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Second France/ILO Symposium
The future of work, employment and social protection:
The dynamics of change and the protection of workers
(Lyon, 17/18 January 2002)
Address by Mr Juan Somavia
Director-General of the ILO
I should like to thank Gérard Collomb for his introduction, which showed us
exactly why we made the right choice in coming here to Lyon. I am particularly
pleased to open this second France/ILO symposium. As the Mayor pointed out,
Lyon is a city where work and workers have always occupied a very important
place, both now and in the past. As you said, Lyon houses a number of major
labour institutions such as the Institut National du Travail, de l'Emploi et de la
Formation Professionnelle (Institute for Work, Employment and Vocational
Training) and the Agence Nationale pour l'Amélioration des Conditions de
Travail (National Agency for the Improvement of Working Conditions), one of
whose directors is here today.
You mentioned the history of labour struggles, social debates and contributions
to thinking and action on these issues, and I think that this is undoubtedly
why our discussions today are firmly rooted in reality, in a city which has lived
and is still living the subject we are debating, and whose mayor has called on us
to debate this in a global context, in the context of the world we see around us,
where instability is everywhere. A lot has been said about the river, and the fact
that there is more than a river bringing us together. I think this is very true, and
I very much hope that we can work together on issues like those raised by this
symposium.
I should like to express my gratitude to the Minister, Mrs Elisabeth Guigou,
for the support she has given this conference. I am also looking forward to taking
part with her later in the round-table discussion that will mark the end of this
conference.
In accordance with the framework agreement between the French Government
and the ILO, this symposium is being held under the aegis of the ILO and
the Ministry of Employment and Solidarity, with which we are working handin-
hand in a very close spirit of cooperation. The agreement also provides for
France to make a series of major contributions towards achieving the tasks we
have set ourselves, and I should like to thank the French Government for the
unfailing support it has given our Organisation.
Rather than waiting until the end to do so, I would like to begin this twoday
conference by thanking the people who have organised it. Among the organisers
on the French side, help has been provided at particularly critical points by
Mr Lavergne, France's representative at the ILO, Mrs de Soucy at the Minister's
office, and Mr Garnier and Mr Suesser. On the ILO side my thanks go to Mr
Rodgers, Mr Reynaud, and to Mr Parisotto and all the team at the International
Institute for Labour Studies, starting with Mrs Julie Silcock, with whom you
were all in contact during the preparatory work for the conference, Mrs Vanna
Rougier and Mrs Françoise Weeks. I notice that I have not mentioned Peter Auer,
who prepared my notes. Special thanks should go to him and Mr Bernard Gazier,
of course, who have led the whole operation.
Let us turn without further ado to the focus of our debate. The idea of
holding these conferences came up in 1999. It was a simple one, as you said, Mr
Mayor: to look beyond the single, dominant way of thinking which analyses
globalisation largely on the basis of economic considerations, stressing its
monetary and financial dimensions in particular. This, I believe, as do many
other people in the world, is too narrow a framework to cover the effects that
globalisation has on people's lives and families. It is an analytical approach
which focuses exclusively on one aspect of today's policies, economic policies
that have a direct impact on people's lives and the lives of their families.
We therefore needed to introduce a pluralist approach centred on the idea
that the social and the economic do not have to be in opposition, but should
inform each other in order to facilitate sustainable economic and social development.
Hence the idea of creating a forum around this concept of economic and
social integration, in order to discuss ideas that are likely to influence the debate
at global level. Like you, Mr Mayor, I do not believe that we should resign
ourselves to accepting that the economic and social aspects of development are
incompatible. I think that in the European Union debate, when people say yes to
full employment for everyone, they are actually affirming that economic and
social conditions can be made compatible. When we at the ILO say yes,
profitability is necessary, but so is security, otherwise there is no point in being
profitable, and when we fix these as policy objectives because they meet people's
needs, I believe that we can find ways of achieving them.
I refuse to believe that the globalisation process is such that the only socially
acceptable option is to halt it. No, I think that essential adjustments need to be
made alongside the changes. Adjustment to technological progress, which has
happened throughout the history of mankind; technological phenomena are
destroying jobs but are also creating them. Such phenomena are part of history;
they happened in the past, they will happen again. But it is important to stress
that there is nothing inevitable about the policies accompanying this inevitable
technological progress. Policies change and policies have to be changed when
what they achieve, in people's eyes and in the eyes of their families and society,
does not satisfy objective requirements. I think that technological progress is an
inevitable phenomenon which affects more people today. The political issue is
how to make it compatible with social progress.
