How International Labour Standards improve working lives: Examples from Central and Eastern Europe

International labour standards (ILS) are rooted in the conviction that economic and social development should ultimately serve people. Labour is not a commodity, and work cannot be treated simply as an economic input valued only by the extent to which it achieves the lowest cost or generates the highest profit. It is fundamental to individual dignity, well-being and personal development. Economic progress should therefore create employment in which people can work in conditions of freedom, safety and dignity. ILS help ensure that economic development remains focused on improving people's lives rather than becoming an end in itself.

Most people associate ILS solely with the protection of worker rights and while this is certainly one of their primary functions they serve other purposes as well. So, what are some of these other benefits that flow from the application of ILS?

Creating a level playing field

International labour standards help establish a level playing field between countries and enterprises. Without common minimum standards, governments or businesses may be tempted to reduce worker protections to obtain a competitive advantage. Such strategies can encourage economies based on low wages, low skills and high employee turnover rather than investment in productivity and skilled employment.

Common standards reduce the possibility that countries or enterprises respecting workers' rights will be competitively disadvantaged by those that do not. Their widespread application therefore benefits both workers and responsible enterprises and helps prevent competition based primarily on deteriorating working conditions.

What does the ILO do? In North-Macedonia and Serbia the ILO is supporting the alignment of national occupational safety and health legislation, policies, and practices to improve respect for the fundamental right to a safe and healthy working environment. Through two EU-funded projects - Promotion of occupational safety and health and labour inspection in Serbia and Towards a safe and healthy working environment in North Macedonia - the ILO is working with the national inspection services and social partners in these countries to improve institutional capacity to prevent and address accidents and illnesses at work.

Supporting economic performance

Although labour standards are sometimes portrayed as costs that impede growth, evidence suggests that properly designed labour protections can contribute positively to productivity and economic performance. Minimum wages, reasonable working-time arrangements and equality can improve worker satisfaction and performance while reducing turnover. Vocational training creates a more capable workforce, and occupational safety and health standards reduce accidents and associated healthcare and business costs.

Employment protection may give workers greater confidence to innovate, while social protection and active labour market policies can facilitate economic restructuring and labour market flexibility. Similarly, freedom of association and collective bargaining can improve communication and cooperation between workers and management, reduce costly industrial disputes and strengthen social stability.

Strong labour standards do not necessarily deter foreign investment either. Investors frequently attach greater importance to workforce quality and political and social stability than to very low labour costs. There is little evidence that countries systematically disregarding labour standards achieve greater international competitiveness. In fact, recent advances in regional and national requirements concerning business due diligence requirements underline the growing importance of labour law compliance. ILS can therefore simultaneously protect workers and support sustainable enterprises.

What does the ILO do? In Albania, the ILO Sustaining Competitive and Responsible Enterprises (SCORE) Programme works with enterprises in the textile, clothing, leather and footwear sector. The SCORE programme brings together workers and managers to improve workplace relations and productivity through trainings on subjects including workplace cooperation, workforce management, resource efficiency and occupational safety and health. The SCORE Programme results in Albania for 2025 for the 9 participating enterprises that completed the entire programme that year show an average 42% increase in productivity, improved on-time delivery by 29%, reduced absenteeism by 29%, reduced employee turnover by 43%, and a 50% drop in the number of accidents. These results illustrate that measures for improving enterprise efficiency and improving working conditions can mutually reinforce each other.

Protection during economic transitions and crises

Respect for ILS also provides an important safety net during economic downturns. The 2008 global financial crisis and the 1997 Asian financial crisis demonstrated how rapidly economic gains can be reversed, whereas the Covid pandemic of the early 2020’s showed how a global health issue impacts economic development and peoples’ jobs and livelihoods. Where unemployment insurance, healthcare protection, active labour market policies and social dialogue institutions are weak, workers bear a much greater share of the consequences.

A policy framework that balances macroeconomic objectives with employment and social considerations can make economies and societies more resilient and soften labour market shocks when countries go through periods of economic transition. Social protection systems are therefore not merely a cost incurred during prosperous periods but an important mechanism for managing crises and economic transitions.

What does the ILO do? Georgia currently lacks a comprehensive unemployment benefit system and the ILO, alongside national and international partners, is providing technical assistance for the design and establishment of a new unemployment insurance scheme. By providing the evidence and policy options that will allow the government to address a significant gap in the country’s social protection system, the ILO is advancing social protection in Georgia.

Reducing poverty and supporting formalization

ILS can also contribute to poverty reduction and the transition from informal to formal employment. Just as economies require functioning laws governing property and contracts, labour markets require fair and enforceable rules.

This is particularly important in developing and transition economies, where substantial numbers of workers may operate informally. ILO standards are not confined to conventional employment relationships; many apply broadly to workers, while others specifically address groups such as migrant, rural, and homeworkers.

Extending social protection, strengthening freedom of association, improving occupational safety and health and investing in vocational skills can reduce poverty while encouraging formalization. Effective institutions capable of enforcing labour rights also create greater trust and predictability amongst employers and workers, which supports economic development.

What does the ILO do? Through two Swiss-funded projects - Inclusive and Productive Employment in Moldova and Inclusive and Productive Employment in Moldova, Phase II – the ILO supported the Ministry of Labour and Social Protection of Moldova develop the e-Zilier platform to extend social protection to agricultural day labourers. The platform, launched in June, already registered 13,044 daily workers and 1475 companies in the agricultural sector, with 155,596 day-vouchers issued. The ILO also supported the Labour Inspectorate pilot a risk-based system that notifies companies identified as being at risk of employing undeclared workers. The system encourages voluntary compliance without adding pressure on limited inspection resources.