Decent Work and the Informal Economy by Samuel J. Goolsarran Labour – Management Consultant Salutations, Greetings Ladies and gentlemen, it is a great honour and privilege for me to be present at this symposium on The Musicians’ Professional Status and Intellectual Property Rights in Jamaica. I am pleased to make a presentation on behalf of the International Labour Organization (ILO) Subregional Office for the Caribbean (POS) on the subject Decent Work and the Informal Economy. In the name of its Director, Dr. Ana Teresa Romero, I bring to all warm and cordial greetings, and wish participants an enriching experience and fruitful exchanges of views and ideas for appropriate and practical action in the interest musicians, culminating, hopefully, in “symphonic harmony”. I would like to deal with the subject of Decent Work and the informal Economy in holistic way from the ILO’s perspective, focusing on: The ILO and its mission; The concept and goal of decent work; Fundamental Human Rights and Development; Social Dialogue in the Caribbean - legislative framework, CARICOM and Social Dialogue, the Potential of Social Dialogue, and agreements resulting from social dialogue; Government as a key Facilitator of dialogue; and The Challenge for musicians to organise to advance their interest. The International Labour Organization (ILO) The International Labour Organization (ILO) is regarded by member States as the most influential and universally-recognized global organization on labour matters, setting international standards for the conduct of labour and social relations. They accept the relevance of the ILO as “the global reference point for knowledge on employment and labour issues” now, and in the future. (The Director General of the ILO, Juan Somavia, in his report “Decent Work” to the 1999 International Labour Conference in Geneva). The ILO is a specialized agency within the United Nations system and has an inclusive participative structure as well as an enduring mission. With its distinct tripartite structure, the ILO brings together governments, employers and workers in the pursuit of social justice and better living and working conditions for people everywhere. 1 The ILO was established since 1919 to protect the fundamental rights of all workers in the formal and informal economies, to promote human and social development, and to foster a humane society. The protection of the rights of workers in informal sector remains a challenge to many national governments, and national and international organizations. The ILO is guided by the affirmation in the preamble to its Constitution that: “Universal and lasting peace can be established only if it is based upon social justice”; and by the principles enunciated in its of Declaration of Philadelphia, 1944. The Declaration of Philadelphia reaffirmed the fundamental principles on which the ILO is based and states that: . . • • . . • • Labour is not a commodity; Freedom of expression and association are essential to sustained progress; Poverty anywhere constitutes a danger to prosperity everywhere; All human beings, irrespective of race, creed, or sex, have the right to pursue both their material well-being and their spiritual development in conditions of freedom and dignity, economic security and equal opportunity. These are abiding and guiding principles, to which member States and all organizations and institutions, can identify, subscribe and support. The ILO recognizes that fundamental principles and rights at work constitute yardsticks to measure respect for human rights; and that the state, with the support of the social partners and civil society, should act as guarantor, protector and promoter of human rights of all its citizens and persons residing within its borders and territories, including migrant and foreign workers. These ideals and principles are of enduring relevance and will continue to impact on employment relations in terms of opportunities and problems in this heightened age of globalization and ever changing production systems with rapidly advancing new technologies. The Concept and Goal of Decent Work Throughout its rich history, the ideals and affirmations in its Constitution informed the work of the ILO. Its ongoing work programme sets out four strategic objectives, which will impact on economic, social, and human development globally, now and in the foreseeable future. These strategic objectives are: . • . • To promote and realize fundamental principles and rights at work; To create greater opportunities for women and men to secure decent employment and income - in conditions of freedom, equity, security, and human dignity; 2 . • . • To enhance the coverage and effectiveness of social protection for all; and To strengthen tripartism and social dialogue. These four objectives together define the ways in which the ILO can promote the goal of decent work. “Decent work means productive work in which rights are protected, which generates an adequate income, with adequate social security protection. It also means sufficient work …It marks the high road to economic and social development, a road in which employment, income and social protection can be achieved without compromising workers’ rights and social standards”.