Labour market governance and social protection

Labour market governance and social protection

Employment insurance and employment injury insurance

During the International Labour Conference in 2001, the tripartite constituents reached consensus on social security as an important tool to reduce poverty and promote social and economic development. The ILC participants concluded that the highest priority should be given to policies and initiatives that deliver social security to those not covered by existing systems. However, most countries in Asia still suffer from the narrow coverage of social security for the formal economy and a general lack of any social protection for the informal economy.

Not many Asian countries have an employment insurance system; such a product has become more important amid globalizing economic environments in which jobs in general are becoming more flexible and less secure, leaving workers more vulnerable to any economic turbulence that could easily threaten job security. Although many counties have, under their labour laws, a cash-compensation system directly financed from enterprises in case of redundancy, they often fail to deliver compensation due to insolvency related to bankruptcy or closure of an enterprise.

With technical support from the Korea Workers’ Compensation and Welfare Service (COMWEL), the Programme assists countries in the Asia-Pacific region in setting up a social insurance system, such as an unemployment insurance scheme in Thailand and Viet Nam in 2004 and 2006–2009, respectively, and an employment injury insurance scheme in Cambodia in 2009–2010.

The project strategy provides help with policy formulation and practical support with operations. Interventions include awareness raising and skills building for government officials at the regional and national levels. Skills building and awareness raising on employment insurance are also necessary to keep an existing system running smoothly and to introduce new schemes.

From 2011 onwards, the Programme is providing assistance to Sri Lanka on employment injury insurance. Sri Lanka has a long history with its Provident Fund and is known for its relatively well-running tax-based health care. However, compensations for industrial injuries and diseases are still under the direct responsibility of employers, sometimes with voluntarily purchase of private insurance coverage for workers. To provide more secure and equitable benefits for workers, the tripartite partners in Sri Lanka are interested in the feasibility studies and discussions on the introduction of employment injury insurance. Several other countries have expressed interest as well, such as Lao PDR, Malaysia and Nepal.

Occupational safety and health and working conditions

Promoting safety and health protection for all workers is an increasingly important challenge to realizing decent work in ASEAN. The ILO continually assists workers, employers and governments to create safer and healthier working environments. Assistance from the ILO/Korea Partnership Programme has resulted in the launch of a strategic national OSH programme (as per the ILO Promotional Framework for OSH Convention, 2006 (No. 187) in Cambodia, China, Lao PDR, Mongolia and Viet Nam. The OSH programmes have identified priority areas of national action in OSH and set workable strategies and clear targets. OSH legislative frameworks, enforcement and training systems have been steadily upgraded. In addition, ASEAN countries have jointly responded to emerging OSH issues, such as health hazards caused by use of asbestos and other chemicals.

Despite these achievements, there is much room still for improvement. Many workers in small enterprises and the informal and rural economies often have to accept substandard working conditions. Hazardous industries, especially small-scale construction and mining, need stronger impetus to reduce their accident and disease risks. Workers are increasingly exposed to work-related stress and emerging OSH risks posed by new chemicals. In response, the ILO is looking to accelerate its efforts to reach more grassroots workplaces and further strengthen regional and international cooperation to promote practical solutions.

In addition to promoting ILO OSH instruments, the ILO/Korea Partnership Programme focuses its assistance in collaboration with the Korea Occupational Safety and Health Agency to incorporate emerging OSH issues, such as asbestos and chemical safety, into national OSH policies and to extend OSH training to small and medium enterprises and informal economy workplaces through national workshops and fellowship training programmes.