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Core Labor Standards Handbook

This Handbook provides information on core labor standards (CLS) and illustrates
examples of application of CLS in operations of the Asian Development Bank (ADB).
This Handbook also gives practical knowledge on how ADB staff and their
Government counterparts can appropriately consider CLS in project level
interventions, and in planning and design of country strategies and programs.
Core Labor Standards HANDBOOK
HANDBOOK
Asian Development Bank

6 ADB Avenue, Mandaluyong City
1550 Metro Manila, Philippines
www.adb.org
International Labour Organization
4, route des Morillons
CH-1211 Geneva 22
Switzerland
www.ilo.org
Publication Stock No. 051106
Core Labor Standards
0051 1063
Printed in the Philippines
Core Labor Standards Cover FINAL2.ps

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CORE LABOR STANDARDS

HANDBOOK
Manila, Philippines
October 2006
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2006 Asian Development Bank

All rights reserved. Published 2006.
Printed in the Philippines.
The views expressed in this handbook are those of the authors and do not
necessarily reflect the views and policies of the Asian Development Bank or its
Board of Governors or the governments they represent, and International Labour
Office.
The Asian Development Bank and International Labour Office do not guarantee
the accuracy of the data included in this publication and accept no responsibility
for any consequence of their use.
Use of the term country does not imply any judgment by the authors, the
Asian Development Bank, or the International Labour Office as to the legal or
other status of any territorial entity.
ii
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Contents
Foreword
The Asian Development Bank (ADB), in its Enhanced Poverty Reduction Strategy
in 2004, has reaffirmed its commitment towards its overarching goal of an
Asia-Pacific region free of poverty. The International Labour Organizations (ILOs)
commitment towards achieving decent work for all, is consistent with and
supports ADBs goal of poverty reduction in the region. Recognizing a common
ground, ADB and the ILO have identified areas for cooperation, collaboration
and coordination to improve their contribution to the achievement of these
goals. This Core Labor Standards Handbook is a result of close collaboration
between ADB and the ILO.
ADB adopted a commitment to core labor standards (CLS) as part of its
Social Protection Strategy in 2001. Since then, ADB ensures that the CLS are
duly considered in the design and implementation of its investment projects.
This Handbook provides information about CLS, explains the difference
between core and other (noncore) labor standards, and presents examples of
good practices in the application of CLS in ADB operations. It does not introduce
new policies or requirements, but instead gives practical knowledge on how
CLS can be taken into account by ADB staff and their Government counterparts.
In order to give a comprehensive view, the Handbook is not limited to projectlevel interventions, but also covers the planning and design of country strategies
and programs.
The Handbook is divided into three parts. Part 1 is an introduction to
international CLS. Part 2 presents the eight Conventions that the ILOs
International Labour Conference recognized in 1998 as fundamental to the rights
of every person at work, irrespective of the level of development of individual
member States. Part 3, Core Labor Standards in ADB Operations, presents ideas
on how ADB can integrate CLS into its operations. The Handbook includes several
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appendices on practical information about CLS, checklists, ILO contacts, and

other information that can prove helpful to ADB staff and Government officials.
We hope that ADB staff and their Government counterparts will find this
Handbook useful. Nonetheless, this Handbook remains a working document.
As more experience and examples of good practice emerge from Asia and
elsewhere, the Handbook may be revised, enhanced and updated to ensure
that ADB staff and Government officials have access to the best and latest
information on CLS. ADB and the ILO will continue to work closely on this and
other related issues.
Bindu N. Lohani
Director General
Regional and Sustainable
Development Department
Manila
Lee Swepston
Senior Adviser on Human Rights
Standards and Fundamental
Principles and Rights at Work Sector
International Labour Office
Geneva
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Contents
Acknowledgments
The Handbook was prepared under the Asian Development Bank (ADB)s regional
technical assistance on Strengthening the Role of Labor Standards in Selected
Developing Member Countries financed from ADBs Technical Assistance Special
Fund and the Government of Norway, with in-kind contribution from the
International Labour Organization (ILO). The completion of this handbook was
made possible through close collaboration between ADB and the ILO.
Antero Vahapassi provided overall supervision in preparing the Handbook
and undertook the final technical editing. Technical guidance and coordination
support were provided by Shireen Lateef and Sonomi Tanaka. Production and
coordination assistance were provided by Michelle Tan, Paulita Perez de Tagle,
Marife Principe, Diane Respall, Ma. Victoria Mabugat, and Hilda Tidalgo.
The development of this Handbook benefited from the valuable comments
and suggestions of the following ADB and ILO colleagues: Caroline Vandenabeele,
Candice McDeigan, Sri Wening Handayani, Michiel Van der Auwera, Rana Hasan,
Paritha Tritasavit, Toshio Kondo, Robert Barclay, Axel Weber, Stephen Curry, Lee
Swepston, Constance Thomas, Frank Haggeman, Konstantin Novikov, Reuben
Dudley, Linda Wirth, Werner Blenk, and Temesgen Samuel. We also acknowledge
Alan Le Serves assistance in the technical editing.
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Abbreviations
ADB
CLS
core labor standards
DMC
developing member country
ILO
ILS
international labor standards
IPEC
International Programme on the Elimination of Child Labour
IPSA
initial poverty and social analysis
LFPR
labor force participation rate
NGO
nongovernment organization
PCR
project completion report
PPER
project performance evaluation report
PPTA
project preparatory technical assistance
RETA
regional technical assistance
RRP
report and recommendation of the President
SLMA
summary labor market assessment
NOTE
In this report, $ refers to US dollars
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Contents
Contents
FOREWORD
ACKNOWLEDGMENTS
iii
ABBREVIA
TIONS
ABBREVIATIONS
PART 1. INTRODUCTION
vi
Background
A.
Context of the Handbook
B.
ADB and ILO Working Together
C.
D.
ADBs Social Protection Strategy in Relation to

Purpose of the Core Labor Standards Handbook
International Core Labor Standards
A.
What are International Labor Standards?
10
B.
Importance of Labor Standards
11
C.
ADBs Actions to Promote Respect for ILS
12
D.
What are Core Labor Standards?
12
E.
Locating Information on CLS
16
F.
CLS in ADB Operations
16
PART 2. CORE LAB

OR ST
ANDARDS
LABOR
STANDARDS
Effective Abolition of Child Labor
21
A.
Nature of the Problem
21
B.
ILO Conventions on Child Labor
22
C.
Why ADB Needs to Take Action on Child Labor
24
Elimination of Discrimination in Employment and Occupation
27
A.
27
B.
What is Discrimination in Employment and Occupation?
29
C.
ILO Conventions on Discrimination in Employment

and Occupation
36
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D.
Why ADB Needs to Take Action on Discrimination in

Employment and Occupation
38
Elimination of All FForms

orms of FForced
orced or Compulsory Labor
39
A.
39
B.
What is Forced or Compulsory Labor?
41
C.
ILO Conventions on Forced or Compulsory Labor
47
D.
Why ADB Needs to Take Action on Forced or

Compulsory Labor
48
Freedom of Association and the Effective Recognition of the

Right to Collective Bargaining
A.
49
What are Freedom of Association and the Right to

Collective Bargaining?
50
B.
Special Areas of Concern
51
C.
ILO Conventions on Freedom of Association and the

D.
52
Why ADB Needs to Take Action on Freedom of

Association and Right to Collective Bargaining
53
PART 3. CORE LAB

OR ST
ANDARDS IN ADB OPERA
TIONS
LABOR
STANDARDS
OPERATIONS
Core Labor Standards in Country Strategy and Programs
57
A.
Core Labor Standards in ADB Country Poverty Analysis
58
B.
Child Labor in the Country Strategy and Program
63
C.
Equality and Discrimination in the Country Strategy

and Program
64
D.
Forced Labor in the Country Strategy and Program
67
E.
Freedom of Association and Collective Bargaining in the

Country Strategy and Program
F.
68
Integrating CLS in Operations after the CSP Phase:

Design and Implementation
70
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Contents
Core Labor Standards in Project Design
73
A.
General Principles during the Pre-design Phase
73
B.
Core Labor Standards in the Project Design Phase
75
C.
Child Labor in Project Design
78
D.
Addressing Equality and Discrimination in Project Design
84
E.
Forced or Compulsory Labor in Project Design
88
F.
Freedom of Association and Right to Collective Bargaining

in Project Design
G.
94
Proactive Investments to Put Core Labor Standards

into Practice
95
Core Labor Standards in Project Implementation
97
A.
Preparing the Bidding Documents
97
B.
Implementing a Project
99
C.
D.
Summary of Monitoring Activities for Compliance with

109
Project Completion and Postevaluation
110
ADDITIONAL REFERENCES
111
APPENDIXES
1
Directory of ILO Offices in Asia and the Pacific
114
ILO Supervision of the Application of Conventions
116
Summary Labor Market Assessment
119
Key Indicators of the Labor Market
126
Economic Rationale for the Eradication of Child Labor
129
Potential Dangers in Inadvertent Use of Child Labor in

Projects and Possible Mitigating Measures
132
Checklist for Reducing Negative Impacts of Gender

Discrimination
8
9
134
Initial Labor Standard Concerns of Stakeholders during

Project Implementation and Suggested Actions
137
Indicators for Gender Monitoring and Evaluation
141
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Part 1
Introduction
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Background
Background
Only decent work for allthat is work that is carried out in conditions of
freedom, equity, security and human dignitycan provide the social foundations
for the global economy. This is the concept of decent work.
Juan Somavia, Director General, ILO
Because Asia is home to two thirds of the worlds poor, the fight against
global poverty must be won in this region. We must dedicate ourselves to
achieving our visiona region free of poverty. This is no utopian dream. The
Asia and Pacific region can be free of poverty. This will lead to a world free of
poverty. We must move strongly and swiftly from vision to action.
Tadao Chino, Former President, ADB
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A. Context of the Handbook

The goal of an Asia and Pacific region free of poverty clearly defines the mission
of the Asian Development Bank (ADB). The overarching goal of the International
Labour Organization (ILO) is decent work. The two objectives have many in
common.1 They are two sides of the same coin with the common goals of social
justice and sustainable economic development for people in the region. ADB
and the ILO are working together on ways to reach these goals and have signed
a memorandum of understanding2 that identifies areas in which the two
organizations can cooperate, collaborate, and coordinate activities at the regional,
national, and enterprise levels.
This Core Labor Standards Handbook is an example of such cooperation
and collaboration. The two organizations have worked together to produce this
practical publication to encourage and assist policymakers at the national and
regional levels, ADB staff, project teams, consultants, and members of national
executing/implementing agencies involved in the design and implementation of
country programs and projects to take into account core labor standards (CLS)
wherever and whenever appropriate. The challenge is to convince decision makers
that the introduction of CLS and labor standards in general will not impede
development. On the contrary, respect for basic human rights at work and for
the legal and regulatory structures to implement them, assist workers, employers,
and society as a whole in the quest for sustainable economic growth and inclusive
social development.
This Handbook gives some basic information on international CLS, and looks
at ways in which they can be incorporated into ADB activities. The
recommendations here are not an expansion of any policy, and the user should
note the distinction between good practice suggestions, i.e., the examples in
this Handbook, and the policy requirements presented in ADBs Operations
Manual. All developing member countries (DMCs) of ADB, by virtue of being
members of ILO,3 are bound to respect and promote the fundamental CLS.
1
2
3
Inaugural speech by Mr. Yasuyuki Nodera, Regional Director, Asia Pacific Region, International Labour
Organization, at the Regional Technical Workshop on Labor Standards, Manila, 1819 September 2002.
The memorandum of understanding between ADB and ILO aims to facilitate collaboration between the
two organizations in matters of common interest to their DMCs. It was signed on 9 May 2002 in Shanghai.
The following DMCs are not the members of ILO: Kingdom of Bhutan, Cook Islands, Maldives, Marshall
Islands, Federated States of Micronesia, Nauru, Tonga, and Tuvalu. However, six of these Pacific DMCs
have signed the Cotonou Agreement with the European Union in 2000, which obligates them to comply
with CLS.
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Background
This Handbook describes the CLS and how to integrate them into ADB
operations, whenever necessary. It was developed by ILO and ADB as a result of
regional technical assistance.4
B. ADB and ILO Working Together

In ADBs view, poverty is characterized by the lack of access to essential goods,
services, assets, and opportunities to which every human being is entitled.
Everyone should be free from hunger, should be able to live in peace, and should
have access to basic education and primary health care services. However, in the
context of this Handbook, one of the main challenges is to demonstrate that
failure to respect labor standards places an economic obstacle in the way of
development in DMCs. If ADB is to take account of these standards in its work,
it must be on a sound economic basis and not just a social imperative.
ILO, which is a specialized agency of the United Nations system, is committed
to the attainment of social justice through the promotion of decent work with its
strategic components of CLS, employment, social protection, social dialogue, and
cross-cutting gender issues, in order to enable men and women to have decent
and productive work in conditions of freedom, equity, security, and human dignity.
ADB and the ILO recognize the expertise of each organization and seek to
establish an operational framework and practical modalities for their cooperation,
which focus on development issues, including
(i)
consultations between the two organizations on ADB country strategies

and assistance plans, and, where appropriate and feasible, participation
by ILO technical staff in ADB country poverty analysis or country strategy
and program preparatory missions, by contributing advice and a summary
labor market assessment, to ensure that ADBs portfolio supports
inclusive, employment-generating development patterns, enhances
welfare, and helps to allocate human resources to their most productive
uses;
(ii)
contributions by ILO, within the framework of its mandate, to the

development of a cooperative framework and networking among
ministries, social partners, and other civil society partners in countries
ADB. 1999. Strengthening the Role of Labor Standards in Selected DMCs (TA 5887). Manila.
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where ADB is planning a social protection intervention in line with its

social protection strategy;5 and
(iii) assistance from ADB to ILO in the development of decent-work country
programs through interagency consultations.
C. ADBs Social Protection Strategy in Relation to

Progress in ensuring compliance with CLS has been uneven in Asia. Child labor
is prevalent in many developing countries and bonded labor is reported in some
Asian countries. Discrimination at the workplace for such reasons as gender,
race, caste, age, and religious and political beliefs, is widely reported. Some
governments in the region repress unions and impede workers freedom of
association and from discussing their working conditions. Many workers are
exposed to health hazards and suffer accidents that can be avoided. There is
overwhelming evidence that decent working conditions reduce poverty, raise
living standards, and improve economic growth. For these reasons, many
countries and development agencies are supporting improved labor standards.6
Since the approval of ADBs Social Protection Strategy7 in September 2001,
CLS have become an integral part of ADBs development mission. ADBs Social
Protection Strategy and its Action Plan commit ADB to comply with the CLS,
and guide ADB operations to good labor and social protection practices.
In the context of ADBs work, social protection is defined as a set of policies
and programs designed to reduce poverty and vulnerability by promoting efficient
labor markets, diminishing peoples exposure to risks, and enhancing their capacity
to protect themselves against hazards and interruption/loss of income. As such, it
consists of five major elements, with each element closely interlinked to the
application of labor standards and more specifically, to the CLS as outlined above:
(i)
labor markets,
(ii)
social insurance,
(iii) social assistance,
5
6
7
ADB. 2001. Social Protection Strategy. Manila.

Opening address at the ADB/ILO Regional Workshop on Labor Standards, 1819 September 2002,
Manila by Mr. Akira Seki, Director General, Regional and Sustainable Development Department, ADB.
http://www.adb.org/Documents/Policies/Social_Protection/default.asp
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Background
(iv) micro and area-based schemes to protect communities, and

(v)
child protection.
Within ADBs long-term strategic framework for 20012015,8 and mediumterm strategies, the social protection priorities for the Asia and Pacific region are
the design of sound, comprehensive social protection programs that effectively
reduce poverty and vulnerability, including
(i)
interventions to protect communities and the informal sector;
(ii)
child protection; and
(iii) labor market programs to ensure productive employment, decent

working conditions, and improved human capital development.
D. Purpose of the Core Labor Standards Handbook

This Core Labor Standards Handbook gives practical knowledge on how ADB
operations can comply with the CLS. It does not introduce any new policies or
compliance requirements for ADBs operational staff. The main purpose of the
Handbook is to provide information about CLS, explain the difference between
core and other (non-core) labor standards, and finally, to present some ideas,
opportunities, and examples of good practices about the application of CLS in
ADBs operations. In order to give a comprehensive picture of CLS and ADB
operations, the Handbook is not limited only to project level interventions, but
it also covers the planning and design of country strategies and programs.
The Handbook is meant to be used by ADB operations staff who are involved
in project design and implementation, but it can also be useful for a wider
audience. It focuses on how CLS can be incorporated into ADBs operations,
where a project or program has issues in which CLS need to be considered.
The Handbook is divided into three parts. Part 1 is an introduction into
international CLS. Part 2 discusses all the eight Conventions that ILOs International
Labour Conference adopted in 1998 as fundamental to the rights of every human
being at work, irrespective of the level of development of individual member
ADB. 2001. Moving the Poverty Reduction Strategy Agenda Forward in Asia and the Pacific: The Longterm Strategic Framework of the ADB (20012015). Manila. This document identifies three core areas
of intervention for poverty reduction: sustainable economic growth, inclusive social development, and
governance for effective policies and institutions.
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States. These rights are a precondition for all the others in that they provide a
necessary framework from which to strive freely to improve individual and
collective conditions at work. Part 3, Core Labor Standards in ADB Operations,
presents ideas about how ADB could integrate CLS in its operations. Finally, the
Handbook includes several appendixes that include practical information of CLS,
checklists, ILO contact information, and others.
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International Core Labor

Standards
The increasing attention to and international discourse on labor standards, and
especially on CLS, is an inevitable consequence of globalization. As the imperatives
of current economic undertakings create new work arrangements and production
processes, cultivate complex supply chains, and facilitate rapid movements of
capital and production units, working people in many cases suffer from the
quantum leaps (and falls) of the global economy.
Just like democracy, the concept of labor standards is controversial and
often misunderstood. Efforts to implement them in national laws have sometimes
been seen as anti-business, investment disincentive, a regulation that has
no place in the free market, and as a hindrance to competitiveness. Initiatives
to include this concept in trade discussions have earned it labels like a nontariff
measure, a job killer, and a western protectionist measure. Some simply
call it market rigidity and a desirable incentive without empirical basis.
Over the last decade, attitudes have begun to change. Codes of conduct
and corporate social responsibility initiatives covering human rights,
environmental protection, and workers rights have emerged. However, the
debate on labor standards continues. In a recent issue of the ILO International
Labor Review, an econometric study by David Kucera concluded that no solid
evidence is found in support of what has been referred to as the conventional
wisdom, namely, that foreign investors favor countries with lower labor
standards; indeed all evidence of statistical significance points in the opposite
direction.9 This was demonstrated recently in Cambodia, where the lifting of
textile quotas after the Multifibre Agreement expired at the start of 2005
threatened to destroy Cambodias textile industry.
Although this trade deal no longer holds in the post-quota world, the
strategy of protecting labor standards in order to keep sewing orders up from
socially conscious companies will be crucial, as Cambodia still cannot compete
with China in productivity terms. In fact, according to a World Bank survey of
international buyers in 2004, more than 60% of companies who bought apparel
from Cambodia said compliance with labor standards was of equal or greater
9
www.ilo.org/public/English/support/publ/revue/sommaire/141-1-2.htm
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importance than price, quality, and speed of delivery. Companies like Gap and
Marks and Spencer are still continuing to source supplies from Cambodia for
the same reason.10
A. What are International Labor Standards?

Labor standards are simply the rules that govern how people are treated in a
working environment. They come in a variety of forms and originate at the
local, national, and international levels. Taking account of the spirit of labor
standards does not necessarily mean applying complex legal formulae to every
situation; it can be as simple as ensuring that basic rules of good sense and
good governance have been taken into account.
Labor standards cover a very wide variety of subjects, mainly concerning basic
human rights at work, respect for safety and health, and ensuring that people are
paid for their work. They also extend to questions of good governance, such as
labor inspection and basic labor administration. In an economic context, they are
important for raising productivity and competitiveness over the long term.
At the national level, labor standards are usually set by laws and regulations.
Some can also be found in collective agreements. Normally, these bind only the
contracting partiestrade unions and employersbut once accepted in some
countries, they acquire the force of law for the entire country or economic sector.
At the international level, labor standards are found in international
conventions and recommendations. International labor standards (ILS) are
important for two reasons. First, they represent the international consensus on
minimum best practices, whether on human rights generally or more precisely
on labor matters. Secondand more immediately important in many cases
when they have been ratified by member countries they constitute binding legal
obligations in national and international law, and may even be incorporated in
national law. Most ADB project documents require governments to apply their
own laws, and that usually includes ratified international human rights conventions.
10
2005 Asia Times Online Ltd.
10
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B. Importance of Labor Standards

1. The Economic Argument for Labor Standards in General
Putting labor standards into practice improves the economies of DMCs.11 Many
developing countries argue that keeping labor costs low is their only comparative
advantage in manufacturing and services. This is not correct because it needs to
take into account the productivity-increasing effect of labor standards. Lack of
respect for basic workers rights has a negative impact on development and on
the people directly affected by these problems. Labor standards are a tool used
both to assist development and to measure progress toward development. They
are both instruments and indicators.
2. Good Governance and Labor Standards
Good governance demands that labor standards be set and enforced. Respect
for peoples rights in their most basic economic activity, and action by the
government to protect them, is in itself support for the concept of governance.
Respecting labor standards, in whatever form, has a number of positive
governance benefits; for example, it
(i)
builds respect for the law,
(ii)
increases respect for human rights,
(iii) promotes decent work,

(iv) improves dialogue between social partners, and
(v)
improves prospects for exports as importing countries increasingly

demand respect for ILS including CLS.
As such, it makes a major contribution to poverty reduction.

By applying improved standards in its own investment projects, ADB creates
a demonstrative effect for the benefit of DMCs, showing the viability of better
labor standards. It also raises the awareness of all workers and employers of the
region to the necessity and the benefits of applying standards.
11
D. Kucera. 2002. Core labour standards and foreign direct investment, in International Labour Review,
Vol. 141, No. 1-2 (2002), pp. 31-70.
11
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3. Human Rights and Labor Standards

It should also be kept in mind that many labor standards are internationally
recognized human rights, contained in international conventions that are almost
universally ratified, including by most DMCs. There is a growing international
consensus that human rights are indivisible and have to be applied to everyone.
C. ADBs Actions to Promote Respect for ILS12

From an ADB perspective, it is useful to take labor standards into account in
order to provide assistance to DMCs. The issue is how this can be done. There
are various levels and ways to promote labor standards, as proposed in a series
of recommendations drafted at the ADB/ILO Regional Workshop on Labor
Standards in September 2002 (Box 1).
D. What are Core Labor Standards?13

CLS are a set of four internationally recognized basic rights and principles at work:
(i)
freedom of association and the effective recognition of the right to

collective bargaining,
(ii)
elimination of all forms of forced or compulsory labor,
(iii) effective abolition of child labor, and

(iv) elimination of discrimination in respect of employment and occupation.
While there are many types of labor standards, the four listed above have
achieved consensus internationally as the core labor standards. International
support for these standards reflects an understanding that they are applicable to
all countries. They do not establish a particular level of working conditions, wages,
or health and safety standards to be applied internationally. They are not intended
to alter the comparative advantage of any country. These basic rights have been
repeatedly articulated in international human rights instruments and declarations,
such as the Universal Declaration of Human Rights in 1948 and the Convention
12
13
General recommendations adopted at the ADB/ILO Regional Workshop on Labor Standards, Manila,
1819 September 2002.
This component has been incorporated from World Bank. 2002. Core Labor Standards Toolkit.
Washington, DC.
12
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Box 1: Recommendations from the Asian Development Bank/

International Labour Organization Regional Workshop
on Labor Standards, 2002
Strengthen Country Programming Strategies

Strategies. The inclusion of labor
standards consideration in the Asian Development Bank (ADB) country
programming strategies should be strengthened to improve its countrybased poverty and social analysis and to highlight priorities that need
to be addressed.
Strengthen Project Design. The inclusion of labor standards consideration

should be strengthened in the planning, design, and implementation of
all ADB activities, as approved by ADB in its Social Protection Strategy.
Respect for labor standards should be addressed as an issue in itself, and
as a matter of ADBs corporate social responsibility.
Strengthen Project Implementation

Implementation. Violations of labor standards in
the implementation of ADB-funded activities, or failure by contractors
and subcontractors to observe the standards they are required to
implement, should be prevented. ADB has limited capacity for oversight
of the employment conditions of its projects. A proposed option is to
request social audits from its contractors or reports from relevant labor
stakeholders (e.g., labor unions).
Review Procurement Documents

Documents. Procurement documents should be
reviewed to ensure that they meet these requirements. There is a need
to incorporate general clauses on labor standards in bidding documents.
Develop Proactive PPolicies

olicies and Interventions. Enforcing labor standards
and good working conditions cannot happen overnight. For instance,
if working children were suddenly removed from their incomegenerating activities, their families would sink further into poverty. The
solution lies in a progressive agenda to eliminate child labor, in which
the first step is to fight its worst forms (children working in prostitution,
hazardous jobs, etc.) urgently, while other working children are
temporarily allowed to help their families providing that they can
combine work with an education.
13
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Box 1(continued)
Ensure Cost-Effectiveness. The measures necessary to take full account

of labor standards may involve additional costs of implementation. Care
has to be taken (i) not to construct implementation measures at such a
high level that it is uneconomical to carry out economic activities and
projects, (ii) to build the costs of implementation of labor standards
into the costing of economic activities and projects at all levels, and
(iii) to ensure that respect for labor standards is never used as a nontariff
barrier or protectionist measure.
Develop Capacity and TTraining.

