Newsletter Country office for Botswana, Namibia, Lesotho, Swaziland and South Africa Decent Work Team for Eastern and Southern Africa May 2012 Contents Introduction Foreword... 2 Focus on. The role of social dialogue in socio-economic development and social cohesion in Southern Africa... Pro-employment macroeconomic frameworks and national employment policies: A vehicle for increased propoor growth and decent and productive employment... News from the region Decent work country programmes in Southern Africa... 6 3 4
Introduction Foreword In the past couple of years, many countries in Southern and Eastern Africa have presented positive economic growth figures. At the same time however, unemployment continues to rise, leaving many without formal employment or being forced into the growing informal sector. The rise in unemployment has become a common phenomenon and needs to be addressed urgently. All of this was exacerbated by the global financial recession where growth figures were drastically revised downwards, leading in most instances to job losses. Youth unemployment in particular has become an enormous challenge and will need specific, focussed attention. There is little opportunity for the average high school graduate to enter the formal economy and gain an initial labour experience which is so important in preparing for longer term careers in decent employment. For this reason, youth unemployment was one of the main items for discussion at the 12 th Regional Meeting of the ILO, held in Johannesburg, South Africa in October 2011. At the conference many government, worker and employer leaders agreed that economic growth alone was not sufficient to create employment. They believe that there is an urgent need to embark on inclusive growth paths that create jobs and simultaneously reduce poverty. Two key issues are at the heart of going forward: an enabling policy environment to stimulate pro-job economic growth, and sound tripartite labour relations, including social dialogue. It is therefore no surprise that most of the countries, served by the ILO Decent Work Team and the Country Office based in Pretoria, have indicated that social dialogue and the development of inclusive employment policies are among the priorities where ILO assistance is required. These priorities are the cornerstones of the respective Decent Works Country Programmes. It must however be stressed that although job creation and retaining jobs are important, these need to be linked to the concept of striving toward decent work. Decent work is work that respects, among others, basic human rights, a minimum floor of social protection for a worker, freedom of association, the right to collective bargaining and work that provides an income sufficient to live a decent live. Working poor are still a harsh reality in many parts of Africa and the world. This is evident by the many informal vendors and unregulated domestic workers in this region whose work often provides survival, but under unacceptable working conditions. Child labour is unfortunately still a challenge affecting a significant number of children in remote areas of Africa. What are needed now are new perspectives and approaches aimed at creating decent work, for example the implementation of job targeting. Experience has taught that the challenge is complex, multi-dimensional and depends on factors sometimes beyond the control of national governments. Nevertheless, there are areas where government and the social partners can intervene, mostly through policy work and improving social dialogue. This office newsletter, the first of its kind for the ILO Pretoria Office, aims to touch on some of the work that the ILO is currently undertaking in the sub-region, and to show some of the ongoing work with its constituents, specifically in the areas of social dialogue, social protection and employment. Furthermore, we proudly present the five Decent Work Country Programmes we are currently implementing for South Africa, Namibia, Botswana, Swaziland and Lesotho. Vic van Vuuren Director 2
Focus on... The role of social dialogue in socio-economic development and social cohesion in Southern Africa Strengthening tripartism and social dialogue is the fourth strategic objective of the ILO. It is one of its founding principles as represented in the Philadelphia Declaration, which stipulates that the ILO has the solemn obligation to further programmes which will achieve the collaboration of workers and employers in the preparation and application of social and economic measures. Social dialogue has become an important component of good governance in many countries, and has been used as an integral part of socio-economic decision-making. Social dialogue has also played a fundamental role in furthering democracy, social justice and a productive and competitive economy. It has facilitated consensus building with a balance between the demands of economic development and social cohesion, socially acceptable combinations of wealth creation, economic and social progress, as well as equity. It has also facilitated the smooth implementation of the agreed policies, thereby minimising the risk of industrial and social conflict. What is social dialogue? There is no universally agreed definition of social dialogue. The ILO has however adopted a broad definition which