Non-profit NGO that does not apply for private donations or public subsidies and was founded to arrive at an international convention establishing a global minimum wage for export workers.     

Enfants ecoleFor an end to slavery-like working conditions for parents and so that children can go to school 

Worldwide, most consumers and workers hope to bring an end to working conditions akin to slavery and would welcome the establishment of a global minimum wage. The last international convention against slavery was organized by the League of Nations in 1926 and an international convention for the creation of a global minimum wage, was conducted in 1928 by the International Labor Organization(ILO). Since then, there has been no overall measure to improve the working conditions and remuneration of the most vulnerable populations. Therefore, in a context of unbridled globalization, where profits reign supreme, there is an urgent need to define new rules to eradicate working conditions close to slavery. We must get the two main consumer markets to sign an agreement with the largest possible number of emerging and developing countries. This protocol could initially involve employees whose activity is related to exportation to the U.S.A. and the E.U. Francis Journot, Paris, France, september 27,  2013  

There are mainly two projects of global minimum wage. The progressive minimum wage by groups of countries and specific to exportation that we advocate. The other concept, often called "living wage system", calculated according to the median income of each country, first mentioned in 1919 but still claimed by many NGOs, could never be implemented, partly because of its complexity and economic inconsistencies. june 11,  2018    

____________________________________

Global minimum wage and environment:

What’s the New York Times's publisher,

A. G. Sulzberger gonna do? 

NYT

The low-cost economy is an ecological, economic and humanitarian anomaly. The history and our children will certainly condemn us for these crimes against environment and humans. The dogmatic rhetoric of deregulated free trade in the name of competitiveness is inspired by some economic arguments already used two centuries ago by proponents of the slave trade and slavery, to protect their incomes in the production of sugar, cotton and other consumer products. Exacerbated neoliberalism is reaching its limits. Can we seriously want more free trade, and at the same time affirm that we are fighting to preserve the environment?​ In 2014, a NASA study evoked a possible end of our industrial civilization in a few decades. Everyone and even the financial markets are aware that a paradigm shift will have to be considered sooner or later. But most mainstream medias, doesn't seem ready to question old ideologies. will the editorial positioning of the new publisher of one of the world's most influential newspapers be different? 

Letter to Arthur Gregg Sulzberger    

SulzbergerYou probably know the "International Convention for a Global Minimum Wage" project, like several thousand informed economists and journalists, politicians, managers of major companies or NGO leaders around the world. Reasonable and workable, it has already been published several times in the press including in the oldest and most prestigious French newspaper liberal Le Figaro. According to a study sponsored by NASA's Goddard Space Flight Center relayed by the british daily newspaper The Guardian on March 14, 2014, "The unsustainable resource exploitation and the increasingly unequal wealth distribution" could cause the collapse of our industrial civilization in a few decades. Our proposals are mainly oriented on these two axes : a progressive increase in the wages of workers producing goods and services for export to Western markets, by groups of economically close countries. Under this impetus, other local wages would mechanically increase over the years and the macro-economic effect would reduce poverty. This could make it possible to change, in the short or medium term, the lives of tens of millions of children, woman an men working in conditions akin to slavery. A pay increase and less quantitative production would reduce consumerism and slow down the destruction of the environment. 

Until the publishing of our project in September 2013, the most common suggestion since the creation of the ILO in 1919, was the utopian rather than pragmatic concept of a global minimum wage based on the median wage or the cost of living of each country and including several variants sometimes discussed in your columns by economists. This idea pleases even the largest multinationals who know that the implementation of such a system would prove impossible or would take at least several decades. Funded NGO participate in this role play. This maintains the illusion that solutions are being implemented, but the cause of the global minimum wage has stalled for a century.

Will The New York Times continue, like most media and maybe by conformity, to contribute to this masquerade or, on the contrary, will it take part in the real human and ecological progress that we advocate. Your leading position in the international press gives you, more than anyone else, an ethical duty and a particular responsibility with regard to major human and environmental issues. Only concrete project of global minimum wage that could reduce slavery and environmental degradation in the coming years, it also provide us the opportunity to reflect to a new global paradigm at a time when the fire is smouldering. The global minimum wage could succeed where 23 conferences on climate and environment witch organized since 1979 have failed. Otherwise, at Davos summit meetings in 2018, the “global fracture” and rising inequality were themes that were addressed for the second consecutive year. Both heads of state and the heads of the world’s largest corporations are more and more aware of the omnipresent risk of escalating violence. Environment, justice, fear of the risk of insurrection and economic disorder, whatever the different motivations of each, the convention and its win-win consensus proposals, could be timely.          Sent august 9, 2018 

Francis JOURNOT   International Convention for a Global Minimum Wage 

http://www.international-convention-for-minimum-wage.org/

____________________________________________                                                                          

Why The Guardian is wrong

on global minimum wage   

Guard 2017040508555426

The idea of a global minimum wage based on the median salary or on the cost of living of each country, more utopian than workable, is the most common suggestion for a long time, but the establishment of such a system, would prove impossible or would require at least several decades. The living wage was first mentioned when the International Labor Organization (ILO) was created in 1919. This maintains the illusion since a century that solutions are implemented and contributes to the bogging down of the cause of the global minimum wage. Meanwhile, several tens of millions of children, women and men, who are paid a few tens or a little over a hundred euros a month, continue to work in conditions close to slavery and are impatiently waiting for a concrete project.                                           

