X
Towards a renewed
social contract
International Labour Conference
112th Session, 2024
ILC.112 / I(B)
International Labour Conference, 112th Session, 2024
ILC.112/I(B)
Report I(B)
Towards a renewed social contract
Report of the Director-General
First item on the agenda
International Labour Office, Geneva
© International Labour Organization 2024
First published 2024
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3
The constant attention paid to wealth will cause the nation one day to be faced with
an immense mass of people hostile to its institutions, disdaining all that was once
held sacred and delivering itself into the hands of the most savage demagogues.
Daniel Legrand, Swiss industrialist, 1840s.
In Africa there is a concept known as ubuntu – the profound sense that we are human
only through the humanity of others; that if we are to accomplish anything in this
world, it will in equal measure be due to the work and achievements of others.
Nelson Mandela, 2008.
My notion of democracy is that under it the weakest should have the same
opportunity as the strongest.
Mahatma Gandhi, 1952.
Our idea of what constitutes social good has advanced with the procession of the
ages, from those desperate times when just to keep body and soul together was an
achievement, to the great present when “good” includes an agreeable, stable
civilization accessible to all, the opportunity of each to develop his particular genius
and the privilege of mutual usefulness.
Frances Perkins, United States Secretary of Labor, 1934.
We do not inherit the earth from our ancestors, we borrow it from our children.
Chief Seattle, Native American leader, 1854.
5
Preface
Social justice remains an imperative and an essential condition for universal and lasting peace.
Yet we know that trust in national and international governance is waning. We live in times of
significant geopolitical instability, with wars continuing to rage in some parts of the world. Social
cohesion is under pressure and political polarization is rampant and deepening. Rather than having a
sense of not being left behind, many feel that the system is rigged against them. The fine balance that
many societies once maintained – in the sharing of collective responsibilities and benefits and the
provision of solidarity in times of need – appears to have tipped in favour of a privileged few. When an
economic crisis or extreme environmental event occurs, it is almost always the most vulnerable in our
societies – most often women – who bear the brunt of the shock and carry the greatest burden.
How do we tackle the injustices, inequalities and insecurities facing us today?
This report, my second to the International Labour Conference, carries forward the theme of
social justice by focusing on the very foundation of just societies, upon which we build the opportunities
and institutions for decent work: the social contract.
What do I mean by a social contract? Put simply, I mean the implicit, or at times explicit,
understanding of our collective responsibilities towards each other that finds its expression in the
norms, collective institutions and policies that fulfil the promise of the Declaration of Philadelphia that
“all human beings, irrespective of race, creed or sex, have the right to pursue both their material well-
being and their spiritual development in conditions of freedom and dignity, of economic security and
equal opportunity”.
How do we renew that social contract today and deliver social justice as the basis for lasting peace,
shared prosperity, equal opportunity and a just transition? As the ILO, we have both an advantage and
an opportunity.
First, we have the institutional means at our disposal to renew the social contract. Social dialogue,
which has enabled us to shape commitments between the tripartite partners in the world of work, is a
prerequisite for renewing the social contract and advancing social justice. This is why we were founded.
Second, we have a significant opportunity ahead in the Second World Summit for Social
Development, to be convened by the United Nations in 2025.
I hope that my report will stimulate discussion on what the priorities are and how the social
contract might be renewed as we prepare for our engagement in the World Summit.
Gilbert F. Houngbo
Director-General
7
Contents
Page
Preface ....................................................................................................................................................... 5
Chapter 1. The universal importance of the social contract ............................................................. 9
Chapter 2. Social contracts under pressure ........................................................................................ 11
Chapter 3. The social contract: Adaptation or reinvention? ............................................................. 15
Chapter 4. Renewing the social contract ............................................................................................. 27
9
Chapter 1
The universal importance of the social contract
1. Social contracts determine what is to be provided within a society on a collective basis, how and
by whom. They connect individuals and communities, serving as a source of inspiration for
thriving societies. Implicitly, they encapsulate unwritten expectations and facilitate exchanges
between and among individuals and institutions on collective benefits. In good times, social
contracts are an expression among members of a society or community and government of our
respective responsibilities and duties to each other. They reflect a common understanding on
issues such as how our needs will be met over the course of our lifetimes, from access to basic
services to employment opportunities and social protection. They frequently provide rules
governing relations between and among individuals and institutions, for instance with respect to
the rights of women, and many other aspects of society. They entail responsibilities, such as
paying taxes, and define the role and expectations of the State. In fact, the legitimacy to govern
is frequently derived from a social contract. In challenging times, these agreements may include
the State serving as an insurer of last resort, such as during a pandemic or natural disaster. In this
way, they foster social cohesion, economic resilience and political stability.
2. Social contracts are chiselled by human experience bound within space and time. Some traditions
emphasize the intricate web of human interactions. Within our own individual actions, there exists
a complementary duty – an unspoken pact – to advance not only the well-being of the parties
involved but also that of the broader community. This interconnectedness fosters a sense of
responsibility to each other, where personal gains align with shared prosperity. Other traditions
view social contracts as a protective device. Given the imbalances in power in any society, a social
contract reminds us of what we owe to each other and of our interdependence. According to this
tradition, the determined pursuit of self-interest by some is balanced by a collective agreement
that preserves and protects the essential freedoms of all. A third perspective acknowledges the
role and responsibility of authorities to maintain harmony within society. These traditions grant
leaders a greater measure of discretion in decision-making guided by ethical principles. Their task
extends beyond governance; they aspire to cultivate virtuous individuals and maintain harmony
within society. Here, the social contract provides society with a moral compass.
3. All societies share a common foundation: a timeless and universal yearning for social justice,
freedom, dignity, economic security and equal opportunity. Through these contracts, societies
strive to strike a balance between individual and collective responsibilities. Achieving this objective
is not without its challenges. Power imbalances and divergent interests can complicate efforts to
balance the elements that make up the social contract. This adds particular significance to the
understanding, as enshrined in the Declaration of Philadelphia of 1944, that poverty anywhere
constitutes a danger to prosperity everywhere, which underscores the importance of
international cooperation and solidarity in addressing our common agenda.
4. To maintain legitimacy and support, social contracts need to be updated periodically to respond
to the evolving context. Such an undertaking requires the recalibration of the policies and
institutions underpinning these agreements. It may also involve a collective re-examination of our
roles and responsibilities, of what we owe to each other and of what we need to do to deliver
social justice in times of unprecedented change.
10
Towards a renewed social contract
Chapter 1. Renewing the social contract
5. The effectiveness of a social contract defies easy measurement by isolated indicators. For
example, subsidized food prices or high educational achievement may reduce certain dimensions
of poverty. But they will do little to meet the aspirations of young people if the labour market is
not providing them with opportunities, or to meet the needs of ageing societies if there are few
opportunities for workers who wish to continue to contribute as they age and to be looked after
and provided for when they no longer can.
6. One clear indicator of the effectiveness of the social contract is its capacity to deliver social justice
through decent work. Work is central to the lives of individuals and communities. It is how we
earn a living so that we can obtain the goods and services we need. Work can also provide us with
the opportunity to realize our productive potential and to gain recognition and respect for our
contribution to society. It can give our lives both structure and purpose. Our experience of
working is therefore an important part of our identity. As articulated in my report to the
International Labour Conference at its 111th Session (2023), the availability of and access to
decent work plays a central role in advancing social justice. Equally, social justice and decent work
are central to the construction of an effective and sustainable social contract at the national and
global levels.
