Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698070574912.pdf (Guyana)
·' tf"- .

GUYANA PROPOS.ALS On the following Convention, and ILO Declaration which were adopted by the International Labour Conference at its 86th Session held in June, 1998.. 1) Job Creation in Small and Medium-Sized Enterprises Recommendation, 1998, No.

189.

2) ILO Declaration on Fundamental Principles and Rights at Work and Its Follow-up .. ( -x-x-x-x-x-x-x-x-x- -x--x-x-x-x-x- -x-x-x-x-x- MINISTRY OF LABOUR HUMAN SERVICES AND SOCIAL SECURllY.

,.... .
,.... .

.. STATE PAPER 12001 SUBMISSION OF INTERNATIONAL LABOUR INSTRUMENTS TO THE NATIONAL ASSEMBLY OF THE PARLIAMENT OF GUYANA FOR IMPLEMENTATION.

The Intematio~al Labour Conference at its 86th Sesslon held in June, 1998, adopted the following Recommendation and Declaration.

i) ii) Job Cteation in Small and Medium-Siz.ed Enterprises Recommendation, 1998,No.

189.

ILO Declaration on Fundamental Principles and Rights at Work and its follow-up.

2.

3.
2.

3.

Copies of the Recommendation and Declaration are attached as appendices I and II.

As a member of the International Labour Organisation Guyana is obliged to bring the above mentioned Recommendation and Declaration to the attention of the National Assembly for necessary action and to infonn the Director General of the International Labour Organisation accordingly.

RECOMMENDATION NO.

189 - Concerning General Conditions to Stimulate Job Creation In Small and Medium-Siud Enterprises.
l. PREAMBLE 'J: The International Labour Organisation notes that small and medium-sized enterprises are critical factors in economic growth and development and are increasingly responsible for the creation of the majority of jobs throughout the world, and can help create an environment of inovation and entrepreneurship.
These enterprises provide the potential for women and other traditionally disadvantaged groups to gain access under better conditions to productive, sustainable and quality employment opportunities.

2.
DEFINITION, PURPOSE AND SCOPE Government should in consultation with employers and workers organJsations define small and medium-size enterprises, taklng account of national, social and economic conditionsA Govenunent should adopt measures to recognise and promote the fundamental role that small and medium-sized entetjmses can play as regards - a) b) c) d) e) f) the promotion of full, productive and freely chosen employment; sustainable economic growth and the ability to react with flexibility to changes; increased economic participation of disadvantaged and marginalised groups in society; increased domestic savinss and investments; training and development of human resources; and stimulating Innovation, entrepreneurship, technology development and research.
The provision of this Recommendation apply to all branches of economic activity and all types of small and medium-sized enterpriese, whether private or public companies, cooperatives, partnership or family enterprises.
POLICY AND LEGAL FRAMEWORK To produce a conducive environment for the growth and development of small and medium-siz.ed enterprises government should - - - - - - - - )" ' a) b) c) adopt and pursue appropriate fiscal, monetary and employment policies; establish and apply appropriate legal provisions as regards property rights, including intellectual property, enforcement of contracts, fair competition as well as adequate social and Jabour legislation; improve the attractiveness of entrepreneurship by avoiding policy and legal measures which disadvantage those who wish to become entrepreneurs.
The above should be complemented by policies that provide equal opportunity as regards access to credit, foreign exchange and imported irnputs and fair taxation.

Specific measures and incentives aimed at assisting and upgrading the informal sector to become part of the organised sector should be implemented.

DEVELOfMENT OF AN ENTERPRISE CULTURE .

..,..


Measures should be drawn up to create and strengthen an enterprise culture which favours initiatives, enterprise creation, productivity, environmental consciousness, quality, good labour and industrial relations, and adequate social practices which are equitable.
DEYELOPMENI OF AN EFFECTIVE SERVICE INFRASIRUCTIJRE In order to enhance the growth, job-creation potential and competitiveness of such enterprises, consideration should be given to the availability and accessibility of a range of direct and indirect support services to include inter alia - a) b) c) d) e) f) g) business pre-start-up, start-up and development assistance; business plan development and follow-up; consultancy and research services; managerial and vocational skills enhancement; support for training in occupational safety and health; legal, accounting and financial services; market research and marketing assistance.
Credit and other financial services should as far as possible be provided on commercial terms except in the case of particularly vulnerable groups.

The development of organisations and institutions which can effectively support the growth and competitiveness of small and medium-size enterprises should be facilitated.

ROLES OF ORGANISATIONS OF EMPLOYERS AND WORK£RS.

l .
l .