 Open letter to Katharine Viner, editor in chief of the Guardian  

KatharineIn an article entitled “How to stop the global inequality machine” published last year, the Guardian’s columnist Jason Hickel wrongly lends capacity and power to the ILO to install a world minimum wage. This anthropologist at the London Schools of Economics affirms, about the setting up of the “Global minimum system” advocated by the American economist Thomas Palley: “The International Labor Organization has already proven that they have the capacity to manage such a system. And it would make good sense to couple it with a universal basic income.” Yet, if we refer only to the facts, in 1928, the last Convention concerning the Creation of Minimum Wage-Fixing Machinery, left tremendous leeway to each signatory nation and the Convention was a failure: “Each Member which ratifies this Convention shall be free to decide the nature and form of the minimum wage-fixing machinery, and the methods to be followed in its operation.” So only 99 countries ratified the convention, including China in 1930 and India in 1955 – to little effect, as we now know. Other countries didn’t join until 2006 or 2007, some 80 years later! In addition, in his last book Politics against domination, Ian Shapiro, sterling professor of Political Science at Yale, wrote “Created as a branch of the League of Nations by the Treaty of Versailles, the ILO has no enforcement power”.

Even if the idea of the living wage system seems a priori seductive, it is certain that the ILO could never be able to impose this very complex process on the countries concerned. Moreover, the rate of 50% of the median wage of each country, recommended in 2011 by Thomas Palley in his book From Financial Crisis to Stagnation, main contribution to the subject of  global minimum wage written  by an renowned economist these last years, is not uniformly adaptable and would not systematically modify the living conditions of workers. Take Bangladesh and Ethiopia, for example, if a textile worker's monthly wage is $65/80, and the median wage does not exceed $130/160 there would be no wage increase, but we have to admit that when Thomas Palley made his proposals, the economic parameters were different ($18/25 per month in Ethiopia and Bangladesh in 2010).

In book The divide, Jason Hickel propose to twin with a universal basic income but it seems even more risky. A salary that some poverty-stricken States would not be able to afford to pay to their civil servants, or that businesses manufacturing goods for the local population would not be able to pay to their employees, obviously cannot be accepted. A wage without an economic basis could prove counterproductive. He could destabilize poor nations and worsen the living conditions of individuals.

Because it is a reality that no entrepreneur in the world is unaware of: in front of each wage increase, it is necessary, unless one wants to initiate a new collectivist model, that there is the corresponding financial resource and if we take the example of the H&M and Zara chains, whose 13,000 gigantic stores occupy several tens of millions of square meters that disfigure the most beautiful avenues in the world, this one exists. The two groups invest each year in the opening of 1,000 new stores. By reducing a little these or dividends or increasing the selling price of each article by only a few cents, tens of cents or 1 or 2 euros on more expensive coins, it would be quite possible to pay each worker several hundred dollars a month and the same is true in most industrial sectors.

We have to be pragmatic and that is why the International Convention for a Global Minimum Wage' project only proposes an increase in the wages of workers producing goods and services for export to Western markets. Under this impetus, other local wages would mechanically increase over the years and the macro-economic effect would reduce poverty.  

The columnist’s conclusion may seem relativistic when he points to a possible change in future activities due to a "rising tide of automation". But robotized or not, industrial activities will not return soon and massively in Western countries. First, because the competitiveness of lower-cost countries was only one reason for their departure from our countries, but also because manufacturing know-how, capacity and ecosystems have disappeared in most sectors of the consumer goods manufacturing industry. The introduction of a global minimum wage therefore remains more than ever, essential and urgent from a human but also an environmental point of view because higher wages would reduce consumerism and devastation. The low-cost economy constitutes an ecological, economic and humanitarian anomaly.

We must commend the initiatives of NGOs that are struggle for local wage increases, but as Jason Hickel writes in his introduction: "If we want to globalise capitalism, it is logical to globalise the rules and standards that also protect people".Only a comprehensive project, reasonable and adapted to economic realities, with a strategy and proposing an evolving global minimum wage comprising several levels according to the region and degree of development, could materialize in a few years.         Sent july 7, 2018 

Francis JOURNOT   International Convention for a Global Minimum Wage  

http://www.international-convention-for-minimum-wage.org/

Logofigaro 1 2

Environnment: a global minimum wage 

could succeed where the COPs have failed     

FIGARO ECONOMICS  by Francis JOURNOT  februar 2018 

Xvm4f5a917a 0c18 11e8 9bc2 6afb2a70ff2cLe Figaro/Tribune - Francis Journot notes the failure of the COPs, which have failed to stem the devastating effects of the globalisation of trade on the climate. According to him, the introduction of a global minimum wage would reduce the environmental damage of the "disposable" crop. 

COPs: Reaching an Impasse   

Climate imbalance appears to be undeniable, but is it a natural cyclical process of warming that we can do nothing to prevent, or is it, on the contrary, a direct consequence of industrialization over the past 200 years, which the punitive environmentalism advocated by the COPs (Conferences of Parties) aim to fight against?

Torn between ideology and scientific uncertainty, everyone seems to have made up their own minds. Despite disagreements, 154 heads of state smiled for the world’s cameras during the 21st climate conference, held in Paris in 2015. But two years later, the second phase of negotiations attracted fewer than two dozen of them to COP 23 in Bonn.

Emerging and developing nations don’t want brakes applied to their economies, and the heads of state of developed nations worry that new regulations and taxes on businesses and individuals will weaken theirs (the USA is not pleased about its $375.2 billion trade deficit in goods with China in 2017). 

An accumulation of taxes is not an environmental policy

Can we seriously want more free trade, and at the same time affirm that we are fighting to preserve the environment? In the space of a few decades, humanity has done more damage to the natural environment than in the preceding two millennia. If one agrees with the COPs’ postulate that climate change is incumbent upon us as well, it seems like a rationalization of free trade might be more efficient than carbon taxes or energy transition.

