ÿWPCq- Îsé)àœ M¹’|î–DžDèícå# ­k<…^Y`$þ„¸?ב‚Ìrz¨Ì‰¸n1Пû Ûv®n¶bc­Úb]”Ùz:·8¶Ê}rýÖòœögýOE¼•¨àÚe‡ËfÊç¿ã¸ÆÁ‹®<8L¹r{Ùiá"ó¿Hn0Q¼öˆ¹î|E*ÌŸúä¿¢oˆúš’ÇŨ̲•oÆÝŸÑïÓ²9ÙÂp³ŠÛÞÔ'¼{ü{âÔéÍ‘Q«prO\L"^6tæì`1j¨×š .v.¡‹l÷’_Ù¨Ç3ÝWx§w¼÷°<ˆvnAü™ô¢±±ãxÍÄÓ˜[G:$¡G×p‘zœ=7lLޱNƒG‡yÃ,èä¿Tã’Õ)^)^ñ&+iL¬… y·žÄÅ´S•þy:VIeDª.ög¹=OCy›*W ¼÷ÅÀ¨ôá‡x¾ê7Ò HøC2çÜqÀn£(f†’\æ!­®øu´‰Ü”sˆ NÁX!òãUÝ);¡«Fú“Û!ÖAö¿›b4 Y“³°QF ˜K4ÝÝám¨&܈’Hä¾VûJj?À¸È²Ñ¹`–·bç+fĤ4Au‘‚:Á1hãþeDîÉr~Æí©iŸøÁ¢©6UDô %8 0@>UJ~ È Î hÔw@Ú4. h===U:CC} ………… ‹‹‹‹‹‹‹‹# ‘ 0)œœ B•ÅÅÅ D3ââââââââââââââââââââââââââââU .U.HC 0‹‹‹‹‹ 0[§ 0[ 0[]]]]]]]]]]]]e ¸!¸!¸!¸!EÂ!Â! 0¿Ä!Ä!Ä!Ä!Ä!U<ƒ#ƒ#ƒ#ƒ#ƒ#ƒ#ƒ#ƒ#ƒ#ƒ#ƒ#ƒ#ƒ#ƒ#ƒ#ƒ#ƒ#ƒ#ƒ#ƒ#ƒ#ƒ#ƒ#ƒ#ƒ#ƒ# 0š¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿#¿# 0 oY%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y%Y% 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Úà€CCC%"àòòÔ.RƒTBH:\WPWIN\WP6WE\DEPTS\04012-1C.E98RÔH:\WPWIN\WP6WE\DEPTS\04012-1C.E98Ô/  Ô/v.3óóTABLE ATABLE BÝ ƒ‡!ÝÔUKUS.,ÔÑTRW\Ï6Á&A4 (Portrait)3Ø'Ð6Â&A4ÿ3Ø'TÑÒ°ÒÒ°ÒÑô°ÑÑ•°ÑÓ  ÓÔ€_Xt¦XXXÔÔ€_%“<%X_Xt¦ÔÑ  ÑÓ$vvïƒz°œX$ÓÝ  Ý›ññØ1ØññññØ3ØœññññññÔ% € Ôññññ›Ö€/ÿÿ֜ր0ÿÿÖññ›ññÖ€1ÿÿÖ›Ý ƒy¤ÎÿÝÒvÒÒÒÓ0vvïÒi ‚zvvïƒz0ÓÑ  ÑÑ€ ÈÈ` ÑÑ/ÈÑÑ/ÈÑÙvÒÙÑ ØXÑÓ 33ÓÔ€_&=&%_%“<ÔÔ€ô&=&&_&=ÔÓÓÓ  ÓÝ  ÝÝ‚Zü;ÿÝÓ  ÓÔ  ÔÑ  ÑÒvÒÒÒÔ€&O&&ô&=ÔÔ€„t„&&OÔÓfæÓÓ 33ÓÔ  Ôò òÝ  ÝññÔ% € Ôññ4.à v àSecuring€the€futureÝ‚Zü;ÿts.ÌÝó óÔ ÁÔÔìì£ÔÐ ì ÐÓ  ÓÑ  ÑÒvÒÒÒÔ€ô„ „„„tÔÔ€ô„ „„ô„ ÔÔ€ô„ „„ô„ ÔÔ€ô„ „„ô„ ÔÔ€ô&=&„ô„ ÔÔ€ô&=&&ô&=ÔÓfæÓÓ 33ÓÝ  Ýà ï àThis€chapter€looks€beyond€the€current€preoccupation€with€social€costs€and€policies€to€containÐ Ò/ Ðthem€and€seeks€to€discuss€some€broad€lessons€for€future€policy€that€have€been€raised€by€the€crisis.ÏThe€focus€will€be€on€the€need€to€strengthen€policies€and€institutions€over€the€medium€term€inÏorder€to€reduce€the€risk€of€similar€crises€in€the€future€and€to€improve€the€currently€rather€limitedÏcapacity€to€cope€with€problems€of€unemployment€and€poverty.ÌÌÝ‚žJ”ÿÝÔ  ÔÓ  ÓÔ€&O&&ô&=ÔÔ€»ˆo »&&OÔÓfæÓÓ 33Óò òÔ  ÔÝ  Ý4.1.€€Economic€and€political€reformÝ‚žJ”ÿiƒÝÔ õÔó óÔŽÒ /D ¡ÔÐ Ò / ÐÓ  ÓÔ€ô»h » »»ˆoÔÔ€ô&=& »ô»hÔÓfæÓÓ 33ÓÝ  Ýà ï àAn€obvious€priority€is€to€press€ahead€with€the€structural€reforms€that€have€been€initiated€inÐ Ì )  Ðthe€wake€of€the€crisis.€Of€key€importance€is€the€strengthening€of€the€financial€system€which€hadÏproved€to€be€the€Achilles€heel€of€the€pre„crisis€economic€system.€A€sound€and€resilient€financialÏsystem€is€an€essential€buffer€against€the€continuing€danger€of€economic€crisis€in€a€world€ofÏincreasingly€integrated€financial€markets.€It€is€also€indispensable€for€ensuring€a€return€to€high€andÏstable€growth€in€the€post„crisis€period.€Similar€observations€apply€to€weaknesses€in€corporateÏgovernance€that€have€been€exposed€by€the€crisis.Ìà ï àIn€large€part,€achieving€this€will€involve€technical€measures€to€correct€deficiencies€such€asÏpoor€and€opaque€accounting,€lax€prudential€supervision€of€banks€and€the€absence€of€effectiveÏbankruptcy€laws.€But€wider€new€issues€relating€to€the€regulation€of€markets€in€the€context€ofÏincreasing€integration€into€the€global€economy€will€also€have€to€be€faced.€These€relate€inÏparticular€to€the€need€to€find€effective€instruments€to€control€the€degree€of€exposure€to€foreignÏdebt€by€private€economic€agents,€to€set€prudent€limits€to€debt/equity€ratios€in€the€corporate€sectorÏand€to€discourage€speculative€and€unproductive€investment.Ìà ï àThese€technical€measures€of€institutional€strengthening€and€regulation€are€absolutely€essentialÏbut€by€no€means€sufficient.€It€was€not€only€weaknesses€in€formal€institutions€that€created€theÏpreconditions€for€the€crisis,€but€also€the€contamination€of€market€processes€by€politics.€UnlessÏthe€latter€is€contained€no€amount€of€tinkering€with€institutions€and€regulatory€mechanisms€willÏbe€to€much€avail.Ìà ï àThe€strengthening€of€democratic€institutions€is€thus€central€to€the€post„crisis€economic€modelÏthat€is€required.€Free€and€fair€electoral€processes,€freedom€of€expression€and€public€debate,€theÏrule€of€law,€and€accountability€of€elected€officials€are€among€the€attributes€of€democracy€that€areÏessential€for€preventing€the€harmful€distortion€of€market€processes€by€arbitrary€governmentÏintervention€and€corruption.€As€the€recent€crisis€has€shown,€the€latter€has€not€only€high€economicÏcosts€but€also€social€ones.€Thus,€the€intrinsic€value€of€democracy€is€strongly€reinforced€byÏeconomic€and€social€considerations.Ìà ï àDemocracy€is€also€essential€for€ensuring€greater€social€equity€in€the€development€process.ÏAs€has€been€commented€upon€earlier,€there€had€been€a€relative€neglect€of€labour€rights€and€socialÏprotection€in€the€pre„crisis€period€of€high€growth.€The€negative€consequences€of€this€have€beenÏdramatically€revealed€by€the€extreme€social€pain€that€has€had€to€be€suffered€since€the€onset€of€theÏcrisis.€A€key€element€for€correcting€this€deficiency€is€the€widest€involvement€possible€of€thoseÏconcerned,€through€their€representative€organizations,€in€the€definition€and€implementation€of€theÏmeasures€to€overcome€the€crisis€and€to€minimize€its€social€effects.€This€will€ensure€constantÏdemocratic€pressure€to€improve€working€conditions€and€levels€of€social€protection.€This€will€alsoÏbe€invaluable€in€ensuring€smooth€adjustment€to€structural€change,€in€coping€with€economic€andÏsocial€crises,€and€in€raising€productivity€and€competitiveness.€As€will€be€argued€in€the€section€onÏthe€strengthening€of€institutions€for€industrial€relations€below,€this€will€require€the€fostering€ofÏa€strong€and€free€labour€movement,€and€the€building€up€of€a€solid€system€of€industrial€relations.Ìà ï àThe€chapter€therefore€begins€with€a€section€on€international€labour€standards€and€tripartismÏthat€reviews€the€position€in€relation€to€certain€specific€basic€rights€issues€and€also€discusses€futureÏaction.Ð ³0,0 ЇÝ‚žJ”ÿÝÔ  ÔÓ  ÓÔ€&O&&ô&=ÔÔ€»ˆo »&&OÔÓfæÓÓ 33Óò òÔ  ÔÝ  Ý4.2.€€International€labour€standards€and€tripartismÝ‚žJ”ÿ°ƒÝÔ <Ôó óÔŽ1Ž£ÔÐ 1Ž ÐÓ  ÓÔ€ô»h » »»ˆoÔÔ€ô&=& »ô»hÔÓfæÓÓ 33ÓÝ  Ýà ï àIt€is€important€to€note€at€the€outset€that€two€of€the€comparative€advantages€of€examining€theÐ +ˆ Ðcurrent€crisis€in€an€ILO€framework€are€this€Organizationððs€normative€means€of€action€and€theÏway€in€which€it€encompasses€the€employer€and€worker€sides€as€well€as€the€government.ÏInternational€labour€standards€and€the€procedures€attached€to€them€provide€an€analytical€tool,Ïwith€agreed€goals€and€guidance€as€to€how€to€achieve€them,€and€an€objective€evaluationÏmechanism.€The€tripartite€approach€ensures€that€in€both€the€standard„setting€and€supervisoryÏwork€and€the€practical€technical€cooperation€and€other€measures€taken€to€facilitate€implementationÏof€the€Organizationððs€principles€and€standards€there€can€be€on€the€one€hand€a€sense€of€realismÏand€on€the€other€a€spirit€of€harmony€rather€than€conflict.ÌÌÝ‚é{ÿÝÔ€ôŠ,– Š&ô&=ÔÔ€@Š@ Š ŠôŠ,–ÔÓ  ÓÓfæÓÓ 33ÓÔ  ÔÝ  Ý4.2.1.à i àTripartism€and€ratificationsÝ‚é{ÿœƒÝÔ ÔÔ^cÀ b ÔÐ cÀ  ÐÔ€@&O& Š@Š@ÔÔ€ô&=&&@&OÔÓ  ÓÓfæÓÓ 33ÓÝ  Ýà ï àMore€could€surely€be€done€to€establish€tripartite€structures€to€promote€social€partnership,Ð L©  Ðthe€development€of€social€safety€nets€and€the€advancement€of€basic€rights.€Hong€Kong,€China,Ïremains€a€notable€exception,€the€Government€œof€China€having›€notified€the€ILO€that€it€wouldÏcontinue€to€apply€to€the€Special€Administrative€Region€the€Conventions€declared€applicableÏpreviously€by€the€United€Kingdom.ÌÌÝ‚é{ÿÝÔ€ôŠ,– Š&ô&=ÔÔ€@Š@ Š ŠôŠ,–ÔÓ  ÓÓfæÓÓ 33ÓÔ  ÔÝ  Ý4.2.2.à i àThe€basic€rights€ConventionsÝ‚é{ÿà &ÝÔ ^!ÔÔ^y¾ÔÐ y ÐÔ€@&O& Š@Š@ÔÔ€ô&=&&@&OÔÓ  ÓÓfæÓÓ 33ÓÝ  Ýà ï àRatifications€of€the€seven€fundamental€ILO€Conventions€are€shown€in€table€4.1.€ConventionÐ b ÐNo.€87€is€in€force€for€Hong€Kong,€China,€with€modifications€and€has€been€ratified€by€theÏPhilippines.€Its€requirements€as€to€free€organizations€of€workers€and€employers€have€presentedÏproblems€for€many€countries€in€the€region.€On€the€other€hand,€Convention€No.€98,€whichÏpromotes€collective€bargaining,€is€perfectly€compatible€with€a€system€which€is€based€more€onÏenterprise€bargaining€than€industry„€or€nation„wide€bargaining,€although€it€also€contains€importantÏprotections€of€the€right€to€organize€and€against€anti„union€discrimination.€The€tendency€towardsÏenterprise„level€bargaining€perhaps€contributes€to€the€difficulties€in€instituting€tripartiteÏnegotiations€at€the€national€level€to€overcome€the€effects€of€the€crisis€in€some€countries€whereÏthere€is€weakness€of€organization€on€both€the€workersðð€and€the€employersðð€sides€and€anÏunderdeveloped€culture€of€collective€bargaining.€This€has€been€the€case€especially€in€Thailand,Ïwhere€the€fragmented€trade€union€scene€(and€the€weak€employersðð€organizations)€necessitated€aÏspecial€effort€from€the€œILO,›€which€prepared€and€conducted€an€ad€hoc€tripartite€meeting€of€theÏsocial€partners€in€the€country,€who€for€the€first€time€ever€met€in€the€same€room€in€NovemberÏ1997.