Major Programme 80. Industrial Relations and Labour
Administration

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

80.1. Systems of industrial relations and labour administration have been coming under increased strain in recent years. The issue is particularly critical in countries that have recently embarked upon the process of democratization, where the challenge is to develop new industrial relations systems. In more general terms, one of the consequences of globalization, deregulation and the liberalization of trade has been the increased economic importance, on the one hand, of small enterprises and, on the other, of large corporations, including multinational enterprises. At the same time, the protective provisions of labour legislation are coming under criticism from employers and some policy-makers, who claim that they are a hindrance to flexibility, productivity and competitiveness. Combined with the emergence of new forms of employment relationship and new approaches to human resource management in many enterprises, these developments are challenging the effectiveness of traditional systems of industrial relations and the representational function of trade unions. They are resulting in a fragmentation of interests among working people and an increase in the number of workers who are excluded from the scope of industrial relations machinery and social protection systems. As a result, labour administrations have an increasingly important role to play in securing decent working conditions through the effective application of protective labour legislation and in promoting the smooth functioning of labour markets. However, labour administrations in many member States, particularly in developing countries, remain weak and poorly structured and often lack adequate financial and human resources, especially as a result of the drastic cuts in public spending resulting from structural adjustment programmes. The most effective means of overcoming the current difficulties facing industrial relations systems is the strengthening of dialogue among the tripartite social partners, supported by a strong labour administration.

80.2. The objective of the major programme is the strengthening of social dialogue among the tripartite constituents with a view to achieving greater economic efficiency and social justice. This involves: the adaptation of labour law in member States to encourage the adjustment, through dialogue between the social partners, of the employment relationship to the changing realities of the market economy and globalization; the development of industrial relations systems that strengthen democracy through social dialogue and enable the social partners to participate in the formulation and implementation of economic and industrial policies that are conducive to both social equity and enterprise efficiency; and the establishment and upgrading of labour administrations capable of implementing social policies that support economic development.

80.3. These objectives will be achieved through the provision of technical advisory services, supported by technical cooperation activities, the organization of meetings, research activities, the collection and dissemination of information and standard-setting activities in the fields of labour relations and pay policies, labour legislation and labour administration services. During the biennium 1998-99, the activities of the major programme in the area of the collection, analysis and dissemination of data will be rationalized and enhanced by the creation of an Industrial Relations Information Network (IRNET) which will make use of the potential of information technology to develop networking arrangements with the multidisciplinary advisory teams, other industrial relations databases and research centres. IRNET will be the focus of the collection, analysis and dissemination of information covering all the technical activities of the major programme and as such will promote the more widespread dissemination of technical information on industrial relations and enhance the visibility of the ILO in this respect. Methodological tools will be developed to facilitate the design and implementation of action-oriented information systems on labour administration. Interdisciplinary research will be carried out on labour relations, and particularly cooperative approaches to collective bargaining, the role of labour relations in improving the content and quality of work and public sector pay. A tripartite meeting on export processing zones will also be held during the biennium.

80.4. The resources for this major programme have increased by some $1.2 million in comparison with the biennium 1996-97. There is an increase of 3/07 Professional work-years and 5/0 General Service work-years as well as an overall increase of some $64,000 in non-staff costs. In order to render ILO services to constituents more effective in these technical fields, the former Labour law and labour relations programme is now presented as two programmes: the Labour law programme and the Industrial relations programme. This reorganization will permit a more focused approach to the problem of industrial relations in member States, a vital area as regards economic and social development, and structural adjustment.

80.1. Department management

80.5. Provision is made under this programme for the director of the department and secretarial support. The RBTC provision of some $496,600 will be used to fund the activities described under the respective programmes.

