Outsourcing and relocation are inevitable in a free market and open economy. Many of the jobs in this economy, especially in the multinational sectors, could be looked upon as having been outsourced to here and we still continue to capture a significant share of such employment. Inter-firm outsourcing is also an important part of enterprise activity.
Our economic performance has benefited considerably from winning this type of investment from other economies in the past. Indeed for some firms, outsourcing of low-end operations makes complete financial and strategic sense and may be the only means to ensure their continued viability. However, outsourcing should not lead to unethical labour market practices or exploitation of workers and both consumers, suppliers and retailers should be vigilant to ensure that goods are produced under fair and decent conditions.
Outsourcing can, of course, make a valuable contribution to the efforts of developing countries to develop and increase their exports, thus earning valuable foreign exchange, as part of their drive to industrialise and diversify their economies. Not only does this provide employment but it also makes a longer term contribution to development of production and management expertise.
However, outsourcing should not lead to unethical labour market practices or exploitation of workers and both consumers, suppliers and retailers should be vigilant to ensure that goods are produced under fair and decent conditions.
While discussions have not taken place with the ILO on a bilateral basis on the issue of labour standards in other countries, Ireland has consistently supported the International Labour Organisation in its efforts to promote core labour standards. In 1998, we supported the adoption by the ILO of a Declaration on Fundamental Principles and Rights at Work. This commits the ILO's approximately 180 member states worldwide to respect the principles inherent in the core labour standards and to promote their universal application.
Additionally, at the most recent June Conference, ILO members, including Ireland, adopted the Declaration on Social Justice for a Fair Globalisation. This provides the ILO with a rejuvenated and strengthened mandate to enable it to better respond to its members' needs to tackle changes arising from the globalisation process. Ireland, alongside its EU counterparts, also fully supported the accompanying Resolution that includes concrete modalities in support of implementation of the Declaration. The new Declaration is an important tool and promotional framework for the achievement of the ILO's four strategic objectives that comprise the Decent Work Agenda.
