Corporate Power and Labor Rights: Why We Have to Watch out for the TPP

By Jaira BurkeMay 27, 20154 min read

Originally published on the CGS blog on May 27, 2015.

On May 21, 2015, the urban streets of Chicago were engulfed in the cries of thousands, as workers, community supporters, and other stakeholders stood in solidarity at the headquarters of McDonald’s. Tears filled my eyes as I heard the overwhelming accounts of hundreds of workers, oppressed by income inequality, struggling for survival.

A young African American McDonald’s worker shared her emotionally driven story of struggling to make ends meet to support her Autistic son and pay for his medical expenses after the death of her husband. Another man, a Spanish immigrant who came to America with the idea of the “American Dream” and being able to support his family, shared his account of working for the mega corporation for over 20 years and never receiving a raise—not even once.

This was a follow up to #FightFor15 protests, which demanded an increase in wages and union representation, and took place in over 200 cities nationwide and 40 countries globally on April 15.

This scene is not an isolated occurrence, but represents an ongoing international effort to improve conditions for workers globally. Although #FightFor15 protests have moved the worker rights’ battle onto the front of the radar on American soil, the battle has a deep-rooted history in decades of labor violations at the profit-driven hands of multinational corporations.

In 2010, after continued pressure, multinational giant Nike paid approximately $2.5 million in legally owed severance to 1,800 Honduran workers. The brand also came under fire in the 1990s for alleged sweatshop conditions in Vietnam.

More recently, in 2013 United Students Against Sweatshops (USAS) got sporting apparel brand Adidas to settle after its refusal to pay $1.8 million in severance for 2,700 former Indonesian garment workers who also complained of inhumane working conditions.

The Institute for Global Labour and Human Rights conducted a 2013 study on conditions in Gap and Old Navy factories overseas and found:

  • phony pay stubs
  • make-believe 10-hour shifts
  • pregnant women cheated of maternity benefits
  • workers cheated of 15 percent of their overtime wages

Many workers who spoke up for their rights were threatened and forced to resign without pay.

Perhaps more unsettling than the initial shock of these occurrences is the fact that for many, this may be your first time ever hearing about them. One cannot deny that corporate power has grown prevalent domestically and abroad. This has prompted relentless work on the part of unions and organizations, increasing political will to address workers’ rights.

In Europe, union workers are accusing McDonalds of skipping out on European taxes, causing a PR nightmare; in August, the Brazilian Senate will hold a hearing on global labor abuses committed by McDonald’s against its workers. Earlier this year, unions in Brazil filed two lawsuits against McDonald’s for continued systemic abuses, including wage theft, time card fraud, denying employees regular schedules, and using underage workers.

But with the controversial Trans-Pacific Partnership (TPP) at hand, it appears that all of this work could be set back substantially. The TPP will increase trade and remove many hindrances deterring businesses from expanding and connecting with markets internationally. While this is a great opportunity for businesses, the TPP threatens workers’ rights across the globe. We observe time and time again the systemic marginalization of small communities and workers who are left vulnerable, with little to no representation in the name of “trade” and “economic opportunity.”

But not to worry: the Office of the United States Trade Representative website states, “The TPP will level the playing field for American workers and businesses by building strong and enforceable labor standards.” America to the rescue!

While that sounds nice, one cannot disregard the blatant correlation between outsourcing and labor abuse. Furthermore, the site includes no information on how exactly these “enforceable labor standards” are actually to be enforced. Principle four of the United Nations Global Compact labor principles states, “Businesses should uphold the elimination of all forms of forced and compulsory labour.” Yet harmful corporate practices continue to run rampant domestically and overseas.

Poverty wages, harsh work conditions, and forced overtime with no pay are all practices that corporations use to minimize the rights of workers and maximize their own profits. Human rights should take priority over fast-tracking the TPP. With workers still fighting for justice domestically, I have very little confidence that decision-makers will enforce labor standards and ensure justice overseas.

America has arguably some of the most comprehensive labor standards in the world. Yet still we observe rich and powerful corporations paying their workers poverty wages. It’s time big corporations stop profiting from exploitation, and more importantly, it’s time that key players stop avoiding the elephant in the room. Labor violations have gone unreported and unpunished for too long, and pretending they don’t exist will no longer be accepted as the status quo. If decision-makers don’t put workers’ rights on the agenda, the workers themselves will.

Opinions expressed in this piece are those of the author and do not necessarily reflect the positions of Citizens for Global Solutions.

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