Se ano, Melisa R.; Xha a, Edli a
Wo king Pape
Indus ial ela ions in mic o and small en e p ises:
Pa e ns, ends and p ospec s
ILO Wo king Pape , No. 129
P o ided in Coope a ion wi h:
In e na ional Labou O ganiza ion (ILO), Gene a
Sugges ed Ci a ion: Se ano, Melisa R.; Xha a, Edli a (2024) : Indus ial ela ions in mic o and small
en e p ises: Pa e ns, ends and p ospec s, ILO Wo king Pape , No. 129, ISBN 978-92-2-041218-3,
In e na ional Labou O ganiza ion (ILO), Gene a,
h ps://doi.o g/10.54394/XJHF2363
This Ve sion is a ailable a :
h ps://hdl.handle.ne /10419/307693
S anda d-Nu zungsbedingungen:
Die Dokumen e au EconS o dü en zu eigenen wissenscha lichen
Zwecken und zum P i a geb auch gespeiche und kopie we den.
Sie dü en die Dokumen e nich ü ö en liche ode komme zielle
Zwecke e iel äl igen, ö en lich auss ellen, ö en lich zugänglich
machen, e eiben ode ande wei ig nu zen.
So e n die Ve asse die Dokumen e un e Open-Con en -Lizenzen
(insbesonde e CC-Lizenzen) zu Ve ügung ges ell haben soll en,
gel en abweichend on diesen Nu zungsbedingungen die in de do
genann en Lizenz gewäh en Nu zungs ech e.
Te ms o use:
Documen s in EconS o may be sa ed and copied o you pe sonal
and schola ly pu poses.
You a e no o copy documen s o public o comme cial pu poses, o
exhibi he documen s publicly, o make hem publicly a ailable on he
in e ne , o o dis ibu e o o he wise use he documen s in public.
I he documen s ha e been made a ailable unde an Open Con en
Licence (especially C ea i e Commons Licences), you may exe cise
u he usage igh s as speci ied in he indica ed licence.
h ps://c ea i ecommons.o g/licenses/by/4.0/
XIndus ial ela ions in mic o and
small en e p ises: pa e ns, ends
and p ospec s
Au ho s / Melisa R. Se ano, Edli a Xha a
No embe / 2024
ILO Wo king Pape 129
Copy igh © In e na ional Labou O ganiza ion 2024
This is an open access wo k dis ibu ed unde he C ea i e Commons A ibu ion 4.0 In e na ional
License (h ps://c ea i ecommons.o g/licenses/by/4.0/). Use s can euse, sha e, adap and build
upon he o iginal wo k, as de ailed in he License. The ILO mus be clea ly c edi ed as he own-
e o he o iginal wo k. The use o he emblem o he ILO is no pe mi ed in connec ion wi h
use s’ wo k.
A ibu ion – The wo k mus be ci ed as ollows: Se ano, M., Xha a, E. Indus ial ela ions in mic o
and small en e p ises: pa e ns, ends and p ospec s. ILO Wo king Pape 129. Gene a: In e na ional
Labou O ice, 2024.
T ansla ions – In case o a ansla ion o his wo k, he ollowing disclaime mus be added along
wi h he a ibu ion: This ansla ion was no c ea ed by he In e na ional Labou O ganiza ion (ILO)
and should no be conside ed an o icial ILO ansla ion. The ILO is no esponsible o he con en o
accu acy o his ansla ion.
Adap a ions – In case o an adap a ion o his wo k, he ollowing disclaime mus be added
along wi h he a ibu ion: This is an adap a ion o an o iginal wo k by he In e na ional Labou
O ganiza ion (ILO). Responsibili y o he iews and opinions exp essed in he adap a ion es s solely
wi h he au ho o au ho s o he adap a ion and a e no endo sed by he ILO.
This CC license does no apply o non-ILO copy igh ma e ials included in his publica ion. I he
ma e ial is a ibu ed o a hi d pa y, he use o such ma e ial is solely esponsible o clea ing
he igh s wi h he igh holde .
Any dispu e a ising unde his license ha canno be se led amicably shall be e e ed o a bi a-
ion in acco dance wi h he A bi a ion Rules o he Uni ed Na ions Commission on In e na ional
T ade Law (UNCITRAL). The pa ies shall be bound by any a bi a ion awa d ende ed as a esul
o such a bi a ion as he inal adjudica ion o such a dispu e.
All que ies on igh s and licensing should be add essed o he ILO Publishing Uni (Righ s and
Licensing), 1211 Gene a 22, Swi ze land, o by email o [email p o ec ed].
ISBN 9789220412176 (p in ), ISBN 9789220412183 (web PDF), ISBN 9789220412190 (epub), ISBN
9789220412213 (mobi), ISBN 9789220412206 (h ml). ISSN 2708-3438 (p in ), ISSN 2708-3446
(digi al)
h ps://doi.o g/10.54394/XJHF2363
The designa ions employed in ILO publica ions, which a e in con o mi y wi h Uni ed Na ions
p ac ice, and he p esen a ion o ma e ial he ein do no imply he exp ession o any opinion
wha soe e on he pa o he ILO conce ning he legal s a us o any coun y, a ea o e i o y
o o i s au ho i ies, o conce ning he delimi a ion o i s on ie s.
The esponsibili y o opinions exp essed in signed a icles, s udies and o he con ibu ions es s
solely wi h hei au ho s, and publica ion does no cons i u e an endo semen by he ILO o he
opinions exp essed in hem.
Re e ence o names o i ms and comme cial p oduc s and p ocesses does no imply hei en-
do semen by he ILO, and any ailu e o men ion a pa icula i m, comme cial p oduc o p o-
cess is no a sign o disapp o al.
In o ma ion on ILO publica ions and digi al p oduc s can be ound a : www.ilo.o g/ esea ch-
and-publica ions
ILO Wo king Pape s summa ize he esul s o ILO esea ch in p og ess, and seek o s imula e
discussion o a ange o issues ela ed o he wo ld o wo k. Commen s on his ILO Wo king Pape
a e welcome and can be sen o [email p o ec ed].
Au ho iza ion o publica ion: Philippe Ma caden
ILO Wo king Pape s can be ound a : www.ilo.o g/global/publica ions/wo king-pape s
Sugges ed ci a ion:
Se ano, M., Xha a, E. 2024. Indus ial ela ions in mic o and small en e p ises: pa e ns, ends
and p ospec s, ILO Wo king Pape 129 (Gene a, ILO). h ps://doi.o g/10.54394/XJHF2363
01 ILO Wo king Pape 129
Abs ac
This wo king pape o e s a global e iew o indus ial ela ions wi hin mic o and small en e -
p ises (MSEs), ocusing on he collec i e ep esen a ion o wo ke s and employe s, collec i e
ba gaining, and legal amewo ks. MSEs and he sel -employed accoun o 70 pe cen o glob-
al employmen , la gely in he in o mal economy, and ace challenges such as he limi ed each
o labou law and weak indus ial ela ions mechanisms. The pape highligh s he sca ci y o e-
sea ch on indus ial ela ions in MSEs and makes ecommenda ions o u he esea ch in his
a ea. I ou lines policy ecommenda ions o go e nmen s, employe s’ o ganiza ions, and ade
unions, emphasizing he need o inclusi e labou laws and s eng hened indus ial ela ions as
impo an pilla s o a conduci e en i onmen o sus ainable en e p ises. O e all, he wo king
pape unde sco es he impo ance o collabo a i e e o s and ailo ed suppo o s eng hen
he ole o indus ial ela ions in os e ing decen wo k in MSEs.
Abou he au ho s
Melisa R. Se ano is P o esso and Dean a he School o Labou and Indus ial Rela ions o he
Uni e si y o he Philippines. He cu en esea ch a eas include gende equali y in ade unions,
a ie ies o unionism o digi al pla o m wo ke s, collec i e ep esen a ion and ac ion o wo ke s
in in o mal employmen , and union ini ia i es on he Sus ainable De elopmen Goals and union
e i aliza ion. Melisa si s in he In e na ional S ee ing Commi ee o he Global Labou Uni e si y.
D . Edli a Xha a is he Execu i e Di ec o o he Global Labou Uni e si y Online Academy. She
also eaches a he Uni e si y o Kassel, Ge many. He eaching and esea ch a eas include in-
dus ial ela ions, wo ke s’ igh s, collec i e o ms o ep esen a ion and ac ion o wo ke s in in-
o mal employmen , labou and en i onmen , ans o ming public se ices and o he s.
02 ILO Wo king Pape 129
Abs ac 01
Abou he au ho s 01
Ac onyms 05
Execu i e Summa y 06
Indus ial ela ions in MSEs end o be unde de eloped 06
Indus ial ela ions in MSEs can be s eng hened h ough coo dina ed e o s o policymak-
e s and social pa ne s 07
Recommenda ions o go e nmen s 07
Recommenda ions o employe s’ o ganiza ions 08
Recommenda ions o ade unions 08
XP e ace 10
XIn oduc ion 11
Objec i es o his wo king pape 11
Me hodology 12
X1 MSEs: De ini ions, economic con ibu ions and job quali y 13
Key akeaways 13
Va ie y o de ini ions 13
Con ibu ion o MSEs o employmen and alue added 14
Job quali y and he nexus be ween MSEs and he in o mal economy 15
Job quali y and decen wo k de ici s in MSEs 15
The na u e o employmen ela ions in MSEs 17
X2 Regula o y amewo ks on indus ial ela ions in MSEs 20
Key akeaways 20
Legal amewo ks on eedom o associa ion in MSEs 20
Policy and egula o y amewo ks: Scope, en o cemen and compliance o labou s anda ds
in MSEs 21
X3 Collec i e ep esen a ion o wo ke s in MSEs: Pa e ns, de e minan s and
inno a ions 25
Key akeaways 25
Union ep esen a ion gap in MSEs: Key ac o s ha a ec collec i e ep esen a ions 25
Regula o y amewo ks o moni o ing he oice and collec i e ep esen a ion o wo ke s in MSEs 26
Table o con en s
03 ILO Wo king Pape 129
Responding o union ep esen a ion gap in MSEs: Fo ms o collec i e ep esen a ion and ac ion 28
X4 Collec i e ep esen a ion o employe s in MSEs: De e minan s, pa e ns
and inno a ions 31
Key akeaways 31
Associa ion o MSE employe s wi h EBMOs and employe s’ o ganiza ions: Is he e a gap? 31
S eng hening he ep esen a ion o MSE employe s: Main acili a ing ac o s 32
X5 Collec i e ba gaining and social dialogue in MSEs: T ends and impac s 35
Key akeaways 35
Making collec i e ba gaining mo e inclusi e o be e jobs and ep esen a ion in MSEs 36
Sec o al and mul i-employe ba gaining 37
Ex ension mechanisms 38
XConclusions, policy ecommenda ions and p oposed a eas o ac-
ion o social pa ne s 41
Policy ecommenda ions 41
Recommenda ions o go e nmen s: 41
Recommenda ions o employe s’ o ganiza ions 43
Recommenda ions o ade unions 43
Re e ences 45
Acknowledgemen s 53
04 ILO Wo king Pape 129
Lis o Boxes
Box 1. Examples o MSE de ini ions 13
Box 2: Chile: Ac on Subcon ac ing 23
Box 3: Philippines: Labou s anda ds en o cemen in mic oen e p ises 24
Box 4: Minimum wage and heal h and sa e y as o ganizing hemes in MSEs 28
Box 5: Union ep esen a ion o wo ke s in in o mal employmen 29
Box 6. Enhancing he oice o wo ke s h ough unioniza ion and sec o al ba gaining in Bulga ia 40
05 ILO Wo king Pape 129
Ac onyms
CFA Commi ee on F eedom o Associa ion
EBMO Employe and Business Membe ship O ganiza ion
EU Eu opean Union
GDP G oss domes ic p oduc
ILO In e na ional Labou O ganiza ion
LMC Labou -managemen council
MSE Mic o and small en e p ise
MSME Mic o and small and medium en e p ise
OSH Occupa ional sa e y and heal h
SME Small and medium en e p ise
12 ILO Wo king Pape 129
Me hodology
This wo king pape is based on a e iew o he a ailable li e a u e – jou nals and books by ec-
ognized academic and comme cial publishe s, o icial da abases o in e na ional o ganiza ions,
and g ey li e a u e, which is mos ly w i en in English. So a , he bulk o he esea ch unde ak-
en on indus ial ela ions in MSEs pe ains o he EU coun ies, while he amoun o li e a u e
w i en in English, F ench o Spanish om o he egions is qui e limi ed. The lack o esea ch on
indus ial ela ions in MSEs imposes conside able limi a ions on his s udy and highligh s he
need o u he esea ch.
