X Programme and budget for the biennium 2020-21 - ILO

 
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X Programme and budget for the biennium 2020-21 - ILO
X   Programme and budget
    for the biennium
    2020–21
X Programme and budget for the biennium 2020-21 - ILO
International Labour Organization

PROGRAMME AND BUDGET
FOR THE BIENNIUM
2020–21

International Labour Office Geneva
X Programme and budget for the biennium 2020-21 - ILO
ISBN 978-92-2-0318508 (print)
ISBN 978-92-2-0318515 (Web pdf)

First edition 2020

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X Programme and budget for the biennium 2020-21 - ILO
Preface

Preface
      The programme proposals for 2020–21 that        continuity, too. The roles of tripartism and of
I now have the honour to present come as the          international labour standards remain central to
last step in the exceptional process agreed by        all areas of activity; there has been no let-up in
the Governing Body in this, the ILO’s Centenary       the search for efficiency, quality and
year. The idea has been to provide the                accountability; and the commitment to the
maximum opportunity for the ILO’s constituents        delivery of the 2030 Agenda for Sustainable
to set the direction of the ILO’s activities in the   Development in the reformed UN system
years ahead on the basis of the outcome of the        remains as strong as ever. It is also true that
Centenary Initiative on the Future of Work,           what is proposed for the next two years can only
which culminated with the adoption of a               be the first steps of longer-term action by the
Declaration by the International Labour               ILO to respond to the ambitions of the
Conference in June.                                   Centenary Declaration.
       There is a widely held view among                   At the same time, the Office will be
constituents that the ILO’s Centenary has given       preparing proposals aimed at promoting greater
the Organization high visibility, strong political    coherence within the multilateral system, as
support and increased momentum, which leave           called for in the resolution on the Centenary
it well equipped to confront the opportunities and    Declaration. Other issues highlighted in that
challenges of transformational change at work.        resolution, namely, proposals for including safe
But it remains for the Organization to capitalize     and healthy working conditions in the ILO’s
on these favourable circumstances, and the            framework of fundamental principles and rights
adoption and implementation of a programme of         at work, and the democratization of the
work that addresses the key issues thrown up by       functioning and composition of the governing
our intensive debate on the future of work is the     bodies of the ILO, are being dealt with at the
first, crucial step.                                  current session and at the 338th Session of the
                                                      Governing Body respectively.
      This is why the proposals before the
Governing Body take the Centenary Declaration               It has been enormously encouraging over
for the Future of Work as their essential point of    the past months for the ILO to have received
reference. These proposals provide a focused          such strong recognition of the importance and
approach to addressing the processes of               relevance of its mandate and activities. We have
change that are shaping the future of work so         been told to hold fast to our historic mandate for
that they move decisively in the direction of         social justice and to apply it creatively and
social justice and generate opportunities for         effectively to the key issues of the moment. The
decent work for all.                                  proposals that are presented are designed to do
                                                      just that, and I commend them to the Governing
    There is much that is new in these
                                                      Body for adoption.
proposals, as compared with the programmes of
past biennia, but there are elements of

                                                                               Guy Ryder
                                                                               Director-General

                                                                                               iii
X Programme and budget for the biennium 2020-21 - ILO
Contents

Contents
                                                                                                                                                 Page

Preface ..................................................................................................................................         iii
Abbreviations .......................................................................................................................              vii
Adoption of the budget for 2020–21 ..................................................................................                              ix
Explanatory note..................................................................................................................                 xi
The Director-General’s response to the Governing Body’s discussion ........................                                                       xiii
      335th Session (March 2019) .........................................................................................                        xiii
      337th Session (October–November 2019) ....................................................................                                  xvii
Executive overview..............................................................................................................                    1
Policy outcomes ..................................................................................................................                11
        Outcome 1: Strong tripartite constituents and influential and inclusive social
        dialogue..................................................................................................................                11
        Outcome 2: International labour standards and authoritative and effective
        supervision .............................................................................................................                 16
        Outcome 3: Economic, social and environmental transitions for full, productive
        and freely chosen employment and decent work for all ............................................                                         19
        Outcome 4: Sustainable enterprises as generators of employment and
        promoters of innovation and decent work ...............................................................                                   24
        Outcome 5: Skills and lifelong learning to facilitate access to and transitions
        in the labour market ................................................................................................                     28
        Outcome 6: Gender equality and equal opportunities and treatment for all
        in the world of work.................................................................................................                     32
        Outcome 7: Adequate and effective protection at work for all ................................                                             37
        Outcome 8: Comprehensive and sustainable social protection for all ....................                                                   43
An overview of regional contexts ......................................................................................                           49
      Africa ............................................................................................................................         49
      Arab States ...................................................................................................................             50
      Asia and the Pacific ......................................................................................................                 50
      Europe and Central Asia ...............................................................................................                     51
      Latin America and the Caribbean ..................................................................................                          51
Research, statistics and capacity development ...............................................................                                     53
      Research and statistics .................................................................................................                   53
            Overarching strategies............................................................................................                    53
            Priority areas ..........................................................................................................             53
            Knowledge support and dissemination mechanisms ...............................................                                        54
Capacity development in partnership with the Turin Centre...........................................                                              55

                                                                                                                                             v
X Programme and budget for the biennium 2020-21 - ILO
Programme and Budget for the biennium 2020–21