- Juan Somavia: Decent Work - Report of the Director-General to the 87th Session of the International Labour Conference, (Geneva, 1999) Fundamental Human Rights and Development Governments, employers’ and workers’ organizations must seek actively to build national consensus on economic and social policy, which aims at promoting a system of labour and social relations and rights consistent with international standards, norms, and principles. These standards and principles should be reflected in national policy, legislation and practice, including at the enterprise level in all sectors of the national economy. An effective national social system will ensure the observance and enforcement of the applicable laws – both rights and obligations. This is a continuing challenge to many national systems where sections of the population that have most need, are not adequately protected by law. Many do not enjoy the social protection, benefits, and services of the public administration systems. This is perhaps more prevalent in the informal economy, and policy makers and national systems need to take account of the problems raised by the informal sector in the management of the national affairs. The fundamental principles and rights, without distinction to formal or informal economy are set out in various international instruments, in particular, the ILO’s international labour Conventions and Recommendations. Conventions are open to ratification by ILO member States and are legally-binding for those who have ratified. Recommendations, on the other hand, are not legally-binding but provide guidance to policy, legislation and practice. The ILO Declaration on Fundamental Principles and Rights at Work, adopted by the International Labour Conference (ILC) in June 1998, marked a recommitment and a re-affirmation of the obligation of the 181 member states, by virtue of their membership in the ILO, to respect, to promote and realize in good faith the principles concerning: 3 . • . . . • • • the rights of freedom of association and effective recognition of the right to collective bargaining; the elimination of all forms of forced or compulsory labour; the effective abolition of child labour; and the elimination of discrimination in respect of employment and occupation. There are eight fundamental ILO Conventions (core Conventions), which relate to these principles, and they are: . • Convention No. 87: Freedom of Association and Protection of the Right to Organize, 1948; . • Convention No. 98: Right to Organize and Collective Bargaining, 1949; . • Convention No. 29: Forced Labour, 1930; . • Convention No.105: Abolition of Forced Labour, 1957; . • Convention No.138: Minimum Age, 1973; . • Convention No.182: The Worst Forms of Child Labour, 1999; . • Convention No.100: Equal Remuneration, 1951 and . • Convention No.111: Discrimination (Employment and Occupation), 1958. The principles of these fundamental Conventions establish a social minimum at the global level. These are internationally-recognized labour standards on basic human rights at the workplace, which will continue to impact on the conduct of labour and social relations in the future. Support for these labour standards was expressed in other international fora in recent years, notably at the UN World Summit for Social Development (Copenhagen, 1995), and the Ministerial Conference of the World Trade Organization (WTO) in Singapore (1996). This WTO conference marked a renewed commitment to internationally- recognized core labour standards and identified the ILO as the competent body to deal with, and set such standards, while rejecting the use of labour standards for protectionist purposes. Social Dialogue Social dialogue on social rights and economic matters affecting the formal and informal economies within member States should be encouraged as a matter of high priority. This approach promotes active consultations and cooperation at the industrial and national levels among public authorities as well as with workers’ and employers’ organizations, and other groups in the national community. This is necessary in order to foster mutual understanding and good relations, and to find agreed solutions to social and economic rights and problems. The promotion of social justice in the state community could be achieved only if the social partners and relevant stake holders themselves are involved in the 4 search for appropriate solutions through negotiations and social dialogue. The state agencies however, have a pivotal role and responsibility for the success of the tripartite social dialogue process. “… social dialogue …guarantee participation and a democratic process…The evolving global economy offers opportunities from which all can gain, but these have to be grounded in participatory social institutions if they are to confer legitimacy and sustainability on economic and social policies.” (Juan Somavia: Reducing the Decent Work Deficit: A global challenge -The Report of the Director-General at the 89th Session of the International Labour Conference, ILO, Geneva, 2001). The pillars of tripartism (for dialogue) - constituted by the state, employers’ organizations and workers’ organizations should be strong and effective to engage in social dialogue, and be based on the principles of trust and good faith. Success in the mutual outcome of social dialogue requires national commitment and national political will, and the full commitment of employers and workers and their organizations. As Mulvey notes in a report on Caribbean labour administrations to the ILO: “…social dialogue, … needs to be strengthened, encouraged and supported. This requires mutual support, respect and understanding. It also requires a high degree of trust between the social partners. The building of that trust, its maintenance and its sustainability requires a high degree of commitment and leadership .”