The wo king pape is s uc u ed as ollows: Chap e 1 p o ides an o e iew o job quali y and
indus ial ela ions dynamics in MSEs, ollowed by a e iew o he e idence on egula o y ame-
wo ks on indus ial ela ions in MSEs in chap e 2. Chap e s 3 and 4 e iew e idence on he col-
lec i e ep esen a ion o wo ke s and o employe s in MSEs, espec i ely. This is ollowed by an
o e iew o key ends ega ding collec i e ba gaining and social dialogue in MSEs (chap e 5).
The wo king pape closes wi h ecommenda ions o policymake s as well as employe s and
wo ke s o ganiza ions.
13 ILO Wo king Pape 129
X1 MSEs: De ini ions, economic con ibu ions and job
quali y
Key akeaways
●MSEs cons i u e a highly he e ogeneous g oup in e ms o hei size, he ange o p oduc s
and se ices o e ed, and he le el o echnology adop ion.
●The e a e many di e en de ini ions o MSEs ac oss indus ies, coun ies and egions. In gen-
e al, de ini ions conside c i e ia such as he numbe o employees, o al o ne asse s and
annual sales u no e .
●MSEs make a subs an ial con ibu ion o job c ea ion. Toge he wi h he sel -employed, MSEs
wi h ewe han 50 employees accoun o mo e han 70 pe cen o o al employmen wo ld-
wide. Howe e , he majo i y o employmen is in he in o mal sec o .3
●The quali y o jobs and employmen condi ions in MSEs is ypically lowe han ha o la ge
en e p ises. This is due o se e al ac o s, including hei low le els o p oduc i i y (which is
pa ially dependen on he business en i onmen ); he limi ed each o labou and social p o-
ec ion laws; and in some ins ances, he special exemp ions om labou law and non-com-
pliance wi h labou egula ions.
Va ie y o de ini ions
The de ini ion o MSE a ies ac oss coun ies and egions.4 The c i e ia mos commonly used,
ei he sepa a ely o combined, a e he numbe o employees (in some cases di e en ia ed by
indus y), he annual sales u no e and he alue o o al asse s.
The mos common c i e ion used in de ining MSEs is he numbe o employees. MSEs a e ypi-
cally de ined as ha ing up o 49 employees (ILO 2015b). Fo ins ance, he ILO da abase on em-
ploymen and economic uni size5 dis inguish h ee di e en size classes: mic oen e p ises wi h
2 o 9 employees; small en e p ises wi h 10 o 49 employees; and medium-sized and la ge en-
e p ises wi h 50 o mo e employees6 (ILO, 2019a: 7).
XBox 1. Examples o MSE de ini ions
OECD’s de ini ion o MSEs
Fi m size class
Indica o Mic o Small
3See he ollowing epo o he de ini ion o MSEs used: Global e idence on he con ibu ion o employmen by he sel -employed,
mic o-en e p ises and SMEs. A ailable a : h ps://www.ilo.o g/global/publica ions/books/WCMS_723282/lang--en/index.h m
4Fo mo e in o ma ion on he de ini ion o MSEs in a ious coun ies, he MSME Economic Indica o s Da abase o he In e na ional
Finance Co po a ion colla es he o icial coun y-le el de ini ions o mo e han 176 coun ies.
5The da abase con aining s a is ics on employmen and economic uni size was cons uc ed using he da a se unde lying he hi d
edi ion o ILO, Women and Men in he In o mal Economy: A S a is ical Pic u e (ILO 2018a).
6
Because o he wide di e gence in how di e en coun ies epo employmen dis ibu ion, medium-sized and la ge en e p ises ha e
been g ouped in o a single ca ego y o en e p ises wi h 50 o mo e employees.
14 ILO Wo king Pape 129
Numbe o s a <10 10-49
India’s de ini ion o MSEs
Fi m size class
Indica o Mic o Small
To al asse s in Indian upee (INR) Se ices: <1,000,000
Manu ac u ing: <2,500,000
Se ices: 1,000,000-20,000,000
Manu ac u ing: 2,500,000-
50,000,000
Kenya’s de ini ion o MSEs
Fi m size class
Indica o Mic o Small
Numbe o s a 1-9 10-49
Pe u’s de ini ion o MSEs
Fi m size class
Indica o Mic o Small
Annual u no e in Pe u ian sol (PEN) <592,500 592,500-6,715,000
Sou ce: IFC, “MSME Economic Indica o s”, 2019; OECD, “En e p ises by Business Size”.
MSEs include all ypes o en e p ises, i espec i e o hei legal o m ( o example, amily en e -
p ises, sole p op ie o ships o coope a i es) and whe he hey a e o mal o in o mal en e p is-
es. Recognizing he a ie y o de ini ions ac oss coun ies, his wo king pape ocuses on he
analysis o indus ial ela ions and social dialogue p ac ices in MSEs, as hey a e de ined in he
speci ic coun y excep when p o iding global es ima es.7
Con ibu ion o MSEs o employmen and alue added
Based on he de ini ion o MSEs, i is clea ha hey cons i u e a highly he e ogenous g oup. As
such, i is impo an o ecognize ha he cha ac e is ics as well as needs o MSEs a y widely.
Fo ins ance, a mic oen e p ise ope a ing in he in o mal se ices sec o is di e en om a o -
mal, small manu ac u ing i m o a young, high g ow h-o ien ed s a -up ope a ing in he ech
indus y. While ecognizing he challenges o ying o analyse his he e ogenous g oup as a
whole, his sec ion a emp s o p o ide an o e iew o common cha ac e is ics o MSEs based
on a ailable li e a u e.
Toge he , MSEs accoun o he majo i y o en e p ises in mos de eloping coun ies – in some
cases mo e han 90 pe cen . MSEs make a subs an ial con ibu ion o job c ea ion and, oge h-
e wi h he sel employed, p o ide o e wo hi ds o all jobs wo ldwide (ILO 2019a). In low- and
middle-income coun ies, he combined sha e in o al employmen o he sel -employed and
wo ke s in MSEs is as high as 80 o 90 pe cen (ILO 2019a).
Global es ima es o he con ibu ion o MSEs o g oss domes ic p oduc (GDP) do no always
p o ide he ull pic u e, as hey o en do no ake in o conside a ion he con ibu ions o en e -
p ises ope a ing in he in o mal economy o mic oen e p ises bu ocus only on o mal en e -
p ises. Acco ding o he In e na ional Finance Co po a ion (IFC), o mal MSEs and medium-sized
7Global e idence on he con ibu ion o employmen by he sel -employed, mic o-en e p ises and SMEs. A ailable a : h ps://www.ilo.
o g/global/publica ions/books/WCMS_723282/lang--en/index.h m
15 ILO Wo king Pape 129
en e p ises con ibu e app oxima ely 50 pe cen o global GDP (IFC 2020). I bo h in o mal and
o mal en e p ises a e conside ed, MSEs and mediumsized en e p ises accoun o 60 o 70 pe
cen o GDP globally acco ding o he ILO (2015a).
The con ibu ion o di e en segmen s o MSEs o employmen and GDP di e conside ably. In
addi ion, a coun y’s income le el and he con ibu ion o MSEs o na ional employmen le els
and GDP a e ela ed. The combined employmen sha e o MSEs dec eases as a coun y’s income
le el ises, while simila ly he employmen sha e o he in o mal sec o dec eases as pe capi-
a income inc eases (ILO 2019a). In coun ies wi h a highe le el o GDP pe capi a, en e p ises
end o be la ge in size and con ibu e mo e o GDP.
While MSEs’ p oduc i i y le els di e based on hei size and he sec o in which hey ope a e,
MSEs a e on a e age less p oduc i e han la ge i ms (Ba elsman, Hal iwange and Sca pe a
2013; C ouche e al. 2013; ILO 2015b; Ma chese e al. 2019). In de eloping coun ies, he di -
e ences in p oduc i i y be ween en e p ises o di e en sizes a e u he widened by he la ge
sha e o in o mal MSEs, which ace dis inc p oduc i i y challenges. Fo example, a e compa ing
o mal and in o mal en e p ises in 24 A ican coun ies, La Po a and Shlei e (2014) ound ha
in o mal MSEs a e on a e age 120 pe cen less p oduc i e han o mal ones. Simila ly, wom-
en-led en e p ises a e ypically less p oduc i e as a esul o encoun e ing a mo e ad e se busi-
ness en i onmen in compa ison wi h en e p ises led by men (Islam e al. 2020), since hey yp-
ically ha e less access o suppo se ices such as hose in he a eas o inance, echnology and
aining, and a e u he cons ained by ac o s such as disc imina o y legal and p ope y igh s
and social no ms and cul u e (Ca anza, Dhakal and Lo e 2018; De Mel e al. 2009).
Mos MSEs ace signi ican challenges o hei g ow h and po en ial o alue addi ion. The spe-
ci ic challenges a y wi h he local con ex (ex e nal ac o s) and he cha ac e is ics o he MSE
(in e nal ac o s) and de e mine he en e p ises’ abili y o g ow and c ea e quali y jobs. In e ms
o ex e nal ac o s, MSEs end o ha e mo e limi ed access o inance,
8
in o ma ion, skilled labou
and ma ke s han la ge i ms (ILO 2015b; WTO 2016; Yoshino and Taghizadeh-Hesa y 2016).
Poo in as uc u e, co up ion and compe i ion wi h he in o mal ma ke a e ex e nal ac o s
ha o en ank as majo cons ain s o MSEs (ILO 2015b). Mo eo e , egula o y en i onmen s
( o example, axa ion, loan acili ies, business egis a ion) also end o be un a ou able o small
en e p ises. Many MSEs a e u he cons ained by in e nal ac o s such as limi ed manage ial
skills and capaci ies and an inadequa ely educa ed wo k o ce, which also limi s hei abili y o ab-
so b and make use o echnology (Bloom and Van Reenen 2006; Ma chese e al. 2019; ILO 2021c).
Job quali y and he nexus be ween MSEs and he in o mal
economy
Job quali y and decen wo k de ici s in MSEs
Despi e he subs an ial employmen con ibu ion o MSEs, he quali y o jobs and employmen
condi ions a e ypically poo e in MSEs han in la ge en e p ises (ILO 2021a; ILO 2015a; Se ano
e al. 2010; Xha a 2015). Howe e , his is a esea ch opic ha has no been s udied ex ensi ely
(ILO 2015b). As a esul , i is di icul o p o ide a nuanced pic u e o he employmen condi ions
8Acco ding o he IFC (2020), he unme demand o c edi o SMEs is es ima ed o be US$4.5 illion. Women-owned businesses, which
a e unde - ep esen ed a all le els o he inancial sys em, ace an es ima ed c edi gap o $1.4 o $1.7 illion and mus manage ad-
di ional gende - ela ed ba ie s when seeking o access capi al (IFC 2022).
16 ILO Wo king Pape 129
o wo ke s employed by MSEs ha cap u es he he e ogenei y o his g oup and he di e en
con ex s in which hey ope a e. None heless, whe e da a a e a ailable, “decen wo k de ici s a e
gene ally mo e signi ican in SMEs han hey a e in la ge es ablishmen s” (ILO 2015a, 2).
Employees in MSEs end o ea n lowe wages han employees in la ge en e p ises (De Kok,
V oonho and Ve hoe en 2011; ILO 2016b; ILO 2018b) and wo k longe hou s (Fenwick e al.
2007). In Eu ope, o example, he a e age g oss hou ly wage o wo ke s wi h bo h lowe and
highe occupa ional skills in small is lowe han ha o hei coun e pa s in la ge en e p ises
(250 o mo e wo ke s)9 (ILO 2016b, 72).
In addi ion, women wo ke s, who a e o e - ep esen ed in MSEs, may su e om bo h di ec and
indi ec disc imina ion (Fenwick e al. 2007). The wo king en i onmen is also ypically mo e haz-
a dous in small en e p ises han in la ge ones (ILO 2018b; EU-OSHA 2016). In EU, o example,
he e is e idence ha he occu ence o se ious inju ies and a ali ies is p opo ionally g ea e
in smalle i ms compa ed o la ge ones (EU-OSHA 2016).
Se e al ac o s con ibu e o he mo e p onounced de ici s in employmen and wo king con-
di ions in MSEs. Fi s , MSEs end o be cha ac e ized by lowe le els o p oduc i i y and limi ed
adminis a i e and inancial capaci ies, which a ec s he capaci y o comply wi h labou laws
and social secu i y legisla ion (ILO 2021a), leading hem o ope a e in he in o mal economy.
