Major Programme 280. Field Programmes in Europe and Central Asia

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

280.1. The countries in the region fall into three broad categories: the industrialized market economies in Western Europe; the countries that are undergoing the transition to a market economy in Central Europe; and the other transition countries in Eastern Europe and Central Asia. The latter two categories have been affected by the major economic, political and social changes that have taken place in Europe since 1989, and have faced profound economic and social problems in their transition to a market economy.

Priorities and objectives

280.2. The objective of the major programme is the development by constituents in the region of effective policies and programmes for the reform of labour legislation on the basis of international labour standards, the reform and development of social security systems, the restructuring of local labour markets and the development of small enterprises, the setting up and strengthening of labour administrations, the development of labour relations and tripartism, the protection of workers’ safety and health and the promotion and strengthening of independent employers’ and workers’ organizations.

280.3. The programmes and activities of the ILO in the region will be guided by the conclusions and resolutions of the Fifth European Regional Conference, held in Warsaw in September 1995, and by other recent developments in the region. The assistance provided will take many different forms, including the dissemination of information, the organization of seminars and workshops, and the provision of advisory and training services. The ILO offices in the region will cooperate closely with the multidisciplinary advisory teams for the preparation and monitoring of the implementation of country objectives and ILO strategies and plans of action. They will provide a framework for the work carried out on a country-by-country basis and for fund-raising activities.

Labour legislation reform and international standards

280.4. International labour standards continue to be of great importance in all spheres of ILO activity as instruments for the integration of basic workers’ rights into national law and practice. For countries in transition, as well as other countries in the region, ILO standards provide a valuable reference framework for the preparation and development of national law and the achievement of greater convergence between member States on economic and social matters. Progress has been achieved in most countries in the region, and particularly in the new member States in Central and Eastern Europe, in reforming national legislation to bring it into greater conformity with ILO standards. However, their practical implementation in a number of countries remains a matter of concern.

280.5. The objective in this programme is the greater awareness by constituents of the principles contained in ILO standards and of all aspects of the standard-setting system, including the obligations deriving from standards and the supervisory procedures, with a view to the more widespread ratification and application of international labour standards. In order to achieve these objectives, the ILO will continue and strengthen the advisory services provided in response to requests from constituents. It will also assist those countries wishing to adhere to the European Union by providing guidance in the revision and adaptation of labour legislation to meet accession requirements.

Social security reform

280.6. Throughout Europe systems of social protection are facing severe difficulties, both in terms of their cost and their capacity to respond to social needs. This is the consequence of slow economic growth and high and rising unemployment. In Central and Eastern Europe, it is also a result of the need for economic restructuring and the transition from a planned to a market economy. In addition, it reflects trends in the ageing of populations, in the structure of the labour market, the widening distribution of income and earnings, the diversification of family structures, the emergence of social and economic exclusion and the increased incidence of poverty. In this context, although a broader role will probably emerge for the individual and for non-public institutions, including the social partners, the ultimate responsibility for regulatory and supervisory measures will rest with the State.

280.7. The objective in this respect is the adaptation of social protection systems in Europe to respond to the new realities. Technical advice will be provided to member States throughout Europe in this difficult adjustment process. In accordance with the conclusions of the Fifth European Regional Conference, technical support in the field of social security will be strengthened for countries in transition. These countries have a general requirement for an exchange of experience on social security, combined with more specific needs relating to the development of institutional capacity, good governance in a tripartite context and especially the training of managers, technical analysts and the representatives of the social partners who are responsible for supervising social security schemes. The ILO will endeavour to reinforce the support that it provides in this respect through cooperation with the European Union and member States.

Local labour market restructuring and small enterprise development

280.8. The employment situation in the region has been characterized by the persistence of high unemployment rates in most countries, increasing wage inequalities in some industrialized countries and increased segmentation of labour markets. In the context of the major social and political changes in Central and Eastern Europe, regional integration and intensified competition, there is an increased need for concerted international action and appropriate national policies to combat unemployment. Growth in the transition countries has to be based on augmenting their international competitiveness and raising the productivity of labour. This has to be achieved through a continuation of market reforms and the restructuring of uncompetitive enterprises. Concerted tripartite action is of crucial importance in the formulation and implementation of employment policies that command sufficient support to address the adjustment needs of European economies and reconcile the necessary labour market adjustments with a high level of job security and worker protection. Measures also need to be taken to deal with the major impact on labour markets and employment of the privatization of public enterprises and their restructuring.

280.9. The assistance that is provided to constituents in this field will focus on the development of local employment strategies that promote the development of small enterprises, particularly in countries in transition and countries emerging from armed conflict. Support will be given for the development of strategies that bring together employers’ and workers’ organizations, government agencies and representatives of the private sector in order to promote local initiatives for employment generation.

