Keynote Address to the Regional Trade Union Seminar: Decent Work in a Globalising Economy

Mr Chairperson,

Distinguished guests and dear participants

Thank you very much for your kind and generous hospitality extended to me and my colleagues and your invitation to address the Regional Trade Union Seminar on Decent Work in a Globalising Economy. It is indeed a privilege and pleasure for me to speak on the theme of “Promoting Decent Work through Job Creation, Skills Acquisition and Productivity Enhancement”

At the outset, I would like to convey to you the warm greetings of the ILO Director-General Mr Juan Somavia, Dan Cunniah, Acting Director of ATRAV which is the workers group in the ILO, and convey his best wishes for the success of this seminar.

I am glad to note that this seminar is being held as the result of an the outcome of the 14th ILO Asian Regional Meeting held in Busan , South Korea last year. At that meeting, , the attended by tripartite representatives from 40 Asia Pacific Nations launched where the Asian Decent Work Decade and was declared committed themselves to making a concerted and sustained effort to realise decent work in all countries, of our diverse continent.

The objective of this seminar is to provide trade unions an opportunity to share insights and ideas on policies related to decent work in a globalising world and its implications for economic development in the region, particularly South East Asia . This seminar will also examine the multiple challenges faced by the trade unions in promoting decent work through job creation, labour standards, social protection, skills acquisition and social dialogue.

This Century has been described as Asia ’s Century. Let me begin by highlighting some of our challenges in the region We all know that Asia occupies a premier position in the global economy today. The growth output and rise in labour productivity in this region is the most rapid in the world. The region has led the world in effectively reducing poverty on a per capita basis. We It should be noted that Asia n people achieved this remarkable progress amidst a series of political turmoil, national calamities, 1997 financial crisis and the health epidemic of SARs and avian flu. We can take pride pride in this achievement Of this achievement despite a rather difficult environment.

Secondly, At the same time, we are fully aware of the challenges facing us which are equally familiar to all of us. Asia is still home to three quarters of the world’s poor. Despite progress over the last decade, the Asia-Pacific region has the largest number of child workers aged between 5 - 14 years which is a staggering round 122 million, or about estimating to about 64 per cent of working children worldwide. Decent Work deficits remain are staggering overwhelming, and are even worsening on the rise in a number of countries where women and young workers, in particular, are experiencing reduction in wages, long working hours, poor working conditions and precarious forms of employment.

In other words, thirdly, the dynamic economic picture in our region has not been matched by our employment performance. Instead, under- employment, characterised by low productivity and income are a common feature in many Asian countries.

Without creating more and better jobs, we shall not be able to integrate disadvantaged groups of young people and women into the labour market.

Even when people have jobs today, their level of insecurity and uncertainty has increased. As mentioned by Ms Halimah Yacob, Chairperson of the Workers’ Group at the Fourteenth Asian Regional Meeting, “a major issue of labour market governance was that employment security has been eroded by drastic changes in the labour market and an upsurge in non-traditional forms of employment, resulting in a rising number of working poor. Asian countries must find an effective balance between stability and security on the one hand, and flexibility, on the other, stability and security, conditioned by respect for rights and negotiated solutions in a dynamic labour market environment”.

Fourthly, One of the major challenges we are facing today is the concerns on how to improve management of labour migration in order to benefit both sending and receiving countries?. What are the measures we need to introduce for to improving protection of migrant workers? Last but not least, limited social protection is one of the greatest decent work deficits in the region. How do we extend social protection in the region characterized by a with significant proportion of workers in the informal economy, changing pattern of work, labour migration and health hazards, including HIV/AIDS?

These are the challenges for governments, workers’ and employers’ and workers’ organizations at large. We must work together to overcome these decent work deficits. In doing so, we should ensure that the principles and rights at work are fully respected, and demonstrate that social dialogue is the most effective way of achieving national consensus on the best policy combination for a country.

As mentioned by the Director-General of the ILO at the opening ceremony of the Fourteenth Asian Regional Meeting : “ there was is an urgent need to build trust and social dialogue along with sound institutions of representation and negotiation in order to achieve build cohesive and stable societies”.

