TUAC welcomes new evidence from the OECD confirming that strong trade unions and extensive collective bargaining coverage are linked to lower levels of illicit trade in counterfeit goods. The new report, “From Fakes to Forced Labour”, reinforces trade unions’ long-standing position that empowering workers is fundamental to tackling exploitation and criminality.
The report’s findings are telling. They show that counterfeit trade – valued at close to half a trillion USD annually – and labour exploitation are mutually reinforcing phenomena. Countries more frequently identified as sources of counterfeit goods generally display higher levels of child labour, including hazardous forms, alongside greater prevalence of informal employment, longer working hours, weaker labour protections, higher incidence of fatal occupational injuries, and forced labour.
The OECD’s findings on worker representation are particularly significant. Both trade union density and collective bargaining coverage correlate negatively with counterfeit trade intensity, confirming that strong unions and broad coverage are essential tools to protect and strengthen workers’ rights while reducing room for criminal business operations that infringe fundamental human and labour rights. Weak law enforceability, resulting in high levels of informality, as well as very low minimum wages are also associated with higher illicit trade activity.
However, the OECD’s recommendations focus on labour governance, inspections, and responsible business conduct – remaining remarkably silent on trade union and collective bargaining rights. TUAC challenges the OECD to go further and align its recommendations with its own findings.
Illicit trade thrives on human exploitation and the trampling of workers' rights. Giving workers a voice is the most fundamental step in ensuring dignity, better working conditions, and legality. This report confirms what trade unions have long argued: strong unions and collective bargaining reduce the space for criminal enterprises. This should be an obvious priority for all governments that want to fight illicit trade and corruption.
