Prospects for Labour in Global Value Chains: Labour Standards in the Cut Flower and Banana Industries

Global value chain (GVC) governance is central to analyses of labour's strategic options. It frames the terrain on which labour campaigns and institutions — such as private social standards and international framework agreements — contribute to the social regulation of value chains. GVC concepts help to emphasize how power in the employment relationship transcends organizational boundaries, as well as how industrial power is shifting from the sphere of production to that of consumption. Based on extensive case studies of the banana and cut flower value chains, we explore the implications of GVC restructuring for the scope and form of labour rights strategies.     

The Implications of the Value Chain and Financial Institutions for Work and Employment: Insights from the Video Game Industry in Poland,Sweden and Germany

What are the reasons for national differences of international market access in high‐risk software development and what is the role of employment regulation? This analysis elucidates this question based on national sector studies of the video games industry with particular focus on financial systems, skill formation as well as work and employment systems in Sweden, Germany and Poland. National financial architectures and education are a decisive factor. However, the results also suggest that the ‘varieties‐of‐capitalism’ (VoC) approach underestimates industry divergence within and across supposedly homogeneous national models, especially in the field of labour regulation. The author proposes to link VoC theory to a transnational perspective, which complementarily takes into account firm embeddedness in industry‐specific value chains.     

Regulating Labour Standards via Supply Chains: Combining Public/Private Interventions to Improve Workplace Compliance

Concern over global labour standards has led to a profusion of non‐governmental forms of regulation. Systematic evaluation of these systems has been very limited to date. This article empirically explores an innovative system to regulate labour standards in the US garment industry combining public enforcement power and private monitoring, thereby drawing on different elements of global labour standards systems. We examine the impact of this system over time and in two distinct markets on employer compliance with minimum wage laws and find that these initiatives are associated with substantial reductions in minimum wage violations. The system therefore offers a useful model for international labour standards regulatory systems.     

A ‘Decent Cuppa’: Worker Power and Consumer Power in the Sri Lankan Tea Sector

Consumers are increasingly seen as playing an important role in global labour governance through the establishment of voluntary certification programmes that promise better economic and social conditions for workers in global value chains. In the Sri Lankan tea sector, however, these private forms of governance (Rainforest Alliance (RA), UTZ Certified and the Ethical Tea Partnership (ETP)) at best have no effect and at worst are associated with indecent forms of work. Rather, conditions of work are defended by powerful trade unions that exercise structural power via their strategic position in the value chain and associational power through links with political parties and residual ethnic ties within and between nation‐states. It is evident that through close collaboration between the International Labour Organization (ILO) and the tea sector unions, workers are able to leverage institutional power through both national and international labour standards to reinforce decent work for those at the very bottom of the global value chain.     

The Unexpected Appearance of a New German Model

Most Continental European labour markets and welfare states have experienced a substantial transformation. Germany is a case in point as it exhibits increasing levels of employment and a growing share of low pay and non‐standard work. The article claims that changes in labour market institutions play a major role, but changes in industrial relations at the sectoral level and individual firms' staffing practices are equally important. Regarding labour market institutions, the pattern found in Germany shows sequences of reforms addressing the margins of the labour market and contributing to a growing dualization of employment. This dualization trend was reinforced by micro‐level dynamics in industrial relations and company employment practices, where we can observe growing reliance on mechanisms of internal flexibility for the skilled core workforce and increasing use of non‐standard types of employment in less specifically skilled occupations, in particular in the private service sector. Hence, the adjustment of the German model can only be understood by taking into account the interaction of policy change and actors' adaptive behaviour.     

The impacts of value chain upgrading on the export of processed food

Upgrading in global value chains (GVCs) is an important path for developing countries to move along to capture higher benefits. Several qualitative studies of GVCs have identified two main upgrading types: economic (product, process, functional, and inter-sectoral) and social upgrading. The upgrading concept is widespread in productive sectors such as processed food, which has become a key export for developing countries. However, they have confronted multiple product standards required by global buyers. This study uses a case study of Thailand’s processed food exports (TPFEs). Although Thailand is a leading exporter of processed food, the country needs to upgrade in many areas related to production to meet global product standards and requirements. If Thailand fails to comply with global product standards, it will lose its export competitiveness. This study uses a gravity model to evaluate the impact of economic and social upgrading (EUP and SUP) on TPFEs. Our results show that upgrading types are significant in TPFEs, particularly for exports to developed countries. Process upgrading has a negative impact on TPFEs because of increased production costs to comply with product standards. However, process upgrading can lead to increased producers’ and exporters’ knowledge about how to comply with international standards. Consequently, process upgrading exhibits a lagged positive effect on TPFEs.     

Improving Working Conditions in Garment Supply Chains: The Role of Unions in Cambodia

Given the disappointing outcomes of private regulation of labour in global supply chains, worker organization is increasingly seen as the key to better working conditions. This article examines the extent to which unions impact different dimensions of labour standard compliance in Cambodia's garment export sector, where unions have grown considerably. Based on unique factory‐level data and field‐based interviews, this study shows that union presence improves factories’ compliance with wage, hours, and leave standards, although the impact is much less significant for health and safety. Moreover, having multiple unions in the workplace does not appear to improve labour conditions.     

