Cooperatives provide a pathway to inclusion for informal workers

© ILO Mattie Milliken

© ILO Mattie Milliken

Geneva (ILO News) - Moderated by Ms Simel Esim, Manager of the ILO Cooperative, Social and Solidarity Economy Unit, the session brought together key leaders, activists, and experts to discuss the pressing challenges of informality and the transformative potential of cooperatives and the wider Social and Solidarity Economy (SSE) in advancing decent work and social justice.

Ms Esim noted that, as per ILO Recommendation No. 204, the informal economy encompasses all economic activities by workers and units that are not covered or insufficiently covered by formal arrangements. According to ILO estimates, six out of ten jobs globally are informal, rising to nine out of ten in low-income countries. This includes workers in sectors such as agriculture, waste management, and care services.

She highlighted that while progress has been made in some regions, transitions to formality are uneven, with some reflecting destructive formalization where informal job losses are not offset by formal decent work opportunities. The ILO’s Recommendation No. 204 provides a robust framework for facilitating transitions, emphasizing integrated policies and the vital role of cooperatives and SSE entities.

The session featured an inspiring panel of speakers who shared examples of how cooperatives empower workers in the informal economy:

• Ms Poonsap Tulaphan (Home-Net Thailand) highlighted how home-based workers organize through cooperatives to address their collective needs, improve working conditions, and gain better market access. She emphasized the importance of advocating as a unified voice for greater visibility and recognition by governments.
• Ms Sangita Gamit (SEWA Cooperative Federation, India) underscored the challenges informal agricultural workers face, including market inequities and the impacts of environmental changes. She emphasized the need for growth, training, and increased support to ensure their recognition both nationally and globally.
• Ms Maria Martha Iglesias (Cooperativa Planeta Verde, Colombia) showcased the cooperative’s efforts to enhance the lives of waste pickers through decades of organizing, securing rights, protections, and recognition that uphold their dignity.
• Ms Natalia Zarza (UTEP, Argentina) reflected on the struggles of popular economy workers, emphasizing how exclusion has driven people to create their own work. She highlighted the importance of mobilization and collective action to advocate for their rights.
• Dr Federico Parra (WIEGO, Colombia) concluded by advocating for the Social and Solidarity Economy (SSE) and cooperatives as alternatives to traditional capitalism. He emphasized collaboration and collective welfare as key principles for integrating informal economy workers into more equitable economic models.

We are here to say SSE and cooperatives are an alternative for welcoming informal economy workers. There is another way—beyond traditional capitalism—where collaboration and collective welfare take precedence over competition. Dr. Federico Parra, WIEGO

Key lessons and pathways forward
Discussions revealed several pathways through which cooperatives and SSE entities contribute to transitions to formality:

• Self-organization: Informal workers can organize into cooperatives, gaining access to formal arrangements, improving productivity, and securing collective assets. Examples include waste picker cooperatives in the circular economy and platform cooperatives in the digital economy.
• Social protection: SSE entities facilitate access to social protection systems, act as service providers, and support national social protection systems through delegated administrative functions.
• Partnerships: Collaborations between social partners and SSE entities enable better representation, services, and advocacy for informal workers.

A united call for action

The session concluded with a collective call to leverage the upcoming ILC General Discussion in 2025 to amplify the role of cooperatives and the SSE in facilitating transitions to formality. Participants emphasized the importance of presenting a unified message that cooperatives and the SSE offer a viable pathway to achieving decent work and inclusion for informal workers. This session underscored the ILO’s commitment to strengthening connections between the cooperative movement and the broader SSE, advancing inclusive and sustainable transitions for all workers.