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WORKING GROUPS MEETING OF THE XIV IACML San José, Costa Rica, May 8-11, 2007

WORKING GROUPS MEETING OF THE XIV IACML San José, Costa Rica, May 8-11, 2007 . Presentation from Ministry of Labor of Ecuador in the Session “Promotion of micro, small and medium-sized enterprises”. THE REPUBLIC OF ECUADOR ECON. RAFAEL CORREA DELGADO CONSTITUTIONAL PRESIDENT

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WORKING GROUPS MEETING OF THE XIV IACML San José, Costa Rica, May 8-11, 2007

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  1. WORKING GROUPS MEETING OF THE XIV IACML San José, Costa Rica, May 8-11, 2007 Presentation from Ministry of Labor of Ecuador in the Session “Promotion of micro, small and medium-sized enterprises” MINISTERIO DE TRABAJO Y EMPLEO DE ECUADOR - 2007-2010

  2. THE REPUBLIC OF ECUADOR ECON. RAFAEL CORREA DELGADO CONSTITUTIONAL PRESIDENT OF THE REPUBLIC OF ECUADOR MINISTERIO DE TRABAJO Y EMPLEO DE ECUADOR - 2007-2010

  3. LAWYER: ANTONIO GAGLIARDO VALAREZO MINISTER OF LABOUR AND EMPLOYMENT OF ECUADOR MINISTERIO DE TRABAJO Y EMPLEO DE ECUADOR - 2007-2010

  4. IN ECUADOR …… • Fifty point four percent of its population are women, from them, 47% are self-employed, work as employees, or in the household. This is because their working age starts at 12 years old. • Working as employee marginalizes and turns unstable more women than men • Ignorance of the labour regulations is higher in women • Twenty-three percent work in trading issues, 19% under personal service contracts, and 39% in non-qualified employment • The instability process started in the 80’s and increased rapidly in the 90’s; starting from the dollarization, the process became drastically worse. • The so called “outsourcing” and “intermediation” influence the labour instability and the mediatization of the capacities of contractual bargaining. MINISTERIO DE TRABAJO Y EMPLEO DE ECUADOR - 2007-2010

  5. IN ECUADOR …. • The women workforce constitutes a mechanism of adjustment and transfer of resources in the economic recession due to its non-monetary contribution, wages differential and inelasticity of its labour supply. This does not only correspond to the low social strata. • Source: Women, Labour Market and Unstable Work in Ecuador . ALISON VÁSCONEZ CONAMU-ECUADOR MINISTERIO DE TRABAJO Y EMPLEO DE ECUADOR - 2007-2010

  6. THE ECUADORIAN GOVERNMENT • Through the Ministry of Labour and Employment is regulating the activity of intermediation and outsourcing. • Through the Constituent it aims to put an end to unstable work and its forms of impoverishment and labour instability in Ecuador. • It has regulated the distribution of profits to the intermediated and/or outsourced workers. • And it has produced a LABOUR HANDBOOK WITH GENDER PERSPECTIVE as a valuable tool for entrepreneurs, professionals in Law, workers’ organizations, researchers, women’s organizations and the society in general. MINISTERIO DE TRABAJO Y EMPLEO DE ECUADOR - 2007-2010

  7. PROMOTION OF THE MICRO, SMALL AND MEDIUM-SIZED ENTERPRISES • In Ecuador: • From Art. 47 to 54 of the Constitution of the Republic of Ecuador, it devotes enough space for considering as legal persons the so called vulnerable groups, therefore, it formulates the duties and obligations of the Government with regard to this population among which are to be considered the disabled people, which represent more than 12% of the total population of the country. MINISTERIO DE TRABAJO Y EMPLEO DE ECUADOR - 2007-2010

  8. UNDER THE MAGNA CARTA: • The country has developed related laws and made up a piece of legislation that recognizes these rights and arbitrates measures for setting them. • Due to the achievements in this field, we have received an international public recognition (the Franklin Delano Roosevelt Award) - first Latin American country to receive it. • As a referent of this task, the proposal to tackle the issue has been emulated in several parts of the world. MINISTERIO DE TRABAJO Y EMPLEO DE ECUADOR - 2007-2010

  9. IN THE WORKING ENVIRONMENT • Law 28, Reformatory of the Labour Code for the Inclusion of the Disabled Workers, promotes every employment form –dw- and turns binding for the enterprises the mandatory nature of placing determined percentages of dw as part of their workers‘ payroll. Up to the year 2010, 4% of every enterprise will be made up by dw. MINISTERIO DE TRABAJO Y EMPLEO DE ECUADOR - 2007-2010