                                                                                                                                  Page

Enabling outcomes .............................................................................................................    57
       Outcome A: Authoritative knowledge and high-impact partnerships
       for promoting decent work ......................................................................................            57
       Outcome B: Effective and efficient governance of the Organization ......................                                    60
       Outcome C: Efficient support services and effective use of ILO resources ............                                       61
Appendices
I.   Results framework for 2020–21 ......................................................................................          65
II. Summary of relationships between the SDG targets and the outcomes
    of the programme of work for 2020–21 ...........................................................................               78
Information annexes
1. Operational budget .........................................................................................................    83
2. Summary of regular budget technical cooperation resources .........................................                             86

       vi
X Programme and budget for the biennium 2020-21 - ILO
Abbreviations

Abbreviations

     EBMOs      employer and business membership organizations
     DWCP       Decent Work Country Programme
     EESE       Enabling Environment for Sustainable Enterprises
     GCC        Gulf Cooperation Council
     ILOSTAT    ILO database on labour statistics
     IPSAS      International Public Sector Accounting Standards
     IRIS       Integrated Resource Information System
     IT         information technology
     OECD       Organisation for Economic Co-operation and Development
     OSH        occupational safety and health
     RBSA       Regular Budget Supplementary Account
     RBTC       Regular Budget Technical Cooperation
     SDG        Sustainable Development Goal
     SMEs       small and medium-sized enterprises
     UN         United Nations
     UNFCCC     United Nations Framework Convention on Climate Change
     UNICEF     United Nations Children’s Fund
     WHO        World Health Organization

                                                                     vii
X Programme and budget for the biennium 2020-21 - ILO
Adoption of the budget for 2020–21

Adoption of the budget for 2020–21
      The    General     Conference      of   the                         Swiss francs, shall be allocated among
International Labour Organization at its                                  member States in accordance with the scale
108th Session (10–21 June 2019) adopted by                                of contributions recommended by the
328 votes in favour, with 9 votes against and                             Finance    Committee    of   Government
1 abstention, the following resolution, submitted                         Representatives;
by the Finance Committee of Government
                                                                     (b) requests the Director-General to present for
Representatives:
                                                                         examination and adoption by the Governing
(a) in virtue of the Financial Regulations, adopts                       Body at its 337th Session (October–
    for the 77th financial period, ending                                November 2019) complementary information
    31 December        2021,    the   budget    of                       pertaining to the results framework
    expenditure for the International Labour                             comprising outcomes, indicators, baselines
    Organization amounting to US$790,640,000                             and targets for the biennium, reflecting the
    and the budget of income amounting to                                relevant outcomes of the 108th Session
    US$790,640,000 which, at the budget rate of                          (June 2019) of the International Labour
    exchange of CHF1.00 to the US dollar,                                Conference.
    amounts to CHF790,640,000, and resolves
                                                                         The following table shows the budget as
    that the budget of income, denominated in
                                                                     adopted by the Conference:

Expenditure                                                 Income
                                   2018–19       2020–21                                     2018–19                     2020–21
                                    budget      estimates                                     budget                    estimates
                                       US$           US$                           US$          CHF            US$          CHF

Part I
    Ordinary budget             779 816 986   774 238 406 Contributions     784 120 000   760 596 400   790 640 000   790 640 000
                                                          from member
                                                          States
Part II
    Unforeseen expenditure          875 000       875 000
Part III
    Working Capital Fund                 –             –
Part IV
    Institutional investments     3 428 014    15 526 594
    and extraordinary items
Total budget                    784 120 000   790 640 000                  784 120 000 760 596 400 790 640 000 790 640 000

                                                                                                                       ix
Explanatory note

Explanatory note
      At its 335th Session (March 2019), the      programme of work and results framework for
Governing Body considered the Director-           2020–21, which is guided by the ILO Centenary
General’s Programme and Budget proposals for      Declaration for the Future of Work adopted by
2020–21. Following the Governing Body’s           the International Labour Conference in June
debate, a revised set of budget proposals was     2019.
presented by the Director-General, which the
                                                        This document includes the programme of
Governing Body approved, pending the
                                                  work and results framework for 2020–21
submission of the final programme proposals at
                                                  approved by the Governing Body in October–
its subsequent session, reflecting the relevant
                                                  November 2019. It incorporates specific
outcomes of the 108th Session (June 2019) of
                                                  changes to the budget resulting from the
the International Labour Conference.
                                                  discussion of the proposals in the Governing
    At its 337th Session (October–November        Body in March 2019, and as adopted by the
2019), the Governing Body approved the            International Labour Conference.

                                                                                        xi
The Director-General’s response to the Governing Body’s discussion

The Director-General’s response
to the Governing Body’s discussion

 335th Session (March 2019)

      For the first time in the period I have served            with great attention to what you had to say to us.
as Director-General, it is my task to reply to the              As a consequence, I will focus my reply on the
debate that took place last week on my                          five areas of institutional investment that I
Programme and Budget proposals for 2020–21,                     originally proposed – totalling US$31.7 million –
by presenting to you, as I do now, a revision to                and how they may be adjusted now in the light
the real level of those proposals.                              of careful consideration of your comments with a
                                                                view to finding consensus on a programme and
      It is worth recalling at the outset that on the
                                                                budget which this Governing Body can
previous three occasions that it engaged in this
                                                                recommend to the Centenary Conference in
exercise, the Governing Body was in a position
                                                                June.
to adopt the original proposals without any
revision to the level of the budget, which was                        Before turning to those matters, let us also
consistently set at the level of zero real growth.              remember that the modified procedure for the
                                                                adoption of the programme and budget means
     This experience demonstrates two things.
                                                                that it will still remain for decisions to be made
     The first is that the Office has consistently              on substantive programme content next
shown realism and restraint in the programme                    November in the light of the outcome of the
and budget proposals it has made. It has shown                  Future of Work Centenary Initiative agreed at
real    consideration      for    the    financial              the Conference. In the programme and budget
circumstances of its member States, has not                     debate last week you gave us some guidance in
made any attempt to seek increases in the                       that regard, including on the extent and balance
volume of programme activities by simply asking                 of continuity and change to be expected, while
them for a greater financial effort, and has                    discussion on several other items on our agenda
understood that if it wants to do more for its                  foreshadowed, without prejudging, a number of
constituents – and we do – then it must be                      specific issues which we will no doubt return to
through funding generated by efficiency savings                 in November. We have been able to respect fully
and the mobilization of extrabudgetary                          our obligations under the Financial Regulations
resources. And this, of course, goes hand in                    while addressing the questions before us in a
hand with our duty and commitment to give                       coherent and meaningful way; which is to say
more value for money – to use the resources                     that we have made this modified procedure work
that you put at our disposal to the very best                   as intended.
effect.
                                                                      This said, a considerable amount of work
      The second is that the departure from the                 remains before us from here until November and
practice of the last six years, with the inclusion              it will need to be accomplished under great
of a series of institutional investments that would             pressure of time. Close consultation with
mean an increase in the real budget, is not the                 constituents will be a key to its successful
result of any abandonment of this approach of                   completion and I want to assure the Governing
budgetary rigour, nor of any random initiative in               Body that the Office is fully committed to it.
the face of admittedly growing demands – and
                                                                     That applies equally to the full elaboration
opportunities – facing the Organization. Rather,
                                                                of the improved results framework which the
it is a considered and rational response to
                                                                Governing Body has expressed support for and
circumstances facing the Organization and
                                                                offered important guidance on. You have
which demand of it, unavoidably, a number of
                                                                stressed the need for a full and balanced
actions which are required to sustain its
                                                                approach to the ILO’s four strategic objectives,
operational capacities at a prudent and
                                                                the importance of integrating the ILO’s
acceptable level.
                                                                contribution to delivering the 2030 Agenda for
     These were the issues which stood at the                   Sustainable Development, and alignment with
heart of our debate last week, and we listened                  the ILO’s Strategic Plan for 2018–21 and the

