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

1. 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

2. 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

3. 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.

4. 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.

5. 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.

6. 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%.

7. 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.

8. 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.

9. 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.

10. 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.

11. The Hemispheric Agenda for the Generation of Decent Work 2006-2015 • 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. • 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).

12. General policies for the achievement of the strategic and transverse objectives Policies in specific areas of intervention Country Decent Work Programmes (CDWPs) Economic growth to promote greater employment opportunities Effective respect for the FPRs Improved efficiency and coverage of social protection Effective 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 CDWPs Institutional aspects of the CDWPs The Hemispheric Agenda for the Generation of Decent Work 2006-2015

13. 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 The Hemispheric Agenda for the Generation of Decent Work 2006-2015 • Strategic Objectives • Transverse Objectives

14. Hemispheric Agenda for the Promotion of Decent Work 2006 - 2015 e n d a H e m i s f é r i c a p a r a l a p r o m o c i ó n d e l T r a b a j o D e c e n t e 2 0 0 6 - 2 0 1 A g e n d a H e m i s f é r i c a p a r a l a p r o m o c i ó n d e l T r a b a j o D e c e n t e 2 0 0 6 - 2 0 1 5 STRATEGIC AND S TRANSVERSE OBJECTIVES GENERAL SPECIFIC Promotion of Development with POLICIES POLICIES Decent Work DECENT WORK STRATEGIES / NATIONAL PLANS Governments and Social actors COUNTRY DECENT WORK ILO technical assistence PROGRAMS

16. 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.

18. General Policies for Promoting Development with Decent Work SpecificPolicies 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

19. General Policies for Promoting Development with Decent Work 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.

20. General Policies for Promoting Development with Decent Work

21. General Policies for Promoting Development with Decent Work • Specific Policies that reinforce effective respect for the fundamental principles and rights at work: • International Labour Standards • Gender Equity

22. General Policies for Promoting Development with Decent Work • III. 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.

23. General Policies for Promoting Development with Decent Work III. Improved efficiency and coverage of social protection

24. General Policies for Promoting Development with Decent Work • Specific Policies that reinforce the efficiency and coverage of social protection : • Migrant Workers • Security and Health in the Workplace

25. General Policies for Promoting Development with Decent Work • IV. 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.

26. Country Decent Work Programmes • 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 theILO is to place its knowledge, instruments and mobilization potentialat the service of its tripartite constituents via Country Decent Work Programs(CDWPs) in support of the development of country strategies and policies.

27. Country Decent Work Programmes • 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.

28. Country Decent Work Programmes

29. Country Decent Work Programmes