The International Labour
Organisation (ILO) has adopted a recommendation on international labour standard with a view to helping workers transit from the informal to the formal economy.
The Director-General of ILO, Mr Guy Ryder, made this known in interview with newsmen in Geneva, Switzerland on the sideline of the 104th session of the International Labour Conference.
Ryder said that putting the recommendation into practice would help hundreds of millions of workers and economic units move out of the informal economy.
“I think it has been an important moment after two years of negotiations; the conference just adopted this recommendation on the transition from the informal to the formal economy.
“This is something, which affects a very large part of the world’s working population – nearly half is still working in informality. “And over the years, we’ve seen a growing consensus between governments, workers and employers that the right thing to do is to move these people in to formal employment situation.
“We know it is not easy; we know that these are processes, which are complicated; they have different components.
“And I think the great value of this recommendation – and it is the first time – is that we now have an international framework of guidance for member states on how to bring this about.
“It will be a very important instrument for the ILO as we work to cooperate with our member states to help them to bring this about.
“It is not just the adaptation of this recommendation now, it is actually putting this into practice that will matter.“
Ryder, who said that more than half of the world’s workforce was estimated to be trapped in the informal economy, described the development as the denial of their rights to work.
According to him, the absence of sufficient opportunities for quality employment, inadequate social protection, lack of social dialogue and low productivity constitute a significant obstacle to the development of sustainable enterprises. He said that the new recommendation acknowledged that most people entered the informal economy not by choice, but due to a lack of opportunities in the formal economy and an absence of any other means of livelihood.
He said that the new international labour standard would provide strategies and practical guidance on policies and measures that could facilitate the transition from the informal to the formal economy.
The ILO director-general said that the new labour standard would provide guidance for member states to facilitate the transition of workers and economic units from the informal to the formal economy.
He added that the development would encourage respect for workers’ fundamental rights and ensure opportunities for income, security, livelihoods and entrepreneurship.
“It will also promote the creation, preservation and sustainability of enterprises and decent jobs in the formal economy and the coherence of macro-economic.
“Others are employment, social protection and other social policies, and prevent the informalisation of formal economy jobs,“ he said
Ryder, who said that the recommendation was passed by 484 votes in its favour, added that it garnered outstanding support from ILO’s tripartite constituents.
He said that the adoption of the recommendation was a crucial step toward assisting countries to set up the necessary measures that would promote the creation of decent jobs and sustainable enterprises in the formal economy.