ILO is a specialized agency of the United Nations
ILO-en-strap
Governing Body
GB.267/PFA/8/1
267th Session
November 1996		  
  Programme, Financial and Administrative Committee PFA  

EIGHTH ITEM ON THE AGENDA

Preparation of the Programme and Budget
proposals for 1998-99

Introduction

1. The present paper is intended:

2. The paper attempts to meet the expectations voiced by governments and by the Employers' and Workers' groups in the Governing Body during the discussion of the preliminary consultation paper in March 1996.

3. For this purpose the paper sets out the general context of the proposals and recalls the choices regarding strategy and priorities made by the Governing Body and the financial context.

4. The proposals as a whole are then presented in three groups of programmes. The first includes all the operational major programmes at headquarters and in the regions. The second includes the major programmes concerning the general policy-making bodies, and the third sets out the proposals for support services. Finally, the paper provides indications on the distribution of resources by major sector of activity.

I. General framework

Strategic orientations and priorities

5. It should be recalled that a consensus was reached that the ILO should be:

6. The three major objectives of promoting democracy and human rights in the world of work, promoting employment and combating poverty, and protecting working people, were also the subject of a consensus, and as a result they form the framework for the proposals as a whole.

7. The Governing Body expressed the specific wish that the Organization should strengthen its standards-related activities aimed at promoting fundamental human rights and implementing the standard-setting policy that it is itself in the process of defining. The Governing Body also wanted the Office to support the continuation of discussions on the consequences of globalization for the ILO's mandate within its Working Party on the Social Dimensions of the Liberalization of International Trade. It has requested the Office to mobilize its resources not only during the current biennium, but also in the next, so as to contribute to follow-up on the World Summit for Social Development at both the national and the international levels. It was also specific in wishing to see the Organization make a commitment to implement major activities to follow up on the Fourth World Conference on Women (Beijing, September 1995). Similarly, it emphasized the need for activities in relation to the elimination of child labour, a problem that the Organization has attacked with determination and which receives high priority, as well as activities to assist job creation in member States through the development of small and medium-sized enterprises.

8. Finally, in June 1996 the International Labour Conference, like the Governing Body, stressed how important it was for the Organization to remain responsive to constituents in member States so as to ensure that its programmes addressed the real problems faced by them and helped to provide a solution or respond to clearly identified needs. The Active Partnership Policy that has been applied for three years now has brought the Office closer to its constituents and made it possible to identify, with most of them, the country objectives and the strategies and programmes that will make it possible to attain them.

9. The Programme and Budget proposals for 1998-99 are intended to respond to these strategic orientations and priorities, which go to the heart of the Organization's activities. They also take into consideration the repeated desire of the Governing Body to see the continuation of the efforts towards reform that have been successfully made by the ILO over the past few years to adapt its activities, enhance its visibility and credibility, and improve its efficiency and effectiveness.

The financial context

10. The level of resources proposed by the Director-General is 3.75 per cent lower than the level of zero real growth by comparison with the Programme and Budget for 1996-97. The level of resources actually used for the Programme and Budget proposals for 1998-99 is in fact the adjusted budget of expenditure adopted by the Governing Body in November 1995, which is $21.7 million lower than the programme and budget adopted by the Conference.

11. The proposed level, at a constant rate of exchange, should be very close to zero nominal growth. In other terms, the programme reduction of $21.7 million will be sufficient to absorb the expected inflation.

II. Operational programmes at headquarters
and in the regions

12. The following proposals concern all the technical programmes, including employers' and workers' activities and the regional programmes. The Turin Centre and the International Institute for Labour Studies collaborate closely with services at headquarters and in the regions. It will be recalled that the recurrent activities of these major programmes consist largely in the provision of services direct to constituents, collecting and analysing information, and the ongoing study of trends and developments in various labour-related fields in order to maintain and strengthen the ILO as a centre of excellence and reference. They are also responsible for the preparation of reports and documentation for the Conference, the Governing Body and its committees, as well as the preparation of contributions to major conferences and meetings, which enable the ILO to take an active part in them. The main features of the programme and budget proposals are set out below together with specific proposals concerning action programmes, meetings and research items.

The Active Partnership Policy
and technical cooperation

13. The operational programmes at headquarters and in the regions, together with constituents, implement the Active Partnership Policy. They identify constituents' needs, establish country objectives with them, design programmes to attain those objectives, implement technical cooperation and provide the technical advisory services requested of them.

14. The preliminary consultation paper discussed by the Governing Body in March 1996 set out a synthesis of the main problems and needs for which constituents in the regions sought assistance from the Office.(1) The most frequent, and those which in general receive highest priority, are the difficulties encountered in formulating policies on employment and combating poverty, designing job-creation programmes and monitoring the evolution of the labour market. Constituents are concerned by the various consequences of the globalization of the economy, and many of them are apprehensive about the implications of the liberalization of trade. A great many countries involved in regional integration processes face obstacles, particularly in relation to social security. Constituents in those countries themselves observe that their organizations have to become stronger and better equip themselves to participate in a social dialogue that enables them to exert some influence over the policy choices made. Labour legislation needs to be updated in a great many fields. Industrial relations systems need to be modernized. Pressure is being exerted on all sides to review social security systems, and more generally policies on social protection. Even though workers' fundamental rights are now more widely recognized, the application of international standards in this area is far from being satisfactory. There is the will to attack the problem of child labour, but international cooperation is needed to design policies and implement programmes that are likely to have a real impact. This also applies to the problems faced by women, beginning with lack of equal treatment in employment. It is precisely these problems and needs that operational programmes at headquarters and in the regions seek to address.

15. Technical cooperation will remain one of the most important means of action for dealing with such problems and needs, and certainly one of the most highly valued by constituents in countries in transition and developing countries. The Director-General has already undertaken to develop technical cooperation programmes to promote standards concerning workers' fundamental rights, eliminate child labour, create jobs, provide more and better jobs for women, and improve industrial relations systems. These programmes will be implemented in cooperation with constituents in member States, but they can only succeed by mobilizing all possible inputs from operational programmes at headquarters and in the regions.

16. As requested by the Governing Body, the measures for the rationalization of the field structures which the Director-General plans to include in his Programme and Budget proposals for 1998-99 are discussed in a separate paper before the Committee.(2)

Support for the democratization process

Standard-setting activities

17. The World Summit for Social Development reaffirmed the ILO's mandate to promote respect for international labour Conventions concerning workers' fundamental rights (the Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87), the Right to Organise and Collective Bargaining Convention, 1949 (No. 98), the Equal Remuneration Convention, 1951 (No. 100), the Discrimination (Employment and Occupation) Convention, 1958 (No. 111), the Forced Labour Convention, 1930 (No. 29), and the Abolition of Forced Labour Convention, 1957 (No. 105)). In 1997 the Director-General will report on the results of the campaign launched in 1995 to improve the ratification and application of these instruments. He will present proposals to help constituents overcome the obstacles to their ratification and/or application that they might encounter and to strengthen the supervision of their application on the basis of the Governing Body's decisions.

18. The Office will implement the decisions taken by the Governing Body through its Working Party on Policy regarding the Revision of Standards and in the Committee on Legal Issues and International Labour Standards. This applies in particular to the decisions already taken, such as those on the request for reports in 1998 from the governments of all States that have not ratified Conventions Nos. 87 and 98, and in 1999 from all those that have not ratified Conventions Nos. 100 and 111. Activities will be conducted with constituents to discuss the obstacles to the ratification and/or application of the Termination of Employment Convention, 1982 (No. 158) and the Protection of Workers' Claims (Employers' Insolvency) Convention, 1992 (No. 173), as well as the Labour Inspection Convention, 1947 (No. 81) and the Labour Inspection (Agriculture) Convention, 1969 (No. 129).

19. In structural terms, the Equality and Human Rights Coordination Branch of the International Labour Standards Department will be transformed into a branch concerned with workers' fundamental rights and the protection of minorities, which will more closely match its nature and priorities.

Social dialogue and industrial relations

20. Activities to help constituents develop effective social dialogue will be considerably strengthened. This will mean assistance to the strengthening of employers' and workers' organizations at the national level and increased resources for technical advisory services on industrial relations. A new initiative is proposed to make available to constituents information that they may be seeking on approaches to industrial relations issues, particularly in the context of regional integration. The Director-General is also proposing the creation of a new industrial relations branch within the Industrial Relations and Labour Administration Department.

