Washington, DC, August 25, 2006- The
International Finance Corporation, the private sector arm of the World
Bank, and the International Labour Organization agreed on Monday, August
21, 2006, to collaborate in developing a global program for better labor
standards in global supply chains. The Better Work Program will look at
various industries, including garments and footwear, plantations, electronic
equipment, and light manufacturing, with a focus on improving labor standards
and promoting the business case for better working conditions.
The new program will build on the success of a range of ILO projects, including
its Better Factories Cambodia program, which has been reporting on working
conditions in Cambodian garment factories against national and core international
labor standards since 2001. The Cambodian program combines strict monitoring,
remediation and training for factories, and cooperation with government,
employers, unions, and international buyers to ensure a transparent and
virtuous cycle of improvement. This program has been widely credited
with improving working conditions and compliance with international labor
standards in the country’s garment industry, as well as contributing to
the growth of this industry after the expiration of the Multi Fibre Agreement.
IFC’s partnership with the ILO will focus on creating global tools for
labor standards monitoring and remediation systems; tools will include
training, self assessment, information packages, and global Internet access.
The second phase will involve pilot rollouts in selected countries of the
Middle East, Southern Africa, and East Asia, where the global tools will
be implemented in close consultation with labor authorities and supplemented
by capacity building services for official labor inspectors, as well as
training on best labor practices.
“IFC’s experience shows that there is a clear and strong business case
for companies to manage environmental and social risks,” said Rachel Kyte,
Director of IFC’s Environment and Social Development Department. “IFC’s
recently adopted performance standard for Labor and Working Conditions
is focused on helping our clients address labor risks in their own businesses
as well as in their supply chains. We look on this partnership with ILO
as an opportunity to provide companies in emerging markets with new tools
and even stronger evidence of the business case for responsible practices.”
IFC will support the implementation of country pilots through its regionally
based technical assistance facilities and will also provide a grant to
ILO to support implementation of the overall program. IFC will draw upon
its global investment experience and social development expertise to develop
a framework for corporate social responsibility applicable to each pilot
country and will identify appropriate local partners to support the project
activities.
“The ILO welcomes the opportunity to work in partnership with IFC on improving
labor standards in global supply chains. By working together we can
increase our impact,” said Armand Pereira, the ILO’s Representative Director
for the United States. He added, “Improving labor standards often leads
to increases in productivity, quality, and competitiveness. Most importantly,
it increases the prospects for decent work, which is essential for millions
of the world’s people to move out of poverty.”
Under the partnership, the ILO will develop the global portal and the tools
for the Better Work Program. It will also further extend its innovative
monitoring Information Management System, for potential use in other countries
and for public labor inspection.
About the ILO
The International Labour Organization (ILO) was established in 1919 by
the Treaty of Versailles and became the first specialized agency of the
United Nations system in 1946.
The ILO has four strategic objectives: to promote and realize fundamental
principles and rights at work; to create greater opportunities for women
and men to secure decent employment and income; to enhance the coverage
and effectiveness of social protection for all; and to strengthen tripartism
and social dialogue.
The ILO’s work in setting and monitoring international labor standards
has provided the framework for national labor law and practice in virtually
all countries. The ILO is guided by the principle that social stability
and integration can be sustained only if they are based on social justice.
ILO assistance to efforts at job creation has been made more urgent by
the steady rise in poverty linked to unemployment and underemployment during
the last decade. The ILO provides research, analysis, and advice to assist
policymakers and constituents in its 179 member states to make the right
choices and formulate optimal strategies for creating more and better jobs.
The ILO's technical cooperation focuses on support for democratization
and poverty alleviation through employment creation that is grounded on
fundamental rights, basic social protection, and social dialogue. In particular,
the ILO helps its member states take practical steps towards implementing
its international labor standards.
The ILO's total budget for 2006-2007 is just over US$900 million, including
a regular budget of US$594 million plus US$306million in extra-budgetary
funds associated with special technical cooperation projects. For
more information, visit
www.ilo.org.
About IFC
The Social Responsibility Program is part of IFC's response to an increased
demand for guidance and support from client companies and private sectors
at large on corporate social responsibility. The program helps IFC’s projects
and clients move beyond compliance with IFC's environmental and social
performance standards. A subsidiary program on Labor Practices and Human
Rights helps businesses improve practices, assess impacts, and act on opportunities
related to human and workers' rights.
The International Finance Corporation is the private sector arm of the
World Bank Group and is headquartered in Washington, D.C. IFC coordinates
its activities with the other institutions of the World Bank Group but
is legally and financially independent. Its 178 member countries
provide its share capital and collectively determine its policies.
The mission of IFC is to promote sustainable private sector investment
in developing and transition countries, helping to reduce poverty and improve
people’s lives. IFC finances private sector investments in the developing
world, mobilizes capital in the international financial markets, helps
clients improve social and environmental sustainability, and provides technical
assistance and advice to governments and businesses. From its founding
in 1956 through FY05, IFC has committed more than $49 billion of its own
funds and arranged $24 billion in syndications for 3,319 companies in 140
developing countries. IFC’s worldwide committed portfolio as of FY05 was
$19.3 billion for its own account and $5.3 billion held for participants
in loan syndications. For more information, visit www.ifc.org.