FINAL REPORT

FINAL REPORT

Declare

• That cooperation project proposals have been prepared under the aegis of the Viña del Mar Plan of Action, which, as applicable, will be submitted for consideration to international technical cooperation agencies and organizations, and may possibly be complemented with other horizontal cooperation activities and projects.

The issues addressed were as follows:

1. The Social Dimension of Integration Processes

Whereas:

With respect to the social dimension of integration processes, it was recognized that these processes move forward propelled in part by unremitting globalization; that all the countries are caught up in those processes and that, despite the opportunities and possibilities they afford, difficulties are also created for the countries’ economies. In order to counteract those difficulties, countries need to adopt strategies that are specific, yet have certain similarities. Given that integration processes are increasingly far-reaching, one possibility is to consider a search for common principles based: 1) on the regional and subregional agreements currently in force in the Hemisphere that could provide guidelines for drawing up a draft declaration by the countries establishing the guiding principles for dealing with the social dimension of integration; the adoption of core labor standards; and procedures for enforcing them; 2) on comparison of labor standards in different countries, taking as a benchmark the principles and fundamental rights of workers established in ILO standards, as well as compliance with the national standards of each country; 3) on support provided by the international technical cooperation community in putting together a common agenda focusing on the issues considered: the impact of globalization on employment; globalization and core labor standards; examination of increasing degrees of harmonization of the principles underlying labor legislation; and globalization and social protection.

An evaluation must be made of the advantages of globalization, as well of existing mechanisms for mitigating its negative effects.

Globalization requires information systems to narrow gaps between supply and demand; for instance, systems able to detect changes in the structure of the demand for labor. Furthermore, ministries of labor should contribute to the creation of such systems, which could improve the way labor markets function. By the same token, it is important to have in place information systems on training opportunities, itemized according to their different modalities and characteristics.

In response to government spending cuts and the need for further increases in efficiency on the part of the State, public investment should seek to reinforce linkages with the private sector, with a view to improving the functioning of labor markets and promoting training schemes, particularly considering the increasing integration of labor markets at the national and regional levels, and the need to attend to the demands of the individual. Equally, agreements must be reached between ministries of labor and representative organizations to address the issues of the informal sector, of eradication of child labor, and of disadvantaged groups, in order to incorporate ethical standards in the process of change underway.

In light of the foregoing,

Whereas

With respect to the issue of transformations in the structure and operation of labor markets, it was pointed out that there are many interpretations of, and different approaches to, flexibility in labor relations, all very closely connected with the processes of countries’ adaptation to and insertion in international markets.

The different definitions and interpretations aside, flexibilization of labor has taken place to various degrees in the region, and, beyond a reduction of labor costs, its effects on productivity and competitiveness are not fully known.

Progress must be made in systems for flexibilizing labor relations that benefit companies and at the same time protect workers. Accordingly, it is necessary, through the labor ministries, to foster consensual collective bargaining mechanisms that can pave the way for agreed and protected systems of flexibility, in the sense of economically and socially acceptable flexibilization that allows companies to be competitive, protects the worker, maintains job quality, and constitutes an incentive for investment in human resources. For that reason ministries of labor must adopt a role that tends toward conciliation and prevention.

This flexibility or flexibilization must not encourage a process of deregulation that foments informality and/or increased precariousness in labor markets but, rather, a process that shifts the responsibility onto the social actors via systems of self-regulation that play an especially important part in collective bargaining.

Furthermore, flexibility should be framed in legislation that can be tailored to the various forms of labor relations that may arise.

In light of the foregoing,

Whereas

The heterogeneity of training systems is a recognized fact and it was proposed that human resources training by the State ought to translate into proposals and approaches that involve and facilitate access for the various stakeholders: companies, workers, social actors, and state.

As to training approaches, an analysis was made of the issue of labor skills and of the respective certification systems. With respect to types of needs, subject matter and contents, it was stated that these must be determined by companies and the market, taking into account overall qualifications, which encompass skills, attitudes, values, and habits.

It was mentioned that, even though certification systems vary from one country to another, it is advisable to know, given the labor mobility generated by integration, who the persons in charge of issuing certificates are.

Recognizing the importance and the merits of the different training approaches and programs that exist in the region, attention was drawn to the impact that a solid primary and secondary school education has on vocational training.

Accordingly, the training issue entails strengthening a whole array of aspects related to quality of apprenticeships, skills development, values, and attitudes, as part of the process of training human resources. Generally speaking, the best approach is to address the human resources issue not just with an eye to production, but to adaptability, to mobility within the market, and also to the solution of problems in society; all of which combine to create paths towards greater social equality and efficiency.

Mention was made of the existence of programs designed for special groups of workers and aimed at equipping them with better tools to deal with the challenges of globalization. It was also stated that it is important to disseminate experiences in this area across the region.

In light of the foregoing, they

Whereas

A review was conducted of the different systems that exist in the countries present for providing support to unemployed workers. Particular emphasis was made of the different modalities of protection, which cover a broad range of well-known forms of assistance to unemployed workers developed by the countries of the region, such as Peru’s severance pay scheme based on length of time worked; Chile’s Unemployed Worker’s Protection System; Uruguay’s Unemployment Insurance scheme; Canada’s Employment Insurance System, and the United States’ Unemployment Insurance System. Some countries intend to prepare or have prepared parliamentary bills for introducing protection systems in different forms.

Differences were acknowledged, such as the fact that in some countries the system is state-run (Canada), while in others it is private (Chile); mention was also made of extensive experience with Brazil’s Length of Service Guarantee Fund. However, important distinctions were revealed, which have yet to be fully evaluated, due to these experiences being relatively recent.

Importance was attached to these systems being simple, administratively inexpensive, and as unbureaucratic as possible; that they be financed by companies and workers, stimulate a rapid search for employment; and provide access to training.

In addition, allusion was also made to other important unemployed workers’ assistance mechanisms, such as retraining programs or job mediation mechanisms stressing personalized advice, vocational guidance, and training for insertion in the productive sector, in relation to which the Mexican and Peruvian experiences were highlighted. It should also be noted that the United States and Canada also report important experiences and have well-developed systems for stimulating employability.

In light of the foregoing, they

Decide

• To convey to Coordination of Group I the various experiences that exist in the region on mediation services, employment seeking, vocational guidance and advice, with a view to their subsequent circulation among the countries.

Other decisions

• To accept the offer of the representative of the United States to formulate a proposal for obtaining funding from technical and financial cooperation organizations in relation to the issues addressed by Working Groups I and II created by the XI Inter-American Conference of Ministers of Labor; such proposal to be submitted by the Pro Tempore Chair for the consideration of the Conference countries.