The globalization of production,national labour regulations and income inequality in the global North and South, 1980–2013

A central concern over global value chains (GVCs) is whether the integration of national firms into GVCs exacerbates income inequality within countries. However, despite decades of research, the distributional consequences of GVCs remain unclear in the empirical literature. Drawing on panel data from 96 countries between 1980 and 2013, we examine the effects of GVC integration on market income inequality and whether national labour regulations moderate these effects. We find integration increases inequality in the global North and South. More importantly, we find labour regulations amplify the inequality effects of integration in Southern countries by expanding the size of the informal sector while suppressing these effects in Northern countries by promoting unionization. This suggests institutional power from national labour regulations may enhance the bargaining power of labour in the North through increasing collective resources while disempowering labour in the South through reinforcing labour market segmentation between formal and informal sectors.     

Rethinking the governance of labour standards in South–South regional value chains

The growth of intra‐regional trade in the Global South begs the question of whether frameworks developed for the study of North–South global value chains can be used to study labour standards in emerging South–South networks. Critical of the structuralist approaches characterizing the literature, in this article I tackle the question of how formal and informal institutions interact to shape labour standards in South–South regional value chains. This is achieved in two stages. In the first part of the article, I build on Habermas's theory of communicative action to frame labour standards as the outcome of agents’ interactions within and across firms, politico‐administrative institutions and workers’ private and public spheres. Drawing on this framework, in the second part of the article I compare labour standards across the Kenya handbag and footwear sectors. While, in the former, interaction across informal institutions favoured an inclusive and consensual debate between workers and employers; in the latter, an overwhelming process of marketization and bureaucratization failed to provide an interactive space for workers’ concerns to be voiced and negotiated.     

New tech,old exploitation: Gig economy,algorithmic control and migrant labour

Digital platforms are the newest technological wave that is reshaping and reconfiguring the economic and labour landscape. Digital platforms often known as the gig economy are increasingly adopting app-based models to connect consumers with workers to complete their on-demand tasks. However, on-demand platforms continue to rely on the unequal division of labour and the precarious nature of the work to create labour markets that can respond accordingly to the increase in service provision. This review highlights two main themes that have emerged within the on-demand gig economy in the current literature—mythical autonomy and algorithmic control and misclassification of labour and the complexity of migrant workers in navigating this space. Finally, this review calls for further research into the inside/outside dichotomy of migrant labour within the gig economy and their experiences of labour exploitation through app-based digital platforms.     

The Socioeconomic Incorporation of Immigrant and Native‐born Day Labourers in Tshwane,South Africa

It has been widely documented that unauthorized immigrants experience adverse economic incorporation in destination countries, particularly in the global North. Faced with restricted employment opportunities, many are drawn into informalizing segments of the labour market where earnings are low and unstable. Much less is known about how immigrant workers fare in the informal economy of cities of the South. Using surveys conducted in 2004, 2007 and 2015, we examine the economic outcomes of immigrant and native‐born workers who participate in the day labour markets of Tshwane, South Africa. In 2004 there were signs that foreign‐born workers enjoyed modestly better outcomes than South Africa‐born workers. In the latter periods, however, these advantages have disappeared and there are indications of a downward convergence of employment outcomes. The article concludes with a call for creating worker centres to regulate informal job markets for the benefit of workers, regardless of immigration status.     

The Global Welfare Economics of Immigration

We study the effect of immigration on global welfare. The world is modeled as consisting of two regions, South and North, the former populated by low-skill workers, and the latter by both low- and high-skill workers. Production in the North uses both labor inputs in a complementary way. A trade union in the North keeps the wage of low-skill workers above the Walrasian wage, generating unemployment of low-skill workers. Northern citizens fund unemployment benefits for workers through taxation. Immigration from South to North has two effects in the North: a mixed native-foreign working-class lowers union power, because of reduced solidarity among low-skill workers, and hence it lowers the mark-up on the Walrasian wage that the union is able to negotiate. It also lowers the solidarity between employed citizens and the unemployed (as the latter, now, consist in part of non-natives) and thus the unemployment benefit, set by a democratic process, falls. We calculate the optimal levels of immigration, from the viewpoint of an observer who maximizes global welfare, according to an egalitarian and a utilitarian social welfare function. We compare these levels to the open-borders-equilibrium level. We find that the optimal level of immigration for the cosmopolitan egalitarian is significantly less than the open-borders equilibrium level, while the optimal level for a global utilitiarian is significantly greater than the open-borders level.     