€The€Tripartite€Consultation€(International€Labour€Standards)€Convention,€1976€(No.€œ144),›Ïis€in€force€for€three€countries:€together€with€its€accompanying€Recommendation€(No.€152),€itÏcalls€for€consultation€on€a€wide€range€of€ILO„related€issues,€which€ð"ð€depending€on€theÏConventions€ratified€ð"ð€may€provide€a€useful€forum€for€examining€various€aspects€of€social€andÏeconomic€crisis;€however,€there€is€little€evidence€at€this€point€of€the€use€of€the€tripartiteÏmachinery€in€this€context.Ìà ï àThe€issue€of€women€workersðð€rights€is€receiving€increasing€attention,€as€evidenced€by€twoÏratifications€of€the€Equal€Remuneration€Convention€(No.€100)€late€last€year.€This€brings€theÏnumber€of€ratifications€among€the€seven€participating€œcountries€and€areas›€to€four.€WiderÏdiscrimination€issues€have€received€less€attention,€though,€and€the€Discrimination€ConventionÏ(No.€111)€has€been€ratified€œonly€by›€the€Philippines;€and€Malaysia€was€the€first€among€theseÏcountries€œaññnd€areas€ññto›€ratify€the€Minimum€Age€Convention€(No.€138)€in€1997.Ìâ âÐ -Ü(- ÐÔ& / Ôâ âÝ‚ŽÊÿÝÔ€?&O&&ô&=ÔÔ€?ôõsô&?&OÔÓÓÓfæÓÓ  Óò òÝ  ÝTable€4.1.€€Ratifications€of€fundamental€ILO€ConventionsÐ £ Ðà ï àà Ò àÔ   //Ôas€on€28€February€1998€(by€selected€countries€andÌà ï àà Ò àÔ   //Ôadministrative€zones€in€the€Asia€and€Pacific€region)Ý‚ÿ,ÏremÝÔ/~ÛO¬Ôó óÔ€ôôý›ôô?ôõsÔÔ€ô&=&ôôôý›ÔÓÓÓfæÓÐ ~Û ÐÓ  ÓÝ  ÝÝ‚AÔÌÿÝÔ€ôÂÂ&ô&=ÔÔ€?ÂÿÂÂôÂÔÓÓÓfæÓÓ 33ÓÝ  ÝNo.€29:à Ò àForced€Labour€Convention,€1930Ð mÊ ÐNo.€105:à i àAbolition€of€Forced€Labour€Convention,€1957€Ð k ÐNo.€87:à Ò àFreedom€of€Association€and€Protection€of€the€Right€to€Organise€Convention,€1948€Ð ¯  ÐNo.€98:à Ò àRight€to€Organise€and€Collective€Bargaining€Convention,€1949Ð P ­ ÐNo.€100:à i àEqual€Remuneration€Convention,€1951Ð ñ N ÐNo.€111:à i àDiscrimination€(Employment€and€Occupation)€Convention,€1958Ð ’ ï ÐNo.€138:à i àMinimum€Age€Convention,€1973Ð 3   ÐÌÔ*wƒ. 3ddd Xdd Xdd Xv%"v%"wÔÔ,|^^ ÔÔ,À^^ ÔÔ,À^^ ÔÔ,À^^ ÔÔ,À^^ ÔÔ,À^^ ÔÔ,À^^ ÔÔ,³^^ ÔÔ+  ÔÐ ,€  u Ò  ‚G‚ƒƒ„„,ÐÐ 9€ *¼    „„9ÐC.29Ð 9€ *¼  "  „„9ÐC.105Ð 9€ *¼ "  „„9ÐC.87Ð 9€ *¼ "  „„9ÐC.98Ð 9€ *¼ "  „„9ÐC.100Ð 9€ *¼ "  „„9ÐC.111Ð =€ *¼ "  „„=ÐC.138Ð >€ /%¼ " G   ‚G‚ƒƒ>ÐHong€Kong,€Chinaà ] à(4)Ð 0€ !»    „„0ÐXÐ 9€ *»  "  „„9ÐXÐ 9€ *»  "  „„9ÐXÐ 9€ *»  "  „„9ÐXÐ 9€ *»  "  „„9ÐÐ 9€ *»  "  „„9ÐÐ =€ *»  "  „„=ÐÐ >€ /%»  " G   ‚G‚ƒƒ>ÐIndonesiaà ã àà ] à(3)Ð 0€ !Î+   „„0ÐXÐ 9€ *Î+ "  „„9ÐÐ 9€ *Î+ "  „„9ÐÐ 9€ *Î+ "  „„9ÐXÐ 9€ *Î+ "  „„9ÐXÐ 9€ *Î+ !"  „„9ÐÐ =€ *Î+ ""  „„=ÐÐ >€ /%Î+ #" G   ‚G‚ƒƒ>ÐKorea,€Republic€ofà ] à(1)Ð 0€ !á> $  „„0ÐÐ 9€ *á> %"  „„9ÐÐ 9€ *á> &"  „„9ÐÐ 9€ *á> '"  „„9ÐÐ 9€ *á> ("  „„9ÐXÐ 9€ *á> )"  „„9ÐÐ =€ *á> *"  „„=ÐÐ >€ /%á> +" G   ‚G‚ƒƒ>ÐMalaysiaà i àà ã àà ] à(4)Ð 0€ !ôQ ,  „„0ÐXÐ 9€ *ôQ -"  „„9ÐððÐ 9€ *ôQ ."  „„9ÐÐ 9€ *ôQ /"  „„9ÐXÐ 9€ *ôQ 0"  „„9ÐXÐ 9€ *ôQ 1"  „„9ÐÐ =€ *ôQ 2"  „„=ÐXÐ >€ /%ôQ 3" G   ‚G‚ƒƒ>ÐPhilippinesà ã àà ] à(5)Ð 0€ !d 4  „„0ÐÐ 9€ *d 5"  „„9ÐXÐ 9€ *d 6"  „„9ÐXÐ 9€ *d 7"  „„9ÐXÐ 9€ *d 8"  „„9ÐXÐ 9€ *d 9"  „„9ÐXÐ =€ *d :"  „„=ÐÐ >€ /%d ;" G   ‚G‚ƒƒ>ÐSingaporeà ã àà ] à(2)Ð 0€ !w<  „„0ÐXÐ 9€ *w="  „„9ÐððÐ 9€ *w>"  „„9ÐÐ 9€ *w?"  „„9ÐXÐ 9€ *w@"  „„9ÐÐ 9€ *wA"  „„9ÐÐ =€ *wB"  „„=ÐÐ >€ /%wC" G   ‚G‚ƒƒ>ÐThailandà i àà ã àà ] à(2)Ð 0€ !-ŠD  „„0ÐXÐ 9€ *-ŠE"  „„9ÐXÐ 9€ *-ŠF"  „„9ÐÐ 9€ *-ŠG"  „„9ÐÐ 9€ *-ŠH"  „„9ÐÐ 9€ *-ŠI"  „„9ÐÐ =€ *-ŠJ"  „„=ÐÐ O€ <%-ŠK" G   ‚G‚ƒƒ„„……OÐðð€=€Has€denounced€this€Convention.Ð8.,@L G    8ÐÝ‚AÔÌÿd.] ÝÔ€?&O&Â?ÂÿÔÔ€ô&=&&?&OÔÓÓÓfæÓÓ 33ÓÝ  ÝÔ'/£ÿ+ÔÌÝ‚é{ÿÝÔ€ôŠ,– Š&ô&=ÔÔ€@Š@ Š ŠôŠ,–ÔÓ  ÓÓfæÓÓ 33ÓÔ  ÔÝ  Ý4.2.3.à i àEmployment€policyÝ‚é{ÿˆC ÝÔ DÔÔ^[¸ýZÔÐ [¸M ÐÔ€@&O& Š@Š@ÔÔ€ô&=&&@&OÔÓ  ÓÓfæÓÓ 33ÓÝ  Ýà ï àAmong€the€ILOððs€priority€Conventions,€the€Employment€Policy€Convention€(No.€122)€isÐ D¡N Ðbinding€on€four€countries.€In€two€of€these,€the€Committee€of€Experts€has€in€recent€years€notedÏthe€high€levels€of€employment.€Given€the€continuing€importance€attached€to€the€goal€of€full,Ïproductive€and€freely„chosen€employment€at€the€regional€as€well€as€the€universal€level,€and€theÏaccumulated€positive€experience€derived€from€pursuing€it€in€terms€of€the€ILOððs€various€standardsÏand€programmes€in€this€sphere,€it€may€well€be€that€Convention€No.€122€provides€a€validÏframework€for€underpinning€certain€conceptual,€institutional€and€practical€aspects€of€employmentÏpolicies€in€the€time€of€crisis.ÌÌÝ‚é{ÿÝÔ€ôŠ,– Š&ô&=ÔÔ€@Š@ Š ŠôŠ,–ÔÓ  ÓÓfæÓÓ 33ÓÔ  ÔÝ  Ý4.2.4.à i àFreedom€of€associationÝ‚é{ÿÝG „ÝÔ [HÔÔ^¢ ÿD ¡ÔÐ ¢ ÿW ÐÔ€@&O& Š@Š@ÔÔ€ô&=&&@&OÔÓ  ÓÓfæÓÓ 33ÓÝ  Ýà ï àThis€aspect€of€the€ILOððs€principles€and€standards€is€so€fundamental€to€the€functioning€ofÐ ‹!èX Ðtripartism€and€the€whole€process€of€fixing€decent€labour€standards€ð"ð€especially€through€collectiveÏbargaining€ð"ð€that€it€deserves€special€consideration.€The€Organization€and€the€supervisoryÏprocedures€have€always€given€close€attention€to€the€problems€arising€and€often€met€withÏremarkable€success.€For€example,€the€ILO€Governing€Bodyððs€tripartite€Committee€on€FreedomÏof€Association€has€recently€examined€cases€in€Indonesia,€the€Republic€of€Korea€and€Thailand.Ìà ï àIndonesia€has€not€ratified€the€Freedom€of€Association€and€Protection€of€the€Right€toÏOrganise€Convention€(No.€87),€but€has€ratified€the€Right€to€Organise€and€Collective€BargainingÏConvention€(No.€98).€Two€cases€have€recently€been€submitted€to€the€Committee€on€Freedom€ofÏAssociation€alleging€violations€of€trade€union€rights€in€Indonesia,€one€of€which€is€still€pending.ÏAt€its€meeting€in€November€1997,€the€Committee€adopted€interim€conclusions€in€the€pending€caseÏand€expressed€its€deep€concern€that€no€action€had€been€taken€by€the€Government€to€remedy€theÏsituation€of€workers€in€Indonesia.€It€requested€the€Government€to€eliminate€the€requirements€forÏunion€registration€which€effectively€impede€the€right€to€organize;€grant€registration€to€theÏIndonesia€Prosperity€Trade€Union€(œSerikat€Buruh€Sejahtera€Indonesia€ð"ð€SBSI)€so€as€to€enableÏit€to€exercise€legitimate€trade€union€activities;€to€drop€the€criminal€charges€against€Mr.€Pakpahan,ÏChairman€of€SBSI,€and€ensure€his€release€and€his€ability€to€exercise€freely€his€trade€unionÏactivities;€to€institute€an€independent€judicial€inquiry€into€the€homicide€of€a€trade€unionist;€andÐ 00+i Ðto€investigate€the€dismissal€of€trade€unionists€and€ensure€their€reinstatement€if€it€appears€that€theyÏwere€dismissed€for€trade€union€activities.Ìà ï àIn€its€most€recent€observation€concerning€the€application€of€Convention€No.€98€byÏIndonesia,€the€Committee€of€Experts€on€the€Application€of€Conventions€and€RecommendationsÏhas€recalled€the€need€to€strengthen€the€protection€of€workers€in€respect€of€anti„unionÏdiscrimination;€to€adopt€specific€legislative€provisions€to€protect€workersðð€organizations€from€actsÏof€interference€by€the€employer;€and€to€eliminate€restrictions€imposed€on€the€right€to€bargainÏcollectively€in€the€public€and€private€sectors.€The€Committee€has€reminded€the€Government€onÏseveral€occasions€that€ILO€technical€assistance€is€available€in€order€to€help€bring€legislation€andÏpractice€into€conformity€with€the€Convention.€The€application€of€Convention€No.€98€in€IndonesiaÏhas€been€discussed€on€numerous€occasions€in€the€International€Labour€Conferenceððs€tripartiteÏCommittee€on€the€Application€of€Standards.€In€1997,€the€Conference€Committee,€noting€withÏconcern€the€serious€discrepancies€between€national€legislation€and€practice€and€the€Convention,Ïobserved€that€the€Government€had€not€given€sufficient€proof€of€willingness€to€comply€with€theÏprovisions€of€this€core€Convention,€as€it€had€not€requested€technical€assistance€in€this€regard.€ItÏurged€the€Government€to€ensure€full€respect€of€the€civil€liberties€essential€for€full€implementationÏof€the€Convention.Ìà ï àThe€Republic€of€Korea€has€not€ratified€either€Convention€No.€87€or€Convention€No.€98.ÏThree€cases€have€been€submitted€to€the€Committee€on€Freedom€of€Association€alleging€violationsÏof€trade€union€rights€in€this€country€since€1992.€Following€an€unprecedented€ILO€high„levelÏtripartite€mission€in€February€1998,€the€Committee€reached€interim€conclusions€in€the€remainingÏcase€at€its€meeting€in€March€1998.€In€particular,€the€Committee€noted€with€interest€that€a€nationalÏTripartite€Commission€had€been€established€and€had€already€reached€an€agreement€to€a€series€ofÏreforms€dealing€with€economic€and€labour„related€issues,€including€those€pertaining€to€freedomÏof€association,€which€is€to€be€submitted€to€the€National€Assembly.€The€Committee€also€madeÏrecommendations€to€the€Government:€to€ensure€the€right€to€organize€for€teachers;€to€register€theÏKorean€Teachersðð€and€Educational€Workersðð€Union€(CHUNKYOJO);€to€extend€the€right€ofÏassociation€to€all€public€servants€and€to€take€steps€to€recognize€their€right€to€establish€trade€unionÏorganizations;€to€speed€up€the€process€of€legalizing€trade€union€pluralism€at€the€enterprise€level;Ïto€repeal€the€requirement€of€identifying€third€parties€in€collective€bargaining€and€industrialÏdisputes€to€the€Ministry€of€Labour€and€the€penalty€for€intervention€of€non„identified€persons;€toÏamend€the€list€of€essential€services;€and€to€take€appropriate€steps€so€that€the€KoreanÏConfederation€of€Trade€Unions€(KCTU)€is€registered.