New ILO project works towards formalizing Lebanon’s economy through tripartite social dialogue

The ILO Regional office for Arab states organized a two-day workshop “the Requirements for the Transition from the Informal to the Formal Economy” in Lebanon. The workshop was held by the SOLIFEM project funded by the European Union to support the transition from the informal to the formal economy through tripartite social dialogue in the countries of the Southern Neighbourhood, with a particular focus on Algeria, Egypt, Lebanon and the Occupied Palestinian Territory (OPT).

The main objectives of the workshop were to secure the buy-in of ILO tripartite constituents on the proposals of the SOLIFEM Reference Group through bringing together union and employer representatives, entrepreneurs, workers and government employees from relevant ministries to analyse the drivers of informality and identify opportunities for formalization of enterprises and jobs in the context of the five sectors identified by the constituents. The five sectors, which were previously agreed upon by constituents, are the agrifood, agriculture, fisheries and construction sectors, as well as daily wage work. Recommendations were developed through tripartite discussions to guide the work of SOLIFEM in Lebanon.

The workshop also aimed to explore other similar initiatives and potential linkages with other initiatives and actors, including CSOs, in line with ILO Recommendation 204 in Lebanon. It also aimed to begin a process of increasing public awareness on the importance of addressing the drivers of informality in Lebanon and the importance of addressing them through different avenues.

“The question of informality is at the heart of Lebanon’s economic and social challenges as it seeks to recover from the economic crisis,” explained ILO Deputy Regional Director Peter Rademaker at the event. “The crisis in Lebanon has increased levels of informality in business and in employment. Informal enterprises complete with formal enterprises. Workers in the informal economy lack basic protections such has health care, a written contract and access to social protection.”

Rademaker continued: “Yet the ILO’s approach is not to combat informality, but to work with constituents on a national strategy to reform economic and social policies in a manner that will provide incentives for the formalization of businesses, and for the formalization of jobs, through a process of tripartite social dialogue that achieves a consensus based on the shared interests of workers, employers, government.”

SOLIFEM Chief Technical Adviser Daniel Cork explained that the project contributes to many aspects of the ILO’s work in Lebanon and across the region. He said: “Not only does SOLIFEM seek to strengthen tripartite social dialogue, but it is also supporting ILO constituents in the development of a first national employment policy for Lebanon. At the same time, a critical element of SOLIFEM’s efforts is to work with government and social partners to reach out to young people and women in the informal economy, to invest in building the confidence and skills of young people and women, and to strengthen the resilience of enterprises.”

Government, worker and employer representatives addressed attendees on the second day of the workshop.

Mrs.Marlene Atallah, said: “Because of the negative effects facing workers in the informal sector, there is more interest in issues relating to employment, job creation, and strengthening the formal sector, which have become the biggest challenges we are currently facing. We are working in cooperation with social partners, the ILO and regional and international bodies interested in employment issues in order to reverse the growth of the informal sector and to transition the establishments operating in it to the formal sector. Our meeting today is an important step in this direction.”

President of the General Confederation of Lebanese Workers Dr. Bechara el Asmar said: “We thank the ILO and the European Union for the SOLIFEM project, which is indeed a unique project that addresses the catastrophic reality of some labour sectors in Lebanon. We must seriously address the issue of informal labour in the fishing, agricultural, daily wage work and construction sectors, and this project is the first to work on determining the size of the problem and the appropriate ways to address it, and on developing solutions through cooperation and dialogue to launch a new reality for these workers.” He continued: "I hope there will be continuous follow-up on this project so that we can put the recommendations issued by the conferees into practice.”

President of the National Federation of Employees’ and Workers’ Unions in Lebanon (FENASOL) Castro Abdullah said: “This project creates an opportunity for real social dialogue between the social partners. We are desperately in need of such dialogue in order to discuss basic issues, the most important of which is what we are suffering from today in Lebanon, as informal work increases as a result of the economic crisis. We welcome this initiative, because many of those we represent are agricultural, construction, domestic workers, day workers and fishermen, and they have been excluded from article 7 of the Lebanese Labour Law for the past 73 years.”
Board member of the Association of Lebanese Industrialists Dr. Ahmad Jaber said: “One of the advantages of this meeting within this project is that it brought together the three social partners in Lebanon, which contributes to consolidating the relationship between workers and employers and addressing the concerns that exist between them. When the three parties realize that their interests are the same, then harmony will be established and we will have a unified goal, which is to save the country from this crises.”

The two-day workshop began with a tripartite social dialogue workshop led by the different constituents and bringing together, employers, workers, and government. The discussions resulted in a number of agreed areas of focus by tripartite constituents related to easing business registration, legal and technical support for companies in the informal economy, campaigning for formalization and strengthening of labour inspection. On the second day, the workshop was opened to a greater audience, to discuss issues of coordination and the recommendations brought forward at the end of the tripartite social dialogue session.