Current crisis and the Global Jobs Pact
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1 Workshop on The Promotion of Responsible and Sustainable Enterprises in Business Education Current crisis and the Global Jobs Pact José Manuel Salazar-Xirinachs Executive Director, Employment Sector International Labour Organisation Geneva, Switzerland 18 February 2010
2 Objectives of this workshop Solidify Global Network, set objectives and develop work plan: Review program since 2009 workshop, including: Concept Paper on Locating the ILO Concept of Enterprise Sustainability within the CSR Discourse ; Knowledge Sharing Platform; Discuss further areas of possible cooperation between the ILO and business educators: Collaborative research Joint development of case studies and teaching/training materials ILO technical cooperation projects Agree on a collaborative work plan for
3 ILO Constitutional Mandates and Mission 1919: Promote Social Justice «Whereas conditions of labour exist involving such injustice, hardship and privation to large numbers of people as to produce unrest so great that the peace and harmony of the world are imperilled; and an improvement of those conditions is urgently required» «as for example: by the regulations of the hours of work, the prevention of unemployment, the provision of an adequate living wage, the protection of the worker against sickness, disease and injury, the protection of children, young persons and women, provision for old age, recognition of the principle of freedom of association, the organization of vocational and tecnical education.» (Preamble 1919 Constitution)
4 ILO Constitutional Mandates and Mission 1944 Declaration concerning the aims and purposes of the ILO (Philadelphia) Labour is not a commodity Poverty anywhere constitutes a danger to prosperity everywhere Lasting peace can be established only if it is based on social justice All human beings have the right to pursue both their material well-being and their spiritual development in conditions of freedom and dignity, of economic security and equal opportunity It is the responsibility of the ILO to examine and consider all international economic and financial policies and measures in the light of this fundamental objective
5 ILO Constitutional Mandates and Mission 1944 Philadelphia Declaration continued: It is a solemn obligation of the ILO to further programmes among the nations of the world which will achieve: Full employment and raising standards of living Facilities for training Policies in regard to wages and earnings and other conditions of work The effective recognition of the right to collective bargaining, the cooperation of management and labour in the continuous improvement of productivity The extension of social security
6 Defining CSR Corporate social responsibility is a way in which enterprises give consideration to the impact of their operations on society and affirm their principles and values both in their own internal methods and processes and in their interaction with other actors. CSR is a voluntary, enterprise-driven initiative and refers to activities that are considered to exceed compliance with the law. ILO Governing Body 2006
7 ILO Instruments referenced in CSR The Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy MNE Declaration (1977) ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up The 1998 Declaration (1998) ILO Declaration on Social Justice for a Fair Globalization The 2008 Social Justice Declaration (2008)
8 Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy ILO s only instrument that contains recommendations for enterprises in addition to Government: Adopted by ILO GB in 1977 (update 2006) Voluntary guidelines Only global tripartite instrument related to CSR Recognizes positive contribution MNEs can make to economic and social development Rooted in Social Dialogue Balances roles and responsibilities of governments, MNEs, employers and workers
9 1998 Declaration Commits all ILO member (whether or not respective conventions have been ratified) to promote and to realize fundamental rights on core labour standards: Freedom of Association and recognition of right to collective bargaining Elimination of all forms of forced or compulsory labor Effective abolition of child labour; and Elimination of discrimination in respect of employment and occupation.
10 Decent Work Decent work definition: Opportunities for women and men to obtain productive work in conditions of freedom, equity, security and human dignity. At the 2005 United Nations World Summit, heads of state and government declared, We strongly support a fair globalization and resolve to make the goals of full and productive employment and Decent Work for all, including for young people, a central objective of our national and international macroeconomic policies as well as poverty reduction strategies. In 2006 and again in 2007, the ECOSOC Ministerial Declaration called for the mainstreaming of Decent Work throughout the UN system.