€€Welcoming€the€understanding€that€the€newÏPresident€of€Korea€was€seriously€considering€an€amnesty€for€detained€trade€unionists,€theÏCommittee€also€urged€the€Government€to€drop€the€remaining€charges€against€Mr.€Kwon€Young„¼Kil,€former€President€of€the€KCTU.€Finally,€the€Committee€noted€with€interest€the€prospects€forÏratification€of€Conventions€Nos.€87€and€98€expressed€by€the€President„Electððs€transition€team€andÏrecalled€to€the€Government€the€availability€of€ILO€technical€assistance€in€this€respect.€A€nationalÏseminar€on€human€rights€Conventions€is€to€be€held€in€the€Republic€of€Korea€at€the€end€of€AprilÏ1998.€Ìà ï àThailand€has€not€ratified€either€Convention€No.€87€or€Convention€No.€98.€One€case€hasÏbeen€submitted€to€the€Committee€on€Freedom€of€Association€alleging€violations€of€trade€unionÏrights€in€Thailand.€This€case€concerns€the€adoption€in€1991€of€the€State€Enterprise€LabourÏRelations€Act.€The€Government€has€indicated€for€a€number€of€years€now€that€efforts€to€replaceÏthe€present€Act€with€a€new€Bill€have€been€delayed€as€a€result€of€the€frequent€dissolution€of€theÏHouse€of€Representatives€or€the€Senate.€In€1997,€the€Government€indicated€that€the€Bill€wasÏawaiting€its€second€and€final€reading€in€the€Senate.€The€most€recent€version€of€the€Bill€broughtÏto€the€attention€of€the€Committee€on€Freedom€of€Association€however€still€contained€numerousÏprovisions€which€were€not€in€conformity€with€the€principles€of€freedom€of€association.€TheÏCommittee€therefore€expressed€its€trust€that€a€new€State€Enterprise€Bill€would€be€adopted€in€theÏnear€future€and€that€it€would€be€in€full€conformity€with€the€principles€of€freedom€of€association.ÌÐ ½0,3 ÐÝ‚é{ÿÝÔ€ôŠ,– Š&ô&=ÔÔ€@Š@ Š ŠôŠ,–ÔÓ  ÓÓfæÓÓ 33ÓÔ  ÔÝ  Ý4.2.5.à i àFuture€actionÝ‚é{ÿbonfeÝÔ  cÔÔ^^£ÔÐ ^ ÐÔ€@&O& Š@Š@ÔÔ€ô&=&&@&OÔÓ  ÓÓfæÓÓ 33ÓÝ  Ýà ï àIn€most€countries€affected€by€the€crisis€in€the€region,€it€has€become€obvious€that€theÐ êG Ðweakness€of€their€fundamental€rights€has€prevented€workers€from€fully€playing€their€role€inÏmastering€the€crisis€within€a€tripartite€framework.€The€lack€of€strong€trade€unions€which€canÏforcefully€defend€the€workersðð€interests€and€act€as€authoritative,€reliable€negotiating€partners€hasÏbeen€strongly€felt.€There€may€also€be€a€problem€of€representativeness€for€some€employersððÏorganizations€and€room€for€them€to€strengthen€their€social€strategy.€Thus,€the€Director„GeneralððsÏcampaign€for€the€promotion€of€the€fundamental€ILO€Conventions€ð"ð€especially€Conventions€Nos.Ï87€and€98€ð"ð€and€their€implementation€in€law€and€practice€can€only€contribute€to€overcoming€theÏpresent€difficult€situation.€However,€their€immediate€and€detailed€application€presents€difficultiesÏfor€some€countries.€Ratification€of€all€seven€of€the€ILOððs€fundamental€Conventions€concerningÏforced€labour,€child€labour,€discrimination€and€freedom€of€association€would€clearly€constituteÏa€positive€step:€as€the€ILO€has€always€maintained,€these€instruments€provide€a€minimum€basisÏfor€guaranteeing€the€social€justice€written€into€the€Constitution.Ìà ï àThe€same€must€apply€to€the€more€technical€Conventions€which€ññreññpresent€bulwarks€for€theÏdefence€of€workersðð€rights€in€individual€spheres€of€their€work,€ranging€from€occupational€safetyÏand€health€to€social€security.€While€member€countries€are€already€benefiting€from€ILO€technicalÏassistance€in€the€relevant€spheres,€their€increased€ratification€will€enable€the€ILO€to€better€detectÏshortcomings€in€the€national€law€and€practice€and€to€assist€countries€in€overcoming€them.ÏNowhere€is€this€more€evident€than€in€the€employment€sphere,€where€the€operational€and€theÏstandard„setting€side€of€the€ILOððs€work€most€clearly€meet;€and€one€of€the€hopes€must€be€that€theÏlegal,€technical€and€consultative€framework€described€in€Convention€No.€122€and€related€ILOÏinstruments€will€continue€to€be€tried€and€built€on.Ìà ï àAs€this€paper€shows,€the€other€Conventions€accorded€high€priority€by€the€Governing€BodyÏalso€have€direct€relevance€to€the€problems€now€experienced.€Wherever€labour€inspection€is€anÏissue€as€a€necessary€means€of€ensuring€minimum€social€protection€and€preserving€legality€in€theÏworkplace,€the€Labour€Inspection€Convention,€1947€(No.€81),€and€the€Labour€InspectionÏ(Agriculture)€Convention,€1969€(No.€129),€demonstrate€the€standards€needed.€Finally,€theÏTripartite€Consultation€(International€Labour€Standards)€Convention,€1976€(No.€144),€with€itsÏaccompanying€Recommendation€(No.€152),€shows€the€way€for€any€country€to€address€socialÏissues€in€time€of€crisis€as€well€as€greater€peace,€in€the€traditional€ILO€spirit€of€harmony€andÏcooperation.ÌÌÝ‚žJ”ÿÝÔ  ÔÓ  ÓÔ€&O&&ô&=ÔÔ€»ˆo »&&OÔÓfæÓÓ 33Óò òÔ  ÔÝ  Ý4.3.€€Employment€policiesÝ‚žJ”ÿ$oƒÝÔ °oÔó óÔŽd"ÁÖ!3ÔÐ d"Á! ÐÓ  ÓÔ€ô»h » »»ˆoÔÔ€ô&=& »ô»hÔÓfæÓÓ 33ÓÝ  Ýà ï àThe€crisis€has€raised€the€issue€of€whether€it€has€also€marked€the€end€of€an€ð ðeasy€phaseðð€ofÐ ^#»" Ðemployment€creation€based€on€exceptionally€high€rates€of€economic€growth.€If€rates€of€economicÏgrowth€in€the€post„crisis€period€do€not€return€to€previous€trend€levels€then€there€will€be€a€needÏto€pay€greater€attention€to€policies€for€employment€creation.€Quite€apart€from€this€consideration,Ïhowever,€the€crisis€has€also€provided€other€strong€reasons€for€a€strengthening€of€employmentÏpolicies.Ìà ï àA€first€reason€is€that€the€crisis€has€brought€home€the€fact€that€it€is€not€sufficient€to€merelyÏhave€a€high€rate€of€job€creation;€policy„makers€should€also€be€concerned€about€the€sustainabilityÏof€the€jobs€that€are€created.€Where€there€has€been€a€significant€misallocation€of€investment,€asÏwas€the€case€in€the€pre„crisis€period,€then€the€jobs€linked€to€this€misallocated€investment€areÏclearly€at€risk.€Indeed,€much€of€the€job€loss€since€the€onset€of€the€crisis€has€been€in€activitiesÏassociated€with€an€over„expanded€construction€and€financial€sector.€This€concern€over€theÏsustainability€of€job€creation€highlights€the€strong€and€close€links€between€economic€andÏemployment€policy.€A€misallocation€of€investment€is€unwise€in€itself,€for€standard€economicÏreasons.€But€it€also€sows€the€seeds€of€fragility€in€the€job€creation€system€and€this€in€turn€has€highÏpotential€social€costs€when€jobs€are€lost€sooner€or€later.Ð O0¬+1 Ðà ï àA€second€reason€is€that€the€crisis€has€revealed€significant€gaps€in€the€institutional€capacityÏto€deal€with€issues€of€enterprise€restructuring€and€mass€lay„offs.€Comprehensive€informationÏsystems€to€provide€advance€warning€of,€and€to€monitor,€mass€lay„offs€do€not€exist€and€this€hasÏproved€a€severe€handicap€to€the€formulation€and€implementation€of€countervailing€measures.ÏMoreover€there€has€clearly€been€a€very€limited€capacity€to€implement€active€measures€to€facilitateÏthe€redeployment€of€laidññ„ññññ€ññoff€workers,€such€as€job„search€assistance,€retraining€and€mobilityÏassistance.€While€it€is€true€that€such€measures€will€apply€mainly€to€redeployment€within€theÏmodern€sector,€this€does€not€mean€that€they€should€be€neglected.€Even€in€countries€that€still€haveÏhigh€levels€of€rural€and€informal€sector€employment,€such€as€Thailand€and€Indonesia,€there€is€stillÏa€significant€role€that€such€measures€can€play€as€part€of€the€overall€response€to€a€sudden€onsetÏof€mass€lay„offs.€Moreover,€in€the€post„crisis€period€the€weight€of€modern€sector€employmentÏwill€undoubtedly€continue€to€grow€and€with€it€the€need€for€a€stronger€capacity€to€design€andÏimplement€active€labour€market€policies.Ìà ï àA€third€reason€is€that€the€crisis€has€also€revealed€limitations€in€the€institutional€capacity€toÏscale€up€the€existing€programmes,€such€as€public€works€and€the€promotion€of€self„ññ€ññemploymentÏin€the€rural€and€informal€sectors,€to€meet€the€greatly€increased€need€for€such€assistance€duringÏperiods€of€economic€crisis.Ìà ï àA€major€effort€of€institutional€development€is€therefore€required€to€remedy€theseÏdeficiencies.€In€this€respect€three€areas€deserve€special€emphasis.€The€first€is€the€need€to€createÏstronger€capacities€to€monitor€and€evaluate€the€employment€implications€of€overall€economicÏpolicies.€This€will€involve€strengthening€the€research€and€policy€analysis€functions€of€labourÏministries€and€the€establishment€of€close€working€links€between€labour€and€economic€ministries.ÏThe€remit€of€this€employment€policy€cluster€within€government€should€be€to€ensure€that€economicÏpolicies€do€not€contain€distortions€that€hinder€employment€creation€or€divert€it€into€non„¼sustainable€directions.€In€general,€job€creation€should€be€in€line€with€the€underlying€comparativeÏadvantage€of€the€economy€and€markets€should€be€open€and€competitive,€subject€to€the€need€toÏcorrect€market€failures.