Chapter 6 role as managers

1. CHAPTER 6
OUR ROLE AS MANAGERS IN
UNDERSTANDING AND FULFILLING THE
LABOUR PRINCIPLES OF THE UN GC
By Michael J. D. Roberts

2. ATTITUDES
 At the core of many political parties is a
professed alignment with organized labor or
business interests
 One’s stance toward the organized labor
movement is a major determinant of whether
you are seen as being on the so called “left”
or “right” of the political spectrum.

3. PRINCIPLES
 The labor principles of the UN GC are built
on the principles of the free-market economy
and democracy.
 A free and fair market for labor requires that
laborers and firms that employ them enjoy a
reasonably equitable amount of power in
negotiating a wage.

4. FREE-MARKET
A free-market economy is an “economic
system … in which most of the means of
production are privately owned, and production
is guided and income distributed largely
through the operation of markets”
(“Capitalism,” 2011). The markets are
controlled by free buyers and sellers.

5. COMMAND ECONOMY
A command economy is an “economic system
in which the means of production are publicly
owned and economic activity is controlled by a
central authority” (“Command Economy,”
2011). Central planners determine the
assortment of goods to be produced, allocate
raw materials, fix quotas for each enterprise,
and set prices. Most communist countries
have had command economies.

6. DEMOCRACY
Democracy is “a philosophy that insists on the
right and capacity of a people, acting either
directly or through representatives, to control their
institutions for their own purposes. Such a
philosophy places a high value on the equality of
individuals and would free people as far as
possible from restraints not self-imposed. It
insists that necessary restraint be imposed only by
the consent of the majority and that they conform
to the principles of equality” (Democracy, 2011).

7. PRINCIPLES
 A free market requires that the seller has a
reasonable opportunity to refuse to sell.
 Therefore, in a free market, workers must be
able to refuse work agreements without that
refusal having grave consequences for them
or their families, and they must have an
equitable amount of power to negotiate a fair
price for their labor.

8. HISTORY
 International labor standards are established
by the UN International Labor Organization
(ILO)
 The ILO codified four categories of basic
labor principles and rights that can help
guide employers.

9. HISTORY
Freedom of Association and the Right to Collective
Bargaining
 Freedom of Association and Protection of the Right to Organize
Convention (No. 87), 1948
 Right to Organize and Collective Bargaining Convention (No. 98), 1949
Forced Labor
 Forced Labor Convention (No. 29), 1930
 Abolition of Forced Labor (No. 105), 1957
Child Labor
 Minimum Age Convention (No. 138). 1973
 Worst Forms of Child Labor Convention ((No. 100), 1951
Discrimination in Respect of Employment and
Occupation
 Equal Remuneration Convention (No. 100), 1951

10. THE 4 PRINCIPLES OF THE UN GC
Principle 3: Business should uphold the
freedom of association and the effective
recognition of the right to collective
bargaining;
Principle 4: the elimination of all forms of
forced and compulsory labor;
Principle 5: the effective abolition of child
labor; and
Principle 6: the elimination of discrimination in
respect of employment and occupation.

11. THE 4 PRINCIPLES OF THE UN GC
Principle 3: Business should uphold the
freedom of association and the effective
recognition of the right to collective
bargaining;

12. COLLECTIVE BARGAINING
AFL-CIO (http://www.aflcio.org/Learn-About-Unions/Collective-Bargaining)
Collective bargaining is the process in which working
people, through their unions, negotiate contracts with their
employers to determine their terms of employment,
including pay, benefits, hours, leave, job health and safety
policies, ways to balance work and family and more.
Collective bargaining is a way to solve workplace
problems.
After the rights of public employees to collectively bargain
for a middle-class life came under attack in 2010,
working people in all kinds of jobs as well as students,
community supporters, faith leaders and others united to
defend this basic right.

13. PRINCIPLE 3
First, laborers and managers have the right to
form their own organizations or associations
and allow members to join those associations.
Second, the rules and constitutions of those
organizations and the elected representatives
must be democratically elected by the
members.
Third, these organizations shall not be arbitrarily
dissolved or influenced by agents of the state.
Fourth, these organization shall have the right to
associate and form alliances with other like-
minded domestic and international
organizations.

14. PRINCIPLE 3 ~ ROLES OF MANAGERS
1. Managers should not attempt to undermine the
negotiation power of the union by negotiating
with individual workers.
2. Firms must send representatives who are able
to make decisions and enter into agreements.
3. Managers must disclose a reasonable amount
of financial and other information to the union
to ensure equity in knowledge.
4. All parties must adhere to an honest policy of
bargaining in good faith.