                                                                                                               xiii
Programme and Budget for the biennium 2020–21

2008 ILO Declaration on Social Justice for a Fair       us to prioritize further the expenditures proposed
Globalization. My colleagues will initiate              and we have done so, so that what is left
consultations with constituents as soon as              corresponds only to the most critical needs of
possible after this Governing Body session, with        the next biennium.
a view to publication of a final draft of a new
                                                              Concretely, I now propose to postpone
results framework in September.
                                                        investment in the items on electronic records
      Let me then turn to the question of               management,        and     on     mobile   device
institutional investments that were contained in        management, which are set out in detail in
my original proposals. Last Monday I said in my         paragraphs 174–179 right at the end of the
presentation that these investments were                programme and budget proposals. Additionally, I
required, “to meet pressing organizational needs        now propose to defer replacement of the ILO
which, if unattended, would significantly damage        intranet. Taken together, this would represent a
vital operational capacities”. I have to reiterate      reduction of US$5.3 million in the originally
that reality at the same time as I must                 proposed investment. But the Governing Body
acknowledge the difficulties expressed by many          should be aware that it also represents a clear
Governments in assuming the financial burden            constraint on the operational efficiency of the
of these investments as put to them. My clear           Office; we will have to maintain paper-based
reading of our debates was that while the need          storage; knowledge sharing will be hindered;
for investments in the five areas concerned was         staff remote access to ILO systems will be
well understood, there was a strong body of             limited; intranet software will be unsupported by
opinion that these investments should be                the end of the biennium, multiple formats of
stripped back to their minimum essentials and           intranet will persist and delivery of the Office
where possible made over a longer period of             communications plan will be jeopardized.
time, and that the Office needed to revisit the         Furthermore, some Business Process Review
means of their financing, with a particular view to     recommendations will not be able to be acted
an increased effort by it to reprioritize spending      upon.
within existing regular budget levels.
                                                              The third issue is security where an
      It is on this basis that I now present the        investment of US$10 million was proposed in
following adjustments to the proposed                   the coming biennium as the first phase of a
institutional investments. They are reflected in a      US$25 million programme to ensure full
document which will be made available to you            compliance with United Nations Minimum
along with the text of this statement in the official   Operating Security Standards. Many of you,
languages, immediately after the conclusion of          while recognizing the obligation to assure
my remarks.                                             adequate security of staff, constituents and
                                                        visitors, questioned whether some aspects of
     For clarity I will take each area of
                                                        the proposed enhancement were required and
investment individually.
                                                        whether expenditure at this level was absolutely
      The first area of investment is in respect of     necessary, and urged the Office to explore less
the Building and Accommodation Fund where an            costly options.
increase of US$3.8 million was proposed in
                                                             We have done that – and indeed the
order to meet the terms of the strategy agreed
                                                        Governing Body has also begun a separate
by the Governing Body in 2011 to make an
                                                        debate on these very matters in the context of
annual provision of 1 per cent of the insurance
                                                        the renovation of this building. The upshot is that
value of the ILO-owned buildings for their future
                                                        there are essentially two options before us.
refurbishment and renovation. While this
                                                        Either the “two ring” approach, involving
provision is in line with industry best practice I
                                                        securing the full perimeter of the ILO’s grounds
am constrained to propose that the increase
                                                        as well as the building itself, as I have proposed.
originally proposed be halved. That means that
                                                        Or the “one ring” approach, involving investment
instead of moving to the 1 per cent target from
                                                        in securing only the building itself. There really
the current level of approximately 0.5 per cent
                                                        are no sensible intermediary options.
we would arrive at some 0.75 per cent. By so
doing, the originally proposed institutional                 In the light of your deliberations, I see no
investment would be reduced by US$1,885,000.            option but now to propose measures focused on
                                                        the latter. That means we will not be able to
    The second area is information technology
                                                        meet fully United Nations standards for our –
where I had proposed an investment of
                                                        your – security. But improvements can be
US$12.2 million, all of which, I would stress,
                                                        effected by an investment of US$3.5 million plus
would serve to finance the Information
                                                        funding from existing sources, as detailed in
Technology Strategy 2018–21, which the
                                                        document GB.335/PFA/3, and the establishment
Governing Body agreed in 2017. You have told

