ILO Mandate within an Evolving Global Political and Socio-Economic Environment

Presentation to the GLU Postgraduate StudentsWits, 13th May, 2014By: Inviolata ChinyangararaILO Senior Specialist in Workers’ Activities

PRESENTATION OUTLINE

Labour in the global economyHow nature of work is changing in the

new economy and implications for economic opportunity and inequality

Rapid economic restructuring, how this is shaping work and employment

Issues in the world of work Issues in industrial sectors

PRESENTATION OUTLINE

Workers’ response to these issues Strategies for improving working

conditions Role of labour in development process Role of labour in economic policy

formulation and implementation Global institutions in development Inequality

The ILO MandateThe ILO Mandateo The ILO is the UN tripartite agency dealing with labour The ILO is the UN tripartite agency dealing with labour

issues and has 185 member States (latest member: S. issues and has 185 member States (latest member: S. Sudan)Sudan)

o It was founded in 1919, at the end of the first world warIt was founded in 1919, at the end of the first world waro It core It core MandateMandate is to promote social justice and decent is to promote social justice and decent

work for all. work for all. o Normative action Normative action (setting ILS and supervising their (setting ILS and supervising their

application in member States) + Technical Cooperation + application in member States) + Technical Cooperation + Research, Training and Information Research, Training and Information

o The main bodies of the ILO are:The main bodies of the ILO are:o International Labour Conference (General Assembly)International Labour Conference (General Assembly)o Governing Body (Executive Council )Governing Body (Executive Council )o International Labour Office (Permanent Secretariat)International Labour Office (Permanent Secretariat)

FOUNDING PRINCIPLES OF THE ILO

Declaration concerning the aims and purposesOf the International Labour Organisation (Philadelphia

Declaration), 1944:

“The war against want requires to be carried on with unrelenting vigour within each nation, and by continuous and concerted international effort in which the representatives of workers and employers, enjoying equal status with those of governments, join with them in free discussion and democratic decision with a view to the promotion of the common welfare”

What is What is Decent Work Decent Work Agenda?Agenda?

Decent Work AgendaDecent Work Agenda Restatement of ILO’s historical mandate in

today’s context

Represents tripartite consensus within ILO as a way to respond to the challenges posed by the globalizing world

A development strategy that reflects people’s aspirations for decent jobs, better opportunities, voice and representation

Operationalized in the ILO’s DWCPs

Strategic Objectives of the DWAStrategic Objectives of the DWA

Continues… Continues…

All four strategic objectives are recognized by the ILO as inseparable, interrelated and mutually supportive

Failure to promote anyone of them would harm progress towards the other

(Declaration on Social Justice 2008)

What is What is Decent Decent

Work?Work?

Continues… Continues…

Work that is Work that is productive,productive, gives fair income, fair income,

securitysecurity in the workplace in the workplace and social protection social protection for for the family, the family,

equal opportunities and equal opportunities and treatment, treatment,

better prospects for personal development better prospects for personal development and and social integration, social integration, freedom to organise freedom to organise and

participateparticipate in in

decision makingdecision making

Concept of Decent Work encompasses both Concept of Decent Work encompasses both

individual and collective dimensions (C 87 & 98)individual and collective dimensions (C 87 & 98)

What is Decent What is Decent Work Country Work Country Program: DWCP?Program: DWCP?

DWCP - Definition DWCP - Definition

Decent Work Country Programs (DWCP) are the tools through which the Decent Work Agenda is implemented at the country level (SUB-Regional DWP: SADC and EAC DWP)

It is the translation of Decent Work Agenda into practical action at the national level

Serves as the main vehicle for delivery of ILO support to countries.

Distinct ILO contribution to UN country programs (UNDAF)

An expression of ILO Program and Budget in a country [time-bound and resourced program][time-bound and resourced program]

How are DWCP Formulated?:How are DWCP Formulated?:

A Six-step CycleA Six-step Cycle Step 1 Defining the country context [diagnostic

analysis]

Step 2 Establishing the country program priorities Step 3 Defining intended outcomes, indicators,

targets and strategies

Step 4 DWCP implementation planning

Step 5 Implementation, monitoring and reporting

Step 6 Review and evaluation

What Are What Are Decent Work Decent Work Deficits?Deficits?