Organisations of employers and workers should contribute to the development of such enterprises by- a) b) articulating to government the concerns of small and mediwn-size enterprises; .
provide support services in areas such as training, consultancy, easier access to credit, marketing, advise on industrial relations and promoting linkages with larger enterprises INfERNATIONAL COOPERATION A1Propriate international cooperation should be encouraged in the areas such as - a) b) c) establishment of common approaches to the collection of comparable data to support policy making; exchange information on the best practices in terms of policies and programmes to create jobs and to raise the quality of employment; and creation of linkages between national and international bodies and institutions.
• ~ · ·.

CONCLUSION Being a Recommendation it is not subject to ratification but the provisions should be used to guide the development of small and medium-sized enterprises.

ILO DECLARATION ON FUNDAMENTAL PRINCIPLES AND RIGHTS AT WORK AND ITS FOLLOW-UP.

The ILO was founded in the conviction that social justice is essential to universal and lasting peace.

It was mandated to set and deal with International Labour Standards and to promote strong social policies, justice and democratic institutions.
Towards these objectives the I.L.O developed and adopted a number of conventions recognized as fundamental, namely: a) b) c) d) freedom of association and the effective recognition of the right to collective bargaining; the elimination of all fonns of forced or compulsory labour; the effective abolition of child labour; and the elimination of discrimination in respect of employment and occupation.
The International Labour Conference declares that all members, even if they have not ratified the Conventions in question, have an obligation arising from the very fact of membership in the Organization to respect, promote and realize in good faith and in accordance with the Constitution, the principles concerning the fundamental rights which are the subject of those conventions.
To give effect to the Declaration, a promotional follow-up, which is meaningful and effective, shall be implemented in accordance with the measures specified in the annex, which shall be considered as an integral part of the Declaration .
• The International Labour Conference stresses that labour standards shall not be used for protectionist trade purposes, and that nothing in the Declaration and its follow-up shalt be invoked or otherwise used for such purposes, in addition, the comparative advantage of any country shall in no way be called into question by the Declaration and its follow-up.
ANNEX FOLLOW-UP TO THE DECLARATION The purpose is to provide an opportunity to review each year efforts made, in accordance with the Declaration, by members which have not yet ratified all the fundamental conventions.

A global report covering each year, one of the four categories of fundamental principles will be compiled.

The report will be drawn up under the responsibility of the Director General on the basis ·of infonnation submitted by members.
The report will be submitted to the conference for tripartite discussions.

CQNCLUSION Guyana has ratified all eight (8) of the fundamental Conventions.

This Declaration is not subject to ratification but is for information.

.

..
., ·, )l International Labour Conference Conference internationale du Travail RECOMMENDATION 189 RECOMMENDATION CONCERNING GENERAL CONDITIONS TO STIMULATE JOB CREATION IN SMALL AND MEDIUM-SIZED ENTERPRISES ADOPTED BY THE CONFERENCE AT ITS EIGHTY-SIXTH SESSION, GEN EV A, 17 JUNE 1998 BECOMMANDATION 189 RECOMMANDATION CONCERNANT LES CONDITIONS GENERALES POUR STIMULER LA CREATION D'EMPLOIS DANS LES PETITES ET MOYENNES ENTREPRISES ADOPTEE PAR LA CONFERENCE A SA QUATRE-VINGT-SIXIEME SESSION, GENEVE, 17 JUIN 1998 AUTHENTIC TEXT TEXTE AUTHENTIQUE Recommendation 189 RECOMMENDATION CONCERNING GENERAL CONDITIONS TO STIMULATE JOB CREATION IN SMALL AND MEDIUM-SIZED ENTERPRISES .
J.
• The General Conference of the International Labour Organization, Having been convened at Geneva by the Governing Body of the International Labour Office, and having met in its Eighty-sixth Session 011 2 June 1998, and Recognizing the need for the pursuit of the economic, social, and spiritual well being and development of individuals, families, communities and nations, Aware of the importance of job creation in small and medium-si1..ed enterprises, Recalling the resolution concerning the promotion of small and medium-sized enterprises adopted by the International Labour Conference at its 72nd Session, 1986, as well as the Conclusions set out in the resolution concerning employment policies in a global context, adopted by the Conference at its 83rd Session, 1996, Noting that small and medium-sized enterprises, as a critical factor in economic growth and development, arc increasingly responsible for the creation of the majority of jobs throughout the world, and can help create an environment for innovation and entrepreneurship, Understanding the special value of productive, sustainable and quality jobs, Recognizing that small and medium-sized enterprises provide the potential for women and other traditionally disadvantaged groups to gain access under bP.tter conditions to productive, sustainable and quality employment opportunities, Convinced that promoting respect for the Forced Labour Convention, 1930, the Freedom of Association and Protection of the Right 10 Organise Convention, t 948, the Right to Organise and Collel'tive Bargaining Convention, 1949, the Equal Remuneration Convention, I 951 , the Abolition of Forced Labour Convention, 1957, and the Discrimination (Employment and Occupation) Convention, I 958, wiil enhance the creation of quality employment in small and medium-sized enterprises and in particular that promoting respect for the Minimum Age Convention and Rccommcnclation, I <>73, will help Mcmhcrs in their efforts to cliniinalc child labour, Also convinced that the adoption of new provisions on
 job creation in small and medium-sized enterprises, to be taken into account together wi1.h: (a) the relevant provisions of other international labour Conventions and Recommendations as appropriate, such as the Employment Policy Convention and Recommendation, 1964, and the Employment Policy (Supplementary Provisions) Recommendation, 1984, the Co-operatives (Developing Countries) Recommendation, 1966, the Human Resources Development Convention and Recommendation, 1975, and the Occupational Safety and Health Convention and Recommendation, 1981; and 2 (b) other proven ILO initiatives promoting the role of small and medium-sized enterprises job creation and encouraging adequate and common application of social protection, including Start and Improve Your Business and other programmes as well as the work of the International Training Centre of the ILO in training and skills enhancement, in sustainable will provide valuable guidance for Members in the design and implementation of policies on job creation in small and medium-sized enterprises, Having decided upon the adoption of certain proposals with regard to general conditions to stimulate job creation in small and medium-sized enterprises, which is the fourth item on the agenda of the session, and Having determined that these proposals shall take the form of a Recommendation; adopts this seventeenth day of June of the year one thousand nine hundred and ninety-eight the following Recommendation which may be cited as the Job Creation in Small and Medium-Sized Enterprises Recommendation, 1998.
I.