Globalization and the liberalization of trade

21. Various work items will be proposed on the consequences of the globalization of the economy for several fields that lie at the heart of the ILO's mandate. These include the consequences of globalization for the location of enterprises, and hence jobs. Decision-makers, policy-makers, enterprise directors and trade union leaders are turning their attention to the conditions that must be met to ensure that enterprises stay where they are established and that new ones are created. Globalization brings major changes in the labour market at the local level and in some cases a significant increase in unemployment. Local authorities, together with the social partners, have in some cases taken the initiative of creating groups to promote local economic development. Such groups are extremely interested in experiences of this nature that have proved successful, and the Office can help them by identifying such experiences and making available to them analyses of the elements that have contributed to their success. Other work items are proposed to offset the risk faced by the least developed countries of being completely marginalized economically by globalization on account of their low competitivity.

22. The Working Party on the Social Dimensions of the Liberalization of International Trade has highlighted the importance of globalization issues. The Working Party has set itself an ambitious programme, and it is reasonable to assume it will continue its work. Specific work will be needed to prepare its meetings and ensure follow-up. Country studies and other research planned by the Working Party will be carried out by the technical departments. This research will aim at enabling constituents to improve their understanding of the impact of various forms of social institutions and forms of labour market organization on the capacity of their countries to derive full benefit from globalization and implement the adjustments it requires. Close collaboration on these work items will be established between headquarters and the regional programmes.

Promoting employment and combating poverty

Follow-up on Copenhagen

23. One of the main responses by the Office to the World Summit for Social Development will be the country employment policy reviews which are due to start in 1996. It is proposed to carry out such reviews in some six to ten additional countries during the 1998-99 biennium. The aim is to help the countries concerned to develop an optimal employment policy and to put in place the machinery that will make it possible to monitor and assess the results. These reviews will enable the Office to identify policies and practices in the field of employment and training that are of major interest and to make the findings of the analyses available to all constituents. It is also proposed to hold a high-level meeting for policy-makers to review action and achievements at the national level concerning follow-up on the World Summit.

Job creation and combating poverty

24. The major programme on employment and training will seek to ensure that the economic and social opportunities offered by globalization are fully realized and its benefits channelled into socially desirable directions. Its priority activities are to promote full employment, improve the functioning of the labour market, enhance the employability of workers through training, and protect migrant workers and disabled workers.

25. The Programme of Action adopted by the World Summit calls for action to remove the legal and regulatory obstacles faced by small and medium-sized enterprises (SMEs) and to facilitate their access to credit, markets, training and technology. The Governing Body recognized the growing importance of SMEs when it decided that in 1997 and 1998 the Conference would discuss "General conditions to stimulate job creation in small and medium-sized enterprises" with a view to the adoption of a Recommendation on this subject.

26. The proposals also include, as a contribution to follow-up on Copenhagen, the implementation by the Office of an enterprise strategy aimed at promoting employment and improving productivity in the enterprise in parallel with the introduction of improvements in management, working conditions and industrial relations. It is also proposed to organize a second Enterprise Forum, with an agenda concerning job creation in small and medium-scale enterprises, the role of women entrepreneurs, and corporate social responsibility. A major technical cooperation programme on job creation will be developed and implemented, aimed specifically at small and medium-sized enterprises and drawing in particular on the successful and proven approach known as "Start Your Business" and "Improve Your Business".

27. At present, the enterprise and cooperative development major programme (ENTREPRISE) and the multinational enterprise programme (MULTI) both report to an Assistant Director-General (SDG/ENT), but independently. This is partly explained by their mandates and tasks, and is partly due to historical reasons. Profound changes have however occurred during the last decade in the political, economic, social, legal and technological environment in which enterprises operate, whatever their size, towards ever-increasing globalization. The time might thus have come to reassess the rationale for, and efficiency of, this dual reporting arrangement and to take a fresh look at the role of management and other practices in multinational enterprises aimed at improving employment generation and social initiatives.

28. It is therefore proposed to re-evaluate the mandate, tasks and means of action of MULTI, including improved and expanded activities as regards the social role of enterprises, with a view to integrating it within ENTREPRISE as a distinct branch. This integrated and restructured department would be responsible for follow-up on the World Summit for Social Development and the Conference discussions of 1997 and 1998 on SMEs and job creation, and would constitute a think tank on the social role of enterprises and the focal point for follow-up on the ILO Enterprise Forum. Additional advantages would be the more efficient use of human and financial resources, and improved global coordination of ENTREPRISE activities, all of which would lead to more efficient delivery of products more attuned to constituents' needs and expectations.

29. Other activities are proposed to combat poverty and social exclusion. Apart from direct assistance to constituents in the form of technical advisory services to help them design and implement job-creation programmes specifically aimed at the poorest of the poor and the most underprivileged groups in society, the Office intends to develop a guide on job creation and alleviating poverty in the urban informal sector. Work items are also proposed on combating the social exclusion of young people through employment and social protection.

30. World Employment will again be an important instrument for monitoring developments in the employment situation worldwide. It is proposed that in 1998 its main theme should be training from the viewpoint of employment policy.

Follow-up on Beijing

31. The ILO's main contribution to follow-up on the Fourth World Conference on Women held in Beijing will be the launch of an international programme aimed at more and better jobs for women. This programme should be of interest to extra-budgetary sources of financing, and will endeavour to integrate the principles of equality into policies, programmes and activities at the national level. Policies and programmes will also be designed to promote the participation of women workers in tripartite dialogue in member States.

32. The international programme on more and better jobs for women will also attack the problem of the feminization of poverty and exclusion. It will include the design and formulation of policies and practical programmes to promote the employment of women, particularly the most needy. Work will also be conducted to identify new forms of employment for women workers and to overcome the cultural and legal obstacles that impede women entrepreneurs. For several biennia now it has been the practice to integrate activities aimed directly at women workers in all major programmes, and this practice will be expanded: all the major programmes, including action programmes, will include elements addressed specifically at women. The programme on the promotion of equality for women will receive increased resources.

Protecting working people

33. Several fresh initiatives are proposed to protect working people. One of the most important is the launch of a world programme on occupational safety and health and environment, which aims to mobilize new resources to strengthen the Office's capacity to support action taken by member States to bring about lasting improvements in occupational safety and health, and in particular a reduction in employment accidents and real improvements in the prevention of occupational risks. It is also proposed to promote the concept of "safety culture" and introduce it in actual enterprises in order to improve not only safety and health, but also working conditions. Other new subject-areas that will undoubtedly gain in importance over the next few years are also the subject of proposals, such as the social implications of genetic research, risks connected with the use of biological agents in the workplace and violence at work.

34. Several proposals concerning the protection of workers will change in terms of their content and approach: the reform of the sectoral activities programme, as approved by the Governing Body and implemented in 1996-97, will be fully implemented by the systematic application of a modular approach including research, meetings and follow-up activities. In 1998-99 it is proposed that 26 per cent of all resources allocated to the sectoral programme should be earmarked for follow-up activities.

35. As regards social security, the proposals will aim to help member States establish appropriate levels of social protection. Particular attention will be given to the role of the State in relation to the responsibility of individuals with regard to pensions and retirement schemes, and to the effects of ageing populations on the future of the welfare state.

36. The Director-General intends to publish a substantive report on a social theme in the next biennium, comparable in importance and readership to World Employment.

The elimination of child labour

37. The elimination of child labour will remain one of the priority objectives of the Organization in the next biennium. The Office will by then have gained considerable experience, particularly through the IPEC programme, and in addition the Governing Body and the International Labour Conference will have discussed the preparation of new or revised instruments on child labour. It will be an appropriate time to prepare a practical handbook on national strategies to eliminate child labour, focusing in particular on the elimination of the most intolerable forms of child labour, especially those that present serious risks and dangers. The aim of the IPEC programme, which today covers more than 20 countries, will continue to be the progressive elimination of child labour by strengthening national capacity to deal with the problem and by promoting the worldwide movement against child labour. In member States this means analysing the extent of the problem, developing coherent national strategies and plans of action, and applying innovative measures according to local conditions. For the programme to succeed, cooperation is needed not only from a great many government institutions, but also from employers' and workers' organizations, as well as collaboration from other United Nations agencies. The employers' and workers' activities major programmes, through activities at headquarters and by specialists in the multidisciplinary teams, will actively participate in activities aimed at eliminating child labour. Finally, greater resources will be allocated in the regular budget, particularly for research into the economic implications of policies to eliminate child labour.

