“TILO Submits Recommendations toTackle Poverty in Indonesia

Bilingual Newsletter - April 2004, Vol 2 No. 1

A Series of Policy Recommendations: Decent Work and Poverty Reduction in Indonesia

Along with the report, the ILO has prepared a series of short and focused technical briefing notes. The notes have beendeveloped as background documents on issues and policy choices critical to poverty reduction and as building blocks towards thecomprehensive ILO report that provides specific recommendations for each of the four taskforces of the National PovertyCommittee.

Themes for the TBNs include: (1) Employment dimension of macro and sectoral policies, (2) Decentralizationand decent work: making the connection to the MDGs; (3) Job creation and enterprise development (SMEsand Local Economic development); (4) Youth Employment: pathways from school to work; (5) Rural development:access, employment and income opportunities;(6) Skills development for economic growth and sustainablelivelihoods; (7) Promoting the declaration on fundamental principles and rights at work; (8) Eliminating the

worst forms of child labour; (9) Social protection for all; (10) Promoting good governance in the labour market by strengtheningtripartism and social dialogue; (11) Migration: opportunities and challenges for poverty reduction; (12) Gender and poverty.

o tackle poverty in post-crisis Indonesia, a growth rateof five to six per cent is necessary but not sufficient alone tocreate jobs to cope with the two million new entrants to thework force and to cope with the backlog of unemployed andunderemployed,” said Prof. Iyanatul Islam on behalf of ILO Jakartaon Tuesday, 17 February, when presenting the ILO report on“Working Out of Poverty: ILO submission to the IndonesianPRSP (Poverty Reduction Strategy Paper)” in Jakarta.

“All Indonesians, willing and able to work, should have theopportunity to engage indurable and productiveemployment under conditionsof freedom, dignity, equity andsecurity. This is the essence ofpro-poor growth and is theethos of decent work,” hecontinued.

The ceremony to mark thelaunch of the report wasattended by Joharis Loebis(Chairman of thegovernment’s PRSP core-team), Rizal Ismail (DeputyChairman Taskforce 1), Dr. NoerSoetrisno (Chairman of PRSPTaskforce 2), Dr. Fasli Djalal (Chairman of PRSP Taskforce 3) andProf. Dr. Azrul Azwar (Chairman of PRSP Taskforce 4), Alan Boulton,ILO Country Director for Indonesia and Azita Berar-Awad fromIntegration Department ILO Geneva.

The report, along with a series of technical briefing notes,covers issues and policy choices critical to poverty reduction. Theyare part of the technical contribution provided by the ILO towards

the PRSP drafting process inIndonesia. In addition to this, theILO has been actively involved inproviding support and capacitybuilding of workers’ and employer’organizations as well as in promotingand encouraging their involvementin the PRSP process. This is toensure that the voice of the world of work is heard when defining

and implementing povertyreduction strategies.

Some of the key policyrecommendations highlightedin the report include identifyingsectors with employmentpotential, such as agribusiness,and promote an SME friendlyenvironment. A life cycleapproach in addressing povertyis suggested, which calls fortargeting poor families with largenumber of children, promotingeducation for all and improvingeducation from the point ofview service delivery.

The recommendations also include strengthening the NationalTripartite Council and where appropriate tripartite bodies at provincialand district levels. Gradually (over 10 to 15 years) extend improvedsocial security programs to all workers in the formal economy, migrantworkers and self reliant workers. Furthermore, it’s recommendedto provide social security programs to workers in the informaleconomy as well as to develope social health insurance. Overall therecommendations highlighted the importance of combining economic

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Content

Headline

New OfficeAs of 15 March 2004, the ILO

Jakarta Office has moved to:

Menara ThamrinJl. M. H. Thamrin Kav 3, Level 22

Jakarta 10250Ph. (62 21) 391-3112 (hunting)

Fax (62 21) 310-0766Email: Jakarta@ilo.org

Website: www.ilo-jakarta.or.id

and social policies to face the challengeof poverty reduction.

“These recommendationsemphasize the need to placeemployment issues at the centre ofpoverty reduction strategies based onthe conceptual framework of ‘DecentWork for All’,” Alan Boulton said in hisopening remarks. Azita Berar-Awad fromthe ILO Geneva’s Policy IntegrationDepartment added, “A conceptualframework of decent work and povertyreduction is enshrined in the Indonesianconstitution and represents the overarching vision of the ILO.”

Joharis Loebis who read a speech by Jusuf Kalla, CoordinatingMinister for People’s Welfare, stated his appreciation to ILO Jakartacomplementing their activities towards the Indonesian PRSPprocess. “The effort of ILO in voicing the need for decent job andminimum wages as reflected by its constituents—Ministry ofManpower and Transmigration, employers’ and workers’organizations—to develop an effective poverty reduction strategythat can be implemented is in line with the Indonesian governmentconcerns and needs to be considered by the taskforces in preparingthe PRSP,” said Joharis.

At the forum, the National PovertyAlleviation Committee and respectivetask force chairmen reviewed thereport. Others participating at thediscussion included Revisond Baswir(Economist from University of GadjahMada), Cheppy Alowie (SecretaryGeneral of Ministry of Manpower andTransmigrasi (MoMT)), Djimanto(Secretary General of IndonesianEmployer’s Association (APINDO)),Syaiful DP (Indonesian Trade UnionNetwork for PRSP). There wereparticipants in excess of one hundred

and fifty who represented government, trade union, employers,donors, UN Agencies, the World Bank, civil society organizations,PRSP taskforce members, academics and media.

In addition to this, separate technical consultations were heldwith each of the task forces to share and discuss policyrecommendations that maybe adopted by the Indonesian PRSP.

Indonesia is among the 80 countries that have received fundsfrom the World Bank and IMF to complete a PRSP. The NationalCommittee on Poverty Alleviation produced a draft Interim PRSPfor Indonesia in January 2003. TheGovernment aims to have a final PRSPprepared by June 2004.

(More on PRSP, read column on"Globalization, Inequality and PovertyReduction" at page 18)

From UsILO at A GlanceNew Office

HeadlineILO Submits Recommendations to Tackle Poverty in Indonesia

Child LabourILO-IPEC to Tackle the Worst Forms of Child LabourChild Domestic Workers: “Flowers on the Rocks”

Rights at WorkImportant, Role of Police in Industrial RelationsLet’s All Tune in To “Smart Workers”

EmploymentYouth Employment: Planning for ACTION!

APINDO Launches the Global Compact in Indonesia

ILO Holds a Series of WISE Trainings in East Java

Social DialogueILO Declaration Project Supports the Implementation of theNew Labour Laws in Indonesia

Social ProtectionImplementing the ILO Code of Practice on HIV/AIDS and theWorld of Work

Timor-LesteHigh-Level ILO Team Meet Xanana Gusmao

GenderWomen at Work: Glass Ceiling Still Intact

In BriefBooksAgendaColumn

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WFrom Us

ILO at A GlancePriority Objectives for Indonesia 2004-2005

ILO Jakarta Office

Assist Indonesia to move forward with decent work objectives,with emphasis on:

§ Further progress in realizing the fundamental principles andrights at work, including through implementation of newlabour laws and capacity building in labour administration,

employers’ organizations and unions.

§ Sharp reduction in worst forms of forced and child labour,especially through support for Indonesia’s national action

plan.

§ More job opportunities for the young and those in crisisaffected areas.

§ Increased social protection for vulnerable groups, inparticular workers in the informal economy and migrantworkers.

Special attention will be given to gender equality and achievingimpact at national and local levels.

e are off to a busy start for 2004 with the ILO programmein Indonesia.

The work on child labour and youth employment has beensignificantly expanded. The new team for the project to supportIndonesia’s National Action Plan on the Worst Forms of Child Labouris now in place and there are ongoing consultations withconstituents regarding the programme of activities. Progress hasbeen made by the Indonesia Youth Employment Network on thepreparation of an Action Plan and a new project of ILO assistancefor this work has just been approved.

