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Labour Market Profile Tunisia – 2020/2021 LABOUR MARKET PROFILE TUNISIA – 2020/2021 Danish Trade Union Development Agency, Analytical Unit The profile provides a comprehensive overview of the labour market’s structures, development, and challenges. Danish Trade Union Development Agency Tunisia Labour Market Profile PREFACE The Danish Trade Union Development Agency (DTDA) is mechanisms, policy development and legal reforms, the development organisation of the Danish trade union status vis-à-vis ILO conventions and labour standards, movement. It was established in 1987 by the two largest among others. Danish confederations – Danish Federation of Trade Unions (Danish acronym: LO) and Danish Confederation Main sources of data and information for LMPs are: of Professionals (Danish acronym: FTF). These two organisations merged to become the Danish Trade Union • As part of program implementation and monitoring, Confederation (Danish acronym: FH) in January 2019. national partner organisations provide annual The name of this organisation, former known as the narrative progress reports, including information on LO/FTF Council, was changed to DTDA. labour market developments. Specific types of data and information relating to key indicators are The work of DTDA is in line with the sustainable collected by use of a unique data collection tool. development goals and the International Labour Organization’s (ILO) Decent Work Agenda (DWA). The • National statistical institutions and internatinal four Decent Work Pillars: Creating decent jobs, databanks are used as source for collection of guaranteeing rights at work, extending social protection, general (statistical) data and information. It includes and promoting social dialogue forms the overall the ILOSTAT and NATLEX, World Bank Open Data, development objective of DTDA’s interventions in the ITUC Survey of violations of Trade Union Rights, the South. The core objective is to eradicate poverty and U.S. Department of State as well as other labour support the development of just and democratic societies related global indexes. by furthering the DWA. • Academia and media sources (e.g. LabourStart, DTDA works in partnership with trade union organisations national news, etc.) are also used in the general in Africa, Asia, Latin America, and the Middle East. The research on labour market issues. immediate objective of the programme collaboration is to assist the partner organisations in becoming change Labour Market Profiles for more than 30 countries are agents in their own national and regional labour market available on the DTDA’s website. context, capable of achieving tangible improvements in the national DWA conditions and towards the DTDA’s Analytical Unit in Copenhagen prepared the achievement of the labour-related Sustainable desk study of the Labour Market Profile in collaboration Development Goals’ (SDGs). with the DTDA MENA sub-Regional Office in Tunisia and Jordan. The format of the Labour Market Profile (LMP) provides a comprehensive overview of the labour market situation Cover Photo: butcher worker in Tunisia photographed by in the individual countries of engagement. LMP aims at Mr. Carsten Snejbjerg. giving a comprehensive view of structures, developments and challenges in the labour markets. The document is Should you have questions about the profile, you are divided into eleven thematic sections describing trade welcome to contact Mr. Kasper Andersen unions, employers’ organisations, government, bi- ([email protected]). /tripartite institutions and social dialogue, national labour legislation, violations of trade union rights, Address: working conditions, status of the workforce, education, Ulandssekretariatet social protection, and economy. Islands Brygge 32D DK-2300 Copenhagen S In the framework of DWA and SDGs, LMPs are reporting Denmark on several key indicators addressing several aspects of Telefon: +45 33 73 74 40 labour market development, especially the trade union https://www.ulandssekretariatet.dk/ membership evolution, social dialogue and bi-/tri-partite Page i Danish Trade Union Development Agency Tunisia Labour Market Profile EXECUTIVE SUMMARY organised workers in trade unions. Furthermore, Tunisian workers experience systematic violations of rights in he Republic of Tunisia is experiencing a democratic practice, e.g. trade unions have experienced several both transition. Despite this improvement, economic T threats and physical attacks. development has been challenged by an unsustainable level of public spending, increasing debt, and declining Around one out of two Tunisian workers operate in the production in central sectors. Labour productivity was informal economy. They loophole labour and business increasing and stayed in line with the Northern Africa regulations, and most often, they lack awareness of the average. Real wage hikes were stymied by increasing workers’ rights or incentives to formalise activities. inflation in consumer prices. Workers’ working conditions were deteriorating that fostered mass actions in the streets. During the last two decades, there were minor changes in The economy even entered recession in 2020 as an impact the employment structure. More than half of the workforce of the global Coronavirus epidemic. is economically inactive. Women contribute 24% of total employment and are underrepresented in all sectors. The A series of labour-related laws and policies have been manufacturing industry has driven the country’s Gross launched during the 2010s, especially in areas of tripartite Domestic Production (GDP) growth, but it has decreased consultations, equality of opportunity and treatment, and significantly. It fosters changes in Export Processing Zones social security. There are several observations in legislation (EPZs) to opening Technology Parks in recent years. A concerning the international standards in workers’ rights. central issue in Tunisia is the persistently high youth There are some improvements in the social dialogue unemployment rate of 24%, which is concentrated among institutions. For example, the long-awaited tripartite the more educated; echoed in educational mismatch and National Council for Social Dialogue was inaugurated in too low economic growth stymieing job creation. November 2018, which, among others, has supported discussions on the establishment of ‘job-less fund’ and The Tunisians diaspora plays a role in the country’s national platform for social protection. Act No. 2017-54 economy: personal remittances are almost double as high initiated the representation at the enterprise level setting than Foreign Direct Investments. This remittance flow is platforms to promote alignment of company policies to projected to be struck by the global Coronavirus epidemic. organise Health and Safety Committees. Collective The country also hosts a large segment of migrants from bargaining is prevalent in the formal sector; for example, either Libya or other African countries, as Tunisia functions Collective Bargaining Agreements (CBAs) coverage at as a transit country for persons aiming to reach Europe around 56% among employees. through irregular migration. According to Tunisian employers’ opinion, cooperation in Despite the relatively low child labour rate in Tunisia, it labour-employer relations is fragile. The trade union appears to become more pervasive and visible in the movement experienced a growing membership rate, and aftermath of the Tunisian Revolution in 2011. The education the trade union density was estimated at 38% among total system is confronting a wide range of challenges mirrored employment in 2019. The government held social dialogue in high school dropout rates. negotiations only with UGTT. The three other central trade union organisations – CGTT, UTT and OTT – launched joint Tunisia’s social protection system is relatively well- statements complaining that their representation is ignored developed, but its programmes have poor targeting of and excluded from tripartite negotiations. The benefits, fragmented, and expensive. Just half of the Administrative Court’s verdict in February 2019 supported population is covered by health insurance, excluding the three latter unions have the right to participate in social informal workers. However, a new system of social security dialogue at all levels based on proportional opened for casual workers in 2019, followed by representation, which can change the unionism’s landscape procedures for workers with irregular income to encourage in Tunisia. Another aspect is the application of flexible work them to join the tax and social security systems. contract conditions that have challenged the enrolment of Page ii Danish Trade Union Development Agency Tunisia Labour Market Profile The table below provides an overview of key labour The next page, Page iv, provides an update of Sustainable market indicators in the framework of the Decent Work Development Goals’ labour market related indicators in Agenda (DWA) in Tunisia. current value and targets. Status of key labour market indicators in the framework of the Decent Work Agenda (DWA) in Tunisia Creating decent jobs Active labour market policies have been implemented over decades. Policy reforms addressing creation of In recent years, Tunisia’s social protection and labour policies are reviewed since critical reforms are needed to protect decent employment the workforce that is challenged by meagre real GDP growth rate and high unemployment rate. ILO standard setting on improvement The authorities are implementing a system to monitor the informal economy since
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