Diagnosing Core Labor Standards in the CAS I. Four Elements of a Good Analysis
II. Recent CAS Treatment of CLS
I. Four Elements of a Good Analysis
A comprehensive treatment of core labor standards will include the following elements as discussed below: legal and institutional assessment; factual assessment; actions taken to rectify abuses; and World Bank strategy for addressing potential negative impacts on the country's development due to its treatment of CLS. Information for the diagnostic aspects (the first three) should be available in the sources discussed in Step 2. World Bank response to detected violations should fit within the context of the overall objectives of the CAS and, to the extent feasible, be developed in collaboration with the ILO.
1. Legal and institutional assessment. This should include: (a) the ratification status of ILO core Conventions; (b) a brief assessment of national laws relating to the four core labor standards; and (c) discussion of enforcement provisions and government capacity as relevant (e.g. inspection personnel). (Keep in mind that it is possible for a country to uphold the principles of the core labor standard without having ratified relevant conventions.)
2. Factual assessment. This section should attempt to report briefly what is happening in practice regarding the core standards, despite what protections might be guaranteed in law. For example, how prevalent is child labor? Are workers prevented from organizing? Are women or minorities particularly disadvantaged in certain sectors? Reports from the sources discussed in Step 2 provide information for this type of assessment.
3. Actions taken to rectify abuses. Any notable government action to address violations of labor standards should be mentioned. For example, governments will frequently have programs addressing child labor. The strength and independence of the labor inspectorate is also important.
4. Bank Strategy. Depends on CAS objectives. The World Bank does not intend to act as an enforcement body of the ILO; nonetheless, in cases where non-implementation of one or more core standards negatively impacts the country's prospects for development, Bank staff should address these issues in dialogue with that country and should collaborate with the International Labor Organization in such dialogue and on labor issues more broadly. In some cases (e.g. child labor) IDA's lending program may directly address CLS issues.
For more information on the World Bank's treatment of core labor standards, see The World Bank and Core Labor Standards. See also the IDA Recommendationson core labor standards.
II. Recent CAS Treatment of CLS
The location of the core labor standards (CLS) discussion in the CAS is, of course, at the discretion of the country team and staff person preparing the document. In recent CAS' discussing CLS, the issue has been addressed in various contexts. For some, it is considered in terms of governance; others relate it to FDI or business climate; and still others set it apart as a sectoral issue. In the IDA 12 report, it is listed as a "cross-cutting issue" and discussed in terms of investing in human development and insuring the poor access to resources and opportunities. Depending on the strategic focus of the CAS, the CLS discussion may also fit in the context of human development, improving competitiveness, or labor market reform.
The following are examples of CLS analysis in recent CAS'. Placement of this discussion in the CAS varies, as does treatment of each standard according to the priorities of the CAS and the country context.
Bangladesh, February 8, 2001
Core labor standards are discussed in the first section of the CAS under the heading "Poverty and Social Issues." The CAS briefly outlines the status of each standard and makes the case for the Bank operational focus on child labor. Elsewhere, the CAS cited the negative impact of some trade unions in blocking reforms and further discussed child labor as a priority in Bank advocacy with the government.
Excerpt from Bangladesh CAS Bangladesh has ratified six of the eight International Labor Organization conventions on core labor standards, but not the two pertaining to child labor. Despite the formal ratification, the Government still restricts freedom of association in export processing zones to attract foreign investment. Discrimination against women and religious minorities in the labor market and extensive trafficking in both women and children primarily for forced prostitution continue,2 notwithstanding efforts by the Government to address these social problems. The issue of child labor is particularly worrisome because 6.3 million children below 14 years of age, constituting 12% of Bangladesh's labor force, are working and out-of-school. Improvement is, however, expected in the future as a result of the growing support of the Government, civil society and international organizations for efforts to abolish child labor and provide working children with alternatives that would allow them to resume schooling.
2 Internationally Recognized CoreLabor Standards in Bangladesh - A Report for the World Trade Organization General Council Review of Trade Policies of Bangladesh (Geneva, M#2-4, 2000).
Armenia, April 25, 2001
Core labor standards are discussed in the context of social protection and labor market issues covered in the section on the government reform agenda.
Excerpt from the Armenia CAS Core Labor Standards. Armenia has a good record on core labor standards, including: (i) elimination of all forms of forced or compulsory labor; (ii) effective abolition of formal use of child labor; (iii) equal opportunity and non-discrimination in employment; and (iv) freedom of association and the right to collective bargaining. Laws regulating trade unions and collective bargaining have substantially met the core labor standard goals, and the Confederation of Trade Unions of Armenia has negotiated agreements on job security, salaries, pensions, and social assistance. Binding contracts between workers (with representation from grass-roots union organizations) and employers are common in large enterprises, but have not yet taken firm root in smaller enterprises.