Action programmes

38. These are special projects on highly topical problems and needs that are regarded as priorities by constituents in many countries. The action programmes are intended to attain specific aims and to result in products that are useful to constituents within a time-frame not normally exceeding a single biennium. They will generally be executed through cooperation between several departments at headquarters, and will also involve the field structure, in particular the multidisciplinary teams.

39. A total of 23 action programmes, listed below, are submitted for the Committee's consideration. Their cost, which is approximate at this stage, amounts to $12.9 million. The amount of resources likely to be available for these action programmes amounts to some $9.2 million, which is sufficient to enable the adequate implementation of no more than 15 such programmes. The precise allocation of resources between the action programmes chosen by the Governing Body will be determined following the discussion in November, taking due account of the Committee's comments regarding the substance and objectives of each action programme. A brief summary of the action programmes proposed is provided in Appendix II.

  1. Globalization, area-based enterprise development and employment.
  2. Labour market information systems for human resource development.
  3. Tripartite participation and social dialogue on training.
  4. The financing of training.
  5. Social investments: Job creation through innovative financial instruments.
  6. Productivity improvement, competitivity and quality jobs in least developed countries.
  7. Small and medium-sized enterprise development for employment.
  8. Small-scale tourism networks.
  9. Enhancing the role of women as entrepreneurs and employers.
  10. Social support services through cooperatives.
  11. Improving procedures for settling disputes over rights.
  12. Cooperative approaches to collective bargaining.
  13. The contribution of industrial relations to regional economic integration.
  14. The organization and management of labour administration.
  15. Organizational developments in labour inspection.
  16. The socially responsible enterprise.
  17. Safety culture.
  18. Action against extreme forms of child labour.
  19. An operational framework for pension reform.
  20. Ageing populations: The policy response.
  21. Strategies to combat youth marginalization and unemployment.
  22. Redirecting infrastructure investments towards job creation.
  23. Improving the quality of women's employment.

Technical meetings

40. In the course of the internal process of consultation concerning the development of the proposals for the next biennium, some 14 proposals for technical meetings have been prepared, and are submitted to the Committee for its consideration. In view of the general agreement in the Governing Body to reduce the number of technical meetings to be held in each biennium, it is suggested that the Committee make a choice of seven meetings out of the 14 proposed, listed below and described in Appendix III. Resources amounting to $1.7 million have provisionally been set aside to cover the direct costs of these meetings (i.e. the cost of participants' travel and subsistence, and the preparation and organization of each meeting). It is recalled that, in addition to these proposals, the Committee on Sectoral and Technical Meetings and Related Issues of the Governing Body will recommend 12 sectoral meetings for the next biennium.

  1. Tripartite High-Level Meeting concerning follow-up on the World Social Summit.
  2. Meeting of Experts on Job Retention and Disability Management.
  3. Second Enterprise Forum.
  4. Tripartite Meeting of EPZ-Operating Countries.
  5. Symposium on Collective Bargaining in the Industrialized Countries.
  6. Symposium on Low Pay and Minimum-Wage Fixing.
  7. Meeting of Experts on Ambient Factors at the Workplace.
  8. Symposium on Preventing Violence at Work.
  9. International Symposium on Labour Inspection and Child Labour.
  10. Joint ILO/Council of Europe Meeting on Social Security.
  11. Sixteenth International Conference of Labour Statisticians.
  12. Meeting of Experts on Labour Statistics: Occupational Injuries.
  13. International Symposium on the Future of Employers' Organizations.
  14. International Symposium on Trade Unions and the Informal Sector.

41. The Director-General considers that, of the above, the following proposals for meetings merit especially favourable consideration as they concern meetings already postponed from the biennium 1996-97:

Research items

42. Article 10 of the ILO Constitution states that the functions of the Office include "the collection and distribution of information on all subjects relating to the international adjustment of conditions of industrial life and labour...". Further research is needed on the following issues in order to enable the Office to fulfil this constitutional mandate and to ensure its continuing authoritative role as a centre of reference in the world of work. Much of this work will also reinforce the relevance of advisory services to constituents in member States.

43. The total volume of resources normally devoted to major research items amounts to some $10 million (approximately 2 per cent of the total budget). While the amount of research actually carried out by the ILO is necessarily very limited given the overall budgetary constraint, research is essential in all the technical fields in which the Organization has to render services to its constituents. It would therefore seem desirable to carry out all the research listed below. At the same time, the Director-General would very much welcome the views of the Committee on the content of this research programme, and in particular on possible new research items for the next biennium, or future biennia, or on items regarded as being of lower priority.

  1. The employment and labour market impact of regional blocs: analysis of the effects of various regional groupings on the employment and labour market situation in those countries and elsewhere in the global economy.
  2. The impact of changes in the pattern of production and services on the creation, disappearance and location of employment.
  3. Labour market flexibility and employment security: case-studies on the impact of labour market deregulation on labour standards, tripartite consultation and social benefits.
  4. Labour market policies for transition economies: comparative analysis of the effectiveness of various labour market policies and programmes in transition economies in Central and Eastern Europe and in Asia.
  5. The development of labour market indicators which include new employment trends and changes in the global labour market.
  6. The role of the State and the private sector in training: studies of policies and measures to create an environment conducive to increased participation by the private sector in training, and analysis of which core training functions should be guided by public authorities.
  7. Drawing lessons from migration policy analysis: elaboration of methods to evaluate the impact of migration policies; research on how to successfully integrate established migrant populations in the labour market; and a review of illegal migration and how to combat it.
  8. Policies and practices for the employment of disabled persons while maintaining the competitivity of enterprises.
  9. Entrepreneurship and small-enterprise development: research on how to provide micro enterprises with access to private consulting services and electronic information networks; and measures to encourage the formalization of micro enterprises.
  10. Information and consultation procedures and workers' representation in multinational enterprises.
  11. Labour relations and quality of work: analysis of collective bargaining and workers' participation schemes in relation to the improved content and quality of work and the relationship between the quality of jobs and various pay systems.
  12. Public sector pay: research on changes in public sector pay systems due to changing job content and occupations, decentralization of management rules and pay administration and the need to involve employees in pay decisions.
  13. Labour inspection: preparation of a guide on the changing role and responsibilities of labour inspection due to factors such as changes in technology and work organization.
  14. Strengthening the capacity of constituents and societies to eliminate child labour, including a review of emerging issues (labelling, corporate and trade union policies).
  15. Safety in the use of biological agents at work: preparation of a draft code of practice on bio-safety.
  16. Violence at work: analysis of violence by sector of activity and vulnerable groups; an evaluation of assistance programmes, data collection techniques and existing legislation.
  17. Work and protection -- Options for the twenty-first century: analysis of links between the changing concept of work and ways to improve working conditions and long-term employment creation; examples of practical initiatives based on new approaches to work.
  18. Working time and gender: an assessment of the impact of flexible working-time arrangements on gender division at work and at home and on labour market segmentation.
  19. The economic implications of action against child labour: analyses of the economic and institutional implications of various policy measures to reduce the use of child labour.
  20. Working time, health and safety: research on the relationships between certain safety and health regulations and different working-time arrangements, as well as the implications of such arrangements for workload and occupational safety and health problems.
  21. The financing and delivery of health care: development of a practical and analytical framework for the provision of universal access to basic health care, covering problems of delivery, and the organization and financing of the programmes.
  22. Principles of social security: review of the principles that underlie and have shaped social security systems and of the extent to which these principles remain valid.
  23. Working time and productivity: analysis of the conceptual and practical problems involved, and review of existing national definitions and measurement methods.
  24. New approaches to development, to promote employment and alleviate poverty in the global economy.
  25. Decentralization, community participation and job creation: study of decentralization and the factors that induce greater participation by excluded populations, including the employment effects of decentralization and its impact on social dialogue.
  26. Promoting social dialogue for job creation and poverty elimination: review of the successful involvement of tripartite constituencies in job-creation programmes; development of policy tools for tripartite intervention in job creation.
  27. The future of urban employment: analysis of the job-creation potential of local-level alliances and the possible impact of decentralized infrastructure investments on employment.
  28. The impact of development strategies based on export promotion on the employment opportunities and quality of employment of women.

