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Tripartite Meeting on the Social and Labour Dimensions
of the Forestry and Wood Industries on the Move

Geneva, 17-21 September 2001

Conclusions on social and labour dimensions of the forestry and
wood industries on the move

The Tripartite Meeting on the Social and Labour Dimensions of the Forestry and Wood Industries on the Move,

Having met in Geneva from 17 to 21 September 2001;

Adopts this twenty-first day of September 2001 the following conclusions:

Globalization and sustainable development

  1. Globalization is gaining momentum in the forestry and wood industries and accelerating the structural changes that have taken place in this sector over the last decades. Globalization presents advantages, provides new opportunities but also comprises risks. The far-reaching changes caused by globalization and the speed with which they occur have also given rise to concerns over its repercussions on employment levels and forest-based livelihoods, over job security, working conditions and rights at work.
  2. At the "Earth Summit" in Rio de Janeiro in 1992, world leaders committed to the goal of sustainable development. This important work will be followed by a further summit (Rio +10) which will be held in 2002. This call has since been echoed by governments at all levels, employers, workers' organizations, social and environmental groups as well as by many markets and consumers. The forestry and wood industries have taken the goal of sustainable development very seriously. The many initiatives by governments, enterprises, workers and workers' organizations to simultaneously keep the industry economically viable, protect the forests and the environment as well as contribute to social development and justice have given the sector a lead in putting sustainable development into practice. Substantial efforts are needed, however, to extend the coverage of these initiatives and to make sustainable development the norm in the sector. The forestry and wood industries themselves stand to benefit from an exchange of experiences between the ILO constituents in enterprises and countries and the replication of effective approaches.

Sustainability of the forest resource base

  1. A sustainable base of forest resources is a vital precondition for the future of the forestry and wood industries. Drastic reductions in raw material availability in a number of countries, entailing among other consequences the loss of large numbers of jobs and rural livelihoods has resulted from unsustainable land use, both past and present, including excessive levels of forest harvesting, poor logging practices and poor farming practices, as well as from natural disasters and changing priorities given to the allocation of forestry resources. Governments, private forest owners and the forestry and wood industries should adopt clear and stable long-term policies and management plans for forests based on national legislation and practices as well as strategies for industry development in order to secure a reliable resource base (including secure land tenure) for industry activity and growth. These policies, plans and strategies should include adequate provisions and financial resources for social and labour aspects of sector development such as employment, income generation, improvement of working conditions and occupational safety and health as well as vocational training. Workers and their representatives** should participate in making the decisions that will affect them.
  2. The forest industry recognizes its responsibility for sound environmental management in its forestry and industrial operations. Voluntary enterprise codes of forest practices are useful tools for sound management, they should be drafted with the involvement of all stakeholders, and should be used more widely. The forestry and wood industries need secure access to resources, in order to be able to commit long-term investment. Guarantees about access to raw material from publicly owned forests, including natural forests, should be based on agreements reached by consensus in an open decision-making process involving all interested groups. Where restrictions on harvesting levels or the setting aside of forest areas for conservation purposes are deemed necessary, the economic and social impact of such measures needs to be properly assessed. Where conservation measures result in adverse social impacts, governments should develop plans to mitigate such impacts in consultation with the social partners and back the implementation of the plans by adequate funding.
  3. Reforestation and afforestation, particularly in the form of forest plantations, can make an important contribution to timber supplies and forest industry development as well as to the rehabilitation of degraded landscapes and to the sequestration of the greenhouse gases (such as CO2). Poorly designed and implemented plantation projects can have unintended effects and lead to economic, social and environmental costs. Giving full consideration to social, economic and environmental impacts can assist in maximizing benefits for all concerned.
  4. In some important producer countries of timber and wood products, the regeneration of forests and the continued supply of raw material is being undermined by illegal logging which far exceeds the allowable annual cut. Illegal logging may directly affect the biodiversity of the forest eco-system. The illegally harvested timber is often destined for international markets and smuggled out of the country of origin. This is a serious threat to the industry. If not abated, illegal logging will curtail the contribution of the forest industries to national economic development, to employment and income generation. Governments, as well as processing industries, exporters and importers, should urgently adopt effective measures, including laws and policies, to stop illegal logging and the trade in poached timber and products. Measures should include a wider use of remote sensing and ground inspection of log movements as well as mechanisms to trace the origin of logs through systems-like chain-of-custody verification. The Meeting notes the East Asia Ministerial Declaration on Forest Law Enforcement and Governance adopted in Bali, Indonesia, on 13 September 2001, and recognizes the efforts taken to combat illegal logging, trade in illegal logs, and other forest crime.

