1. Introduction:
work as a basis for a life in dignity and an inclusive society
1. Work is an essential aspect of human life. It is
central to most people’s well-being by linking individuals into
communities and providing them with means of subsistence, development
and self-accomplishment. The importance of work in society has been
recognised by enshrining the right to work in the Universal Declaration of
Human Rights and, more generally, in international human rights
law, such as the International Covenant of Economic, Social and
Cultural Rights.
2. Whilst the Universal Declaration asserts that “[e]veryone
has the right to work, to free choice of employment, to just and
favourable conditions of work and to protection against unemployment”,
the Covenant emphasises the right to work from the angle of individual
freedoms, socio-economic development and States’ obligations “to
achieve the full realization of this right”. The International Labour
Organization (ILO) further insists on the need to respect a full
range of labour-related rights which make work decent and accessible
for all.
3. Across Europe, there is a growing anxiety about the erosion
of labour rights, increased job insecurity and the lack of quality
employment prospects, notably for young people. The vicious circle
of economic stagnation, market deregulation and fiscal austerity,
as well as the “dark side” of globalisation, bite hard into the competitiveness
of national economies and the living standards of the population.
Although, on the one hand, globalisation has created new economic
opportunities for all (thanks to freer international trade and more dynamic
labour markets), it has, on the other hand, also triggered a “race
to the bottom” on salaries, social protection and employment conditions,
resulting in unbearable increases in inequalities.
4. It is particularly worrying that Europe’s trading partners
in many developing countries perceive protection of human rights
(including socio-economic rights) and the environment as protectionism
rather than as a development path to follow. These divergences escalate
asymmetries and tensions between countries, distort a global level
playing field and lead to
de facto social,
and in some cases also environmental, dumping.
5. Bearing in mind the Council of Europe’s core values relating
to the promotion of human rights, democracy and the rule of law,
as well as societal challenges stemming from globalisation, I intend
to explore avenues for action by European countries towards redressing
global imbalances and securing decent work for all. On the basis
of relevant instruments and activities of this Organisation, the
European Union and other international organisations (such as the
ILO, the World Trade Organisation (WTO) and the International Trade Union
Confederation), as well as independent research sources, I will
highlight policy options for achieving a better balance between
economic development and social solidarity.
2. The concept
of decent work and the ILO’s Decent Work Agenda
6. Decent work – as a concept and an agenda – was introduced
by the ILO in 1999 and has since then been widely endorsed by the
international community. As the ILO puts it, “decent work sums up
the aspirations of people in their working lives. It involves opportunities
for work that is productive and delivers a fair income, security
in the workplace and social protection for families, better prospects
for personal development and social integration, freedom for people
to express their concerns, organise and participate in the decisions
that affect their lives and equality of opportunity and treatment
for all women and men”. In short, decent work refers to productive
work in conditions of freedom, equity, security and human dignity.
7. Numerous studies show that for many people work, in particular
decent work, is a route for escaping poverty and ensuring a sustainable
livelihood. Better jobs lead to a better life for all: living in
dignity for individuals translates into quality development for
the communities they live in, thus building more cohesive, more
inclusive and more prosperous societies. The ILO’s Decent Work Agenda
hence lays emphasis on four fundamental aspects:
- access to employment and fair
remuneration;
- rights at work (notably respect for the core labour standards);
- solidarity through social protection;
- communication at work through social dialogue.
8. Whereas employment opportunities and job creation largely
depend on the sound performance of national economies, access to
jobs, remuneration policies, due respect for labour norms and adequate
social protection rely considerably on the social contract between
stakeholders (businesses, government and civil society). Despite
governmental efforts so far, an estimated 1.1 billion people, including
some 200 million unemployed persons, live in poverty worldwide.
In Europe, half of poor households rely on one wage earner in the
family.