Cambodia, February 7, 2000
Here core labor standards are addressed in the context of good governance. Child labor is additionally addressed in terms of poverty and risk-coping mechanisms of the poor. Excerpt from Cambodia CAS The basic legal framework for good governance is being developed. Many laws and regulations have been drafted. A Constitution was adopted in 1993. Civil, criminal, and commercial codes have been prepared, and key pieces of legislation such as Land, and Forestry laws are in progress supported by different donors. There is substantial compliance with core labor standards. A Labor Law was enacted in 1997. Cambodia has also ratified International Labor Organization (ILO) conventions on forced labor (29), equal pay for equal work (100), freedom of association (87), and minimum wage (138). Problems of gender pay differentials and continued use of child labor (see below) are still reported, however. Continued and increased compliance will positively impact Cambodia's ability to export garments - its principal source of foreign exchange - to the US in particular. In this regard, Cambodia was one of the first countries to have signed a textile agreement with the US that ties its import quota with labor standards, based on a bonus system. There are still major gaps in the legal framework in areas such as civil service accountability, torts, commercial agreements, secured transactions (essential for the viability of the financial sector), and dispute resolution, including commercial arbitration and foreign arbitral awards, and in the area of land and property rights.
India, March 22, 2001
A box on core labor standards is inserted into the section entitled "Health and Education for All." Excerpt from India CAS India has ratified four of the eight International Labor Organization conventions on core labor standards. The four not ratified concern the freedom of association, the right to organize, and two conventions concerning child labor. Freedom of association is guaranteed under the Indian Constitution, while the right of industrial workers to organize is protected under the Trade Unions Act of 1926.Child labor is a serious problem, though estimates on the number of working children vary - eleven million were recorded in the 1991 census, but many consider this to be an under-estimate. Hazardous forms of child labor are illegal under the Indian Constitution. Increasing efforts are being made by government, civil society and international organizations to combat child labor On the part of the Bank, the more recent DPEP projects give special options to target working children, for example, schools with timings convenient to them. Looking beyond its education projects, the Bank is also committed in all its projects to "do no harm" to children via inadvertently promoting or even funding activities involving child labor. The Bank is experimenting through the Andhra Pradesh District Poverty Initiatives Project with working with NGOs to bring children out of the work place and into school.
Indonesia, February 8, 2001
Core labor standards discussion occurs in section on "Sustaining Economic Recovery and Promoting Broad-based Growth." The discussion does not include all CLS, but goes into considerable detail in its treatment of freedom of association and labor relations, clearly high-priority issues for the country. Excerpt from Indonesia Sound labor market policies are equally important for raising the economic prospects of the poor, as they are helped by a development strategy that favors a rapidly expanding demand for labor and fosters equitable and just labor conditions (see Box 2.3). Among donors, the ILO has the lead in this area. Box 2.3: Labor Policies in Transition The broader political changes have opened up labor policies. In 1998, the Government ratified the ILO convention on freedom of association and issued a regulation opening up trade union registration. As a result, new labor unions have sprung up, challenging the only union allowed in the Suharto era. But there are questions about the capacity of business and labor to handle the changes and concerns that implicit alliances betweenGovernment, employers and even military and police may persist. Moreover, breakdown of law and order in parts of Indonesia have adversely affected labor relations. Law and order and fair economic relations will require cooperation among Government, employers and employees, and reform of the legal and judicial system, the police and the military. Issues for medium-term consideration involve: (i) further development of the labor relations framework covering the formation of trade unions, collective bargaining, and settlement of industrial disputes; and (ii) regulations governing employment standards, covering issues such as working hours, wage determination, and job security. Longer-term reform will also involve a sustainable system of social protection, including reform of the inefficient government-run Jamsostek social insurance scheme.
Uganda, December 18, 2000
Core labor standards are discussed along with other labor market issues in the context of private sector development for economic growth. Excerpt from Uganda CAS Labor markets and standards: Finns also consider lack of skilled labor to be a constraint to their activities in Uganda. Moreover, the health status of the work force is a concern for investors: absences from work due to prolonged illnesses (such as HIV/AIDS and malaria) or mourning are common and have a negative effect on firm operations. Uganda has labor laws and regulations, but their enforcement has been weak and inconsistent due to capacity constraints at different levels of Government. The Constitution of Uganda provides for the right of every person to join workers' associations or trade unions, and the law allows unionization if the majority of the work force supports it. Further, the law prohibits forced or bonded labor, but the lack of resources has prevented the Government from enforcing this prohibition effectively. Also, the law prohibits employers from hiring workers below the age of 18. However, due to weak enforcement, child labor is common. Most working children are employed in the informal sector, often on the subsistence farms of extended family members or as domestic servants. Uganda is a signatory to the United Nations Convention on the Elimination of All Forms of Discrimination against Women and to the Vocational Rehabilitation Employment (Disabled Persons) Convention of 1983, though it has not ratified yet the relevant ILO Conventions. Finally, minimum wage legislation exists, but the minimum wage rate has not been adjusted since the 1960s. Top |
RSS