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ILO report: Social dialogue among govt, employers, and workers key for fair economic growth

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A new report from the International Labor Organization (ILO) highlights how collaboration between governments, employers, and workers can help achieve economic growth and social progress while addressing challenges like climate change and digital transformation.

The 2024 Social Dialogue Report emphasizes “peak-level social dialogue” (PLSD), where representatives of governments, employers, and workers come together to discuss and negotiate key labor, economic, and social issues.

The report shows that this approach can lead to better job opportunities, fairer wages, and smoother transitions to greener and more digital economies, a news release from the ILO said.

However, the report warns that PLSD works best when basic labor rights, such as the freedom to organize and the right to collective bargaining, are respected.

Unfortunately, global compliance with these rights has dropped by 7% from 2015 to 2022 due to increasing violations of workers’ and employers’ rights.

Benefits and challenges

The report says social dialogue institutions exist in 87% of ILO member countries, and most workers and employers view them as effective. However, the process often overlooks women, young people, and workers in informal sectors, limiting its inclusiveness.

Social dialogue has played a role in addressing pressing issues like the cost-of-living crisis. For instance, countries that combine government-set minimum wages with collective bargaining achieve better results in reducing wage inequality.

Collaboration through PLSD is helping countries manage shifts to cleaner energy and digital economies. However, this is more common in regions like Europe, where social dialogue systems are well-established.

The ILO report thus urges countries to:

  • Uphold labor rights like freedom of association and collective bargaining.
  • Equip labor organizations with the resources they need to engage effectively.
  • Make social dialogue more inclusive, ensuring women, youth, and informal workers are represented.
  • Regularly evaluate how social dialogue impacts decision-making and outcomes.
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