     xiv
The Director-General’s response to the Governing Body’s discussion

of an access point for visitors located outside the                   To respond to that call, I now propose that
main building.                                                  of the remaining US$16.9 million of investments,
                                                                US$4.6 million be met from within the existing
      There are two unfortunate side effects of
                                                                level of the regular budget, corresponding to the
this course of action. Firstly, abandonment of the
                                                                sum needed to cover the specific increased
comprehensive option would require a new
                                                                costs of the United Nations Resident
round of negotiations with the host Government
                                                                Coordinator system.
which had offered financial support for it to see
what assistance might still be forthcoming from                       Governments have said clearly and firmly
it. And secondly, if at a later stage we were in a              that, in line with decisions already taken in New
position to implement a more comprehensive                      York, they are not prepared to meet this
security solution, then the investment I am now                 expenditure through an increase in assessed
putting to you would become largely redundant.                  contributions, and hence through any increase in
                                                                the ILO’s regular budget. I would recall that, in
      Fourth, I come to the unforeseen
                                                                this house, decisions have already been taken
expenditure item where I had proposed an
                                                                whereby the ILO will assume its responsibilities
increased allocation to bring the programmed
                                                                in contributing to the system, and those
provision closer to the real levels of such
                                                                decisions should not be revisited. By its nature,
expenditure in recent biennia. I now propose to
                                                                this item does not offer any option of being
leave the proposed allocation at its current level
                                                                deferred or spread over a longer period of time.
of US$875,000 instead of the US$2 million I had
                                                                Accordingly, I now propose that this item of
proposed. The fact is that, in all probability, this
                                                                expenditure be financed within Part I of the
provision will be inadequate – unless of course
                                                                regular budget, and the proposed institutional
the Governing Body exercises greater restraint
                                                                investment be eliminated.
than it has previously in the past. In any case, I
do think it incumbent on us all to be much more                       This would involve:
rigorous than we have at the time of incurring
                                                                ■    the use of US$940,800 previously proposed
new items of spending in identifying what the
                                                                     for redeployment towards policy outcomes.
implications are for other areas of spending.
                                                                     Nevertheless, I maintain my proposed
There are no free lunches.
                                                                     strengthening of the Internal Audit and
     The overall budgetary consequences of                           Investigation function by some US$370,000;
these revisions are such that the real increase in
                                                                ■    a further reduction of some 1 per cent in the
the budget, including institutional investments,
                                                                     Management item of the Strategic Budget, in
would be some US$16.9 million as opposed to
                                                                     addition to the considerable savings already
the US$31.7 million originally presented – a
                                                                     made there. My colleagues will be instructed
reduction of some US$14.8 million.
                                                                     to identify those further economies,
       While the revisions are a genuine attempt                     amounting to US$500,000, without impacting
to respond to what we believe the Governing                          negatively     essential    oversight    and
Body would consider an acceptable budget                             accountability functions; and finally,
level, they are above all the result of a strenuous
                                                                ■    a reduction of US$3.1 million in the funding
effort to distinguish those investments that are
                                                                     currently earmarked for policy outcomes,
absolutely essential to vital functions of the ILO
                                                                     representing one half of 1 per cent of the
and which must be maintained, and those which
                                                                     total of that allocation. In line with the
– while impacting significantly the life of our
                                                                     modified procedure we are applying, the
Organization – would not, by their absence, be
                                                                     exact content of this reduction will need to
life-threatening.
                                                                     be decided in November.
      The subsequent question is how the
                                                                      In this context, I would additionally recall
remaining, essential, investments can be
                                                                that reference was made last week to the
financed. Last week, I recalled the efforts made
                                                                possibility of applying equitable cost recovery to
by the Office over past biennia to redeploy
                                                                include extrabudgetary-funded activities so as to
resources from backroom to frontline services
                                                                meet some of our investment costs. The Office
and to invest in areas relevant to our current
                                                                is currently reviewing its practices in this respect
discussion, and I put it to the Governing Body
                                                                so as to ensure that such activities do not
that this reflected a significant record of effort
                                                                constitute a financial liability on member States.
and achievement; I reiterate that these efforts
                                                                This is a requirement of our Financial
will continue. Your recognition of that record was
                                                                Regulations and any issue identified will be
accompanied by a renewed call on the Office to
                                                                addressed to guarantee equitable cost sharing.
make further efforts at redeployment to meet in
                                                                Nevertheless, at this time we are not in a
part    the    remaining,    critical   institutional
                                                                position to introduce this measure in our budget
investment needs.
                                                                decision-making.
                                                                                                               xv
Programme and Budget for the biennium 2020–21

      These revised proposals which reduce               I very much hope that the Governing Body
substantially, and to their critical minimum, the   will see in these revisions a satisfactory
institutional investments to be made in 2020–21,    response to last week’s debate and a basis for
and which include a further requirement on the      consensus on a draft programme and budget of
Office to redeploy funds to cover a significant     US$804.1 million to be recommended to the
proportion of the costs of that investment, would   Centenary Session of the International Labour
reduce the real budget increase requested of        Conference for adoption.
Governments to US$12.3 million, equivalent to
                                                        Thank you.
1.57 per cent.

     xvi
The Director-General’s response to the Governing Body’s discussion

 337th Session (October–November 2019)