The ILO presented a major submission “Working Out ofPoverty” to the Poverty Alleviation Committee and its four TaskForces on 17-19 February. The submission emphasizes theimportant role of employment creation and other labour-relatedpolicies in reducing poverty and the need for labour andemployment issues to be addressed in Indonesia’s PovertyReduction Strategy Paper (PRSP).

The Industrial Relations Project is gearing up to assist the Ministryof Manpower and Transmigration (MoMT) with the implementationof new Industrial Dispute Settlement Act. This will include furtheractivities relating to bipartite cooperation, bargaining andnegotiation skills, and the training of mediators and judges. Thenew Police Training Project was officially launched with a very wellattended seminar on the role of police in industrial disputes.

We have also activelysupported initiatives andactivities by our partners.APINDO launched the GlobalCompact on 28 February andILO will assist with the work ofencouraging employers to signup and apply the Compactprinciples. We have assisted

unions with the preparation of a joint submission on the PRSP andhave supported MoMT in various activities relating to new legislation,minimum wages, mediation training and child labour.

On 1 January 2004, the Jakarta Office was given responsibilityfor the ILO programme in Timor Leste. Both Peter Rademaker(Deputy Director) and I have already visited Dili for discussionswith constituents about major projects on skills development andindustrial relations. The other special responsibility of the JakartaOffice relates to liaison with ASEAN. On this score, it is pleasingthat the ASEAN Secretary General met with ILO Director GeneralJuan Somavia in Geneva on 27 January to discuss matters of mutualconcern between the organizations.

Apart from all these happenings, the Jakarta Office has movedto new premises. Along with other UN agencies, ILO is nowlocated in the Menara Thamrin building in central Jakarta.

Fortunately we have continued to receive great support fromour partners in government, employers’ and workers’ organizationsfor the ILO programme and activities. Many thanks and goodwishes for the success of all our combined efforts.

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ILO-IPEC to Tackle the Worst Forms of Child Labour in Indonesia

“Working together for a Future withoutChlid Labour”

Child Labour

© M

. Asr

ian

Mirz

a

© M

. Asrian Mirza

he ILO’s International Programme for the Elimination ofChild Labour (ILO-IPEC) recently commenced a major new projectdesigned to support the first phase of Indonesia’s National ActionPlan for the Elimination of the Worst Forms of Child Labour.

There has been growing awareness of the need to develop anew approach to tackling child labour, and particularly the worstforms of child labour. In recentdecades Indonesia hassucceeded in increasing accessto education, but poverty andother factors still result in manychildren dropping out of schooland becoming involved in thelabour force. Many of thesechildren are at risk of becominginvolved in the worst forms ofchild labour.

In 1999 the InternationalLabour Conference unanimouslyadopted Convention No. 182concerning the prohibition and elimination of the Worst Forms ofChild Labour. The Convention defines two broad categories of theworst forms of child labour. The first is unconditional and includesslavery, trafficking of children, recruitment of children for use inarmed conflict, prostitution and pornography, and other illicitactivities such as the drugs trade and debt bondage. The secondcategory concerns labour that jeopardises the physical, mental ormoral well being of a child, either because of its nature or becauseof the conditions in which it is carried out. This is sometimes knownas hazardous work.

Indonesia’s National Action Plan

Indonesia ratified ILO Convention No. 182 in 2000. Legislationwas introduced to give effect to the Convention and a NationalAction Committee on the Elimination of Worst Forms of Child Labourwas established. The Committee subsequently prepared a NationalAction Plan for the Elimination of the Worst Forms of Child Labour.The Plan identifies as its objective the need “to prevent andeliminate the worst forms of child labour” and calls for a NationalAction Programme to be developed in a three-phase programmeover twenty years. In the first five years, key objectives of theProgramme are to:

• Increase public awareness that worst forms of child labour mustbe eliminated

• Map the existence of the worst forms of child labour and effortsto eliminate them

• Develop and start implementation of a programme for the

elimination of the worst forms of child labour with priority totrafficking of children for prostitution, the involvement ofchildren in the industry and trafficking of drugs and other

addictive substances, and involvement of children in offshore

work and diving, work in mines, and in the footwear industry.

ILO-IPEC Project of Support to theNational Action Plan

National and provincial level stakeholder workshops during 2003helped to shape the design of the ILO-IPEC project, which is forfour year and is supported by the United States Department ofLabor. The project has a two-part strategy. The first part of the

strategy will focus on activity related to thepolicy environment concerning child labour. Thiswill include improving the knowledge base,awareness raising and advocacy, building thecapacity of stakeholders and promoting childlabour concerns in national and local policy andprogramme frameworks.

The second part of the strategy will involvetargeted programmes in five sectors identifiedby the National Action Plan. Through theseprogrammes the project will remove childrenfrom the worst forms of child labour and preventmany others from entering such work. Childrenwill be assisted through the provision of

educational and other services. Many families and communitieswill benefit from socio-economic programmes supported by theproject. The intention is that these programmes will provide modelswhich can be replicated elsewhere by Government and others.

The project will work closely with the ILO’s partners fromgovernment, workers and employers organizations and NGOs. Itwill also seek to work with and strengthen the network of nationaland international agencies concerned with child labour.

The project’s Chief Technical Adviser, Patrick Quinn, emphasizesthat the National Action Plan can make an important contributionto Indonesia’s wider development goals. “Child labour not onlyjeopardizes the rights of children, it has a wider social cost. Childlabourers are likely to experience low incomes and deprivation whenthey become older. Their own children are also more likely to dropout of school and themselves become child labourers. Breakingthis cycle of poverty and child labour needs to be seen as animportant national development goal.”

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Child Domestic Workers:

“Flowers on theRocks”Mrs. Wiji: Warti! What have you been doing all day? This table

is still dusty… dirty dishes in the sink… I told you thatif you want to work here, don’t be lazy! You are notjust lazy, but also like to chat around…

Warti (child domestic worker): But, Mam…

Mrs. Wiji: As I told you, shut uupp… How dare you? I onlywant to talk to you. What do you want huh? Howdare you!

(Sound of a slap on the cheek)an excerpt from Radio Drama Episode 5 “Flowers on the Rocks”

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Timor LesteHigh-Level ILO Team MeetXanana Gusmao

Child Labour

n the occasion of Timor-Leste’s membership of the ILO,the ILO’s high level delegation visited Timor Leste from 11 to 13February 2004. The delegation comprised of Yasuyuki Nodera (ILORegional Director for Asia and the Pacific), Werner K. Blenk (ILOSub-Regional Director for South-East Asia in Manila), Alan Boulton(ILO Country Director in Indonesia) and Carmelo Noriel (ChiefTechnical Adviser of the Jakarta-based Declaration Project).

The delegation met President Kay Rala Xanana Gusmao, PrimeMinister Mari Bim Amude Alkatiri, and Secretary of State for Labourand Solidarity. The team also met, among others, employers andworkers representatives, UN heads of agencies, and representativesof International Organizations. The team was assisted by the ILOLiaison Officer for Timor Leste, T.I.M. Nurunnabi Khan.

Timor-Leste became the 177th Member State of ILO in August2003. The ILO has been active in Timor-Leste since 1999. Prior toTimor-Leste formally gaining membership to the Organization, theILO has been providing technical support and training in areassuch as labour market information systems, entrepreneurship,vocational skills development and labour administration. It alsoprovided support in the development of the country’s labour codeand establishment of an effective labour administration system.