DEFINITION, PURPOSE AND SCOPE 1.

Members should, in consultation with the most representative organizations of employers and workers, define small and medium-sized enterprises by reference to such criteria as may be considered appropriate, taking account of national social and economic conditions, it being understood that this flexibility should not preclude Members from arriving at commonly agreed definitions for data collection and analysis purposes.

2.
Members should adopt measures which are appropriate to national conditions and consistent with national practice in order to recognize and to promote the fundamental role that small and medium-sized enterprises can play as regards: (a) (b) (c) (d) (e) (f) (g) (h) the promotion of full, productive and freely chosen employment; greater access to income-earning opportunities and wealth creation leading to productive and sustainable employment; sustainable economic growth and the ability to react with flexibility to changes; increased economic participation of disadvantaged and marginalized groups in society; increased domestic savings and investment; training and development of human resources; balanced regional and local development; provision of goods and services which are better adapted to local market needs; (j) (i) innovation, entrepreneurship, access to improved quality of work and working conditions which may contribute to a better quality of life, as well as allow large numbers of people to have access to social protection; stimulating research; access to domestic and international markets; and the promotion of good relations between employers and workers.
3.

In order to promote the fundamental role of small and medium-sized enterprises referred to in Paragraph 2, Members should adopt appropriate measures and enforcement mechanisms to safeguard the interests of workers in such enterprises by providing them with the basic protection available under other relevant instruments.
technology development and (k) (I) 4 t (b) other proven ILO initiatives promoting the role or small and medium-sized enterprises job creation and encouraging adequate and common application of social protection, including Start and Improve Your Business and other programmes as well as the work of the International Training Centre of the ILO in training and skills enhancement, in sustainable will provide valuable guidance for Members in the design and implementation of policies on job creation in small and medium-sized enterprises, Having decided upon the adoption of certain proposals with regard to general to stimulate job creation in small and medium-sized conditions enterprises, which is the fourth item on the agenda of the session, and Having determined that these proposals shall take the form of a Recommendation; adopts this seventeenth day of June of the year one thousand nine hundred and ninety-eight the following Recommendation which may be cited as the Job Creation in Small and Medium-Sized Enterprises Recommendation, 1998.
I.

DEFINITION, PURPOSE AND SCOPE 1.

Members should, in consultation with the most representative organizations of employers and workers, define small and medium-sized enterprises by reference to such c1iteria as may be considered appropriate, taking account of national social and economic conditions, it being understood that this flexibility should not preclude Members from arriving at commonly agreed definitions for data collection and analysis purposes.

2.
Members should adopt measures which are appropriate to national conditions and consistent with national practice in order to recognize and to promote the fundamental role that small and medium-sized enterprises can play as regards : (a) (b) (c) (d) (e) (f) (g) (h) the promotion of full, productive and freely chosen employment; greater access to income-earning opportunities and weallh creation leading to productive and sustainable employment; sustainable economic growth and the ability to react with flexibility to changes; increased economic participation of disadvantaged and marginalized groups in society; increased domestic savings and investment; training and development of human resources; balanced regional and local development; provision of goods and services which are better adapted to local market needs; (i) (j) innovation, entrepreneurship, access to improved quality of work and working conditions which may contribute to a better quality of life, as well as allow large numbers of people to have access to social protection; stimulating research; access to domestic and international markets; and the promotion of good relations between employers and workers.
3.

