Core Labor Standards ADB-ILO Handbook.pdf

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HANDBOOK

Core Labor Standards


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CORE LABOR STANHANDBOOK


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Core Labor Standards Handbook

2006 Asian Development Bank

All rights reserved. Published 2006.

Printed in the Philippines.

Publication Stock No. 051106

The views expressed in this handbook are those of the

necessarily reflect the views and policies of the Asian Deve

Board of Governors or the governments they represent, and

Office.


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The Asian Development Bank (ADB), in its Enhanced Pove

in 2004, has reaffirmed its commitment towards its o

Asia-Pacific region free of poverty. The International Labou

commitment towards achieving decent work for all, i

supports ADBs goal of poverty reduction in the region. R

ground, ADB and the ILO have identified areas for coop

and coordination to improve their contribution to the

goals. This Core Labor Standards Handbook is a result

between ADB and the ILO.

ADB adopted a commitment to core labor standar

Social Protection Strategy in 2001. Since then, ADB en

duly considered in the design and implementation of itsThis Handbook provides information about CLS, e

between core and other (noncore) labor standards, and

good practices in the application of CLS in ADB operation

Foreword


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appendices on practical information about CLS, checklist

other information that can prove helpful to ADB staff and G

We hope that ADB staff and their Government count

Handbook useful. Nonetheless, this Handbook remains a

As more experience and examples of good practice em

elsewhere, the Handbook may be revised, enhanced andthat ADB staff and Government officials have access to

information on CLS. ADB and the ILO will continue to wor

other related issues.

Bindu N. Lohani

Director General

Regional and Sustainable

Development Department

Asian Development Bank

Manila

Lee S

Senior Adviser

Standards a

Principles and R

Internationa

G


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Acknowledgments

The Handbook was prepared under the Asian Developmen

technical assistance on Strengthening the Role of Labor

Developing Member Countries financed from ADBs Tech

Fund and the Government of Norway, with in-kind c

International Labour Organization (ILO). The completion

made possible through close collaboration between ADB

Antero Vahapassi provided overall supervision in preand undertook the final technical editing. Technical guid

support were provided by Shireen Lateef and Sonomi Ta

coordination assistance were provided by Michelle Tan,

Marife Principe, Diane Respall, Ma. Victoria Mabugat, an

The development of this Handbook benefited from tand suggestions of the following ADB and ILO colleagues: C

Candice McDeigan, Sri Wening Handayani, Michiel Van de

Paritha Tritasavit, Toshio Kondo, Robert Barclay, Axel Web

S t C t Th F k H K t


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Abbreviations

ADB Asian Development Bank

CLS core labor standards

DMC developing member country

ILO International Labour Organization

ILS international labor standards

IPEC International Programme on the Elimina

IPSA initial poverty and social analysis

LFPR labor force participation rate

NGO nongovernment organization

PCR project completion report

PPER project performance evaluation reportPPTA project preparatory technical assistance

RETA regional technical assistance

RRP report and recommendation of the Pres

SLMA summary labor market assessment

NOTE

I thi t $ f t US d ll


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Contents

FOREWORDFOREWORDFOREWORDFOREWORDFOREWORD

ACKNOWLEDGMENTSACKNOWLEDGMENTSACKNOWLEDGMENTSACKNOWLEDGMENTSACKNOWLEDGMENTS

ABBREVIAABBREVIAABBREVIAABBREVIAABBREVIATIONSTIONSTIONSTIONSTIONS

PPPPPART 1. INTRODUCTIONART 1. INTRODUCTIONART 1. INTRODUCTIONART 1. INTRODUCTIONART 1. INTRODUCTION

BackgroundBackgroundBackgroundBackgroundBackground

A. Context of the Handbook

B. ADB and ILO Working Together

C. ADBs Social Protection Strategy in Relation t


D. Purpose of the Core Labor Standards Handbo

International Core Labor StandardsInternational Core Labor StandardsInternational Core Labor StandardsInternational Core Labor StandardsInternational Core Labor StandardsA. What are International Labor Standards?

B. Importance of Labor Standards

C. ADBs Actions to Promote Respect for ILS

D. What are Core Labor Standards?

E. Locating Information on CLSF. CLS in ADB Operations

PPPPPART 2. CORE LABART 2. CORE LABART 2. CORE LABART 2. CORE LABART 2. CORE LABOR STOR STOR STOR STOR STANDARDSANDARDSANDARDSANDARDSANDARDS


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D. Why ADB Needs to Take Action on Discriminat

Employment and Occupation

Elimination of All FElimination of All FElimination of All FElimination of All FElimination of All Forms of Forms of Forms of Forms of Forms of Forced or Compulsory Labororced or Compulsory Labororced or Compulsory Labororced or Compulsory Labororced or Compulsory Labor

A. Nature of the Problem

B. What is Forced or Compulsory Labor?C. ILO Conventions on Forced or Compulsory Labo

D. Why ADB Needs to Take Action on Forced or

Compulsory Labor

FFFFFreedom of Association and the Effective Recognition of treedom of Association and the Effective Recognition of treedom of Association and the Effective Recognition of treedom of Association and the Effective Recognition of treedom of Association and the Effective Recognition of tRight to Collective BargainingRight to Collective BargainingRight to Collective BargainingRight to Collective BargainingRight to Collective Bargaining

A. What are Freedom of Association and the Righ

Collective Bargaining?

B. Special Areas of Concern

C. ILO Conventions on Freedom of Association an

Right to Collective Bargaining

D. Why ADB Needs to Take Action on Freedom of

Association and Right to Collective Bargaining

PPPPPART 3. CORE LABART 3. CORE LABART 3. CORE LABART 3. CORE LABART 3. CORE LABOR STOR STOR STOR STOR STANDARDS IN ADB OPERAANDARDS IN ADB OPERAANDARDS IN ADB OPERAANDARDS IN ADB OPERAANDARDS IN ADB OPERATIONSTIONSTIONSTIONSTIONS

Core Labor Standards in Country Strategy and ProgramsCore Labor Standards in Country Strategy and ProgramsCore Labor Standards in Country Strategy and ProgramsCore Labor Standards in Country Strategy and ProgramsCore Labor Standards in Country Strategy and Programs

A. Core Labor Standards in ADB Country Poverty A

B. Child Labor in the Country Strategy and Progra


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Core Labor Standards in Project DesignCore Labor Standards in Project DesignCore Labor Standards in Project DesignCore Labor Standards in Project DesignCore Labor Standards in Project DesignA. General Principles during the Pre-design Phas

B. Core Labor Standards in the Project Design P

C. Child Labor in Project Design

D. Addressing Equality and Discrimination in Pro

E. Forced or Compulsory Labor in Project DesignF. Freedom of Association and Right to Collectiv

in Project Design

G. Proactive Investments to Put Core Labor Stan

into Practice

Core Labor Standards in Project ImplementationCore Labor Standards in Project ImplementationCore Labor Standards in Project ImplementationCore Labor Standards in Project ImplementationCore Labor Standards in Project Implementation

A. Preparing the Bidding Documents

B. Implementing a Project

C. Summary of Monitoring Activities for Compli


D. Project Completion and Postevaluation

ADDITIONAL REFERENCESADDITIONAL REFERENCESADDITIONAL REFERENCESADDITIONAL REFERENCESADDITIONAL REFERENCES

APPENDIXESAPPENDIXESAPPENDIXESAPPENDIXESAPPENDIXES

1 Directory of ILO Offices in Asia and the Pacific

2 ILO Supervision of the Application of Conven

3 Summary Labor Market Assessment

4 Key Indicators of the Labor Market


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Part 1Introducti


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BackgroundBackgroundBackgroundBackgroundBackground

Only decent work for allthat is work that is carrie

freedom, equity, security and human dignitycan provide

for the global economy. This is the concept of decent wo

Juan Somavia, D

Because Asia is home to two thirds of the worlds global poverty must be won in this region. We must

achieving our visiona region free of poverty. This is n

Asia and Pacific region can be free of poverty. This will l

poverty. We must move strongly and swiftly from vision

Tadao Chino, Fo


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A. Context of the Handbook

The goal of an Asia and Pacific region free of poverty clearl

of the Asian Development Bank (ADB). The overarching goa

Labour Organization (ILO) is decent work. The two obje

common.1They are two sides of the samecoin with the com

justice and sustainable economic development for people

and the ILO are working together on ways to reach these g

a memorandum of understanding2 that identifies area

organizations can cooperate, collaborate, and coordinate act

national, and enterprise levels.

