International Labour Organization

Major Programme 130. International Institute for Labour Studies

Summary of 1998-99 proposals and comparison with previous biennium (including funds from other sources)

130.1. The Institute provides three important facilities to the ILO. It offers a strategic facility to orient future ILO programme development by identifying and exploring emerging labour policy issues. It provides an outreach facility to project the values and concerns of the ILO to the external world through research networks and policy dialogues, enabling the ILO’s tripartite constituents to interact informally and on a regular basis with academics, policy-makers and shapers of public opinion. As such, it serves as a “fourth window” of the ILO. Finally, as a support facility, it assists ILO constituents develop their own institutional capacities for labour policy research and analysis through internship courses and educational programmes.

130.2. The activities of the Institute are organized around a theme of central importance to the ILO, namely the interaction between labour institutions and economic development at a time of rapid change. The Institute has adopted certain distinctive approaches to its work. First, its programmes have specifically concentrated on emerging issues and on opening new perspectives for action. Secondly, changes in global production and market systems have been related to their consequences for labour institutions. By doing so, social policy options are set within the boundaries of economic sustainability. Thirdly, it has focused on the micro-economic and structural levels. As a consequence, it has concentrated on the role of social actors and of enterprises in shaping policies, rather than on macroeconomic factors.

130.3. Building on the findings of earlier work, the Institute’s programme for the biennium 1998-99 has been selected with a view to drawing attention to policy issues of growing importance and supporting and promoting ILO departmental priorities in specific programme areas. The Institute’s programme will focus on four areas: social cohesion and the role of the tripartite actors; social cohesion and anti-poverty strategies; global production systems and labour markets; and social protection, production systems and social institutions.

130.4. In accordance with the usual practice, detailed Programme and Budget proposals for 1998-99 will be submitted to the Institute’s Board and to the Governing Body in November 1997. The following are therefore preliminary indications of proposed activities, to be viewed in the perspective of the ILO as a whole.

130.5. In comparison with the biennium 1996-97, the proposals for 1998-99 reflect a decrease of $100,000 in the ILO’s contribution to the Institute. This reduction is in accordance with the decision of the Governing Body in November 1995 to reduce the size of the Board of the Institute.

Social cohesion: The role of the
tripartite actors

130.6. Fragmentation, exclusion and dualism have become characteristics of societies everywhere — in both the North and the South. The weakening of social consensus and growing income disparities have led to a gap between both the individual and society, and between society and the economy. These concerns found expression at the World Summit for Social Development and there has been much discussion of the policy changes necessary to bridge these gaps, notably in terms of employment policies, anti-poverty strategies and social safety nets. There has, however, been less discussion of the role of the tripartite actors themselves. The moment is opportune, as growing social concerns are paralleled by democratization and increased involvement by civil society. Apart from the State, the most significant organized actors in civil society are trade unions and business and employers’ organizations.

130.7. An initial examination will be made of the ways in which business and labour can contribute to greater social cohesion. The inquiry will then be extended to the implications for the role of the State. The aims of these activities are: to create a better public awareness of organized labour and business as major social actors, rather than merely as special interest groups; to assess, in collaboration with the organizations concerned, the challenges they face in terms of the changing economic and social environment, the requirements of their constituents and the rise of new social groupings which impact on their concerns; and to explore new avenues for enhancing the capacities of trade unions and employers’ organizations to meet these demands and influence public policies in such areas as growth and productivity, the promotion of human rights, development and the fight against poverty. To achieve these aims, two research networks will be set up, the first on labour and society and the second on business and society.

130.8. The network on labour and society will review the implications for trade unions of the growth over the past decade of public preoccupation with social priorities. What opportunities and challenges does this present for trade unions? In particular, what are the possibilities of enhancing the role of labour in global and national development strategies? The aim is to shift the public perception of labour from being a recipient to that of a partner in such areas of policy-making as participatory development, rural/urban migration, the formal and informal sectors, and gender, employment and development. These are areas of actual or potential trade union expertise, where their representativity and organizational skills provide them with a comparative advantage. The development of these capacities would enhance their impact in global debates, in national policy-making and in programme implementation. This work will be carried out in close collaboration with major programmes 125 (Development policies) and 230 (Workers’ activities), programme 80.2 (Labour law) and with trade union organizations, academics and the international development community.