9. The ILO therefore pleads for making decent work a global goal
and a national reality with a view to ensuring equity and social
progress, as well as eradicating poverty. This clearly requires
more international co-operation and broader solidarity between richer
and poorer States, not least towards honouring commitments in the
framework of Millennium Development Goals (MDGs). According to the
ILO, there is an urgent need to create some 600 million jobs over
the next decade so as to generate sustainable growth and maintain
social cohesion.
It
is therefore essential that decent work challenges be adequately
taken into account in the new development framework on MDGs beyond
2015.
3. Decent work in
relation to European social standards, objectives and integration
10. European countries share a long history of commitment
to social policies that concern more or less directly various aspects
of decent work. The European social model born in the post-war years
combines national commitments to economic development and full employment
with adequate social protection for the whole population and social
cohesion. Thus, the 1957 Treaty of Rome already contained provisions
on working conditions, standard of living, equal pay for equal work,
social security for migrants and increased mobility of workers,
which paved the way for the adoption of the European Social Charter
(ETS No. 35) in 1961 and the revised European Social Charter (ETS
No. 163) in 1996.
11. If the fundamental Council of Europe treaty – the European
Convention on Human Rights (ETS No. 5, “the Convention”) focuses
more on civil and political rights, some of its articles (notably
Articles 3, 4, 5, 8, 9, 10, 11 and 14) outlaw certain practices
that might occur in employment (inhuman or degrading treatment, forced
labour, infringements concerning personal security, freedom of conscience,
expression and association, privacy and discrimination).
12. The European Social Charter (“the Charter”) complements the
Convention as regards social and economic rights: it not only covers
labour-related rights, but also links them with legal and social
protection, employment conditions, vocational guidance, training
and free movement of persons. However, unlike the Convention, the
Charter does not provide for consideration of complaints by individuals
on alleged violations of the Charter by States that are bound by
it. Under the Charter, the Additional Protocol (ETS No. 158) provides for
a system of collective complaints,
but only 15 member
States are bound by this procedure.
13. In the European Union, free movement of people (and workers)
is one of the four pillars of the Single Market launched in 1993.
It was then that the first fears were voiced about social dumping
seen as a “side effect” of the Single Market. Social dumping is
understood as any practice – in breach of national or international
social laws in force – aimed at gaining economic advantage, particularly
in terms of competitiveness.
14. Converging concerns about unemployment and competitiveness
then prompted the launching of the European Social Agenda in 2000
(as part of the Lisbon Strategy), with emphasis on the need for
a new balance between flexibility and security in a changing global
context, as well as insisting on the modernisation of social protection
systems and the fight against social exclusion.
15. That said, wide social disparities have been and remain a
reality in Europe, as full employment, better living and working
conditions, social dialogue and equal treatment of men and women
prove difficult to achieve in practice. If the “Iron curtain” now
belongs to Europe’s history, socio-economic divides persist and
push many Europeans to become migrant workers who more easily accept
employment conditions that fall below what is qualified as decent
work. Inexistent or insufficient co-operation between labour inspectorates
of different European countries and weakened capacities because
of budget austerity reduce opportunities for spotting abuses of
labour legislation, notably the exploitation of migrant workers.
16. Much resentment and controversy was stirred up across Europe
in recent years by the adoption of the European Union services directive
(Directive 2006/123/EC), or the so-called “Bolkestein Directive”
(named after the Dutch commissioner who designed it), in 2006. Opponents
of this instrument feared that it could lead to unfair competition
between workers from various European countries with different levels
of wages and social protection, whilst supporters argued that it
would help improve the provision of services across the continent.
Indeed, services represent about 20% of intra-European Union trade,
but about 70% of jobs.