44. The total volume of resources proposed for operational programmes at headquarters and in the regions is of the order of $320 million, of which $147 million will be allocated direct to the regions.

45. The Committee may wish to provide guidance to the Office on key priorities in the next biennium, and specifically on the choice of action programmes, technical meetings and research projects to be included in the proposals for the biennium 1998-99.

III. General policy-making organs

46. This section covers the International Labour Conference, the Governing Body, the regional meetings and the major programmes whose main purpose is to service them, that is, the Relations and Meetings Department and the Office of the Legal Adviser.

47. The proposals for the major programmes concerning the general policy-making bodies for 1998-99 are the result of a process of reform begun in 1993 with the Governing Body's Working Party on Improvements in the Functioning of the Conference. This first set of reforms in particular shortened the Conference by four days. The cost of the International Labour Conference to the Organization was hence reduced, as it was, moreover, for each participating member State. A further set of measures adopted in November 1995 made it possible in future to make additional savings of $2.8 million, a reduction of 18 per cent by comparison with the original 1996-97 budget.

48. It will also be recalled that the Governing Body was itself the subject of reforms in 1994-95 intended to improve its functioning, which resulted in a reduction in the number of major sessions and a slight reduction in its duration.

49. Other reforms to make the Conference and the Governing Body more efficient might be envisaged. These will be the subject of a paper to be submitted to the Governing Body for discussion in March 1997. However, these new reforms cannot be taken into account in the Programme and Budget proposals for 1998-99, as it is far too early to attempt an estimate of their financial implications.

50. The reforms in the regional meetings decided in November 1995 will be maintained in 1998-99, implying net savings of $2.4 million by comparison with the original Programme and Budget for 1996-97. These reforms consist in a considerable reduction in the duration of regional meetings, an agenda that focuses on current and future ILO activities in the region, and their organization by officials in the regional office concerned.

IV. Support services

51. Support services include the major programmes for Personnel, Financial services, Internal administration, Publications, Computer services, Library and documentation, Programming and management, Information, and International relations. Over the last four biennia this sector has regularly been the subject of reorganizations and improvements in management which have brought appreciable gains in productivity and hence considerable reductions in costs. The proposals for 1998-99 involve the continuation of efforts to reduce expenditure in this area. It is in this sector, which accounts for 22.5 per cent of the total budget, that nearly 30 per cent of the savings foreseen in order to absorb the negative real growth in the coming biennium will be achieved. The major programmes that will suffer the biggest reductions will be Internal administration, Publications, Financial services, and Programming and management. The Personnel and Public information major programmes are the only ones in this sector that will receive a slight increase in resources.

52. In the current biennium the Office will establish a team, under the Personnel major programme, with specific responsibility for the development of human resources and relations. The adaptation of the Office's human resources to the new roles assigned to it is already receiving a very high degree of priority, and this will continue throughout the 1998-99 biennium. The work of this team will focus on the design and implementation of a dynamic training programme and an examination of policies and procedures, performance appraisals, career prospects and the management of systems for the placement and assignment of officials to posts so as to revise and update them. Communications within the Office will be a central part of these activities.

53. The proposals concerning financial services foresee in particular the consolidation and strengthening of the decentralization process at headquarters and in the field offices. They also foresee the initial modernization of the computerized budget and accounting systems so as to improve their performance and adapt them to changes in work organization. The proposals concerning expenditure on Internal administration will reflect a reduction of more than 8 per cent -- some $4 million less than the level of the approved 1996-97 budget. These savings will be achieved by staff reductions, the renegotiation of leasing contracts and subcontracting measures.

54. In accordance with the Governing Body's wishes, the Publications major programme will also reflect a reduction in resources. The proposed reductions in expenditure amount to nearly $2 million. This has been made possible by the recent reorganization of the Publications Bureau and through various cost-controlling measures. This major programme is of great importance for the Organization's reputation as a centre of excellence and reference on labour and employment issues. Emphasis will be placed on the preparation of publications on major social issues.

55. All sectors of the Office today use computer applications. These generate significant improvements in productivity and increase the opportunities to make the wealth of information that the Office collects, processes and generates more readily available to constituents. In this context the computer and communications services have major responsibilities as regards both the development of strategies and supporting their implementation. This is also true of the Library and documentation programme which, like the Computer services, is working with the technical services developing the ILO's main information products to make them more broadly and easily usable not only for constituents, but also for institutions and individuals interested in social and labour issues.

56. In this regard a major project is proposed concerning the ILOLEX, NATLEX and LABORDOC databases, as well as those on occupational safety and health and labour statistics. These databases are available in printed and digital form (CD-ROM). They contain extremely useful information, but those seeking access to them complain of their lack of user-friendliness. Considerable improvements are therefore planned in their format and usability so as to facilitate and expand their use. This will undoubtedly make the Organization's work more visible while providing important services to constituents.

57. The proposals concerning programming and management are intended to adapt the budgetary process still further to ensure that it effectively meets the expectations of constituents. As regards management systems, new developments and experiments with them have had very promising results, and these are the subject of an independent evaluation. The aim in this area remains constant improvements in the efficiency and effectiveness of the management of all the Office's activities, better integration of their results -- identified by follow-up on the implementation and evaluation of activities -- with the process of decision-making and determining future policy directions, as well as making activities more transparent and increasing the responsibility of those in charge of them.

58. Each day shows how important it is for the Organization to improve public awareness of its values and objectives and the impact of its work. It is proposed to strengthen public information activities through the media using specially tailored products that make possible rapid dissemination to a wider public: these include news reports, interviews, audiovisual information, films and documentaries on specific subjects. Particular attention will be given to making the public aware of the ILO's activities in relation to serious problems such as unemployment, poverty, exploitation, exclusion and attacks of workers' fundamental rights.

59. Relations with other United Nations agencies and the Bretton Woods institutions have become essential for the implementation of the Office's technical activities, not only in the interests of constituents, but also to strengthen the social content of international policy debates. Proposals concerning international relations will take particular account of the action needed to give effect to the World Summit for Social Development.

60. The support services sector will see a reduction in resources of $6,150,000. Studies will continue to be made systematically to find other means of controlling costs without affecting the quality of the services provided.

V. Changes in the distribution of resources

61. At the present stage, prior to the Committee's discussions at the present session and the decisions it is called on take, the information supplied on the distribution of resources must necessarily be confined to an indication of trends by major sector of activity.

62. In order to fully understand these trends, it should be recalled that the proposals for 1998-99 represent a reduction of 3.75 per cent by comparison with the approved Programme and Budget for 1996-97, that is, a reduction of $21,705,000.

63. All major sectors of activity, with the exception of the regional programmes, will see a reduction in their resources.

64. The provision for general policy-making organs, including programmes directly servicing them, will be some $11,580,000, that is, 12.5 per cent less than in 1996-97. Most of the savings will be made in the Relations and meetings major programme, where efforts are continuing to reduce costs. This sector, which accounted for 16 per cent of total expenditure in the 1996-97 budget, will account for only 14.5 per cent in the biennium 1998-99.

65. The resources for operational programmes at headquarters and in the regions will be reduced by some 0.87 per cent ($2,800,000) in comparison with the approved 1996-97 budget. However, there are differences in the impact on headquarters programmes and those in the field: the former will see a reduction of around 2.6 per cent, while in the same period the regions will see an increase of 1.2 per cent. In order to reflect in real terms the importance attached to the Active Partnership Policy, and particularly as regards requests from constituents in the regions, 20 per cent of the RBTC resources previously allocated to headquarters services will be transferred to the regions. The resources of operational programmes at headquarters and in the regions will account for 57.4 per cent of the total budget proposals in 1998-99. In 1996-97 this figure was 55.8 per cent.

66. Finally, there will be a reduction in resources for the support services of around 4.7 per cent by comparison with 1996-97.

