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September 13, 2008 |
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Source: ILO,2007:18) The unprecedented growth of the informal economy worldwide has given birth to a global movement to redefine the concept “worker” away from very narrow notions associated with formality, regularity, and clear employer-employee relations which refer only to a shrinking male minority of working people in the world. A much more inclusive definition of worker is “anyone who lives by selling his or her capacity to work, either for wages or for other forms of income.” (Gallin, 2002: 1). Such a definition covers the majority of workers in the world who work in the informal economy, or all those who have unprotected and unregulated work. The informal economy has been growing in both North and South, due to the combined effects of liberalization, deregulation, and privatization which altogether drove out millions of workers from the formal economy ( 24 million, according to the ILO, in East Asia alone in the aftermath of the Asian financial crisis, in itself a consequence of the liberalization and deregulation of financial markets culminating in the successive domino-like devaluation of Asian currencies). At the same time, as exemplified by the production or value chains spearheaded by transnational corporations particularly in the garments industry , the informal economy serves as the bottom end of the production ladder, providing cheap and unprotected labor vulnerable to exploitation while management saves on costs by retaining a small core of permanent and regular workers.
Poverty, Gender and the Informal Economy Women are particularly involved in informal employment (averaging 65 percent of all women in non-agricultural employment in Asia ) , and when agriculture is added in, women’s share of informal employment goes way up, since women tend to be very much involved in agricultural work. This perhaps helps explain why two-thirds of the working poor in Asia are women. (ILO, 2006:25-26). The informal economy is highly gendered, serving as a catch basin of women who have been among the first to be displaced from formal work, especially in the garments industry, as globalization progressed. But women have also been the mainstay of the informal economy even before the onslaughts of globalization since informal work (e.g., homebased work) is compatible with their reproductive work (child care, domestic chores), and since their status as secondary or supplemental earners often deprive them of opportunities to find formal employment. In their particular case, class, gender, ethnicity, and other issues often intersect.
Source: Martha Chen, WIEGO (2008) As the pyramid above suggests, women are concentrated in the lower strata of unpaid family workers and industrial homeworkers where earnings are meager and where poverty-inducing risks such as illness and job insecurity are high. On the other hand, men are concentrated in the higher rungs as employers and as fairly “regular” informal workers with bigger remuneration and lower risk. From Informal Sector to Informal Economy The ranks of unprotected informal workers in the Philippines as well as in the whole of Asia are growing fast, even while those of regular formal workers are being depleted by the onslaughts of trade liberalization and the increasing flexibilization and contractualization of labor. Formal workers may go into self-employment when they lose their jobs. Or they may continue working in the same industry as contractual, casual, agency-hired, or subcontracted home workers under precarious and insecure conditions .In this sense, they provide cheap and unprotected labor vulnerable to exploitation at the bottom of the production ladder while firms save on costs by maintaining just a few regular, organizable workers. Figure 1. The Subcontracting Chain
In this example, a foreign principal based abroad(a large enterprise) could order from a Manila-based exporter (a medium enterprise), which in turn could subcontract to a province-based factory (a small enterprise). This factory could order from outlying barangays, where agents could tap the productive capacity of micro-enterprises and/or homebased workers (HBWs). As the chain goes downward, so do the wages and benefits of the workers who range from formal at the top to informal below. In the Philippines, figures based on the 2005 labor force survey show that informal workers now comprise 76.34 percent or 24.6 million of the country’s total employed, an increase of several percentage points from previous estimates. This rise in informal employment is accompanied by an alarming decrease in the ranks of formal workers.