describes social dialogue as including: all types of negotiations, consultation or simply exchange of information between representatives of governments, employers and workers on issues of common interest relating to economic and social policy. Exchange of information is the most basic process of social dialogue. Parties merely inform one another of the action being contemplated. Consultation is a process whereby social partners go beyond mere sharing of information and enter into discussion. Even though consultation does not imply the power to make decisions, it can lead to such a process. The process of negotiation promotes debates and exchanges of positions which are intended to bring about agreement or consensus on the action to be taken, for example, collective bargaining agreements and social pacts between governments, employers and workers organisations. Who are the main role-players in social dialogue? Traditionally, the role-players involved in social dialogue have been representatives of employers and workers organisations (bipartism) or have included government representation, usually through a ministry responsible for labour (tripartism). This is because social dialogue has its roots in issues relating to the work environment such as workers rights and conditions related to production. However, since the 1990s, social dialogue on wider issues has emerged in many countries as a means of addressing challenges relating to economic crises, structural changes in the economy and regional integration involving other major stakeholders in society. This form of social dialogue has been called tripartite plus. Given this background, no blueprint or 'one size fits all' structure exists for social dialogue. Each national context determines the best model for that particular country. Social dialogue in practice: a Southern African perspective Apart from social dialogue contributing to labour peace and social stability, which in turn contribute to economic and social development, it has several other advantages. Firstly, social dialogue has been crucial in the democratisation of economic and social policy-making. Since the demise of apartheid in South Africa, the National Economic Development and Labour Council of South Africa (NEDLAC) has been at the forefront of negotiation regarding social and economic policies and legislation intended to transform society from the ills of the past, which include poverty, discrimination and unemployment. Policies on industrial development, broad-based black empowerment and SMME development were concluded, as well as certain legislations such as the Labour Relations Act, Mine Health and Safety Act and the Basic Conditions of Employment Act. NEDLAC also concluded the Framework for South Africa s response to the International Economic Crisis in 2009, which provided measures to address the impact of this social crisis on the country. Secondly, social dialogue has been instrumental in the legitimisation and ownership of decisions, reduction of conflicts and promotion of partnerships. Lastly, it has been useful in the minimisation of tension during times of economic crisis and transition. In Zimbabwe, social dialogue was instrumental in addressing the economic crisis faced by the country in the recent past. This resulted in the conclusion of the Kadoma Declaration: Towards a Shared National Economic and Social Vision, which provided for measures to be undertaken by the tripartite partners to remove risk factors in Zimbabwe. 3
Focus on... Pro-employment macro-economic frameworks and national employment policies: A vehicle for increased pro-poor growth and decent and productive employment Pro-employment macro-economic policy can be briefly defined as the framing of macro-economic policy instruments (fiscal policy, monetary policy, capital account management and exchange rate policy) to drive employment creating investments, structural transformation and growth. The ILO has, from its inception in 1919, emphasised the centrality of employment in poverty alleviation and improving the living standards of people. The Declaration of Philadelphia recognises the solemn obligation of the ILO to further among the nations of the world, programmes which will achieve full employment and the raising of standards of living, while the preamble to the ILO Constitution provides for the prevention of unemployment and the provision of an adequate living wage. Background In 1964, the ILO adopted a landmark international instrument, namely the Employment Policy Convention No. 122 and its accompanying Recommendation. The convention states that each member shall actively pursue a policy designed to promote full, productive and freely chosen employment. The goal is to stimulate economic growth and development, raise living levels, meet the human resources requirements and overcome un- and under-employment. In response to the failure of Keynesian full employment economics to address stagflation, neo-liberal economics emerged in the 1980s. This not only affected the prominence and effectiveness of the employment and social justice policies of the ILO, but also led to the (now) much dreaded structural adjustment programmes and unfettered globalisation in the 1990s. From the mid 1990s, the ILO took the lead in the discussion on the social costs of globalisation, to which the Asian crisis of 1997 lent credence. The harsh reality was that increased growth from stabilisation and liberalisation policies did not bring about significant improvement in people s lives. As un- and under-employment soared, poverty and inequality within and across nations continued to increase. It was, however, the more recent 2007-2009 crisis that triggered a real paradigm shift in development thinking, even at the hardcore Bretton Woods institutions. It is now generally agreed that growth alone is not sufficient to bring about 4
