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HANDBOOK
Core Labor Standards
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CORE LABOR STANHANDBOOK
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Core Labor Standards Handbook
2006 Asian Development Bank
All rights reserved. Published 2006.
Printed in the Philippines.
Publication Stock No. 051106
The views expressed in this handbook are those of the
necessarily reflect the views and policies of the Asian Deve
Board of Governors or the governments they represent, and
Office.
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The Asian Development Bank (ADB), in its Enhanced Pove
in 2004, has reaffirmed its commitment towards its o
Asia-Pacific region free of poverty. The International Labou
commitment towards achieving decent work for all, i
supports ADBs goal of poverty reduction in the region. R
ground, ADB and the ILO have identified areas for coop
and coordination to improve their contribution to the
goals. This Core Labor Standards Handbook is a result
between ADB and the ILO.
ADB adopted a commitment to core labor standar
Social Protection Strategy in 2001. Since then, ADB en
duly considered in the design and implementation of itsThis Handbook provides information about CLS, e
between core and other (noncore) labor standards, and
good practices in the application of CLS in ADB operation
Foreword
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appendices on practical information about CLS, checklist
other information that can prove helpful to ADB staff and G
We hope that ADB staff and their Government count
Handbook useful. Nonetheless, this Handbook remains a
As more experience and examples of good practice em
elsewhere, the Handbook may be revised, enhanced andthat ADB staff and Government officials have access to
information on CLS. ADB and the ILO will continue to wor
other related issues.
Bindu N. Lohani
Director General
Regional and Sustainable
Development Department
Asian Development Bank
Manila
Lee S
Senior Adviser
Standards a
Principles and R
Internationa
G
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Acknowledgments
The Handbook was prepared under the Asian Developmen
technical assistance on Strengthening the Role of Labor
Developing Member Countries financed from ADBs Tech
Fund and the Government of Norway, with in-kind c
International Labour Organization (ILO). The completion
made possible through close collaboration between ADB
Antero Vahapassi provided overall supervision in preand undertook the final technical editing. Technical guid
support were provided by Shireen Lateef and Sonomi Ta
coordination assistance were provided by Michelle Tan,
Marife Principe, Diane Respall, Ma. Victoria Mabugat, an
The development of this Handbook benefited from tand suggestions of the following ADB and ILO colleagues: C
Candice McDeigan, Sri Wening Handayani, Michiel Van de
Paritha Tritasavit, Toshio Kondo, Robert Barclay, Axel Web
S t C t Th F k H K t
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Abbreviations
ADB Asian Development Bank
CLS core labor standards
DMC developing member country
ILO International Labour Organization
ILS international labor standards
IPEC International Programme on the Elimina
IPSA initial poverty and social analysis
LFPR labor force participation rate
NGO nongovernment organization
PCR project completion report
PPER project performance evaluation reportPPTA project preparatory technical assistance
RETA regional technical assistance
RRP report and recommendation of the Pres
SLMA summary labor market assessment
NOTE
I thi t $ f t US d ll
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Contents
FOREWORDFOREWORDFOREWORDFOREWORDFOREWORD
ACKNOWLEDGMENTSACKNOWLEDGMENTSACKNOWLEDGMENTSACKNOWLEDGMENTSACKNOWLEDGMENTS
ABBREVIAABBREVIAABBREVIAABBREVIAABBREVIATIONSTIONSTIONSTIONSTIONS
PPPPPART 1. INTRODUCTIONART 1. INTRODUCTIONART 1. INTRODUCTIONART 1. INTRODUCTIONART 1. INTRODUCTION
BackgroundBackgroundBackgroundBackgroundBackground
A. Context of the Handbook
B. ADB and ILO Working Together
C. ADBs Social Protection Strategy in Relation t
Core Labor Standards
D. Purpose of the Core Labor Standards Handbo
International Core Labor StandardsInternational Core Labor StandardsInternational Core Labor StandardsInternational Core Labor StandardsInternational Core Labor StandardsA. What are International Labor Standards?
B. Importance of Labor Standards
C. ADBs Actions to Promote Respect for ILS
D. What are Core Labor Standards?
E. Locating Information on CLSF. CLS in ADB Operations
PPPPPART 2. CORE LABART 2. CORE LABART 2. CORE LABART 2. CORE LABART 2. CORE LABOR STOR STOR STOR STOR STANDARDSANDARDSANDARDSANDARDSANDARDS
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D. Why ADB Needs to Take Action on Discriminat
Employment and Occupation
Elimination of All FElimination of All FElimination of All FElimination of All FElimination of All Forms of Forms of Forms of Forms of Forms of Forced or Compulsory Labororced or Compulsory Labororced or Compulsory Labororced or Compulsory Labororced or Compulsory Labor
A. Nature of the Problem
B. What is Forced or Compulsory Labor?C. ILO Conventions on Forced or Compulsory Labo
D. Why ADB Needs to Take Action on Forced or
Compulsory Labor
FFFFFreedom of Association and the Effective Recognition of treedom of Association and the Effective Recognition of treedom of Association and the Effective Recognition of treedom of Association and the Effective Recognition of treedom of Association and the Effective Recognition of tRight to Collective BargainingRight to Collective BargainingRight to Collective BargainingRight to Collective BargainingRight to Collective Bargaining
A. What are Freedom of Association and the Righ
Collective Bargaining?
B. Special Areas of Concern
C. ILO Conventions on Freedom of Association an
Right to Collective Bargaining
D. Why ADB Needs to Take Action on Freedom of
Association and Right to Collective Bargaining
PPPPPART 3. CORE LABART 3. CORE LABART 3. CORE LABART 3. CORE LABART 3. CORE LABOR STOR STOR STOR STOR STANDARDS IN ADB OPERAANDARDS IN ADB OPERAANDARDS IN ADB OPERAANDARDS IN ADB OPERAANDARDS IN ADB OPERATIONSTIONSTIONSTIONSTIONS
Core Labor Standards in Country Strategy and ProgramsCore Labor Standards in Country Strategy and ProgramsCore Labor Standards in Country Strategy and ProgramsCore Labor Standards in Country Strategy and ProgramsCore Labor Standards in Country Strategy and Programs
A. Core Labor Standards in ADB Country Poverty A
B. Child Labor in the Country Strategy and Progra
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Core Labor Standards in Project DesignCore Labor Standards in Project DesignCore Labor Standards in Project DesignCore Labor Standards in Project DesignCore Labor Standards in Project DesignA. General Principles during the Pre-design Phas
B. Core Labor Standards in the Project Design P
C. Child Labor in Project Design
D. Addressing Equality and Discrimination in Pro
E. Forced or Compulsory Labor in Project DesignF. Freedom of Association and Right to Collectiv
in Project Design
G. Proactive Investments to Put Core Labor Stan
into Practice
Core Labor Standards in Project ImplementationCore Labor Standards in Project ImplementationCore Labor Standards in Project ImplementationCore Labor Standards in Project ImplementationCore Labor Standards in Project Implementation
A. Preparing the Bidding Documents
B. Implementing a Project
C. Summary of Monitoring Activities for Compli
Core Labor Standards
D. Project Completion and Postevaluation
ADDITIONAL REFERENCESADDITIONAL REFERENCESADDITIONAL REFERENCESADDITIONAL REFERENCESADDITIONAL REFERENCES
APPENDIXESAPPENDIXESAPPENDIXESAPPENDIXESAPPENDIXES
1 Directory of ILO Offices in Asia and the Pacific
2 ILO Supervision of the Application of Conven
3 Summary Labor Market Assessment
4 Key Indicators of the Labor Market
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Part 1Introducti
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BackgroundBackgroundBackgroundBackgroundBackground
Only decent work for allthat is work that is carrie
freedom, equity, security and human dignitycan provide
for the global economy. This is the concept of decent wo
Juan Somavia, D
Because Asia is home to two thirds of the worlds global poverty must be won in this region. We must
achieving our visiona region free of poverty. This is n
Asia and Pacific region can be free of poverty. This will l
poverty. We must move strongly and swiftly from vision
Tadao Chino, Fo
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A. Context of the Handbook
The goal of an Asia and Pacific region free of poverty clearl
of the Asian Development Bank (ADB). The overarching goa
Labour Organization (ILO) is decent work. The two obje
common.1They are two sides of the samecoin with the com
justice and sustainable economic development for people
and the ILO are working together on ways to reach these g
a memorandum of understanding2 that identifies area
organizations can cooperate, collaborate, and coordinate act
national, and enterprise levels.