130.9. The network on business and society will examine changing public attitudes towards business in the 1980s and 1990s and their implications for business and employers’ organizations in the future. This change of attitude follows far-reaching transformations, such as globalization, deregulation and the shift from manufacturing to services. Together they pose new problems, as well as offering new opportunities to employers’ organizations. An examination will be undertaken of ways of meeting these challenges and enhancing the capacity of business organizations and enterprises to serve as conduits for human resource development, diffusers of best practice and promoters of quality standards. Particular emphasis will be placed on identifying enterprise strategies for sustainable profitability which can contribute to the creation of a stable and supportive economic and social environment. Research will be carried out to identify enterprise strategies that: increase the long-term return on investments; expand market share; enhance competitiveness through the development of human resources and stable labour markets; promote cooperative relationships between the firm, its workers, suppliers, customers and dealers; and seek innovative partnerships between the public and private sectors and within the private sector itself. This work will provide a conceptual basis for a global data bank of case studies, relevant practices and methodologies designed to be of assistance to enterprises and employers’ organizations, trade unions and public authorities. This work will be undertaken in close collaboration with employers’ organizations, business schools and with major programmes 65 (Enterprise and cooperative development), 90 (Working conditions and environment) and 225 (Employers’ activities).

Social cohesion and anti-poverty strategies

130.10. The Institute’s earlier work on social exclusion demonstrated the importance of institutions and social actors in the design and implementation of effective anti-poverty programmes. Further work will be carried out to operationalize these insights in ILO areas of concern, particularly employment, human rights and participatory development. The inclusionary and exclusionary functioning of social institutions will be examined with a view to improving current policies. Examples of successful initiatives to promote social inclusion will be reviewed and their potential for diffusion and replication in other settings will be assessed. Particular attention will be given to the gender dimension of labour market outcomes and to the reinforcement of relationships between civil society actors and the promotion of human rights. This work will be carried out in close collaboration with major programme 125 (Development policies), programme 80.2 (Labour law), ILO constituents, practitioners and academics.

Global production systems and labour markets

130.11. In earlier work, globalization was examined in terms of the relationships between enterprise strategies and labour markets. As production is increasingly organized through chains of inter-enterprise linkages across geographical locations, there have been corresponding changes in labour market structures. Not only have labour markets become more interdependent, but specific labour market outcomes are directly affected by the way in which a particular enterprise or system of enterprises organizes its access to the global market (for example, through export processing zones, subcontracting, growth triangles or original brand manufacturers). Work will be carried out to identify the differences in labour market outcomes arising from these alternative paths of integration into global markets and the policies that facilitate industrial transition with more favourable labour market outcomes. In view of the increased impact of global production and distribution networks on domestic industries in many developing countries, the impact of global competition on domestic markets will also be examined. Empirical work on the structure of inter-firm networks, organizational learning and linkages and spin-offs in specific production chains and geographic locations could yield significant suggestions for policy-making. The objective of this work is to contribute to the formulation of appropriate industrial and social policies that optimize the potential of globalization for domestic growth and employment.

Social protection, production systems
and social institutions

130.12. Recent years have seen a weakening in the systems that have been established to ensure the complementarity between economic production and social distribution, such as the welfare state, collective bargaining and full employment economies. Most importantly, there has been an erosion of the consensus on collective social responsibility, which underpins both the welfare state and the developmental state. An examination will be undertaken of the prospects for future systems of human security. Much of the debate on the sustainability of such systems has been confined to their financial dimension. The examination will therefore focus on the importance of underlying factors, including production systems and patterns of employment; the changing role of social institutions, such as trade unions, business and the State; and the expanding informal and tertiary sectors. Systems in both the industrialized and developing world will be reviewed, together with the distributional implications of today’s high-growth economies. The work will be carried out in close collaboration with major programme 110 (Social security).

Means of action

130.13. The Institute’s means of action include the organization of social policy fora, such as lectures by international public figures; internship and educational programmes, including the provision of facilities for visiting scholars; publications; and research networking. Two internship programmes will be organized during the biennium for persons nominated by the Worker, Employer and Government groups. The ILO’s outreach to the international student community will continue to be promoted through the biennial ILO Nobel Peace Prize Lectures at the major universities of the world. In terms of programme implementation, special emphasis will be placed on associating workers, employers and policy-makers with academics, both to identify issues and contribute to policy formulation. External funding and networking will be sought, wherever possible, in accordance with the Governing Body’s policy that the Institute should serve as a facility for the ILO and its constituents, rather than as an independent academic body or research consultancy service.

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