At this stage, let me reiterate the decent work agenda of the ILO – its concepts, key challenges and strategies.

What is Decent Work?

Decent work sums up the aspirations of people in their working lives. It involves opportunities for work that is productive and delivers a fair income, security at the workplace and social protection for families, better prospects for personal development and social integration, freedom for people to express their concerns, organize and participate in the decisions that affect their lives , and equality of opportunity and treatment for all women and men.

As you all know, decent work as you all know began as a tripartite goal of the ILO constituents and has now be is now embraced as a global goal by Governments at the highest level. Decent work must be based on national commitment, supported by regional initiatives in a conducive global environment.

The Decent Work Agenda of the ILO lays emphasis on the Fundamental Principles and Rights at Work, Employment, Social Protection and Social Dialogue. We at the ILO are committed to the “Decent Work Agenda” to bring about justice, democracy and accountability which are paramount to change. It is important that we work together to achieve this end.

And as you know the ILO endeavours to lead the way through Tripartism.

Achieving decent work should, therefore, be is the priority for Asia in this century twenty first century. Increasingly the talk is of the 21st century is the Asian century. In this period of rapid change, The question for Asia is how to achieve it in this period of rapid change; how the world is looking to Asia for examples and good practices on how to seize the opportunities and address the challenges posed by globalisation and intensifying competition, technological progress, demographic dynamics and changing nature of jobs and work.

The distribution and benefits of globalisation and economic growth within and between countries has been uneven. Not all countries and groups in society are become integrated into the global economy. Several countries in the region have been mired in social or political conflicts and tensions, their path to democracy and peace hampered by the lack of decent and productive employment opportunities for the people and the lack of respect for the fundamental principles and rights at work. Realisation of the Decent Work Agenda begins with a clear conviction that people must be at the centre of development. To achieve this, the agenda must embrace justice and equity. It is my belief that these universal values qualities must be reflected in labour relations and among others in public and private partnerships.

What are the key challenges for promoting decent jobs?

As I said earlier, Asia ’s economic performance has not been matched by performance in job creation. Increased trade, direct foreign investments and robust growth of output have failed to keep pace with the growth of the labour force, let alone reduce unemployment and underemployment. The jobs challenge is enormous. With Approximately 1.9 billion workers, of Asia ’s labour force is huge and growing – by at least 14 per cent or 256 million over the next ten years. By 2015, Asia will be home to some 60 percent of the world’s total labour force.

The most worrying aspect of the job deficit is its impact on young people. We are in the danger of letting down the millennium generation. The twenty- first century cannot belong to Asia ’s youth if they do not have decent jobs. A young person’s risk of being unemployed is at least three times higher than that of adults. The Asian Decent work agenda should, therefore, lay emphasis on education and training, job creation, employability and social protection for young people.

An equally serious challenge is underemployment, which manifests itself in different forms, including workers voluntarily working less than full time, taking jobs below their educational qualifications or skills or being under-utilised. Millions of workers are now moving into the informal economy. In some countries the workforce in the informal economy is between 60 -90 percent, with a high percentage of women.

In the globalising world, we also face an enormous challenge in that people with jobs today are working with a high level of insecurity. Uncertainty has increased particularly where employers are seeking greater flexibility to hire and fire workers in response to intensified global competition and where effective social protection is limited or non- existent. Employers, in their search for ways to increase the flexibility of working arrangements to keep up with their most innovative competitors, prefer to employ workers on a subcontracting, part- time, temporary or casual basis. Such flexible employment arrangements lack both job security and proper social security provisions. Related to such employment is the growing phenomenon of individual contracts in place of collective bargaining.

Workers’ safety and health is also a major challenge. Decent Work must be safe work. According to ILO estimates, in Asia , one million workers are killed annually due to work- related diseases and accidents, not to mention the many more, whose productivity and quality of life are affected by exposure to poor working conditions and occupational safety and health hazards.

