to closure
of establishments (economic reasons)
Jobless Growth






3.8 M unemployed; 11.2% unemployment rate
(highest in 40 years!)
Nearly half of employed are “own-account
workers” or unpaid family labor (informal sector)
Nearly 40% of employed are part-time
At least 20% are contractual/temporary
around 2,700 Filipinos leave for overseas jobs
daily  7 to 8 million Filipinos are OFWs
Around 1,600 mothers & daughters leave their
own families to work abroad as nannies,
caregivers, nurses, factory workers,
“entertainers”, etc.
Inhumanely Low Wages
Table _. Nominal and Real Wage Rates *
Non-Agriculture 2001-2002
2001
REGION
Nominal
Real
Wage a/ Wage b/
NCR
265.00
155.42
Cordillera Autonomous Region
185.00
118.18
Region I (Ilocos)
190.00
119.12
Region II (Cagayan Valley)
180.00
112.74
Region III (Central Luzon)
208.50
131.06
Region IV (Southern Tagalog)
217.00
132.22
Region V (Bicol)
182.00
106.32
Region VI (Western Visayas)
170.00
111.03
Region VII (Central Visayas)
195.00
109.46
Region VIII (Eastern Visayas)
177.00
106.43
Region IX (Western Mindanao)
165.00
102.49
Region X (Northern Mindanao)
180.00
110.37
Region XI (Southern Mindanao)
180.00
114.54
Region XII (Central Mindanao)
160.00
106.50
CARAGA
173.00
108.24
ARMM
140.00
77.24
NCR
2002
Nominal
Real
Wage c/ Wage d/
280.00
164.68
185.00
118.70
190.00
117.79
180.00
112.05
228.50
141.02
237.00
137.65
182.00
103.93
180.00
114.54
200.00
113.94
188.00
110.53
175.00
104.64
192.00
112.28
195.00
123.64
180.00
111.96
179.00
110.47
140.00
75.55
280
April 2002
Family Cost-of-Living e/
Food Non-food Total
169.00
363.00
532.00
163.00
339.00
502.00
170.00
304.00
474.00
159.00
277.00
436.00
175.00
283.00
458.00
172.00
326.00
498.00
160.00
304.00
464.00
149.00
252.00
401.00
139.00
338.00
477.00
145.00
210.00
355.00
143.00
318.00
461.00
144.00
281.00
425.00
147.00
257.00
404.00
155.00
286.00
441.00
Living
Wage
Gap f/
(252.00)
(317.00)
(284.00)
(256.00)
(229.50)
(261.00)
(282.00)
(221.00)
(277.00)
(167.00)
(286.00)
(233.00)
(209.00)
(261.00)
532 -252
196.00
478.00
674.00
(534.00)
Labor Contractualization

1.
2.
3.
4.
Encouraging contractualization has led to the
termination and replacement of regular
employees with contractual workers. Now more
and more workers are:
denied job security (even for jobs that are clearly
“necessary and desirable to the company”);
paid lower wages with little or no benefits;
deprived of sufficient training and information on
health and safety conditions at the workplace,
thus, impairing their productivity and jeopardizing
their health and safety at the workplace;
denied their right to form and join unions,
participate in collective bargaining, and wield
their right to strike.
Table 2. Sample Daily Minimum Food Basket for a
Family of 6 in NCR
(Source: Average of prices from 3 wet markets in MM)
Item
1 can evaporated milk
1 kilo chicken
3 pcs. Eggs
2 kilos rice
½ kilo potatoes
½ kilo assorted vegetables
6 pcs. bananas
150 gms. Sugar
¾ cup cooking oil
Salt, garlic, onions
Kerosene
TOTAL
Gastos
23.6
97.5
6
40
20
17.5
12
3.6
9.125
8
10
247.33
Social Implications of Low Wages

Of every 100 students that enter elementary
schooling, only 65 manage to graduate. Of
these only 47 eventually graduate from high
school. Children are withdrawn from school
in order to augment the family income or at
least cut down on family spending.
 Over 4 million Filipino children are working to
augment the meager incomes of their families
or forced to eke out a living on their own.
 Unable to afford secure housing, 40% of the
country's "urban" population live in slum or
squatter communities.
Social Implications of Low Wages

