Current trends in Employment, and
Industrial Relations & Labour Laws in
Asia
Pong-Sul Ahn
ILO DWT for East and South Asia and the Pacific
Decent Work for All ASIAN DECENT WORK DECADE 2006-2015
The contents of presentation
1. Trends in employment
2. Trends in industrial relations
3. Labour law reform and decent work
Trends in employment
1. Large majority of workers fall under the working poor
(million)
Source: Kapsos and Boumpoula (2013).
% of workers living under moderate and extreme
poverty in 2000 & 2009
Source: ILO, Trends in Econometric Models (ILO, Geneva, 2010)
2. Percentage of precarious employment of the total workforce
in selected Asian countries
Nepal
India
Pakistan
Indonesia
Philippines
Viet Nam
Sri Lanka
Thailand
Total Female Male
China
0 20 40 60 80 100
Note: Indonesia includes only Banten and Yogyakarta; Sri Lanka excludes the Northern Province; China covers six urban areas.
Source: ILO: Statistical update on employment in the informal economy (Geneva, June 2012); National statistical offices.
Precarious employment in ASEAN countries by sex (%)
Source: ILO - Trends Econometric Models, January 2014
3. High youth unemployment compared with the adult
unemployment rate in Asia (%)
Indonesia (Feb 2012)
Sri Lanka (Q3 2011)
Philippines (Jul 2012)
New Zealand (Jun 2012)
Hong Kong, China (Jul 2012)
Taiwan, China (Aug 2012)
Australia (Sep 2012)
Marshall Islands (2011)
Pakistan (2011)
India (2010)
Japan (Aug 2012)
Korea, Rep. of (Sep 2012)
Singapore (Jun 2012)
Viet Nam (2011)
Macau, China (Q2 2012)
Youth Total
Thailand (Q2 2012)
0.0 5.0 10.0 15.0 20.0
Note: Youth aged 15-24, except Hong Kong, China (aged 15-19); Macau, China (aged 16-24); Pakistan (aged 15-19); Singapore (Residents aged 15-29)
and Viet Nam (aged 20-24).
Source: National statistical offices; ILO: Key Indicators of the Labour Market, 7th Edition (Geneva, 2011).
High youth unemployment rate in ASEAN countries (%)
Note: data are estimates.
Source: ILO - Trends Econometric Models, January 2014
4. Stagnant real wage growth in Asia, 2006-11 (%)
Annual real wage growth in ASEAN, 2005-2013 (%)
Note: The figure for 2013 is a preliminary estimate based on available data in the year.
Source: ILO estimates based on national sources compiled in the Global Wage Database.
Average monthly wages in ASEAN countries, 2012 (US$)
Source: ILO Global Wage Database, based on national sources and ILO estimates
based on 2010 CLS/LFS micro-data for Lao PDR.
5. Long working hours
country Weekly Overtime limit Maximum Overtime pay Minimum
WH weekly WH annual leave
Impacts of labour flexibility
1. Large majority of workers fall under the working
poor
2. Precarious employment with little social and legal
protection
3. High youth unemployment rate
4. Stagnant real wage growth
5. Long working hours with concern of OSH
Transforming “a low wage growth model” towards an
inclusive and wage-led economic growth model
Trends in industrial relations
1. Labour fever
Spread of wild cat strikes spread in many
countries including
• Bangladesh
• Burma
• Cambodia
• China
• Vietnam
Demanding higher wages and better welfare schemes
2. Violation of FOA
• Cambodia, using FDC
• Bangladesh, delaying registration of new unions
• India, imposing the Essential Service
Maintenance Act
• Thailand, applying various employers’ tactics
• Korea, denying recognition of teachers’ and civil
servants’ unions
• Malaysia, using the IRA and the TUA
• Myanmar, displacing union leaders
Ratification of ILO 8 core conventions in Asia
Ratification status of 8 core conventions by Bangladesh, China, India, Nepal,
Pakistan and Korea.