Ìà ï àOf€particular€importance€is€an€enabling€policy,€legal€and€regulatory€environment€for€theÏcreation€and€development€of€competitive€enterprises.€Reviews€should€therefore€be€undertaken€ofÏfactors€affecting€industrial€and€enterprise€development,€such€as€ensuring€transparent€corporateÏgovernance,€effective€financial€management€and€control,€national€competition€policies€and€theÏpromotion€of€technology€development€and€diffusion.€In€addition,€any€policy€bias€ð"ð€eitherÏintentional€or€unintentional€ð"ð€against€small€and€medium„sized€enterprises€should€be€removed.ÏFurthermore,€the€importance€of€policies€to€support€human€resource€development,€especially€theÏcreation€of€an€institutional€framework€that€provides€the€right€incentives€for€workers€to€acquireÏand€enterprises€to€provide€training,€needs€to€be€clearly€recognized.Ìà ï àThe€second€area€that€deserves€emphasis€is€the€strengthening€of€public€employment€services,Ïespecially€their€capacity€to€design€and€implement€active€labour€market€policies.€There€is€currentlyÏa€shortage€of€qualified€staff€to€plan€and€administer€active€labour€market€measures€and€limitedÏknowledge€about€such€basic€adjustment€concepts€and€techniques€as€early€intervention€and€rapidÏresponse,€using€labour„management€adjustment€committees€to€plan€and€direct€the€delivery€ofÏadjustment€services,€and€organizing€re„employment€assistance€services€and€delivery€of€assistanceÏon„site.€Parallel€capacity„building€will€also€be€required€in€other€agencies€responsible€for€designingÏand€implementing€direct€employment€creation€schemes.€There€is€potential€to€substantially€expandÏthese€schemes,€especially€if€donor€support€is€forthcoming.€Of€particular€importance€in€thisÏcontext€are€employment„intensive€investment€programmes,€targeted€at€the€unemployed€and€theÏunderemployed,€that€lead€to€the€development€of€local€productive€capacity.€Similarly,€agenciesÏresponsible€for€the€promotion€of€self„employment€in€the€rural€and€informal€sectors€and€theÏdevelopment€of€entrepreneurship€and€promoting€micro„,€small€and€medium„sized€enterprises€alsoÏneed€to€be€strengthened.€At€present€such€programmes€in€the€crisis„affected€countries€are€ofÏâ âvarying€quality€and€have€limited€potential€for€success.€In€order€to€be€successful€such€programmesÐ ã/@+2 Ðmust€include€the€necessary€training€and€technical€assistance€to€give€new€businesses€a€betterÏchance€of€being€successful€in€generating€sustainable€jobs.Ìâ âà ï àA€third€area€is€that€of€strengthening€of€the€capacity€of€enterprises€for€adjustment.€AchievingÏenterprise€reform€is€critical€for€many€businesses€if€they€are€to€successfully€weather€the€financialÏcrisis,€remain€competitive€and€preserve€or€create€jobs.Ìà ï àMany€business€owners€and€managers€may€believe€that€employee€lay„offs€are€the€only€optionÏavailable€to€solve€their€business€problems€in€the€face€of€the€immediate€financial€crisis.€SomeÏmanagers€may€also€not€fully€appreciate€the€implications€and€potential€negative€consequences€thatÏsuch€action€may€have€on€the€productivity,€competitiveness€and€long„term€success€of€theirÏenterprises.Ìà ï àIt€is€important€that€enterprise€managers,€trade€union€leaders€and€government€officials€allÏunderstand€the€concepts€of€employment€security€and€socially€sensitive€restructuring€so€that€theÏenterprise€reforms€undertaken€as€a€result€of€the€financial€crisis€strengthen€the€enterpriseððsÏcompetitiveness€rather€than€further€damaging€it.Ìà ï àThe€adoption€of€socially€sensitive€restructuring€principles€needs€to€be€actively€promotedÏamong€employers,€workers€and€government€officials€in€all€countries€experiencing€the€impact€ofÏthe€financial€crisis.€An€important€part€of€these€principles€is€the€need€to€raise€awareness€ofÏpossible€alternatives€to€lay„offs€in€the€face€of€urgent€needs€to€cut€costs.Ìà ï àGood€restructuring€practices€and€the€successful€experience€of€other€enterprises€need€to€beÏshared€and€widely€disseminated.€Technical€assistance€and€training€resources€are€urgently€neededÏto€increase€the€quantity€and€level€of€enterprise€restructuring€expertise€available€to€help€employersÏsystematically€implement€these€principles€at€the€enterprise€level.Ìà ï àAn€important€element€of€enterprise€reform€is€the€ability€of€managers€and€workers€to€adoptÏnew€ways€of€thinking€and€new€techniques€for€effecting€change€in€their€organizations.€If€countriesÏare€to€emerge€from€the€financial€crisis€in€a€more€competitive€position,€they€will€need€to€adoptÏproductivity„enhancing€restructuring€programmes.ÌÌÝ‚žJ”ÿÝÔ  ÔÓ  ÓÔ€&O&&ô&=ÔÔ€»ˆo »&&OÔÓfæÓÓ 33Óò òÔ  ÔÝ  Ý4.4.€€Strengthening€social€protectionÝ‚žJ”ÿ¶‘sociÝÔ B’Ôó óÔއäùVÔÐ ‡ä ÐÓ  ÓÔ€ô»h » »»ˆoÔÔ€ô&=& »ô»hÔÓfæÓÓ 33ÓÝ  Ýà ï àOne€of€the€clearest€lessons€to€emerge€from€the€crisis€is€that€existing€systems€of€socialÐ Þ Ðprotection€were€unable€to€cope€adequately€with€its€social€consequences.€The€strengthening€ofÏsocial€protection€is€thus€an€important€priority€for€future€action.Ìà ï àFinding€the€economic€solutions€to€a€crisis€cannot€be€divorced€from€dealing€with€its€socialÏconsequences.€This€has€been€seen€very€clearly€in€the€current€crisis,€especially€in€the€Republic€ofÏKorea.€There€the€tripartite€negotiations€to€which€the€crisis€gave€rise€resulted€in€agreements€notÏonly€on€immediate€measures€to€improve€social€protection€but€also€on€ways€to€strengthen€theÏsystem€in€the€longer€term.Ìà ï àFor€example,€it€was€decided€to€unify€the€countryððs€health€insurance€schemes.€Some€of€theseÏhave€excessively€large€reserves€(notably€those€in€the€large€companies€and€in€the€prosperousÏareas),€while€others€suffer€from€chronic€deficits€(notably€those€in€the€poorer€areas€of€theÏcountry).€Consensus€was€also€reached€in€the€Tripartite€Commission€on€the€need€to€give€the€socialÏpartners€a€real€say€in€the€way€social€security€schemes€are€planned€and€managed.€In€particular,Ïemployers€and€workers€have€made€it€clear€that€social€security€pension€reserves€can€no€longer€beÏused€as€a€source€of€cheap€financing€by€the€Government.€To€deal€with€the€projected€long„termÏfinancial€problems€of€the€national€pension€scheme€ð"ð€which€may€be€aggravated€by€the€presentÏcrisis,€though€they€were€not€induced€by€it€ð"ð€hard€decisions€will€have€to€be€taken€in€the€next€fewÏyears.€Full€involvement€of€the€social€partners€in€this€process€would€appear€to€be€vital€forÏachieving€a€satisfactory€outcome.€The€accord€reached€on€this€subject€in€the€TripartiteÏCommission€is€important€not€only€in€the€context€of€the€present€crisis,€but€also€for€the€long„termÏsustainability€of€the€social€security€system.€A€major€challenge€for€the€countryððs€social€protectionÏsystem€is€to€extend€coverage€to€workers€in€small€enterprises€(almost€half€of€all€employees),€whoÐ ¹0,1 Ðremain€excluded€not€only€from€unemployment€insurance,€but€even€from€entitlements€to€severanceÏpay€and€industrial€accident€insurance.Ìà ï àFar€greater€challenges€face€most€of€the€other€countries€if€they€are€to€be€well€equipped€to€faceÏsuch€crises€in€future.€In€particular,€there€is€a€need€for€better„targeted€measures€to€help€tideÏworkers€over€during€periods€of€unemployment.€Until€now,€all€that€has€been€provided€in€most€ofÏthese€countries€is€severance€pay.€This€goes€of€course€to€many€workers€who€do€not€becomeÏunemployed€at€all,€while€the€amount€received€by€those€who€do€become€unemployed€bears€noÏrelation€(or€indeed€may€well€be€inversely€related)€to€the€duration€of€their€unemployment.€BeingÏso€poorly€targeted,€severance€pay€fails€to€provide€adequate€protection.ÌÌÝ‚é{ÿÝÔ€ô&=&&ô&=ÔÔ€ôŠ,– Š&ô&=ÔÔ€Š}ËŠ ŠôŠ,–ÔÔ€Š}ËŠŠŠ}ËÔÔ€Š}ËŠŠŠ}ËÔÔ€@Š@ ŠŠŠ}ËÔÓ  ÓÓfæÓÓ 33ÓÔ  ÔÝ  Ý4.4.1.à i àUnemployment€insuranceÝ‚é{ÿgžal€fÝÔ aŸÔÔ^c ¨  ÔÐ c  ÐÔ€@&O& Š@Š@ÔÔ€@&O&&@&OÔÔ€ô&=&&@&OÔÔ€ô&=&&ô&=ÔÔ€ô&=&&ô&=ÔÔ€ô&=&&ô&=ÔÓ  ÓÓfæÓÓ 33ÓÝ  Ýà ï àApart€from€its€obvious€social€advantages,€unemployment€insurance€has€the€economicÐ ïL  Ðadvantage€of€spreading€the€cost€of€dealing€with€the€major€social€consequences€of€a€crisis€evenlyÏamong€all€enterprises.€In€this€way€social€protection€can€be€achieved€without€adversely€affectingÏcompetition€between€enterprises€and€without€reducing€the€chances€of€survival€of€those€which€areÏworst€affected€by€a€crisis.€The€merits€of€unemployment€insurance€were€clearly€appreciated€byÏthe€drafters€of€the€Social€Security€Act€adopted€in€Thailand€in€1990.€Given€the€very€gradualÏdevelopment€of€social€security€in€that€country,€implementation€of€that€part€of€the€legislation€mayÏstill€be€some€time€away,€but€the€present€crisis€should€lead€to€increased€awareness€of€the€need€toÏintroduce€unemployment€insurance€sooner€rather€than€later.Ìà ï àExperience€suggests€that€an€adequate€unemployment€insurance€scheme€can€be€financed€byÏa€total€contribution€rate€of€about€2€per€cent€of€insured€earnings.€Typically€this€would€be€sharedÏequally€between€employers€and€workers,€implying€a€1€per€cent€contribution€by€each.