Trade unions warn of globalisation pitfalls

As businesses and workers compete in a global market, local workers may struggle to keep jobs or maintain high wages, especially if companies can outsource work to cheaper labour markets.

Consequently, businesses may push for fewer labour regulations, which could weaken laws, reduce worker protections and lower wages to remain competitive.

For Zimbabwe, the government has lowered regulations to attract investments, which has led investors, especilly Chinese, to enter the local market using foreign personnel, abusing local workers’ rights and laws.

“Globalisation significantly impacts local labour laws, potentially leading to increased competition and pressure for deregulation,” Zimbabwe Congress of Trade Unions acting secretary-general Runesu Dzimiri told NewsDay Business.

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“This phenomenon, characterised by growing international trade and investment, creates a competitive landscape where businesses strive to minimise costs, including those related to labour.

“Such pressures may result in demands for the deregulation of labour laws, such as weakening minimum wage laws, reducing worker protection and undermining collective bargaining rights.”

He said companies could relocate production or services to countries with lower labour costs, leading to job losses and economic hardship in developing countries.

This comes as a number foreign companies are exiting Zimbabwe over competitiveness concerns, while local firms are looking to produce outside the country where policies are more conducive.

“Some argue that globalisation can prompt a ‘race to the bottom,’ where countries compete to attract investment by lowering labour standards, potentially leading to worker exploitation,” Dzimiri said.

A survey by British trade union UNISON last month revealed that foreign workers in Britain’s social care sector have paid thousands of pounds in fraudulent fees to get a job, live in overcrowded housing and earn less than the minimum wage.

This comes as the British government is facing a shortage of social care workers, jobs that its citizens are not taking up, resulting in fewer regulations for foreign workers looking to work in this sector.

“Developing countries, often grappling with economic constraints and limited resources, may struggle to enforce labour laws effectively, especially under pressure from global markets,” Dzimiri said.

“Corruption and a lack of transparency can further undermine the effectiveness of labour laws, allowing companies to evade compliance with regulations.”

He said addressing the challenges necessitated a multifaceted approach, including international cooperation, strengthening labour laws and enforcement mechanisms, promoting social

responsibility and raising public awareness.

Zimbabwe Federation of Trade Unions secretary-general Kennius Shamu said that while globalisation presented opportunities for economic growth, investment and cultural exchange, it also posed significant risks.

“One of the primary challenges posed by globalisation is the phenomenon of labour market flexibility,” Shamu said.

“While flexibility is often regarded as a means to enhance economic efficiency, it can also lead to precarious work arrangements, erosion of job security and diminished workers’ rights.”

He said that while labour migration helped in providing better-paying jobs, it caused brain drain.

Brain drain in Zimbabwe continues to deplete local skills base and undermine economic development.-newsda