INTER-AMERICAN MECHANISM TO PROMOTE

DECENT WORK

LABOUR PANORAMA

UNEMPLOYMENT RATE

1993 2000 2003 2004WORLD 5.5%* 6.3% 6.1%AMERICA 6.6% 6.5% 7.7%LA and C 6.9% 9.3% 8.6%LA & C Urban 6.3% 8.5% 11.1% 10.4%NORTH AMER. 7.4% 4.3% 6.2% 5.7%Sources: ILO, BLS, www.statcan.ca, self-elaborated *1994

LABOUR PANORAMA

UNEMPLOYMENT

• Unemployment rate for youths (15 to 24 years of age) in Latin America and the Caribbean raised from 12.4% in 1993 to 17.6% in 2004 (world average: 13.1%);

• Unemployment rate for youths (16 to 19 years of age) in the United States raised from 3.1% in 2000 to 17% in 2004;

• Unemployment rate of 10.1% for women and 6.7% for men in 2003 in Latin America and the Caribbean.

LABOUR PANORAMA

SOCIAL PROTECTION

LATIN AMERICA AND THE CARIBEEAN

• In the period from 1990 to 2002, 7 of each 10 new working posts originated from the informal sector;

• Informality has grown from 42.8% in 1990 to 46.7% in 2003.

LABOUR PANORAMA

ACTUAL INCOME

• Actual reduction of 10.9% in the salaries at the industry, when comparing 2003 to 2001 in Latin America;

• In Canada, the actual minimum wage had a 7.1% drop when comparing 2003 to 2000;

• In the United States, the actual minimum wage had 11.3% a reduction when comparing 2003 to 1998;

LABOUR PANORAMA

DISCRIMINATION

• United States (2004): the unemployment rate of blacks and Hispanics was respectively 10.4% e 7%, while the rate for whites was 4.8%. Among the black young people, from 16 to 17 years of age, the unemployment was 37.8%;

• Women and certain ethnic groups (blacks and indigenous) the Latin Americans have the highest unemployment rates and an income below the society’s average.

LABOUR PANORAMA

CHILD LABOURLATIN AMERICA AND THE

CARIBBEAN

• In 2000, there were 17.4 million children economically active between 5 and 14 in the Latin America and the Caribbean region;

• Between 5 and 17, this number reaches 27.7 million.

LABOUR PANORAMA

POVERTY

• The total number of poor people in Latin America raised from 135.9 million in 1980 to 221.4 million in 2002 (40.5% to 44% of the population);

• In the United States, the rate of poverty raised from 11.3% in 2000 to 12.5% of the population in 2003, i.e., it raised from 31.6 million to 35.9 million.

Income Distribution - LAC x Indus.

48,0%

29,0%

1,6% 2,5%

0,0%

20,0%

40,0%

60,0%

ALeC Indus.

% d

a re

nd

a to

tal

10% mais ricos

10% maispobres

LABOUR PANORAMA INEQUALITY

LATIN AMERICA AND THE CARIBBEAN

US Income Distribution(Richest 5%)

-

5,0

10,0

15,0

20,0

25,0

1980 1983 1986 1989 1992 1995 1998 2001

% d

a r

en

da t

ota

l

LABOUR PANORAMA INEQUALITY

LATIN AMERICA AND THE CARIBBEAN

LABOUR PANORAMA

DECENT WORK DEFICITLATIN AMERICA AND THE

CARIBBEAN

• The decent work deficit, on absolute terms, reached 93 million workers in 2002, 30 million more than in 1990;

• The decent work deficit in this region jumped from 49.5% in 1990 to 51% of EAP in 2003.

POLICIES FOR THE PROMOTION OF DECENT WORK

Decent Work Promotion

• “To stimulate the generation of jobs with social protection, respect to the fundamental labour rights and through social dialogue”

• The objective requires policies at several levels: macroeconomic and global labour world.

