Dr. S.T. Sawant drsts21@yahoo.com

“A fair globalization requires greater convergence of economic and social policies around the goal of decent and productive work for all” - Juan Somavia, DG of the ILO in a report by UNs’ Non-Governmental Liaison Service (NGLS): ‘Decent work and fair globalization: a guide to policy dialogue’, (2010).

“New policy thinking and strong advocacy are critical”

7/29/2014 2 drsts-uni

Structural Adjustment to Decent and Productive Work • Since 1944, structural adjustment programs promoted

by the Bretton Woods institutions (IMF, World Bank) based on their commercial and monetary policies.

• The capital was at the centre.

• Since 1980’s with the winds of globalisation it was realised – the focus of development policy at any level is to be on society at large.

• And the concern of the society : employment and social protection.

7/29/2014 3 drsts-uni

The ‘World Commission on the Social Dimension of Globalization’ was established by the ILO in 2002.

The core conclusion was : the need to bring coherence of macroeconomic, trade and financial policies with development and social goals – especially decent work for all.

7/29/2014 4 drsts-uni

The recent world economic and financial crisis dramatically increased the credibility of UN and its organs, civil society and other voices

Calling for a major overhaul in current approaches to economic governance.

7/29/2014 5 drsts-uni

All Heads of State and Government in the UN World Summit of 2005 committed

- to strongly support a “fair globalization” and - to make “full and productive employment and decent work for all” a central policy objective in all relevant national and international policies.

7/29/2014 6 drsts-uni

First time governments formally acknowledged the importance of full and productive employment

- to get out of the cycle of poverty and

- means for equitable, inclusive and sustainable development.

7/29/2014 7 drsts-uni

A new target on decent work was added under MDG and since then, the United Nations has worked to mainstream the decent work agenda in its programmes and activities in an effort to turn the 2005 political commitment into concrete policy changes supportive of workers’ rights, job creation, social dialogue and social protection.

7/29/2014 8 drsts-uni

International development policy formulation is multi-pronged; ILO for labour standards, WTO for trade integration, World Bank/IMF for capital mobility, UN for Human rights and so on.

7/29/2014 9 drsts-uni

Compatibility

The question is about compatibility of International policies with the national development strategies.

No assumption that all countries can aim for the same absolute conditions. No policy intervention can bring all developed and developing countries on the same level.

7/29/2014 10 drsts-uni

Compatibility of international policies, say ILS, with the growth model followed at the national level - always a complex issue.

Nations differ in terms of the level of

- economic, social, cultural status,

- Demographic profile, educational level.

Globalisation has made the development policy efforts more challenging - particularly in environment, labour market, societal welfare through social securities.

7/29/2014 11 drsts-uni

Changes are taking place at an incremental speed in areas of technology, societal aspirations calling for appropriate changes in the governance, laws, and regulations which are set some time back.

The nature of implementation of these laws and regulations is an added issue in every country.

7/29/2014 12 drsts-uni

Decent Work Agenda An overall guide lines become necessary at the

international level - sooner or later all nations will achieve a standard level of welfare of their nationals.

‘Decent Work Agenda’ promoted by the ILO is one such effort in the interest of the labour community anywhere in the world.

Now the focus is on reducing ‘decent work deficit’ any where the world.

Decent work is a practical policy agenda.

7/29/2014 13 drsts-uni

Floor for the DWA The universal floor for the DWA is ILO’s core Conventions -the 1998 ILO Declaration.

Obligatory for all member States to promote and realize their fundamental principles/rights

C-029 Forced Labour - 1930 C-087 Freedom of Associ. and Protection of the Right to Organize - 1948 C-098 Right to Organize and Collective Bargaining - 1949 C-100 Equal remuneration - 1951 C-105 Abolition of Forced Labour - 1957 C-111 Discrimination (Employment and Occupation) - 1958 C-138 Minimum Age Convention - 1973 C-182 Elimination of the Worst Forms of Child Labour - 1999

7/29/2014 14 drsts-uni

The policy decisions on how rights at work should be achieved could be country specific. Yet the principles and rights of the Declaration are valid everywhere.

Eg.freedom of association. A worker has the right to organize and bargain collectively in any country. But the practical results will be determined by the possibilities and development capacity in each country. However, the principle remains the same.