1
1
ILO, Advancing Social Justice, Report of the Director-General, ILC.111/I(A)(Rev.), 2023.
11
Chapter 2
Social contracts under pressure
7. In 1995, speaking at the World Summit for Social Development, the then United Nations (UN)
Secretary-General Boutros Boutros Ghali identified a need for a new social contract at the global
level, to fight poverty, combat social exclusion and disintegration, create productive employment
and awaken a new awareness of social responsibility.
2
The Programme of Action adopted at the
World Summit acknowledged that, since the founding of the United Nations, the aim of creating
a society for all and the quest for humane, stable, safe, tolerant and just societies had “shown a
mixed record at best”.
3
Since then, the disruptive effects of climate change, structural inequality,
demographic changes, technological transformations and diminished civic space have
significantly compromised our collective efforts to advance social development.
8. Indeed, climate change is having a profound impact on labour markets, reshaping the way we
work and live. The transition to a more sustainable future will create new job opportunities in
environmental conservation, renewable energy and sustainable practices. Yet many workers are
transitioning out of jobs in carbon-intensive sectors into other activities unmatched to their
existing skills. Rising sea levels are displacing populations. Environmental degradation is
threatening livelihoods and food security. Extreme weather events are posing significant health
risks to workers exposed to extreme heat, humidity or cold. These transformations are placing
pressure on social contracts, including between the present generation and future generations.
9. While these transformations may be inevitable, they are unlikely to play out without causing social
and economic turmoil. Attempts to phase out unsustainable practices have already met with
resistance from those whose ways of life depend on them. And the introduction of digital
technologies, including artificial intelligence, is creating insecurities among both employers and
workers and raising concerns regarding transparency, data protection and respect for the
fundamental principles and rights at work. Concerns have been raised, for example, about
algorithmic bias leading to discriminatory practices. Can our current set of norms, policies and
institutions address the new sources of uncertainty and insecurity that these transitions invoke?
10. Other factors are also placing social contracts under pressure. Deficits in public transparency,
accountability and responsiveness in the face of financial and health crises have eroded trust in
public institutions. We must ask ourselves what damage these crises have inflicted on the core
principles of democracy, human rights and the rule of law? Without sufficient trust in national and
international institutions of governance, whether public or private, what will happen to the quest
for shared prosperity, lasting peace, social justice and environmental sustainability? Repressive,
isolationist or outright racist reflexes generated from fear are providing a false sense of security
in an ever-quicker succession of crises and conflicts.
11. Excessive income disparities and inequalities within and between countries and social exclusion
threaten social stability. Shattered expectations and a lack of trust contribute to political
polarization, making compromise, consensus and creative problem-solving seem impossible. The
inability to build bridges makes the deep divides along the path intractable.
2
United Nations, Report of the World Summit for Social Development, A/CONF.166/9, 1995, 125.
3
United Nations, Report of the World Summit for Social Development, Ch. I, resolution 1, annex II, para. 66.
12
Towards a renewed social contract
Chapter 2. Renewing the social contract
12. The COVID-19 pandemic exacerbated inequalities and the precarity of the most vulnerable in our
societies and exposed deep fault lines in our global economy. These inequalities and injustices
have become structural features of our economies and have increased under the inexorable
influence of climate change, burgeoning (or contracting) populations, automation and
digitalization. The set of policies and institutions that underpin our existing social contracts seem
ill-prepared to respond to and address these transformations. We know that the usual fixes are
not likely to work, and we will need to adapt our policies and institutions and come to a new
understanding of our responsibilities to each other.
13. The 2030 Agenda for Sustainable Development, adopted by the UN General Assembly in 2015,
was designed to address these pressing challenges. It offered an ambitious, wide-ranging and
universal framework aimed at eradicating poverty and reducing inequalities by fostering
connections between national and multilateral commitments. Over halfway to 2030, the scorecard
reveals a stark gap between commitments and realities and raises questions about our shared
understanding of the complexities of change and the support that may need to be mobilized to
deliver not only productive economies but productive and just societies. Progress on the
Sustainable Development Goals has stalled and, in some cases, reversed.
14. Let us consider one of these goals. Achieving Goal 8, to promote sustained, inclusive and
sustainable economic growth, full and productive employment and decent work for all, will
require action through comprehensive national employment policies and youth employment
strategies and an enabling environment that promotes investment, including in both the
transitions needed to get to net zero carbon emissions, and the creation of decent and productive
employment.
15. While the global unemployment rate recovered in 2022 to pre-pandemic levels, the time-related
underemployment rate and the wider labour underutilization rate have not recovered. Moreover,
low-income countries have seen far lower rates of recovery in unemployment than middle- and
higher income countries. The global youth unemployment rate is persistently triple that of adults.
Almost 22 per cent of young people are not in employment, education or training (NEET). Young
women are twice as likely as young men to be classified as NEET, which needs to be considered
alongside their participation in unpaid work. Nearly 60 per cent of the global workforce, rising to
almost 85 per cent in some regions, is in informal employment. A staggering 77 per cent of
enterprises with fewer than ten workers are informal.
16. Increased economic insecurity and skewed outcomes for certain workers, firms and communities
are undermining their willingness to uphold their part of the social contract. When an economy
fails to provide access to public goods and services, whether with respect to adequate nutrition,
clean water or quality education, fails to protect rights or simply fails to provide the prospect of a
better life, this erodes confidence in civic engagement, instils apathy toward institutions and
undermines trust that justice will be delivered. In the worst cases, it provokes social instability and
unravels into violent conflict. Renewing the social contract to ensure that it is fit for purpose may
stop the winds of discontent from fanning a wildfire.
Embedding decent work and social justice in sustainable development
17. Economic insecurity, uncertainty and inequality are a reflection of the unravelling of the social
contract in respect of multiple elements of human development. We cannot therefore talk about
decent work and social justice without also focusing on our collective responsibilities – as reflected
in the 2030 Agenda for Sustainable Development – in respect of these elements. Among them are
effective access to an adequate standard of living, including access to food and to water and
sanitation; access to quality education; and access to healthcare. The ILO has long understood
13
that the pursuit of social justice in respect of these elements of human development is essential
for the realization of its mandate and that it is not possible to achieve sustainable development
without decent work.
18. Yet the reality is stark. It is estimated that one in three people worldwide were experiencing
moderate to severe food insecurity in 2022, with most of these living in Africa and Asia.
Furthermore, the global population facing chronic hunger has increased since 2019.
4
The
situation is being exacerbated by food price inflation, driven by a complex mix of factors, including
conflict, rising transport costs, supply chain disruptions and changes in trade policies. As incomes
erode and public spending on agriculture declines, climate change is further compounding the
challenges to food security. The impact of hunger extends far beyond empty stomachs – it affects
the well-being of entire communities and undermines the ability of governments to promote
sustainable growth and productive economies.
19. Reaching the goal of decent work for all is also dependent on ensuring access to a safe, reliable
and affordable supply of water and adequate sanitation services, which are fundamental to
sustaining life, health and food production. Ensuring access to water and sanitation also creates
an enabling environment for long-term employment opportunities, as well as for development
and growth across different economic sectors. Equally, the availability of and access to decent
work can play a role in ensuring that water is clean, accessible and properly managed. However,
access to water can be a source of entrenched inequality between urban and rural dwellers, across
genders, and among the richest and poorest segments of the population.
20. Quality education and learning creates the fertile ground needed for skills development and
access to opportunities for decent work that affords families an adequate standard of living. As
technology advances and industries undergo transformation, individuals must adapt their skills
on a continuous basis over the course of a lifetime to ensure their employability and expand their
opportunities for formal employment.
