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Globalisation > 1. Global Labour > Flashcards

1. Global Labour Flashcards

1
Q

Spatial Fix Definition (Harvey 2011)

A

“Spatial displacement through opening up new markets, new production capacities, and new resource, social and labour possibilities elsewhere”

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2
Q

Why do companies find a spatial fix?

A

Competition eventually becomes fierce in one place

Labourers demand better wages and conditions

Forces profits to shrink

Opportunities to produce elsewhere cheaper and with less competition

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3
Q

Merk 2011 labour intensive industries:

A

When wages start to increase and/or workers gain power companies may safeguard profit
- by relocating to where workforce can be found with no experience or unions

External solution for emerging profitability crisis and labour control

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4
Q

Example of a company that undertook spatial fix

A

Nike knee wages were lower in Asia, first mover 1980s

Puma and Adidas still manufacturing in high wage European counties, Nike overtook them in market share
- by 1990s copied Nike

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5
Q

Geopolitical context of spatial fix

A

Cold War

US led capitalism vs soviet led communist powers

Offshoring initiatives took place within alliances

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6
Q

What is a vassal state?

A

Subordinate to a superior state

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7
Q

South Korea was a vassal to US, impact on economy of South Korea?

Export led industrialisation

A

Late 1980s footwear exports accounted for 5% of annual exports for South Korea

20% shoe production globally

Reebok and Nike sourced 55% from South Korea

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8
Q

What leads to Sweatshops?

A

Rapid industrialisation = terrible working conditions

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9
Q

Management in factories (sweatshops)

A 
Authoritarian 
Patriarchal
Strong arm management 
= 
High productivity

Dictatorship and repressive labour laws
Barred trade unions

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10
Q

The Great Labour Struggle 1987 South Korea

A

Industrial action

Push for democratisation

Strikes and protests

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11
Q

South Korea by early 1990s

A

2/3 fully unionised

Had higher wages and safer conditions

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12
Q

South Korea become more expensive and profits fell due to

A

Labour shortages

Growing wages

Stronger unions

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13
Q

After South Korea what other countries provided opportunities for relocation?

Alternative sources of supply

A

China

Indonesia

Taiwan

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14
Q

Taiwan followed South Korea

A

Didn’t result in massive strikes or protests

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15
Q

Taiwan labour shortages and wage rises resulted in profit squeeze

A

Labour reforms introduced aiming to recuse Taiwan’s trade surplus

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16
Q

US government pressured Taiwanese government

A

Reduce US firm reliance upon Taiwanese Spatial Fix

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17
Q

Where did Taiwanese manufacturers turn to?

A

China, exporting to south China coast

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18
Q

China working conditions

A

Less organised

Less able to demand higher wages

= greater productivity

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19
Q

How is productivity enabled

A

Poor working conditions

Disorganisation of labour

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20
Q

Taiwanese movement to China simpler because

A

Fewer linguistic, ethnic and cultural barriers to overcome

Controlled by Taiwanese capital

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21
Q

Indonesia spatial fix

A

Entry into production was rapid

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22
Q

Why was Indonesia’s entry into production rapid

A

Increase scales of operation, larger manufacturing sites, better resist low cost demands from buyers

Greater flexibility, timeliness and accuracy

Speed up design to market time, design themselves

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23
Q

Learn to resist management consequence

A

Less productive

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24
Q

Vietnam Doi Moi 1986

A

Legal reform to attract foreign investment

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25
Q

Nike 1995 sourcing in Vietnam

A

Even lower wages than China

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26
Q

Spatial shift pattern

A

South Korea
Taiwan
China
Indonesia & Vietnam

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27
Q

Retail dominated/buyer-driven commodity chains result of:

A

Logistical integration made possible by revolution in IT transport technology

Neoliberal restructuring of rules of global economy

28
Q

Pressures to relocate China

A

Shareholders demanding greater return on investments (Milberg 2008)

29
Q

Global retailers in China

A

Has facilitated US expansion of low wage, import dependant retail sector

Huge export manufacturing boom in coastal China

30
Q

Why have retailers gained power in relation to brands since the 1990s?

A

Taken advantage of its monopoly of information about changing consumer preferences

31
Q

Relationship of global labour and retailers?

A

Affects relationship between capital and labour in east Asia

32
Q

Buyer driven commodity chains are a result of?

A

Logistical integration made possible by revolution in information and transport technology

Neoliberal resourcing of rules of world economy

33
Q

Buyer driven commodity chains facilitate

A

US expansion of low wage, import dependant retail sector

Huge export manufacturing boom in coastal China
- driven by shareholders demanding greater return on investment (Milberg 2008)

34
Q

Huge export manufacturing boom in costal China driven by

A

Shareholders demanding greater return on investments (Milberg 2008)

35
Q

How do retailers gain a more precise understanding of demand?

A

Track consumer behaviour and transmit customer preference down supply chain

New IT collects POINT OF SALES (POS) data
- relays electronically down supply chain to initiate replenishment quickly at minimum cost

36
Q

Retailers goal?