  10. THIS IS NECESSARY BECAUSE … • In Ecuador 1´608.000 people have some type of disability. • Eight hundred thousand are in working age • Eighteen percent of them work • One percent of this universe are employees • Eighty-four point five percent are working men, 15.5 are working women • One hundred and forty-four thousand are openly unemployed and do not have social security; they have low vocational education and training levels. • SOURCE: ECUADOR: DISABILITY IN FIGURES; E , REPORT FROM THE MLE TO THE NATIONAL CONGRESS MINISTERIO DE TRABAJO Y EMPLEO DE ECUADOR - 2007-2010

  11. FACING THIS PANORAMA: • The Ministry of Labour and Employment of Ecuador: • Has attacked the forms of unstable work (outsourcing and unfair labour intermediation) • Has allocated significant resources for the vocational education and training of vulnerable groups • Promotes policies on productive and preferential credit for disabled micro-entrepreneurs • Provides technical assistance to vulnerable groups MINISTERIO DE TRABAJO Y EMPLEO DE ECUADOR - 2007-2010

  12. FACING THE PRODUCTIVE MACHINE • Trains entrepreneurs and union leaders in the areas of disabilities, decent work, occupational safety and health, gradual elimination of the worst forms of child labour; decent work, equality of gender and ethnic groups, youth employment, etc. • Prepares standards for the distribution of the entrepreneurial profits, the concerted making up of the wages sectoral committees, the minimum wages in part-time work, the gradual reduction of the wages inequality, the limits of intermediation and labour outsourcing, etc. MINISTERIO DE TRABAJO Y EMPLEO DE ECUADOR - 2007-2010

  13. IN SELF-EMPLOYMENT……. • Trains, provides vocational education, advises, and is the President of the Credit Committee of the “Seed Fund” Programme directed to disabled micro-entrepreneurs. • Prevents the present and future unemployment of the dw and their families through the Mother-to-Mother Support Proposal. • A bet to the great capacity and creativity of female household heads who take care of their disabled children. MINISTERIO DE TRABAJO Y EMPLEO DE ECUADOR - 2007-2010

  14. THESE MOTHERS: • Form part of 52% of the people who take care of and are legal representatives of 640.889 individuals whose disability do not allow them access to and/or keep an employment on a regular basis. • Hence they cannot either access to the formal employment market and their children will be unemployed in the future. • Only self-employment forms will enable them to earn their bread with equity and prepare their children for a future with rights and dignity. MINISTERIO DE TRABAJO Y EMPLEO DE ECUADOR - 2007-2010

  15. CAPACITY OF THE PROPOSAL • Creation of micro-productive chains country-city, managed by mothers of dw • Creation of centres of care and basic rehabilitation of dw with CBR techniques • Gradual incorporation of severe dw to protected forms of employment in production family units • Creation of self-employment and gradual Reduction of unemployment deriving from disability. MINISTERIO DE TRABAJO Y EMPLEO DE ECUADOR - 2007-2010

  16. A PROPOSAL…….. • That unifies in its environment: • Gender • Youth • Decent work • Training and education • Vocational Rehabilitation • Expenditure capacity • Quality of life • Exercise of rights and citizenship MINISTERIO DE TRABAJO Y EMPLEO DE ECUADOR - 2007-2010

  17. AN EXPECTATION FOR …. • One thousand three hundred and twenty new jobs per year • Sixty new microenterprises • Twelve centres for care and primary rehabilitation • Start-up and development credit • Five years of direct consultancy and social coverage • Continuous vocational education and training for employment, credit handling, small businesses management, total quality. MINISTERIO DE TRABAJO Y EMPLEO DE ECUADOR - 2007-2010

  18. BECAUSE WE ARE CONVINCED THAT … • BEYOND THE LAW • The enterprise should look into its environment and know that the existence of the poor, is a hole in the pocket of the enterprise, and their participation in the national production is the rational way of how to make them accessible to bread and to the rights. MINISTERIO DE TRABAJO Y EMPLEO DE ECUADOR - 2007-2010

  19. A COUNTRY MOVES FORWARD …. A country moves forward inasmuch as its people start from the knowledge of their rights to practice FREEDOM MINISTERIO DE TRABAJO Y EMPLEO DE ECUADOR - 2007-2010

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