This Core Labor Standards Handbook is an example
and collaboration. The two organizations have worked tog
practical publication to encourage and assist policymakers
regional levels, ADB staff, project teams, consultants, and
executing/implementing agencies involved in the design an
country programs and projects to take into account core lwherever and whenever appropriate.The challenge is to con
that the introduction of CLS and labor standards in gen
development. On the contrary, respect for basic human ri
the legal and regulatory structures to implement them, assis
and society as a whole in the quest for sustainable economicsocial development.
This Handbook gives some basic information on interna
at ways in which they can be incorporated into A
d i h i f li
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This Handbook describes the CLS and how to inteoperations, whenever necessary. It was developed by ILO
regional technical assistance.4
B. ADB and ILO Working Together
In ADBs view, poverty is characterized by the lack of acc
services, assets, and opportunities to which every hum
Everyone should be free from hunger, should be able to liv
have access to basic education and primary health care se
context of this Handbook, one of the main challenges i
failure to respect labor standards places an economic o
development in DMCs. If ADB is to take account of these
it must be on a sound economic basis and not just a soc
ILO, which is a specialized agency of the United Nation
to the attainment of social justice through the promotion
strategic components of CLS, employment, social protectiocross-cutting gender issues, in order to enable men and w
and productive work in conditions of freedom, equity, secu
ADB and the ILO recognize the expertise of each org
establish an operational framework and practical modalitie
which focus on development issues, including
(i) consultations between the two organizations on
and assistance plans, and, where appropriate an
b h i l ff i
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where ADB is planning a social protection intervesocial protection strategy;5and
(iii) assistance from ADB to ILO in the development of
programs through interagency consultations.
C. ADBs Social Protection Strategy in ReCore Labor Standards
Progress in ensuring compliance with CLS has been uneve
is prevalent in many developing countries and bonded labo
Asian countries. Discrimination at the workplace for such
race, caste, age, and religious and political beliefs, is widgovernments in the region repress unions and impede w
association and from discussing their working condition
exposed to health hazards and suffer accidents that can
overwhelming evidence that decent working conditions r
living standards, and improve economic growth. For tcountries and development agencies are supporting improv
Since the approval of ADBs Social Protection Strategy7
CLS have become an integral part of ADBs development m
Protection Strategy and its Action Plan commit ADB to c
and guide ADB operations to good labor and social protecIn the context of ADBs work, social protection is define
and programs designed to reduce poverty and vulnerability b
labor markets, diminishing peoples exposure to risks, and en
h l i h d d i i l
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(iv) micro and area-based schemes to protect com(v) child protection.
Within ADBs long-term strategic framework for 2001
term strategies, the social protection priorities for the Asia
the design of sound, comprehensive social protection prreduce poverty and vulnerability, including
(i) interventions to protect communities and the i
(ii) child protection; and
(iii) labor market programs to ensure productive
working conditions, and improved human cap
D. Purpose of the Core Labor Standards
This Core Labor Standards Handbook gives practical kn
operations can comply with the CLS. It does not introducompliance requirements for ADBs operational staff. Th
Handbook is to provide information about CLS, explain t
core and other (non-core) labor standards, and finally, t
opportunities, and examples of good practices about th
ADBs operations. In order to give a comprehensive pioperations, the Handbook is not limited only to project l
it also covers the planning and design of country strateg
The Handbook is meant to be used by ADB operations
i j d i d i l i b i l
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States. These rights are a precondition for all the others innecessary framework from which to strive freely to imp
collective conditions at work. Part 3, Core Labor Standard
presents ideas about how ADB could integrate CLS in its o
Handbook includes several appendixes that include practica
checklists, ILO contact information, and others.
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International Core LabStandards
The increasing attention to and international discourse o
especially on CLS, is an inevitable consequence of globaliza
of current economic undertakings create new work arrang
processes, cultivate complex supply chains, and facilitat
capital and production units, working people in many
quantum leaps (and falls) of the global economy.
Just like democracy, the concept of labor standardoften misunderstood. Efforts to implement them in nation
been seen as anti-business, investment disincentive,
no place in the free market, and as a hindrance to comp
to include this concept in trade discussions have earned it
measure, a job killer, and a western protectionist mcall it market rigidity and a desirable incentive withou
Over the last decade, attitudes have begun to chan
and corporate social responsibility initiatives cove
environmental protection, and workers rights have em
debate on labor standards continues. In a recent issue o
Labor Review, an econometric study by David Kucera co
evidence is found in support of what has been referred t
wisdom, namely, that foreign investors favor count
d d i d d ll id f i i l i ifi
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importance than price, quality, and speed of delivery. ComMarks and Spencer are still continuing to source supplies
the same reason.10
A. What are International Labor Standard
Labor standards are simply the rules that govern how pe
working environment. They come in a variety of forms a
local, national, and international levels. Taking account o
standards does not necessarily mean applying complex leg
situation; it can be as simple as ensuring that basic rules
good governance have been taken into account.Labor standards cover a very wide variety of subjects, ma
human rights at work, respect for safety and health, and ens
paid for their work. They also extend to questions of good
labor inspection and basic labor administration. In an econo
important for raising productivity and competitiveness overAt the national level, labor standards are usually set by l
Some can also be found in collective agreements. Normally
contracting partiestrade unions and employersbut on
countries, they acquire the force of law for the entire countr
At the international level, labor standards are fou
conventions and recommendations. International labor
important for two reasons. First, they represent the interna
minimum best practices, whether on human rights genera
l b d d i di l i
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B. Importance of Labor Standards
1. The Economic Argument for Labor Standards
Putting labor standards into practice improves the econo
developing countries argue that keeping labor costs low is
advantage in manufacturing and services. This is not corrtake into account the productivity-increasing effect of la
respect for basic workers rights has a negative impact o
the people directly affected by these problems. Labor sta
both to assist development and to measure progress tow
are both instruments and indicators.
2. Good Governance and Labor Standards
Good governance demands that labor standards be set
for peoples rights in their most basic economic activi
government to protect them, is in itself support for the cRespecting labor standards, in whatever form, has a
governance benefits; for example, it
(i) builds respect for the law,
(ii) increases respect for human rights,(iii) promotes decent work,
(iv) improves dialogue between social partners, an
(v) improves prospects for exports as importing
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3. Human Rights and Labor Standards
It should also be kept in mind that many labor standard
recognized human rights, contained in international conven
universally ratified, including by most DMCs. There is a g
consensus that human rights are indivisible and have to be
C. ADBs Actions to Promote Respect for
From an ADB perspective, it is useful to take labor stand
order to provide assistance to DMCs. The issue is how this
are various levels and ways to promote labor standards, asof recommendations drafted at the ADB/ILO Regional W
Standards in September 2002 (Box 1).
