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Published on: September 27, 2019
Globalization and working conditions in international supply chains
Juan Carlos Hiba1, Marina Jentsch2, Klaus J Zink2
1Applied Ergonomics Group, Institute of Technology, Design and Innovation (ITDI), Faculty of Engineering, National University of Rosario (UNR), Rosario, Argentina.
This paper examines working conditions in export processing zones (EPZs) and special economic zones (SEZs) within global supply chains. It highlights the International Labour Organization's (ILO) "decent work" guidelines and discusses the ongoing relevance and future challenges of these zones.
Area of Science:
- Socio-economics
- International Trade Law
- Labor Economics
Background:
- Globalization has long involved discussions on working conditions in international supply chains.
- Special Economic Zones (SEZs), particularly Export Processing Zones (EPZs), are common in developing countries to attract investment through incentives like tax holidays and relaxed labor laws.
- The International Labour Organization (ILO) developed
- decent work
- guidelines in response to these practices.
Purpose of the Study:
- To analyze the current state and future prospects of Special Economic Zones (SEZs) and Export Processing Zones (EPZs).
- To examine the effectiveness of International Labour Organization (ILO) guidelines on "decent work" in these zones.
- To assess the impact of trade agreements and growing criticism regarding ecological and labor conditions.
Main Methods:
- The paper synthesizes perspectives from multiple authors, including an ILO viewpoint.
- It analyzes trends and developments in SEZs/EPZs, using the textile industry as a case study.
- It reviews World Trade Organization (WTO) regulations and regional trade agreements concerning subsidies and special zone treatment.
Main Results:
- Despite ILO guidelines, challenges persist regarding labor protection and working conditions in SEZs/EPZs.
- Trade regulations are evolving to address subsidies and the special treatment of free trade zones.
- Increasing criticism focuses on the ecological and social impacts of production within these zones.
Conclusions:
- Understanding SEZs/EPZs is crucial, especially with upcoming legislation like the German and European Corporate Due Diligence Law.
- There is a need for continuous monitoring and adaptation of policies to ensure decent work and sustainability in global supply chains.
- The future of these zones depends on addressing environmental concerns and improving worker welfare.
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