5
Their adaptability depends on the quality of the education
they receive. Quality early childhood education promotes lifelong learning and social well-being.
21. Some 763 million adults remained illiterate in 2020, two thirds of which were women.
6
Furthermore, various disadvantaged groups in society – such as indigenous peoples, rural
populations, migrants, older persons, people with disabilities and prisoners – continue to face
significant barriers in accessing critical learning opportunities. Without additional interventions,
it is projected that, by 2030, a staggering 300 million students will lack basic numeracy and literacy
skills, severely limiting their prospects for meaningful employment.
7
We must make strategic
investments in basic school infrastructure, including essential services such as electricity, water
and sanitation facilities. In addition, priority must be given to ensuring that all teachers possess
the minimum qualifications required for their profession and that they benefit from decent
working conditions. But this is only one side of the story: global progress against child labour has
stalled and one third of those in child labour are not in school, impairing their future opportunities
to access an adequate standard of living.
4
United Nations, The Sustainable Development Goals Report 2023: Special edition – Towards a Rescue Plan for People and Planet, 2023,
14 and 59.
5
See Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204), Para. 15(f).
6
United Nations Educational, Scientific and Cultural Organization, Global Education Monitoring Report: Technology in Education – A
Tool on Whose Terms?, 2023, 271.
7
United Nations, The Sustainable Development Goals Report 2023, 20.
14
Towards a renewed social contract
Chapter 2. Renewing the social contract
22. In sum, it is clear that policies that affect access to food, water and sanitation, education and other
elements of human development are not only relevant to, but critical components of, the
successful advancement of decent work and social justice for all. Thus, as we consider a renewed
social contract that is fit for today, we must consider what that contract requires from each of us
and how it relates to needs and obligations that lie outside the immediate scope of the ILO’s
mandate.
15
Chapter 3
The social contract: Adaptation or reinvention?
The conviction that universal and lasting peace can be established only if it is based upon social
justice moved the founders of the ILO to make social justice the ultimate goal of an organization
focused on improving the conditions of labour. That initial social contract – premised on the
recognition of the principle of freedom of association – enabled a unique form of governance
to emerge. Governments and employers’ and workers’ organizations came together at the ILO
to address the often-unacceptable working conditions and widespread insecurity, deprivation
and industrial unrest of the time. Tripartism, which at the time of the founding of the ILO hardly
existed at the national level, became an established procedural means to advance social
justice.
8
23. The ILO came up with a blueprint for a global social contract more than a century ago. This
blueprint has proven its worth: first, in framing the terms of economic and social progress in the
face of large-scale industrial expansion; then, in identifying the policy objectives and building the
institutions needed for socially just labour markets in newly independent States; and, more
recently, in determining the need for social protection floors and identifying the key governance
principles for harnessing the benefits of globalization for decent work.
24. Over the last 100 years, the ILO has used the foundations of the social contract – social dialogue,
labour rights and accountability, mirroring the UN principles of democracy, human rights and the
rule of law – to build an unparalleled normative system articulating and addressing the challenges
that emerged in each new decade and era. The system does not need to be reinvented.
25. However, in the face of the challenges being faced and the transformations under way, there is
an urgent need to renew the current social contract and our commitments to each other. Renewal
could be undertaken in three steps, involving: first, an examination of the rigour with which we
are discharging our respective responsibilities under the current social contract; second, the
identification of the unaddressed challenges and unmet expectations in the current social
contract; and lastly, the expansion of the current social contract to address the transformations
arising as a result of technological progress, climate change and demographic shifts.
26. Renewing the contract entails a combination of maintaining long-standing principles and using
the tools at our disposal to adapt our norms, policies and institutions to the changing global
environment. The ILO’s principle that labour is not a commodity remains as relevant as ever, as
does its understanding that tripartism and social dialogue are the most effective and legitimate
tools for crafting universal minimum standards and policies for the attainment of humane
working conditions. Emphasis must be placed on the need for solidarity, which is key to building
trust. For the process to succeed, all stakeholders need to play their part.
27. For adaptations to be effective, collective action must be robustly coordinated at the local, national
and international levels. After all, while challenges may vary for different countries and regions,
many are common and interconnected. Addressing these will require internationally coordinated
responses. If it is to work, a new social contract must be anchored in national social contracts and
be tailored to specific national circumstances and priorities, while at the same time fitting into a
shared global framework and internationally agreed standards.
8
ILO, Advancing Social Justice, para. 2.
16
Towards a renewed social contract
Chapter 3. Renewing the social contract
28. As acknowledged above, the availability of and access to decent work plays a central role in
advancing social justice. And social justice is at the core of any social contract. The effectiveness,
legitimacy and responsiveness of a social contract therefore depends on whether it delivers social
justice through decent work. We need to renew the social contract so that we can advance social
justice for all. Some tripartite discussions are already under way to identify the policies and
institutions in need of renewal to secure social justice in the light of the transformations taking
place. The International Organisation of Employers and the International Trade Union
Confederation have both identified their priorities in that regard. As representative actors in the
real economy, their voices and their priorities must be heard.
What are some of the elements of a renewed social contract?
29. The social contract needs to be based on respect for human rights, including the
fundamental principles and rights at work. Our current contract has not fully performed.
Global progress against child labour, including hazardous child labour, has stagnated since 2016,
compromising the opportunities for consecutive generations to work their way out of poverty.
Forced labour is trapping more people and generating more illicit profits than previously
recognized.
9
It is estimated that the perpetrators of forced labour operating in the private sector
generate an astonishing US$236 billion annually – representing a 37 per cent increase over the
past decade. Violence and harassment against women, migrant workers, refugees and ethnic and
religious minorities are manifestations of persistent discrimination that have prompted the
Organization to set new standards. Workers are being killed or injured at work every day. Freedom
of association and collective bargaining remain largely unrealized. More than half of the world’s
workforce is employed in countries that have not yet ratified the fundamental standards related
to these principles.
30. We need an integrated and reinvigorated approach in order to respect, to promote and to realize
the fundamental principles and rights at work. The inclusion in 2022 of a safe and healthy working
environment in the ILO’s framework of fundamental principles and rights at work renewed
tripartite commitment to realize those principles and rights. The moment may thus be ripe to
enhance the annual follow-up to the ILO Declaration on Fundamental Principles and Rights at
Work (1998), as amended in 2022,
10
and to boost efforts to bring us closer to the universal
ratification of the fundamental Conventions, thereby strengthening the new social contract.
31. The rule of law requires States to safeguard populations against human rights violations,
including those committed by private entities and those arising from business activities. States
therefore have a duty to prevent, investigate, punish and redress human rights violations. This
involves the creation and enforcement of laws, regulations and policies to this effect. However,
resource-constrained States often struggle to fully discharge this duty. This reinforces the need
for all businesses, regardless of their size, to comply with applicable laws and respect human
rights, thus fostering inclusive growth and sustainable development rooted in human rights.
32. While voluntary corporate initiatives are commendable, they cannot be a substitute for the
effective enforcement of and compliance with national laws and respect for the fundamental
principles and rights at work. The global social contract increasingly requires that all businesses
follow sustainable environmental, social and governance practices. Comprehensive due diligence
9
See ILO, Profits and poverty: The economics of forced labour, 2024.
10
This is the subject of the recurrent discussion by the Conference taking place at its 112th Session (2024). See ILO, Fundamental
principles and rights at work at a critical crossroads: A recurrent discussion on the strategic objective of fundamental principles and rights
at work, under the follow-up to the ILO Declaration on Social Justice for a Fair Globalization, 2008, as amended in 2022, ILC.112/V, 2024.