(Kieran Mulvey, Chief Executive of the Irish Labour Relations Commission in a Report to the ILO Caribbean Office on Labour Administration (1997) Legislative Framework The legislation in most Caribbean countries provide for the establishment of tripartite committees/boards. These are advisory bodies which generally review legislation, working conditions, and labour rights, international labour standards and other matters pertaining to national labour policy. These contrast with the new agenda trend towards broader social partnership issues through dialogue, and expressed in partnership agreements achieved. CARICOM and Social Dialogue The principles of social dialogue have been enshrined in the principal instruments of CARICOM as policy commitments to be adhered to by Member States as follows: 5 The Revised Treaty of Chaguaramas Establishing The Caribbean Community, Article 73: Industrial Relations, requires the Council on Human and Social Development to promote: • • tripartite consultations among governments, workers’ and employers’ organizations; and the awareness of the requirements for collaboration of employers and workers for increased production and productivity in Community enterprises. Charter of Civil Society for the Caribbean Community, adopted by a resolution which was signed by Heads of Government in February 1997, is an expression of the commitment of the Member States to observe the provisions of the Charter including workers’ rights (Article xix); The Charter obligates CARICOM Member States to establish within their respective States a framework for genuine consultations among the social partners in order to reach common understandings on and support for the objectives, contents and implementation of national economic and social programmes and their respective roles and responsibilities in good governance. ( Article xxii) Declaration of Labour and Industrial Relations Principles on Consultation and Tripartism, also calls on member states: - to promote collective bargaining, consultation and tripartism as essential elements of the system of industrial relations in the CARICOM region (Article 43); and - to employ their best endeavours to consult with the Social Partners in establishing the relevant principles and policies to be applied in conditions and situations of financial stringencies. (Article 44) Potential of Social Dialogue The enormous potential of social dialogue to improve the social system and contribute to the creation of an inclusive national community must be tapped. The realization is that social dialogue, can, in good faith, promote national, social and political stability, and a more just society. The involvement of government and the social partners and civil society in national decision-making can promote greater consensus and contribute to national development, stronger democracy and good governance, which is expressed in representative inclusive participation, transparency in national policy implementation in a credible manner, and strict accountability to the national community. 6 Social Partnership in Ireland and Barbados There are outstanding models of national social partnership agreements in Ireland and Barbados. From the late 80’s and early 90’s, the social partnership and consensus-based approaches in Barbados and Ireland resulted in national agreements, which have had a continuing positive impact on the achievements of economic growth and social progress and rights. These agreements were the outcomes of serious negotiations undertaken in good faith between the governments and the other social partners. This recourse to the social partnership option had widespread support among the major social and economic interests in these countries, and fundamentally changed the traditional confrontational approach in managing national social and economic affairs. The social partnership agreements provide a solid policy foundation for the economic growth and development of these countries. These have resulted in a very good industrial relations environment to the extent that Ireland is attracting many substantial investors, and is one of the fastest growing economies in Europe. In recent years, both Ireland and Barbados have recorded the lowest incidence of industrial action within the European Union and CARICOM respectively. While there are many obstacles and challenges relating to information sharing, mutual trust, political will, leadership and national vision, Caribbean States are impressed by the achievements of social accords of Barbados, which drew from the successful model of social partnership from Ireland. The institutionalized national consultation resulted in the transformation of the then declining economies of Ireland and Barbados to ones of steady growth. Barbados is the pacesetter on national dialogue and consensus, and stands out as a Caribbean country which has successfully negotiated and concluded five tripartite protocols on Prices and Incomes Policy and Social Partnership, since 1993. These protocols receive parliamentary endorsement consequent upon negotiations. Accords of these types can offer examples of new possibilities