Diverging Views on Core Labor Standards

Essay by candicerayCollege, UndergraduateA-, August 2014

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Diverging Views on Core Labor Standards

Proponents of the inclusion of core labor standards, such as Miller state local labor laws are not duly enforced, thus an organization with muscle can enforce such standards. The WTO does have enforcement measures; if it did include core labor standards it could enforce them by allowing countries to raise barriers to trade as punishment. Furthermore, it also has the special feature of the DSM. So, if a country did violate a core labor standard, a country could make a complaint. Nonetheless, Miller also makes direct counterarguments to mainstream economists' assertions. First, Miller does not believe sweatshops were a stepping stone for economic development in rich countries like the US and England. He argues sweatshops are not necessary for economic growth; they do not cause economic productivity. In fact, it was a combination of social and political movements that removed sweatshops (Miller, 11). He admits though the effect of ILO strengthening its core labor standards is somewhat inconclusive in relation to economic development (9).

For example, the OECD agrees that core labor standards have the fortitude to increase economic growth, but experts like Jai Mah say such rules as the right to nondiscrimination hurt those countries that are export-oriented. Nonetheless, Miller believes there needs to be international labor standards on safety, health, forced labor, and the freedom of assembly (9). Secondly, he disagrees with the claim that better working conditions will negatively affect workers in developing countries. Miller referred to data (Pollin et al) which concluded the lack of tangible evidence that once worker conditions improved, the number of jobs decreased (10). Their study found that when a garment factory in Mexico increased its wages, it added only 50 percent to the production cost of a 32 dollar men's shirt. However, American consumers who...