Social dialogue crucial for economic development – ILO

The International Labour Organisation has underscored the transformative potential of social dialogue in fostering economic growth and social progress.

The new ILO Social Dialogue Report 2024 highlights the role of “Peak-Level Social Dialogue” in addressing labour, economic, and social challenges, particularly in facilitating fair and inclusive transitions to low-carbon and digital economies.

The report noted that PLSD involves government, employer, and worker organisations negotiating and consulting on key policy issues.

The report identified its contributions to achieving decent work, equitable labour income distribution, and managing digital and green transitions effectively.

However, it warned that short-term socio-economic policies and the exclusion of marginalised groups weaken its impact.

ILO’s Assistant Director-General for Governance, Rights and Dialogue, Manuela Tomei, described PLSD as a “credible governance model” amid global instability. She emphasised its role in navigating complexities arising from technological, environmental, and demographic shifts.

The report revealed a 7 per cent decline in countries’ adherence to fundamental labour rights between 2015 and 2022, driven by increasing violations of civil liberties and collective bargaining rights.

 It also highlighted that nations respecting these rights are better positioned to harness PLSD’s transformative capacity.

According to the report, the National Social Dialogue Institutions exist in 87 per cent of ILO member states, with three-quarters of workers and two-third of employers finding them effective.

However, concerns about inadequate follow-up and inclusiveness persist, especially for under-represented groups such as women, youth, and informal workers.

Meanwhile, the report also highlighted how PLSD, including minimum wage fixing and sectoral collective bargaining, effectively addresses wage inequality and cost-of-living challenges.

“Countries combining government-set minimum wages with sectoral agreements achieve better labour income equality,” the report said.

As regards shaping digital and green transitions, the report indicated that PLSD has been instrumental in building societal consensus on digital and decarbonisation policies, particularly in countries with strong social dialogue institutions.

However, a review of 118 recent dialogue processes shows that around a quarter addressed these twin transitions, primarily in Europe.

The ILO has called on governments to uphold labour rights, enhance resources for social partners, expand outreach to marginalised groups, and conduct regular evaluations of PLSD’s effectiveness.

“By prioritising inclusive and effective social dialogue, the report underscores its potential to promote decent work and navigate the profound economic changes of the modern era,” the report stated.