A ‘Problem of Fairness’ in the Making: The Transformation of Public Services from the Perspective of Postal Workers

During the last two decades public administration and public services have undergone profound changes with far‐reaching impacts on employment relations and working conditions. The paper presents the perceptions and lived experiences of workers affected by liberalization and privatization of public services. In doing so it focuses on workers’ ideas of fairness and dignity at work using the concepts of distribution, recognition and the public ethos of the common good and linking them to fundamental principles of justice. It is argued that the perception of inequalities as fair, while it is shaped by custom, is also being socially constructed during far‐reaching changes. The analysis is based on a series of qualitative interviews conducted in Austria, Germany and Switzerland with postal‐service workers, a sector well suited for the analysis because of the far‐reaching changes in terms of market regulation, ownership of organizations, labour regulation, employment and working conditions.     

Summary of an Article on Reforming Land-Use Regulations

This article describes how excessive land use control adversely affects the cost of housing. Numerous studies showing the impact of over-regulation on housing costs are cited. The article provides both a historical and philosophical context for public land use regulation and describes key judicial decisions as well as competing public and private interests that shape the regulatory environment.
Specific attention is given to the work of the Committee on Government Regulation and the Cost of Housing of the President's Commission on Housing. The various recommendations of the Commission are set forth, the central one being the enactment of state and local legislation to restrict zoning regulation to that which is necessary to achieve what the Commission terms a "vital and pressing" governmental interest. A number of other specific Commission recommendations are also enumerated including density of development, restrictions on manufactured housing, size of dwelling units, growth controls, farmland preservation, development standards and fees, and local permit processing. The article concludes with a strong statement regarding the need for public education as a prerequisite for reform.     

‘From boom to where?’: the impact of crisis on work and employment in Indian BPO

This article locates Indian business process outsourcing (BPO) within the global supply chains of business services delivery and an international division of service labour. It acknowledges the BPO market's essential dependence on demand from lead firms in the United States and United Kingdom. Drawing on a conceptual synthesis of the Global Commodity Chain, Global Value Chain and Global Production Network frameworks, the article examines the impact of 2008's financial crisis on employment, work organisation and the experience of work in Indian BPO. Employer/industry sources and employee interviews reveal reconfigured local labour market dynamics, tightened work discipline, an extensification of working time, work intensification and unprecedented growth in job insecurity. Such changed characteristics suggest a watershed that raises questions concerning the sustainability of models of BPO work constructed in pre‐crisis years.     

Corporate codes of conduct and labour turnover in global apparel supply chains

Research on private regulation of labour issues in global supply chains has focused extensively on whether supplier factories comply with the codes of conduct of global companies. Less is known about how such compliance relates to the preferences and behaviours of workers at export factories. This study analyses a unique dataset of factory audits matched with a survey of worker turnover rates from 622 factories in 28 countries supplying a large global apparel retailer. The results show that violations of the retailer's codes of conduct for suppliers are generally related to turnover, but that workers ‘vote with their feet’ primarily for violations of wages and benefits, relative to violations of other code provisions such as environment protection and safety standards. This ‘means-ends’ decoupling between factory practices and worker preferences implies that global firms need to incorporate the livelihood logic that underlies workers' turnover decisions while implementing their private regulation programmes.     

Online,on call: the spread of digitally organised just‐in‐time working and its implications for standard employment models

This article questions whether the dominant policy discourse, in which a normative model of standard employment is counterposed to ‘non‐standard’ or ‘atypical’ employment, enables us to capture the diversity of fluid labour markets in which work is dynamically reshaped in an interaction between different kinds of employment status and work organisation. Drawing on surveys in the UK, Germany, Sweden and the Netherlands that investigate work managed via online platforms (‘crowdwork’) and associated practices, it demonstrates that crowdwork represents part of a continuum. Not only do most crowd workers combine work for online platforms with other forms of work or income generation, but also many of the ICT‐related practices associated with crowdwork are widespread across the rest of the labour market where a growing number of workers are ‘logged’. Future research should not just focus on crowdworkers as a special case but on new patterns of work organisation in the regular workforce.     

Standards, trade and competition in the emerging global information infrastructure environment

Decentralized construction of the Global Information Infrastructure (GII) is substituting market-driven, ‘de facto’ standards and voluntary agreements on standards for technical compatibility, in place of the engineering decisions once made by public (and quasi-public) telecommunications network operators. Due to strategic economic behaviours on the part of private businesses and national governments, the goal of a fully interoperable GII remains elusive. The Internet does not offer an entirely credible alternative model, as the standards that have facilitated its explosive growth also are contributing to serious congestion problems, and the solutions proposed point to the Internet's re-integration into the public switched telecommunications network. Technical standards will shape the GII's implications for international trade and competition, and thus raise important, but inadequately recognized issues for regulation, competition and trade policy.     