17. Seven years later, results are viewed as mixed. Despite safeguards
to protect employment conditions (in particular through collective
agreements) and positive changes in national regulatory policies
(such as the removal of protectionist or discriminatory clauses),
there have also been negative trends of the downward levelling of
salaries and social coverage, mainly for posted workers, – away
from the ideal of “same work–same salary”. This is more visible
in the cross-border transportation services
and the construction
sector. Clearly, market liberalisation, which is important for European
economic integration, is not sufficiently synchronised with progress
in harmonising social provisions, in particular as regards worker-related
rights and their protection. This is all the more pertinent in the
light of ongoing globalisation and the economic crisis.
4. Defending European
social standards in the context of globalisation and economic crisis
18. Globalisation – in full swing since the mid-1990s
– has overall stimulated economic growth and, at times, growth in
employment. But not all jobs thus created have been of the sort
which secures a decent standard of living for workers and their
families or which helps fight poverty. The precarious and insecure
jobs of today slow down the creation of national wealth and cannot
secure sufficient funding of social protection systems, thus worsening
existing imbalances. The economic crisis has aggravated the situation
further.
4.1. A “jobs crisis”:
risks of crawling social dumping due to structural problems and
informal economy
19. A global trend for low-cost labour and maximising
the so-called shareholder value of businesses squeezes overall remuneration
levels and puts social protection systems under strain as revenue
diminishes but benefit payouts increase. This may eventually lead
to social dumping. Such practices mainly concern salaries, social
contributions, working hours, working conditions and costs linked
to the application of social regulations. Some corporate managers
deliberately choose to apply short-term profit-raising strategies
that lead to layoffs and a decline in product quality, which may
ultimately undermine the long-term competitiveness and viability
of European enterprises.
20. Moreover, although job losses since the onset of the global
crisis have been significant, unemployment was already high before
the crisis in many European economies. What used to be “ordinary
unemployment” turned into a more harmful structural problem with
the rates of long-term unemployed and youth unemployment soaring.
This means that labour market challenges will persist even as the
global economy recovers and that policy measures are particularly
needed to tackle structural unemployment in addition to stimulating
job creation in the short-term. At the same time, “international
labour standards must be preserved and promoted if the world is
to recover from the economic and employment crisis”, as the ILO
Director-General, Guy Ryder, stated in October 2012 when taking
up office.
21. A significant problem across Europe is undeclared work which
is part of the informal economy. As the Assembly highlights in the
report on “The Underground economy: a threat to democracy, development
and the rule of law” (
Doc.
12700), “Not only does … undeclared labour cause serious frictions
and security concerns in society in general, but it also distorts
the functioning of national welfare systems and erodes corporate compliance
with core labour standards”.
22. The report notes that Roma communities and other vulnerable
groups (such as minorities and migrants) face a particularly high
risk of “sliding into the underground economy where they become
locked in by seeking minimum subsistence”. This is particularly
true in times of economic crisis as job losses in the formal economy actually
give a boost to job creation in the informal sector. According to
the ILO, the share of informal employment remains high at more than
40% in two thirds of emerging and developing countries.
In
the developed countries, the informal economy accounts for about
18.4% of gross domestic product (GDP) (in 2013) in the European
Union and some 8.6% in Australia, Canada, Japan, New Zealand and
the United States.
23. Moreover, at least 21 million people worldwide are victims
of forced labour and exploitation in the sex industry, agriculture,
construction, domestic work, fisheries and manufacturing. This includes
9 million persons who were trafficked inside countries or across
borders. A quarter of all victims (5.5 million) are children under the
age of 18. In Europe, forced labour concerns an estimated 1.5 per
1 000 inhabitants in the European Union and 4 per 1 000 in countries
of central, eastern and south-eastern Europe.
4.2. The resurgence
of child labour in Europe
24. With a continuing rise in poverty and precariousness
of families, there is now more and more evidence of the return of
child labour in Europe. Undeclared and often underpaid work by children
is spreading in the poorest or otherwise disadvantaged urban and
rural areas of southern Europe and among migrants. This phenomenon
is not only in breach of the ILO’s core labour standards and the
European Social Charter (which bans child work under the age of
15), but is also depriving the children concerned of schooling and development
opportunities, as well as subjecting children to abuse, health hazards
and exploitation in criminal networks.
