Business Excellence Models and the Plight of Contract Workers

Abstract

Collective bargaining protects workers from abuse of economic power and contributes to economic performance and to social progress. The role of trade unions in collective bargaining is a pivotal tool to improve working conditions and solve labour disputes as well as to achieve social justice, decent work, economic development and stability in societies. Collective bargaining help achieve a wage-led recovery strategy that ensures a sustainable consumption pattern and reverses the growth of inequality. Realising the importance of freedom of association and collective bargaining in achieving economic and sustainability of organisation and society United Nations has launched a voluntary initiative on 26 July 2000, United Nations Global Compact, based on CEO commitments to implement universal sustainability principles to encourage businesses worldwide to adopt sustainable and socially responsible policies, and to report on their implementation. These Principles are derived from: the Universal Declaration of Human Rights, the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development, and the United Nations Convention Against Corruption. The global trend suggests that large organisations are engaging contract workers even for perineal jobs. Despite the efforts of ILO and UN it is also evident that rights of the contract workers are grossly violated by the formal organised sector both private and public. Even those organisations that are participating in Business Excellence award and in some cases award/prize winners are not different. This paper examines the provisions kept in the EFQM Model of Business Excellence to alleviate the plight of contract workers. Evidence suggests that neither the organisations nor the assessor community are sensitive enough to this issue. It is argued that as Business Excellence models aim to satisfy the needs and expectations of all stakeholders, the rights of the contract workers must also be considered while designing the processes and during the assessment process. It is argued that in promoting the cause of the contract workers the Business Excellence models must address such issues not covertly but rather directly by incorporating the obligations of meeting the ILO standards and UN Global Compact principles within the standards. This is also required for maintaining the credibility of the model.