DECENT WORK COUNTRY NORTH PROGRAMME 2019–2022 MACEDONIA International Labour Organization Decent Work Technical Support Team and Country Office for Central and Eastern Europe All photos by Kristina Mukoska Zaturovska DECENT WORK COUNTRY PROGRAMME 2019–2022 NORTH MACEDONIA 2019 Decent Work Country Programme CONTENTS CONTENTS List of Acronyms ................................................................................................ vii Summary ............................................................................................................1 Country context ...................................................................................................3 2.1 Economic and social context ...............................................................................3 2.2 Lessons learned ..................................................................................................9 Country Priorities and Country Programme Outcomes ............................................11 Outcome 1.1 Increased relevance of the Economic and Social Councils as dialogue platform in shaping the national and local economic and social reform agenda ...........13 Outcome 1.2 Increased representativeness of employers’ and workers’ organizations ...............................................................................................15 Outcome 1.3 Labour legislation harmonized with the International Labour Standards and the EU acquis .....................................................................................................17 Outcome 2.1 A comprehensive National Employment Strategy promoting decent jobs adopted in consultation with the social partners ..................................................19 Outcome 2.2 Local employment partnerships implemented (with a focus on youth employment) .............................................................................................................21 Outcome 2.3 An up-to-date skills needs anticipation system for reducing skills mismatches and enhancing access to the labour market in place ...............................23 Outcome 2.4 An improved OSH policy guided by ILS and based on comprehensive data in place .............................................................................................................25 Management, Implementation Planning, Monitoring, Reporting and Evaluation Arrangements ....................................................................................................27 4.1 Implementation, performance monitoring and evaluation arrangements, including roles of ILO constituents .....................................................................27 4.2 Risks ................................................................................................................28 4.3 Funding Plan ....................................................................................................28 Annex I ............................................................................................................29 Endnotes ..........................................................................................................30 v Decent Work Country Programme ACRONYMS LIST OF ACRONYMS BCM Business Confederation of Macedonia CEACR ILO Committee of Experts on the Application of Conventions and Recommendations CPOs Country Programme Outcomes DWCP Decent Work Country Programme DWT Decent Work Technical Team ESC Economic and Social Council EU European Union EUR Euro GDP Gross Domestic Product GET Global Emplyoment Trends ILO International Labour Organisation ILS International Labour Standards IOE International Organization of Employers ITUC International Confederation of Trade Unions KSOM Confederation of Trade Union Organizations of Macedonia KSS Confederation of Free Trade Unions ORM Organization of Employers of Macedonia OSH Occupational Safety and Health NEET Young people (15–24) neither in employment nor in education and training MKD Macedonian Denar MLSP Ministry of Labour and Social Policy SAA Stabilisation and Association Agreement SDG Sustainable Development Goals SMART Specific, Measurable, Achievable, Relevant, Time-bound SSM Federation of Trade Unions of Macedonia UN United Nations UNASM Union of Independent and Autonomous Trade Unions of Macedonia vii Decent Work Country Programme NORTH MACEDONIA viii Decent Work Country Programme SUMMARY 1 SUMMARY Why is the DWCP Decent Work Country Programmes (DWCPs) are the main vehicle for deliv- needed? ery of ILO support to member countries. DWCPs represent a medium-term planning framework that guides the work of the ILO in a country in accor- dance with priorities and objectives agreed upon with governments, trade unions, and employers. How was the This programme document is a result of the strategic planning of ILO coop- programme eration activities in North Macedonia for the period 2019–2022. It has been developed? prepared in consultation with the Government and the social partners with the aim of creating employment, extending social protection, guaranteeing rights at work, and promoting social dialogue — all key components of economic and social policies. At the same time the programme supports the ambitious reform agenda outlined in the Program of Government 2017–20201, which focuses on developing the economy and raising the standard of living. The new DWCP also contributes to the government’s efforts to achieve the Sustainable Development Goals framed in the “Partnership for Sustainable Development — United Nations Strategy for 2016–2020”. Priorities of this strategy document are more and better jobs, more responsive governance, a better life for vulnerable people, gender equality, and a cleaner, more resilient environment.2 What are the The key challenges addressed by the DWCP are insufficient employment challenges to be opportunities, inadequate earnings and unproductive work, lack of stability addressed? and security at work, unequal opportunities and treatment in employment, unsafe work environment, and lack of voice through representation. Objectives of the The programme tackles the above listed decent work deficits by improving the programme governance of the labour market and through the creation of more and better jobs. The programme is poised to support the legal and policy reforms pre- scribed by the EU accession process, especially with regard to the negotiations 1 Decent Work Country Programme NORTH MACEDONIA around Chapter 19 on employment and social policies, where the ILO has a clear mandate and technical expertise. Based on lessons learned from past cooperation and recent consultations with the constituents, the current pro- gramme focuses on two priorities with a total of seven outcomes. These are: Priorities Outcomes 1.1 Increased relevance of the Economic and Social Council as dialogue platform in shaping the national and local economic and social reform agenda 1. Improved labour market governance 1.2 Increased representativeness of employers’ and workers’ through enhanced organizations social dialogue 1.3 Labour legislation harmonized with the International Labour Standards and the EU acquis 2.1 A comprehensive National Employment Strategy promoting decent jobs adopted in consultation with the social partners 2.2 Local Employment Partnerships implemented (with a focus on 2. More and better jobs youth employment) for inclusive growth and improved youth 2.3 An up-to-date skills needs anticipation system for reducing employment prospects skills mismatches and enhancing access to the labour market in place 2.4 An improved OSH policy guided by International Labour Standards and based on comprehensive data in place 2 Decent Work Country Programme COUNTRY CONTEXT 2 COUNTRY CONTEXT 2.1 Economic and social context EU as the main The Republic of North Macedonia was the first Western Balkan nation to sign partner a Stabilization and Association Agreement (SAA) with the European Union, which entered into force in April 2004. The country was granted candidate status for EU membership in December 2005, but has not yet entered into accession negotiations. The EU Commission recently recommended to start accession talks, but the European Council has not decided yet. The EU is the country’s main trading partner accounting for 60 per cent of the country’s exports and for 48 per cent of its imports. Political instability Since the 1990s, the Republic of North Macedonia has made considerable slowed economic progress in terms of economic development and integration into global eco- growth nomic markets. Despite these achievements the country is experiencing one of the slowest income convergence with European Union countries compared to peers in the region. Economic growth in the past 15 years has been very vola- tile. Following strong economic growth during the period 2002–08 averaging at 4.3 per cent, average GDP growth has declined to 2.1 per cent per year since 2009 because of the Great Recession and a deep political crisis in 2014–17. In 2017, the unpredictability of the political situation brought economic growth to a halt. The establishment of the new government in mid-2017 reduced uncertainties and GDP growth has climbed to around 3 per cent in the second and third quarter of 2018. Poverty and social inclusion Declining risks of Fighting poverty and social exclusion is one of the main priorities of the coun- poverty try. In 2017, approximately 22 per cent of the population was at risk of poverty or social exclusion3 with no major differences between men and women. This