Labour administration, labour inspection and the ILO-current

regulatory perspectives

Giuseppe CasaleDirector, LAB/ADMIN

Labour Administration and Inspection ProgrammeILO, Geneva

http://www.ilo.org/labadmin

• Labour administration and labour inspection general item on the agenda of the 100th ILC (June, 2011).

• Last discussions in 1973 (Experts’ meeting), 1978 (Adoption of Convention No. 150), 1997 (LA General Survey) and 2006 (LI General Survey).

• Recent crisis has highlighted the role of LA, but debt crisis and austerity measures challenge its future.

• Substantial differences between regions, sub-regions and countries.

• Increased expectations, but funds limited.

Background

ILO concept of labour administration

• LA: all public bodies involved in labour policy.

• ILO and Labour Administration.

• ILO and Labour Inspection.

• Social Partners and Labour Administration.

International Labour Standards

• Historically, labour inspectorates among the first labour institutions

• Founding of the ILO (1919), creation of Ministries of Labour

• Labour Inspection Recommendation, 1923 (No. 20)

• Labour Inspection Convention, 1947 (No. 81)

• Labour Inspection (Agriculture) Convention, 1969 (No. 129)

• Labour Administration Convention, 1978 (No. 150)

• Protocol of 1995 to the Labour Inspection Convention, 1947

• Occupational Safety and Health Convention, 1981 (No. 155)

• Promotional Framework for OSH Convention, 2006 (No. 187)

Relationship between institutions and policies

• At the international level, institutions often considered secondary, as if they only reflect policies, yet they also shape them.

• One question is how formal policy reforms (changes in institutional set-up) create: a) deliberate policy changes; and b) indirect and unintended effects?

• For example, policy impact of changing mandates of labour ministries (employment agendas, vocational training, labour migration…).

• Effects (and risks) of “agencification”, decentralization and outsourcing of core services…

• Delicate balance between policy making and service delivery.

New operating conditions

• Difficult economic environment: high and persistent unemployment, increased inequality and austerity measures.

• Key issue of compliance because of diversified labour force as well as multiplicity of employment relationships, informal economy.

• Democratic reforms, spread of market economy and need of policy coordination: the role of regional groupings and of global players (ILO, WB, IMF, OECD).

• More transparency: increased interest in governance.

• More pragmatic political thinking in some quarters.

• Recent crisis, an opportunity to create and adapt policies and institutions.

Main themes of the ILC Report

Policy making capacity of labour administration and its role in national development.

Modernisation of labour administration in the post-crisis environment.

Labour Inspection: Trends and Challenges.

Policy making capacity

• Place of MoL within the Government and within the national labour administration system.

• Historically, a specific mandate: protective legislation and promoter of sound labour relations.

• More involvement in employment and macro-economic policies after WWII.

• Today, what is the impact of MoL on government policies to make them employment-centred?

• What is the range of MoL? what are the factors of influence?

• Revisited mandate: strategic and coordination capability, institutional capacity, co-operation with E/W organizations.

Policy making capacity (contd.)

• Mandate: important recent changes and organizational “experiments”.

• Coordination through policy documents and through coordination organisms, including economic and social councils and similar bodies.

• Institutional capacity: budgetary allocations, human resources, material equipment, and working with data and appropriate internal structures.

• Even if not directly comparable, there are substantial gaps between regions.

• Gaps between policy strategies, laws and reality.

• Focus on better use of existing resources, but critical mass necessary to make an impact.

• Co-operation with W/E organizations: asset of MoL. Political links and joint interests, but also working relationship, provision of data and other services.

• Right balance between protection and developmental role.

The performance of labour administration

• Paradox of increasing expectations and budgetary constraints: do better with existing resources. Large scope for improving governance.

• Two approaches to better performance: traditional methods based on better control and on the promotion of traditional public sector values or the use of private sector methods.

• New Public Management (NPM) since the 1990s: incentives to managers to make decisions and allocate resources to produce better outcomes.