15. PRINCIPLE 4 ~ ILO DEFINITION
Forced or compulsory labor is any work or
service that is extracted from any person under
the menace of any penalty, and for which that
person has not offered himself or herself
voluntarily. Providing wages or other
compensation to a worker does not necessarily
indicate that the labor is not forced or
compulsory. By right, labor should be freely
given and employees should be free to leave,
subject to previous notice of reasonable length.

16. THE 4 PRINCIPLES OF THE UN GC
Principle 4: the elimination of all forms of
forced and compulsory labor;

17. PRINCIPLE 4
Forced labor is a violation of human rights
ILO estimates that there are 12.3 million
people who are victims of forced labor at the
hands of private agents
The principle against forced labor is an
absolute standard and cannot be waived for
“less desirable” people or for “good cause.”

18. PRINCIPLE 4 ~ MANAGERS’ ROLE
Be proactive and root out forced labor
Be an advocate for those who have no voice
to defend themselves
Seek out solutions for victims of forced labor
Ensure that employment contracts of others
businesses one deals with have been
provided
Contribute to larger community efforts to
eliminate force labor and help workers to find
freely chosen work

19. THE 4 PRINCIPLES OF THE UN GC
Principle 5: the effective abolition of child
labor; and

20. PRINCIPLE 5
Since the industrial revolution in Britain in the
18th century, controlling and eliminating child
labor has been crucial for the development of
modern society.
ILO conventions (Minimum Age Convention,
No. 138 and the Worst Forms of Child Labor
Conventions, 182) define child labor by using
minimum age standards for entering the
workforce (ILO, 2001)

21. PRINCIPLE 5
Source: International Labor Office (2008).
Minimum Age for Admission to Employment or Work
Developed
Countries
Developing
Countries
Regular Work 15 years 14 years
*Hazardous Work 18 years 18 years
Light Work 13 years 12 years
*For a definition of “hazardous work” see Lawrence and Beamish (2013, p. 98).

22. PRINCIPLE 5
According to the ILO (2008), “child labour
damages a child’s physical, social, mental,
psychological and spiritual development. Child
labour deprives children of their childhood and
their dignity. They are deprived of an
education and may be separated from their
families” (p. 28)

23. PRINCIPLE 5
Roles of Responsible Managers
 Managers should begin by making sure that
they are not in violation of child labor laws in
their own firms and subcontractors.
 When removing children from the workplace,
managers should ensure that they are not
forced into a situation which may be even more
exploitative.
 When possible, children removed from the
workplace should be provided adequate
support.

24. THE 4 PRINCIPLES OF THE UN GC
Principle 6: the elimination of discrimination in
respect of employment and occupation.

25. DISCRIMINATE
1 a : to mark or perceive the distinguishing or peculiar features
of
b : distinguish, differentiate <discriminate hundreds of
colors>
2 : to distinguish by discerning or exposing differences;
especially : to distinguish from another like object
intransitive verb
1 a : to make a distinction <discriminate among historical
sources>
b : to use good judgment
2: to make a difference in treatment or favor on a basis other
than individual merit <discriminate in favor of your friends>
<discriminate against a certain nationality>

26. PRINCIPLE 6
 Fighting discrimination in the workplace is an
ongoing concern in the most developed
countries.
 People should be considered for
employment based on relevant
qualifications, experience, or characteristics
for the position for which they have applied.

27. PRINCIPLE 6
 Normally, candidates should not be
discriminated against based on race, color,
sex, religion, political opinion, nationality, or
social origin. More recently, some countries
have extended discrimination protection to
include sexual orientation, age, and
HIV/AIDS.

28. PRINCIPLE 6
Discrimination can show up in a number of ways,
including
 Recruitment
 Remuneration
 Hours of work and rest, paid holidays
 Maternity protection
 Security of tenure
 Job assignments
 Performance assessment and advancement
 Training opportunities
 Promotion prospects
 Occupational safety and health
 Termination of employment

29. PRINCIPLE 6
 Local laws in some countries make it difficult
for some people to access certain types of
employment.
 For the most part, however, discrimination
occurs informally through socially embedded
attitudes and beliefs.
 A policy of nondiscrimination means that
employers will consider potential employees
solely on their ability to carry out the duties
state in the job requirements.

30. PRINCIPLE 6
The Roles of Responsible Managers
 Eliminating discrimination in the workplace
takes commitment and time.
 Managers should institute company policies and
procedures that make qualifications, skills, and
experience the basis for recruitment,
placement, training, and advancement of staff
at all levels.
 Employees should be provided training on
nondiscrimination policies and practices,
including disability awareness.

31. PRINCIPLE 6
I have a dream that my four little children
will one day live in a nation where they
will not be judged by the color of their
skin, but by the content of their character.
~Martin Luther King, Jr.

32. PRINCIPLE 6
Equality may perhaps be a right, but no
power on earth can ever turn it into a fact.
~ Honore de Balzac
All the people like us are “we,” and
everyone else is “They”.
~Rudyard Kipling