Labour administration, labour
inspection and the ILO-current
regulatory perspectives
Giuseppe Casale
Director, LAB/ADMIN
Labour Administration and Inspection Programme
ILO, Geneva
http://www.ilo.org/labadmin
Background
•
Labour administration and labour inspection general item
on the agenda of the 100th ILC (June, 2011).
•
Last discussions in 1973 (Experts’ meeting), 1978
(Adoption of Convention No. 150), 1997 (LA General
Survey) and 2006 (LI General Survey).
•
Recent crisis has highlighted the role of LA, but debt crisis
and austerity measures challenge its future.
•
Substantial differences between regions, sub-regions and
countries.
•
Increased expectations, but funds limited.
ILO concept of labour administration
• LA: all public bodies involved in labour policy.
• ILO and Labour Administration.
• ILO and Labour Inspection.
• Social Partners and Labour Administration.
International Labour Standards
•
Historically, labour inspectorates among the first labour institutions
•
Founding of the ILO (1919), creation of Ministries of Labour
•
Labour Inspection Recommendation, 1923 (No. 20)
•
Labour Inspection Convention, 1947 (No. 81)
•
Labour Inspection (Agriculture) Convention, 1969 (No. 129)
•
Labour Administration Convention, 1978 (No. 150)
•
Protocol of 1995 to the Labour Inspection Convention, 1947
•
Occupational Safety and Health Convention, 1981 (No. 155)
•
Promotional Framework for OSH Convention, 2006 (No. 187)
Relationship between institutions and policies
•
At the international level, institutions often considered
secondary, as if they only reflect policies, yet they also shape
them.
•
One question is how formal policy reforms (changes in
institutional set-up) create: a) deliberate policy changes; and
b) indirect and unintended effects?
•
For example, policy impact of changing mandates of labour
ministries (employment agendas, vocational training, labour
migration…).
•
Effects (and risks) of “agencification”, decentralization and
outsourcing of core services…
•
Delicate balance between policy making and service delivery.
New operating conditions
•
Difficult
economic
environment:
high
and
persistent
unemployment, increased inequality and austerity measures.
•
Key issue of compliance because of diversified labour force as
well as multiplicity of employment relationships, informal
economy.
•
Democratic reforms, spread of market economy and need of
policy coordination: the role of regional groupings and of global
players (ILO, WB, IMF, OECD).
•
More transparency: increased interest in governance.
•
More pragmatic political thinking in some quarters.
•
Recent crisis, an opportunity to create and adapt policies and
institutions.
Main themes of the ILC Report
 Policy making capacity of labour administration and its role
in national development.
 Modernisation of labour administration in the post-crisis
environment.
 Labour Inspection: Trends and Challenges.
Policy making capacity
•
Place of MoL within the Government and within the national
labour administration system.
•
Historically, a specific mandate: protective legislation and
promoter of sound labour relations.
•
More involvement in employment and macro-economic policies
after WWII.
•
Today, what is the impact of MoL on government policies to
make them employment-centred?
•
What is the range of MoL? what are the factors of influence?
•
Revisited mandate: strategic and coordination capability,
institutional capacity, co-operation with E/W organizations.
Policy making capacity (contd.)
•
Mandate: important recent changes and organizational “experiments”.
•
Coordination through policy documents and through coordination organisms,
including economic and social councils and similar bodies.
•
Institutional capacity: budgetary allocations, human resources, material
equipment, and working with data and appropriate internal structures.
•
Even if not directly comparable, there are substantial gaps between regions.
•
Gaps between policy strategies, laws and reality.
•
Focus on better use of existing resources, but critical mass necessary to make
an impact.
•
Co-operation with W/E organizations: asset of MoL. Political links and joint
interests, but also working relationship, provision of data and other services.
•
Right balance between protection and developmental role.
The performance of labour administration
•
Paradox of increasing expectations and budgetary
constraints: do better with existing resources. Large scope
for improving governance.
•
Two approaches to better performance: traditional methods
based on better control and on the promotion of traditional
public sector values or the use of private sector methods.
•
New Public Management (NPM) since the 1990s: incentives
to managers to make decisions and allocate resources to
produce better outcomes.
•
Management by objectives (MBO): establishing long-term
objectives and more concrete outputs (goods and services)
and outcomes (impacts).
The performance of labour administration
(contd.)
•
Performance contracts as a link between achievements of
organizations, its units and individuals (contractualism).
Importance of qualitative indicators.
•
Evaluation of policies: objective and systematic assessment
is needed.
•
Performance related pay compared to centrally established
and incremental salary scales with promotion as the main
incentive. Mixed results: increased motivation, but also
undermined morale, jealousies and reduced cooperation.
•
Preconditions in terms of a mature, trust-based service
culture are necessary.
The performance of labour administration
(contd.)
•
Public-public partnership necessary taking into account the multidisciplinary character of labour policy and the involvement of various
public bodies.
•
For examples: job-creation programmes; sharing data-bases;
cooperation of various inspection bodies and the regulation of labour
migration.
•
Public-private partnership in various fields of social services, job
brokering, vocational training, research...
•
Requirements in terms of monitoring, evaluation, guarantee of individual
rights, etc.
•
Appropriate managerial structures/methods in labour administration. The
issue of managerial support services.
•
Human resources management: effects of fair salaries, training, proper
career planning and staff stability. The issue of political and administrative
appointments.
The performance of labour administration
(contd.)
•
Use of new technologies:

Widespread of computers and of internet: potential to improve the efficiency
and effectiveness of labour administration (e.g. raising awareness,
dissemination of information, transparent and consultative policy making).

Adoption of new technologies remains extremely uneven between countries.

Challenges for developing countries: inadequate financial resources,
underdeveloped ICT infrastructure, lack of expertise and literacy levels. Basic
administrative reforms may be more efficient than ambitious investments in ICT.

Large and effective uses of simple tools adapted to country’s technological
development (e.g. mobile phones).
The performance of labour administration
(contd.)
•
A case study: modernization of PES.
•
PES given a pre-eminent role, not only in delivery of services, but also in
developing and testing employment programmes. Consequently, under
pressure to make their services more efficient.
•
Institutional changes to achieve better coherence between active and
passive labour policies. Integration of placement services and
unemployment benefit administration.
•
Better use of new technologies (internet, on-line service and data
management).
•
Customer service orientation.
•
Sophisticated indicators in performance measurement.
•
Delivery of services outsourced in some countries (Australia,
Netherlands, UK): mixed results. What is the impact on employment
policies?
Labour Inspection: Trends and Challenges
•
LI – essential part of the labour administration system
exercising the fundamental function of law compliance.
•
Fundamentally, a public responsibility; the risk that private
initiatives (e.g. CSR) could undermine the role of national
inspectorates.
•
Significant role of social partners: advocacy, awareness
raising and strategic planning.
•
Collaboration with other stakeholders (police, social security
services, tax agencies, etc.) can improve its effectiveness.
Labour Inspection: Trends and Challenges
(contd.)
•
Traditional and new challenges.
•
Poor conditions in most developing countries threatening
integrity and independence of the staff.
•
Informal economy, domestic work, undeclared work (e.g.
construction, agriculture).
•
Regulation and prevention of child labour.
•
Discrimination issues: gender, HIV/AIDS, race, national
extraction, etc.
Labour Inspection: Trends and Challenges
(contd.)
•
Necessity to adapt to the changing world of work.
•
New inspection skills and strategies for prevention needed
(complexity of industrial processes, new illnesses, mental
stress, outsourcing, complex supply chains).
•
Improved data collection, use of special inspectors,
involvement of social partners and media.
•
Cost cutting efforts of enterprises during the crisis:
inspection’s focus on wage payments and working time
arrangements.
•
Fight against undeclared work: inspection in specific
sectors,
strengthening
of
sanctions,
promotional
campaigns.
Labour Inspection: Trends and Challenges
(contd.)
•
Improving administrative and legal means of action.
•
Planning programming and reporting. Standardized
administrative reports necessary. Management training of
inspectors.
•
Involvement of social partners at the national level to
encourage more targeted action (OSH issues).
•
Sanctions and remedies to fit a country’s regulatory and
economic conditions.
•
Timely judicial proceedings and due process.
•
However, deterrence measures alone are not enough: a
good mix of prevention and sanction to be employed,
including self-assessments and monitoring measures.