Certification of forest management and
labelling of forest products

  1. Independent, third-party certification of forest management has been spreading rapidly in recent years in all regions. Voluntary certification is a good tool to promote sustainable forest management and to communicate the industry's achievements with respect to sustainability to stakeholders (including buyers and consumers of forest products). Certification should be transparent and certification standards should include a minimum coverage of social aspects based on core ILO Conventions and take into account the ILO code of practice on safety and health in forestry work. Workers and their organizations are entitled to be consulted in the development of certification standards and in the performance assessment mechanisms.

Employment

  1. The growing pressure to reduce unit cost in order to remain competitive on world markets for forest products as well as for substitute materials, coupled with the almost universal availability of advanced technology and the rise in foreign direct investment, have led to rapid increases in labour productivity. As productivity is rising much faster than production volumes, employment in the sector is declining in many countries. A number of countries have been an exception to the general rule and benefited from the creation of many new jobs in this sector, particularly where value added, further processing industries have been established. On the whole, however, globalization has hastened the decline in employment in these industries. This trend is expected to continue. The impact on employment can be particularly strong in countries in transition to market economies. The speed and scale of the reductions in employment may require social plans and active labour market policies to cushion the social impact, particularly in timber-dependent communities and regions. Reducing unit costs should not prevent workers' access to basic services such as health and educational facilities, especially in remote locations.
  2. In many countries, the sector faces competition in national labour markets. The workforce is ageing in many countries and recruitment can pose problems for occupations that have difficult working conditions and offer relatively low remuneration. Rationalization and concomitant redundancies mostly affect unskilled workers. For the remaining workforce, high labour productivity in more capital-intensive production processes has in many cases resulted in better jobs, requiring specialized skills, offering much better working conditions and higher pay. The promotion of further, value added processing and skills-based supplies and services can partly compensate for the loss of employment in forestry and primary wood processing and significantly enhance the contribution to overall economic development. Labour laws must facilitate the negotiation and implementation of flexible work practices at the enterprise level.

Skills

  1. Skills are an evermore important ingredient in order to achieve high productivity and a good economic performance in the forestry and wood industries. The prospects of thorough training and the acquisition of advanced skills also contribute to making the industry attractive for young jobseekers with good potential. The training offered should prepare trainees for the use of advanced technology. In addition, it should also impart knowledge and skills concerning subjects like occupational safety and health, sustainable development, sustainable forest management or general environmental management. Given the rapid change of technology and work organization, training systems should cater for lifelong learning. Where redundancies occur and workers have to be relocated, retraining and skill diversification are important to facilitate the transition to new jobs and sources of income. Skills testing and certification according to industry-wide standards enhance the benefits of training to both employers and workers, because skills are recognized and become "portable", thus enabling workers to be more mobile. Governments, employers and workers and their respective organizations should be involved in the design and delivery of training and skills certificates. Governments should ensure that the necessary resources are allocated to skill development for workers as well as for employers in the sector. Industrialized countries should assist developing ones through technology transfer and skill development, for example, by supporting the creation of national training systems for the forestry and wood industries.

Application of the ILO Declaration

  1. The ILO constituents in the forestry and wood industries fully support the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up adopted in 1998. Governments should make every effort towards the ratification of core Conventions referred to in the Declaration. They should cooperate with workers and employers to analyse levels of compliance, to identify possible deficits and to encourage the widest possible adoption of these standards in the forestry and wood industries. An important measure to ensure better observance of the fundamental principles as well as compliance with other applicable labour legislation is more and better labour inspection especially in remote areas. Governments should ensure that inspectorates have adequate resources and trained staff to provide constructive information to enterprises as well as to act as enforcement agents. More effective labour inspection will also contribute to avoiding unfair competition from firms evading legal obligations.

Gender issues

  1. While documentation and statistics on the subject are incomplete, women play a role in the forestry and wood industries as forest owners, workers, employers and consumers. In some cases evidence exists of inequalities of opportunity and of treatment which is not compatible with core ILO standards, namely the Equal Remuneration Convention, 1951 (No. 100), and the Discrimination (Employment and Occupation) Convention, 1958 (No. 111). Governments should take measures to improve the information on the role and situation of women in the forestry and wood industries. In cooperation with employers and workers, governments should ensure that women receive equal remuneration for work of equal value and are afforded equal opportunity and treatment in employment, including with respect to access to education, training, credit and small enterprise promotion. This should include, where possible, measures to help workers reconcile work and family responsibilities. Women should have adequate maternity protection according to national law and practice. Workplaces should be free from sexual harassment. Protection against sexual harassment is particularly important in remote areas.

