Tripartite Meeting on Challenges and Opportunities Facing Public Utilities

Geneva,19-23 May 2003

The main challenge for water, gas and electricity providers is to maintain a balance between commercial and business concerns, calling for cost-efficient, profitable operations and broader public service values that emphasize the provision of cheap, reliable and widely accessible services, whether the ownership is public or private. For public and private enterprises, there are inherent challenges and opportunities in protecting and investing in workers; meeting energy diversification needs and environmental friendliness through cleaner and "greener" energy; and providing services to the poor and to rural areas. These challenges and opportunities are highlighted in the United Nations Millennium Development Goals and the sustainable development summits.

It is widely accepted that electricity, water and sanitation are essential for economic growth. The smooth supply of all services, and also the level of employment opportunities in all other sectors, depends on an ample supply of water and electricity. However, more than 1.6 billion people lack access to electricity, at least 1.1 billion people do not have safe drinking water, no fewer than 5 million people die each year from water-related diseases, and it is likely that by 2025, two-thirds of the world’s population will live in countries with moderate or severe water shortages. These statistics present major challenges for utility providers.

Liberalization and globalization have favoured the concentration of investment and employment into larger multinational utility companies through mergers and acquisitions, raising concerns about excessive market power, potential redundancies, increased tariffs and inequitable access. However, multinational enterprises in the utilities sector can be a force for good as they extend wealth and technologies that offer efficiency and raise standards of living in general. Although private sector involvement in utilities is a continuing trend, it must be borne in mind that publicly owned utilities maintain a strong presence across the globe.

Regardless of who is providing services, companies are increasingly being called upon by consumer interests, investors, workers, governments and the international community, especially the United Nations and its specialized agencies, to demonstrate good governance and corporate social responsibility. As these industries change, the ILO can play an important role in facilitating dialogue between the social partners and others on the ways and means to manage such change in an economically, environmentally and socially responsible manner, that is, in a more sustainable way.

The ILO organized a Tripartite Meeting on Challenges and Opportunities Facing Public Utilities from 19 to 23 May 2003, on the basis of a background report entitled Challenges and opportunities facing public utilities (pdf, 542k). The purpose of the Meeting was to discuss relevant developments in utilities, the research priorities for the ILO in the sector and the need for capacity building for social dialogue. Eleven Governments, 17 Employers and 15 Worker delegates attended the Meeting, as did 15 observers. Participants exchanged views and shared experiences on the subject matter of the Meeting and unanimously adopted conclusions (pdf, 24k) including appropriate policy action to address issues of concern around the following general themes: the provision of utility services and its impact on employment; governance, corporate social responsibility and efficiency in utility services; social dialogue in the provision of utility services; and ILO action. A resolution (pdf, 13k) regarding future ILO activities was also unanimously adopted.

The Note on the proceedings is also available in pdf format (245k).

Contact address for more information

Ms. Nona Iliukhina
Utilities specialist,
International Labour Office
4 route des Morillons
CH-1211 GENEVA 22, Switzerland
Tel. +41 22 799 7169 Fax +41 22 799 7046
E-mail: iliukhina@ilo.org or sector@ilo.org