Trade and Employment From Myths to Facts - International Labour ...

Trade and Employment: From Myths to Facts
International labour standards need to be ratified and enforced by individual
countries. In consultation with organizations of workers in the informal economy,
national governments need to review how existing labour regulations can be extended
to protect the rights of workers in the informal economy and whether additional
labour regulation needs to be introduced to adequately protect the rights of the
informal workforce. Some countries have adopted progressive labour regulation that
addresses the insecurity and disadvantages of specific categories of informal or nonstandard
wage workers, including home workers (Canada), temporary workers (France)
and sweatshop workers (California, US).
The Sector Education and Training Authority (SETA) is established to improve
the skill levels of low-skilled workers. There are a number of people throughout the
developing world who want and need to learn new skills. Many of the potential
workers in such countries are still in schools or colleges and require special training
through SETA. Even when certain workers are employed, they still need to improve
their skills and learn new ones as well as to improve their productivity and get involved
as formal/regular workers. In South Africa, for example, an estimated 4.3 million
people are unemployed and many of them have little training and low skills. So it
is clear that skills development, along with training and education, are vital elements
for people in developing and middle-income countries to improve their own income
and the GDP of their respective countries.
Given that a large number of people are still low skilled in many middle- and
low-income countries, the majority of informal workers within these countries have
little formal education. Hence, through SETA, there is a need for basic literacy and
numeracy training as well as courses in areas such as managing a business, financial
management, pertinent legislation and general life skills. Municipalities should work
hand-in-hand with SETAs, other departments and organizations to implement training
programmes aimed at building the capacity for informal-economy actors.
Understanding regional differences is an important aspect in providing equal opportunities
to all workers in a country. Therefore, regional governments within a country
should conduct a comprehensive survey to establish training service providers who
are currently working in the informal sector. Regional and local governments should
play a role in facilitating and supporting skills development in these areas, for the
benefit of all concerned.
4.6 CONCLUSIONS AND THE WAY FORWARD
Over 80 per cent of workers in low-income countries, 40 per cent of those in middleincome
countries and 15 per cent of those in high-income countries are employed
in the informal economy. While these shares are persistent, or in some regions even
increasing, trade has increased dramatically during recent decades. Home-based work,
piecemeal jobs, subcontracting and outsourcing have for decades been recognized as
institutional means whereby employers can avoid the costs of compliance with labour
regulations by shifting risks and various social obligations away from the parent com-
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