Odisha skill conclave 2018
Statement by the ILO Director, Dagmar Walter, on National and global opportunities for skilled in Odisha
By Ms Dagmar Walter, Director ILO Decent Work Technical Support Team (DWT) for South Asia and India Country Office.
Honourable Minister, Secretary Mr Bagchi, Chairperson, esteemed panel members, senior government officials from the central and the state government, distinguished guests and participants,
On behalf of the International Labour Organization, I would like to thank Hon’ble Minister, the Ministry of Skill Development and Entrepreneurship, Government of India for inviting the ILO to this important conclave.
I have recently taken up the position as Director for the ILO Decent Work Team for South Asia and Country Office for India. Having started at the national level, I am now making the link with the work of constituents, government, employers’ and workers’ at the state level, where the ILO provides substantial technical support. Just two days ago, I was in Gujarat — the birthplace of the father of this nation, Mahatma Gandhi.
It is indeed a pleasure to now be in Odisha, the historical Kalinga, known for its glorious past and skilled workmanship, and where the ILO has had the privilege of working in a number of areas over the years.
Let me first congratulate Odisha for bagging the Prime Minister’s award as the best state in the country in skill development of rural youth for the second consecutive year. Truly impressive.
Foreign migration trends with Odisha perspective would require time series data which I believe are not readily available. Given the huge investment in skill development, it would be essential to build a labour market information system to facilitate and ensure effective job strategies for the state. The ILO takes an integrated approach to skills and entrepreneurship. However, here I will focus on the migration dimensions which is the topic I was asked to speak on.
Skills play a major role in increasing the bargaining capacity of the working population in respect to wages, rights and other entitlements. Effective skills recognition across borders for migrants presents an opportunity that is only growing in prominence. The significance of this issue is evident from the 2030 Agenda for Sustainable Development and the Global Compact for safe, orderly and regular migration currently under discussion. It is also now a priority within regional processes such as the Colombo process, Abu Dhabi dialogue and, SAARC.
Building on its large experience, the ILO is developing a new programme with its constituents, focussing on “brain gain” (Brain gain as opposed to “brain drain”). It focusses on “brain gain” in both countries of origin and destination through improved training programmes and skills recognition for migrants. It further supports successful labour market integration in destination countries as well as upon return. And finally promotes regular migration through bilateral and multilateral labour agreements based on labour market needs assessments.
With the growing investment in skills training for migrants from countries of origin such as India, all of us would have expected to see gains in terms of better wages, working conditions, and mobility of migrant workers. However, some ILO studies show this is not always the case. It is primarily due to challenges in the quality of training and the unwillingness of recruiters to pay as per competencies. In addition there is a weak link between training institutions and recruitment agencies. Also, laws regulating recruitment activities are normally not geared towards skills training institutions and testing centers. There is a lack of clarity on these institutions’ role in ensuring protection, liability, and control of costs for migrant workers. These are important areas for the state to look at to maximize employment quality outcomes for its outbound migrants.
A state-level labour migration policy is one option to reflect and safeguard the needs of outbound and returning workers. This was recently adopted by the Andhra Pradesh government, with the technical support of the ILO.
At present, the vast majority of skills development initiatives in most countries, in South Asia including India, are in the construction sector, and therefore targeted mainly towards the male migrant population. A significant number of migrants already undergo skills testing. As per an ILO study, 92 per cent of surveyed migrants are the low-skilled construction workers in the ‘India—Saudi Arabia’ migration corridor. They are reported to undergo a skills test prior to receiving an employment contract. However, the value of these tests in certifying the competence or leading to recognition by the employers was found to be limited.
Employers do not typically cover the costs of any formal training of the migrants. Many employers feel that quality of training in countries of origin including India needs to be upgraded, and skills could also be learnt on the job -- usually within a span of two to four months. Nevertheless, there is an indication that certification will eventually become a requirement in Middle East countries. For example the Mussafah project in Abu Dhabi is expected to make certification against NOSS a requirement for 500,000 workers in the construction industry.
ILO is working with the Government of India, in particular with Ministry of Skill Development and Entrepreneurship and Ministry of External Affairs to evolve a regional qualification framework for South Asia to improve labour mobility outcomes.