D. What are Core Labor Standards?13
CLS are a set of four internationally recognized basic rights a
(i) freedom of association and the effective recogn
collective bargaining,
(ii) elimination of all forms of forced or compulsory
(iii) effective abolition of child labor, and(iv) elimination of discrimination in respect of employm
While there are many types of labor standards, the fo
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Box 1: Recommendations from the Asian Dev
International Labour Organization Reg
on Labor Standards, 2002
Strengthen Country Programming StrategiesStrengthen Country Programming StrategiesStrengthen Country Programming StrategiesStrengthen Country Programming StrategiesStrengthen Country Programming Strategies. Th
standards consideration in the Asian Development
programming strategies should be strengthened to
based poverty and social analysis and to highlight
to be addressed.
Strengthen Project Design.Strengthen Project Design.Strengthen Project Design.Strengthen Project Design.Strengthen Project Design. The inclusion of labor sta
should be strengthened in the planning, design, an
all ADB activities, as approved by ADB in its Social
Respect for labor standards should be addressed as
as a matter of ADBs corporate social responsibility.
Strengthen Project ImplementationStrengthen Project ImplementationStrengthen Project ImplementationStrengthen Project ImplementationStrengthen Project Implementation. Violations of
the implementation of ADB-funded activities, or fand subcontractors to observe the standards th
implement, should be prevented. ADB has limited c
of the employment conditions of its projects. A p
request social audits from its contractors or reports
stakeholders (e.g., labor unions). Review Procurement DocumentsReview Procurement DocumentsReview Procurement DocumentsReview Procurement DocumentsReview Procurement Documents. Procurement do
reviewed to ensure that they meet these requirem
to incorporate general clauses on labor standards in
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Ensure Cost-Effectiveness.Ensure Cost-Effectiveness.Ensure Cost-Effectiveness.Ensure Cost-Effectiveness.Ensure Cost-Effectiveness. The measures necessary t
of labor standards may involve additional costs of imp
has to be taken (i) not to construct implementation mhigh level that it is uneconomical to carry out econo
projects, (ii) to build the costs of implementation o
into the costing of economic activities and project
(iii) to ensure that respect for labor standards is never
barrier or protectionist measure.
Develop Capacity and TDevelop Capacity and TDevelop Capacity and TDevelop Capacity and TDevelop Capacity and Training.raining.raining.raining.raining. The measures neede
standards require training and familiarization of
contractors, and subcontractors, and probably the a
skills. A training program should be put into place, o
on labor standards has been established.
Raise Public Awareness.Raise Public Awareness.Raise Public Awareness.Raise Public Awareness.Raise Public Awareness. Public information campaigns
of public opinion on the long-term benefits of respecti
and how the cycle of poverty is reproduced by violatin
Involve Different Stakeholders and Institutions.Involve Different Stakeholders and Institutions.Involve Different Stakeholders and Institutions.Involve Different Stakeholders and Institutions.Involve Different Stakeholders and Institutions. Ens
with labor standards requires positive involvement o
organizations, such as employers associations, lcommunity and civil society groups. Proper invo
institutions is particularly required for conflict resolut
that more than 350 million new jobs are needed in
Box 1(continued)
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on the Rights of the Child, 1989. Their most prominent recDeclaration of the 1995 Copenhagen Summit on Social D
The ILO further substantiated the CLS in 1998 by t
Fundamental Principles and Rights at Work,14which c
countries to comply with the four principles, regardless
ratified the relevant conventions. It also identified a organizations, such as the World Bank and ADB, in prom
While each of the CLS corresponds to one or mo
country may be in compliance with a core standard even i
not been ratified. Conversely, the fact that a country ha
does not automatically prove its compliance with that
domestic legislation and practice must be considered.
It should be recalled that an obligation to respect
part of membership in the ILO. The CLS form more
obligations when the conventions containing them are r
There are additional standards that develop aspects
those on workers with family responsibilities, protectio
working hours for young workers, and industrial relations
cover such subjects as
(i) occupational health and safety (OHS);
(ii) employment promotion, including mechaexchanges, etc.);
(iii) minimum wages and payment of wages;
(iv) social security;
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E. Locating Information on CLS
There are many sources of information on the status of CLS
most important partner on issues related to labor standa
country teams preparing country strategies and program
encouraged to contact staff from ILO country offices (App
unions and employer organizations are also important sou
Of course, another potentially key source of information on
are treated in a country is ADB staff members own observat
gleaned from their networks on the ground. ILO supervisio
of conventions is explained in Appendix 2.
F. CLS in ADB Operations
Since the approval of ADBs Social Protection Strategy in S
have been an integral part of ADBs development mission
action plan commit ADB to comply with these core labor
ADB operations to good labor and social protection prac
excerpt from the Strategy highlights ADBs commitment:
Vulnerable groups that may be negatively a
intervention must be adequately compensated and
put in place to avoid creating further poverty (e.gprivate sector restructuring, workers, particularly
should not be unfairly disadvantaged, regardless o
age, or religious and political beliefs);16 mitigati
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(i) in the design and formulation of its loansthe internationally recognized CLS;
(ii) take all necessary and appropriate steps t
financed procurement of goods and s
subcontractors and consultants will com
labor legislation (e.g., minimum wages, saand social security contributions, etc.) as w
As part of its regular loan reviews, ADB will mon
complied with.
The 1998 ILO Declaration on Fundamental Principle
specifically asks international organizations, such as d
promote an atmosphere conducive to the achievemen
although compliance with CLS may not be a condition f
assistance in client countries, ADB staff are encouraged t
relating to CLS in formulating CSPs and individual loan p
how can ADB staff, project teams, etc., ensure that CL
operations? How can they find out if CLS are being respe
of the operational cycle can CLS be incorporated to ensure
goal, strategic objectives, and operational priorities are m
concerns the relationship of CLS and other labor standard
comply with CLS in the design and formulation its loanapply literally to the rest of the labor standards. Howe
notice that several labor standards have either been ratifi
or integrated into its labor legislation. Therefore, it is ne
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(i) effective abolition of child labor,(ii) elimination of discrimination in respect of employm
(iii) elimination of all forms of forced or compulsory
(iv) freedom of association and the effective recogn
collective bargaining.
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Part 2Core Labo
Standards
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Effective Abolition ofChild Labor
A. Nature of the ProblemChildren enjoy the same human rights accorded to all p
knowledge, experience or physical development of adu
defend their own interests in an adult world, children also
protection by virtue of their age. One of these is prote
exploitation and from work that is dangerous to the healthor which hampers their development.
Millions of children worldwide are engaged in labor
education, development, and future livelihoods; many o
the worst forms of child labor, those that cause ir
psychological damage, or that even threaten their liveintolerable violation of the rights of children; it per
compromises economic growth and equitable develo
abolition of child labor is an essential element of achi
decent work for all women and men. It is also an essen
quest for poverty reduction as described in the ADBAnnual
Develop a Child, Develop a Nation.
ILO has collected information worldwide about childr
occupations. The following summary highlights the over
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8.4 million of 246 million were involved in the forms of child labor;20
Some 127 million children aged 514 years are e
the Asia and Pacific region, or 60% of the w
economically active children in that age group.
Although urban street children and children in facto
manufacturing have received considerable attention, far
employed in agriculture and domestic service. Child labo
rural than in urban areas, and three quarters of working ch
family enterprises.