Mo eo e , he posi i e ela ionship be ween en e p ise size and wage le els, i.e., he “size wage
p emium”, may be explained by ac o s such as labou p oduc i i y, he a ailabili y o inancial
esou ces and i m owne ship (ILO 2016b; De Kok, V oonho and Ve hoe en 2011). Simila ly, he
poo e occupa ional sa e y and heal h (OSH) a angemen s and managemen in MSEs may be
explained by “ he weak economic posi ion o many MSEs and he low in es men hey a e able
o make in OSH in as uc u e; he limi ed knowledge, awa eness and compe ence o hei own-
e -manage s in ela ion o bo h OSH and i s egula o y equi emen s; limi ed capaci y o man-
age hei a ai s sys ema ically; and hei a i udes and p io i ies, gi en he limi ed esou ces a
hei disposal and hei conce ns o he economic su i al o hei business, in which OSH has
a low p o ile” (EU-OSHA, 2016, 10).
Decen wo k de ici s may also be associa ed wi h he limi ed applicabili y o labou laws o MSEs
in some coun ies, whe e MSEs a e ei he excluded om o e ec i ely beyond he each o la-
bou and social p o ec ion legisla ion (Fenwick e al. 2007; ILO 2021a; Reinecke and Whi e 2004;
Va gas 2020). Mo eo e , “in many cases S a es do li le o apply o o en o ce labou laws o MSEs
in p ac ice” (Fenwick e al., 2007, xi). Indeed, he highes le els o non-compliance wi h labou
laws a e ound in mic o and small en e p ises (ILO, 2013: 3). Acco ding o Fenwick e al. (2007, xi),
…in some cases, his is a esul o legal design issues: adminis a i e au ho i ies a e gi -
en oo much disc e ion and oo li le guidance in i s exe cise; in some cases, he a aila-
bili y o disc e ion lends i sel o co up ion. In o he cases, he labou adminis a ion is
simply unde - esou ced o o he wise unable o add ess he challenge o applying and
en o cing labou law o he e y many (and e y di e en ) MSEs wi hin hei ju isdic ion.
The p eca ious and a ied na u e o wo k in MSEs also means ha many wo ke s do no ha e
egula , ull- ime o “ ypical” wo k con ac s, and a e, as a esul , in isible in he eyes o law
(Fenwick e al. 2007). This si ua ion is e en mo e p onounced o wo ke s in MSEs ha ope a e
9In ac , 40 pe cen o wo ke s in he bo om wage decile wo k o i ms wi h less han 50 employees, while only 20 pe cen o hose
in he op 1 pe cen wo k in smalle i ms (ILO 2016b).
17 ILO Wo king Pape 129
in he in o mal economy. MSEs ope a ing in global supply chains may also be acing p essu e o
educe cos s by he main buye / e aile and he p incipal i m ha engages hem (Anne 2020;
ILO 2016a). Such p essu e becomes mo e p onounced in he lowe segmen s o supply chains,
in which compliance wi h labou laws is o en pe cei ed by many MSEs as “imposing unsus aina-
ble egula o y bu dens and cos s” (Fenwick e al. 2007, xi; see also ILO 2013; Webs e e al. 2008).
Recognizing he subs an ial con ibu ion o MSEs o job c ea ion, as well as he ac ha decen
wo k de ici s a e gene ally mo e signi ican in MSEs han hey a e in la ge en e p ises, he con-
clusions conce ning small and medium-sized en e p ises and decen and p oduc i e employ-
men c ea ion adop ed by he In e na ional Labou Con e ence in 2015 unde sco e he impo -
ance o an enabling en i onmen o o e come he cons ain s aced by MSEs and hei wo ke s
in c ea ing decen and p oduc i e employmen . The conclusions also emphasize he impo ance
o collec ing mo e da a on he quali y o employmen in smalle en e p ises.
The na u e o employmen ela ions in MSEs
While ini ial esea ch on employmen ela ions in MSEs may ha e ended o o e simpli y he
employmen ela ions in smalle en e p ises (see o example Schumache 1974), subsequen
esea ch has p o ided a mo e nuanced unde s anding o he si ua ion in MSEs. In ecen yea s,
employmen ela ions in MSEs ha e also been s udied as pa o he g owing li e a u e on hu-
man esou ce managemen o as pa o he li e a u e on managemen p ac ices in MSEs and
hei impac on en e p ise pe o mance.10
In many MSEs, employe s play a mo e isible and di ec ole a he wo kplace. They end o be
di ec ly in ol ed in he day- o-day ope a ions o he en e p ise and in making decisions ela ing
o wo king condi ions. The employe and wo ke s o en pe cei e hei employmen ela ions as
a pe sonal and di ec ela ionship (Eu o ound 2014; Ki on and Read 2007). Consequen ly, MSEs
a e less likely o ha e o mal human esou ce managemen s uc u es and p ac ices compa ed
wi h la ge en e p ises (ILO 2018c; Fos e and Fa 2016). In addi ion, employmen ela ions some-
imes ely on in o mali y and socially embedded ne wo ks, such as amily ies (Edwa ds and Ram
2019; Hol en and C ouch 2014; ILO 2011). As a esul , employe s ypically p e e in o mal, di ec
and indi idual ways o esol ing possible con lic s a he wo kplace (Edwa ds and Ram 2019;
Hol en and C ouch 2014; Moo e, Je e ys and Cou s-Salies 2007) as hese a e de ined as indi id-
ual a he han collec i e p oblems (Ki on and Read 2007).
The in o mal na u e o ela ionships be ween wo ke s and employe s in MSEs also shape em-
ploymen ela ions. Fo employe s, conside a ions o business iabili y play an impo an ole.
In a s udy by Nadin and Cassell (2007), employe s epo ed ha hey we e no being e y p e-
sc ip i e wi h employees ou o ea ha hey would lea e. The au ho s sugges ed ha ac o s
such as he close wo king en i onmen , he p e alence o in o mal managemen p ac ices and
esou ce cons ain s make MSEs di e om la ge en e p ises, as hose ac o s ha e an impac
on he unspoken obliga ions and expec a ions be ween employe s and wo ke s. Howe e , he
au ho s emphasized ha ha hese condi ions a e no de e minis ic and he e is scope o bo h
employe s and wo ke s o exe cise in luence. Simila ly, Ram and Edwa ds (2003, 721) sugges
ha wo ke s may use di e en esou ces o ac i ely ba gain wi h hei employe s as hey a e
no “passi e ecipien s o managemen con ol”.
10 See o example Bloom e al. (2013) and McKenzie and Wood u (2017).
18 ILO Wo king Pape 129
Goss (1991, 73–87) o e s ou ypes o employe con ol in small i ms based on wo dimensions–
he ex en o employe ’s economic dependence upon employees and he abili y o employees
o esis employe decisions, as ollows:
‘F a e nalism’. This s a egy e lec s a high le el o employe dependence on employees whose
skills a e bo h essen ial o he business and in sho supply. This is ypical in ce ain high- ech
o ‘p o essional’ small businesses, whe e di e ences be ween wo ke and boss a e no s a k
and he e a e high le els o employee disc e ion and us .
‘Pa e nalism’. This is common in he ag icul u al sec o whe e he e is a s iking di e ence
in he social s a us and ma e ial weal h be ween he (p ope y-owning) employe and he
wage wo ke s who a e hea ily dependen on he employe o jobs and o hei well-being
in a b oade sense ( o example, housing, small loans). Pa e nalism ies o secu e employee
iden i ica ion wi h he employe ’s goals h ough s ong pe sonal ela ions and mu ual du ies
ha ex end beyond he wage con ac .
‘Bene olen au oc acy’. Employe s’ con ol emphasizes he p oximi y o employe and employ-
ees bu only ega ding he employmen ela ionship and he wo kplace. In addi ion o he
pu ely economic, he employe ’s au oc a ic con ol is in used wi h some ‘social’ o pe sonal
elemen s – ha is, “ ea ing employees consciously as indi iduals, encou aging he use o i s
names, sha ing o con e sa ions and jokes” (Goss, p. 82). In his ype o con ol, wo ke s ac-
cep he imbalance o powe be ween hem and he employe as a ac o wo king li e, and
hus challenging he employe ’s au ho i y is no an op ion.
‘Swea ing’: He e, cos a he han s abili y is he p incipal ac o in he employmen ela ion-
ship. Employe s ha e minimal dependence on wo ke s who can be ec ui ed and eplaced
eadily wi hou dis up ing business ac i i ies. Employee esis ance o con ol is hus di icul .
This ype o employe con ol is common in businesses wi h ma ginal ma ke niches whe e
demand is unp edic able. A weak and ulne able wo k o ce is an essen ial p econdi ion o
success ul swea ing.
Goss’s ypology, al hough by no means exhaus i e, illus a es “ he complexi y and di e si y o
employmen ela ions” in MSEs and challenges he simple unde s anding ha employmen e-
la ions a e “necessa ily and essen ially ha monious” in hese en e p ises (Goss 1991, 86). The
ype o employe con ol is in luenced by ac o s, such as size, indus y cha ac e is ics, echnol-
ogy u iliza ion, ype o p oduc s and se ices o e ed, he skills p o ile o wo ke s, he business
model and he cha ac e is ics o he business en i onmen .
Ba e and Rainnie (2002) c i icized he s udies o Goss and o he s ha ocus on employmen
ela ions in MSEs as s ill homogenizing hese businesses. This c i ique was also aised ea lie by
Wilkinson (1999), who sugges ed ha u he esea ch should be unde aken o de e mine wha
ac o s in luence employmen ela ions, such as labou ma ke in luences, dependency, owne -
ship, indus ial subcul u e, echnology and so on.
In New Zealand, while he o e all inding o a su ey in ol ing 332 MSEs and medium-sized en-
e p ises ac oss sec o s indica es ha employe s demons a e some willingness o engage in
o ms o pa icipa ion, “ he majo i y o employe s ei he consul bu make he inal decision o
jus in o m employees o managemen decisions, sugges ing ha manage ial p e oga i e s ill
p e ails” (Fos e and Fa 2016, 55). The su ey also unde sco ed ha indi idual pa icipa ion in
19 ILO Wo king Pape 129
de e mining he o mal and in o mal ules and p ocesses ha egula e he employmen ela-
ions appea s o be mo e ele an in MSEs and medium-sized en e p ises (Fos e and Fa 2016).
The au ho s u he ound ha employe s p e e o deal di ec ly wi h employees (84.3 pe cen )
a he han wi h unions (0.6 pe cen ). Such p e e ences we e mo e p onounced in mic oen e -
p ises11 (Fos e and Fa 2016). In an ea lie s udy, Ki on and Read (2007) poin o in o mal and
indi idualized employmen ela ions among he ba ie s o unioniza ion in MSEs.
In Chile, labou ela ions in MSEs display simila i ies wi h he kinship ela ionships ha exis wi h-
in a amily (ILO 2011). Meanwhile, mos o he employe s in hese en e p ises ollow a sel -man-
agemen , pa e nalis ic model, wi hou much emphasis on he mo i a ion and commi men o
wo ke s (ILO 2011).
Fo EU coun ies, Eu o ound (2014) unde sco es ha “ a e nalism” mo e accu a ely cha ac e -
izes employmen ela ions among MSEs ha ollow a “high oad” business model. This model,
acco ding o Kochan (2006), ocuses on good jobs and good wages ( ha is, abo e a e age pay),
aining and de elopmen oppo uni ies o wo ke s, employee disc e ion and au onomy, and a
suppo i e en i onmen in which employees may success ully balance wo k, amily and pe son-
al esponsibili ies. Eu o ound (2014) iden i ies en MSEs ac oss i e EU coun ies ha ollow he
high- oad business model12 and concludes ha “ he e is an expec a ion ha employees should
be ac i ely in ol ed and consul ed on measu es o imp o e se ices and p oduc s” (Eu o ound
2014, 55). This is illus a ed h ough a high deg ee o au onomous wo k, delega ion o asks and
esponsibili ies, and sel -managemen . The s udy unde sco es ha employees a e a key ac o
o compe i i eness: “owne s and manage s a e commi ed o he idea ha good wo king condi-
ions, including pay le els ha a leas ma ch he sec o s anda d, ha make a ‘mo i a ing wo k
en i onmen ’ and esul in loyal and engaged employees, con ibu e signi ican ly o he high
quali y o p oduc s and se ices” (Eu o ound 2014, 56).
11 A highe sha e o employe s o mic oen e p ises (< 9 employees) (34.6 pe cen ) epo ed his p e e ence, compa ed o employe s
o small (10–19 employees) and medium-sized (20–49 employees) en e p ises a 21 pe cen each (Fos e and Fa 2016, 44).
12 Bulga ia, Denma k, Ge many, I aly and Spain.
20 ILO Wo king Pape 129
X2 Regula o y amewo ks on indus ial ela ions in
MSEs
Key akeaways
●Regula o y measu es a ec ing MSEs do no end o ocus on labou issues and indus ial e-
la ions.
