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"Food processing"
takes on new meaning
Changes in technology, habits, and globalization
altering the face of food and drink industries
Recent leaps in technology, rapid changes in consumer patterns and lifestyles, and the onset of globalization, are transforming the food and drink (FD) industries worldwide, according to a new ILO report 1 . These developments, the report says, present the FD industries with daunting challenges and opportunities.
Given the sectors still significant role in manufacturing employment in industrialized economies, and increasingly in emerging countries, how events unfold will also affect the size of the labour market in FD industries. In 1995, employment in the FD sector in the European Union totalled 2.3 million, with bakery, meat, and dairy products representing the top three branches. Similarly, in the United States employment in the food and drink sector, in the same year, stood at 1.5 million and in Japan at 1.2 million.
The evolution of food industries employment in many industrialized countries varies, ranging from marginally increasing to sharply declining. In some subsectors in many developing countries, however, the general trend has been upwards. In the decade between 1985 and 1995, employment in food products in Indonesia increased from 300,000 to nearly 600,000, while in the rapidly expanding Chinese economy, it rose from 2.3 million to 3.1 million. Employment has also been edging upwards in Egypt, Chile, Colombia, India, Romania, and other nations. In the case of the drink industries, in both industrialized and developing countries, employment has been on the decline as a result of modern automation machinery.
The structure of the FD industries makes it clear that with global competition intensifying, the stakes are high.
"Food and drink manufacturers must remain attuned to consumers changing preferences and tastes and be able to adapt flexibly to the market environment if they are to survive and grow in the global market," concludes the report.
In 1994, the worlds ten largest companies accounted for 41 per cent of global sales, compared with only 30 per cent in 1974. Sales of the top 100 companies in 1994 reached US$826.4 billion, sharply up from US$143.5 billion in 1974. In the United States, food production in 1995 reached US$394.8 billion, in the European Union, food, drink and tobacco production totalled 521 billion Ecu, and this year is expected to top 590 billion Ecu.
Failure to react swiftly to the new realities could seriously jeopardize the viability of companies in branches of FD industries in rich and poor countries alike, and trigger higher job losses than the anticipated number that inevitably will be scrapped because of technological changes. Strategic moves to find appropriate solutions, however, in a host of areas from automation and product innovation, marketing distribution, and training to upgrade skills like numeracy and computer literacy, can help generate new sales and job opportunities.
In order to compete in the saturated industrialized markets,"manufacturers must be able to market what consumers want", suggests the report, adding that "they must be able to add value" through product innovation or new products. Automation in areas such as the slaughtering of poultry, fruit and vegetable canneries, breweries and other drink industries, has eliminated jobs in many companies located in rich and emerging countries. But it has also created demand for multiple-skilled technicians, electrical engineers, and other skilled staff.
The outsourcing by FD companies, under pressure to slash costs to remain competitive, of cleaning, transportation, catering, maintenance and data processing activities, has also resulted in job losses. On a brighter note, the report documents that new jobs have been created with the development of new technologies and products, or shifts in consumer habits.
Advances in freezing technology have seen the value of frozen products expand in the United States from US$7.9 billion in 1970 to US$59 billion in 1995. Frozen products have also notched double-digit growth in France, the United Kingdom and other European countries. In one Japanese company, despite the installation of state-of-the-art computer technology, employment increased, largely due to the growing demand for frozen foods. Employment in the meat products branch in the United States has continued to rise, largely due to increased demand for poultry products.
New foods, more jobs
The development of food technology, including biotechnology and food chemistry, observes the report, is also generating new job openings in areas such as research and development.
"Increased sales of new and higher value added products should create more employment opportunities."
The production of safer and more disease-resistant products and the application of biotechnology to produce "functional foods" which reduce blood sugar levels and lower the risk of heart disease is another promising area. By the year 2000, biotechnology-related food products are projected to exceed 70 billion pounds. In 1995, the biotechnology-related FD market in Japan was worth 111.2 billion yen, up sharply compared with 18.4 billion yen in 1989.