This Core Labor Standards Handbook is an example

and collaboration. The two organizations have worked tog

practical publication to encourage and assist policymakers

regional levels, ADB staff, project teams, consultants, and

executing/implementing agencies involved in the design an

country programs and projects to take into account core lwherever and whenever appropriate.The challenge is to con

that the introduction of CLS and labor standards in gen

development. On the contrary, respect for basic human ri

the legal and regulatory structures to implement them, assis

and society as a whole in the quest for sustainable economicsocial development.

This Handbook gives some basic information on interna

at ways in which they can be incorporated into A

d i h i f li


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This Handbook describes the CLS and how to inteoperations, whenever necessary. It was developed by ILO

regional technical assistance.4

B. ADB and ILO Working Together

In ADBs view, poverty is characterized by the lack of acc

services, assets, and opportunities to which every hum

Everyone should be free from hunger, should be able to liv

have access to basic education and primary health care se

context of this Handbook, one of the main challenges i

failure to respect labor standards places an economic o

development in DMCs. If ADB is to take account of these

it must be on a sound economic basis and not just a soc

ILO, which is a specialized agency of the United Nation

to the attainment of social justice through the promotion

strategic components of CLS, employment, social protectiocross-cutting gender issues, in order to enable men and w

and productive work in conditions of freedom, equity, secu

ADB and the ILO recognize the expertise of each org

establish an operational framework and practical modalitie

which focus on development issues, including

(i) consultations between the two organizations on

and assistance plans, and, where appropriate an

b h i l ff i


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where ADB is planning a social protection intervesocial protection strategy;5and

(iii) assistance from ADB to ILO in the development of

programs through interagency consultations.

C. ADBs Social Protection Strategy in ReCore Labor Standards

Progress in ensuring compliance with CLS has been uneve

is prevalent in many developing countries and bonded labo

Asian countries. Discrimination at the workplace for such

race, caste, age, and religious and political beliefs, is widgovernments in the region repress unions and impede w

association and from discussing their working condition

exposed to health hazards and suffer accidents that can

overwhelming evidence that decent working conditions r

living standards, and improve economic growth. For tcountries and development agencies are supporting improv

Since the approval of ADBs Social Protection Strategy7

CLS have become an integral part of ADBs development m

Protection Strategy and its Action Plan commit ADB to c

and guide ADB operations to good labor and social protecIn the context of ADBs work, social protection is define

and programs designed to reduce poverty and vulnerability b

labor markets, diminishing peoples exposure to risks, and en

h l i h d d i i l


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(iv) micro and area-based schemes to protect com(v) child protection.

Within ADBs long-term strategic framework for 2001

term strategies, the social protection priorities for the Asia

the design of sound, comprehensive social protection prreduce poverty and vulnerability, including

(i) interventions to protect communities and the i

(ii) child protection; and

(iii) labor market programs to ensure productive

working conditions, and improved human cap

D. Purpose of the Core Labor Standards

This Core Labor Standards Handbook gives practical kn

operations can comply with the CLS. It does not introducompliance requirements for ADBs operational staff. Th

Handbook is to provide information about CLS, explain t

core and other (non-core) labor standards, and finally, t

opportunities, and examples of good practices about th

ADBs operations. In order to give a comprehensive pioperations, the Handbook is not limited only to project l

it also covers the planning and design of country strateg

The Handbook is meant to be used by ADB operations

i j d i d i l i b i l


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States. These rights are a precondition for all the others innecessary framework from which to strive freely to imp

collective conditions at work. Part 3, Core Labor Standard

presents ideas about how ADB could integrate CLS in its o

Handbook includes several appendixes that include practica

checklists, ILO contact information, and others.


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Internatio

International Core LabStandards

The increasing attention to and international discourse o

especially on CLS, is an inevitable consequence of globaliza

of current economic undertakings create new work arrang

processes, cultivate complex supply chains, and facilitat

capital and production units, working people in many

quantum leaps (and falls) of the global economy.

Just like democracy, the concept of labor standardoften misunderstood. Efforts to implement them in nation

been seen as anti-business, investment disincentive,

no place in the free market, and as a hindrance to comp

to include this concept in trade discussions have earned it

measure, a job killer, and a western protectionist mcall it market rigidity and a desirable incentive withou

Over the last decade, attitudes have begun to chan

and corporate social responsibility initiatives cove

environmental protection, and workers rights have em

debate on labor standards continues. In a recent issue o

Labor Review, an econometric study by David Kucera co

evidence is found in support of what has been referred t

wisdom, namely, that foreign investors favor count

d d i d d ll id f i i l i ifi


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importance than price, quality, and speed of delivery. ComMarks and Spencer are still continuing to source supplies

the same reason.10

A. What are International Labor Standard

Labor standards are simply the rules that govern how pe

working environment. They come in a variety of forms a

local, national, and international levels. Taking account o

standards does not necessarily mean applying complex leg

situation; it can be as simple as ensuring that basic rules

good governance have been taken into account.Labor standards cover a very wide variety of subjects, ma

human rights at work, respect for safety and health, and ens

paid for their work. They also extend to questions of good

labor inspection and basic labor administration. In an econo

important for raising productivity and competitiveness overAt the national level, labor standards are usually set by l

Some can also be found in collective agreements. Normally

contracting partiestrade unions and employersbut on

countries, they acquire the force of law for the entire countr

At the international level, labor standards are fou

conventions and recommendations. International labor

important for two reasons. First, they represent the interna

minimum best practices, whether on human rights genera

l b d d i di l i


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Internatio

B. Importance of Labor Standards

1. The Economic Argument for Labor Standards

Putting labor standards into practice improves the econo

developing countries argue that keeping labor costs low is

advantage in manufacturing and services. This is not corrtake into account the productivity-increasing effect of la

respect for basic workers rights has a negative impact o

the people directly affected by these problems. Labor sta

both to assist development and to measure progress tow

are both instruments and indicators.

2. Good Governance and Labor Standards

Good governance demands that labor standards be set

for peoples rights in their most basic economic activi

government to protect them, is in itself support for the cRespecting labor standards, in whatever form, has a

governance benefits; for example, it

(i) builds respect for the law,

(ii) increases respect for human rights,(iii) promotes decent work,

(iv) improves dialogue between social partners, an

(v) improves prospects for exports as importing


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3. Human Rights and Labor Standards

It should also be kept in mind that many labor standard

recognized human rights, contained in international conven

universally ratified, including by most DMCs. There is a g

consensus that human rights are indivisible and have to be

C. ADBs Actions to Promote Respect for

From an ADB perspective, it is useful to take labor stand

order to provide assistance to DMCs. The issue is how this

are various levels and ways to promote labor standards, asof recommendations drafted at the ADB/ILO Regional W

Standards in September 2002 (Box 1).