Looking at neighboring countries, in Nepal the ILO is building the capacity of skills training centres — as per the needs of the employers and it also promotes results-based financing by paying training providers only if the workers pass the assessments and they are placed in jobs. Similarly in Sri Lanka, ILO is working with the Government to harmonize occupational classification and data systems and to develop new guidance on recognition of prior learning for returning migrants to support their re-integration into the domestic labour market as well as re-migration. In India, we worked with the Government of Kerala and helped them create enterprise-development strategies for returning migrants.
Turning to Odisha, we all agree that TVET programmes have to be designed to meet labour market needs. But its effectiveness is dependent on availability of real-time labour market information from the states and countries of destination. This calls for establishment of a labour market information system in the state.
The branding strategy adopted by the state, ‘Skilled in Odisha’, is truly unique. To sustain and strengthen this vision, evidence-based research is needed so as to develop business cases and to win the confidence of potential employers. Establishing a network of employers in countries of destination, and from different sectors, is advisable to strengthen industry engagement in the planning, implementation, monitoring of skills recognition systems and recruitments of migrants, and returning migrants.
A vast majority of workers acquire skills informally, so the promotion of recognition of prior learning and recognition of apprenticeship training in traditional or informal trades is vital in order to facilitate the steps taken in India towards formalization and improving the skill development index. This is further substantiated by the findings from an ILO – ORMAS joint study in 2017 on skill needs assessment in the value chain of two sectors in Odisha, namely horticulture and marine fishery. The studies also provide an estimate of job creation potential in the two sectors.
Migration needs to be a choice, an informed choice and not a necessity. Ensuring fair recruitment and equal treatment of migrant workers is key to prevent exploitation and also level the playing field with nationals in the countries of destination. This is a priority for the ILO constituents. Life skills training, apart from technical skills, is an important input in this process. ILO’s Work in Freedom programme in collaboration with Gram Tarang in Odisha is imparting life skills to migrant workers bound for garment-sector jobs using a combination of in-house training, mobile messaging and radio (Gram Vaani). This enables them to better adapt to their work environment and improve future options after their first employment.
Social dialogue in all its different forms is central to achieving fair labour migration. In the skills and migration sphere, we need to have an inclusive conversation to foster collaboration and coordination among multiple government agencies – there are various ministries and institutions in the room, from labour, skills, education, foreign employment and foreign affairs. We also need to hear from employers and workers in various sectors of the economy and from the private sector training providers and the recruitment agencies.
Before I conclude, let me say that while fair migration and recruitment is critical, creating Decent Work opportunities locally is the strategy for sustainable growth. Wage employment may remain scarce given the future of work trends. Hence entrepreneurship training for skilled workers is essential so as to nurture the development and productivity of micro, small and medium enterprises and to build the local economy. In India, we have made the link between skills and entrepreneurship through our Start and Improve Your Business programme, which has been in operation in over 100 countries. Similarly, Sustaining Competitive and Responsible Enterprises or SCORE is operating to develop skills of workers and managers in MSMEs to enhance productivity and competitiveness. The Odisha’s Nano Unicorn initiative for entrepreneurship development is definitely a step towards this. ILO is already in discussion with the Government of Odisha to support them in their vision to develop micro, small and medium enterprises.
In the morning, Mr Bagchi mentioned about ‘MSME lag factor’. Let me add that there is also a ‘skill to job lag factor’. It takes time for the youth, who are probably first generation learners, to imbibe new skills and perform in a formal workplace. It will be equally important for the state to capitalize on its rich cultural and natural resources, invest in modernization and value chain development of its traditional sectors such as handloom, horticulture, fishery, tourism and others and thus reap the unique competitive advantage. These sectors are labour-intensive, ecologically-friendly and have longer multi-tier value chains providing opportunities for MSME development. Also, since the youth are likely to be more familiar with these sectors and may possess existing skill sets, they can be gainfully employed with very little investment in their upskilling. By not doing this, the risks are higher for the state as it will further marginalize the communities that are traditionally dependent on these sectors, and also result in increased informality in the economy and an employment slow down.