In order to promote the fundamental role of small and medium-sized enterprises referred to in Paragraph 2, Members should adopt appropriate measures and enforcement mechanisms to safeguard the interests of workers in such enterprises by providing them with the basic protection available under other relevant instruments.

technology development and (k) (1) 4 ( • 4 .


The provisions of this Recommendation apply to all branches of economic activity and all types of small and medium-sized enterprises, irrespective of the form of ownership (for example, private and public companies, cooperatives, partnerships, family enterprises, and sole proprietorships) .

/ II.

POLICY AND LEGAL FRAMEWORK 5.
In order to create an environment conducive to the growth and development of small and medium-sized enterprises, Members should: (a) adopt and pursue appropriate fiscal , monetary and employment policies to promote an optimal economic envirorunent (as regards, in particular, inflation, interest and exchange rates, taxation, employment and social stability); (b) (c) establish and apply appropriate legal provisions as regards, in particular, property rights, including intellectual property, location of establishments, enforcement of contracts, fair competition as well as adequate social and labour legislation; improve the attractiveness of entrepreneurship by avoiding policy and legal measures which disadvantage those who wish to become entrepreneurs.
6.

The measures referred to in Paragraph 5 should be complemented by policies for the promotion of efficient and competitive small and mc<lium-si7.ed enterprises able to provide productive and sustainable employment under adequate social conditions.
To this end, Members should consider policies that: (1) create conditions which: (a) provide for all enterprises, whatever their size or type: (i) (ii) equal opportunity as regards, in particular, access to credit, foreign exchange and imported inputs; and fair taxation; (!>) ensure the non-discriminatory application of labour legislation, in order to raise the quality of employment in small and medium-sizl!d enterprises; (2) (c) promote observance by small and medium-sized enterprises of international labour standards related to child labour; remove constraints to the development and growth of small and m~dium-sized enterprises, arising in particular from: (a) difficulties of access to credit and capital markets; low levels of technical and managerial skills; (b) inadequate information; (c) low levels of productivity and quality; (d) insufficient access to markets; (e) difficulties of access to new technologies; (f) lack of transport and communications infrastructure; (g) Inappropriate, inadequate or overly burdensome registration, licensing, (h) reporting and other administrative requirements, including those which are disincentives to the hiring of personnel, without prejudicing the level of conditions of employment, the effectiveness of labour inspection or the system of supervision of working conditions and related issues; (i) G) insufficient support for research and development; difficulties in access to public and private procurement opponunities; (3) include specific measures and incentives aimed at assisting and upgrading the informal sector to become part of the organized sector .
6 7.
With a view to the formulation of such policies Members should, where ti appropriate : (1) (2) (3) collect national data on the small and medium-sized enterprise sector, covering inter alia quantitative and qualitative aspects of employment, while ensuring that this does not result in undue administrative burdens for small and medium-sized enterprises; undertake a comprehensive review of the impact of existing policies and regulations on small and medium-sized enterprises, with particular attention to the impact of structural adjustment programmes on job creation; legislation, labour and · social in consultation with review the most representative organizations of employers and workers, to determine whether: such legislation meets the needs of small and medium-sized enterprises, (a) while ensuring adequate protection and working conditions for their workers; there is a need for supplementary measures as regards social protection, such as voluntary schemes, cooperative initiatives and others; (b) (c) such social protection extends to workers in small and medium-sized enterprises and there are adequate provisions to ensure compliance with social security regulations in areas such as medical care, sickness, unemployment, old-age, employment injury, family, maternity, invalidity and survivors' benefits.
8.

In times of economic difficulties , governments should seek to provide strong and effective assistance to small and medium-sized enterprises and their workers.

9.
In formulating these policies, Members: (1) may consult, in addition to the most representative organizations of employers and workers, other concerned and competent parties as they deem appropriate; (2) (3) should take into account other policies in such areas as fiscal and monetary matters, trade and industry, employment, labour, social protection, gender equality, occupational safety and health and capacity-building through education and training; should establish mechanisms to review these policies, in consultation with the most representative organizations of employers and workers, and to update them.
III.

DEVELOPMENT OF AN ENTERPRISE CULTURE 10.

Members should adopt measures.

drawn up in consultation with the most representative organizations of employers and workers, to create and strengthen an enterprise culture which favours initiatives, enterprise creation, productivity, environmental consciousness, quality, good labour and industrial relations, and adequate social practices which are equitable.
To this end, Members should consider: (1) (2) pursuing the development of entrepreneurial attitudes, through the system and programmes of education, entrepreneurship and training linked to job needs and the attainment of economic growth and development, with particular emphasis being given to the importance of good labour relations and the multiple vocational and managerial skills needed by small and medium-sized enterprises; seeking, through appropriate means, to encourage a more positive attitude towards risk-taking and business failure by recognizing their value as a learning experience while at the same time recognizing their impact on both entrepreneurs and workers; 8 (3) (4) encouraging a process of lifelong learning for all calc:gorics of workers aml entrepreneurs; designing and implementing, with full involvemcnl of lhc organizalions of employers and workers concerned , awareness campaigns lo promole: (a) respect for the rule of law and workers ' righls, bcuer working condilions, higher productivity and improved quality of goods and services; (b) entrepreneurial role models and award schemes, taking due account of the specific needs of women, and of disadvantaged and marginalized groups.
IV .

