International Labour Organization

ILO WASHINGTON DIGEST

Update from the ILO Office in Washington, DC
May - June 2016

ILO Washington Happenings

ILOWAS Director Highlights Importance of Strategic Partnerships in Tackling Child Labour in Supply Chains

During events for the World Day against Child Labour, Nancy Donaldson joined a panel hosted by Ambassador Björn Lyrval at the House of Sweden in Washington D.C. The event was sponsored by the Swedish-American Chamber of Commerce, Save the Children, and Akin Gump Strauss Hauer & Feld LLP. The panel discussed ways that many stakeholders are collaborating to tackle this issue. Strategies include stronger labour provisions in trade agreements like the TPP; monitoring child labour at the farm and first tier levels in supply chains (see online tool); and also focused on awareness raising, where “naming and shaming” strategies to get the consumer to care about not buying products that have involved child labour have proven to be very effective (see Sweat and Toil app).

ILOWAS Director Presented in a Panel Discussion Surrounding Trade and Inclusive Growth

On June 17 Nancy Donaldson spoke on a panel discussion on Trade and Inclusive Growth at the Washington International Trade Association as part of a larger event with OECD Secretary-General Angel Gurría. Other panelists included Rob Mulligan, Senior Vice President for Policy and Government Affairs, U.S. Council for International Business and Ken Ash, Director of Trade & Agriculture, OECD. The panel discussed the importance of addressing other factors into trade policy to align it better to inclusive growth outcomes. There must be a greater focus on supporting job transitions and updating the skills of those workers who are not benefiting from open trade, and the general public must be better informed to understand the benefits of trade, Donaldson stressed. This should be done by working together on common interests through strategic partnerships and includes understanding how to continue in the direction laid out by the OECD Secretary General, especially surrounding the future of work (watch the full event here).

ILOWAS Director participates in AFL-CIO Conference on Jobs, Governance & Scurity in U.S. Trade Policy

On June 28 prominent speakers, including U.S. Senator Sherrod Brown (D-OH) and AFL-CIO President Richard Trumka examined and debated the impact of the Trans-Pacific Partnership (TPP), the U.S.-EU Trans-Atlantic Trade and Investment Partnership (TTIP) and the Trade in Services Agreement (TISA) on jobs, wages, national security and democratic accountability. With both U.S. presidential candidates on the record opposing the TPP, supporting and opposing arguments are under intense scrutiny. The conference addressed key concerns such as the evidence about the impact of trade agreements on jobs, wages, consumer demand, monopoly power, income inequality and worker bargaining power; the risks of treating domestic policy choices (i.e. consumer and environmental protections and the provision of public services) as trade barriers to be overcome; the adequacy of Trade Adjustment Assistance to compensate those harmed by U.S. trade policy; the impact of private justice for international investors on fundamental human rights, particularly for vulnerable populations; and the role of trade deals in addressing climate change and inclusive, sustainable development; among others. Watch the full conference here.

Annual Child Labour Cocoa Coordinating Group Stresses Collective Action and Alignment of Indicators to Eliminate Child Labour

On June 22-23, Labour Ministers and Ambassadors from Ghana and Cote D’Ivoire, as well as the office of the First Lady of Cote D’Ivoire, joined the Deputy Secretary of Labor and other officials from USDOL, NGOs, and private sector chocolate companies to discuss progress made in eliminating child labour in the cocoa sector. Regina Monticone, Senior Advisor, ILOWAS coordinated and led the ILO inputs to the discussions. U.S. Congressman Eliot Engel (D-NY), architect of the Harkin-Engel Protocol of 2001, highlighted that child labour problems are connected to bigger foreign policy issues, with parliamentarians being “agents of social change.” Sessions focused on the importance of aligning key performance indicators to measure real progress. Participants also worked to develop a list of best practices beyond strengthening and enforcing labour legislation, including interventions like ensuring more children have birth certificates, investing in and training younger generations of cocoa farmers, raising awareness among parents, and training youth on alternative sources of employment.

ILOWAS Deputy Director represents ILO at the 46th General Assembly of the Organization of American States (OAS)

On June 13-15 Erick J. Zeballos participated in the ordinary sessions of the 46th General Assembly of OAS held in Santo Domingo. The event served as an opportunity for member states to align the development priorities of the region to the newly adopted 2030 SDG Agenda.The Declaration on Institutional Strengthening for Sustainable Development in the Americas re-affirms the commitment to implement the 2030 Agenda in the Americas and to attain the Goals and Targets, which are integrated and indivisible in nature, by developing efficient, transparent and credible public institutions as the main condition for the effective implementation of the SDGs. The Declaration also acknowledges the central place of the UN system and its agencies for supporting member states in the implementation (see ‘Documents Adopted GA-2016’ from link provided to read this Declaration).

