Globalization and working conditions in international supply chains

The discussion about globalization has included the topic of working conditions in international supply chains for many years. In this context, the International Labour Organization (ILO) has focused on Special Economic Zones (SEZ), especially, the so-called Export Processing Zones (EPZ). It is common for developing countries to attract investors by offering special framework conditions, for example, the granting of tax holidays and the repeal of national labour protection laws (in cases where such laws exist). In recognition of this practice, many years ago the ILO developed compliance guidelines on “decent work.” In this paper, Juan Carlos Hiba addresses this issue from the ILO’s perspective. Marina Jentsch discusses why the topic is still relevant by comparing developments (or lack thereof) in recent years and uses data from the textile industry to illustrate certain points. The World Trade Organization (WTO) and some regional trade agreements increasingly show a trend to restrict the use of subsidies and countervailing measures and provide rules addressing the special treatment of free trade zones and their incentive systems. In the final section, Klaus J. Zink discusses the future of these zones in light of the increasing criticism levelled at the ecological impacts of production and the working and living conditions of workers. Practical relevance: The German and European planning underway for a Law on Corporate Due Diligence in Supply Chains clearly demands a better understanding of this topic.