DEVELOPMENT OF AN EFFECTIVE SERVICE INFRASTRUCTURE 11 .

In order to enhance the growth, job-creation potential and competitiveness of small and medium-sized enterprises, consideration should be given to the availability and accessibility of a range of direct and indirect support services for them and their workers, 10 include: (a) business pre-start-up, start-up and development assistance; (b) (c) (d) business plan development and follow-up; business incubators; information services.
including advice on government policies; < consultancy and research services; (e) (f) managerial and vocational skills enhancement; (g) (h) (i) promotion and development of enlerprise-based !raining; support for training in occupational safety and health; assistance in upgrading the literacy, numeracy, computer competencies and basic education levels of managers and employees: (j) (k) access to energy, telecommunications and physical infrnslrncture such as water, electricity , premises, transportation and roads, pr~>Vided directly or through private sector intermediaries; assistance including in understanding and applying labour legislation, provisions on workers' rights, as well as in human resources development and the promotion of gender equality; (I) (m) (n) (o) (p) (q) (r) legal, accounting and financial services; support for innovation and modernization; advice regarding technology; advice on the effective application of information and communication technologies to the business process; access to capital markets, credit and loan guarantees; advice in finance, credit and debt management; export promotion and trade opportunities in national and international markets: (s) market research and marketing assistance; (t) (u) (v) (w) environmental management services.
assistance in product design, development and presi::ntation; quality management, including quality testing and mcasure111ent: packaging services; 12.
As far as possible, the support services referred to in Paragraph I I should be designed and provided to ensure optimum relevance and efficiency through such means as: 10 .l (a) (b) (c) adapting the services and their delivery to the specific needs of small and medium-sized enterprises, taking into account prevailing economic, social and cultural conditions, as well as differences in terms of size, sector and stage of development; ensuring active involvement of small and medium-sized enterprises and the most representative organizations of c.mployers and workers the determination of the services to be offered; involving the public and private sector in the delivery of !>UCh services through, for example, organizations of employers and wc.rkers, semi-public organizations, private consultants, technology parks, business incubators and small and medium-sized enterprises themselves; in (d) (c) (0 decentralizing the delivery of services, thereby bringing them as physically close to small and medium-sized enterprises as possible; promoting easy access to an integrated range of effective services through "single window" arrangements or referral services; aiming towards self-sustainability for service providers through a reasonable degree of cost recovery from small and medium-sized enterprises and other sources , in such a manner as to avoid distorting the ma1 kets for such services and to enhance the employment creation potential of small and medium-sized enterprises; ensuring professionalism and accountability in rhe management of service delivery; establishing mechanisms for continuous mo:-tiloring, eva!u!ltion and updating of services .
13.

Services should be designed to include pro<luctivity-enhancing and other approaches which promote efficiency and help small and medium-sized enterprises to sustain competitiveness in domestic and international markets, while at the same time improving labour practices and working conditions.

(h) (g) 14.

Members should facilitate access of small and medium-sized enterprises to finance and credit under satisfactory conditions.
In this co1mcction: (I) (2) (3) (4) credit and other financial services should as far as possible be provided on commercial tenns to ensure their sustainability, except.
in the case of particularly vulnerable groups of entrepreneurs; supplementary measures should be taken to simplify administrative procedures, reduce transaction costs and overcome problems related to inadequate collateral by, for example, the creation of non-go\'ernmcntal financial retail agencies and development finance institutions addressing poverty alleviation: small and medium-sized enterprises may be encouraged to organize in mutual guarantee associations; the creation of venture capital and other organizations, specializing in assistance to innovative small and mcdium-si:.·.cd enterprises, should be encouraged.
_ 15.

Me mbers should consider appropriate policies to improve all aspects of in small and medium-sized enterprises by ensuring the non employment discriminatory npplication of protective labour and soc i~l legislation.

(1) 16.

