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Decent Work in Global Supply Chains

Chapter 6.3 Bargaining for living wages and the role of TNCs

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Industry-wide bargaining are expected to bring benefits to workers who see their rights and working conditions improved; for governments who benefit from the development that is brought about by the technological changes and related efficiency gains; and certain employers. However, there will be other companies that will not be able to compete under the new industry-wide collective agreement (for example if the financial situation of the company does not allow for investments required to meet the new safety conditions or to pay the newly negotiated wages). Also, the most competitive companies that due to their market power were able to squeeze down wages, delivery times... may face additional competition when other companies are forced to invest in technological advancements that increase their profitability and position in the market.

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