Social Dialogue for defining broad scenarios Workers and Employers’ Representatives Celine Peyron Bista and John Carter ILO, 2013

Severance payment vs. UI “Severance payment, commonly in force in the region” Reluctance by employers and employees, and government to the introduction of UI. moral hazard (employers & workers: disincentives to work) Impact of cost of doing business (why “good employers” should pay- cost/benefits analysis) definition of unemployment (limited to formal employee- measures not so popular; however scope often broader than severance provisions)

Enhanced ALMPs Might not be the right time to introduce contributory UI Alternative is having better coordinated and effective ALMPs will allow for a more productive and better skilled labour force Reinforcement of employment support programmes (jobs centers)

Social dialogue- who gains? • Reduce hardship and poverty • Minimum income replacement secured • Better chance of finding suitable job • Avoid financial difficulties that can lead to family conflicts Workers & families • Terminations easier to accept by employers and workers • “Sheltered” workforce during temporary layoffs (higher productivity) • More stable economic and business environment • Less pressure in case of bankruptcy Employers • Stimulating consumer spending (reduced need for savings, ensure minimum income during recession) • Reduce costs of other public assistance schemes • Reduce need for ad hoc interventions • Social stability: minimize unrest, delinquency and crime Government

Enhance the environment for consensus building for contributory UI schemes Inception meeting with tripartite stakeholders Establishing a Tripartite Advisory Committee with some clear terms of reference and regular meetings Building capacities of workers and employers’ representatives Internal consultations: Satellite meetings and position paper Provincial/regional consultation workshops National workshops to share findings of consultations with broader group of stakeholders

Discussions What are usually contentious issues in discussing introducing unemployment protection programmes, in particular UI? How do we facilitate social dialogue and consensus building for the introduction of UI schemes? How to engage workers’ and employers’ organizations in the design and implementation of non-contributory schemes?