Continues…

Employment Gap:Total unemployment: 202 million (+ rising)

+5 million compared to 2013 [East Asia and South Asia account for more 45% of additional jobseekers, followed by Sub-Saharan Africa]

The global jobs gap reached 62 million in 2013 Equal to 32 million additional jobseekers 23 million discouraged jobseekers [longer look for jobs] 7 million economically inactive people that prefer not to

participate in the labour market

On current trends, global unemployment will rise by 13 million people by 2018

About 74.5 million young people [aged 15-24 years] were unemployed in 2013

Continues…

Vulnerable employment accounts for almost 48% of total employment worldwide

375 million workers are in extreme poverty (below US$1.25 a day)

839 million workers have to cope with US$2 a day

Informal employment remains widespread in most developing countries Large army of working poor: concept of mass + Large army of working poor: concept of mass +

cheap production for export – the current cheap production for export – the current global model global model

Continues…

Declining wage share in GDP Growing gap between level of wages and profits [wage lagging

behind productivity] Exploitation of cheap labour to achieve increased profits Neglect for human rights, the protection of workers, right to

food, economic and social rights as well as the sustainable use of natural resources

The richest 8% of the world’s population earn half of the world’s total income

While the remaining 92% of people are left with the other halfWhile the remaining 92% of people are left with the other half

The richest 1% of the world’s population owns about 40% of the world’s assets

While the bottom half owns no more than 1%While the bottom half owns no more than 1%

Income inequality increased by 11% in developing countries between 1990 and 2000

World Population & World Income SOURCE : YOUR WORLD PIXELATED

Continues…Continues… Increased vulnerability and economic insecurity

with a rise in unconventional and precarious jobs such as: Part-time employment Self-employment Fixed term work Temporary work On-call work Home-based work

Women continue to be disproportionately represented in vulnerable employment

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World Map on VulnerabilityWorld Map on Vulnerability

Trends Impacting Vulnerability of WorkTrends Impacting Vulnerability of Work

Declining full-time and secured employment Growing informalization Low pay No minimum wages High number of people excluded from social

security Low levels of health and safety standards Growing income inequality High rates of unemployment and

underemployment Growing working poverty [ILO: those who work

and belong to poverty]

TOP 10 UNEQUAL COUNTRIES

No.

Gini index Year of Information

1 Lesotho 63.2 1995

2 South Africa 63.1 2005

3 Botswana 63.0 1993

4 Sierra Leone 62.9 1989

5 Central African Republic 61.3 1993

6 Namibia 59.7 2010

7 Haiti 59.2 2001

8 Honduras 57.7 2007

9 Colombia 55.9 2010

10 Guatemala 55.1 2007 Source: CIA: the World Fact Book

Work Areas of the ILO in Addressing Employment Deficits

Employment creation( No:1 priority in DWCPs)

Promotion of more and better jobs for inclusive growth (ACI: 1)

Development of appropriate skills to enhance employability

Support development of sustainable enterprises

Jobs for youth

Role of trade unions in influencing Policies

Participation (not just attendance) in policy dialogue platforms

Involvement throughout the process (preparation, implementation, M&E)

All levels/sectors of workers’ organization to be involved not just leadership

Advocacy, lobbying and watchdog roles critical

Identification of projects to be implemented to achieve policy goals

Establish working relationships with various ministries and with “like minded” organizations (NGOs)

To what extent are TUs effectively playing their policy influence role??

XXXX federation capacity on dealing with traditional “bread and butter “issues: wages, working conditions, collective bargaining etc has been well developed over the years. However, with the widening scope of agenda issues for trade unions, XXX lacks required capacity to deal with complexity of issues involved in National Employment Policy.

Given the complexity of the issues involved in NEP formulation and implementation many knowledge gaps still exist within XXXX 1st and 2nd layer leadership.

There is no capacity in XXXX for solid analysis of NEP issues that would lead to trade union effective engagement.

While being mindful of the need to be involved in the implementation of all nine (9) prioritised areas of the NEP, XXXX plans to put more focus on the following four (4) areas/sectors: Labour Administration and Labour standards, including strengthening social dialogue, informal economy and SMEs, improved social security and pro-employment macro-economic policies. This selection was arrived at based on current existing capacity within XXXX.

To what extent are TUs effectively playing their policy influence role??

Further capacity support will be required to strengthen XXXX capacity to monitor NEP results, and to be able to measure and analyse decent work and employment.

The capacity support will enable trade unions to occupy new institutional spaces that result from more inclusive policy-making. The NEP implementation plan defines some areas wherein trade unions are part of lead agencies and trade union capacity to lead these clusters would need to be strengthened.

Within 2014, it is fundamental that XXX identifies a policy research partner(s) to provide research based labour and employment policy insights.

Continues…Continues…

Rights Gap:Unprotected and exploited workers:

Blatant denial of freedom of association and right to collective bargaining

Poor working conditions [low or no pay – working poverty, limited or no social security coverage, injustices in the distribution of the gains of economic growth often resulting into growing inequality and the lack of equity, etc.]