€There€needÏbe€no€government€contribution.€However,€governments€would€normally€finance€active€labourÏmarket€expenditures€from€general€revenue,€particularly€as€these€measures,€unlike€unemploymentÏinsurance€benefits,€are€usually€provided€to€all€jobseekers,€regardless€of€their€previousÏemployment€or€contribution€record.Ìà ï àA€certain€minimum€of€period€of€time€is€necessary€in€order€to€prepare€for€the€introductionÏof€unemployment€benefits.€The€collection€of€contributions€can€be€started€right€away,€providedÏthat€the€coverage€of€the€scheme€and€the€definition€of€insured€earnings€are€the€same€as€for€theÏexisting€social€security€scheme.€More€time€will€of€course€be€necessary€to€organize€the€deliveryÏof€benefits€and€to€put€in€place€the€services€which€can€help€the€unemployed€to€find€other€jobs€andÏat€the€same€time€serve€to€check€that€they€are€indeed€willing€and€able€to€work.€If€the€authoritiesÏintend€the€unemployment€insurance€scheme€to€provide€significant€help€to€workers€during€theÏcurrent€crisis,€special€measures€may€be€taken€with€this€in€view.€For€example,€periods€ofÏinsurance€under€the€existing€social€security€scheme€may€be€counted€towards€meeting€theÏeligibility€requirements€of€the€new€unemployment€insurance€scheme.ÌÌÝ‚é{ÿÝÔ€ô&=&&ô&=ÔÔ€ôŠ,– Š&ô&=ÔÔ€Š}ËŠ ŠôŠ,–ÔÔ€Š}ËŠŠŠ}ËÔÔ€Š}ËŠŠŠ}ËÔÔ€@Š@ ŠŠŠ}ËÔÓ  ÓÓfæÓÓ 33ÓÔ  ÔÝ  Ý4.4.2.à i àSeverance€pay€guaranteesÝ‚é{ÿ!ªÝÔ «ÔÔ^÷&T"™&ö!ÔÐ ÷&T"& ÐÔ€@&O& Š@Š@ÔÔ€@&O&&@&OÔÔ€ô&=&&@&OÔÔ€ô&=&&ô&=ÔÔ€ô&=&&ô&=ÔÔ€ô&=&&ô&=ÔÓ  ÓÓfæÓÓ 33ÓÝ  Ýà ï àAs€has€been€shown€elsewhere€in€this€report,€severance€pay€does€not€represent€the€idealÐ à'=#' Ðmethod€of€providing€social€protection€against€the€risk€of€unemployment.€However,€it€alreadyÏexists€in€most€of€the€countries€concerned.€The€current€crisis€has€focused€attention€on€one€of€itsÏweaknesses,€namely€the€risk€that€the€employer€responsible€for€paying€it€may€fail€to€do€so.Ìà ï àOne€part€of€the€solution€to€this€problem€is€better€enforcement,€which€may€be€promoted€notÏonly€by€more€labour€inspection€and€firm€action€by€the€courts,€but€also€by€more€publicity€aboutÏworkersðð€entitlements€and€better€trade€union€organization.€Another€part€of€the€solution€is€toÏestablish€a€severance€pay€guarantee€scheme€which€may,€as€in€the€Republic€of€Korea,€beÏcombined€with€a€guarantee€of€unpaid€wages,€in€the€event€of€enterprise€bankruptcy.€Such€aÏâ âscheme€should€not€cost€the€government€anything.€It€should€be€financed€by€a€modest€employerÐ µ/+0 Ðcontribution€and€administrative€costs€may€be€kept€to€a€minimum€by€collecting€this€together€withÏcontributions€to€the€social€security€system.Ìâ âÌÝ‚é{ÿÝÔ€ô&=&&ô&=ÔÔ€ôŠ,– Š&ô&=ÔÔ€Š}ËŠ ŠôŠ,–ÔÔ€Š}ËŠŠŠ}ËÔÔ€Š}ËŠŠŠ}ËÔÔ€@Š@ ŠŠŠ}ËÔÓ  ÓÓfæÓÓ 33ÓÔ  ÔÝ  Ý4.4.3.à i àSocial€safety€netÝ‚é{ÿ±ÝÔ ²ÔÔ^åB‡äÔÐ åB ÐÔ€@&O& Š@Š@ÔÔ€@&O&&@&OÔÔ€ô&=&&@&OÔÔ€ô&=&&ô&=ÔÔ€ô&=&&ô&=ÔÔ€ô&=&&ô&=ÔÓ  ÓÓfæÓÓ 33ÓÝ  Ýà ï àWhile€unemployment€insurance€is€a€powerful€tool,€it€clearly€has€its€limitations.€In€particular,Ð Î+ Ðit€does€nothing€for€first„time€jobseekers,€who€may€be€young€people€entering€the€labour€marketÏor€others€who€have€previously€been€self„employed€or€working€in€the€informal€sector.€And€evenÏin€the€case€of€workers€who€have€unemployment€insurance€entitlements,€there€is€the€risk€that€theseÏmay€be€exhausted€before€other€work€can€be€found.€Some€kind€of€safety€net€is€vital€to€ensure€thatÏeverybody€falling€into€such€categories€is€able€to€cover€the€basic€subsistence€needs€of€themselvesÏand€their€dependants.Ìà ï àSocial€assistance€is€the€classic€solution€to€this€problem€in€the€industrialized€countries.€It€isÏfeasible€in€some€of€the€countries€and€areas€affected€by€the€current€crisis.€Indeed,€Hong€Kong,ÏChina,€has€a€well„developed€social€assistance€system.€In€others€it€may€not€be€feasible€in€the€shortÏor€medium€term,€either€because€the€government€cannot€or€will€not€make€the€necessary€fundsÏavailable,€or€because€it€is€impossible€to€determine€with€any€degree€of€certainty€who€requires€suchÏassistance€and€who€does€not.€If€there€is€an€extensive€informal€sector,€it€is€extremely€difficult€toÏadminister€income€tests€and€means€tests.€Besides,€even€in€favourable€conditions,€suchÏadministration€is€complex:€training€the€staff€and€building€up€the€necessary€administrativeÏinfrastructure€will€take€years.Ìà ï àThis€should€not,€however,€be€used€as€a€pretext€for€doing€nothing.€In€the€short€term,€anÏalternative€is€available€which€obviates€the€need€for€means„testing€and€income„testing.€ThisÏalternative€is€the€guarantee€of€work€on€public€projects€in€return€for€a€subsistence€wage.€This€isÏoften€described€as€a€ð ðself„targetingðð€measure,€since€only€people€in€genuine€need€are€going€toÏvolunteer€for€such€work.€It€is€a€crude€solution,€which€may€amount€to€punishing€the€poor€if€theÏnature€of€the€work€and€the€adequacy€of€the€pay€are€not€properly€supervised.€However,€in€theÏshort€term€it€is€probably€the€only€feasible€safety€net€that€can€be€provided€in€most€of€the€countriesÏaffected€by€the€crisis.€To€be€effective,€this€guarantee€of€work€must€be€provided€to€all€who€apply.ÏOtherwise€the€concept€of€a€safety€net€is€a€misnomer.€This€is€why€the€previous€section€of€thisÏchapter€pointed€to€the€importance€of€expanding€and€improving€the€capacity€to€design€andÏimplement€direct€employment€creation€schemes.ÌÌÝ‚é{ÿÝÔ€ô&=&&ô&=ÔÔ€ôŠ,– Š&ô&=ÔÔ€Š}ËŠ ŠôŠ,–ÔÔ€Š}ËŠŠŠ}ËÔÔ€Š}ËŠŠŠ}ËÔÔ€@Š@ ŠŠŠ}ËÔÓ  ÓÓfæÓÓ 33ÓÔ  ÔÝ  Ý4.4.4.à i àHealth€careÝ‚é{ÿ"½ÝÔ ¾ÔÔ^°! R!¯ÔÐ °!   ÐÔ€@&O& Š@Š@ÔÔ€@&O&&@&OÔÔ€ô&=&&@&OÔÔ€ô&=&&ô&=ÔÔ€ô&=&&ô&=ÔÔ€ô&=&&ô&=ÔÓ  ÓÓfæÓÓ 33ÓÝ  Ýà ï àIt€can€be€expected€that€if€the€crisis,€with€its€attendant€consequences€for€unemployment,€lowÐ ™"ö! Ðincomes€and€poverty,€is€prolonged€the€health€status€of€the€poorer€sections€of€the€population€willÏsuffer.€Worsening€nutrition,€homelessness€and€stress€due€to€job€loss,€the€fear€of€it€and€theÏexperience€of€more€straitened€economic€circumstances€will€all€eventually€have€adverse€effectsÏon€health.€But€more€immediate€is€the€question€of€maintaining€and€improving€access€to€health€careÏfor€a€population€whose€income€has€been€reduced,€especially€the€poorer€sections€of€it.Ìà ï àPublic€health€services€must€respond.€Services€must€be€expanded;€access€to€them€must€beÏmade€convincingly€universal;€they€must€be€made€cheaper€to€the€user;€and€for€the€poor,€user€costsÏshould€be€waived€ð"ð€at€present€the€cost€of€collecting€user€charges€is€often€greater€than€the€revenueÏwhich€they€yield.€There€are€several€main€strategies€which€could€be€applied.€One€is€to€impose€aÏgreater€and€more€careful€degree€of€regulation€on€the€framework€of€non„public€health€insurance,Ïto€limit€the€extent€to€which€health€care€providers€can€exploit€an€inflationary€situation.€AnotherÏis€to€promote€the€extension€of€health€care€coverage€to€workers€who€are€dismissed.€Yet€a€third€isÏto€integrate€the€purchases€of€pharmaceuticals€ð"ð€for€both€public€and€private€schemes€ð"ð€into€bulkÏpurchasing€arrangements€for€imported€drugs€and€to€encourage€domestic€production.€TheseÏdevelopments€will€all€take€some€time,€but€they€are€worth€pursuing€in€their€own€right€and€as€partÏof€a€longer„term€strategy.Ð d0Á+1 ЇÝ‚é{ÿÝÔ€ô&=&&ô&=ÔÔ€ôŠ,– Š&ô&=ÔÔ€Š}ËŠ ŠôŠ,–ÔÔ€Š}ËŠŠŠ}ËÔÔ€Š}ËŠŠŠ}ËÔÔ€@Š@ ŠŠŠ}ËÔÓ  ÓÓfæÓÓ 33ÓÔ  ÔÝ  Ý4.4.5.à i àProgressing€from€provident€fundsÐ £ Ðà ï àà Ò àto€social€securityÝ‚é{ÿèÅÝÔ âÆÔÔ^êGŒéÔÌÔ€@&O& Š@Š@ÔÔ€@&O&&@&OÔÔ€ô&=&&@&OÔÔ€ô&=&&ô&=ÔÔ€ô&=&&ô&=ÔÔ€ô&=&&ô&=ÔÓ  ÓÓfæÓÓ 33ÓÝ  Ýà ï àThe€present€crisis€has€served€to€underline€just€how€little€protection€is€provided€by€personalÐ Ó0 Ðsavings,€whether€these€are€voluntary€or€compulsory.€Many€people€have€lost€their€savings€in€stockÏmarket€crashes€and€with€the€collapse€of€financial€institutions,€while€devaluation€and€inflation€haveÏspared€only€the€very€rich€and€the€very€well€connected.€In€particular,€the€balances€which€workersÏhave€in€national€provident€funds€and€which€are€supposed€to€prepare€for€the€contingencies€ofÏinvalidity,€old€age€and€death,€turn€out€all€too€often€to€be€barely€enough€to€sustain€them€or€theirÏsurvivors€for€a€month€or€two.€Periodical€benefits€are€the€only€satisfactory€way€to€cater€for€theseÏcontingencies.€Without€them,€the€elderly€and€the€disabled€will€be€condemned€to€a€life€of€povertyÏand€extremely€vulnerable€to€any€crisis,€such€as€the€present€one,€which€leads€to€inflation€and€toÏinterruption€of€the€incomes€of€those€upon€whom€they€depend.€In€more€highly€developedÏcountries,€pensions€for€the€mass€of€the€elderly€not€only€remove€this€threat€to€their€subsistence€butÏalso€act€as€an€automatic€stabilizer€during€a€recession€or€a€depression.Ìà ï àMoving€from€lump„sum€payments€to€periodical€benefits€is€not€easy.€Not€only€are€workersÏvery€possessive€about€the€money€in€their€individual€accounts€(the€system€encourages€them€to€be),Ïbut€they€tend€to€be€extremely€suspicious€of€any€government€proposals€to€withhold€this€moneyÏfrom€them€any€longer€than€originally€envisaged.