ILOWAS Hosts SAWIP Students for Discussion on Decent Work

On June 24 ILOWAS welcomed 20 South African students participating in the South Africa-Washington International Program which aims to develop, support, and inspire young generations of South African leaders. The group was briefed about ILO’s history, mission, and global projects, and engaged in rich dialogue regarding wages, human rights, trade, entrepreneurship, and decent work in supply chains as the students wrestled through their own experiences and plans for the future of their region.

US Labour Policy Developments

Illinois Set to Extend Basic Labour Protections to Domestic Workers

The Illinois Domestic Worker Bill of Rights passed in the Senate with bi-partisan support on May 11, moving the state closer to comprehensive protection for thousands of caregivers and house cleaners. If the bill is approved, Illinois will become the 6th state to pass a Domestic Worker Bill of Rights, which establishes provisions for overtime, wages, days off, and other protections.

U.S. Blocking Imports Produced Using Forced Labour at the Border

The Customs and Border Protection (CBP) is stepping up its fight on forced labour imports, following the Trade Facilitation and Enforcement Act which passed earlier this year. The Act amended a 1930 U.S. tariff law to close a loophole that had effectively swallowed the rule. The loophole had “suspended” the ban if there were a “consumptive demand” for the good, even if it was made with slave labour. With the loophole eliminated, the CBP has important new enforcement responsibilities. CBP has created a Trade Enforcement Task Force, assigned to research and investigate forced labour cases. The CBP will self-initiate investigations in order to accelerate the process and has added 24 employees to its task force with others to come. To read the CBP’s position on forced labour, click here.

Labour Organizations Unite to Pressure Colombia to Enact Labour Reforms

The AFL-CIO and five Colombian labour organizations submitted a formal petition on May 16 to the U.S. Office of Trade and Labor Affairs alleging that the government of Colombia failed to comply with multiple obligations under Chapter 17 of the U.S.-Colombia Trade Promotion Agreement (TPA). The petition sets the Dispute process in motion.

President Obama Extends Overtime Protections to Millions More Americans

At the directive of President Obama, the Department of Labor updated existing regulations on overtime pay on May 19 that extended overtime pay to 4.2 million additional American workers who are currently ineligible for such protections under federal law. This rule raises the threshold for overtime protections from salaries of $23,360 per year to $47,476 per year, requiring employers to pay workers under this threshold time-and-a-half for any hours over 40 in a work week. It is expected that over the next 10 years, this will boost wages by $12 billion and will directly benefit 12.5 million American workers.

During Trip to Vietnam, President Obama States Human Trafficking Will Be Reduced through the Trans-Pacific Partnership Agreement (TPP)

President Obama gave a town-hall meeting to young entrepreneurs on May 25 and specifically addressed the issue of human trafficking within the context of the TPP. He pointed out that the TPP includes provisions that are designed to reduce human trafficking, holding TPP members accountable to design systems that prevent this issue.

Labour Issues Discussed at the United State of Women Summit

On June 14, the White House Council on Women and Girls convened individuals from various sectors in Washington, D.C. to discuss critical gender equality issues. President Obama called for equal pay for equal work, paid sick leave and parental leave, more affordable healthcare and childcare, and a higher minimum wage. As part of the Summit, USDOL announced important steps towards expanding opportunity for women through updated regulations surrounding sex discrimination, new grants to increase access to child care, and other grants to support women in high-skill jobs.

Washington D.C. Council Votes for Final Approval of Raising Minimum Wage to $15

The D.C. Council voted unanimously on June 21 to approve a bill that will increase the city’s hourly minimum wage from $10.50 to $15. This will take place gradually through an annual increase of around $0.70 until it reaches $15 in 2020. In addition, the wage of tipped workers will rise from $2.77 an hour to $5.

U.S. Supreme Court Deadlocks over Progress on President Obama’s Immigration Plan

In a 4 to 4 split decision on June 23, the Court effectively affirmed the lower court’s ruling that preserves the federal district judge’s preliminary injunction against the program issued in February 2015. The Deferred Action for Parents of Americans and Lawful Permanent Residents program (DAPA), created by Obama in November 2014, was initiated to provide protection from deportation for some undocumented immigrants for a 3-year period during which they can seek legal employment.