I think there are a series of responses in which balances can be found
between the economic and the social. The idea of these symposia is to discuss
this issue through interaction between decision-makers and researchers at an
international level. What was clear from the outset is that there is little time for
discussion in politics, but at the same time there is an increasing need for discussion,
because politics, as Elisabeth Guigou said in her speech at the first symposium,
needs "better understanding for more effective action".
This dialogue between the world of politics and administration on the one
hand and researchers at national or international level on the other is, in my view,
absolutely essential in all our societies. As at the Annecy conference, the main
theme is still the future of work, employment and social protection in the industrialised
countries. We can see that the industrialised nations are far from having
overcome their own problems. There are new challenges, particularly unemployment
and the quality of work. They too, therefore, have some ground to make up
when it comes to decent work, albeit rather less than in the rest of the world, of
course.
The problem of decent work is not about how to transfer the achievements
of the developed countries to the developing countries. Decent work is a
challenge for every country, and every country faces its own challenge in deciding
how to combine the four main elements of decent work, which are job and
business creation, rights at work, social protection and social dialogue. There is
no society in the world that can say it has achieved these four goals and has
nothing else to do. Such a society does not exist. This is why the challenge is a
global one. In good times, when things are going well, the question is how to
ensure that the benefits are distributed more fairly. When things are going badly,
as they are today, we need to provide better protection for people and businesses.
The same objective applies during periods of expansion and recession, such as
the ones we are going through at present.
There is another reason for our discussions here, which has to do with the
fact that Europe in general, and France in particular, has become a real melting
pot for producing new ideas and policies on work, employment and social
protection. Adjustments are made in response to the changes imposed by globalisation,
technology, demography and the revolution in social values. You too
mentioned a few aspects of these issues, Mr Mayor. We are meeting today at a
time when the economic situation is a complex one. In Japan we do not know
how the situation is going to develop; the USA has been officially declared in
recession, and growth in Europe is weak. As there is a clear link between
economic growth and social issues, social stagnation or even regression might
develop. So the three main sources of development and economic growth in the
past are all in a critical situation. It is at times like this when the type of discussions
we are having here become even more important. I said that the four ILO
objectives regarding decent work were equally valid in good times and bad, and
now is the time to use these concepts to find a way out of the crisis. I would like
to tell you about a very interesting development that is taking place in the ILO
on this subject.
Both the employers' and trade union organisations which send representatives
to the ILO said to themselves this year 'we need to be careful to find a
productive way out of the crisis'. Of course, if growth declines a lot of other
things will also get worse, but then we will need to try to protect businesses and
jobs. This is not always possible, and that is when we need social policies. But
there are other people who want policies to get us out of the crisis which go
beyond mere social adjustments and generate dynamism in the economy. Above
all, the developing countries have asked the developed countries to provide the
means to stimulate economic expansion: the USA began to do this on 12
September with a series of injections into the economy, creating extra demand.
The developing countries do not have the wherewithal for this. The most dangerous
thing would be for the world's leading financial and monetary analysts to
tell the developed countries to reactivate their economies and the developing
countries to be cautious because they do not have the resources, and to make
economic adjustments. I mention this because these are the sorts of things that
are being said in relation to specific problems that you are currently experiencing
in France.
These are global problems, and the type of policies introduced today will
determine whether there is more or less unemployment in the future. This takes
us straight to the heart of the discussions in our three panels, which are looking
at two fundamental and innovative themes: the importance of a dynamic
perspective in analysing and finding solutions to the problems of work, employment
and social protection, and the need for better integration of the various
policies relating to these issues in order to face present and future challenges. To
take just one example, if we want to try to promote decent work, we need to have
an idea of how work is likely to change over time. We need to establish whether
it acts as a trap, locking people into a life of insecurity, or whether instead it is
a bridge to a better future. We therefore need to have an idea of the possible
career paths and the dynamics of change which work gives an individual, and of
the genuine likelihood of improvement in given employment situations. For this,
we need a better understanding of transitions in the labour markets.
This is why we also need to have a very clear perception of the critical
phases represented by transitions between school and working life or between
work and unemployment, and above all of the many risks of exclusion which
these present, depending on the way people set about managing these transitions.