Currently, ILO has three operational projects in Timor-Leste,namely: a project on labour administration funded by the USDepartment of Labour; a project titled “Integrated EmploymentGeneration Initiatives” of the Secretariat of State for Labour andSolidarity; and a EU-UNDP-ILO funded programme on “Skills Trainingfor Gainful Employment (STAGE)” which will start soon. Theseprojects will contribute to country’s development in the areas ofemployment-oriented skills training programme, capacity buildingof ILO constituents and improved labour relations machinery inthe country.

hild domestic workers are often required to undertakehazardous work in exploitative conditions. Many are denied basicrights as workers and have no access to education and other formsof personal development. Most of them work long hours (morethan 15 hours per day) seven days a week, receive low pay or notpay at all, and do not have time to play, socialize or learn new skills.

Based on an ILO survey in 2003, it is estimated that thereare around 2.6 million domestic workers in Indonesia, of whichalmost 700,000 are children under the age of 18 years. This

figure is significantly above the estimate of 152,000 child domesticworkers made by the Central Bureau of Statistics in 2001.

Since 2002, an ILO programme on child domestic labour inIndonesia has sought to identify effective ways of addressingthe problems. Under the programme, various activities have beenundertaken including a pilot action programme in Tambun, Bekasiand Pamulang; support of regulations providing basic protectionsfor domestic workers, including at least one day per week leave;and strengthening the capacity of non-governmentalorganizations, including women’s NGOs and faith-basedorganizations, to deal with child labour problems; advocacy andmedia campaigns.

Under ILO-IPEC supports and as part of ILO-IPEC’s of advocacyand media campaign programme, a 40-episode radio drama hasbeen developed by Radio of the Republic of Indonesia titledBunga-bunga di Atas Padas (Flowers on the Rocks). Targetinghomemakers, this 30-minute programme has been scheduled tobroadcast twice a week for five months from mid of February toend of June 2004. Linking to the radio drama, the ILO-IPEC willalso release a publication under the same title. Both of themdepict the reality of children working as domestic servants.

“The book aims to provide new data and information on theplight of child domestic workers. It analyses the complexity andmagnitude of the child domestic labour problem in Indonesia andexamines interventions and programmes to assist these workers,”said Alan Boulton, Director of ILO in Indonesia, in his forewordfor the publication.

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Rights at Work

TImportant, Role of the Police inIndustrial Relations

o enhance police capacity and understanding in handlingindustrial disputes, the ILO under the ILO/USA Declaration PoliceTraining Project held a one-day seminar titled “The FundamentalPrinciples and Rights at Work and the Role of Police in IndustrialDisputes” on Wednesday, 28 January, in Jakarta.

The seminar aimed to promote the fundamental principles tohigh-ranking police officials and launch implementation of the Projectbefore the tripartite constituents. Around 150 participantsattended the Seminar, including the Deputy Chief of the IndonesianNational Police Kadaryanto, Minister of Manpower andTransmigration Jacob Nuwa Wea, US Ambassador Ralph L. Boyce,and Country Director of the ILO in Indonesia Alan Boulton.

“The ILO Project for the Indonesian National Police (Polri) seeksto support the progress made by Indonesia in both labour rightsand police reform. In particular, it addresses issues regarding therole of the police in the new industrial relations environment inIndonesia”, said Alan Boulton. He assured, however, that it is notthe role for which police was often criticized in the past, wherethere was direct interference in negotiations and disputes betweenworkers and employers.

Meanwhile, U.S. Ambassador to Indonesia Ralph L. Boyce saidthe ILO Project is part of existing US assistance intended to helpthe police play their proper role in a democratic society. “Thisground-breaking project complements an over US$40 million-fundedpolice programs and expands that assistance into a new fieldimportant to civil society,” Boyce said, adding that the police rolein industrial disputes, such as maintaining law and order, couldcontribute to harmonious industrial relations.

Agreed with Boyce, Manpower Minister said that the projectwould contribute to an improved investment climate in the country.Jacob Nuwa Wea encouraged the police to understand andimplement its role, rights, limitations and obligations in handlingindustrial disputes and labour issues in general. “Through the projectactivities, hopefully the police will be able to take accurate measuresin handling industrial dispute situations,” he continued.

Separately, lawyer and labor activist Surya Tjandra expressedfears that the project would only increase abuses by the police

against protesting or striking workers. “In a situation where workershave no bargaining power, the police will continue to favor theemployers,” Surya, a former director of the Jakarta Legal AidInstitute, was quoted by the Jakarta Post as saying.

The following recommendations were made byparticipants of the Seminar:

b There is an urgent need for a better coordination among thepolice, manpower offices and branches of employers’ andworkers’ organizations, in particular at the provincial and district

levels.

b The police should be involved as member of government

representatives in tripartite institutions particularly for issuesrelated to public security.

b Police operational guidelines in handling negative effects ofindustrial disputes should be incorporated in the existing policeguidelines in handling violent and measured actions as well as

in handling peaceful demonstrations.

b Course syllabus on labour and industrial relations issues should

be incorporated as part of human rights course in the curriculumof all education institutions within Polri.

b Awareness raising/socialization workshops, including theproduction and distribution of information kits on how tohandle industrial disputes should be conducted by the Project.

b Polri should continue undertaking internal reform in responseto the changing environment in the field of labour rights.

b The police could be involved only when it was requested byeither one of the disputing parties, and when the situationsstrongly suggest disturbance of public order or occurence of

social conflict.

The project is part of a broader technical cooperationprogramme between the Government of the United States ofAmerica and the Government of Indonesia on 26 February 2003by the US Ambassador for Indonesia and the Chief of the IndonesianNational Police. The project aims at supporting Polri’s efforts toenhance their understanding and capacity in handling industrialdisputes and implementing the ILO fundamental principles andrights at work.

Activities of the project include training of master trainers andawareness raising workshops on the Fundamental Principles andRights at Work and handling of the law and order aspects ofindustrial disputes. The Project will also develop course syllabus onthese matters to be incorporated in the curriculum of differenteducation institutions of the Polri. In addition, police guidelines onhandling industrial disputes will also be developed. Implementationof these activities would be based on findings of a baseline studyon capacity and understanding of Polri about the fundamentalprinciples and their role in industrial disputes.

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ILO Baseline Study on Police Capacity

A baseline study on police understanding and capacity was conducted by the ILO in collaborationwith the Department of Criminology, University of Indonesia, from October-December 2003 in sixprovinces covered by the Project: North Sumatra, Banten, West Java, Jakarta, Central Java andEast Java. Findings of the study reveal that there are still some misperceptions, particularly, aboutthe government’s role in controlling workers’ and employers’ organizations and the role of police inindustrial disputes. In some cases, there is still a strong reliance on security approach in maintainingpublic order and in handling labour dispute.

Do police and militarypersonnel have the rights tojoin or establish unions?

91.3%

8.7%

26.1%

69.6%4.3%

Can the governmentintervene in the management

of workers’ and employers’organizations?

21.7%

78.3%

21.7%

78.3%

Can the government dissolveworkers’ or employers’

organizations?

Do workers have the rightsto bargain collectively?

56%

43.5%87%

13%

Can the state adopt acompulsory military service

policy?

Can a superior impose forcedlabour to his/her indiscipline

subordinates?

Can discriminativeremuneration based on sex

be applied for equal work?

Can discriminative remunerationbased on sex be applied for

high-risk employment?

100%82.6%

17.4%

Knowledge and understanding of the police rolein industrial dispute situations

Should the police ignoreany industrial dispute

situations?

Should the police refer thecase to Manpower officials?

Should the policeconduct investigation?

Should the police try toreconcile the disputing

parties?

39.1%

60.9%65.2%

34.8%

73.9%

26.1%100%

Knowledge and Understanding of the Fundamental Principles (N=23)

18.2%

72.7%

9.1%

18.2%

63.6%

18.26%

Do workers have the rightsto strike? (N=11)

Do employers have the rightsto lockout? (N=11)

4.3%

95.7%100%

Can any individual orinstitution employ anyone as

forced labour?

Can the state impose forcedlabour as a punishment for

people who against the state’spolitical and economic ideology?

100% 100%

Can an employer imposeforced labour to punish

striking workers?