A

Procure goods consumers want to buy not what suppliers find convenient and profitable (Applebaum & Lichenstein 2006)

37
Q

Walmart is

A

The worlds largest retailer

38
Q

Because Walmart is the worlds largest retailer they can

A

Make markets

Define shopping environment

Set everyday low price

Specify rules of conduct and standards for thousands of global suppliers (Applebaum & Lichenstein 2006)

39
Q

China can capitalise on market growth whilst exporting its DEFLATIONARY POWER

A

Low wage labour = reduced price of products sold

Don’t need same wage to live as costs lower in countries

40
Q

What is deflationary power?

A

Low wage labour = reduce prices of products sold

41
Q

Neoliberal politics and the Rise of China

A
  1. Neoliberal ideas and free trade
  2. US 1970s stagflation and 1980s collapse of minimum wage
  3. Liberalisation initiated in China 1979
  4. US labour law hollowed out: trade unions weakened
  5. East Asian competitiveness, NAFTA and Chinese liberalisation (make Asia competitive)
42
Q

Impact of Walmart ‘World Purchasing’ HQ in Shenzhen China

A

Turned 3000 Chinese suppliers into powerless price takers

Had to battle against one another

Walmart defeating prices

43
Q

Yue Yuen Industrial supplier labour force

A

80% women

Heavily reliant on migrant from outside region

44
Q

Walmart CSR contribution

A

Factory certification programme following 1992 NBC documentary on child labour in Bangladesh

Audit all suppliers once a year

45
Q

Why does Walmart have a poor record?

A

Drive for low prices conflicts CSR efforts

Difficult to control/audit sub-contractors

Delegated CSR

46
Q

How are workers starting to gain power in China?

A

Exploding demand

Shop-floor labour shortages

47
Q

International labour standards regulated by

A

International Labour Organisation

Includes UN Human Rights

48
Q

Why may the ILO advantage firms?

A

Weakens role of trade unions

49
Q

Employers often regard labour rights as `

A

Aspirational, implemented when and if they become `economically sustainable‘.

50
Q

Why is the ILO visibly impotent?

A

Moral leadership, but without enforcement power to sanction labour-standards violators.

51
Q

Walmart and IKEA rely on global sourcing networks

A

Yet are sensitive to consumer norms through their retailing establishments, avoid scandals

52
Q

IKEA is more flexible so

A

More successful in internationalising its concept to more counties

53
Q

Both Walmart and IKEA have strong corporate cultures

A

Organised around narratives about their home countries (Sweden and USA)

54
Q

IKEA global presence

A

37 countries with stores, 139000 directly employed workers in 44 countries.

55
Q

Wal-Mart global presence

A

Largest firm and retailer in the world. 1.3 million direct employees, 3400 stores in US.

56
Q

IKEA claims that poor worker treatment results from

A

Poor management.

57
Q

IKEA cost reduction strategy accomplished through

A

High volume production and innovation in materials, transport and packaging

58
Q

IKEA part of philosophy is to demand decent labour conditions from its suppliers

A

Claimed to derive from prevailing norms and institutional relationships in Swedish welfare capitalism

59
Q

According to IKEA there is no supposedly inherent conflict between maintaining good working conditions

A

and maintaining profitability

60
Q

IKEA philosophy gives unions and NGOs instruction to

A

monitor and address specific problems to ensure laws are followed

61
Q

KEY conflict IKEA

A

The systematic cost-reduction strategy of IKEA is at odds with upholding high labour standards of IKEA way.

62
Q

IKEA Response to conflict between labour standards and cost reduction

A

Sustained contracts rather than high short-term profits
followed by costly setting up of new contracts

Long-term relationships as a route to cost-effective production

Established quiet and controllable resolution mechanisms, avoiding damage to the public image.

Struggles to self-monitor, even when it is in its own interest to do so.

Remaining incentive for suppliers to cheat the IKEA way.

63
Q

How to explain Wal-Mart’s Strategy and Uneven Success?

A

Its international subsidiaries appear to perform better in markets where there is:

Weaker labour organisation and union autonomy

Weaker labour regulation enforcement

Wage bargaining is towards the individual end of the collective-individual axis

Lifetime job tenure/security is highly unusual

Culturally inflexible (Durand and Wrigley, 2009).

64
Q

Wal-Mart’s Code of Ethics

A

Seeking to detect public relations problems arising from poor supplier labour relations before unions.

Rather than work with suppliers to resolve labour relations issues, it ends its buyer relationship, and disassociates itself from the supplier.

65
Q

IKEA vs. Wal-Mart Summary

A

Both have adopted cost-reduction strategies with labour exploitation an inevitable outcome.

Wal-Mart adopts a strict legal approach, keeping trade unions and NGOs at arms-length distance, severing ties with contractors upon breach of CofC.

IKEA works closely with trade unions and NGOs to be able to sustain long-term relationships with contractors.

IKEA does not have enough control to institute concrete protections among their suppliers when faced with national conditions in which labour rights are not respected.

Remaining incentive for suppliers to cheat IWAY.

66
Q

Recent example in news

A

iwannabeaspicegirl T-shirt’s to raise money to ‘help champion equality for women and girls here in the UK’ comic relief

Produced by women expected to work 16 hours a day in Bangladesh

Globalisation (6 decks)

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