Summary of proceedings: Overview
The starting point and main contextual theme for the Enterprise Forum was the recognition that the world is facing a range of unprecedented social and economic challenges brought about by process of globalization. Deregulation and rapid advances in information and communications technology have all contributed to the expansion of international trade, increased inter-dependence of markets for goods, capital, information and labour, and made it possible to locate production and other value adding activities in almost any part of the world, often in the form of complex interdependent networks of enterprises which are emerging as key economic actors in the global economy.
The Forum also noted at the outset that while this process of globalization has the potential of being a positive force for economic growth, employment and integration, it also poses a real threat, already apparent in some parts of the world, to create disparities between and within countries. The key challenge, it was agreed, is therefore how to reinforce the positive impact and to minimize the negative effects of this process and it was this key challenge which was addressed from a number of perspectives by the various Forum panels. While the perspective varied between the panels, the discussions were based on the common recognition that enterprises are the main creators of wealth and employment and that the process of globalization is emphasizing and enhancing this role. The role of enterprises, including labour, in addressing these challenges was therefore the underlying theme for the panels. This perspective also allowed a number of important suggestions to emerge with regard to the future role of ILO as an international tripartite organization. These conclusions are briefly summarized in a separate section below.
The first panel took a global perspective and recognized that enterprises, including labour, must, and in some cases have already started to, develop a degree of responsibility to address a range of social issues such as unemployment, poverty and social exclusion. Governments will continue to have a key role to play in creating an appropriate environment which allow enterprises to flourish while simultaneously balancing the conflicting interests of the social partners and making sure that the most vulnerable groups receive adequate social protection and support. Overall, this calls for a new and strengthened partnership between government, employers and workers.
The panel also discussed the issue of labour standards and while no conclusion was reached, there was broad support for the idea of a strong focus on a limited number of core standards such as, for example, freedom of association, banning of child and forced labour, and there was general agreement on the need to re-examine labour standards generally to ensure their continued relevance in the new global environment.
The second panel looked at the role of enterprises with regard to job creation from a number of perspectives. It was recognized that the new global environment is putting unprecedented competitive pressures on the enterprise, thus making the pursuit of ever higher levels of productivity the central concern. It was also recognized, however, that these new competitive realities put a premium on enterprise flexibility and the ability to gather, analyze and utilize knowledge and information. This brings to the fore the significance of human resource management and training, productivity gains sharing systems, adequate levels of employment security, good working conditions and other measures for building workers' skills, commitment and loyalty which increasingly form the only basis for a sustainable competitive advantage of any enterprise, thus creating a potential win-win situation between enterprises and labour and creating the potential for balancing efficiency and equity consideration.
This situation also puts training as a central concern for both the enterprise and the society as a whole, making the access to quality training a top priority, necessitating the development of new training systems and delivery methods which are low-cost, rapid, flexible, and closely linked to labour market demand and practices. This in turn call for a new partnership between the individual who must take responsibility for a process of continuous learning, and the state and enterprises which must develop a common strategy and infrastructure for the development and financing of systems which can create and maintain a flexible, competent and multi-skilled workforce. In this respect, trade unions were seen as having a key facilitating role.
The case of small and medium sized enterprises was also touched upon by the panel which emphasized the key role this sector currently plays and will continue to play in job creation. It was emphasized, and illustrated by several examples, that a number of support programmes can significantly enhance the ability of this sector to survive and expand through, for example facilitating access to training, credit, technology and market information. The issue of labour standards was also briefly touched upon and it was recognized that there are often special challenges with regard to ensuring adequate terms and conditions of work in this sector.
The third panel looked at social initiatives by enterprises and included the presentation of a range of examples of such initiatives. It was recognized that the number of such initiatives is growing, in part because enterprises recognize the potential convergence between business success and social objectives. Some members of the panel felt that this strategic convergence will grow in the years ahead and is likely to be recognized as a key to competitive advantage in the 21st century. With regard to policies to support and encourage such initiatives, the general consensus was that it should be based on voluntary measures although some interesting cases of supportive framework legislation and incentives were presented.
The fourth panel, which looked at the role of the social partners at the enterprise level, indicated that, despite a general trend towards a more decentralized approach to collective bargaining, participation and decision making, there is a wide diversity of experience and approaches between regions and countries in the approach to the many challenges which are resulting from globalization. New forms of organizations and industrial relations approaches and even new forms of social partnerships are emerging. While no uniform approach emerged there was strong consensus on the need for continued dialogue to come up with appropriate responses and mechanisms to ensure that the social partnership is effective at the enterprise level.
Suggestions relevant to ILO's work
One objective of the Enterprise Forum was to generate ideas and suggestions for the ILO's future programme and work in areas related to the promotion of social progress and enterprise competitiveness in a global economy. Most members of Panel 1 (enterprises and the ILO in a changing world economy) emphasized that globalization gives the ILO with its unique tripartite structure an unparalleled opportunity to review and revise its programmes and to create a new niche for itself. The ILO should be the international institution dealing with the social dimensions of the global economy, but should also ensure that social considerations enable rather than hinder free trade. Some felt it is time the Organization acknowledges more clearly the role played by enterprises in employment creation, and gives them their due place in the philosophy and day-to-day work of the Office.