Members should, in addition: facilitate, where appropriate, the development of organizations and institutions which can effectively support the growth and cowpelitiveness of small and this regard, con.~ultation with the most medium-sized enterprises.
In representative organizations of employers and workers should be considered; 12 - - - - - - - - - - - - - - - -- - - - - - - - --- --- ·- - --·--·- - - · ·- - · - (2) (3) (4) consider adequate measures to promote cooperative linkages between small and medium-sized enterprises and larger enterprises.
In l11is c:onncction, measures should be taken to safeguard l11e legitimate interests of the small and medium-sized enterprises concerned and of their workP.rs: consider measures to promote linkages between small and medium-sized enterprises to encourage the exchange of experience as well the sharing of resources and risks.
In this connection, small and medhun-sized enterprises might be encouraged to form structures such as con:::ortia, networks and production and service cooperatives, taking into accoun• the importance of the role of organizations of employers and workers; consider specific measures and inccnrivcs for per:;ons aspiring to become entrepreneurs among selected categories of the populatic)n, such as women, long-tenn unemployed, persons affected by suuctural adjustment or restrictive and discriminatory practices, disabled persons, demobilized military personnel, young persons including graduates, older workers.
ethnic minorities and indigenous and tribal peoples.
The detailed identification of these categories should be carried out taking into account national socio-economic prioritb and circumstances; (5) consider special measures to improve communication and relations between government agencies and small and medium-si1.ed enterprises as well as the most representative organizations of such enterprises, in crder to improve the effectiveness of government policies aimed at job creation; < (6) encourage support for female entrepreneurship, recognizing the growing impmtance of women in the economy, through measures designed specifically for women who are or wish to become entrepreneurs .
V. ROLES OF ORGANIZATIONS OF EMPLOYERS AND WORKERS 17.

Organizations of employers or workers should considt:r contributing to the development of small and medium-sized enterprises in th:!

following ways : (a) articulating to governments the concerns of small and medium-sized enterprises or their workers, as appropriate; providing direct support services in such areas as training, ( unsultancy, easier access to credit, marketing.
advice on industrial rc:latiuas and promoting linkages with larger enterprises; cooperating with national, regional and local i11stituti011s as well as with intergovernmental regional organizations which provide support to small and medium-sized enterprises in such areas as training, con;;ultancy, business start-up and quality control; participating in councils, task forces and other bodies at nalional, regional and local levels established to deal with important economic and social issues , including policies and programmes, affecting small and medium-sized enterprises; promoting and taking part in the development of economically beneficial and socially progressive restructuring (by such means as retraining and promotion of self-employment) with appropriate social safety nets; lif (b) (c) (d) (e) (f) participating in the promotion of exchange of experieuce a1~cl 1:stablishment of linkages between small and medium-sized enterprisrs; 14 (g) panicipating in the monitoring and analysis of social and labour-market issues affecting small and medium-sized enterprises, concerning such matters as tenns of employment, working conditions, social protection and vocational training, and promoting corrective action as appropriate; (h) participating in activities to raise quality and productivity, as well as to promote ethical standards, gender equality and non-discrimination; (i) preparing studies on small and medium-sized enterprises, collecting statistical and other types of information relevant to the sector, including statistics disaggregated by gender and age, and sharing this information, as well as lessons of best practice, with other national and international organizations of employers and workers; (j) providing services and advice on workers' rights, labour legislation and social protection for workers in small and medium-sized enterprises.
18.

Small and medium-sized enterprises and their workers should be encouraged to be adequately represented, in full respect for freedom of association.

In this connection, organizations of employers and workers should consider widening their membership base lo include small and medium-sized enterprises .

VI.

INTERNATIONAL COOPERATION 19.
Appropriate international cooperation should be encouraged in the following areas: (a) (b) (c) establishment of common approaches to the collection of comparable data, to support policy-making; exchange of information, disaggregated by gender, age and other relevant variables, on best practices in tenns of policies and programmes to create jobs and to raise the quality of employment in small and medium-sized enterprises; creation of linkages between national and international bodies and institutions that are involved in the development of small and medium-sized enterprises, including organizations of employers and workers, in order to facilitate: exchange of staff, experiences and ideas; (i) (ii) exchange of training materials, training methodologies and reference materials; (iii) compilation of research findings and other quantitative and qualitative data, disaggregated by gender and age, on small and medium-sized enterprises and their development; (iv) establishment of international partnerships and alliances of small and medium-sized enterprises, subcontracting arrangements and other commercial linkages; · (v) development of new mechanisms, utilizing modern information technology, for the exchange of information among governments, employers' organizations and workers' organizations on experience gained with regard to the promotion of small and medium-sized enterprises; (d) international meetings and discussion groups on approaches to job creation through the development of small and medium-sized enterprises, including support for female entrepreneurship.
Similar approaches for job creation and entrepreneurship will be helpful for disadvantaged and marginalized groups; ·: 16 (f) (e) systematic research in a variety of contexts and countries into key success factors for promoting small and medium-sized enterprises which are both efficient and capable of creating jobs providing good working conditions and adequate social protection; promotion of access by small and medium-sized enterprises and their workers to national and international databases on such subjects as employment opportunities, market information, laws and regulations, technology and product standards.
20.