The National Statistical and Coordination Board (NSCB), issued the following operational definition of the informal sector in 2002 after consultations with stakeholders: The informal sector thus officially recognized and defined includes the following subsectors, among others: the micro-entrepreneurs, homebased workers (including subcontracted, own-account workers and self-employed), vendors, small transport operators (of tricycles, pedicabs and bancas), petty retailers, barter traders, small-scale miners and quarry workers, non-corporate construction workers, entertainers, beauticians, laundry persons, hairdressers, small and landless farmers, artisanal fisherfolk, on-call domestic helpers, volunteer workers, barkers, unorganized cargo handlers, etc. In recent years, there has been a shift in terminology from “informal sector” to “informal economy,” the latter defined by the ILO as “all economic activities by workers and economic units that are – in law or in practice-not covered or insufficiently covered by formal arrangements.” The shift is underpinned by the realization that what used to be considered a transitory, marginal “informal sector” did not disappear with industrial development but has become a permanent, expanding provider of jobs, goods, and services for lower income groups not only in developing but also in industrialized economies. It is responsible for a significant portion of the Gross Domestic Product (GDP) and as the Philippine case suggests, accounts for a broad range of occupations from old resilient casual jobs in construction and subcontracted work done at home for the garments and handicraft industries , to new emerging forms such as temporary or part-time work and computer-based “telehomework” such as medical transcription. It also includes a wide variety of economic activity, from survival and livelihood projects to thriving micro-enterprises and stable businesses. The expanded definition of informal economy includes “the diversified set of economic activities, enterprises, and workers that are not regulated or protected by the state.” It is comprised of: 1) “self-employment in informal enterprises,” meaning “self-employed persons in small, unregistered, and unincorporated enterprises, including employers, own account workers, and unpaid contributing family workers;” and 2) “wage employment in informal jobs,” meaning “wage workers without legal protection for formal and informal firms, for contractors, for households, or with no fixed employer, including non-standard employees of informal enterprises, non-standard employees of formal enterprises, casual or day laborers, and industrial outworkers (also called homeworkers).” (Chen, 2008). Decline of Traditional Labor Movements A trade union is defined as “a continuing, permanent and democratic ORGANISATION created by the workers – or joined by them – to protect themselves at work, to improve their bargaining, to better the conditions of their lives and to provide a means of expressing their views on problems of society.” Unions cover only a tiny fraction of the total employed and not all of them have collective bargaining arrangements. They not only have a rather narrow base from which to operate. They are also at a disadvantage, given the large numbers of unemployed and underemployed in most of the region. Thus, when it comes to hiring and retaining workers, management can afford to be choosy. If it smells trouble brewing from workers who are trying to organize unions, it will not hesitate to find means to obstruct their efforts. Termination for various concocted reasons is a common recourse. “Blacklisting, intimidation and lay-offs are often used by employers to curtail union activism.” (CNV and FNV, n.d.: 33). Compounding the problem is the long history of trade union disunity in some countries, punctuated now and then by short‑lived efforts towards trade union unity. A process of de-unionization has accompanied changing employment patterns (flexibilization which is most visible as contractualization, as well as informalization and migration) in a globalizing economy. Workers are affected by labor-cost-cutting measures adopted by micro-businesses just to be able to keep up with increasing competition under globalization. The core of permanent workers is reduced to accommodate temporary and casual employees. The increasing use of cheap labor such as apprentices and migrants is continuing. Somehow this is tantamount to deunionization or controlling unions. Morover, subcontracting production and services outside formal workplaces (outsourcing) is accompanied by increased number of shifts per day, overtime, and use of piece rates. All of these actions have an overwhelming impact on workers, women and men, in both formal and informal employment. In the Philippines, a mere 9-10 percent of the employed are currently covered by unions, and only one-third of union members and one-fourth of union leaders are women. Worse, according to trade union leaders, only 230,000 of unionized workers are covered by collective bargaining agreements.