80.2. Labour law

80.6. The political and economic changes taking place in many member States raise the question whether existing labour legislation is well adapted to present day needs. Democratization requires the reform of their labour law to ensure adequate protection of the basic workers’ rights that underpin democratic processes. At the same time, in the context of heightened competition arising from globalization, established labour law rules must not only protect the welfare of workers but also contribute to the competitiveness of enterprises and the economy at large. Similarly, structural adjustment programmes often rely on labour law to establish a framework within which economic adjustment can occur while taking due account of social considerations. In some countries certain legislative provisions are criticized as hindering structural adjustment, enterprise efficiency and employment creation. Many countries do not have adequate capacity for assessing the likely impact of particular kinds of labour law provisions on worker protection and economic efficiency. The evaluation of labour law’s economic impact requires careful analysis of the national economic, political, legal and social context, as well as a knowledge of the evolution and revision of labour law in other countries. Linked to the need to revise labour law is the need to reform the machinery for enforcing labour legislation, in particular procedures for settling disputes over rights, such as grievance procedures in the enterprise and labour court procedures. The settlement of rights disputes in a way that is efficient, equitable and transparent is posing problems in some countries.

80.7. The objectives of this programme are: (a) the adoption of labour legislation which reinforces basic human rights guarantees, regulates the employment relationship in ways that satisfy the need for both social equity and economic efficiency while enhancing the capacity of social partners to participate in dialogue; (b) increased capacity of ILO constituents to choose among differing approaches to the formulation of such labour legislation; (c) the enhanced capacity of ILO constituents to draft and implement labour legislation; and (d) the improvement of procedures for settling disputes on the application of labour law and the contract of employment. With respect to the last objective, this programme will deal only with disputes under law, not with collective bargaining disputes, which fall under the competence of the Industrial Relations programme. More generally, the work of this programme will focus on the legal aspects of the individual relationship between employers and workers. Also, the Labour Law programme will seek to achieve the adoption, by member States, of labour legislation which provides an adequate framework for effective tripartite consultation, collective bargaining, workers’ participation and the settlement of labour disputes, working in close collaboration with the Industrial Relations programme. These objectives will be pursued having regard to international labour standards and taking into account national conditions and the varying economic and social situations in member States.

80.8. The activities carried out under this programme  will  mainly  consist  of  technical advisory services and support for technical cooperation activities to assist member States in reviewing and revising their labour legislation. The need for ILO advisory services is increasing and it is expected that some 40 requests for advisory services will be received and dealt with by this programme in 1998-99. Advisory services will mainly take the form of drafting labour laws, consulting with employers and workers and their organizations regarding existing laws and their perceptions of required changes, providing information and advice to national legislative policy-makers, commenting and advising on draft laws drawn up by member States, and participating in tripartite discussions of labour law revision. Activities which concern the legal regulation of collective labour relations, including collective bargaining, settlement of interest disputes, workers’ participation and wage determination, will be carried out jointly with the Industrial relations programme.

80.9. With a view to promoting internal efficiency as well as the building of national capacity, guidelines on labour legislation will be elaborated in order to assist the revision of existing labour legislation or the drafting of new legal texts. These guidelines will be designed to promote the development of sustainable national expertise in legal drafting. The ongoing dialogue between the ILO and the World Bank on this subject will be pursued with a view to promoting a better understanding of the relationships between labour law, social justice, economic efficiency and the need for tripartite consultation. This programme is also responsible for standard-setting activities, including the second discussion at the Conference in 1998 of possible international standards on contract labour.

80.10. The collection, analysis and dissemination of information will focus on current issues related to the contract of employment, precarious forms of employment relationship and the settlement of disputes concerning the application of labour law and the employment contract. A digest will be prepared on the rights and obligations of employers and workers in the event of the sale or merging of enterprises in the context of privatization or restructuring. In that context, labour law provisions dealing with rights and obligations of workers and employers in the event of sale or transfer of enterprises constitute an important framework of reference for all parties. This digest will provide information on 30 to 40 major countries in which legislation on this issue has been introduced or revised. This work will contribute to the Industrial Relations Information Network (IRNET) to be developed under the Industrial relations programme.