Global value chains for medical gloves during the COVID-19 pandemic: Confronting forced labour through public procurement and crisis

This paper evaluates ways in which labour issues in global value chains for medical gloves have been affected by, and addressed through, the COVID-19 pandemic. It focuses on production in Malaysia and supply to the United Kingdom's National Health Service and draws on a large-scale survey with workers and interviews with UK government officials, suppliers and buyers. Adopting a Global Value Chain (GVC) framework, the paper shows how forced labour endemic in the sector was exacerbated during the pandemic in the context of increased demand for gloves. Attempts at remediation are shown to operate through both a reconfigured value chain in which power shifted dramatically to the manufacturers and a context where public procurement became higher in profile than ever before. It is argued that the purchasing power of governments must be leveraged in ways that more meaningfully address labour issues, and that this must be part of value chain resilience.     

Oligopolistic suppliers,symbiotic value chains and workers' bargaining power: labour contestation in South China at an ascendant global footwear firm

In this article, I analyse changes in the power relationship between lead firms, manufacturers and workers by examining a strike that took place in South China in 2014 among workers at the Taiwanese footwear giant, Yue Yuen. In the process, I demonstrate that there is a link between increased labour costs, capital consolidation and greater value capture at the bottom of the global supply chain. I argue that footwear value chains are seeing a falling level of monopsony power and the emergence of enormous oligopolistic suppliers, which are transforming the power imbalances of global supply chains towards a more mutually dependent ‘buyer–producer symbiosis’. The Yue Yuen strike shows a maturing industrial working class, facing pressures on social reproduction in China, adapting its bargaining strategies vis‐à‐vis the developmental state. Influxes of profit raise the ceiling for what can be demanded of employers, stimulating those same employers to pursue more aggressive means of holding onto their profits. The example of the Yue Yuen strike is an indicator of what are fundamental changes in the production process, dynamics within the value chain, and power and agency of workers in labour‐intensive production. The strike demonstrates that consolidation is playing a decisive role in shaping the power relationship between domestic manufacturers and transnational brands, which, in turn, is directly affecting the bargaining power of workers.     

Competition in online job marketplaces: towards a global labour market for outsourcing services?

A new form of service outsourcing has emerged, namely the global online job marketplace for freelance contractors. Such platforms are currently the closest proxy to the idea of a global labour market where everyone competes for jobs regardless of location. In this article, we examine how competition manifests itself on one such global online platform, namely oDesk. We present a comparative analysis of the relative wages and the rewarding of skills and expertise of contractors from selected countries and investigate whether, via labour arbitrage, wage convergence takes place between Western and developing countries. We find that wage convergence is noticeable but experience and skills hardly translate into better remuneration. While service outsourcing (or microwork) via global online marketplaces provides new employment opportunities for freelancers around the world, the intense competition and the inherent restrictions of this type of marketplace limit the financial gains for most contractors.     

Spatial politics in the digital realm: the logistics/precarity dialectics and Deliveroo’s tertiary space struggles

This paper uses the case of mobilization of delivery workers from digital platform Deliveroo in order to illustrate the production of space of resistance, which develops as a result of the tension of two emerging factors shaping the digital labour realm: logistics and precarity. On the one hand, I consider how logistics in the digital capitalist context produce precarious workers whose ICT-driven connectivity and flexibility responds to the logistical imperatives of effective commodities circulation. On the other hand, taking advantage of the tech-savvy precarious position they were hired for, Deliveroo workers display the capability to strategically cut across “abstract” and “differential” space, and therefore re-territorialize a third space dimension where digital labour can organize and antagonize digital capitalism.     

Labour in Global Production: Reflections on Coxian Insights in a World of Global Value Chains

Abstract

This essay reflects on Robert W. Cox's work on global production, labour, and labour governance, and considers how his insights might illuminate the present conjuncture for labour in production. I work with an understanding of that conjuncture as involving the rise to pre-eminence of global production networks (GPNs) and global value chains (GVCs) as the contemporary expression of the ongoing globalization of production. The primary tasks of the essay are twofold: first, to explore the dynamics of labour and power in the GVC-based global economy, with a particular emphasis on labour exploitation; and second, to link these questions to those of the governance of the global economy, focusing on the shift towards transnational private governance as the dominant mode of contemporary governance, and on the evolving strategies of organized labour and the International Labour Organization in that context.     

