Global Solidarity: a speech at the seminar Work Ahead - the link between jobs and poverty reduction

By Wanja Lundby-Wedin (President of the LO; the Swedish Trade Union Confederation)

"Globalization" became a topical international issue with the creation of the World Trade Organization (WTO) in 1995. The proposal from the international trade union movement for a social clause caused a very intensive debate and was the major controversial item discussed at the Ministerial Meeting in Singapore the year after.

Many developing countries (and Employer organisations) argued that the social clause was solely an attempt by the Western world to introduce protectionism against developing countries comparative advantage of low wages, despite the fact that minimum wage levels were not part of the proposal. They also argued that there was no linkage between how and under what conditions goods were made and the actual trade with those goods.

When expanding global trade fails to secure decent work conditions and result in exploitation of workers something needs to be done!

The fact that Sweden has been able so far to manage "globalization" is related to the fact that that country has a general social welfare system and labour market policies that take care of the individuals affected by restructuring in the economy.

The high rate of unionization gives workers a voice in this process and good governance and flexibility in the labour market is secured through the wide coverage of our collective agreements.