the xvi american regional meeting of the ilo and the hemispheric agenda for the promotion of decent...

The XVI American Regional Meeting of the ILO and the Hemispheric Agenda for the Promotion of Decent Work

Meeting of the XIV IACML Working Groups:“Special Joint Session”

Mexico City, April 5, 2006

STRUCTURE OF THE PRESENTATION

About the XVI ARM

Context and Principal Challenges for the Promotion of Decent Work

The Hemispheric Agenda for the Generation of Decent Work

Policies

Country Decent Work Programmes

About the XVI ARM

Previously, the report of the Director-General has been presented at the meeting, and debates were not related to the content of the report; long negotiations of a document of conclusions with low practical effect.

For the XVI ARM: Inform the constituents on the content of the Report of the Director-

General with sufficient advance notice, and so the Groups of Workers and Employers can go to the ARM with a preliminary point of view on the nature of the Report (preparatory hemispheric workshops with representatives of the organizations of workers and employers).

Changes in the report itself: Proposal of a set of general policies and policies in specific areas of

intervention that have specific goals and objectives and concrete policy proposals.

To leave the XVI ARM with recommendations to the governments based on the proposals presented in the report of the D-G, and to orient the assistance and cooperation of the ILO to implement the policy recommendations.

Political Context

The creation of decent work has become one of the major democratic demands of our times.

The lack of decent work is among the principal problems faced by the countries of the Americas. In the most recent survey by Latinobarómetro, unemployment is mentioned as

the most important problem in 15 of the 18 countries surveyed. According to this survey, 75% of the workers in the region fear they will be left

without work in the next 12 months.

Hemispheric leaders have recognised that decent work plays a central role in the hemispheric agenda. Salamanca Iberoamerican Summit.

IV Summit of the Americas.

UN World Summit.

Economic and Labour Context Clear economic recovery the last years impelled by an

export boom, but not sufficient to significantly revert the high unemployment, informality and lack of social protection. GDP growth of LA and C: -0.8% in 2002, 2.0% in 2003, 5.9% in 2004

and 4.3% in 2005. A 4% to 4.5% increase is expected in 2006. Unemployment continues to be high (9.6% in LA and 10.3% in the

Caribbean); a high participation by the informal sector (47% of non-agricultural employment, 61 of every 100 new jobs is informal) and low social protection coverage (only 5 of every 10 wage earners have social protection) persist.

Export type of growth seems to be insufficient to alter the most important structures of the labour market and to create work opportunities for all.

Economic and Labour Context

Deficit of formal employment (53% of the EAP of LA). 23 million unemployed and 103 million in the informal sector

Labour productivity low and with very slow growth rate (0.21% between 1990 and 2005).

The lack of decent work translates into a high level of social exclusion (poverty and inequality). The poor in Latin America exceed 210 million people, with

almost 90 million being indigent.

The richest 10% earn one-third of the total income, while the poorest don’t reach 2%.

Economic and Labour Context

Unemployment, poverty and inequality also affect North America: Unemployment in the U.S.: from 4% in 2000 to 5.1% in 2005; the absolute number of

unemployed grew 33% between 2000 and 2005. Greater unemployment among youth (3.5 times > than the average) and among African

Americans (10%), especially African American youth (six times > than the average). 6.8% unemployment in Canada (2005) is similar to 2000: (8% growth in the number of

unemployed). Greater incidence among youth (12.4% between 15 and 24 years old and 16.5% between 15

and 19 years old). In the U.S., poverty grew from 11.3% in 2000 to 12.7% in 2004 (37 million people), it is higher

among Blacks and Hispanics, especially those under 18 years old. Increase in inequality in the U.S.: Gini Coefficient: from 0.428 in 1990 to 0.466 in 2004. * Source: Bureau of Labour Statistics (BLS), the same as ILO / Laborsta. ** Source: "Statistics Canada” ( www.statcan.ca ), the mismo as ILO / Laborsta. *** Nevertheless, (as in all countries in the Americas), it is possible to reach much lower percentages (for ex.