poverty reduction, and that employment plays a mediating role between growth and poverty reduction. The only resource the poor have is their labour, and employment is the most significant source of income for them. Increasing productive and decent employment therefore is the surest means to alleviating mass poverty. Furthermore, thanks to the ILO, it is now generally agreed that growth does not automatically translate into increased jobs. There is a significant role to be played by the state. In addition to providing an environment conducive to growth in order for the private sector to thrive, it has to direct the nature of growth so that it is pro-poor, inclusive and employment rich. Highlights of the work done by the ILO in employment promotion The Decent Work Programme, since its introduction in 1999 by current Director General, Mr Juan Somavia, has achieved worldwide recognition in the field of work and employment. At the 11 th ILO African Region Meeting held in Addis Ababa in 2007, Africa adopted and reaffirmed the importance of the Decent Work Programme for the period up to 2015, with 18 critical targets including incorporating employment as one of the central objectives, macro-economic policies, promoting youth unemployment, promoting and extending social security and occupational safety and health, rights at work, child labour and social dialogue. The first review of progress and recommitment took place during the follow-up meeting in Johannesburg, South Africa in October 2011. At a global level, the credibility of the ILO Decent Work Agenda won the favour of the United Nations System, and target 1B on decent employment was added to the Millennium Development Goal on halving poverty (MDG1). In response to the 2007-2009 crisis, and in furtherance of the Decent Work Agenda, the ILO in 2008 adopted the Declaration on Social Justice for a Fair Globalisation which confirms the Decent Work Agenda as the organising principle for the work done by the ILO, and notes that the four objectives are inseparable and mutually supportive. In 2009, at the peak of the crisis, the ILO adopted the Global Jobs Pact that addresses the social and employment consequences of the global crisis. The pact proposes a compendium of policies aimed at stimulating job creation, extending social protection, respecting international labour standards and social dialogue. Individual member states were expected to select and adapt them to their country s circumstances. The ILO supported member states in undertaking global Jobs Pact Country Scans, and South Africa was one of the countries to benefit. At its 99 th Session in 2010, the ILO Governing Body placed a recurrent employment discussion on its agenda. The conclusions of this discussion called for more attention to employment-friendly macro-economic frameworks, quantitative and qualitative targets in economic and sectoral policies and investment and expenditure plans. The conclusions specifically reconfirmed the central role of employment policy, human resources and enterprise development, while underscoring the need to step up work on the pro-employment outcomes of macro-economic, trade, investment and industrial policies. Progress in initiating pro-employment macro-economic frameworks and national employment policies In response to the employment discussion at the 2010 International Labour Conference, the ILO Employment Sector embarked on extensive work in building knowledge of macro-economic policies for employment creation, particularly in developing countries. This is being achieved through country research aimed at discerning what works and what does not work, and feeding this information to its advisory services. Furthermore, a number of global tools are being developed and will be released in due course, including: The Handbook on Employment Targeting The National Employment Policy Guide The Guide for Employment Impact Assessment of Infrastructure Investments The Resource Guide on the Informal Economy. The ILO has received overwhelming demand from member states for technical assistance in the development of national employment policies and mainstreaming employment in development frameworks and setting targets. The ILO approach to national employment policy development is comprehensive, recognising that employment is a crosscutting issue and is a result of macroeconomic policy, sectoral policy, growth and their interaction. Any national employment policy development should start with a comprehensive situation analysis of the labour, money and goods and services markets in addition to macro- and sectoral policies. This must be underpinned by social dialogue to achieve consensus on the priorities and the means to achieving the objectives. Status of work in the Southern and Eastern African Region The 15 