EssenceThe latter’s impact is essentially on the tail end of the chain: the budget of drivers who want little more than to be able to go to work; moderate-income households that consume the disposable – and endlessly renewed – products that globalization pours into their shopping basket; fuel bills for people who can’t always afford to heat their homes properly in winter; and the bottom line of the last manufacturers in developed nations, who will wind up relocating production of consumer goods to countries that don’t apply a carbon tax… thereby increasing the emission of carbon and other toxic gases due to transportation. Piling on taxes and ineffective environmental regulations, avoiding global economic considerations and attempting to arbitrate responsibilities and duties for each country according to criteria that are more dogmatic than pragmatic displays profound cynicism and may seem like a kind of fiscal racketeering… more importantly, they do not a real, effective environmental policy make.

In February, 1992, European heads of state in Maastricht signed the founding treaty of the European Union – which, in accordance with its treaties, has since become the free-trade zone that is most open to importations – then in June of that same year, at the Earth Summit in Rio, recommended managing our planet’s resources better. By now, 90,000 cargo ships crisscross the seas, spewing 1 billion tons of CO2 a year into the atmosphere.

Similarly, the WTO included protecting the environment among its fundamental goals, but eliminated quotas on textile importations in 2005. Since then, the textile industry has moved up to second place amongst sectors producing the most pollutants – right behind the oil industry. According to a report “by the Ellen MacArthur Foundation” published on November 28, 2017 called “A New Textiles Economy: Redesigning fashion's future”, the equivalent of a garbage truck loaded with textiles is incinerated or thrown away every second. The waste in barely-worn clothes is close to $500 billion a year, and the 500,000 tons of microfiber waste that winds up in the sea each year is the equivalent of 50 billion plastic bottles.

The most-recent COPs have requested annual funding of $100 billion, which will supposedly enable actions in favor of slowing down global warming. At the One Planet Summit, the European Commissioner Valdis Dombrovskis upped the ante even more: “to limit global warming to well below 2 degrees Celsius,” he declared, “Europe needs an estimated €180 billion in additional yearly investment over the next decade.” That program, which strings together new fiscal measures in favor of the climate, and the flourishing green-bond market might strike tax-payers as example of wild over-financialization, leading to the risk of a "green bubble” rather than a concrete, concerted effort to protect the environment.

The low-cost illusion

TopelementThe low-cost economy constitutes an ecological, economic and humanitarian anomaly. Entire populations are pauperized while others are subjected to work conditions bordering on slavery. When a garment worker paid a few dozen or even a hundred euros assembles several hundred or thousand items of clothing, the cost ranges from a euro for a t-shirt to a few euros for other items of clothing, or a little more, depending on the brand’s market position. But the over-exploitation of resources, and lack of respect for safety norms that then requires river-cleanup, reforestation, reintroducing endangered species and medical care for sick workers.  

Pairing the “consume less but better” precept to an economic mechanism                         

The current challenge, which consists in slowing down the perfect storm of excess consumerism can be taken on by acting on modes of consumption and production. Granted, we need to learn new ways of consuming, but we can assume that the recommendation to “consume less, but better” won’t be enough. Consumers don’t always have a choice, and often have to settle for the low-cost, disposable offer with built-in obsolescence that is imposed by brands and warehouse stores. 

The best way to re-achieve equilibrium is to have an impact at the beginning of the consumer chain. We need to come up with economic mechanisms that will, in the long term, produce the desired effect.

Before the massive outsourcing of the manufacturing of consumer goods, the low coefficients applied to calculating production costs were fairly standard within each profession. Taking into account both a minimum wage and traditionally fairly high production quality, the final sales price was reasonably close to the actual cost of the item, and consumerism was essentially self-regulating. 

Nowadays, sales prices are determined by the market’s psychological price (the amount consumers are willing to spend). It is no longer unusual to pay 10 to 20 times an item’s production cost. Granted, import duties used to participate in moderating global production, and it must be acknowledged that it would now be almost impossible to restore the former transparency and equilibrium into the current free-trade context. It would, however, be possible to aim in that direction by nudging businesses towards properly re-pricing products, which would then lead to considerable decreases in waste and over-consumption. 

When labor costs are very low, industrials tend to pay less attention to the quality of item’s design and production, meaning they are subsequently fairly flimsy. The often find a purchaser nevertheless, and if not, they are destroyed. A global minimum wage would encourage reducing the production of disposables. The wage would have to apply specifically to the manufacturing of items for exportation, and countries would be classified by average-wage category. Heads of state of emerging nations would be aware of the human and philosophical dimensions, in addition to the economic one. The advantages and benefits of a decent salary – a source of new tax revenue and of financial development funded by increased contributions from the purchasers (retailers, rather than consumers) – would be very convincing.

In the long term, a global minimum wage would generate a positive macro-economic effect on the standard of living of entire populations. Nevertheless, considering what a small fraction of the final price workers’ salaries represent, the price to consumers would barely change.  

An international convention for a global minimum wage by groups of countries and specific to exportation

IloIn virtue of the principle of legitimacy and a hierarchy of priorities, the International Convention for a Global Minimum Wage – which could also have been named the International Convention for Human Dignity and the Preservation of the Planet, would override international business and free-trade treaties. Organized under the aegis of the two largest consumer markets (the USA and the EU), it would, in order to ensure its efficiency, be independent of existent bodies.  If one considers the failure of the 1928 convention and other attempts, the International Labor Organization (ILO) has not, over the past 90 years, shown a capacity for introducing and successfully implementing a global minimum-wage project. Currently, many nations close their eyes to working conditions, believing they are serving their national interest, but those improper salaries actually keep whole populations in poverty and whole countries under-developed.

