ABSTRACT
This chapter explores efforts to improve labour conditions and wages along global value chains in three key sectors: apparel and textiles; agriculture and agro-processing; and tourism. Asymmetrical power relations exist across these chains that are skewed in favour of lead firms (multi-national corporations). The priorities and demands of lead firms are thus pushed down the chain to less powerful actors, often shaping working conditions and wages at the bottom of the chain. All too often, these demands have been rooted in reducing costs and increasing profits. Accordingly, this chapter focuses on the strategies that govern working conditions of labour in global value chains, and the related impact(s) (e.g. in terms of the number and quality of employment opportunities). Governance of labour in a value chain context has predominantly been implemented through compliance-based strategies, in which firms within GVCs have to comply with standards dictated by the lead firm if they want to participate in a value chain. However, other actors have to some extent been able to influence these standards; this includes closer partnerships (and support) with supplier firms (mentor-driven strategies) often based in low-income countries; broader coalitions of actors especially from civil society (associative strategies e.g. Fairtrade, government regulations); or pressure from workers themselves (bottom-up strategies). While desired changes for labour when participating in a value chain include social upgrading (higher wages and better working conditions), the chapter illustrates in the governance of labour there are rarely ‘win-win’ strategies that promote all desired improvements. Change is often partial and accompanied by social downgrading (i.e. negative changes).