B. ILO Conventions on Child Labor
There are two basic conventions on child labor adopted
adopted by the United Nations. The ILO Minimum Age
(No. 138) and its accompanying Recommendation (No. elimination of child labor, and the basic minimum age for
(in developing countries at 14 years of age or the end of co
whichever is higher; and 15 or the end of compulsory sch
countries). The Convention sets a minimum age of 2 yea
work, i.e., 12 and 13 years, respectively; and a highe
dangerous or hazardous work (basically 18 years of ag
circumstances). The Convention also has various other flex
h i i i h i i i
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Hazardous workHazardous workHazardous workHazardous workHazardous work. The employment of young pe16 years may be authorized, after consultation
employers and workers, on condition that th
morals are fully protected; and they have rece
instruction or vocational training in the relevan
Light workLight workLight workLight workLight work is work which is not likely to be ha
development of the young persons concerned
prejudice their attendance at school or their par
orientation or training programs.
In June 1999, the ILO adopted the Worst Forms of C
(No.182) and Recommendation No.190, which target th
labor as a matter of urgency. Convention No.182 app
economic activity and requires immediate action, rega
economic development of the ratifying country. It is a
need to take immediate action to eliminate the intoler
children face and to help them recover and lead healthy of child labor are
(i) all forms of slavery or practices similar to slaver
trafficking of children, debt bondage, and se
compulsory laborincluding forced or compchildren for use in armed conflict;
(ii) use, procurement, or offering of a child for pros
pornography, or pornographic performances;
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C. Why ADB Needs to Take Action on Chi
Abolition of child labor is not just another aspect of basi
increasingly recognized as being crucial to reducing povert
labor is not only a consequence but also a cause of povert
benefits to families, child labor deprives the young of the
stunted growth, removes children from education and sdeprives them of the possibility of studying and becomi
adults. While it may be difficult to accomplish quickly in
abolition of child labor is nevertheless a basic goal of de
(see, e.g., Box 2).
The principle of the effective abolition of child labor every girl and boy has the opportunity to develop physically
or his full potential. Its aim is to stop all work by children t
education and development. This does not mean stopping
by children. International CLS allow the distinction to be
constitutes acceptable and unacceptable forms of work forages and stages of development.
The principle covers both formal employment and th
where, indeed, the bulk of the unacceptable forms of c
found. It covers family-based enterprises, agricultural und
service, and unpaid work carried out under various custo
whereby children work in return for their keep.
The ADBAnnual Report 2000, subtitled Develop a Chi
stated that if ADBs vision of a region free of poverty is
d hild d b h l h ll i h d d
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Box 2: Street Children
Street children often lack control over their situation
change it. On the street, they are vulnerable to consid
problems. They are more likely than other children to
more likely to engage in criminal behavior and substa
to be forced into child prostitution or be victimized b
more likely to be without hope and engage in destru
behavior. They are also likely to be engaged in hazard
Although the list is harrowing, street children face a
term threat to their rights and their future: the likelih
the opportunity to fulfill their potential.
Following the United Nations rights-based approa
the Asian Development Bank (ADB) is committed to h
lives of citizens of its developing member countries (D
that everyone should have access to basic education services, and that people over the age of 15 years have
support themselves and to receive fair reward for their
people have the right to a degree of protection to
many street children, this access and these rights ar
dreams.Under the Social Protection Strategy (2001) and in
DMCs, ADB is exploring ways to help street children.
components designed to help street children can fit w
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With children and youth comprising 40% of DMCprotection is vital to the development of the region. It is also
of ADBs development mission.
This is also a basic aim of the ILO, whose Internatio
Elimination of Child Labor (IPEC) is active in many count
Pacific. This is ILOs largest and most widespread technical
and there are significant advantages to ensuring ILO and ADB
possible on this issue.
Eli i i f Di i i i E
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Elimination of Discrimination Emp
Elimination of DiscrimiEmployment and Occu
A. Nature of the Problem
Discrimination in one form or another occurs in the wo
throughout the world. Discrimination at work can
Discrimination is direct when regulations, laws, and polic
disadvantage workers on the basis of characteristics suc
marital status or sex. Prejudices and stereotypes are nodirect discrimination (see Figure 1).
Figure 1. The Vicious Cycle of Discrimination and Inequality
DIndividual attitudes and
institutional structures,procedures and practices
informed by stereotypes andprejudices.
Socio-economicinequalities
C L b St d d H db k
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groups, such as women, ethnic or racial minorities, and mlabor market makes them vulnerable to such abuses as fo
labor. Barriers to decent jobs often lead parents belonging t
a denigrated caste to resort to the labor of their children t
A more equal distribution of job opportunities, prod
assets, including education, between men and women
religions, or ethnic origins, contributes to higher growth a
The elimination of discrimination at work is an indispensab
strategy for poverty reduction and sustainable developme
of the ILO mandate and the concept of decent work, and it
ADBs strategic development objectives, namely gender an
Discrimination at work may manifest itself in access to a j
a job, or through dismissal from a job. Individuals who fa
access to a job tend to continue experiencing discriminatio
a vicious cycle of cumulative disadvantage. It applies to s
entrepreneurship as well as to employment.
Discrimination at work does not result just from isolatedor a worker or from a single policy measure. Rather, lab
practices and institutions either generate and reinforce, o
discrimination. Institutions and practices are not set in stone
to promote equality.
In the 1980s and 1990s, the range of occupations in employed broadened in a majority of countries, especially in
(Organisation for Economic Co-operation and Developmen
developing countries where occupational segregation wa
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Elimination of Discrimination Emp
A common trend in the region is a shift from laws thatto laws that provide for a positive duty to prevent discri
equality. These seem to be more effective in tackling
discrimination, such as occupational segregation. From AD
policy, beyond legislation, is also helpful in addressing d
for example, public procurement policies can be a powe
discrimination at work against members of minority g
disabilities.
B. What is Discrimination in Employme
Occupation?
Discrimination in employment and occupation takes ma
all kinds of work settings. But all discrimination shares
treating people differently because of certain characterist
sex, age, social origin or religion, which results in the imp
opportunity and treatment. In other words, discrimination
inequalities.
1. Elimination of Discrimination is Central to Soc
As indicated earlier, the elimination of discrimination at w
justice, which lies at the heart of ILOs and ADBs mandadiscrimination is an indispensable part of any viable strateg
and sustainable economic development.
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3. A Specific Example: Gender Discrimination aEmployment and Income-generating Activities
Inequalities in access to education and training, ineq
productive resources, reproductive responsibilities, and the st
roles all constrain womens opportunities for entry or re
force. Women remain disadvantaged and discriminated structures and policies, in labor market structures, in all
activity, and in access to economic resourcesincluding
and technology. Even when they are part of the labor force
face various forms of discrimination and disadvantage th
rights set out in CLS (Box 3). Womens contributions, eunremunerated work and other types of nonmarket activity,
unrecognized, or undervalued.
In spite of becoming fully committed members of the
unlike men, have to balance child-care responsibilities with em
Relative to men, women still face
(i) unequal hiring standards;
(ii) limited hiring opportunities;
(iii) unequal (limited) opportunities and choices for
and skill development;
(iv) unequal (lower) pay for equal work or work of e
(v) unequal (limited) access to productive resources;
(vi) segregation and concentration in a relatively sma
d i i l di i i f l
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Elimination of Discrimination Emp
Box 3: Womens Participation in Road Construct
Tree Planting in Bangladesh
The Third Rural Infrastructure Development Project (TR
Bangladesh is funded by the Asian Development Bank (
of TRIDP is to accelerate economic growth thro
development by creating access to economic activities
Infrastructure is considered a mans domain. How
in rural Bangladesh, women are gradually participat
activities. As in most parts of the world, construction ac
are implemented by private contractors who typically women laborers. Women are often allocated the least
paid lower daily wages than men for similar tasks. Thu
orientation sessions and required 604 contractors to
female laborers so they can undertake more skilled ta
pay for equal work. The contractors were also requiand provide basic services like water and sanitation
laborers.