5.1% in the study of Jacobs Besharov for the US), although increasing if effects of social transfer of a fiscal nature, such as Medicaid for the poor, unreported income are taken into account.

Principal Challenges for the

Generation of Decent Work That economic growth promotes decent work.

A sustained growth rate of at least 5.5% annually is necessary if the region’s gigantic deficit in formal employment is not to increase.

Fundamental problem: low labour productivity.

The effective application of fundamental principles and rights at work (FPRs). Gap between their level of ratification and their effective

achievement.

Principal Challenges for the Generation of Decent Work

Generate confidence in democracy and social dialogue.

The poor results obtained due to the lack of sufficient economic growth generate a lack of confidence in democracy.

The promotion of democracy and social dialogue in general and in the labour market (collective bargaining) are essential.

The labour market as a space that is necessary for democracy to be in equilibrium.

Principal Challenges for the Generation of Decent Work

Increase and strengthen workers’ social protection schemes. Low coverage by social protection schemes (number of

workers, risks covered and the quality of protection) in LA.

Increase social and labour inclusion to reduce inequality. Latin America is the region with the highest concentration of

income in the world. A great challenge is the reduction of the levels of poverty

and social exclusion that are found in the labour market. Inequality has increased in most countries and has lessened

slightly in some others.


2006-2015I. What is it?

It is a joint strategy of policies that combine economic, legal, institutional and labour market actions, whose implementation will

permit progress in the promotion of decent work for all.

II. What does it contain?

The Hemispheric Agenda is composed of three basic elements:

General policies for the achievement of the strategic and transverse objectives that orient the generation of decent work.

Policies in specific areas of intervention that reinforce the general policies.

Country Decent Work Programmes (CDWPs).


2006-2015I. General policies for the achievement of the strategic and transverse objectives

II. Policies in specific areas of intervention

III. Country Decent Work Programmes (CDWPs)

Economic growth to promote greater employment opportunitiesEffective respect for the FPRsImproved efficiency and coverage of social protectionEffective social dialogue

International Labour Standards / Gender equity / Youth employment / Small and micro-enterprises / Informal economy / Rural sector and local development / Professional Training / Employment services / Salaries and remunerations / Social security in the workplace / Migrant Workers

Public policies and the CDWPsInstitutional aspects of the CDWPs


2006-2015 Strategic

Objectives

Transverse Objectives

Effective fulfilment of the FPRs

Generation of greater employment opportunities for men and women

Increase and strengthen workers’ social protection systems

Promotion of social dialogue and strengthening of social actors

Overcome poverty and social exclusion

Promote equality, especially in terms of gender

More influence for International Labour Standards (ILSs)

More influence for social interlocuters, social dialogue and tripartism

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GENERAL POLICIES

STRATEGIC ANDS TRANSVERSE OBJECTIVES

SPECIFIC POLICIES Promotion of Development with

Decent Work

DECENT WORK STRATEGIES / NATIONAL PLANS

COUNTRY DECENT WORK PROGRAMS

Governments and Social actors

ILO technical assistence

HEMISPHERIC AGENDA FOR THE PROMOTION OF DECENT WORK

Relation of General and Specific Policies

Policy Areas

General Policies Standard Social Inclusion and Equity Quality Employment Social Protection

Growth as promoter of employment

International Labor Standards + +

Youth Employment +

Small and Microenterprises +

Informal Economy +

Rural Sector and Local Development +

Profesional Training +

Employment Services +

Salaries and Remunerations +

Effective respect for the Fundamental Principles and Rights in the Workplace

International Labor Standards +

Gender Equity +

Improved efficiency and coverage of Social Protection

International Labor Standards + + +

Migrant Workers + Small and Microenterprises + +

Informal Economy + +

Rural Sector and Local Development + +

Security and Health in the Workplace +

Effective Social Dialogue

International Labor Standards + + + +

Gender Equity + +

Youth Employment + +

Migrant Workers + +

Small and Microenterprises + + +

Informal Economy + + +

Rural Sector and Local Development + + +

Profesional Training + +

Employment Services + +

Security and Health in the Workplace + +

General Policies for Promoting Development with Decent Work

I. Economic growth to promote more employment opportunities

Objective: The generation of greater opportunities for employment (strategic objective 2 of the ILO) must be considered as the central objective of economic policy.