11 ILO Decent Work Agenda Social Protection Links Social Protection- Economic and Social Policies Expansion of Social Security Improved conditions of work and Safer working environments Regulating Labour Migration Employment Inclusive-Job Rich Growth Policies to influence the demand-side Skills and employability Enterprise development Labour Market Institutions and Policies Informal Economy Global Initiatives Strengthening the response to HIV/AIDS Target groups: youth, women, vulnerable through the workplace Decent Work Country Programmes (DWCPs) Integrated approach to promoting good governance Standards Policy National Policy Frameworks/ DWCPs Strengthening Labour administration Fundamental principles and rights at work Strengthening employers organizations Strengthening workers organizations Social Dialogue Elimination of Child Labour Improved application of Int l Labour Standards Improved ratification and supervision of Int l Labour Conventions Standards and rights Regional Agendas/ Platforms
12 The 2008 Social Justice Declaration Declaration commits members to Decent Work Agenda, by: Promoting employment by creating sustainable institutional and economic environment Developing and enhancing measures of social protection Promoting social dialogue and tripartism Respecting, promoting and realizing fumdamental principles and rights at work Implementation calls for new partnerships, including with MNEs Affirms relevance MNE Declaration (1977) in globalized economy
13 2008 Declaration on Social Justice for Fair Globalization Particularly relevant in the present financial, economic and jobs crisis - a crisis of globalization? Raises the concept of Decent Work to constitutional level: the commitments and efforts of Members and the Organization to implement the ILO s constitutional mandate, including through international labour standards, and to place full and productive employment and decent work at the centre of economic and social policies, should be based on the four equally important strategic objectives of the ILO, through which the Decent Work Agenda is expressed. The four strategic objectives of the ILO are inseparable, interrelated and mutually supportive.
14 ILO Means of action Tripartism Standard Setting Promotion and supervision of compliance with standards Research Diagnostic tools to identify policy priorities Policy advise Capacity building Monitor trends Evaluation of policy impacts Integrated approaches Technical cooperation
15 Sustainability in times of Crisis The Global Jobs Pact
16 Global Jobs Pact: A Framework for Action The Global Jobs Pact contains a range of crisis-response and recovery measures that cover all four strategic objectives of the ILO. It is not a one-size-fits-all solution, but a portfolio of tried and tested policy options that countries can adapt to their specific needs and situation. Governments, and workers and employers organizations committed to work together to contribute to the success of the Pact and the Office committed to assist constituents who request support to utilize the Pact.
17 GJP has this structure Principles for promoting recovery and development A policy portfolio in four areas: Accelerating employment creation, jobs recovery and sustaining enterprises Building social protection systems and protecting people Stregthening respect for international labour standards Social dialogue: bargaining collectively, identifying priorities, stimulating action Way Forward: Shaping a fair and sustainable globalization 17
18 Employment measures listed are: Boost effective demand (maintain wage levels, stimulus packages) Help job seekers (targeted active labour market policies, strengthen public employment agencies, quality services of private employment agencies) Invest in skills development/upgrading/re-skilling Limit/avoid job losses and support enterprises retain workers Support job creation across sectors Support SMEs and microenterprises Support to cooperatives Use employment guarantee schemes, emergency public works, and other direct job creation schemes Supportive regulatory environment for sustainable enterprises Investment in infrastructure, R&D, public services and green production and services 18
19 Social Protection measures include Cash transfer schemes Building adequate social protection for all, drawing on a basic social protection floor Extending duration and coverage of unemployment benefits Ensuring the long-term unemployed stay connected to labour market Providing minimum benefit guarantees in countries with inadequate funding Providing adequate coverage for temporary and non-regular workers Helping vulnerable groups most hard hit by a combination of income support, skills development and enforcement of rights to equality and non-discrimination. Avoid deflationary wage spirals via social dialogue, collective bargaining, statutory or negotiated minimum wages. Regularly review and update minimum wages. Respect for negotiated wage rates. Narrow gender pay gaps. 19
20 Labour standards measures Increase vigilance to achieve the elimination and prevention of an increase in forms of forced labour, child labour and discrimination at work; Increase respect for freedom of association, the right to organize, the effective recognition of the right to collective bargaining. Vigilance over other relevant ILO instruments concern: e.g. wages, the employment relationship, the termination of employment, labour administration and inspection, migrant workers, occupational safety and health, working hours. ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy as a useful tool for all enterprises for responding to the crisis in a socially responsible manner. 20
21 Social Dialogue Social dialogue is vital especially in times of heightened social tensions. This constitutes a strong basis for building commitment of employers and workers to the joint action with governments needed to overcome the crisis and for a sustainable recovery. Actions taken and results achieved through social pacts, collective agreements, other outcomes on working time, wages, working conditions, employment protection by social partners at different levels, bi-partite or tripartite ; examples of measures to protect women workers through consultations of gender consultative bodies ; Strengthen capacities for labour administration and labour inspection 21
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