The outlook is also upbeat for the niche "natural food industry" which especially caters for consumers apprehensive about biotechnology products. In the United States, this segment in 1994 had sales totalling US$7.6 billion and in 1995 approximately 889 new organic products were introduced on the market.
The importance of safe food manufacturing practices based on internationally recognized standards, such as ISO 9000, is also increasing demand for microbiologists and trainers specialized in food safety and hygiene. Moreover, increasing public awareness about the effect of liquid and solid waste pollution has created demand for environmental control specialists.
Although the infusion of new automation technologies has eliminated many health and safety risks, the FD industries are still among the most hazardous. In 1994, workers in the food and drink industries in the United States, for example, were the most exposed to occupational injuries and illnesses, with 17.1 incidents per 100 workers, far exceeding exposure in other industries; for example: textile, 8.7; chemical, 5.7; petroleum, 4.7; and transportation and public utilities, 9.3. In France, the FD industries were the fourth most hazardous group in terms of frequency and severity of injuries, while in neighbouring Germany the rate of occupational accidents in meat processing was "considerably higher than in many other industries or branches".
Finally, the ILO report highlights that in many industrialized and developing countries female manual and non-manual workers in the FD industries earned substantially less then their male counterparts.
By John Zaracostas
1 Technology and Employment in the Food and Drink Industries. Report for discussion at the Tripartite Meeting on Technology and Employment in the Food and Drink Industries, Geneva, 1998. ISBN 92-2-110967-4.
RAPID RESPONSES TO CHANGE ARE NEEDED
The Tripartite Technical Meeting on Technology and Employment in the Food and Drink Industries took place at ILO Headquarters from 18 to 22 May 1998. It adopted a series of conclusions highlighting that the rapid changes being faced in the industries required quick responses to ensure enterprise competitiveness, a skilled and motivated workforce, and a culture of trust and cooperation between employers and workers.
The meeting also concluded that planning, training and timely consultations were key and could help mitigate the potential adverse effects on employment of the introduction of new technologies. Special attention should be given to the most vulnerable groups of workers to enable them to develop required new skills.
Participants noted that the rate of accidents and illness remained high and required attention, such as through the training of medical personnel, establishment of joint safety and health committees and an emphasis on safe working practices. Environmental concerns were emphasized as key. Four resolutions were adopted on the employment of women, child labour, freedom of association and the future activities of the ILO in relation to the FD industries.
Report of ILO Commission of Inquiry reveals widespread
and systematic use of forced labour in Myanmar (Burma)
The obligation to suppress the use of forced or compulsory labour is violated in Myanmar in national law as well as in actual practice, in a widespread and systematic manner, with total disregard for the human dignity, safety and health, and basic needs of the people, according to a report 2 issued by a Commission of Inquiry appointed under the Constitution of the International Labour Organization.
The Commission said that the impunity with which Government officials, in particular the military, treat the civilian population as an unlimited pool of unpaid forced labourers and servants at their disposal, is part of a political system built on the use of force and intimidation to deny the people of Myanmar democracy and the rule of law. Any person who violates the prohibition of recourse to forced labour in international law bears an individual criminal responsibility, the Commission said.
Those were among the findings included in the report, published on 21 August, of the Commission of Inquiry appointed in March 1997 under article 26 of the ILO Constitution. The Commission received a mandate to examine the observance by Myanmar of the Forced Labour Convention, 1930 (No. 29), following a complaint lodged by 25 Worker delegates to the 83 rd Session of the International Labour Conference in June 1996. The Commission, appointed by the Governing Body, was composed of the Right Honourable Sir William Douglas, PC, KCMG, former Chief Justice of Barbados, Chairperson of the Commission, Mr. Prafullachandra Natvarlal Bhagwati, former Chief Justice of India and Ms. Robyn A. Layton, QC (Australia), Barrister-at-law.
In the course of its inquiry, the Commission received over 6,000 pages of documents and heard testimony given by representatives of a number of non-governmental organizations and by some 250 eye-witnesses with recent experience of forced labour practices, during hearings in Geneva and in the course of the Commission's visit to the region. Summaries of the testimony given by these witnesses, including women and children who had fled from forced labour, are appended to the Commission's report.