Another serious challenge in the region is the ratification of Ratification of member states of the eight ILO fundamental conventions:– C29 Forced Labour; C87 Freedom of Association and Protection of the Right to Organize, C98 Right to Organize and Collective Bargaining; C100 Equal remuneration; C105 Abolition of Forced Labour; C111 Discrimination (Employment and Occupation);C138 Minimum Age; and C182 Elimination of the Worst Forms of Child Labour. Ratification of these Conventions by Member States has risen and efforts to bring in labour legislations in line with ratified conventions have picked up.

Compared to other regions in the world, Asia- Pacific has the lowest rate of ratification. on the eight core conventions. Only t Thirteen countries in Asia and the Pacific have ratified the Freedom of Association Convention (No.87) and sixteen16 countries have ratified the Right to Organize and Collective Bargaining Convention (No.98). But ratification is not the same as effective implementation, and we cannot ignore the fact that there are still many cases of violations of these fundamental principles. To deal with such violations, the ILO has been pro-active in terms of in helping to promote legal frameworks and national environments where joining and taking part in trade union activities is respected and upheld for what it is – a human right at work and a critical element of economic, social and political progress.

Workers in the informal economy, agriculture and export processing zones, migrant and domestic workers, often face difficulties in exercising their right to freedom of association and collective bargaining. Here I wish to emphasise, that without strong trade unions, employers’ organisations and effective mechanisms for social dialogue and tripartism, the true achievement of decent work is not possible.

Labour migration is yet another formidable challenge facing the region. The issue of labour migration is also key in this region. The growth rate of labour migration has been more than twice that of the labour force of the countries of origin. Labour migration has been over twice the average growth rate of the labour force of the origin countries. The problems issues are several and complex in both sending and receiving countries; among these arem the impact on labour markets and jobs, the growing increasing numbers involved drawn into irregular migration, smuggling and trafficking, the conditions of employment of migrant workers and protection of their basic rights of migrant workers is increasing. How do we improve management of labour migration in order to benefit both sending and receiving countries? What are the measures we need to introduce to improve the protection of migrant workers?

Last but not least, the region must cope with the challenge of demographic dynamics. Whilst many countries in the region face the challenge of an There is the challenge of finding enough decent jobs for the huge ever-increasing number of young people increase in the number of young people entering the labour market, others grapple with the problem of but at the same time, a number of countries face the growing challenge of a rapidly-increasing very rapid ageing population. In Singapore , the percentage of older people will triple from 2000 - 2015. In Korea it will rise from 11percent of the population in 2000 to 27 percent in 2025, and 41 percent in 2050. The figures of China and Thailand are equally alarming. The social and economic consequences of ageing may be harsh, requiring major policy responses.

How then do we meet these challenges? Where are the effective areas of ILO intervention? Three types of action stand out.

1. Job creation – the Eeconomic activity must drive the creation of jobs, as jobless growth is not a viable option. Economic growth is meaningless, if the majority of the people are left behind in the process. People must be the object and focus of development. We cannot consider labour as a simple commodity. Even where growth is strong there are gaps, inequalities, and insufficient opportunities. I am sure this seminar in your debates and discussions here; will help you you will help clarify your policies and options and prepare your plans of action, given the wealth of knowledge and experiences which will be shared during the debates and discussions. New opportunities should be seized and I mention one of them, which is the promotion of green jobs. Today trade unions should be actively engaged in the promotion of green jobs. New processes are needed to fashion a green economy. Environment protection does not mean giving up on growth, development and better living standards. with the experiences from other countries, as you prepare your plans of action.

2. The second action focus should be on productivity enhancement. Productivity growth is a major factor the ultimate source of growth in in improving living standards. If gains from increased productivity are is distributed to workers in the form of higher wages and earnings, improved working conditions, social security then, productivity enhancement is the sustainable route out of poverty. However, what we have today is a low productivity scenario caused by multiple factors, including: a Presently, with the decline in full time work and an increase in casual and temporary employment; , workers holding multiple jobs, with casual and temporary nature of employment, l low remuneration, lack of security, low levels of skills and, education, lack of team motivation, absence of team work,, motivation lack of worker - management relations, and corporate policies driven mainly by share-holder return requirements. and hence low productivity.