67. The preparation of the proposals takes account of the value to the Organization of allowing for flexibility in the management of resources. As personnel absorb more than 70 per cent of expenditure, this implies the introduction of an appropriate strategy. This necessarily involves a reduction in fixed staff costs, particularly at headquarters.

68. The extent of the reforms introduced over the past few years is clearly illustrated by figures on staff in post in 1990 in 1996. The number of staff in the Professional and higher categories employed at headquarters in Geneva in 1996 is 18 per cent lower than in 1990. In the General Service category, there was a fall of 15.3 per cent over the same period. By contrast, over the same period in the field, Professional and higher category staff increased by 28.4 per cent, and General Service category staff by 41.35 per cent. Total staff in all categories at headquarters fell by 16.48 per cent between 1990 and 1996, while staff in the field increased by 37.17 per cent.

69. The proposals for 1998-99 will reflect a continuation of this trend, particularly regarding support services. The decentralization process that is under way and which will be consolidated is tending in the same direction and will result in reductions in fixed staff costs.

Geneva, 16 October 1996.

Point for decision: Paragraph 45.

1. GB.265/3.

2. GB.267/PFA/8/3.

Appendix I

Indicative distribution of resources by sector of activity

. 1996-97 1998-99 Difference
Programme and budget % of total budget Proposals % of total budget US$ %
Policy-making organs 92 640 385 15.99 81 063 538 14.53 -11 576 847 -12.50
General management 9 488 450 1.64 9 488 450 1.70 0 0.0
Technical programmes at HQ 177 588 612 30.65 173 047 733 31.02 -4 540 879 -2.56
Regional services 145 623 827 25.13 147 351 292 26.42 1 727 465 1.19
Substantive and operational programmes 323 212 439 55.77 320 399 025 57.44 -2 813 414 -0.87
Service and support activities 131 998 827 22.78 125 844 836 22.56 -6 153 991 -4.66
Miscellaneous1 22 159 899 3.82 20 999 200 3.76 -1 160 699 -5.24
579 500 000 100.00 557 795 049 100.0 -21 704 951 -3.75
1 Includes other budgetary provisions, staff turnover and unforeseen expenditure.

Appendix II

Action programme proposals

This appendix contains a brief summary of the content of the proposals for action programmes. More details of the proposals retained will be given in the final version of the programme and budget proposals. The estimates of costs given here are very approximate and subject to considerable revision, to take account of the comments of the Governing Body and the Programme, Financial and Administrative Committee on programme content and the overall envelope of resources available.

1. Globalization, area-based enterprise development and employment ($700,000)

The process of globalization, economic liberalization and deregulation has a direct impact on local labour markets. It presents enterprises with many benefits, such as easier access to new markets, but also results in increased competition and increasingly "footloose" investment. The immediate consequence in the local economy is usually higher unemployment, particularly in the event of relocation. In response to such situations, initiatives are often taken to bring together all the economic actors affected at the local level (including employers' and workers' organizations, local government agencies, community organizations and NGOs) to stimulate economic growth and the creation of employment through local economic development initiatives, and to attract and retain productive investment from outside the local area. The objective of this action programme, therefore, is to increase awareness among local authorities and employers' and workers' organizations in member countries of the benefits of area-based enterprise development programmes for employment generation at the local level. A review will be undertaken to identify appropriate labour market policies and institutions as well as best practices concerning locally driven strategies to attract and retain outside investment, the diversification of local industry, entrepreneurship promotion, targeted business support services linking local small business with global markets and public-private partnerships to facilitate retraining, and the role of labour-intensive works programmes. Steps will be taken to place the results of this programme of action at the disposal of those concerned, and to assist them to put these results into practice.

2. Labour market information systems for human resource development ($700,000)

Many of the institutions responsible for the design of labour market policies in developing countries lack an adequate understanding of the methods of compilation and analysis of the relevant information and its use in the design of training and retraining programmes and for the formulation of policies and programmes to promote employment. The objective of this action programme is therefore to make available to decision-makers, and to the ILO's social partners, methodologies enabling them to assemble, compile and analyse labour market information, and to ensure that they have adequate capacity to implement these methodologies effectively, in some cases, in parallel with technical advisory services to be provided by the Office to adapt them to specific local conditions. Taking account of the ILO's past work on labour market information systems, guidelines will be prepared on the compilation, analysis and dissemination of such information, and on the design of employment and training policies and training and retraining programmes. Direct assistance will also be provided in several countries for the establishment of pilot "employment and training observatories", for the benefit of administrators, statisticians, employers and workers, to set up networks for information dissemination and sharing.

3. Tripartite participation and social dialogue on training ($350,000)

The trend towards privatization, decentralization and enterprise-based training has led to a loss of influence by traditional tripartite mechanisms in the field of training. The objective of this action programme is therefore to secure the adoption by member States of new and more effective forms of participation, particularly at decentralized decision-making levels, as a means of strengthening effective tripartite dialogue on training. To achieve this objective, case-studies will be carried out of innovative practices involving tripartite social dialogue on training. The new forms of tripartite participation in relation to training which are identified by this work will be tested in a small number of countries with the cooperation of the ILO's social partners. The results of the action programme will subsequently be placed at the disposal of employer and worker organizations as well as government agencies responsible for training, which may also benefit from technical advisory services to assist the establishment of an appropriate social dialogue on training questions. The experience from this work will also be synthesized with a view to its publication, dissemination and adaptation in other countries.

4. The financing of training ($700,000)

Financing is one of the most controversial and significant policy factors in the functioning of training systems. Recent years have seen the emergence of increasingly diverse financing mechanisms for training. However, although large enterprises and multinationals usually have considerable training budgets, the majority of medium and small-scale enterprises, particularly in poor countries, are unable to afford the cost of training their employees. The objective of the action programme is greater awareness by policy-makers, training administrators and employers' and workers' organizations of the available options for the financing of training. Building on past ILO research work, guidelines on financing mechanisms for training will be prepared together with case-studies on successful practices. This work will lead to the provision of policy advice on financing options for training to constituents in a broad range of countries and to improvements in the design of proposals for technical cooperation activities to be funded from external resources.

5. Social investments: Job creation through innovative financial instruments ($400,000)

Over the past decade, government efforts in many industrialized countries to reduce the numbers of the long-term unemployed have not had a significant impact. Policy-makers are therefore keen to learn more about private initiatives that seek to find jobs for the long-term unemployed. Built on partnerships between banks, self-help associations and local government, these initiatives are characterized by innovative ways to mobilize and allocate resources. While a number of successful examples (South Shore Bank in the United States, ADIE in France, Unity Trust Bank in the United Kingdom and Vancity in Canada, etc.) are fairly well known nationally, no systematic assessment of a comparative nature has yet been carried out. The objective of this action programme is to define the modalities for linking private bank credit to public job-creation programmes and other active labour market measures. The assessment will address the following issues: the importance of the initiatives in terms of the employment generated; the sustainability of the micro enterprises that have been created; the question of substitution for or complementarity with public job-creation programmes; the sustainability of the initiatives themselves; implications for commercial banks; and fiscal cost-effectiveness in comparison with public job-creation programmes. The assessment will be supported by a number of case-studies. A synthesis report will recommend action in this area by the ILO and member States, including developing and transition countries. The action programme will be carried out in close cooperation with the European Union and the OECD. The materials produced will be used in the provision of advisory services -- i.e. through multidisciplinary teams -- to ministries of labour, the social partners and financial institutions.

6. Productivity improvement, competitivity and quality jobs in least developed countries ($350,000)

While globalization provides opportunities for growth of output and trade through increased competitiveness, it nevertheless entails the risk of economic marginalization for those economies which cannot become or remain competitive: this is certainly the case for sub-Saharan Africa, where the largest concentration of least developed countries are to be found, and also some countries in Asia and Latin America. In these countries a proactive approach to productivity enhancement is especially important to increase the competitivity of enterprises, in both the domestic and international markets, and so take advantage of the opportunities provided by globalization. This concerns not only gains in labour and capital productivity but also improvements in total factor productivity, which implies the efficient utilization of all productive inputs including energy and natural resources. Such an approach requires the active participation of the main social partners, particularly employers' and workers' organizations, in order to ensure a supportive climate of industrial relations. The objective of this action programme is to promote the adoption of strategies to improve productivity and national competitivity at the enterprise level, and thus facilitate the integration of the countries concerned into the global economy. An interregional comparative analysis will be undertaken of successful experiences in selected developing countries where competitivity has been a major factor in promoting exports. The analysis will take into account macroeconomic and international economic policy issues, while focusing on the importance of skill upgrading; the adoption of better management practice; technological innovation and diffusion; and the links between large, medium-sized and small enterprises. Guidelines based on this analysis will be produced for use by ILO constituents and in the provision of advisory services to the countries concerned.