• Management by objectives (MBO): establishing long-term objectives and more concrete outputs (goods and services) and outcomes (impacts).

The performance of labour administration (contd.)

• Performance contracts as a link between achievements of organizations, its units and individuals (contractualism). Importance of qualitative indicators.

• Evaluation of policies: objective and systematic assessment is needed.

• Performance related pay compared to centrally established and incremental salary scales with promotion as the main incentive. Mixed results: increased motivation, but also undermined morale, jealousies and reduced cooperation.

• Preconditions in terms of a mature, trust-based service culture are necessary.

The performance of labour administration (contd.)

• Public-public partnership necessary taking into account the multi-disciplinary character of labour policy and the involvement of various public bodies.

• For examples: job-creation programmes; sharing data-bases; cooperation of various inspection bodies and the regulation of labour migration.

• Public-private partnership in various fields of social services, job brokering, vocational training, research...

• Requirements in terms of monitoring, evaluation, guarantee of individual rights, etc.

• Appropriate managerial structures/methods in labour administration. The issue of managerial support services.

• Human resources management: effects of fair salaries, training, proper career planning and staff stability. The issue of political and administrative appointments.

The performance of labour administration (contd.)

• Use of new technologies:

Widespread of computers and of internet: potential to improve the efficiency and effectiveness of labour administration (e.g. raising awareness, dissemination of information, transparent and consultative policy making).

Adoption of new technologies remains extremely uneven between countries.

Challenges for developing countries: inadequate financial resources, underdeveloped ICT infrastructure, lack of expertise and literacy levels. Basic administrative reforms may be more efficient than ambitious investments in ICT.

Large and effective uses of simple tools adapted to country’s technological development (e.g. mobile phones).

The performance of labour administration (contd.)

• A case study: modernization of PES.

• PES given a pre-eminent role, not only in delivery of services, but also in developing and testing employment programmes. Consequently, under pressure to make their services more efficient.

• Institutional changes to achieve better coherence between active and passive labour policies. Integration of placement services and unemployment benefit administration.

• Better use of new technologies (internet, on-line service and data management).

• Customer service orientation.

• Sophisticated indicators in performance measurement.

• Delivery of services outsourced in some countries (Australia, Netherlands, UK): mixed results. What is the impact on employment policies?

Labour Inspection: Trends and Challenges

• LI – essential part of the labour administration system exercising the fundamental function of law compliance.

• Fundamentally, a public responsibility; the risk that private initiatives (e.g. CSR) could undermine the role of national inspectorates.

• Significant role of social partners: advocacy, awareness raising and strategic planning.

• Collaboration with other stakeholders (police, social security services, tax agencies, etc.) can improve its effectiveness.

Labour Inspection: Trends and Challenges

(contd.)

• Traditional and new challenges.

• Poor conditions in most developing countries threatening integrity and independence of the staff.

• Informal economy, domestic work, undeclared work (e.g. construction, agriculture).

• Regulation and prevention of child labour.

• Discrimination issues: gender, HIV/AIDS, race, national extraction, etc.

Labour Inspection: Trends and Challenges

(contd.)

• Necessity to adapt to the changing world of work.

• New inspection skills and strategies for prevention needed (complexity of industrial processes, new illnesses, mental stress, outsourcing, complex supply chains).

• Improved data collection, use of special inspectors, involvement of social partners and media.

• Cost cutting efforts of enterprises during the crisis: inspection’s focus on wage payments and working time arrangements.

• Fight against undeclared work: inspection in specific sectors, strengthening of sanctions, promotional campaigns.

Labour Inspection: Trends and Challenges

(contd.)

• Improving administrative and legal means of action.

• Planning programming and reporting. Standardized administrative reports necessary. Management training of inspectors.

• Involvement of social partners at the national level to encourage more targeted action (OSH issues).

• Sanctions and remedies to fit a country’s regulatory and economic conditions.

• Timely judicial proceedings and due process.

• However, deterrence measures alone are not enough: a good mix of prevention and sanction to be employed, including self-assessments and monitoring measures.