€However,€with€demographic€trends€leading€toÏa€far€greater€proportion€of€the€population€in€the€older€age€groups€and€with€social€trends€tendingÏto€reduce€the€extent€to€which€the€elderly€can€rely€on€support€from€the€extended€family,€countriesÏwhich€do€not€make€the€effort€to€introduce€pensions€now€are€going€to€find€themselves€in€deepÏtrouble€in€the€next€century.€For€this€effort€to€be€successful,€it€is€vital€that€the€social€partners€beÏfully€involved€in€the€reform€process.€Failure€to€win€the€understanding€and€support€of€workers€andÏtheir€organizations€is€bound€to€undermine€reform€plans,€no€matter€how€well€designed€these€mayÏbe.ÌÌÝ‚é{ÿÝÔ€ô&=&&ô&=ÔÔ€ôŠ,– Š&ô&=ÔÔ€Š}ËŠ ŠôŠ,–ÔÔ€Š}ËŠŠŠ}ËÔÔ€Š}ËŠŠŠ}ËÔÔ€@Š@ ŠŠŠ}ËÔÓ  ÓÓfæÓÓ 33ÓÔ  ÔÝ  Ý4.4.6.à i àA€minimum€pensionÝ‚é{ÿòÐÝÔ ìÑÔÔ^"Ä!ÔÐ " ÐÔ€@&O& Š@Š@ÔÔ€@&O&&@&OÔÔ€ô&=&&@&OÔÔ€ô&=&&ô&=ÔÔ€ô&=&&ô&=ÔÔ€ô&=&&ô&=ÔÓ  ÓÓfæÓÓ 33ÓÝ  Ýà ï àMoving€from€a€provident€fund€to€a€social€insurance€scheme€is€in€one€sense€not€such€a€radicalÐ  h Ðchange,€since€both€systems€are€contributory€and€earnings„related.€Certainly€the€latter€is€muchÏmore€effective€at€preventing€poverty,€by€providing€benefits€regularly€for€life.€However,€bothÏsystems€do€nothing€for€those€who€have€not€been€insured;€and€many€old€people,€indeed€the€vastÏmajority€in€some€of€these€countries,€fall€into€that€category,€either€because€pension€insurance€didÏnot€exist€when€they€were€economically€active€or€because€they€belonged€to€a€category€of€theÏlabour€force€that€was€not€covered€by€the€system.Ìà ï àThe€problem€of€providing€a€basic€minimum€pension€to€the€large€number€of€people€too€oldÏto€work€and€without€any€other€form€of€income€is€clearly€a€major€one,€but€it€needs€to€be€tackledÏimmediately€if€the€effects€of€the€crisis€are€to€be€mitigated.€One€way€of€doing€so€is€to€establish€aÏminimum€basic€pension,€independently€of€previous€contributions.€It€would€need€to€be€financedÏfrom€general€revenues,€and€for€financial€reasons€eligibility€should€be€based€on€both€age€andÏincome.€The€age€criteria€would€need€to€be€set€fairly€high€ð"ð€over€70€for€example€ð"ð€and€theÏincome€criteria€would€need€to€be€set€fairly€low€ð"ð€above€the€poverty€line,€but€not€much€aboveÏð"ð€in€order€to€provide€a€subsistence€level€of€income€to€those€who€could€not€otherwise€achieve€it.ÌÌÝ‚é{ÿÝÔ€ô&=&&ô&=ÔÔ€ôŠ,– Š&ô&=ÔÔ€Š}ËŠ ŠôŠ,–ÔÔ€Š}ËŠŠŠ}ËÔÔ€Š}ËŠŠŠ}ËÔÔ€@Š@ ŠŠŠ}ËÔÓ  ÓÓfæÓÓ 33ÓÔ  ÔÝ  Ý4.4.7.à i àProtection€for€those€in€the€informal€sectorÝ‚é{ÿûØÝÔ õÙÔÔ^Š+ç&,+‰&ÔÐ Š+ç&+ ÐÔ€@&O& Š@Š@ÔÔ€@&O&&@&OÔÔ€ô&=&&@&OÔÔ€ô&=&&ô&=ÔÔ€ô&=&&ô&=ÔÔ€ô&=&&ô&=ÔÓ  ÓÓfæÓÓ 33ÓÝ  Ýà ï àMost€of€the€countries€affected€by€the€financial€crisis€in€Asia€have€a€large€informal€sector€andÐ s,Ð', Ðthe€crisis€itself€is€driving€many€more€of€the€economically€active€into€this€sector,€where€they€enjoyÏlittle€or€no€social€protection.€It€is€clear€that€people€resort€to€the€informal€sector€in€most€casesÏbecause€they€have€simply€no€alternative.€It€is€hardly€a€matter€of€choice,€at€least€for€the€workersÏthemselves.€The€State€has€a€responsibility€to€these€people,€as€workers€and€as€citizens,€if€not€asÏcontributors.€One€way€to€discharge€this€responsibility€is,€as€suggested€above,€to€institute€aÐ µ0,1 Ðuniversal€pension.€Another€priority€is€to€find€suitable€ways€to€finance€health€care€for€them.ÏAdequate€public€health€services€should€no€doubt€be€part€of€the€solution.€However,€healthÏinsurance€can€also€play€a€part,€as€those€concerned€are€often€able€and€willing€to€devote€some€ofÏtheir€disposable€income€to€securing€health„care€coverage€for€themselves€and€their€families.€In€thisÏarea,€no€quick€or€easy€solutions€are€on€offer.€Governments€with€a€will€to€achieve€real€progressÏmay€do€so,€however,€if€they€tackle€the€problem€simultaneously€from€both€ends,€i.e.€by€helpingÏto€promote€self„help€grassroots€mutual€insurance€schemes€and€by€gradually€extending€compulsoryÏcoverage€and€improving€the€level€of€compliance.ÌÌÝ‚žJ”ÿÝÔ  ÔÓ  ÓÔ€&O&&ô&=ÔÔ€»ˆo »&&OÔÓfæÓÓ 33Óò òÔ  ÔÝ  Ý4.5.€€Strengthening€policies€towardsÐ £   ÐÔÒÒÒ\\Ôvulnerable€groupsÝ‚žJ”ÿßà€covÝÔ káÔó óÔŽ+ˆ úÔÐ +ˆ  ÐÓ  ÓÔ€ô»h » »»ˆoÔÔ€ô&=& »ô»hÔÓfæÓÓ 33ÓÝ  Ýà ï àPolicies€and€programmes€for€dealing€with€social€problems€during€the€crisis,€as€well€asÐ %‚  Ðbeyond€it,€must€be€sensitive€to€the€special€needs€of€vulnerable€groups€such€as€working€children,Ïwomen€and€migrant€workers.€A€variety€of€means€for€ensuring€that€this€sensitivity€towardsÏvulnerable€groups€is€embedded€in€the€policy„making€process€are€discussed€below.€Some€typesÏof€practical€action€that€can€be€tailored€to€meet€the€special€needs€of€these€groups€are€alsoÏhighlighted.ÌÌÝ‚é{ÿÝÔ€ôŠ,– Š&ô&=ÔÔ€@Š@ Š ŠôŠ,–ÔÓ  ÓÓfæÓÓ 33ÓÔ  ÔÝ  Ý4.5.1.à i àChild€labourÝ‚é{ÿ§älianÝÔ %åÔÔ^Ï,qÎÔÐ Ï, ÐÔ€@&O& Š@Š@ÔÔ€ô&=&&@&OÔÓ  ÓÓfæÓÓ 33ÓÝ  Ýà ï àAs€the€adverse€effects€of€the€crisis€on€child€labour€start€to€become€apparent,€it€is€importantÐ ¸ Ðthat€poverty€alleviation€programmes€target€vulnerable€groups,€in€particular€female„headedÏhouseholds,€whose€children€run€the€risk€of€ending€up€in€child€labour.€Employment€creationÏschemes€could€target€specifically€workers€with€families€in€those€sectors€of€the€economy€in€whichÏredundancies€have€been€greatest.€Educational€accessibility€needs€to€be€guaranteed€for€all€childrenÏin€order€to€reduce€the€likelihood€of€child€labour.€Monitoring€and€protection€of€working€childrenÏcan€be€increased,€for€example,€by€strengthening€labour€inspection€and€monitoring€capacity€atÏcommunity€level.€The€ILOððs€International€Programme€on€the€Elimination€of€Child€LabourÏ(IPEC),€through€a€well„developed€network€of€partners€at€country€level,€has€made€considerableÏprogress€in€legitimizing,€strengthening€and€extending€work€against€child€labour€in€Asia.ÌÌÝ‚é{ÿÝÔ€ôŠ,– Š&ô&=ÔÔ€@Š@ Š ŠôŠ,–ÔÓ  ÓÓfæÓÓ 33ÓÔ  ÔÝ  Ý4.5.2.à i àWomenÝ‚é{ÿìé‚ÝÔ jêÔÔ^Ê 'l ÉÔÐ Ê ' ÐÔ€@&O& Š@Š@ÔÔ€ô&=&&@&OÔÓ  ÓÓfæÓÓ 33ÓÝ  Ýà ï àThere€are€signs€that€the€crisis€has€had€a€disproportionately€adverse€effect€on€womenÐ ³! Ðworkers,€who€are€likely€to€be€the€first€to€suffer€from€the€casualization€of€work€or€erosion€ofÏsocial€protection€that€accompany€serious€economic€reversals.€€The€crisis€thus€provides€a€timelyÏopportunity€to€reinforce€and€advocate€even€more€strongly€ongoing€policies€and€strategicÏapproaches€for€gender€equality€at€work,€to€ensure€that€womenððs€social€and€economic€gains€areÏnot€seriously€set€back€or€lost€altogether.€This€requires€that€appropriate€policy€responses€in€eachÏof€the€foregoing€areas€be€tailored€with€their€differential€impacts€on€men€and€women€workers€inÏmind.€Gender€analyses€both€on€the€impact€of€the€crisis€and€on€the€policy€responses€to€it€wouldÏbe€a€first€step.Ìà ï àGuidelines€need€to€be€applied€for€integrating€gender€concerns€into€the€design€andÏimplementation€of€emergency€employment€creation€programmes,€skills€training€programmes,€andÏpolicies€to€promote€self„employment,€entrepreneurship€and€access€to€credit.Ìà ï àIt€is€important,€for€example,€that€displaced€women€workers,€as€well€as€those€working€in€theÏinformal€sector,€obtain€greater€access€to€information,€knowledge,€skills€and€resources€to€enableÏthem€to€improve€their€position€in€the€labour€market.€This€can€be€achieved€through€the€promotionÏof€individual€or€group„based€enterprises€which€are€owned€and€managed€by€women.€Special€andÏseparate€emphasis€would€have€to€be€given€to€the€needs€of€educated€and€skilled€women€who€haveÏhad€exposure€to€enterprise€development,€as€well€as€to€those€less€educated€and€unskilled€womenÐ ƒ0à+0 Ðwho€would€tend€towards€informal€sector€or€cottage„based€enterprises.€To€realize€theseÏopportunities,€it€is€necessary€to€expand€the€scope€of€social€protection€to€these€sectors€and€formsÏof€employment€in€which€women€workers€predominate.€This€should€include€measures€to€coverÏthe€costs€of€maternity€protection€and€leave.Ìà ï àIt€is€clear€that€womenððs€needs€are€unlikely€to€be€placed€on€the€agenda€if€the€organizationsÏthat€draft€the€agenda€themselves€have€little€participation€and€representation€of€women.€EqualÏparticipation€of€women€in€all€processes€of€decision„making€must€be€promoted.Ìà ï àSince€redundancies€and€the€settlement€of€disputes€strongly€affect€women€workers,€theÏimportance€of€their€role€in€the€decision„making€bodies€and€their€participation€in€the€process€andÏmechanisms€for€collective€bargaining€needs€to€be€underscored.€In€the€context€of€the€crisis,€thisÏbecomes€even€more€evident.€Womenððs€gross€underññ„ññrepresentation€and€lack€of€equal€participationÏat€decision„making€levels€are€key€reasons€why€gender€equality€issues€such€as€recruitment,€hiring,Ïwage€equity,€bonuses,€dismissals€and€family€responsibilities€receive€marginal€attention.Ìà ï àThe€capacity€of€the€social€partners€to€ensure€that€womenððs€needs€and€concerns€are€placedÏon€the€agenda,€to€address€gender€issues,€and€to€take€the€necessary€action,€should€be€enhanced.ÌÌÝ‚é{ÿÝÔ€ôŠ,– Š&ô&=ÔÔ€@Š@ Š ŠôŠ,–ÔÓ  ÓÓfæÓÓ 33ÓÔ  ÔÝ  Ý4.5.3.