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Essay Question 2: The ability for workers across the supply chain to form collective protest and
action (i.e. exercise freedom of association) is shaped by uneven development processes Discuss
Introduction
Competitive global markets have led to fierce competition among multinational corporations and
producers. With market liberalisation and a strong adoption of neoliberal policies across the Global
South, barriers to access are no longer an issue, leading many producers to relocate production to
developing countries where they can receive cheap labour in return for mass production. This Race
to the Bottom approach has perpetuated uneven development across regions in the Global South
leaving workers in vulnerable and precarious situations.
The demand for a more flexible labour market has led to a host of issues within the global labour
force including, declining working conditions, wage inequality and a crippling union movement. This
has come at a time when workers have limited representation leaving these individuals more or less
defenceless in corporatisms pursuit of capital accumulation.
This paper will examine the leading factors that disempower workers to self-organize over
geographical space, taking strong notice of historical context and cultural norms. It will outline the
participation of key actors, including factory management, the State, Western corporations and NonGovernmental Organizations (NGO) that have directly or indirectly put the practice of Freedom of
Association under threat. It will seek to understand individuals perception of their role in capitalism
through the lens of labour geography, paying special attention to marginalized populations including
women and dependant rural workers.
Ultimately, this paper will argue that while uneven development has led to a series of significant
setbacks for workers in the Global South, there is also power to be harnessed in individuals
asserting agency over labour. For this to be possible there needs to be a major restructuring of the
current political economy. First, labour unions will need to re-legitimize their role and credibility
with both workers and factory owners. At present, workers are severely limited in accessing and
securing trustworthy knowledge of their rights. Too often, management delegitimizes any claims
produced by workers, using fear tactics to marginalize their voice (Padmanabhan 2012). Second,
labour unions and non-governmental organizations should advocate for new governance reform
measures that protect workers basic fundamental rights specifically, their right to organize. This
could be done by employing a similar structure to tripartite governance, however, labour should play
a much more active rather than passive role (Ost 2011). Third, and arguably the most difficult,
Western corporations need to adopt, both in practise and belief, rules that protect a workers right to
collective bargaining.
Rise and Consequences of Neoliberalism, Market Liberalisation and Globalisation
The rise of neoliberalism in the late 1980s led to the liberalisation of several international
economies leading to rapid globalisation over the last three decades. While neoliberal theory
suggests that market liberalisation leads to a levelling of the global economy, allowing developed
nations to capitalise on both foreign direct investment (FDI) and labour, we have seen in several
instances that it has actually reinforced inequality, widening the gap between middle and lowincome earners and those living in extreme poverty.
While there are several factors that foster this uneven divide, it is first important to understand the
value of labour in the context of capital accumulation in the global market. With the opening up of
the economy in many developing countries, and strong support of FDI, producers are able to
negotiate contracts with countries where labour is inexpensive, driving fierce competition among

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manufactures. In the demand for cheap production it is the worker that is left with the highest
degree of vulnerability. Padmanabhan (2011:972) insists that greater international mobility of
capital relative to labour puts workers from a given location at an immediate disadvantage, both in
terms of bargaining power with the owners of capital (whose threat to move gains greater credibility)
and with respect to the State. With capitalism at the forefront of production, producers will often
accommodate the growing demand for cheaply produced goods at the expense of both the worker
and the natural environment. This ultimately leads to the adoption of a flexible labour market
(Padmanabhan 2011:972). Padmanabhan (2011), outlines this concept, which development theorists
and economists have coined, Race to the Bottom, illustrating that labourers are treated as
collateral damage in the pursuit of capital accumulation. Rather than develop within the labour force,
workers are marginalized and suppressed in low-skilled positions receiving limited wages under
harsh, and often illegal working conditions (Brooks 2010). To further exacerbate this issue, it is noted
in De Neve (2011) that the most devastating impacts of globalisation on workers rights is the
absence of representation, both legal and political. As stated above, most of these workers suffer
from extreme poverty and cannot risk unemployment. Therefore, they are more likely to take
concessions regarding low-wages and employment terms, for example, casual employment
contracts versus permanent placement positions which often carry better wages and provide
stronger employment protection (Brooks 2010). Furthermore, they are operating in a workforce,
encouraged and sustained by their government, that increasingly undermines their basic rights for a
continued competitive advantage. To perpetuate this problem further, workers are often fed false
information or given limited opportunity, at the hands of factory owners, to gain information
pertaining to their fundamental labour rights. Ultimately, the rise of neoliberalism has brought a
shift in the social construction of labour relations. According to Brooks (2010), Global market
competition has paved the way for harsh and unequal organizational reforms leaving workers in an
almost impossible position, bearing the brunt of industrialized growth.
Transnational Corporations and Corporate Social Responsibility
There are several actors, both on the ground and overseas, that play a role in determining the fate of
workers where production has been outsourced. While ultimately, this paper argues that individual
workers, in concert with effective representation, need to take collective action and assert agency
over labour, it is important to first understand the framework and power structures within the global
labour context that can either promote or inhibit their success.
The first actor this paper will address is the role of transnational corporations and their
corresponding Corporate Social Responsibility (CSR) departments. Hale and Shaw (2001) outline that
the rise of social awareness in the late 90s among consumers in the Global North, who called for
more ethical trade standards after learning of reports of worker exploitation in the Global South,
which ultimately stemmed a social movement in favour of labour rights. These demands led to
several major corporations implementing basic labour laws or governance codes to help regulate
standards in production countries. These laws are typical of what western workers take for granted
including, minimum wage requirements, health and safety measures, the absence of child labour
and, most importantly, the right to collective action. In theory, these laws promote ethical guidelines
for governance however, they are not always enforced in practice. In De Neve (2008), the author
asserts that, while compliance with minimum wage legislation or health and safety requirements
can be monitored and audited in fairly systematic ways, freedom of association is a much more
complex matter that can neither be checked or enforced in a tick box manner nor be reduced to a
technical issue as is the case with health and safety (219). Ultimately, the role of multinational
corporations as an enforcer of ethical trade and labour laws is a somewhat self-fulfilling prophecy.

