Social dialogue key to economic and social development

A new International Labour Organization (ILO) report highlights how social dialogue can enable countries to pursue economic development alongside social progress, while ensuring fair and inclusive low-carbon and digital transitions.

The Social Dialogue Report 2024: Peak-level social dialogue for economic development and social progress, focuses on “peak-level social dialogue” (PLSD) – a set of institutions and processes whereby governments, employers’ and workers’ organizations negotiate, consult each other and exchange information on labour, economic and social matters at national or sectoral level.

The report shows that PLSD can contribute to decent work, fairer labour income distribution and just digital and green transitions. It also underlines that respect in the law and practice of freedom of association and the effective recognition of the right to collective bargaining is essential. But the capacity of PLSD to shape change is weakened when socio-economic policies are driven by short-term considerations and exclude important segments of society.

National Social Dialogue Institutions have a large presence, are relevant but should be more inclusive

The report reveals that NSDIs are present in 87 per cent of ILO Member States. Three-quarters of workers and two-thirds of employers view them as effective, but concerns remain over inadequate follow-up by governments or public authorities on social dialogue outcomes, as highlighted by the perceptions survey conducted for this report. Another matter of concern is the inclusiveness of NSDIs and gaps in relation to the needs of underrepresented groups, such as women, youth, and workers and economic units in the informal economy.

Greater involvement of social partners in policymaking needed

In many countries the importance of the involvement of employers’ and workers’ organizations in the design and governance of employment policies or social protection systems is being recognized. For instance, more than 30 per cent of public employment services include employers’ and workers’ representatives on their management boards, while 25 per cent of national employment policies identify tripartite consultation as a key requirement. Approximately 80 per cent of ILO’s 187 Member States have established peak-level tripartite occupational safety and health (OSH) bodies, while social protection reforms in 65 countries have extended the coverage of pension, health, and employee benefits, with the involvement of social partners.

Stronger PLSD institutions to tackle the cost-of-living crisis

The report also reviews the role of minimum wage fixing involving social partners and sectoral collective bargaining in addressing the cost-of-living crisis and promoting wage equality. It stresses that where national minimum wages set by governments in consultation with the social partners co-exist with sectoral minimum wages determined through collective bargaining, PLSD is more effective in tackling high labour income inequality.

Fostering PLSD for just digital and green transitions

Evidence suggests that PLSD fosters societal consensus on digital transformation and decarbonization policies. Yet, reliance on PLSD to manage this twin transition is more prevalent in countries with well-established social dialogue institutions and where digital penetration is more intense. A review of 118 social dialogue processes from 2022-2023 shows that around a quarter addressed twin transition-related themes, mostly in Europe. A new generation of industrial policies aimed at economic diversification and structural transformation, and centred around the twin transition, present a timely opportunity to advance the role of PLSD in guiding this transition.

A call for action to unlock the power of PLSD

To fully unlock PLSD’s inclusiveness and effectiveness the report calls on countries to:

• Uphold fundamental principles and rights at work, especially freedom of association and the effective recognition of the right to collective bargaining.
• Equip labour administrations and social partners with the necessary resources and technical capacities for effective participation in PLSD. 
• Expand the outreach of NSDI’s and social partners to under-represented groups. 
• Conduct regular, evidence-based evaluations of the role and influence of PLSD institutions in socio-economic decision-making. 

Find out more by clicking here.

Source: ILO