80.11. Subregional seminars will be organized in order to promote discussion on problems of implementation of international labour standards such as the Termination of Employment Convention (No. 158), 1977 and Recommendation (No. 166), 1982, the Workers’ Claims (Employer’s Insolvency) Convention (No. 173) and Recommendation (No. 180), 1992, and any instrument adopted in 1998 on contract labour. One such seminar will be organized in Africa or Latin America, financed by RBTC resources, in collaboration with major programme 50 (International labour standards and human rights) and the relevant multidisciplinary advisory teams. Another seminar will be organized along the same lines in the other region if resources are available.

80.12. Extra-budgetary resources amounting to some $2.2 million are expected to become available for technical cooperation activities. RBTC resources will be used to respond to requests for assistance from constituents, particularly in countries implementing structural adjustment programmes or undergoing transition to a democratic society and a market economy. Extra-budgetary and RBTC resources will also be used to finance seminars and meetings for the tripartite discussion of major issues of labour law, with a view to assisting member States in the formulation and implementation of national policy on these issues.

80.3. Industrial relations

80.13. Recent political and economic changes have placed national industrial relations systems under considerable strain. Effective social dialogue between the tripartite constituents is an important means of consolidating the democratization process that is under way in a number of countries. Harsher competition in globalized markets is also making it indispensable, although increasingly difficult, to achieve consensus among the social partners on how to reconcile greater competitiveness and social justice. Increasing economic interdependence is challenging the effectiveness of national systems of labour relations in regulating the relationship between employers, and particularly multinational enterprises, and workers. The decentralization of collective bargaining in many countries is making it necessary to restructure and adapt labour relations institutions. New forms of human resource management based on individual relations between employers and workers are challenging the representational role of trade unions and other institutions. Moreover, in many developing and transition countries employers’ and workers’ organizations are relatively weak and the machinery for collective bargaining and dispute settlement is often fragile or ineffective.

80.14. The objectives of this programme are: the strengthening of tripartite social dialogue and collective bargaining as a means of reconciling the aims of economic efficiency and social justice; the establishment and development of machinery for the peaceful settlement of labour disputes; and the design and implementation of pay policies and systems consistent with increased efficiency and equity considerations. Assistance will be provided to constituents for the achievement of these objectives through technical advisory services and technical cooperation activities. These activities will be supported by the collection and dissemination of information on important issues in the fields of labour relations and remuneration, as well as by research and the development and promotion of international labour standards. An Industrial Relations Information Network (IRNET) will be developed using modern information technology in order to extend the information capabilities of the programme by first consolidating existing data resources into easily accessible and visible products, and secondly providing an interactive industrial relations information service for ILO headquarters and the field structure. Research activities will focus on: the role of labour relations in improving the quality and content of work; workers’ representation in multinational enterprises; and public sector pay systems. Administrative support will continue to be provided to the International Industrial Relations Association (IIRA), through which the ILO gains access to the industrial relations expertise of academics and practitioners around the world in support of its research and technical assistance activities. The programme’s activities to promote tripartite institutions and procedures will be designed to give effect to the conclusions adopted by the Conference in 1996 concerning tripartite consultation at the national level on economic and social policy, and the achievement of full employment in a global context: the responsibility of governments, employers and trade unions.

80.15. One focus of data analysis and information activities will be the provisions of bipartite and tripartite agreements that address the issues of job creation, job protection and enterprise competitiveness through measures such as trade-offs between a commitment by the management to keep existing and/or create new jobs and union cooperation in productivity improvement and labour cost containment. The findings of this work will be published in an information digest and disseminated to ILO constituents as a source of reference on innovative approaches to employment issues through collective bargaining.

80.16. RBTC  resources  will  continue  to  be  used to respond  to  requests  for  assistance  from constituents, particularly in countries implementing structural adjustment programmes and those that are seriously affected by economic change or undergoing the transition to a democratic society and a market economy. RBTC resources will also be used to finance seminars and meetings for the tripartite discussion of major issues in the fields of labour relations and wage policies.