Goal: Attain economic growth of at least 5% annually during the next 10 years in a sustainable and non-fluctuating way, as a necessary condition to promote decent work.

Policies:

- Group of economic measures that are integrated at the macro-, meso- and micro-economic levels, to make growth a greater promoter of employment.

ECONOMIC POLICIES TO PROMOTE GROWTH WITH EMPLOYMENT

Macroeconomic Mesoeconomic Microeconomic

Fiscal

Promotion of structural equilibrium in public finances

Elevate the capacity of counter-cycle actions (stabilization funds)

Monetary

Preservation of price stability, as well as interest rates that are less restrictive on growth

Development of instruments for the prudent management of capital flows

Exchange Rate

Maintenance of exchange rate bands that are concordant with the bands of inflation (real competitive and stable exchange rate)

Development of production clusters and networks

Promotion of exports and tourism, and strengthening of integration and trade agreements

Legal framework, incentives for productive investment and infrastructure

Development of the financial system and capital markets

Development of the service sector

Development of the rural and agro-forestry sector

Policies to facilitate the adoption of innovation

Improve the quality of basic education and career training

Labor stability and development of the collective bargaining model

Articulation, productivity and development of small and microenterprises

Modernization of company strategies


Specific Policies to reinforce economic growth that promotes greater employment opportunities:

Productive Development• Small and Micro-enterprises• Informal Economy• Rural Sector and Local Development

Efficiency and Equity in the Labour Market• Professional Training• Employment Services • Salaries and Remunerations

Youth Employment


II. Effective respect of the fundamental principles and rights at work Objective: Achieve effective respect of the fundamental principles

and rights at work (strategic objective 1 of the ILO).

Goal: The fundamental rights constitute a minimum and universally accepted body of labour rights incorporated into the national legislation and in the work culture of the various countries in the region.

Policies: Complete the ratification. Strategy of effective application.


Fundamental Rights: Objectives and Goals

Policies Objectives Goals

Child Labor Gradual elimination of child labor. 1. Eliminate the worst forms of child labor in a period of 10 years (2015). 2. Eliminate child labor completely in a period of 15 years (2020).

Forced Labor Gradual elimination of forced labor. In a period of ten (10) years, reduce between 20% and 35% the number of workers in forced labor.

Freedom to organize trade unions and to collective bargaining

Improve the fulfillment of the fundamental rights through progress in guaranteeing the various elements of the freedom to organize trade unions, in particular, non-discrimination against labor unions, and to optimize the coverage of collective bargaining and broaden its scope.

Legislation with better elements of trade union protection, especially administrative and judicial procedures and resources that are effective and expeditious in cases of violation of these rights. Also improve of the quality in the agreements, in the number of workers covered (a minimum 10% increase nationwide) and broadening their contents (for example, including clauses on productivity) and in the independent solution of conflicts.

Non-discrimination and equity in the workplace

Gradual elimination of mechanisms of discrimination in the labor market.

Reduce by 50% the indices of segregation and the income differentials by gender and ethnic-racial origin with respect to current levels in a period of ten (10) years.


Specific Policies that reinforce effective respect for the fundamental principles and rights at work:

International Labour Standards

Gender Equity

General Policies for Promoting Development with Decent WorkIII. Improved efficiency and coverage of social protection

Objective: Increase and strengthen the various workers’ social protection schemes (strategic objective 3 of the ILO).

Goal: Increase the coverage of social protection by 20% in a period of ten (10) years.

Policies: Define priorities for coverage in terms of target population and priority risks to be covered. Identify the most cost effective instruments for social protection, taking into account the heterogeneity of the labour market and the demographic structure. Institutional strengthening to optimize the management of social protection. Promote social dialogue for the processes of social security reform.

General Policies for Promoting Development with Decent WorkIII. Improved efficiency and coverage of social protection

Priority actions on social protection

► Generate and increase policies to extend coverage (protection of unprotected and most

vulnerable groups).