7/29/2014 15 drsts-uni

The concept of DW grew out of deliberations at the ILO since 1999.

Reframing labour and employment goals into four pillars. Namely:

1. Full employment (incl. enterprise creation);

2. Respect for basic workers’ rights;

3. Social protection; and

4. Social dialogue.

7/29/2014 16 drsts-uni

India- policy prescription and implementation. In India the compatibility challenge to the DWA come

from the development policies adopted by the State and Central government in the liberalised economy.

There are two aspects: policy prescription and implementation.

In the wake of short term investment friendly development policies the DWA gets side tracked.

7/29/2014 17 drsts-uni

For example, 2nd NCL recommended some labour law reforms and advised a holistic approach for respecting the societal aspirations in the process of investment friendly development.

But the 2nd NCL report still remains shelved.

India has yet to fulfil its obligation to the 1998 Declaration of Core LSs.

7/29/2014 18 drsts-uni

India has ratified four core labour Conventions.

One observes restrictions on the trade union rights of workers, discrimination in employment, incidence of child labour and forced labour.

7/29/2014 19 drsts-uni

Core LSs India has not ratified C- 87 on ‘Freedom of

Association and Protection of the Right to Organise’ or C- 98 on ‘Right to Organise and Collective Bargaining’.

The rights to organise, collective bargaining and strike are restricted both in law and in practice.

7/29/2014 20 drsts-uni

In EPZs, organising is particularly difficult.

Labour commissioner’s authority is controlled by the Development commissioner

Period of strike notice is extended to 45 days, and more over

The employment is short term or temporary.

7/29/2014 21 drsts-uni

India ratified C-100 on Equal Remuneration and C- 111 on Discrimination (Employment and Occupation).

Indian law prohibits discrimination, but certain groups face discrimination in employment. Dalits , tribals in all parts of the country.

Considerable gender pay gap in many major sectors like garment, plantation, fisheries, hospitality, health etc.

7/29/2014 22 drsts-uni

India has not ratified C-138 on ‘the Minimum Age’ or C-182 on ‘ Worst Forms of Child Labour’.

Child labour is in concurrent list of the Constitution.

A number of legislative initiatives,

- the Child Labour (Prohibition and Regulation) Act of 1986, prohibits employment of children below 14 years in 13 occupations and 57 hazardous processes.

7/29/2014 23 drsts-uni

Another is the Factories Act of 1948.

Another law bans domestic work and restaurant and hotel work by children below the age of 14 years

7/29/2014 24 drsts-uni

Scope of some of the laws, including the Child Labour Act, does not cover family farms or family businesses.

The law does not sufficiently protect children from forms of labour that are illegal under those Conventions.

Further, the laws are not enforced adequately and incidence is high.

Commercial sexual exploitation of children and child sex tourism also remains a problem.

7/29/2014 25 drsts-uni

India has ratified C- 29 on ‘Forced Labour’ and C- 105 on ‘Abolition of Forced Labour’.

Forced labour is a problem in agriculture, mining, and other sectors.

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redresser) Act was promulgated in 2013

But provisions like plant level committees are yet to come up in this respect.

7/29/2014 26 drsts-uni

Productive Emp. The promotion of productive employment is at the

heart of decent work.

Employment creation - thrust areas of India’s development policy:

–Golden Jubilee Urban Emp. Scheme,

–MG National Rural Emp. Guarantee Scheme,

–Prime Minister’s Emp. Scheme,

–Golden Jubilee Rural Self Emp. Scheme,

–Prime Minister’s Bharat Nirman Scheme,

–Urban Self Emp. Programme.

7/29/2014 27 drsts-uni

The Mahatma Gandhi National Rural Employment Guarantee Act (NREGA) in India, which aims to provide 100 days of guaranteed unskilled waged employment to each rural household in more than 600 districts of the country, is well appreciated internationally.

However there are reports of several malpractices which need to be taken care of at the implementation level.

7/29/2014 28 drsts-uni

Skill development is a pre-requisite - for optimum use of national human power, also for assuring productive employment.

Government’s ‘National Skill Development Initiative’ expects to empower all individuals through improved skills, knowledge to gain access to decent employment.