raining. The measures needed to respect labor
standards require training and familiarization of responsible staff,
contractors, and subcontractors, and probably the acquisition of new
skills. A training program should be put into place, once good practice
on labor standards has been established.
Raise Public Awareness. Public information campaigns ensure sensitization

of public opinion on the long-term benefits of respecting labor standards,
and how the cycle of poverty is reproduced by violating labor standards.
Involve Different Stakeholders and Institutions. Ensuring compliance

with labor standards requires positive involvement of nongovernment
organizations, such as employers associations, labor unions, and
community and civil society groups. Proper involvement of these
institutions is particularly required for conflict resolution. It is estimated
that more than 350 million new jobs are needed in the next decade to
absorb all the new entrants into the labor market in Asia and the Pacific.
Involving the private sector in good, corporate socially responsible practices
is essential to promote employment under decent working conditions.
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on the Rights of the Child, 1989. Their most prominent recent expression is in the
Declaration of the 1995 Copenhagen Summit on Social Development.
The ILO further substantiated the CLS in 1998 by the Declaration on the
Fundamental Principles and Rights at Work,14 which calls upon its member
countries to comply with the four principles, regardless of whether they have
ratified the relevant conventions. It also identified a role for international
organizations, such as the World Bank and ADB, in promoting respect for CLS.
While each of the CLS corresponds to one or more ILO conventions, a
country may be in compliance with a core standard even if the conventions have
not been ratified. Conversely, the fact that a country has ratified a convention
does not automatically prove its compliance with that standard. In all cases,
domestic legislation and practice must be considered.
It should be recalled that an obligation to respect the CLS is an inherent
part of membership in the ILO. The CLS form more specific international
obligations when the conventions containing them are ratified.
There are additional standards that develop aspects of these CLS, such as
those on workers with family responsibilities, protection of migrant workers,
working hours for young workers, and industrial relations. Other labor standards
cover such subjects as
(i)
occupational health and safety (OHS);
(ii)
employment promotion, including mechanisms (employment

exchanges, etc.);
(iii) minimum wages and payment of wages;

(iv) social security;
(v)
labor administration (including labor inspection); and
(vi) specific economic sectors or occupations (seafarers, dockworkers,

nursing personnel, home workers, plantation workers, etc.).
14
http://www.ilo.org/public/english/standards/relm/ilc/ilc86/com-dtxt.htm
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E. Locating Information on CLS

There are many sources of information on the status of CLS in ADBs DMCs. The
most important partner on issues related to labor standards is the ILO,15 and
country teams preparing country strategies and programs (CSPs) are strongly
encouraged to contact staff from ILO country offices (Appendix 1). Local trade
unions and employer organizations are also important sources of information.
Of course, another potentially key source of information on how labor standards
are treated in a country is ADB staff members own observations and information
gleaned from their networks on the ground. ILO supervision of the application
of conventions is explained in Appendix 2.
F.
CLS in ADB Operations
Since the approval of ADBs Social Protection Strategy in September 2001, CLS
have been an integral part of ADBs development mission. The strategy and its
action plan commit ADB to comply with these core labor standards and guide
ADB operations to good labor and social protection practices. The following
excerpt from the Strategy highlights ADBs commitment:
Vulnerable groups that may be negatively affected by an ADB

intervention must be adequately compensated and mitigation measures
put in place to avoid creating further poverty (e.g., in case of public or
private sector restructuring, workers, particularly low income workers,
should not be unfairly disadvantaged, regardless of race, skills, gender,
age, or religious and political beliefs);16 mitigation measures should
always aim to adequately balance social objectives and economic
sustainability; and
15
16
Information of the ILO Conventions and Recommendations, as well as, the ratification of CLS by each
DMC, is available from http://www.ilo.org/public/English/standards/norm/index.htm. From this webpage, click Ratifications of the fundamental conventions.
Other typical examples are loans dealing with shifts toward market-determined pricing of energy, water,
telecommunications, and housing. Ideally such development interventions should take place after
appropriate regulatory institutions have been created and safety nets established. Often, however, interim
measures may have to be adopted to ease the effects on households (e.g., tiered pricing of utilities or
exemptions from user charges).
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(i)
in the design and formulation of its loans, ADB will comply with
the internationally recognized CLS;
(ii)
take all necessary and appropriate steps to ensure that for ADB
financed procurement of goods and services, contractors,
subcontractors and consultants will comply with the countrys
labor legislation (e.g., minimum wages, safe working conditions,
and social security contributions, etc.) as well as with the CLS;
As part of its regular loan reviews, ADB will monitor that (i) and (ii) are
complied with.
The 1998 ILO Declaration on Fundamental Principles and Rights at Work

specifically asks international organizations, such as development banks, to
promote an atmosphere conducive to the achievement of CLS. Accordingly,
although compliance with CLS may not be a condition for lending or technical
assistance in client countries, ADB staff are encouraged to analyze the situation
relating to CLS in formulating CSPs and individual loan projects. The question is
how can ADB staff, project teams, etc., ensure that CLS are included in ADB
operations? How can they find out if CLS are being respected? At what stage/s
of the operational cycle can CLS be incorporated to ensure that ADBs overarching
goal, strategic objectives, and operational priorities are met? A parallel question
concerns the relationship of CLS and other labor standards. Since ADB needs to
comply with CLS in the design and formulation its loans, the same does not
apply literally to the rest of the labor standards. However, it is important to
notice that several labor standards have either been ratified by a particular DMC
or integrated into its labor legislation. Therefore, it is necessary to consult the
existing labor legislation, since ADB needs to ensure that ADB-financed
procurement of goods and services, contractors, subcontractors and consultants
will comply with the countrys labor legislation.17
ADB recognizes the specific priorities in the ILO Declaration on Fundamental
Principles and Rights at Work, ranging from freedom of association to the
elimination of discrimination in employment and occupation. The CLS in the
following chapters have been presented in a different order from the ILO
Declaration, reflecting the frequency in which they are taken up in ADB operations,
namely:
17
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(i)
effective abolition of child labor,
(ii)
elimination of discrimination in respect of employment and occupation,
(iii) elimination of all forms of forced or compulsory labor, and

(iv) freedom of association and the effective recognition of the right to
collective bargaining.
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Part 2
Core Labor
Standards
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Effective Abolition of
Child Labor
A. Nature of the Problem
Children enjoy the same human rights accorded to all people. But, lacking the
knowledge, experience or physical development of adults and the power to
defend their own interests in an adult world, children also have distinct rights to
protection by virtue of their age. One of these is protection from economic
exploitation and from work that is dangerous to the health and morals of children
or which hampers their development.
Millions of children worldwide are engaged in labor that is hindering their
education, development, and future livelihoods; many of them are involved in
the worst forms of child labor, those that cause irreversible physical or
psychological damage, or that even threaten their lives. This situation is an
intolerable violation of the rights of children; it perpetuates poverty and
compromises economic growth and equitable development. The effective
abolition of child labor is an essential element of achieving the ILO goal of
decent work for all women and men. It is also an essential element of ADBs
quest for poverty reduction as described in the ADB Annual Report 2000, subtitled
Develop a Child, Develop a Nation.
ILO has collected information worldwide about children working in different
occupations. The following summary highlights the overall situation:
In 2000, some 352 million children aged 517 years were involved in
economic activity in the world;18
246 million children were engaged in what the ILO defines as child
labor;
171 million of 246 million were estimated to be in hazardous situations

or conditions that qualify as worst forms of child labor;19
18
19
ILO. 2002. Every Child CountsNew Global Estimates on Child Labour. Geneva.
The estimates relate to numbers of child laborers globally in 2000 and are taken from ILO. 2002. A
Future Without Child Labour. ILO Global Report. Geneva. The worst forms of child labor are those
defined in Convention 182 and are described in its Article 3.
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8.4 million of 246 million were involved in the unconditional worst

forms of child labor;20
Some 127 million children aged 514 years are economically active in
the Asia and Pacific region, or 60% of the worlds 211 million
economically active children in that age group.
Although urban street children and children in factory work and export
manufacturing have received considerable attention, far larger numbers are
employed in agriculture and domestic service. Child labor is much higher in
rural than in urban areas, and three quarters of working children are engaged in
family enterprises.
B. ILO Conventions on Child Labor

There are two basic conventions on child labor adopted by the ILO, and one
adopted by the United Nations. The ILO Minimum Age Convention, 1973
(No. 138) and its accompanying Recommendation (No. 146) set the goal of
elimination of child labor, and the basic minimum age for employment or work
(in developing countries at 14 years of age or the end of compulsory schooling,
whichever is higher; and 15 or the end of compulsory schooling for developed
countries). The Convention sets a minimum age of 2 years younger for light
work, i.e., 12 and 13 years, respectively; and a higher minimum age for
dangerous or hazardous work (basically 18 years of age, but 16 in certain
circumstances). The Convention also has various other flexibility clauses.
The main issues in the Minimum Age Convention No. 138 are:
National PPolicy
olicy
olicy. Each State that ratifies Convention No. 138 undertakes
to pursue a national policy to ensure the effective abolition of child
labor.
Declaration of minimum age for admission to employment or work.

exceptions. After consultation with organizations of
Individual exceptions
employers and workers, the competent authority may allow exceptions
in individual cases in a very few areas, but not to the basic rules.
20
Internationally defined as slavery, trafficking, debt bondage, and other forms of forced labor, forced
recruitment of children for use in armed conflict, prostitution and pornography, and illicit activities.
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Hazardous work
work. The employment of young persons from the age of
16 years may be authorized, after consultation with organizations of
employers and workers, on condition that their health, safety, and
morals are fully protected; and they have received adequate specific
instruction or vocational training in the relevant branch of activity.
Light work is work which is not likely to be harmful to the health or

development of the young persons concerned and is not such as to
prejudice their attendance at school or their participation in vocational
orientation or training programs.
In June 1999, the ILO adopted the Worst Forms of Child Labor Convention
(No.182) and Recommendation No.190, which target the worst forms of child
labor as a matter of urgency. Convention No.182 applies to all branches of
economic activity and requires immediate action, regardless of the level of
economic development of the ratifying country. It is a clear statement of the
need to take immediate action to eliminate the intolerable conditions many
children face and to help them recover and lead healthy lives. The worst forms
of child labor are
(i)
all forms of slavery or practices similar to slavery, such as the sale and
trafficking of children, debt bondage, and serfdom and forced or
compulsory laborincluding forced or compulsory recruitment of
children for use in armed conflict;
(ii)
use, procurement, or offering of a child for prostitution, production of

pornography, or pornographic performances;
(iii) use, procurement, or offering of a child for illicit activities, in particular

for the production and trafficking of drugs; and
(iv) work that, by its nature or the circumstances in which it is carried out,
is likely to harm the health, safety, or morals of children.
In addition, the Convention on the Rights of the Child, adopted by the
United Nations in 1989, has been ratified by almost every country in the world,
and applies also to child labor.
Two basic conventions on child labor are well ratifiedC138 by 142 countries
and C182 by 158 as of 24 January 2006and both increasing fast.
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C. Why ADB Needs to Take Action on Child Labor

Abolition of child labor is not just another aspect of basic human rights; it is
increasingly recognized as being crucial to reducing poverty in the region. Child
labor is not only a consequence but also a cause of poverty. Despite short-term
benefits to families, child labor deprives the young of their childhood, causes
stunted growth, removes children from education and skills formation, and
deprives them of the possibility of studying and becoming more productive
adults. While it may be difficult to accomplish quickly in many countries, the
abolition of child labor is nevertheless a basic goal of development activities
(see, e.g., Box 2).
The principle of the effective abolition of child labor means ensuring that
every girl and boy has the opportunity to develop physically and mentally to her
or his full potential. Its aim is to stop all work by children that jeopardizes their
education and development. This does not mean stopping all work performed
by children. International CLS allow the distinction to be made between what
constitutes acceptable and unacceptable forms of work for children at different
ages and stages of development.
The principle covers both formal employment and the informal economy
where, indeed, the bulk of the unacceptable forms of child labor are to be
found. It covers family-based enterprises, agricultural undertakings, domestic
service, and unpaid work carried out under various customary arrangements
whereby children work in return for their keep.
The ADB Annual Report 2000, subtitled Develop a Child, Develop a Nation,
stated that if ADBs vision of a region free of poverty is to be realized, then
todays children need to be healthy, well nourished, and educated. Further,
addressing the needs of the youngest and the most vulnerable members of
society is the first and most vital step to economic and social development.
Investing in children strengthens the quality and productivity of the future labor
force; in other words, it is an investment in the next generation. Child labor
prevents this investment in the future by keeping the children of the poor out of
school and limits their prospects for training, upward social mobility, and,
ultimately, access to decent work as adults.21
21
ILO. 2001. Decent Work in Asia. Report of the Director General. 13th Asian Regional Meeting, August
2001. Bangkok.
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Box 2: Street Children

Street children often lack control over their situation and the power to
change it. On the street, they are vulnerable to considerable dangers and
problems. They are more likely than other children to contract HIV/AIDS;
more likely to engage in criminal behavior and substance use; more likely
to be forced into child prostitution or be victimized by human traffickers;
more likely to be without hope and engage in destructive and desperate
behavior. They are also likely to be engaged in hazardous work.
Although the list is harrowing, street children face an even graver, longterm threat to their rights and their future: the likelihood of never having
the opportunity to fulfill their potential.
Following the United Nations rights-based approach to development,
the Asian Development Bank (ADB) is committed to helping improve the
lives of citizens of its developing member countries (DMCs). ADB believes
that everyone should have access to basic education and primary health
services, and that people over the age of 15 years have the right to work to
support themselves and to receive fair reward for their labor. It also believes
people have the right to a degree of protection to external shocks. For
many street children, this access and these rights are too often distant
dreams.
Under the Social Protection Strategy (2001) and in consultation with its
DMCs, ADB is exploring ways to help street children.a Projects or project
components designed to help street children can fit with ADB grants and
loans in a number of areas, such as urban infrastructure, early childhood
development, education, rural infrastructure, social protection for vulnerable
groups, governance, and partnerships with nongovernment organizations.
a
ADB. 2003. Working with Street Children. Exploring Ways for ADB Assistance. Manila.
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With children and youth comprising 40% of DMC populations, child

protection is vital to the development of the region. It is also an essential element
of ADBs development mission.
This is also a basic aim of the ILO, whose International Program for the
Elimination of Child Labor (IPEC) is active in many countries in Asia and the
Pacific. This is ILOs largest and most widespread technical assistance program,
and there are significant advantages to ensuring ILO and ADB cooperate wherever
possible on this issue.
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Elimination of Discrimination Employment and Occupation
Elimination of Discrimination in
Discrimination in one form or another occurs in the world of work everyday,
throughout the world. Discrimination at work can be direct or indirect.
Discrimination is direct when regulations, laws, and policies explicitly exclude or
disadvantage workers on the basis of characteristics such as political opinion,
marital status or sex. Prejudices and stereotypes are normally at the heart of
direct discrimination (see Figure 1).
Figure 1. The Vicious Cycle of Discrimination and Inequalitya
Individual attitudes and

institutional structures,
procedures and practices
informed by stereotypes and
prejudices.
Discrimination
Socio-economic
inequalities
ILO. 2003. Time For Equality At Work. Report of the Director-General. International Labour
Conference, 91st Session 2003, Report I (B). Geneva.
At the same time, work is a privileged entry point from which to liberate
society from discrimination. Literally millions of people in the world are denied
jobs, confined to certain occupations or offered lower pay simply because of
their sex, their religion, or the color of their skin, irrespective of their capabilities
or the requirements of the job. At its worst, the discrimination that certain
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groups, such as women, ethnic or racial minorities, and migrants, face in the
labor market makes them vulnerable to such abuses as forced or compulsory
labor. Barriers to decent jobs often lead parents belonging to an ethnic group or
a denigrated caste to resort to the labor of their children to make ends meet.
A more equal distribution of job opportunities, productive resources and
assets, including education, between men and women of different races,
religions, or ethnic origins, contributes to higher growth and political stability.
The elimination of discrimination at work is an indispensable component of any
strategy for poverty reduction and sustainable development. It lies at the heart
of the ILO mandate and the concept of decent work, and it also concerns one of
ADBs strategic development objectives, namely gender and development.22
Discrimination at work may manifest itself in access to a job, while performing
a job, or through dismissal from a job. Individuals who face discrimination in
access to a job tend to continue experiencing discrimination while in the job, in
a vicious cycle of cumulative disadvantage. It applies to self-employment and
entrepreneurship as well as to employment.
Discrimination at work does not result just from isolated acts of an employer
or a worker or from a single policy measure. Rather, labor market processes,
practices and institutions either generate and reinforce, or break the cycle of
discrimination. Institutions and practices are not set in stone and can be changed
to promote equality.
In the 1980s and 1990s, the range of occupations in which women were
employed broadened in a majority of countries, especially in some OECD countries
(Organisation for Economic Co-operation and Development) and in several small
developing countries where occupational segregation was high. The opposite
trend was observed in some transition economies. It appears, however, that as
horizontal segregation declines, vertical segregation often tends to rise.
With regard to remuneration, the gender gap is still large, although it has
been decreasing in most places. Womens lower educational attainments and
intermittent career paths are not, contrary to conventional belief, the main reason
for gender differentials in pay. Other factors, such as occupational segregation,
biased pay structures and job classification systems, and decentralized or weak
collective bargaining, appear to be more important determinants of inequalities
in pay.
22
ADB. 1998. Policy on Gender and Development. Doc. R74-98. Manila.
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A common trend in the region is a shift from laws that prohibit discrimination
to laws that provide for a positive duty to prevent discrimination and promote
equality. These seem to be more effective in tackling the subtlest forms of
discrimination, such as occupational segregation. From ADBs perspective, public
policy, beyond legislation, is also helpful in addressing discrimination at work;
for example, public procurement policies can be a powerful device to combat
discrimination at work against members of minority groups or persons with
disabilities.
B. What is Discrimination in Employment and

Occupation?
Discrimination in employment and occupation takes many forms and occurs in
all kinds of work settings. But all discrimination shares a common feature
treating people differently because of certain characteristics, such as race, color,
sex, age, social origin or religion, which results in the impairment of equality of
opportunity and treatment. In other words, discrimination results in and reinforces
inequalities.
1. Elimination of Discrimination is Central to Social Justice
As indicated earlier, the elimination of discrimination at work is central to social
justice, which lies at the heart of ILOs and ADBs mandates. The elimination of
discrimination is an indispensable part of any viable strategy for poverty reduction
and sustainable economic development.
2. Proactive Approaches
In recent decades, countries have adopted laws against discrimination and have
undertaken proactive approaches to eliminate unequal treatment at work.
Enterprises and employers worldwide have modified recruitment and hiring
procedures and practices, wage-setting systems, and management policies to
ensure fairness at work. Trade unions have made equality their goal in collective
bargaining and in other actions, as well as in their internal representative
structures. Today, we are aware of the multiple links between discrimination
and poverty, social exclusion, and forced and child labor.
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3. A Specific Example: Gender Discrimination and Inequality in

Employment and Income-generating Activities
Inequalities in access to education and training, inequalities in access to
productive resources, reproductive responsibilities, and the stereotyping of gender
roles all constrain womens opportunities for entry or re-entry into the labor
force. Women remain disadvantaged and discriminated against in economic
structures and policies, in labor market structures, in all forms of productive
activity, and in access to economic resourcesincluding land, capital, credit,
and technology. Even when they are part of the labor force, women continue to
face various forms of discrimination and disadvantage that violate their labor
rights set out in CLS (Box 3). Womens contributions, especially in terms of
unremunerated work and other types of nonmarket activity, remain unmeasured,
unrecognized, or undervalued.
In spite of becoming fully committed members of the workforce, women,
unlike men, have to balance child-care responsibilities with employment demands.
Relative to men, women still face
(i)
unequal hiring standards;
(ii)
limited hiring opportunities;
(iii) unequal (limited) opportunities and choices for training, retraining,

and skill development;
(iv) unequal (lower) pay for equal work or work of equal value;
(v)
unequal (limited) access to productive resources;
(vi) segregation and concentration in a relatively small number of female

sectors and occupations, including in informal economy and homework;
(vii) less participation in decision making;
(viii) exposure to sexual harassment;
(ix) poor and unprotected working conditions;
(x)
fewer promotional prospects;
(xi) greater employment insecurity and less social protection;

(xii) more vulnerability to retrenchment;
(xiii) greater likelihood of being unemployed or poor; and
(xiv) greater family and household responsibilities.
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Box 3: Womens Participation in Road Construction and

Tree Planting in Bangladesh
The Third Rural Infrastructure Development Project (TRIDP: 19982005) in
Bangladesh is funded by the Asian Development Bank (ADB).a The objective
of TRIDP is to accelerate economic growth through infrastructure
development by creating access to economic activities in rural areas.
Infrastructure is considered a mans domain. However, due to poverty
in rural Bangladesh, women are gradually participating in construction
activities. As in most parts of the world, construction activities in Bangladesh
are implemented by private contractors who typically discriminate against
women laborers. Women are often allocated the least skilled tasks and are
paid lower daily wages than men for similar tasks. Thus, TRIDP conducted
orientation sessions and required 604 contractors to provide training to
female laborers so they can undertake more skilled tasks and enjoy equal
pay for equal work. The contractors were also required to ensure safety
and provide basic services like water and sanitation facilities to female
laborers.
Reaching wage parity for women in construction work has only been
possible under project requirements and close monitoring. In some cases,
women have been able to receive equal wages and have gained greater
access to higher skilled work.
a
ADB. 1997. Third Rural Infrastructure Development Project (TRIDP). Manila (Loan No. 1581). TRIDP
is also supported by the International Fund for Agricultural Development (IFAD), Swedish International
Development Cooperation Agency (Sida), Japan Bank for International Cooperation (JBIC), and
Government of Bangladesh.
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4. Regional Perspective23
a. Participation of Women and Men in the Labor Force
A primary indicator of gender gaps in terms of labor market activity is usually
the labor force participation rate (LFPR) of women and men. A recent ILO report24
on gender equality in the world of work in the Asia and Pacific region indicates
that womens LFPRs do vary considerably in the region but do not necessarily
depend on high levels of economic growth. In Bangladesh, Nepal, and Sri Lanka,
where womens LFPRs in 2000 were 67.4%, 58.3%, and 46.1%,25 respectively,
great improvements in womens LFPRs have occurred in spite of relatively low
levels of economic growth. Of course, in making comparisons among countries,
account must be taken of possible differences in definitions, of labor force
participation, unemployment, etc.26 Also, traditions in a society play a large role
in determining whether or not women consider themselves as integral to the
labor force. However, given these anomalies, it is still worth noting that LFPRs
for women are generally significantly lower than those for men, ranging from
77.3% for women and 86.9% for men in East Asia, 64% for women and 85%
for men in Southeast Asia, to 46.5% for women and 85.7% for men in South
and Central Asia, and 41.6% for women and 81.2% for men in West Asia. In
the Pacific region, womens LFPRs range from 38% in the Fiji Islands to 67% in
Australia and 81.9% in the Solomon Islands.
In the high-growth countries, women are underrepresented in both
agriculture (except in Indonesia, Japan, Republic of Korea, and Thailand) and
industry, but overrepresented in services. In low-growth countries and countries
in transition, women are overrepresented in agriculture but underrepresented
in industry and services. However, high-growth countries seem to enjoy lower
gender differentials in LFPRs. Gender differentials are, however, higher in lowgrowth countries and have decreased less.
23
24
25
26
Information taken from Banerjee, Nirmala. 2002. Equality in Economic Activities and Employment. ADB/
ILO RETA project 5887.
ILO. 1999. Toward Gender Equality in the World of Work in Asia and the Pacific. Geneva. Technical
report for discussion at the Asian regional consultation on the Follow-up to the fourth World Conference
on Women, Manila, 68 October 1999.
ILO. 2000. World Labour Report 2000. Income Security and Social Protection in a Changing World.
International Labour Office. Geneva.
For example, in Bangladesh, the labor force includes all those who may have worked even for 1 hour per
day. This is not true of the estimates for all countries.
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b. Characteristics of the Female Labor Force

i. Overrepresentation in Unremunerated Work
The ILO report on gender equality in the Asia and Pacific region and country
level research clearly indicate that a large proportion of womens work, be it in
the formal or informal economy, is unremunerated, because it is generally
unaccounted for in the economy.
ii. Unemployment and Underemployment
In the region, unemployment rates for women tend to be higher than for
men. For example, in Bangladesh, research indicates that in the ready-made
garment industry, once the special concession given to the industry was taken
away, the main burden of job loss would have to be borne by the women workers.
Apart from the constraints that women face in terms of access to formal economy
employment and remunerative work, they also face disadvantages and
discrimination in the labor market, which makes them more vulnerable to crises
than men, as in the Asian financial and economic crisis. In some of the worst hit
industries of Thailand, the share of women in the total of jobs lost during the
crisis was 7090%.
Another important characteristic of womens employment is high levels of
underemployment in terms of the hours worked. In some countries,
underemployment is a more serious problem for women than for men and
underemployment of women seems to have increased for a number of countries
during the 1990s. In Bangladesh, while there was little difference in male and
female unemployment rates, the underemployment situation was quite
different: male underemployment rates were still less than 10% when converted
into unemployment equivalence, but for women the corresponding figure was
over 40%.
iii. Differences in Wage Rates and Earnings: Wage Differentials
While womens overall participation in the labor force has been increasing,
the continuing gender wage gap remains a major barrier to equality of men and
women in the workplace. A comprehensive overview on the gender wage gap
in the region is difficult because wage data by gender are very scarce across
countries. While it can be safely stated that in the Asia and Pacific region, women,
overall, earn less than men, United Nations Development Fund for Women
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(UNIFEM) data of 1997 on six Asian countries show that female wages as a
percentage of male wages are generally higher in the industry and services sectors
(e.g., Republic of Korea, 62%; Singapore, 76%; Sri Lanka, 90%; and Thailand,
72%) than in the manufacturing sector (Republic of Korea, 56%; Singapore,
60%; Sri Lanka, 85%; and Thailand, 68%).27
Country-level research conducted in 2002 in Bangladesh, Nepal, Philippines,
and Thailand gives some further indications about the wage differentials in the
region.28 In Bangladesh, data for 1995/96 indicate that womens average rates
of pay in both the agricultural and the nonagriculture sectors were around 60%
or less compared to mens pay. In the rural/agriculture sector of Bangladesh, the
ratio of male to female wage rates went up from 1.36 in 1984/85 to 1.76 in
1995/96. When men and women did the same kind of jobs, there was still a
difference in pay favoring men, but of a much smaller degree. In urban
nonagricultural occupations, the same ratio over that period fell from 2.38 to
1.67. In the public sector, wage-based discrimination was mostly closely related
to womens relative access to high-level jobs. In the private organized sector
and particularly in the female-dominated garment industry, data showed that
at low levels of education of both men and women, there was a difference in
male/female wages favoring men. However, at higher levels of education, the
wages for women were higher than those of men.
In Thailand, the average wages of women in the private sector were about
8088% of male wages. In the public sector, the difference in average wages
was small and had gone down during the previous 4 years.29 This, however, did
not mean that women had an equal share of jobs at all rungs of the job ladder
in the civil service.
In the Philippines, while discrimination on grounds of sex is actively forbidden
in public sector jobs, there is still a shortfall in womens relative earnings. Despite
the fact that womens educational attainments are relatively higher than mens,
only younger urban women (those below 25 years of age) enjoy some advantage
over men in earnings from clerical occupations. In older age groups when,
presumably, all workers have earned some promotions, the difference in male
27
28
29
UNIFEM. 2000. Progress of the Worlds Women 2000. UNIFEM Biennial Report. New York.
Rahman, Rushidan Islam. 2002. Gender Equality in Economic Activities and Employment in Bangladesh.
Country report for ILO/ADB RETA project 5887.
Pawada Tonguthai. 2002. Gender Equality and Decent Work in Thailand. Country report for ILO/ADB
RETA project 5887.
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advantage in earnings is bigger, indicating that women do not go as far as men

up the promotional ladder. Even in professional occupations where many of the
workers would presumably be self-employed, the female mean earnings are
70% or below compared to male earnings. Another, rather surprising, factor is
that married women fare worse than unmarried women. The indication in the
report that, overall, over the 1990s, differentials in male and female earnings
had been shrinking in the Philippines, could be partly due to a new law that has
raised wages of public sector workers at lower ranges.
In Nepal, there was a marked shortfall in womens wages compared to
mens wages in agriculture; but in construction, the difference between the
two was small. Interestingly, male wages were significantly higher in the more
developed areas, indicating that where other employment opportunities are
available, they push up the opportunity cost of male labor much more than
womens. In the organized sector of Nepal, minimum wages fixed for women
are higher than for men in several industries, including agriculture, while for
mining and quarrying they are usually on par with those of men. But maximum
wage rates in almost all industry groups were significantly lower for women.30
iv. Concentration in the Informal Economy
While both men and women are employed in informal economy and homebased jobs throughout the region, women take up the larger share. For example,
in both Bangladesh and Nepal, about 90% of women workers against about
7080% of male workers are involved in informal economy and home-based
jobs. In Bangladesh, there is also a significant difference in the distribution of
male and female workers between formal and informal jobs. In the public sector,
the ratio of female to male workers is 8.4, 24.2 in the private formal sector, but
69.4 in the informal sector. However, even in high-growth countries, women
are still overrepresented in the informal sector according to the ILO World Labour
Report 2000.31 Estimates of the informal economy in a few countries in the
region show that the gender gapwhich demonstrated the relative over- or
underrepresentation of women in a particular economic activityis highest in
Bangladesh (by 60%) and lowest in Thailand (by 7%).
30
31
Shrestha, Ava Darshan. 2002. Gender Equality in Economic Activities and Employment in Nepal. Country
report for ILO/ADB RETA project 5887.
ILO. 2000. World Labour Report 2000. Income Security and Social Protection in a Changing World.
International Labour Office. Geneva.
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5. Other Forms of Discrimination in the Labor Force