D. What are Core Labor Standards?13

CLS are a set of four internationally recognized basic rights a

(i) freedom of association and the effective recogn

collective bargaining,

(ii) elimination of all forms of forced or compulsory

(iii) effective abolition of child labor, and(iv) elimination of discrimination in respect of employm

While there are many types of labor standards, the fo


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Internatio

Box 1: Recommendations from the Asian Dev

International Labour Organization Reg

on Labor Standards, 2002

Strengthen Country Programming StrategiesStrengthen Country Programming StrategiesStrengthen Country Programming StrategiesStrengthen Country Programming StrategiesStrengthen Country Programming Strategies. Th

standards consideration in the Asian Development

programming strategies should be strengthened to

based poverty and social analysis and to highlight

to be addressed.

Strengthen Project Design.Strengthen Project Design.Strengthen Project Design.Strengthen Project Design.Strengthen Project Design. The inclusion of labor sta

should be strengthened in the planning, design, an

all ADB activities, as approved by ADB in its Social

Respect for labor standards should be addressed as

as a matter of ADBs corporate social responsibility.

Strengthen Project ImplementationStrengthen Project ImplementationStrengthen Project ImplementationStrengthen Project ImplementationStrengthen Project Implementation. Violations of

the implementation of ADB-funded activities, or fand subcontractors to observe the standards th

implement, should be prevented. ADB has limited c

of the employment conditions of its projects. A p

request social audits from its contractors or reports

stakeholders (e.g., labor unions). Review Procurement DocumentsReview Procurement DocumentsReview Procurement DocumentsReview Procurement DocumentsReview Procurement Documents. Procurement do

reviewed to ensure that they meet these requirem

to incorporate general clauses on labor standards in


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Ensure Cost-Effectiveness.Ensure Cost-Effectiveness.Ensure Cost-Effectiveness.Ensure Cost-Effectiveness.Ensure Cost-Effectiveness. The measures necessary t

of labor standards may involve additional costs of imp

has to be taken (i) not to construct implementation mhigh level that it is uneconomical to carry out econo

projects, (ii) to build the costs of implementation o

into the costing of economic activities and project

(iii) to ensure that respect for labor standards is never

barrier or protectionist measure.

Develop Capacity and TDevelop Capacity and TDevelop Capacity and TDevelop Capacity and TDevelop Capacity and Training.raining.raining.raining.raining. The measures neede

standards require training and familiarization of

contractors, and subcontractors, and probably the a

skills. A training program should be put into place, o

on labor standards has been established.

Raise Public Awareness.Raise Public Awareness.Raise Public Awareness.Raise Public Awareness.Raise Public Awareness. Public information campaigns

of public opinion on the long-term benefits of respecti

and how the cycle of poverty is reproduced by violatin

Involve Different Stakeholders and Institutions.Involve Different Stakeholders and Institutions.Involve Different Stakeholders and Institutions.Involve Different Stakeholders and Institutions.Involve Different Stakeholders and Institutions. Ens

with labor standards requires positive involvement o

organizations, such as employers associations, lcommunity and civil society groups. Proper invo

institutions is particularly required for conflict resolut

that more than 350 million new jobs are needed in

Box 1(continued)


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Internatio

on the Rights of the Child, 1989. Their most prominent recDeclaration of the 1995 Copenhagen Summit on Social D

The ILO further substantiated the CLS in 1998 by t

Fundamental Principles and Rights at Work,14which c

countries to comply with the four principles, regardless

ratified the relevant conventions. It also identified a organizations, such as the World Bank and ADB, in prom

While each of the CLS corresponds to one or mo

country may be in compliance with a core standard even i

not been ratified. Conversely, the fact that a country ha

does not automatically prove its compliance with that

domestic legislation and practice must be considered.

It should be recalled that an obligation to respect

part of membership in the ILO. The CLS form more

obligations when the conventions containing them are r

There are additional standards that develop aspects

those on workers with family responsibilities, protectio

working hours for young workers, and industrial relations

cover such subjects as

(i) occupational health and safety (OHS);

(ii) employment promotion, including mechaexchanges, etc.);

(iii) minimum wages and payment of wages;

(iv) social security;


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E. Locating Information on CLS

There are many sources of information on the status of CLS

most important partner on issues related to labor standa

country teams preparing country strategies and program

encouraged to contact staff from ILO country offices (App

unions and employer organizations are also important sou

Of course, another potentially key source of information on

are treated in a country is ADB staff members own observat

gleaned from their networks on the ground. ILO supervisio

of conventions is explained in Appendix 2.

F. CLS in ADB Operations

Since the approval of ADBs Social Protection Strategy in S

have been an integral part of ADBs development mission

action plan commit ADB to comply with these core labor

ADB operations to good labor and social protection prac

excerpt from the Strategy highlights ADBs commitment:

Vulnerable groups that may be negatively a

intervention must be adequately compensated and

put in place to avoid creating further poverty (e.gprivate sector restructuring, workers, particularly

should not be unfairly disadvantaged, regardless o

age, or religious and political beliefs);16 mitigati


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Internatio

(i) in the design and formulation of its loansthe internationally recognized CLS;

(ii) take all necessary and appropriate steps t

financed procurement of goods and s

subcontractors and consultants will com

labor legislation (e.g., minimum wages, saand social security contributions, etc.) as w

As part of its regular loan reviews, ADB will mon

complied with.

The 1998 ILO Declaration on Fundamental Principle

specifically asks international organizations, such as d

promote an atmosphere conducive to the achievemen

although compliance with CLS may not be a condition f

assistance in client countries, ADB staff are encouraged t

relating to CLS in formulating CSPs and individual loan p

how can ADB staff, project teams, etc., ensure that CL

operations? How can they find out if CLS are being respe

of the operational cycle can CLS be incorporated to ensure

goal, strategic objectives, and operational priorities are m

concerns the relationship of CLS and other labor standard

comply with CLS in the design and formulation its loanapply literally to the rest of the labor standards. Howe

notice that several labor standards have either been ratifi

or integrated into its labor legislation. Therefore, it is ne


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(i) effective abolition of child labor,(ii) elimination of discrimination in respect of employm

(iii) elimination of all forms of forced or compulsory

(iv) freedom of association and the effective recogn

collective bargaining.


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Effectiv

Part 2Core Labo

Standards


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Effectiv

Effective Abolition ofChild Labor

A. Nature of the ProblemChildren enjoy the same human rights accorded to all p

knowledge, experience or physical development of adu

defend their own interests in an adult world, children also

protection by virtue of their age. One of these is prote

exploitation and from work that is dangerous to the healthor which hampers their development.

Millions of children worldwide are engaged in labor

education, development, and future livelihoods; many o

the worst forms of child labor, those that cause ir

psychological damage, or that even threaten their liveintolerable violation of the rights of children; it per

compromises economic growth and equitable develo

abolition of child labor is an essential element of achi

decent work for all women and men. It is also an essen

quest for poverty reduction as described in the ADBAnnual

Develop a Child, Develop a Nation.

ILO has collected information worldwide about childr

occupations. The following summary highlights the over


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8.4 million of 246 million were involved in the forms of child labor;20

Some 127 million children aged 514 years are e

the Asia and Pacific region, or 60% of the w

economically active children in that age group.

Although urban street children and children in facto

manufacturing have received considerable attention, far

employed in agriculture and domestic service. Child labo

rural than in urban areas, and three quarters of working ch

family enterprises.

