Tuesday, 4 April 2017

We are right on structural adjustments programs and their attacks on Labour Rights, Trade Unions Rights , outcomes for societies - thats according to the UN report on the IMF , Global and Regional Financial Instructions, just released.

At the March 2017 United Nations, Human Rights thirty fourth session the 
" Report of the Independent Expert on the effects of foreign debt and other related international financial obligations of States on the full enjoyment of all human rights, particularly economic, social and cultural rights " was provided.  

 " The report includes a number of key reference points for PSI affiliates to use in negotiations with their own governments , Finance Ministers and Regional Financial Institutions like the Asian Development Bank ." 

"The report clearly substantiates the points that PSI Advocates and Affiliated Unions have made on arguing the course against structural development programs that harm Public Services Workers Rights, take home pay, conditions of employment, privatisation and more." .......Greg Mclean   

Some of the examples and quotes include the following points  !!!!  

" In many countries, austerity-related labour law reforms have been promoted by international financial institutions on the assumption that they will lead to economic growth and thus prevent or help overcome debt crises. These reforms have included freezing or reducing wages and minimum wages, extending working hours, placing workers on precarious contracts or labour reserve schemes and facilitating dismissals. Of particular concern are reforms that have targeted collective bargaining systems, for example by restricting the extension of sector agreements and pushing bargaining down to the workplace level or permitting bargaining with non-union representatives. In his report, the Independent Expert argues that these reforms often erode labour rights and result in retrogression of work-related gender equality. They have frequently contributed to an increase in inequality and insecure and informal employment; fostered discrimination in the labour market towards young and older persons and individuals belonging to marginalized social groups; and resulted in the reduction of job-related social protection. Furthermore, it is questionable whether eroding labour rights generates economic and social benefits to other rights holders that would justify encroaching on them. The Independent Expert concludes with a number of recommendations on how to improve the protection of individual and collective labour rights in response to financial crises." page 1 

" The mainstream assumption that labour rights are generally detrimental to economic development has been challenged at theoretical and empirical levels and it has been, shown more concretely that austerity-related labour market reforms do not usually help economies to recover after crises. Actually, these reforms have not improved economic performance; instead they have inflicted substantial harm on working people, which will be felt for many years." page 3 

"Weakening of collective bargaining, weakening of Unions , attacking national bargaining agreements"  page 7 

" International financial institutions and national development banks must also respect labour rights when providing loans to States and imposing the condition to implement certain fiscal and macroeconomic reform policies" . note 24 page 9

The privatization of public companies promoted by IMF and World Bank-driven adjustment programmes has, in several developing countries, such as India, furthered the fragmentation and weakening of local trade unions. - note 34 page 12

" Other adverse effects concern the quality of the public service. Reductions in public servants’ salaries can affect productivity in the public sector,55 which, in turn, lends itself to an argument for privatization or additional wage cuts. - note 39 page 34 

" Empirical findings overall do not seem supportive of the claim that labour law deregulation fosters recovery after economic crises. Indeed, the evidence seems to be more in line with the argument that “pressure towards labour market flexibilization, aimed at boosting export-led growth, will eventually lead to lower consumption, net exports and employment” at the global level." note 51 page 17 

The report recommendations are - 

A. Ensure respect for labour rights through human rights impact assessments.

B. Cushion adverse effects through a robust social security net.

C. Ensure consultation with social partners and civil society.

D. Incorporate labour rights in policies of international, regional and national financial institutions.

E. Ensure policy coherence on labour standards within international organizations.

F. Strengthen national and international mechanisms providing effective remedies against labour rights violations.

The full report can be located at  
http://ap.ohchr.org/documents/dpage_e.aspx?si=A/HRC/34/57  and is in 5 languages of  E F S A C R

Please use this report and pass on across our Network , 

News item drafted by GM