New Zealand's turbulent waters: the use of forced labour in the fishing industry

In this article, we make an empirical and conceptual contribution to the emerging debate on unfree labour in the context of labour chains and global value chains. We recast an historical view of poor labour practices aboard some foreign charter vessels fishing in New Zealand's waters as something more nefarious. Applying the International Labour Organization (ILO) and European Commission (EC) operational indicators of human trafficking for forced labour to 293 interviews, we evaluate the extent to which we can consider migrant fishing crew aboard South Korean vessels as victims of forced labour. We find that they are indeed victims of forced labour and that there is a need to extend the ILO/EC operational indicators to take into account exit strategies. Specifically, there is insufficient recognition of deception, exploitation and coercion at the point of exit, which can prevent a trafficked victim from exiting the employment relationship. Thus, it is crucial to take account of all stages, from recruitment to exit, to understand fully unfree labour in labour and global value chains.     

Beyond labour rights

The protection of workers worldwide is most often sought through reference to the International Labour Organization's ‘core’ labour standards. These rights are, in themselves, of great importance; that said, however, the blanket approach with respect to workers that results from the over-reliance on rights is gender-blind, and incapable of integrating the crucial normative dynamics of relational power, collective responsibility and mutual dependence into its analysis. By contrast, a normative framework based on a feminist political ethic of care allows for a clear picture of the actual, situated, interdependent lives of all people, and is particularly useful in highlighting existing gender imbalances with respect to responsibilities for care work. Globally, women bear by far the greatest responsibility for care work, and that burden has been multiplied exponentially under conditions of globalization. This article will argue that only a care-centred perspective can provide the necessary moral orientation and policy framework through which to begin to solve these problems of gender (as well as race and class) inequality related to both wage labour and paid and unpaid care work, as well as problems relating to the under-provision of care on a global scale.     

Understanding labour processes in global production networks: a case study of the football industry in Pakistan

ABSTRACT

Over the last few decades, the changing nature of global production and distribution processes has raised a number of critical questions regarding work and employment relations. Presenting a qualitative case study of the football industry in Pakistan as an example of the general mechanism of the social relations of re/production in a global system of industrial organization, this research highlights how and under what conditions informal workers are embedded in extended global production networks. By drawing on the integrated conceptual framework of the global production network (GPN) and labour process theory (LPT), this research sheds light on the working conditions and living realities of informal workers. A potential contribution of this paper is to extend the horizon of production network theory by analysing the work and employment conditions of informal workers, which are absent in existing discussions of these conceptual frameworks.     

Disentangled,decentred and democratised: Youth Studies for the global South

Youth Studies’ theories often assume universal generalisability despite rarely making the global South, or its youthful populations, ontologies, values and politics the focus of research. This paper grapples with the idea of a Youth Studies ‘for’ the global South, questioning whether theories/approaches that centre on the global North can be usefully applied in the global South, how and for what purpose. After describing two mainstream domains of Youth Studies scholarship, questioning how they may become applicable to Africa, Latin America and developing countries in Asia, we explicate the geo-politically situated nature of knowledge production. We ask how theories that originate elsewhere can be adapted and put to work in new contexts, contributing towards a Youth Studies that enhances the lives of youth on the global periphery. In Southern sites urgent material challenges dominate young people's lives, requiring theories that are able to analyse the multi-dimensional contextual constraints youth experience. Knowledges can be useful regardless of where they originate, but only when they become intentionally entangled in local realities and are adapted accordingly. We argue, however, that a Youth Studies for the global South needs to demonstrate its relevance beyond applying theories to new local sites. It should be able to say something more general about the human condition. In the current conjuncture of economic instability, we believe that contexts where youth have had to adapt, hustle and survive in precarious conditions for an extended period of time might demonstrate something unique about the human condition, but only if we make these places the focus of our research gaze. The paper concludes with suggestions to enable a Youth Studies for the global South, one which may contribute to this emerging field more effectively through intentional strategies of disentangling, decentring and ultimately democratising the field.     

The Impact of Migration on the Gendering of Service Work: The Case of a West London Hotel

This article responds to a call from Kerfoot and Korczynski to investigate the gendering of service sector employment. As a characteristic of many post‐industrial economies in the global North is the growing significance of migrant workers, this article investigates the impact of migration for work on the gendering of service work. Taking the embodied and emotional labour of workers to be fundamental to service work, it describes how these are refracted and produced through migration. The article draws on 60 interviews with workers in a west London hotel who were born abroad and the human resources staff and managers who are responsible for the recruitment and promotion of the workforce. We argue that migration is an important process in the construction of the contemporary workforce in post‐industrial service economies and that migration status should be understood as intersecting with gender in the production of a gendered performance at work.     