The idea would be to link exporting towards the USA and the EU to a commitment by heads of states, via the International Convention for a Global Minimum Wage, to then initiate legislation in their respective countries in support of a global minimum wage for workers producing goods and services intended for those large consumer markets.

Each government would then be responsible for making sure those new rights were respected both by local sub-contractors and by foreign businesses implanted on their soil. Wronged employees would have recourse to a dedicated international body for soliciting assistance. In case of repeated infringements, penalties would be applied before eventually calling into question importations from that country.

To begin with, the global minimum wage could be applied to only the 2 or 3 industrial sectors whose production and transportation needs count among the most polluting ones. In a similar vein, increasing salaries would be spread over 2 or 3 years or even 5 or 6 years when they are very low (e.g. $40 in Ethiopia), in order to allow the changes to take place in an orderly manner. Negotiations for a specific minimum wage for agriculture, i.e. concerning unprocessed products, would also take place. They would take into account the reduced margin differential in that sector. The new agricultural salary (as long as it is not below the minimum wage already in effect in the country) could fall somewhere between the median salary and the manufacturing minimum wage for exportations for the same category. The agricultural salary could also cover mining activities.

Nations’ economies and wages are sometimes interdependent, it would be essential to be sure not to accentuate economic unrest. For example: a 30% increase in the salary of a Chinese factory worker in the export sector would also contribute to preserving equally reevaluated jobs held at the sub-contracting factories that are becoming more numerous on every continent. 

Low risk of inflation or economic destabilization     

Rising inflation rates in emergent or developing economies could turn out to be limited because the wage increase would not concern people working for local production. Therefore, it should have very little impact on local prices. In any case, social and economic progress would be spread out over time (several years), naturally and more or less progressively depending on each country’s structure. The risk of losing industries is also minimal. Major chains would have no reason to suddenly leave Bangladesh, Ethiopia or Vietnam if wages would have increased elsewhere as well. It is also highly unlikely that labor-intensive industries would suddenly return to countries that have lost their manufacturing know-how and capacity.

The minimum wage wouldn’t make prices rise excessively in western commerce, because, on the one hand, they have to take into account consumers’ purchasing power, and on the other, they face fierce competition. In the clothing sector, more than 40% of clothing is currently sold at sale or discounted prices. The largest impact would be on the weekly pace of "fast fashion" collections, recurrent advertising campaigns, and the number and size of the mega-stores on the world’s most prestigious shopping streets. A minimum wage applied to only part of a country’s active population is a concept that has almost never been tried, so there are no representative examples.

So we can instead refer to the implementation of a minimum wage in France, which was agreed to at the Grenelle negotiations in 1968. It represented an overall rise of 35%: the minimum agricultural income grew by 55% and other wages saw their remuneration increase by 100% or more over the following months and years, yet the inflation rate stayed fairly stable until the 1973 oil crisis.

If one examines the more-recent case that China represents, even though we need to take dumping into account, we can observe that multiplying the average wage by 300% in less than 10 years did not generate a sudden rise in the price of the products exported and sold on the shelves of western retail chains.  

Francis JOURNOT - International Convention for a global minimum wage 

http://www.international-convention-for-minimum-wage.org/

    Logofigaro 1 2

Dumpings, environment, slavery :

a global minimum wage would offer solutions

FIGARO ECONOMICS  by Francis JOURNOT  november 2017

 Xvmd4cb19a0 ced4 11e7 8819 15a9d4558439Le Figaro/Tribune - Francis Journot denounces the slavery of several tens of millions of women and men paid a few tens or a little over a hundred euros a month. It defends a global minimum wage, which would initiate a transition towards a paradigm shift.

Deregulation of trade and economic imbalances, overproduction and destruction of the environment, working conditions close to slavery and immigration, unemployment and precariousness in developed countries: the Happy globalisation and European cohesion have remained a slogan. On 17 November 2017, at the European Social Summit in Göteborg, French President Emmanuel Macron exhumed the theme of the European minimum wage without, nevertheless, integrating the parameters inherent in a globalised economy. However, the introduction of a European minimum wage could be achieved through the joint introduction of a global minimum wage. The export specific wage is an option that should now be considered.

How to create a European minimum wage?

The project of a single European minimum wage or according to the median income of each country never came to fruition when the EU had only 15 members and 25 years after Maastricht, one can doubt a possible agreement between the 28 countries. A salary that states could hardly assume in their administrations or that companies producing for the local population could hardly pay to their employees, obviously has no chance to succeed even in two stages, euro zone then EU, as recommended by the president of the European Commission Jean Claude Juncker. Moreover, a unilateral increase in European wages would deindustrialize and further impoverish a European Union which deplores an external deficit of $170 billion with China, comparable to that of the USA which exceeded 478 billion dollars in 2016 with the same country. 

Within the EU countries, only Germany is doing well. This one wins the jackpot with a world record surplus of $293 billion including 257 with China. The EU's largest economy benefits both from an undervalued Yuan that allows it to import parts at low prices and from a workforce of subcontractors from neighboring countries whose wages are among the lowest in Europe. European countries with the lowest wages in the EU will not give up their competitive advantage unless they are assured that the increase will have little effect on their respective economies. But for this to happen, it would then be essential that all the other low-cost countries also increase the competing wages of workers and employees producing goods and services that are then exported to the major consumer markets.