Child labour: 168 children worldwide are trapped in child labour [85 [85

million are in involved in hazardous work – down million are in involved in hazardous work – down from 171 million in 2000]from 171 million in 2000]

Forced labour: approximately 21 million people are victims of forced labour [11.4m women + girls and 9.5m men [11.4m women + girls and 9.5m men and boys]and boys]

Victims of Forced Labour by RegionVictims of Forced Labour by Region

Victims of forced labour by region

Continues…Continues…

Social Protection GapsSocial Protection GapsLimited social protection measures have worsened economic insecurity and vulnerability:

Just about 20% of the world working age population (and their families) have effective access to comprehensive social protection

80% do not access to comprehensive social security 50% - no coverage Less than 10% covered in the least developed countries 20-60% covered in middle income countries 100% covered in the industrialised countries

Occupational Safety and Health GapsOccupational Safety and Health Gaps2.34 million 2.34 million people die from work-related accidents + diseases each year2.02 million 2.02 million people die each year from work-related diseases alone321,000321,000 people die each year from occupational accidents Non-fatal work-related injuries: 317 millionNon-fatal work-related diseases per year: 160 million

This means that:Every 15 seconds, a worker dies from a work-related accident or diseaseEvery 15 seconds, 151 workers have a work-related accident

Continues…Continues…

Critical SectorsCritical Sectors

AgricultureMining ConstructionInformal Sector (accounted for >90% of New Jobs in

African countries in the last decade)

More than 80 feared dead in --- mining

accident

Continues…Continues…

Social Dialogue Gap:Social Dialogue Gap:Gap in freedom of association Lack of democratic foundationsInappropriate legislative and policy frameworkLack of strong and independent workers’ and employers’ organizationsLack of technical knowledge and capacity as well as access to informationLack of capacity to reconcile interests + deliver on agreementsLack of political will to engage in social dialogue

What is the What is the Meaning of the Meaning of the term “Informal term “Informal Economy”?Economy”?

Informal Economy: The ILO DefinitionInformal Economy: The ILO Definition

international labour conference in 2002 indicate that the term “informal economy” refers to:

““All economic activities by workers and economic All economic activities by workers and economic units that are – in law or in practice – not covered or units that are – in law or in practice – not covered or insufficiently covered by formal arrangements.” insufficiently covered by formal arrangements.” These activities are:- Not included in the law, which means that they are operating outside the formal reach of the law;

- Or they are not covered in practice, which means that – although they are operating within the formal reach of the law, the law is not applied or not enforced; or

- The law discourages compliance because it is inappropriate, burdensome, or imposes excessive costs” (paragraph 3)

The Informal Economy – The Informal Economy – what we know?what we know?

Persisting and expanding [informal economy [informal economy remains widespread in most developing remains widespread in most developing countries]countries]

Close correlation between being poor and working informally [working poor][working poor]

Women and youth are often disproportionately represented in the informal economy

Workers in the informal economy are either not covered or insufficiently covered by social security systems

Cumulatively informal economy activities contribute significantly to economic growth

Categories of Workers in the Informal EconomyCategories of Workers in the Informal Economy

Unregistered workers Unregistered workers (those in a genuine employment relationship but who do not enjoy any rights - the situation is worse if they are irregular migrants or if their employer is unregistered);

Under-registered workers Under-registered workers (those who receive part of their earnings informally – they are registered as part-time workers but in fact work full-time – which means that less taxes are paid on their behalf);

Disguised workers Disguised workers (those who perform the same tasks as ‘regular’ employees but often do not have the same rights because they are employed under different contracts such as sub/contracts);

Ambiguous workers Ambiguous workers (those about whom doubts are raised concerning whether they are employees or not);

Categories of Workers in the Informal EconomyCategories of Workers in the Informal Economy

Vulnerable own-account workers Vulnerable own-account workers (those who are genuinely self-employed but vulnerable and exploited);

Employees in precarious situations Employees in precarious situations (fixed-term, part-time or temporary workers who may not enjoy the same rights as ‘regular’ workers, or do not enjoy the same rights in practice);

Special cases Special cases (domestic workers, home workers, and other types of workers who are not always covered by employment laws); and

Workers in triangular relationships Workers in triangular relationships (often, one does not know who the employer is because of the involvement of one or more third parties to the relationship; this includes situations where one resorts to an employment agency, or where there is franchising – see brief on the employment relationship).

Other Specific GroupsOther Specific Groups

Indigenous and tribal peoples

Workers with disabilities

Workers affected by HIV and AIDS

Ex-offenders

Relative Size of the Informal Economy Relative Size of the Informal Economy

The informal economy worldwide comprised: - 78% of non-agricultural employment in Asia; - 52% in Latin America; and - 56% in Africa.