Raising the Standard? The Regulation of Employment,and Public Sector Employment Policy

This article describes developments in employment regulation in 2005 and assesses how far these measures fulfilled the Government’s pledges to the union movement made in the Warwick Agreement. It also examines the Government’s behaviour as an employer, and the interplay between public and private sector employment practice. It concludes that there was limited evidence of Government commitment to the traditional conception of the good employer. There was also little sign of the public sector being used to promote a coherent model of employment practice to private sector employers in 2005. Direct regulation of the employment relationship was more in evidence.     

Contractual (In)Security, Labour Regulation and Competitive Performance in the Port Transport Industry: A Contextualized Comparison of Britain and Spain

Spanish ports have traditionally been derided for poor performance and acrimonious labour relations. This situation has been reversed in recent years through a programme of reform that has (a) created a more congenial organizational ecology in which firms co-operate as well as compete; (b) ensured the collective provision of vital production inputs such as training and social peace; and (c) co-ordinated investment in new port capacity and equipment. Spanish ports now match the performance of Britain's privatized and deregulated port transport industry, where co-operation is more notable by its absence, insecurity is rife and price competition intense. Through a contextualized comparison of labour regulation in the two countries, it is possible to demonstrate that an 'institutionally saturated' and 'politically bargained' system of production and employment is compatible with, if not a necessary condition for, competitive performance in the international port transport industry.     

Do private standards create exclusive supply chains? New evidence from the Peruvian asparagus export sector

Developing countries are increasingly exporting fresh horticultural products to high-income countries. These exports increasingly have to comply with stringent public and private standards, as well as other quality and safety issues. There is an ongoing debate on the effect of private standards on the inclusion of small-scale farmers in export supply chains. With this paper, we contribute to this debate by providing new evidence from the Peruvian asparagus export sector, and by addressing several important methodological shortcomings and gaps in the existing literature. We describe export dynamics using a unique firm level dataset on 567 asparagus export firms from 1993 to 2011 and the evolution of certification to private standards using own survey data from a stratified random sample of 87 export firms. We use an unbalanced panel of the surveyed companies on 19 years and several methods, including fixed effects and GMM estimators, to estimate the causal impact of certification to private standards on companies' sourcing strategy. We find that certification leads to vertical integration and significantly reduces the share of produce that is sourced from external producers, with a larger effect for small-scale producers. When distinguishing between production and processing standards, and between low-level and high-level standards, we find that especially high-level production standards have a negative impact on sourcing from (small-scale) producers.     

Institutional Solutions to Precariousness and Inequality in Labour Markets

It has become widely assumed that the standard employment relationship (SER) is in irreversible decline in industrialized societies. However, non‐standard and precarious work relationships often complement the SER via labour market transitions, and are not displacing it as the focal point of labour market regulation. The co‐ordination and risk management functions of the SER continue to be relevant in market economies, and the SER is adjusting to new conditions. The SER has a complex and evolving relationship to gender and to social stratification. In the European context where the SER originated and achieved its clearest legal expression, institutional solutions to precariousness and inequality are being developed, the most innovative of which avoid simple deregulation in favour of integrated policy responses involving a range of complementary regulatory mechanisms.     

Sharing Risks of Labour Market Transitions: Towards a System of Employment Insurance

The increasing polarization of the labour market is closely related to the spread of non‐standard employment relationships that largely results from poor risk management of critical transitions over the life course. The question, therefore, arises whether labour market regulation, in particular unemployment insurance, is still properly designed for the new world of work. This article argues for an extension of unemployment insurance towards a system of employment insurance by summarizing the concept of transitional labour markets, indicating the risks that challenge current and future labour markets, laying the theoretical groundwork, and discussing the main features of an employment insurance system.     

Work in Britain's Informal Economy: Learning from Road‐Side Hand Car Washes

The United Kingdom has over 10,000 hand car washes (HCWs). This article examines two research questions: what do HCWs reveal about the informalization of employment? and what is the prospect of regulation of them? Setting HCWs in a theoretical framework shows that they are part of a growing industry which is becoming an increasingly familiar and visible part of the economy, where control of labour costs is a key factor. Employers make a strategic choice to engage precarious and vulnerable, usually migrant, labour securing further competitive advantage at the cost of pronounced labour exploitation and long hours — the tendency towards informalization. Therein a low‐cost business model disciplines competition to usurp higher productivity mechanized car washing.     

Global Labour‐Standards Advocacy by European Civil Society Organizations: Trends and Developments

In recent years, developments in intergovernmental organizations and transnational private governance organizations have created new opportunities and constraints for the promotion of global labour‐standards governance by civil society organizations (CSOs). This article describes how European CSOs (including trade union organizations and non‐governmental organizations (NGOs)) respond to these developments. It argues that European civil society is witnessing a threefold shift in priorities of labour‐standards advocacy: from pushing regulatory approaches to organizational capacity building; from corporate responsibility strategies focused on compliance to strategies focused on transparency; and from fair labour standards within the sustainable development agenda to a host of other issues. The overall result is that labour‐standards advocacy in general and private labour governance in particular are receiving less attention from European CSOs.