Improving the content and quality of work

80.17. Research will be undertaken and information disseminated on the role of labour relations in improving the content and quality of work. The growing pressure on enterprises to improve productivity is focusing attention on how to increase worker motivation, particularly through improvements in the content and quality of work. Although several experiments are underway in member States, their results often fall short of expectations. The reasons for this failure include the lack of labour-management cooperation and of adequate reforms of the pay system to accompany changes in the content of work. The objective of this work is a greater understanding by constituents of how the content and quality of work can be improved through joint cooperative action with a view to increasing worker satisfaction and motivation and enterprise productivity. A related objective is an improved understanding by constituents of the relationship between the quality of jobs and pay systems. Information will be collected and analysed on the role of collective bargaining and workers’ participation in improving the content and quality of work with a view to identifying ways of enhancing the effectiveness of labour relations machinery in this area. The findings of this work will be published in an information digest for use by the social partners as a source of reference.

Workers’ representation in multinational enterprises

80.18. Another area in which research will be carried out is workers’ representation in multinational enterprises. Most strategic decisions in multinational enterprises are taken at headquarters. As a result, employees in their overseas operations often find it difficult to safeguard their interests through negotiations and consultations with local management. The most dramatic cases concern plant closures and large-scale redundancies due to central management decisions to suspend operations or transfer them elsewhere. Trade unions throughout the world have therefore been demanding the establishment of machinery for negotiation or consultation at the corporate level. In the European Union, this led to the adoption in 1994 of a Directive on the establishment of a European Works Council or an employee information and consultation procedure in Community-scale undertakings and groups of undertakings. Many of the representative institutions established under this Directive will soon have been in existence for several years. The objective of this research is a better understanding by constituents of the current situation as regards worker representation and information in multinational enterprises and of the factors that contribute to the successful operation of participative mechanisms in those enterprises. The extent of consultation in Community-scale enterprises in the European Union and in multinational enterprises outside the European Union will be assessed and the functioning of existing representative institutions analysed with a view to identifying the conditions for their successful operation and replication. The findings will be set out in reference materials on workers’ representation in multinational enterprises which will be disseminated to constituents and used by ILO officials in advisory services.

Public sector pay

80.19. Pressure to reform public sector pay systems continues as governments seek to control public expenditure and improve efficiency. However, even in a situation of the decentralization of management and pay administration, middle-level public sector managers frequently exercise little significant authority on pay questions and there is only limited involvement by employees in pay decisions. Research will therefore be carried out on the changes taking place in public sector pay systems with a view to providing constituents with the information that they require to be able to improve public sector pay policies and systems and adapt them to the changing nature of public sector jobs and organizational goals. The results of this research will be included in materials to support advisory services in this field.

Tripartite Meeting of EPZ-operating Countries

80.20. In the biennium 1996-97, an action programme on Labour and social issues relating to export processing zones (EPZs) is being implemented in order to clarify the relationship between the economic, social and labour dimensions of EPZs, and to assess the factors that enable EPZs to combine economic efficiency with social benefits. The work of this action programme is also focusing on the extent to which labour and social practices have been, or can be, shaped by targeted incentives, education and training, and national and international policy measures. This work should provide a basis for designing and developing EPZs in a manner that optimizes their impact on employment, conditions of work and overall development. A Tripartite Meeting of EPZ-operating Countries will be held in Geneva for five days ($168,000) to consider how to improve the economic and social performance of EPZs and the extent to which international labour standards can provide an appropriate basis for the conduct of social and labour issues in EPZs. It is intended that the Meeting should agree on guidelines for the establishment of a conducive climate for investment and improved employment relations in EPZs. Ten tripartite delegations will be invited to attend the Meeting, which was originally planned for the biennium 1996-97.

