The International Labour Organization launches a new project on just transition and formal economy in Timor-Leste

The launching of the ILO’s RBSA-funded intervention titled "Preparing Timor-Leste’s Workers and Policy Makers for Just Transition and Formal Economy" marked with a consultation workshop conducted on 15 August 2024 in Dili. The consultation workshop brought together key stakeholders, including government ministries as well as workers’ and employers’ organizations, to discuss the priorities and challenges that align with the project’s strategic focus.

The consultation workshop began with the presentation about the project by Diego Rei, ILO’s Labour Market and Employment Specialist, followed by a presentation on ‘Just Transition: Managing Change through Dialogue, Participation & Support’ by Arun Kumar, ILO’s Social Dialogue Specialist.

“Just transition is not simply about a safety nets, but a means to bring economic life into a democratic and sustainable framework, to be decided through a meaningful social dialogue and driven by broadly shared economic and social priorities” said Diego during his presentation.

The consultation workshop, attended by 33 participants including 12 women, aimed to engage stakeholders in meaningful discussions to explore their needs and priorities, ensuring the alignment of the project, which is designed to prepare Timor-Leste’s workers and policymakers for the economic transitions necessitated by climate change and other global trends, with local realities and expectations.

During the discussion, representatives of Secretariat of State for Vocational Training and Employment (SEFOPE) emphasized the need for an integrated policy framework between line ministries by highlighting the National Employment Strategy 2017-2030 as a critical policy and identifying the importance of reforestation and the socialization of environmental laws including strengthening traditional customs (Tara-bandu) as key areas for follow-up. They also pointed out barriers such as limited budget allocations and overlapping laws between ministries.

Meanwhile, representatives from the Ministry of Tourism and Environment, including representation from National Designated Authority (NDA) and Chamber of Commerce and Industry Timor-Leste (CCI-TL), identified several critical policies such as the Timor-Leste Climate Change Policy, Carbon Capture Policy and National Climate Change Action Plan, National Strategy for Biodiversity. However, they pointed out significant barriers to effective implementation, including a lack of coordinated sectoral action plans and inconsistent political commitment that should be addressed with the creation of a legal framework and awareness-raising and capacity-building initiatives.

From the perspective of workers, Timor-Leste Trade Union Confederation (KSTL) focused on the alignment of national strategies, emphasizing the need for the National Labour Council's involvement in decision-making processes. They also stressed the importance of linking national initiatives with municipal actions as well as internal capacity building and knowledge-sharing management.

"Aligning national strategies with municipal actions and involving the National Labour Council is key to effective policymaking and implementation," said Almerio Vila-Nova, President of KSTL.

The consultation highlighted a wide range of needs and priorities, emphasizing the importance of aligning them with the project’s strategic focus. Inputs gathered during the consultation workshop would be used to effectively support Timor-Leste’s journey towards a just transition and the development of a formal economy, laying the foundation for a sustainable future.