17
is important to identify, prevent and mitigate negative human rights impacts and to enable
remediation. Both States and businesses have a role to play in providing dispute resolution
mechanisms and grievance procedures. States must take appropriate steps to ensure, through
judicial, administrative, legislative or other means, that when such abuses occur within their
territory or jurisdiction, those affected have access to effective remedy. To make it possible for
grievances to be remediated swiftly and directly, businesses should establish or participate in
effective operational-level grievance mechanisms for individuals and communities who may be
adversely impacted. Unfortunately, inadequate access to labour justice persists for a significant
portion of the global workforce, highlighting the need for our social contract to invest in this
dimension of social justice.
33. Many more questions may need to be addressed to ensure that enterprises become sustainable
by effectively assuming greater responsibility for the social and human rights impacts of their
business operations. Member States and trade unions have an important role to play in this
regard. Should we focus on creating an enabling environment for respect for workers’ human
rights in every country, while supporting enterprises and providing them with an incentive to
undertake effective due diligence? How can we help to build the capacity of employers’
organizations to play a leading role in building a local business culture based on a commitment
to respect workers’ rights? How can we support trade unions in playing a more active role in
engaging with business on human rights due diligence?
34. Similar questions may arise in the context of lending and public procurement operations for
international development finance institutions, given their crucial role in repairing social
contracts. Strengthening safeguard policies can help identify, prevent and minimize the
environmental and social risks associated with investment projects and enables countries and
clients to adopt responsible practices in sustainable development.
35. The social contract depends on inclusive and effective governance. Governance encompasses
the decision-making, rule-setting and compliance mechanisms that shape a social contract.
Inclusive governance based on social dialogue at all levels is critical for achieving our
contemporary social, economic and environmental objectives. Good governance also serves as an
objective in its own right, as human rights violations, corruption and governance gaps weaken
the very fabric of the social contract.
36. In the context of the growing integration of economies through trade and investment, the ILO
Declaration on Fundamental Principles and Rights at Work (1998), as amended in 2022, renewed
the social contract on the basis of tripartite social dialogue in the ILO. In seeking to maintain a
link between social progress and economic growth, all Members of the ILO now have an
obligation to respect, to promote and to realize the fundamental principles and rights at work.
This guarantee is of particular significance in that it enables the persons concerned to “claim freely
and on the basis of equality of opportunity their fair share of the wealth which they have helped
to generate, and to achieve fully their human potential”.
11
37. The steady inflow of ratifications of fundamental standards and the proliferation of labour
provisions in trade and investment agreements suggest that the establishment of a social floor
to globalization consisting of fundamental principles and rights at work was an innovative form
of governance that enabled many countries, employers and workers to benefit from the
opportunities of globalization. These labour rights are human rights and should therefore remain
at the heart of the social contract.
11
ILO Declaration on Fundamental Principles and Rights at Work (1998), as amended in 2022, Preamble.
18
Towards a renewed social contract
Chapter 3. Renewing the social contract
38. But ominous clouds loom over a rules-based trade and investment system, hindering the
achievement of decent work for all. The waning ability of countries to safeguard the fundamental
principles and rights at work, the declining share of labour income, the persistence of informal
employment and insufficient investment in social dialogue signal that a form of inclusive and
effective governance needs to be part of a renewed social contract. Without it, support for
national and international economic and social systems will wane, as those living in poverty and
insecurity will believe that they are not receiving the benefits of the social contract.
39. The renewal needs to revitalize and reconfigure the policies and strategies that create full,
productive and freely chosen employment. The Employment Policy Convention, 1964 (No. 122),
which gives expression to the human right to work by calling for the promotion of full, productive
and freely chosen employment, has attracted 25 new ratifications since 2000, despite being
designated as a governance (priority) instrument.
12
Whether this is the result of implementation
fatigue, a lack of resources, or policy integration and coordination issues, it does suggest that
there is a gap to be filled in our social contract.
40. Some questions may help us start to fill this gap. Conventional wisdom has long held that
industrialization is a crucial driver of economic growth and employment generation. With services,
rather than manufacturing, driving economic and job growth in many countries, do these patterns
require a new mix of employment policies? In what ways should we adapt industrial policy to
address contemporary challenges and advance structural transformation? How can we invest in
emerging industries that play a pivotal role in promoting social, environmental and economic
sustainability, while also providing employment opportunities for marginalized communities?
How can we design comprehensive employment policies that target investment (public and
private) in sectors with high potential for formal job creation, including the green, digital and care
economies? What policy mix do we need to drive transitions to zero carbon emissions in the face
of technological change? If we are going to continue to rely on supply chains that have become
more extended for economic growth, how will we provide for transparency, ethical standards,
social risk management and resilience?
41. In renewing the social contract, we need to take a fresh and perhaps broader view of employment
policy and its social objectives. Do we need a new economic framework? How can we ensure pro-
employment macroeconomic policies? Sustainable enterprises also require an enabling
environment to fulfil their role in driving economic growth and decent job creation. Economic and
productivity growth, business dynamism, investments in technology and innovation and
competitiveness of companies can all deliver on the social objectives of employment policy when
supplemented by social dialogue and policies that ensure decent work and a just transition.
42. Within a framework of comprehensive employment policies, a major challenge is the complexity
involved in ensuring the integration of economic policies and policies needed to promote the
creation of decent work and a just transition. Economic policies have often prioritized narrow and
exclusive goals of financial and price stability, sometimes at the expense of employment and
labour income. Unfortunately, this approach has led to social and political tensions, jeopardizing
the very foundation of social contracts. Recent crises have underscored the importance of
protecting investment in decent jobs. Rather than treating decent job creation as a secondary
concern, it should be a central objective for economic recovery and reconstruction. While
experience and evidence clearly indicate the need for pro-employment policies, we still lack
decisive political actions. To address this shortcoming, we must once again leverage
12
To date, 115 countries – roughly two thirds of the ILO’s membership – have ratified Convention No. 122.
19
comprehensive employment policies to create 600 million jobs by 2030, aiming for full
employment.
43. The introduction of new technologies has long been the focus of debates on whether these result
in job losses or net job gains. History suggests, rather convincingly, that technological
advancement has been a key driver of economic and social progress. That is in no small part
because our social contract has ensured a just share of progress and, in some countries,
supported those most affected by the loss of jobs or income. The business landscape is growing
more diverse, and the ability of enterprises to harness technological advancements varies
significantly. Failure to address these digital divides will concentrate the benefits of productivity-
enhancing technologies, including artificial intelligence, to a small set of enterprises and exclude
countries, enterprises and workers without the necessary infrastructure. Earlier this year, the
UN General Assembly called for the development of measures for the “identification and
assessment of the impacts of the deployment of artificial intelligence systems on labour markets,
and providing support for the mitigation of potential negative consequences for workforces,
especially in developing countries”.
13
International labour standards have also recognized that
limited access to new technologies poses a significant challenge for the development and growth
of small and medium-sized enterprises and their capacity to generate quality employment.
14
44. Are the shared responsibilities in our social contract still fit for purpose in terms of maximizing
opportunities for employment creation while preventing structural inequalities, associated with
new digital technologies? This is a question that concerns not only wage employees at risk of
displacement but also small and under-resourced enterprises. With appropriate support and
incentives, sustainable enterprises and entire economies can reap the benefits of technology. It
is also a pertinent question for workers capitalizing on new digitally driven employment
opportunities and for governments concerned with maximizing the benefits of technological
advances while preventing, minimizing or mitigating the adverse labour market impacts resulting
from automation or the introduction of artificial intelligence. And it is a question for workers
concerned about job destruction and job quality loss and for employers grappling with their
responsibilities and legal liabilities to safeguard workers against formerly unknown safety and
health hazards.