We therefore need to target political action on these critical transition points.
There are, as I have seen, very clear descriptions in the conference
programme of the links between family and work. I would just like to point out
one aspect which concerns me deeply: Generally, people grasp unemployment
in a statistical sense, as the unemployment rate or the share of the long term
unemployed, etc. But behind these numbers there is the life of people and
unemployment as the reason for a multitude of family problems. The percentage
of families in which nobody is working is steadily increasing. We know that
an unemployed family, even if only one of its members is concerned, is a very
unhappy family: there is domestic violence, usually against women and children.
Often children of these families have to go to work. Other problems follow, like
the use of drugs and alcohol. There is the problem of trafficking of women and
children. In addition there is the problem of poor education: all this is leading to
the building up of new "lost generations".
We can see that unemployment is a statistic that tells us nothing about what
is happening in families. We behave as if the world of work, whether you are in
work or not, has nothing to do with what is going on in families.
Uncertainty affects everyone today, big businesses as well as small. It is
currently impossible to plan how a business will develop in five or six years. This
general uncertainty is beginning to affect our social structures, and it is how
insecurity finds expression within families around the world. This is all I wish
to say about this: it is not just about the compatibility between families and work,
but about the lack of work and the widespread uncertainty in which people find
themselves.
The third panel will be looking at the need for new regulation to accompany
social changes, particularly on the labour market, and covering all fields:
employment relationships, social rights, in-service training, contracts of employment.
Here too there is the question of how to integrate the various policies:
fiscal policy, family policy, policies on work, employment and social protection,
as well as on health and many other areas. All of these have an obvious influence
on each other, but they are still all too often treated as if they were separate.
Clearly, understanding how they interact will require considerable analysis and
greater efforts in terms of social dialogue.
I believe that this is a key element in a world that is becoming more
globalised. The main problem with formulating policies is that at national level,
and even more so at international level, policies are defined sector by sector, and
any integration is normally the result of financial arbitration when the budget is
discussed. This happens at national level, with the parliament. It is difficult to
integrate these policies and get them to interact, and I think this is a particular
problem at international level. It is absolutely vital to discuss ways of integrating
them better.
In conclusion, I would say that the aim of these conferences, which are
unique in their multidisciplinary nature and in the wide range of participants they
bring together, is to be a melting pot for new ideas, and they should begin to
provide a response to all the questions I have just outlined. This is my hope in
opening the symposium today.
I should like to end by saying that I think that the framework for our discussions
is becoming clearer as the process of globalisation continues. Work is one
element of production costs and is therefore inevitably an aspect of economic
life and production. This is why we talk about a labour market. The market plays
a key role in determining the cost of labour, not its value, but its cost. However,
at the same time, work is the main thing on which our personal dignity is
founded: we derive part of our identity from work, and we have a relationship
with society through work.
Work is also, as I have just said, a factor which is central to the family. We
know that communities where people are working are peaceful communities,
while those where people are not working face huge social tensions. This is why
work lies at the heart of politics. You cannot stand as a candidate without talking
about work, and this applies the world over. Our key problem is that this
phenomenon, which is basically linked to the market and to economics, also has
social links at the same time. Our challenge, in our discussions and in politics,
is to manage to combine these two elements. We tend to link them by talking
about economic and social, but I think it goes much further. There are some
options in society for which identity, family and dignity are important, and we
need to analyse how work can be organised to strengthen these aspects. This
question is wide open, because there are enormous challenges to be faced, such
as how the global economy should be organised to be able to generate the jobs
that the world needs. The truth is that during the 1990s the number of
unemployed in the world increased from 100 million (the official figure, with all
the limitations that implies) to 160 million by the end of the decade. The recession
that has set in since 11 September already means that 24 million jobs will
not be created or will be lost. Even without these unforeseeable and tragic events,
the world is structurally incapable of creating more and more jobs: the structural
trend is towards fewer jobs. How can we deal with this, given the economic and
social links that work has?
I will conclude by saying that these are the sorts of issues that the world of
research, debate and reflection needs to consider. They are also issues which
you, Mr Mayor, who are responsible for day-to-day policy, have to deal with. We
in the ILO need to think about the regulations and work systems that we need
for a better world, and I hope that we will all benefit from your discussions.
Thank you very much for being here, Mr Mayor, and for welcoming us to Lyon.
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Symposium France/ILO 2002
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