Social Protection

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Labor Standards and Development

All Asian and Pacific Developing Member Countries (DMCs), by virtue of being member of the International Labour Organization (ILO), are held to respect and promote the fundamental Core Labor Standards (CLS), namely:

• abolition of all forms of forced or compulsory labor
• elimination of discrimination in respect of employment and occupation
• elimination of child labor
• freedom of association and the effective recognition of the right to collective bargaining

There are additional standards to assist labor markets, such as those on occupational health and safety, protection of migrant workers, working hours for young workers, industrial relations, minimum wages, labor administration, etc.

At the beginning of the 21st century, violations of labor standards remain alarming. According to the ILO:

• 20 million people worldwide are in bonded or slave labor
• 250 million children around the globe are working children, many of them in hazardous conditions
• 2 million work-related deaths occur annually, most of them in Asia

Progress in compliance with labor standards has been uneven in Asia and the Pacific. There are 127 million working children (ages 5-14) in the region and bonded labor is reported in some Asian countries. Discrimination at the workplace for reasons such as gender, race, caste, age, religious belief, and political opinion, is widely reported. Many workers are exposed to health hazards and suffer accidents that could be avoided easily.

However, there is overwhelming evidence that promoting decent working conditions reduces poverty, raises living standards, and enhances the quality of growth by increasing productivity. For instance, child labor is not only a consequence of poverty, but also a cause of poverty - despite short-term benefits to families, child labor deprives the young of their childhood, generates stunted growth, removes children from education and skills formation, and deprives them of their right to study and become more productive adults. Child protection is needed.

Similarly, unsafe working conditions may bring short-term gains to employers but result in long-term losses to the national economy. For example, if injured workers become disabled or sick, and they generate further expenses to the economy by having to depend on family support, welfare benefits, disability or health insurance.

A failure to respect labor standards carries specific and measurable costs to national economies, harms economic development, and violates the rights of working people throughout the region. Failure to respect laws is also a grave governance issue. Enforcing labor standards is a good corporate responsible practice.

The Asia and Pacific region is not alone in this respect - this is a phenomenon common to all developing countries and developing regions, and is found in pockets in developed countries as well. The fast economic and social progress achieved in developed countries during the 20th century is intrinsically linked to promotion of labor standards.

For these reasons, many countries, development agencies, companies and civil society organizations are supporting improved labor standards. ADB is committed to the challenge. Since the approval of ADB's Social Protection Strategy, labor standards are an integral part of ADB's development mission. As a good social corporate practice, ADB complies with the internationally recognized core labor standards in the design and implementation of its projects.

Among other activities being undertaken to promote labor standards, ADB has been working since 1999 in collaboration with ILO on a regional technical assistance project on Improving the Role of Labor Standards. The objectives of the final Regional Technical Workshop were to

• discuss selected issues on labor standards for both the public and private sectors, as part of social corporate responsibility
• identify best practices to reduce violations on core labor standards and promote good social corporate responsibility practices
• make recommendations for governments and multilateral financial institutions

Participants included high level decision-makers from both public and private sectors, labor and employer organizations, nongovernment organizations, and international development agencies.

The regional technical assistance and workshop recommended that Governments, ADB, and ILO will:

• highlight labor standards in policy dialogue with governments
• promote improved labor standards by designing projects to address critical issues such as child labor, improve occupational safety, reduce discriminations at the workplace or eliminate bonded labor
• strengthen monitoring of working conditions in the region
• develop capacity building and awareness raising activities to improve labor standards

Review the agenda, papers, presentations and participants of the workshop.