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A proposal for transnational supply chain labour regulation

Supply chains without international cooperation will never work, but an international average minimum wage backed up by enforcement mechanisms and the correct incentives could help produce a just global economy.

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Siân for London/Flickr. (CC 2.0 by-nc-nd)

The need for a new approach to transnational labour regulation

Inequality is now at an all-time high and, relatedly, there is a large global workforce who toil in conditions unregulated by labour laws and without a living wage. Conventional labour laws fail to protect these workers because they do not have recognisable employers or because they are poorly enforced. Often, supply chain dynamics mean that holding the direct employer responsible for the conditions of the worker is meaningless, because a powerful player higher in the supply chain makes it impossible for the direct employer to provide a living wage or lawful conditions.

It is time to address these dynamics with new regulatory measures, and the International Labour Organisation (ILO) had a unique opportunity to do so at the 2016 International Labour Conference (ILC) on Supply Chains. Here, I propose a novel approach that the ILO could adopt as it moves forward. Because of the nature of global supply chain dynamics, anything less than international coordination between countries to reduce inequality and to promote a living wage will fail the millions or poor workers who survive on too little.