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While they continue to push for better labour regimes as a result of consumer pressure, we should
not forget that they also play a key role in shaping the gross inequality that exists today in the Global
Souths labour market. As discussed in previous sections, continued pressure for stronger profit
margins ultimately bares a stronger burden on the worker, requiring more labour at a reduced rate.
In an effort to meet these demands health and safety procedures are undermined and workers are
coerced into complying with illegal and harsh overtime rules often through fear of being dismissed if
they do not participate. This leads to fear in calling into questions basic rights. If workers are unable
to gain access to information regarding their rights this most certainly puts them at a disadvantage
in challenging the status quo. In contrast, Milberg (2011) describes the notion of equitable and
reciprocal dialogue to achieve agreed and fair governing social norms otherwise known as
intuitionalist theory. He suggests that to achieve fairness, workers compensation should be a result
of a two way dialogue that holds equal weight between actors (in this case labour and management)
to determine fair standards. If we apply this to corporate regulation of ethical trade in overseas
production, we will find many inconsistencies within the current framework of corporate oversight
and the practise of CSR.
Role of Unions and Non-Governmental Organizations, A Case Study from Kerala, India
As discussed in this paper, the rise of neoliberalism gave way to serious social and structural reform
to labour movements in the Global South. Following World War II, union membership was typically
strong and less stigmatized in certain developing nations, most specifically, India which this paper
will examine to draw context surrounding trade unions and organizing efficiency. According to De
Neve (2008) membership in Kerala, a small factory town, was high among workers and its role was
fairly straightforward extending benefits that included protection of basic rights as well as further
promotion of entitlements such as wage increase and bonus opportunities. It is not until the 1970s
that a shift began to occur and there was a decline in union participation. De Neve (2008) mentions
several factors including, the outsourcing and development to smaller factories. He goes further to
illustrate that this posed as a challenge for unions who were trying to reach large masses of workers
as they were now spread out among various small production units. In addition, De Neve (2008)
points out that there were several important shifts within the current cultural context that led to
membership decline. With former workers now owning smaller production factories there was a
realization that individuals could rise in the ranks, potentially opening their own shop, leading to
greater autonomy and participation in the workforce. Workers saw this as an opportunity and began
to forge close alliances with the newly emerged owners. De Neve (2008) goes further to explain that
factory managers capitalised on the relationships built with workers and used this as an opening to
delegitimise unions saying there was no need to organize as they understood the needs of workers
having risen in the ranks themselves. This is what ultimately kick started the rapid decline in union
authority and is one reason for the persistent lack of authority endured by trade unions in Kerala
today. Unfortunately, the above relationship is not unique to India. This is happening in factories
across the Global South. Emerging power dynamics, whether through perceived solidarity in the case
of Kerala, or in the case of fear and manipulation of job loss, has led workers to question whether it
is worth aligning with such organizations at the expense of their immediate livelihoods.
So, where does the role of NGOs come into play in strengthen the position of trade unions in an
effort to support vulnerable workers in the Global South? De Neve (2011) suggests that Stakeholder
collaboration is crucial in providing representation for marginalised workers. The dwindling power
of authority and influence held by labour unions has caused significant setbacks for labour authority
calling for outside actors to join alliances. However, several scholars, including Eade, Hale and
Kaufman et al (in De Neve, 2008: 235) suggest that there are weak linkages between local trade

