1. Trends in Collective Bargaining in Asia and the Pacific Pong-Sul Ahn Sr.Specialist on Workers’ Activities ILO DWT, Bangkok

2. Contents of presentation 1. Key challenges in collective bargaining practices in AP region 2. Trends in collective bargaining Legal aspects Employment aspects Statistical aspects Trade union aspects 3. Collective bargaining coverage vs. role of social partners 4. Conclusion and suggestions 2

3. 3 The CBA coverage in Asia is very low because of low trade union density in most of Asian countries fragmentation of trade unions Cambodia, Thailand, Philippines, and Indonesia expansion of informal economy low coverage of CBA for agricultural workers, workers in EPZs, migrant workers, and domestic workers inexperience of new trade unions on negotiation and collective bargaining 1. Key challenges in collective bargaining practices in the AP region

4. 2. Trends in Collective Bargaining A. Legal aspects The legislation explicitly excludes specific groups of workers from collective bargaining. In some countries, the scope of negotiations is limited to wages and terms and conditions of employment. Collective bargaining limited to enterprise level. Gaining the recognition of trade union as collective bargaining agents is difficult. Only majority unions are granted the right to collective bargaining. Lack of legal enforcement on terms of collective agreements Compliance with freedom of association 4

5. Composition of the labour force – wage employed or self employed In respect of precarious and non-standard forms of work, there is no worker-employer relations. -Unclear definition of employee -Unclear identification of the employer -Short tenure of employment and migratory nature of employment 5 B. Employment aspects

6. Supply chains undermine collective bargaining. Outsourced workers are unable to go for negotiations. Public sector workers facing budget cuts are the main target for restructuring. Negative attitude of employers to negotiation and collective bargaining exists, and employers and employers’ organizations are not committed to collective bargaining. 6

7. Insufficient information on corporate profits proved to be a challenge in negotiation with companies -Productivity -Corporate profits -Share of wage in the corporate production cost Lack of statistics and reports on economic and social development weakens the legitimate argument of trade unions at times of negotiation and collective bargaining 7 C. Statistical aspects

8. D. Trade union density 8

9. Thresholds of forming trade union are restrictive. Fixed-term employment makes it difficult to organize these workers. Organizing workers in MNEs is a challenge. The unionisation of workers in informal economy is extremely low. CB capacity of trade unions, especially small-sized unions, is weak. Multiplicity of trade unions cause the fragmentation of labour movement, weakening CB power. 9

10. E. Factors influencing collective bargaining

11. 11 F. High rate of CB and institutionalized policy- making mechanism

12. 12 In countries where union density and collective bargaining rates are high, social partners are strong and they are effectively engaged in policy-making. A decision-making mechanism on labour is institutionalized. In countries where union density and collective bargaining rates are low, social partners are weak and they are engaged in policy-making at ad-hoc basis. A decision-making mechanism on labour is not institutionalized, so social partners are politicized.

13. Source: ILO, Global Wage Report 2010-2011 (ILO, Geneva, 2011) At the companies that are highly unionized, the workers are paid better than workers at the companies that are less unionized. G. UNION MEMBERSHIP BY PAY LEVEL IN FOUR SELECTED COUNTRIES (%)

14. 4. Conclusion and suggestions Promotion, ratification and implementation of ILO C.87 (FOA) and C.98 (CB) is fundamental to increasing CBA. 14 Country Freedom of association Forced labour Discriminati on Child labour C087C098C029C105C100C111C138C182 Total: 185152163177174171172166178 Africa (54)485354 525452 Americas (35) 3332343533 3034 Arab States (11) 3611 710 11 Asia (34)1821272328242330 Europe (51)5051

15. 15 Labour law reform in line with freedom of association and collective bargaining is essential. -Include a legal provision that obliges employers to have good faith bargaining with trade unions -Include a right that guarantees workers and trade unions to seek relevant corporate information. -Freedom to bargain on all matters including wages working hours, union security, employment security, and workplace safety. Practice of various collective bargaining patterns at the national, sectoral or enterprise level as appropriate.

16. The minimum wage plays an important role as a barometer that helps adjust wages for informal and precarious workers. So the adjustment and implementation of the national minimum wage is getting significant as CB power is weakened. Full involvement of trade unions in policy-making is critical as CBA is declined. The capacity of trade union representatives, especially in small-sized unions, needs to be strengthened. 16

17. 17 To extend CB coverage to unorganised workers, trade unions need to set “organizing” as a key priority. -Good planning and strategies, with a focus on target groups, geography and sectors -Systemic training and education on organizing skills -Collection and replication of good showcases of organizing -Focal points and resource allocation

18. THANK YOU 18