45. The quest to renew our social contract might inspire us to be guided by the “leave no one behind”
paradigm when considering the social objectives of technology policies and their impact on
productivity and innovation. Our normative heritage already calls for “the promotion of
technological linkages between large-scale and small-scale undertakings” and “investments in
technology that would encourage, directly or indirectly, the creation of employment and
contribute to a progressive increase in production and the satisfaction of the basic needs of the
population”.
15
46. And what role is there for sustainable enterprises? Sustainable enterprises play a pivotal role in
fortifying social contracts. Operating with a long-term vision, these businesses offer stable, high-
quality employment, drive environmental stewardship through innovation, and foster trust and
cooperation by actively engaging with local communities. The sustainability of these enterprises
hinges on a multitude of factors that necessitate societal cooperation. When enabled by a
13
UN General Assembly, resolution 78/265, Seizing the opportunities of safe, secure and trustworthy artificial intelligence systems
for sustainable development, A/RES/78/265 (2024), para. 6(q).
14
See, for example, the Job Creation in Small and Medium-Sized Enterprises Recommendation, 1998 (No. 189), Para. 6(2)(f) and
Preamble.
15
Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169), Paras 24 and 26(d).
20
Towards a renewed social contract
Chapter 3. Renewing the social contract
supportive policy and business environment, they can leverage the forces of social contracts to
create lasting impact.
47. The social contract must internalize the environmental dimension and a just transition.
Have economic insecurity and economic inequality become entrenched as economies integrate
without adequately internalizing labour and environmental costs? Questions such as this are
being asked in different international forums. At the 2023 UN Climate Change Conference, the
parties to the Paris Agreement adopted a work programme on just transition pathways calling for
the first time for a “[j]ust transition of the workforce and the creation of decent work and quality
jobs in accordance with nationally defined development priorities, including through social
dialogue, social protection and the recognition of labour rights”.
16
48. The social contract needs to deliver a fair share of the fruits of progress. How can the
declining share of labour income in many countries be addressed? How do we strengthen the
policies and institutions needed to address the rising inequalities within and between countries?
Should a renewed social contract seek to mitigate the large gap in productivity gains? Many worry
that these gains are increasingly monopolized by a select group of enterprises, stifling sustainable
income growth and distribution and excluding certain individuals, companies and entire nations.
Evidence is mounting that the resulting inequalities in turn damage economic growth and
stability. As growing populations find themselves in low-growth, low-productivity and informal
sectors, perhaps we should view our challenge as designing or reconfiguring complementary
policies that promote the sharing of productivity gains among all members of society.
49. One question indeed is whether our current social contract has been robust enough to pave
pathways out of the hand-to-mouth subsistence that marks much of the informal economy
around the world. We are familiar with both the cause and the consequences of informality and
have redoubled efforts to promote the pathways leading to formal employment in sustainable
enterprises free from unfair competition. These include regulatory reforms simplifying
registration processes, calibrating labour laws and ensuring social protection rights for informal
workers. The fight against informality also requires financial inclusion, widespread access to
formal banking and credit services and efforts to enhance workers’ employability through
education and skills development, ideally on a lifelong basis. We must continue to encourage
formal job opportunities by supporting small enterprises and promoting investment. We must
also continue to revalue employment relationships and to directly engage the social partners in
policies that promote formalization.
50. Are we perhaps overlooking the fact that our current social contract does not adequately address
the challenges associated with the transition from the informal to the formal economy? As we
stand at the midpoint of our journey towards 2030, global unemployment has declined since its
historic peak of 2020, when the pandemic’s devastating and immediate impact led to the loss of
the equivalent of over 170 million full-time jobs. However, the number of workers in the informal
economy surged from 1.5 billion in 2015 to 2 billion in 2019. Among these informal economy
workers, a significant proportion are women and young people.
51. Considering the lengthening lifespans and ageing populations, should we not pursue greater
intergenerational and international solidarity? Why do more than 22 per cent of those over the
age of retirement globally, and almost 77 per cent in low-income countries, lack access to
16
United Nations Framework Convention on Climate Change, Report of the Conference of the Parties serving as the meeting of the
Parties to the Paris Agreement on its fifth session, held in the United Arab Emirates from 30 November to 13 December 2023, Addendum,
decision 3/CMA.5, para. 2(e).
21
pensions?
17
Integrated policies that promote access to healthcare, education and social
protection, prevent or at least alleviate poverty, and create employment opportunities for decent
work in the formal economy are key to achieving economic security, reducing inequality and
maintaining fiscal sustainability. Furthermore, gender disparities in the provision of social
protection must be addressed, given the unique challenges that women often encounter due to
employment gaps, informal work and the unequal sharing of caregiving responsibilities.
52. The social contract needs to ensure adequate labour protection. Throughout history,
humanity has united to express its shared values in safeguarding the inherent dignity of every
individual. Faced with political and economic oppression, we collectively declared our
commitment to human rights, enshrining them within the framework of the rule of law. Some of
these human rights have found their place as part of a floor provided by the fundamental
principles and rights at work. Others, such as those concerning limits on working hours,
remuneration ensuring a decent standard of living for workers and their families, social security,
maternity protection and access to adequate food, clothing, housing and education, provide
equally important guardrails when navigating the intersecting transitions in the world of work. In
fact, the ILO Centenary Declaration for the Future of Work (2019) echoed the need to strengthen
the institutions of work to ensure the adequate protection of all workers along with a
transformative agenda for gender equality.
53. Now, as we contemplate a renewed social contract, we face a pivotal question: should we seize
this opportunity to construct a labour protection floor – one that encompasses the full spectrum
of human rights at work? The answer lies in our collective commitment to justice, fairness and the
well-being of all regardless of employment status.
54. There is a rising expectation among workers of having more control over their working time.
Balancing this expectation with the interests of employers in respect of greater flexibility presents
something of a conundrum for our social contract. On the one hand, the ability of workers to exert
more control over their working hours is enabled by technology and is, at least in parts of the
world, becoming part of the mainstream, through flexible working hours, working time accounts
and hybrid working models – often developed on the basis of social dialogue. Such developments
seem to meet the objective of improving work–life balance. On the other hand, it is estimated that
one third of workers globally regularly spend more than 48 hours per week in paid work. In some
countries, the majority of workers feel that work is becoming more intense and demanding and
heavy workloads are frequently cited as the most common cause of work-related stress and even
long-term sick leave. Regular long hours of work remain a serious concern in most of the world
today, and in certain regions in particular. Indeed, exposure to long working hours of over
55 hours per week has been found to be the occupational risk factor with the largest attributable
work-related burden of disease, leading to almost 745,000 deaths globally in 2016.
18
This
suggests a need to renew consensus in the social contract on working time. The Preamble to the
ILO Constitution calls for improvements in working conditions through the regulation of the hours
of work, including the establishment of a maximum working day and week. Should we reaffirm
our shared resolve that rest and leisure, including reasonable limits on working hours, are a
human right?
19
Is it not incumbent on us to revisit this oldest of demands of working people and
17
Data from the ILO World Social Protection Data Dashboards and ILO, World Social Protection Report 2020–22: Social Protection at
the Crossroads – in Pursuit of a Better Future, 2021.