Labour administration, labour relations and tripartism

280.10. Ministries of Labour have a key role to play in the development and implementation of economic and social policy and the promotion of social dialogue, particularly in countries that are undergoing the transition to a market economy or structural adjustment measures. However, the Ministries of Labour in most transition countries suffer from structural, personnel and organizational constraints that inhibit their capacity to respond to the new challenges. Similarly, newly emerging employers’ organizations and trade unions are still undergoing a process of development and adaptation to their roles in a market economy. In these circumstances, tripartite consultation mechanisms are not yet fully developed. The objectives of ILO activities in this field are the strengthening of labour administrations and of tripartite social dialogue, and the development of the capacity of constituents in these countries to fulfil their respective roles in tripartite consultation mechanisms in such fields as economic and employment policy, the reform of labour legislation, the settlement of labour disputes, safety and health, training institutions and social protection schemes. The activities undertaken at the national, regional and subregional levels to achieve these objectives will consist largely of technical advisory services, the exchange of comparative information and training seminars.

Safety and health

280.11. The deterioration in working conditions in transition countries is resulting in an increased number of requests from member States in the region for ILO technical assistance in this field. The objective in this programme area is the implementation by member States of occupational safety and health policies and programmes, including the appropriate laws and regulations. In order to achieve this objective, ILO assistance in the field of occupational safety and health will be intensified and will include the training of workers in safety and health matters and the dissemination of information.

Support for workers’ organizations

280.12. The functioning of independent, democratic and representative organizations of workers is a prerequisite for an equitable labour market and an effective social policy. In particular, the transition to a market economy and the probable accession of several Central European countries to the European Union have created new challenges for workers’ organizations in these countries. Workers’ organizations in Central and Eastern Europe and Central Asia need assistance to strengthen their structures so that they can genuinely represent the interests of their constituencies in collective bargaining, tripartite consultations on draft legislation, occupational safety and health bodies and in the management of social protection schemes. They also need support to become effective advocates on environmental issues, equality for men and women and the particular needs of workers in the informal economy. The objective of the support provided by the ILO is to strengthen workers’ organizations and adapt their structures and methods of action to the new conditions arising out of globalization and regional integration. The assistance provided will include technical support, training and the provision of information on effective systems of representation, the management of information and the organization of workers’ education programmes.

Support for employers’ organizations

280.13. Representative and effective employers’ organizations are a fundamental component of the institutional infrastructure required to support market economies in the countries of Central and Eastern Europe and Central Asia. They are instrumental in balancing the unchecked forces of the transition process and limiting the growth of informal economies. In many instances, employers’ organizations began forming in the earliest stages of transition. However, they met with greater challenges and more resistance than was at first expected, particularly as a result of the lack of tradition on which to build after decades of propaganda against private initiative and free enterprise. It is generally acknowledged that employers’ organizations need considerable support to help them fulfil their role in meeting the challenges of the ongoing transition processes and European integration. The objective in this respect is the strengthening of employers’ organizations in the countries of Central and Eastern Europe and Central Asia. The ILO is uniquely positioned to assist employers in these countries through activities to strengthen their organizational structures and train their professional staff so that they are able to develop the necessary strategic concepts and implement viable medium-term action plans.

Resources

280.14. The regular budget resources for this major programme show a net increase of some $570,000 in real terms compared with 1996-97 biennium. This increase mainly results from the additional resources required (some $0.9 million) for the transformation of the Moscow office into a second multidisciplinary advisory team for Eastern European and Central Asian countries and an increase of RBTC resources for field projects. These increases are in part offset by a saving of $80,000 in rent for the Liaison Office in Brussels following the decision made by the Governing Body in November 1996 to purchase the premises; and a further saving of some $207,000 due to the deletion of the provision made in the Programme and Budget for 1996-97 for an ILO technical adviser in Kazakstan.

280.1. Regional management, relations and support

280.15. Provision is made under this programme for the management, support and coordination of all the activities carried out under the regional major programme. One of the functions of the programme, in line with the active partnership policy, is to ensure that governments and employers’ and workers’ organizations in Europe are kept informed of ILO activities. The programme also has to ensure that these activities are coordinated with those of other United Nations organizations, in particular the United Nations Economic Commission for Europe, as well as intergovernmental organizations dealing with economic and labour matters in Europe, including the European Union, the Organization for Economic Cooperation and Development (OECD), the Council of Europe and the Organization for Security and Cooperation in Europe (OSCE). An important responsibility of the programme is to ensure the ILO’s involvement in the international coordination of assistance to Central and Eastern Europe and to maintain relations with the European Union and the European Bank for Reconstruction and Development (EBRD) for this purpose. The work of the programme includes the development of technical cooperation activities in the region.