The key challenge is how to promote productivity and competitiveness without sacrificing decent jobs. as Pproductivity and as competitiveness cannot be sustained on cheap labour.

The third action focus should be on Skills Acquisition –T the factors determining productivity and competitiveness are education and acquisition of relevant skills. Training of the workforce has become increasingly important in recent years. More and more countries are focusing emphasising on the knowledge economy. Today’s world demands organisations designed on skills- based systems, which adapt quickly to the new circumstances. and which react to the fact that with globalisation, the nature and content of jobs and the skills required are changing at a fast pace. For workers to find decent jobs, they need to be equipped with a broad spectrum of skills that enables them to move around, as the skills required are changing rapidly. Skills and competencies define the capacity to make use of job and income opportunities, to adapt to changes in the labour market brought about by technological change and progress. Skills and knowledge for improved performance are keys to employability. A rising demand for skills, if not met by training systems, carries the risk of exclusion of low skilled workers.

The ILO considers the access to education and training a right of all workers, women and men, young and older, migrant workers, and workers with disabilities, in the formal and informal economy. ILO’s strategy to these challenges is one of assisting constituents in developing policies and programmes for skills development, in order to enhance capabilities of workers, managers and policy makers. The strategy is based on three key policy areas: training policies and systems, skills for technological changes, and improving access to training. National policy makers need to build capacity for skills development, and it is heartening to note that many governments in our region are very much aware of this urgent need and have allocated resources to training and re-training programmes, which particularly target young workers. . The ILO has established a regional skills network in Asia in which the constituents of the region as well as technical and research institutes can become partners, to share knowledge and respond to common concerns.

In addition, education in workers rights and access to training is imperative. Good employer/workers relations and social dialogue mechanisms help stimulate workplace innovation. Expansion of the informal economy in most developing countries exacerbates low productivity employment and poor working conditions. Discrimination between men and women, persons with disabilities and migrant workers, creates barriers to education, training and decent employment.

In conclusion, the Decent Work Agenda is a major factor towards can contribute to a sustainable route out of poverty, addressing assist in addressing the growing economic inequalities both within and between countries in the region, and thus make an important contribution to the achievement of the Millennium Development Goals. This seminar, therefore, is of particular significance for promoting decent work in the our region in the years to come.

Mr Chairperson, distinguished participants, we in the ILO see the significant potential for working closely together with the constituents to deal with the challenges ahead and to realize decent work in the region. We have been working together with you in sharing our experiences and participating in your seminars and workshops. I would like to assure you all of the full support of the ILO, in particular the Regional Office of Asia Pacific in Bangkok , as well as the sub regional and country offices. I am confident that this collaboration will be further strengthened by our common desire to realize decent work in the region.

Many of You have been working in solidarity with the national regional and international trade union movement for promoting social justice and improving the working and living conditions of the working women and men of our region. You are helping highlight the fundamental economic, political and social reality in Asia today. Growth is about not delivering enough decent jobs, if growth does not deliver decent jobs, it will deliver inequality, it will deliver instability, and it will deliver unrest and turmoil. As the ILO constitution reminds us, peace comes hand-in-hand you cannot have peace without social justice.

You are the leaders and the collective voice of the Asian workers and you should take great pride in the fact that your message is getting through…growth with equality … a fair chance for a decent job.

Finally, I should say that just glancing at the rich agenda and the impressive set of technical papers is enough to assure me that your deliberations, dealing as they are with the ILO ’s core mandate, will be of great value to us in our concerted efforts towards achieving Decent Work in Asia and the Pacific are central to the ILO's interests and mandate.

Let me conclude by quoting again Mr. Juan Somavia’s remark at the opening session of the Fourteenth Asian Regional Meeting:

“I am beginning to see an emerging global movement that looks at Globalisation through a decent work ethic- and finds it wanting. It already has a slogan:

Decent work for a decent life.

We now have before us a tremendous opportunity.

The energy, ideas and global policy leadership of Asia can set us on our way to making good on the key demand of people and families for security…for hope…for dignity …for growth that truly delivers decent work for a decent life ”.

Thank you.