The Government of Myanmar, which had been invited to take part in the proceedings, abstained from attending the hearings and did not authorize a visit by the Commission of Inquiry to Myanmar, arguing that "such a visit would not contribute much towards resolving the case" and "would interfere in the internal affairs of [the] country."
The Myanmar authorities stated in response to the initial complaint and supplementary evidence that they were "aware of the criticisms made by some Worker delegates" related to the use of labour in Myanmar and stated that a "considerable portion of the criticisms relating to Myanmar are unfortunately based on biased and specious allegations made by expatriates living outside Myanmar...who wish to denigrate the Myanmar authorities for their own ends."
As was noted by the Commission of Inquiry, its report "reveals a saga of untold misery and suffering, oppression and exploitation of large sections of the population inhabiting Myanmar by the Government, military and other public officers. It is a story of gross denial of human rights to which the people of Myanmar have been subjected particularly since 1988 and from which they find no escape except fleeing from the country."
In its conclusions on the substance of the case, the Commission stated "there is abundant evidence before the Commission showing the pervasive use of forced labour imposed on the civilian population throughout Myanmar by the authorities and the military for portering, the construction, maintenance and servicing of military camps, other work in support of the military, work on agriculture, logging and other production projects undertaken by the authorities or the military, sometimes for the profit of private individuals, the construction and maintenance of roads, railways and bridges, other infrastructure work and a range of other tasks."
The Commission also stated that "In actual practice, the manifold exactions of forced labour often give rise to the extortion of money in exchange for a temporary alleviation of the burden, but also to threats to the life and security and extrajudicial punishment of those unwilling, slow or unable to comply with a demand for forced labour; such punishment or reprisals range from money demands to physical abuse, beatings, torture, rape and murder."
Forced labour in Myanmar is widely performed by women, children and elderly persons, the Commission's conclusions stated, as well as persons otherwise unfit for work, and is "almost never remunerated nor compensated".
"Porters, including women, are often sent ahead in particularly dangerous situations as in suspected minefields, and many are killed or injured this way," the Commission stated. "Porters are rarely given medical treatment of any kind...and some sick or injured are left behind in the jungle."
"Similarly, on road-building projects, injuries are in most cases not treated, and deaths from sickness and work accidents are frequent on some projects," the Commission stated. "Forced labourers, including those sick or injured, are frequently beaten or otherwise physically abused by soldiers, resulting in serious injuries; some are killed, and women performing compulsory labour are raped or otherwise sexually abused by soldiers."
In view of the Government's flagrant and persistent failure to comply with the Forced Labour Convention, the Commission of Inquiry urges the Government to take the necessary steps to ensure:
(a) that the legislation be brought into line with the Convention without further delay, at the very latest by 1 May 1999;
(b) that in actual practice no more forced or compulsory labour be imposed by the authorities, in particular the military; and,
(c) that the penalties which may be imposed for the exaction of forced labour be strictly enforced, with thorough investigation, prosecution and adequate punishment of those found guilty.
Under Article 29 of the ILO Constitution, the Government of Myanmar shall inform the Director-General of the ILO whether or not it accepts the recommendations contained in the report of the Commission. At its 273 rd Session (November 1998), the Governing Body of the ILO should have before it the reply of the Government.
Source: ILO Press release 98/32
2 Forced Labour in Myanmar (Burma). Report of the Commission of Inquiry appointed under article 26 of the Constitution of the ILO to examine the observance by Myanmar of the forced Labour Convention, 1930 (No. 29). Geneva, 1998.
Following a peace agreement, the ILO recently initiated a two-year project on vocational skills training and enterprise development with the Moro National Liberation Front (MNLF). As Arend van der Goes of the ILO office in Manila reports, the project aims to rehabilitate war-torn areas and lay the foundations for sustainable peace.
Mindanao, known as the "Promised Land", is the second largest island in the Philippines. It produces more than half of the nation's fruit, cocoa, corn, coffee, castor, cotton and coconut, but has also been the arena of 400 years of conflict over land and resources, starting with Spanish rule and lasting through the American occupation, until today.
