UK employees undoubtedly benefit from the cheap goods and greater prosperity brought by globalisation, but are more vulnerable than their European colleagues to the downsides of globalisation. A TUC report out today (Thursday) calls on the Government to do more to support workers whose livelihoods are put at risk by growing global trade.
In a submission to the Government’s 2007 Comprehensive Spending Review, the TUC says that Government action must help ensure that the benefits of globalisation are spread more evenly if they are to maintain support for open markets. Priorities for funding should include support for workers vulnerable to the negative effects of globalisation and for British companies who need to compete more on the global market to safeguard quality UK jobs.
The TUC report says that UK employees are more vulnerable than their European colleagues for three main reasons:
More workers in the UK are at risk from international trade, compared to our EU neighbours, because Britain buys more than it sells on the global market. The UK is home to more multi-national companies who can easily relocate operations overseas. The typical UK business strategy of keeping down costs, such as wages and investment in skills and training, risks work moving to countries where it can be done more cheaply.
The TUC submission to the Comprehensive Spending Review 2007 says that deregulation and tax cuts are red herrings. Instead the Government should:
Help employees who lose out by training and supporting the unskilled and older workers who are likely to find it harder to find another job if they lose one and consider making companies who move jobs abroad to take out insurance paying 70 per cent of their redundant workers’ fall in earnings for the next two years. Help UK companies better capitalise on global export opportunities, particularly in emerging economies such as China and India, by supporting the development of strategic manufacturing and service sectors, in particular, environmental technology.
TUC General Secretary Brendan Barber, said:
Globalisation has made a real difference to the quality of life of working people in the UK and across the world but there are victims as well as winners. Too many British workers are losing their jobs when companies move abroad or fail to compete. Cheap DVD players and clothes are scant compensation if you are being downgraded to poor quality, insecure, low-paid work.
Of course we can’t say ’stop the world I want to get off’ and turn back the tide of globalisation by erecting barriers to try and protect industries and jobs. But that does not mean we are powerless in shaping its impact. The Government must provide support to older and unskilled individuals to help them adapt to the opening up of world markets and ensure that all UK workers benefit.
But the UK also has a responsibility, mainly through international trade agreements, to make sure that workers in developing countries have access to decent work.
UK companies and workers more vulnerable to globalisation downsides than rest of Europe
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