25. According to a local government report of 2011 on the child
labour situation in Naples and the surrounding Campania region,
more than 54 000 children left the education system between 2005
and 2009; 38% of them were under 13 years old. The Italian Confederation
of workers (CGIL) estimates that about 300 000 children aged 8 to
16 are illegally employed throughout Italy,
mainly in southern
regions. Another study of June 2013 confirms that no less than 5.2%
or 260 000 children younger than 16 are working.
26. Other countries in Europe, including Cyprus, Greece, Portugal
and Turkey, are concerned by the resurgence of child labour.
In July 2012, the Council
of Europe Commissioner for Human Rights warned that austerity measures
in Portugal has led to growing child poverty, rising school dropouts
and a resurgence of child labour. In his statement of August 2013,
the Commissioner referred to UNESCO
data showing that 29% of children aged 7 to 14 in Georgia are at
work whilst the figure for Albania is 19% and close to 1 million
as regards the Russian Federation. Overall, however, reliable data
on child labour in European countries – a “taboo subject” – is missing,
as both the Commissioner and the ILO admit.
27. It is particularly alarming that many of the children at work
in Europe are in hazardous occupations, be it in agriculture, construction,
small factories, family businesses or on the street. The Commissioner
thus points to the patterns of child labour in the tobacco industry
in Bulgaria or in harvesting activities in the Republic of Moldova,
as well as long working hours in the United Kingdom. Hazardous child
work is also reported in countries such as Albania, Georgia, Montenegro,
Romania, Serbia, Turkey and Ukraine.
4.3. Precarious employment
28. In addition to some 27 million unemployed in the
European Union alone (or about 11% of the workforce, but with youth
unemployment hitting 23% on average), Europe is facing a growing
problem of underemployment and precarious employment due to low-paid
and involuntary part-time jobs and short-term contracts.
This market rush for cheap labour leads
to a dramatic increase in poverty not only among the unemployed
and underemployed but also among full-time employed yet low-cost
workers (“the working poor”). Moreover, as the President of the
European Committee of Social Rights (ECSR) highlighted at the Council
of Europe Conference on the Eradication of Poverty on 17 October
2012, shrinking income from work and social benefits – due to the
economic crisis and austerity programmes – penalises entire families
through eroding access to basic public services, child poverty and
the loss of housing.
29. The latter trend is accentuated by the delocalisation of enterprises
to countries with lower labour costs and lower standards of social
protection – including among the Council of Europe member States,
which have widely differing average remuneration levels and social
regulations. Thus employment gains for one country nearly automatically
mean job and revenue losses in countries affected by delocalisation.
Moreover, the possibility of delocalisation is sometimes used by
employers to compress salary levels and employment conditions of
existing employees which leads to de
facto social dumping.
30. Similarly, social dumping also occurs when foreign workers
arrive from a country with lower social protection and wages than
those in the host country. These workers in search of employment
abroad will more readily accept unfavourable working conditions
in the host country than the local workers, which in turn creates a
negative pressure on average or minimum wages and terms of contract.
Moreover, in most cases, such conditions are illegal, because they
violate collective agreements that cover all employers and employees
of a sector.
31. At the same time, European countries need to address huge
external pressures due to the global open trade system that encourages
the mobility of workers, enterprises and capital, as well as competition
based on the lowest common denominator in terms of labour provisions.
It is in the interest of both European countries and their international
trade partners among developing countries to ensure that decent
work is systematically integrated into bilateral and multilateral
trade agreements. As stated in the final document of the 2012 Parliamentary
Conference on the WTO, “the trade-employment nexus needs to be critically
accounted for within the entire multilateral trading system, aiming
at full implementation of the ILO core labour standards and facilitation
of labour mobility”.