Unable to subjugate the Muslims (Moros), or the tribal groups (Lumads) with the sword or the cross, the so-called "Imperial Manila" tried other approaches. Policies on land resettlement resulted in a large influx of Christian migrants. This was coupled with policies on land ownership favouring individual ownership over the Moro's and Lumad's communal ownership. A correspondingly biased business environment completed the picture and provided ample fuel for open conflict. The past decades, however, also brought about a realization of the need for peace.
Negotiations started in the 1970s and resulted in a peace agreement late in 1996 with the largest rebel force, the Moro National Liberation Front (MNLF). Since then, the UN as well as the World Bank and USAID have started peace-building and rehabilitation programmes in the area. The UN focuses on HRD, basic services, farm-based livelihood, an information referral system, and family planning.
The ILO, in turn, recently initiated a two-year project on vocational skills training and enterprise development. The project aims to rehabilitate war-torn areas and lay the foundations for sustainable peace.
The skills being taught are of immediate use for the men and women beneficiaries for use in rebuilding houses, roads, and other largely infrastructure-related activities. The enterprises to be developed are based upon traditional crafts like basketry, and loom-weaving and are mainly home-based.
Market potential and organization of beneficiaries are key concepts to attain employment and self-employment.
Networking and mainstreaming are the strategy in ensuring sustainability. So rather than isolating rebel trainees, they will be taught alongside their Christian brothers and sisters by mainstream institutions, both public and private.
The transformation from war to peace also requires different leadership skills. Rebel commanders are to be trained on better planning, managing and organizing of community enterprises. But it is not only a question of acquiring skills: a change in mindset from the military to more democratic principles will be crucial.
Traditional war victims, finally, are the young, who without exception are lagging far behind the national average in terms of schooling. The ILO aims to provide a limited group of youths with vocational preparation and technical literacy training in anticipation of follow-up education. The basics on which tools can do what, will be used as an entry point for the curriculum.
In total, some 1,200 men, women and children from all MNLF areas throughout Mindanao will benefit from the ILO activities. Although limited in numbers, it is hoped that the spreading of benefits will usher in the reign of peace and stability and thereby realize further democratic development with the structures and networks set up by the project.
Arend van de Goes, ILO Manila
Reconstructing the labour market
in Bosnia
In Bosnia and Herzegovina, 60 per cent of the active population is without work. The return of 300,000 refugees, most of whom had been living in Germany, could well jeopardize the efforts being made to rebuild an already fragile labour market. Following a request from the Government of Bosnia and Herzegovina, the ILO organized a workshop for 26 regional managers from the country's employment service. The workshop took place in Daun, Germany, from 27 July until 7 August 1998, with the support of the German Federal Employment Office.
The goal of the workshop was to allow participants to pool their thoughts on the organization and activities of employment services with a view to defining suitable programmes for the two constituent parts of Bosnia and Herzegovina (the Federation of Bosnia and Herzegovina and the Serb Republic) which could be put forward for funding from the international community. An important aspect of the workshop was the attempt to bring together participants representing all the country's different ethnic groups.
Employment services there are still divided into administrations based on the country's internal divisions and on the administrative structure established following the Dayton Agreements, which contain no social provisions. This means that instead of a common employment authority at the federal level, there is a separate Serb employment service for the Serb Republic, a Bosnian service at Sarajevo in the Federation of Bosnia and Herzegovina, and a Croatian employment service in Mostar.
Contacts with the employment services in the neighbouring countries (Germany, Belgium and France) were a vital bonus and were made possible by holding the workshop close to the common borders between the countries concerned. These contacts gave participants insights into the workings of several European employment services.
In response to the participants' wishes, organizers proposed a discussion document containing points on which the participants agreed. A reference to ILO international standards posed no problems. Also included was a reference to the need for vocational training with the support of the international community.
Most importantly, however, the workshop showed that senior managers from Bosnia and Herzegovina could work together effectively to meet the professional challenges facing them in a way that transcended conflicting community interests (although these were by no means absent).
A meeting such as this one gives rise to hopes which - as Mr. Scharrenbroich, Assistant Director-General of the ILO emphasized at the closure of the session - must be realized.