(CBAs) The sharp decline in union membership in the Philippines is dramatized by the fact that from 1995-2004, the country’s unions lost two million members, down from 3.57 million to 1.57 million. And of this, only one third had CBAs. (Serrano, 2005). The decline has been attributed to “union avoidance by employers combined with weak enforcement of labor laws.” (ibid). Part of union avoidance is transfer of operations to economic zones, industrial parks, and other areas where unions are curtailed and/or discouraged. In the whole of ASEAN, union density, with the exception of Vietnam, has not gone beyond 20 percent of total employed. (Serrano, 2005). Globalization has placed many unions in crisis. Many unionized firms have closed down due to losses as well as labor unrest, eroding the membership base of labor federations. More sophisticated management techniques at coercion and persuasion have prevented the unionization of large masses of workers, including those in economic zones where women predominate. There are many other hindrances to getting women organized, among them the lack of emphasis on equality issues in trade unions, lack of family support, more vulnerability to employers’ retaliation, isolation and marginalization ( especially in the case of women in homebased work, for example), and legal restrictions in countries where ILO conventions are not observed. (CNV and FNV, ibid.) Despite persistent and emerging issues and obstacles, however, there are also some gains and advances. Women and Trade Unions In the mid-1990s, the proportion of women rank-and-file members ranged from between 10-20 percent in India and Bangladesh , between 20-30 percent in the Republic of Korea, Japan and Fiji, between 40-50 percent in the Philippines, Malaysia, Australia, Singapore, Hong Kong and New Zealand, between 50-60 percent in Sri Lanka and Thailand, to between 60-70 percent in Mongolia. (ILO,1999:76). Exclusively male unions are fast disappearing. However, there are many fields of work where the predominantly female force remains unorganized, particularly export processing zones, agriculture, the informal sector, and other precarious areas of employment such as part-time, casual, or homebased work. Trade union centers and movements are paying more attention to these non-traditional fields for organizing, conscious that women workers comprise a fertile source of membership and revitalization. (CNV and FNV, nd).However, there is a lack of women leaders and organizers to undertake such a task. Conscious of the limitations of traditionally male-dominated trade union structures, some groups have attempted organizing women into separate organizations in order to give them the freedom and the space to develop without having to deal with male-centered hierarchies and practices. At the leadership level of most trade unions, women have always been under-represented. They usually comprise a small minority of union boards and general councils. For example, in 1996, the proportion of women executive board members ranged from three in Sri Lanka to 25 in Australia; that of women General Council members, from two in Japan to 50 in Sri Lanka. (ILO,1999:76, citing ICFTU APRO surveys and estimates). Despite the increasing number of women unionists, male dominance in union leadership has prevailed. This is true even in service industries where women abound, and in sectors where females outnumber men as union members (such as wholesale and retail trade as well financing, insurance, real estate and business services). It is also the case in individual manufacturing firms where majority of the work force are women (such as electronics and garments). Thus, while male union Presidents lord it over union organizations, women play minor roles as members of the Board of Directors, as second in command or as treasurers or secretaries--traditional spheres of women even in business and other organizations. This is true not only at the level of the local union but also at the level of the federation Why are women not more assertive in the trade unions? Why do they not want to get involved in union activities? The following reasons were cited by the South Asians in the joint UNI-APRO Workshop for Women Activists (1999): women have “more responsibility in the family” and therefore lack time for union work; society has a “negative attitude” to such involvement, given the traditional roles and stereotypes which inhibit women from entering what is perceived to be a male domain; unions have a “negative reputation,” being associated with aggressive and confrontational activities such as strikes and pickets; and they “do not recruit or represent women...” Aside from these, Filipino women unionists cite women workers’ low self esteem, their belief that unionism is a male turf, and their being repelled by exclusively male methods and practices such as drinking alcohol while conducting trade union meetings, dialogues, and negotiations (Angsioco,1994). International trade union federations have done a lot to put gender equality on the agenda of their affiliates. Although there is increasing recognition among trade unions regarding the need to mainstream gender equality in the work place, in policy-making, in collective bargaining and other forms of union work, this usually just remains on paper and is seldom put into practice. (ILO,1999: 69). Setting up Women’s Committees is a step forward for many unions, but more needs to be done in terms of staffing, resource allocation and other support mechanisms to prevent them from being