●A numbe o labou law egimes ei he exclude en e p ises o a ce ain size om he appli-
ca ion o labou law o apply a di e en se o labou egula ions.
●Recognizing he c i ical ole o decen wo king condi ions and sound indus ial ela ions, go -
e nmen s in some coun ies ha e in oduced policy and egula o y ini ia i es ha ex end p o-
ec ion and ep esen a ion o all wo ke s, including hose employed in MSEs.
●Ex ending he applica ion o labou laws and social p o ec ion o MSEs and pu ing in place
inno a i e ways o imp o ing compliance by MSEs s eng hen he p o ec ion and oice o
MSE wo ke s.
Legal amewo ks on eedom o associa ion in MSEs
The igh o eedom o associa ion is essen ial o wo ke s and employe s o de end hei igh s
and a icula e hei in e es s. The F eedom o Associa ion and P o ec ion o he Righ o O ganise
Con en ion, 1948 (No. 87) s a es in A icle 2 ha :
Wo ke s and employe s, wi hou dis inc ion wha soe e , shall ha e he igh o es ab-
lish and, subjec only o he ules o he o ganisa ion conce ned, o join o ganisa ions
o hei own choosing wi hou p e ious au ho iza ion.
While he igh o eedom o associa ion is a undamen al igh , legisla ion equen ly es ablish-
es minimum membe ship equi emen s o he o mal es ablishmen o employe s’ o wo ke s’
o ganiza ions. Such equi emen s a e compa ible wi h he p inciples o eedom o associa ion i
he speci ied minimum is ealis ically a ainable in all he ele an ci cums ances. Howe e , min-
imum membe ship equi emen s mus no ac as a de e en o he es ablishmen o o ganiza-
ions in p ac ice. Fo example, he Commi ee on F eedom o Associa ion (CFA) has ound ha a
minimum equi emen o 20 membe s o es ablish a ade union (30 o a sec o al ade union)
is compa ible wi h he p inciples o eedom o associa ion. The CFA has also ound ha a min-
imum membe ship equi emen o en employe s in he same o ela ed ac i i ies o es ablish
an employe s’ o ganiza ion is oo high and iola es he igh o employe s o es ablish o ganiza-
ions o hei own choosing.13 The CFA has indica ed ha :
While a minimum membe ship equi emen is no in i sel incompa ible wi h Con en ion
No. 87, he numbe should be ixed in a easonable manne so ha he es ablishmen
13 Fo coun y-le el decisions, see ILO, F eedom o Associa ion: Compila ion o Decisions o he Commi ee on F eedom o Associa ion,
six h edi ion, 2018, pa as 435–447.
21 ILO Wo king Pape 129
o o ganiza ions is no hinde ed. Wha cons i u es a easonable numbe may a y ac-
co ding o he pa icula condi ions in which a es ic ion is imposed.14
A minimum numbe o wo ke s o o m a ade union, while no being incompa ible wi h
Con en ion No. 87, may limi he abili y o wo ke s o o ganize in sys ems domina ed by small
en e p ises. In his ega d, he igh o wo ke s o es ablish o join o ganiza ions “o hei own
choosing”, as he eedom o associa ion is de ined in Con en ion No. 87, includes he possibili y
o wo ke s o di ec ly join en e p ise, indus y, occupa ion o ade-based o ganiza ions, e en
simul aneously.15
The impac o excluding wo ke s om he igh o o ganize o om es ablishing a ade union
o hei choice is mul idimensional. Fi s , he legal equi emen s ela ing o he egis a ion o a
ade union a e impo an ac o s ha signi ican ly impac he le el o ade union membe ship.
Mo eo e , he applica ion o h esholds p e en s a la ge numbe o wo ke s om es ablishing
ade unions and ba gaining collec i ely. In u n, hese wo ke s a e denied ce ain employmen
igh s ha a e con ingen on ade union ecogni ion ( o example, he igh o ime o o ade
union du ies, he igh o disclosu e o in o ma ion o collec i e ba gaining and he igh o in-
o ma ion and consul a ion abou heal h and sa e y ma e s).
Recognizing he c i ical ole o decen wo king condi ions and sound indus ial ela ions, go -
e nmen s in some coun ies ha e in oduced policy and egula o y ini ia i es ha ex end p o-
ec ion and ep esen a ion o all wo ke s, including hose employed in MSEs. This is done o
example by speci ically g an ing wo ke s and economic uni s in he in o mal economy he igh
o o ganize in employe s’ and wo ke s’ o ganiza ions.
Policy and egula o y amewo ks: Scope, en o cemen and
compliance o labou s anda ds in MSEs
The conclusions conce ning small and medium-sized en e p ises and decen and p oduc i e em
-
ploymen adop ed by he In e na ional Labou Con e ence in 2015, e e o he ollowing p o i-
sion con ained in A icle 2(1) o he Labou Inspec ion Con en ion, 1947 (No. 81) o unde sco e
he ole o go e nmen in ensu ing he en o cemen o labou s anda ds in SMEs:
The sys em o labou inspec ion in indus ial wo kplaces shall apply o all wo kplaces
in espec o which legal p o isions ela ing o condi ions o wo k and he p o ec ion o
wo ke s while engaged in hei wo k a e en o ceable by labou inspec o s.
S udying he applica ion o labou and labou - ela ed laws in MSEs in 14 coun ies,16 Fenwick e
al. (2007) ind ha only in ew coun ies a e small en e p ises co e ed by he en i e body o la-
bou law. Co e age anged om ull applica ion o labou laws o he comple e exclusion o MSEs,
and mos coun ies excluded mic oen e p ises om a leas some elemen s o hei labou law.
The ILO (2018b) sugges s ha he a ionale behind he exclusion o MSEs om pa icula p o i-
sions o labou law ela es p ima ily o he cos s associa ed wi h labou law compliance, such as
consul a ion s uc u es and he abili y o MSEs o bea such cos s. Howe e , he ILO s udy also
concludes ha no applying labou law o smalle i ms may lea e hei wo ke s “wi h li le o no
14 ILO, F eedom o Associa ion: Compila ion o Decisions o he Commi ee on F eedom o Associa ion, pa a. 441.
15 Fo coun y-le el decisions, see ILO, F eedom o Associa ion: Compila ion o Decisions o he Commi ee on F eedom o Associa ion,
pa as 546–550.
16 B azil, Chile, China, Denma k, Hunga y, Indonesia, Kenya, Namibia, Nepal, Pe u, he Philippines, Sou h A ica, Thailand and Vie Nam.
28 ILO Wo king Pape 129
co e age and he widesp ead use o ipa i e social dialogue (Hol en and C ouch 2014, 276). Fo
example, despi e a h eshold o i e membe s o union o ma ion, he union densi y in Denma k,
including in MSEs, is ela i ely high.23 This also unde sco es he impo ance o egional and na-
ional legal amewo ks on employee ep esen a ion and in o ma ion and consul a ion o ex-
ending collec i e ep esen a ion o MSEs. The indus ial ela ions sys ems o coun ies such as
Denma k, howe e , a e an excep ion. In mos coun ies, he e is a signi ican union ep esen a-
ion gap o MSE wo ke s.
Finally, he egula o y amewo k may deny ull access o wo ke s’ igh s o some g oups o
wo ke s due o he na u e o hei employmen . Fo example, wo ke s wi h con ac s sho e
han six mon hs in Vie Nam canno join a union; sel -employed wo ke s in Poland a e excluded
om he igh o join a union; and ou sou ced o subcon ac ed wo ke s in Indonesia a e no
allowed o join unions o egula wo ke s (TUCA and ITUC 2015).
Responding o union ep esen a ion gap in MSEs: Fo ms o
collec i e ep esen a ion and ac ion
As discussed in he sec ion abo e, wo ke s seeking o o ganize in MSEs ace a challenging con-
ex in many coun ies. In addi ion, ade unions ace hei own challenges in o ganizing wo k-
e s in MSEs (Ki on and Read 2007; Se ano and Xha a 2010; Xha a 2007). Mo e han hal o he
wo ke s in e iewed in a su ey conduc ed by Webs e e al. (2008) epo ed ha hey had ne -
e hea d o a union in hei sec o while mo e han wo hi ds epo ed ha he e had been no
a emp o o ganize wo ke s in hei en e p ise.
None heless, in he con ex o declining union membe ship and as pa o hei enewal s a -
egies ha emb ace a mo e inclusi e ep esen a ion, many ade unions ha e eached ou o
non-s anda d wo ke s in he o mal sec o as well as wo ke s in he in o mal sec o , whe e he
majo i y o MSE wo ke s a e ound in many coun ies (ILO 2019a).
A s udy by Se ano e al. (2010), which in ol es a small su ey o wo ke s in MSEs in 11 coun-
ies,24 iden i ied se e al c i ical o ganizing hemes ha could se e as en y poin s o collec i e
ep esen a ion and o enhancing he willingness o wo ke s in mic o and small en e p ises o
o ganize o join a union. These include minimum wages, wo k and income s abili y, social p o-
ec ion, skills aining and upg ading, and sa e y a wo k.
XBox 4: Minimum wage and heal h and sa e y as o ganizing hemes in MSEs
In he Republic o Ko ea, a e he economic c isis o 1997, some unions a emp ed o o -
ganize wo ke s in SMEs by combining hei o ganizing s a egy wi h minimum wage issues
(Yun 2014). Speci ically, he Ko ean Con ede a ion o T ade Unions (KCTU) o ganized and
empowe ed con ac cleane s, who a e employed mainly in MSEs, by launching a minimum
wage campaign ha also a ge ed non-s anda d wo ke s o SMEs in indus ial complexes
ha a e o en loca ed a he lowe end o a p oduc ion chain.
23 In Denma k, SMEs a e ela i ely la ge and employ 5.1 people on a e age, indica ing ha such a h eshold would ha e less impac on
he abili y o mos wo ke s o o m a union; see Eu opean Commission, “SBA Fac Shee — Denma k”, 2019.
24 Albania, Ba bados, B azil, Colombia, India, Japan, Nige ia, Philippines, Republic o Ko ea, Tu key, Uk aine.
29 ILO Wo king Pape 129
Heal h and sa e y a e inc easingly being pe cei ed as mo e p ominen wo kplace issues
and as a basis o membe ship ec ui men . T ade unions in a numbe o EU coun ies
(Denma k, F ance, G eece, I aly, Spain, Sweden and he Uni ed Kingdom) a emp ed a num-
be o s a egies o achie e g ea e ep esen a ion and pa icipa ion o wo ke s in OSH
a eas in small en e p ises, including by ob aining s a u o y igh s o ep esen wo ke s in
small en e p ises h ough egional o e i o ial OSH ep esen a i es; adop ing schemes
in which sec o al join o ipa i e s uc u es a e se up o suppo wo ke s and hei em-
ploye s in small en e p ises; and ei he olun a ily o s a u o ily collabo a ing wi h he la-
bou inspec o a e/OSH au ho i ies (Wal e s 2004).
Based on he esul s o en case s udies ha looked in o how ade unions add ess he p o ec ion
and ep esen a ion gap o selec ed g oups o wo ke s in in o mal employmen in nine coun ies,
Se ano and Xha a (2016) ound ha ade unions ha e used a combina ion o s a egies o b ing
wo ke s in p eca ious in o mal employmen , including wo ke s employed by MSEs, in o exis ing
and/o new egula o y amewo ks, hus p o iding hem wi h mo e “p o ec ed employmen ”.
T ade unions ha o ganize nons anda d wo ke s ocused on wo kplace issues ( ha is, he im-
p o emen o he e ms o employmen and wo king condi ions o wo ke s), while unions ha
o ganize wo ke s in he in o mal sec o co e b oade issues ha may include social p o ec ion,
access o quali y public se ices, and ep esen a ion in ci y/municipali y planning. The au ho s
highligh ed he “posi i e ansi ioning e ec ” o ade unions — namely, “ he capaci y o unions
o acco d mo e ‘p o ec ed employmen ’ o wo ke s in p eca ious in o mal employmen and o
con ain he expansion o his ype o employmen ” (Se ano and Xha a 2016, 39). This posi i e
ansi ioning e ec is in luenced by se e al ac o s: he legal amewo k, economic and social
p o ec ion measu es beyond he labou law, he ade union’s o ganiza ion s uc u es and p o-
cesses, and he ade union’s s a egies and measu es.
