Global Labor Standards

The formation of global commodity chains exemplifies how globalization interconnects national economies. On the one hand, these chains vastly decreased the prices of numerous products as well as stimulated the economies of several developing countries. On the other hand, they resulted in price wars that pushed suppliers to depress wages and labor conditions for the sake of cost-efficient competitiveness. Divided on how to approach poor labor conditions, a number of scholars expressed opposing views on the imposition of global labor standards as they have various consequences for the poor. While U.S. companies promote labor rights in sweatshop nations, their resolutions are merely public relations strategy and as a result, even something as

In “Labour Standards for a Fair Globalization for Workers of the World,” Verma and Elman (2007) reviewed international labor relations. According to their study, labor standards have two conceptual levels, basic and comprehensive. Basic standards refer to the minimum level of labor rights, while comprehensive standards incorporate a process for continuous regulation and development (Verma & Elman, 2007, p. 57). The International Labour Organization's (ILO) Core Labour Standards offers the following standards: (1) Freedom of association; (2) Abolition of forced or compulsory labor; (3) Prohibition of child labor; and (4) Removal of discrimination; and (5) Right to collective bargaining (Verma & Elman, 2007, p. 58). While they may seem initially basic, particularly for Americans who are already against child labor and support collective bargaining, in reality, these aspects are controversial owing to their impacts on existing manufacturing operations and employed

Verma and Elman (2007) understand that not all governments and companies desire strict labor standards as they can be hindrances to competitiveness. If the labor standards are too extensive, strict, and expensive, buying companies will go somewhere else and the industry in that country will decline. Nonetheless, Verma and Elman (2007) argued that labor standards are beneficial to all because they can boost standards of living and national economic growth (p. 57). To support the design of effective labor standards, they examined the pros and cons of hard and soft models where hard models are legislation-based and soft counterparts are largely voluntary and pressure-based. Findings showed that consensus is vital to the creation of legitimate labor standards (Verma & Elman, 2007). They proposed the characteristics of feasible and just labor standards: long-term effectiveness, protection for all workers, subject to external pressures, and the inclusion of basic human and labor rights (Verma & Elman, 2007, pp. 62-63). By providing this model, they stress the significance of labor standards in ensuring the safety and development of workers all over the world which will benefit nations and consumers as