4.4. Fair competition:
“more and better jobs” versus protectionism
32. Persistent economic liberalisation – as part and
parcel of globalisation – has increased the interdependence of States
and has made States more dependent on international markets for
finance and trade. Whereas the role of the State in the national
economy has generally diminished, the power of enterprises, in particular
multinational ones, has grown significantly. Although States remain
key regulators domestically and main negotiators of international
agreements, large enterprises and some financial institutions wield
substantial influence in parallel on the terms of international
competition and economic integration.
33. This process has resulted in very uneven gains and losses
in terms of jobs, income and employment conditions, with overall
inequalities rising – both within and between States – to the disadvantage
of low-skilled, unqualified, less protected or less flexible workers.
According to the Organisation for Economic Co-operation and Development
(OECD), these disparities are mainly due to the developments in
labour markets, in particular as regards earnings, against the backdrop
of economic globalisation, skill-biased technological changes, institutional
and regulatory reforms (for example minimum wages have gone down)
and changes in employment patterns, household structures (more single-parent
families) and tax and benefit systems.
34. Research also shows an erosion of well-being at work and a
growing incidence of work-related burnouts, diseases, accidents
and even suicides due to intensifying professional pressures. French
researchers have identified a direct link between job insecurity
and suicides, while American psychologists have started to refer to
“econocides” to depict a wave of suicides related to the current
economic crisis and job losses.
Indeed, because of higher levels
of anxiety, depression and the feeling of hopelessness, as well
as lower self-esteem, the unemployed are two to three times more
likely to die by suicide than those who have jobs. Moreover, emotional
distress at work, workplace bullying, harassment and productivity
pressures also lead to more suicides, injuries, depression and deteriorating
health in general.
35. Workplace malaise and accidents seem to be more common where
workloads soar, companies undergo restructuring or corporate policies
neglect working conditions. Examples of work-related human disasters abound
both in Europe and among its trading partners, in particularly in
developing countries. For instance, since 2008, over 60 employees
of Orange, a French telecom company, committed suicide; at least
1 133 people perished and over 2 500 were injured (many disabled
permanently) in the collapse of a decrepit garment factory in Dhaka
(Bangladesh) in April 2013 and hundreds of workers die each year
in Chinese factories due to poor working conditions.
Social
unrest is also increasing in most countries compared to the pre-crisis
period: its risk is the highest among the European Union countries
(up from 34% in 2006-2007 to 46% in 2011-2012 out of 71 economies
for which relevant data is available).
36. This means that the benefits of open markets and free trade
are not automatic and are not shared evenly across society. As an
OECD, ILO, World Bank and WTO
joint
study points out, “if support for open markets is to be sustained,
… costs [associated with the reallocation of labour and capital]
need to be recognised and policies put in place to assist workers
and communities to adjust to a more competitive environment”.
37. More international competition and greater dynamism of global
competitors represent critical challenges for many European countries:
all actors of the value chain – enterprises, professional associations,
policy makers and workers – have to adapt to rapidly changing labour
market requirements whilst trying to consolidate social achievements
and progress. Global “rules of the game” that European countries
have accepted by joining the WTO provide little tolerance for protectionism,
or discrimination, of any sort. Yet the existing WTO rules together
with the binding dispute settlement mechanism do not adequately
take into account fundamental human rights and values, including
labour and social protection rights.
38. Europe which is a global reference for the defence of human
rights should work towards rooting human rights principles more
explicitly in the multilateral trade system. In short, European
countries ought to export not only goods and services but also the
values they cherish. The European Union in particular can use bilateral
trade agreements to promote fair trade and press its trading partners
to respect work-related rights.
In the
case of the free trade agreement between the European Union and
Colombia and Peru (in force since August 2013), some clauses refer
specifically to human rights and labour standards. For example,
Article 269 of the agreement states that both parties shall “promote
the development of international trade in a way that contributes
to productive employment and decent work for all”.
