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GB.270/WP/SDL/1/5
270th Session
Geneva, November 1997


Working Party on the Social Dimensions of the Liberalization
of International Trade 

WP/SDL


FIRST ITEM ON THE AGENDA

Continuation of discussions concerning the programme
of work and mandate of the Working Party

(e) Overview of other research activities on the social dimensions of
the liberalization of international trade

1.  At the Governing Body's 268th Session (March 1997), the Office was requested to prepare a general descriptive paper indicating the range of ongoing and planned research in the Office on issues related to the social dimensions of globalization and trade liberalization.(1)  This document is submitted in response to the request.

2.  Before describing relevant research activities in the Office, it is necessary to point out that the following list is not exhaustive. Because globalization is such a pervasive phenomenon in today's world, it necessarily provides an important context for many Office programmes. Moreover, certain programmes, such as the Multinational Enterprises Programme, by their nature deal with globalization issues and are hence not mentioned below. The following headquarters projects and activities deal directly with issues of concern to the Working Party.

Task Force on the Country Studies on the Social
Dimensions of Trade Liberalization (TF/CSG)

Social labelling and the social responsibilities
of enterprises (TRAVAIL)

Core labour standards and economic development
in developing countries (EMPFORM)

3.  These activities are covered by separate documents before the Working Party.(2) 

Action programme on globalization and area-based
enterprise development and employment (EMPFORM)

4.  This action programme, planned for the next biennium, is concerned with area-based enterprise development. Since global competitive pressures often cause entire towns and areas to become pockets of high unemployment, area-based development can be an important policy response to the negative effects of globalization. This action programme will review experiences with local area development programmes in order to identify best practices for locally driven strategies to redeploy displaced workers and stimulate employment growth.

Employment and labour market effects of regional blocks (EMPFORM)

5.  This research activity, which is being carried out in the present biennium as well as the next biennium, focuses on the employment and labour market impacts of regional trading blocks and regional integration. A number of papers have been prepared or are in preparation in the current biennium on regional trading blocks such as MERCOSUR, ASEAN and NAFTA. While regional trading blocks differ from globalization in the broadest sense, they are an increasingly important reaction to global forces.

Sectoral meetings

6.  SECTOR's activities by their nature focus on particular sectors of the economy. Many of the 22 sectors given regular attention have considerable exposure to the forces of international trade and competition. The agenda of several sectoral meetings in the present and next biennia refer explicitly to globalization. These include:

7.  The background reports for these three meetings are directly relevant to the globalization debate. The reports prepared for most other sectoral meetings are also concerned to some extent with the issue. Some of the studies carried out to follow up on requests of sectoral meetings are also pertinent. These include, in particular, the report on Business ethics in the textile, clothing and footwear (TCF) industries: Codes of conduct, which is referred to in a separate document.(4) 

The industrial relations impact of regional
economic integration (RELPROF)

8.  This activity, which is planned for the next biennium, is concerned with both the industrial relations consequences of regional groupings as well as the contributions industrial relations make to this integration process.

Globalization and labour institutions (INST)

9.  The programmes of the International Institute for Labour Studies in the next biennium will explore the implications of globalization and social change for labour institutions: trade unions, employers' organizations, and the State. It is intended to examine the changing relationships between labour and society, and between business and society, and to initiate discussion on the changing role of the State in social policy. Taken together, these programmes aim at placing tripartism in the contemporary perspective of globalization and social change.

Workers' representation in multinational enterprises (RELPROF)

10.  This research, planned for the next biennium, will investigate workers' representation and information in multinational enterprises, especially for workers outside of the headquarters country. This research will be particularly concerned with documenting cases where successful participation mechanisms have operated in enterprises.

World Employment and the World Labour Report

11.  All issues of World Employment and the World Labour Report have addressed globalization issues, including the latest issue of the latter -- Industrial relations, democracy and social stability -- which considers the increased pressure trade puts on workers and unions. Another issue is in preparation on training, which considers how and why trade increases the need for training skilled workers.

Action programme on productivity improvement, competitiveness
and quality jobs in developing countries (ENTREPRISE)

12.  This action programme, to be implemented during the next biennium, will examine how productivity improvement -- through human resources development, skills upgrading, improved management practices, good working conditions, investment in better and more efficient technologies, appropriate legal and regulatory frameworks, effective labour markets, etc. -- contributes to the competitiveness of developing countries, thereby facilitating their participation and integration in the global economy and the creation of sustainable quality jobs. Global studies, as well as country-level studies of selected developing countries' successful experiences, will be undertaken to learn lessons on how developing countries could attain improved competitiveness in an increasingly globalized economy through the "high road" of productivity.

Collective bargaining and labour market flexibility (RELPROF)

13.  Since the competitiveness of an enterprise or economy in today's global economy is affected by flexibility, this research activity, which is currently being implemented, investigates the role that collective bargaining can play in the introduction of labour market flexibility. It focuses on developments taking place in relation to such labour-market issues as employment contracts, wages, working hours and work organization. The research also seeks to identify the means of making collective bargaining more instrumental in introducing flexibility in ways conducive to both economic efficiency and workers' well-being.

Geneva, 11 November 1997.


1. Statement by the Chairperson: GB.269/WP/SDL/D.1, p. 4.

2. GB.270/WP/SDL/1/2, GB.270/WP/SDL/1/3 and GB.270/WP/SDL/1/4 respectively.

3. GB.268/STM/4.

4. GB.270/WP/SDL/1/3, paras. 6-12.


Updated by VC. Approved by NdW. Last update: 26 January 2000.