ORGANIZATION OF AMERICAN STATES Inter-American Council for Integral Development (CIDI) XIV INTER-AMERICAN CONFERENCE OF MINISTERS OF LABOR September 26-27, 2005 Mexico City, Mexico OEA/Ser.K/XII.14.1 TRABAJO/INF.10/05 26 September 2005 Original: English PRESENTATION BY THE HON. RAWLE C. EASTMOND, J.P., M.P., MINISTER OF LABOUR AND SOCIAL SECURITY OF BARBADOS PRESENTATION BY THE HON. RAWLE C. EASTMOND, J.P., M.P., MINISTER OF LABOUR AND SOCIAL SECURITY OF BARBADOS The processes of globalization and change have impacted significantly on both developed and developing countries. They have impacted on economies, economic sectors, enterprises, workers and employers, social groups, families and individuals. They have already altered and will continue to significantly alter ways of conducting business. It is indisputable, however, that there is a gaping and expanding divide between developed and developing nations. There is no equality in their contributions to the process, in their respective capacities to absorb the impact of rapid changes in technology and trading practices, or in their ability to adjust to the inevitable changes in ways which are appropriate for either attaining or maintaining sustainable development. The uniform global policies developed and promoted by developed nations do not, and will not, in all the existing circumstances, create a marketplace where all compete on equal terms. They have the unfortunate potential to create greater wealth for the rich and greater impoverishment of the poor. Without an equal and counterbalancing emphasis on a fair globalization, such policies could create and indeed perpetuate a climate in which the small and less developed become casualties of their larger, more developed competitors. A fair globalization would fully embrace the social as well as the economic, as conceived by the World Commission on the Social Dimensions0 of Globalization. This commission, was established by the International Labour Organization (ILO) to address challenges facing our world and, to identify the path towards a world which is safer, fair, ethical, inclusive and prosperous for the majority, both within and between countries. That path, it was agreed, must be based on universally shared values, respect for human rights and individual dignity, and must, of necessity provide opportunities as well as tangible benefits for all. As a micro-state in the world community of states, Barbados recognizes that global developments will not necessarily be sensitive to local concerns. We recognize that the process presents serious and wide ranging challenges and demands new and innovative change. The topic at hand – People and Their Work at the Heart of Economies – State Policies and Globalization – evokes the notion that people are, or should be, at the core of mechanisms that drive countries’ economic activity. More than this, it conjures up the image of a deep connection between people and their work – the idea that work and people complement and add meaning to each other. The topic suggests that a synergistic and mutually beneficial relationship exists between people and work. It challenges the imagination to explore the question and to identify the kinds and combinations of state policies which may be employed in pursuit of that desired synthesis; not for some, but for all people. The character and content of each state’s policies can impact either positively or negatively on its people and their work. States’ policies can also promote and sustain the required synthesis between people and their work. Whether that impact is positive or negative will depend on the state’s interpretation of globalization, by its perceptions regarding the desirability of participating in the process and by the states’ social, political and economic interests. -2- The concept of an all-embracing and over-regulated state has been discredited, but there is no disputing the fact that the state owes a duty to its citizens to facilitate their development. Barbados’ Prime Minister, The Rt. Hon. Owen Arthur at the Dialogue of Caribbean States, rightly asserted that “we cannot leave people-focused development to the serendipity of the market”. In the current economic climate, balanced structural policies which embrace economic and social goals in the pursuit of development are essential for fostering and sustaining growth and development. These polices must be based on a new social contract, which embraces social as well as economic goals, and which utilizes social dialogue as a means towards achieving cohesive and sustained development. The contract must engage all persons in a symbiotic relationship, irrespective of their age, class, ethnicity, economic standing, race or any other characteristics which differentiate individuals and classes. That contract must also ensure that both the formal and informal sectors contribute meaningfully to a dynamic labour market and that a climate is created which facilitates individual empowerment, sustained growth and development. In essence, the contract must be beneficial to employer and employee, and to individual and enterprise. It must contribute to the building of productive, prosperous and peaceful nations, where mutually satisfying goals are pursued, where economies and businesses flourish and where individuals are guaranteed decent work and social justice. Barbados, faced with the challenges of competing in a globalized world while continuing on an upward path of development, is seeking to address its social and economic needs through a blend of traditionally proven and modern ways. We are strengthening our human resource base, through education and training, the application of information technology and youth development. Funding for entrepreneurial and business development and the exploration of niche markets are being utilized. Through labour reform we are also seeking to entrench international labour