Major Programme 225. Employers’ Activities

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

225.1. The ILO’s activities to maintain and develop close relations with its employer constituents, and to assist in the establishment and development of independent and representative organizations of employers, are a fundamental component of its work in the field of tripartism. An important aspect of this work consists of increasing employers’ awareness of the ILO’s objectives and activities and ensuring that the views and interests of employers and their organizations are taken into account in the overall work of the ILO.

225.2. Strong and effective organizations representing employers are essential to tripartite dialogue and the development of social policy. They are also necessary to ensure that the economic environment is conducive to the development of enterprises, and therefore to the creation of employment and incomes. To fulfil these important roles, employers’ organizations have to attract and retain membership through the provision of services, including representation, that respond to the needs of enterprises. This is a challenging task in the current climate of turbulence and change, not least because the factors affecting the environment in which enterprises operate are in constant flux. Employers’ organizations have to anticipate and adapt to enterprise needs if they are to maintain and increase their usefulness and relevance. While their traditional functions in the labour market continue to be important, many organizations of employers are under pressure to broaden their activities and provide a more comprehensive range of services.

225.3. In countries undergoing the transition to a market economy, including those emerging from situations of armed conflict, independent organizations of employers are an essential engine for the growth of the private sector. However, they face the very difficult task of seeking membership and establishing their legitimacy in a context in which there is no tradition of voluntary, private, associative organizations. Particular emphasis will therefore continue to be placed on supporting the development of employers’ organizations in these countries during the biennium 1998-99.

225.4. The objectives of this major programme are: the development of strong, representative and independent organizations of employers; the enhancement of their capacity to provide services to their members, improve labour relations and practices at the workplace and participate effectively, with governments and workers, in the formulation of national social and labour policies; and the closer association of employers’ organizations with the work of the Office. In the work of the major programme, priority will continue to be given to developing partnership and mutual support with the ILO’s employer constituents. Emphasis in technical cooperation activities will be placed on helping employers’ organizations improve the quality and range of services that they offer to their members.

225.5. The resources for this major programme are reduced by some $47,000, as a result of economies in non-staff costs. RBTC resources amounting to some $1.76 million will be provided to respond to requests for advisory services and to cover the organization of meetings, training programmes and study tours. In addition, it is expected that some $2 million will become available from multi-bilateral sources for technical cooperation.

Relations with employers’ organizations

225.6. The maintenance of close relations with the ILO’s employer constituents at the international, regional and national levels is an essential aspect of the work of this major programme. This involves working closely with the representative organizations of employers with the objectives of: promoting the principle of tripartism and the basic values of the ILO among employers’ organizations and their members; keeping them informed of ILO activities, initiatives and concerns; and keeping the Office aware of the concerns and interests of employers and their organizations.

225.7. The work of the subprogramme includes taking responsibility for advising the Director-General and programme managers on the current policies and views of employers and their organizations, so that they are taken into account in the development of ILO policies and programmes. Information on ILO activities is transmitted to national and international organizations representing employers, and the ILO’s information resources are made available to them. The interest and involvement of employers and their organizations in ILO activities is promoted and liaison is maintained between the Office and employer participants in ILO meetings and other activities, including those organized by the Turin Centre. The work of the subprogramme includes participation in Office-wide activities, including action programmes and the activities of the International Institute for Labour Studies and the Turin Centre.

Supporting employers’ organizations in the context of major political changes

225.8. Employers’ organizations in countries that have recently undergone major political developments face particular difficulties in adapting to the new situation. The institution-building initiatives adopted during the biennium 1996-97 to help in the establishment and development of employers’ organizations in these countries will be continued in 1989-99 and perhaps beyond, depending on the pace of reform. Increased support will be provided to the Palestinian employers’ organization with a view to establishing a better economic basis for the peace process in the Middle East. Assistance to employers’ organizations in Central Asia will be designed to foster the process of privatization and economic transition. Support will continue to be required by employers’ organizations in South Africa to help the black business community participate effectively in national development. Similar activities will also be carried out in countries emerging from situations of armed conflict, such as Angola and Bosnia and Herzegovina.

