Policy for decent work deficits

Excerpts of address by Secretary, Ministry of Labour Relations and Productivity Promotion Mahinda Madihahewa at the launch of two Research Studies of the ILO.

Once, the present Director General of the ILO stated the ILO was a knowledge institution. It generates knowledge through studies, surveys and various other means relating to a wide range of issues in the world of work, and disseminate to all the stakeholders.

The policy makers both national as well as international are benefited from such studies.

In this context, we welcome the findings of the two studies as they focus on two timely issues in Sri Lanka's efforts in achieving decent work goals of the country.

As most of you are aware, Sri Lanka has formulated a National Decent Work Policy, and an Action Plan with the participation of the tripartite constituents, to address the existing decent work deficits. Allocation of funds from the National budget for the year 2007 is a clear reflection of the recognition and the commitment of the Government, to address these issues in order to achieve the goal of decent work.

By embodying most of the activities in the decent work Action plan in the Ten Year Horizon Development Framework, 2006-2016, or the "Ten Year Vision" of the Government is a further reflection of the Government's commitment to address the decent work issues. Sri Lanka also recognizes the need to address these issues in a coherent and coordinated way.

Countries such as Sri Lanka encounters many challenges in creating a conducive environment for full and productive employment and Decent Work and sustainable enterprises.

These include payment of a fair wage and social protection by domestic enterprises faced with increasing competitive pressures in the global economy; providing decent employment for the large number of persons employed in the informal economy; giving priority to market-driven economic growth, and aiming to deal with the social consequences afterwards. In such circumstances realizing decent work and sustainable enterprises is indeed a challenge.

The old economic theory says, that economic growth necessarily addresses poverty, as higher volumes of economic activity require the hiring of more workers.

Although this wisdom still holds, there are ample empirical studies to show, that the relationship between growth and job creation has been weakening latterly.

We have noted from the experiences from Malaysia, that efforts to attract foreign direct investment have been accompanied by greater efforts to develop country's human resources.

I believe, that the study carried out by Prof. Sunil Chandrasiri will help us have insights into the jobless growth issues in the manufacturing and services sectors in Sri Lanka.

The study on "Working Poor" also addresses, another critical issue relating to Decent Work. To achieve the goal of decent work, the workers should have productive and quality employment and as well as social protection.

We are aware, that those lacking social protection tend to belong to the economically weaker section of the society.

I could recollect that in one of the preliminary reports used in the formulation of the Decent Work Policy, citing surveys carried out by the Department of Census and Statistics had noted, that the "unemployed were better off than the working poor". Perhaps they would have referred to the absence of social protection for the working poor. The goal of social protection is not mere survival, but social inclusion and the preservation of human dignity. The huge task of extending social protection is one which the Government need all the public support.

The ILO has been working with the Government and other stakeholder in promoting social security in Sri Lanka. The ILO in a recent report has proposed numerous measures to be taken to strengthen the existing programmes and offer policy directions to evolve a "social protection floor".

In Sri Lanka, we do not come across many studies that look into the issue of working poor.

I therefore commend the ILO, for identifying this critical issue, and congratulate Dr Ramani Gunathilake for carrying out this study. I hope Dr Gunathilaka's finding would provoke a productive discussion on the issue of working poor and help strengthen Sri Lanka's programs in addressing social protection, poverty and vulnerability.