7/29/2014 29 drsts-uni

National Skill Development Corporation (NSDC) has been set up

But keeping in mind the spread of the economy and the nature of the governance evolved so far, doubts are arising in the results/impacts of these schemes in the area of ‘productive employment’ in near future.

7/29/2014 30 drsts-uni

Social Protection Social protection is being extended through

legislations and Schemes such as:

Inter-State Migrant workers (Regulation of Emp. and condition of service)Act, 1979, Employees State Insurance Act, 1948, Employees Provident Fund and Miscellaneous Provisions Act, 1952, Workmen Compensation Act,1923, Payment of Gratuity Act1972, Child Labour (Prohibition &Regulation) Act, 1986,

Recently introduced schemes: National Health Insurance Scheme ( health cover for Below Poverty line workers), Common Man Insurance Scheme, National Old Age Pension Scheme.

7/29/2014 31 drsts-uni

However, the coverage of these efforts, except the recent one mentioned above, are limited to formal sector labour which is only around 7% of the labour force.

7/29/2014 32 drsts-uni

Fairly good economic performance, in macro terms, in the past 2 decades,

- the poverty rate has fallen,

- the productivity across has increased,

- the economic activities have got diversified,

- more MNCs have established their business,

- foreign trade composition/direction changed.

7/29/2014 33 drsts-uni

But the disparities have increased.

- based on gender, social group, age, migrant status and location continue to persist,

- rural-urban migration intensified during this growth period. It is mainly due to insufficient economic development outside the main cities and towns of the country.

7/29/2014 34 drsts-uni

More significant- income inequality has risen. Inequality in earnings has doubled in India over the last two decades.

In 2010s the top 10% of wage earners make 12 times more than the bottom 10%. This ratio was 6 times in the 1990s.

The Wealth Report of 2014' by global real estate consultants Knight Frank - wealth in India is getting concentrated among a handful of the country's richest.

7/29/2014 35 drsts-uni

In 2013, for every one billionaire in India, there were just 26 ultra high net-worth individuals (UHNIs)-those whose net assets are over $30 million.

In Japan, there were 609 UHNIs. In Brazil and South Africa, comparable emerging markets, the ratio was 1:129 and 1:119 respectively.

Globally, for every one billionaire, there are 100 UHNIs.

7/29/2014 36 drsts-uni

A range of challenges in the labour market.

- employment generated is informal one

- informalization of the organized sector

- Underemployment, in household as also in factory sector, is increasing- problem also for national peace, welfare and security.

- difficulty in upgrading /developing skill

7/29/2014 37 drsts-uni

Decent work is a “win-win” programme for society and the economy.

It assures higher consumer demand, higher revenue to the producers, can lead to further investments in productive jobs, thus creating a virtual circle in which decent work promotion is the pivotal link.

This is to be understood by all the stake holders in development process.

7/29/2014 38 drsts-uni

However, in a market period or short period Government has to balance the policies with appropriate stimulus or duty as selective measures.

7/29/2014 39 drsts-uni

Strategic objectives of DWA do align with the development strategies of ‘sustainable’ and ‘inclusive’ growth.

These are achievable objectives without conflict only over the long period.

International policy guides are to be made compatible with the national development policies.

7/29/2014 40 drsts-uni

The ground realities

- enterprises are still confined to ‘profit motive’, all over the world.

- Employees are yet to obtain total participation in management,

- there is still a good scope for ‘better work culture’ and respect to ‘duties’ towards enterprise and the community in informal economy.

7/29/2014 41 drsts-uni

bottlenecks have emerged in the implementation of policies and delivery of programmes.

In certain areas, fragmentation and coordination of initiatives have become a challenge to ascertain decent work. One such area is ‘contractualisation’.

7/29/2014 42 drsts-uni

Some policies have contradictions or ambiguity in objectives- the policy of Special Economic Zones (SEZs) and decent work through labour laws

Trade unions, wedded to ‘decent work’, are still confined to their membership, not succeeded much in widening their coverage in informal economy.

7/29/2014 43 drsts-uni

Among the management/employers, with their strong associations, much is needed to be done in realising the ‘Social Responsibility’ in its true sense.

7/29/2014 44 drsts-uni