POLICIES FOR THE PROMOTION OF DECENT WORK

Labour World

• Expansion of protection or social security;

• Labour relationships stimulating productivity;

• Corporations’ strengthening, especially the micro and small companies, for the improvement of the working conditions;

POLICIES FOR THE PROMOTION OF DECENT WORK

Labour World

• Promotion of equity and combat of all kinds of discrimination: genre, race/ethnics, age and others;

• Combat of the worst forms of exploration, especially the child and forced labour;

• Social Dialogue.

POLICIES TO PROMOTE DECENT WORK

National Level – Macroeconomic Environment

• Revision of the macroeconomic policies on behalf of development;

• Sustained Economic Growth;

• Integrated focus of the economic and social policies.

POLICIES TO PROMOTE DECENT WORK

Global Level

Inclusive globalization:To maximize and improve the distributions

among countries;To minimize costs and avoid their

concentration in the society’s most vulnerable groups.

INTER-AMERICAN MECHANISM TO PROMOTE DECENT WORK

MIPTRADE: set of actions to promote decent work in the ambit of a global strategy, which would require the formulation of Plans to Promote Decent Work at the National and the Americas’ levels as a whole.

MIPTRADE

REQUIRED INVESTMENT

According to ILO’s estimates, the cost to eliminate the decent work deficit in Latin America and the Caribbean increased from 18.1% in 1990 to 18.5% of the GDP in 2002 (US$ 314 billion);

MIPTRADE

REQUIRED INVESTMENT

• Recommendation from ILO to Latin America and the Caribbean; Investment of US$ 17 billion/year during 5 years (0.1264% of the Americas’ GDP);

• This amount does not include the cost of reduction of the decent work deficit in North America and the costs of MIPTRADE’s management;

MIPTRADE

REQUIRED INVESTMENT

 

Segment of the population considered

in each country

Total Income witheld by segment

% of income corresponding to US$ 17

billion

Total Population US$ 13.4 trilhões 0..3

Only the 20% richest US$ 6.8 trilhões 0.25

Only the 10% richest US$ 4.3 trilhões 0.40

Only the 5% richest US$ 2.8 trilhões 0.60

Source: Self elaborated based on data from World Bank, Report: Inequality in Latin America and the Caribbean (2003); CEPAL, Social Panorama 2002-03; US Census Bureau, Report: Money Income in The United States (2002); Commission for the Labour Cooperation, Report: North America Labor Markets - Main Changes Since NAFTA (2003).

MIPTRADE

GENERAL STRATEGY

MIPTRADE must be inserted into a general strategy to promote decent work, expressed in National and Inter-American Plans.

MIPTRADE

PLANS TO PROMOTE DECENT WORK

Basic points

• Status of decent work;

• Definition of priorities and objectives;

• Elaboration of policies to attain objectives;

• Monitoring and Evaluation Procedure.

MIPTRADE

STRATEGY MANAGEMENT

Systemization

CONATRADE

CINTRADE

ILO

National Plans

Directives for National Plans

Inter-American Plan

ILO/CIMT

a) Inter-American Fund to Promote Decent Work– FIPTRADE;

b) New lines of financing in the international organisms specific for the generation of decent work;

c) Application of a portion of Social and Development Funds;

d) Investment Coordination;

e) Technical Cooperation.

MIPTRADE

LINES OF ACTION

MIPTRADE

APPLICATION• Generation of Decent Work;• Promotion of Employment and Workers’ Qualification;• Strengthening of Labour Institutions;• Assistance to Workers affected by the trade

liberalization;• Equality of Opportunities;• Social Dialogue and Dermocratization of Labour

Relationships;• Combat child and slave work;• Work Quality.

MIPTRADE

FINANCING ALTERNATIVES

I – Defined contribution of state-members

II – Increase of funds from international organisms dedicated to the Americas

III – Entailment of specific income source at the international sphere

IV – Voluntary donations from governments and society

MIPTRADE is fundamental to the search for decent work for the workers in the Americas. Decent Work is an instrument for overcoming poverty and social inclusion