B. ILO Conventions on Child Labor

There are two basic conventions on child labor adopted

adopted by the United Nations. The ILO Minimum Age

(No. 138) and its accompanying Recommendation (No. elimination of child labor, and the basic minimum age for

(in developing countries at 14 years of age or the end of co

whichever is higher; and 15 or the end of compulsory sch

countries). The Convention sets a minimum age of 2 yea

work, i.e., 12 and 13 years, respectively; and a highe

dangerous or hazardous work (basically 18 years of ag

circumstances). The Convention also has various other flex

h i i i h i i i


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Effectiv

Hazardous workHazardous workHazardous workHazardous workHazardous work. The employment of young pe16 years may be authorized, after consultation

employers and workers, on condition that th

morals are fully protected; and they have rece

instruction or vocational training in the relevan

Light workLight workLight workLight workLight work is work which is not likely to be ha

development of the young persons concerned

prejudice their attendance at school or their par

orientation or training programs.

In June 1999, the ILO adopted the Worst Forms of C

(No.182) and Recommendation No.190, which target th

labor as a matter of urgency. Convention No.182 app

economic activity and requires immediate action, rega

economic development of the ratifying country. It is a

need to take immediate action to eliminate the intoler

children face and to help them recover and lead healthy of child labor are

(i) all forms of slavery or practices similar to slaver

trafficking of children, debt bondage, and se

compulsory laborincluding forced or compchildren for use in armed conflict;

(ii) use, procurement, or offering of a child for pros

pornography, or pornographic performances;


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C. Why ADB Needs to Take Action on Chi

Abolition of child labor is not just another aspect of basi

increasingly recognized as being crucial to reducing povert

labor is not only a consequence but also a cause of povert

benefits to families, child labor deprives the young of the

stunted growth, removes children from education and sdeprives them of the possibility of studying and becomi

adults. While it may be difficult to accomplish quickly in

abolition of child labor is nevertheless a basic goal of de

(see, e.g., Box 2).

The principle of the effective abolition of child labor every girl and boy has the opportunity to develop physically

or his full potential. Its aim is to stop all work by children t

education and development. This does not mean stopping

by children. International CLS allow the distinction to be

constitutes acceptable and unacceptable forms of work forages and stages of development.

The principle covers both formal employment and th

where, indeed, the bulk of the unacceptable forms of c

found. It covers family-based enterprises, agricultural und

service, and unpaid work carried out under various custo

whereby children work in return for their keep.

The ADBAnnual Report 2000, subtitled Develop a Chi

stated that if ADBs vision of a region free of poverty is

d hild d b h l h ll i h d d


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Effectiv

Box 2: Street Children

Street children often lack control over their situation

change it. On the street, they are vulnerable to consid

problems. They are more likely than other children to

more likely to engage in criminal behavior and substa

to be forced into child prostitution or be victimized b

more likely to be without hope and engage in destru

behavior. They are also likely to be engaged in hazard

Although the list is harrowing, street children face a

term threat to their rights and their future: the likelih

the opportunity to fulfill their potential.

Following the United Nations rights-based approa

the Asian Development Bank (ADB) is committed to h

lives of citizens of its developing member countries (D

that everyone should have access to basic education services, and that people over the age of 15 years have

support themselves and to receive fair reward for their

people have the right to a degree of protection to

many street children, this access and these rights ar

dreams.Under the Social Protection Strategy (2001) and in

DMCs, ADB is exploring ways to help street children.

components designed to help street children can fit w


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With children and youth comprising 40% of DMCprotection is vital to the development of the region. It is also

of ADBs development mission.

This is also a basic aim of the ILO, whose Internatio

Elimination of Child Labor (IPEC) is active in many count

Pacific. This is ILOs largest and most widespread technical

and there are significant advantages to ensuring ILO and ADB

possible on this issue.

Eli i i f Di i i i E


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Elimination of Discrimination Emp

Elimination of DiscrimiEmployment and Occu


Discrimination in one form or another occurs in the wo

throughout the world. Discrimination at work can

Discrimination is direct when regulations, laws, and polic

disadvantage workers on the basis of characteristics suc

marital status or sex. Prejudices and stereotypes are nodirect discrimination (see Figure 1).

Figure 1. The Vicious Cycle of Discrimination and Inequality

DIndividual attitudes and

institutional structures,procedures and practices

informed by stereotypes andprejudices.

Socio-economicinequalities

C L b St d d H db k


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groups, such as women, ethnic or racial minorities, and mlabor market makes them vulnerable to such abuses as fo

labor. Barriers to decent jobs often lead parents belonging t

a denigrated caste to resort to the labor of their children t

A more equal distribution of job opportunities, prod

assets, including education, between men and women

religions, or ethnic origins, contributes to higher growth a

The elimination of discrimination at work is an indispensab

strategy for poverty reduction and sustainable developme

of the ILO mandate and the concept of decent work, and it

ADBs strategic development objectives, namely gender an

Discrimination at work may manifest itself in access to a j

a job, or through dismissal from a job. Individuals who fa

access to a job tend to continue experiencing discriminatio

a vicious cycle of cumulative disadvantage. It applies to s

entrepreneurship as well as to employment.

Discrimination at work does not result just from isolatedor a worker or from a single policy measure. Rather, lab

practices and institutions either generate and reinforce, o

discrimination. Institutions and practices are not set in stone

to promote equality.

In the 1980s and 1990s, the range of occupations in employed broadened in a majority of countries, especially in

(Organisation for Economic Co-operation and Developmen

developing countries where occupational segregation wa



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A common trend in the region is a shift from laws thatto laws that provide for a positive duty to prevent discri

equality. These seem to be more effective in tackling

discrimination, such as occupational segregation. From AD

policy, beyond legislation, is also helpful in addressing d

for example, public procurement policies can be a powe

discrimination at work against members of minority g

disabilities.

B. What is Discrimination in Employme

Occupation?

Discrimination in employment and occupation takes ma

all kinds of work settings. But all discrimination shares

treating people differently because of certain characterist

sex, age, social origin or religion, which results in the imp

opportunity and treatment. In other words, discrimination

inequalities.

1. Elimination of Discrimination is Central to Soc

As indicated earlier, the elimination of discrimination at w

justice, which lies at the heart of ILOs and ADBs mandadiscrimination is an indispensable part of any viable strateg

and sustainable economic development.



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3. A Specific Example: Gender Discrimination aEmployment and Income-generating Activities

Inequalities in access to education and training, ineq

productive resources, reproductive responsibilities, and the st

roles all constrain womens opportunities for entry or re

force. Women remain disadvantaged and discriminated structures and policies, in labor market structures, in all

activity, and in access to economic resourcesincluding

and technology. Even when they are part of the labor force

face various forms of discrimination and disadvantage th

rights set out in CLS (Box 3). Womens contributions, eunremunerated work and other types of nonmarket activity,

unrecognized, or undervalued.

In spite of becoming fully committed members of the

unlike men, have to balance child-care responsibilities with em

Relative to men, women still face

(i) unequal hiring standards;

(ii) limited hiring opportunities;

(iii) unequal (limited) opportunities and choices for

and skill development;

(iv) unequal (lower) pay for equal work or work of e

(v) unequal (limited) access to productive resources;

(vi) segregation and concentration in a relatively sma

d i i l di i i f l



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Box 3: Womens Participation in Road Construct

Tree Planting in Bangladesh

The Third Rural Infrastructure Development Project (TR

Bangladesh is funded by the Asian Development Bank (

of TRIDP is to accelerate economic growth thro

development by creating access to economic activities

Infrastructure is considered a mans domain. How

in rural Bangladesh, women are gradually participat

activities. As in most parts of the world, construction ac

are implemented by private contractors who typically women laborers. Women are often allocated the least

paid lower daily wages than men for similar tasks. Thu

orientation sessions and required 604 contractors to

female laborers so they can undertake more skilled ta

pay for equal work. The contractors were also requiand provide basic services like water and sanitation

laborers.