marginalized as mere tokens of women’s participation. In this regard, there is need to recognize and address “negative male attitudes and unwillingness of men to give up power.” (ICFTU Trade Unions and Working Women Manual, Appendix, 4) Gender-sensitivity and awareness raising activities tend to involve only women . They should also target the men within trade unions to give gender equality the necessary push towards realization in practice.The good news is that initiatives have been taken toward this end, notably the 1995 campaign conducted in six countries (Fiji, India, Malaysia, Philippines, Western Samoa and Sri Lanka) by the Equality Department of the ICFTU and coordinated by the ICFTU-APRO. Among others, this campaign resulted in the formation of Gender Perspective Teams (GPTs) composed of women and men in each country. There have also been attempts, notably by the FNV and the CNV, to put more emphasis on organizing women workers in especially difficult circumstances, including those in export processing zones and in informal work. In Asia, the more successful efforts are among the ranks of homebased workers. Some of them, as in the famous SEWA example in India, eventually became recognized as trade unions in their own right. Organizing Women Informal Workers THE EXAMPLE OF SEWA. The growing significance of informal work, and the myriad problems of informal workers, have led to the emergence of their organizations in the last few decades. Organizing among homebased workers (HBWs) in Asia for example has had a long herstory/history, beginning with the founding of the Self-Employed Women’s Association (SEWA) in India and its multi-pronged approach to women’s empowerment which include mass mobilization and negotiation along industry lines (particularly in the case of the bidi workers), formation of production and service cooperatives, establishment of a bank where even illiterate women can borrow, provision of insurance and other social protection schemes, engagement in trade facilitation, international advocacy and networking. SEWA’s main strategies therefore, are: a) increasing employment opportunities for women and thus increasing women's bargaining power; b) developing women's assets; c) capacity-building and leadership development of rural women; d) providing food and social security; and e) becoming self-reliant, economically. SEWA had a rocky relationship with the trade union (Textile Labour Association) of which it was a part. This progressed to a complete break in the early 1980s over issues of caste, class, and gender. SEWA resolved to do things its own way, combining trade unionism and cooperativism. It is now the largest primary union in India (with 700,000 members in 1974 and about a million now), and has been recognized by the largest conglomeration of international confederations of trade unions (ITUC). (Bhatt, 2006:13-16). PHILIPPINES PATAMABA’s expanding influence among the informal workers has been manifested in orientation activities for new members and organizing in other subsectors. The latest count (2007) of PATAMABA membership totals to 16,295 in 276 chapters covering 34 provinces nationwide. Of these numbers, 2567 are in subcontracted work, 12,069 are self-employed and 1,524 are combinations of both. The subcontracted workers garments, handicraft, papier mache, bags, Christmas balls, sawali, fashion accessories, embroidery. The self employed members are into livestock, agri-based products, garments, bags, slippers, fashion accessories, novelty items, food, woodcraft, and weaving. PATAMABA’s networking now spans a wide range different sectors and groups - from informal ones like street and market vendors to official policy-makers and formal academic institutions. PATAMABA, with the support of Homenet Southeast Asia, spearheaded the successful launching of Homenet Philippines in May 2006, a broad coalition of 23 organizations comprised of homebased workers’ groups and NGOs of various persuasions with a total membership reach of about 60,000. The formal launching of Homenet Philippines’ advocacy agenda of Homenet Philippines helped boost the advocacy campaign on ILO Convention 177 on Home Work and the Magna Carta for Workers in the Informal Economy. PATAMABA’s main strategies are: 1) participation in governance and institution building through organizing, coalition building, representation in national, local and international bodies and institutionalizing programs and projects for the informal sector; 2) human development services such as skills training and skills upgrading (production related), capability-building, training on gender awareness, health and reproductive rights, computer literacy and connectivity, workers’ and working children’s rights under the law, participatory research, fieldwork data collection, facilitation and linkages; 3) socio-economic assistance as exemplified by its credit facility program and microfinance, enterprise development, and marketing of homebased products through a showroom and participation in trade fairs and bazaars; 4) networking, advocacy and para-legal work for fair trade, Magna Carta for Informal workers, anti-poverty strategies, and other policy changes, through building partnership with GOand academe.s, NGOs. LGUs, POs, international agencies, trade unions, cooperatives.
