ILO report highlights role of social dialogue in achieving economic growth, social justice

A new report from the International Labour Organization (ILO) underscores the importance of social dialogue in balancing economic development with social progress, particularly during transitions to low-carbon economies and the digital era.

Titled The Social Dialogue Report 2024: Peak-level social dialogue for economic development and social progress, the study explores the concept of “peak-level social dialogue” (PLSD). This involves governments, employers, and workers’ organizations engaging in negotiations, consultations, and information exchanges on labor, economic, and social issues at the national or sectoral level.

The report highlights how PLSD promotes decent work, equitable income distribution, and fair transitions to green and digital economies. However, it warns that the effectiveness of PLSD is undermined when socio-economic policies prioritize short-term gains or exclude marginalized groups.

Manuela Tomei, the ILO’s Assistant Director-General for Governance, Rights, and Dialogue, emphasized the need for social dialogue amid global instability. “In a context where technological advances, climate change, and demographic shifts are deeply transforming labor markets, social dialogue remains a credible governance model for navigating complexity, identifying fair solutions, and advancing social justice,” she said.

The report draws on case studies, global data on industrial relations, and a survey of 71 employers’ and workers’ organizations in 38 countries. Among the findings:

National Social Dialogue Institutions (NSDIs) are present in 87 per cent of ILO Member States.
Three-quarters of workers and two-thirds of employers consider these institutions effective, but gaps remain in follow-up actions by governments.

Compliance with fundamental labor rights, including freedom of association and collective bargaining, has declined by 7 per cent between 2015 and 2022 due to increased violations of civil liberties and bargaining rights.

“Countries that uphold these fundamental labor rights are better positioned to unlock PLSD’s transformative potential, reinforcing both social justice and democratic governance,” Tomei added.

The report raises concerns about the inclusiveness of social dialogue institutions, particularly in addressing the needs of women, youth, and workers in the informal economy. It also notes the growing involvement of social partners in policymaking, with examples including:

Over 30 per cent of public employment services involving employers’ and workers’ representatives on management boards.
Tripartite consultation being a key element in 25 per cent of national employment policies.

Social protection reforms in 65 countries extending benefits through collaborative governance.
A Call for Greater Inclusion
The ILO emphasizes the need for governments to strengthen the inclusiveness of social dialogue mechanisms and ensure their outcomes are acted upon effectively. As the world navigates complex challenges, the report concludes that peak-level social dialogue offers a proven framework for achieving equitable and sustainable progress.

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