Reaching wage parity for women in construction

possible under project requirements and close monito

women have been able to receive equal wages and access to higher skilled work.

a ADB.1997.Third Rural Infrastructure Development Project (TRIDP). Ma

is also supported by the International Fund for Agricultural Development (



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4. Regional Perspective

23

a. Participation of Women and Men in the Labor Fo

A primary indicator of gender gaps in terms of labor mar

the labor force participation rate (LFPR) of women and men.

on gender equality in the world of work in the Asia and Pathat womens LFPRs do vary considerably in the region bu

depend on high levels of economic growth. In Bangladesh,

where womens LFPRs in 2000 were 67.4%, 58.3%, and 4

great improvements in womens LFPRs have occurred in s

levels of economic growth. Of course, in making compariso

account must be taken of possible differences in definit

participation, unemployment, etc.26Also, traditions in a so

in determining whether or not women consider themselv

labor force. However, given these anomalies, it is still wor

for women are generally significantly lower than those fo

77.3% for women and 86.9% for men in East Asia, 64% f

for men in Southeast Asia, to 46.5% for women and 85.7

and Central Asia, and 41.6% for women and 81.2% for m

the Pacific region, womens LFPRs range from 38% in the

Australia and 81.9% in the Solomon Islands.

In the high-growth countries, women are underragriculture (except in Indonesia, Japan, Republic of Korea

industry, but overrepresented in services. In low-growth co

in transition women are overrepresented in agriculture b



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p

b. Characteristics of the Female Labor Forcei. Overrepresentation in Unremunerated Work

The ILO report on gender equality in the Asia and Pac

level research clearly indicate that a large proportion of w

the formal or informal economy, is unremunerated, b

unaccounted for in the economy.

ii. Unemployment and Underemployment

In the region, unemployment rates for women tend

men. For example, in Bangladesh, research indicates th

garment industry, once the special concession given to taway, the main burden of job loss would have to be borne

Apart from the constraints that women face in terms of acc

employment and remunerative work, they also fac

discrimination in the labor market, which makes them m

than men, as in the Asian financial and economic crisis. In

industries of Thailand, the share of women in the total o

crisis was 7090%.

Another important characteristic of womens emplo

underemployment in terms of the hours worked.

underemployment is a more serious problem for wom

underemployment of women seems to have increased for

during the 1990s. In Bangladesh, while there was little

female unemployment rates, the underemployment

diff l d l ill l h



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(UNIFEM) data of 1997 on six Asian countries show thatpercentage of male wages are generally higher in the industr

(e.g., Republic of Korea, 62%; Singapore, 76%; Sri Lanka,

72%) than in the manufacturing sector (Republic of Kore

60%; Sri Lanka, 85%; and Thailand, 68%).27

Country-level research conducted in 2002 in Banglades

and Thailand gives some further indications about the wag

region.28In Bangladesh, data for 1995/96 indicate that wo

of pay in both the agricultural and the nonagriculture secto

or less compared to mens pay. In the rural/agriculture secto

ratio of male to female wage rates went up from 1.36 in

1995/96. When men and women did the same kind of jo

difference in pay favoring men, but of a much smalle

nonagricultural occupations, the same ratio over that per

1.67. In the public sector, wage-based discrimination was m

to womens relative access to high-level jobs. In the priva

and particularly in the female-dominated garment industrat low levels of education of both men and women, there

male/female wages favoring men. However, at higher lev

wages for women were higher than those of men.

In Thailand, the average wages of women in the priva

8088% of male wages. In the public sector, the differenwas small and had gone down during the previous 4 years

not mean that women had an equal share of jobs at all ru

in the civil service.



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advantage in earnings is bigger, indicating that women dup the promotional ladder. Even in professional occupatio

workers would presumably be self-employed, the fema

70% or below compared to male earnings. Another, rath

that married women fare worse than unmarried women

report that, overall, over the 1990s, differentials in mal

had been shrinking in the Philippines, could be partly due

raised wages of public sector workers at lower ranges.

In Nepal, there was a marked shortfall in women

mens wages in agriculture; but in construction, the d

two was small. Interestingly, male wages were significan

developed areas, indicating that where other employm

available, they push up the opportunity cost of male la

womens. In the organized sector of Nepal, minimum w

are higher than for men in several industries, including

mining and quarrying they are usually on par with those

wage rates in almost all industry groups were significant

iv. Concentration in the Informal Economy

While both men and women are employed in inform

based jobs throughout the region, women take up the lar

in both Bangladesh and Nepal, about 90% of women w

7080% of male workers are involved in informal econ

jobs. In Bangladesh, there is also a significant difference

male and female workers between formal and informal jo



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5. Other Forms of Discrimination in the Labor Forc

It is gender discrimination that has attracted the most r

consequently more data are available on it. But other bases

also widespread throughout the region, and must be kept in

Other prohibited grounds of discrimination appear in

instruments and in national legislation. These include race, copinion, national extraction and social origin (i.e., caste), all

by ILO Convention No. 111. Other international conventio

such characteristics as language, birth, or other status (e.g

was born in wedlock), age, health or HIV/AIDS status, and

Many of the negative effects of gender-based discrimabove apply also to these other forms of discrimination

differences. While other forms of discrimination are unlikely

work-and-family burden known by women almost ever

religious discrimination can deprive entire regions from acc

training. It can determine the kinds of investments govern

regions and can, of course, lead to civil unrest and inter

countries, governments decide not to keep statistics on rac

can further complicate the process of identifying and comb

discrimination.

C. ILO Conventions on Discrimination in EmOccupation

The first binding international instrument to be adopted with



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whether in cash or in kind, by the employer to

out of the workers employment.

For the purpose of the Convention, the term eeeee

men and women workers for work of equal va

remuneration established without discriminat

indirectly, on sex.

Where differential ratesdifferential ratesdifferential ratesdifferential ratesdifferential rates between workers corre

to sex, to differences in the work to be perform

an objective appraisal, these must not be consid

to the principle of equal remuneration.

These instruments were shortly followed, in 1958, bILO of the Discrimination (Employment and Occupation)

and Recommendation No. 111, which address all fo

concerning employment and occupation.

The main issues in Convention No. 111 are:

Discrimination:Discrimination:Discrimination:Discrimination:Discrimination: any distinction, exclusion or pr

basis of race, color, sex, religion, political opini

or social origin (or such other ground as may be

concerned), which has the effect of nullifying oopportunity or treatment in employment or oc

Each State that ratifies the Convention undertake

a national policy designed to promote equali



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- ensure observance of the policy in emp

guidance, vocational training and placemen

direction of a national authority; and

- indicate in its annual reports on the applicati

the action taken in pursuance of this policy.

D. Why ADB Needs to Take Action on Disc

Employment and Occupation

Gender, ethnic, religious, or other biases prevent a large sec

from operating optimally. At one time, labor-surplus countr

to specialize in labor-intensive industries employing large nuworkers, mainly women. However, for a sustained and stea

periods, a country has to build its human capital and mo

services using more sophisticated skills.

In developing countries, a large part of the domestic

land, and capital) is used in activities of the self-employed

and these activities together produce a significant sect

product. Increasing the productivity of these activities and

engaged in them is essential for the country to reach a hig

growth.