Workers Displaced by Trade Find Better Jobs through Job Training Program

The Trade Adjustment Assistance Reauthorization Act (TAA), signed into law on June 29, 2015, has enabled 74% of workers displaced by foreign trade who participated in this program to find and keep jobs 3 months after concluding it, according to USDOL’s recently released Annual Report.

Other Policy Developments in Washington

World Bank Appoints New Director to Lead on Social Protection and Labour

The World Bank recently announced the appointment of Michal Rutkowski, former Director for Multilateral Organizations, as the Senior Director for Social Protection, Labour and Jobs Global Practice.

Review and Update of the World Bank Safeguard Policies

The World Bank announced that a third draft of the new Environmental and Social Safeguards is now in the hands of its Executive Directors, who will now have the opportunity to deliberate. This document will be publicly disclosed before the formal Board meeting on July 20th. To learn more about the review, click here.

Suggested Readings

USITC Issues Report Projecting TPP’s Impact on U.S. Economy

A report released May 18 by the U.S. International Trade Commission finds that by the year 2032, the TPP will increase U.S. GDP by 0.15%, increase U.S. employment by 0.07%, and increase U.S. exports and imports by 1% and 1.1%, respectively. The agriculture and services sector will be among those expected to benefit the most from the trade deal.

World Bank: High and Dry: Climate Change, Water, and the Economy

This report finds that water insecurity caused in part by climate change could hurt growth, induce migration, and increase the risk of conflict. However, if the appropriate water management policies are adopted, some regions could see economic growth over the next few decades.

ECLAC: Horizons 2030: Equality at the centre of sustainable development

IMF’s Finance & Development, June 2016 Issue

An article titled 'Neoliberalism: Oversold?' in this quarterly magazine acknowledges benefits of trade liberalization, while calling attention to the increased inequality that has arisen partially as a result of the neoliberalism agenda pushed since the 1980’s. Read the full June issue here.

Brookings: Skills for a Changing World

The Brookings Institution released a paper examining the redefinition of skills needed to succeed in a world experiencing rapid technological growth, greater interconnectedness, and increasing kinds of employment. Education systems must understand these developments in order to adjust to the changing needs of future employment.

Brookings: Employment and disconnection among teens and young adults: the role of place, race, and education

This analysis examines employment and unemployment rates of youth and prime-age workers. The report finds that approximately 7.6% of youth (aged 16-24) are “disconnected” – not in work or school. The report also finds disparities in employment by education level and race, with blacks and workers without university degrees having lower levels of employment, on average.

Brookings: Who is Poor in the United States?

This new economic analysis uses the Current Population Survey Annual Social and Economic Supplement (CPS ASEC), the source of official poverty statistics, to describe characteristics of the poor and working-poor in the U.S. The report finds that 25% of individuals living below the poverty line in 2014 are within the labour force – working or seeking employment, and 8% are caregivers; 40% of those working part-time throughout the year would like to work full time, but are unable to find a job.

World Bank: Making Global Value Chains Work for Development

This new book updates previous World Bank reports on global supply chains, as economic implications are ever changing with the rapid growth of information and communications technology. The book offers a strategic framework, tools, and policy options for how all stakeholders can participate in global value chains in a way that promotes sustainable development.

U.S. Department of State: 2016 Trafficking in Persons Report

The world’s most comprehensive compilation of governmental anti-human trafficking efforts, this report is used by the U.S. government to engage foreign governments on anti-trafficking reforms, and used by international organizations, governments, and NGOs to determine where to allocate focus and resources.

White House to Explore Better Policies to Improve U.S. Labour Market

Facing a long-term decline of prime-age male labour force participation in the U.S., the White House Council of Economic Advisers published a new report re-examining the dynamics of the U.S.-style flexible labour market. It documents the trend of declining prime-age male labour force participation in both a historical and international comparison context, and examines a number of potential explanations and discusses the Obama Administration’s proposed policies. To learn more, click here.

PIIE: Assessing the Trans-Pacific Partnership, Volume 2

The Peterson Institute of International Economics’ new study aims to provide a useful reader’s guide to the TPP and contribute to a more educated public debate over its ratification by the U.S. and other member countries. In Volume 2, the report assesses innovations in trading rules and how TPP provisions build on past practices, as well as issues related to the impacts on labour, adjustment costs on workers, and labour standards. To read Volume 1, click here.

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The International Labour Office (ILO) in Washington, DC serves as a liaison between the ILO and the United States government, employers’ and workers’ organizations, multilateral and Washington-based institutions. The Washington Office engages in analysis of labour issues, research, and outreach activities.

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