
Garment factory, Sri Lanka. M.Crozet for the ILO/Flickr. (CC 2.0 by-nc-nd)
Multinational enterprises (MNEs) constantly look to cut costs to maximise profits, putting considerable pressure on workers’ wages and working conditions. Cost pressures from global firms mean that employment within global supply chains (GSCs) is too often precarious and/or informal, involving frequent human rights violations. Though some companies have made public commitments to ensure the payment of a living wage and investment in safe and secure workplaces, this is by no means the norm and even then such promises are not always kept. Corporate and multi-stakeholder ‘corporate social responsibility’ schemes have had little if any positive impact on guaranteeing workers’ rights, and instead have deferred addressing underlying structural issues.
An ILO convention on decent work in global supply chains can and should form the backbone of any new approach to labour regulation and enforcement.