For poor households, the only available productive res

its members. Unless they can find work that is sufficient

household remains mired in poverty. One consequence

children of the households to join the workforce. As discus

hild l b hi h hild j l d i d

Elimination of All Forms of For


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Elimination of All FormForced or Compulsory


Forced labor is universally condemned. Yet the elimina

formsold and new, ranging from slavery and debt

traffickingremains one of the most complex cha

communities, national governments, employers and w

and the international community. It is revealing ugly neold. Traditional types of forced labor, such as chattel slav

still exist. In economic contexts, disturbing new forms, s

connection with the trafficking of human beings, are no

perspectives of ILO and ADB, forced labor contravenes their

The abusive control of one human being over another is t

work and impedes poverty reduction. Clearly, there is a nee

patterns of forced labor in the region as well as country-s

information is needed to assist ADB decision makers in

how best to tackle the problem, assess priorities, an

interventions against forced labor.

Vital questions include



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The first minimum global estimates of the numbers

labor were given in the ILO second Global Report on fo

12.3 million people globally are victims of forced labor, m

of them have been trafficked, 9.8 million are exploited by

2.5 million are forced to work by the state or by rebel

majority of forced labor in the world is in Asia and the Pa

It is not always possible to give an accurate estimate of t

on a national/local scale; or to take into account in detail th

of different categories as a basis for targeted action. The r

forced labor is inevitably in the illicit, underground econo

escape national statistics. Further, those statistics that a

sufficiently robust to get a true picture of forced labor.Even without a full statistical picture or in-depth soc

there is enough evidence to detect a serious problem. Pre

necessary to enable ADB efforts to combat it in project act

There are many different types of forced labor, but they a

features: the exercise of coercion and the denial of freedom. Tof forced labor first came to be associated with colonial

twentieth century and remnants of serfdom. Then came the

labor camps, and other forms of compulsory labor. Wit

consolidation of democratic regimes, together with more o

renewed commitments to fight poverty and transnational cr

hope that forced labor can be relegated to the past.

Some aspects of forced and compulsory labor remain ten

slavery-like systems such as debt bondage, a form of forc



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B. What is Forced or Compulsory Labor

Paradoxically, there is still some uncertainty among countrie

practices do or do not constitute forced labor. It is im

understand some of the basic elements of forced labor (Bo

helps to assess the scope of the problem of forced labo

making. It will also help in discussions with all stakehattention on any covenants or conditions attached to a l

The diverse forms of forced labor today include

slavery and abduction,

compulsory participation in public works proje forced labor in agriculture and remote rural are

recruitment systems),

domestic workers in forced labor situations,

bonded labor,

forced labor imposed by the military,

forced labor in the trafficking of persons, and

some aspects of prison labor and rehabilitatio

Certain groups, such as women, ethnic or racial minori

and above all the poor, are particularly vulnerable to thes

of forced labor. Situations of armed conflict can also com

1. Slavery and Abductions



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Box 4: ILO Conventionsaon Forced or Compulso

LaborDefinitions

Forced laborForced laborForced laborForced laborForced labor is a legal term as well as an economic phen

is not possible to respect, promote, and realize th

elimination of all forms of forced or compulsory labor

what the phrase means. The full definition contains ex

basic idea was set out in the first International Labour O

convention on the subject, the Forced Labour Conventi

(Article 2(1)): The term forced or compulsory labor sha

service which is exacted from any person under the menand for which the said person has not offered himsel

penalty referred to need not be in the form of penal sa

take also the form of loss of rights or privileges.

There are also exceptions allowed in the ILO conven

service under compulsory military service laws is exemptpurely military purposes. Work or service that is part o

duties, such as jury duty, is not prohibited; nor is comp

emergency, or communal work that is an obligation of the

Prison labor is exempt from the definition, but only if

consequence of conviction in a court or law, and is car

supervision of a public authority; and prison labor may n

a private company or individual without the consent of t

labor for such reasons as mobilizing for economic develop



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bound to arise. Many communities have a long-standing tr

voluntary labor, including the reciprocal arrangements i

each other in agricultural and other tasks. However, de

minor communal services or normal civic obligation

from the definition of forced labor, should not mask situ

forced labor. In parts of Asia, there have been require

participation in public works. It has sometimes been argu

acceptance of this practice as a contribution to rapid ec

but this has not been considered an acceptable viewpoin

3. Forced Labor in Agriculture and Remote Rural

Coercive Recruitment Practices

Systems of peonage and serfdom have for the most

eradicated over recent decades. Other forms of coercion

however, continued to exist. Rural workers can still be loc

advances made by recruiting and transporting agents, who

contractors supplying a labor force for landowners or

enterprise. In isolated areas, workers have no choice bu

for food and other necessities supplied by the landow

accepting goods in lieu of wages.

Serious problems may exist in remote areas; for ex

forests have been opened up for agricultural, mineral, or

The persons susceptible to abuse may be indigenous a

common feature tends to be that workers recruited to w

f f h f i i h i bl d i ibl



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4. Domestic Workers in Forced Labor Situations

Working largely in private households, domestic wor

unparalleled degree of vulnerability. Domestic work per se

but it can degenerate into forced labor when debt bond

involved, or when the worker is physically restrained from le

home or has his or her identity papers withheld. In a variplight of female domestic workers in forced labor situa

reported. The worst situations involve violence, sometime

and/or torture. When the domestic workers are interna

problems are often compounded further. And in many

domestic work is omitted from the coverage of national la

5. Bonded Labor

Another form of forced labor that is still extensive in the reg

The term bonded laborer refers to a worker who re

conditions of bondage arising from economic considerindebtedness through a loan or advance. Where debt is t

bondage, the implication is that the worker (or dependents

to a particular creditor for a specified or unspecified per

repaid. Even where bonded labor has been declared unlawf

is required to enforce this legislation, and to provide for sanlandowners or other employers who hold their workers

cases of bonded labor are found, it is important that supp

are provided, including economic assistance and rehabil



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Box 5: Sind Rural Development Project

The Sind Rural Development Projectain Pakistan seeks t

status and income of the rural poor in the project area.

the area, special components focus on governance and

the Sind Tenancy Act, 1950, and the Bonded Labor Sys

1992), as well as on providing haris,bmarginal farm

laborers access to credit through community-based or

to avoid bondage with their landlords.

a ADB. 2002. Report and Recommendation of the President on a PropoDevelopment Project($50,000,000). RRP: PAK32024-01. Manila.

b The Sind Tenancy Act, 1950 uses the term hairand tenantsynonymo

person who personally cultivates the land of another person (the land

6. Forced Labor Exacted by the Military

In contrast to situations in which governments are increa

the existence of various forms of forced labor and makin

them, a few countries basically reject the idea that there

perception has often coincided with the exaction of force

and related authorities. In these cases, forced labor portering; the construction and maintenance of military

support of the military; work on agriculture, logging,

projects undertaken by the authorities or the military;



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poorer countries alike, it is a global phenomenon. The po

the poorer countries, and often the most deprived rura

countries. The main destinations may be the urban centers o

and the capitals of developing and transition countries

trafficked persons is highly complex and varied. While

trafficking for the sex industry, persons are often trafficke

that may also involve forced laborcoercion involving

workers has been detected on several continents. Dome

workers, and particularly those in the informal sector, can a

of this phenomenon.

A key aspect of trafficking is the gender dimension of

and the rapid rise in womens labor force participation. Tmigration has been put forward as a major determinant

Notably in Asia, women have been moving more in

autonomous economic migrants, rather than as dependen

have been mainly Indonesia, Philippines, Sri Lanka, and Th

also the Peoples Republic of China, Lao Peoples DemoMyanmarwith recipient locations including Hong Ko

Cooperation Council states, in particular Kuwait and S

Darussalam; Japan; Malaysia; and Singapore.

8. Prison-linked Forced Labor

Prison labor is exempted from the definition of forced lab

No. 29, except in specified circumstancesotherwise put,

l b if



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(iii) the person is not hired to or placed at th

individuals, companies or associations, mea

perfectly in order for prisoners to work for priva

to be an element of consent in this relations

being made into a cheap workforce under co

protections normally available to workers; and

(iv) The prisoners have not been jailed as a means

education or as a punishment for holding or ex

participating in strikes.