Can children be employed inthe worst forms of child

labour?

Yes No Don’t Know

8.7%

87%

4.3%

12.4%

82.6%

Do workers have the rightsto join or establish trade

unions?

Do employers have therights to join or establishemployers’ association?

Can the state adopt aforced labour policy?

87%

13%

60.9%

39.1%

Can the state forcefully employtheir citizens to work foreconomic development?

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Let’s Tune in To “Smart Workers”

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Rights at Work

Agenda

The first ten themes of Smart Workers(January – March 2004) are as follows:

8 January Dispute Settlement Act: Its Controversy and

Problem

15 January Migrant Workers: Who is Responsible?

22 January Effort to Improve the Welfare of InformalEconomy Workers

29 January Fundamental Principles and Rights at Work

5 February The Role of Police in Industrial Disputes

12 February The Effectiveness of Act No. 13 in Industrial

Dispute Settlement: The Case ofPT Dirgantara Indonesia

19 February Gender Discrimination in the World of Work

26 February Children, Should They Work?

4 March Freedom of Association to Workers

11 March Employment and Poverty Alleviation

18 March Social Protection for All

25 March Discrimination and Job Opportunity for PeopleLiving with HIV/AIDS

For those who are interested in learning more about employmentand labour issues and issues related to the ILO Declaration, just tune into 95,65 FM every Thursday from 4 to 5 pm. For further information,contact ILO Jakarta Office by phone on (62-21) 391-3112 or by email atgita@ilo.org.

The Launch of the Indonesian version of “the ILOCode of Practice on HIV/AIDS and the Worldof Work: Education and Training Manual” inJakarta, 26 April 2004

The commemoration of the ILO’s World Day forSafety and Health at Work on 28 April 2004*

The launch of ILO Global Report on Freedom ofAssociation, Jakarta, 29 April 2004*

The commemoration of the World Day againstChild Labour on 12 June 2004*

* planned

he ILO and SmartFM have been holding a joint radio talkshow entitled Smart Workers, designed to raise awareness of basicrights in the workplace. The first phase of this joint programmehas been scheduled for four months from January to May 2004.The main focus of this interactive radio talk show is the ILODeclaration of Fundamental Principles and Rights at Work, whichwas adopted by all member countries of the Organization in 1998.Governments re-affirmed their commitment to:

• Freedom of association and the effective recognition of theright to collective bargaining;

• The elimination of all forms of forced or compulsory labour;

• The effective abolition of child labour; and• The elimination of discrimination in respect of employment and

occupation.

“Radio is one of the most cost-effective means of reachinglarger segments of any given country’s population. It has inherentadvantage over other mediums because it overcomes problemsof illiteracy, can reach people in remote areas and in interactive,”said Kevin Cassidy, Communications Manager from the ILO InFocusProgramme on Promoting the Declaration, ILO Geneva. The IFPDeclaration is charged with the responsibility of promotingconditions that would enable member countries of the ILO tomeet fully the commitments above.

Smart Workers is broadcasted every Thursday from 4 to 5 pm,and relayed live throughout SmartFM network stations in Jakarta,Semarang, Manado, Banjarmasin, Makassar, Palembang andBalikpapan. Developed in an engaging style upon the ILO,governments, workers’ and employers’ organizations, the talk showseeks to stimulate national debate about the importance of theseDeclaration issues to further economic and social development. Italso clearly illustrates the principles and rights of the Declaration,challenges faced in realizing them and how people address thosechallenges.

Meanwhile, Bivie Arifin, Director of SmartFM, said that theparticipation of SmartFM in this broadcasting project was part ofits commitment to take part in empowering society. “Ourcommitment is being implemented through our products such asnews, information and knowledge, and our participation throughSmart Workers is one of our contributions.”

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TYouth Employment: Planning for ACTION!

Together with the heads of the World Bank and the International LabourOrganization, I am convening a high-level policy network on youth

employment – drawing on the most creative leaders in private industry,civil society and economic policy to explore imaginative approaches to this

difficult challenge. I will ask this policy network to propose a set ofrecommendations that I can convey to world leaders within a year. Thepossible sources of solutions will include the Internet and the informalsector, especially the contribution that small enterprises can make to

employment generation.

Kofi Annan,UN Secretary General in his address to the Millenium Assembly of the United Nations in

September 2000

Equal OpportunitiesI Policies and strategies that remove obstacles, and encourage

girls to pursue their education and skills aspirations to the best

of their abilities, including the institution of non-discriminationpolicies and legislation against married and/or pregnantadolescent girls, whilst also providing adequate support systems

such as childcare that would otherwise inhibit young womenpursuing their goals;

I Careers guidance and counseling systems and practical toolsthat enable and encourage young women to achieve thehighest levels of education and skills that they can and to

pursue opportunities that match those education and skills;

I Awareness raising and education programmes that reduce thegap between the expectations of society and the aspirations ofyoung women in relation to the attainment of skills and the pursuit

of employment goals;

I B u s i n e s sdevelopment servicesthat complement andfacilitate credit and

savings programmes thatprovide young women

with incentives to pursuebusiness opportunities;

Employment

EmployabilityI Policies and strategies that facilitate equitable access to

opportunities for education and skills training by all youngpeople, and in particular between young people in

differing economic, social and geographicalenvironments;

I Integrated systems of education and learning thatenables competency standards to be achieved andmaintained in line with the capacities and aspirations

of young women and young men;

I Mechanisms and opportunities that allow young peopleto develop life and life long learning skills such as criticalthinking, problem solving, strong personal and work

ethics, time management techniques and a willingnessto excel.

I National qualification frameworks that link educationand employment in a constantly changing domesticand international market;

I Standardised apprenticeship systems that create opportunities

for the expansion of domestic and international labour marketsthrough improvements in productivity and competitiveness;

I Teacher training systems and standards that equip teacherswith the necessary knowledge and skills to respond to the

varying capabilities and aspirations of young women and youngmen.

he Indonesia Youth Employment Network, with technicaland administrative support from the ILO, Coordinating Ministry forEconomic Affairs and Ministry of Manpower and Transmigration,convened a consultative workshop in Bogor on the 10th and 11th

of March to review and revise a draft Indonesia Youth EmploymentAction Plan (IYEAP). Senior officials from key ministries, includingDr. Komara Djaja, Dr. Fasli Jalal, Rintje Kawengian and Harry HeriawanSaleh, and the private sector including APINDO, the InternationalBusiness Chambers and the American Chamber of Commerce, andworkers’ representatives from SPSI and KSPSI among othersparticipated.

Guided by the policy recommendations in the global YouthEmployment Network’s High Level Panel Roadmaps (for moreinformation go to www.ilo.org/YEN), this Indonesia Plan is aimedat stimulating both thought and action across a wide cross sectionof the community, not least among young people themselves.

A few common elements should be regarded as top prioritiesin every national action plan: Employability, Equalopportunities, Entrepreneurship and Employment creation.The IYEAP is built around these four priorities and identifies avariety of impediments that young people face when movingtowards the transition from school to work in Indonesia.Consultations among a variety of stakeholders have identified severalkey areas that need attention if decent work deficits for youngpeople are to be reduced and countries are to benefit from theinvestment that they make in education and employment:

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EntrepreneurshipI Advocacy and awareness raising programmes and mechanisms

that facilitate and strengthen partnerships that encourageyoung people to consider enterprise development as wealth

creating opportunities;

I Information sharing forums that improve access to, and improve

the quality of, business development services that foster betterworking conditions for young people;

I Credit mechanisms and resources that are seen as botheconomic and social investment opportunities and that

encourage greater investment from the business communityin start-ups by young people;

I Innovative and creative mechanisms of investment such asYouth Development Bonds;

I Tools and methodologies that help young women and youngmen to develop the skills and competencies needed for them

to turn their entrepreneurial spirit into action that paysdividends;

I Policy, legislative and regulatory mechanisms that encourageand enable large private sector interests to be more proactivein creating or supporting opportunities for the productive

employment of young men and women;

I Formal and non-formal educational policies and mechanismsthat empower young women and young men to proactivelyconsider job creating enterprises as challenges worth taking

up.

