The Social and Solidarity Economy and Decent work

The 2nd Social and Solidarity Economy Academy

Montreal, 24 October 2011Jürgen Schwettmann, ILO PARDEV

Decent Work: a definition. Social Economy: principles, actors and data. Informal economy: decent work deficits. The Social Economy as a bridge between

informal and formal. The virtuous triangle.

Content

What is meant by Decent Work?

“Decent work sums up the aspirations of people in their working lives. It involves opportunities for work that are productive and deliver a fair income, security in the workplace and social protection for families, better prospects for personal development and social integration, freedom for people to express their concerns, organize and participate in the decisions that affect their lives and equality of opportunity and treatment for all women and men.”

“Decent work sums up the aspirations of people in their working lives. It involves opportunities for work that are productive and deliver a fair income, security in the workplace and social protection for families, better prospects for personal development and social integration, freedom for people to express their concerns, organize and participate in the decisions that affect their lives and equality of opportunity and treatment for all women and men.”

“Decent work sums up the aspirations of people in their working lives. It involves opportunities for work that are productive and deliver a fair income, security in the workplace and social protection for families, better prospects for personal development and social integration, freedom for people to express their concerns, organize and participate in the decisions that affect their lives and equality of opportunity and treatment for all women and men.”

“Decent work sums up the aspirations of people in their working lives. It involves opportunities for work that are productive and deliver a fair income, security in the workplace and social protection for families, better prospects for personal development and social integration, freedom for people to express their concerns, organize and participate in the decisions that affect their lives and equality of opportunity and treatment for all women and men.”

“Decent work sums up the aspirations of people in their working lives. It involves opportunities for work that are productive and deliver a fair income, security in the workplace and social protection for families, better prospects for personal development and social integration, freedom for people to express their concerns, organize and participate in the decisions that affect their lives and equality of opportunity and treatment for all women and men.”

“Decent work sums up the aspirations of people in their working lives. It involves opportunities for work that are productive and deliver a fair income, security in the workplace and social protection for families, better prospects for personal development and social integration, freedom for people to express their concerns, organize and participate in the decisions that affect their lives and equality of opportunity and treatment for all women and men.”

1. Rights at work, in particular the fundamental

principles and rights at work;2. Employment, livelihoods and income;3. Social security and working conditions;4. Social dialogue between governments,

workers and employers

Four Pillars

The Social Economy: many different terms….

Social Economy

Solidarity Economy

Community Economy

Popular Economy

Social and Solidarity Economy

Social Enterprise

Social Economy Enterprises

Third Sector

Non-Profit Sector

recognize the primacy of people

and work over capital

are built on the principles of solidarity, mutuality, reciprocity,

cooperation and proximity

seek to simultaneously achieve social,

societal, economic and environmental

benefits

are based on voluntary

participation, member

empowerment and peoples’

commitment

… but common characteristics

Social Economy entities differ from other forms of enterprisesand social organizations in that they:

Five Families

Cooperatives

Mutual societies

AssociationsFoundations

Social enterprises

Facts and Figures

750.000 cooperative societies with one billion individual member-households and 100 million employees. The 300 largest cooperatives in the world accumulate a combined turnover of 1.1 trillion US-$ per year;

The 141 insurance companies from 70 countries organized in the International Cooperative and Mutual Insurance Federation (ICMIF) collect 7% of the world’s insurance premium (one trillion US-$);

The 40 mutual health insurers organized in the International Association of Mutuality operate in 26 countries and represent 281 million insured households;

248 million out of 360 million citizens of the EU-15 space are members of a Social Economy entity, and the Social Economy contributes 8% to the Union’s GDP.

53,000 credit unions with 188 million members from 100 countries organized in the World Council of Credit Unions are supported and manage 1.5 trillion US-$ in assets. The world’s cooperative banks have assets worth six trillion US-$.

Social economy organizations and enterprises

can create Decent Work; Social economy enterprises and organizations

can make existing work more decent.

Social economy and Decent Work

The Informal Economy in sub-saharan Africa

Share in non-agricultural

employment: 78 %

Share in urban employment:

61%

Share in new job created:

93%

Share in GDP (average):

42%

Decent Work Deficits

Work in the informal economy is often characterized by small or undefined workplaces, unsafe and unhealthy working conditions, low levels of skills and productivity, low or irregular incomes, long working hours and lack of access to information, markets, finance, training and technology.

Work in the informal economy is often characterized by small or undefined workplaces, unsafe and unhealthy working conditions, low levels of skills and productivity, low or irregular incomes, long working hours and lack of access to information, markets, finance, training and technology.

Work in the informal economy is often characterized by small or undefined workplaces, unsafe and unhealthy working conditions, low levels of skills and productivity, low or irregular incomes, long working hours and lack of access to information, markets, finance, training and technology.

Work in the informal economy is often characterized by small or undefined workplaces, unsafe and unhealthy working conditions, low levels of skills and productivity, low or irregular incomes, long working hours and lack of access to information, markets, finance, training and technology.

Work in the informal economy is often characterized by small or undefined workplaces, unsafe and unhealthy working conditions, low levels of skills and productivity, low or irregular incomes, long working hours and lack of access to information, markets, finance, training and technology.

Work in the informal economy is often characterized by small or undefined workplaces, unsafe and unhealthy working conditions, low levels of skills and productivity, low or irregular incomes, long working hours and lack of access to information, markets, finance, training and technology.

Work in the informal economy is often characterized by small or undefined workplaces, unsafe and unhealthy working conditions, low levels of skills and productivity, low or irregular incomes, long working hours and lack of access to information, markets, finance, training and technology.

Informal Economy and Decent Work

“To promote decent work, it is necessary to eliminate the negative aspects of informality while at the same time ensuring that opportunities for livelihood and entrepreneurship are not destroyed, and promoting the protection and incorporation of workers and economic units in the informal economy into the mainstream economy”

Conclusions concerning decent work and the informal economy,

90th Session of the ILC, June 2002

The Social Economy as a Bridge

Between informal and

formal

Between rural and

urban

Between local and

global

Between society and

economy

Between individuals and society

Informal economy

• Rights not protected nor enforced

• Child labour, forced labour, exploitation;

• Inequality and exclusion.

Formal economy

• Labour laws and labour inspection;

• Judicial system;

• Worker representation.

Social Economy

• Voice and representation;

• Channel of communication;

• Organizational platform for inclusion.

The Social Economy and Rights

The Social Economy and Jobs

Informal economy

• Many jobs but of poor quality;

• No job security;

• High competition;

• Low productivity and low incomes.

Formal economy

• Few jobs but of high quality;

• Stable employment with security;

• Satisfactory productivity.

Social Economy

• Economies of scale and scope;

• Diversification, division of labour and innovation;

• Bargaining power of workers and enterprises.

The Social Economy and Protection

Informal economy

• Unprotected, often hazardous work;

• No social protection;

• Poor working conditions;

Formal economy

• Formal social security system;

• Labour inspection;

• Acceptable working conditions.

Social Economy

• Modernizing traditional systems;

• Risk sharing;• Community

care;• Work place

improvement.

The Social Economy and Dialogue

Informal economy

• No voice nor representation;

• No participation in decision-making;

• No dialogue institutions and mechanisms;

Formal economy

• Trade unions and workers’ organizations;

• Employers organizations and chambers;

• Social dialogue laws and institutions.

Social Economy

• Building horizontal networks, vertical structures and national movements;

• Fostering alliances with established organizations;

• Advocacy.

Protection

Opportunity

Empowerment

The Virtuous Triangle