Overview

East Timor is in a transition phase towards full independence. The emergence of a growing consensus among East Timorese to seek independence has been its main political development in the past two decades or so. Following national elections, scheduled for August 2001, a Constituent Assembly will be formed and will draft a constitution to establish a democratic government.

East Timor is under the administration of the United Nations Transitional Administration in East Timor (UNTAET), established in October 1999 by the UN Security Council, Resolution 1272/99, after an overwhelming vote for independence from Indonesia in August 1999 and a consequent outbreak of violence. A National Consultation Council (NCC) was set up to oversee the administration. In August 2000, the East Timor Transitional Administration (ETTA) headed by the Transitional Administrator (Special Representative of UN Secretary–General) was established to integrate East Timorese into major decision-making areas within the Administration. Five of nine portfolios in the Transitional Cabinet within the framework of ETTA are held by East Timorese, namely, foreign affairs, internal administration, infrastructure, economic affairs and social affairs. Labour matters fall under the Department of Social Affairs, specifically under its Division of Labour and Social Services (DLSS).

The National Council (NC) was established in October 2000, replacing the former National Consultative Council (NCC), and headed by the territory’s most prominent political figure, Mr. Xanana Gusmao. It comprises 36 members from East Timorese civil society – businesses, political parties, NGOs, and the territory’s 13 districts. This is an important step towards an independent nation and represents the first time in history that East Timorese leaders have participated as equal partners in the governing of their country. In late March 2001, Mr. Gusmao resigned from the NC and was succeeded by Mr. Manuel Carrascalao, a veteran of East Timor’s 24 years struggle for freedom. The NC is to be dissolved prior to the August elections.

UNTAET's mandate has been extended for one year until 31 January 2002, by the UN Security Council, Resolution 1338/01, progressively to delegate further authority within the framework of ETTA to the East Timorese people until authority is fully transferred to the Government of an independent State of East Timor.

East Timor is one of the poorest countries in the world. The estimated GDP per capita in 1999 was US$305. The collapse of the economy and public administration after the violence in September 1999 meant many East Timorese lost their livelihood. In spite of lack of statistical data, the UN Common Country Assessment (CCA, November 2000) estimates the economically active population to be about 400,000. Some 70 percent are thought to be engaged in subsistence agriculture, which leaves 120,000 jobs to be generated through wage employment in the civil service, public enterprises and the private sector, and jobs in the small scale and micro enterprises. Both unemployment and underemployment continue to be major concerns in East Timor.

UNTAET is responsible for the administration of East Timor until January 2002 during which time it will supervise the democratic election of the first government. UNTAET is headed by Mr. Sergio Vieira de Mello, Special Representative of the UN Secretary-General and also the Transitional Administrator of the East Timor Transitional Administration (ETTA) which is a Transitional Cabinet of the territory. Preparation for the first national election is underway and will be held on 30 August 2001.

Fr. Filomeno Jacob is the Cabinet Member for Social Affairs which also covers labour matters under its Division of Labour and Social Services (DLSS). A former ILO official was recruited by UNTAET as Head of Division of Labour and Social Services for six months, (from August 2000 to January 2001). Mr James Richardson, ETTA’s expert on Vocational Training, is currently holding this post. Mr. Jose Asa, a government civil servant, is the Director of the DLSS.

Major business organizations in East Timor are: the East Timor Chamber of Commerce, and the National Association of East Timor Entrepreneurs (ASSET).

A prominent labour group is the Labour Advocacy Institute of East Timor (LAIFET), led by Director Eusebio Guterres, a lawyer and also a member of National Council. LAIFET has expanded its activities from labour advocacy to organizing workers. It also helped organize the first Labour Congress in East Timor in late February 2001 in order to launch an East Timor trade union centre which is called Timor Lorosa’e Trade Union Confederation (TLTUC). Mr. Jose Conceicao was elected President and Ms. Ana Mota, General Secretary of TLTUC. Other unions in East Timor were established on the basis of industry or occupation, for example, the union for nurses (first union formed in mid-2000), and followed by unions for teachers, journalists, agricultural workers, construction workers, hotel and restaurant workers, port workers, medical doctors, etc.

The first ILO activity in response to East Timor's needs, arising in the aftermath of its breakaway from Indonesia, started in October 1999 with an initial ILO assessment mission at the request of the UNOCHA for proposals to be included in the UN Consolidated Inter-Agency Appeal. The ILO presence in East Timor was established in November 1999 and maintained until December 2000, the date at which the responsibility of coordinating ILO assistance to East Timor was shifted from the Regional Office to EASMAT/BAO, thus dissolving the Regional Task Force on East Timor. Both the UNSRSG of UNTAET and the United Nations Development Coordinator requested ILO to maintain its presence in East Timor. Consequently, with financial support from the Regional Office, ILO presence in East Timor has been re-established in mid-July 2001 with an ILO Liaison Officer based in Dili at the UN Agency House. The framework of ILO programmes in East Timor is being examined and a Strategy Paper for East Timor to be prepared by EASMAT/BAO accordingly.

A series of ILO missions by specialists and consultants has been undertaken in various fields, such as labour laws and administration, industrial relations, employment, small enterprise development, vocational training, occupational safety and health, and workers’ education.

Major technical assistance provided by the ILO to East Timor to date include the following:

• Advice on organization, structure and staff required for an the interim Division of Labour and Social Services (DLSS); including assistance in setting up the first Employment Service Centre of the transitional government;

• Capacity building of the labour administration through training of labour officers in various labour-related matters, such as labour conciliation and dispute settlement, labour inspectors; industrial relations; employment services; international labour standards; small enterprise development; and accident hazard and prevention;

• Initial steps towards formulation of basic labour regulations for tripartite consultations. These focussed on:

1. Employment and Labor Administration
2. Industrial Relations
3. Minimum Wage Fixing
4. Termination of Employment

The drafts are yet to be discussed fully on a tripartite basis.

• Promotion of social dialogue among the tripartite constituents (government, employers’, and workers’ groups).
  
• Support to workers’ groups in East Timor - training for workers'  representatives on formation of trade unions and responsibility; and training on aspects of labour law, basic workers’ rights, international labour standards, etc.

• Pilot testing of Start Your Business (SYB) Programme resulted in the ILO having support from a number of organizations involved in the SYB workshops.

As East Timor is not a member State of the ILO as yet, the ILO Conventions do not apply. Once East Timor has full independence, it is anticipated that it will apply to become a member State of the ILO.

In the course of assistance being provided through the Transitional Administration, the principles and values of core ILO Standards are being promoted.