Several panel members felt the ILO should supplement its emphasis on standard-setting with needs-oriented practical assistance providing support to governments on the creation of an enabling environment for business, including guidance on ways in which the labour and social conditions underpinning employment creation can be improved. There is also a need for support to governments on the creation or adaptation of social security systems to make them functional and affordable over the long term.
There was also a call for practical programmes for the promotion of small and medium-sized enterprises and employment creation, especially for young people and the long-term unemployed. Another key area identified for technical assistance was for employers' organizations in developing countries and countries in transition.
In Panels 2 (a), (b) and (c) on job creation and enterprises there was general agreement that human capital formation is one of the key prerequisites for enhancing the employability and employment security of the workforce. The ILO can play an important role in supporting the development of a common non-prescriptive framework of social and labour principles within which increasing competition among enterprises can facilitate the emergence of a flexible, mobile, competent and multi-skilled workforce through continuous learning, thus favouring a path of enterprise competitiveness based on knowledge and skills intensive production, sound labour-management relations, quality and high value added.
The ILO was called upon to play a leading role in the establishment of a partnership for human capital formation which should encompass entrepreneurs, employers' organizations, trade unions and human resource development institutions. The Office should support systematic dialogue and capacity-building among the social partners to enable them to address the training challenge, redefine their new roles and seek innovative forms of partnerships which converge economic and social objectives and utilize training as a tool for equity, competitiveness and growth.
A number of specific suggestions for priority areas for ILO assistance included: (i) integrated programmes to enhance the competitiveness, quality and productivity of SMEs in order to augment this key sector's contribution to economic growth and employment generation. This would include the further expansion of ILO's Start Your Business and Improve Your Business training packages; (ii) the reorientation of vocational training systems towards entrepreneurship and self-employment, particularly to meet the needs of youth, women, workers threatened by redeployment and the unemployed; (iii) strengthening entrepreneurship training programmes and facilitating linkages between large enterprises and SMEs in developing countries with the involvement of the social partners; (iv) promotion of innovative training approaches and methods which use modern technology, such as distance learning, open learning centres which are able to give rapid, flexible and low cost response to the rapidly changing needs of the labour market; (v) measures to increase equity in access to training of groups and sectors facing constraints in urban and rural areas.
The discussion in Panel 3 (social initiatives by enterprises) resulted in specific suggestions for ILO follow-up including: (i) the collection, analysis and diffusion of good practice case studies in the field of social initiatives by enterprises; (ii) the development of bench marks and guidelines for socially responsible enterprise behaviour; (iii) research on corporate strategies aimed at achieving convergence of social and economic goals; (iv) assistance to enterprises in establishing strategic alliances with the social partners and other concerned stakeholders to facilitate the planning, development and implementation of social initiatives; and (v) research into appropriate policies and legislative measures which can support and provide incentives for social initiatives by enterprises.
The panel also noted the upcoming Conference on the theme of Partnerships for Social Cohesion organized by the Danish Government, which will be organized with the involvement of the ILO through the International Institute of Labour Studies.
Panels 4 (a) and (b) on the future of the social partners at the enterprise level found that the rapid changes taking place as a result of globalization and increasing competitive pressures are currently resulting in new bargaining processes, pay systems and labour management relations mechanisms generally. There was a call for the ILO to become a centre of excellence in these important areas and to build up the Organization's ability to move beyond its standard setting activities to provide practical technical assistance. In this respect the ILO's ability as an international organization to reflect, analyse and synthesize the main trends and developments was considered a strong comparative advantage in providing assistance to constituents.
It was suggested that the rapidly changing environment is making it ever more important for the ILO to provide technical assistance and support to both workers' and employers' organizations. This applies to developing countries as well as Central and Eastern Europe and other transitional economies where newly established trade unions and employers' organizations have the potential to play crucially important roles in the process of transition. Special tripartite enterprise fora for these regions may be a powerful way to assist the social partners in such areas as legislative reform, promotion and protection of employment, technical training required for sustainable job creation, small enterprise development and related areas.
It was also suggested that it would be useful if an enterprise specialist could be included in the new Multidisciplinary Team which is being set up in Moscow.
Also in developing countries, it was felt there is a strong need for the ILO rigorously to facilitate tripartite dialogue, complemented by direct assistance and support to constituents, with regard to such issues as liberalization policies, structural adjustment programmes and privatization, all of which pose major challenges with regard to the way in which governments, trade unions and employers' organizations fulfil their roles.
It was further suggested that the global changes currently taking place are having a particularly strong and often negative impact on rural enterprises, which should therefore be given special attention by the ILO. Similarly it was felt by some that future enterprise fora should cover the important role which co-operative and other group-based enterprise structures can play in employment creation and provision of social and other services, as well as their relationship with trade unions.
Finally, there was a strong appeal from the vast majority of participants that the ILO should organize Enterprise Fora at regular intervals, i.e. every second year.