     It is now my task to respond to last week’s                      The first is that they improperly include
debate on the proposals for the ILO’s                           issues which should not be there at all, simply
Programme of Work for 2020–21, as presented                     because there is no reference to them in the
by me in document GB.337/PFA/1/1. That task                     Centenary Declaration. To quote the Employer
is greatly facilitated, Mr President, by your own               spokesperson, “The Programme and Budget
summary of the discussion last Tuesday, when                    has no place for issues not referenced in the
you noted that there was general support in the                 Declaration, such as, for example, multinational
Governing Body for the proposals. Indeed, the                   enterprises” (MNEs). And he went on to argue
record shows explicitly that all Government                     that this ran the risk of diluting the focus and the
groups and the Workers’ group were ready then                   value added of what we proposed to do.
to support the draft decision, and with it the
                                                                      This point is important, because we are
programme of work and the results framework
                                                                indeed searching for better focus, prioritization
presented.
                                                                and impact, and we see the Declaration as an
      Nevertheless, there were strong objections                instrument for this. But as I said in my
from the Employers’ group, both to the content                  introduction, the proposed programme of work is
of that programme and to the manner of its                      – and, I believe, should be – a judicious
preparation, and there were a considerable                      combination of change and continuity, because
number of comments and questions from others                    there are things that the ILO has always done
concerning resource allocations, budgetary                      and must continue to do.
processes and the results framework, and these
                                                                      This search for balance can lead us to
all require responses.
                                                                “conundrums”, to use an expression much used
     So let me address a number of issues now,                  last week, and these conundrums can be
and then pass the floor, with your permission,                  challenging. Indeed, having argued on Monday
Chair, to my colleagues, Deputy Director-                       that MNEs had no place in the programme, we
General Mr Greg Vines, and the Director of                      heard the Employers’ group stating, with no less
PROGRAM, Mr Mohui Jiang, who will address                       eloquence, last Thursday precisely what the ILO
some of the more specific matters that were                     should be doing in respect of MNEs. And we
raised.                                                         have still to get to the question of global supply
                                                                chains. The point I make here is that when we
      My first point, and I think it is the essential
                                                                look a little bit more closely at the issues
one, is that the crucial requirement of the
                                                                involved, these conundrums do not really lend
programme for the next two years is that it
                                                                themselves to hard and fast binary solutions. I
faithfully translate and operationalize the content
                                                                trust, therefore, that the Governing Body will
of the Centenary Declaration, the value of which,
                                                                recognize that what is proposed in respect of
I note, is embraced with increased enthusiasm
                                                                multinational enterprises – which, by the way,
by all constituents.
                                                                are manifesting increasing interest in the work of
      I think it is recognized by everybody that                the ILO – results from a balanced appreciation
this operationalization of the Declaration will,                of our responsibilities, rather than any
inevitably, be the work of more than just one                   “ideological fascination” which the Employer
biennium. But we do need to get off now on the                  spokesperson attributed to the Office.
right foot, and, with the exception that I have
                                                                      The second objection relates to the
already referred to, it is clear from last week’s
                                                                distribution of resources among the different
debate that the proposed set of eight policy
                                                                policy outcomes, because concerns were
outcomes provides, to the satisfaction of this
                                                                expressed that there is too much unevenness
Governing Body, that required direction. They
                                                                between them. But in fact, we have made
are recognized as a faithful translation of the
                                                                particular efforts to invest regular budget
Declaration into action. That is what matters,
                                                                resources in those outcomes at the bottom end
above all else, and for this reason, I do not
                                                                of the resource scale. I mentioned this in respect
propose any modification to these eight
                                                                of outcome 5 on skills and outcome 6 on gender,
outcomes, and no additions to them.
                                                                in my initial introduction. The result of those
    This requires me to address more precisely                  efforts is that this programme would represent
two objections that were raised in respect of                   more equity between outcomes than there is
them.                                                           now or that there has been in the past. Although
                                                                clearly outcome 1 on strong tripartite

                                                                                                              xvii
Programme and Budget for the biennium 2020–21

constituents stands ahead of the rest in terms of   light on the direction of travel that our
resource allocations, I cannot see support for      Organization has been pursuing, in fact for
transferring resources from it to the benefit of    several biennia now.
others. I again revert to the point that this
                                                           Because the programme and budget
biennium should be considered the beginning of
                                                    approval process we have been undertaking this
a process, and that resource allocations are
                                                    year is in fact the latest step in a long journey,
likely to evolve accordingly over time.
                                                    initiated by my predecessor under the guidance
      When it comes to extrabudgetary               and direction of the Governing Body, to have the
resources, where greater unevenness still in        ILO budget presentation reflect emerging best
estimated receipts is evident, I do have to make    practice. Strategic budgeting was introduced as
the obvious point that the Office is not in a       a first step towards full results-based budgeting,
position to decide alone the purpose for which      and eventually results-based management,
funds are made available by our development         which is recognized as best practice in the
partners. Nevertheless, we will exert our best      public sector and is prevalent now across the
efforts in resource mobilization to meet funding    UN system.
shortfalls, and the Governing Body will have the
                                                         We know we have not got there yet, but we
opportunity to return to this when we discuss the
                                                    have come a long way, and I believe we must
ILO development cooperation strategy at our
                                                    persist. So the many offers from Government
next Governing Body meeting. There is, in any
                                                    members in particular of this Governing Body to
case, good reason to hope – and this is a
                                                    work with us and assist us in further
positive point – that the momentum created by
                                                    improvements are indeed very welcome. Your
the Centenary Declaration for emerging priorities
                                                    comments and advice have been well noted and
will help us move forward in these regards.
                                                    we will soon have the opportunity to advance
      A further objection which I must address      further when we start the programme and
was raised, again by the Employers’ group, in       budget process for 2022–23 in just a few
relation to process rather than substance. It was   months. It is encouraging that past progress has
said that the preparation of the proposed           been recognized regularly, and our assurance to
programme was not a consultative process, and       you is of our continuing commitment to strive to
that its content suffered as a consequence. So      meet fully your governance expectations of us.
let me place the facts before the Governing
                                                          It is in this context that the Governing Body
Body.
                                                    – rightly, I think – focuses its review and its
     Informal consultations were initiated with     guidance on strategies and governance matters,
the group secretariats on 28 June – one week        attributing to the Office its responsibility to
after the end of the International Labour           implement and to operationalize your strategic
Conference – on the possible scope of policy        decisions. My colleagues and I do this through
outcomes. A round of formal consultations with      the allocation of approved strategic budget
the three groups followed, from 15 to 17 July.      resources to the operational levels of outputs
Then, on 1 August, a summary of draft policy        and organizational units. Subsequently, our
outcomes was sent for comment. Further              implementation performance is reported to you
informal consultations with the groups on the       at the end of each biennium in the programme
summary were organized from 2 to 6 August.          implementation report.
And upon the publication of the proposed
                                                          I was encouraged to hear many
programme of work on 16 September, a further
                                                    interventions last week which, directly or
informal round was organized for 8 October. I
                                                    indirectly, recognize this appropriate separation
am sorry to load all of these dates upon you, but
                                                    of complementary roles, as well as the
the point is that whatever shortcomings the
                                                    improvements being made. I want to say that I
proposals may contain, they are not for want of
                                                    think that it is important that we continue to
consultation. This was an intensive process of
                                                    respect this separation as the basis of good
preparation, with intensive consultation and with
                                                    governance and accountability. I would like to
equal opportunities for all. It was sincerely
                                                    assure the Governing Body once again that the
undertaken and I think it was fruitful.
                                                    specific guidance and suggestions that have
      Before moving on to some more specific        been offered will help us greatly as we
points of substance, allow me to address some       implement the proposed programme of work.
issues concerning the budgetary process behind
                                                          The Governing Body will be aware that the
the proposed programme, in the light of some of
                                                    budget adopted by the Conference in June is
the comments that were made on the
                                                    fully consistent with this strategic approach.
relationship between the strategic and the
                                                    Moreover, the new results framework with its
operational budgets in particular. Here, perhaps,
                                                    three tiers of planning with indicators to track
some longer-term perspectives can help to cast

