Distinguished Ministers and Ambassadors, Distinguished delegates of the employers’ and workers’ organizations,
Excellencies,
Ladies and Gentlemen,
Friends,
It is a great honor and pleasure for me to take the floor at this closing session.
Speaking on behalf of Mr. Ryder, Director General of the ILO, I would like to express the ILO’s appreciation for this Conference and the high quality of the discussions we have had over the last two days.
Let me highlight some issues that came out from our deliberations that I consider particularly timely and relevant to get the world back to work. Your concerns and ours in the ILO concur. And the discussions showed that the ILO values are more relevant than ever and that labour standards are not a stumbling stone but pave the way to economic growth.
Yesterday in the lively plenary session I was struck by the convergence of a number of countries’ policies with the ILO’s agenda:
- China is extending social protection and raising minimum wages;
- South Korea and Argentina have tried to put in motion a virtuous cycle of growth, with jobs and welfare feeding each other;
- Austria is ensuring that migrant workers benefit from the same protections as Austrian workers.
As the Russian first deputy minister of foreign affairs pointed out, these policies signal a fundamental shift in priorities.
But fundamental challenges still face us:
In Europe, employment goals have to be balanced against fiscal objectives: there is not necessarily a tradeoff here, as emphasized by the ILO DG and the French Minister. Debt reduction requires growth, which requires employment and adequate labour market policies.
The issue of the quality of jobs triggered a lively debate: some participants considered the multiplication of non-standard forms of employment as a problem for both the economy and the livelihoods of people involved; others thought that in some cases these jobs represented a useful step to integrate the labour market. Many countries are grappling right now with the question of how to regulate intermediary employment agencies dispatch agencies, temporary agencies, etc. In Russia, in China legislative and labour ministries are debating this. Beyond these differences, speakers agreed that it was useful to learn from positive reform experiences in this area and that social dialogue was crucial for a sound design of the policies.
I had the honour to moderate the first panel session on international labour standards and economic growth.
We all agreed that labour standards and core labour standards in particular can go hand in hand with economic growth and development. And as it was also pointed out, the question is not only about reconciling economic and social issues or standards with economic growth, but rather to decide on what kind of societies we want to live in, and want our children to live in.
The Russian social partners noted that, even in the context of crisis, Russia has ratified 8 ILO Conventions over the last 3 years and that their experience showed that engaging in social dialogue has helped finding responses to the crisis. It was also noted that employers have a key role to play through dissemination of best practices and knowledge of labour standards.
Panel session 2 concerned the role of labour markets for a sustainable recovery and various concrete examples were provided as to how labour market policies could prevent a prolonged recession, for instance through job sharing schemes or credit to small firms. In particular, the case of Argentina was used as an example of policy integration between employment and macro policies.
There was a general agreement on the need for labour markets to be adaptable to promote recovery and inclusive economic growth, while reinforcing respect for rights. In particular, a focus on competitiveness through reducing wages or relaxing social protections could put Europe at risk of a downward spiral which would ultimately reduce, not increase, aggregate demand and growth. A number of speakers recalled that proliferation of non-standard types of employment should be avoided. Governments and social partners mentioned social dialogue as a critical enabling factor behind fair and successful labour market adaptations.
The 3rd panel session on safe and protected workplaces was intended to share experiences so that we can learn from each other how best to ensure and safe work.
Many participants recalled that the economic crisis is aggravating existing and creating new OSH risks. This leads to a demand for adjustments in traditional approaches of modernized OSH systems and to identify innovative approaches.
The ratification and implementation of the ILO OSH Convention 187 and improvement of national data collection systems on occupational accidents and diseases were seen as important contributions to modernize national OSH programmes.
Finally, a differentiated approach to the promotion of OSH in small, medium and large enterprises needed to be developed. It was necessary to shift to risk prevention strategies; and emerging forms of risks such as psychosocial aspects need to be addressed by labour inspectorates.
Regarding panel session 4 on social protection, the participants reaffirmed that social security is an economic and social necessity for development and progress. The role of social security as a tool to prevent and reduce poverty, lessen inequality, and to support the transition from the informal to formal economy was stressed by many governments and social partners. It was recalled that the financial crisis demonstrated again that social security systems act as automatic social and economic stabilizers. The fact that today social security systems are in the process of constant reform and adaptation requires maintaining equally constant, broad and active social dialogue, which gives social legitimacy to government’s policies and helps avoid acute social conflicts.
Reforming social security through drastic austerity measures and cuts in benefits inhibits internal consumption and closes the main source of economic growth, as confirmed by the conclusion of the discussion of the first panel. Policies which seek the solution of the financial crises in the impoverishment of the population undermine the fundamental principle of the ILO Constitution, which says: “poverty anywhere constitutes a danger to prosperity everywhere”.
The adoption of Recommendation 202 on the Social Protection Floors at the International Labour Conference in June 2012 was a starting point. It is not only necessary to implement social protection floors at the country level, but also to promote them at regional and global levels.
As discussed in panel 5, demographic ageing poses enormous challenges for the many economies, including Russia and to their labour markets and social security systems, which have to adjust to new realities in terms of social benefits and pensions, health care and long term care.
Ageing societies and shrinking workforces in industrialized countries make reliance on foreign labour migration a necessity for future growth. This holds true also for several emerging economies that are confronted with rapidly ageing populations. Emigration is also part of the policy response of developing economies experiencing bulging labour forces. This requires an effective governance of international labour relation in which countries at the sending and receiving ends play their fair share.
Many participants stressed that labour migration policies should be designed in harmony with broader national employment and development policies and involve all concerned government agencies as well as social partners. While, each country should address its labour market needs, compatibly with its own circumstances, there are common challenges that need common responses. Irregular migration for instance is a growing source of concern for governments and workers’ and employers’ organizations alike. Among the measures to effectively encounter the problems, discussed during the panel were addressing dual and inefficient labour markets, lax enforcement of labour low, too restrictive and cumbersome admission policies, red tape and porous borders.