18
WHO and ILO, WHO/ILO Joint Estimates of the Work-related Burden of Disease and Injury, 2000–2016: Global Monitoring Report, 2021.
19
See also Article 24 of the Universal Declaration of Human Rights and Article 7(d) of the International Covenant on Economic,
Social and Cultural Rights.
22
Towards a renewed social contract
Chapter 3. Renewing the social contract
reach an agreement that protects employment quality and seeks to improve the balance between
productivity gains and leisure?
55. Rising inflation is eroding real wage growth in many countries. The increasing cost of living is
disproportionately affecting lower-income earners and their households, adversely affecting
efforts to combat income inequality and poverty. We know that we must pay attention to the
decoupling of wages and productivity and the declining share of labour income as drivers of
inequality in the world of work. Progress in closing the gender pay gap has stalled, with women
earning consistently at least 20 per cent less than men. And women continue to bear the bulk of
unpaid home and care work, exacerbating these inequalities.
56. The value of social dialogue to the social contract was recognized in the recent tripartite
agreement on the operationalization of a living wage through wage-setting processes, including
by considering the needs of workers and their families and economic factors as set out in the
Minimum Wage Fixing Convention, 1970 (No. 131). This agreement represents a significant step
forward for the ILO. Many countries are regularly reviewing and adapting minimum wages on the
basis of social dialogue in the light of perceptions that local minimum wages are insufficient. The
ratification of instruments promoting collective bargaining has developed steadily in the twenty-
first century. Normative commitments in respect of other wage policy instruments have been less
forthcoming. This aspect of our social contract needs to be renewed so that all can enjoy an
adequate standard of living.
57. The greater operationalization of living wages through wage-setting processes would amount to
an investment in social inclusion. In 2023, approximately 700 million people across the globe were
subsisting below the international extreme poverty line, while almost 7 per cent of the world’s
workers lived in extreme poverty. The overall numbers have come down considerably in the last
few decades, but not enough to keep us on track to reach the targets we have set ourselves for
2030, especially considering the reversal of progress the pandemic shock represented in 2020.
We have shown that we can come together to tackle structural inequalities and take pivotal steps
towards a more inclusive world. The challenge is how to replicate the tripartite agreement on
living wages in wage-setting and wage-fixing processes at the national, industry and local levels.
Operationalizing a living wage together with access to universal social protection could meet the
aspiration of some countries to uplift the working poor and could be the basis for a more equitable
social contract. It may be a way of recognizing and valuing unpaid care work, which is often
performed by women and contributes significantly to society.
58. The social contract must advance democracy at work.
In order that social negotiation should succeed in laying the foundations of a social contract or
compact and implementing it, sufficiently strong employers’ and workers’ organisations must
be active at all levels, and the State must guarantee these and not surrender its function of
arbiter … The ILO’s assistance is of particular urgency, for prompt action is needed to ward off
the serious dangers that threaten democracy in periods of transition or structural adjustment
programmes.
20
Such were the thoughts of those seeking to inspire the world of work in 1992, a time when the
world was placing people’s aspirations for freedom, equal opportunities and genuine
participation in their country’s social and economic life in the hands of political democratization
and economic transition to the market economy. They serve as a useful reminder that no matter
the challenges imposed by reform or transition, people want to be involved in the creation of the
20
ILO, Democratisation and the ILO, Report of the Director-General (Part I), International Labour Conference, 79th Session, 1992,
61 and 64.
23
social and economic environment in which their endeavours may bear fruit. Individuals willingly
embrace their economic responsibilities, not through coercion or unbearable hardship, but rather
by participating in constructive dialogue to formulate agreements on necessary reforms.
Workplace democracy, fundamental freedoms and social justice thus serve as essential pillars of
the social contract.
59. Strong membership-based organizations of employers and workers are the lifeblood of
democracy and democratic decision-making. Their effectiveness in forming and upholding a
social contract hinges on respect for fundamental rights and meaningful representation.
Unfortunately, both are in increasingly short supply. Discrimination, intimidation and violence
against trade unions persist in many countries. The freedom of association of employers is also
under threat in some countries. The effectiveness and legitimacy of social dialogue depend on
whose voices and interests find representation at the negotiation table. A decline in trade union
density and coverage by collective agreements in some countries has left a diverse workforce
increasingly voiceless, although noteworthy initiatives hint at the possibility of reversing the tide.
While small businesses have organized and are increasingly members of business and employers’
organizations, various groups – such as platform workers, domestic workers, migrant workers
and informal microentrepreneurs – have adopted inventive strategies to amplify their voices
within workplaces and shape their economic destinies. Notably, the collaboration between trade
unions and under-represented or unrecognized workers’ organizations suggests a broadening of
the labour movement’s horizons, bridging the divide between those in recognized employment
structures and those operating outside them.
60. The challenge lies in scaling up these experiences. How can we amplify successful models and
create a more inclusive and equitable world of work? Perhaps it is time to explore collaborative
strategies, foster cross-sector partnerships and advocate for policies that empower workers
across the spectrum and for better resourced institutions of social dialogue at all levels.
61. Social dialogue is a proven catalyst for navigating complexity and finding solutions when and
where they are needed. When based on adequate representation, social dialogue can offer
inclusivity, balance and equity. By promoting democracy in the world of work, we contribute to a
broader democratic fabric that protects civic space.
62. In fact, the COVID-19 pandemic made us rediscover and appreciate the immense value that robust
social dialogue can add to our workplaces. During the peak of the pandemic, collective bargaining
emerged as a responsive and crucial regulatory mechanism, offering certainty to both employers
and workers amid an uncertain landscape. These negotiations addressed a range of critical issues,
including health and safety, sick leave, health benefits, working-time flexibility and other
arrangements aimed at balancing work and family life, as well as employment security.
Agreements were reached extending health protection to frontline workers who faced a high risk
of virus exposure. In addition, they secured contractual status for workers who had previously
been in temporary employment without adequate healthcare coverage. Tripartite accords –
involving governments, employers and unions – played a pivotal role. Employers made a
commitment to retaining their workforce, unions cooperated in reducing working hours to
maintain economic stability, and governments provided benefits and wage subsidies to support
both workers and enterprises.
21
63. Securing safe and healthy working environments provides an example of how social contracts can
advance decent work. Nearly 3 million workers die every year due to work-related accidents and
21
See ILO, Social Dialogue Report 2022: Collective Bargaining for an Inclusive, Sustainable and Resilient Recovery, 2022.
24
Towards a renewed social contract
Chapter 3. Renewing the social contract
diseases, an increase of more than 5 per cent compared to 2015. Climate change is compounding
this challenge, by adding extreme weather events, heat stress and air pollution to the list of work-
related hazards that can result in human tragedy and reduce productivity to the tune of millions
of work hours lost. We know that there is a direct correlation between safer and healthier working
environments and economic success; not coincidentally, this is evident mostly in countries where
social dialogue is better established. Elements of the solution – respect for the right to a safe and
healthy working environment; a system of defined rights, responsibilities and duties; and timely
preventative action – have long been captured in internationally recognized standards. However,
to produce an impact that is bigger than the sum of its parts, we need a culture of social dialogue
at all levels, including: tripartite consultations for viable regulatory frameworks; collective
agreements addressing industry- or workplace-specific concerns in safety protocols, training
programmes and reporting mechanisms; and workplace cooperation securing the regular
exchange of information as hazards evolve.
64. In 2022, social dialogue served to plug a gap in the global social contract when it led to the
inclusion of a safe and healthy working environment as a fundamental principle and right at work.