à i àMigrant€workersÝ‚é{ÿF÷‚ÝÔ Ä÷ÔÔ^xÕwÔÐ xÕ ÐÔ€@&O& Š@Š@ÔÔ€ô&=&&@&OÔÓ  ÓÓfæÓÓ 33ÓÝ  Ýà ï àThe€crisis€has€made€abundantly€clear€the€need€for€recasting€approaches€to€managingÐ a¾ Ðinternational€labour€migration,€which€were€characterized€by€unclear€policy€goals,€slackÏimplementation€and€an€absence€of€bilateral€regulation.€Good€governance€is€of€the€utmostÏimportance€in€this€field€because€the€cross„border€movements€of€workers€and€dependants€touchÏupon€the€innermost€feelingññsññ€of€people;€and€they€involve€human€beings,€most€of€whom€are€poor,Ïrather€than€commodities.Ìà ï àAt€the€national€level,€therefore,€there€is€an€urgent€need€for€reviewing€policies,€proceduresÏand€measures€on€how€to€admit€and€treat€foreigners€who€are€needed€and€to€prevent€the€entry,€stayÏor€employment€of€those€who€are€not€needed.€It€could€perhaps€start€with€tripartite€consultativeÏmeetings€at€the€sectoral€level€ð"ð€agricultural,€construction,€manufacturing€and€private€servicesÏð"ð€before€matters€are€discussed,€as€well€as€decided€upon,€in€a€tripartite€framework€at€the€nationalÏlevel.€It€might€conceivably€include€the€issues€of€graft€and€corruption€at€the€local€police€level,€onÏthe€one€hand,€and€of€the€establishment€of€funds,€based€on€contributions,€to€compensate€migrantÏworkers€for€wages€not€paid€in€the€event€of€insolvency€and€bankruptcy,€on€the€other.€ComparativeÏexperience€on€good€governance€in€this€field€can€be€shared.Ìà ï àAt€the€international€level,€there€is€an€urgent€need€for€establishing€bilateral€or€multilateralÏmechanisms€to€transcend€the€inherent€limitations€imposed€by€national€boundaries€on€the€impactÏof€state€interventions€in€this€sphere€of€social€policy.€Bilateral€or€broader€consultations,€of€a€formalÏor€informal€nature,€can€assist€countries€in€the€conceptualization€and€implementation€of€agreedÏregulations€to€channel€workers€into€jobs€where€they€are€authorized€to€be€employed.€These€canÏinclude:€the€setting€up,€at€bilateral€levels,€of€joint€commissions€of€labour€which€could€serve€asÏinformal€and€flexible€structures€for€regular€consultations€between€authorities€of€sending€andÏreceiving€countries;€bilateral€labour€agreements€covering€key€procedural€and€other€issues,Ïincluding€human€resource€development,€social€security€and€minimum€wages;€and€round„tableÏdiscussions,€at€regional€or€subregional€levels,€to€tackle€common€problems€and€solutions.ÌÌÝ‚žJ”ÿÝÔ  ÔÓ  ÓÔ€&O&&ô&=ÔÔ€»ˆo »&&OÔÓfæÓÓ 33Óò òÔ  ÔÝ  Ý4.6.€€Strengthening€institutions€forÐ 1+Ž&+ ÐÔÒÒÒ\\Ôindustrial€relationsÝ‚žJ”ÿÓty€eÝÔ _Ôó óÔ޹,(+,ˆ'ÔÐ ¹,(, ÐÓ  ÓÔ€ô»h » »»ˆoÔÔ€ô&=& »ô»hÔÓfæÓÓ 33ÓÝ  Ýà ï àIn€the€most„affected€countries,€the€crisis€has€revealed€the€underdevelopment€of€industrialÐ ³-)- Ðrelations€institutions€and€the€weakness€of€social€dialogue.€Progress€in€these€areas€lagged€behindÏâ âthe€rapid€economic€growth€of€the€last€two€decades.€One€effect€is€the€genuine€risk€that€the€burdenÐ g/Ä*/ Ðof€adjustment€ð"ð€its€social€costs€ð"ð€will€be€shouldered€disproportionately€by€the€workingÏpopulation€and,€more€particularly€still,€by€societyððs€most€vulnerable.Ìâ âà ï àThe€weakness€of€social€dialogue€is€also€a€constraint€on€these€countriesðð€ability€to€recoverÏrapidly€from€the€economic€downturn€in€two€ways.€First,€without€workable€channels€throughÏwhich€a€social€consensus€on€hard€policy€choices€can€be€attempted,€increasing€social€unrest€mayÏresult.€Social€instability€weakens€the€effectiveness€of€policy€and€could€force€delays€in€neededÏreforms.€Second,€the€weakness€of€labour„management€dialogue€narrows€the€options€available€toÏfirms€in€their€search€for€ways€to€weather€the€present€downturn€that€are€least€damaging€both€toÏthe€firm€and€to€the€economy€in€general.€Improved€labour„management€communication€can€yieldÏa€broader€set€of€alternatives€to€the€lay„off€mechanism.€This€is€good€for€firms,€which€can€preserveÏproductive€capability€for€when€conditions€improve.€It€is€also€good€for€the€economy,€since€theÏnegative€effects€on€incomes€and€consumption€can€be€limited€if€lay„offs€are€averted.Ìà ï àThere€are,€however,€positive€signs€that€the€economic€crisis€has€led€to€just€this€recognitionÏamong€governments€and€the€social€partners.€The€need€to€strengthen€systems€of€industrial€relationsÏand€to€improve€channels€of€democratic€participation€in€economic€and€social€policy€choices€isÏmore€broadly€acknowledged€now€than€ever€in€the€past.Ìà ï àThe€discussion€in€the€previous€chapter€has€shown€the€key€role€of€social€dialogue€andÏcollective€bargaining€in€efforts€to€overcome€the€effects€of€the€financial€crisis.€Among€the€worst„¼affected€countries,€it€is€in€the€Republic€of€Korea€that€these€mechanisms€have€played€the€mostÏsignificant€role.€A€comprehensive€set€of€measures€were€put€in€place€through€tripartite€consensusÏat€the€national€level€and€joint€negotiation€at€the€enterprise€level,€and€these€have€considerablyÏimproved€the€prospects€for€a€smooth€transition€out€of€the€crisis.€Because€of€the€higher€degree€ofÏindustrialization€in€this€country,€the€trade€union€movement€is€the€most€powerful€and€the€practiceÏof€collective€bargaining€and€labour„management€cooperation€is€the€most€advanced€among€theÏworst„affected€countries.€In€contrast,€in€the€two€other€countries,€tripartite€and€bipartiteÏnegotiations€on€measures€to€cope€with€the€crisis€were€hampered€by€the€weakness€andÏfragmentation€or€lack€of€representation€and€independence€of€the€trade€union€movement€and€theÏabsence€of€a€culture€of€negotiation€and€consultation€between€the€government€and€the€two€socialÏpartners.€As€a€result,€risks€of€social€unrest€appear€greater€and€the€prospect€for€a€smoothÏadjustment€more€uncertain.Ìà ï àThe€main€policy€lesson€to€be€drawn€is€that€for€adjustment€to€take€place€in€a€speedy€and€fairÏmanner,€there€must€be€a€system€of€industrial€relations€in€which€bipartite€and€tripartite€dialogue,Ïparticipation€and€consensus€can€take€place.ÌÌÝ‚é{ÿÝÔ€ô&=&&ô&=ÔÔ€ôŠ,– Š&ô&=ÔÔ€Š}ËŠ ŠôŠ,–ÔÔ€Š}ËŠŠŠ}ËÔÔ€Š}ËŠŠŠ}ËÔÔ€@Š@ ŠŠŠ}ËÔÓ  ÓÓfæÓÓ 33ÓÔ  ÔÝ  Ý4.6.1.à i àEnsuring€freedom€of€associationÐ ™"ö" Ðà ï àà Ò àand€strengthening€unionsÝ‚é{ÿ£r€thÝÔ ÔÔ^à#=‚#ßÔÌÔ€@&O& Š@Š@ÔÔ€@&O&&@&OÔÔ€ô&=&&@&OÔÔ€ô&=&&ô&=ÔÔ€ô&=&&ô&=ÔÔ€ô&=&&ô&=ÔÓ  ÓÓfæÓÓ 33ÓÝ  Ýà ï àA€precondition€for€this€is€that€the€parties€to€the€dialogue€should€be€free,€able€and€willing€toÐ É$& $ Ðdiscuss€issues€seriously,€make€commitments€and€deliver€on€them.€This€requires€the€existence€ofÏfree,€representative€and€strong€trade€unions€to€defend€the€interests€of€workers€and€actÏauthoritatively€as€interlocutors€with€enterprises,€employersðð€organizations€and€government.Ìà ï àYet€the€reality€is€that€in€the€three€countries€most€affected€by€the€crisis,€as€in€other€countriesÏin€the€region,€these€conditions€are€not€met.€Indonesia,€the€Republic€of€Korea€and€Thailand€haveÏnot€ratified€the€Freedom€of€Association€and€Protection€of€the€Right€to€Organise€Convention,€1948Ï(No.€87),€while€only€Indonesia€has€ratified€the€Right€to€Organise€and€Collective€BargainingÏConvention,€1949€(No.€98).€In€all€three€countries€there€are€legal€and€practical€restrictions€on€theÏcreation€and€functioning€of€trade€unions,€which€have€been€the€subject€of€complaints€to€the€ILOÏGoverning€Body€Committee€on€Freedom€of€Association.€As€described€above€in€the€section€onÏinternational€labour€standards,€that€Committee€has€made€strong€recommendations€to€remedy€theÏâ âsituation.Ð ,/‰*0 Ðà ï àHowever€,€it€is€noteworthy€that€in€the€Republic€of€Korea,€in€spite€of€not€being€formallyÏâ âregistered,€the€Korean€Confederation€of€Trade€Unions€(KCTU)€(the€second€trade€union€federationÏin€the€country)€was€represented€on€the€Tripartite€Commission€and€was€a€party€to€the€TripartiteÏAccord.€That€Accord€itself€provides€for€the€removal€of€several€important€limitations€on€freedomÏof€association,€which€will€make€it€possible€for€the€Republic€of€Korea€to€ratify€Conventions€Nos.Ï87€and€98€in€the€near€future.€Similarly,€in€Indonesia€and€Thailand,€the€crisis€and€the€need€to€fullyÏinvolve€the€representatives€of€the€workers€in€the€search€for€solutions€appear€to€have€increasedÏawareness€of€the€importance€of€a€free€and€strong€trade€union€movement.€In€Indonesia,€whereÏonly€one€central€federation€is€allowed€by€law,€this€federation€itself€(the€FSPSI)€has€issued€a€strongÏstatement€calling€for€the€elimination€of€all€existing€laws€which€restrict€freedom€of€association.€InÏThailand,€the€National€Tripartite€Forum,€organized€in€November€1997€at€the€initiative€of€theÏILO,€agreed€to€call€for€a€review€of€labour€law€in€order€to€ensure€freedom€of€association.Ìà ï àIn€addition€to€removing€the€legal€barriers€to€freedom€of€association,€there€are€practical€stepsÏto€be€taken€in€all€the€countries€in€the€region,€by€governments,€employers€and€their€organizationsÏand€the€unions€themselves,€to€strengthen€the€trade€union€movement,€in€order€to€make€it€a€reliableÏand€responsible€partner.