International Convention on a Specific Minimum Wage for Exports 

Les effroyables conditions de travail des employees des usines h m en asie 1It would therefore be appropriate to make exports to the two major consumer markets (EU and USA) subject to the commitment of the heads of state, during an international convention for a minimum wage, to then legislate in their respective countries, in favour of the world minimum wage for workers and employees who produce goods and services destined for the USA and the EU. Its amount, which could be between €250 and 350 in the first years, would be determined at the end of a vote of the convention. Certainly a share of Chinese manufacturing wages is already in this range but the workers working for the subcontractors more and more numerous in Asia, Africa or Europe (outside the EU countries) would benefit from it. Ambitious for some, too modest for others, this step would nevertheless constitute undeniable social progress for several tens of millions of women and men paid a few tens or a little over a hundred euros a month to work sometimes in conditions close to slavery. 

Similarly, the creation within the EU of a European minimum wage which could be around €600 would accelerate the achievement of the social Europe desired by Brussels but which has so far failed. The wage increase would satisfy workers in the 10 EU countries whose minimum wage is close to or less than €400 without threatening state economies. Indeed, it is unlikely that labour industries now relocated to lower-cost countries will return instantly to countries that have lost their know-how and productive capacities. For example, the manufacture of low- or mid-range textile articles would usually only cost a few cents or tens of cents more. On the other hand, the increase in the purchasing power of employees in industry and exported services would mechanically extend to all the populations of the countries concerned and could generate markets with higher added value, sometimes more local and respectful of the environment.

After the failure of all climate conferences, the strategy must change

When a worker paid monthly €30 or €100, assembles several hundreds or thousands of garments each month, the manufacturing cost is often considered insignificant but the same is not true for the impact on the environment because textiles are the second cause of pollution behind the oil industry. By instituting a minimum wage, clothing will gradually abandon its status as a disposable product. A salary of €300 would not necessarily increase prices in the big chains. These are generally set according to the purchasing power of consumer countries and their competition. The main impact would be the weekly rhythm of the "fast fashion" collections, the advertising budgets, the surface of the pharaonic stores installed on the most prestigious avenues and the profit margins.

Previously each item had a manufacturing cost that valued the product. Now H&M burns 12 tons of clothes every year, according to Danish journalists. The unbridled free trade model that favours more quantitative than qualitative production and moves hundreds of millions of tonnes of goods from one end of the earth to the other will have to be rethought. According to The Gardian, the 15 largest container ships pollute as much as the entire global fleet. Today, nearly 100,000 cargo ships sail the seas. The climate conference held in Paris in 2015 made the world aware of climate issues but, like previous meetings, will not reduce overproduction, particularly in China. The world's biggest polluter had already failed the Copenhagen conference in 2009 and did not hide his ambition to dominate the world economy before thinking about reducing his emissions, the peak of which will not be reached until 2030, but judged the climate contribution of developed countries set at $100 billion per year from 2020, very insufficient. The failure seems inevitable once again. 

Of course, the global minimum wage would not solve all the problems. Nevertheless, it would initiate a transition towards an indispensable paradigm shift. Consuming less but better could be one of its objectives. This month we asked to a specialized group of reputable lawyers from the East Coast of the United States to forward our proposal for an international convention for a world minimum wage to the American government. President Donald Trump could bring this project to fruition, which would represent important social and environmental progress for humanity, but will he want it?

Francis JOURNOT - International Convention for a Global Minimum Wage

http://www.international-convention-for-minimum-wage.org/

______________________                

Marianne logo

Pope Francis: slavery, deadly immigration – 

a global minimum wage is needed

Tribune/Marianne By Francis Journot  february 2015

"We need to take action against the causes and not only the effects....": That was your final recommendation on the subject of slavery and the mortal dangers of illegal immigration when you addressed the European Parliament last November. The creation of a global minimum wage linked to exported consumer goods and services would curb slavery and could offer new economic perspectives to people who often risk their lives to migrate

2793 100231233

 A global minimum wage that is specific to exportation       

The idea of a global minimum wage is not new, but in the absence of a pragmatic project, the idea has never made any serious headway. The median salary according to the standard of living and average wages in each country is the most common suggestion, but putting a system like that into place would take decades. Indeed, in 1928, the last Convention concerning the Creation of Minimum Wage-Fixing Machinery, left tremendous leeway to each signatory nation, but the Convention was a failure: Each Member which ratifies this Convention shall be free to decide the nature and form of the minimum wage-fixing machinery, and the methods to be followed in its operation.”99countries ratified the convention, including China in 1930 and India in 1955 – to little effect, as we now know. Other countries didn’t join until 2006 or 2007, some 80 years later.  

Thus this experience teaches us that, in order to be efficient and to be ratified quickly by the largest possible number of members, any new international convention must necessarily establish precise, common methods of application. In addition, the process must not be financially onerous for the member states. To begin with, the global minimum wage we advocate would be aimed at wage-earners whose work is related to products and services for export to the world’s largest consumer markets. The heads of developing states could see the advantages of a decent wage, which would also be a source of tax revenue and would contribute to development paid for, in part, by consumers, essentially in the West. In the long term, the minimum wage could generate a positive macroeconomic effect on the standard of living of entire populations.  