7. Small and medium-sized enterprise development for employment ($700,000)

The past decade has seen increased recognition of the important role played by small and medium-sized enterprises (SMEs) in the promotion of economic growth, development and job creation. SMEs account for most new jobs in industrialized and developing countries, as well as transition countries, as a result of large-scale restructuring, privatization and the introduction of free-market principles. The objective of the programme is to secure the adoption of policies and programmes in member States aimed at the creation of sustainable and productive jobs in SMEs within a wider integrated framework of employment promotion. The programme will significantly consolidate and expand the ILO's activities in this area and provide follow-up on the 1997-98 Conference discussion on "General conditions to stimulate job creation in SMEs". New practical tools to support the development of sustainable and viable SMEs, such as guidelines, training and promotional materials, will be developed for use in ILO advisory work and directly by ILO constituents. These materials will reflect the need for sound labour relations, decent working conditions, job security and fair treatment and the promotion of women entrepreneurship as integral elements of a strategy to promote efficient and competitive SMEs, and will also emphasize the crucial roles employers' and workers' organizations can play in this respect. Existing materials such as Start Your Business and Improve Your Business will be adapted to the changing global environment and technological innovations. Another important activity will be the mobilization of resources for the new comprehensive ILO technical cooperation programme on employment generation through the development of SMEs.

8. Small-scale tourism networks ($450,000)

Many local entrepreneurs in the tourism sector in developing countries, such as tourist guides, taxi-drivers, families offering rooms, handicraft producers and souvenir sellers, are self-employed and have little or no business or technical training. Although tourism is a sector in which new jobs can be created at a relatively low cost, they are often either unaware of the growth potential of their enterprise or experience difficulties in gaining access to the necessary capital or technical support. However, in a number of cases, networks of such operators have proved successful in areas such as basic business training and obtaining small loans, and in terms of the quality of the service provided and joint marketing activities. The objective of this action programme is to strengthen the capacity in developing countries to design and implement programmes to increase employment opportunities in the small-scale tourism sector through such networking arrangements, assisted by national tourism boards and employers' and workers' organizations. An analysis will be made of successful experience in both industrialized and developing countries, guidelines will be prepared and advisory services provided to help establish and strengthen cooperative and similar self-help networks that are capable of organizing joint marketing and training activities and linking up with national and regional tourism promotion programmes. A sectoral adaptation of the Start Your Business and Improve Your Business training materials will be prepared to facilitate the business training of small-scale tourism operators.

9. Enhancing the role of women as entrepreneurs and employers ($700,000)

Many of the measures to enhance employment opportunities for women called for in the Platform for Action adopted by the Fourth World Conference on Women and the Programme of Action of the World Summit for Social Development emphasize entrepreneurship development. Millions of women at all levels of income in developing, transition and industrialized countries are setting up enterprises. For these enterprises to grow they need assistance in matters such as financial management, technical capabilities and marketing. The objective of this action programme is to enhance the role of women entrepreneurs, so that they move beyond survival-type, income-generation, self-employment or micro-enterprise level activities to the operation and management of viable, growth-potential small and medium-size enterprises that are also able to provide productive employment to other women and men. To do this the action programme will develop more effective gender-sensitive training packages for employment generation through entrepreneurship development (based on the Improve Your Business management package); elaborate guidelines on policies and programmes to enable women to own and manage successful businesses; and produce training materials to assist women to enter new areas for business expansion and employment creation.

10. Social support services through cooperatives ($450,000)

In many member States serious difficulties are being encountered in the provision of adequate social services, such as health care and insurance, pensions and subsidized housing. This particularly affects the poor, who cannot afford access to private social services. Taking account of this situation the World Summit for Social Development underlined the importance of strengthening social protection by innovative approaches. Mutual self-help schemes offer an effective alternative to social services provided by governments and the private sector. These schemes can take the form of mutual benefit societies, health care and health insurance cooperatives, or credit unions and building societies. They can be organized either by providers of services, such as medical personnel, or by the consumers of such services. The objective of this action programme is to strengthen the capacity of organized workers and the self-employed in both the formal and informal sectors to organize effective social support services on a cooperative basis. Following a review of successful experience at the country level, training materials and guidelines will be prepared for use in ILO technical advisory services, and directly by workers' organizations and professional organizations involved in the establishment of social service cooperatives.

11. Improving procedures for settling disputes over rights ($500,000)

In many countries, there are procedures by which individual workers can seek the enforcement of their rights under labour law. These sometimes include grievance procedures at the enterprise level, but in most countries the principal machinery consists of labour courts or tribunals. However, there is clear evidence that in many developing and industrialized countries, these procedures are confronting serious problems and do not enjoy the confidence of the workers. The objective of this action programme is the improved capacity of labour courts and conciliation services to resolve disputes over the application of labour law and the contract of employment, as well as the increased capacity of the tripartite constituents to develop effective dispute settlement machinery. Following research, reports will be prepared analysing the problems encountered in a number of member States with regard to the functioning of conciliation services and labour courts or tribunals. The types of assistance required from the Office at the national level will be analysed. This work will form the basis for the provision of technical advisory services to constituents on the improvement of their dispute settlement machinery and the development of training materials adapted to national conditions. These training materials will be designed for use by conciliators, judges and arbitrators, and the social partners, as well as by the Office in its responses to requests for assistance.

12. Cooperative approaches to collective bargaining ($400,000)

Current trends towards the decentralization of collective bargaining are increasing the need for training in negotiating techniques and the development of more cooperative approaches to collective bargaining at decentralized levels, where the parties often lack adequate expertise. Such training for the representatives of workers' and employers' organizations should embrace negotiating techniques in general, with particular reference to modern approaches to problem solving and bargaining for mutual gain. Thus the objective of this action programme is to strengthen the expertise of the social partners in positive approaches to negotiation. Research will be carried out on successful cooperative bargaining practices. The training approaches adopted in various member States will be reviewed and evaluated, with a view to integrating the positive elements of each experience into a coherent training methodology. The findings of this work will be published in reports and discussed in a series of national and subregional seminars, which will identify the needs of employers' and workers' organizations. Taking account of these discussions, training materials will be developed for use in advisory and training activities to develop the capacity of constituents to bargain collectively in an effective way.

13. The contribution of industrial relations to regional economic integration ($500,000)

Although regional economic integration is progressing rapidly in many parts of the world, harmonization as regards industrial relations is proceeding much more slowly. The objective of this action programme is to increase awareness among decision-makers of the contribution that industrial relations can make to the process of regional integration. Information will be prepared for the use of decision-makers in countries in the early stages of regional integration, or which intend to initiate such a process, in order to assist them in their assessment of the contribution that industrial relations can make to regional integration. The information will be compiled on the basis of the experience of existing regional groupings, including the European Union, Mercosur, NAFTA, ASEAN and SADC. It will include an analysis of the ways in which national industrial relations systems have been harmonized, the industrial relations machinery that has been established at the regional level, and the areas in which economic and social policies have been harmonized through industrial relations institutions and procedures. Particular emphasis will be placed on identifying the principal problems encountered and the main reasons for the success or otherwise of the various initiatives. The information that is prepared will be made available in whatever form is appropriate, and will be used to support ILO technical advisory services and the organization of regional seminars.

14. The organization and management of labour administration ($700,000)

Labour administration systems cover a wide range of activities in the fields of labour, employment and vocational training carried out by ministries of labour and other public bodies. In order to improve their own labour administrations, ILO constituents need more information and comparative analyses of what is done in other countries and of which activities are more effective. The objective of this action programme is therefore to provide better information to constituents on effective methods of organizing and managing labour administrations and on the roles that may be played by the various actors, including the social partners. Based on some ten specific studies, a publication will be prepared describing the principal systems of labour administration, taking into account geographical, cultural and economic criteria, with a view to providing structured information on their functions, organization, management and resources. To assist decision-makers, guides will be produced on the methodology of analysing these situations and on internal evaluation systems in labour administrations.