Action programme

Cooperative approaches to collective bargaining

80.21. Collective bargaining is far from being a widespread practice in many ILO member States, particularly in developing countries and countries in transition, but also in some newly industrialized countries. It is even losing ground in some industrialized countries in which it was hitherto fairly well developed. Moreover, the process of collective bargaining has also been undergoing transformation, from a purely distributive process to one in which greater emphasis is placed on seeking mutual gains through cooperative negotiations. Current trends towards the decentralization of collective bargaining are increasing the need for training in negotiating techniques and the development of more cooperative approaches to collective bargaining at decentralized levels, where the parties often lack adequate expertise. There is therefore a widespread need for the representatives of workers’ and employers’ organizations to be trained in the techniques of negotiation in general, and in modern approaches to problem-solving and bargaining for mutual gains in particular.

80.22. The objective of this action programme is the development of greater expertise by the social partners in cooperative approaches to negotiation that are beneficial to both parties, as a means of increasing the incidence of collective bargaining. Research will be carried out on successful cooperative bargaining practices. The training approaches adopted in various member States will be reviewed and evaluated with a view to integrating the merits of each experience into a coherent training method applicable to ILO tripartite constituents. The findings of this work will be published in reports and discussed in a series of national and subregional seminars, which will identify the needs of the tripartite constituents in a number of countries and regions. Training materials will be designed for union and management representatives and will cover cooperative bargaining in general, as well as negotiating techniques on newly emerging subjects, including technological change and the organization of production.

Action programme

The contribution of industrial relations to regional economic integration

80.23. A common feature of the regional economic integration processes currently occurring in various regions of the world is the harmonization of substantive national law and practice. These include economic and social regulations, where the objective of harmonization may be to achieve greater flexibility in certain aspects of the labour market in all the countries of the region, or to “take labour out of competition” through the observance of certain minimum standards in all the countries concerned.  While  “harmonization”  clearly  does not mean “uniformization”, it would nevertheless appear that there are currently several fields, including industrial relations, in which harmonization needs to make some progress.

80.24. The objective of this action programme is greater awareness by the relevant decision-makers of the contribution that industrial relations can make to integration processes, with a view to the strengthening of the role of industrial relations in regional integration. Information will be prepared for the use of decision-makers in countries that are in the early stages of a regional integration process or are interested in initiating such a process with a view to assisting them in their assessment of the contribution that industrial relations can make to regional integration, and the form that it should take. The information will be compiled on the basis of the experience of existing regional groupings, including the European Union, Mercosur and NAFTA. It will include an analysis of the ways in which national industrial relations systems have been harmonized, the industrial relations machinery that has been established at the regional level and the areas in which substantive economic and social rules (such as the protection of workers in the event of termination of employment, the legal status of “new” forms of employment relationships or flexible work schedules) have been harmonized through industrial relations institutions and procedures. The information that is prepared will be made available in a variety of manners, including written materials, the provision of technical advisory services and the organization of regional seminars.

80.4. Labour administration

80.25. The world of work is being deeply affected by the integration of national economies into world trade. The restructuring process that is taking place is having a considerable impact on workers, enterprises and the labour market. New demands for improved productivity imposed by rapid technological changes and a more competitive environment are influencing working conditions, employment, skill needs, and the level and nature of unemployment. In this context, labour administration systems and Ministries of Labour have a very important role to play as their functions include improvement of working conditions, settlement and prevention of labour disputes, strengthening of social dialogue, transparency and fluidity of the labour market, and development of adequate vocational training systems. To fulfil this role effectively, labour administration systems and Ministries of Labour must constantly adapt their actions and services. They need to develop new forms of organization, management and intervention. However, many labour administrations are unable to fulfil their important functions adequately, particularly in view of the drastic reductions that are being made in public expenditure and the need to constantly justify the cost of their activities.