For ADB, two kinds of situations are the most rele

covered in sections (i) and (iv) above, in which prisonework in ADB projects, there is a need to ensure that they ar

who have been jailed without trial for their political view

under a re-education through labor regime.

As concerns prison labor for private entities, the

rehabilitation through training and integration into the in private enterprise forming partnerships with the go

constructive work for prisoners. The concerns that arise ar

should work under government supervision to prevent p

a captive workforce, and the abuses by exploitation of p

profit of corrupt officials should not be allowed.

C. ILO Conventions on Forced or Compu

h d fi i i f f d l b i b i



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This Convention clarifies certain purposes for which forced

imposed, but does not alter the basic definition in internat

However, certain types of labor are excluded from the

No. 29:

work of a purely military character;

work that forms part of the normal civic obligati

work as a consequence of a conviction in a court

(i) said work is carried out under the supervis

public authority;

(ii) the said person is not hired to or placed at th

individuals, companies or associations;

work in cases of emergency (war, calamity,

circumstance that would endanger the existence

the population); and

minor communal services (services performed by

community in the direct interest of the said com

D. Why ADB Needs to Take Action on Forc

Compulsory Labor

Forced or compulsory labor makes headlines almost daily inin persons, imprisonment in sweatshops, and the slavery-lik

plantations and even in private homes. Much of the abus

and Pacific region and includes several of ADBs DMCs

Freedom of Association and the Effective Recognition of the Rig


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Freedom of Associationthe Effective Recognitithe Right to CollectiveBargaining

Freedom of association and the effective recognition of

bargaining are the foundations for a process in which w

make claims upon each other and resolve them through a

leading to collective agreements that are mutually bendifferent interests are reconciled. For workers, joining to

have a more balanced relationship with their employ

mechanism for negotiating a fair share of the results of

respect for the financial position of the enterprise or publ

are employed. For employers, free association enablescompetition is constructive, fair, and based on a collab

productivity and conditions of work.

A generally positive recent trend has been widespre

importance of social dialogue to economic and social d

governance. In the context of the ILO, the term social dia

of negotiation, consultation, or exchange of informatio

representatives of governments, employers, and workers

interest relating to economic and social policy. Freedom



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A. What are Freedom of Association and

Collective Bargaining?36

The ILO Convention on Freedom of Association and Prote

Organize, 1948 (No. 87), is always cited together with th

and Collective Bargaining Convention, 1949 (No. 98). The

the twin conventions on freedom of association and collecgive workers their most fundamental rightsthe righ

organizations of their own choosing and to promote and d

and social interests. These conventions give the same righ

While Convention 87 gives workers the right to form a

Convention 98 consolidates this basic right with guarantee

trade unions to operate freely and independently of governm

Further, Convention 98 lays down the key principles of the r

bargain collectively. It provides the protection that workers an

need against acts of anti-union discrimination and of interfe

authorities or employers. It also lays down the obligations

respect and promote freedom of association and collective b

not only does this Convention establish the right of a trade

defines its purposeto negotiate with employers with a v

of terms and conditions of employment by means of colle

Freedom of association is considered the most fu

standards within ILO. Even prior to the 1998 DeclaratiPrinciples and Rights of Work, this standard as defined in

and 98, was thought vital enough that all member states

l i h i i l h b di d dl f



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compliance with the fundamental principles of freedom

investigating the complaint, the Committee reports to th

which may request action by the government concerned,

this action has been taken.37

B. Special Areas of Concern

The debate surrounding CLS is highly relevant for ADB und

and mission of poverty reduction and economic and socia

access to safe and productive work is a critical factor in

the legal framework surrounding employment is a centra

and worker protection.38

The core standards on freedom of association and th

of the right to collective bargaininghave often been cons

financial institutions to be more controversial than oth

this in ADB comes from its Charter: Article 36 says sh

political affairs of any member However, at the same t

to comply with all CLS in its lending activities39 based

considerations. ADB can attach conditions of CLS/ILS to

only to the extent that lack of compliance with the sta

economic development objective of its programs. Additi

must not interfere in the domestic political affairs of the

While acknowledging that the relationship betweenand economic development is complex, ADB encourages

positive role for labor market actors, especially wor

i i i i d b h d i



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independent unions and employers organizations. Even w

exist, ADB should take no action that would make organi

bargaining more difficult.

C. ILO Conventions on Freedom of Assoc

Right to Collective Bargaining

Freedom of association is the most basic of all principles un

the ILO.In addition to recognition of the principle of freed

the ILO Constitution and the 1944 Declaration of Ph

incorporated into it, two conventionsadopted in 1948 and

set out the essential elements of freedom of association, t

and the importance of collective bargaining.

1. Freedom of Association and Protection of the

Convention, 1948 (No. 87)

This Convention establishes the right of all workers and emjoin organizations of their own choosing without prior au

down a series of guarantees for the free functioning of or

interference by the public authorities. The essence of the C

following:

Workers and employers have the right to es

organizations of their own choosing for furthering

interests without previous authorization.



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2. Right to Organize and Collective Bargaining C

(No. 98)

This Convention provides for protection against ant

for protection of workers and employers organiza

interference by each other, and for measures to promote an

bargaining. Convention 98 includes the following issues

Workers must be protected against acts of ant

such as

- making their employment subject to the co

not join a union or shall relinquish membe

- causing the dismissal or otherwise prejud

of union membership, participation in u

working hours, or, with the consent of

working hours.

Workers and employers organizations must enjagainst any acts of interference by each other.

Measures to encourage and promote the f

utilization of machinery for voluntary negoti

employment contracts, and to collective agreem

The Convention leaves it to national laws or reg

the extent to which it applies to the armed f

Furthermore, it does not deal with the posit

engaged in the administration of the State.



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the universality of these rights and their distinction as key

still no universal acceptance of these fundamental principles

To be effective in eliminating poverty, developmen

integrate economic, social, and political dimensions. Sec

development that give primacy to economic and financia

assumption that social goals will be tackled separately, are

be only partially successful. Participation in poverty reductio

those of ADB, means having an effective voice through the c

of interests. This, in turn, implies organizational rights a

security. Respect for these rights builds social capital and

achieving decent employment and incomes for all wome

reducing poverty and inequality. There is growing acceptathese rights is not only a desired outcome of economic dev

critical means of achieving sustainable development.

In considering the most appropriate national policie

economy, the debate is beginning to shift from a narrow

getting prices right and reining back regulations, to a bof how best to govern the market and balance social and e

open economy, the policy changes necessary to restore mac

such as devaluation or an increase in interest rates, c

distributional implications and trigger disputes that delay a

shows that countries that have benefited most from integ

economy are those that already have institutions for con

place and are, thus, better equipped to handle these dispute

on the recovery from the Asian financial and economic cris

Core Labor Standards in Count


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Part 3Core Labo

StandardsADB Opera



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Core Labor Standards iCountry Strategy and P

ADBs country strategy and program (CSP) provides

framework to guide ADBs operations in a country ove

preparation of CSPs is accompanied or preceded by eco

analytical work. The conduct of a country poverty analysis,

environment, gender, private sector, governancea

constitute essential elements of CSP preparation, and th

for assessing the importance of labor issues and CLS in cThe discussion of CLS can be addressed in various c

they can be addressed in governance, foreign direct invest

They can also be addressed as cross-cutting issues and

of investing in human development and insuring the po

and opportunities. Addressing CLS in CSP should depend oCSP, and the CLS discussion as part of country poverty and

fit in the context of human development or labor market

Incorporation of CLS in ADB operations starting from

straightforward issue, but more often a more challengin

their risk and vulnerability profiles and summary labor m

give information on the general situation of labor sta

country. This stage may flag potential conditions in a co

a CLS issue during project design.