15. Organizational developments in labour inspection ($500,000)

Labour inspectorates throughout the world are implementing institutional reforms in order to overcome resource difficulties and improve their effectiveness. These reforms have included decentralization and self-inspection systems. Measures are needed to ensure that these new forms of organization are consistent with the existing international labour standards on labour inspection. The ILO is receiving an increasing number of requests for assistance and advice from labour inspectorates wishing to know more about the policies pursued in other countries on these fundamental organizational problems and about their impact on worker protection. In order to respond to these requests and to advise constituents on the impact and consequences of such reforms, information will be collected and an in-depth analysis carried out of these developments and their consequences. Following a study of the approach adopted in selected countries, a guide will be prepared to assist the decisions of constituents in this regard. The objective of the guide will be to assist labour inspectorates to reform their structures while improving their effectiveness.

16. The socially responsible enterprise ($700,000)

There is increasing recognition among policy-makers and business leaders of the important contribution that enterprises can make in addressing socio-economic issues. Many enterprises are already implementing specific enterprise programmes, developing guidelines and participating in labelling schemes targeted at child labour, job creation, the situation of women and vulnerable groups, occupational safety and health, working time arrangements and other conditions of employment, as well as community development. While these developments are very positive, it is also clear that a lack of awareness of the operational and broader benefits and implications of such socially responsible approaches is impeding wider application of the principles and practices involved. The objective of this action programme is therefore to raise the awareness among the social partners of socially responsible programmes and practices. Cases of "good practice" will be identified and documented, and an analysis will be undertaken of the reasons why enterprises adopt socially responsible programmes and practices, and the factors which contribute to their success or failure. Specific tools and resources, including a multimedia package, will be prepared for use by constituents, enterprises and policy-makers, with particular emphasis on the roles of employers' and workers' organizations, in promoting social initiatives. In order to provide low-cost access to this information, an electronic resource centre will be set up on the Internet, for the use of governments, employers' and workers' organizations, enterprises, business schools and other educational institutions. This resource centre may be expanded to cover other themes relating to the current and potential roles of enterprises in addressing socio-economic concerns, including improved working conditions and the environment.

17. Safety culture ($550,000)

Recent reports of public inquiries into major industrial accidents have highlighted the serious consequences if the "safety culture" in an enterprise is inadequately developed. The development of a safety culture is an approach that links quality of service, productivity and occupational safety and health, and in which emphasis is placed on sound managerial systems and voluntary action. The objective of this action programme is to increase awareness among managers and workers of the benefits of a safety culture, with a view to the more widespread adoption of this approach. A critical review will be carried out of experience in the development of a safety culture at the workplace and its value in promoting occupational safety and health principles and a philosophy of prevention. The findings of this review will be included in a report, which will examine the concept of working cultures, including safety culture, labour protection culture and corporate culture and will highlight examples of good practices by enterprises, with emphasis on the importance of a participatory approach and the integration of occupational safety and health into management practices. A practical guide will also be developed to encourage a commitment by managers and workers to the implementation of occupational safety and health fundamentals and of an occupational safety and health management system in the enterprise. This guide will be used in workshops and seminars at the national level.

18. Action against extreme forms of child labour ($700,000)

There is a growing consensus within the ILO and in the international community at large that the ILO's work on child labour should place priority on the most intolerable forms of child labour. This will require considerable conceptual and empirical work, for example, on the definition of work-related hazards; the identification of the occupations and industries that are especially hazardous and dangerous, and of the groups of child workers that are especially vulnerable; the articulation of appropriate legislative changes and enforcement measures; and the design and implementation of rehabilitation programmes to support effective enforcement. The objective of this action programme is to provide practical support to member States in designing national programmes of action against the most intolerable forms of child labour. The focus will be on effective enforcement. The main output will be a handbook, complemented by media kits and information leaflets. The publication is intended for use by ministries of labour, education and social welfare, to enable them to carry out effective enforcement and inspection in collaboration with employers' and workers' organizations and non-governmental organizations. It will also be used by the MDTs and IPEC in the provision of advisory services and technical assistance. It will involve a review of national experiences; preparation of case-studies; and the organization of national technical workshops to draw lessons and validate the findings of this action programme.

19. An operational framework for pension reform ($700,000)

A large number of countries are faced with the need to reform their old-age pension systems or, where none exist, to establish new systems. For many countries, this is a policy area in which understanding of the options is limited, experience in implementing reform is scarce and administrative capacities need to be greatly strengthened. The objective of this action programme is to increase awareness of the available options among policy-makers as a basis for the design and implementation of old-age pension systems adapted to national conditions, taking due account of the principles embodied in the relevant international labour standards. An operational framework will be developed, following case-studies at the country level, which will clearly distinguish the ILO approach to pension reform, with its emphasis on social principles. The framework will cover issues relating to the design of benefit and contribution schemes, the relative merits of unfunded and funded schemes, the role of the State, strategies for extending the coverage of retirement schemes to make them as nearly universal as possible, and techniques of governance and good management. The results of this work will be reviewed in regional workshops, and subsequently disseminated as an ILO major publication forming the basis of the ILO's advice, assistance and technical cooperation activities on pension reform for developing countries.

20. Ageing populations: The policy response ($700,000)

Populations around the world are ageing, partly as a result of increased longevity and partly as a consequence of declining fertility and infant mortality rates, resulting in a greater demand for retirement incomes, health care and social services. This trend has major economic implications and action needs to be taken now if it is not to become even more critical in future. The objective of this action programme is to promote greater understanding among policy-makers, especially those responsible for social services and macroeconomic policy, of the magnitude of the problem, the policy options available to alleviate it and how the burden of additional support can be equitably shared. Reports will be prepared on countries in which the ageing problem is most acute, with analyses of the implications for social expenditure in areas such as pensions, health care and social services, and for economic growth, employment and working conditions. The implications will be examined for policy options such as raising contribution rates, lowering benefits, increasing the retirement age, facilitating a more flexible transition from work to retirement, promoting female participation rates and providing training for older workers. The results of this work will be used in advisory services and given broader dissemination by means of an ILO publication.

21. Strategies to combat youth marginalization and unemployment ($400,000)

In many developing countries youth unemployment rates lie between 50 and 70 per cent. The serious social consequences of this phenomenon include the danger of the marginalization and exclusion of many young people, the effects of which may last over the whole of their life cycle. Youth unemployment and marginalization are therefore priority issues in many developing countries, and the ILO is receiving an increasing number of requests from constituents for advice and assistance in solving this problem. The objective of this action programme is the development of a coherent approach that can be integrated into employment policies with a view to combating youth unemployment and exclusion. The adequacy and effectiveness of national policies and programmes designed to address these problems will be assessed and the resulting ILO perspective on effective policies and programmes to combat the marginalization of youth will be set out in a practical guide for use by ILO constituents and to support ILO advisory services.

22. Redirecting infrastructure investments towards job creation ($350,000)

The potential employment benefits of infrastructural investment programmes, which attract huge capital investments in developing countries, are in many cases not being realized owing to dependence on imported equipment, skills and technologies. Many opportunities are being missed to generate large-scale employment for low-skilled labour and to encourage the local private sector both for the implementation and the supply of local construction materials. The ILO's response to this challenge has been to maximize the benefits of such investments to the local economy by introducing cost-effective employment-intensive approaches. In response to the demand expressed in numerous ILO country objective statements, the objective of this action programme is to increase the share of infrastructure investments earmarked for works executed through locally available resources, while safeguarding acceptable conditions of employment for the largely unorganized workforce in the sector. Best practices will be documented and a comprehensive policy framework developed, dealing with investment policies for employment creation, technology choice and the development of small construction firms capable of implementing employment-intensive works. The outputs will be in the form of an information/training package comprising brochures with policy recommendations, guidelines and audiovisual training materials. This package will be disseminated to member States through ILO offices and ILO-supported technical cooperation projects.