It is gender discrimination that has attracted the most recent attention and
consequently more data are available on it. But other bases for discrimination are
also widespread throughout the region, and must be kept in mind in ADBs work.
Other prohibited grounds of discrimination appear in various international
instruments and in national legislation. These include race, color, religion, political
opinion, national extraction and social origin (i.e., caste), all of which are covered
by ILO Convention No. 111. Other international conventions add coverage of
such characteristics as language, birth, or other status (e.g., whether a person
was born in wedlock), age, health or HIV/AIDS status, and others.
Many of the negative effects of gender-based discrimination mentioned
above apply also to these other forms of discrimination, although there are
differences. While other forms of discrimination are unlikely to involve the double
work-and-family burden known by women almost everywhere, ethnic and
religious discrimination can deprive entire regions from access to education and
training. It can determine the kinds of investments governments make in these
regions and can, of course, lead to civil unrest and internal conflict. In some
countries, governments decide not to keep statistics on race or ethnicity, which
can further complicate the process of identifying and combating these forms of
discrimination.
C. ILO Conventions on Discrimination in Employment and

Occupation
The first binding international instrument to be adopted with the specific objective
of promoting gender equality and eliminating discrimination was the ILO Equal
Remuneration Convention, 1951 (No. 100), along with its accompanying
Recommendation (No. 90). Upon their adoption, it was recognized that equal
pay could not be achieved without the elimination of discrimination in all areas
of employment and that other grounds of discrimination also should be the
subjects of prohibition.
The main issues in the Equal Remuneration Convention No. 100 from 1951
are:
Remuneration: the ordinary, basic or minimum wage or salary and

any additional emoluments whatsoever payable directly or indirectly,
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whether in cash or in kind, by the employer to the worker and arising

out of the workers employment.
equal remuneration for

For the purpose of the Convention, the term equal
men and women workers for work of equal value refers to rates of
remuneration established without discrimination based, directly or
indirectly, on sex.
Where differential rates between workers correspond, without regard

to sex, to differences in the work to be performed, as determined by
an objective appraisal, these must not be considered as being contrary
to the principle of equal remuneration.
These instruments were shortly followed, in 1958, by the adoption by the

ILO of the Discrimination (Employment and Occupation) Convention (No. 111),
and Recommendation No. 111, which address all forms of discrimination
concerning employment and occupation.
The main issues in Convention No. 111 are:
Discrimination: any distinction, exclusion or preference made on the

basis of race, color, sex, religion, political opinion, national extraction
or social origin (or such other ground as may be specified by the State
concerned), which has the effect of nullifying or impairing equality of
opportunity or treatment in employment or occupation.
Each State that ratifies the Convention undertakes to declare and pursue
a national policy designed to promote equality of opportunity and
treatment with a view to eliminating any discrimination in respect of
(i) access to vocational training, (ii) access to employment and to
particular occupations, and (iii) terms and conditions of employment.
In particular, it has to
-
seek the cooperation of employers and workers organizations

and other appropriate bodies in promoting the acceptance and
observance of its policy;
repeal any statutory or administrative provisions inconsistent with

the policy;
enact legislation and promote educational programs to secure its

acceptance;
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ensure observance of the policy in employment, vocational

guidance, vocational training and placement services under the
direction of a national authority; and
indicate in its annual reports on the application of the Convention

the action taken in pursuance of this policy.
D. Why ADB Needs to Take Action on Discrimination in

Gender, ethnic, religious, or other biases prevent a large section of the workforce
from operating optimally. At one time, labor-surplus countries were encouraged
to specialize in labor-intensive industries employing large numbers of low-skilled
workers, mainly women. However, for a sustained and steady growth over long
periods, a country has to build its human capital and move to industries and
services using more sophisticated skills.
In developing countries, a large part of the domestic resources (workers,
land, and capital) is used in activities of the self-employed or family enterprises,
and these activities together produce a significant section of the domestic
product. Increasing the productivity of these activities and the women workers
engaged in them is essential for the country to reach a higher rate of economic
growth.
For poor households, the only available productive resource is the labor of
its members. Unless they can find work that is sufficiently remunerative, the
household remains mired in poverty. One consequence of this is to compel
children of the households to join the workforce. As discussed in the section on
child labor, this means that children are unjustly denied their childhood and
their chances of a better future. Also, there are many households where women
are the main earners. Yet, often, policymakers and employers ignore this, viewing
women as supplementary earners, primarily engaged in household activities.
Economic growth alone will not eradicate discrimination, nor will it
necessarily provide equality of opportunity and treatment. Moreover, gender
neutral action or intervention will not automatically promote equality and may
even perpetuate discrimination. Similarly, action that does not take into account
the previous injustice and exclusion of members of ethnic, religious or castebased groups will often leave them mired in poverty and in a permanent state
of exclusion.
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Elimination of All Forms of Forced or Compulsory Labor
Elimination of All Forms of

Forced or Compulsory Labor32
Forced labor is universally condemned. Yet the elimination of its numerous
formsold and new, ranging from slavery and debt bondage to human
traffickingremains one of the most complex challenges facing local
communities, national governments, employers and workers organizations,
and the international community. It is revealing ugly new faces alongside the
old. Traditional types of forced labor, such as chattel slavery and bonded labor,
still exist. In economic contexts, disturbing new forms, such as forced labor in
connection with the trafficking of human beings, are now emerging. From the
perspectives of ILO and ADB, forced labor contravenes their overarching objectives.
The abusive control of one human being over another is the antithesis of decent
work and impedes poverty reduction. Clearly, there is a need to identify any broad
patterns of forced labor in the region as well as country-specific data on it. Such
information is needed to assist ADB decision makers in their deliberations on
how best to tackle the problem, assess priorities, and design and target
interventions against forced labor.
Vital questions include
(i)
How many people are affected by forced labor today?
(ii)
Where are they?
(iii) Who are the main victims?

(iv) How exactly does forced labor operate differently for men, women,
boys, girls, youth, migrant workers, and various racial groups?
(v)
What are the profiles of those benefiting directly from placing others
in human bondage?
32
Much of the following information in this section is taken from ILO. 2001. Stopping Forced Labour. ILO
Global Report. Geneva.
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The first minimum global estimates of the numbers of people in forced

labor were given in the ILO second Global Report on forced labor.33 About
12.3 million people globally are victims of forced labor, more than 2.4 million
of them have been trafficked, 9.8 million are exploited by private agents, and
2.5 million are forced to work by the state or by rebel military groups. The
majority of forced labor in the world is in Asia and the Pacific (9.5 million).
It is not always possible to give an accurate estimate of the numbers affected
on a national/local scale; or to take into account in detail the diverse experiences
of different categories as a basis for targeted action. The reason for this is that
forced labor is inevitably in the illicit, underground economy, thus tending to
escape national statistics. Further, those statistics that are available are not
sufficiently robust to get a true picture of forced labor.
Even without a full statistical picture or in-depth socioeconomic analysis,
there is enough evidence to detect a serious problem. Precise statistics are not
necessary to enable ADB efforts to combat it in project activities.
There are many different types of forced labor, but they all share two common
features: the exercise of coercion and the denial of freedom. The coercive practices
of forced labor first came to be associated with colonial regimes of the early
twentieth century and remnants of serfdom. Then came the concentration camps,
labor camps, and other forms of compulsory labor. With the contemporary
consolidation of democratic regimes, together with more open economies and
renewed commitments to fight poverty and transnational crime, there is renewed
hope that forced labor can be relegated to the past.
Some aspects of forced and compulsory labor remain tenacious. Some involve
slavery-like systems such as debt bondage, a form of forced labor most often
found in Asia. Traditionally this has been found in rural areas, above all in
agricultural systems where landowners have been the only source of financial
credit. Yet, there is also evidence that new forms of bondage are emerging both
within and outside agriculture, affecting migrant workers and workers in new
frontier development areas as well as in urban domestic households, and
sometimes involving bondage over a relatively short period rather than a lifetime.
33
ILO. 2005. A Global Alliance against Forced Labor. ILO Global Report. Geneva.
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B. What is Forced or Compulsory Labor?

Paradoxically, there is still some uncertainty among countries as to whether certain
practices do or do not constitute forced labor. It is important, therefore, to
understand some of the basic elements of forced labor (Box 4). Such information
helps to assess the scope of the problem of forced labor and assist in decision
making. It will also help in discussions with all stakeholders and may focus
attention on any covenants or conditions attached to a loan.
The diverse forms of forced labor today include
slavery and abduction,
compulsory participation in public works projects,
forced labor in agriculture and remote rural areas (coercive

recruitment systems),
domestic workers in forced labor situations,
bonded labor,
forced labor imposed by the military,
forced labor in the trafficking of persons, and
some aspects of prison labor and rehabilitation through work.
Certain groups, such as women, ethnic or racial minorities, migrants, children,

and above all the poor, are particularly vulnerable to these contemporary forms
of forced labor. Situations of armed conflict can also compound the problem.
1.
Slavery and Abductions
The physical abduction of persons for forced labor purposes is certainly not as
common in the modern world as it was before slavery became outlawed.
However, a few contemporary cases have been detected. Abductions may take
place in the context of tribal conflicts, traditional national rivalries, or in outand-out armed conflict.
2. Compulsory Participation in Public Works
In a number of societies, able-bodied individuals have been required to participate
in certain aspects of community or even national development. In any discussion
of forced labor and development, the role of traditional authority systems is
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Box 4: ILO Conventionsa on Forced or Compulsory

LaborDefinitions
Forced labor is a legal term as well as an economic phenomenon. Clearly it
is not possible to respect, promote, and realize the principle of the
elimination of all forms of forced or compulsory labor without knowing
what the phrase means. The full definition contains exclusionsbut the
basic idea was set out in the first International Labour Organization (ILO)
convention on the subject, the Forced Labour Convention, 1930 (No. 29)
(Article 2(1)): The term forced or compulsory labor shall mean all work or
service which is exacted from any person under the menace of any penalty
and for which the said person has not offered himself voluntarily. The
penalty referred to need not be in the form of penal sanctions, but might
take also the form of loss of rights or privileges.
There are also exceptions allowed in the ILO conventions. Any work or
service under compulsory military service laws is exempt, as long as it is for
purely military purposes. Work or service that is part of the normal civic
duties, such as jury duty, is not prohibited; nor is compulsory work in an
emergency, or communal work that is an obligation of the whole community.
Prison labor is exempt from the definition, but only if it is imposed as a
consequence of conviction in a court or law, and is carried out under the
supervision of a public authority; and prison labor may not be hired out to
a private company or individual without the consent of the prisoner. Forced
labor for such reasons as mobilizing for economic development, punishment
for strike participation, or as a means of discrimination, is also prohibited.
a
The key ILO conventions on forced labor, which are included in the CLS, are the Forced Labour
Convention, 1930 (No. 29), the Abolition of Forced Labour Convention of 1957 (No. 105), and the
Worst Forms of Child Labour of 1999 (No. 182). Other international conventions include the United
Nations 1956 Supplementary Convention of the Abolition of Slavery, the Slave Trade, and Institutions
and Practices Similar to Slavery; and the United Nations Protocol to Prevent, Suppress and Punish
Trafficking in Persons, especially Women and Children, 2000.
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bound to arise. Many communities have a long-standing tradition of participatory

voluntary labor, including the reciprocal arrangements in which families assist
each other in agricultural and other tasks. However, designating practices as
minor communal services or normal civic obligations, which are exempt
from the definition of forced labor, should not mask situations that are, in fact,
forced labor. In parts of Asia, there have been requirements for compulsory
participation in public works. It has sometimes been argued that there is cultural
acceptance of this practice as a contribution to rapid economic development,
but this has not been considered an acceptable viewpoint.
3. Forced Labor in Agriculture and Remote Rural Areas:
Coercive Recruitment Practices
Systems of peonage and serfdom have for the most part been successfully
eradicated over recent decades. Other forms of coercion and compulsion have,
however, continued to exist. Rural workers can still be locked into debt through
advances made by recruiting and transporting agents, who are often independent
contractors supplying a labor force for landowners or other forms of rural
enterprise. In isolated areas, workers have no choice but to incur further debt
for food and other necessities supplied by the landowner or contractor, or
accepting goods in lieu of wages.
Serious problems may exist in remote areas; for example, where tropical
forests have been opened up for agricultural, mineral, or forestry development.
The persons susceptible to abuse may be indigenous and tribal peoples.34 A
common feature tends to be that workers recruited to work there end up very
far from home, often in inhospitable and inaccessible tropical areas where
government institutions do not exist. This isolation increases their vulnerability
to abuse, and lessens the chance of effective redress through formal sector law
enforcement institutions, trade union representation, or community networks.
Thus, the problems of coercion are often connected with seasonal labor
migration, both within and across national frontiers. The migration may be to
jobs in agriculture, forestry, processing of food products or materials, or domestic
work, but all risk ending up in debt bondage.
34
Policy guidelines are given in: ADB. 2004. Indigenous Peoples. Operations Manual, Section F3. Manila,
and ILO. 1989. Indigenous and Tribal Peoples Convention (No. 169). Geneva.
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4. Domestic Workers in Forced Labor Situations

Working largely in private households, domestic workers experience an
unparalleled degree of vulnerability. Domestic work per se is not forced labor,
but it can degenerate into forced labor when debt bondage or trafficking is
involved, or when the worker is physically restrained from leaving the employers
home or has his or her identity papers withheld. In a variety of countries, the
plight of female domestic workers in forced labor situations has been well
reported. The worst situations involve violence, sometimes extending to rape
and/or torture. When the domestic workers are international migrants, the
problems are often compounded further. And in many of these countries,
domestic work is omitted from the coverage of national labor law.
5. Bonded Labor
Another form of forced labor that is still extensive in the region is bonded labor.
The term bonded laborer refers to a worker who renders service under
conditions of bondage arising from economic considerations, in particular
indebtedness through a loan or advance. Where debt is the root cause of the
bondage, the implication is that the worker (or dependents or heirs) is (are) tied
to a particular creditor for a specified or unspecified period until the loan is
repaid. Even where bonded labor has been declared unlawful, legal intervention
is required to enforce this legislation, and to provide for sanctions against those
landowners or other employers who hold their workers in bondage. Where
cases of bonded labor are found, it is important that supplementary measures
are provided, including economic assistance and rehabilitation, to assist the
released workers to earn a livelihood so that they do not fall back into a situation
of bondage.
The identification of bonded laborers has presented certain difficulties
throughout the Asian region in particular (Box 5).
The legal definitions of both a bonded laborer and a bonded labor system
may be considered clear enough in such countries as India and Pakistan, which
have adopted specific legislation on the subject, but that first step remains to be
taken in other countries where the problem also persists. However, identification
and rehabilitation of bonded laborers often lags far behind the formal law, and
its continued existence in fact is a real obstacle to economic development.
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Box 5: Sind Rural Development Project

The Sind Rural Development Projecta in Pakistan seeks to improve the social
status and income of the rural poor in the project area. Concerning labor in
the area, special components focus on governance and legal support (e.g.,
the Sind Tenancy Act, 1950, and the Bonded Labor System (Abolition) Act,
1992), as well as on providing haris,b marginal farmers, and agricultural
laborers access to credit through community-based organizations in order
to avoid bondage with their landlords.
a
ADB. 2002. Report and Recommendation of the President on a Proposed Loan for the Sind Rural
Development Project ($50,000,000). RRP: PAK32024-01. Manila.
The Sind Tenancy Act, 1950 uses the term hair and tenant synonymously defining a tenant as a
person who personally cultivates the land of another person (the landlord).
6. Forced Labor Exacted by the Military

In contrast to situations in which governments are increasingly acknowledging
the existence of various forms of forced labor and making attempts to address
them, a few countries basically reject the idea that there is such a problem. This
perception has often coincided with the exaction of forced labor by the military
and related authorities. In these cases, forced labor had been exacted for
portering; the construction and maintenance of military camps; other work in
support of the military; work on agriculture, logging, and other production
projects undertaken by the authorities or the military; the construction and
maintenance of roads, railways, and other infrastructure work; and a range of
other tasks. As this is easily subject to abuse, it has sometimes resulted in sexual
slavery as well, for the benefit of the military.
7. Forced Labor Related to Trafficking in Persons
The broader phenomenon of trafficking in persons often has forced labor aspects.
It involves men and boys, but more so women and girls.35 Affecting richer and
35
See also ADB. 2003. Combating Trafficking of Women and Children in South AsiaRegional Synthesis
Paper for Bangladesh, India, and Nepal. Manila; and ADB. 2003. Combating Trafficking of Women
and Children in South AsiaGuide for Integrating Trafficking Concerns into ADB Operations. Manila.
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poorer countries alike, it is a global phenomenon. The points of origin may be

the poorer countries, and often the most deprived rural areas within these
countries. The main destinations may be the urban centers of the richer countries
and the capitals of developing and transition countries. The movement of
trafficked persons is highly complex and varied. While the media focus on
trafficking for the sex industry, persons are often trafficked for other purposes
that may also involve forced laborcoercion involving agricultural migrant
workers has been detected on several continents. Domestic workers, factory
workers, and particularly those in the informal sector, can all become the victims
of this phenomenon.
A key aspect of trafficking is the gender dimension of the migratory flow,
and the rapid rise in womens labor force participation. The feminization of
migration has been put forward as a major determinant of labor trafficking.
Notably in Asia, women have been moving more in their own right as
autonomous economic migrants, rather than as dependents. Sending countries
have been mainly Indonesia, Philippines, Sri Lanka, and Thailandand recently
also the Peoples Republic of China, Lao Peoples Democratic Republic, and
Myanmarwith recipient locations including Hong Kong, China; the Gulf
Cooperation Council states, in particular Kuwait and Saudi Arabia; Brunei
Darussalam; Japan; Malaysia; and Singapore.
8. Prison-linked Forced Labor
Prison labor is exempted from the definition of forced labor under Convention
No. 29, except in specified circumstancesotherwise put, it is permitted forced
laborif
(i)
it is as a consequence of a conviction in a court of law, meaning that

administrative imprisonment imposed by government officials
without a courts involvement is not exempted. This relates, among
other situations, to imprisonment for political offenses without a proper
trial;
(ii)
it is carried out under the supervision and control of a public authority,

which raises questions in the growing number of situations where
prisons are privately owned and operated, or where prisoners work
for private companies without detailed supervision by a public authority;
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(iii) the person is not hired to or placed at the disposal of private

individuals, companies or associations, meaning that while it is
perfectly in order for prisoners to work for private enterprise, there has
to be an element of consent in this relationship to avoid prisoners
being made into a cheap workforce under compulsion, without the
protections normally available to workers; and
(iv) The prisoners have not been jailed as a means of political coercion or
education or as a punishment for holding or expressing views, or for
participating in strikes.
For ADB, two kinds of situations are the most relevant. In the first case,
covered in sections (i) and (iv) above, in which prisoners may be assigned to
work in ADB projects, there is a need to ensure that they are not political prisoners
who have been jailed without trial for their political views, or are not working
under a re-education through labor regime.
As concerns prison labor for private entities, there is a great value in
rehabilitation through training and integration into the private workforce, and
in private enterprise forming partnerships with the government to provide
constructive work for prisoners. The concerns that arise are simply that prisoners
should work under government supervision to prevent possible abuses against
a captive workforce, and the abuses by exploitation of prisoners for the private
profit of corrupt officials should not be allowed.
C. ILO Conventions on Forced or Compulsory Labor

The ILO definition of forced labor comprises two basic elements: the work or
service is exacted under the menace of a penalty, and it is undertaken involuntarily.
In its original Convention on the subject, the Forced Labour Convention,
1930 (No. 29), the ILO defines forced labor for the purposes of international
law as all work or service which is exacted from any person under the menace
of any penalty and for which the said person has not offered himself voluntarily.
The other fundamental ILO instrument, the Abolition of Forced Labour
Convention, 1957 (No. 105), specifies that forced labor can never be used for
the purpose of economic development or as a means of political education,
discrimination, labor discipline, or punishment for having participated in strikes.
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This Convention clarifies certain purposes for which forced labor can never be
imposed, but does not alter the basic definition in international law.
However, certain types of labor are excluded from the scope of Convention
No. 29:
work of a purely military character;
work that forms part of the normal civic obligations of citizens;
work as a consequence of a conviction in a court of law, provided that

(i)
said work is carried out under the supervision and control of a

public authority;
(ii)
the said person is not hired to or placed at the disposal of private

individuals, companies or associations;
work in cases of emergency (war, calamity, and in general any

circumstance that would endanger the existence or the well-being of
the population); and
minor communal services (services performed by the members of the

community in the direct interest of the said community).
D. Why ADB Needs to Take Action on Forced or

Compulsory Labor
Forced or compulsory labor makes headlines almost daily in stories of trafficking
in persons, imprisonment in sweatshops, and the slavery-like conditions on some
plantations and even in private homes. Much of the abuse occurs in the Asia
and Pacific region and includes several of ADBs DMCs.
Aside from activities carried out by the ILO in different regions, which are
indirectly concerned with the objective of eliminating forced labor, its eradication
per se has not in the recent past been a priority concern for international technical
cooperation by the organizations in the United Nations system and international
agencies, such as ADB, concerned with economic and social development or
with the promotion and protection of human rights. Child labor and labor
trafficking, along with the promotion of microcredit schemes, have been perhaps
the only areas where there has been a concerted international effort to combat
forms of forced labor in recent years. Fortunately, this picture is changing, with
more targeted technical assistance projects starting that either directly or indirectly
include the concepts of CLS.
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Freedom of Association and the Effective Recognition of the Right to Collective Bargaining
Freedom of Association and

the Effective Recognition of
the Right to Collective
Bargaining
Freedom of association and the effective recognition of the right to collective
bargaining are the foundations for a process in which workers and employers
make claims upon each other and resolve them through a process of negotiation
leading to collective agreements that are mutually beneficial. In the process,
different interests are reconciled. For workers, joining together allows them to
have a more balanced relationship with their employer. It also provides a
mechanism for negotiating a fair share of the results of their work, with due
respect for the financial position of the enterprise or public service in which they
are employed. For employers, free association enables firms to ensure that
competition is constructive, fair, and based on a collaborative effort to raise
productivity and conditions of work.
A generally positive recent trend has been widespread recognition of the
importance of social dialogue to economic and social development and good
governance. In the context of the ILO, the term social dialogue covers all types
of negotiation, consultation, or exchange of information between, or among,
representatives of governments, employers, and workers, on issues of common
interest relating to economic and social policy. Freedom of association and the
right to bargain collectively are essential enabling conditions for, as well as
elements of, the proper functioning of social dialogue. Considering ADB activities,
social dialogue is similar to participation. Participation is an important tool in
preparing CSPs, projects, and programs.
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A. What are Freedom of Association and the Right to