Currently, with hourly wages generally ranging from a few cents to less than half a euro, wages’ share in the production cost of consumer goods produced in low-wage countries often represents only 1 to 5% of the total price paid by the consumer. A specific global minimum wage of $300 to $400 would increase production costs, but should still have only a moderate impact on consumer prices. Between the effects of the global economic crisis – which has reduced purchasing power – and increased competition, with an endless stream of new players, particularly in the garment industry, supply generally adapts to demand, and price tags for low-end and middle-range consumer goods have been shrinking. The fact is that the large corporations that outsource labor to low-wage countries generally enjoy wide enough margins that they can reduce them without harming their own profits. Apple, for example, posted a total of nearly $80 billion profits in 2013 and 2014, and chains like ZARA and H&M have been opening some 400 new luxury megastores a year, in some of the world’s most desirable real estate.  

Imagining a change in modes of production   

Integrating a living minimum wage and the actual environmental impact into production costs would guide us towards curbing consumerism and, long term, would help reduce global warming as well. Raising industrial wages in developing nations would reduce the productivity gap between industrial production and craftsmanship. That would encourage the growth of local cottage industries and farms that are more respectful of the environment, which could then guarantee vital revenue to independent craftspeople or employees of smaller-scale structures, particularly in developing nations. Production would gradually evolve towards a higher-quality, less-disposable offer with less planned obsolescence, which would subsequently be more economical for consumers. At a time when the economic model based on a headlong race for growth has revealed its limits, but continues nonetheless to contribute to the destruction of our planet, it is time to require asocial- and ecological-responsibility percentage from the world’s largest corporations. It could be calculated on the basis of the true environmental footprint of the services oritems sold. It would take into account the quality or solidity of the items, and the working conditions for those offering services directly or producing items for sub-contractors, as well as all stages of sales and delivery, including advertising. Through a global agency devoted to this process, their contribution could finance actions in favor of fighting global warming, particularly through developing local economies and cottage industries, or any other actions leading to reducing the corporations’ ecological footprint.

The task would be less daunting that it might seem, because fewer than 400 international corporations share the quasi-totality of the global marketplace. It would be only right and fair that corporations which profit excessively from the world’s resources should contribute financially to repairing the damage they cause. In your World Day of Peace message communicated on 10 December 2014 entitled No longer slaves, but brothers and sisters, you drew attention to the “social responsibility of consumers” thus: “Every person ought to have the awareness that ‘purchasing is always a moral – and not simply an economic – act’”. It is true that consumers can and must reduce their consumerism. Yet responsibility also lies with the free-trade policies that encourage consumerism and which, in just a few years, have caused CO2 emissions to sky rocket. Purchasing used to be a considered act based on looking for the best value for money in a diverse, but relatively high-quality offer, but nowadays, the guidelines have disappeared. Consumers, ever more subject to an onslaught of advertising, consume whatever offer that is imposed upon them by a small number of multi-national corporations that reign over consumer markets. Individual consumers are now practically obliged to frequently renew disposable or soon-to-be-obsolescent equipment produced in low-wage countries where there is often little concern for either human rights or the environment. 

 Saving children  

According to a 2012 UNICEF report, 322 million children (23% of 5-17 year olds worldwide are involved in economic activities. Among them, 215 million work in unacceptable conditions, and over 110 million of them are subject to unspeakably bad conditions. If one recognizes that when parents are paid a living wages children are less likely to be obliged to work and can instead pursue and education, then the existence of a living wage is crucial to children’s well-being. By the same token, we watch helplessly as thousands of migrant children and adults drown in their attempts to immigrate; they are often fleeing countries where the wages of those who produce items intended for the large consumer markets barely allow them to survive. We must work towards the regulation of a global labor market, which, in the entire history of humanity, has never involved so many people in slavery-like conditions in emerging and developing nations, or so many poor or unemployed people in developed ones.  

An end of slavery   

On 2 December 2014, International Day for the Abolition of Slavery, a meeting co-organized by the Vatican and the Global Freedom Network, initiated by the Australian millionaire and mining magnate Andrew Forrest, obtained the signatures of 16 major religious leaders who jointly pledged to work together to “end slavery by 2020.”Yet the declaration does not seem to have involved a joint strategy. Thus one can legitimately fears that, like so many conferences and conventions organized since the Universal Declaration of Human Rights in 1948, the resolutions will not have any concrete effects. In addition, the movement’s website, which, it was hoped, would attract the support of a major proportion of the world’s population, seems to be stagnating at about 11,000 signatures on Facebook and just over 2,400 on Twitter. Unfortunately, it seems that the hoped-for global mobilization has not fallen into place.  

Mobilizing moral, religious and economics authorithies    

Published in September 2013, the Global minimum wage to abolish slavery project has attracted attention from world-renowned economists; among them, several who teach at prestigious American universities have contacted us to express their interest. Although it is of a clearly different nature and never really came to fruition, as of January 2014, the American minimum wage project had gathered the support of 600 economists. The religious leaders who you brought together, as well as a great number of economists around the world, are among those who could support the “International Convention for Minimum Wage ”that we propose. Some of them could participate in it. Both developing and developed nations could see this convention as an opportunity to restore peace and stability to a world on the verge of social collapse. This would perhaps convince the USA and the EU –the two principal consumer markets, the International Labour Organization (ILO) and the World Trade Organization (WTO) to seriously consider the necessity and ineluctability of a global minimum wage.  