for national development strategies for the Caribbean. It is for the governments of the region to concede with maturity in forging genuine dialogue by involving not only the established social partners of representatives of the trade unions and the employers, but the parliamentary political parties, and representative interest groups in civil society. This means governments sharing governance through pertinent information and joint decision-making on an agreed agenda in institutionalized, consultative negotiations and constructive engagements. Social partnership can transform a debt-ridden, stagnant, declining economy to one of success in growth, higher employment, and industrial stability as demonstrated in Ireland and Barbados. It can result in a paradigm 7 shift in industrial and social relations from adversarial approaches and confrontation to one of consensus and cooperation. The essential objectives of wider social dialogue on social and economic issues are to achieve national economic recovery, social progress, industrial stability, competitiveness, new investments, employment creation, decent work, prosperity, and social justice. Jamaica’s Initiatives towards Social Partnership Jamaica, through its Sectoral Agreements, demonstrates commitment to the principle of social partnership pursued in bi-lateral and tripartite encounters. These resulted in Memoranda of Agreements in the bauxite, banana, water, shipping industries, and public services for the pursuit of strategies aimed at fundamental transformation in employment relations and to forge greater consensus at the enterprise level. These agreements are also influencing positively corporate social responsibility, human resource development, productivity, competitiveness, and investments. In February 2004, representatives of the Government of Jamaica and the Jamaica Confederation of Trade Unions entered into a Memorandum of Understanding for the Public Sector in the national interest. The public sector embraces central and local government, and all other Government entities, commissions, companies, corporations, institutions, and statutory bodies. The aim is to address the prevailing high debt in relation to the GDP, fiscal deficit, low economic growth, and low employment creation in a combined effort by the parties to restore national economic growth. The parties recognize the need for improved labour-management relations, and the pursuance of policies and strategies for sustained growth and development of the public sector in particular and the country in general and accordingly agreed on a general policy of: . • . . • • wage restraint in the public sector for the period 1 April 2004 to 31 March 2006; employment constraint with certain exceptions; and expenditure restraint. The memorandum also requires the Government to pursue complementary fiscal and monetary policies to sustain real economic growth over the medium to long term. The parties are further committed to the development of a modern, efficient public sector, adequately staffed, properly equipped, and suitably rewarded. There is therefore good experience and tradition of consultation and dialogue involving Government and key stake holders in Jamaica, and this is a good is a good reference point for musicians here to pursue determined dialogue on matters affecting them. 8 Government as Facilitator Government is a key actor in facilitating decent work through social dialogue. Government: is clothed with legislative power and the only actor that can change the rules by legislation; has the machinery to enforce the rules for the general good of the national community; commands the necessary resources to engage the social partners and civil society, in good faith encounters, in the development of national economic and social policy; can establish a well-resourced secretariat to provide the required research and technical support for an effective dialogue process; and has the ability to create an enabling environment to foster sustained social dialogue and partnership at the national, enterprise, and industry levels in the formal and informal sectors. The Challenge It is for musicians to organise into a strong union for representational purposes under the banner of the national trade union body to promote and protect their interests and rights. This would enable representative engagement with relevant government agencies and Employers in dialogue which can result in mutual agreement on the way forward for decent work – protection of rights, ensuring adequate income, social protection, and opportunities for ongoing dialogue. An accord (protocol) can be negotiated among the key stakeholders and relevant national agencies concerning decent work for musicians and their intellectual property rights. This can be an early goal for a nationally organised, or reorganised or revitalized national trade union of musicians in Jamaica. This requires a determined will and leadership on the part of musicians themselves and national agencies, and the commitment of the key stakeholders for the achievement of social and economic rights balance against corresponding responsibilities and obligations and in the interest national of the community. Ladies and gentlemen best wishes for a bright future for our musicians in Jamaica and this part of our world. Thank you for your kind attention. Samuel J. Goolsarran Labour-Management Consultant 21 January 2008 9