countries falling under the Pretoria Decent Work Team for Southern and Eastern Africa have embarked on the processes of either developing employment policies as standalone policies and then mainstreaming employment in the national development frameworks, or directly developing employment strategies within the national development frameworks. The ILO is also assisting the Southern African Development Community (SADC) in developing the regional employment strategy. South Africa, for example, has incorporated employment in its development frameworks thanks to ILO technical support. The New Growth Path targets the creation of five million jobs by 2020, while the National Development Plan/Vision for 2030, currently being prepared, targets the creation of 11 million jobs, bringing the country to full employment at a 2-3% unemployment rate and elimination of poverty by 2030. The ILO is also supporting Namibia in the development of its National Employment Policy and mainstreaming its employment strategies in the National Development Plan, phase 4. Furthermore, Malawi has mainstreamed employment in the second phase of the Malawi Growth and Development Strategy (2012-16), while Mozambique and Uganda have adopted their national employment policies in 2011. Draft employment policies have been drawn up for Lesotho, Malawi, Mauritius, and Ethiopia, with assistance of the ILO. 5
News from the region Decent Work Country Programmes in Southern Africa Since the concept of Decent Work was launched in 1999 by the Director General of the ILO, Mr Juan Somavia, it has gained importance and recognition worldwide as a strong benchmark for the work of trade unions, ministries of labour and employers organisations. Decent Work, as simple as it is powerful, challenged and continues to challenge, mainstream ideas regarding economic growth, employment, enterprise development and worker- and employer-related issues. It is based on the understanding that work is a source of personal dignity, family stability, peace in the community, democracies that deliver for people and economic growth that expands opportunities for productive jobs and enterprise development. Decent Work is central to the collaboration between the ILO and its members. Through the Decent Work Country Programmes, the ILO constituents define the priorities and the targets within national development frameworks and aim to tackle major Decent Work deficits through efficient result-based programmes. The overview of implementation and planning is done by the Tripartite National Decent Work Country Programme Steering Committee, consisting of representatives of the ministries of labour, trade unions and employers organisations. To date, all countries served by the ILO Country Office in Pretoria, namely Botswana, Lesotho, Namibia, South Africa and Swaziland, have signed a Decent Work Country Programme, the details of which are discussed below. The Southern African Development Community (SADC) Decent Work Programme is in draft form and undergoing final constituent consultation. DECENT WORK A better world starts here www.ilo.org/decentwork The Decent Work Country Programme has as its aims, among others, social dialogue and tripartism. I believe that we should concentrate on good faith bargaining with realistic demands from the unions. The Decent Work Country Programme will assist in improving this climate of trust and spirit of dialogue. Tim Parkhouse, Namibian Employers Federation Secretary General Namibia The Namibian Decent Work Country Programme (2010-2014) was signed in June 2010 by the Minister of Labour and Social Welfare, the Honourable I Ngatjizeko. The Namibian constituents, comprising of the Ministry of Labour, the National Union of Namibian Workers, the Trade Union Congress of Namibia and the Namibian Employers Federation, identified employment, social protection and social dialogue as priorities for the Namibian programme. Since the signing of the Decent Work Country Programme, significant progress has been made in all three these areas. In this context, a remarkable effort has been made by the Ministry of Labour, in consultation with its social partners, to include the challenge of the informal economy in the new Employment Policy Framework, which it is developing with the technical support of the ILO. Other achievements by the Decent Work Country Programme include efforts in HIV-Aids at the workplace, child labour, social dialogue and the promotion of Convention 169 on Indigenous and Tribal Peoples. 6
Lesotho The second phase of the Lesotho Decent Work Country Programme was signed and launched on 29 February 2012 in Maseru. This phase is aligned with the major national development frameworks, the National Strategic Development Plan for 2012-2017 and the next UN Development Assistance Framework for 2013-2017. The second phase is aimed at: Delivering on programme-related outputs and outcomes Addressing the identified Decent Work deficits Contributing towards the attainment of the country s socioeconomic objectives as outlined in the national development frameworks. Delivering the keynote address at the signing and launch ceremony, the Honourable Minister of Labour and Employment, Mrs Maphoka Motoboli, said that the implementation of the country programme will, among other priorities, focus on mainstreaming the creation of decent