  Francis JOURNOT  - http://www.international-convention-for-minimum-wage.org   

Marianne logo

Letter to Barack OBAMA, president of United States of America, Jean Claude JUNCKER, president of European Commission, Robert AZEVEDO, director-general of WTO, Guy RYDER, director-general of ILO and all heads of state in emerging and developing countries.                                                                             

A global minimum wage to abolish slavery                                                         

"The eradication of working conditions close to slavery begins with a decent wage" 

A living wage can be a tool for human rights  

The International Labour Organization (ILO) and many NGOs (non-governmental organizations) regularly attest to the alarming work and safety conditions for workers in low-wage countries. But the protocols signed by retailers and local industries have shown themselves to be insufficiently binding and have not significantly improved the lives of people who are too often reduced to slavery. guy-ryderEach year, hazardous health situations and accidents continue to kill thousands of workers. Unfortunately, it is unlikely that contractors will agree to give up even a minor share of their profits in order to advance workers’ safety. According to them, this responsibility belongs to the subcontractors, who generally argue that they are unable to fund improvements without the financial involvement of major retailers. 

 

British trade-union leader Guy Ryder has been the Director General of the ILO since October 2012 (photo MEDEF)

Therefore, it is time to consider a different approach: better-paid workers with greater access to information, as well as to advice and legal assistance to protect and enforce their rights. If we, western consumer markets, agree to help employees in low-wage countries obtain a living wage for their work, we will also be providing them with tools that will allow them to improve their work, health and safety conditions.  There is no doubt that they will know how to engage in a dialogue with their respective companies and countries that would lead to the eradication of living conditions akin to slavery.                                                 

 A means to fight against child labor   

A convention against child labor was ratified by 174 countries in 1999. Yet 322 million children – representing 23% of the world’s population aged 5 to 17 – are engaged in economic activities. Of those, 215 million work in unacceptable conditions, and more than 110 million are subjected to extremely harsh working conditions. If parents were better paid, many children would not be obliged to work and could get an education. 

Adopting a more global viewpoint 

In the context of globalization, the situation of workers in developing countries must be approached with a global vision. One can always point the finger at the danger and risks in specific jobs and industries, or the extreme exploitation of workers in certain countries, but that exposes them to outsourcing production to other regions where workers may be even less well-protected. dhaka-savar-building-collapse-9.jpg

The 2013 Rana Plaza building collapse in Dhaka cost 1,133 people their lives and injured 1,900 more workers, of whom 1,000 women and men had serious injuries, often requiring amputation. Since then, several textile firms – probably more concerned with their own image than with the plight of Bangladeshi workers – have transferred production to other countries in Asia or Africa. On September 12, 2013, an attempt to compensate the Rana Plaza victims was organized in Geneva under the auspices of the ILO. Only 9 out of the 29 brands involved bothered to attend. The absentees included AUCHAN, BENETTON, C & A, CARREFOUR, MANGO and the textile group INDITEX  (with capital of almost €70 billion), which owns ZARA, MASSIMO DUTTY, BERSHKA, OYSHO, PULL & BEAR and STRADIVARIUS, among other brands. In order to put a stop to this insane and murderous cycle, perhaps it is time to try to come up with a more effective response. Most Western consumers would welcome the establishment of global wage standards. 
Nevertheless, the protection, rights, safety and health of citizens is the responsibility of each nation, which remains sovereign, even when there are clear lacks. Moreover, the immediate establishment of a living minimum wage for all employees in every developing country would, most often, be economically unfeasible. Therefore, to provide long-lasting solutions to urgent and often dangerous situations, the key is to organize an international convention at which a mandatory minimum wage specifically for export work could be agreed upon, so as to allow for exchange to take place in a more fair and peaceful world. 

An international agreement between consumer markets and low-wage countries 

The U.S.A. and the E.U. could, in collaboration with the ILO and within the framework of the World Trade Organization (WTO), invite all low-wage industrial countries to ratify an international convention.

roberto-azevedo-cropped-11.jpgIn essence, this agreement would make paying manufacturing and service personnel in accordance with negotiated international standards a pre-requisite for exporting to the world’s two largest consumer markets. It would be necessary to collaboratively determine a figure that is high enough to raise the salary of many workers around the world, but also reasonable and moderate enough to be agreed to bythe largest possible number of exporting countries.

A discussion between the main consumer markets and the exporting countries group could be based on the following, which would, however, only be a first step towards broader wage standardization.

Brazilian diplomat Roberto AZEVEDO, who has led the WTO since September 2013, is the first Director General of the WTO to come from a developing nation (photo WTO)

- A minimum net monthly salary of $500 or €400 for workers producing goods or providing services for export mainly to the two largest consumer markets, the E.U and the U.S.A. This would concern countries in Asia, South America, Africa and Europe.  European Union countries that do not have a legal minimum wage or where the minimum wage is below the recommended threshold should also comply with this rule in orderto export to other E.U, countries and to the U.S.A.

Moreover, the E.U. is itself home to tremendous inequalities: at €120 net per month, the Bulgarian minimum wage is the lowest in the E.U. while in Luxembourg, the minimum wage exceeds €1,500. It would be up to the European Commission to impose greater equity among its members. ¹ 

It would then be up to each participating nation to create legislation requiring both domestic and foreign companies to respect the provisions governing remuneration of personnel working for export that were agreed to at the convention.

On December 7th, 2013 in Bali, the WTO, with 157 ministers from Member States, signed a historic agreement liberalizing international exchanges. The agreement provides for a reduction of duties on exports from developing countries, and a simplification of customs procedures. Large corporations and financial markets may well turn out to be the main beneficiaries of this agreement. This time, the WTO, along with the ILO, could organize an international convention to defend enslaved populations. In addition, the reduction in customs expenses afforded by this agreement represents a decrease in costs to trans-national industrial groups, which could participate in financing a revaluation of remuneration for low-wage employees in developing and emerging nations.

