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Download the file - United Nations Rule of Law

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different paths to enforcement, with some takinga centralised approach in overseeing and controllingpayments for monitoring, while o<strong>the</strong>rs followa ‘consulting firm approach’ which allows companiesto choose and pay for <strong>the</strong>ir own monitors.There is a need to move towards unified codes in<strong>the</strong> interest <strong>of</strong> promoting good governance in <strong>the</strong>business sector.Labour Rights, Social Protection, EmploymentCreation: trade-<strong>of</strong>fs or complementarities?The emerging global social contract shouldinclude <strong>the</strong> promotion <strong>of</strong> more and better employmentopportunities and aim to reduce <strong>the</strong> existinggaps in protection, particularly concentratedin poorer population. It has to open opportunitiesas well as to provide protection. There are trade<strong>of</strong>fsinvolved, but <strong>the</strong>re are also strong complementarities.The experience accumulated during<strong>the</strong> last decades could contribute to enhance <strong>the</strong>latter effects, without ignoring <strong>the</strong> lessons learntto diminish unnecessary costs introduced by illdesignedpolicies. Security provides incentivesfor learning and innovation and both are requirementsfor growth and employment creation. Thereis also need to facilitate adaptation <strong>of</strong> firms to <strong>the</strong>new competitive conditions, and this is particularlyrelevant in matters involving labour contractsand regulations.One <strong>of</strong> <strong>the</strong> lessons learnt is that <strong>the</strong> prescriptionfor flexibility, through <strong>the</strong> introduction <strong>of</strong> temporaryor atypical labour contracts, has serious drawbacks, affecting more than <strong>the</strong> lives <strong>of</strong> workersand <strong>the</strong>ir families. The rigidity <strong>of</strong> <strong>the</strong> permanentcontract and, particularly, <strong>the</strong> costs involved interminating this type <strong>of</strong> contract, could constitutea barrier in times <strong>of</strong> adjustment. On <strong>the</strong> o<strong>the</strong>rhand, such contracts also provide a simple way <strong>of</strong>protection in countries where o<strong>the</strong>r mechanisms,like unemployment insurance, do not exist or arevery limited. The erosion <strong>of</strong> <strong>the</strong> permanent contractcan be changed by going back to a modifiedversion; for example, by introducing longer trialperiods, reducing or increasing <strong>the</strong> severancepayments in case <strong>of</strong> termination <strong>of</strong> employment,etc. The availability <strong>of</strong> temporary and fixed-termcontracts will still be needed, particularly to openwider opportunities for those more affected byunemployment and for those who wish to reconcileeducation or house-family care responsibilities.At <strong>the</strong> same time, temporary or fixed-termjobs should not replace permanent jobs and <strong>the</strong>limits <strong>of</strong> <strong>the</strong>ir use should be established throughconsultation and dialogue.The legal recognition <strong>of</strong> hidden employmentrelations or those without contracts will provideidentity to <strong>the</strong> affected workers and constituteenabling conditions for <strong>the</strong>m to exercise <strong>the</strong>irlabour rights, particularly labour and socialprotection. At <strong>the</strong> same time, <strong>the</strong> formalisation <strong>of</strong>employment relations, even if gradually achieved,opens opportunities and provides incentives forimproving business management. A culturalchange in <strong>the</strong> management <strong>of</strong> micro-enterprisesand, particularly, <strong>of</strong> family businesses is induced,since compliance with labour obligations requires<strong>the</strong> introduction <strong>of</strong> accountancy and cost benefitsanalysis to ensure viability <strong>of</strong> <strong>the</strong> enterprise. Theright <strong>of</strong> association is also conducive to developingalliances between producers, thus reinforcing<strong>the</strong>ir voice and <strong>the</strong>ir ability to negotiate with localauthorities; it is also enabling for potential pricereduction <strong>of</strong> <strong>the</strong>ir inputs and for easier accessto concentrated markets. This also representsa major cultural change since it means shiftingfrom individualistic to collective behaviour. Therehas been international tripartite consensus on <strong>the</strong>need to combat disguised employment relationships.National policy could serve to ensure effectiveprotection to workers especially affected by156

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