I conclude by saying that the ILO stands ready to partner with you in Odisha and at the national level. We look forward to support you in all your endeavours on these key issues of skill development, job creation, enterprise development and of course migration.
On behalf of the International Labour Organization, I would like to thank Hon’ble Minister, the Ministry of Skill Development and Entrepreneurship, Government of India for inviting the ILO to this important conclave.
I have recently taken up the position as Director for the ILO Decent Work Team for South Asia and Country Office for India. Having started at the national level, I am now making the link with the work of constituents, government, employers’ and workers’ at the state level, where the ILO provides substantial technical support. Just two days ago, I was in Gujarat — the birthplace of the father of this nation, Mahatma Gandhi.
It is indeed a pleasure to now be in Odisha, the historical Kalinga, known for its glorious past and skilled workmanship, and where the ILO has had the privilege of working in a number of areas over the years.
Let me first congratulate Odisha for bagging the Prime Minister’s award as the best state in the country in skill development of rural youth for the second consecutive year. Truly impressive.
Foreign migration trends with Odisha perspective would require time series data which I believe are not readily available. Given the huge investment in skill development, it would be essential to build a labour market information system to facilitate and ensure effective job strategies for the state. The ILO takes an integrated approach to skills and entrepreneurship. However, here I will focus on the migration dimensions which is the topic I was asked to speak on.
Skills play a major role in increasing the bargaining capacity of the working population in respect to wages, rights and other entitlements. Effective skills recognition across borders for migrants presents an opportunity that is only growing in prominence. The significance of this issue is evident from the 2030 Agenda for Sustainable Development and the Global Compact for safe, orderly and regular migration currently under discussion. It is also now a priority within regional processes such as the Colombo process, Abu Dhabi dialogue and, SAARC.
Building on its large experience, the ILO is developing a new programme with its constituents, focussing on “brain gain” (Brain gain as opposed to “brain drain”). It focusses on “brain gain” in both countries of origin and destination through improved training programmes and skills recognition for migrants. It further supports successful labour market integration in destination countries as well as upon return. And finally promotes regular migration through bilateral and multilateral labour agreements based on labour market needs assessments.
With the growing investment in skills training for migrants from countries of origin such as India, all of us would have expected to see gains in terms of better wages, working conditions, and mobility of migrant workers. However, some ILO studies show this is not always the case. It is primarily due to challenges in the quality of training and the unwillingness of recruiters to pay as per competencies. In addition there is a weak link between training institutions and recruitment agencies. Also, laws regulating recruitment activities are normally not geared towards skills training institutions and testing centers. There is a lack of clarity on these institutions’ role in ensuring protection, liability, and control of costs for migrant workers. These are important areas for the state to look at to maximize employment quality outcomes for its outbound migrants.
A state-level labour migration policy is one option to reflect and safeguard the needs of outbound and returning workers. This was recently adopted by the Andhra Pradesh government, with the technical support of the ILO.
At present, the vast majority of skills development initiatives in most countries, in South Asia including India, are in the construction sector, and therefore targeted mainly towards the male migrant population. A significant number of migrants already undergo skills testing. As per an ILO study, 92 per cent of surveyed migrants are the low-skilled construction workers in the ‘India—Saudi Arabia’ migration corridor. They are reported to undergo a skills test prior to receiving an employment contract. However, the value of these tests in certifying the competence or leading to recognition by the employers was found to be limited.
Employers do not typically cover the costs of any formal training of the migrants. Many employers feel that quality of training in countries of origin including India needs to be upgraded, and skills could also be learnt on the job -- usually within a span of two to four months. Nevertheless, there is an indication that certification will eventually become a requirement in Middle East countries. For example the Mussafah project in Abu Dhabi is expected to make certification against NOSS a requirement for 500,000 workers in the construction industry.
ILO is working with the Government of India, in particular with Ministry of Skill Development and Entrepreneurship and Ministry of External Affairs to evolve a regional qualification framework for South Asia to improve labour mobility outcomes.