More pay is possible without increasing consumer prices  

In just twenty years of globalization, fashion and luxury corporations, large retailers and brands have built huge financial empires. Each year they distribute tens of billions of euros to their shareholders at the expense of abused consumers and exploited workers. Thousands of exorbitant temples to consumerism now occupy millions of square meters on the most beautiful streets in the world. 

But at the other end of the assembly line, salaries rarely reach $200 a month, and are often less than $120. On average, Bangladeshi women are among the lowest-paid workers in the world: as little as $40 for up to 250/300 hours of labor. In Ethiopia, some workers receiving as little as $28 a month also reported that they were beaten by the foremen. 

Yet it would be perfectly possible to pay employees who produce goods for export correctly, in all industries, at no extra cost to the consumer. The decrease in profits would be in the vicinity of just 50 cents for most items, and only a few dollars for the most costly products. For example, the annual production of a Bangladeshi woman in the textile industry who is paid less than $600 a year contributes directly to revenues of up to $200,000 to $400,000 a year. These revenues come from consumer spending in large retail chains or low-, medium-, high-end and luxury shops. Similarly, the cost of labor for a smartphone rarely exceeds 2-5% of the sale price; for a pair of brand-name sneakers, it is between 1.5 and 3%; a luxury bag crafted in a few hours is sometimes sold for as much as $1,000 to $2,500.

The low-cost emerging countries allow retailers to acquire lavish stores of the most beautiful avenues in New York

zara.jpg

handm-v4-460x285-1.jpg

ZARA store on 5th Avenue in NY, occupies 32,292 ft2 (3,000 m2) and cost 324 million dollars. The Inditex group has 6,000 stores around the world. / H & M, which already has 2,853 stores worldwide, continues to open new ones apace: 57,049 ft2 (5,300 m2) in Times Square; 41,979 ft2 (3,900 m2) on 5th Avenue, and 62,431 ft2 (5,800 m2) in Herald Center opening in winter, 2014.

louis-vuitton-paris.jpg

Parts for handbags sold for hundreds of euros, or even €1,000, at Louis Vuitton boutiques (LVMH Group), come from low-wage countries like China and Romania.      

A barcode to increase respect for both human rights and natural resources  

Product traceability, represented by a barcode that would be required for export to the E.U. and the U.S.A., could facilitate the implementation of labor laws in exporting countries. What’s more, production of every single item has a direct impact on the state of the planet and the depletion of natural resources. Perhaps now is the time to begin to fight against consumerism, global warming and the destruction of the ecosystem. A barcode would give every item an identity. It would indicate the name of the contractor, manufacturer and sub-contractors, the economic conditions of employees involved in production, compliance of the substances used and their ecological footprint. This could be the beginning of true global resource and trade management. Moreover, it would be an effective tool in the fight against counterfeiting. 

So that every country can build a healthy economy 

According to most Keynesian economists and those belonging to other schools of thought, raises, particularly in low wages, have a positive macro-economic effect on countries’ development. The practical effects are amplified all the more on the local economy in developing nations when their economies’ are based on agriculture, livestock and manufacturing consumer goods. Improving the wages of employees working for export would mechanically lead to raises in income for all other citizens in exporting countries. Eventually, the increased consumption of necessities, whether food or material goods, would generate growth in the domestic market .  Moreover, this could help build more independent, healthier economies that would be less oriented toward sever-increasing production, with its often-disastrous attendant effects on the environment.     

Consumers: hostages and unwriting accomplices 

We, Western consumers, no longer agree to be unwitting accomplices held hostage to speculative economic policies that impose working conditions akin to slavery on women, men and even children 10 years old or younger. The promise of happy globalization which would benevolently create decent jobs in poor countries while providing cheaper goods to rich ones has hardly come true:  working conditions in developing countries have barely improved since the beginning of globalization; unemployment in Western countries has mushroomed, and the prices of most consumer goods have steadily increased. It now appears that shareholders of major corporations are in fact the main beneficiaries of this fool's bargain. Western contractors clearly share responsibility for this form of modern slavery with local industry. They must also sometimes deal with mafia-style organizations and corrupt officials or politicians. Therefore, the introduction of a statutory minimum wage for export would assist signatory countries in fighting against corruption, which deprives workers and citizens of the fruits of growth that should, by rights, be theirs. Governments could thus better fulfill their duty to protect their citizens. Membership in this international convention between consumer markets and developing countries could represent a historic opportunity for economic and social progress for each of the signatory nations. 

¹ European Union: 

We could consider the introduction of a minimum net monthly salary of €1,000 for workers from E.U. countries producing goods or providing services for export, as well as for employees posted in any of the 28 European Union countries. Currently, some Polish and Portuguese construction workers in France, and Bulgarian and Romanian workers in the food industry in Germany, earn as little as €3 an hour. This minimum wage would apply to the 7 countries that do not currently have one (Germany (2017?), Italy, Denmark, Cyprus, Austria, Finland and Sweden), as well as to the 21 countries with a minimum wage that is below the €1,000  threshold (Romania, Bulgaria, Poland, Hungary, Czech Republic, Croatia, Estonia, Lithuania, Latvia, Greece, etc.)
Minimum wages that exceed € 1,000 month net would continue to apply.Long-term, the idea would be to first consider aligning the minimum wage in the more-developed European nations with the French, British, Belgian, Irish, Dutch or Luxembourger minimum wage (ranging from €1,100 to 1,550), and eventually applying it to the entire European community. 

  Francis JOURNOT - http://www.international-convention-for-minimum-wage.org/  

 Copyright © 2013 - 2018 - non profit NGO International Convention for a Global Minimum Wage & Francis Journot Fair Consulting - All rights reserved