Collective Bargaining?36
The ILO Convention on Freedom of Association and Protection of the Right to
Organize, 1948 (No. 87), is always cited together with the Right to Organize
and Collective Bargaining Convention, 1949 (No. 98). These are referred to as
the twin conventions on freedom of association and collective bargaining. They
give workers their most fundamental rightsthe right to form and join
organizations of their own choosing and to promote and defend their economic
and social interests. These conventions give the same rights to employers.
While Convention 87 gives workers the right to form and join trade unions,
Convention 98 consolidates this basic right with guarantees and safeguards for
trade unions to operate freely and independently of governments and employers.
Further, Convention 98 lays down the key principles of the right to organize and
bargain collectively. It provides the protection that workers and their organizations
need against acts of anti-union discrimination and of interference by either public
authorities or employers. It also lays down the obligations of ratifying states to
respect and promote freedom of association and collective bargaining. Therefore,
not only does this Convention establish the right of a trade union to exist, it also
defines its purposeto negotiate with employers with a view to the regulation
of terms and conditions of employment by means of collective agreements.
Freedom of association is considered the most fundamental of labor
standards within ILO. Even prior to the 1998 Declaration on Fundamental
Principles and Rights of Work, this standard as defined in ILO conventions 87
and 98, was thought vital enough that all member states could be subject to
complaints on the principle they embodied, regardless of ratification status.
Freedom of association applies to both employers and workers in formal
and informal economies. It is considered an enabling right in that it allows
key actors in the economy to join together to pursue their interests. The ILO
Committee on Freedom of Association examines complaints on the principles of
freedom of association whether or not the relevant ILO conventions (87 and 98)
have been ratified by the country in question. This tripartite committee oversees
36
Much of the following information in this section is taken from the ILO. 2000. Your Voice at Work. ILO
Global Report. Geneva. This was the first global report issued under the ILO Declaration on Fundamental
Principles and Rights at Work. The second global report on freedom of association and collective
bargaining, Organizing for Social Justice, was presented at the International Labour Conference in June
2004.
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compliance with the fundamental principles of freedom of association. After

investigating the complaint, the Committee reports to the ILO Governing Body
which may request action by the government concerned, and follow up whether
this action has been taken.37
B. Special Areas of Concern

The debate surrounding CLS is highly relevant for ADB under its broader mandate
and mission of poverty reduction and economic and social development. Indeed,
access to safe and productive work is a critical factor in reducing poverty, and
the legal framework surrounding employment is a central issue for job creation
and worker protection.38
The core standards on freedom of association and the effective recognition
of the right to collective bargaining have often been considered by international
financial institutions to be more controversial than other CLS. The reason for
this in ADB comes from its Charter: Article 36 says shall not interfere in the
political affairs of any member However, at the same time, ADB is committed
to comply with all CLS in its lending activities39 based on sound economic
considerations. ADB can attach conditions of CLS/ILS to individual loans, but
only to the extent that lack of compliance with the standard undermines the
economic development objective of its programs. Additionally, such conditions
must not interfere in the domestic political affairs of the borrowing country.
While acknowledging that the relationship between collective bargaining
and economic development is complex, ADB encourages the development of a
positive role for labor market actors, especially workers and employers
organizations, in its DMCs. Supported by research and training activities, dialogue
with trade unions and tripartite arrangements are encouraged by ADB at the
national level. ADB is introducing a number of initiatives, including this handbook,
to ensure that staff better understand unions and management and their role in
supporting CLS, are able to have effective discussions with social partners to
meet development goals, and understand that organized labor supports strong,
37
38
39
Comments from the Freedom of Association Committee are available through ILOLEX
(www.ilo.org/ILOLEX/English/)
World Bank. 2002. Core Labor Standards Toolkit. Washington, DC.
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independent unions and employers organizations. Even where they do not yet
exist, ADB should take no action that would make organization and collective
bargaining more difficult.
C. ILO Conventions on Freedom of Association and the

Freedom of association is the most basic of all principles underlying the work of
the ILO. In addition to recognition of the principle of freedom of association in
the ILO Constitution and the 1944 Declaration of Philadelphia that was
incorporated into it, two conventionsadopted in 1948 and 1949, respectively
set out the essential elements of freedom of association, the right to organize,
and the importance of collective bargaining.
1. Freedom of Association and Protection of the Right to Organize
Convention, 1948 (No. 87)
This Convention establishes the right of all workers and employers to form and
join organizations of their own choosing without prior authorization, and lays
down a series of guarantees for the free functioning of organizations without
interference by the public authorities. The essence of the Convention 87 is the
following:
Workers and employers have the right to establish and to join

organizations of their own choosing for furthering and defending their
interests without previous authorization.
The public authorities have to refrain from any interference that would
restrict this right or impede the lawful exercise thereof.
In exercising the rights provided for in the Convention, workers and

employers and their respective organizations have to respect the law
of the land. However, the law of the land must not be so applied as to
impair the guarantees provided for in the convention.
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2. Right to Organize and Collective Bargaining Convention, 1949

(No. 98)
This Convention provides for protection against anti-union discrimination,
for protection of workers and employers organizations against acts of
interference by each other, and for measures to promote and encourage collective
bargaining. Convention 98 includes the following issues:
Workers must be protected against acts of anti-union discrimination,

such as
-
making their employment subject to the condition that they shall

not join a union or shall relinquish membership thereof;
causing the dismissal or otherwise prejudice a worker by reason

of union membership, participation in union activities outside
working hours, or, with the consent of the employer, within
working hours.
Workers and employers organizations must enjoy adequate protection

against any acts of interference by each other.
Measures to encourage and promote the full development and

utilization of machinery for voluntary negotiations with regard to
employment contracts, and to collective agreements.
The Convention leaves it to national laws or regulations to determine

the extent to which it applies to the armed forces and the police.
Furthermore, it does not deal with the position of public servants
engaged in the administration of the State.
D. Why ADB Needs to Take Action on Freedom of

Association and Right to Collective Bargaining
Freedom of association is to be enjoyed by all workers and employers. Yet major
gaps in the exercise of freedom of association and the right to collective
bargaining persist. Workers in many parts of the region are either denied the
right to form and join a trade union, or are working in situations where these
rights are significantly curtailed. In some countries, independent employers
organizations also face barriers to exercising their freedom of association. Despite
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the universality of these rights and their distinction as key civil liberties, there is
still no universal acceptance of these fundamental principles and rights in practice.
To be effective in eliminating poverty, development policies must fully
integrate economic, social, and political dimensions. Sectoral approaches to
development that give primacy to economic and financial objectives, on the
assumption that social goals will be tackled separately, are destined to fail or to
be only partially successful. Participation in poverty reduction strategies, such as
those of ADB, means having an effective voice through the collective organization
of interests. This, in turn, implies organizational rights and representational
security. Respect for these rights builds social capital and paves the way for
achieving decent employment and incomes for all women and men, thereby
reducing poverty and inequality. There is growing acceptance that respect for
these rights is not only a desired outcome of economic development, but also a
critical means of achieving sustainable development.
In considering the most appropriate national policies in an open world
economy, the debate is beginning to shift from a narrow preoccupation with
getting prices right and reining back regulations, to a broader consideration
of how best to govern the market and balance social and economic goals. In an
open economy, the policy changes necessary to restore macroeconomic balance,
such as devaluation or an increase in interest rates, can have important
distributional implications and trigger disputes that delay adjustment. Research
shows that countries that have benefited most from integration into the world
economy are those that already have institutions for conflict management in
place and are, thus, better equipped to handle these disputes. Experience gleaned
on the recovery from the Asian financial and economic crisis has pointed to the
value and importance of sound labor market institutions, systems of collective
bargaining, dispute prevention and resolution, and social dialogue in dealing
with the consequences of the crisis and enabling economic and social
recuperation.
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Part 3
Core Labor
Standards in
ADB Operations
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Core Labor Standards in

Country Strategy and Programs
ADBs country strategy and program (CSP) provides the overall strategic
framework to guide ADBs operations in a country over a 5-year period. The
preparation of CSPs is accompanied or preceded by economic, thematic, and
analytical work. The conduct of a country poverty analysis, thematic assessment
environment, gender, private sector, governanceand sector roadmaps
constitute essential elements of CSP preparation, and they are important tools
for assessing the importance of labor issues and CLS in country programming.
The discussion of CLS can be addressed in various contexts. For instance,
they can be addressed in governance, foreign direct investment or sectoral issues.
They can also be addressed as cross-cutting issues and be discussed in terms
of investing in human development and insuring the poor access to resources
and opportunities. Addressing CLS in CSP should depend on the strategic focus of
CSP, and the CLS discussion as part of country poverty and social analysis may also
fit in the context of human development or labor market reform.
Incorporation of CLS in ADB operations starting from CSP phase is often a
straightforward issue, but more often a more challenging one. CSPs, through
their risk and vulnerability profiles and summary labor market assessments, can
give information on the general situation of labor standards in a particular
country. This stage may flag potential conditions in a country that may trigger
a CLS issue during project design.
During the project identification stage, depending on whether the project
is a stand-alone project or a mainstreaming project, the team leader needs to
consider if labor issues, and especially CLS, would affect the project design. CLS
related to freedom of association and forced labor are rather uncommon in
ADB activities. More common CLS, likely to be encountered in ADB-funded
projects, are specific equality-discrimination related CLS, especially equal
remuneration, and sometimes child labor issues, particularly in construction,
livelihood, and agricultural activities.
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A. Core Labor Standards in ADB Country Poverty

Analysis
As a first entry point, CLS should be considered during the preparation of the
country poverty analysis (CPA). From the CLS point of view, the CPA should look
at a risk and vulnerability profile and a summary labor market assessment.
1. Risk and Vulnerability Profile
The risk and vulnerability profile will assist in understanding the dynamics of
poverty. The profile should depict the major risks that affect poor people. The
risks can be categorized into the following seven groups:
(i)
natural: heavy rainfall, landslides, volcanic eruptions, earthquakes,

floods, hurricanes, droughts, strong winds, etc.;
(ii)
health: illness, injury, accidents, disability, epidemics (e.g., malaria),

famines, etc.;
(iii) life-cycle: birth, maternity, old-age, family break-up, death, etc.;

(iv) social: crime, domestic, violence, terrorism, gangs, war, social upheaval,
etc.;
(v)
economic: unemployment, harvest failure, business failure, resettlement,

output collapse, balance of payments shock, financial crisis, currency
crisis, technological or trade-induced terms of trade shocks, etc.;
(vi) political: discrimination, riots, political unrest, etc.; and

(vii) environmental: pollution, deforestation, land degradation, nuclear
disaster, etc.
A risk may have an effect at micro or individual level (idiosyncratic), or at
macro level (covariant), and may have impacts in the short or long term. Whether
individuals, households, communities, regions, nations, or larger entities are
actually exposed to risks depends on various factors. For example, the existing
health and nutritional status of individuals; their physical assets, such as housing,
infrastructure, and household location; their educational levels and available
information; and their cultural and behavioral practices, determine a households
exposure to health risks. If the individuals or households are exposed to risks,
their vulnerability, or their resilience against the risks, depends on their asset
base, human and social capital, etc.
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When risks, their frequency, exposure possibilities of poor people, and

anticipated impacts have been identified, proper strategies to manage these
risks must be developed. Based on different strategies and arrangements,
appropriate risk management instruments are needed to reduce the probability
of risks or the vulnerability of individuals, households, and communities.
The risk and vulnerability profile serves mainly for poverty reduction.
Concerning the CLS, the profile should identify persons at risk to, for example,
forced or compulsory labor, child labor incidents, and employment situations
where inequality is strongly present. At the same time, appropriate instruments
need to be considered (Box 6). All data should be gender-disaggregated to
understand better the division of the burden of poverty among women and
men. Often, women are disproportionately affected by poverty, and impacts of
poverty differ according to social groups of women and men. The risk and
vulnerability profile should also be compared with the findings from the summary
labor market assessment, e.g., due to labor market policies, labor standards
and legislation, and child labor situations.
Why is a risk and vulnerability profile important with regard to CLS? First, it
can be used for identifying public macro-level risk management instruments like
policies and legislation. Second, at the individual level there are potential child
labor issues. If households and families are vulnerable, their asset base is not
strong and they are at risk of falling into poverty, in which case the children are
often taken out of school and sent to work. When ADB projects deal with these
areas or populations, there may be a need to implement CLS.
2. Summary Labor Market Assessment in the CPA
As an important component of the poverty profile, a summary labor market
assessment includes, among other things, an analysis of ILS/CLS in the DMC
(Appendix 3). The analysis should assess which sectors/subsectors and
geographical areas have a demand for labor, which areas may have an unmet
supply of labor, and identify the right mix of public policies. A labor market
analysis is a key element in the strategic link between economic growth and
poverty reduction, and the summary should provide recommendations to ensure
efficient and inclusive development patterns. Given that all ADB interventions
need to be designed in accordance with CLS,40 the summary assessment should
40
ADB, 2001. Social Protection Strategy. Manila.
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Box 6: Examples of Risk Management Instruments Classified by

Risk Management Strategy and the Level of Formality of
Risk Management Actorsa
Private Informal
(mainly individuals,
households,
communities, NGOs)
Private FFormal
ormal
(insurance companies,
financial market
institutions)
Public
(governments, donors,
international organizations)
Risk reduction and prevention (reducing the probability of the risk)

Less risky production
Migration
Proper feeding and
weaning practices
Engaging in hygiene and
other disease preventing
activities
In-service training
Financial market
literacy
Company-based and
market-driven labor
standards
Good macroeconomic
policies
Pre-service training
Labor market policies
Labor standards
Child labor reduction
Disability policies
AIDS and other disease
prevention
Legislation to remove
gender inequalities
Risk mitigation (reducing the possible impact of the risk in advance)

Multiple jobs
Investment in assets
Investment in social
capital
Marriage/family support
Community
arrangements
Shared tenancy
Tied labor
Extended family
Labor contracts
Investment in multiple
financial assets
Microfinance
Old-age annuities
Disability, accident,
and other insurance
(e.g., crop insurance)
Pension systems
Asset transfers
Protection of property
rights (especially for
women)
Support for financial
markets for the poor
Mandated/provided
insurance for unemployment, old-age, disability,
sickness, etc.
Risk coping (relieving the impact of the risk afterwards)

Selling real assets
Borrowing from neighbors
Intra-community
transfers/charity
Sending children to work
Dissaving of human capital
a
Selling financial assets

Borrowing from banks
Disaster relief
Transfers/social
assistance
Subsidies
Public works
Heitzmann, K., R. Canagarajah, and P. Siegel. 2002. Guidelines for Assessing the Sources of Risk and
Vulnerability. Social Protection Discussion Paper Series No. 0218. Washington, DC: World Bank.
= Highlighted text in risk management instruments refers to possible core labor standards issues.
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indicate the countrys compliance/noncompliance with labor standards, including

CLS. The enforcement related issues should also be studied during the assessment.
In general terms, the summary labor market assessment41 should include the
following information:
(i)
Employment and labor

-related data
labor-related
data. Employment, unemployment, and
underemployment rates; incidence of seasonal labor; sectoral
distribution (people employed in agriculture, industry, services); regional
disparities; real wage dynamics; labor-intensive sectors and their
potential for generating employment; the informal sector; the selfemployed; changes in participation rates (especially for women);
working conditions; compliance with national and international labor
laws and standards, including the reported existence of child or bonded
labor and violations of other CLS.
(ii)
The countrys labor

-absorbing development pattern: matching the
labor-absorbing
supply and demand of labor. Has growth been sufficient to employ all
the population in working age? What is the percentage of the
population below 18, the future entrants into the labor market? Will
the economy be able to absorb all new entrants into the labor market?
Which are the most dynamic sectors of the economy? Are those laborintensive? Which sectors/policies, in which geographical regions, should
be promoted in the short/long term to maximize employment?
More specifically, these assessments should pay attention to

(i)
the legal framework, including national labor laws and implementing

regulations, and other legislation that may affect conditions of work,
such as penal and civil codes and education lawsscope of coverage
should be determined;
(ii)
specific laws on women, equality, child labor, safety and health,

industrial relations, etc.;
(iii) health and accident insurance schemes and whether there is provision
for casual or informal sector workers;
41
As regard to CLS, the Summary Labor Market Assessment is a much broader study of labor issues where
CLS are only a component.
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(iv) existence and contents of collective bargaining provisions applicable

to the sector or activity, and of collective bargaining as a tool for dispute
resolution;
(v)
information on the occupational accidents and injuries;
(vi) information on the informal economy activities and levels of legal

protection;
(vii) labor force participation patterns (disaggregated); and
(viii) demographic and other social data (disaggregated).
Ideally, information collection should involve collaboration and consultation
with relevant international, national, and local organizations and institutions,
such as the ministry responsible for labor; national statistics office; national
trade unions and employers organizations; international trade unions and
employers organizations; labor research institutes, often in national universities;
regional representation of the ILO; and other civil society organizations concerned
with labor issues (womens organizations, child protection organizations, trade
associations, etc.).
There may be cases in which no national labor law has been adopted in a
particular field, or when its coverage is incomplete, and when it is necessary to
refer directly to international labor standards to ensure compliance with ADBs
Social Protection Strategy. Gaps in coverage of national labor law tend to be in
the agriculture sector, domestic workers, home-based workers, people working
for subcontractors, and small enterprises. In addition, while it is technically
applicable, national labor law may not be applied in fact in the informal economy.
Often a full labor market assessment might be too resource-intensive and,
therefore in most countries, utilizing existing ILO country studies should be
considered and explored, and only in exceptional cases where labor market issues
are of particular importance, an ADB assessment may be considered. Even if it
has not been possible to carry out a full labor market assessment, the analysis
should at least signal the existence of any major labor problem, which should
be addressed as a priority issue through ADB.42
42
See also the Economic and Research Departments publication on labor markets: Felipe, J., R. Hasan
(eds.). 2006. Labor Markets in Asia: Issues and Perspectives. London: Palgrave Macmillan for the Asian
Development Bank.
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The findings of the country poverty analysis in relation to CLS impact directly
on the CSP, thereby harmonizing ADBs overarching goal of poverty reduction
with the development priorities and preferences of the partner country. It is
essential that the prioritization of all ADB programs, projects, and technical
assistance involves a careful evaluation of the trade-offs between economic and
social development, and is consistent with the findings of the poverty analysis.
However, as indicated earlier, any such trade-offs should be consistent and
support compliance with CLS.
B. Child Labor in the Country Strategy and Program

ADBs country poverty analysis and CSP are intended to generate an
understanding of the nature of the social and economic terrain of a DMC. Thus,
a review of the prevailing labor law framework and employment situation of
children, as well as of education policies and their interaction with the economy,
is a crucial input. Between and within countries, the extent of child labor, the
specific reasons for its existence, and problems associated with its removal vary
widely. Therefore, the summary labor market assessment (SLMA) outlined in
Appendix 3, should include a review of the available information about child
labor, which should then be used in the various parts of the country poverty
analysis. The basic data for SLMA can be collected from the ILO key indicators of
the labor market (Appendix 4). Child labor issues in the CSP are elaborated in
Table 1.
Table 1: Child Labor Analysis
Activity
Input from Child Labor Analysis
Child labor country analysis
Estimating the nature and extent of child labor

and its cost to the country and economy
(information available from the International
Labour Organization).
Poverty analysis
Links between household poverty and child labor.
High-level forum
Emphasizing priority given to removing child

labor and promoting improved status of children.
Country strategy and program
Asian Development Bank programs for reducing

child labor and strengthening structures and
capacity of officials to deal with child labor
questions.
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C. Equality and Discrimination in the Country Strategy

and Program
Due consideration should be given to the different forms of discrimination at
work, including gender implications of all ADB projects. The preparatory stage
of the inputs for the CSP should include a gender assessment of the countrys
labor market as an important input. Because country strategies are carried out
in order to understand the nature of the social and economic terrain of the
country, a review of the prevailing equality and labor law framework, employment
and/or equality policies, and gender relations and their interaction with the
economy are crucial inputs. ADBs policies on gender and development,43 as
defined in the Operations Manual, include several tools, of which those most
relevant to this Handbook are shown in Box 7.
1. Explicit Links with regard to Women, Economic Activities, and
Poverty
Removing discrimination against women in the labor market is an important
step for reducing household poverty. For this, the following points should be
explored:
(i)
What is the distribution in the region of working women by class of

household?
(ii)
What is the nature of the womens economic activities in poor

households?
(iii) What is the estimated share of womens contribution in household

incomes?
(iv) What are the constraints on womens choices of activities?
(v)
Among the poor, what is the proportion of households where women

are the chief earners/only adult members?
43
See ADB. 2003. Operations Manual. Section C2. Manila.
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Box 7: Some Tools on Gender and Development

The country gender assessment provides the basis for formulating the gender
strategy in the country strategy and program (CSP).
The gender strategy for a country specifies how the Asian Development
Bank (ADB) intends to address the gender issues highlighted in the

gender assessment, and how the overall gender objectives will be
achieved through ADBs program of assistance. It should be included
as a core appendix in the CSP.
A detailed gender analysis is required for those projects that have
potential to correct gender disparities or to significantly mainstream

gender equity concerns, or that are likely to have substantial gender
impact. Gender analysis must be conducted as an essential component
of the initial poverty and social analysis (IPSA).
If the IPSA indicates that the project has the potential to correct gender
disparities or significantly mainstream gender concerns, or is likely to
have substantial gender impact, a detailed gender assessment needs to
be undertaken during project design to prepare a project-specific gender
plan. Results of the gender analysis and a short summary of the gender
plan are given in the report and recommendation of the President.
2. Benefits of Providing Better Labor Standards for Women Workers

For the nation as a whole, the benefits are:
(i)
Discrimination on grounds of sex is a violation of human rights and

goes against the basic tenets of equality and social justice, so remedial
action clearly benefits society as a whole.
(ii)
Raising the productivity of the workforce helps to accelerate the rate

of development for the economy.
(iii) Working women, especially those in the public sector, acquire through
their associations with others, a greater awareness about their
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surroundings as well as of the current social and ecological issues.

(iv) Having a decent income improves the status of a woman within her
household, and control over her reproductive functions. Experience
has shown that this leads to better overall management of family
planning.
Apart from the women themselves, the families of workers are also
beneficiaries:
(i)
Increased earnings raise household incomes and reduce household

poverty.
(ii)
In most societies, a larger share of womens than mens income goes

to raising the nutritional standards of their households.
(iii) Improved incomes and less poverty in the household mean that children
are withdrawn from the workforce and sent to school.
(iv) Improving education/training levels of women results in increased
likelihood that children will be educated.
3. Planning Actions for Addressing Discrimination
Discrimination is still a common problem in the workplace. While some of the
more blatant forms of discrimination may have faded, many remain, and others
have taken on new or less visible forms, an ILO report says.44 For example, the
combined effects of global migration, the redefinition of national boundaries ...
and growing economic problems and inequalities have exacerbated problems
of xenophobia and racial and religious discrimination. More recently, new forms
of discrimination based on disability, HIV/AIDS, age or sexual orientation have
become cause for growing concern.
Planned actions to address discrimination should include positive measures
and targeted programs to improve womens education and training, as well as
to provide support services and improvements in employment opportunities. To
deal with cultural and perceptional prejudices (see Figure 1), gender awareness
raising and sensitization programs for employers, trade unions, government
officials, and families are required. Regulations and legislation should be reviewed
44
ILO. 2003. Time For Equality At Work. Report of the Director-General. International Labour Conference,
91st Session 2003, Report I (B). Geneva.
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and revised to eliminate discriminatory provisions and include requirements of

equality and mechanisms to promote and enforce the provisions. It is important
to ensure that interventions are introduced as early as possible in the employment
and work cycle to avoid accumulation of disadvantages. For instance, if affirmative
action is introduced only at the level of promotions, it will not be effective if
women are already disqualified because they do not have the appropriate training
or experience. Targeting should be applied to the specific needs of the most
vulnerable groups of women suffering from cumulative disadvantages.
The failure to eradicate discrimination helps perpetuate poverty. The
discriminated are often among the poorest of the poor, and poverty is more
severe among women and other discriminated groups. Discrimination creates a
web of poverty, forced and child labor, and social exclusion, the ILO report47
says, adding eliminating discrimination is indispensable to any viable strategy
for poverty reduction and sustainable economic development.
Everyone gains from eliminating discrimination at workindividuals,
enterprises and society at large. Fairness and justice at the workplace boosts the
self-esteem and morale of workers. A more motivated and productive workforce
enhances the productivity and competitiveness of businesses. A more even
distribution of opportunities to develop and use ones talents, among different
groups in society, contributes to social cohesion in increasingly diverse societies.
D. Forced Labor in the Country Strategy and Program

Few would argue that the use of forced labor is an economically viable proposition
for any country. Indeed, states are bound to eliminate it. The leadership of the
business community as a whole is also committed to the eradication of forced
labor systems.45
ADB should assess more precisely which groups of the population, by gender,
age, and ethnic origin, are most affected. The higher vulnerability of children to
forced or compulsory labor is well known. There is reason to believe that women
45
The Corporate Business Community Be-FSA, on Forced Labor proposed the following principles, criteria,
and benchmarks that are common to a number of business organizations. Principles: The company
employs workers who choose to be employed by that company. The company does not use any forced
labor, whether in the forms of prison labor, bonded labor, slave labor, or any other nonvoluntary labor.
Criteria: The company has a clearly stated policy in regard to monitoring the employment of people
under duress. If it is discovered that any workers have been employed under duress, immediate steps
are taken to rectify the practice and to provide for the rehabilitation of the workers involved. The
company does not solve the problem by the dismissal of the workers involved. Benchmarks: The company
adheres to ILO conventions 29 and 105 on forced labor.
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and men differ in their particular risks of new and differing forms of coercion.
There is also evidence that indigenous peoples and other racial or ethnic minorities
are especially vulnerable. Furthermore, there are indications that forced and
compulsory labor can easily affect migrant workers, especially if they fall into a
trafficking situation.
At the national level in some DMCs, certain forms of internal migration, for
example seasonal migration in commercial agriculture or migration to cities to
engage in domestic work, may be associated with debt bondage or other forms
of coercion. These issues need to be explored further at the project level, and an
examination made of
recruitment and repatriation methods,
payment systems,
conditions of work and housing, and
forms of representation and redress.
On the whole, the labor market aspects of forced or compulsory labor have
not been examined in the light of current conditions. Why is forced or compulsory
labor persisting in the face of poverty reduction strategies and more open
economies? Why does it exist in some poverty contexts but not in others? How
are broader macroeconomic prescriptions, such as greater labor market flexibility
and adjustment policies, affecting the incidence of forced or compulsory labor?
What can be done within the context of macroeconomic and sectoral policy to
prevent or eliminate instances of forced or compulsory labor? How has pursuit
of decentralization policies impacted on the governments ability to prevent,
detect, and remedy forced labor? Why have existing national laws against
phenomena such as debt bondage not been enforced? For ADB, much of this
information can be gleaned indirectly from the summary labor market assessment
and from discussions with stakeholders in national and local institutions.
E. Freedom of Association and Collective Bargaining in

the Country Strategy and Program
It is important that ADB promotes an atmosphere conducive to the achievement
of all CLS. In the case of freedom of association and collective bargaining,
promotional activities include policy dialogue with international trade union
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organizations (such as the International Confederation of Free Trade Unions or

ICFTU) and the ILO, and training programs for ADB staff on how to work with
trade unions and other stakeholders (Box 8).
As is the case with other CLS, ADB staff are beginning to analyze these core
standards in the CSPs of eligible borrowers. Their coverage often requires a
more subtle approach than with child labor, forced labor, etc. Freedom of
association and collective bargaining are contentious issues for many
governments and employers organizations. In seeking the requisite data, it is
essential that ADB staff promote the positive aspects of freedom of association
and collective bargaining (which include economic and social development linked
to poverty reduction) in the spirit of social dialogue. Insofar as the DMC in
question considers that there is a political dimension to recognition of these
rights, ADB staff should proceed with care and ensure that they do not promote
actions contrary to these CLS.
Box 8: ADB and Trade Unions

The Asian Development Bank (ADB) consults regularly with labor unions
through participation in regional conferences/meetings to discuss relevant
issues. ADB took part in the yearly dialogue between the international
financing institutions (IFIs) active in the regionthe International Monetary
Fund, the World Bank, and ADBand the International Confederation of
Free Trade UnionsAsian and Pacific Regional Organization (ICFTU-APRO).
The third ICFTU-APRO regional dialogue with IFIs took place in Manila on
23 September 2004. Discussions were held under the theme International
Financial Institutions and Core Labor Standards (CLS). There was a
consensus among all participants on the need for CLS. IFIs are fully supportive
of enforcement of the CLS on child labor, forced labor, and equality, but
encounter some problems in the enforcement of the freedom of association
because this issue has political implications. ILO, on the other hand, considers
this set of rights fundamental to national development and to the full
achievement of human rights.
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To assess compliance with conventions 87 and 98 with regard to future

projects, ADB should hold discussions with a range of stakeholders, including
(i)
ministry responsible for labor,
(ii)
national statistics office,
(iii) national trade unions and employers organizations,

(iv) international trade unions and employers organizations,
(v)
regional representation of the ILO, and
(vi) civil society organizations concerned with labor issues in the respective
project areas (e.g., womens organizations and trade associations).
Of these, perhaps discussions with the ICFTU and other global unions are
among the most important because they have clear insights into the national
situation regarding freedom of association and the right to collective bargaining.
They can provide information on the number of affiliates, the sectoral coverage,
collective agreements, and any national or enterprise-level abuses of these CLS.
Such information can be verified in discussions with the national centers.46
Similarly, discussions with the ILO office responsible for the particular DMC can
detail any specific problems relating to conventions 87 and 98 and give details
of any complaints to the ILO Committee on Freedom of Association.
In terms of concrete data, the ministry responsible for labor can give such
details as the number of registered trade unions, collective agreements, disputes,
etc. However, it has often been found that these ministries may not have the
most up-to-date information; there is evidence of gross underreporting, especially
from remote regions where the ministry may have little or no coverage. It is
important, therefore, that ADB cross-references information from a number of
sources rather than rely on one source.
F.
Integrating CLS in Operations after the CSP Phase:

Design and Implementation
The following diagram (Box 9) provides information on the generic processes

and analyses required at the various stages of the ADB operational cycle for
46
It must be remembered that most workers in the region, particularly those in the informal sector, do not
belong to any form of traditional trade union, but that in most cases they have the right to join or form
unions under national law.
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considering or integrating core labor standard concerns into ADB operations.