80.26. The objective of this programme is the design and implementation by labour administrations, including labour inspection systems and employment services, of more effective policies and measures for the protection of workers and the improved functioning of labour markets. Taking into account the important changes in the world of work, emphasis will be placed on the development of new reference points and methodologies to improve the services provided to constituents. These objectives will be achieved through the provision of technical assistance and support for technical cooperation and training activities, particularly in the fields of the organization and functioning of labour administration systems, labour inspection and public employment services. These activities will be supported by the collection, analysis and dissemination of information and the production of reference materials and analytical tools. In addition to the analysis of reports on ratified Conventions, activities will be undertaken to promote the revised instruments on fee-paying employment agencies that are expected to be adopted by the Conference in 1997.

80.27. Extra-budgetary resources amounting to some $6.3 million are expected to be made available for technical cooperation activities in this field. RBTC resources will be used to support national technical cooperation projects and the technical assistance provided by the multidisciplinary advisory teams.

Development of labour administration

80.28. An effective labour administration system plays a vital role in the formulation and implementation of national labour policy. It is an essential factor of a successful development policy and the achievement of social progress. However, particularly in developing countries, the capacity of labour administrations to respond to current challenges is often impaired by shortage of resources and qualified managerial staff. The objective of this subprogramme is the development of effective labour administrations that are capable of adapting to the current radical changes in the world of work, while at the same time safeguarding the protection of workers and social progress. The assistance provided to achieve this objective will concentrate on strengthening institutions, improving their functioning and reinforcing the participation of the social partners in the design and implementation of national labour policies. The activities undertaken will include the provision of direct technical advisory services to Ministries of Labour, training activities for managerial and skilled staff, and tripartite evaluation missions. Through the implementation of technical cooperation projects, support will be provided to assist in the organization and operation of Ministries of Labour, including the departments responsible for relations with the ILO, and for providing advice and other services to employers’ and workers’ organizations. The database on national labour administration systems will continue to be updated and comparative information and references will be disseminated to constituents.

Action programme

Organization and management of labour administration systems

80.29. In accordance with the Labour Administration Convention (No. 150) and Recommendation (No. 158), 1978, labour administration systems encompass a variety of institutions and a wide range of activities in the fields of labour standards, employment and human resources development, labour market information and industrial relations. Depending on the country, these activities and research on labour matters are carried out by Ministries of Labour in cooperation with other competent bodies and with the active participation, sometimes at a very high level, of the social partners. However, little knowledge is available of the most effective types of activities, and nothing is known of the prerequisites for their success. The results of these activities, and the manner in which they are evaluated, vary greatly, although it is clear that they have a crucial role to play in the advance of economic democracy.

80.30. Moreover, labour administrations in member States vary in the manner in which they react to the repercussions of globalization and the liberalization of world trade. In addition to adapting to technological, economic, financial and commercial changes, many countries have already had to review their public finances and carry out structural adjustments, the results of which have had a direct effect on Ministries of Labour and the public institutions responsible for labour administration. Labour administrations therefore have to demonstrate their capacity to improve their services and reduce their costs by proper evaluation techniques.

80.31. The objective of this action programme is an improved knowledge by constituents of effective methods of organizing and managing labour administrations, so strengthening Ministries of Labour. This objective will be achieved through the provision to governments and employers’ and workers’ organizations of information on labour administration systems throughout the world, including the role played by the social partners, their resources, trends in their development and significant achievements. A methodological framework will be developed to assist national policy-makers in their consideration and adoption of policies covering their labour administration systems. A guide will also be prepared on internal evaluation methods of the services (labour inspection, public employment services, placement of jobseekers, implementation of employment programmes, services to social partners, etc.) provided by the various labour administration institutions. A publication based on some ten case studies will be prepared describing the main systems of labour administration, taking into account geographical, cultural and economic criteria, with a view to providing structured information on their functions, organization, management and resources. Information on the economic situation and industrial relations in the countries concerned will also be included to facilitate understanding of the system. A publication will be produced on the methodology of analysing these situations to assist decision-makers. Finally, current internal evaluation systems in labour administrations will be analysed and a guide produced on such systems and the methods of evaluation applied.

