WLC Final Practice

Identify the 3 models of regulation

1) old governance/national model - regulation through unilateral legislation 2) new governance/multilateral model - regulation through multilateral institutions like the International Labor Organization 3) voluntary model - regulation through corporate social responsibility RCCC (reporting, codes of conduct, certification, compacts)

Identify the ILO (hard/soft; structure; goals; tripartite)

A UN agency which regulates international trade and labor practices through hard and soft regulatory practices. The organization is divided into 3 branches: the international labor conference, the governing body and the international labor office. These branches play legislative, executive and administrative roles (respectively) in achieving the ILO's goals. The ILO's goals include (FEPS) upholding fundamental principles, improving employment opportunities, achieving social protection and facilitating social dialogue. The agency relies on tripartite mechanisms which ensure the involvement of employers, workers and governments

Identify core and cash standards

Core: established by the ILO's 1998 Declaration on Fundamental Principles and Rights at Work - DC AF - elimination of discrimination - elimination of child labor - freedom of association - elimination of forced labor Cash: directly regarding labor costs; not formally recognized by the international community - WTH - establishment of minimum wage - establishment of working time limits - improvement of health and safety standards

Discuss the problems associated with voluntary regulation

G. WOM VCLIT Gimmick (from the perspective of many consumers) Workers do not know the code Often no penalties Monitoring is not done well Variation across codes Consumer goods-focus Large scale Increases manufacturing costs (unnecessarily from the view of the manufacturer) Transparency

Compare and contrast the EU and NAFTA with regards to their approaches to labor standards (model; hard/soft; lack/benefit; capacity)

The EU employs a model geared toward upward harmonization. It relies on hard regulation through directives which can be ratified into legislation and soft regulation through mechanisms like open coordination wherein targets and goals are specified, but each country is free to achieve those goals in their own way. The EU benefits from the encouragement grassroots participation and sectoral dialogue. The EU's structure has the capacity for the establishment of universal labor standards. NAFTA, on the other hand employs a model wherein members are expected to respect the laws of other members. It relies only on hard regulation, through the legislation unilaterally put into place by each member nation and through convoluted and costly complaint and investigation processes. NAFTA suffers from the lack of an overriding authority and legislative consistency. NAFTA's structure does not have the capacity for the establishment of universal labor standards.

Assess the effectiveness of the ILO

The ILO's effectiveness is dependent on 1) their implementation of hard and soft regulation and on 2) the programs which they have established in order to accomplish their objectives. 1) In addition to hard regulation which the ILO engages in through sanctions, the ILO uses soft regulation through declarations of principles without binding force, the active involvement of NGOs, and through publishing quantitative indicators to track compliance. 2) For each of the ILO's objectives (FEPS), the ILO has established corresponding programs. (F) To ensure compliance with fundamental principles, the ILO's committee of experts monitors and reviews violations of international labor standards. (E) To improve employment conditions, the ILO offers vocational training and social finance programs. (P) To achieve social protection, the ILO's social security department works to achieve reforms of social security systems. (S) In order to facilitate social dialogue, the ILO has established economic and social councils based on tripartite and bipartite mechanisms. 3) However, the ILO also has shortcomings. It doesn't work with NGOs, it's very bureaucratic and it lacks enforcement power (NO TEETH)

Identify the winners and losers of globalization

Winners: - national govts - pressured to enact responsible fiscal policy - developed countries - expand econ through MNCs -MNCs - developing nations - tech transfer, employment, etc Losers: - national govts - lose sovereignty to international organizations - domestic businesses in developing countries - workers in developed countries - environment

Discuss the arguments for and against international labor standards/linking labor standards to trade

pros: RAC - prevents a Race to the bottom mentality - Altruistic concerns for the working poor in the developing world - prevents Child labor and promotes long term investments in human capital cons: PACS - can be used as thinly veiled Protectionism for developed countries - negates comparative Advantage held by developing countries in low-cost manufacturing - form of cultural imperialism - threatens the Sovereignty of developing nations