B. Ensure that economic gains lead to
shared prosperity.
The AEC has the potential to lead to higher output,
trade, employment and productivity. But balanced
and inclusive growth will need appropriate policies
and labour market institutions.
1. Strengthening the productivity-wage link – If
workers can benefit from growth, this will increase
household consumption and drive domestic and
regional demand as well as spur inclusive and
sustained economic growth. This requires effective minimum wage institutions to help those at
the bottom of the wage distribution, along with
better mechanisms for collective bargaining –
which would also minimize industrial conflict.
Linking wage growth to productivity growth
would ensure that workers share in the fruits of
economic dynamism in ASEAN.
2. Improving opportunities for better quality
jobs – Skills development initiatives should equip and certify workers, particularly young
women and men, with the skills demanded by
employers, especially in high-growth productive
sectors and occupations. This would provide a
ladder to higher-skill jobs with better wages and
working conditions and ease the transition for
young women and men from the classroom to
the workplace.
3. Promoting gender equality – Without appropriate policy action, job creation through the
AEC could widen existing gender gaps in labour
force participation and access to quality jobs –
increasing the disadvantages faced by women.
ASEAN Member States increasingly realize
that it is smart economics to utilize all available
human resources. It is therefore imperative to deal
with the labour market discrimination faced by
women. Further policy commitment is required
along with practical measures based on analysis
of sex-disaggregated data. This should aim to
reduce gender disparities and promote gender
equality in various dimensions – employment,
education and training, wages and migration.
4. Protecting migrant workers – The ASEAN
Multilateral Framework on Migration can guide
migration policies, but the main mechanisms
for facilitating labour migration are likely to be
bilateral agreements. These need to be simplified and strengthened to ensure that migrant
workers are protected and treated fairly. Female
migration in ASEAN is dominated by domestic
work so it is important that governments ratify
the ILO’s Domestic Workers Convention, 2011
(No. 189), and extend the necessary rights and
protections. It is also important to enforce labour
laws based on principles of equal treatment of
migrant workers. This would help reduce labour
market segmentation and minimize dependence
on cheap foreign workers, while creating a level
playing field for enterprises.