280.2. Regional technical programmes

280.16. Provision is made under this programme for technical assistance to constituents in the region, mainly in Central and Eastern Europe and in the Central Asian countries. The main activities of the programme will include the identification, formulation and implementation of technical cooperation projects, the provision of technical advice through the multidisciplinary advisory teams and the organization of seminars, round tables, study tours and training courses in collaboration with the technical major programmes concerned and the Turin Centre. Where possible, increased use will be made of local expertise in the implementation of technical cooperation projects within the framework of the active partnership policy, particularly through the involvement of experts and institutions from transition countries in projects undertaken in other transition countries. In addition to the existing multidisciplinary advisory team in Budapest, a second team will be established in Moscow to cover the Russian Federation, Belarus, the Central Asian countries and the countries of Transcaucasia.

Central and Eastern European Multidisciplinary Advisory Team
(CEET)

280.17. The team is located in Budapest. It is composed of seven technical advisers and covers the following countries: Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, the Former Yugoslav Republic of Macedonia, Moldova, Poland, Romania, Slovakia, Slovenia, Ukraine and Yugoslavia. The Fifth European Regional Conference endorsed the role of the team and stressed that it should aim to: respond to the needs and priorities of member States and address the critical problems associated with the difficulties of economies in transition; promote tripartism and the development of democratic values and preserving social harmony through the close involvement of the social partners; support and strengthen independent employers’ and workers’ organizations, in order to promote collective bargaining and help them to become genuine partners in the social dialogue and defend the interests of their members; and strengthen technical cooperation in pursuit of these objectives. This team will play an important role in reaching these aims in addition to being responsible for relations with constituents in the countries it serves.

Eastern European and Central Asian Multidisciplinary Advisory Team
(EECAT)

280.18. This team is located in Moscow. It is composed of five technical advisers and covers the following countries: Armenia, Azerbaijan, Belarus, Georgia, Kazakstan, Kyrgyzstan, Russian Federation, Tajikistan, Turkmenistan and Uzbekistan. The team will develop and implement ILO technical programmes to support the process of democratization, taking into account the acceleration of certain economic and political processes in a number of CIS countries. This team will also play an important role in strengthening the social dimensions of these processes, in addition to being responsible for relations with constituents in the countries it serves.

280.19. RBTC resources of $692,000 are provided for field projects in order to permit a flexible response to requests for assistance, particularly from member States in Central and Eastern Europe and Central Asia. In the use of RBTC resources, priority will be given to activities to promote respect for basic human rights, develop tripartite institutions and establish mechanisms for the peaceful settlement of labour disputes. Assistance will also be provided to combat discrimination in employment and occupation against women and ethnic minorities, for the creation of productive income-generating jobs and for the protection of vulnerable groups.

280.20. In addition to RBTC, extra-budgetary resources will be used for technical cooperation activities in Central and Eastern Europe and Central Asia, as well as for regional projects. It is expected that donor agencies will continue to give priority to activities to develop employers’ and workers’ organizations, employment, active labour market policies, training systems, small enterprises and entrepreneurship and the social institutions that are essential to the transition process upon which most of these countries have embarked.

280.3. Network of offices

280.21. The aim of this programme is to serve ILO constituents in the region by maintaining and developing contacts with various national and international institutions and organizations, and particularly employers’ and workers’ organizations. ILO Offices provide various services to headquarters, such as collecting and disseminating information, arranging for visits and meetings, selling ILO publications and representing the ILO in national and international events. They also render important services in support of technical cooperation activities, such as the recruitment of experts and the placement of fellows. A number of them are involved in fund-raising and promoting the multi-bilateral technical cooperation programme. The MDTs in Moscow and Budapest which are directly involved in the implementation of technical cooperation activities will also be responsible for area office functions.

280.22. Provision is made under this programme for the Liaison Office in Brussels and the six branch offices in Ankara, Bonn, London, Madrid, Paris and Rome. The Brussels Liaison Office maintains relations with the European Union and functions as a branch office for the three Benelux countries. The area office in Ankara will be transformed into a branch office. The branch offices are accredited as ILO representatives to the following organizations: the International Maritime Organization and EBRD in London; the OECD and UNESCO in Paris; the Food and Agriculture Organization, the World Food Programme and the International Fund for Agricultural Development in Rome; and the World Tourism Organization in Madrid.

280.23. Provision is also made under this programme for the services of full-time or part-time correspondents in Bulgaria, Estonia, Kazakstan, Latvia, Lithuania, Poland, Romania, Slovakia, Ukraine and Uzbekistan. These correspondents are responsible for liaison between the ILO and its constituents in the countries concerned.

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