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When Workplace Unionism in Global Value Chains Does Not Function Well: Exploring the Impediments

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Abstract

Improving working conditions at the bottom of global value chains has become a central issue in our global economy. In this battle, trade unionism has been presented as a way for workers to make their voices heard. Therefore, it is strongly promoted by most social standards. However, establishing a well-functioning trade union is not as obvious as it may seem. Using a comparative case study approach, we examine impediments to farm-level unionism in the cut flower industry in Ethiopia. For this purpose, we propose an integrated framework combining two lenses, namely a vertical one (governance and structure of global value chains) and a horizontal one (socio-economic context). We identify 10 impediments that point to three major dimensions contributing to unionisation. These three dimensions include awareness of and interest from workers, legitimacy of trade unions, and capacity of trade unions to act. Furthermore, our results suggest that private social standards may, in certain cases, be counterproductive for the efficient functioning of trade unions. Although we argue that there is no ‘quick fix’ solution to weak workplace unionism at the bottom of global value chains, we stress the importance of considering the dynamics of, and interactions between, the impediments when designing potential support measures that mitigate negative impacts.

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Authors and Affiliations

  1. Audencia Business School, 8 route de la joneliere, 44300, Nantes, France

    Céline Louche

  2. Department of Agricultural Economics, Ghent University, Coupure Links 653, 9000, Ghent, Belgium

    Lotte Staelens & Marijke D’Haese

Authors
  1. Céline Louche
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  2. Lotte Staelens
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Correspondence to Céline Louche.

Appendix: Overview of Working Conditions by MSP-SQ Compared to ILO and the Ethiopian Labour Law

Appendix: Overview of Working Conditions by MSP-SQ Compared to ILO and the Ethiopian Labour Law

 

ILO Conv.

Ethiopia Labour law

ETI

MPS-SQ

Wage

 Wages shall, at the least, meet national legal or industry (CBA) minimum standards, whichever is higher, and always be sufficient to meet basic needs and to provide some discretionary income

110

No

Yes

Yes

 Pay should be in cash

 

Noa

No

Yes

 Information on wages shall be available to workers in an understandable and detailed form

 

No

Yes

Yes

 Deductions are not to be used as disciplinary measure

 

Nob

Yes

Yes

Contract

 All employees must be issued with a written employment contract which is legally binding

 

Yes

Yes

Yes

 A person may be employed for a probation period which shall not exceed 45 consecutive days

 

Yes

No

No

 A contract of employment may be concluded for a definite period in the case of seasonal works

110, 170

Yes

Yes

Yes

Work hours and overtime

 Normal hours of work shall not exceed eight hours a day or 48 h a week

 

Yes

Yes

Yes

 Overtime shall be voluntary and not exceed 12 h per week; is compensated at a premium rate

 

Yes

Yes

Yes

Paid leave

 Workers must have at least 3 weeks of paid leave per year

 

Noc

No

Yes

Healthy work environment

 Companies shall comply with internationally recognised health and safety standards

170

No

No

Yes

 There is a coherent policy for Occupational Safety, Health, and Working Environment

155

Yes

No

Yes

 There should be regular monitoring of workers’ health and safety

 

Yes

No

Yes

 All employees have access to drinking water, clean toilets, suitable rooms with eating, and storage facilities

 

No

Yes

Yes

Work clothing

 The company must supply its employees, free of charge, with suitable clean working clothes that, preferably, are to be washed by the company in order to avoid contamination in the workers house

 

Yes

No

Yes

Child labour

 No workers under the age of 15 years shall be employed

182, 138

Nod

Noe

Yes

 Young persons under 18 shall not be employed at night or under hazardous and unhealthy conditions

184

Yes

Yes

Yes

Trade union

 The rights of all workers to form and join trade unions and bargain collectively shall be recognised

87, 98

Yes

Yes

Yes

 Workers’ representatives shall not be subject of discrimination and shall have access to all workplaces necessary to enable them to carry out their representation functions

135

No

Yes

Yes

Women committee

 The farm should encourage the election and implementation of a Workers Committee for Women, whose role is defined by gender-related issues

 

No

No

Yes

  1. Source Staelens (2016)
  2. aPayment in kind is possible as long as it does not exceed 30% of wage paid in cash
  3. bExcept where it is provided otherwise by law or collective agreement or work rules or in accordance with a court order or a written agreement of the worker. The amount in aggregate that may be deducted at any one time, from the worker’s wage shall in no case exceed one-third of his monthly wages
  4. cWorkers must have at least 2 weeks of paid leave per year
  5. dIt is prohibited to employ persons under 14 years of age
  6. eFollows the Ethiopian labour law

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Louche, C., Staelens, L. & D’Haese, M. When Workplace Unionism in Global Value Chains Does Not Function Well: Exploring the Impediments. J Bus Ethics 162, 379–398 (2020). https://doi.org/10.1007/s10551-018-3980-5

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