Labour inspection

80.32. Although the fundamental function of labour inspectorates is to monitor the implementation of legal provisions for the protection of workers, their activities and responsibilities have been progressively broadened as a result of economic and social development. However, technological change and globalization are making it even more difficult for labour administrations in many developing countries to provide effective and productive labour inspection services, especially in view of the additional financial constraints arising out of structural adjustment programmes. It is therefore necessary to continue providing assistance to strengthen labour inspection services, particularly through the promotion of the relevant international labour standards (Convention No. 81 has already been ratified by 118 countries) and the analysis and identification of new methods of organizing and managing labour inspectorates.

80.33. The objective of this subprogramme is the establishment and strengthening in member States of effective mechanisms through which labour inspection systems can fulfil their mission efficiently. This objective will be achieved through advisory services, the organization of training activities and support for technical cooperation activities. In order to strengthen the implementation of labour laws, a campaign of promotion and information on labour inspection systems such as defined by Conventions Nos. 81 and 129 is necessary. Tripartite regional meetings will therefore be held in Latin America, South-East Asia and Africa, to assist countries that have not ratified these Conventions. Based on the outcome of these meetings, an analysis will be undertaken of problems in the ratification and application of these instruments, with a view to increasing the number of ratifications of these Conventions. Information and advocacy materials will be prepared for the use of the multidisciplinary advisory teams in this context. These activities will be supplemented by the development and updating of the database on labour inspection established during the biennium 1996-97 and by tripartite missions to evaluate the effectiveness of national labour inspectorates. Support will also continue to be provided to the International Association of Labour Inspection, which is a useful source of information and contacts with national labour inspectorates.

80.34. The ILO will provide governments, employers’ and workers’ organizations and experts with information on labour inspectorates at a time of great change in the social and technological nature of work and in its organization. Taking account of a study of some 20 selected countries, a manual will therefore be prepared as an operational tool to assist in decision-making by national leaders, the training of labour inspectors and the provision of information to all those concerned, and particularly the social partners.

Employment services

80.35. The challenge facing public and private employment services is to reduce unemployment and underemployment, by improving the functioning of the labour market. This requires collaboration between the multiplicity of labour market actors, including both public and private employment services. The effectiveness of the labour market depends on its transparency, the rapidity with which job vacancies and applicants are matched and its capacity to anticipate and adapt to future economic developments. How effective it is also depends on the relations between the various labour market actors.

80.36. The objective of this subprogramme is the improved performance of employment services, public and private, in promoting employment. In the assistance provided to constituents, emphasis will be placed on the effect to be given to a revised version of the Fee-Charging Employment Agencies Convention (Revised), 1949 (No. 96), which is likely to be adopted by the Conference in 1997. In close collaboration with the multidisciplinary advisory teams, support will be provided to member States on how to better articulate the employment promotion activities of both public and private employment services. An information campaign will be undertaken to increase awareness of the principles contained in the proposed new instruments, including four regional tripartite information seminars. These activities will be supported by the continued updating of databases on public and private employment services.

80.37. The productivity and profitability requirements imposed upon employers by globalized markets, and the resulting changes in the skill needs and flexibility of workers and jobseekers, require a re-examination of the role of public employment services, both as regards their users and in terms of their relationship with private employment agencies. Most industrialized countries and many developing countries suffer from serious deficiencies in matching the supply and demand for labour. Neither public nor private employment services are capable of providing labour market transparency and sufficiently effective services to overcome these major difficulties. However, many initiatives have been undertaken by member States in response to this problem which needs to be documented, analysed and brought to the knowledge of experts and those responsible for the design and development of employment policies. Taking account of the information available to the ILO and an in-depth analysis of the employment services in a number of countries, a technical manual will be prepared containing information on developments in the role and activities of employment services. The problems facing employment services will be identified and an analysis made of the various approaches adopted to respond to them. The types of services provided by employment services will be examined and changes in the organization and activities of public and private employment services will be described as a function of their strategic choices and labour market intervention policies. In-depth studies will be carried out in some ten to 15 countries as a basis for the publication of a reference work on this subject.

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