THAILAND Homenet Thailand has had high visibility in advocating for occupational safety and health, and for the approval of the 30 baht health insurance scheme for all. Among the national Homenets, Homenet Thailand has had the most success in focusing on OSH issues through its OSH project for homebased and other informal workers conducted in cooperation with the Ministry of Labor and the Ministry of Health. It has also been working closely with formal sector workers’ groups in advocating for occupational safety and health, and favors strengthening these ties through more joint activities to forge greater solidarity among all workers. Concluding Remarks The previous discussions show that in the context of globalization, informal work is expanding in the ASEAN region, and that it is often linked to poverty. Women are very much into informal employment, and therefore poverty in the region usually has a woman’s face. The trade union movement is in decline, and has not yet confronted the challenge of organizing informal workers, and bringing the women in not only as members but also as leaders. What has happened is autonomous organizing by informal women workers’ movements, notably among homebased workers, but these efforts are not necessarily antagonistic to existing trade unions and in fact have sought convergence with them especially in terms of policy advocacy. There is hope that both the formal/informal and the gender divide in the labor movement in ASEAN can in the long run be bridged, with the support of enlightened global union federations and more innovative national federations like the FNV which have been supportive of informal women workers’ movements in the region. The commonality in both trade union and informal women workers’ movements is membership-based organizing rooted in democratic principles whereby leaders are made accountable to the rank-and-file. (Chen et al, 2007).
Informal employment now comprise 71 percent of non-agricultural employment in Asia. (WIEGO website – http://www.wiego.org/stat_picture Table IV. Comparative Sizes of Formal and Informal Sectors 1999 and 2OO5, in National Labor Force Survey of Business and Industry, 2OO5. Resolution concerning decent work and the informal economy, document of the 9Oth session of the General Conference of the International Labour Organization , 2002, Geneva. Proceedings of the Labor Agenda meeting sponsored by FES Manila, Nov. 7, 2OO7.
REFERENCES Bhatt, Ela (2OO6): We are Poor but we are so Many. London: Oxford University Press. Chen, Martha (2008): Lecture on “Informality, Poverty and Gender: Advocacy and Organizing,” delivered during the Roundtable Discussion organized by the College of Social Work and Community Development, University of the Philippines, March 27. Gallin, Dan (2002): “Organising in the Informal Economy.” http://www. wiego.org/papers.lab_ed.pdf. Pineda Ofreneo, Rosalinda. (2OOO): Women in Asia and the Pacific: A Trade Union Perspective.” Paper originally prepared as a background report for the first UNI APRO Regional Women’s Conference, September 2OOO, Kota Kinabalu, Sabah. Pineda Ofreneo, Rosalinda (2OO7): “Organizing and Empowering Homebased Workers in Asia Experiences, Lessons, and Challenges,” presented during the Asia Monitor Resource Center 3Oth Anniversary Conference on Labour Resurgence Under Globalization , B.P. International Hongkong, 27-28 August. A power point version of this was presented during the gender and culture session which formed part of the Asian Forum for Solidarity Economy 17-20 October, UP Bahay Alumni. Pineda Ofreneo, Rosalinda (2OO7): “Informal Work and Fair Trade in an Integrating ASEAN,” presented during the Sixth ASEAN People’s Assembly held at the EDSA Shangrila Hotel in Manila on 24-35 October . Pineda Ofreneo, Rosalinda (2OO7): “Women Garment Workers in Selected Philippine Economic Zones: Towards an Organizing and Advocacy Agenda in the Context of Trade Liberalization.,”research report presented during the workshop sponsored by the Committee on Asian Women, 25 November, Bangkok. To be published in 2OO8 Serrano, Melisa R. “Addressing Union Decline in the ASEAN in the Era of Globalization: Some Strategies and Initiatives.” Part of a paper entitled “Is a Social Charter Possible in the ASEAN? Exploring Union Strategies Toward a Social Charter Project” presented in the International Conference on “The effects of Globalisation on National Economic Policies and Trade Union Strategies” on May 5-6, 2OO5, Berlin.
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