The role of CLS in the country strategy and program stage has already been
discussed in this chapter. The diagram gives further advice on different activities
during project design and implementation with regard to CLS.
Box 9: Core Labor Standards in ADB Operational Cycle

Country poverty analysis
Pre-project design (PPTAs)

Concept papers
(the project pipeline)
PPTA fact-finding missions
Initial poverty and social
assessment
Technical assistance report
Project Design
Selection of consultants
Inception report
Mid-term report
Final report
Draft RRP with SPRSS
Loan negotiations
Project Implementation
Government, executing and
implementing agencies,
beneficiaries
Contractors, suppliers, consultants
Review missions, progress reports
Mid-term review
Project Completion Report
Project Performance Evaluation
Report
Issues related to Core Labor Standards

Risk and vulnerability profile
A summary labor market assessment
Identification of bonded labor, child labor,

or gender and other inequalities in
employment (flagging out)
Identification of the need for special
consultants in the PPTA team (labor,
gender, etc.)
Identification of the situation concerning
freedom of association
Designing necessary interventions to
adhere to CLS
Participation with stakeholders concerning
the future implementation of CLS clauses
Formulation of appropriate assurances/
covenants for inclusion in loan documents
Scrutinizing draft bidding documents (in
construction projects)
Consultations with implementing
agencies on CLS
Drafting model clauses for bidding
documents
Compliance with national legislation
concerning CLS and ILS
Monitoring and evaluating of CLS
ADB = Asian Development Bank; CLS = core labor standards; ILS = international labor standards;
PPTA = project preparatory technical assistance; IPSA = initial poverty and social assessment; RRP =
report and recommendation of the President; SPRSS = summary poverty reduction and social strategy
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Project Design
A. General Principles during the Pre-design Phase
The challenges for considering CLS in the project pre-design stage are the many
technical, economical, and policy issues to be remembered. The best way is to
think of CLS as a part of some kind of labor framework to deal with labor
issues in general. If the project, or a particular project activity, has something to
do with labor and employment, or generally with working people, the issue of
CLS might be relevant. If CLS are identified as an issue during the forthcoming
design phase, it is necessary to devise ways of addressing them during
implementation. And attention should be paid to whether any project activity
might undercut CLSe.g., by failing to involve established trade unions.
ADB projects may include specific stand-alone CLS components, or include
general considerations for addressing the CLS:
(i)
Design stand-alone projects to address a particular CLS, e.g., child

labor, if this issue was identified in the CSP as a major concern in the
DMC, or a component within a loan project (e.g., to get child labor
dropouts back to school in education projects).
(ii)
Ensure that all projects in all sectors comply with CLS and, if they fail
to do so, ensure that adequate preventive and/or mitigation measures
are included in the project design.47
In addition to ensuring adherence to CLS in ADB activities, investments can

also focus on the adoption and enforcement of labor standards generally, as an
investment in governance and management systemsfor instance, in the
reinforcement of national capacity to enforce labor law through capacity building
and policy reforms, or the capacity of the labor inspectorate to build the capacity
of enterprises to apply good labor practices.
47
CLS issues may be relevant (i) in supporting labor market interventions that improve employment and
working conditions; (ii) in public or private sector restructuring; or (iii) during the privatization of stateowned enterprises, ensuring that retrenched workers, regardless of race, sex, caste, gender, or religious
or political belief, are not unfairly disadvantaged as a result of a project intervention.
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The project pre-design phase (in a lending project) includes the preparation
of a project concept paper, which is done after the country strategy and program,
and the preparation of the project preparatory technical assistance (PPTA)
document. There are two critical stages during the project pre-design when CLS
issues need to be addressed:
(i)
The concept paper constitutes the link between country programming

and TA fact-finding mission. It describes the purpose and the expected
results/benefits of a tentative project. Expected social or environmental
issues or concerns, like CLS, need to be identified. The concept paper
also identifies resources needed for the project design and preparation.
(ii)
During the fact-finding mission for the PPTA, CLS should be flagged in
the initial poverty and social assessment (IPSA).
An IPSA is mandatory for all ADB project and program loans. It is usually
conducted as early as possible in project preparation to identify (or flag) the key
social development and poverty reduction issues for in-depth analysis during
the design phase of a loan.
The purpose of an IPSA during project preparation is to (i) identify the
beneficiaries, (ii) assess opportunities and constraints for poor groups to benefit
from project activities, (iii) establish a participatory process amongst all
stakeholders, and (iv) prepare design measures for achieving poverty reduction
and social development outcomes. CLS are an integral part of both the IPSA and
the detailed poverty and social analysis. The section on labor in the IPSA should
be used to record the national situation with regard to CLS.
1. Core Labor Standards in IPSA
During the project pre-design phase it is useful to consider the following questions
as examples, in order to identify issues related to CLS:
(i)
Is the project related to infrastructure development that includes civil

works contractors? If yes, then child labor issues may be relevant, as
well as equal wages between men and women for work of equal value.
This category includes, as examples, rural road projects, rural and urban
development projects, and often power sector development projects.
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(ii)
Is the project related to public sector reform where some labor policies
and laws will be updated or revised? In such context, legislation related
to CLS might be relevant.
(iii) Depending on the planned contractual arrangement, e.g., formal or

conventional contracting, community contracting, or self-help schemes
using unpaid labor in some community development projects, CLS
need to be addressed differently.
(iv) Enterprise restructuring and privatization projects usually trigger several
labor issues (staff audits, skill audits, benchmarks, retrenchment issues,
voluntary redundancy, etc.) that are not CLS issues. However,
redeployment issues may involve CLS in the form of elimination of
discrimination and equal remuneration.
It is important to recall that this Handbook focuses only on CLS. For other
labor-related issues, from employment generation projects to labor retrenchments
and general labor standards, the reader should consult other sources, such as
ADBs Social Protection Strategy (active labor market programs), or Appendix 9
of ADBs Handbook for Poverty and Social Analysis (labor retrenchment). ADB
has also published guidance on how to handle labor issues in enterprise
restructuring and infrastructure reform.48 An excellent source of further
information is the World Banks Labor Toolkit: Labor Issues in Infrastructure
Reform.49 The ILO regional representation can provide information on other
labor standards issues, and on how the country concerned applies them.
B. Core Labor Standards in the Project Design Phase

Measures should be taken to ensure that the design of all ADB projects conforms
to CLS as required by the Social Protection Strategy, and to correct situations
where such measures have not been implemented. Most projects involve some
aspects of labor standards, but not necessarily of CLS, either because they address
labor-related subjects directly or because work is done under them that involves
employment and the engagement of workers. Equally, many projects will carry
risks of infringing CLS.
48
49
See: http://www.adb.org/Documents/Events/2006/Workshop-Labor-Issues/default.asp
http://rru.worldbank.org/Documents/Toolkits/Labor/index.html
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1. Checking for Compliance with CLS in Design

The first thing to consider in the project design is whether the project has a
direct impact on CLS, either as its explicit purpose or as a side effect, for example:
(i)
there are intended employment creation aspects of the project;
(ii)
workers contracted under the project may be at risk of gender, race,

or age discrimination;
(iii) the project location may have a high incidence of child labor or bonded
labor, and the project contractors may be at risk of using them; and
(iv) the project area maybe in a high risk area for trafficking of women
and children.
2. Checking for Conformity in Design with National Labor Law
Occasionally, ADB projects can involve unintentional violations of CLS, if
precautions are not taken (Box 10). ILO offices in the country can assist
government and ADB staff to identify the countrys labor legislation and possible
rights issues associated with the project. The most detailed source is the ILO
ILOLEX database.50 During the project design phase, seek the following
information:
(i)
Check national labor laws in the sector affecting the workers involved
in the project. Does the country have legislation or regulations directly
on the subject concerned?
(ii)
Check the consistency between the existing law and practice, and the
relevant CLS. If law and practice are not in conformity with the CLS,
the latter should be the point of reference for ADB action.
(iii) If there is no applicable national labor law, the CLS should be the point
of reference.
There will also be instances when no national labor law has been adopted,
or when its coverage is incomplete. In these cases, refer directly to ILS/CLS to
ensure compliance with the Social Protection Strategy. Some gaps in coverage
of national labor law may include
50
http://www.ilo.org/ilolex/english/index.htm
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(i)
the agriculture sector,
(ii)
domestic workers,
(iii) home-based workers,

(iv) people working for subcontractors, and
(v)
enterprises below a size specified in national law.
Box 10: Example of a Project Engaging Labor in Violation of Core

Labor Standards
A hypothetical case might involve building a road to improve market access
for local farmers or producers. An engineer is responsible for implementation,
and contracts are concluded with a local traditional leader to supply labor
for this project, of direct benefit to the community.a
The local leader supplies men from his own ethnic group, who work
because he orders them to do so. The men bring their wives and children
to help; the wives break rocks for building the road; the children help to
gather the rocks for their mothers and take the rocks and water to their
fathers to lay down on the road. At the end of the day, the local leader pays
the men. Possibly, the following labor standards are affected:
(i) Forced labor
labor.. Did the workers involved have any choice about working,
or would they suffer penalties if they did not?
(ii) Gender discrimination
discrimination. Did women have equal opportunities to work
on the project? Did men and women have equal wages for work of
equal value?
(iii) Ethnic and other discrimination
discrimination. Did persons from other tribes or
communities have the opportunity to work on the project? Have the
people with disabilities been taken care of?
(iv) Child labor
labor. How old were the youngest children? Could they have been
in school instead of working, and are schools available? Were they doing
economically valuable work, and were they paid? Were the loads they
were carrying of reasonable size and weight for their strength?
a
This is called community-based contracting.
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Should the ADB observe CLS in its interventions even if the country has not
adopted labor legislation, or if it has exempted some economic sectors or parts
of the population from the law? The answer is yes. For example, ADB policies
provide that there should be protection against all discrimination on the basis
of gender, with no clauses exempting different types of work, etc. Working
children are working and being prevented from attending school whether they
are working on a garbage dump in an inner city, or on a plantation where no
law applies. Thus, the rules are always relevant, even if their application varies
according to the situation.
During the implementation of the PPTA, when conducting feasibility studies
and design of the project, CLS issues should be assessed as part of the detailed
poverty and social assessment, and reported in the summary poverty reduction
and social strategy (SPRSS).
3. Design of Project Assurances and Covenants
If CLS concerns could create a violation in the project, the loan agreements
should include covenants to address them. First, the CLS concerns could be
explained also in the report and recommendation of the President (RRP) (Chapter
VI, Assurances); an example of an assurance from a road sector loan project is
given in Box 11.51
An example of a covenant related to the mitigation of labor law risks52 in a
secondary towns integrated flood protection project is given in Box 12, based
on a similar paragraph from the RRP (Assurances).
C. Child Labor in Project Design

1. Basic Guidelines on Child Labor for Project Design
The economic rationale alone for eliminating child labor makes this an important
issue for ADB (Appendix 5). ADB commitment to the CLS on child labor implies
compliance with the following guidelines for ADB activities when projects affect
child labor. The guidelines cover two basic subjects covered in the CLS on child
labor, which overlap to a certain extent (the points below concerning ILO
conventions 138 and 182).
51
52
Not all the issues in this assurance relate to core labor standards.
Not all the issues in this covenant relate to core labor standards. Only the references to child labor and
equal wages are from CLS.
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Box 11: An Assurance on Workplace Safety, Labor Law, and

Occupational Health
The government will ensure and cause [the executing agency] to ensure
that provisions are stipulated in all civil works contracts to require contractors
employed under the project to incorporate minimum workplace
occupational safety norms, including the core labor standards as identified
by the fundamental ILO conventions. The government shall ensure that
civil works contractors comply with all applicable labor laws, do not employ
child labor in any aspect of their activities, and provide appropriate facilities
for children in construction campsites if such sites are established. The
government shall ensure that contractors provide appropriate training, and
information materials, for workers on HIV/AIDS prevention, using an NGO
approved by the ministry of health, and that contractors and their workers
observe local protocols concerning acceptable behavior toward the local
population. The government shall set employment targets for poor and
vulnerable people, particularly women, for all construction and maintenance
activities, require contractors to use local unskilled labor and require
contractors not to differentiate wages between men and women for work
of equal value. A specific clause shall be included in bidding documents,
and compliance shall be strictly monitored during project implementation.
Box 12: A Covenant Mitigating Labor Law Violation Risks

The Borrower shall ensure that civil works contractors comply with all
applicable labor laws, do not employ child labor for construction and
maintenance activities, and provide appropriate facilities for children in
construction campsites. The Borrower shall set employment targets for poor
and vulnerable people, particularly women, for all construction and
maintenance activities, require contractors to use local unskilled labor, and
require contractors not to differentiate wages between men and women
for work of equal value. A specific clause shall be included in bidding
documents, and compliance shall be strictly monitored during project
implementation.
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a.
Minimum Age for Employment or Work (Convention 138)

(i)
Ensure that child labor contrary to the convention is not used in any
ADB-funded project.
(ii)
Define child labor as any work done by anyone under 14 years old,
except for light work done by children 12 years and older.53
(iii) Ensure that no work is done by anyone of less than the school-leaving
age, at least if schooling is available.
(iv) Ensure that no work is likely to jeopardize the health, safety, or morals
of young persons, either by its nature or the circumstances in which it
is carried out, is done in the project by anyone under 18 years of age.
b.
Worst Forms of Child Labor (Convention 182)

(i)
Ensure that worst forms of child laborfor anyone under 18 years54

of ageare not used under any circumstances in an ADB-funded
project.
(ii)
Direct activities to take immediate and effective measures to eliminate

these worst forms of child labor.
c.
Proactive Investments to Combat Child Labor

Some of the policies and programs that affect decision making by families
and/or employers, which can be envisaged for child labor-free projects, can deal
with following:
(i)
Strengthen labor markets and provide linkages and information

between the adult labor force and employers and firms.
(ii)
Establish community- or area-based economic development schemes

that provide adult employment, income-generating activities, and credit
lines to families practicing child labor; this will affect household
decisions and encourage elimination of child labor.
(iii) In the community, deal with the family size, fertility, and dependency
burden.
53
54
Convention No. 138 provides that the minimum age shall be 15, or the end of compulsory schooling,
whichever is higher, and the age for light work 13; but that developing countries may opt for ages one
year younger.
16 years under certain conditions, as long as there is close supervision and prior training.
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(iv) Improve social insurance for vulnerable groups and means of poverty
reduction.
(v)
Provide social assistance and welfare services for vulnerable groups.
(vi) Improve access to and quality of formal and nonformal education,

skills formation, and training.
(vii) Address issues on caste, ethnic, and gender discrimination.
(viii) Promote awareness of the undesirable effects of child labor and
diminish its acceptance by families, and deal with family situations
(child abuse, strained family relations, etc.) conducive to child labor.
(ix) Raise awareness and undertake policy advocacy to deal with the child
labor problem.
(x)
Identify, detect, and monitor the areas and sectors where child labor is
situated, and analyze the child labor problem in the identified areas
and sectors (via research and field exposure).
(xi) Reduce or eliminate the worst forms of child labor and rescue and
rehabilitate the children in the worst forms of child labor.
(xii) Penalize employers using the worst forms of child labor and penalize
adults who violate childrens rights and who force children to enter
child labor, especially in its worst forms. This may include changes in
legislation and ordinances.
(xiii) Reduce the health hazards and dangers to young persons in the
workplace.55 This may include changes in legislation and ordinances.
(xiv) Provide support to small-scale and family enterprises, provide credit
schemes (combined with savings schemes for household enterprises),
employment training, and apprenticeship programs.
(xv) Provide capacity building for government and nongovernment
institutions addressing the child labor problem.
(xvi) Provide awareness raising, policy advocacy, data collection and research,
identifying and monitoring areas and sectors where child labor is
situated, and conduct research on the factors contributing to the
specific forms of child labor.
55
Full acceptance of the CLS means not accepting children in the workplace, except under defined
circumstances, according to ILO and UN standards on child labor. There are, however, circumstances
envisaged by international conventions in which young persons can work legitimately, and when it is
productive to seek to improve their working conditions. Further information is available from the ILO.
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2. Formal and Nonformal Education

Discussions of the consequences and determinants of child labor point to the
importance of identifying programs and policies that address childrens inability
to attend school, in order to tackle the child labor problem effectively. Programs
on formal and nonformal education can make indispensable contributions to
this objective.
(i)
Programs and projects in primary and secondary education should

include teachers and parents programs to ensure proper monitoring
and prevention of children dropout and bad performance because of
child labor. Many child labor programs have met various degrees of
success, employing teachers and parents to prevent child labor and
deterioration of childrens performance due to absences, and lack of
study time due to child labor. Most primary and secondary education
components of child labor programs in the ILOs International Program
on the Elimination of Child Labor56 have links with parents and teachers,
and some are documented in country studies.
(ii)
Due emphasis should be given to feeding programs and other subsidies

and cost reduction for school expenses (subsidies for books and school
supplies, transportation, tuition, and related expenses). These programs
would be better conceptualized and implemented if they were enriched
with studies on the household decision-making processes and analyses
of opportunity costs to schooling plus actual school expenses. Child
labor would most likely figure prominently in these analyses and
considerations.
(iii) Formal and nonformal education for out-of-school youth and children
(whether working or not) should also be given due emphasis. Skills
development programs should be especially geared to young workers
and entrants to the world of work, so that their human capital will not
deteriorate in unskilled, unproductive activities.
(iv) In formal and nonformal education, children and youth should be
taught about their human rights, including labor rights, the system of
laws and regulations that protect them, and the facilities and services
56
The International Program on the Elimination of Child Labor (IPEC) is ILOs largest program of technical
assistance, working in some 90 countries.
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(both government and nongovernment) that should provide them

protection and services, and how to access them.
3. Need to Involve Various Stakeholders and Institutions
Another important activity that should be a component of any social protection
strategy is rescue and rehabilitation of child labor. This again involves many
agencies and stakeholders.
The programs and policies listed above would necessarily involve local
government agencies as well as community and civil society groups and
organizations. Proper coordination and good relations among these entities
are vital for any successful resolution of the child labor problem at the
community level.
4. Tackling Inter-country Migration of Children
Migrant children are some of the most vulnerable child laborers. If the source
and destination of the migration patterns are in different countries, it may be
difficult to address the problem without involving inter- and multinational efforts.
Examples of this are the migration of Nepalese and Bangladeshi children into
parts of India; and the influx of Myanmar, Laotian, and Cambodian children into
Thailand. Many of these children are victims of child trafficking and become
bonded laborers. Thus, multilateral agencies (including ADB) can be crucial in
fostering international agreements and cooperation among the countries
involved. One of the goals is to stop trafficking and give the children, who have
already arrived in a particular country, a legitimate status in the destination
country so that they can have access to social assistance (e.g., rescue and
rehabilitation).
5. Mitigation Plans for Child Labor
Any development program or project may inadvertently bring about or encourage
the use of child labor. Appendix 6 lists possible occurrences of this type in various
kinds of projects, and possible mitigating measures and agencies or stakeholders
to consult and to ask for assistance.
There is a fine distinction between child labor that is harmful to the growth
and development of children, on one hand, and light child work that is acceptable
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socially, economically, and morally, on the other. Following are some criteria to
help guide this decision.
(i)
Children performing light work (as defined by CLS Convention 138)

should be at least 12 years of age.
(ii)
The work should not interfere with a childs schooling and study time,
play time, and time for vital activities (e.g., bathing, toilet activities).
(iii) The work should be only a few hours a day.

(iv) The work should be within the physical, psychological, and emotional
capabilities of the child given her/his particular age.
(v)
The work should impart some skill or learning.
(vi) The child should not intolerably dislike the work.

