Thursday January 08, 2009

Asean countries need to review labour practices


Tuesday, October 21, 2008

ASEAN countries need to review their labour practices to ensure that they meet the changing economic and social needs and create a more favourable investment environment, according to a study commissioned by Asean.

The study by Mercer, the consulting agency, said it was important to have progressive labour practices for the regional association of 10 countries in the Southeast Asia region as it forged ahead with closer economic integration through the formation of the Asean Economic Community by 2015.

Mercer was commissioned by the 5th Asean Senior Labour Officials Meeting in May last year to embark on a study on Progressive Labour Practices to Enhance the Competitiveness of Asean, according to the executive summary of the study released by Singapores Ministry of Manpower today.

The study was to identify areas in which Asean countries could prepare their labour markets and develop their human capital in order to maximise the benefits from regional integration and address potential challenges.

It would provide the basis for Asean countries to work, both individually at the national level and collectively as a region, towards creating a more favourable investment environment by putting in place progressive labour practices.

The study which involved interviews with employers, employees and government representatives from diverse industries throughout Asean from July last year to April this year, was presented at the 20th Asean Labour Ministers Meeting last May.

It also involved a benchmarking of 90 proprietary site-selection cases with Mercer clients globally to determine the competitiveness of Asean labour markets for foreign investments, and the conduct of secondary research of trends in blocs such as the European Union and the North American Free Trade Agreement.

The study, among others, recommended that Asean labour ministries should conduct regular reviews of labour laws and policies in consultation with a broad-based group of stakeholders to ensure that labour markets were sufficiently flexible and responsive to changes in economic conditions.

Asean countries should also continue and deepen their unique Asean way of tripartite consultations where unions, employers, and government could sit together in the policy making process in advancing labour relations and minimising disputes in a transparent way.

The study also recommended that Asean workforce should be given skills training as it was critical to raising labour quality, especially by aligning education policy with industrial planning.

Bernama