Employment CreationI Policies and strategies that improve the availability of, and access

to, credit for young men and women with an entrepreneurialspirit;

I Incentives that remove obstacles, and encourage youngpeople to consider the agriculture sector as a viable and longterm option for the generation of wealth, including strategies

that add value to the sector and facilitate credit;I Policies, strategies and mechanisms that improve the match

between the demand for skills and an educational system withsufficient flexibility and adaptability to respond to that demand

in the shortest time possible;I Certification systems that constantly strive to produce workers

that can respond to the demands of the modern work

environment, leading to increased opportunities andencouraging job creating enterprises;

I Recruitment processes that are gender responsive and that

select employees on merit, leading to greater productivityand raising competitiveness thresholds to levels that encourageincreased foreign direct investment;

Employment

In Brief

Youth Employment in Indonesia:Policy and Action

Under multi-lateral funding provided by the Government ofthe Netherlands, the ILO Jakarta Office has been allocatedUS$1.3 million to provide additional technical services to supportthe implementation of the Indonesia Youth Employment ActionPlan. The project will run from March 2004 to February 2006and will work with a variety of implementing partners. Moreinformation on the objectives and outputs of the project canbe found in the supplement to this newsletter.

I Information and communication technologies that educateyoung men and women about the opportunities generated

by trade liberalization and globalization, and to actively seekinformation on opportunities for wealth and income generationbeyond the confines of local markets.

Where to from here?The recommendations made through the consultative process

will be articulated in an Indonesia Youth Employment ActionPlan that will be submitted for endorsement at the appropriatelevels and socialized for implementation.

I Legislation and regulatory systems and mechanisms that protectyoung women from being exploited physically, mentally and in

working conditions and rewards in all sectors, not only in thosethat are perceived to be traditional “women’s or girl’s work”.

David Lamotte has been a great contributor, over many years,to the development of work in Indonesia. David managed a localentrepreneurship development project in Makassar and morerecently has been based in the ILO’s Sub-regional Office in Manilaas the Senior Specialist in Enterprise and ManagementDevelopment.

David’s contribution has been in many fields including the woodfurniture industry in Central Java (Semarang and Jepara), theinformal economy at the national and municipal levels, employmentopportunities for young people with a focus on entrepreneurshipawareness and education (Start Your Business), productivity andcompetitiveness issues and support for the reactivation of theNational Productivity Movement and strategies for PovertyReduction (PRSP) amongothers. He also played a keyrole in the organization andmanagement of the Sub-regional Decent Work Forumin Auckland, New Zealand,in October 2003.

As of February 2004,David will work out of theILO’s Management andCorporate Citizenship (MCC)Unit in Geneva but will, nodoubt, continue his interestand support for our work inIndonesia.

11

O

Nine Principles of Global Compact

The Global Compact is an initiative of UN Secretary General Kofi Annanand it is supported by a Global Compact Office. Launched in January1999, the Global Compact is a call to business world-wide to help build thesocial and environmental framework to support and ensure the continuationof open and free markets while ensuring that people everywhere have achance to share the benefits of the new global economy.

The Global Compact consists of nine principles, also known as “UniversalPrinciples”, covering the area of human rights (drawn from the UniversalDeclaration of Human Rights), labour (drawn from the ILO Declaration onFundamental Principles and Rights at Work), and the environment (drawnfrom the Rio Principles on Environment and Development). These principleshave been accepted by most national governments around the world.

The nine principles of the Global Compact are as follows:

1. Business should support and respect the protection ofinternationally proclaimed human rights.

2. Ensure that they are not complicit in human rights abuses.

3. Business should uphold freedom of association and theeffective recognition of the right to collective bargaining.

4. The elimination of all forms of forced and compulsory labour.

5. The effective abolition of child labour.

6. Eliminate discrimination in respect of employment andoccupation.

7. Business should support a precautionary approach toenvironmental challenges.

8. Undertake initiatives to promote greater environmentalresponsibility.

9. Encourage the development and diffusion ofenvironmentally friendly technologies.

Employment

APINDO Launches the Global Compactin Indonesia

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n the occasion of the 52nd anniversary of the Employers’Association of Indonesia (APINDO), Sofjan Wanandi, Chairman ofAPINDO, launched the Global Compact in Indonesia on Saturday,28 February 2004, in Jakarta. The launch was attended by businessleaders, company members of APINDO, APINDO’s representativesfrom provincial and district branches throughout Indonesia, seniorofficials of the Ministry of Manpower and Transmigration and tradeunions as well as members of parliament. Other invitees includedMasayoshi Matsushita,Country Director of theUnited Nations IndustrialDevelopment Organisation(UNIDO), and Alan Boulton,Director of ILO in Indonesia,together withrepresentatives of the UnitedNations DevelopmentProgramme (UNDP), donoragencies, embassies andinternational businesschambers.

In his address, Wanandistated that it was abouttime that APINDO as an employers’ organisation committed itselfto the promotion of the Global Compact principles amongst thebusiness community in Indonesia. “It is an important commitmentof APINDO to show to the international world that Indonesiancompanies are eager to conduct their operations in compliancewith the international standards of the Global Compact.”

The launch started with a brief presentation of the GlobalCompact. Hari Prasetyo of APINDO’s Global Compact Committeeoutlined the nine principles of the Global Compact, the historybehind the initiative and the mechanism to sign up to the Compactprinciples. Then, Martha Tilaar, the CEO and founder of the MarthaTilaar cosmetics group, a giant Indonesian cosmetics company,spoke about the business case for signing up to the Compactprinciples. The Martha Tilaar Group is one of only two Indonesiancompanies that have so far signed up to the Global Compact.

Tilaar pointed out that her company was recommended by aFrench non-governmental organization in 2000 to become one ofthe founding members the Global Compact Forum initiated by UNSecretary General, Kofi Annan. The recommendation resulted fromthe efforts made by the Martha Tilaar Group to address the plightof local women entrepreneurs in Central Java through theimprovement of their business skills.

“Joining the Global Compact Forum is a good opportunity tobroaden business networks with other international companiesand to learn about strategies to compete in the global market,”she asserted. She supported the launch Global Compact inIndonesia by APINDO and encouraged more Indonesian companies

to sign up. She also indicated that the Martha Tilaar Group wouldwork hand in hand with APINDO to promote the Compactprinciples. “I am very please to have finally found business partnersto help promote the Compact principles in Indonesia.”

Speaking on behalf of the UN agencies participating in the GlobalCompact, Alan Boulton congratulated APINDO on the decision topromote the Global Compact in Indonesia. “The launch showedthe willingness of the business community in Indonesia to take theGlobal Compact a step further and to use it as a vehicle forpartnerships to make a contribution to sustainable development,”said the Director of ILO in Indonesia. He also commended Tilaar for

championing the efforts topromote the Global Compactprinciples in Indonesia andinvited other business peopleto follow her example.

As quoted in the local dailyJakarta Post, the country’sbusiness community welcomedthe launch of the GlobalCompact by APINDO. TheJakarta Post quoted onebusinessman from EastKalimantan who said: “I thinkit’s going to be a long haul to

12

T

ILO Holds a Series ofWISE Trainings inEast Java

Employment

he ILO developed a project on Developing CoreSkills through Training of Trainers and Skills Upgrading forIndonesia based on a request of the Provincial Governmentof East Java to help them tackle the high unemploymentrate in the region. The project started with three trainingson Work Improvement for Small Enterprises (WISE) forentrepreneurs of three target sectors, namely: the leather,embroidery and furniture sectors. These sectors are themost significant sectors for small enterprises in East Java.

