International Labour Standards: The Foundation of Decent Work
The Role of International Labour Standards
In 1919, the nations that signed the Treaty of Versailles created the International Labour Organization (ILO) because poor working conditions, injustice, and hardship threatened peace and social stability. To address this, the ILO created international labour standards through Conventions and Recommendations developed by governments, employers, and workers.
The ILO’s founders understood that the global economy needed clear rules so that economic progress could go together with social justice, prosperity, and peace. In 2008, the Declaration on Social Justice for a Fair Globalization strengthened the ILO’s Decent Work Agenda, which promotes:
- Social dialogue
- Social protection
- Employment creation
- Respect for labour standards
International labour standards have developed into a broad system covering work and social policy, supported by mechanisms that supervise their application in each country. They help the ILO manage globalization, promote sustainable development, reduce poverty, and ensure safe and dignified work.
The Declaration on Social Justice also emphasized that international labour standards are a central part of the ILO’s work. Because of the challenges created by globalization, these standards are now more important than ever.
A Path to Decent Work
International labour standards focus mainly on people and their development. In the Declaration of Philadelphia of 1944, the ILO stated that “labour is not a commodity”. Work is an important part of people’s lives and is closely connected to dignity, well-being, and personal development.
Economic development should create jobs and working conditions where people can work in freedom, safety, and dignity. Therefore, economic progress should improve people’s lives, and international labour standards help ensure that human dignity remains a priority.
An International Legal Framework for Fair Globalization
Achieving decent work in a globalized economy requires international action. Countries have created legal instruments covering trade, finance, the environment, human rights, and labour. The ILO contributes by developing international labour standards so that economic growth is accompanied by decent work.
The ILO’s tripartite structure brings together governments, employers, and workers. This allows international labour standards to establish minimum social standards accepted by the main participants in the global economy.
A Level Playing Field
International social standards help create fair conditions in the global economy. They discourage governments and employers from lowering labour standards simply to gain an advantage in international trade. Reducing labour standards can lead to low wages, low-skilled jobs, and high employee turnover. International labour standards help prevent unfair competition by ensuring that countries follow common minimum rules.
A Means of Improving Economic Performance
International labour standards are sometimes seen as costly, but research shows that they can improve productivity and economic performance. Better wages, working hours, and equality can increase worker satisfaction and reduce staff turnover.
Investment in training can improve workforce skills and employment. Safety standards can reduce accidents and healthcare costs, while employment protection can encourage innovation. Social protection and labour policies can also support economic flexibility.
Freedom of association and collective bargaining can improve cooperation between workers and employers, reduce conflicts, and increase social stability. Foreign investors also consider workforce quality and political and social stability when choosing where to invest. There is little evidence that countries with weaker labour standards are more competitive.
A Safety Net in Times of Economic Crisis
Even strong economies can face unexpected crises. The Asian financial crisis of 1997, the Dot-Com crash in 2000, and the 2008 financial crisis caused unemployment to rise in many countries. The impact was worse in countries with weak social protection, limited labour policies, and little social dialogue. Balancing economic objectives with employment and social protection can help countries respond better to these crises.