The Russian government and social partners shared encouraging experience with the recently-launched initiatives by the Government for improving the articulating between labour migration and employment policies.
Session 6 on youth employment attracted many interventions. At the global level, the youth unemployment rate has remained close to its crisis peak in 2009. In 2011 it was 12.6 per cent and projected 12.7 per cent in 2012.
Many governments and social partners stressed that productive employment and decent work for youth cannot be achieved and sustained through fragmented and isolated interventions. A more integrated approach is required that supports both the demand and the supply side: on the one hand, a strategy for growth and job creation and, on the other, targeted interventions to help young people overcome the specific barriers they face in entering and remaining in the labour market.
The need to reconnect the financial system with the real economy has been one remedy that many participants also spoke about. Access to credit and support for SMEs have been mentioned in this context by several representatives of the employers.
Employment opportunities must be available, but this alone is not enough. Work must be productive and generate adequate income. And trade union representatives stressed that voice and representation matters together with strong collective bargaining practices.
In panel session 7, discussions focused on entrepreneurship as a driving motor for employment development and the important role startups was stressed by all participants.
Governments and employers’ representatives insisted on the importance of political stability and rule of law to ensure the development and sustainable SMEs and boost entrepreneurship. Improving the business climate in countries was key. However, the challenge for policymakers and Governments was not only to create jobs, but also to create decent jobs in SMEs and to facilitate skills development to increase productivity
There was therefore a need for designing specific programmes based on an integrated approach combining financial services and business support services, improving the business enabling environment including social dialogue, and integrating SMEs in local or global value chains.
Ladies and Gentlemen,
I believe that this Conference will mark a milestone, not only in the ILO’s relationship with the Russian Federation, but also for the Russian leadership on global issues.
As the Director General rightly pointed out yesterday at the opening plenary session, it is essential for an international organization like the ILO to consider the world from different perspectives. We have a lot to learn from each other.
Here in Russia, I know that we are here in a country where the words "social justice" find particular resonance. Ample evidence of that is the tremendous commitment of the Russian Federation in implementing the ILO’s values and principles.
Yesterday we entered a new era of cooperation with the signature of three key agreements: the programme of cooperation for 2013-2016; the agreement with the Russian Ministry of Finance on the G20 Training Strategy whereby Russia is now joining the donor community; and the launching of the Global partnership between the ILO and Lukoil.
There is a long-standing history of cooperation between Russia and the ILO. The ILO office in Moscow was one of the first ILO offices established globally in (1959). We may be proud of the effective collaboration between the ILO and the Russian constituents over the years, and the impressive results achieved.
Employment promotion and support to the creation of new effective jobs. The ILO provided technical expertise during the development of the new State Employment Programme 2013-2020, which was endorsed in Nov . The ILO has supported analysis of youth employment policies in Russia, and the conclusions will lay the ground for further improvement of policies and programmes promoting youth employment. The ILO stands ready to provide technical assistance to implementation of these policies, especially in the regions with tensions in the labour market. The testing of entrepreneurial training methodology in the pilot regions has been conducted, and will be further continued to assess the efficiency of entrepreneurial training programmes in public employment services’ operations.
The ILO has cooperated closely with Russia in the ongoing reform of the pension system. The combination of measures adopted early in the economic transition plus an aging population and plus effects of the financial crisis showed that more work remains to be done to ensure that Russia’s workers can enjoy secure retirements. ILO has been working with the government and the Duma to address these questions, bringing solid actuarial work and global comparative experience to share with the Russian constituents. We are ready and eager to continue work with Russia on this complex but critically important issue.
Intense cooperation is also underway in the field of occupational safety and health. In recent years, Russia has invested seriously in modernizing the national OSH systems and Labour Inspection and has recently ratified the Promotional Framework for Occupational Safety and Health Convention No. 187 and the Prevention of Major Industrial Accidents Convention No. 174. With technical support of the ILO, the Labour Code was amended to introduce a new concept of occupational risk management.
An important focus of the joint work is targeting social partners, to be strong and competent parties of effective social dialogue. The ILO has provided support to workers’ and employers’ organizations to strengthen their institutional and technical capacities in order to play a key role in policy-making on labour and social issues.
Among the many conventions recently ratified by Russia, I should also mention the Workers' Representatives Convention No. 135, the Collective Bargaining Convention No. 154, the Promotional Framework for OSH Convention No. 187, and the Maritime Labour Convention No.186.
This reflects a strong commitment to social justice and I can assure our Russian partners that the ILO will continue to accompany you in your quest for social justice.
And for the other countries present, I want you to know that ILO is eager to deepen our cooperation with you.
Ladies and Gentlemen,
This week also marks the beginning of Russia’s presidency of the G20. I should like to acknowledge here how much the Russian Federation is committed to making the G20 a success.
I am also participating in the first G20 Sherpas’ meeting under the Russian Presidency that is currently taking place here in Moscow, and I would like to stress the strong emphasis put by the Russian Presidency on growth and job creation. Equally important in the ILO’s view is the decision made by the Russian Presidency to hold a Labour Ministerial meeting jointly with a Finance Ministerial meeting in July next year.
In conclusion, let me thank the Russian Federation for their hospitality and commitment and especially, Mr Maxim Topilin, Minister for Labour and Social Protection, Ms Liubov Eltsova, Deputy Minister, Mr. Alexander Shokhin, President of the Russian Union of Industrialists and entrepreneurs and Mr Mikhail Shmakov, Chair of the Federation of Independent Trade Unions of Russia.
Thank you.
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