(vii) The work should not be hazardous to the childs physical, psychological,
or emotional health and condition.
Working conditions for the child should be comfortable and conducive to
the work, and management of the child should involve giving positive incentives
and motivation, rather than disciplinary action, coercion, or physical/mental
punishment.
Similarly, if negative unintended results would arise from child work-related
programs and projects, mitigating measures need to be put in place.
D. Addressing Equality and Discrimination in Project

Design
When considering the design phase, it is important to strengthen participatory
planning and design with stakeholders and intended beneficiaries to identify
needs and priorities of target beneficiaries. Community and beneficiary
participation in conceptualization, planning, implementation, and evaluation
of projects is fundamental.
For PPTA, and project design leading to the RRP, the issues mentioned in
ADBs policies and operational procedures on gender and development
(Operations Manual, Section C2) are relevant and not repeated here.
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1. The Need to Promote More Proactive Gender-oriented Projects

ADB projects that impact most on women are those aimed at direct-wage
employment, microenterprise, infrastructure, and public sector reforms in which
there are retrenchment issues. More work should be undertaken to identify the
specific sectors for ADB investment that would benefit women workers most,
such as the education sector, including vocational training. Some examples of
other specific actions related to the type of project are provided below.
a.
Infrastructure Projects
(i)
Give priority to schemes that provide ways of reducing the burden of

household work. Schemes for providing water supply within easy reach
of villages, forestry for fuel wood and fodder, and electrical and gas
supply lines to villages could be on the state planning agenda.
(ii)
Increase the productivity of womens work by opening up markets

and making it possible for them to use better technologies.
b.
Employment Creation in Formal Sector

(i)
Promote employment through increasing womens participation in

public service, in particular in nontraditional occupations and decisionmaking positions.
(ii)
Set targets of at least 40% participation rates.
(iii) Provide training for management in private business on gender equality

in employment.
c.
Education and Skills Development

(i)
Increase educational qualifications and skills development to enable

women to fully participate in programs to promote increased
employment opportunities in public or private sector initiatives. These
programs should target the most economically vulnerable women and
not be geared to those already in an advantaged position.
(ii)
Wherever possible, ensure that women do not receive training only in

traditional womens work.
(iii) Enhance womens management and decision-making capacities

through training geared to taking up supervisory and management
positions in private sector growth areas.
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d.
Income Generation/Entrepreneurship
(i)
Apply new and modern technologies that can improve womens

productive and earning capacity and income generation. When
technologies are upgraded in projects, women should be able to benefit
alongside men and also get the requisite training.
(ii)
Enhance womens participation in entrepreneurial and small business

activities in conjunction with employers associationsnot only in
microenterprise. Develop more linkages among enterprises of different
scales.
(iii) Along with credit, women should get effective training in new skills as
well as full information about markets, products, and techniques.
e.
Womens Rights
(i)
Promote schemes of having public day nurseries in each municipal

ward or village, so that all working women can use the facility for a
nominal fee.
(ii)
Governments can review and modify all laws that restrict womens
equal property rights through marriage, inheritance, or otherwise,
including their right to have access to credit without their fathers or
husbands permission.
2. Specific Project-related Antidiscrimination Issues for Ethnic

Discrimination
The following suggestions are for additional antidiscrimination steps that can
be integrated into the design of any project supported by ADB.
a.
Complaints committee
There should be a mechanism within projects for the resolution of
complaints of discrimination, harassment, or other working condition
concerns.
b.
Challenging stereotypes of minorities

Equality of opportunity and treatment means widening occupational
choices for members of minorities, and employment promotion and
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income-generating activities may often challenge traditional stereotypes

of the capacities of members of minorities. To meet such resistance in
a project, efforts must be made to identify this challenge at the design
stage and to provide support and encouragement to minority members
to take up the challenge and to the community to accept changing
images.
c.
Occupational health and safety

Special care needs to be taken in projects to ensure the health and
safety of all workers, including members of minorities. In many cases,
minority workers are unable to read safety instructions or to understand
safety and health training given to other workers.
d.
Health insurance and social security

In developing countries, ADB project workers as well as the selfemployed in microcredit schemes are unlikely to enjoy coverage of
social security or health insurance. A group insurance scheme in
partnership with local government agencies and/or nongovernment
organizations (NGOs) can be included in the design with as wide a
participation of local people as possible. All beneficiaries will contribute
to the cost.
e.
Encouraging minority groups/organizations

The project team should encourage minorities in the project area to
form and join groups/organizations representing their interests. These
can be used for raising awareness of possible discrimination as well as
for giving minority members information on such subjects as their
legal rights as workers, health hazards from occupations, and protective
measures against them.
f.
Protecting migrant workers

All these questions can be particularly acute when members of ethnic
minorities are migrant workers. It should be recalled that migrant
workers areor should beprotected on an equal basis by national
legislation, and that they have the same human rights as national
workers.
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Certain aspects of the project design may have negative impact on the
objective of reducing gender-based discrimination. The checklist provided in
Appendix 7 shows points where safeguards are needed.
3. Other Forms of Discrimination in Project Design
ADB has not developed specific guidelines on other forms of discrimination as it
has for gender discrimination, except the safeguard policies for indigenous
peoples.57 While some of the issues to be addressed are similar, others are
different. In all such analyses, ADB staff should be aware of the fact of multiple
discriminationi.e., that women members of ethnic minorities, for example,
are doubly vulnerable.
The economic and social benefits of addressing racial, ethnic and nationalitybased discrimination have many similarities to those encountered when addressing
gender discrimination. These include drawing on a larger possible workforce, and
the benefits of spreading economic development, education, and training into
sectors of the economy where they may have been lacking. One benefit that is
unique to this kind of situation is that increasing the access of minorities to economic
development will diminish social tensions and the possibility of civil conflict.
The issues to be addressed include prejudices of the rest of the national
community, and presumptions that members of ethnic minorities are not capable
by their very nature of doing certain kinds of work.
E. Forced or Compulsory Labor in Project Design

During the last few years there has been greater realization that forced labor in
its different forms can pervade all societies, whether in developing or industrialized
countries, and is by no means limited to a few areas of the world. Forced labor
cannot be equated simply with low wages or poor working conditions. Nor
does it cover situations of pure economic necessity, as when a worker feels
unable to leave a job because of the real or perceived absence of employment
alternatives. Forced labor represents a severe violation of human rights and
restriction of human freedom, as defined in the ILO conventions on the subject
and in other related international instruments on slavery, practices similar to
slavery, debt bondage (Box 13).
57
ADB. 2004. Indigenous Peoples. Operations Manual, Section F3. Manila.
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Box 13: An Example of Bonded Labor

Bonding workers through debts is, in fact, a widespread form of forced
labor in a number of developing countries. Sometimes it originates with a
poor and illiterate peasant pledging labor services to an intermediary or a
landowner to work off a debt over a period of time. Sometimes the
obligation is passed on from one family member to another, even down to
children, and from generation to another. The labor service is rarely defined
or limited in duration, and it tends to be manipulated in such a way that it
does not pay off the debt. The worker becomes dependent on the
intermediary or on the landowner and works in slave-like conditions. The
threat and, indeed, the occurrence of violence or other penalties for failing
to work turn an economic relationshipone-sided as it is to start with
into a forced labor situation.
Source: ILO. 2002. The International Labour Organizations Fundamental Conventions. InFocus
Programme on Promoting the Declaration. Geneva.
1. Addressing Forced Labor through Rural Development

A comprehensive strategy against forced labor must address the roots of the
problem, which very often lie in the lack of income and asset security of the
people whose freedom is at stake. Overall, this may require some reinforcement
of technical assistance programs in relation to rural employment and
development, the strengthening of rural workers organizations, and the creation
of conditions for genuine social dialogue in a rural setting.
Such a strategy might be pursued through a variety of innovative approaches
to rural development. Within the United Nations system there is now an increasing
emphasis on partnerships for poverty reduction, involving different agencies
such as ADBin accordance with their specific areas of competence. There might
also be links involving ADB, ILO, United Nations, and the private sector, as for
example under the Global Alliance Against Forced Labor. Under this scenario,
ADB and ILO can seek the inclusion of a specific component/s for the eradication
of forced labor in any rural development program that is planned or under way
in an area where its incidence has been detected. Greater attention might be
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given to eradicating forced labor in the context of pursuing sustainable agriculture

and rural development policies. This can include awareness raising, legal support,
microcredit, control of the activities of recruiting intermediaries, and other
activities as relevant.
In addition to rural development projects in places of origin, ADB could also
support integrated employment projects or rural-rural migration for temporary/
seasonal employment that include the entire cycle of recruitment from the places
of origin, transport of workers, employment conditions in the destination where
there is a risk of forced labor occurring, and repatriation.
This approach is best used for seasonal labor migration in commercial
agriculture, either within or across national frontiers, where there have been
indications of coercive recruitment and employment practices.
2. Forced Labor, Migration, and Human Trafficking
An estimated 2.5 million men, women, and children are victims of trafficking at
any point in time, and that at the very least one third of these are trafficked for
economic purposes other than sexual exploitation. These findings clearly indicate
that responses to trafficking need to move beyond the present focus on
commercial sexual exploitation of women and girls toward a more holistic
approach that includes the broader labor dimensions of human trafficking.58
In dealing directly with governments of DMCs, ADB can assist certain
government bodies in their fight against trafficking. For example, in much the
same way that ILO can strengthen/build the capacity of labor ministries leading
to improved labor inspection and administration, ADB can also work creatively
with law enforcement agencies to stamp out abusive conditions in underground
enterprises. ADB has gained positive experiences in the fight against trafficking
in its rural road projects, which could serve as model interventions (Box 14).
3. Migrants and Forced Domestic Work
Domestic work involves substantial numbers of mainly female migrant workers.
The ILO has documented the often abusive and unprotected working conditions
of domestic workers in a range of destination countries. A global analysis of
58
ILO. 2005. A global alliance against forced labor. International Labor Conference, 93rd Session 2005,
Report I (B). Geneva.
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Box 14: Preventing the Trafficking of Women and Children

A regional technical assistance for Preventing the Trafficking of Women
and Children and Promoting Safe Migration in the Greater Mekong
Subregiona aims to raise public awareness, improve subregional cooperation,
and increase developing member country capacity to combat trafficking
and promoting safe migration in the subregion.
a
ADB. 2003. Regional Technical Assistance on Preventing the Trafficking of Women and Children
and Promoting Safe Migration in the Greater Mekong Subregion. RETA: REG38471-01. Manila.
ILO is a partner in this project.
domestic work by children, including its most exploitative forms, was published
by ILO in 2004.59 Domestic workers are especially vulnerable to forced labor
because of the unprotected nature of their work and the highly personalized
relationship between the worker and employer (Box 15). Domestic work takes
place in the private household, which is typically excluded from labor market
regulations. Although labor inspection is required in all employment situations,
in practice the home is out of bounds for labor inspectors.
Box 15: An Example of Forced Domestic Work

A domestic worker is in a forced labor situation where the head of a
household takes away identity papers, forbids the worker to go outside
and threatens him or her with, for instance, beatings or nonpayment of
salary in case of disobedience. The domestic may also work for an unbearably
low wage, but that is another matter. If he or she were free to leave, this
would not amount to forced labor, but to exploitation.
Source: ILO. 2002. The International Labour Organizations Fundamental Conventions. InFocus
Programme on Promoting the Declaration. Geneva.
59
ILO. 2004. Helping hands or shackled lives: Understanding child domestic labour and responses to it.
Geneva.
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4. Financial and Nonfinancial Interventions for Prevention and

Rehabilitation of Bonded Labor
Bonded labor arises from a web of relations between worker and employer,
including but not limited to financial dependency. Discrimination and social
subordination are important root causes. Hence, an ILO project to promote the
prevention and elimination of bonded labor in South Asia in 2000 was designed
on the premise that appropriate microfinance services, adapted to the special
situation of very poor households, should be a core component of an effective
strategy to prevent debt bondage. The project seeks to develop financial and
nonfinancial interventions for both the prevention of bonded labor and the
rehabilitation of released bonded laborers (Box 16).
Box 16: Microfinance for Reducing Bonded Labor

Microfinance can be important both for reducing the dependence of workers
on wage advances from their employers, and for effective rehabilitation of
released bonded laborers.
An ILO project to promote the prevention and elimination of bonded
labor in South Asia is collaborating with local microfinance institutions to
test a range of financial services specially tailored to the needs of households
at high risk of falling into debt bondage. Such families need financial services
to smooth income and expenses, to manage risks, and possibly to pay for
social obligationsin essence, removing the need for employer credit.
Experience indicates the need for four core financial services, with the
emphasis on savings mobilization rather than credit, at least in the first
instance:
(1) Contractual savings. The project emphasizes savings and asset building
to create a buffer for the household to fall back on in times of emergency.
Clients contract to save a fixed amount of money, however small, on
a regular basis. They are meanwhile assisted with household financial
planning, so as to produce a lump sum of money for a specific purpose,
such as house construction, school fees or religious ceremonies.
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Box 16: (continued)

quid savings
(2) Li
Liquid
savings.. Families vulnerable to bondage need a safe place to store
small amounts of surplus cash, where it is accessible in times of need,
but not so accessible that the temptation to spend is hard to resist. In
some cases, savings are deposited weekly or fortnightly during group
meetings. But in others, where pressures to spend are the highest, clients
are provided with lockboxes that are kept at home so they can save on a
daily basis; accumulated savings are then deposited at the group meeting.
(3) Income-generating loans. Innovative approaches to credit for incomegenerating activities aim carefully to avoid putting clients in a potentially
worse situation through increasing their debt. The project is
experimenting with very small loans; penalty-free repayment holidays;
tailoring repayment schedules to the households expected cash flow;
and allowing each borrower in a group to have individual customized
loan amounts and terms, or no loan at all if they so wish.
(4) Emergency loans. These are sometimes given in parallel with an incomegenerating loan. The project strives to cultivate an approach to
repayment discipline in which the carrot greatly outweighs the stick,
with plenty of second chances given, as long as the problem clearly
stems from an inability rather than an unwillingness to repay.
Alongside the core financial services, the project also provides
necessary supporting services, such as household financial planning to
identify sources of high expenditures (dowries, religious ceremonies,
alcohol) and financial education; awareness raising on the legality of
employer and moneylender loans; community mobilization to cut down
on unsustainable expenditures; and skills training to start or expand
income-generating activities. Other services being tested include microinsurance, debt consolidation loans, and land leasing.
Source: ILO. 2005. A Global Alliance Against Forced Labor. International Labour Conference, 93rd
Session 2005, Report I (B). Geneva.
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5. Improved Labor Inspection and Law Enforcement for Forced Labor

Stamping out forced labor requires particular vigilance by law enforcement
institutions. Special programs have been established in some countries to tackle
forced labor in remote and rural areas, and appear to have paid some dividends.
It has been found that strengthening labor inspection services can be an
important measure, and preventive labor inspection strategies offer considerable
promise in eliminating forced labor. Although this type of project has usually
been implemented by ILO, ADB has been involved in some countries in related
policy and legal reforms.
F.
Freedom of Association and Right to Collective

Bargaining in Project Design
ADB staff should consider four interrelated priorities when considering the scope
of conventions 87 and 98, and ADBs response to loan requests:
(i)
ensuring that all workers can form and join an independent trade
union of their choice without fear of intimidation or reprisal and that
employers are free to form and join independent associations;
(ii)
encouraging an open and constructive attitude by private business

and public employers to the freely chosen representation of workers
and the development of agreed methods of bargaining and
complementary forms of cooperation concerning terms and conditions
of work;
(iii) promoting recognition by public authorities that good governance of

the labor market, based on respect for fundamental principles and
rights at work, makes a major contribution to stable economic, political,
and social development in the context of international economic
integration, the expansion of democracy, and the fight against poverty;
(iv) identifying the areas where the barriers to womens organization are
highest and ways of overcoming them, including through increased
appreciation of gender issues in collective bargaining; and
(v)
identifying obstacles to the rights of ethnic and other minorities to

join and form trade unions.
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During the project design, ADB staff and consultants should be aware of
various discussion points if issues on freedom of association and collective
bargaining become a concern in a particular project (Box 17).
G. Proactive Investments to Put Core Labor Standards

into Practice
Projects can be designed to address major problems of compliance under
implementation of CLS at the national or subnational level.
Examples of activities that can be undertaken to tackle governance problems
in the area of CLS include
(i)
strengthening national labor inspectorates;
(ii)
training of police and other enforcement officers in criminal aspects of

CLS (trafficking, child labor, bonded labor, etc.);
(iii) training of police and armed forces to deal with industrial disputes in
conformity with CLS;
(iv) strengthening national statistics offices for labor related matters;
(v)
capacity building for labor judges and tribunals;
(vi) capacity building for parliamentarians to deal with and correct CLS
issues;
(vii) extension of labor law protection and a supervisory capacity to the
informal economy or to economic sectors, such as agriculture.
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Box 17: Discussion Points on Freedom of Association and

Collective Bargaining
Are there mechanisms for voluntary collective bargaining?
How many trade unions are registered?
Are there trade unions active in the sector of the economy concerned
by the ADB activity?
Does the government or employer put obstacles in the way of

organization and collective bargaining?
What type of union is it (general, sectoral, etc.)?
Is there any type of affiliation (International Confederation of Free Trade

Unions, etc.)?
How many disputes are there relating to freedom of association and

collective bargaining? Have any complaints been made to the
International Labour Organization?
Are these disputes mainly with national or foreign enterprises?
Do collective agreements cover aspects of core labor standards and, if

so, which aspects?
Are there free and independent workers and employers organizations

at the national level?
Are there tripartite bodies at the national level with representatives

from the social partners? If so, are the workers and employers
representatives selected by their own organizations or appointed by a
government body?
At the enterprise level are there bipartite arrangements, such as joint

worker-management committees, to deal with disputes? Does the
disputes procedure follow conventional stages?
Are any such joint structures balanced so that neither management

nor workers dominate in terms of a majority?
Are worker and employer representatives appointed without outside

interference?
Have any worker or employer representatives been penalized for carrying

out their activities related to freedom of association and collective
bargaining?
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Project Implementation
In projects that are designed to promote or to take account of CLS, it will be
necessary to ensure that the standards are respected in the implementation of
the project, both during bidding process and during implementation of the
project. There will also be situations in which well-designed projects may
encounter CLS problems during implementation by executing agencies,
contractors, and subcontractors who violate these standards. Measures will have
to be put into place to ensure that standards are taken into account in the
letting of contracts for project implementation, which will involve information,
training, and awareness raising among other factors. ADB review missions should
ensure that projects are complying with CLS and with the terms of the contracts
in this respect.
What is described here is an ideal level and approach to ensure that CLS are
fully taken into account in project implementation. It currently exceeds the present
capacity and practices of ADB (and of other development agencies). Consideration
should, however, be given to the progressive implementation of these measures
in order to comply with the requirement that CLS be implemented in all ADB
activities. Advice can be sought from the regional representation of ILO if
difficulties are encountered.
A. Preparing the Bidding Documents

It will be necessary to determine whether ensuring the implementation of ILS/
CLS in the project will entail additional obligations of supervision, and other
direct costs. The following should be considered:
1. Review Standard Bidding Documents
Invitations to bid should include a specific reference to ILS/CLS, if needed. They
should include language indicating that the executing agency should ensure
that all work done under the project (for example, by contractors or others
providing goods or services) complies with applicable labor legislation, ensuring
in particular that no child labor or forced labor is used, that freedom of association
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and collective bargaining are available, and that equal remuneration for work
of equal value and other forms of nondiscrimination are applied. The bidding
document should also indicate that compliance with such provisions would be
monitored during the projects implementation. It is important to
(i)
identify the key procurement documents and the circumstances in

which they are used, particularly the standard conditions of contract;
(ii)
identify existing references to CLS and other labor standards in the

contracts used for the type of physical works proposed. General
Conditions of Contract will usually give an overview of what coverage
there is, but it is in the Special Conditions (or Conditions of Particular
Application) that any details will be specified in relation to local
circumstances;60
(iii) adapt contract documents to take account of specific labor standards

concerns in the particular project;
(iv) ensure that the documentation specifying terms indicate how additional
costs are to be priced; and
(v)
ensure that provision is made for monitoring and enforcing labor

standards under the contract.
In 2005, ADBs Procurement of Works Standard Bidding Document (SBD)

was amended to be consistent with the Multilateral Development Bank
Harmonised Edition 2005 prepared by the International Federation of Consulting
Engineers. Now the document includes 22 labor-related clauses covering some
areas of core labor standards.61 The Standard Bidding Document, Procurement
of Plant, Design, Supply and Install, Users Guide, includes 16 clauses in its
Section 7-General Conditions of Contract, which are partly related to CLS.
It should be noted that the above examples from ADBs bidding documents
were taken from their General Conditions of Contract, which should not be
modified in individual contracts. The necessary modifications due to CLS could
be done in Section 8-Particular Conditions of Contract.
60
61
Concerning the new International Federation of Consulting Engineers (FIDIC) contract documents
from 1999, the social issues could be added there as part of Particular Conditions where appropriate
subclauses into General Conditions could be presented. Concerning ADB standard bidding documents,
see the next paragraph.
See ADBs website: www.adb.org/Procurement/default.asp
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2. Review and Take Account of Typical Site Practices

Whatever the law or collective agreements specify, practices on site tend to be
different. Typical site practice for the sort of physical works (and categories of
contractor) being considered must be understood by the ADB team. For example:
(i)
Do employers/contractors in the sector keep records, and what do

they include?
(ii)
Do these records include the questions that need to be answered to

monitor the application of labor standards (age and sex of employees,
wages paid, accidents and illnesses, etc.)?
(iii) What are the contractors attitudes to unions or other forms of

organization?
(iv) Are site works committees, or some other form of worker/employer
consultation mechanism, usually present? Is there any form of worker
participation?
(v)
Do contractors regularly provide basic safety clothing and equipment?

Is it worn?
It will be necessary to carry out a kind of baseline survey or structured

discussion concerning the implementation of labor standards. It is critical for
successful implementation of the project that the technical staff supervising the
contract clearly understand the need to implement CLS, and also the possible
costs for the project. Additional financial needs might be caused by difficult
working conditions that may create special occupational safety and health
arrangements.
B. Implementing a Project
Project implementation begins with initial mobilization of government staff,
beneficiaries, materials, and resources. In most cases, the recipient government
has the main responsibility for implementation. Project implementation is
monitored by ADB through periodic review missions as well as through progress
reports submitted by the executing agency. Upon project completion, a factual
record of the implementation of the project is provided in the project completion
report (PCR), whereas a post-evaluation assessment of the performance of the
project is provided in the project performance audit report (PPAR).
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1. Preparing Implementation
ADB can assist and enhance project implementation by developing a
consultation process, addressing the stakeholder concerns, and building the
capacity of stakeholders to implement CLS.
a. Develop a Consultation Process
Several parties have a role to play in implementing ILS/CLS in the project, and
they are more likely to cooperate if they know what is expected of them and are
able to voice their concerns. Accordingly, it is important to
(i)
plan and budget for a series of stakeholder workshops to address

implementation issues;
(ii)
plan and budget for training and briefing sessions for specific groups,
e.g., trade unions, womens organizations, and organizations working
for the protection of child workers;
(iii) provide for separate training for employers and those supervising the
implementation of the contract (e.g., engineers on construction
projects); and
(iv) provide for discussion and awareness-raising sessions, in appropriate
cases, with workers under the project, especially where they may have
safety and health concerns, or where gender or other discrimination is
a particular concern (ethnically-divided regions).
b. Address Stakeholder Concerns
The concept of CLS is likely to be new to many of those involved in or affected
by the project. Various parties have rights, responsibilities, and liabilities that
should be addressed. The following list identifies the possible stakeholders that
may need to be consulted or involved during project implementation. A detailed
table of the initial concerns of stakeholders and suggested actions is presented
in Appendix 8.
The client (e.g., ministry carrying out public works)
Employers representatives
Association of contractors and individual contractors
Ministry of labor (department responsible for labor inspections)
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Trade unions for the sector
Department of social security and national insurance
Workers (permanent and daily wage) and adjacent communities
Other donors (bilateral and multilateral donors and finance institutions)
c. Build the Capacity of Stakeholders to Implement CLS

Capacity building is one of the most important components of any labor standards
scheme and an essential criterion for success and, in particular, for the
sustainability of the project. It is important that labor standards briefings are
included in all pre-bid meetings and ADB business opportunities seminars.
Materials for these meetings need to be prepared (in hand-out form as well as
on charts or overheads) and should cover
(i)
what the CLS are and what is their relationship to national and local
laws;
(ii)
business benefits for contractors in implementing CLS;
(iii) where CLS will be addressed in the conditions of contract and associated
specifications;
(iv) how they should cost each core labor standard in their bid;
(v)
who will monitor implementation on site; and
(vi) any incentives agreed for compliance or sanctions for noncompliance.

2. Child Labor Issues during Implementation
a. The Need for Holistic and Integrated Area-based Strategies
Tackling the child labor issue calls for a holistic approach and knowledge of all
the factors contributing to this problem. Data collection and research are vital
in understanding the phenomenon of child labor and the many forms it takes. A
partial solution may not lead to an improvement in the child labor situation,
and may make things worse at the household level. For example, a simple
prohibition of child labor at the workplace, without tackling income and
employment opportunities and lack of access to resources at the household
level, may increase the poverty situation of the child workers families, and may
even lead to worse forms of illegal and underground use of child labor.
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The following activities focus on the needs of children:

(i)
Children have been enrolled in schools for formal education through a

scholarship program.
(ii)
Socialization centers (drop-in centers) have been provided for children

to get together for a few hours during the day and play games.
(iii) In some of these centers, a library has also been established through
donation of books, including books received from the local district
education office.
(iv) Some centers provide health care facilities.
(v)
Nonformal classes have been conducted before integration of children

into formal classes.
(vi) Counseling for children and their families has also started.
b. Institutional Capacity and Community Support
The success of child labor programs and policies will depend on
(i)
feasibility and soundness of the plan of action;
(ii)
institutional capacity and earnestness of the proponents;
(iii) level of coordination and cooperation among the agencies and

institutions;
(iv) level of cooperation of the community members and/or various
stakeholders (e.g., employers and trade unions); and
(v)
level of awareness and social capital in the community or sector.
At each stage of implementation of projects and programs, an assessment

of these five factors should be undertaken and where inadequate, corrective
measures developed.
Some corrective measures include
(i)
making modifications and improvements to the original plan of action;
(ii)
capacity-development programs and values seminars for the

proponents;
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(iii) sufficient warning and indications to executing agencies of failures in

implementation, with coordination and agreement on how to correct
these failures;
(iv) in extreme cases, replacement of incompetent, corrupt, or erring
executing agencies;
(v)
in the case of bad coordination or lack of cooperation (including

disagreements) among key stakeholders and institutions, a mechanism
of problem solving through workshops, meetings, and intermediation
through key persons or agencies should be adopted; and
(vi) lack of social awareness or social capital should be corrected through

strong intensive values training and awareness-raising seminars and
workshops among the participants and institutions of the project.
Child labor elimination programs and projects usually are holistic and
integrated programs and the likelihood of achieving the desired results can be
further enhanced by good, regular progress reports on the various interventions
made in the project or program. Indicators of the effects of each intervention
should be clearly set out for each progress report, to ensure that the desired
results are being attained. Comprehensive, composite, or integrated indicators
should be developed to assess the overall impact of the project or program at
each implementation stage.
c. At the End of Implementation
It should be emphasized that evaluation of the project or program should
not be based only on short-term indicators, such as the number of children
released from child labor and put back into school. The following should also be
included where the explicit reason for the project was to eliminate child labor:
(i)
Did the children who were released/rescued from child labor return to
school and remain there to finish their education?
(ii)
Did the children go back to child labor within a relatively short time
after the project/program was completed?
(iii) Did the stoppage of child labor lead to better economic conditions for
the families and children involved, or did it lead to more deprivation
for them?
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(iv) Did the community or the sector benefit or suffer from the project or
program economically and socially?
(v)
Was child labor elimination limited to those target groups covered by

the projects or programs or were there positive effects in the community
or sector where the project/program was implemented?
Obviously these questions can only be assessed if there are follow-up

monitoring and evaluation processes in the program area or sector. Such
evaluations should ideally take place a significant period after the project or
program ends. This would require additional resources and funds. But, these
are necessary to ensure that the programs or projects were effective and ultimately
beneficial to the children, their families, and their communities.
3. Ensuring Equality and Avoiding Discrimination during
Implementation
a. Temporary Workers
In most developing countries, the majority of workers, especially on a large site,
are employed on a temporary basis even in formal contracting. Only the minority
of the total workforce in most Asian countries is made up of permanent
employees who are also registered for social security. Most workers, whether
they work in formal and community contracting or in self-help schemes, are
temporary workers.62
A major issue, especially in large-scale infrastructure projects, is whether
and how these temporary workers can receive benefits on a par with permanent
(and registered) workers. In practice, temporary workers, who are mostly unskilled
and among the poorest, receive neither the benefits of permanent workers nor
additional wage rates to compensate for the loss of benefits.63
62
63
The temporary category normally includes at least two categories of worker. Casuals are those
employed on a specific project, on daily wages, for specific, unskilled tasks. This group is likely to live
locally and work as laborers to supplement other livelihood strategies (e.g., in agriculture). A second
group can be referred to as permanent casuals, who often have many years of experienceoften for
the same employerbut have never been registered by any employer for social security.
The absence of social security benefits from temporary workers is usually not in itself a violation against
CLS. If national legislation covers such benefits for temporary workers, then the issue may relate to
equality or discrimination.
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What can be done will vary according to the local context and the size of
the project. However, in general:
(i)
Review the benefits enjoyed by all workers and compare the benefits
that permanent workers get with those of different categories of
temporary worker. Workers should not be discriminated against because
they are casual workers, especially if casual workers are mainly
composed of minority groups or women in a particular situation. Factors
to be taken into account are the regularity of work, the nature of the
task, and the skill involved.
(ii)
CLS, health and safety provisions, etc., should be common for all.
(iii) If the project continues for a sustained period of time (beyond the
legal limit for casual work) then laborers should be registered for social
security entitlements.
(iv) In the case of serious accidents, where it is not possible to bring casual
unskilled workers under the state social security system, accident
insurance should be provided to pay for disability, death, serious medical
expenses, and loss of income.
(v)
The best option for dealing with minor accidents may be the creation
of some form of local fund that can respond quickly to meet medical
expenses, because the bureaucracy in most insurance companies or
national insurance mechanisms is a deterrent to claiming small amounts
of compensation, especially by the less educated.
b. The Role of the Executing Agency in Gender Issues