39. Developing countries, too, have a duty to contribute to a
“fair globalisation based on decent work”, as the ILO Declaration
on Social Justice for a Fair Globalisation of 10 June 2008 points
out. With this Declaration the ILO members agreed that the breach
of fundamental principles and rights at work cannot be used as a comparative
advantage and that labour standards should not be used for protectionist
purposes. A “win-win” situation for developing and developed countries
can be achieved if all States accept to adequately enforce core
labour standards and thus seek quality economic and social development.
European channels for the allocation of public procurement contracts
and development aid could be better used for fostering solidarity
and labour rights.
40. Moreover, Europeans should seek to compete more on the basis
of higher quality, added value, efficient regulation, better workplace
organisation and enhanced innovation rather than on a labour costs
basis, so as to take more advantage of the race to the top and not
to the bottom. Only fair, not abusive competition can be a vector
of social progress for Europe and its commercial partners. As the
Assembly debate on human rights and business in October 2010 has
shown, Europe needs to look more closely both at the rights of enterprises and
their responsibilities towards the society, not least in relation
to third countries.
In the light of growing public
consensus in this regard, corporate social responsibilities must
be clarified and strengthened – with adequate guidance from State
and European authorities. In this respect, the OECD Guidelines for
multinational enterprises offer a good framework which resumes the
expectations of the international community with regard to multinationals
in quite a detailed manner.
4.5. Implementing European
social standards to anchor decent work and combat social dumping
41. The European social standards are clearly stated
in the European Social Charter, which is the most authoritative
legal reference setting benchmarks for upholding the European social
model, notably as regards labour regulations and social protection.
The Charter currently binds 43 Council of Europe member States who ratified
it (except for Liechtenstein, Monaco, San Marino and Switzerland).
The European Union Charter of Fundamental Rights makes explicit
reference to the European Social Charter. However, European Union accession
to the European Social Charter would considerably improve the consistency
of national measures for implementing international commitments
and avoid
clashing signals being sent to member States on the alignment of
national legislation with European social standards and case law.
42. In 2012, the European Committee of Social Rights drew the
attention of our Assembly to the selection of cases of non-conformity
with the provisions of the Charter, including as regards labour-related
norms. As the Assembly’s rapporteur on decent work, I wish to highlight
the list of pertinent conclusions which appears in the appendix,
and urge parliaments of the countries concerned to adjust national
legislation. In this context, I also welcome the holding of the
very fruitful parliamentary co-operation seminar on 18 October 2013
by the Sub-Committee on the European Social Charter to alert members
of national parliamentary committees dealing with social rights
to the specific need to “improv[e] employment conditions of young
workers (under the age of 18)” in line with the Charter’s Article
7 (the right of children and young persons to protection). For 2012
and 2013, the European Committee of Social Rights found non-conformities
with the Charter’s provisions on “employment, training and equal
opportunities” and on “safe and healthy working conditions” in virtually
all countries.
43. In addition, we should note some of the most recent decisions
by the European Committee of Social Rights. The Committee thus ruled
that the right to strike is restricted in several sectors of the
Bulgarian and Swedish economy in a manner that is not in conformity
with the Charter and that the new apprenticeship contract (containing
abusive clauses on the termination of contract without due notice
and indemnity) and differential regulations on minimum salary for
young workers, introduced in 2010 as part of austerity programme
in Greece, are not in conformity with the Charter’s provisions.
Although the Committee’s decisions are not binding upon Parties
having accepted the collective complaints procedure, they nevertheless
constitute a legal obligation for the States concerned to adjust
their national legislative framework accordingly.
44. Among the member States, many countries have provisions for
minimum wages,
incentives for increasing
labour force participation and the duration of professional life,
as well as flexible arrangements on working time, legal guarantees
on “equal pay for equal work” and employer obligations on training
or retraining of workers. Some countries have also put in place
mechanisms of targeted support by “topping up” low salaries paid
in the private sector or providing tax breaks on employers’ social
contributions and job creation for the most disadvantaged (in terms
of employment) population groups such as young people and the disabled.
