Handout of the CMTU Workshop on draft labour law
2 March 2017
ILO workshop for CMTU on draft Labour Law
7 March 2017
In a market economy, labour legislation should establish minimum standards that apply to all workers and employers
Labour legislation, drafted through consultation between the government, workers and employers, sets out basic social standards agreed on by all parties
This ensures that economic growth and development are accompanied by the creation of decent work
It creates a level playing field between workers who work in different areas of the country, in different sectors and in different jobs
Enforcement of minimum standards can lead to more satisfied workers, low turnover of staff and greater productivity
Compliance with basic standards on freedom of association and collective bargaining can encourage better worker-employer consultation and cooperation, leading to better management and fewer labour disputes
Minimum standards encourage the government and employers to avoid the temptation to lower labour standards in the belief that this could give businesses a competitive advantage in international markets
Lowering labour standards leads to more low-wage, low-skilled and high-turnover industries
This prevents a country from developing more stable, high-skilled employment
It discourages foreign investors and trading partners, as they are increasingly concerned with ethical trade in global supply chains
Minimum standards should apply to migrant workers, including irregular migrants, who often enjoy little social protection, face inequalities in the labour market and are vulnerable to exploitation
A failure to account for migrant workers can lead to human rights abuses and trafficking in persons
It should not be permitted for workers and employers to establish contracts reducing workers’ rights to below the minimum standards set by labour legislation
This means employers should not be permitted to circumvent these minimum standards through the use of other legislation, such as the Civil Code
It may be necessary to amend other legislation that is used in this way in order to enforce minimum standards
§ Collective bargaining sets standards above those established by the labour law
§ It can cover topics related to workers’ compensation and rights, such as wages, benefits, grievance and arbitration procedures, and strikes and lock outs
§ It is an important tool to raise living standards and improve working conditions
§ It must not be used to set standards below the baseline established by the labour law, which is a minimum set of standards applicable to all workers
§ Although certain issues are often addressed in the labour law, such as occupational safety and health, workers and employers can negotiate the details of how they are implemented in the workplace through collective bargaining
§ It provides stability to workers, who are guaranteed certain rights for the period during which the collective agreement is in force
§ It can be used to promote the rights of vulnerable groups, such as women, ethnic minorities and migrant workers, such as by setting recruitment targets and gender-sensitive criteria for promotions, and encouraging practices that promote the participation of women in the workplace, such as flexible hours of work and opportunities for part-time work
§ As trade union membership grows and the capacity of trade unions strengthens, the ability of workers to negotiate better working conditions increases
Related content
CMTU Workshop on Draft Labour Law, Ulaanbaatar, Mongolia