XBox 5: Union ep esen a ion o wo ke s in in o mal employmen
In Benin, he Con ede a ion o Au onomous T ade Unions o Benin and he Na ional Union
o Wo ke s’ Unions o Benin engaged wi h small in o mal c a businesses (hai d esse s,
ailo s, wea e s, ade s and d y cleane s). Aside om expanding access o union mem-
be ship, in o ma ion and aining campaigns on OSH issues we e p o ided o in o mal
wo ke s in hese en e p ises. Hai d esse s, ailo s and ca e e s we e also o ganized in o
coope a i es o imp o e hei wo king and li ing condi ions, as well as o explo e op ions
o en e p ise g ow h and p oduc i i y (ILO 2019c).
In Chile, he Na ional Con ede a ion o Tex ile Wo ke s (CONTEXTIL) included home-based
ex ile wo ke s in addi ion o adi ional ex ile wo ke unions in manu ac u ing compa-
nies. CONTEXTIL suppo s adi ional wo ke s in SMEs o implemen en i lemen s in he
a ea o heal h insu ance and pensions, collec i e ba gaining and he igh o s ike. In ad-
di ion, CONTEXTIL also suppo s homebased wo ke s who wo k alone o in g oups o
one o mo e clien companies. These lexible o ms o union o ganiza ion ha e expanded
CONTEXTIL’s scope o ep esen a ion o include hose in he in o mal economy (ILO 2019c).
The Gene al Fede a ion o Nepalese T ade Unions, in collabo a ion wi h he NGO Public
Heal h Conce ned T us , s a ed a heal h coope a i e clinic in 2000 as a esul o he un-
a o dabili y o heal h ca e o mos o he union’s wo ke -membe s in he in o mal sec-
o (F ye 2005).
30 ILO Wo king Pape 129
The collec i e ep esen a ion o wo ke s in in o mal employmen akes a wide a ie y o o ms,
such as wo ke s’ associa ions, ade unions, membe ship-based communi y o ganiza ions, wo ke
coope a i es, wo ke cen es and o he s (Xha a and Se ano o hcoming). These o ganiza ions
may be s and-alone o ms o ep esen a ion, such as en e p ise- o communi y-based unions,
wo ke coope a i es o wo ke associa ions, o o ms o ep esen a ion a ilia ed o highe -le -
el o ganiza ions a na ional and in e na ional le el (mainly ade unions). Wo ke associa ions
appea o be he mos common o m o collec i e ep esen a ion among wo ke s in MSEs ha
belong o he in o mal sec o . O en, he o ganiza ion o hese wo ke s is suppo ed o ini ia ed
by labou -suppo NGOs. Fo example, in India, he NGO Labou Educa ion Resea ch Ne wo k
(LEARN) suppo ed he Mahila Kaamga Sangha hana in o ganizing home-based wo ke s, in o -
mal ga men ac o y wo ke s, domes ic wo ke s, was e picke s and s ee endo s. The wom-
en’s o ganiza ion CECAM in Chile suppo ed he es ablishmen o a union o he home-based
women wo ke s p ocessing seaweed. NGOs may also play an impo an ole in he case o mi-
g an wo ke s (Xha a and Se ano o hcoming). In coun ies wi h a signi ican in o mal sec o ,
wo ke s’ o ganiza ions a e o en no occupa ionspeci ic bu ins ead ep esen a ious g oups o
wo ke s in in o mal employmen (Xha a and Se ano o hcoming). In Nige ia, he membe ship
o he Na ional Fede a ion o In o mal Economy O ganiza ions is composed o in o mal wo k-
e s in anspo , cons uc ion, ade, secu i y, ga men , ca e ing, and mechanics and allied sec-
o s. In India, he membe ship o he Sel -Employed Women’s Associa ion is composed o home-
based wo ke s, in o mal ga men ac o y wo ke s, domes ic wo ke s, was e picke s and s ee
endo s. In Gua emala, La Con ede acion de Union Sindical ep esen s cycle axis, axi d i e s,
ade s, ma ke endo s and middlemen. In he Philippines, he Na ional Ne wo k o In o mal
Ne wo ks in he Philippines includes home-based wo ke s (own-accoun and subcon ac ed),
endo s, cons uc ion wo ke s and anspo wo ke s. These o ms o ep esen a ion ga he -
ing a ious ca ego ies o wo ke s may be a way o hese g oups o wo ke s o gain ba gaining
powe by consolida ing hei numbe s.
The examples o ini ia i es aken by wo ke s in in o mal employmen o o ganize, which a e ei he
ini ia ed o suppo ed by ade unions, in ol e going beyond adi ional associa ional p ac ices
and s a egies. T ade unions ha di ec ly o ganize o suppo he o ganiza ion o ce ain g oups
o in o mal sec o wo ke s a e mo e likely o ollow he epe oi e o ac ion o g ass- oo s-o ien -
ed and communi ybased peoples’ o ganiza ions ( o example, h ough he combina ion o cam-
paigns, poli ical ac ion, igils, allies, demons a ions, pe i ion d i es, s a emen s o and in public
media and he dis ibu ion o pamphle s). Thei o ganizing s a egies and o ms o collec i e ac-
ion a e simila o hose used by in o mal sec o wo ke s in o ganizing hemsel es o by NGOs
ha ini ia e o suppo he o ganizing o hese wo ke s. Inc easingly unions a e also using new
echnology such as sma phones and social media as ools o o ganizing (ILO, 2019c; ILO 2022a).
31 ILO Wo king Pape 129
X4 Collec i e ep esen a ion o employe s in MSEs:
De e minan s, pa e ns and inno a ions
Key akeaways
●MSEs a e less likely o be a membe o an EBMO han hei la ge coun e pa s.
●Se ices o e ed, membe ship ees, ma ke condi ions, na ional legal amewo ks on indus-
ial ela ions, and union p essu e in luence MSE employe s o associa e o join EBMOs. The
s a egies o employe s’ associa ions o a ac MSE employe s as well as na ional egula o y
and policy amewo ks also play a ole.
●Many EBMOs ha e ex ended in e es ep esen a ion o SMEs and ha e inc easingly included
collec i e ba gaining among hei unc ions.
●Mic oen e p ises a e gene ally no likely o be a membe o an EBMO. Simila ly, MSEs in he
in o mal sec o a e a ely membe s o employe s’ o ganiza ions.
Associa ion o MSE employe s wi h EBMOs and employe s’
o ganiza ions: Is he e a gap?
Al hough he e is e y li le da a on he membe ship o MSEs in EBMOs, a ailable e idence inds
ha MSEs a e less likely o be a membe o an EBMO han hei la ge coun e pa s (OECD 2017b;
Eu o ound and Cede op 2020). The e a e o cou se excep ions, such as in Po ugal whe e em-
ploye s’ associa ions o ganize mos ly SMEs (Hay e and Visse 2018).
Limi ed esou ces end o impede he abili y o MSEs o join EBMOs (ILO 2018c). Acco ding o
he IOE (2015), esou ce-s apped SMEs may choose o empo a ily join an EBMO o esol e a
pa icula issue and hen lea e again once he necessa y assis ance has been ecei ed. While
he u no e may cons i u e a cos o he employe s’ o ganiza ion, he IOE highligh s he im-
po ance o ep esen a i i y and sugges s ha in es ing in he ec ui men and e ainmen o
SMEs is wo hwhile.
In mos OECD coun ies, EBMOs a e mo e ep esen a i e o la ge i ms. Da a ga he ed in 2013
e eals ha he incidence o membe ship o small i ms ( hose wi h less han 50 employees) in
EBMOs was abou 37 pe cen and ha o medium-sized i ms ( hose wi h 50 o 249 employ-
ees) was also abou 37 pe cen (OECD, 2017b: 136). Acco ding o he 2019 Eu opean Company
Su ey (ECS), a simila pa e n can be obse ed o Eu ope: whe eas 53 pe cen o la ge es ab-
lishmen s a e membe s o an EBMO, he p opo ion is lowe o medium-sized (34 pe cen ) and
small (27 pe cen ) en e p ises (Eu o ound and Cede op 2020, 113). The deg ee o in o mali y in
he economy also has an impac on he le el o a ilia ion o MSEs wi h EBMOs, which ypically
a ilia e wi h and ep esen o mal en e p ises. The su ey also ound ha in hose coun ies in
which o icial s uc u es o employee ep esen a ion a e mo e p e alen , en e p ises a e also
conside ably mo e likely o be a membe o an EBMOs.
The ILO’s ecen lagship publica ion Social Dialogue Repo 2022: Collec i e Ba gaining o an
Inclusi e, Sus ainable, and Resilien Reco e y con i ms ha membe ship in EBMOs has emained
32 ILO Wo king Pape 129
ela i ely s able in ecen yea s among 25 coun ies
25
o which da a a e a ailable. Thei o ganiza-
ion densi y anges om 15.1 pe cen o en e p ises in he Republic o Ko ea o 100 pe cen in
Aus ia, whe e a ilia ion is manda o y (ILO 2022a, 19). The ILO also epo s ha jus unde hal
(46 pe cen ) o peak in e p o essional EBMOs26 ha e been in ol ed di ec ly in collec i e ba gain-
ing a he in e p o essional le el in he pas i e yea s (ILO 2022a, 19). EBMO densi y27, on a e -
age in he 26 OECD coun ies o which da a is a ailable, is 51 pe cen (OECD 2017b, 135). EBMO
densi y a ies conside ably ac oss OECD and EU accession coun ies: i is e y low in Cen al and
Eas e n Eu opean coun ies, he Republic o Ko ea and Tu key, bu eaches as high as 80 pe
cen in he Ne he lands, Sweden, Belgium, and Luxembou g (OECD 2017). EBMOs end o ep-
esen a highe p opo ion o en e p ises in manu ac u ing and cons uc ion han in se ices.
Many EBMOs ha e also inc easingly included collec i e ba gaining among hei unc ions ILO
(2022a). An ILO su ey28 conduc ed in Ap il and May 2021 unde sco es hei impo an ole in
o ganizing in e es ep esen a ion and collec i e ba gaining and i s ou comes. EBMOs also pe -
o m he ollowing oles and unc ions in ela ion o collec i e ba gaining: (a) o e ing se ices
such as p o iding in o ma ion on wage and p oduc i i y de elopmen s (76 pe cen o espond-
en s); (b) engaging in policy and egula o y deba es on collec i e ba gaining (69 pe cen ); (c)
p o iding legal ad ice on egula ions and p ocedu es (57 pe cen ); and (d) o ganizing aining
on opics such as nego ia ion skills (54 pe cen ) (ILO 2022a, 19). The su ey also iden i ied he
ba ie s and di icul ies ha EBMOs ace in collec i e ba gaining, including he p ocess i sel and
he machine y es ablished o ba gaining.
S eng hening he ep esen a ion o MSE employe s: Main
acili a ing ac o s
The e a e se e al ac o s ha may in luence he employe s o MSEs o associa e wi h o join
EBMOs. These include employe s’ associa ions’ s a egies o a ac MSE employe s, as well as
wha may be conside ed ex e nal ac o s, such as challenging ma ke condi ions o p essu e
om wo ke s o ganizing collec i ely. Na ional egula o y and policy amewo ks, which c ea e
an enabling en i onmen o a sec o al “cul u e” o indus ial ela ions and social dialogue, also
play a ole and will be discussed in sec ion 5 below.
Including he in e es ep esen a ion o MSEs in exis ing EBMOs may se e as an impo an a-
cili a ing ac o . Fo example, he Ghana Employe s’ Associa ion (GEA) expanded i s ep esen a-
ion o smalle en e p ises and in o mal businesses by es ablishing a ca ego y o membe ship
o hese en e p ises and assigning a sea in i s go e ning council o he Council o Indigenous
Businesses Associa ions (CIBA), an umb ella body o 15 business associa ions o in o mal en e-
p eneu s, comp ising hai d esse s, d essmake s, ga age ope a o s, indigenous ca e e s, e ig-
e a ion echnicians and masons, among o he s. The GEA wo ks wi h he leade s o CIBA, policy-
make s and he ILO in acili a ing he ansi ion o in o mal businesses o o mali y in line wi h
Ghana’s na ional in o mal economy oad map o ansi ion (GEA websi e; ILO 2020a).
25 These coun ies a e he ollowing: Aus alia, Sweden, Ne he lands, Belgium, Luxembou g, F ance, Spain, No way, Finland, Czechia,
Po ugal, I aly, Denma k, I eland, Ge many, G eece, Slo enia, Slo akia, Uni ed Kingdom, Es onia, Poland, Republic o Ko ea, La ia,
Is ael, and Hunga y.
26 Peak in e p o essional EBMOs a e na ional-le el EBMOs ha ha e a ilia ed membe associa ions ac oss sec o s and subna ional
e i o ial o ganiza ions.
