Social Dialogue: A cornerstone for economic, social development —ILO Report

A recent report by the International Labour Organization (ILO) highlighted the transformative potential of social dialogue in fostering economic growth alongside social progress while ensuring inclusive transitions to low-carbon and digital economies.

The Social Dialogue Report 2024, titled Peak-level Social Dialogue for Economic Development and Social Progress, underscores the importance of “peak-level social dialogue” (PLSD) as a mechanism for collaboration among governments, employers, and workers. It defines PLSD as national or sectoral processes for negotiation, consultation, and information exchange on labour, economic, and social matters.

The report identified PLSD as instrumental in advancing decent work, equitable income distribution, and just digital and green transitions. However, its effectiveness is undermined by short-term socio-economic policies and the exclusion of marginalized groups.

“Amid economic and geopolitical instability, social dialogue offers a governance model to navigate complexity, identify fair solutions, and advance social justice,” said Manuela Tomei, ILO Assistant Director-General for Governance, Rights, and Dialogue.

Key challenges highlighted include: A 7 percent decline (2015–2022) in compliance with freedom of association and collective bargaining rights, attributed to increased violations of fundamental civil liberties and labour rights. Concerns over inadequate follow-up by governments on PLSD outcomes. Inclusivity gaps in National Social Dialogue Institutions (NSDIs), particularly for women, youth, and informal economy workers.

Despite these challenges, the report noted significant strides in integrating social partners into policy design and governance.

National Social Dialogue Institutions (NSDIs): Present in 87% of ILO member states, with a majority of workers (75 percent) and employers (66 percent) finding them effective.

Occupational Safety and Health (OSH): 80 percent of member states have established peak-level tripartite OSH bodies.

Social Protection Reforms: Enacted in 65 countries, extending coverage for pensions, health, and employee benefits.

Employment Policies: Over 30 percent of public employment services include employer and worker representatives on their boards, and 25 percent of national employment policies emphasize tripartite consultation.

The report, however, examined how PLSD mechanisms, such as minimum wage setting and sectoral collective bargaining, address the cost-of-living crisis and labour income inequality. It also underscores PLSD’s role in managing digital transformation and decarbonisation policies. A review of 118 social dialogue processes from 2022–2023 revealed that approximately 25 percent focused on twin transition-related themes, predominantly in Europe.

The way forward, according to the report, lies in leveraging industrial policies centered on economic diversification and structural transformation to enhance PLSD’s role in guiding transitions.

To unlock the full potential of PLSD, the ILO calls on countries to: Uphold fundamental labour rights, including freedom of association and collective bargaining.

Strengthen labour administrations and social partners with adequate resources and technical capacities. Expand the inclusivity of NSDIs, especially for underrepresented groups. Regularly evaluate the effectiveness of PLSD institutions in shaping socio-economic policies.

Overall, the report positions social dialogue as a critical tool for navigating contemporary challenges and fostering a just, equitable, and sustainable future.

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