We should now renew the energies of cooperation, coalition-building and expanded partnerships
to deliver the capabilities and resources needed and, in that way, prioritize a safe and healthy
working environment everywhere and across all economic and social policies.
65. The social contract needs to ensure access to and the provision of essential services and
universal access to social protection. Successive generations of standards have firmly
embedded a systemic approach to social security, giving the State the general responsibility for
establishing and maintaining a system securing the protection of its population against the
contingencies faced throughout people’s lives, including when these result from systemic shocks,
through a combination of contributory and non-contributory mechanisms.
66. The benefits of ensuring that every individual, regardless of their socio-economic background,
has access to essential benefits and services are clear. When families have access to healthcare,
education and social protection, they can invest in their future and bolster the resilience of their
economies and the inclusiveness of their societies by empowering marginalized communities.
Investment in universal social protection ripples through economies, fostering innovation,
entrepreneurship and productivity. Universal social protection transcends divisions of gender,
age and geography. It ensures timely access to healthcare, thereby reducing disease transmission
and improving pandemic preparedness. Universal social protection is a human right. It
strengthens a social contract by fostering mutual obligations, rather than allowing social
protection benefits to be seen as mere handouts that can be diminished or eliminated based on
someone else’s notion of who is deserving of such benefits. Might universal social protection be
our best hope for inspiring global solidarity and putting the Sustainable Development Goals back
on track, fostering a more equitable and sustainable world?
67. Universal social protection is no longer an abstract concept. Concrete proposals have been put
forward to make it a reality. These include establishing a global social protection fund for the least
developed countries, earmarking a gradually rising portion of development aid funds for social
protection and introducing fiscal reforms at the national level. Such measures could go a long way
in reversing the decline in the labour share of global income and reducing the inequalities
currently eroding the social contract.
68. A genuine consideration of universal social protection to tackle inequalities and revive solidarity
between countries places debt relief on the agenda as well. Austerity and fiscal discipline
measures, intended to stabilize economies and reignite economic growth, have frequently
disregarded social policy considerations in the past, to their detriment. The conditions for
25
obtaining loans from international financial institutions have primarily centred on reducing public
spending, which has had detrimental effects on critical social services and infrastructure such as
health, education and social protection. In addition, privatization has exposed vulnerable sectors
to intensified competition, adversely impacting local industries and employment opportunities,
often the sole form of social protection. The current debt crisis severely hampers the ability of
many developing countries to invest in social policies, once again underscoring the critical need
to restore fiscal space to ensure social justice. The external debts of low- and middle-income
countries doubled between 2010 and 2022, exactly at the time when their vulnerability to climate
change and, therefore, their social protection needs to support a just transition, increased
sharply. International solidarity is required, as is consideration by the international community of
ways to bridge the financing gap for social protection, including through largely unmet official
development assistance and new international financing mechanisms.
69. The social contract needs to be grounded in norms that are responsive to a changing world
of work. The effectiveness of a renewed social contract hinges on the ongoing relevance and
legitimacy of the norms that govern it and the clarity with which they define our shared
responsibilities. As a standard-setting organization, keeping our body of international labour
standards clear, robust and up-to-date is a vital contribution to the rule of law and a lasting
assertion of the equality of everyone before the law in an environment in which economic power
is not equally available to everyone.
70. It should be expected that, in our periodic tripartite reviews of standards, we detect regulatory
gaps, and more so as change in the world of work accelerates. When faced with the difficulty of
filling such gaps in time, we should be able to turn to new and simpler processes for the revision
of existing technical standards. Our standard-setting organs could then focus on structural gaps
in the social contract arising from transformative challenges.
71. As the only universal tripartite organization capable of setting standards at the international level
that advance social justice, we may want to explore the desirability of new standards that would
address the interrelated transitions – environmental, technological and demographic – and their
impacts on the world of work. In renewing the social contract, we may wish to reiterate that
sustainable development is based on global interdependence, which in turn means a sharing of
the benefits and burdens within and across borders. As with the integration of economies, so with
environmental and technological concerns: the deleterious effects of the transformations under
way and the constraints they impose on development cannot fall on the weakest and least able
to respond. The challenges of a burgeoning youth in countries unable to tap their talent in formal
labour markets, or of ageing populations in countries that are unable to provide the quality care
needed, have implications for all countries. As mandated of our Organization in the Declaration
of Philadelphia, this requires the coordination of international social, economic and financial
policies. A possible new standard could provide a common frame of reference and guidance to
Members in respect of social, environmental and technological developments that advance social
justice and sustainable development. It could elaborate on the need to invest in human rights and
capabilities for just transitions; in universal social protection; in the fundamental principles and
rights at work; in the sharing of the benefits and burdens; and, last but not least, in international
solidarity and responsibility as grounds for social justice and lasting peace.
72. On the eve of the ILO Centenary, we agreed on a set of interventions to strengthen the
supervisory system, recognizing that implementing and supervising standards is as fundamental
to our social contract as setting them, if not more so. A fresh initiative may be warranted to enable
the more systematic reflection of transition challenges in reporting and supervision and to steer
development frameworks in such a way as to support more resolutely the implementation of
standards.
26
Towards a renewed social contract
Chapter 3. Renewing the social contract
73. There is also a need for more information on the efforts by those that have not ratified the
fundamental Conventions to respect, to promote and to realize the principles that are the subject
of those Conventions. Such information could bring us closer to the universal ratification of the
fundamental Conventions, thereby strengthening the new social contract.
27
Chapter 4
Renewing the social contract
74. Crises and transformative changes are inevitable. The decisions we make today as governments
and employers’ and workers’ organizations to renew our initial social contract – which set the ILO
apart as a tripartite organization – will determine whether we are up to the task of establishing
universal and lasting peace based on social justice. Demographic and technological changes can
present opportunities, but only if we have the human capabilities needed to harness these. As I
set out in my last report to the Conference, in 2023, universal human rights and capabilities are
foundational. They are the basis for education and for effective access to public services on the
one hand, and for the realization of enabling rights, such as freedom of association, on the other.
It is on these foundations that people can access opportunities to employment and participate in
productive activity. We must reimagine and renew the social contract if we are to realize these
opportunities.
75. We know that social justice is a journey as well as a destination. In my last report to the
Conference, I laid out four interrelated and interdependent dimensions of social justice that
characterize the ways in which societies are governed and the form that implicit social contracts
take. These are: universal human rights and capabilities; equal access to opportunities; fair
distribution; and just transitions. We need to renew the social contract on the basis of these
dimensions.
76. We know that our current social contract is fraying. We need to find a way to stitch back together
the fabric that holds us together as communities and nations of people, reinforced by solidarity
at the international level, by renewing the social contract. Three key threads, or components, will
enable us to do this, as described below.
• Accountability. We each have a role to play. As governments and employers’ and workers’
organizations, we have duties to ourselves and to each other. Being accountable will involve a
redoubling of efforts to assume our respective responsibilities within a renewed social contract
and a commitment to accountability for actions within and beyond jurisdictions, transparency
and, of course, access to justice as a basic principle of the rule of law. It may require additional
investment in both normative and social dialogue mechanisms at all levels. It will certainly
require an effort to cooperate, collaborate and compromise, as we work to tear down the walls
of mistrust and recommit to a future in which rights, responsibilities and prosperity are shared
by all, and not just concentrated in the hands of a few.