27 De ined as he sha e o employees in he p i a e sec o wo king in i ms ha a e a ilia ed wi h an employe s’ o ganiza ion.
28 The su ey co e ed 70 EBMOs in 70 coun ies.
33 ILO Wo king Pape 129
In e es ep esen a ion emains an impo an ac o o MSEs and hey may also decide o se
up hei own ep esen a ion o ganiza ions. In some coun ies, specialized EBMOs exclusi ely
o MSEs ha e been es ablished (ILO 2022). In F ance, he Con ede a ion o Small and Medium
En e p ises (CPME) is he employe s’ o ganiza ion o SMEs o he indus y, se ices, comme ce,
c a s and libe al p o essions. In 2018, he CPME claimed membe ship o 150,000 SMEs om 200
ede a ions and 117 e i o ial o ganiza ions. As one o he na ional ep esen a i e in e -p o es-
sional o ganiza ions o employe s in F ance, he CPME si s in he High Council o Social Dialogue.
I ep esen s SMEs in join nego ia ions and wi h public au ho i ies in F ance and in e na ionally.
Th ough i s o ice in B ussels, he CPME mobilizes o make i sel hea d in he Eu opean Union.29
The CPME also pa icipa es in na ional nego ia ions.
In Spain, he Spanish Con ede a ion o Small and Medium En e p ises (CEPYME) is a na ional
and in e sec o al business o ganiza ion ha ep esen s and p omo es he in e es s o SMEs
and he sel employed. The CEPYME is ecognized as he mos ep esen a i e business o gan-
iza ion a he s a e le el and engages in ipa i e and bipa i e social dialogue. In 2021, along
wi h he Gene al Wo ke s’ Union, he Wo ke s’ Commissions and he Con ede ación Española de
O ganizaciones Emp esa iales, he CEPYME signed a numbe o ipa i e social acco ds (Spain
2022). I also pa icipa ed in a se ies o mee ings and dialogue be ween he go e nmen and he
social pa ne s on he labou e o m ha culmina ed in a ipa i e ag eemen on 23 Decembe
2021 (Spain 2022, 231).
Simila cases may also be obse ed in se e al La in Ame ican coun ies. Fo example, he Associa ion
o SME Chambe s o Pe u was ounded a he ini ia i e o he Con ede a ion o P i a e Business
Ins i u ions o Pe u (CONFIEP), he mos ep esen a i e employe s’ o ganiza ion. This en i y also
c ea ed wi hin i s s uc u e a small business commi ee, whose p esiden is he same as ha o
he Associa ion (CONFIEP 2023).
Simila ly, EBMOs p o iding se ices o enhance he compliance o MSEs wi h labou laws may
be ano he acili a ing ac o . In he Philippines, he Employe s Con ede a ion o he Philippines
(ECOP) emba ked on a p ojec en i led “Expanding he Reach o he Labou Laws Compliance
Sys em by Capaci a ing Business Membe ship O ganiza ion (BMOs) and ECOP Chap e s” om
2016 o 2018. The p ojec aimed a de eloping ools ha acili a e he unde s anding and im-
plemen a ion o he coun y’s Labou Laws Compliance Sys em a he en e p ise le el, especial-
ly among SMEs. These ools include aining p og ammes on social dialogue mechanisms ha
p omo e labou law compliance and he documen a ion o bes p ac ices on labou law compli-
ance (ECOP 2018). Simila ly, he Bulga ian Indus ial Associa ion, he bigges EBMO in Bulga ia,
has expanded i s each o small en e p ises by p o iding hem a ange o p ac ical suppo se -
ices o help hem comply wi h newly adop ed labou and social secu i y legisla ion (ILO 2018b).
Finally, he e a e o he ac o s ha may mo i a e MSE employe s o associa e. In China, cases o
employe coo dina ion and sel - egula ion and he g ow h o ade associa ions among small
p i a e en e p ises we e mo i a ed by employe s’ need o add ess in a- i m compe i ion ha
was leading o ising labou cos s and con lic s (Wen and Lin 2015). Such a s a egy was also im-
po an o coun e he des uc i e unde bidding o p ices, p o ec p oduc quali y and sa egua d
he local b and epu a ion (Wen and Lin 2015; Lee e al. 2016). In Xinhe coun y in Wenling ci y,
whe e he as majo i y o ac o ies a e small and household-based, he employe s es ablished
he Xinhe Woollen Swea e T ade Associa ion in 2000, ollowed by he Wenling Woollen Swea e
T ade Associa ion in 2002, in o de o en o ce he wage s anda d. The Xinhe ade associa ion
29 See websi e o he F ench con ede a ion o SMEs.
34 ILO Wo king Pape 129
and he local go e nmen de eloped a symbio ic ela ionship (Wen and Lin 2015, 673). Al hough
he ade associa ion ailed o hal wage compe i ion, he Xinhe case shows ha “ aced wi h he
classic collec i e ac ion p oblem in dealing wi h high employee u no e and ising con lic , local
employe s ha e aken he ini ia i e in es ablishing hei associa ions and engaging in mul i-em-
ploye ba gaining” (Lee e al. 2016, 231).
Acco ding o T axle (2008), employe s’ in e es in associa ional ac ion is unce ain. He a ib-
u es his o wha O e (1985) e e s o as “s uc u al powe asymme y” in he labou ma ke .
Employe s’ con ol o e he means o p oduc ion allows hem a much b oade ange o op ions
o ad ance hei labou ma ke in e es s compa ed o he op ions a ailable o wo ke s. T axle
(2008, 225) u he explains ha “Unions we e usually o med i s . The employe s esponded
by emba king on collec i e ac ion only a e he unions had p o ed hei capaci y o exe p es-
su e upon hem … smalle companies a e no p essu ized by union p esence o join employe s’
o ganiza ions”. This also holds ue o MSEs.
Fo example, he sus ained mobiliza ion by wo Nige ian oil unions, also known as he NUPENGASSAN
mo emen , o ced30 labou con ac o s o associa e in o he Labou Con ac o s’ Fo um o he
pu pose o collec i e ba gaining (Aye 2017). Collec i e ba gaining wi h he Fo um became he
no m and he issue o egula izing casual employees ook cen e s age (Aye 2017). Howe e , o
he ex en ha union p esence is less likely among MSEs compa ed o la ge en e p ises, MSE
employe s a e less likely o associa e.
30 Labou con ac o s engaged in ac s o ep essing any o ganizing e o , including by i ing con ac wo ke s who joined he union
and by calling in mili a y and police when he unions o ganized a majo demons a ion (Aye 2017).
35 ILO Wo king Pape 129
X5 Collec i e ba gaining and social dialogue in MSEs:
T ends and impac s
Key akeaways
●Legal amewo ks, MSE union densi y and he ep esen a ion o MSEs in EBMOs in luence
he collec i e ba gaining co e age o MSEs.
●The combina ion o h esholds ha do no limi he o ma ion o ade unions, sec o al ba -
gaining o mul i-employe ba gaining and he possibili y o ex ension is mo e likely o encou -
age highe union densi y, highe EBMO densi y and ba gaining co e age in MSEs.
●Unioniza ion, sec o al ba gaining and ex ension mechanisms a e likely o imp o e wo king
condi ions and labou ela ions in MSEs.
●Good p ac ices o social dialogue a e cha ac e ized by a pa icipa o y, consul a i e and eam-
based leade ship cul u e, employe s’ openness o wo ke ep esen a ion, and he in ol emen
o membe ship o employe s’ and wo ke s’ o ganiza ions in local, egional and sec o -le el
o ganiza ion and ne wo king.
In a 2015 epo p epa ed o he 104 h Session o he In e na ional Labou Con e ence, he ILO
s a es ha “indus ial ela ions a e s ill weak in SMEs, and bo h ade union membe ship and
company-le el collec i e ba gaining a e low” (ILO 2015b, 24). The same epo no ed ha i m
size in luences social dialogue in a ious ways (Voss e al. 2014; Eu o ound 2001; Ma lay1999).
The ollowing cha ac e is ics o SMEs a e mos ele an and common in his ega d: (a) undi e -
en ia ed o ganiza ional and managemen s uc u es, which blu he lines be ween employe s
and wo ke s; (b) he use o in o mal social dialogue p ac ices; (c) esis ance by SME employe s
o o mal mechanisms such as wo ke ep esen a ion; (d) he limi ed in e nal esou ces a aila-
ble o be deployed o social dialogue s uc u es (ILO 2015b, 6).
The ep esen a ion gap o MSE wo ke s and employe s is e lec ed in a “co e age gap” in collec-
i e ba gaining and social dialogue a a ious le els. The gap in collec i e ba gaining co e age
may be less o mo e p onounced han he gap in ep esen a ion, depending on he na u e o
indus ial ela ions sys ems in a gi en coun y in gene al and he collec i e ba gaining s uc u e
and i s scope o applica ion in pa icula .
Al hough he a ailable da a, especially on MSEs, is limi ed, he e is a consensus ha he inci-
dence o company-le el collec i e ba gaining in MSEs is low (ILO 2015b). Resea ch on a b oad-
e ca ego y o SMEs, which includes MSEs, inds ha , in he Uni ed Kingdom, only 4 pe cen o
SMEs a e co e ed by collec i e ba gaining, while in he Uni ed S a es o Ame ica he incidence
o bo h union densi y and collec i e ba gaining co e age is low (ILO 2015b). By con as , he EU
coun ies ha e subs an ially highe collec i e ba gaining co e age han he Uni ed Kingdom o
he Uni ed S a es. The 2019 ECS shows ha 61 pe cen o medium-sized en e p ises and 60 pe
cen o small en e p ises epo ed ha some o hei employees a e co e ed by a collec i e ba -
gaining ag eemen (Eu o ound and Cede op 2020, 114).
36 ILO Wo king Pape 129
E en i he EU coun ies sco e be e han o he coun ies, SMEs a e less likely o be co e ed by
any collec i e (wage) ag eemen han la ge companies wi h 250 o mo e employees (Eu o ound
2020). The 2019 ECS31 e ealed ha abou 44 o 45 pe cen o SMEs (wi h mo e han en employ-
ees) in he p i a e sec o a e no co e ed by any collec i e (wage) ag eemen . By con as , he
p opo ion o non-co e age among la ge en e p ises wi h mo e han 250 employees is much
lowe , a 28 pe cen (Eu o ound 2020, 27). The 2019 ECS su ey also showed ha la ge en e p is-
es a e mo e equen ly co e ed by a company-le el ag eemen (16 pe cen ) o by a combina ion
o a company and sec o al ag eemen s (21 pe cen ) han SMEs (8 o 11 pe cen o company
ag eemen s and 8 o 9 pe cen o he combina ion) (Eu o ound 2020). Acco ding o Eu o ound
(2020), sec o al wage ba gaining is he mos impo an wage ba gaining s uc u e o SMEs.
Al hough limi ed, he da a sugges s ha in coun ies domina ed by en e p ise-le el ba gaining,
collec i e ba gaining co e age is much lowe han in coun ies domina ed by sec o -le el o
highe le el ba gaining and a icula ion be ween sec o and company-le el ba gaining. Coun ies
wi h inclusi e sys ems o collec i e ba gaining – ha is, sec o al collec i e ba gaining o mul-
i-employe ba gaining – o en co e en e p ises o all sizes in he speci ic ba gaining uni , and
he eby o e come he challenges ha wo ke s and employe s in MSEs migh ace in engaging
in collec i e ba gaining. The 2019 ECS su ey inds ha coun ies ha ha e p edominan ly sec-
o -le el o highe -le el ba gaining in place wi h a icula ed ba gaining – whe eby company-le el
ag eemen s a e made in addi ion o he highe -le el ba gaining – end o ha e high ba gaining
co e age (Eu o ound 2020, 6). Thus, ou analysis sugges s ha he combina ion o (a) h esholds
ha do no hinde unionisa ion in MSEs32 and (b) he exis ence o sec o al o mul i-employe ba -
gaining ha includes an op ion o ex ension is mo e likely o encou age highe union densi y,
highe EBMO densi y and ba gaining co e age in MSEs. This pa e n is obse ed in Ge many,
No way and Spain, and o a lesse ex en in Slo akia.33
Making collec i e ba gaining mo e inclusi e o be e jobs and
ep esen a ion in MSEs
A s ong sys em o collec i e ba gaining is a key ea u e o ma u e indus ial ela ions and p o-
ides wo ke s wi h he oppo uni y o ea n adequa e wages and bene i om be e wo king
condi ions and job quali y. A s ong collec i e ba gaining sys em is also inclusi e o hose in he
in o mal economy. Public au ho i ies can play a c i ical ole in ensu ing ha all wo ke s, including
hose in MSEs, bene i om he imp o emen s and p o ec ion nego ia ed by unionized wo ke s
and employe (s). This includes legal p o isions and policies ha suppo mul i-employe and sec-
o al ba gaining and ex end hei applica ion beyond he nego ia ing pa ies, including o hose
in he in o mal economy. Such legal p o isions and policies a e also impo an o s eng hen-
ing he p econdi ions o meaning ul collec i e ba gaining gi en ha sec o al ba gaining and
mul i-employe ba gaining, especially i combined wi h ex ension mechanisms, co ela e wi h
highe le els o employee and employe ep esen a ion in MSEs. Highe ep esen a ion, in u n,
s eng hens he nego ia ed ou comes o collec i e ag eemen s (ILO 2022a).