Reaching wage parity for women in construction
possible under project requirements and close monito
women have been able to receive equal wages and access to higher skilled work.
a ADB.1997.Third Rural Infrastructure Development Project (TRIDP). Ma
is also supported by the International Fund for Agricultural Development (
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4. Regional Perspective
23
a. Participation of Women and Men in the Labor Fo
A primary indicator of gender gaps in terms of labor mar
the labor force participation rate (LFPR) of women and men.
on gender equality in the world of work in the Asia and Pathat womens LFPRs do vary considerably in the region bu
depend on high levels of economic growth. In Bangladesh,
where womens LFPRs in 2000 were 67.4%, 58.3%, and 4
great improvements in womens LFPRs have occurred in s
levels of economic growth. Of course, in making compariso
account must be taken of possible differences in definit
participation, unemployment, etc.26Also, traditions in a so
in determining whether or not women consider themselv
labor force. However, given these anomalies, it is still wor
for women are generally significantly lower than those fo
77.3% for women and 86.9% for men in East Asia, 64% f
for men in Southeast Asia, to 46.5% for women and 85.7
and Central Asia, and 41.6% for women and 81.2% for m
the Pacific region, womens LFPRs range from 38% in the
Australia and 81.9% in the Solomon Islands.
In the high-growth countries, women are underragriculture (except in Indonesia, Japan, Republic of Korea
industry, but overrepresented in services. In low-growth co
in transition women are overrepresented in agriculture b
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p
b. Characteristics of the Female Labor Forcei. Overrepresentation in Unremunerated Work
The ILO report on gender equality in the Asia and Pac
level research clearly indicate that a large proportion of w
the formal or informal economy, is unremunerated, b
unaccounted for in the economy.
ii. Unemployment and Underemployment
In the region, unemployment rates for women tend
men. For example, in Bangladesh, research indicates th
garment industry, once the special concession given to taway, the main burden of job loss would have to be borne
Apart from the constraints that women face in terms of acc
employment and remunerative work, they also fac
discrimination in the labor market, which makes them m
than men, as in the Asian financial and economic crisis. In
industries of Thailand, the share of women in the total o
crisis was 7090%.
Another important characteristic of womens emplo
underemployment in terms of the hours worked.
underemployment is a more serious problem for wom
underemployment of women seems to have increased for
during the 1990s. In Bangladesh, while there was little
female unemployment rates, the underemployment
diff l d l ill l h
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(UNIFEM) data of 1997 on six Asian countries show thatpercentage of male wages are generally higher in the industr
(e.g., Republic of Korea, 62%; Singapore, 76%; Sri Lanka,
72%) than in the manufacturing sector (Republic of Kore
60%; Sri Lanka, 85%; and Thailand, 68%).27
Country-level research conducted in 2002 in Banglades
and Thailand gives some further indications about the wag
region.28In Bangladesh, data for 1995/96 indicate that wo
of pay in both the agricultural and the nonagriculture secto
or less compared to mens pay. In the rural/agriculture secto
ratio of male to female wage rates went up from 1.36 in
1995/96. When men and women did the same kind of jo
difference in pay favoring men, but of a much smalle
nonagricultural occupations, the same ratio over that per
1.67. In the public sector, wage-based discrimination was m
to womens relative access to high-level jobs. In the priva
and particularly in the female-dominated garment industrat low levels of education of both men and women, there
male/female wages favoring men. However, at higher lev
wages for women were higher than those of men.
In Thailand, the average wages of women in the priva
8088% of male wages. In the public sector, the differenwas small and had gone down during the previous 4 years
not mean that women had an equal share of jobs at all ru
in the civil service.
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advantage in earnings is bigger, indicating that women dup the promotional ladder. Even in professional occupatio
workers would presumably be self-employed, the fema
70% or below compared to male earnings. Another, rath
that married women fare worse than unmarried women
report that, overall, over the 1990s, differentials in mal
had been shrinking in the Philippines, could be partly due
raised wages of public sector workers at lower ranges.
In Nepal, there was a marked shortfall in women
mens wages in agriculture; but in construction, the d
two was small. Interestingly, male wages were significan
developed areas, indicating that where other employm
available, they push up the opportunity cost of male la
womens. In the organized sector of Nepal, minimum w
are higher than for men in several industries, including
mining and quarrying they are usually on par with those
wage rates in almost all industry groups were significant
iv. Concentration in the Informal Economy
While both men and women are employed in inform
based jobs throughout the region, women take up the lar
in both Bangladesh and Nepal, about 90% of women w
7080% of male workers are involved in informal econ
jobs. In Bangladesh, there is also a significant difference
male and female workers between formal and informal jo
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5. Other Forms of Discrimination in the Labor Forc
It is gender discrimination that has attracted the most r
consequently more data are available on it. But other bases
also widespread throughout the region, and must be kept in
Other prohibited grounds of discrimination appear in
instruments and in national legislation. These include race, copinion, national extraction and social origin (i.e., caste), all
by ILO Convention No. 111. Other international conventio
such characteristics as language, birth, or other status (e.g
was born in wedlock), age, health or HIV/AIDS status, and
Many of the negative effects of gender-based discrimabove apply also to these other forms of discrimination
differences. While other forms of discrimination are unlikely
work-and-family burden known by women almost ever
religious discrimination can deprive entire regions from acc
training. It can determine the kinds of investments govern
regions and can, of course, lead to civil unrest and inter
countries, governments decide not to keep statistics on rac
can further complicate the process of identifying and comb
discrimination.
C. ILO Conventions on Discrimination in EmOccupation
The first binding international instrument to be adopted with
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whether in cash or in kind, by the employer to
out of the workers employment.
For the purpose of the Convention, the term eeeee
men and women workers for work of equal va
remuneration established without discriminat
indirectly, on sex.
Where differential ratesdifferential ratesdifferential ratesdifferential ratesdifferential rates between workers corre
to sex, to differences in the work to be perform
an objective appraisal, these must not be consid
to the principle of equal remuneration.
These instruments were shortly followed, in 1958, bILO of the Discrimination (Employment and Occupation)
and Recommendation No. 111, which address all fo
concerning employment and occupation.
The main issues in Convention No. 111 are:
Discrimination:Discrimination:Discrimination:Discrimination:Discrimination: any distinction, exclusion or pr
basis of race, color, sex, religion, political opini
or social origin (or such other ground as may be
concerned), which has the effect of nullifying oopportunity or treatment in employment or oc
Each State that ratifies the Convention undertake
a national policy designed to promote equali
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- ensure observance of the policy in emp
guidance, vocational training and placemen
direction of a national authority; and
- indicate in its annual reports on the applicati
the action taken in pursuance of this policy.
D. Why ADB Needs to Take Action on Disc
Employment and Occupation
Gender, ethnic, religious, or other biases prevent a large sec
from operating optimally. At one time, labor-surplus countr
to specialize in labor-intensive industries employing large nuworkers, mainly women. However, for a sustained and stea
periods, a country has to build its human capital and mo
services using more sophisticated skills.
In developing countries, a large part of the domestic
land, and capital) is used in activities of the self-employed
and these activities together produce a significant sect
product. Increasing the productivity of these activities and
engaged in them is essential for the country to reach a hig
growth.