Members should promote the contents of this Recommendation with other international bodies.

Members should also be open to cooperation with those bodies, where appropriate, when evaluating and implementing the provisions of this Recommendation, and take into consideration the prominent role played by the ILO in the promotion of job creation in small and medium-sized enterprises .

18 .

.
18 .

.

The text of the Recommendation as here presented is a true copy of the text authenticated by the signatures of the President of the International Labour Conference and of the Director-General of the International Labour Office.

Le texlc de la recommandation prescntfo iciest un copic exacte du texte authcntique par lcs signatures d President de la Conference internationale du Travail e du Directeur general du Bureau international d Travail.
Certified true and complete copy, Copie certifiee conforme et complete, For the Director-General of the International Labour Offict Pour le Directeur general du Bureau international du Travail ( The foregoing is the authentic text of the Recommendation duly adopted by the General Conference of the International Labour Organiialion during its Eighty-sixth Session which was held al Geneva and declared closed the 18 June 1998.
IN FAITH WHEREOF we have appended our signatures this nineteenth day of June 1998. .

.

• ..

I L 20 f "- I .
j.. International Labour Conference ILO DECLARATION ON FUNDAMENTAL PRINCIPLES AND RIGHTS AT WORK AND ITS FOLLOW-UP ADOPTED BY THE CONFERENCE AT ITS EIGHTY-SIXTH SESSiON, GENEVA, 18 JUNE 1998 j ILO DECLARATION ON FUNDAMENTAL PRINCIPLES AND RIGHTS AT WORK Whereas the ILO was founded in the conviction that social justice is essential to universal and lasting peace; Whereas the ILO should, now more Whereas economic growth is essential but not sufficient to ensure cqui1y, social progress and the eradication of poverty, confirming the need for the ILO to promote strong social policies, justice and democratic institutions; than ever, draw upon all its standard-setting, technical cooperation and research resources in all its areas of competence, in particular employment, vocational training and working conditions, to ensure that, in the context of a global strategy for economic and social development, economic and social policies are mutually reinforcing components to create broad-based sustainable development; in order Whereas the ILO should give special attention to the problems of persons with special social needs, particularly the unemployed and migrant workers, and mobilize and encourage international, regional and national efforts aimed at resolving their problems, and promote effective policies ai med at job creation; Whereas, in seeking to maintain the link between social progress and economic growth, the guarantee of fundamental principles and rights at work is of particular significance in that it enables the persons concerned to claim freely and on the basis of equality of opportunity their fair share of the wealth which they have helped to generate, and to achieve fully their human potential ; Whereas the ILO is the constitutionally mandated international organization and the competent body to set and deal with international labour stanr'ards, and enjoys universal support and acknowledgement in promoting fundamental rights at work as the expression of its constitutional principles; Whereas it is urgent, in a situation of growing economic interdependence, to reaffirm the immutable nature of the fundamental principles and rights embodied in the Constitution of the Organization and to promote their universal application; J.
1.

2 .
The International Labour Conference, Recalls: (a) that in freely joining the ILO, all Members have endorsed the principles and rights set out in its Constitution and in the Declaration of Philadelphia, and have undertaken to work towards attaining the overall objectives of the Organization to the best of their resources and fully in line with their specific circumstances; that these principles and rights have been expressed and developed in the form of specific rights and obligations in Conventions recognized as fundamental both inside and outside the Organization.
(b) Declares that all Members, even if they have not ratified the Conventions in question, have an obligation arising from the very fact of membership in the Organization, to respect, to promote and to realize, in good faith and in accordance with the Constitution, the principles concerning the fundamental rights which are the subject of those Conventions, namely : (a) freedom of association and the effective recognition of the right to collective bargaining; the elimination of all forms of forced or compulsory labour; the effective abolition of child labour; and the elimination of discrimination occupation.
in respect of employment and (b) (c) (d) 3 .
Recognizes the obligation on the Organization to assist its Members, in response to their established and expressed needs, in order to att;iin these 2 objectives by making full use of its constitutional, operational and budgetary resources, including by the mobilization of external resources and support, as well as by encouraging other international organizations with which the ILO has established relations, pursuant to article 12 of its Constitution, to support these efforts: (a) by offering technical cooperation and advisory services to promote the ratification and implementation of the fundamental Conventions; (b) by assisting those Members not yet in a position to ratify some or all of these Conventions in their efforts to respect, to promote and to realize the principles concerning fundamental rights which are the subject of those Conventions; and (c) by helping the Members in their efforts to create a climate for economic and social development.
4.

5.

Decides that, to give full effect to this Declaration, a promotional follow-up, which is meaningful and effective, shall be implemented in accordance with the measures specified in the annex hereto, which shall be considered as an integral part of this Declaration.
Stresses that labour standards should not be used for protectionist trade purposes, and that nothing in this Declaration and its follow-up shall be invoked or otherwise used for such purposes; in addition, the comparative advantage of any country should in no way be called into question by this Declaration and its follow-up .

