Transcript Workers’ Activities Programme

ILO Mandate within an
Evolving Global Political and
Socio-Economic Environment
Presentation to the GLU Postgraduate Students
Wits, 13th May, 2014
By: Inviolata Chinyangarara
ILO Senior Specialist in Workers’ Activities
PRESENTATION OUTLINE
 Labour
in the global economy
 How 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 Mandate
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The ILO is the UN tripartite agency dealing with labour
issues and has 185 member States (latest member: S.
Sudan)
It was founded in 1919, at the end of the first world war
It core Mandate is to promote social justice and decent
work for all.
Normative action (setting ILS and supervising their
application in member States) + Technical Cooperation +
Research, Training and Information
The main bodies of the ILO are:
o
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International Labour Conference (General Assembly)
Governing Body (Executive Council )
International Labour Office (Permanent Secretariat)
FOUNDING PRINCIPLES OF THE ILO
Declaration concerning the aims and purposes
Of 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”
“Poverty anywhere constitutes
a danger to prosperity
everywhere”;
“Lasting peace can be
established only if it is based
on social justice”;
“Labour is not
commodity”;
What is
Decent
Work
Agenda?
Decent Work Agenda
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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 DWA
Continues…

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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
Decent
Work?
Continues…
Work that is productive,
gives fair income,
security in the workplace and social protection for
the family,
equal opportunities and treatment,
better prospects for personal development and
social integration, freedom to organise and
participate in
decision making
Concept of Decent Work encompasses both
individual and collective dimensions (C 87 & 98)
What is Decent
Work Country
Program:
DWCP?
DWCP - Definition

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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]
How are DWCP Formulated?:
A 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
Decent
Work
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

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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…
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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 +
cheap production for export – the current
global model
Continues…
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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


The richest 1% of the world’s population owns about 40% of
the world’s assets
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While the remaining 92% of people are left with the other half
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…

Increased vulnerability and economic insecurity
with a rise in unconventional and precarious jobs
such as:
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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
World Map on Vulnerability
23
Trends Impacting Vulnerability of Work
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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
55.1
2007
10 Guatemala
Source: CIA: the World Fact Book
Work Areas of the ILO in Addressing
Employment Deficits
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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
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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??
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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 macroeconomic policies. This selection was arrived at based on
current existing capacity within XXXX.
To what extent are TUs effectively
playing their policy influence role??
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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…
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.]

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Child labour:
 168 children worldwide are trapped in child labour [85
million are in involved in hazardous work – down
from 171 million in 2000]
Forced labour: approximately 21 million people are victims
of forced labour [11.4m women + girls and 9.5m men
and boys]
Victims of Forced Labour by Region
Victims of forced labour by region
Continues…
Social Protection Gaps
Limited social protection measures have
worsened economic insecurity and vulnerability:
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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
Continues…
Occupational Safety and Health Gaps
 2.34 million people die from work-related accidents + diseases each
year
 2.02 million people die each year from work-related diseases alone
 321,000 people die each year from occupational accidents
 Non-fatal work-related injuries: 317 million
 Non-fatal work-related diseases per year: 160 million
This means that:
 Every 15 seconds, a worker dies from a work-related accident or
disease
 Every 15 seconds, 151 workers have a work-related accident
Critical Sectors
Agriculture
Mining
Construction
Informal Sector (accounted for >90% of New Jobs in
African countries in the last decade)
More than 80 feared
dead in --- mining
accident
Continues…
Social Dialogue Gap:
Gap
in freedom of association
Lack of democratic foundations
Inappropriate legislative and policy framework
Lack of strong and independent workers’ and
employers’ organizations
Lack of technical knowledge and capacity as well
as access to information
Lack of capacity to reconcile interests + deliver
on agreements
Lack of political will to engage in social dialogue
What is the
Meaning of the
term “Informal
Economy”?
Informal Economy: The ILO Definition

international labour conference in 2002 indicate that the
term “informal economy” refers to:
“All economic activities by workers and economic units
that are – in law or in practice – not covered or
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 – what we know?
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Persisting and expanding [informal economy
remains widespread in most developing
countries]
Close correlation between being poor and working
informally [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 Economy

Unregistered workers

Under-registered workers
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Disguised workers
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Ambiguous 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);
(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);
(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);
(those about whom doubts are raised
concerning whether they are employees or not);
Categories of Workers in the Informal Economy

Vulnerable own-account workers

Employees in precarious situations

Special cases

Workers in triangular relationships
(those who are
genuinely self-employed but vulnerable and exploited);
(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);
(domestic workers, home workers, and other
types of workers who are not always covered by employment laws);
and
(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 Groups

Indigenous and tribal peoples

Workers with disabilities

Workers affected by HIV and AIDS

Ex-offenders
Relative Size of the Informal Economy
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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 Informality
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’
Bribery
Less
avoidance of social protection burdens
and cumbersome procedures for formalization
incentives for OSHE investment
Avoidance
of trade unions
Continues…
Supply-side Causes [push-effects]
Internal
constraints brought about by poverty
Inadequate human capital accumulation [low education
and training and ability to manage risks and income]
Difficulty [or impossibility] to find employment with formal
employers
Economic restructuring processes including privatization
leading to shrinkage of employment and wages in public
services
Population growth and migration
Mis-match between demand and supply in the labour
market
The scourge of the HIV and AIDS epidemic
Continues…
On the External Environment
Globalization 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
precariousness for workers]
 Financial
and economic crises [austerity
policies] create new pressure on formal
employment and often result in the expansion
of the informal economy
What Are the Main
Challenges Faced by
Trade Unions in
Organizing Workers
in the Informal
Economy?
The Main Challenge for Trade
Unions
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…
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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
Union
Strategies
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
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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
Continues…
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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
51
Continues…
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Affirmative action:
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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:

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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 reinvent the wheel.
Organizing workers in the informal economy as
workers and as equals
Joint campaigns
Continues…
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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 END
QUESTIONS
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