employment, particularly youth employment, in national development and sectoral planning frameworks. The signing of the second phase of the Lesotho Decent Work Country Programme The document being signed is a commitment, and as partners we will have to push and work hand-in-hand to see that it does not only end in paper, but must be seen to be operational by the implementation of the proposed activities geared towards achieving our goals as a country. Workers Representative, Mrs Martha Mosoang-Ocran Swaziland On 27 October 2010, Swaziland launched and signed the country s Decent Work Country Programme (2010-2014) in Mbabane. This programme is the product of a consultative process involving government, represented by the Ministry of Labour and Social Security; organised business, including the Federation of Swaziland Employers and the Chamber of Commerce; and organised labour, represented by the Swaziland Federation of Trade Unions, Swaziland Federation of Labour and Swaziland National Association of Teachers. The focus of the Swaziland Decent Work Country Programme is to support national initiatives geared toward mitigating the impact of the country s financial and fiscal crisis in partnership with other UN agencies, and its priorities are to: Promote employment creation Strengthen and broaden social protection coverage Strengthen tripartism labour relations and social dialogue. Continued on next page... 7
News from the region... Continued from previous page South Africa The South Africa Decent Work Country Programme (2010-2014) was launched and signed by government and social partners on 29 September 2010 at the offices of the National Economic Development and Labour Council (NEDLAC). The South Africa Decent Work Country Programme is the culmination of a highly consultative process involving constituents from NEDLAC, government, Business Unity South Africa (representing employers organisations), organised labour and the community. The strategic focus of the programme is to lend support to national initiatives that are geared towards mitigating the impact of the current financial crisis and that fall within priority areas identified by government and the social partners. The priorities of the South Africa Decent Work Country Programme are focused on strengthening fundamental principles and rights at work; promoting employment creation; strengthening and broadening social protection coverage to include vulnerable workers operating in the informal economy and informal employment; and strengthening tripartism and social dialogue. Botswana From 2012, the Decent Work Team and the Pretoria Country Office will work toward enhancing the implementation of the Botswana Decent Work Country Programme for 2011-2015. In order to promote the collective effort of the UN agencies to support the attainment of the national development priorities as outlined in the National Development Plan 10, better collaboration and cooperation is needed between the existing structures and the Component Coordination Groups, as assembled by the Government of Botswana/UN Programme. The Botswana Decent Work Country Programme Steering Committee has been set up to provide overall guidance and assume responsibility for the effective implementation of the programme. The committee includes senior representatives from the Ministries of Finance and Trade, the Human Research and Development Council, the Directorate of Public Service Management, the Botswana Council of NGOs, as well as traditional constituents such as the Botswana Federation of Trade Unions, Botswana Confederation of Commerce, Industry and Manpower and the Ministry of Labour and Home Affairs. SADC The SADC Decent Work Programme 2012-2015 was discussed by ministers of labour and employment and social partners of the SADC at a meeting held in Luanda, Angola on 27 April 2012. The programme will now be subjected to national consultations, after which it will be reviewed by the above-mentioned stakeholders at the SADC meeting in April 2013. In the meantime, major elements of the programme will continue to be implemented at a sub-regional level. The SADC Decent Work Programme is the product of a highly consultative process driven by the SADC Technical Committee which involves all the regional constituents, namely governments, organised business (represented by the SADC Employers Group) and organised labour (represented by the Southern African Trade Union Co-ordinating Council). The focus of the SADC programme is to support the overall integration of sub-regional endeavours by bringing coherence to the sub-regional labour market. The priorities of the SADC Decent Work Programme are: Strengthening respect for and compliance with the International Labour Standards; Promoting employment creation; Strengthening and broadening social protection coverage; and Strengthening tripartism and social dialogue. K-9499 [www.kashan.co.za] International Labour Organization ILO Pretoria: Decent Work Team for Eastern and Southern Africa and Country Office for South Africa, Botswana, Lesotho, Swaziland and Namibia 20 Hotel Street, Crestway Block C, Lynnwood 0081 Tel: +27 12 818 8000 Fax: +27 12 818 8087 E-mail: pretoria@ilo.org Web: www.ilo.org This newsletter appears regularly. The views expressed are those of the authors. Editorial responsibility lies with the Director.