Who: Better work programme (ILO), International Finance Corporation
The Better Work programme of the ILO aims to improve working conditions for textile employees all over the world. The programme is a comprehensive combination of assessments, advisory services and training sessions conducted at the factory level.
Central in the programme are Performance Improvement Consultative Committees (PICCs); factory-level consultative committees consisting of managers and employees’ representatives. To institutionalize social dialogue in this form contributed to improving working conditions in the factories, for example by decreasing the amounts of verbal and sexual abuse, curbing excessive overtime and improving employee safety.
Participating companies in Haiti, Indonesia, Jordan, Nicaragua and Vietnam showed a 7% increase in worker productivity when working conditions were improved. Notably, companies in Vietnam had a 25% higher revenue-to-cost ratio after four years participating in the programme. This effect cannot fully be attributed to social dialogue as the program also consisted of other activities such as trainings. However, an evaluation by Tufts University concluded that establishing of Performance Improvement Consultative Committees were key in improving working conditions.
For guidance on successful social dialogue for businesses, see tool number 4 on the Tools page.
Sources:
Better Work. (2016). Progress and Potential: How Better Work is improving garment workers’ lives and boosting factory competitiveness (pp. 1-56). Geneva: ILO.