standards in local law and practice, to develop mechanisms for promoting decent work and to produce and analyse labour market data in order to facilitate long term strategic planning for the labour market. For decades, our human resources policy has focused on education as a tool for development, with compulsory universal education for children aged 5 to 16 and access to government funded tertiary education where persons are qualified for enrollment. Technical and vocational education and training and the application of information technology for teaching, learning and research throughout the school system, are also being employed as engines towards growth and development. Education and labour policies are also being geared towards the practical match of business needs with education and training opportunities. Barbados has established a Youth Entrepreneurship Scheme (YES) as a mechanism for developing entrepreneurship and for sharpening entrepreneurial skills and capabilities. The YES slogan, “From Idea to Enterprise” aptly expresses the programme objective of equipping entrepreneurs and aspiring entrepreneurs with skills for conducting successful businesses. Small businesses are afforded access to soft financing through special programmes devised for the purpose, for example, the Rural Enterprise Fund and Fund Access. We anticipate that evolving from these processes of incubation and support, individuals will be empowered and their businesses will be able to wean themselves into strong vibrant enterprises which are integral to the process of national economic development. Other groups already marginalized by globalization and trade liberalization will require assimilation or re-assimilation into mainstream economic activities. -3- For Barbados and the Caribbean, generations of concessionary trading arrangements resulting from mutual economic interests are being dismantled, disrupting economies and jobs. The casualties include sugar in Barbados and bananas in other eastern Caribbean states. For us, the major economic challenges presented include, the need to balance the liberalization process and the increasing demand by employers for greater flexibility and fewer restrictions in the job market, against the employees’ fundamental rights at work. There is also the need for national development of alternative uses for traditional products as well as unique specialty products with the potential for adding significant value. Other countries will experience comparable difficulties and demands for change which threaten their normal way of life. Job creation and retraining can help to ensure that people and their work are at the heart of economies. Juan Somavia, Director General of the ILO, in his address to the 93 rd session of the International Labour Conference in June 2005, spoke of “the global job crisis”, which he perceived to be a creation of globalization, characterized by major business success and increases in GDP but disproportionately low levels of job creation. His view was that the job crisis requires the commitment of member states to “repair and rebalance priorities” by “moving employment and decent work into the mainstream of the international development debate”. National commitment is undoubtedly integral to international commitment. National commitment, under globalization, is however in danger of being compromised by a market place where there is increasing demand for flexibility with minimal regulation of labour standards, limited social protection, and where purely economic laws of supply and demand operate so that the developed countries drain scarce human resources and skills from the less developed countries. In pursuing development which is sensitive to both the economic and social issues, Barbados is also re-examining its labour law and practice in accordance with established international standards. A new Occupational Safety and Health Act was passed by the Parliament in 2005 and others including Employment Rights Legislation will follow soon. Social dialogue, freedom of association and collective bargaining are alive and well in Barbados and have guaranteed satisfactory wage levels for the majority. Without some state regulation new players in the global market could erode these gains where practice in the state last hosting their businesses eschewed fundamental rights at work. Social Security protection is generous, and includes coverage for sickness, maternity, invalidity, funerals, old age contributory pensions, survivors’ benefits and unemployment, among others. Barbados is also developing a labour market information system and documenting labour market trends. This data may be used by job seekers, employers, trainers and for strategic planning purposes. It is expected that it will also inform the type of training and recruitment required for meeting the market demand for jobs and skills. In essence, therefore, the ILO’s fundamental principles and rights at work underpin the labour administration’s existing and proposed policy framework. They recognize the dignity of the -4- individual worker and his critical role in employment, economic adjustment, growth and development. Barbados also recognizes that globalization is a “fait accompli”, that its forces and processes present various challenges as well as opportunities, and that major adjustments will be necessary for sustained growth and development in the new market place. Wherever the appropriate infrastructure and support systems exist, wherever people and their work are placed at the heart of economies there is social cohesion, and a climate in which individuals, businesses and indeed nations can potentially thrive and grow. We must all accept the challenge and capitalize on the opportunities to excel in a new globalised market place where the social dimension has its rightful place and people and their work are at the heart of economies. I thank you. TB01331E01