It is essential that such targeted support be clearly linked to
employer obligations to deliver, maintain and enhance employment
opportunities and conditions over the long term so that social objectives
are achieved fully rather than simply fuelling the profits of private
companies that fail to pay decent salaries.
45. Important policy pointers from the ILO appear in Recommendation
No. 202 of 14 June 2012, concerning national social protection floors
which set basic national social security guarantees derived from
human rights treaties and designed according to a country’s level
of development.
This
new international standard links social and labour policies more
closely and aims to expand essential health care and basic income
security (via cash transfers, public services or housing assistance)
with a view to preventing or attenuating poverty, vulnerability
and social exclusion. It explicitly targets people employed in the
informal, as well as the formal economy, who should all benefit
from social security. At the same time, support is given to the
growth of formal employment and the reduction of informality. The
European Union’s social protection committee included the social
protection floors in its work programme for intra-European and external
action.
4.6. Impact of deregulation
on labour and social protection: is flexicurity an answer?
46. Given long-standing tensions between labour markets’
demand for greater flexibility and the aspiration of the population
for social security and protection, flexicurity appeared as a providential
solution in Europe offering “the best of both worlds”. Initially
a feature of Danish and Dutch reform programmes in the 1990s, flexicurity
was embraced by the European Union in 2007 as a labour market strategy.
47. The flexibility aspect, however, had gained ground over the
security aspect much earlier in a number of European Union countries
(notably Germany, Spain and the United Kingdom) and across central
and eastern European countries (as part of their transition to the
market economy). A change of circumstances with the economic crisis
has rapidly eroded social protection programmes, thus leading to
an even greater imbalance between flexibility and security. In the
case of zero-hour-contracts in the United Kingdom, flexibility is
pushed to the extreme. Here, employees are “on call”, which means
there is no guaranteed level of regular earnings, working hours
or social coverage.
If
flexicurity is to remain a valid strategy, there is an urgent need
to redress that balance in many European countries grappling with
unemployment, poverty and austerity budgets.
48. In this context, the Swedish experience
with
deregulation, budget discipline and a vast overhaul of the welfare
State offers some interesting insights for other European countries.
From a stagnant benefit-based country in the 1990s, Sweden transformed
itself into a vibrant economy with still low inequalities, even
if these have increased rapidly in recent years. A key to this success
has been a strong social dialogue between trade unions and employers
for negotiating differentiated minimum wages in various sectors
and an optimised redistribution by the State whereby lower taxes
on labour (especially low-skilled labour) and modest benefits encourage
everyone to work. A trap of low-wages in low-skilled jobs is mitigated
by strong and highly efficient public services that support child-care,
education, training and job-search amongst others. Finally, the
national pension system’s benefits have been indexed to the country’s
economic growth and hence to budget revenue.
5. The need for better
recognition of social capital and an integrated approach to decent
work and development
49. Work is an increasingly central part of our daily
lives. Even the boundaries between work and private life get blurred
as modern technologies have enabled real-time connectivity with
a workplace and facilitated teleworking. Work-related decisions
by both employers and employees thus have major repercussions on society
at large. Working people can no longer be perceived only as “expenditure
items” in bookkeeping. Their work creates value for society as a
whole and their role deserves to be recognised fully as social capital
which is just as crucial for development as physical capital.
50. The world of work and society as a whole have to better value
people for their potential: modernising a social contract by embracing
an integrated approach to decent work and development is a must
if we want to preserve social peace and cohesion. The structural
changes our society is going through might seriously damage the
social fabric, but they can also trigger decent-work-based strategies,
using interdependencies between countries to press for more balanced
development.
51. Social media and networking have transformed the way people
get informed, communicate and work. These tools can also help put
pressure on governments to mainstream decent-work strategies through
policies, and on employers to respect fundamental rights at work.