Assistance to employers’ organizations

225.9. Under the pressure of increased competition and tighter markets, enterprises the world over have identified human resources development as a key element for their survival and prosperity. In response, employers’ organizations in many countries have seized upon the opportunity to strengthen the human resources development services that they provide, especially in the form of training courses in managerial and supervisory skills and productivity improvement programmes. Other areas in which they are developing services include safety and health and the environment, particularly in response to the growing complexity of the regulations in these fields. Some organizations find it feasible to develop their own capacities in these areas, while others prefer to make strategic alliances with more specialized agencies. Moreover, issues of child labour and human rights are taking on increased importance as factors in the business environment, with enterprises often looking to their representative organizations for appropriate leadership and initiatives. The ILO can assist in these areas, which are central to its mandate, through the provision of both technical and logistical support.

225.10. Although employers’ organizations in a few developing countries have already become efficient suppliers of key services to enterprises, in the great majority of countries they continue to require assistance in order to do so. Organizations in countries undergoing the transition to a market economy, including several that are emerging from situations of armed conflict, need special assistance in this respect.

225.11. The objective of the subprogramme is the strengthened capacity of employers’ organizations to provide more and better services to enterprises with a view to attracting and retaining their membership. During the biennium 1996-97, a programme was launched to promote the adoption by employers’ organizations of strategic plans for their future development. These plans take account of short and medium-term trends in the business environment in which enterprises operate and identify the services provided by employers’ organizations that could be improved or changed, or which it would be feasible to add to their current activities. Wherever necessary, assistance is provided for the development of strategic plans and the strengthening of the capacity of the organizations to provide the services identified in these plans. The adoption of this approach helps to ensure that the assistance provided by the ILO responds to the long-term needs identified by employers’ organizations.

225.12. Over recent years, the ILO’s programme of assistance to employers’ organizations has evolved considerably, growing in both responsibilities and resources, where the main increase has been in external funding. The assistance provided takes the form of advisory services, staff training programmes, the organization of regional, subregional and national meetings and workshops, study tours, the exchange of information and the development of networks. Emphasis in these activities will continue to be placed on increasing the professionalism of the staff of employers’ organizations and enhancing their expertise in the fields of industrial relations, human resources development, management training, productivity improvement, safety and health, the working environment and the promotion of small and medium-sized enterprises. Support will be provided for technical cooperation activities in the above areas. Provision is also made to cover advisory services by ILO staff, the multidisciplinary advisory teams and consultants made available through employers’ organizations in order to provide a timely response to requests for assistance.

225.13. Where a pattern of needs is discerned in a specific field, projects will be formulated and extra-budgetary resources sought for their financing. During the biennium 1996-97, projects of this type were managed in the areas of human resources development, industrial relations, productivity, structural adjustment, international labour standards, cleaner production, gender issues and the management of employers’ organizations. It is expected that donor support will continue to be forthcoming for activities of this nature during the biennium 1998-99.

International Symposium on the Future of Employers’ Organizations

225.14. Provision was made during the biennium 1996-97 for a meeting on the changing role of employers’ organizations as a consequence of globalization and liberalization. Because of the financial situation, the Governing Body decided not to hold this meeting during that biennium. However, the subject remains very topical. The needs of enterprises are evolving for many reasons, including increased competition, liberalization, changing production structures, work practices and relations. The economic importance of the small enterprise sector has greatly increased. As providers of services to enterprises, employers’ organizations are directly affected by these developments. Their traditional focus on industrial relations and advocacy in social policy issues remains important, but less so. Several employers’ organizations have already begun to adapt to their new environment, and many others are looking for new ways to remain relevant and useful to their membership. An international symposium will therefore be held and will bring together 24 employer experts in Geneva for four days ($119,000). The meeting will examine the role of employers’ organizations in the next century in the light of developments and trends in enterprise needs. The participants will review the environment in which employers’ organizations operate, identify trends and exchange experiences of new initiatives. Special emphasis will be placed on innovative services in the areas of human resources development and support for the small enterprise sector.

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