Labour Governance of Global Supply Chains: A Study of the Implications of Globalization on Labour Law and the Protection and Enforceability of Labour Rights Within Global Supply Chains

Abstract: The aim of this thesis is to build an understanding of the current instruments and mechanisms governing global supply chains and to identify the governance gaps in the protection of labour rights. In order to fully understand the implications of globalization on labour law, the thesis undertakes a theoretical framework drawing on transnational labour law perspectives and a conceptual analysis of global supply chains. By doing so, the thesis has been able to discern the implications on two of the organizing principles of labour law, namely: the territorial authority of the state and the organization of the company. It has further been shown that states have actively participated in the deregulation and denationalization of labour law and trade, which in turn has not only lead to weaker labour protection but has also led to changes in the organization of production. By outsourcing and offshoring production to locations where production costs are lower and the protection of labour rights generally weaker, transnational corporations (TNCs) are able to exploit cheap labour without being held legally liable for violations of labour rights within the supply chains. This understanding of the ideas behind labour law and the mechanisms of global supply chains provides the background against which the international legal framework on labour law and private labour regulations have been further examined. By examining relevant instruments of the International Labour Organization, the United Nations, and regional instruments, it has been shown that the state-centrism of these instruments make it difficult to effectively protect labour rights within global supply chains. Although various instruments, such as the OECD Guidelines on Multinational Enterprises, do address TNCs more directly, these instruments are of soft law character and do not create any legal obligations. Due to these gaps in the international labour law framework, there has been a shift to private regulatory initiatives on labour, such as corporate social responsibility (CSR) practice, which involve the direct participation of TNCs. However, the thesis has shown that CSR practices allow for TNCs to avoid binding obligations. As a reaction to this, Global Union Federations have started to negotiate Global Framework Agreements (GFAs) with TNCs. Although GFAs are better at incorporating workers’ interests, they do not have any clear relationship to law or legal enforcement. The thesis has shown that these problems can be remediated through specifications in the GFAs. However, due to the contractual nature of GFAs, it is required that TNCs consent to the content of a GFA in order to be bound by its obligations. Thus, the GFA cannot serve as a guarantee for the protection of labour rights within global supply chains.