Indonesian Jobs Pact – Frequently Asked Questions

Artículo | 14 de mayo de 2010

WHAT IS THE GLOBAL JOBS PACT?

The Global Jobs Pact is a package of policy measures agreed upon by representatives of governments, workers and employers during the 98th Session (June 2009) of the International Labour Conference. It addresses the social and employment impact of the international financial and economic crisis. It promotes a productive recovery centred on employment and social protection.

The fundamental objective of the Global Jobs Pact is to provide an internationally agreed upon basis for policy-making designed to reduce the time lag between economic recovery and a recovery with decent work opportunities. It is a call for urgent worldwide action: national, regional and global.

The Global Jobs Pact proposes a portfolio of policies aimed at:

• Accelerating employment creation, jobs recovery and sustaining enterprises

• Building social protection systems and protecting people

• Strengthening respect for international labour standards

• Social dialogue: bargaining collectively, identifying priorities, stimulating action

• Shaping a fair and sustainable globalization

In short, the Pact is about promoting jobs, protecting people, and responding to the needs of both the people and the real economy.

WHAT IS NEW ABOUT THE GLOBAL JOBS PACT?

The GJP is the application of the Decent Work Agenda in the context of crisis response. It presents a portfolio of tried and tested employment and social protection policy options. While the recommended policy options are not new, the Pact calls for employment and social protection to be at the core of stimulus packages and other relevant national policies designed to alleviate the effects of the crisis.

The Pact and the tripartite global commitment it represents offer a unique opportunity for countries and the multilateral system to apply its provisions, which are embedded in the ILO Decent Work Agenda. In seeking support and advice from the ILO, constituents are encouraged to apply the elements of the Pact that respond best to each country’s needs and priorities.

The Global Jobs Pact has strong international backing and endorsement from the G20 Heads of State, UN General Assembly, UNDP Board and numerous other international and regional bodies.

WHY AN INDONESIAN JOBS PACT?

Answer: While the global financial crisis has not affected the Indonesian economy as severely as many other economies in the region, it has still had an effect on the Indonesian labour market. Layoffs have affected workers in a number of key sectors such as food and beverages, electronics and the construction industries. Furthermore, the crisis exacerbated previously existing unemployment and underemployment in Indonesia. An Indonesian Jobs Pact could help to address these challenges and support long-term and sustainable recovery.

In order to address these challenges and support long-term and sustainable recovery, the Government of Indonesia and social partners approached the ILO for assistance to apply the Global Jobs Pact in an integrated manner. Subsequently, a tripartite meeting involving representatives of the Government ministries, and workers’ and employers’ organizations met to discuss the relevance of the Global Jobs Pact. The representatives at the meeting concluded that the Global Jobs Pact was applicable to Indonesia and expressed their interest in exploring with the ILO and other multilateral organizations the possibility of developing an Indonesian Jobs Pact.

WHAT IS THE BENEFIT OF CREATING A NATIONAL VERSION OF THE GLOBAL JOBS PACT?

Creating a tripartite agreement ensures that the Government, workers and employers are working together rather than at odds with each other. Job creation and the improvement of social protection are important priorities, especially in the face of crisis, and it is essential that common priorities are developed for immediate and longer term action. The process of creating the Indonesian Jobs Pact will help to improve tripartite communication and cooperation.

In addition, the ILO has pledged to provide support for an Indonesian Jobs Pact and to help secure additional support from the wider multilateral system. It is, however, important to note that the constituents are responsible for the implementation of the Pact.

WHAT ARE THE NEXT STEPS IN DEVELOPING AN INDONESIAN JOBS PACT?

The development of an Indonesian Jobs Pact is a process that is owned and managed by Indonesia. The Government and workers’ and employers’ organizations will meet to develop their vision for a National Jobs Pact. A tripartite national Steering Committee will be established and supported by a technical working group, which will conduct meetings and consultations to determine priority actions and policies.

A national Jobs Summit later this year is envisaged to share the information gathered throughout the process and to finalize and endorse the Indonesian Jobs Pact.

In the initial phase of the process, the ILO will prepare a document entitled “Indonesia: Global Jobs Pact Country Scan”. This background document will describe the impact of and policy responses to the economic and financial crisis in Indonesia. The ILO will also provide training and technical advice to support constituents to constructively engage in the policy dialogue and setting processes.

HOW WOULD AN INDONESIAN JOBS PACT RELATE TO THE NATIONAL MID-TERM DEVELOPMENT PLAN?

An Indonesian Jobs Pact would have a narrower focus than the National Mid-term Development Plan. While the Mid-term Development Plan was developed in consultation with workers and employers, and includes measures to support job creation and the improvement of social protection, a more focused vision would increase donor awareness and maximize resource availability in the areas in which the most attention is needed. In addition, the process of creating a Pact will improve communication between workers, employers and the government. Elements of the Mid-term Development Plan may be included in the Indonesian Jobs Pact if workers, employers and the government agree to this.

WHAT IS THE RELATIONSHIP BETWEEN THE INDONESIAN JOBS PACT AND THE DECENT WORK COUNTRY PROGRAMME?

A Decent Work Country Programme (DWCP) provides the framework for delivery of ILO services to the constituents at the country level. It specifies goals to be achieved within a specific timeframe. These goals are determined with the participation of constituents, and priority areas of cooperation are specified in accordance with the ILO’s mandate and strategic objectives.

Thus, the Indonesian DWCP would describe the ILO’s support for an Indonesian Jobs Pact. However, an Indonesian Jobs Pact may contain activities that do not relate to the Decent Work Country Programme, and vice versa.

Currently, ILO Jakarta and its constituents are preparing the next DWCP (2011-14). The work associated with the application of the Global Jobs Pact in Indonesia will be used and fully integrated into the new DWCP.