31 The ECS su ey maps p ac ices in es ablishmen s wi h en o mo e employees ac oss he 28 EU membe coun ies, as well as in No h
Macedonia, Iceland, Mon eneg o and Tu key. The 2013 su ey included mo e han 30,000 es ablishmen s, wi h a a ge sample size
pe coun y anging om 300 o 1,650. Topics comp ised wo k o ganiza ion, human esou ces p ac ices, employee pa icipa ion and
social dialogue, and how hese p ac ices suppo “sma g ow h”. In e iews we e conduc ed wi h human esou ces manage s and
wi h employee ep esen a i es, whe e e possible (Eu o ound 2014).
32 See 376 h Repo o he Commi ee on F eedom o Associa ion, Case No. 2042, pa a 540.
33 As discussed in sec ion 4 abo e, Denma k and I aly a e special cases because, al hough bo h coun ies ha e no ex ension mech-
anisms o collec i e ba gaining, union densi y in he la e and ba gaining co e age in he o me is ela i ely high in he MSEs.
Sec o al ag eemen s in bo h coun ies ha e e y high co e age.
37 ILO Wo king Pape 129
Sec o al and mul i-employe ba gaining
Sec o al and mul i-employe ba gaining play an impo an ole in ex ending ba gaining co e age
o wo ke s in MSEs. In hei examina ion o he di e ences in collec i e ba gaining co e age o
75 coun ies, Visse , Hay e and Gamma ano (2017, 4) ound ha “whe e employe s nego ia e
join ly in mul i-employe ba gaining a angemen s o a sec o and/o e i o y, he ag eemen s
include small and medium en e p ises, many o which a e no unionized and as a esul , ba gain-
ing co e age a es end o exceed union densi y a es in many coun ies”. Mul i-employe ba gain-
ing also induces MSE employe s o associa e so ha hey can sa e on ba gaining cos s ha may
o he wise be highe i hey deal independen ly wi h unions (God ey, The on and Visse 2007).
Ba gaining a he sec o al le el plays a c i ical ole in imp o ing wo king condi ions in MSEs.
Luxembou g pu sues bo h sec o al and company-le el ba gaining. Sec o al ag eemen s ini ially
apply only o hose en e p ises ha belong o he employe s’ associa ions ha ha e signed he
ag eemen bu a e o en ex ended by he go e nmen o he en i e sec o (Eu o ound 2020). In
2013, 59 pe cen o Luxembou g’s wo k o ce was co e ed by collec i e ag eemen s (Eu o ound
2020, 108). La ge en e p ises (mo e han 1,000 employees) had highe co e age (79 pe cen ),
while MSEs (10 o 49 employees) had lowe co e age (30 pe cen ) (Eu o ound 2020). Sec o al
collec i e ag eemen s co e no only la ge sec o s bu also sec o s ha a e mainly cons i u ed
by smalle en e p ises, such as au omo i e epai , cleaning and elec ical se ices.34 Fo exam-
ple, he collec i e ag eemen co e ing au o epai shop pe sonnel, which is alid om 1 Janua y
2022 o 31 Decembe 2023 (a e a aci ex ension), includes compensa ion ( ha is, s anda d
wage, wage bonus based on skill ce i ica ion, annual bonus), wo king hou s (including o e ime,
Sunday, public holiday and nigh wo k), holiday en i lemen s, sa e y and heal h p o ec ion, ea ly
e i emen and limi a ions on liabili ies o employees.35
In Denma k, he main ypes o collec i e ag eemen s a e sec o al ag eemen s, ollowed by an
o ganized sequence o company ag eemen s. In he manu ac u ing sec o , o example, a “cen-
alized decen aliza ion” sys em o ba gaining se s he pace by concluding a sec o al ag eemen
(The Indus ial Ag eemen ), which is hen ollowed by local nego ia ions on wages and wo k-
ing ime (Eu o ound 2020, 37). Thus, sec o al ba gaining is he dominan ype o ba gaining in
Denma k, co e ing abou 84 pe cen o he labou ma ke in bo h p i a e and public sec o s36
(Eu o ound 2020, 39). Sec o al collec i e ag eemen s ha co e MSEs no only egula e basic
paymen and wo king condi ions bu also include o he aspec s o wo k such as aining (lea e),
holiday a angemen s, and wo king ime (Eu o ound 2014, 47; Eu o ound 2020). Sweden and
Denma k ha e main ained a sys em o sec o al (mul i-employe ) ba gaining and high ba gain-
ing co e age a e, as a esul o , among o he hings, “ he con inuous in ol emen o unions and
employe s’ associa ions in public policy, a suppo i e legal sys em, and he abili y o he unions o
p ess non-o ganized employe s in o signing ‘adhesion’ o ‘pa icipa ion’ ag eemen s in which hey
commi o he ‘going a e’ se in he ele an collec i e ag eemen ” (Hay e and Visse 2018, 8).
Mos sec o -le el collec i e ag eemen s in Denma k speci y he possibili y o elec ing an employ-
ee ep esen a i e — a shop s ewa d — in companies wi h mo e han i e employees (Eu o ound
2014, 66). The shop s ewa d is no only he employee ep esen a i e bu also he ade union’s ep-
esen a i e in he company. Acco ding o Eu o ound (2014, 66), mo e han one hi d (35 pe cen )
o mic oen e p ises (5 o 9 employees) and 69 pe cen o small en e p ises (20 o 49 employees)
34 Fo a comple e lis o ex ended sec o al ag eemen s, including hose co e ing MSEs, see Luxembou g, h ps://i m.public.lu/de/
condi ions- a ail.h ml
35 Luxembou g, “Collec i e Ag eemen o Luxembou g Au o Repai Shop Pe sonnel”.
36 The sec o al ag eemen s co e wages, wo king condi ions (wo king ime), employee ep esen a ion, wo k en i onmen and amily–
wo k issues.
44 ILO Wo king Pape 129
2. Adop a g ass oo o ganizing s a egy in o ganizing MSE wo ke s in he in o mal sec o in-
cluding by adap ing he membe ship s uc u e o ade unions o he pa icula si ua ion o
wo ke s in he in o mal economy. The o ganizing hemes could include minimum wages,
social secu i y, OSH, job secu i y, income and li elihood secu i y, wo kspace/loca ion secu i-
y, skills aining and upg ading, and p o ec ion om ha assmen by au ho i ies. Ac i e en-
gagemen in b oade policy ini ia i es ha signi ican ly a ec MSE wo ke s, such as access o
quali y public se ices, comp ehensi e social p o ec ion schemes and adequa e wages could
be also an impo an s a egy o mobilising and o ganizing hese wo ke s. The ade unions
could conside ex ending o u he expanding se ices o membe ship o wo ke s in he in-
o mal economy ollowing he guidance o Recommenda ion No. 204. This could be done by
modi ying s a ues o cons i u ions o unions and allowing he di ec a ilia ion o indi idual
wo ke s wi h indus y-le el ade unions.
3. Es ablish and/o s eng hen e i o ial/ egional s uc u es o wo ke ep esen a ion, which
could ake up indus ial ela ions issues o MSE wo ke s. These s uc u es may also se e as
a amewo k o o ganizing hese wo ke s collec i ely, as well as help add ess he h eshold
limi a ions o unioniza ion se in legal amewo ks.
4. S eng hen pa icipa ion in social dialogue wi h he go e nmen and employe s (and hei
o ganiza ions) on he ecommenda ions se ou o go e nmen s in he sec ion abo e ( ha
is, he ecommenda ions on adop ing high- oad and o maliza ion s a egies in MSE de elop-
men amewo ks, while in ol ing MSEs in ipa i e s uc u es and social dialogue) and he
ecommenda ions o employe s’ o ganiza ions se ou in he sec ion abo e ( ha is, he ec-
ommenda ions on assis ing MSEs in complying wi h labou s anda ds, ex ending ep esen a-
ion o MSEs and in ol ing MSEs in social dialogue and ipa i e s uc u es).
45 ILO Wo king Pape 129
Re e ences
Anne , Ma k. 2020. “Squeezing Wo ke s’ Righ s in Global Supply Chains: Pu chasing P ac ices
in he Bangladesh Ga men Expo Sec o in Compa a i e Pe spec i e”. Re iew o In e na ional
Poli ical Economy 27(2): 320–347.
Aus alian Banking Associa ion. 2022. “Aus alian Banking Associa ion SME Lending Repo ”.
h ps://www.ausbanking.o g.au/wp-con en /uploads/2022/11/ABA-SME-Lending-Repo -2022.pd
Aye, Baba. 2017. “NUPENGASSAN”: Comba ing P eca ious Wo k in he Nige ian Oil Indus y. GLU
Wo king Pape No. 50. ILO. h ps://global-labou -uni e si y.o g/wp-con en /uploads/2022/03/
GLU_WP_No.50.pd
Ayyaga i, Meghana, Tho s en Beck and Asli Demi guc-Kun . 2007. “Small and Medium En e p ises
ac oss he Globe”. Small Business Economics 29 (4): 415–34. h p://www.js o .o g/s able/40229581
Ba e , Rowena and Rainnie, Al. 2002. “Wha ’s so special abou small i ms? De eloping an in-
eg a ed app oach o analysing small i ms’ indus ial ela ions”. Wo k, Employmen and Socie y
16(3), pp. 415-431.
Ba elsman, E ic, John Hal iwange and S e ano Sca pe a. 2013. “C oss-Coun y Di e ences in
P oduc i i y: The Role o Alloca ion and Selec ion”. Ame ican Economic Re iew 103(1): 304–334.
10.1257/ae .103.1.305
Bhanda i, Anup Kuma , and A un Suda san. 2016. “Ins i u ionalis e sus Dis o ionis Views o
Labou Ma ke Re o ms: An In es iga ion in o he Pos -Libe alized Manu ac u ing Sec o in India”.
Jou nal o Economics, Finance and Adminis a i e Science 21 (41): 63–72.
Bloom, Nicholas, and John Van Reenen. 2007. “Measu ing and Explaining Managemen P ac ices
ac oss Fi ms and Coun ies”, The Qua e ly Jou nal o Economics 122 (4): 1351–1408.
Bloom, Nicholas, Ei e , Benn, Mahajan, Ap aji , McKenzie, Da id and Robe s, John, 2013. “Does
Managemen Ma e ? E idence om India”, The Qua e ly Jou nal o Economics 128 (1): 1–51,
h ps://doi.o g/10.1093/qje/qjs044
B andl, Be nd, and Alex Leh , Alex. 2016. “The S ange Non-Dea h o Employe and Business
Associa ions: An Analysis o Thei Rep esen a i eness and Ac i i ies in Wes e n Eu opean
Coun ies”. Economic and Indus ial Democ acy 40 (4): 932–953.
Ca anza, Eliana, Chand a Dhakal and Inessa Lo e. 2018. Female En ep eneu s: How and Why
A e They Di e en ?. Jobs Wo king Pape No. 20.
CONFIEP (Comi é de la Pequeña Emp esa). 2023. h ps://www.con iep.o g.pe/quienes-somos-2/
comi es/consejo-pyme/
C ouche , Richa d, e al. 2013. Can Be e Wo king Condi ions Imp o e he Pe o mance o SMEs?
An In e na ional Li e a u e Re iew. h ps://www.ilo.o g/wcmsp5/g oups/public/---ed_emp/---emp_
en /documen s/publica ion/wcms_227760.pd
46 ILO Wo king Pape 129
Daza, Jose Luis. 2005. “In o mal Economy, Undecla ed Wo k and Labou Adminis a ion”. Dialogue
Pape No. 9. h ps://www.ilo.o g/wcmsp5/g oups/public/---ed_dialogue/---lab_admin/documen s/
publica ion/wcms_113918.pd
De Mel, Su esh, Da id McKenzie and Ch is ophe Wood u . 2009. “A e Women Mo e C edi
Cons ained? Expe imen al E idence on Gende and Mic oen e p ise Re u ns”. Ame ican Economic
Jou nal: Applied Economics 1(3): 1–32.
