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Sectoral Studies on Decent Work in Global Supply Chains

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Sectoral Studies on Decent Work in Global Supply Chains Sectoral Studies on Decent Work in Global Supply Chains Comparative Analysis of Opportunities and Challenges for Social and Economic Upgrading Sectoral Studies on Decent Work in Global Supply Chains Comparative Analysis of Opportunities and Challenges for Social and Economic Upgrading Funding for this research was provided by the Government of the Netherlands through a development cooperation project Sectoral Policies Department (SECTOR) INTERNATIONAL LABOUR OFFICE – GENEVA Copyright © International Labour Organization 2016 First published 2016 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation, application should be made to ILO Publications (Rights and Permissions), International Labour Office, CH-1211 Geneva 22, Switzerland, or by email: [email protected]. The International Labour Office welcomes such applications. Libraries, institutions and other users registered with reproduction rights organizations may make copies in accordance with the licences issued to them for this purpose. Visit www.ifrro.org to find the reproduction rights organization in your country. Sectoral studies on decent work in global supply chains: Comparative analysis of opportunities and challenges for social and economic upgrading / International Labour Office, Sectoral Policies Department (SECTOR). - Geneva: ILO, 2016. ISBN 978-92-2-131116-4 (print) ISBN 978-92-2-131117-1 (web pdf) decent work / promotion of employment / food industry / clothing industry / gold / entertainment industry / electronics industry 13.01.1 ILO Cataloguing in Publication Data The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International Labour Office of the opinions expressed in them. Reference to names of firms and commercial products and processes does not imply their endorsement by the International Labour Office, and any failure to mention a particular firm, commercial product or process is not a sign of disapproval. ILO publications and digital products can be obtained through major booksellers and digital distribution platforms, or ordered directly from [email protected]. For more information, visit our website: www.ilo.org/publns or contact [email protected]. Design and layout by the International Training Centre of the ILO, Turin – Italy Foreword The International Labour Organization (ILO) is the United Nations specialized agency devoted to advancing opportunities for women and men to obtain decent and productive work in conditions of freedom, equity, security and human dignity. The ILO Sectoral Policies Department (SECTOR) promotes decent work by supporting the Organization’s tripartite constituents to address social and labour issues in different economic sectors at the global, regional and national levels. The purpose of these studies on social and economic upgrading in global supply chains is to encourage the exchange of ideas and to provide supplementary inputs to the general discussion on Decent Work in Global Supply Chains scheduled to take place during the 2016 Session of the International Labour Conference. The individual global supply chain studies were prepared for the ILO by the following external consultants: Andrew Bibby (retail commerce with a focus on food and apparel); Hyejin Yoon (animation and visual effects); and Gale Raj-Reichert (electronics). Lucy Lu Reimers from SECTOR conducted the study on social and economic upgrading in gold supply chains. The following ILO colleagues provided valuable reviews of and technical contributions to these background studies: Sabine de Bruijn, Sara Elder, Martin Hahn, Yasuhiko Kamakura, Youbin Kang, Oliver Liang, Maria Beatriz Mello da Cunha, Anne Posthuma, David Seligson, and John Sendanyoye. May Hofman, an external consultant, proofread and edited the material. The responsibility for opinions expressed in these studies rests solely with their authors, and their publication does not constitute an endorsement by the International Labour Office of the opinions expressed in them. We are highly grateful to the Netherlands Ministry of Foreign Affairs for its funding support to this research project. Alette van Leur, Director, Sectoral Policies Department iii Contents A comparative analysis of economic and social upgrading in the animation, electronics, gold and retail sectors ......................................1 STUDY 1: Promoting Decent Work in Global Retail Supply Chains: Food and Apparel ................................................................................................7 Executive summary ..........................................................................................10 Abbreviations and acronyms ............................................................................11 1. The commerce sector and global supply chains ...............................................12 2. Global supply chains in commerce, and economic and social upgrading ..........15 3. Implications of retail commerce GSCs for decent work .....................................23 4. Commerce GSCs and decent work: Responses and initiatives .........................31 5. Towards good governance in commerce GSCs: Concluding remarks and recommendations ......................................................................................40 Bibliography .....................................................................................................45 STUDY 2: Promoting Decent Work in Global Supply Chains: The Gold Industry ..............................................................................................49 Executive summary ..........................................................................................51 Abbreviations and acronyms ............................................................................53 1. Introduction .....................................................................................................54 2. Economic and social upgrading and downgrading in the gold mining supply chain .....................................................................................................57 3. Governance for decent work in the gold supply chain .......................................69 4. Conclusion .......................................................................................................78 Bibliography ....................................................................................................81 v STUDY 3: Promoting Decent Work in Global Supply Chains: The Animation/VFX Industry .............................................................................89 Executive summary ..........................................................................................92 Abbreviations and acronyms ............................................................................93 1 Introduction and overview of the animation/VFX industry ..................................94 2. Economic and social upgrading and downgrading .........................................100 3. Governance in the animation/VFX global supply chain ....................................113 4. Conclusions ...................................................................................................117 Bibliography ...................................................................................................119 STUDY 4: Promoting Decent Work in Global Supply Chains: The Electronics Industry .................................................................................125 Executive summary ........................................................................................128 Abbreviations and acronyms ..........................................................................130 1. Introduction ....................................................................................................131 2. Violations of labour standards and poor labour conditions ..............................140 3. Economic and social upgrading and downgrading .........................................146 4. Governance for decent work in the electronics industry global supply chain ...152 5. Conclusion .....................................................................................................160 Bibliography ...................................................................................................164 vi A comparative analysis of economic and social upgrading in the animation, electronics, gold and retail sectors A comparative analysis of economic and social upgrading in the animation, electronics, gold and retail sectors Sectoral Policies Department (SECTOR) Introduction Many governments and employers’ and workers’ organizations want to know how engagement with global supply chains (GSCs) can help national and local economies and communities grow in a sustainable and inclusive manner, promote jobs and contribute to realizing decent work for all.
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