Lecture 10

Question 1

What is the ILO?

Answer 1

established in 1890 during the Treaty of Versailles, its the International Labour Organization

Question 2

What does the ILO do?

Answer 2

Sets minimum international standards through Conventions and Recommendations, subject to ratification but not formal sanctions

Question 3

What is included in the Declaration of Fundamental Principles and Rights at Work?

Answer 3

1. freedom of association and the right to engage in collective bargaining
2. elimination of forced labour
3. elimination of child labour
4. elimination of discrimination in employment

Question 4

What is the NAFTA Labour Side Agreement?

Answer 4

dispute settlment of labour complaints and violations, pines are payable to the offending country on the condition that they be used to enhance standards

Question 5

GSP

Answer 5

Generalized System of Preferences, which are programmes on conformity with international labour standards. They insist on adherence to core labour standards and basic human rights

Question 6

What are the rationales for trade policy and labour standards?

Answer 6

• it is unfair for workers in developed countries to have to compete with developing countries who have lower labour standards and lower costs
• this may lead to a race to the bottom, where countries will have to lower their standards, which is destructive. Countries should adhere to globally core standards
• this kind of competition also seeks to deprive developing countries of their major sources of comparative advantage, which are low labour costs.

Question 7

Enforceability of ILO

Answer 7

Does not historically invoke santions for violations, although Article 33 of the ILO can be interpreted to embrace sanctions.
- sanctioning would threaten the stability of the ILO, and induce countries to withdraw or decline to ratify

Question 8

Soft Law Options

Answer 8

• certification, labelling, and voluntary codes of conduct
• corporate social responsibility
• market reactions