.. l l I l 3 Annex Follow-up to the Declaration I.

OVERALL PURPOSE 1.
OVERALL PURPOSE 1.

The aim of the follow-up described below is to encourage the efforts made by the Members of the Organization to promote the fundamental principles and rights enshrined in the Constitution of the ILO and the Declaration of Philadelphia and reaffirmed in this Declaration.

2.
2.

In line with this objective, which is of a strictly promotional nature , this follow-up will allow the identification of areas in which the assistance of the Organization through its technical cooperation activities may p1 ove useful to its Members to help them implement these fundamental principles and rights.
It is not a substitute for the established supervisory mechanisms, nor shall it impede their functioning; consequently, specific situations within U1e purview of those mechanisms shall not be examined or re-examined within the framework of this follow-up .

3 .
3 .

The two aspects of this follow-up , described below, are based on existing procedures: the annual follow-up concerning non-ratified fundamental Conventions will entail merely some adaptation of the present modalities of application of article 19, paragraph 5(e) of the Constitution: and the glohal report will serve to ohtain the best results from the procedures carried out pursuant to the Constitution.

II.

ANNUAL FOLLOW-UP CONCERNING NON-RATJrIED FUNDAMENTAL CONVENTIONS A.

Purpose and scope 1.


The purpose is to provide an opportunity to review each year, by means of simplified procedures to replace the four-year review introduced hy the Governing Body in 1995, the efforts made in accordance with the Declaraiion by Members which have not yet ratified all the fundamental Conventions .

2.

The follow-up will cover each year the four areas of fundamental principles and rights specified in the Declaration.

B. Modalities 1.
B. Modalities 1.

The follow-up will be based on reports requested from Members under article 19, paragraph 5(e) of the Constitution.

The report forms will be drawn up so as to obtain information from governments which have not ratified one or more of the fundamental Conventions.

on any changes which may have taken place in their law and practice, taking due account of article 23 of the Constituti1m :rnd established practice.

2.

These reports, as compiled by the Office.


will hc n.:vicwt:d hy the Governing Body.

3.

With a view to presenting an introduction to the reports thus compiled, drawing attention to any aspects which might call for a more in-depth discussion, the Office may call upon a group of experts appointed for this purpose by the Governing Body .

4 .
4 .

Adjustments to the Governing Body's existing procedures should be examined to allow Members which are not represented on the Governing Budy to provide, in the most appropriate way, clarifications which might prove necessary or useful during Governing Body discussions to supplement the information contained in their reports.

I L - 4 · 1 v III.

GLOBAL REPORT A.

Purpose and scope 1.


The purpose of this report is to provide a dynamic global picture relating to each category of fundamental principles and rights noted during the preceding four-year period, and to serve as a basis for assessing the effectiveness of the assistance provided by the Organization, and for determining priorities for the following period, in the form of action plans for technical cooperation designed in particular to mobilize the internal and external resources necessary to carry them out.
2 .

The report will cover, each year, one of the four categories of fundamental principles and rights in turn.

B. Modalities 1.

The report will be drawn up under the responsibility of the Director- General on the basis of official information, or information gathered and assessed in accordance with established procedures .

In the case of States which have not ratified the fundamental Conventions, it wilt be based in particular on the findings of the aforementioned annual follow-up .
In the case of Members which have ratified the Conventions concerned, the report will be based in particular on reports as dealt with pursuant to article 22 of the Constitution.

2.

This report will he suhmitted to the Conference for tripartite discussion as a report of &he Director-General .

The Coiifercnce may deal with this report separately from reports under article 12 of its Standing Orders, and may discuss it during a sitting devoted entirely to this report, or in any other appropriate way .
It will then be for the.

Governing Body, at an early session, to draw conclusions from this discussion concerning the priorities and plans of action for technical cooperation to be implemented for the following four-year period.

IV .

IT IS UNDERSTOOD THAT: 1.

Proposals shall be made for amendments to the Standing Orders of the Governing Body and the Conference which are required to implement the preceding provisions.

2 .
2 .

The Conference shall, in due course, review the operation of this follow up in the light of the experience acquired to assess whether it has adequately fulfilled the overall purpose articulated in Part I.

.'
.'

• ' I\: c. I ., 5 ~-------------------------~ The foregoing is the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up duly adopted by the General Conference of the International Labour Organization during its Eighty-sixth Session which was held ?.l Geneva and declared closed the 18 June 1998.

IN FAITH WHEREOF we have appended our signatures this nineteenth day of June 1998.
The President of tile Conference, JEAN-JACQUES OECHSLIN 111e Director-General of the International Labour Office.

MICHEL HANSENNE 6