    xviii
The Director-General’s response to the Governing Body’s discussion

progress, embodying a theory of change,                       contributions to the UN resident coordinator
constitutes a step change in accountability of the            system, and that these activities would remain
Office to the constituents.                                   self-standing within whatever new format was to
                                                              be adopted and that they would not be
      It responds as well to a whole series of past
                                                              “mainstreamed”. These assurances were given
decisions and guidance: the 2016 Conference
                                                              and they have been honoured in my proposals.
resolution on Advancing Social Justice through
Decent Work, for example, and successive                            Certainly, there is no argument in respect
External Auditors’ reports – the Multilateral                 of resource volume, I think – although the
Organisation Performance Assessment Network                   Employer spokesperson has subsequently
(MOPAN) Institutional Assessment Report                       asked not only that the resources concerned be
among them. So it is surely right, is it not, that            protected, but that they actually be increased.
we press forward along the path that we have                  But my understanding is that, notwithstanding
decided upon, and not take the type of U-turn                 what is clearly said in output 1.1, it continues to
that would take us away from best practice and                be felt that its location in the broader outcome 1
back towards some of the shortcomings of the                  is evidence of a deal broken, and a promise not
past.                                                         kept.
      This said, and in order to promote the                        Frankly, this is puzzling, in the sense that
fullest sharing of knowledge, an information note             separating output 1.1 as a separate outcome, for
has been distributed in the room just now, and it             example, would have no material effect that I, or
addresses further the link between strategic and              indeed the Employers’ group, have been able to
operational budgeting.                                        identify. It has been argued that outcome 1 as
                                                              proposed would create confusion, and if the
      At this point, Mr Chair, I would like to ask
                                                              reference there is to ILO staff, then I can provide
our Deputy Director-General, Mr Vines, and the
                                                              the necessary reassurance. It has also been
Director of PROGRAM, Mr Jiang, to take the
                                                              argued that it would relegate the role of
floor briefly to respond on some specific points
                                                              employers’ organizations solely to that of a
and questions which were posed by members of
                                                              partner in social dialogue and nothing more. And
the Governing Body last week, and also to
                                                              yet, that is not at all what is said in output 1.1,
introduce the information note. Following that, I
                                                              nor in outcome 1. Certainly these concerns have
will myself make some further comments. With
                                                              not been echoed by the Workers’ group, which
your permission, Sir.
                                                              might be considered, objectively, to share the
     [Statements by Mr Vines and Mr Jiang]                    same interests. Nevertheless, the Workers did
      Following those very comprehensive                      highlight one point with regard to outcome 1,
explanations, let me move towards a conclusion                where they highlighted that language used in
                                                              outputs 1.2 and 1.4 and an accompanying
with just a few more comments on a number of
                                                              indicator appear to conflate collective bargaining
matters concerning some specific policy
                                                              with social dialogue and other forms of
outcomes.
                                                              workplace cooperation. As my colleague
      I will start with proposed outcome 1, which             Mr Jiang has recognized, it has to be made clear
is all about strong tripartite constituents and               that collective bargaining should be properly
influential and inclusive social dialogue, to which           distinguished as a fundamental right, and
more resources are allocated than any other,                  treated accordingly. In similar terms, I would
and for good reason, because its critical                     agree with the Workers that it is the basic
importance is, I think, recognized by us all. Here,           requirement of labour legislation that it secure
the objection, voiced with some force by the                  full respect of all fundamental principles and
Employers, is that putting together outputs for               rights at work, and that this purpose cannot be
workers and for employers, for labour                         qualified in any way by other considerations. Let
administration and for social dialogue in one                 me say unequivocally that this is the principle
outcome is inappropriate and contrary to                      that will guide all relevant ILO technical work.
undertakings previously given.
                                                                    Finally, let me come back to two major
      I want to put it to you that neither                    thematic areas which were the subject of
contention actually stands up to reasonable                   considerable comment, namely skills and
examination. During the Conference, and prior                 lifelong learning, which is taken up in outcome 5,
to approval of the 2020–21 budget, or indeed                  and the issue of productivity, which, while
the approval of the Centenary Declaration, the                closely linked to outcome 4, has broader
Employers did seek assurances from me that                    implications.
employers’ activities would not be adversely
                                                                   On the former, there was strong support for
affected by the savings that we were obliged to
                                                              the establishment of this new outcome across
identify in the Policy Portfolio to cover increased