In an information age, it takes seconds for the news on abuses of
labour rights to reach every household and for civic revolt to snowball
into sanctions against the public image of abusers. This power of
the grass-root level should not be underestimated – first and foremost –
by the working people themselves. International institutions too
can use digital channels more actively to organise public campaigns
for decent work in order to sustain or to stimulate governmental
action.
52. Corporate actors are understandably sceptical and wary of
any interference with “business as usual” and workers’ demands.
But it takes two to tango: every working person is also a potential
client that no business logic can afford to neglect. Happy, committed
and loyal employees create more value for a company because of increased
efficiency, creativeness that is rewarded and less absenteeism or
work-related accidents. Obviously, in most cases, what is good for
employees is also good for the company. Small enterprises, which constitute
the vast majority of employers across the globe, should receive
clear policy signals from governments in favour of job creation,
stronger corporate ethics and investment in people.
6. Concluding remarks
on strategies for the future
53. Decent work is not a utopia of policy makers. If
we want to build an inclusive and prosperous society, everyone must
have a fair chance to participate and contribute through work that
is respectful of fundamental rights. The first task of politicians
is therefore to stimulate employment, job creation and job preservation through
active, if not proactive, structural policies. These concern not
only macroeconomic tools, but also educational systems, public services
and social protection models. Both theory and practice confirm that minimum
salary provisions and social protection floors are essential for
balancing public and private sector efforts to provide just remuneration
for work in line with the standard of living in a country.
54. The key aspect of the decent work agenda is about the protection
of rights at work. This is the most complex, multifaceted and challenging
task. Governments have no choice but to take the realities of globalisation
into account so as to help employers adjust to competitive pressures
and ensure a level playing field for small, medium and large enterprises
alike. National taxation instruments have to promote fair competition.
Tax avoidance by large enterprises and increasingly unequal remuneration
of capital and labour are the biggest enemies of social justice
and equitable sharing of benefits from global trade.
55. Only a healthy and safe working environment enables working
people to realise their full potential. In this area, governments
should make no concessions on occupational safety standards and
must ensure that these are thoroughly implemented. Effective and
regular labour inspections are therefore crucial and must be supported
at all times. They have a special role to play in detecting forced
labour, irregular employment and abuses of working conditions (notably
as regards working hours, workplace safety and special protection
for vulnerable persons, such as disabled people, minors and migrants).
Given the growing levels of stress at work, employers should be
encouraged to review workplace organisation with a view achieving
a more rational sharing of workloads, skills and tasks.
56. Child labour is still an issue in the world, where one in
ten children are affected, and also in Europe, where data is patchy
but nonetheless alarming. Bearing in mind a ban on child work under
the age of 15 – as stipulated in the European Social Charter –,
it is essential that the Council of Europe member States carry out an
in-depth analysis of the situation. Spotting patterns of child labour
in hazardous occupations is a major priority for tackling root problems
in domestic labour regulations and practice, and also child poverty.
57. In most countries, young people are confronted with special
difficulties in finding jobs with satisfactory employment conditions.
Increasing flexibility of contractual policies, coupled with adequate
unemployment benefits, is justified by flexicurity strategies, but
it should not be allowed to perpetuate precarious terms of employment
and discriminatory practices. Additional safeguards in labour legislation
are necessary to guarantee a minimum level of in-work security and
social protection for young workers.
58. Solidarity mechanisms for improving social safety nets, re-skilling
and the mobility of workers are not an exclusive domain of governments.
Redefining a social contract in modern society requires a stronger commitment
of the private sector, alongside public authorities and civil society,
to uphold the decent work agenda. This implies that obligations
of enterprises should be strengthened as regards corporate social responsibility
and ethics, in particular concerning the relationship with sub-contractors
and sourcing policies in third countries where the risks of exploitation
of workers are substantial.