4. Inflows of migrant workers within Asia
• Vulnerable to discrimination and violation of labour
rights
• Not fully respect for trade unions
• Little social security including healthcare
• Pushing wages lower, by taking low-quality jobs with
low wages
5. Low unionisation rate
Source: ILO, 2012
6. Low collective bargaining coverage
year CB coverage
Country % of wage % of total
workers workforce
Australia 2008 38.2
Bangladesh 2006 5.0 1.1
India 2002 2.0
Indonesia 2005 14.0 4.0
Japan 2005
Korea 2006
Malaysia 2007 2.4 1.8
New Zealand 2008 17.8 14.6
Pakistan 2001
Philippines 2007 2.2 1.1
Singapore 2007 17.3 14.6
Sri Lanka 2003
Taiwan, China 2006
Thailand 2007 0.5
China 2012
Vietnam 2013
Other trends in industrial relations
• Use of the judicial system to punish legitimate
union activities and union leaders
• Promotion of work council and CBA with
shopstewards
• Internal barriers and weaknesses of trade
unions
Labour law reform
Q1: What are the strategies/ focus of
trade unions in achieving labour law
reform in line with international labour
standards?
Labour laws in China
Enacted and years to be Process/ Role of ACFTU Role of ILO
effective
Labour Contract Law Active participation in the ILO provided forums
(2008) process and training
Employment Promotion Involved in the tripartite
Law (2008) drafting committee
Labour Dispute Mediation Opened a website to
and Arbitration Law collect workers’ views and
(2008) delivered them to the
government
Social Insurance
Law(2011) Organised seminars and
workshops to consolidate
ACFTU perspectives
Labour laws in Vietnam
To be revised Role/ Role of VGCL Role of ILO
The Labour - MoLISA worked with ILO organised a study tour,
Code social partners on the forums, and research
LC
Trade Union Act - VGCL authorised to
draft TUA
-Adopted in 2013
The Minimum
wage Act (draft) -Making a VGCL
position paper
Labour law in Malaysia
Labour legislation under review Process/ Role of MTUC Role of ILO
Employment Act 1955; - Organised forums ILO provided
Industrial Relations Act 1967; -Developed a position forums
Trade Unions Act 1959; paper
The Minimum Wage Act effective -Involved in the
from March 2011 PEMUDAH meeting led
by the PM office
-Submitted a MTUC
concern to the
government on
underlining of labour
rights
Labour Law in Myanmar
New law Process/ Role of trade Role of ILO
unions
Act on Organizations in No consultation with Fact-finding mission to
2012 trade unions Rangon in Feb. 2011 to
discuss a draft TU Law
with the government
ILO IR project being
implemented, training
tripartite partners on the
Act as well as FOA and
CB
Labour law in Thailand
Laws to be Process/ role of trade unions Role of ILO
reviewed
The Labour Formed a “Campaign Committee of Trade ILO has closely
Law Unions to promote Ratification of ILO C.87 collaborated with
Industrial and C.98 in Oct. 2009”, constituted by 12 trade unions in their
Relations national federations ratification
Law campaign, by
providing numerous
Adopted its workplan in Nov. 2009 forums, leadership
training and
research.
MOL-led Tripartite Working Group concerning
ratification of ILO C.87 and C.98.
Early 2011, the Cabinet decided to ratify the
conventions
On 8 Oct 2013, union representatives and the
Deputy PM signed a MOU to ratify C.87 and
C.98 before 1 May 2014 (political situation
disturbs the ratification process)
Labour law in Cambodia
Law under Process/ role of trade unions Role of ILO
review
Draft 14th meeting of the Private Sector Forum held in Nov. ILO provided
Trade 2008 discussed the need for a TU Law technical and
Union Law financial support to
- In Dec. 2008, the office of the Council of Ministers
trade unions from
issued an order to prepare a TUL
the beginning of
- In May 2009, a Tripartite Working Group set up to draft the draft law until
a TUL (8 G, 3 E, 4 W and 1 ILO) now
Trade unions played active role in all processes of
tripartite consultation meetings held in 2010-11
-On 24 June 2009, the first TU preparatory meeting held
to take a common position
-Developed a union position to provide inputs in the draft
law in June 2010
-A number of preparatory meetings held prior to the
tripartite meetings to consolidate views of multiple unions
-On 28-30 May 2014, tripartite meeting be held in PP to
review the latest version of the TUL
Further discussion on trade union
preparation for labour law revision
• Who will take initiate in the labour law revision?
• What is the scope of the labour law revision/ reform?
• What is the process of the revision?
• What is the timeframe of the revision?
• What are union strategies – negotiation skills and bargaining
power?
• What is the supporting mechanism within trade union?
ASIAN DECENT WORK DECADE 2006-2015
Decent Work for All
THANK YOU