Ìà ï àGovernments€and€employers,€in€particular,€must€accept€the€existence€of€trade€unions€andÏrecognize€that€it€is€in€their€best€interests€to€have€interlocutors€who,€at€the€enterprise€level,€canÏhelp€draw€up€ð ðsocial€plansðð€designed€to€limit€the€number€of€dismissals€and€soften€their€impactÏ(see€box).€Trade€unions€can€also€be€associated€at€the€national€level€with€hard€policy€choices,Ïthereby€giving€legitimacy€to€and€enhancing€the€acceptability€of€painful€adjustment€measures.ÌÌÝ‚AÔÌÿÝÔ€ôÂÂ&ô&=ÔÔ€?ÂÿÂÂôÂÔÓÓÓfæÓÓ 33ÓÝ  ÝÔ*̃-#5d  d|^^ À^^ À^^ À^^ À^^ À^^ À^^ ³^^ . 3v%"v%"ÌÔÔ,¯ìì!ÔÔ+  ÔÐ '  h ‚삃/ƒ„„'Ðà@``%Màò òSocial€plansó óˆÐ ,"÷T ì/ ‚/‚ƒ½ƒ,Ðà ï àà Ò àSocial€plans€can€be€described€as€agreements€reached€between€labour€and€management€toÏdevelop€an€organized€set€of€measures€seeking€alternatives€to€dismissal,€assistance€in€arrangingÏre„employment€elsewhere€and€compensation,€in€an€effort€to€limit€the€number€of€plannedÏredundancies€and€minimize€the€impact€on€workers€and€communities.€The€social€planning€processÏtypically€begins€after€an€organization€has€announced€that€it€intends€to€scale€back€the€size€of€itsÏworkforce€or€even€shut€down€operations€entirely.€Following€such€an€announcement,€the€socialÏpartners€meet€to€find€workable€alternatives€to€mass€redundancies.€These€alternatives€tend€toÏinvolve€such€initiatives€as€early€retirement€schemes,€incentives€for€voluntary€redundancies,€naturalÏattrition,€conversion€from€full„time€to€part„time€status,€reduction€in€working€hours,€wageÏmoderation€or€cuts€in€compensation,€relocation€to€another€worksite€within€the€organization,€andÏworker€retraining.€If€redundancies€cannot€be€avoided,€the€social€plans€address€such€matters€asÏan€orderly€process€for€lay„offs,€redundancy€payments,€job€counselling,€job€search€assistance€andÏtraining€for€new€and€expanding€occupations.€In€France,€for€example,€companies€employing€moreÏthan€50€workers€are€legally€required€to€draw€up€a€social€plan€to€limit€the€number€of€redundancies.ÏSuch€was€the€case€recently€with€Moulinex,€a€major€household€equipment€manufacturer€in€France.ÏThe€company€announced€its€intentions€in€June€1996€to€make€2,100€workers€redundant€over€threeÏyears,€close€two€sites€in€Normandy€and€transfer€the€head€office€west€of€Paris.€It€then€signed€anÏagreement€with€its€five€trade€unions€in€January€1997€which€reduced€the€number€of€planned€jobÏcuts€from€2,100€to€1,468€through€a€combination€of€reductions€in€working€time€and€earlyÏretirement.€Working€time€will€be€reduced€by€15€per€cent€for€750€workers,€from€39€hours€to€33Ïhours€and€15€minutes€per€week,€paid€at€97.2€per€cent€of€the€base€salary€and€organized€on€aÏvoluntary€basis.€Early€retirement€will€be€offered€to€718€employees€from€age€56.€To€prevent€theÏloss€of€600€more€jobs,€Moulinex€will€offer€a€relocation€package€of€Frs.€80,000€to€encourageÏworkers€to€move€to€other€locations€within€the€company,€such€as€the€production€plant€inÏNormandy.€The€primary€objectives€of€social€plans€such€as€that€concluded€at€Moulinex€are€toÏmaintain€employment€levels€wherever€possible,€and€reduce€disruption€and€facilitate€re„employmentÏwhen€lay„offs€are€unavoidable.Ô/¶*&‡*ä%Ôж*&2 /½  ÐÝ‚AÔÌÿêal€lÝÔ€?&O&Â?ÂÿÔÔ€ô&=&&?&OÔÓÓÓfæÓÓ 33ÓÝ  ÝÌà ï àIn€some€countries,€unions€have€been€divided€and€have€given€the€impression€of€being€moreÏconcerned€with€competing€against€each€other€than€with€defending€the€well„being€of€theirÏmembers.€By€trying€to€overcome€their€differences€and€presenting€a€united€voice,€they€would€beÏable€to€attract€more€members€and€gain€more€credibility€as€interlocutors€in€the€dialogue€with€theÏother€two€social€partners.Ð ”0ñ+7 ЇÝ‚é{ÿÝÔ€ô&=&&ô&=ÔÔ€ôŠ,– Š&ô&=ÔÔ€Š}ËŠ ŠôŠ,–ÔÔ€Š}ËŠŠŠ}ËÔÔ€Š}ËŠŠŠ}ËÔÔ€@Š@ ŠŠŠ}ËÔÓ  ÓÓfæÓÓ 33ÓÔ  ÔÝ  Ý4.6.2.à i àImproving€mechanisms€for€collectiveÐ £ Ðà ï àà Ò àbargaining€and€tripartite€dialogueÝ‚é{ÿ.ten€ÝÔ ÿ.ÔÔ^êGŒéÔÌÔ€@&O& Š@Š@ÔÔ€@&O&&@&OÔÔ€ô&=&&@&OÔÔ€ô&=&&ô&=ÔÔ€ô&=&&ô&=ÔÔ€ô&=&&ô&=ÔÓ  ÓÓfæÓÓ 33ÓÝ  Ýà ï àAs€noted€earlier,€the€crisis€has€afforded€the€opportunity€to€strengthen€collective€bargainingÐ Ó0 Ðand€tripartite€dialogue€in€the€region.€This€opportunity€has€been€acted€upon€but€there€is€still€roomÏfor€improvement.Ìà ï àGovernments€should€take€the€lead€in€promoting€the€practice€of€collective€bargaining€andÏtripartism.€They€can€do€this€by€ensuring€that€there€is€an€appropriate€legislative€framework€whichÏenables€effective€use€to€be€made€of€collective€bargaining€and€tripartite€dialogue.€With€respect€toÏtripartite€discussions,€governments€can€ensure€that€these€are€held€frequently€and€that€they€are€ofÏgood€quality.€The€latter€will€depend,€in€large€measure,€on€ensuring€the€availability€ofÏinformation.€It€will€also€be€important€to€raise€the€credibility€of€the€tripartite€process€itself.ÏRegardless€of€whether€the€tripartite€body€has€statutory€powers€of€co„decision,€or€is€just€advisory,Ïit€is€only€when€the€tripartite€process€actually€influences€decision„making€and€shapes€policy€thatÏit€will€be€credible,€and€will€be€so€judged€by€public€opinion.Ìà ï àFor€the€social€partners€to€play€a€constructive€role€in€collective€bargaining€and€the€tripartiteÏprocess,€there€is€also€a€need€to€strengthen€institutional€capacity.€For€example,€trade€unions€needÏto€develop€their€capacity€to€formulate€policies€that€will€enable€them€to€deal€effectively€with€theÏeconomic€crisis.€Unless€officials€of€the€national€trade€union€centre€have€the€analytical€capacityÏto€assess€policy€options,€they€cannot€expect€to€have€an€authoritative€voice.Ìà ï àThe€impact€of€collective€bargaining€and€tripartite€dialogue€also€depends€on€the€credibilityÏof€its€constituent€parties.€Worker€and€employer€bodies€that€lack€either€independence,€members,Ïor€both€can€scarcely€be€seen€as€true€representatives€of€labour€and€management.€As€indicatedÏabove,€laws€and€practices€that€constrain€the€independence€and€growth€of€workersðð€and€employersððÏorganizations,€or€that€breed€fragmentation€and€the€consequent€inability€to€speak€with€one€voice,Ïare€impediments€to€the€growth€of€tripartism.€Where€the€legal€and€policy€frameworks€areÏappropriate,€it€is€incumbent€on€worker€and€employer€bodies€themselves€to€organize€as€much€ofÏtheir€potential€membership€as€possible,€and€to€ensure€that€the€views€of€their€members€areÏrepresented.Ìà ï àImproving€the€levels€at€which€collective€bargaining€and€tripartite€dialogue€can€occur€mayÏalso€be€necessary.€In€most€countries€of€the€region,€there€remains€a€relative€vacuum€of€interestÏrepresentation€between€the€national€and€enterprise€levels.€It€is€important€to€create€and€strengthenÏthe€frameworks€for€social€dialogue€at€intermediate€levels,€so€as€to€be€able€to€address€local€orÏsector„specific€problems€more€effectively.€The€recent€creation€of€bipartite€industrial€relationsÏcommittees€at€provincial€level€in€Thailand€is€a€promising€example.€Another€possibility€would€beÏto€encourage€tripartite€representation€in€the€local€public€employment€services.€The€developmentÏof€dialogue€at€industry€level€could€be€useful.€Tripartite€bodies€at€this€level€could€serve€as€a€sortÏof€informal€employment€exchange,€as€a€means€of€diffusing€learning€and€experience€in€workplaceÏcooperation,€or€as€a€mechanism€for€identifying€training€needs€common€to€the€industry.Ìà ï àThe€development€of€social€dialogue€at€intermediate€levels€of€course€assumes€that€the€socialÏpartners€are€organized€and€structured€at€these€levels.€This€is€often€not€the€case.€Separate€effortsÏat€institution„building€may€therefore€have€to€precede€joint€efforts€at€dialogue.ÌÌÝ‚é{ÿÝÔ€ô&=&&ô&=ÔÔ€ôŠ,– Š&ô&=ÔÔ€Š}ËŠ ŠôŠ,–ÔÔ€Š}ËŠŠŠ}ËÔÔ€Š}ËŠŠŠ}ËÔÔ€@Š@ ŠŠŠ}ËÔÓ  ÓÓfæÓÓ 33ÓÔ  ÔÝ  Ý4.6.3.à i àBuilding€up€a€new€climate€ofÐ *m%* Ðà ï àà Ò àindustrial€relationsÝ‚é{ÿÔ>ten€ÝÔ Î?ÔÔ^W+´&ù*V&ÔÌÔ€@&O& Š@Š@ÔÔ€@&O&&@&OÔÔ€ô&=&&@&OÔÔ€ô&=&&ô&=ÔÔ€ô&=&&ô&=ÔÔ€ô&=&&ô&=ÔÓ  ÓÓfæÓÓ 33ÓÝ  Ýà ï àBuilding€up€a€new€climate€of€industrial€relations€that€emphasizes€dialogue€and€the€search€forÐ @,', Ðagreed€solutions€over€confrontation€and€the€imposition€of€diktats€is€just€as€important€as€settingÏup€an€appropriate€institutional€framework.€The€current€crisis€has€engendered€a€sense€ofÏemergency€and€the€realization€that€unless€solutions€that€are€fair€and€acceptable€to€all€partiesÏconcerned€are€found,€social€cohesion€will€be€severely€endangered.€Surmounting€the€distrust€andÏadversarial€attitude€which€traditionally€prevailed€between€them,€governments,€employersððÐ ‚0ß+1 Ðorganizations€and€unions€are€trying,€with€different€degrees€of€intensity€and€success,€to€come€upÏwith€measures€to€minimize€the€social€impact€of€the€crisis€and€to€lay€the€basis€for€economicÏrecovery.€It€is€to€be€hoped€that€this€trend€will€continue€and€that€a€new€industrial€relations€cultureÏis€emerging,€a€culture€of€dialogue,€recognition€of€and€respect€for€each€otherððs€differences€and€ofÏa€willingness€to€search€for€compromises€that€can€strike€an€acceptable€balance€between€economicÏconsiderations€and€social€needs€and€ultimately€maintain€social€cohesion.ÌññÔ% € ÔññññññÔ% € Ôññññ