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unions and international labour activists. De Neve (2008) further concludes that shortcomings are
often the result of insufficient understanding and awareness of the larger cultural context, including
the contentious relationship between the State and labour protection in the rise and
implementation of neoliberalist reform. This demonstrates the importance of cultural awareness in
the political landscape as it relates to workers and marginalized communities. Ruwanpara (2015)
takes this point one step further by calling attention to the context in which labour participation
adapts to rising capitalism in a geographical framework allowing us to better understand how
individuals perceive their role in capitalism through the lens of class structure and cultural norms.
This is an extremely important observation as Padmanabhan (2012) notes, capitalism tends to
diminish place or rather workers drive and meaningful participation in work in an effort to further
support space or the increase in capital accumulation.
Labour Geography, Marginalized Populations and Barriers to Access
Understanding how individuals view their position in the hierarchical structure of capitalism and
what this means for the context of their existence allows for greater insight into their motivations
for declining to participate and exercise their right for collective bargaining. According to Chari and
Gidwani (as quoted in Padmanabhan 2011: 974) the concept of Labour Geography seeks to
understand how workers at the local level actively participate in differentiated geographies of
capitalism, and to what degree their survival strategies articulate with the conditions of capital
accumulation. Regarding labour representation, this demonstrates that both cultural and historical
significance play a major role in an individuals motivation to organize and understand their
relationship, or worth rather, in the wider context of capitalism. It is this social context that helps
them to define and determine what role they will play in the hierarchical labour structure that seeks
only to achieve capital. While labour unions are presented with significant challenges in legitimising
their authority with this group, they endure an even greater challeng when trying to reach
vulnerable populations, including women and rural migrant workers.
In regard to rural migrant workers, De Neve (2008) concludes that labour unions are unable to
access this vulnerable population as their livelihood and survival is directly linked to their employers.
Often times these individuals show up with nothing but the clothes on their back. It is employers
that provide food, housing, and transportation, ultimately creating a situation where the worker
feels beholden and unable to stray. This dependency that has been catalysed by the employer for
the migrants survival acts as a significant barrier to trade unions seeking to boost membership and
representation of this population. Furthermore, the staggering low-wages provided to these
individuals suppresses any opportunity, forcing them into a despotic labour situation with zero
flexibility or opportunity.
In contrast, women are highly desirable to employ in a labour force that seeks to maximise profits.
Padmanabhan (2011), describes how those seeking capital accumulation have exploited women by
playing into specific cultural norms. In Kerala, women, while typically holding a higher degree of
education than men, are marginalized in having authority both at home and in the workforce.
Unions have tried for sometime to access this population however, there are significant barriers put
in place by factory owners to ensure they are shielded against such influence. De Neve (2008)
asserts that women are often driven to and from work and once they step foot on factory grounds
they are unable to leave until the work day is over and drivers can transport them home.
Conclusion

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This paper has demonstrated that over time, labour unions have increasingly lost legitimacy and
access to the very constituency they are meant to protect. This has led to increased marginalisation
of worker representation in the labour force, significantly impairing workers ability to participate in
collective protest. In an interconnected globalised economy, the race for capital accumulation will
only gain momentum and seek to continue to exploit workers, while suppressing their rights and
perpetuating uneven development. If workers are to improve their conditions and break free of the
constraints of neoliberal policies, they must exercise their right to collective bargaining. As was
stated in the introduction of this paper, there needs to be a major restructuring of the political
economy for workers to have the opportunity to safely demonstrate. While there is serious power to
be gained from collective bargaining on the front lines of labour relations in the developing world, it
is also important for external actors to provide a solid foundation for these workers to operate from.
This includes both labour unions and non-governmental organizations advocating for new
governance reform measures in conjunction with multinational corporations and the State.
Finally, with a spotlight on multinational corporations, which is arguably the single biggest threat to
perpetuating uneven development and a workers freedom to participate in collective bargaining,
there should be a stronger approach to ethical labour enforcement. This approach should go
beyond simple rules that are measurably enforced to adopting a framework that promotes a
workers ability to advocate for him or herself. Fostering a relationship with manufactures that
doesnt seek to manipulate them into coercive cheap labour for threat of abandonment is crucial.
Rather, CSR and factory management should work together to promote a fair workplace structure,
one that doesnt seek to exploit the labourer but rather provide an opportunity to achieve higher
technical capacity and wages should he or she desire. One could argue that the first step in that
process would require multinational corporations to abandon the practise of Race to the Bottom
and allow for labour to engage in, and have an equal voice in, two-way dialogue.
Word Count: 2838

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