International framework agreements and its impact on labor law

Abstract

The influence of neoliberal economic policies and the process of globalization have had the effect of altering the viewpoint that states have on labor legislation. In order for governments to be included in the global value chains of multinational corporations, there must be an increase in the level of rivalry that exists between them on the world stage. In this regard, emerging nations have begun to consider labor law practices as elements that increase labor costs and so hamper competition. This trend is notably prevalent in countries in Southeast Asia. It has exerted efforts toward the goal of making labor law procedures more flexible and deregulatory in favor of companies. As a result, the protective role of labor legislation has been significantly diminished. In point of fact, it is common knowledge that the labor market, and particularly the working relationship, is currently governed by new approaches rather than the protective function. At the forefront of these strategies are international framework agreements, which are one of the practices of corporate social responsibility implemented by multinational corporations. The aim of thesis is to examine whether international framework agreements are sufficient to regulate the labor market because they do not fill the gap that has been created as a result of the deterioration of labor law practices, they do not protect workers from employers, and not providing workers with protection against employers.