• Adaptation, responsiveness and inclusivity. This component involves continued efforts to
ensure that our shared responsibilities under a renewed social contract are commensurate with
our shared expectations. It should prompt us to fill regulatory and policy gaps, where these
exist. In so doing, we will need to give priority to addressing what our initial social contract
sought to correct, namely the imbalances in labour markets arising from and feeding structural
inequality and exclusion that can compromise longer-term commitments. Attention should be
given, as called for in the Centenary Declaration, to ensuring: the adequate labour protection
of all workers, including respect for their fundamental rights; an adequate minimum wage,
statutory or negotiated; and maximum limits on working time. In ensuring effective action to
achieve the transition to formality, attention must be given to workers and enterprises on the
fringes of existing social contracts, including migrant workers and refugees, domestic workers
28
Towards a renewed social contract
Chapter 4. Renewing the social contract
and home workers, rural workers, indigenous peoples, healthcare workers, seafarers and those
working in small and medium-sized enterprises.
• Expansion of our ambition of achieving coherence between social, economic and financial
policies. More extensive action and capacity will be needed, with greater powers of persuasion,
to navigate the transitions and transformations that threaten to overwhelm our traditional
policy interventions. This component will require, as the Declaration of Philadelphia gives us
the mandate to do, the examination of international financial and economic policies to assess
if these meet the fundamental objective of social justice. It will require improved data collection,
analysis and research in respect of development spending gaps and recommendations to be
made in this regard. Lastly, it will require the consideration of all relevant economic and
financial factors, and recommendations that can drive social dialogue at all levels to renew the
social contract, including, for example, on the expansion of fiscal space, tax reforms, debt
restructuring and financing for social objectives.
77. In a climate of insecurity, instability and uncertainty, it is my view that there are green shoots of
renewal at the ILO that may mark a turning point for the rest of the international community. We
are seeing a growing convergence among those who speak for the real economy –
representatives of governments, employers and workers who transform the commitments made
in multilateral forums into practical policies and programmes that work for people – around the
need for a renewed social contract and the areas and issues requiring attention in such a
rebalancing and renewal. These voices need to be heard. This real-world knowledge needs to
shape the path our leaders will decide to take.
78. Let us, then, consider two questions. The first is how should we go about renewing the social
contract? Renewing the social contract is fundamentally about investment in people, in their
rights and capabilities, in their opportunities to secure employment and live productive lives, in
their capacity to enjoy a just share of their contribution and the fruits of progress, and in their
capacity to enjoy protection against risk of loss of income and protection in old age. It is also about
investment in the capacities and support that both people and economies need in order to
navigate their way through the many transitions ahead. Many of these priorities were discussed
in the preceding chapter.
79. There will be differences and contestation over these priorities among and between governments
and employers’ and workers’ organizations. We must make a commitment to resolve these
differences through social dialogue, as the proven means to renew the social contract.
80. There have always been contested interests: over the pace of development; over the appropriate
institutions in which to embed our societies and economies so that all can pursue their material
well-being in conditions of freedom and dignity, economic security and equal opportunity; and
over how to ensure that all can enjoy a just share of the fruits of progress. Through social dialogue,
although contentious at times, trust has been built, international norms have been established
and policies and measures have been implemented at the national level that have improved the
working lives of billions of people and spurred the productivity and well-being of nations. We have
used social dialogue to reinvigorate our mandate in the face of globalization and, most recently,
to shape a future of work involving technological, environmental and demographic
transformations.
81. Today, we need to reframe our social contract using social dialogue, to make it the cornerstone
of a human-centred approach to the transformative changes taking place in the world of work
that are driven by technological innovations, demographic shifts and environmental and climate
change. It is through the efforts of the ILO, which exemplifies a model of global dialogue, that a
renewed and democratic multilateralism can be achieved.
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82. The Global Coalition for Social Justice will spark many new initiatives to support social justice and
decent work and will breathe new life into existing ones. The aim is to achieve a shared vision of
some of the challenges around which many partners will coalesce – from ensuring a just transition
to addressing inequality.
83. The Second World Summit for Social Development, to be held in 2025, is the greatest opportunity
of our time to turn the tide. We must not, and cannot, miss this opportunity.
84. We also know that we will need a strengthening of international cooperation and a reform of the
international financial architecture to ensure that countries can invest in the social policies and
institutions needed to advance social justice and finance a just transition at the national level –
rather than invest in the servicing of debt to the point of distress. These policies and institutions
must deliver a floor of adequate protection and opportunities for all workers, and indeed
opportunities for all countries and all businesses. The ILO’s latest report on the financing gap
showed that the costs of investing in a global social protection floor are not insurmountable and
yet the social, demographic and economic effects are significant. For Africa, for example, in 2024,
the annual cost of ensuring universal access to old-age pensions set at the national poverty line
would represent a mere 0.9 per cent of gross domestic product and approximately 9.7 per cent
of global annual official development assistance. Add to this investment under the Global
Accelerator on Jobs and Social Protection for Just Transitions, and we are talking of transformative
change.
85. The second question is how can we amplify the voices of the real economy? The ILO’s Working
Party on the New Social Contract for Our Common Agenda offers an opportunity to prioritize and
provide tripartite input from actors in the world of work to the Second World Summit on Social
Development in 2025. These priorities and the road map that you will lay out will be the outcome
of the expression of divergent interests and involve much contested terrain. But therein lies its
strength. Once agreed, it is you, as the agents of change, who will advocate for such policies with
other partners and actors and of course be responsible for the implementation of those measures
that lie within your own domain. National tripartite dialogues are being organized in some
countries to provide national contributions to this global reflection.
86. We have the institutional means to forge consensus, accelerate actions and fulfil our mandate for
social justice through the renewal of the social contract – including by deepening engagement
with other critical actors as envisaged in the ILO Constitution. Let tripartism not be some outdated
modus operandi; let it be our strength.
87. We need to revitalize tripartism and the employers’ and workers’ organizations that underpin it.
These democratic institutions are incomparable to other collective social institutions. They
provide a unique legitimacy to a voice that must be heard. They are the basis for rebuilding trust.
As actors, you – employers’ and workers’ organizations – need to revitalize your organizations and
recommit to social dialogue founded on freedom of association. And you – governments – must
provide the enabling environment and institutions for tripartism and social dialogue to realize
their full potential. In this way, the ILO and its constituents can play a formative role in shaping
and renewing the social contract at the national level – backed up by technical assistance from
the ILO.
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Towards a renewed social contract
Chapter 4. Renewing the social contract
88. Just under 30 years ago, in 1995, it was at the first World Summit for Social Development that the
global community took what seemed to be a small step forward and articulated a set of core
labour standards.
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Today, we have the ILO Declaration on Fundamental Principles and Rights at
Work (1998), as amended in 2022, that all ILO Member States, by virtue of their membership, have
an obligation to respect, to promote and to realize. In 2022, the global community agreed to add
a safe and healthy working environment as the fifth fundamental principle and right at work. Now
is the time to reflect on the next social and environmental flagstones that we need to lay down,
as we renew the social contract.
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Governments made a commitment in the Programme of Action of the World Summit for Social Development to enhance the
quality of work and employment by “safeguarding and promoting respect for basic workers’ rights, including the prohibition of
forced labour and child labour, freedom of association and the right to organize and bargain collectively, equal remuneration for
men and women for work of equal value, and non-discrimination in employment, fully implementing the conventions of the
International Labour Organization (ILO) in the case of States parties to those conventions, and taking into account the principles
embodied in those conventions in the case of those countries that are not States parties to thus achieve truly sustained economic
growth and sustainable development.” See United Nations, Report of the World Summit for Social Development, Ch. I, resolution 1,
annex II, para. 54.