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From Poverty to Power Green, Oxfam 2008 - weman

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3 POVERTY AND WEALTH THE CHANGING WORLD OF WORKinitiatives’ such as the Ethical Trading Initiative have brought <strong>to</strong>gethersupermarkets and clothes retailers, among others, with trade unionsand NGOs <strong>to</strong> seek ways <strong>to</strong> protect labour standards in their supplychains. 130 They have identified and piloted corporate purchasingpractices that respect ‘decent work’, freedom of association, and therole of trade unions. Activities include experimenting with differentways of commissioning independent ‘social audits’ of suppliers andfinding ways <strong>to</strong> promote labour standards among smallholders andhome workers. Some institutional inves<strong>to</strong>rs such as pension funds,who see the risk <strong>to</strong> corporate reputations and share prices from badlabour practices, have also weighed in.Many firms are finding that promoting decent work can be goodfor business. In the Dominican Republic, Costa Rica, Mauritius, andthe Philippines, employers have found that low wages and poor workingconditions are associated with employee dissatisfaction, whereashigher wages, better working conditions, and more job flexibility help<strong>to</strong> attract and retain a more contented and better-trained workforce.131 The ‘demonstration effect’ of seeing a rival fac<strong>to</strong>ry gain anedge through promoting better practices can be far more effective inconvincing business leaders <strong>to</strong> follow suit than any number ofresearch papers or campaigns.BOX 3.6CAN TRADE AGREEMENTS PROMOTE LABOUR RIGHTS?Labour provisions appear in almost all US and EU bilateral andregional free trade agreements, but parties merely commit <strong>to</strong>uphold domestic labour laws, irrespective of their quality orcurrent levels of enforcement. There is no requirement for ILOstandards <strong>to</strong> be incorporated in<strong>to</strong> domestic law and no enforceableobligations are placed on foreign inves<strong>to</strong>rs. The US–Jordan FreeTrade Agreement, for example, requires only that parties ‘strive<strong>to</strong> ensure’ that domestic laws are consistent with ‘internationallyrecognised labour rights’. The agreement has had little effect onworking conditions in Jordan, which are atrocious, especially forimmigrant workers. 132165

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