23. Improving the quality of women's employment ($700,000)

The last two decades have witnessed an unprecedented rise in women's participation rates in labour markets and in their access to paid employment. A relatively small proportion of the new employment opportunities have been generated in the form of conventional and regular wage employment covered by social protection systems. Increasingly, employment growth has been due to the expansion of the informal sector and the development of new atypical forms of employment such as temporary labour, contract labour, homeworking and subcontracting. These types of employment may have the most buoyant and dynamic potential in terms of job creation in the future. However, as a result of unequal access to resources and various levels of discrimination faced by women workers, the full potential of these activities has yet to be realized. These are usually characterized by low skill content and low productivity; are associated with insecurity and lack of long-term prospects; suffer from excessive vulnerability to changes in the work environment and limited access to safety nets and social protection measures. The objective of this action programme is to provide ILO constituents with a range of feasible options and viable strategies for improving the quality of employment of women workers in developing countries engaged in own-account, small business and/or new forms of employment relationships. Based on a critical assessment of past approaches, and taking into account new developments, the action programme will develop a range of feasible and viable strategies for upgrading the quality of employment of women workers engaged in activities outside the realm of conventional development programmes and social protection schemes. The outputs will include a handbook, a promotional and educational video and a modular training package for capacity building.

Appendix III

Choice of technical meetings

As indicated in the preliminary consultation document of March 1996, the Director-General considers that seven technical meetings should be selected for the next biennium. The Committee is therefore invited to choose seven meetings out of the 14 proposed meetings listed below, together with a brief description of their objectives.

1. Tripartite High-Level Meeting concerning follow-up on the World Summit for Social Development
(Costs of participants and preparation: $395,000 (1)

The objective of such a high-level meeting would be to review actions and achievements at the national level, to highlight reasons for success or failure, and to identify constraints inhibiting patterns of growth conducive to employment creation. The Meeting would identify measures to support policy and institutional reforms that may be necessary to promote the goal of full employment. It would be appropriate for the ILO to hold such a meeting involving the participation of high-level representatives of its social partners in order to ensure adequate and well-supported ILO follow-up on the World Social Summit. As well as defining future ILO action, a key aim of the Meeting would be to ensure greater public visibility for ILO activities in the field of employment promotion.

2. Meeting of Experts on Job Retention and Disability Management ($255,000)

The purpose of this Meeting would be to adopt a code of practice on job retention and disability management which would be used by governments, employers' and workers' organizations and enterprise management to develop policies and practices that favour job retention for disabled workers who return to work. The code of practice to be formulated will include guidelines concerning disability management at the workplace, on-the-job training and retraining, career advancement, the identification of redeployment opportunities, job and equipment adaptation, transport and housing issues and cost, benefit and productivity issues. The guiding theme will be how to reconcile social and equity concerns with the efficiency and competitivity of enterprises.

3. Second Enterprise Forum ($196,000)

It is proposed to organize a second Enterprise Forum, which will bring together senior managers, representatives of employers' and workers' organizations, academics and practitioners to discuss the role of enterprises and of employers' and workers' organizations in job creation and other social initiatives. The proposed agenda of the Second Forum is: job creation in small and medium-scale enterprises; the role of women entrepreneurs; and corporate social responsibility. It is proposed to finance the participation of participants from 25 developing countries and countries in transition.

4. Tripartite Meeting of EPZ-Operating Countries ($274,000)

Provision for this Meeting is already made in the Programme and Budget for 1996-97. However, it has become evident that it will be impossible to properly prepare and organize the Meeting in the current biennium. For this reason, it should be included in the programme of meetings for 1998-99. It may be recalled that it is envisaged that this Meeting will examine a report to be prepared by the Office on the following issues relating to EPZs: labour legislation and labour-management relations; occupational safety and health and working conditions; trade union activities; the economic impact of EPZs on the national economy; and the special problems of women workers.

5. Symposium on Collective Bargaining in the Industrialized Countries ($312,000)

The objective of this Symposium would be to improve understanding among tripartite and academic participants of the factors affecting collective bargaining today. The meeting would discuss changes in the pattern of collective bargaining, and identify the options available for strengthening its effectiveness.

6. Symposium on Low Pay and Minimum-Wage Fixing ($248,000)

The objective of this meeting would be to provide an opportunity for an exchange of views between employers, workers, government officials and academics, concerning the usefulness of minimum wages, and the economic and social criteria to be used in determining minimum wage levels.

7. Meeting of Experts on Ambient Factors at the Workplace ($238,000)

This Meeting was already proposed for the biennium 1996-97. Owing to the overall financial constraints, the Governing Body decided in March 1995 to postpone it. The purpose of the Meeting is to adopt a code of practice concerning ambient factors in the working environment (including air pollutants, noise, vibrations, temperature, humidity, illumination and radiation). Such a code of practice should be of direct and immediate utility to ILO constituents.

8. Symposium on Preventing Violence at Work ($174,000)

The objective of this Symposium would be: to share information and experience; to discuss model guidelines; to examine the various methods for collecting and analysing statistics on violence at work; and to examine the tools for assessing the health and safety risks arising from violence at work.

9. International Symposium on Labour Inspection and Child Labour ($376,000)

The objective of this Symposium would be to provide an opportunity to draw attention to the critical role of labour inspectors in combating and eliminating child labour; it would identify practices and approaches, and facilitate a sharing of experience in this area. This Meeting was suggested by some speakers in the Informal Ministerial Meeting which discussed child labour at the Conference in 1996.

10. Joint ILO/Council of Europe Meeting on Social Security ($131,000)

This Meeting would promote the broader application of the European Code of Social Security, ILO Convention No. 102 and other instruments in the field of social security. In addition, it would generate new impetus for cross-European multilateral cooperation in the field of social security reform. The Bureau of the Social Security Steering Committee has indicated its interest in a joint meeting. It is envisaged that the ILO might pay the costs of eight Employers' and eight Workers' representatives, as well as a contribution to the indirect costs of the Meeting.

11. Sixteenth International Conference of Labour Statisticians ($157,000)

It would be appropriate, as was already foreseen in the preliminary consultation paper, to hold the Sixteenth ICLS in 1998, five years after the last such Conference, this being the traditional interval. The work programme of the Bureau of Statistics over several biennia has been directly related to the organization of the next ICLS. This ten-day meeting would face a very full agenda, including the adoption of new statistical standards on the measurement of underemployment, the measurement of income from employment and statistics of occupational injuries (if the next proposal concerning a meeting of experts on this subject is approved). Several other topics identified by the Fifteenth International Conference as meriting further discussion will also be addressed.

12. Meeting of Experts on Labour Statistics: Occupational Injuries ($134,000)

There is an urgent need for revised statistical standards for classifying occupational injuries. The latest standards available are those adopted by the Tenth ICLS in 1962. Consequently the recently adopted ILO Code of Practice for the Recording and Notification of Occupational Accidents and Diseases (October 1994) refers to classification schemes that are out of date in certain important respects. The objective of this Meeting would be to prepare the ground for the Sixteenth ICLS to adopt a new standard on the classification of occupational injuries.

13. International Symposium on the Future of Employers' Organizations ($159,000)

It is proposed to bring together 24 experts from employers' organizations to examine the role of these organizations in the next century in the light of developments and trends in enterprise needs. This meeting was postponed from the biennium 1996-97 by a decision of the Governing Body in November 1995.

14. International Symposium on Trade Unions and the Informal Sector ($216,000)

This meeting was postponed from the biennium 1996-97 by a decision of the Governing Body in November 1995. The purpose of the Symposium is to examine trade union action to advance the interests of workers in the informal sector and homeworkers and workers engaged as contract labour. The Symposium will suggest measures that could be adopted and will draw up a specific agenda concerning measures to deal with the above categories of workers, for consideration by trade unions.

* * *

The Director-General considers that, of the above, the following proposals for meetings merit especially favourable consideration because they either concern issues on which a good deal of preparatory work has already been done by the Office (the first three items) or concern meetings already postponed from the biennium 1996-97:

1. The costs shown here refer to the direct cost of participants (travel and subsistence) and the immediate costs to the Office of organizing and servicing the meeting. Interpretation and translation costs are not included.


Updated by VC. Approved by NdW. Last update: 26 January 2000.

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