Background to the ASEAN Social Charter

The proposal to formulate an ASEAN Social Charter was the subject of three consultations involving national, regional and global trade union leaders supported by academics, think-tanks and government representatives from the ASEAN region.  These meetings discussed the impacts of globalization and regional trade agreements including the ASEAN Free Trade Area (AFTA) on workers.

A consensus emerged among ASEAN trade union and civil society leaders that workers in the region were being confronted with a social and economic 'race to the bottom', a phenomenon that has serious implications for wages, job security, decent work and social protection.  It is evident that an industrial policy anchored on low wages, creates a downward wage spiral and a permanent job loss in the ASEAN region.

The on-going in-formalization of work creates an unstable working life and an uncertain future for workers and their families, considering that the region has already a large and poorly paid informal sector operating outside of labour legislation.

In 1997 Asian economic crisis underscores the ill effects of unrestrained market liberalization on jobs and security of workers in the region.  The crisis not only unleashed extensive poverty but also left millions unemployed and reversed gains made by women in the previous decade.

The increasing number of bi-lateral trade and investment agreements in the region is an additional source of concern to workers. Bi-lateral approaches reduce the negotiating power of ASEAN member countries vis-à-vis developed nations.  ASEAN should therefore develop a collective strategy for the mutual benefit of all its members.