Employers need to be more informed and proactive - ILO Consultant

Anuradha Kodagoda

Employers need to be more informed and proactive in the way they are dealing with the crisis, Consultant ILO Sri Lanka Ramani Gunatilaka said speaking at a workshop organized by the International Labour Organization (ILO) held last week to discuss the impact of the global economic crisis on employment and industrial relations in Sri Lanka.

In the presentation she explained the macroeconomic situation of the current economic crisis, the transmission channels, the impact on employment and industrial relations and the Government's responses.

It is incumbent on labour authorities to encourage a more equitable distribution of the costs of adjustment between labour and capital in favour of employers. The Government needs to iron out existing macroeconomic distortion to stimulate exports and also the Government needs to effectively shore up consumption of the poor.

The end of the war will provide a much needed opportunity for a fiscal stimulus, she said.

"It is to be hoped that the crisis will jolt policy makers to grasp the nettle of instituting effective social protection mechanisms without any further delay," she said.

Director ILO Sri Lanka Tine Staermose said, "Following the prolonged increase in unemployment, poverty and inequality, and the continuing collapse of enterprises as a result of the global economic crisis, the assessment of the social impact the crisis is likely to have in different sectors and industries is critical to ensure quick response and ensure that systems and institutions are in place to deal with this crisis, where required.

Therefore the ILO commissioned a rapid assessment, comprising of detailed information and analysis on the impact of the crisis in many countries around the world, to prompt a stronger and more coherent policy response from national stakeholders and the international community and which particularly seeks to alleviate negative effects on the most vulnerable group," she said.

"The Global Jobs Pact which ILO constituents adopted to guide national and international policies, proposes a range of crisis-response measures that countries can adapt to their specific needs and situations.

It is not a one-size-fits-all solution, but a portfolio of options based on successful examples, also designed to inform and support action at the multilateral level," she said.