In Metro Manila alone, 591 squatter colonies have
been identified with a total population of 2.5 million,
representing nearly one-third of the entire
metropolitan population
 1 in 4 Filipinos are afflicted with tuberculosis and 68
Filipinos die of the disease every day. A minimum
wage earner can’t even afford the cost of TB
treatment even with a full month's earnings solely
devoted to its payment.
 There are also social tensions that build up as the
pressure to make ends meet carries with it other
costs such as higher incidence of depression, drug
use, sexual violence, child abuse and criminality.
Inhumane Working Conditions
 Forced
Overtime (10-12 hour shifts)
 Unreasonable Company Rules &
Regulations
 UTI, fatigue, etc.
 Discrimination (“young, female with
pleasing personality”)
 “Virginity Tests”
 “Lay-off or lie-down”
Workers’ Repression

out of 6 ILO core labour standards, firms
comply least with ILO Convention Nos. 87
and 98 or the freedom of association and the
protection of the right to organize. The same
survey revealed that “lack of management
sincerity” was ranked third (3rd) by
management respondents among the factors
that hindered compliance to core labour
standards
 Discriminatory hiring
 Anti-union campaigns, intimidation, bribery
 Complicity of government officials (no serious
enforcement of labor standards, etc.)
From long-boom to long-downturn
(Average annual rates of change, except for net profits which are averages)
Manufacturing
Net profit rate
Output
Net capital stock Gross capital stock
1950-70 1970-93 1950-73 1973-93 1950-73 1973-93 1950-73 1973-93
U.S.
24. 35
14. 5
4. 3
1. 9
3. 8
2. 25
Germany
23. 1
10. 9
5. 1
0. 9
5. 7
0. 9
6. 4
1. 7
Japan
40. 4
20. 4
14. 1
5
14. 5
5
14. 7
5
G-7 *
26. 2
15. 7
5. 5
2. 1
4. 8
3. 7
Private business
U.S.
Germany
Japan
G-7 *
Net profit rate
Output
Net capital stock Gross capital stock
1950-70 1970-93 1950-73 1973-93 1950-73 1973-93 1950-73 1973-93
12. 9
9. 9
4. 2
2. 6
3. 8
3
23. 2
13. 8
4. 5
2. 2
6
2. 6
5. 1
3
21. 6
17. 2
9. 1
4. 1
9. 35
7. 1
17. 6
13. 3
4. 5
2. 2
-5
4. 5
4. 3
* G7 net profit rate extends to 1990; German net capital stock covers 1955-93
Source: Robert Brenner, The Boom and the Bubble: The U.S. in the World Economy (Verso, New York, 2002), Table 1.1, p. 8.
Overproduction & Financial
Speculation
•In 1976, 80% of all international transactions
involved the buying and selling of goods and
services. By 1997 only 2.5% of international
transactions involved the buying and selling of
the same; some 97.5% were for speculation
Aggregate Net Resource Flows to
Developing Countries
300.0
250.0
Grants
Portfolio Equity Flow s
•In the last decade, at least one major
financial crisis erupted somewhere in the
world every two or three years – Japan in
1990, Mexico, Argentina and Brazil in 199495, East Asia in 1997-98, Russia and Brazil in
1998-99, and so on.
Net FDI
US$ billions
200.0
150.0
Net Flow of Long-term
Debt
100.0
50.0
(50.0)
1970
1980
1990
2000
2001
•These crises have severe and enduring
adverse impacts on working people while
multinational creditor banks and financial
speculators make a killing, literally and
figuratively.
Third World Debt
1970
1980
1990
Total Debt Stock (US$ billion)
Long-term Debt
Public & Publicly Guaranteed
Short-term Debt
IMF Credit
72.80
609.40
1,458.40
86%
74%
81%
* Cumulative
65% debt service
63%
76%
13% = US$4.2
24%
17%
from 1980-2000
1%
2%
2%
trillion.
Total Debt Service (US$ billion)
Principal Repayments
Interest Payments
• total debt9.2
stock has93.4
grown
73.9%
47.6%
33 times in
just 3 decades.
52.4%
Now over26.1%
US$2.4 trillion
Debt Stock as % of Exports
88.0
• 3W ..debt stock is now
Debt Stock as % of Gross National Income equivalent 10.9
to 40% of21.0
the
Debt Service as % of Exports
..
13.5
combined
gross national
Interest Payments as % of Exports
..
7.1
incomes
of 188-89
these countries,
Source: World Bank Global Development Finance
2002, pp.
from just over 10% in 1970.
2000
2001
2,492.00
82%
60%
15%
3%
2,442.10
82%
60%
15%
3%
163.8
57.1%
42.9%
398.8
68.2%
31.8%
381.9
68.0%
32.0%
161.0
34.1
18.1
7.8
113.3
39.1
18.1
5.8
112.2
38.2
17.6
5.6
Destruction of Productive
Forces
“Accumulation of
wealth at one pole is
at the same time
accumulation of toil,
slavery, ignorance,
brutality, mental
degradation, at the
opposite pole.”
- Karl Marx
 Global unemployment = 160 M as of 2000.
 3 B or 1/3 of the world’s labour force are either
unemployed, underemployed or earn less than
is needed to keep their families out of poverty.
 a growing share of the working population is
forced into lower-income and insecure forms of
employment. In unindustrialized countries,
more and more people are forced to survive in
the informal sector where earnings are low and
erratic and labor standards are not enforced.
 1.2 B live on less than US$1 a day, around 1.1
billion people lack access to safe drinking
water, and 2.4 billion lack access to improved
sanitation