                                                                                                             xix
Programme and Budget for the biennium 2020–21

the Governing Body, but I did detect some             Declaration. Clearly these are not concerns
frustration that the level of resources devoted to    exclusive to any one group.
it, and the levels of ambition in the relevant
                                                           Having thought a bit about the questions
indicators, were not higher. In that regard, let me
                                                      involved – and I think there are many of them
acknowledge the great importance attributed to
                                                      and that they are complex – I do think it is
skills and lifelong learning in the Declaration,
                                                      necessary for a deeper consideration of the role
and the need for the ILO to progressively
                                                      of the ILO in respect of productivity – what we
develop further its activities – quantitatively as
                                                      should be doing, and what we should not be
well as qualitatively – as we go forward. This
                                                      doing – so that our distinctive role is properly
biennium, again, is a beginning.
                                                      circumscribed and elaborated within the
      In this regard, let me note the decision        parameters of the ILO’s mandate.
which the Governing Body has just taken to
                                                           For this reason, let me give the Governing
place a general discussion item on skills and
                                                      Body early notice that I will devote my own
lifelong learning on the agenda of next year’s
                                                      report, the Director-General’s Report to the next
session of the Conference. It seems to me that
                                                      session of the Conference – one of the few
this provides an ideal and early opportunity to
                                                      things I get to decide by myself – to the issue of
move quickly and decisively in the direction that
                                                      productivity and decent work. I think that by
we want. And let us not forget that this will be
                                                      addressing issues of strategic importance to the
followed up in 2021 by the first year of the
                                                      ILO in a timely manner, these reports have
standard-setting item on apprenticeships. These
                                                      demonstrated their worth in recent years and
are important signposts for the way forward, and
                                                      helped to move the Organization in helpful
indicate that the strategic approach to
                                                      directions. I hope we can keep up this practice
Conference agenda-setting is yielding its
                                                      with the issue of productivity next year at the
benefits.
                                                      Conference.
       Finally, I have been most attentive,
                                                             On the basis of these comprehensive
Mr President, to what has been said in respect
                                                      responses – I think you will agree – and the
of productivity. The Employers’ group has made
                                                      clarifications provided, I trust that the Governing
clear that this is a “huge priority” for it and has
                                                      Body will now be in a position to approve the
called for a “comprehensive strategy” to address
                                                      programme of work that has been proposed.
it, in the light of what is said in the Centenary
                                                           Thank you for your attention.

      xx
Executive overview

Executive overview

    Introduction

1. The ILO’s Programme of Work for 2020–21 is         Conference adopted the budget of expenditure
anchored in the ILO Centenary Declaration for         and the budget of income for the Organization.
the Future of Work (Centenary Declaration),
                                                      5. The Programme of Work for 2020–21
adopted by the International Labour Conference
                                                      promotes the human-centred approach to the
at its 108th Session (June 2019). It will be
                                                      future of work set out in the Centenary
implemented at a time of transformative change
                                                      Declaration, which brings together the
in the world of work, driven in particular by
                                                      economic, social and environmental dimensions
technological innovations, demographic shifts,
                                                      of policies for the world of work. With enhanced
environmental and climate change, and
                                                      focus, clear prioritization and greater coherence
globalization. The programme responds to the
                                                      of action, the programme will enable accelerated
Centenary Declaration’s call to act with urgency
                                                      progress towards achieving the four strategic
to seize the opportunities and address the
                                                      objectives of the Decent Work Agenda
challenges to shape a fair, inclusive and secure
                                                      (employment; social protection; social dialogue
future of work with full, productive and freely
                                                      and tripartism; and standards and fundamental
chosen employment and decent work for all.
                                                      principles and rights at work) and advancing the
2. The Centenary Declaration reaffirms the            2030 Agenda for Sustainable Development
imperative of social justice that gave birth to the   (2030 Agenda).
ILO and the conviction that it lies within the
                                                      6. The programme is guided by the call of the
reach of the governments, employers and
                                                      Centenary Declaration to all Members to further
workers of the world acting together to shape a
                                                      develop, with ILO support, the human-centred
future of work that realizes its founding vision.
                                                      approach to the future of work by:
3. The Centenary Declaration sets the long-term
                                                      (a) strengthening the capacities of all people to
direction for the ILO as it commences its second
                                                          benefit from the opportunities of a changing
century and, in line with the resolution on the
                                                          world of work;
Centenary Declaration that was adopted by the
Conference at the same time, this programme           (b) strengthening the institutions of work to
for the biennium 2020–21 identifies the priority          ensure adequate protection of all workers;
areas for immediate ILO action.                           and
4. The Governing Body, at its 333rd Session           (c) promoting    sustained,  inclusive   and
(June 2018), 1 approved a modified process                sustainable economic growth, full and
whereby the Director-General’s Programme and              productive employment and decent work for
Budget proposals for 2020–21 could be guided              all.
by the Centenary Declaration. This modified
                                                      7. This call for action will shape ILO support for
process included the examination by the
                                                      the efforts to achieve a just transition to a future
Governing Body of a preliminary overview of the
                                                      of work that contributes to sustainable
proposals at its 334th Session (October–
                                                      development, harnessing the potential of
November 2018), 2 followed by the endorsement         technological progress and productivity growth
of the programme level of expenditure and             to achieve decent work for all.
consideration of the methodology to improve the
results framework at its 335th Session (March         8. The programme emphasizes that the ILO will
2019), 3 pending the submission of the final          continue to deliver services to governments,
results framework at the present session,             employers and workers (including through its
reflecting the relevant outcomes of the               sectoral     programme        and    development
108th Session (June 2019) of the International        cooperation), consistent with its mandate and
Labour Conference. In June 2019, the                  based on a thorough understanding of, and
                                                      attention to, their diverse circumstances, needs,
                                                      priorities and levels of development.
1 GB.333/PV, para. 112.
2 GB.334/PV, paras 773–809.                           9. The programme is fully aligned with the ILO’s
3 GB.335/PV, para. 884.                               Strategic Plan for 2018–21. Accordingly, the

                                                                                                   1
Programme and Budget for the biennium 2020–21

  criteria of relevance, impact on people’s lives         international agendas are at its fore, together
  and influence in shaping national and                   with transparency and accountability.