WISE is a programme that is aimed at increasing workproductivity in small enterprises through low cost andmodest improvements at the workplace by takingoccupational safety and health into consideration.

Held in Surabaya, the first training was organized fortwenty entrepreneurs from the leather sector, mainly fromTanggulangin area—a leather producing village—from 8-12 December 2003. The training was preceded by thesigning of a Joint Communique between the Government of EastJava and the ILO, which serves as a basis for a longer termcooperation between the two parties.

A similar training for the embroidery sector immediately followedand was held at the same venue from 15-19 December 2003.This training was participated by twenty entrepreneurs from theembroidery sector originating from various towns in East Java. Thethird training was conducted for twenty entrepreneurs from thefurniture sector throughout East Java from 24-28 February 2004.

These series of trainings started with an introduction on WISE,followed by visits to selected small enterprises owned by the

participants. Pictures of the workplaces were taken, in particularof spots that need improvements. Upon return to class that verysame day, these pictures were shown to the participants duringwhich the participants were requested to identify things that needto be improved.

The following days were filled with lectures on WISE, namelystoring and handling of materials, design of work station, safety ofproduction machines, control of hazardous materials, lighting,welfare facilities, building and workplace environment, workorganization, and, last but not least, implementation ofimprovements. Video and CD presentations on samples of workimprovements made in small enterprises in other countries madeafter participating in WISE trainings were also shown.

A second visit to the previously visited small enterprises weremade for more identification for improvements after the participantsreceived knowledge on WISE. Upon return to class from thissecond visit, the participants were divided into groups and wererequested to make and present action plans for improvements onthe visited small enterprises, and at the same time were alsorequested to make and present action plans to improve their ownenterprises. Follow up monitoring the improvements made by theenterprises will be done by the ILO in a certain time frame asagreed by the entrepreneurs to make the improvements.

Preparations of the trainings were jointly organized among theOffices of Provincial Manpower and Transmigration Office of EastJava, Planning and Development Body of the Province of EastJava and the ILO Jakarta Office. The trainers of the three WISEtrainings came from the Occupational Safety and Health Centre ofthe Department of Labour and Employment of the Philippines:Dulce Gust (Executive Director of the Centre), Connie Sto Thomas.,Allan B. Cuya and Nelia Granadilos. It is hoped that the abovetrainings will help improve the work of the small enterprises ownedby the target participants.

establish all of the principles. We still have yet to resolveunemployment problems, not to mention legal uncertainties andlow productivity. It’s a good effort, though, and I think it definitelyrequires more campaign efforts in the regions.”

In concluding his address, Wanandi appealed to all members ofAPINDO to help promote the Compact principles in theirundertakings and encouraged the Indonesian business communityto sign up to them. APINDO’s Global Compact team will familiarizethe business community with the Global Compact through trainingand educational workshops, and act as a facilitator, motivator andadvisor. He also called for government efforts in improving thebusiness climate for the implementation of good internationalbusiness practices.

APINDO Launches ...

13

Social Dialogue

T

Editorial

he enactment into law of the Settlement ofIndustrial Relations Disputes Act No. 2 of 2004 on 14 January2004 marking the passage of the last of three centerpiecelegislation envisaged under the Labor Law Reform Programof the Government is a ground-breaking event in the laborhistory of Indonesia. This is part of the Labor Law ReformProgram was launched by the Government in l998 as anaftermath of the historic events thatyear in Indonesia which saw thereinstitution of democratic rule in thecountry and the ratification of ILOConvention No. 87 concerningfreedom of association and protectionof the right to organize.

Phase I of the ILO/USA DeclarationProject was implemented in 2001-2003 while the current Phase II covers2003-2004. The Project hasconducted numerous activities for thetripartite constituents since 2001dealing with capacity-building,realization of freedom of associationand collective bargaining and creating sound and harmoniousindustrial relations. More specifically there have been more than180 activities mainly training, training of trainers and workshops oncollective bargaining and negotiation skills, workplace bipartitecooperation, gender equality, mediation, industrial relations andhuman resources management and union administrative andleadership courses.

On its last year, the project is focusing on activities in supportof the effective implementation of the new labour laws. On 8-9March 2004 for example the project collaborated in the conductof Workshop on the Quality Improvement of Mediators which wasconducted by Department of Manpower and Transmigration frommediators from all provinces. On 25-26 March 2004 the projectassisted the conduct of inter-departmental agencies workshop to

finalize the implementingregulations on the recruitmentand training of labour ad-hocjudges.

The project has been ableto publish the “Guide on theProvisions of the New DisputeSettlement Law” prepared byManpower Ministry with aforeword from the Minister of

Manpower. The first copies will be distributed to the inter-departmental agencies workshop as mentioned above. Copies willbe made available to the tripartite constituents and other keypartners and collaborators of the project. The Project is also oncourse in the publication together with ILO Jakarta and theManpower Ministry of a compilation of the three centerpiece labourlegislation (Bahasa Indonesia and English).

The final evaluation of the labour-management cooperation programsin 38 pilot enterprises will be conducted by the project on the followingdates: 13-14 April (Jakarta), 16-17 April (Surabaya) and 19-20 April(Medan). The other upcoming workshop is in close collaboration withILO Jakarta to conduct one-day forum (tentatively 22-23 April) inpromoting and strengthening the education program on labour andindustrial relations in various educational institutions in Indonesia.

ILO Declaration Project Supports theImplementation of the New Labour Laws inIndonesia

Editor in Chief: Alan BoultonDeputy Editor in Chief: Peter RademakerExecutive Editor: Gita LinggaEditorial Coordinator: Gita LinggaTranslator: Gita LinggaCirculation: Budi SetiawatiContributors: Christianus Panjaitan, Gita Lingga, Henri Sitorus/Lusiani Julia, Margaret Reade Rounds, Oktavianto Pasaribu, Patrick Quinn,

Peter Rademaker, Tauvik Muhamad and T.I.M Nurunnabi Khan.

Design & Production: Ikreasi

ILO Jakarta NewsletterMenara Thamrin BuildingJl. M. H. Thamrin Kav 3, Jakarta 10250, IndonesiaPh. (62-21) 391-3112, Fax (62-21) 310-0766Email: Jakarta@ilo.org,Website: www.ilo-jakarta.or.id

The ILO Jakarta Newsletter is a bilingual newsletter aimed at dealing with the very substance of the ILO Jakarta’s work in Indonesia. The newsletter ispublished three times a year and is also available online. The opinions expressed herein do not necessarily reflect the views of the ILO.

14

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Implementing the ILO Code of Practice onHIV/AIDS and the World of Work

Social Protection

““The workplace has tremendous potential to trigger a unifiedand multi-sectoral response. The ILO offers this manual to all whowish to take up the challenge. The manual is designed as a living

document. It is possible to modify activities, add modules or specificguidelines for particular sectors and groups and for particular

countries or local situations,”

Juan Somavia, Director General ILO

uring the last ten years, it has become increasingclear that the world of work is a key arena where thebattle against HIV/AIDS can be fought—and won.

As a follow-up to the launch of the ILO Code ofPractice on HIV/AIDS and the World of Work in 2001,the next year the ILO released “Implementing the ILOCode of Practice on HIV/AIDS and the World of Work:An Education and Training Manual”—as a tool tocomplement the Code, widen its reach and provideclear guidance on implementation.

This manual is a training instrument whichemphasizes practical activities and guidelines to helpILO’s constituents and other users apply the Code to nationalstrategic plans and develop targeted and effective workplacepolicies and programmes.

The Indonesian version of the manual will be launched at theend of April 2004, in conjunction with the commemoration of theILO’s World Day for Safety and Health at Work. The launch, heldin a collaboration with USAID funded Aksi Stop AIDS, will befollowed by the presentation of main findings of the ILO’s baselinesurvey on the implementation of the Code at the enterprise level.A Ministerial Decision will also be issued by Minister of Manpowerand Transmigration as a legal framework to implement the Codeat national and regional level through Occupational Safety andHealth Council.