► Promote the integration of social protection in labor policies.

► Prioritize technical support for a select group of policies on protection that are suitable to the countries’ demographic and labor realities.

► Encourage the design and management of social protection by workers’ group (completely informal, completely formal, or intermediate).

► Support policies to increase the collection and reduce the evasion of contributions to social security.

► Limit the discretionary policy intervention in the programs.


Specific Policies that reinforce the efficiency and coverage of social protection :

Migrant Workers

Security and Health in the Workplace

General Policies for Promoting Development with Decent WorkIV. Effective social dialogue

Objective: Promote the institutionalization of voluntary social dialogue (strategic objective 4 of the ILO).

Goal: Promote all the countries of the region taking actions to strengthen social dialogue, so that in a period of no more than 10 years they have spaces of institutionalized social dialogue that are sustained on voluntary bases.

Policies: Generate an adequate framework for collective bargaining and achieve commitments by the corresponding social actors on the need to generate a systematic and permanent push to increase productivity.

Strengthen the capacity of the States to enable them to undertake processes of dialogue.


The policies proposed in the framework of the Hemispheric Agenda for the Generation of Decent Work present a combination of elements that should be analyzed and evaluated in each country to determine priorities and establish specific objectives and programmatic strategies. The selection of these proposals, together with others that each country defines, should be part of a National Plan for Decent Work (NPDW) as part of the national development strategy.

The commitment of the ILO is to place its knowledge, instruments and mobilization potential at the service of its tripartite constituents via Country Decent Work Programs (CDWPs) in support of the development of country strategies and policies.


Another key is the development of the institutional capacities for the application of the policies. This includes a stronger labour authority, greater and better knowledge of the structure and the operation of the labour market, greater stability and continuity of public institutions, the integration of policies and their adequate and articulated management, strengthened workers and employers organizations, and the institutionalization of the integration processes.


Objectives and Goals:

Policies Objectives Goals

Public policies and Country Decent Work Programs (CDWPs)

Promote decent work as the objective of the development strategies of the countries in the region, contribute to the design of national plans for the generation of decent work and implement a specific ILO action program in each country to support putting these national plans into practice.

The design and execution, beginning in 2006, of national strategies to promote decent work in all the countries of the region, as well as of Country Decent Work Programs to support these national strategies.

Institutional aspects of the CDWPs

Develop the institutional capacities required to implement the policies in the CDWPs.

Develop in the next 10 years: 1. Increased capacity for the management of labor policies; 2. Organizations of social actors that are more solid and developed, and the strengthening of social dialogue; 3. An institutionalization of a solid labor authority, with an ability to detect infractions that is 50% higher than at present; and 4. Increased knowledge of the functioning of the labor market and working conditions, with integrated and modern systems of labor statistics.


Policies:

Public policies and Country Decent Work Programs (CDWPs) Institutional aspects of the CDWPs

The Country Decent Work Programs (CDWPs) that express the objective of the national policy of the governments and the social interlocuters are important instruments to start up the national strategies to generate Decent Work.

The CDWPs must be part of - and establish synergies with - the national development plans and the frameworks of current national and international programming for the reduction of poverty and the promotion of development.

The CDWPs must define a strategy of promotion according to the country’s particularities and with the concurrence of key actors (governments, workers’ and employers’ organizations).

Strengthen and modernize the administration of the workplace (work inspection, labor relations and labor market policies).

Foster stability and continuity of public institutions and their technical teams.

Strengthen the organizations of employers and workers and their disposition to dialogue (increase affiliation campaigns, remove the administrative and legal obstacles to the creation of labor unions or business associations, and eliminate anti-union practices).

Integrate and articulate the various public policies around a long-term vision, with the objective of growth and decent work (integrate the Ministries of Labor and Education in the economic cabinets; create spaces for public dialogue on these policies; and involve the academic community in the processes of design and formulation of public policies).

Increase and improve knowledge of the labor market and working conditions;

Strengthen the institutionality of the processes of integration (incorporate the implementation of the hemispheric agenda into the institutions created from the various integration processes).

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