60 to 90% of Africa’s active labour force is in the informal economy, which also accounts for 93% of new jobs in Sub-Saharan Africa

Excluding agriculture, informal economy represents 37.7% of total GDP in Sub-Saharan Africa, 30.4% in North Africa, 26.8% in Asia and 25.9% in Latin America.

Women’s share of worldwide informal employment fluctuates between 60 and 80%.

In Sub-Saharan Africa, 84% of women workers outside agriculture are informally employed compared to 63% of male.

Reasons for InformalityReasons for Informality

Demand-side Causes [pull-effects]Demand-side Causes [pull-effects]Capital intensive growth which orients public and private support institutions away from SMEs

Needs of urban poor for cheap goods and services

Avoidance of high taxation

Governments’ avoidance of social protection burdens

Bribery and cumbersome procedures for formalization

Less incentives for OSHE investment

Avoidance of trade unions

Continues…Continues…

Supply-side Causes [push-effects]Supply-side Causes [push-effects]Internal constraints brought about by povertyInadequate human capital accumulation [low education and training and ability to manage risks and income]Difficulty [or impossibility] to find employment with formal employersEconomic restructuring processes including privatization leading to shrinkage of employment and wages in public servicesPopulation growth and migrationMis-match between demand and supply in the labour marketThe scourge of the HIV and AIDS epidemic

Continues…Continues…

On the External EnvironmentOn the External EnvironmentGlobalization and greater competiveness that force companies to rely on:

Atypical and non-standard work arrangements that are less costly to employers [But results in greater [But results in greater precariousness for workers]precariousness for workers]

Financial and economic crises [austerity [austerity policies] policies] create new pressure on formal employment and often result in the expansion of the informal economy

What Are the Main What Are the Main Challenges Faced by Challenges Faced by Trade Unions in Trade Unions in Organizing Workers Organizing Workers in the Informal in the Informal Economy? Economy?

The Main Challenge for Trade The Main Challenge for Trade UnionsUnions

Workers in the informal economy:Are diverse, do not represent a uniform group and may have obvious differences of interests

May not share common interests with the majority of current union members e.g. issues of ethnic, family and kinship ties may be stronger among such workers than working class solidarity

Are so caught up in the daily struggle for survival and they are not inclined to join in protracted collective action

Are often not covered by existing labour legislation and regulation

Continues… Continues…

The highly insecure and precarious nature of their work means that they are often too worried about losing their jobs to join a union

Domestic and home-based workers as well as those in micro-enterprises, may be hard for unions to contact and to mobilize — organizing drives can be costly and difficult and time and resource consuming

Many unions do not have tested strategies for organizing workers in the informal economy

Trade Trade Union Union StrategiesStrategies

Continues…Continues…

Political will and clarity of direction: getting TU leadership to prioritize the organization of workers in the informal economy FOA is both a fundamental right and a key stepping stone to

the realization of other dimensions of decent work C87 and C98 apply to all workers, including workers in the informal economy

Legal changes: unions need to lobby for necessary changes to the laws to incorporate workers and economic units in the informal economy into mainstream economy.

Constitutional changes: changing trade union constitutions where this is the obstacle to organizing workers in the informal economy

New organizing strategies that are more appropriate for reaching out to workers in the informal economy

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Continues…Continues… Appropriate policies and services: becoming acquainted

with and devising services for workers in marginalized sectors and for the self-employed

Address decent work deficits in the informal economy: includes actions to improve earnings, working condition, income security, promote social dialogue and expand social security coverage through tax-financed systems

Lower the cost of transition to formality [and increase benefits of formalization] through the creation of an enabling policy and regulatory environment

Promote active labour market policies to assist workers in the transition to formality

Advocate for explicit formalization obligations for labour inspection services

Continues…Continues…

Affirmative action: Within the union structures Putting women’s demands to the top of the bargaining agenda Changing cultures, customs and practices that are inimical to

women’s empowerment Learning from those doing it already:

Through exchange visits or other engagement to benefit from the experiences of those who are already organizing in the informal economy and thus avoid some of the mistakes and replicate the more successful strategies — rather than re-invent the wheel.

Organizing workers in the informal economy as workers and as equals

Joint campaigns

Continues…Continues…

Tackling globalization: workers need to confront the negative consequences of globalization in a unified way

Taking a lead in civil society: if trade unions are sufficiently representative of the working people they will become the natural leaders of any civil society movement.

THE ENDTHE END

QUESTIONSQUESTIONS

Conclusions:

The ILO will continue to intensify its research and policy advise on the links between economic growth, employment and social inclusion under different circumstances, stages of development in response to crises and transitions