Raphael John-Lall
Having strong labour standards should not be looked at as making business more costly, but can actually make businesses and companies more productive and national economies more competitive, according to president of the Industrial Court, Deborah Thomas-Felix.
She added that adopting international labour standards can make economies more atttractive to Foreign Direct Investment (FDI).
“International labour standards are crucial for promoting fair and decent working conditions globally. Moreover they protect workers’ rights, ensure equitable treatment and establish a framework for economic and social development. All countries and workplaces should embrace these standards some of which have been in place for more than a century. International labour standards have sometimes been perceived as costly and therefore a hinderance to economic development. However, a great body of research has indicated that compliance with international labour standards is often accompanied by an improvement in productivity and economic performance in organisations and countries,” she said.
Thomas-Felix gave the feature address two Tuesdays ago virtually at the Organisation of Commonwealth Caribbean Bar Associations (OCCBA) Lecture Series.
She gave examples of labour standards and how they can boost not only businesses and companies but also economies in general.
“The minimum wage standards serve as a crucial tool for promoting economic fairness by sharing a baseline income for workers. They contribute to reducing income inequality, improve living standards and increased consumer spending thereby stimulating the economy. Additionally, minimum wages can enhance employee motivation and productivity while decreasing reliance on social welfare programmes.”
The next standard she referred to is occupational, health and safety which she said provides several advantages to companies.
“They include workers from workplace hazards. The reduction of workplace accidents, injuries and illnesses improve employee morale and productivity and a decrease in healthcare costs from both employers and society. These standards ensure a safe and healthy working environment and enhance overall employee wellbeing and productivity. They also contribute to long term benefits by minimising absenteeism and turnover and legal and financial consequences associated with workplace incidents.”
Another standard she spoke about is social protection.
“Social protection such as unemployment schemes and active labour market policies can facilitate labour market flexibility. Worktime standards and respect for equality standards can translate into greater satisfaction, improve performance of workers and reduce staff turnover.”
She added that freedom of association and collective bargaining can lead to better labour/management consultation and co-operation thereby improving working conditions, reducing costly labour conflicts and enhancing social stability.
“Freedom of association and collective bargaining also foster better labour relations ensuring that workers have a voice in decisions that affect their workng conditions.”
She also said international labour standards call for the creation of institutions and mechanisms which can enforce labour rights in combination with a set of defined rights and rules and functioning legal systems can help to formalise the economy and create a climate of trust and order which is essential for economic growth and development.
“The beneficial effects of embracing international labour standards are often not unnoticed by foreign investors. Several studies have shown that in their criteria for choosing countries in which to invest, foreign investors look at workforce quality and political and social stability above low labour costs. At the same time, there is little evidence that countries that do not respect labour standards are more competitive in the global economy.”
She said at the basic level, economic development should include the creation of jobs and working conditions in which people can work in conditions of freedom, safety and dignity.
“We should always remind ourselves that economic development undertaken for its own sake must improve the lives of human beings. Therefore international labour standards are there to ensure that like the rest of the world, countries in the region remain focused on improving the lives and dignity of men and women.”
Future of work
Given the rapid changes in the global economy, Thomas-Felix spoke about how she thinks the world of work will evolve in the future.
“If you were to ask what the future of work looks like in 2030 in keeping with the United Nations’ Sustainable Development Goals, I would say that I cannot give a definite answer. This is so because of how very dynamic and volatile the world has become with rapid technological advancements, globalisation and societal shifts. No one could have predicted the Covid-19 pandemic or could we have predicted the war between Russia and the Ukraine and the recent conflict in Israel.”
She analysed the state of the struggling economies of the Caribbean and Latin America post COVID-19 in helping to understand how these factors are shaping the world of work.
“The International Labour Organization’s (ILO) Management Report on Latin America and the Caribbean 2023 noted that this region is undergoing a slow and uneven recovery from the COVID-19 pandemic. Strong inflationary pressures have been observed both in 2022 and 2023 regionally and globally mainly due to rising energy and food prices. These factors have led to higher interest rates and rising inequality. At the same time, the ILO warned that the slow recovery of regional employment rates are accompanied by greater informality and an increase in the number of workers in poverty.”
She also said that migratory flows have impacted on the labour force demographics in the region.
“It is noteworthy that the region in addition to facing the challenges of the transition is also experiencing a major migration crisis.”
She said hundreds of millions of people lack access to paid employment and even when employed many lack access to social protection and fundamental rights at work.
Finally, she said that remote work will be one of the more prominent features of the future of work.
“So, as we look at the future of work, the working landscape is evolving quickly with remote work becoming a prominent change in recent times. As technology keeps advancing and bridging gaps between people, remote work is growing more appealing to both employees and employers. Remote work sometimes referred to as telecommuting or work-from-home, enables employees to carry out their work, their job responsibilities from any location with a stable internet. This flexible work style is becoming more prevalent in the Caribbean and is reshaping how people approach their careers. It has the potential to transform the Caribbean job market creating new avenues for growth and progress.”