Looking at neighboring countries, in Nepal the ILO is building the capacity of skills training centres — as per the needs of the employers and it also promotes results-based financing by paying training providers only if the workers pass the assessments and they are placed in jobs. Similarly in Sri Lanka, ILO is working with the Government to harmonize occupational classification and data systems and to develop new guidance on recognition of prior learning for returning migrants to support their re-integration into the domestic labour market as well as re-migration. In India, we worked with the Government of Kerala and helped them create enterprise-development strategies for returning migrants.
Turning to Odisha, we all agree that TVET programmes have to be designed to meet labour market needs. But its effectiveness is dependent on availability of real-time labour market information from the states and countries of destination. This calls for establishment of a labour market information system in the state.
The branding strategy adopted by the state, ‘Skilled in Odisha’, is truly unique. To sustain and strengthen this vision, evidence-based research is needed so as to develop business cases and to win the confidence of potential employers. Establishing a network of employers in countries of destination, and from different sectors, is advisable to strengthen industry engagement in the planning, implementation, monitoring of skills recognition systems and recruitments of migrants, and returning migrants.
A vast majority of workers acquire skills informally, so the promotion of recognition of prior learning and recognition of apprenticeship training in traditional or informal trades is vital in order to facilitate the steps taken in India towards formalization and improving the skill development index. This is further substantiated by the findings from an ILO – ORMAS joint study in 2017 on skill needs assessment in the value chain of two sectors in Odisha, namely horticulture and marine fishery. The studies also provide an estimate of job creation potential in the two sectors.
Migration needs to be a choice, an informed choice and not a necessity. Ensuring fair recruitment and equal treatment of migrant workers is key to prevent exploitation and also level the playing field with nationals in the countries of destination. This is a priority for the ILO constituents. Life skills training, apart from technical skills, is an important input in this process. ILO’s Work in Freedom programme in collaboration with Gram Tarang in Odisha is imparting life skills to migrant workers bound for garment-sector jobs using a combination of in-house training, mobile messaging and radio (Gram Vaani). This enables them to better adapt to their work environment and improve future options after their first employment.
Social dialogue in all its different forms is central to achieving fair labour migration. In the skills and migration sphere, we need to have an inclusive conversation to foster collaboration and coordination among multiple government agencies – there are various ministries and institutions in the room, from labour, skills, education, foreign employment and foreign affairs. We also need to hear from employers and workers in various sectors of the economy and from the private sector training providers and the recruitment agencies.
Before I conclude, let me say that while fair migration and recruitment is critical, creating Decent Work opportunities locally is the strategy for sustainable growth. Wage employment may remain scarce given the future of work trends. Hence entrepreneurship training for skilled workers is essential so as to nurture the development and productivity of micro, small and medium enterprises and to build the local economy. In India, we have made the link between skills and entrepreneurship through our Start and Improve Your Business programme, which has been in operation in over 100 countries. Similarly, Sustaining Competitive and Responsible Enterprises or SCORE is operating to develop skills of workers and managers in MSMEs to enhance productivity and competitiveness. The Odisha’s Nano Unicorn initiative for entrepreneurship development is definitely a step towards this. ILO is already in discussion with the Government of Odisha to support them in their vision to develop micro, small and medium enterprises.
In the morning, Mr Bagchi mentioned about ‘MSME lag factor’. Let me add that there is also a ‘skill to job lag factor’. It takes time for the youth, who are probably first generation learners, to imbibe new skills and perform in a formal workplace. It will be equally important for the state to capitalize on its rich cultural and natural resources, invest in modernization and value chain development of its traditional sectors such as handloom, horticulture, fishery, tourism and others and thus reap the unique competitive advantage. These sectors are labour-intensive, ecologically-friendly and have longer multi-tier value chains providing opportunities for MSME development. Also, since the youth are likely to be more familiar with these sectors and may possess existing skill sets, they can be gainfully employed with very little investment in their upskilling. By not doing this, the risks are higher for the state as it will further marginalize the communities that are traditionally dependent on these sectors, and also result in increased informality in the economy and an employment slow down.
I conclude by saying that the ILO stands ready to partner with you in Odisha and at the national level. We look forward to support you in all your endeavours on these key issues of skill development, job creation, enterprise development and of course migration.