      A focused programme for a human-centred approach
      to the future of work
  10. The programme introduces a highly focused           essential for achieving each of the seven other
  and prioritized results framework centred on            outcomes. In addition, each policy outcome
  eight policy outcomes and three enabling                includes specific measures to strengthen the
  outcomes. These outcomes incorporate the                technical capacity of the constituents to engage
  cross-cutting policy drivers and Centenary              in all relevant processes, policy development
  Initiatives reflected separately in previous            activities and programmes, within and across
  programmes and budgets. Together with a more            countries.
  rigorous measurement system, they define the
                                                          13. Gender equality and non-discrimination,
  results the Organization must seek to achieve in
                                                          international labour standards, social dialogue
  the biennium.
                                                          and a just transition towards environmental
  11. The eight proposed policy outcomes derive           sustainability, which were established as cross-
  directly from the Centenary Declaration and             cutting policy drivers in the ILO’s Strategic Plan
  focus on the essential elements of a human-             for 2018–21, are now fully embedded in the
  centred approach to the future of work, namely:         policy outcomes of the Programme of Work for
                                                          2020–21. They are reflected in the outcome
  (1) strong tripartite constituents and influential
                                                          strategies and outputs to be delivered in the
      and inclusive social dialogue;
                                                          biennium, with accompanying indicators to track
  (2) international    labour      standards       and    progress more effectively.
      authoritative and effective supervision;
                                                          14. The optimal functioning of the ILO,
  (3) economic,     social    and    environmental        necessary for the delivery of the policy
      transitions for full, productive and freely         outcomes, continues to be supported through
      chosen employment and decent work for all;          three     enabling     outcomes.   Outcome       A
  (4) sustainable enterprises as generators of            (Authoritative knowledge and high-impact
                                                          partnerships for promoting decent work) sets a
      employment and promoters of innovation
                                                          stronger role for the ILO as a creator, compiler,
      and decent work;
                                                          broker and disseminator of knowledge, research
  (5) skills and lifelong learning to facilitate access   findings, statistics and information on decent
      to and transitions in the labour market;            work and as a more influential partner within the
  (6) gender equality and equal opportunities and         multilateral system. Outcomes B (Effective and
      treatment for all in the world of work;             efficient governance of the Organization) and
                                                          C (Efficient support services and effective use of
  (7) adequate and effective protection at work for       ILO resources) reinforce the ILO’s commitment
      all; and                                            to innovation, the continued strengthening of its
  (8) comprehensive and          sustainable     social   governance system and the most effective and
      protection for all.                                 efficient use of all the resources available to it.
                                                          They also address the democratization of the
  12. Strengthening the institutional capacities of       functioning and composition of the ILO
  the ILO’s tripartite constituents is at the core of     governing bodies, as called for in the resolution
  the programme of work, in accordance with the           on the ILO Centenary Declaration, and the ILO’s
  Governing Body’s decisions of October–                  ongoing role in and contribution to the United
  November 2018 4 and March 2019. 5                       Nations (UN) reform process.
  Accordingly, a consolidated policy outcome, with
  specific outputs focusing on the development of         15. In addition, the programme ensures the
  the institutional capacity of employers’ and            integration of the Centenary Initiatives, which
  workers’ organizations, is included. Strong,            were launched in 2013, into the relevant
  representative and independent social partners,         programme outcomes. The essential role of the
  effective and adequately resourced labour               ILO standards system is prioritized in policy
  administrations and robust, influential and             outcome 2; a just transition to the green
  inclusive mechanisms of social dialogue are the         economy is reflected in all policy outcomes, and
  bedrock of labour market governance, and are            is a particular focus of policy outcomes 3 and 4;
                                                          the role of enterprises is addressed in depth in
  4
                                                          policy outcome 4; a transformative agenda for
      GB.334/PV, para. 809.                               gender equality is the focus of policy outcome 6;
  5   GB.335/PV, para. 381.

         2
Executive overview

and continuing improvements in the ILO’s                                 plans that have been endorsed by the
governance functions are addressed under                                 Governing Body and which remain valid for the
enabling outcome B.                                                      biennium 2020–21. Table 1 provides an
                                                                         overview of the relationship between these
16. The programme content also embeds the
                                                                         strategies and the programme outcomes.
management and policy strategies and action

Table 1.     Integration of ILO strategies and action plans in the Programme of Work for 2020–21
Date                 Title                                                                              Integration in the Programme
                                                                                                        of Work for 2020–21

November 2015        Follow-up to the resolution concerning efforts to facilitate the transition from   Policy outcomes 3, 4 and 7
                     the informal to the formal economy
November 2016        Follow-up to the resolution concerning decent work in global supply chains:        Policy outcomes 3, 4 and 7;
                     Revised ILO programme of action 2017–21                                            enabling outcome A
March 2017           Programme of work to give effect to the resolution on Advancing Social             All policy and enabling
                     Justice through Decent Work (2017–23)                                              outcomes
November 2017        Follow-up to the resolution concerning employment and decent work                  Policy outcome 3
                     for peace and resilience
                     Follow-up to the resolution concerning the second recurrent discussion             Policy outcome 7
                     on fundamental principles and rights at work
                     Follow-up to the resolution concerning fair and effective labour migration         Policy outcomes 5 and 7
                     governance
                     Partnership and Policy Coherence Strategy                                          Enabling outcomes A and C
                     Knowledge Strategy 2018–21                                                         Enabling outcome A
                     Information Technology Strategy (2018–21)                                          Enabling outcome C
                     Human Resources Strategy (2018–21): Agility, engagement and efficiency             Enabling outcome C
March 2018           ILO Action Plan for Gender Equality 2018–21                                        Policy outcome 6
                     ILO results-based evaluation strategy (2018–21)                                    Enabling outcome B
October 2018         Follow-up to the Strategy for indigenous peoples’ rights for inclusive and         Policy outcome 6
                     sustainable development
                     Follow-up discussion on the voluntary peer-review mechanisms of national           Policy outcome 3
                     employment policies
March 2019           ILO-wide strategy for institutional capacity development                           All policy outcomes;
                                                                                                        enabling outcome A
                     Revised plan of action on social dialogue and tripartism for the period            Policy outcomes 1, 3, 4 and 7
                     2019–23 to give effect to the conclusions adopted by the International
                     Labour Conference in June 2018
                     Revisiting the plan of action on labour migration governance in consideration      Policy outcome 7
                     of the Global Compact for Safe, Orderly and Regular Migration
                     Update on the United Nations reform. Office plan of action 2019–20                 Enabling outcomes A and C
                     to maximize the opportunities of UN development system reform
                     for the ILO and tripartite constituents
                     Report of the 20th International Conference of Labour Statisticians                Policy outcome 2 and
                                                                                                        enabling outcome A

                                                                                                                               3
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