The executing agency of the project should ensure effective and efficient project
implementation through, among other things, internal monitoring of gender
concerns identified at the project design stage and during the course of the
project. The executing agency monitoring team (Box 18) should review the
progress made and changes that take place during the project, with regard to
the initial quantitative and qualitative situation of men and women workers
involved.
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Box 18: Composition of the Executing Agency Monitoring

Team in Gender Issues
(i) Ensure a gender balance in the composition of the team.
(ii) Ensure the participation of a gender consultant with expertise in labor
and employment issues.
(iii) Include an official of the gender unit, if any, established within the
employers and workers organizations.
(iv) Include a representative of the gender unit from the ministry responsible
for labor.
(v) Include organizations concerned with women and gender issues at the
national and/or community level, especially in the field of labor and
employment.
The executing agency team should also carefully monitor any possible
discriminatory outcomes for men or women workers as a result of the project. If
indirect or direct gender-based discrimination emerges from the project with
respect to access to employment and occupation, access to vocational training
and education, or in terms of conditions of work, the executing agency will
have to make adjustments to the new needs and conditions of men and women.
Adjustments should be made with the involvement of all stakeholders concerned
within and outside the project team and ADB, particularly the contractors and
subcontractors, workers and employers organizations, ministries responsible
for labor, gender units, men and women workers, and civil society organizations,
especially those with expertise on gender and employment issues.
There are several basic steps during implementation:
(i)
Contact womens departments of employers and workers

organizations as well as the government to inform them about ADB
gender and development objectives, and the project guidelines to
promote gender equality in carrying out the project.
(ii)
Contact the unit within the ministry/department for labor that is

responsible for gender and womens issues, to inform them about
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ADBs gender and development guidelines and project guidelines to

promote gender equality.
(iii) Inform contractors and subcontractors about the gender equality
guidelines of the project.
(iv) Meet special interest groups, including womens associations, in
addition to the traditional social partners, to gain their input on the
implementation, monitoring and evaluation of strategies and activities.
(v)
Consult womens groups to help increase the participation of women

in project activities and to assist in designing implementation and
evaluation activities that have particular appeal and significance for
women. Media networks of womens groups may be particularly useful
to advertise project activities.
(vi) Set up a mechanism for receiving complaints from men and women
workers as well as from other persons living in the project area who
are adversely affected by the operations. The complaints mechanism
should be made easily accessible to all workers, especially women from
rural areas.
A detailed, non-exhaustive list of indicators to help the monitoring team
assess to what extent the project has worked toward the promotion of gender
equality and nondiscrimination in employment and occupation is found in
Appendix 9.
Members of the executing agency monitoring team should make occasional
inspections on site to verify these reports and seek explanations for any lapses
that have occurred, as well as identify remedial action to address them.
At the end of the monitoring and evaluation exercise, the executing agency
should identify and undertake remedial action to address any discriminatory
practices resulting from the project. Remedial action can be identified through
a rapid gender assessment of the project with the direct recipients and intended
beneficiaries. This will provide factual information about womens and mens
roles, needs, and constraints, and at the same time raise awareness and increase
the capacity of those responsible for implementation in addressing gender and
equality issues. On the basis of such an inventory, more detailed gender-specific
measures can be designed and implemented to reduce and eliminate sex-based
discrimination in employment.
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c. Dialogue with Relevant Stakeholders during Implementation

During project implementation, the following stakeholders can be involved in a
way that allows for meaningful dialogue and contribution.
(i)
Womens national machinery

machinery.. Most countries have a government
department or a bureau for womens affairs. This agency has experts
on the legal and economic position of women in the country.
(ii)
Ministry of labor
labor. There is usually a department for labor that keeps
track of the application of labor laws and their violations. The ministry
often has a statistical wing that should have gender-disaggregated
data about labor. Also there is usually a gender focal point or womens
department.
(iii) Trade unions or other workers organizations

organizations, particularly their
womens departments.
(iv) Employers associations
associations. Most do not have womens departments but
they may have someone who is involved with women entrepreneurs
or women in management.
(v)
National statistical bureaus have the broadest coverage of labor market

statistics through household surveys and wage and income surveys,
disaggregated by sex and other criteria.
(vi) Local womens and peoples organizations as well as NGOs working

with women have a local perspective on gender and work issues.
(vii) Local teachers, doctors, or womens clinics may have suggestions for
monitoring women workers health, and work-related education issues.
O offices and ADB resident missions as focal points.
(viii) Local IL
ILO
4. Forced and Compulsory Labor Issues during Implementation
Forced and compulsory labor issues, although very rare situations in ADB projects,
may appear indirectly in ADB project areas in their new forms: trafficking of
women and children, migration for bonded domestic labor, and for economic
exploitation. Many migrant workers, who are particularly subject to this kind of
abuse, are engaged in construction projects. Therefore, the project design stage
is important. Monitoring activities during implementation by the executing agency
or by an independent external agency, e.g., an NGO, would greatly reduce such
situations.
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5. Freedom of Association and Collective Bargaining during

Implementation
The issues concerning freedom of association and collective bargaining may concern
some construction and civil engineering projects where workers of different
contractors might be associated with several trade unions, or when disputes
concerning the application of collective agreements may appear. ADBs role is not
to be involved in these issues except to verify compliance with the respective CLS.
C. Summary of Monitoring Activities for Compliance

with Core Labor Standards
One of the main reasons that CLS are not implemented is the absence of
monitoring. National inspection services and other mechanisms are under-funded
and under-resourced, and monitoring of labor law is sometimes considered to
be an unjustified expense. An effective monitoring system for implementing this
aspect of ADB interventions, with clear roles and responsibilities for carrying out
the monitoring task, could improve the present situation. It is also important
that this monitoring be visible, because of the exemplary effect this will have.
Incentives and sanctions play a part in monitoring because contractors are unlikely
to implement the required standards unless they see a benefit to themselves in
doing so (or a penalty for their failure). Monitoring systems should be agreed
on in advance and put in place before the physical work starts. This means,
among other things, that a decision should be made on who will be responsible
for monitoring and the form of reporting. In ADB projects, the executing agency
is usually responsible for monitoring. Sometimes, if the project is a complicated
one, or draws a lot of public interest, like large power/resettlement projects, an
independent monitoring team/agency could be hired.
Site meetings should have a regular CLS slot when the record system is
checked and any other problems regarding CLS implementation are discussed
and resolved. Members of the monitoring team, if such a team exists, should
attend as many site meetings as they canthese will be the main mechanism
for resolving problems.
It is often not possible for ADB operational staff to monitor closely ongoing
projects except to the extent established within the normal review functions.
However, if the project would include difficult and even controversial labor issues,
it would be helpful to hire an outside agency, e.g., a local NGO, to monitor the
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project. The following list gives some appropriate monitoring mechanisms to

check the implementation of each core labor standard mentioned in the contract,
including
(i)
visual monitoring to check that workers are using the correct personal
protective equipment for the job intended; that women are not being
sidelined into only one type of job; that children are not working; that
the record system is working, and so on;
(ii)
the record system to check who is employed and for what duration,
working hours, schedule of work for the day, pay, accidents, social
security, tax and union dues, etc.;
(iii) conversations with workers to cross-check all the above;

(iv) discussions of inconsistencies with site agents and/or contractors at
regular site meetings; and
(v)
agreements on how to deal with consistent noncompliance by a

contractor, for instance through incentives and/or sanctions.
D. Project Completion and Postevaluation

At the conclusion of implementation, a project completion report (PCR) is
prepared as a factual record of problems encountered and how they have been
overcome; any adjustments in project scope and implementation arrangements;
the degree to which appraisal targets have been achieved; and the performance
of various actors, including contractors, suppliers, consultants, executing agency,
the government, and ADB. At this stage, the focus should also be on labor
issues and how the CLS were implemented, if they were important in the project.
Any adverse effects of the project on people, mitigation and compensation
measures adopted, and the results of these measures should be assessed.
Normally, postevaluation, through the preparation of a project performance
evaluation report (PPER) for the project,64 is undertaken after significant project
benefits start to flow.65 Because PPERs are prepared a few years after the end of
the project implementation (around 25% of the projects are targeted for
evaluation), it gives a good opportunity to evaluate also the impact of CLS on
project activities.
64
65
http://www.adb.org/documents/guidelines/evaluation/pper-pso/default.asp
In selected cases, ADB also undertakes re-evaluation of projects 3-5 years after PPER preparation.
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Additional References
Additional References
Anonuevo, Carlos Antonio, FES. 2002. Labor Standards and Development
Institutions. Paper presented at the ILO/ADB Regional Workshop on Labor
Standards, 1819 September. Manila.
Asian Development Bank (ADB). 1999. Fighting Poverty in Asia and the Pacific:
The Poverty Reduction Strategy, Manila.
. 2001. Handbook on Poverty and Social Analysis: A Working Document.
Manila.
. 2003. ADBs Crisis Response to SARS: SARS Status Report. Manila.
. 2003. Our Framework, Policies and Strategies on Social Protection. Manila.
. 2003. SARS: Economic Impacts and Implications. ERD Policy Brief No. 15.
Manila.
Hopkins, Michael and Ivor Hopkins. 2002. Labour Standards and Corporate Social
Responsibility: The Need for a Planetary Bargain. Paper presented at the
ILO/ADB Regional Workshop on Labor Standards, 1819 September.
Manila.
ICFTU and Anti Slavery International. 2001. Forced Labour in the 21st Century.
Illo, Jeanne Frances I. 2002. Strengthening the Role of Labour Standards in
Selected Developing Member Countries: Country Report on Gender
Discrimination and Labour Standards in the Philippines. ADB-ILO RETA
Project No. 5887.
International Labour Organization (ILO). 1999. Freedom of Association and
Collective Bargaining: Collective bargaining: A Fundamental Principle, a
Right, a Convention. Labour Education 114/115. Geneva.
. 2001. Development of Indicators on Child Labour. International
Programme on the Elimination of Child Labour. ILO-IPEC.
_____. 2001. An ILO Code of Practice on HIV/AIDS and the World of Work.
Geneva.
111
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. 2001. Guidelines on Occupational Safety and Health Management Systems

ILO/OSH. Geneva.
. 2001. Stopping Forced Labor: ILO Global Report. Geneva.
. 2002. Decent Work and the Informal Economy: International Labour
Conference: 90th Session 2002, Report VI. Geneva.
. 2005. IPEC action against child labour 2004-2005: Progress and future
priorities. International Programme on the Elimination of Child Labour.
ILO-IPEC. (Note: This is the latest implementation report of the same
kind cited here.)
Kissinger-Matray, Dana. 2002. Can International Standards Promote CSR? ISO
Investigates the Question. Paper presented at the ILO/ADB Regional
Workshop on Labor Standards, 1819 September. Manila.
Koompraphant Sanphasit, Suwanna Tulyawasinphong, and Payongsri Khanthikul.
2002. Strengthening the Role of International Labour Standards in
Selected Developing Member Countries: Country Report on Child Labour
in Thailand. ADB-ILO RETA Project No. 5887.
Ladbury, Sarah, Andrew Cotton, and Mary Jennings. 2003. Implementing Labor
Standards in Constructiona Sourcebook. Leicestershire: Loughborough
University, and London: Department for International Development.
Lim, Joseph Anthony. 2002. Strengthening the Role of Labour Standards in
Selected Developing Member Countries: Regional Review: Child Labor.
ADB-ILO RETA Project No. 5887.
Masum, Muhammad. 2002. Strengthening the Role of International Labour
Standards in Selected Developing Member Countries: Country Report
on Child Labour in Bangladesh. ADB-ILO RETA Project No. 5887.
Organisation for Economic Co-operation and Development (OECD). 2000.
International Trade and Core Labor Standards: Policy Brief. Paris.
. 2001. OECD Guidelines for Multinational Enterprises: Annual Report. Paris.
. 2001. Foreign Direct Investment and Sustainable Development. OECD
Global Forum on International Investment. Mexico City.
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Background
Ortiz, Isabel, editor. 2001. Social Protection in Asia and the Pacific. Manila: ADB.
Shrestha, Binod K. 2002. Strengthening the Role of International Labour
Standards in Selected Developing Member Countries: Country Report
on Child Labour in Nepal. ADB-ILO RETA Project No. 5887.
Vaidya, S.N.. 2002. Strengthening the Role of Labour Standards in Selected
Developing Member Countries: Country Report on Occupational Safety
and Health in Nepal. ADB-ILO RETA Project No. 5887.
Villamil, Winfred. 2002. Strengthening the Role of International Labour Standards
in Selected Developing Member Countries: Country Report on Child
Labour in the Philippines. ADB-ILO RETA Project No. 5887.
World Bank. 2002. CSR and National Competitiveness: Good for Business and
Good for Society. Hanoi.
. 2003. Company Codes of Conduct and International Standards: An
Analytical Comparison. Washington, DC.
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Appendix 1
Directory of ILO Offices in Asia
and the Pacific
Program
Telephone
Fax
ILO Regional Office for

Asia and the Pacific in
Bangkok (ASIE)
+66.2.288.17.10: Reg.
Director
+66.2.288.17.85: Deputy
Reg. Director
+66.2.288.12.34: ESCAP
Operator
+66.2.288.30.62
+66.2.288.30.56: Director
(for urgent matters only)
[email protected]
ILO Subregional Office

for East Asia
(SRO-Bangkok)
+66.2.288.22.19: Director
+66.2.288.22.20
+66.2.288.17.11: Deputy
Director
+66.2.288.17.96
+66.2.288.30.62
+66.2.288.30.58: Director
+66.2.288.30.60
+66.2.288.30.43: Deputy
Director
[email protected]
ILO Office for China and +86.10.65.32.50.91

Mongolia
+86.10.65.32.50.92
(ILO-Beijing)
+86.10.65.32.50.93
+86.10.65.32.50.94
+86.10.65.32.50.95:
Director
+86.10.65.32.50.96:
Deputy Director
+86.10.65.32.14.20
[email protected]
ILO Office in Sri Lanka

(ILO-Colombo)
+94.1.50.05.39: Director
+94.1.59.25.25
+94.1.50.08.65
[email protected]
ILO Office in
Bangladesh
(ILO-Dhaka)
+880.2.911.29.07:
+880.2.811.42.11
Switchboard
+880.2.911.28.36
+880.2.32.92.84
+880.2.911.28.76
+880.2.811.47.05
+880.2.811.69.89: Director
[email protected]
ILO Office in Viet Nam

(ILO-Hanoi)
+84.4.846.51.00
[email protected]
ILO Office in Pakistan

(ILO-Islamabad)
+92.51.227.64.56
+92.51.227.91.81
+92.51.227.64.57
+92.51.227.91.82
+92.51.227.64.58
+92.51.227.33.68: Director
+84.4.846.51.01
E-mail
[email protected]
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Appendix 2
Program
Telephone
Fax
E-mail
ILO Office in Indonesia

(ILO-Jakarta)
+62.21.314.13.08
+62.21.310.07.66
+62.21.391.31.12
+62.21.315.55.75:Director
[email protected]

for South-East Asia
(SRO-Manila)
+63.2.580.99.00 Trunk
line
+63.2.901.01.00: UNDP
+63.2.580.99.01: Director
[email protected]

for South Asia
(SRO-New Delhi)
+91.11.460.21.01/02/03/06
+91.11.464.79.73: ILO/
+91.11.464.79.72: Director SAAT
+91.11.460.21.11: ILO
Office
ILO Office for Fiji, Papua

New Guinea, Solomon
Islands, Kiribati and
other South Pacific
islands (ILO-Suva)
+679.331.34.10:
Switchboard
+679.330.97.11: Director
+679.331.31.46
+679.331.38.66
+679.330.04.10: ISD
+679.330.02.48
[email protected]
ILO Office in Japan

(ILO-Tokyo)
+81.3.54.67.27.01
+81.3.54.67.27.02
+81.3.54.67.27.03
+81.3.54.67.27.00
[email protected]
ILO Office in Nepal

(ILO-Kathmandu)
+977.1.53.17.52
+977.1.54.21.29
+977.1.53.13.32
[email protected]
+63.2.580.99.99 Incoming
+63.2.580.99.97:
Outgoing
+63.2.580.99.96: Project
[email protected]
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Appendix 2
ILO Supervision of the
Application of Conventions
A. ILO Sources on the Application of ILO Standards
The International Labour Organization (ILO) has adopted many conventions and
recommendations over the years that have been widely ratified and become
binding on the countries that ratify them. Naturally, these include all Asian
Development Bank (ADB) developing member countries (DMCs) that are ILO
members.
The ratifications for each country can be found on the ILO website (http://
www.ilo.org), under International Labour Standards.
B. ILO Supervision of the Application of Conventions

ILO also carries out detailed supervision of the application of all its conventions
by member states, principally on the basis of reports from governments
supplemented by information from employers and workers organizations in
each country. These reports are examined by the ILO Committee of Experts on
the Application of Conventions and Recommendations, which may comment
on the application of these conventions. The Committee of Experts makes two
kinds of comments: observations, which are comments on the most important
matters arising, and are published in an annual report to the International Labour
Conference, as well as on the ILO website; and direct requests, which are not
published as such, but after a short interval (to allow governments time to receive
and consider them) they may be found on the ILO website.
Each year the ILO Conference establishes a committee of governments and
of employers and workers representatives to examine the Committee of Experts
report. The Committee contacts about 25 of the governments referred to in
that report for a more detailed discussion of the observations made concerning
it, and these discussions also form part of the record of review of a countrys
implementation of the convention concerned.
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Appendix 2
Reports on most conventions are due every 5 years, but for a set of more
important conventionsincluding all the core labor standardsreports are due
every 2 years. Any comments ILO may have on the application of a core labor
convention will therefore not be more than 2 years old, thus representing a very
current view.
ILO has various complaints procedures by which complaints may be made
of the way in which governments are applying conventions, and the results of
these also are published on the website. These take three forms, the first two of
which can be used only as concerns conventions the state concerned has ratified.
(i)
Complaints under Article 26 of the ILO Constitution, leading to the

establishment of a commission of inquiry. These are rare, but may be
invoked in very serious cases.66
(ii)
Representations under Article 24 of the ILO Constitution, which may

be submitted by employers or workers organizations. These are more
frequent, because they can come from nongovernment sources and
are examined by an ad hoc committee of three members of the
governing body of ILO.
(iii) The Committee on Freedom of Association, which can receive

complaints of violations of freedom of association even against
countries that have not ratified the relevant ILO conventions, based
simply on membership of the ILO. The committee is composed of nine
members of the governing body, representing employers, workers, and
governments, and has considered more than 2,000 complaints.
Because there are now more than 7,000 ratifications of ILO conventions,
ILO does not publish regular summaries of the way in which each country is
applying each convention. However, the Committee of Experts does examine
about 2,000 reports a year, so a great deal of information is available.
An additional measure is found under the 1998 Declaration on Fundamental
Principles and Rights at Work, which relates only to the core labor standards.
Countries that have not ratified all eight ILO core conventions are required to
report annually on measures they are taking to implement the principles covered
66
A recent example concerning Asia is Myanmar as concerns the application of the Forced Labor Convention,
1930 (No. 29).
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by these conventions. This is particularly relevant to Asia, which has the lowest
rate of ratification of CLS of any ILO region. Reports are reviewed by the
Declaration Expert-Advisers, which publishes a compilation of governments
reports, workers and employers observations on them, and governments replies
to these observations, on the ILO website.67
67
For detailed information see the Declaration web site at: http://www.ilo.org/dyn/declaris/
DECLARATIONWEB.INDEXPAGE
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Appendix 3
Appendix 3
Summary Labor Market
Assessment
The country poverty analysis should include a summary labor market assessment
(SLMA), to be reflected in the country strategy and program. Given that work is
the main source of income for the poor and, as development proceeds,
employment becomes the major source of economic support for workers and
their families, the SLMA is critical to help identify the countrys development
options. A labor market assessment should recommend policies to ensure
inclusive, labor-absorbing, and efficient development patterns. Improving labor
market operations is an important element of strategies to reduce poverty,
assisting human capital development, addressing gender discrimination,
allocating a countrys human capital resources to their most productive uses,
enhancing welfare, and encouraging growth and development.
The SLMA should be brief and concise, focused on the determination of country
priorities by revealing employment patterns. The size of the formal and informal
sectors; sectoral distribution (population engaged in agriculture, industry, and
services); rural and urban active population; evolution of real wages; role of women
in the labor force; working conditions; and compliance with national and
international labor laws and standards, including the reported existence of child
or bonded labor and violations to other core labor standards (CLS), will all provide
information to help determine country priorities. In some countries, the priority
attention will be to assist unemployed or underemployed working-age populations
to find employment opportunities or to fight child labor. In others, the rural areas
may have been forced to shoulder a disproportionate burden of the countrys
social problems, and strengthening rural systems may be a priority. Labor absorption
is essential to avoid poverty. The country SLMA should evaluate which sectors/
subsectors and geographical areas have a demand for labor and identify which
areas may have an unmet supply of labor, to identify the right mix of public policies.
Labor market assessment is a key element in the strategic link between economic
growth and poverty reduction, and the assessment should provide
recommendations to ensure efficient and inclusive development patterns.
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The SLMA will be based on secondary sources. Some institutions, such as

the International Labour Organization (ILO) have comprehensive country studies;
other organizations, such as the World Bank, have selected country studies. The
key information required for a labor market assessment includes the countrys
development pattern, the structure of the labor market (supply and demand),
the institutional framework (labor market legislation, administrative structure,
social stakeholders), and policy analysis. Some indicative, not prescriptive, notes
are presented below.
A. Labor-absorbing Development Pattern

The assessment of the labor-absorbing development pattern of the country should
be based on a comparison of the composition of economic growth (primary,
secondary, tertiary sectors) and the sectors labor intensity (labor force in primary,
secondary, and tertiary sectors), leading sectors of the economy, the size of the
informal sector, domestic and foreign investment prospects, and growth
projections in the medium and long term.
(i)
What are the characteristics of growth and poverty? Has the poverty
rate been reduced at the same speed as the rate of growth? Has growth
been pro-poor, trickled down? Has growth been sufficient to employ
all the population of working age?
(ii)
Which are the most dynamic sectors of the economy? Are they laborintensive?
(iii) What is the percentage of the population below 18 years of age? Will
the economy be able to absorb all new entrants into the labor market?
(iv) Which sector is the countrys niche in the world economy? Is this leading
sector labor-absorbing? If not, is it taxed? Do the tax revenues benefit
those outside the labor market?
(v)
Is the growth rate low? What are the barriers to investment by the
private/public sector? What can be done to accelerate growth while
ensuring pro-poor use of scarce public resources?
(vi) Which sectors, in which geographical regions, should be promoted in

the short/long term to secure employment and prosperity for all
citizens?
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Appendix 3
B. Structure of the Labor Market

The main purpose of this analysis is to identify labor market imbalances. This
can be done by analyzing the demand and supply for labor separately, and by
identifying the major sources of imbalances such as geographical, skills,
education, or gender factors. Labor supply attends to the human capital available
in the nation, while labor demand attends to the human capital needs. This
allows the identification of imbalances and mismatches in the supply and demand
of labor, which can be addressed in future development policies.
1. Labor Supply
The analysis of labor supply starts with demographic data. Many Asian and
Pacific countries have fast growing populationson average, 40% of the
population are children and youth below 19 years old. Their economies must,
therefore, grow particularly fast if they are to develop employment in the formal
sector. Without that development, employment is confined to the informal,
normally subsistence economy, and these countries have an impossible task in
reducing their poverty levels. The important consideration is labor force growth
and labor force growth is obviously linked to controlling population growth.
The analysis of labor supply should also center on the working-age population,
including the economically inactive. Especially during deep economic changes,
substantial flows of workers occur between the economically active and
economically inactive pools. Following a typical ILO classification of the population
according to labor categories, the statistics below should provide a comprehensive
picture of labor supply:
(i)
Demographic structures by major age groups: children and youth (0

14 or 018); working age population (1560/65 or 1960/65); elderly
(60/65+); birth, death, and natural growth rates.
(ii)
The size, structure (male/female; urban/rural; age; education) and

projections of the working-age population (i.e., men and women 15
60/65); employment (and, if available, underemployment) by economic
activity, occupation, gender, age, education, urban/rural, formal/
informal and public/private sectors.
(iii) Unemployment by gender, age, education, and urban/rural sectors.
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(iv) Economically inactive population by group (housewives, students,

discouraged job seekers, and others), age, gender and education.
(v)
Labor migration (internal and external) and impact on the structure of

the labor force.
(vi) Literacy rates, average years of schooling, and changes in the education
system affecting school retention.
(vii) If relevant, changes in the pension system affecting retirement age.
2. Labor Demand
The basic characteristics of labor demand that need to be assessed are the
following:
(i)
Economic structure (national and regional, by sector)
(ii)
Wage levels and earnings
(iii) Relationship between the formal and informal sectors