For poor households, the only available productive res
its members. Unless they can find work that is sufficient
household remains mired in poverty. One consequence
children of the households to join the workforce. As discus
hild l b hi h hild j l d i d
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Elimination of All FormForced or Compulsory
A. Nature of the Problem
Forced labor is universally condemned. Yet the elimina
formsold and new, ranging from slavery and debt
traffickingremains one of the most complex cha
communities, national governments, employers and w
and the international community. It is revealing ugly neold. Traditional types of forced labor, such as chattel slav
still exist. In economic contexts, disturbing new forms, s
connection with the trafficking of human beings, are no
perspectives of ILO and ADB, forced labor contravenes their
The abusive control of one human being over another is t
work and impedes poverty reduction. Clearly, there is a nee
patterns of forced labor in the region as well as country-s
information is needed to assist ADB decision makers in
how best to tackle the problem, assess priorities, an
interventions against forced labor.
Vital questions include
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The first minimum global estimates of the numbers
labor were given in the ILO second Global Report on fo
12.3 million people globally are victims of forced labor, m
of them have been trafficked, 9.8 million are exploited by
2.5 million are forced to work by the state or by rebel
majority of forced labor in the world is in Asia and the Pa
It is not always possible to give an accurate estimate of t
on a national/local scale; or to take into account in detail th
of different categories as a basis for targeted action. The r
forced labor is inevitably in the illicit, underground econo
escape national statistics. Further, those statistics that a
sufficiently robust to get a true picture of forced labor.Even without a full statistical picture or in-depth soc
there is enough evidence to detect a serious problem. Pre
necessary to enable ADB efforts to combat it in project act
There are many different types of forced labor, but they a
features: the exercise of coercion and the denial of freedom. Tof forced labor first came to be associated with colonial
twentieth century and remnants of serfdom. Then came the
labor camps, and other forms of compulsory labor. Wit
consolidation of democratic regimes, together with more o
renewed commitments to fight poverty and transnational cr
hope that forced labor can be relegated to the past.
Some aspects of forced and compulsory labor remain ten
slavery-like systems such as debt bondage, a form of forc
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B. What is Forced or Compulsory Labor
Paradoxically, there is still some uncertainty among countrie
practices do or do not constitute forced labor. It is im
understand some of the basic elements of forced labor (Bo
helps to assess the scope of the problem of forced labo
making. It will also help in discussions with all stakehattention on any covenants or conditions attached to a l
The diverse forms of forced labor today include
slavery and abduction,
compulsory participation in public works proje forced labor in agriculture and remote rural are
recruitment systems),
domestic workers in forced labor situations,
bonded labor,
forced labor imposed by the military,
forced labor in the trafficking of persons, and
some aspects of prison labor and rehabilitatio
Certain groups, such as women, ethnic or racial minori
and above all the poor, are particularly vulnerable to thes
of forced labor. Situations of armed conflict can also com
1. Slavery and Abductions
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Box 4: ILO Conventionsaon Forced or Compulso
LaborDefinitions
Forced laborForced laborForced laborForced laborForced labor is a legal term as well as an economic phen
is not possible to respect, promote, and realize th
elimination of all forms of forced or compulsory labor
what the phrase means. The full definition contains ex
basic idea was set out in the first International Labour O
convention on the subject, the Forced Labour Conventi
(Article 2(1)): The term forced or compulsory labor sha
service which is exacted from any person under the menand for which the said person has not offered himsel
penalty referred to need not be in the form of penal sa
take also the form of loss of rights or privileges.
There are also exceptions allowed in the ILO conven
service under compulsory military service laws is exemptpurely military purposes. Work or service that is part o
duties, such as jury duty, is not prohibited; nor is comp
emergency, or communal work that is an obligation of the
Prison labor is exempt from the definition, but only if
consequence of conviction in a court or law, and is car
supervision of a public authority; and prison labor may n
a private company or individual without the consent of t
labor for such reasons as mobilizing for economic develop
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bound to arise. Many communities have a long-standing tr
voluntary labor, including the reciprocal arrangements i
each other in agricultural and other tasks. However, de
minor communal services or normal civic obligation
from the definition of forced labor, should not mask situ
forced labor. In parts of Asia, there have been require
participation in public works. It has sometimes been argu
acceptance of this practice as a contribution to rapid ec
but this has not been considered an acceptable viewpoin
3. Forced Labor in Agriculture and Remote Rural
Coercive Recruitment Practices
Systems of peonage and serfdom have for the most
eradicated over recent decades. Other forms of coercion
however, continued to exist. Rural workers can still be loc
advances made by recruiting and transporting agents, who
contractors supplying a labor force for landowners or
enterprise. In isolated areas, workers have no choice bu
for food and other necessities supplied by the landow
accepting goods in lieu of wages.
Serious problems may exist in remote areas; for ex
forests have been opened up for agricultural, mineral, or
The persons susceptible to abuse may be indigenous a
common feature tends to be that workers recruited to w
f f h f i i h i bl d i ibl
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4. Domestic Workers in Forced Labor Situations
Working largely in private households, domestic wor
unparalleled degree of vulnerability. Domestic work per se
but it can degenerate into forced labor when debt bond
involved, or when the worker is physically restrained from le
home or has his or her identity papers withheld. In a variplight of female domestic workers in forced labor situa
reported. The worst situations involve violence, sometime
and/or torture. When the domestic workers are interna
problems are often compounded further. And in many
domestic work is omitted from the coverage of national la
5. Bonded Labor
Another form of forced labor that is still extensive in the reg
The term bonded laborer refers to a worker who re
conditions of bondage arising from economic considerindebtedness through a loan or advance. Where debt is t
bondage, the implication is that the worker (or dependents
to a particular creditor for a specified or unspecified per
repaid. Even where bonded labor has been declared unlawf
is required to enforce this legislation, and to provide for sanlandowners or other employers who hold their workers
cases of bonded labor are found, it is important that supp
are provided, including economic assistance and rehabil
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Box 5: Sind Rural Development Project
The Sind Rural Development Projectain Pakistan seeks t
status and income of the rural poor in the project area.
the area, special components focus on governance and
the Sind Tenancy Act, 1950, and the Bonded Labor Sys
1992), as well as on providing haris,bmarginal farm
laborers access to credit through community-based or
to avoid bondage with their landlords.
a ADB. 2002. Report and Recommendation of the President on a PropoDevelopment Project($50,000,000). RRP: PAK32024-01. Manila.
b The Sind Tenancy Act, 1950 uses the term hairand tenantsynonymo
person who personally cultivates the land of another person (the land
6. Forced Labor Exacted by the Military
In contrast to situations in which governments are increa
the existence of various forms of forced labor and makin
them, a few countries basically reject the idea that there
perception has often coincided with the exaction of force
and related authorities. In these cases, forced labor portering; the construction and maintenance of military
support of the military; work on agriculture, logging,
projects undertaken by the authorities or the military;
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poorer countries alike, it is a global phenomenon. The po
the poorer countries, and often the most deprived rura
countries. The main destinations may be the urban centers o
and the capitals of developing and transition countries
trafficked persons is highly complex and varied. While
trafficking for the sex industry, persons are often trafficke
that may also involve forced laborcoercion involving
workers has been detected on several continents. Dome
workers, and particularly those in the informal sector, can a
of this phenomenon.
A key aspect of trafficking is the gender dimension of
and the rapid rise in womens labor force participation. Tmigration has been put forward as a major determinant
Notably in Asia, women have been moving more in
autonomous economic migrants, rather than as dependen
have been mainly Indonesia, Philippines, Sri Lanka, and Th
also the Peoples Republic of China, Lao Peoples DemoMyanmarwith recipient locations including Hong Ko
Cooperation Council states, in particular Kuwait and S
Darussalam; Japan; Malaysia; and Singapore.