Contractors

  1. Globalization and structural change have led to the spread of outsourcing and an increase in the use of contract and, if applicable, subcontract labour. In forestry, reliance on contract labour has become a feature of operation in many countries. Contract labour can have positive and negative implications. In some cases, contract workers have been required to work in lower quality jobs. Contractors, subcontractors and their employees should be entitled to the benefits of the principles and rights enshrined in the ILO Declaration. They should have access to proper training, especially in the areas of health and safety and skills development. The responsibilities of the various parties in contracting arrangements should be clearly established, both at the national level and in the relevant contracting and/or subcontracting agreements.

Promotion of small and medium-sized enterprises

  1. Small and medium-sized enterprises account for a substantial proportion of the contribution which the forestry and wood industries make to economic and social development of local communities, rural areas and countries. They tend to be relatively employment-intensive and to add value to forest products through further processing. Small and medium-sized enterprises should therefore be assisted through ongoing capacity building for entrepreneurs, such as training in management and business administration, especially through improved access to information, to organizations, to services, adequate financial resources and to venture capital. Development schemes and programmes should include the social partners. The social partners and the governments should work together to identify skills shortages and training opportunities in the small and medium-sized enterprises.

Social dialogue

  1. Social dialogue is important to cope with the challenges of globalization, harmonization of labour relations and sustainable development. The numerous examples of social dialogue at international, national and enterprise levels referred to in the report of the Office as well as during the discussions at the Meeting demonstrate the benefits for all parties and the opportunities which may include agreements on changed working arrangements at individual firms and agreements between enterprises and workers' representatives. Social dialogue should be conducted in a fair and open manner, provide access to information and seek to resolve disagreements by consensus. Governments should establish and periodically convene national and regional tripartite forums for the forestry and wood industries to facilitate a regular exchange about social and labour issues, to promote the application of the ILO Declaration in the sector and as a mechanism to achieve consensus among the social partners concerning the sustainable development of the forestry and wood industries.

The role of the ILO

  1. The concept of sustainable development encompasses economic, environmental and social components. The ILO is the competent international organization to deal with social and labour matters. The Office should establish linkages with the relevant United Nations organizations in order to ensure that social and labour concerns in the Declaration on the Fundamental Rights and Principles at Work are taken into account in international policy discussions affecting the forestry and wood industries. The Office should also explain its supervisory mechanisms concerning compliance with ratified Conventions.
  2. The knowledge base on some important aspects of the forestry and wood industries is still inadequate. The ILO should conduct research to close gaps in information and improve data on employment and other key indicators, on the role and status of women in the sector and on best practices in the use of contractors.
  3. The ILO should actively promote the application of the ILO Declaration in the forestry and wood industries and advise constituents on suitable approaches. The promotion of core standards should emphasize information, advise on capacity building, as well as monitor compliance and use of enforcement by national authorities only where other means have been ineffective. Labour inspectorates can contribute to all these functions and the ILO should support member countries in developing suitable approaches and procedures for labour inspection and in training labour inspectors.
  4. The ILO should build on its successful cooperation with a number of countries and promote social dialogue in the sector in all countries with a significant forestry and wood industry. When requested, it should assist constituents in establishing and running tripartite forums for the forestry and wood industries.
  5. In order to enhance the contribution of the sector to economic and social development and to the alleviation of poverty, the ILO should assist member countries, particularly developing ones and countries in transition, to improve efficiency and productivity as well as working conditions in the forestry and wood industries. Particular emphasis should be given to training, to the promotion of small and medium-sized enterprises and to occupational safety and health. Regarding the latter, the ILO should continue to assist countries to use the ILO code of practice on safety and health in forestry work on a voluntary basis in their national context.
  6. The ILO should lobby governments, in particular in industrialized countries, to mobilize additional funding for the programmes and activities listed above.

** Throughout this text, when the term "workers' representatives" is used, it refers to Article 3 of the Workers' Representatives Convention, 1971 (No. 135), which reads as follows:

Updated by AV. Approved by PB/CDH. Last update: 25 February 2003.