The manual is divided into ten sections, includingeight independent modules:

Module 1HIV/AIDS: the Epidemic and Its Impact to theWorld of Work

This module describes the spread of epidemic; how virus istransmitted; why HIV/AIDS is a workplace issue, and how it affectslabour and employment; and the particular strengths of the ILO incontributing to the global response.

Module 2HIV/AIDS and Human Rights

The ILO Code of Practice sets out ten principles that providethe basis for workplace policy on HIV/AIDS. These inform andguide the ILO’s rights-based approach and are stressed throughoutthe manual.

Module 3Workplace Action throughSocial Dialogue: the Roleof Employers, Workers andTheir Organizations

This module concentrates onthe development andimplementation of workplacepolicies through the process of social

dialogue. It establishes the roles of employers’and workers’ organizations, and will help socialpartners implement the Code.

Module 4

A Legal and Policy Framework onHIV/AIDS in the World of Work:the Role of Government

This module is designed to helpgovernment establish a policy and legalframework which promotes and supportsaction to reduce the spread of HIV/AIDS andto mitigate its impact at the national and locallevel. It targets government officials, labourinspectors and officers of employers’ andworkers’ organizations who interact with

government—on tripartite bodies, for example.

Module 5

The Gender Dimensions of HIV/AIDS and the Worldof Work

The Code recognizes the importance of gender equality incombating the HIV epidemic. Although gender issues will beaddressed throughout the manual, they also need to be set outin a specific module. It must be stressed that this module is aboutgender, not only about women, and is addressed as much to menas to women.

Module 6Workplace Programmes for HIV/AIDS Prevention

The Code stresses the importance of prevention—the ‘socialvaccine’. This module assists employers and workers, theirorganizations and other partners in implementing effectiveprevention programmes at the workplace.

Module 7Care and Support

The importance of care and support as part of an overallstrategy for fighting HIV/AIDS has been receiving growingrecognition. This module assists employers and workers, theirorganizations and other partners in implementing care and supportprogrammes at the workplace. It uses a broad concept of care,which is not only concerned with treatment, and includes adiscussion of social protection issues.

Module 8HIV/AIDS and the Informal Economy

ILO standards of all kinds are easier to apply in larger and formalenterprises, but the Code is intended to apply to all aspects of

work, formal and informal. Thismodule discusses how connectionswith persons working in theinformal economy can bestrengthened and the Code maderelevant to their needs andsituation.

15

TWomen at Work: Glass Ceiling Still IntactGender

oday, women represent over 40% ofthe global labour force. Approximately 70% ofwomen in developed countries and 60% indeveloping countries are engaged in paidemployment. Worldwide, more women thanever before are completing higher level ofeducation. Better job opportunities haveincreased many women’s independenceresulted in a new status and role in their familiesand society. Yet, progress on three key and inter-related indicatorsfor gender equality is still inadequate: namely the“glass ceiling” (women in topmanagement), the gender paygap and the “sticky floor”(women in the lowest paid jobs).

In conjunction with thecommemoration of the Women’sInternational Day on 8 March, theILO has released two reports onwomen at work: GlobalEmployment Trends forWomen 2004 and Breakingthrough the Glass Ceiling: Women inManagement. “These two reports provide astark picture of the status of women in theworld of work today”, says ILO Director-GeneralJuan Somavia. “Women must have an equalchance of reaching the top of the jobs ladder. And, unlessprogress is made in taking women out of poverty bycreating productive and decent employment, theMillennium Development Goals of halving poverty by 2015will remain out of reach in most regions of the world.”

True Equality Still Out of ReachThe ILO’s “Global Employment Trends for Women 2004”,

an analysis of female employment, says more women work todaythan ever before. In 2003, 1.1 billion of the world’s 2.8 billionworkers, or 40 per cent, were women, representing a worldwideincrease of nearly 200 million women in employment in the past10 years.

Still, the explosive growth in the female workforce hasn’tbeen accompanied by true socio-economic empowerment forwomen, the report said. Nor has it led to equal pay for work ofequal value or balanced benefits that would make women equalto men across nearly all occupations. “In short, true equality inthe world of work is still out of reach,” the report adds.

What’s more, of the world’s 550 million working poor—orpersons unable to lift themselves and their families above theUS$ 1 per day threshold—330 million, or 60 per cent, are women,the report says. At least, 400 million decent jobs would be needed

to provide unemployed and workingpoor women with a way out ofpoverty.

The report also found thatwomen typically earn less than men.In the six occupations studied,women still earn less of what theirmale co-workers earn, even in“typically female” occupations such asnursing and teaching.

Certain categories of women are especially vulnerable toinequalities in the labour market: rural women,

those working in the informaleconomy, migrant women, theyoung, the older, and the disabled.At both ends of the spectrum, theyoung and the aged face particulardisadvantages in labour markets. Girls

are more likely than boys to bevictims of the worst forms

of child labour, such asslavery andprostitution.

Young womentend to have higherunemployment ratesthan their malecounterparts. TheHIV/AIDS pandemichas also increasedwomen’s vulnerability

given their limited access to socialprotection and economic security. Olderwomen face continued discrimination in thelabour market and often have to assume

care-giving responsibilities within their families in addition to theirwork outside the home.

Global Employment Trends for Women 2004, ILO Geneva, available at

www.ilo.org/public/english/employment/strat/stratprod.htm

Is the Glass Ceiling Breakable?

For women striving to move into managerial and upper-level jobs, the recent update of the ILO 2001 study, “Breakingthrough the Glass Ceiling: Women in Management”, may seemdisheartening. What the update shows is that the number ofwomen in top management jobs has only increased by between1 and 5 per cent over the past five years in some 33 countriessurveyed

The overall employment situation for women hasn’t evolvedsignificantly since 2001, the update says. Women’s share ofprofessional jobs increased by just 0.7 per cent between 1996

16

Informal Economy: “Trends, Characteristics andPolicy Issues”

In Brief

Gender

On 11 February, the Indonesia Resident Mission of the AsianDevelopment Bank (ADB) and the ILO Jakarta jointly organized abrainstorming session on “Informal Economy: Trends, Characteristicsand Policy Issues”. It was an informal forum to exchange informationand views from policy makers, statisticians, selected labour leaders,economists and businessmen on Trends, Characteristics and PolicyIssues related to the informal sector.

In Indonesia, the crisis of 1997-98 resulted in a sudden growthof the number of people being forced into the informal economy.Estimates today are that some 67% of the total labour force—atotal of 60 million people—earn some form of livelihood in theinformal economy. Probably more than half of these people areengage in agriculture of some form, leaving some 28 million peoplein the non-farm and largely urban informal economy, engaged intrading, service industry and small scale manufacturing.

From the Policy Integration Department of the ILO in Geneva,Anne Trebilcock provided an overview of the work of the ILOstudies on the informal economy, which suggest that policy

measures will be required not simply to address problems affectingthe supply-side of operations in the informal economy such asshortages of credit, trained labour and infrastructure. Constraintsmust also be relaxed on the market demand side, where a gradualintegration with the formal economy will facilitate access to newand more reliable markets, also from the public sector at nationaland municipal levels.

The brainstorming session allowed to discuss the policies thatwill allow a gradual move towards more recognized, protectedand productive activities in the informal economy, becoming partof the economic mainstream and regulatory frameworks andintegrating with the formal economy. For both the ILO and theADB the meeting provided an opportunity to see what a coherentpolicy framework on the Informal Economy could mean and whereboth agencies could jointly be providing assistance in developingand implementing such a framework.

and 1999, and 2000 and 2002. And with women’s share ofmanagerial positions ranging between 20 and 40 per cent, thedata show that women are markedly under-represented inmanagement compared to their overall share of employment.