8. Prison-linked Forced Labor
Prison labor is exempted from the definition of forced lab
No. 29, except in specified circumstancesotherwise put,
l b if
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(iii) the person is not hired to or placed at th
individuals, companies or associations, mea
perfectly in order for prisoners to work for priva
to be an element of consent in this relations
being made into a cheap workforce under co
protections normally available to workers; and
(iv) The prisoners have not been jailed as a means
education or as a punishment for holding or ex
participating in strikes.
For ADB, two kinds of situations are the most rele
covered in sections (i) and (iv) above, in which prisonework in ADB projects, there is a need to ensure that they ar
who have been jailed without trial for their political view
under a re-education through labor regime.
As concerns prison labor for private entities, the
rehabilitation through training and integration into the in private enterprise forming partnerships with the go
constructive work for prisoners. The concerns that arise ar
should work under government supervision to prevent p
a captive workforce, and the abuses by exploitation of p
profit of corrupt officials should not be allowed.
C. ILO Conventions on Forced or Compu
h d fi i i f f d l b i b i
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This Convention clarifies certain purposes for which forced
imposed, but does not alter the basic definition in internat
However, certain types of labor are excluded from the
No. 29:
work of a purely military character;
work that forms part of the normal civic obligati
work as a consequence of a conviction in a court
(i) said work is carried out under the supervis
public authority;
(ii) the said person is not hired to or placed at th
individuals, companies or associations;
work in cases of emergency (war, calamity,
circumstance that would endanger the existence
the population); and
minor communal services (services performed by
community in the direct interest of the said com
D. Why ADB Needs to Take Action on Forc
Compulsory Labor
Forced or compulsory labor makes headlines almost daily inin persons, imprisonment in sweatshops, and the slavery-lik
plantations and even in private homes. Much of the abus
and Pacific region and includes several of ADBs DMCs
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Freedom of Associationthe Effective Recognitithe Right to CollectiveBargaining
Freedom of association and the effective recognition of
bargaining are the foundations for a process in which w
make claims upon each other and resolve them through a
leading to collective agreements that are mutually bendifferent interests are reconciled. For workers, joining to
have a more balanced relationship with their employ
mechanism for negotiating a fair share of the results of
respect for the financial position of the enterprise or publ
are employed. For employers, free association enablescompetition is constructive, fair, and based on a collab
productivity and conditions of work.
A generally positive recent trend has been widespre
importance of social dialogue to economic and social d
governance. In the context of the ILO, the term social dia
of negotiation, consultation, or exchange of informatio
representatives of governments, employers, and workers
interest relating to economic and social policy. Freedom
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A. What are Freedom of Association and
Collective Bargaining?36
The ILO Convention on Freedom of Association and Prote
Organize, 1948 (No. 87), is always cited together with th
and Collective Bargaining Convention, 1949 (No. 98). The
the twin conventions on freedom of association and collecgive workers their most fundamental rightsthe righ
organizations of their own choosing and to promote and d
and social interests. These conventions give the same righ
While Convention 87 gives workers the right to form a
Convention 98 consolidates this basic right with guarantee
trade unions to operate freely and independently of governm
Further, Convention 98 lays down the key principles of the r
bargain collectively. It provides the protection that workers an
need against acts of anti-union discrimination and of interfe
authorities or employers. It also lays down the obligations
respect and promote freedom of association and collective b
not only does this Convention establish the right of a trade
defines its purposeto negotiate with employers with a v
of terms and conditions of employment by means of colle
Freedom of association is considered the most fu
standards within ILO. Even prior to the 1998 DeclaratiPrinciples and Rights of Work, this standard as defined in
and 98, was thought vital enough that all member states
l i h i i l h b di d dl f
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compliance with the fundamental principles of freedom
investigating the complaint, the Committee reports to th
which may request action by the government concerned,
this action has been taken.37
B. Special Areas of Concern
The debate surrounding CLS is highly relevant for ADB und
and mission of poverty reduction and economic and socia
access to safe and productive work is a critical factor in
the legal framework surrounding employment is a centra
and worker protection.38
The core standards on freedom of association and th
of the right to collective bargaininghave often been cons
financial institutions to be more controversial than oth
this in ADB comes from its Charter: Article 36 says sh
political affairs of any member However, at the same t
to comply with all CLS in its lending activities39 based
considerations. ADB can attach conditions of CLS/ILS to
only to the extent that lack of compliance with the sta
economic development objective of its programs. Additi
must not interfere in the domestic political affairs of the
While acknowledging that the relationship betweenand economic development is complex, ADB encourages
positive role for labor market actors, especially wor
i i i i d b h d i
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independent unions and employers organizations. Even w
exist, ADB should take no action that would make organi
bargaining more difficult.
C. ILO Conventions on Freedom of Assoc
Right to Collective Bargaining
Freedom of association is the most basic of all principles un
the ILO.In addition to recognition of the principle of freed
the ILO Constitution and the 1944 Declaration of Ph
incorporated into it, two conventionsadopted in 1948 and
set out the essential elements of freedom of association, t
and the importance of collective bargaining.
1. Freedom of Association and Protection of the
Convention, 1948 (No. 87)
This Convention establishes the right of all workers and emjoin organizations of their own choosing without prior au
down a series of guarantees for the free functioning of or
interference by the public authorities. The essence of the C
following:
Workers and employers have the right to es
organizations of their own choosing for furthering
interests without previous authorization.
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2. Right to Organize and Collective Bargaining C
(No. 98)
This Convention provides for protection against ant
for protection of workers and employers organiza
interference by each other, and for measures to promote an
bargaining. Convention 98 includes the following issues
Workers must be protected against acts of ant
such as
- making their employment subject to the co
not join a union or shall relinquish membe
- causing the dismissal or otherwise prejud
of union membership, participation in u
working hours, or, with the consent of
working hours.
Workers and employers organizations must enjagainst any acts of interference by each other.
Measures to encourage and promote the f
utilization of machinery for voluntary negoti
employment contracts, and to collective agreem
The Convention leaves it to national laws or reg
the extent to which it applies to the armed f
Furthermore, it does not deal with the posit
engaged in the administration of the State.
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the universality of these rights and their distinction as key
still no universal acceptance of these fundamental principles
To be effective in eliminating poverty, developmen
integrate economic, social, and political dimensions. Sec
development that give primacy to economic and financia
assumption that social goals will be tackled separately, are
be only partially successful. Participation in poverty reductio
those of ADB, means having an effective voice through the c
of interests. This, in turn, implies organizational rights a
security. Respect for these rights builds social capital and
achieving decent employment and incomes for all wome
reducing poverty and inequality. There is growing acceptathese rights is not only a desired outcome of economic dev
critical means of achieving sustainable development.
In considering the most appropriate national policie
economy, the debate is beginning to shift from a narrow
getting prices right and reining back regulations, to a bof how best to govern the market and balance social and e
open economy, the policy changes necessary to restore mac
such as devaluation or an increase in interest rates, c
distributional implications and trigger disputes that delay a
shows that countries that have benefited most from integ
economy are those that already have institutions for con
place and are, thus, better equipped to handle these dispute
on the recovery from the Asian financial and economic cris
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Part 3Core Labo
StandardsADB Opera
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Core Labor Standards iCountry Strategy and P
ADBs country strategy and program (CSP) provides
framework to guide ADBs operations in a country ove
preparation of CSPs is accompanied or preceded by eco
analytical work. The conduct of a country poverty analysis,
environment, gender, private sector, governancea
constitute essential elements of CSP preparation, and th
for assessing the importance of labor issues and CLS in cThe discussion of CLS can be addressed in various c
they can be addressed in governance, foreign direct invest
They can also be addressed as cross-cutting issues and
of investing in human development and insuring the po
and opportunities. Addressing CLS in CSP should depend oCSP, and the CLS discussion as part of country poverty and
fit in the context of human development or labor market
Incorporation of CLS in ADB operations starting from
straightforward issue, but more often a more challengin
their risk and vulnerability profiles and summary labor m
give information on the general situation of labor sta
country. This stage may flag potential conditions in a co
a CLS issue during project design.