(iv) Relationship between rural and urban sectors
(v)
Size and structure of the public sector
(vi) Size and structure of the private sector, and potential for its development
Countries with a significant shortfall between economic growth rates and
population growth rates are bound to have substantial informal sectors. Assessing
labor demand, especially on a detailed industry or occupation level, may be
difficult except in general terms. For most policy prescriptions, this proxy may be
sufficient. Quantification of the informal sector requires effort in terms of (i) its
definition and, once a definition is agreed, (ii) estimating its size.
The promotion of small and medium-sized enterprises is normally a good
practice in order to generate employment and economic growth. The
development of a manufacturing sector and the type and level of the sector
depend on a variety of factors, such as accepted wage levels and the skills of the
labor force. Typically, countries at the lower end of development gain immediate
improvements in incomes as a result of direct foreign investment into
manufacturing but the gains are limited unless there is a longer-term movement
toward higher-level manufacturing involving greater skills. Services cover a wide
range of sectors, notably tourism and commerce. These sectors are noted for
numerous small enterprises and for informal employment in general. Tourism is
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Appendix 3
usually seen as a growing industry in the developing member countries (DMCs)

of the Asian Development Bank (ADB), but a great deal depends on the nature
of the country in questionon its openness, perceived levels of corruption,
potential for civil unrest, natural or historical sites, and quality of infrastructure.
The final stage of the analysis of the labor demand consists of identifying
the major constraints for matching labor supply with existing demand.
C. Existing Labor Market Policies

Labor market policies comprise active and passive labor market programs. Active
labor market programs include
direct employment generation (promoting small and medium

enterprises, public works);
labor exchanges or employment services (job brokerage, counseling),

linking supply of with demand for labor; and
technical and vocational training and skills development programs

(training and retraining of labor).
Passive labor market policies include unemployment insurance, income

support, and a legislative framework that should strike a balance between
economic efficiency and labor protection. An appropriate legislative framework
will include provisions on such issues as minimum age, maximum hours and
overtime, labor contracts, industrial relations, special protection appropriate for
new mothers, and antidiscrimination provisions to protect women and minorities.
Internationally recognized labor standards, when ratified, are also part of the
legislative framework of a DMC. No explicit ratification is needed for CLS to be
part of the legislative framework of a country.
The primary goal of looking at the labor legislation is the identification of
(i) legislation that acts to restrict the operations of the labor market, and
(ii) possible noncompliance with the international CLS. All ADB interventions
must be designed in accordance with national and international legislation
such as the CLS. The most relevant labor market legislation may include
(i)
legislation on CLS;
(ii)
wage policies, which include legislation on minimum wages;
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(iii) job security provisions, which cover recruitment and separation of

employees;
(iv) working conditions, which cover such issues as working hours, leave
provisions, and occupational health and safety; and
(v)
other relevant legislation, such as regulations controlling labor mobility

(e.g., internal passports) and enterprise-based forms of social
protection, including pensions and housing.
Regarding administrative structures, analysis of existing labor market policies

may include
(i)
enumeration of existing labor market policies (number and types of

policies/programs);
(ii)
organizations responsible for implementing labor market policies,

including coordination between organizations;
(iii) sources of finance of labor market policies, including flow of funds

from central to local units and cost recovery procedures, if any;
(iv) target groups and program effectiveness; and
(v)
capacity to adequately inspect working conditions.
The analysis should avoid long narratives and statistical tables, but concisely
evaluate the effectiveness of the countrys labor market policies and point out
areas where development is needed.
D. Recommendations
The steps above should allow (i) a first assessment of the mismatch of the demand
and supply of labor; and (ii) determining whether the current development pattern
of the country and labor market policies framework assist in matching the supply
and demand of labor. This should allow recommendations on employmentgenerating policies and investments that may correct national or regional
imbalances, and address uncovered problems in the labor market. The ADB
portfolio should support inclusive labor-absorbing development patterns,
enhance welfare, support compliance with national and international labor
standards, and help to allocate human capital to its most productive uses.
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Appendix 3
Any proposed ADB labor or social protection intervention requires negotiation

with many stakeholders, particularly the social partners. Proposed reforms, if
any, should be discussed with all relevant players, normally with the national
commission for social protection or, in its absence, with counterpart ministries,
employers and workers organizations, and other civil society partners and
development institutions (e.g., ILO, World Bank) present in the country.
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Appendix 4
Key Indicators of the
Labor Market
Key indicators of the labor market respond to the need of the International
Labour Organization (ILO) and its constituents, and of policymakers and
researchers for an easily accessible, reliable, and user-friendly tool for locating
timely information on labor markets that is also comparable across countries.
This information is essential for assessing policy impact, identifying policy gaps,
and for shaping appropriate responses in the future. In ILO, the decent work
agenda aims to promote opportunities for women and men to obtain productive
work, in conditions of freedom, equity, security, and human dignity. The indicators
provide an image of the labor market situation that can be used to help develop
integrated strategies to promote standards and fundamental principles and rights
at work, employment, social protection, and dialogue as well as the crosscutting
themes of gender and development.
There are 20 key indicators that help to provide responses to the following
kinds of questions:
(i)
What types of economic activities are people engaged in?
(ii)
What is the size and composition of the labor force?
(iii) How many hours do people work and how much do they earn for this
work?
(iv) How many people are without work and looking for work?
(v)
What types of inequalities exist, for example, in terms of earnings and

the employment situation?
(vi) Are earnings keeping pace with the cost of living?

(vii) How are youth and women faring in the labor market?
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Appendix 4
The indicators are:

(i)
Labor force participation rate
(ii)
Employment-to-population ratio
(iii)
Status in employment
(iv)
Employment by sector
(v)
Part-time workers
(vi)
Hours of work
(vii)
Informal sector employment
(viii) Unemployment
(ix)
Youth unemployment
(x)
Long-term unemployment
(xi)
Unemployment by educational attainment
(xii)
Time-related underemployment
(xiii) Inactivity rate

(xiv)
Educational attainment and illiteracy
(xv)
Manufacturing wage trends
(xvi)
Occupational wage and earning indices
(xvii) Hourly compensation costs

(xviii) Labor productivity and unit labor costs
(xix)
Labor market flows
(xx)
Poverty and income distribution
Illustrative List of Labor Market Indicators and Products. The list of

information sets below, derived from labor market indicators, is not intended to
be exhaustive, but should rather be considered illustrative. In reality, the list
developed for an individual country should correspond to the current labor market
concerns of that country. As the concerns change, so will the information
requiredfacilitating decision making by policymakers and individuals, and
monitoring and evaluation of policies and programs.
(i)
Labor supply (employment, unemployment, underemployment with

appropriate coverage of age and sex, geographical location, education
and training profile, occupation, and economic activity)
(ii)
Hours of work and wages (from establishment-based activity, including

surveys)
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(iii) Skill shortages and current and likely future training needs
(iv) Occupational outlook
(v)
Job seekers and vacancies
(vi) Retrenchment and displacement

(vii) International migration
(viii) Work permits in force
(ix) Training on offer, facilities, staffing, skills outputs produced
(x)
Information from tracer studies
(xi) The informal sector

(xii) Labor disputes
(xiii) Occupational accidents and injuries
(xiv) Social security statistics
(xv) Membership of trade unions and employers organizations
Illustrative List of Labor Market Indicator Products
(i)
Annual report on the performance of the labor market
(ii)
Labor market bulletins (monthly, quarterly, biannually)
(iii) Thematic report

(iv) Sector studies
(v)
Position papers
All labor market indicators and derived products should be gender specific.
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Appendix 5
Appendix 5
Economic Rationale for the
Eradication of Child Labor
The main reasons for giving significant attention to child labor are
(i)
(ii)
protection of children and their rights,

ensuring conditions conducive to the proper growth and development
of children, and
(iii) preventing and mitigating the negative impact of child labor on the
macroeconomy and labor markets.
In terms of child protection, the argument is clear-cut, simple, and strong.
The child is deprived of her/his right to be a childto study, to play, to socialize
with her/his peersand must not undertake inappropriate work or have the
responsibilities and burden of having to earn an income, nor be physically,
psychologically, or emotionally abused and harmed. In the short term, the child
has a high chance of becoming a school dropout or non-enrollee, or to be
absent, tardy, or a bad performer in school. This leads in the medium and long
run to low education and skills and low capacity to earn, and further to a vicious
cycle of poverty in the future, and to increased likelihood of acceptance of child
labor as inevitable.
The worst forms of child labor expose the child to health, safety, and moral
hazards and to physical, psychological, and emotional abuse and harm. This in
itself is a violation of the childs rights that should be prevented and avoided.
Furthermore, it leads in the medium and long run to stunted growth, and
psychological and emotional problems, as well as dysfunctional behavior and
sometimes criminality.
In the macro perspective, there are additional reasons to believe that child
labor makes negative contributions to both economic development and the
development of strong labor markets. The stronger and more appropriate
economic theories relevant to the child labor problem are the human capital
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and endogenous growth theories. These state that the contribution of human
capital to economic development results in increasing returns to scale and positive
externalities that are key to economic development and sustained growth, and
can account partially for the successes of the developed countries, and the
economic successes of some East Asian economies and Chile.
This approach leads to the acceptance of large economic and social costs
when children forego education and skills development, and experience stunted
growth and health and emotional problems. Child labor leads to
(i)
reduction in human capital and reduction in skilled and educated labor,
(ii)
reduction in healthy and productive labor, and
(iii) reduction in the quality of the labor force by reducing socialization

and interpersonal skills.68
High incidence and prevalence of child labor, therefore, leads to significant
productivity and efficiency losses in the medium and long term, dragging the
economy and society to lower and suboptimal growth paths.
From the industry point of view, the human capital and endogenous growth
theories have pointed to the contribution of human skills, coupled with
technological development, and learning by doing in firms as the primary
spur to economic growth and development. This is a far cry from the old view
that unskilled, passive labor should be the main asset and comparative advantage
on which developing countries should depend.
The presence of children in labor markets should be viewed as a strong
negative externality because the costs of foregone education and lack of
acquisition of skills; the lower productivity resulting from stunted growth, health,
and emotional damage; adverse effects on socialization and interpersonal skills;
and relegation of most firms to low-skilled, low productivity status. These overall
negative effects on current and future productivity and efficiency, not to mention
the anguish and pain suffered by the children, are not internalized by the markets.
Interventions become essential for economic development and are a justified
response to the problem.
68
Many studies point to the vicious cycles of child abuse and child exploitation, because some victims
become abusers in adulthood. Child labor also cuts into playtime and socialization activities of the child
and youth and, therefore, reduces his/her socialization and interpersonal skills.
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Appendix 6
But the prevalence of child labor could be taken to indicate that there are
immediate benefits to the child or family if child labor is undertaken. In the
short term, there is immediate increased income in the family, which may be
seen as necessary during times of desperation or starvation.
Thus, any attempt to eradicate child labor should tackle the essential factors,
which are in danger of inadvertently leading to the prevalence of child labor in
the Third World.
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Appendix 6
Potential Dangers in
Inadvertent Use of Child Labor
in Projects and Possible
Mitigating Measures
Possible Inadvertent
Use of Child Labor
Possible Mitigating Measure
Microfinance, livelihood,
community or area-based
development projects may
lead to the employment of
child labor in resulting
economic activities.
Ensure project planning from the

very start to target only adult
employment.
Make agreement with target groups
that children should not be used
(except in very light work) in
projects.
Set up monitoring procedures in the
project to check on child labor.
Set up pre-announced punitive
measures on participants employing
child labor (e.g., loss of credit line
and technical assistance, litigation).
Incorporate in project positive
incentives for children in target areas
to have access to schooling.
Incorporate rescue, rehabilitation,
and compensatory mechanisms for
children adversely affected by child
labor (e.g., compensation for
schooling lost, compensation for
physical, psychological, or emotional
damage)
Infrastructure and other

construction projects may
employ child labor.
As above
Agency/Stakeholder
to Consult and Ask
for Assistance
Local governments,
department/ministry of
labor, department/ministry
of trade and industry,
social welfare and children,
education, community
organizations, police,
courts, CSOs on child labor,
community leaders, local
schools, parents and
teachers associations, ILOIPEC
As above, plus department/

ministry of infrastructure,
construction and public
highways
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Appendix 6
Possible Inadvertent
Use of Child Labor
Possible Mitigating Measure
Agency/Stakeholder
to Consult and Ask
for Assistance
Area-based development,
construction projects, freetrade zones, and industrial
estates may lead to demand
for child labor services in
prostitution, domestic
service, and other areas.
Ensure that the area-based

program includes plans for local
officials to regulate prostitution
and domestic services, and to
prohibit child labor in ensuing
economic activities.
Set up monitoring procedures in
the program to check on child
labor.
measures on program participants
employing child labor (e.g., loss of
credit line and technical assistance,
litigation).
Incorporate in project positive
incentives for children in target
areas to have access to schooling.
and compensatory mechanisms for
children adversely affected by child
labor (e.g., compensation for
schooling lost, compensation for
physical, psychological, or
emotional damage).
Local governments,
labor, department/ministry
of social welfare and
children, department/
ministry of education,
department/ministry on
women, police, courts,
community organizations,
CSOs, community leaders,
local schools, parents and
teachers associations,
womens organizations, ILOIPEC
Projects promoting
particular economic or
industrial sectors may lead
to employment of child
labor.
Ensure that planning of the

project includes safeguards to
assure employment of adults and
not children.
Set up monitoring procedures in
the program to check on child
labor.
measures on program participants
employing child labor (e.g., loss of
credit line and technical
assistance, litigation).
and compensatory mechanisms
for children adversely affected by
child labor (e.g., compensation
for schooling lost, compensation
for physical, psychological, or
emotional damage).
Local governments,
department/ministry of labor,
department/ministry of trade
and industry, department/
ministry of social welfare and
children, police, courts,
community organizations,
CSOs, community leaders,
ILO-IPEC
CSO = central statistical office; ILO-IPEC = International Labour Organization International

Programme on the Elimination of Child Labour.
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Appendix 7
Checklist for Reducing
Negative Impacts of Gender
Discrimination
Requirement
Related to
Conventions
Problem
Corrective Measure
Convention 100
Equal remuneration for
men and women
workers for work of
equal value, without
discrimination based on
sex.
Workers should not be

subject to distinction,
exclusion, or preference
on the basis of race,
color, sex, religion,
political opinion, national
extraction, or social
1. Women are paid lower wages

or benefits than are men for
same or similar work or work
of equal value based on
objective criteria of job
content, including
responsibility, skill, effort, and
work environment.
1. Ensure that equal hourly and

productivity rates are set and paid.
2. Ensure that equal benefits are
paid, or that benefits are not
based directly or indirectly on sex.
3. If different categories of pay exist,
ensure that they are based on
objective criteria. Whenever most
women are in lower categories
and most men in the highest, an
objective review should be
undertaken.
2. Women (and/or men) are

paid below minimum wages.
1. Ensure that both men and women

are paid at least minimum wage if
set at national or sector level.
3. Occupational segregation of
women and men that results
in women being in low-skill,
low-pay jobs.
1. Encourage womens participation

in nontraditional areas through
skills training, support
mechanisms, adaptation training
for men and women, successful
demonstration effects.
1. Less than 40% of project

beneficiaries who are
recruited for employment or
to participate in incomegenerating activities are
women.
1. Set target of 40% for recruitment

of women.
2. Ensure that family responsibilities
or marital status or age are not
criteria for engagement.
continued next page
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Appendix 7
Requirement
Related to
Conventions
Problem
Corrective Measure
Convention 111
origin, leading to
nullifying or impairing
equality of opportunity or
treatment in employment
or occupation, in
recruitment, pay, access
to training, promotion,
terms and conditions of
work, termination of
employment, or any
other aspects of the
employment relationship
or in occupation or
income-generating
activities.
2. Less than 40% of project

beneficiaries who are
employed or in incomegenerating projects are
maintained in project.
1. Identify dropout reason and

correct through provision of
services, additional training,
organizational flexibility to
accommodate work and family,
sensitization training of all
involved to support participation
of women, increase level of
benefit derived from participation.
2. Establish complaint resolution
mechanism sensitive to women.
3. Adopt, advertise, and enforce
equal opportunity policy.
3. Exclusion of women from

certain components of
projects.
1. Ensure inclusion of women in all

components
4. Few women are in positions

of responsibility in the
project.
1. Identify and correct low rate of

women in positions of
responsibility through affirmative
action, additional skills and
leadership training given to
women, sensitization training for
women to be accepted in such
positions.
5. Women are subjected to

sexual harassment.
1. Prevent and prohibit sexual

harassment through adoption of
policy, training of all persons
involved, and complaint resolution
mechanism. Enforce policy.
6. Destruction of traditional
livelihoods of women. For
example, clearing wasteland
for building may mean that
there are no more common
pastures for the women.
1. Provision of alternative sources of

living income to women.
continued next page
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Requirement
Related to
Conventions
Problem
Corrective Measure
Convention 111
7. Overloading of womens
household chores/burden,
which restricts incomeearning capacity or potential.
1. Inclusion of household worksaving mechanisms.

2. Ensure that children are not used
to take up additional burdens or
to replace women in household
chores.
8. Exclusion or segregation of
minority or older women
from participation in
employment or incomegenerating activities
1. Affirmative action recruitment of

minorities in relation to community
population ratio.
2. Targeting of older women or
poorest as beneficiaries on equal
status.
9. Exclusion of women from skill

training or education or
identification of skill deficit or
illiteracy
1. Remedial education/training
programs established for women
to enhance ability to increase
income.
2. Increase girls participation in
formal education system and
formal vocational training.
10. Disproportionate share of

retrenched workers are
women.
1. Ensure trade union/worker

representation involvement in
setting redundancy criteria and
alternative proposals.
2. Ensure that objective criteria are
used; if so, alternative solutions
should be sought in alternative
employment or compensation to
cushion impact.
11. Involuntary pregnancy

testing.
1. Stop any such testing practices.
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Appendix 8
Appendix 8
Initial Labor Standards
Concerns of Stakeholders
During Project Implementation
and Suggested Actions69
Stakeholder
Possible Concern
Suggested Action
1. The client (e.g.,

ministry carrying out
public works)
May have several concerns,

e.g., extra costs, worker
dissatisfaction, more burdens
for emerging contractors.
Stress that the project will help the

ministry to meet its obligations
under national law.
Be ready with examples of how it
has worked elsewhereof
timescale and costs, of
productivity gains, of capacity
development for contractors.
Encourage the client to see the
benefits of taking part in an
initiative involving global players,
e.g., ADB, ILO, relevant donors.
2. Employers
representatives
May not feel core labor

standards (CLS) are their
responsibility; see their role as
purely technical.
May have difficulties with
particular standards, e.g.,
may see gender as a cultural
issue irrelevant to their role as
engineers.
Ensure that the head of the

department or ministry
responsible for the project
supports respect for labor
standards.
Bring engineers into contact with
other stakeholders so they have a
chance to see issues from different
points of view.
Over time you can anticipate that
their interest will increasethey
will begin to see action to protect
labor standards extending their
skills, and their status.
continued next page
69
The table was originally presented in Ladburry, S., A. Cotton, and M. Jennings. 2003. Implementing
Labour Standards in Construction A Sourcebook. Leicestershire: Loughborough University, and London:
Department for International Development. The table is slightly modified from the original, and it applies
not only to core labor standards but also to labor standards in general.
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Stakeholder
3. Association of
contractors and
individual contractors
Possible Concern
Suggested Action
May resist adding monitoring

CLS to their technical
monitoring role.
May see this as an additional
job for which they are
unqualified.
Build labor standards monitoring

into the terms of reference for
contract supervision. Include this
in the service contract between
the engineer and client.
Specific training on labor
standards will be required.
Likely to be the most resistant

group and to have a range of
questions, e.g.:
Who will pay?
How to procure equipment
required to implement labor
standards (e.g., protective
clothing)?
Who will do the record
keeping?
Trade union visits may incite
workers.
Will there be rewards for
compliance?
Will there be sanctions for
noncompliance?
Involve contractors as much as

possible in initial planning
discussions.
Ensure that the implementation
of labor standards will be a bid
assessment criterion.
Ensure the client has made it
clear to contractors that they will
not have to pay for standardsrelated costs from their
overheads (e.g., by including
labor items in call for bids).
Provide detailed specifications so
that contractors are clear about
the requirements. If the bidders
are inexperienced in pricing for
labor standards, include
indications in call for bids.
Explain labor standards at all prebid meetings using well-prepared
materials that potential bidders
can take away.
Arrange briefing/training sessions
at award of contract so that all
know their roles and
responsibilities.
Ensure contractors are clear
about what will be monitored so
they can brief their site
representatives.
Get contractors and unions
together to talk about their
common interests.
Reward compliance.
continued next page
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Appendix 8
Stakeholder
Possible Concern
Suggested Action
4. Ministry of labor
(department
responsible for labor
inspections)
Will support the CLS program

but may not have the
resources to visit and inspect
sites.
Agree with the department

whether it is feasible for them to
be involved and, if so, how.
Invite to all stakeholder
workshops so they can keep
abreast of progress and provide
information and advice on labor
law and good practice.
5. The trade unions for

the sector
May not have the capacity

(staff) or resources (transport,
running costs) to play an
active role outside the major
towns, particularly if the
number of workers on site is
small.
Examine whether additional

resources for the trade unions
(e.g., transport, training) should
be provided, if requested.
Otherwise trade unions may not
be able to help with two vital
jobs: raising worker awareness
and monitoring the
implementation of labor
standards on sites.
6. Department of social
security and national
insurance
May see the project as a way

of getting more people to
register (so will be supportive).
No general guidance possible as

it depends on national law. In
principle, registering is to be
encouraged as a social safety net
for all workers. But if the law
stipulates a contribution for a
large number of years to qualify
for a pension, it will be difficult
to convince temporary workers
to register (and contractors may
not encourage them to register
as they will want to minimize the
amount they pay in employer
contributions).
7. Workers (permanent
and daily wage) and
adjacent communities
Workers are likely to prioritize

pay above every other
standard, at least initially.
At first, may not like wearing
protective clothing, may sell it.
May be wary of unions; may
not want women on site; may
prefer to side with contractor
for fear of losing job.
Plan a program of worker and

community education.
Anticipate initial wariness but
increasing support for labor
standards by workers.
Anticipate that the word will
spread and they will begin to
lobby other contractors for
standards, particularly increased
wages, protective clothing, and
potable water.
continued next page
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Stakeholder
8. Other donors (bilateral
and multilateral
donors and finance
institutions)
Possible Concern
Likely to be interested but to
have limited experience unless
gained through involvement
with the ILO labor-intensive
infrastructure program.
Suggested Action
Target donors funding the same
employer/line department.
Try to ensure a consistent donor
approach to labor standards.
Avoid burdening the ministry
with requests for slightly different
standards or procedures.
Get the responsible ministry to
ask other donors to apply the
same standards.
ADB = Asian Development Bank; CLS = core labor standards; ILO = International Labour Organization.
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Appendix 9
Appendix 9
Indicators for Gender
Monitoring and Evaluation
Indicator for Monitoring
and Evaluation
Example of Indicator
Labor standards
(i)
Respect for labor, employment, and equality laws, including

minimum wages
(ii) Absence of sex-based criteria in income, wages, and benefits
(iii) Increase in number of women in higher decision-making
posts
(iv) Increase in number of women and men in nontraditional
occupations (reducing sex-based occupational segregation)
(v) Increase in numbers of women who have received vocational
training, especially for skills that widen job opportunities
(vi) Gender-neutral hiring and firing
(vii) Quality of facilities (separate toilets, etc.)
(viii) Maternity protection and benefits provided
(ix) Safety measures geared to womens as well as mens needs
(x) No dismissal on the basis of maternity or family responsibilities
(xi) Increased awareness of men and women workers on women
workers rights
(xii) Increased organizational and representational possibilities for
women as well as for men
(xiii) Increase in number of women covered by collective
bargaining agreements
(xiv) Increase in numbers of female members of trade unions,
especially in leadership positions
(xv) Affirmative action programs in place and operational to
promote womens access to employment and training
(xvi) Percentage of older women and women belonging to ethnic
minorities or indigenous peoples participating in the project
(xvii) Womens legal status with respect to access to credit, land,
and jobs improved
(xviii) Effective and operational complaints procedures
General welfare and awareness
(i)
(ii)
Group insurance for all workers families

Equal benefits for women workers arising out of insurance
schemes
(iii) Crches for the use of all women and men
(iv) Increase in awareness of men and women workers,
contractors, and trade unions about health hazards/remedies
(v) Increase in awareness of men and men about rights, facilities,
and schemes
(vi) Organizations for raising awareness of issues on ecology,
family planning
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Indicator for Monitoring

and Evaluation
Economic growth
Example of Indicator
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
Increased viable income for men and women workers

Increase in sustainable wage employment or income-earning
activities for women
Improvement in productivity of women workers
Increased control by women over income from wage
employment and other income-earning activities
Infrastructure in place for raising market returns
Improved access for women to credit, skills, and land
Improved access for women to information on markets,
different types of skills training, job opportunities, health care
facilities, and child and family care facilities
Poverty reduction
(i)
Increase in number of poor women, especially in femaleheaded households, who are engaged in sustainable
employment
(ii) Increased productivity of the work they do
(iii) Better health for poor men and women and their families
Relief from housework and

family responsibilities
(i)
Institutional strengthening
(i)
Mitigation of adverse outcomes
(i)
(ii)
(iii)
(iv)
Investments made to reduce the load of housework and

family care on women and men in the project area
(ii) Child care and family care facilities in place and used by
women and men in the project area
(iii) Increase in awareness of workers and the community of the
importance of equal sharing responsibilities between men and
women
(iv) Positive changes in mens and womens time use in
household and family activities
(v) Improved in womens status with respect to decision making
within the family and community
Increase in number of female staff recruited, including at
higher-level positions
(ii) Increase in recruitment of female labor inspectors
(iii) Gender balance among staff involved in the project
(iv) Gender and employment training provided to ADB and
executing agency staff; government agencies, including labor
ministries, labor inspectors, trade unions, employers,
contractors, community-based groups, and nongovernment
organizations
(v) Budget allocated for gender issues in labor and employment
increased
(vi) Partnership established between private sector, trade unions,
and gender networks
Complaint machinery established and operating
Complaint machinery accessible to women
Relief provided to those whose livelihoods are disturbed
Reports submitted on number and kind of complaints and by
whom
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This Handbook provides information on core labor standards (CLS) and illustrates
examples of application of CLS in operations of the Asian Development Bank (ADB).
This Handbook also gives practical knowledge on how ADB staff and their
Government counterparts can appropriately consider CLS in project level
interventions, and in planning and design of country strategies and programs.
Core Labor Standards HANDBOOK
HANDBOOK

6 ADB Avenue, Mandaluyong City
1550 Metro Manila, Philippines
www.adb.org
4, route des Morillons
CH-1211 Geneva 22
Switzerland
www.ilo.org
0051 1063
Printed in the Philippines
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Asian Development Bank