In politics, the proportion of women representatives innational parliaments remains low, increasing from 13 per cent to15.2 per cent between 1999 and 2003. However, the updatedid find recent increases in the number of women in traditionallymale-dominated cabinet posts, such as foreign affairs, financeand defense.

In fact, across all professions, women face barriers to progress.The daily challenge of balancing family responsibilities with workleads some employers to consider women less able, and womenstill have to work harder to prove themselves, or adapt to “male”working styles. What’s more, women face isolation, limited accessto mentoring and female role models, sexual harassment, andare often excluded from informal networks vital to careerdevelopment. The rule of thumb is still: the higher up anorganisation’s hierarchy, the fewer the women

Data show that, in general, countries in North America, SouthAmerica and Eastern Europe have a higher share of women inmanagement jobs than countries in East Asia, South Asia andthe Middle East. Women also hold top jobs in legal systems insome countries, such as in some Eastern European countries.And in early 2003, out of the 18 judges elected to theInternational Criminal Court (ICC), 10 were women.

Yet the news isn’t all bad. Some employers are beginning toshift attitudes, according to the update. Businesses nowunderstand that family-friendly policies, improved access totraining, and stronger mentoring systems encourage female staffretention and can improve productivity. And governments andunions are advocating the reform of employment and welfarelegislation to ensure that mothers can maintain seniority, benefits,and earning potential.

“Breaking Through the Glass Ceiling: Women in Management: Update 2004”,

ILO, Geneva, ISBN 92-2-115523-4, also available at www.ilo.org/gender

17

Departure

A Fair Globalization—CreatingOpportunities for All

BooksMeeting the Youth EmploymentChallenge: A Guide for Employers

This report, issued by the WorldCommission on the Social Dimension ofGlobalization, calls for an “urgent rethink” ofcurrent policies and institutions of globalgovernance. The 168-page reportacknowledges that globalization’s “potentialfor good is immense” and that it “has openedthe door to many benefits … promoted opensocieties and open economies and encourageda freer exchange of goods, ideas and

knowledge … (and) a truly global conscience is beginning to emergesensitive to the inequities of poverty, gender discrimination, childlabour and environmental degradation, wherever these may occur”.Among its prescriptions for achieving a fair and inclusive globalization,the Commission proposes a series of coordinated measures acrossa broad front to improve governance and accountability at bothnational and international levels. The Commission recommends that“decent work for all should be made a global goal and be pursuedthrough complementary national and international policies.

This guide is relevant both to employerswith an established commitment to stimulatingyouth employment, and those new to thisfield. The book examines the role of employersin encouraging appropriate macroeconomicenvironment, reforming employmentregulations and critically assessing government-sponsored job creation and training schemes.It also address the issues of employers cancontribute to the development education and

training policies and how employers can contribute to a newgeneration of entrepreneurs who can themselves grow businessand create jobs. The equality issues relevant to young womenand men are highlighted. It concludes with an action plan thatcan be used by employers already engaged or planning to getinvolved in combating youth employment.

After 3 yearsas ILO RegionalDirector for Asiaand the Pacific,Y A S U Y U K INODERA hasreturned to Japanby the end ofFebruary 2004.Before joining theILO, Mr. Noderahad over 30 yearsexperience in

Japan’s Ministry of Labour.

His first priority as Regional Director was to make sure that theconcept of decent work was put into practice in the region. Mr.Nodera visited Indonesia several times and was a great supporterof expanding the ILO’s programme in this country, in particularthe work on youth employment, gender and industrial relations.He was also keen for the ILO to expand its cooperation withASEAN and supported the Jakarta Office in its liaison role with theASEAN secretariat.

Mr. Nodera has realized that still much to be done, particularlyin Asia and Pacific, in the ILO’s effort to ensure that ordinary menand women have access to decent employment opportunities.“Many people have yet to realize such benefits, and so our workmust go on,” he said, adding that he was very proud to haveworked with the ILO.

The ILO Jakarta participated at a two-day exhibition, “JobExpo”, from 30-31 January 2004 at Tennis Indoor Senayan,Jakarta, as part of the Organization’s awareness raisingprogrammes on ILO activities in Indonesia.

“Job Expo” Exhibition

18

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Column

Globalization, Inequality and PovertyReduction

Tauvik MuhamadNational Project Manager for PRSP -ILO Jakarta

lobalization is surely one of the keywords of our era.Globalization can be taken to mean that everything in the worldaffects everything else. In other words, globalization is theintegration of society and economies, resulting, amongst otherthings, in the reduced cost of transportation, faster communicationideas, lowering of trade barriers, and rising capital flows.

The World Bank, in its mainstream strategy, supports all countriesin this integration process, paving theway to poverty reduction. Globalizationis believed to foster faster economicgrowth, resulting in a “trickle down”development effect where the poor willbenefit.

Several poor nations havesucceeded in reducing the numbers ofthe extreme poor to 120 million in thelast decade, and this was put down tothe integration of the economies.Vietnam and China fall into thiscategory. However, 2 billion poor in othercountries have been left out of theprocess of globalization (Africa, FormerSoviet Union and Latin America). Chilein Latin America, due to prior inequalitiesin education attainment, theimplementation of liberalized trade, toopen their domestic market, has furtherwidened wage inequality.

In Chile, the unemployment rate hasincreased remarkably (from 9.4% in1974 to 18.6% in 1983) since Chile’sadoption of an open market economy,including labour market flexibility. Similarly, the Indonesian labourforce is dominated by a primary school educated workers, resultingin a pool of unskilled labour. The Indonesia Statistics of 2002indicates that 45% of the rural population, and 68% of the ruralpoor youth have only a primary education or less.

Indonesia began liberalizing its financial sector in 1983, byliberalizing interest rates and opening capital account. This provideddomestic financial companies access to private funds abroad. Thispolicy opened up numerous possibilities for short-term capital flowsinto Indonesia and has increased offshore borrowing, includingspeculating in short term flow of funds.

This resulted in private foreign debts and the collapse of theIndonesian monetary system. The same liberalization policy didnot help in reducing Indonesia’s burgeoning unemployment rate.8.6% of workers lost their jobs as a result of the economic crisisthat attack Indonesia subsequent to the Thai devaluation in 1997.Recent statistics suggests that the increment in the unemploymentindicator rose from 4.9% in 1996 to 8.8% in 2001.

Indonesia, however, is making progress in its attempts tostabilize its macro-economics while maintaining the exchange rateof IDR 8,500 with a modest growth rate of 3.5% to 4%. However,the growth is more the result of government and privateconsumption rather than investment. Investments could havecreated new jobs, thus facilitating a reduction in open-unemployment rates that has now reached almost 10 million.

It has been estimated that over 110 million Indonesians liveunder the poverty line, where 53% have no access to health

services, water, education andproper sanitation. This conditionis far from the MillenniumDevelopment Goals on theEradication of Extreme Povertyand Hunger in 2015.

Government and financialinstitution policies that were onlyfocused on market and tradeliberalisation to achieve someeconomic growth, withoutconsideration of the rights andentitlements of its people (pro-poor economic growth), has ledto an increase inunemployment. This condition isworsened by the diminishedcapacities of poor people, dueto low or no educationalattainment, leading todiminished skills, rendering oneincapable of securing a decentjob.

Indonesia needs anintegrated policy arrangement that will foster an equitable andpro-poor economic growth, where no one is left behind. This canbe done by improving education attainment levels andstrengthening skills development, so that new workforce entrantsand existing workers can compete effectively in finding a decentjob and benefit from the integration of economies that offers afree labour market. In addition, the government needs to establishmacroeconomic policy goal to balance fiscal and financial variableswith employment target, identify sectors with potential, such asagribusiness, and make decentralization work in provision of basiceducation standards and building local capacity as well as improvethe quality of education especially from the point of view of servicedelivery. This is the underlying ethos of “the ILO decent workagenda.”