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A. Core Labor Standards in ADB Country
Analysis
As a first entry point, CLS should be considered during th
country poverty analysis (CPA). From the CLS point of view,
at a risk and vulnerability profile and a summary labor ma
1. Risk and Vulnerability Profile
The risk and vulnerability profile will assist in understand
poverty. The profile should depict the major risks that affe
risks can be categorized into the following seven groups:
(i) natural: heavy rainfall, landslides, volcanic eru
floods, hurricanes, droughts, strong winds, etc.;
(ii) health: illness, injury, accidents, disability, epide
famines, etc.;
(iii) life-cycle: birth, maternity, old-age, family break-(iv) social: crime, domestic, violence, terrorism, gangs,
etc.;
(v) economic: unemployment, harvest failure, business
output collapse, balance of payments shock, fina
crisis, technological or trade-induced terms of trad
(vi) political: discrimination, riots, political unrest, etc
(vii) environmental: pollution, deforestation, land d
disaster, etc.
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When risks, their frequency, exposure possibilities
anticipated impacts have been identified, proper strate
risks must be developed. Based on different strategie
appropriate risk management instruments are needed to
of risks or the vulnerability of individuals, households, an
The risk and vulnerability profile serves mainly fo
Concerning the CLS, the profile should identify persons forced or compulsory labor, child labor incidents, and e
where inequality is strongly present. At the same time, ap
need to be considered (Box 6). All data should be gen
understand better the division of the burden of povert
men. Often, women are disproportionately affected by ppoverty differ according to social groups of women a
vulnerability profile should also be compared with the find
labor market assessment, e.g., due to labor market po
and legislation, and child labor situations.
Why is a risk and vulnerability profile important with
can be used for identifying public macro-level risk manag
policies and legislation. Second, at the individual level th
labor issues. If households and families are vulnerable,
strong and they are at risk of falling into poverty, in whic
often taken out of school and sent to work. When ADB p
areas or populations, there may be a need to implement
2. Summary Labor Market Assessment in the CPA
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Private FPrivate FPrivate FPrivate FPrivate Formalormalormalormalormal(insurance companies,
financial marketinstitutions)
Private InformalPrivate InformalPrivate InformalPrivate InformalPrivate Informal(mainly individuals,
households,communities, NGOs)
(gove
intern
Box 6: Examples of Risk Management Instrument
Risk Management Strategy and the Level o
Risk Management Actorsa
Risk reduction and prevention (reducing the probability of the
Less risky production Migration Proper feeding and
weaning practices
In-service training Financial market
literacy
Company-based andmarket-driven laborstandards
Risk mitigation (reducing the possible impact of the risk in adv
Engaging in hygiene andother disease preventingactivities
Investment in multiplefinancial assets
Microfinance Old-age annuities Disability, accident,
and other insurance(e.g., crop insurance)
Pen Ass Pro
righwo
Supma
Mains
Multiple jobs Investment in assets Investment in social
capital Marriage/family support Community
arrangements Shared tenancy Tied labor
Gopol
Pre
Lab Lab Ch Dis AID
pre Leg
gen
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indicate the countrys compliance/noncompliance with lab
CLS. The enforcement related issues should also be studied
In general terms, the summary labor market assessmen
following information:
(i) Employment and laborEmployment and laborEmployment and laborEmployment and laborEmployment and labor-related data-related data-related data-related data-related data. Employmen
underemployment rates; incidence of seasdistribution (people employed in agriculture, ind
disparities; real wage dynamics; labor-intens
potential for generating employment; the inf
employed; changes in participation rates (es
working conditions; compliance with national alaws and standards, including the reported existe
labor and violations of other CLS.
(ii) The countrys laborThe countrys laborThe countrys laborThe countrys laborThe countrys labor-absorbing development -absorbing development p-absorbing development -absorbing development p-absorbing development p
supply and demand of labor. Has growth been
the population in working age? What is th
population below 18, the future entrants into
the economy be able to absorb all new entrants
Which are the most dynamic sectors of the econ
intensive? Which sectors/policies, in which geogr
be promoted in the short/long term to maximi
More specifically, these assessments should pay atte
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(iv) existence and contents of collective bargaining
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(iv) existence and contents of collective bargaining
to the sector or activity, and of collective bargainin
resolution;
(v) information on the occupational accidents and i
(vi) information on the informal economy activities
protection;
(vii) labor force participation patterns (disaggregated(viii) demographic and other social data (disaggregat
Ideally, information collection should involve collaborat
with relevant international, national, and local organizati
such as the ministry responsible for labor; national statitrade unions and employers organizations; internationa
employers organizations; labor research institutes, often in
regional representation of the ILO; and other civil society org
with labor issues (womens organizations, child protection
associations, etc.).
There may be cases in which no national labor law ha
particular field, or when its coverage is incomplete, and w
refer directly to international labor standards to ensure co
Social Protection Strategy. Gaps in coverage of national lab
the agriculture sector, domestic workers, home-based wor
for subcontractors, and small enterprises. In addition, w
applicable, national labor law may not be applied in fact in th
Often a full labor market assessment might be too res
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The findings of the country poverty analysis in relation
on the CSP, thereby harmonizing ADBs overarching goa
with the development priorities and preferences of the
essential that the prioritization of all ADB programs, p
assistance involves a careful evaluation of the trade-offs b
social development, and is consistent with the findings o
However, as indicated earlier, any such trade-offs shosupport compliance with CLS.
B. Child Labor in the Country Strategy a
ADBs country poverty analysis and CSP are inten
understanding of the nature of the social and economic t
a review of the prevailing labor law framework and em
children, as well as of education policies and their interact
is a crucial input. Between and within countries, the ext
specific reasons for its existence, and problems associate
widely. Therefore, the summary labor market assessmeAppendix 3, should include a review of the available in
labor, which should then be used in the various parts o
analysis. The basic data for SLMA can be collected from th
the labor market (Appendix 4). Child labor issues in the
Table 1.
Table 1: Child Labor Analysis
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C. Equality and Discrimination in the Couand Program
Due consideration should be given to the different forms
work, including gender implications of all ADB projects. T
of the inputs for the CSP should include a gender assessm
labor market as an important input. Because country strat
in order to understand the nature of the social and eco
country, a review of the prevailing equality and labor law fram
and/or equality policies, and gender relations and their
economy are crucial inputs. ADBs policies on gender an
defined in the Operations Manual, include several tools, o
relevant to this Handbook are shown in Box 7.
1. Explicit Links with regard to Women, Economic
Poverty
Removing discrimination against women in the labor ma
step for reducing household poverty. For this, the followi
explored:
(i) What is the distribution in the region of workin
household?
(ii) What is the nature of the womens econom
households?
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Box 7: Some Tools on Gender and Development
The country gender assessmentprovides the basis for for
strategy in the country strategy and program (CSP).
Thegender strategyfor a country specifies how theBank (ADB) intends to address the gender issues
gender assessment, and how the overall gende
achieved through ADBs program of assistance. It
as a core appendix in the CSP.
A detailed gender analysis is required for thosepotential to correct gender disparities or to signi
gender equity concerns, or that are likely to have
impact. Gender analysis must be conducted as an e
of the initial poverty and social analysis (IPSA).
If the IPSA indicates that the project has the potent
disparities or significantly mainstream gender con
have substantial gender im