The Global Uprising of Labour? The Korean Labour Movement and Neoliberal Social Corporatism

The role of organized labour as expression of dissent or social resistance to neoliberal economic globalization has attracted increasing scholarly interest. Several writers have argued that we are witnessing the emergence of a ‘global uprising of labour’. In particular, reference is made to the labour movements of the industrializing semiperiphery, such as South Korea, South Africa, and Brazil, which are argued to show a way forward for the labour movements of the North. Such analysis as above, however, focuses on only one aspect of labour movements at the expense of their larger historical context and position within the capitalist world system. By privileging the strictly ‘global’ level of analysis, it ignores a key transformation in the nature of national state-society configurations in the semiperiphery, i.e. the general trend towards both democratization and neoliberal restructuring. Through examining the case of South Korea, I argue that the transition from developmental authoritarianism to neoliberal democracy has dramatically narrowed the terrain from which militant unionism might be expected to emerge. Since the 1980s, the Korean labour movement has undergone a transformation from a militant and almost revolutionary movement, to being co-opted, albeit imperfectly, into the new capitalist democracy. Thus, the threat of neoliberal restructuring has led not to resistance but to labour to seeking a role as responsible partner to government and business in pseudo-social corporatism forums, despite the fact the striking thing about Korean industrial relations is the absolute absence of prerequisites for such a system of social agreement politics. This co-optation reflects general political conditions in the semiperiphery, where simultaneous processes of democratization and neoliberal restructuring have made the assumption of unified resistance to globalization more problematic.     

Service outsourcing and labour mobility in a digital age: transnational linkages between Japan and Dalian,China

In this article, I examine the transnational mobility of digital workers and the control of their labour across multiple production sites. The digitalization of work has progressively allowed businesses to outsource IT‐enabled service jobs to cheaper production sites offshore. The growth of the ‘offshore outsourcing' of white‐collar service jobs in East Asia has produced the mobility of cheap digital labour from Japan to Dalian in northeast China. They work at call centres and other Japanese‐speaking workplaces in the lower echelons of the city's IT sector, typically earning salaries in Chinese yuan at, or even below, the average Japanese minimum wage. Based on ethnographic findings, I argue that in the global digital economy, digital services are rendered exploitable through their transnational mobility and that this form of labour migration has developed because of the partial, fluid and contingent nature of the transnational links between the two locations. I analyse how the neoliberal logic of exception underpins the creation of IT parks in China and the casualization of labour in Japan to enable new forms of transnational labour control and capital accumulation.     

Temporary Skilled Migration to Australia: Employers' Perspectives1

With the 1996 introduction of a new visa making it easier for employers to sponsor skilled foreign workers, temporary skilled migration has become a significant component of international migration flows to Australia. This paper examines employers' reasons for sponsoring skilled workers from abroad, their modes of recruitment, the occupational skills they require, and their industry profile. We also discuss issues relating to the perception of a shortage of skilled workers, the extent that sponsoring foreign workers substitutes for investing in local training, and the role of networks in recruiting overseas workers. Many employers' now have a global view of labour recruitment. While this is understandable for multinational companies with global operations, many small businesses and public sector institutions are adopting the same strategy to obtain skilled labour which they say is in short supply in Australia. With the internationalization of the Australian economy, there is also an increasing demand for people with specialized skills and knowledge that is not available in Australia's relatively small labour market. An understanding of the demand factors motivating temporary skilled migration is crucial to effectively managing Australia's migration and labour trends.     

The Governance of Forced Labour in the Global Economy

Abstract

The problem of forced labour in the contemporary global economy is attracting increasing attention in global governance debates and policy circles. The effectiveness of governance initiatives depends on underlying understandings of the root causes of the problem. We explore how the root causes of forced labour in global production networks (GPNs) are framed in global governance debates. Focusing on the dominant frameworks mobilized by international institutions, with some attention to cognate national-level and corporate governance strategies, we identify certain limitations to dominant interpretations, which derive from their ‘residual’ character and their associated neglect of the manner in which the roots of forced labour reach deeply into the organization of GPNs, the forms of exploitation which are integral to them, and the connections between exploitation and poverty. We set out an alternative, ‘relational’ perspective on the roots of forced labour in GPNs, based on the concept of ‘adverse incorporation’, and consider the implications of the insights generated by this perspective for contemporary governance frameworks.