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A. Core Labor Standards in ADB Country

Analysis

As a first entry point, CLS should be considered during th

country poverty analysis (CPA). From the CLS point of view,

at a risk and vulnerability profile and a summary labor ma

1. Risk and Vulnerability Profile

The risk and vulnerability profile will assist in understand

poverty. The profile should depict the major risks that affe

risks can be categorized into the following seven groups:

(i) natural: heavy rainfall, landslides, volcanic eru

floods, hurricanes, droughts, strong winds, etc.;

(ii) health: illness, injury, accidents, disability, epide

famines, etc.;

(iii) life-cycle: birth, maternity, old-age, family break-(iv) social: crime, domestic, violence, terrorism, gangs,

etc.;

(v) economic: unemployment, harvest failure, business

output collapse, balance of payments shock, fina

crisis, technological or trade-induced terms of trad

(vi) political: discrimination, riots, political unrest, etc

(vii) environmental: pollution, deforestation, land d

disaster, etc.



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When risks, their frequency, exposure possibilities

anticipated impacts have been identified, proper strate

risks must be developed. Based on different strategie

appropriate risk management instruments are needed to

of risks or the vulnerability of individuals, households, an

The risk and vulnerability profile serves mainly fo

Concerning the CLS, the profile should identify persons forced or compulsory labor, child labor incidents, and e

where inequality is strongly present. At the same time, ap

need to be considered (Box 6). All data should be gen

understand better the division of the burden of povert

men. Often, women are disproportionately affected by ppoverty differ according to social groups of women a

vulnerability profile should also be compared with the find

labor market assessment, e.g., due to labor market po

and legislation, and child labor situations.

Why is a risk and vulnerability profile important with

can be used for identifying public macro-level risk manag

policies and legislation. Second, at the individual level th

labor issues. If households and families are vulnerable,

strong and they are at risk of falling into poverty, in whic

often taken out of school and sent to work. When ADB p

areas or populations, there may be a need to implement

2. Summary Labor Market Assessment in the CPA



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Private FPrivate FPrivate FPrivate FPrivate Formalormalormalormalormal(insurance companies,

financial marketinstitutions)

Private InformalPrivate InformalPrivate InformalPrivate InformalPrivate Informal(mainly individuals,

households,communities, NGOs)

(gove

intern

Box 6: Examples of Risk Management Instrument

Risk Management Strategy and the Level o

Risk Management Actorsa

Risk reduction and prevention (reducing the probability of the

Less risky production Migration Proper feeding and

weaning practices

In-service training Financial market

literacy

Company-based andmarket-driven laborstandards

Risk mitigation (reducing the possible impact of the risk in adv

Engaging in hygiene andother disease preventingactivities

Investment in multiplefinancial assets

Microfinance Old-age annuities Disability, accident,

and other insurance(e.g., crop insurance)

Pen Ass Pro

righwo

Supma

Mains

Multiple jobs Investment in assets Investment in social

capital Marriage/family support Community

arrangements Shared tenancy Tied labor

Gopol

Pre

Lab Lab Ch Dis AID

pre Leg

gen


i di t th t li / li ith l b


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indicate the countrys compliance/noncompliance with lab

CLS. The enforcement related issues should also be studied

In general terms, the summary labor market assessmen

following information:

(i) Employment and laborEmployment and laborEmployment and laborEmployment and laborEmployment and labor-related data-related data-related data-related data-related data. Employmen

underemployment rates; incidence of seasdistribution (people employed in agriculture, ind

disparities; real wage dynamics; labor-intens

potential for generating employment; the inf

employed; changes in participation rates (es

working conditions; compliance with national alaws and standards, including the reported existe

labor and violations of other CLS.

(ii) The countrys laborThe countrys laborThe countrys laborThe countrys laborThe countrys labor-absorbing development -absorbing development p-absorbing development -absorbing development p-absorbing development p

supply and demand of labor. Has growth been

the population in working age? What is th

population below 18, the future entrants into

the economy be able to absorb all new entrants

Which are the most dynamic sectors of the econ

intensive? Which sectors/policies, in which geogr

be promoted in the short/long term to maximi

More specifically, these assessments should pay atte


(iv) existence and contents of collective bargaining


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(iv) existence and contents of collective bargaining

to the sector or activity, and of collective bargainin

resolution;

(v) information on the occupational accidents and i

(vi) information on the informal economy activities

protection;

(vii) labor force participation patterns (disaggregated(viii) demographic and other social data (disaggregat

Ideally, information collection should involve collaborat

with relevant international, national, and local organizati

such as the ministry responsible for labor; national statitrade unions and employers organizations; internationa

employers organizations; labor research institutes, often in

regional representation of the ILO; and other civil society org

with labor issues (womens organizations, child protection

associations, etc.).

There may be cases in which no national labor law ha

particular field, or when its coverage is incomplete, and w

refer directly to international labor standards to ensure co

Social Protection Strategy. Gaps in coverage of national lab

the agriculture sector, domestic workers, home-based wor

for subcontractors, and small enterprises. In addition, w

applicable, national labor law may not be applied in fact in th

Often a full labor market assessment might be too res


The findings of the country poverty analysis in relation


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The findings of the country poverty analysis in relation

on the CSP, thereby harmonizing ADBs overarching goa

with the development priorities and preferences of the

essential that the prioritization of all ADB programs, p

assistance involves a careful evaluation of the trade-offs b

social development, and is consistent with the findings o

However, as indicated earlier, any such trade-offs shosupport compliance with CLS.

B. Child Labor in the Country Strategy a

ADBs country poverty analysis and CSP are inten

understanding of the nature of the social and economic t

a review of the prevailing labor law framework and em

children, as well as of education policies and their interact

is a crucial input. Between and within countries, the ext

specific reasons for its existence, and problems associate

widely. Therefore, the summary labor market assessmeAppendix 3, should include a review of the available in

labor, which should then be used in the various parts o

analysis. The basic data for SLMA can be collected from th

the labor market (Appendix 4). Child labor issues in the

Table 1.

Table 1: Child Labor Analysis



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C. Equality and Discrimination in the Couand Program

Due consideration should be given to the different forms

work, including gender implications of all ADB projects. T

of the inputs for the CSP should include a gender assessm

labor market as an important input. Because country strat

in order to understand the nature of the social and eco

country, a review of the prevailing equality and labor law fram

and/or equality policies, and gender relations and their

economy are crucial inputs. ADBs policies on gender an

defined in the Operations Manual, include several tools, o

relevant to this Handbook are shown in Box 7.

1. Explicit Links with regard to Women, Economic

Poverty

Removing discrimination against women in the labor ma

step for reducing household poverty. For this, the followi

explored:

(i) What is the distribution in the region of workin

household?

(ii) What is the nature of the womens econom

households?



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Box 7: Some Tools on Gender and Development

The country gender assessmentprovides the basis for for

strategy in the country strategy and program (CSP).

Thegender strategyfor a country specifies how theBank (ADB) intends to address the gender issues

gender assessment, and how the overall gende

achieved through ADBs program of assistance. It

as a core appendix in the CSP.

A detailed gender analysis is required for thosepotential to correct gender disparities or to signi

gender equity concerns, or that are likely to have

impact. Gender analysis must be conducted as an e

of the initial poverty and social analysis (IPSA).

If the IPSA indicates that the project has the potent

disparities or significantly mainstream gender con

have substantial gender im