Dimson, Jona han, e al. 2020. “COVID-19 and Eu opean Small and Medium-Size En e p ises: How
They A e Wea he ing he S o m”. McKinsey & Company. h ps://www.mckinsey.com/indus ies/
public-andsocial-sec o /ou -insigh s/co id-19-and-eu opean-small-and-medium-size-en e p ises-
how- hey-a ewea he ing- he-s o m
Edwa ds, Paul, and Monde Ram. 2019. HRM in Small Fi ms: Respec ing and Regula ing In o mali y.
In The Sage Handbook o Human Resou ce Managemen , edi ed by Ad ian Wilkinson e al., 524–
540. Sage.
De Kok, Jan, Claudia Deijl and Ch is i Veldhuis-Van Essen. 2013. Is Small S ill Beau i ul?
Li e a u e Re iew o Recen Empi ical E idence on he Con ibu ion o SMEs o Employmen C ea ion.
ILO and GIZ. h ps://www.ilo.o g/wcmsp5/g oups/public/---ed_emp/---emp_en /---i p_seed/
documen s/publica ion/wcms_216909.pd
De Kok, Jan, Paul V oonho and Wim Ve hoe en. 2011. Do SMEs C ea e Mo e and Be e Jobs. EIM
Business & Policy Resea ch.
De T oye , Ma ianne, and S éphane Le Lay. 2007. Heal h and Sa e y in SMEs: The Challenge
o Unions. In SMALL: Rep esen a ion and Voice in Small and Medium Sized Eu opean En e p ises:
Moni o ing Ac o s, Labou O ganiza ions and Legal F amewo ks, 5 h F amewo k P og am,75–85.
ECOP. 2018. Expanding he Reach o he Labou Laws Compliance Sys em by Capaci a ing Business
Membe ship O ganiza ion (BMOs) and ECOP Chap e s. h ps://ecop.o g.ph/p ojec /expanding-
he each- o - he-labou -laws-compliance-sys em-by-capaci a ing-business-membe ship-
o ganiza ionbmos-and-ecop-chap e s/
Eu o ound (Eu opean Founda ion o he Imp o emen o Li ing and Wo king Condi ions). 2001.
Employmen Rela ions in Mic o and Small En e p ises in he EU: Li e a u e Re iew.
–––. 2014. Social Dialogue in Mic o and Small En e p ises. h ps://www.eu o ound.eu opa.eu/si es/
de aul / iles/e _publica ion/ ield_e _documen /e 1412en.pd
–––. 2020. Indus ial Rela ions: Collec i e Ag eemen s and Ba gaining Co e age in he EU – A Mapping o
Types, Regula ions and Fi s Findings om he Eu opean Company Su ey 2019 h ps://www.eu o ound.
eu opa.eu/si es/de aul / iles/wpe 20022.pd
Eu o ound and Cede op. 2020. Eu opean Company Su ey 2019: Wo kplace P ac ices Unlocking
Employee Po en ial. Eu opean Company Su ey 2019 se ies. h ps://www.eu o ound.eu opa.eu/si es/
de aul / iles/e _publica ion/ ield_e _documen /e 20001en.pd
Eu opean Union-Eu opean Agency o Sa e y and Heal h a Wo k (EU-OSHA). 2016. Con ex s and
A angemen s o Occupa ional Sa e y and Heal h in Mic o and Small En e p ises in he EU
47 ILO Wo king Pape 129
– SESAME P ojec . Eu opean Risk Obse a o y Li e a u e Re iew. h ps://osha.eu opa.eu/en/publica ions/
con ex s-and-a angemen s-occupa ional-sa e y-and-heal h-mic o-and-small-en e p ises-eu
Eu os a . 2022. Key Figu es on Eu opean Business, 2022 edi ion h ps://ec.eu opa.eu/eu os a /
documen s/3217494/14871931/KS-06-22-075-EN-N.pd /7d3b8dad-a4a3-cced-470 -
13a4275c570e? =1665136095868
Fenwick, Colin, e al. 2007. Labou and Labou -Rela ed Laws in Mic o and Small En e p ises:
Inno a i eRegula o y App oaches. SEED Wo king Pape No. 81. h ps://www.ilo.o g/wcmsp5/g oups/
public/---ed_emp/---emp_en /documen s/publica ion/wcms_093618.pd
Fos e , Ba y, and Dei d e Fa . 2016. “Some Willingness o Engage: A Su ey o Employmen
Rela ionsP ac ices and Employee Voice Oppo uni ies in SMEs in egional New Zealand”. New
Zealand Jou nal o Employmen Rela ions 41(1): 41–64.
F ye, Isobel. 2005. Ex ending Social Secu i y o De eloping Coun ies: Pa icula Emphasis on Heal h
Ca e and In o mal Economy Wo ke s. GURN Discussion Pape No. 1. h ps://lib a y. es.de/pd - iles/
gu n/00020.pd
Ghana Employe s’ Associa ion. Ghana Employe s’ Associa ion websi e. h ps://ghanaemploye s.
com.gh/gea-home/
God ey, Shane, Jan The on and Ma ga ee Visse . 2007. “The S a e o Collec i e Ba gaining in
Sou h A ica An Empi ical and Concep ual S udy o Collec i e Ba gaining”. DPRU Wo king Pape
07–130. Uni e si y o Cape Town.
Goss, Da id. 1991. Small Business and Socie y. Rou ledge.
Hay e , Susan and Jelle Visse , eds. 2018. Collec i e Ag eemen s: Ex ending Labou P o ec ion. ILO.
Hol en, Ann-Louise, and Colin C ouch. 2014. “Unions in Small- and Medium-Sized En e p ises: A
Family Fac o Pe spec i e”. Eu opean Jou nal o Indus ial Rela ions 20 (3): 273–290.
IFC (In e na ional Finance Co po a ion). 2019. “Mic o, Small and Medium En e p ises – Economic
Indica o s (MSME-EI): Analysis No e Decembe 2019”. h ps://www.sme inance o um.o g/si es/
de aul / iles/MSME-EI%20Repo _FINAL.pd
–––. 2020. Annual epo 2020. SME Finance Fo um. h ps://www.sme inance o um.o g/si es/
de aul / iles/SMEFF-ANNUAL-REPORT-2020- o -web_0.pd
–––. 2022. Closing he Gende Finance Gap Th ough he Use o Blended Finance. h ps://www.i c.
o g/con en /dam/i c/doc/2023-del a/closing- he-gende - inance-gap h ough-blended- inance.pd
ILO. 1996. “Glossa y o Indus ial Rela ions and Rela ed Te ms”.
–––. 2005. Wo ld Employmen Repo 2004–2005: Employmen , P oduc i i y and Po e y Reduc ion.
h ps://www.ilo.o g/public/libdoc/ilo/P/09465/09465%282004-2005%29272.pd
–––. 2011. El abajo decen e en las mic o y pequeñas emp esas chilenas: Teo ía y p ác ica. h ps://
www.oi cin e o .o g/si es/de aul / iles/ ile_publicacion/ decen e_pyme.pd
48 ILO Wo king Pape 129
–––. 2013. The In o mal Economy and Decen Wo k: A Policy Resou ce Guide – Suppo ing T ansi ions
o Fo mali y. h ps://www.ilo.o g/wcmsp5/g oups/public/---ed_emp/---emp_policy/documen s/
publica ion/wcms_212689.pd .
–––. 2015a. Repo s o he Commi ee on SMEs and Employmen C ea ion: Resolu ion and
Conclusions Submi ed o Adop ion by he Con e ence, ILC.104/11-1. h ps://www.ilo.o g/wcmsp5/
g oups/public/---ed_no m/--- elcon /documen s/mee ingdocumen /wcms_375347.pd .
–––. 2015b. Small and Medium-Sized En e p ises and Decen and P oduc i e Employmen C ea ion,
ILC.104/IV. h ps://www.ilo.o g/wcmsp5/g oups/public/---ed_no m/--- elcon /documen s/
mee ingdocumen /wcms_358294.pd .
–––. 2015c. Collec i e Ba gaining: A Policy Guide. h ps://www.ilo.o g/wcmsp5/g oups/public/---
ed_p o ec /---p o a /--- a ail/documen s/ins uc ionalma e ial/wcms_425004.pd .
–––. 2015d. 376 h Repo o he Commi ee on F eedom o Associa ion.
–––. 2016a. Non-S anda d Employmen a ound he Wo ld: Unde s anding Challenges, Shaping
P ospec s. h ps://www.ilo.o g/wcmsp5/g oups/public/---dg epo s/---dcomm/---publ/documen s/
publica ion/wcms_534326.pd
–––. 2016b. Global Wage Repo 2016/17: Wage Inequali y in he Wo kplace. h ps://www.ilo.o g/
wcmsp5/g oups/public/---dg epo s/---dcomm/---publ/documen s/publica ion/wcms_537846.pd
–––. 2018a. Women and Men In The In o mal Economy: A S a is ical Pic u e. Thi d edi ion. h ps://www.
ilo.o g/wcmsp5/g oups/public/---dg epo s/---dcomm/documen s/publica ion/wcms_626831.pd
–––. 2018b. The Impac o Social Dialogue and Collec i e Ba gaining on Wo king Condi ions in
SMEs: A Li e a u e Re iew. h ps://www.ilo.o g/wcmsp5/g oups/public/---ed_emp/---emp_en /--
-i p_seed/documen s/publica ion/wcms_651378.pd
–––. 2019a. Small Ma e s: Global E idence on he Con ibu ion o Employmen by he Sel -Employed,
Mic o-En e p ises and SMEs. h ps://www.ilo.o g/wcmsp5/g oups/public/---dg epo s/---dcomm/-
--publ/documen s/publica ion/wcms_723282.pd
–––. 2019b. Fo maliza ion: The Case o Chile. h ps://www.ilo.o g/wcmsp5/g oups/public/---ed_emp/-
--emp_en /documen s/publica ion/wcms_725018.pd
–––. 2019c. In e ac ions Be ween Wo ke s O ganiza ions and Wo ke s in he In o mal Economy: A
Compendium o P ac ice. h ps://www.ilo.o g/wcmsp5/g oups/public/---ed_p o ec /---p o a /---
a ail/documen s/publica ion/wcms_735630.pd
–––. 2022a. Social Dialogue Repo 2022: Collec i e Ba gaining o an Inclusi e, Sus ainable and Resilien
Reco e y. h ps://www.ilo.o g/wcmsp5/g oups/public/---dg epo s/---dcomm/---publ/documen s/
publica ion/wcms_842807.pd
–––. 2020a. “Ghana Employe s’ Associa ion (GEA) and he ILO Collabo a e o Fos e T ansi ion o
Fo mali y in he Coun y”. ACTEMP News, 14 Oc obe 2020. h ps://www.ilo.o g/ac emp/news/
WCMS_765908/lang--en/index.h m
49 ILO Wo king Pape 129
–––. 2020b. “The Role o Social Dialogue and he Social Pa ne s in Add essing he Consequences
o COVID-19 in he In o mal Economy”. ILO b ie . h ps://www.ilo.o g/wcmsp5/g oups/public/--
-ed_p o ec /---p o a /--- a ail/documen s/b ie ingno e/wcms_759383.pd
–––. 2021a. “Ex ending Social Secu i y o Wo ke s in Mic o and Small En e p ises: Lessons om
In e na ional Expe ience”. Social P o ec ion Spo ligh . h ps://www.social-p o ec ion.o g/gimi/
Media.ac ion?id=16986
–––. 2021b. Wo ld Employmen and Social Ou look: T ends 2021. h ps://www.ilo.o g/wcmsp5/g oups/
public/---dg epo s/---dcomm/---publ/documen s/publica ion/wcms_795453.pd
–––. 2021c. In e nal and Ex e nal Fac o s o SME Success: Wha EBMOs Should Know o P omo e
Mo e Compe i i e En e p ises. h ps://www.ilo.o g/wcmsp5/g oups/public/---ed_dialogue/---ac _
emp/documen s/publica ion/wcms_830580.pd
IOE (In e na ional O ganiza ion o Employe s). 2015. “Rec ui men and Re en ion o Small and
Medium-Sized En e p ises (SMEs) in Employe s’ O ganisa ion Membe ship”. Fac shee .
Islam, Asi M., e al. 2020. “The Labo P oduc i i y Gap Be ween Fo mal Businesses Run by Women
and Men”. Feminis Economics 26 (4): 228–258.
Kim, Jung Woo. 2014. “Employmen Rela ions in Non-Unionized Wo kplaces”. In Employmen
Rela ions in Sou h Ko ea, edi ed by Kiu Sik Bae, 155–174. Palg a e Macmillan. h ps://doi.
o g/10.1057/9781137428080_9.
Ki on, Gill, and Ian Read. 2007. “Inequali ies in Eu ope’s SMEs: The Challenges o a T ade Union
Agenda”. T ans e 13(1): 131–146.
Kochan, Thomas A. 2006. “Taking he High Road”. MIT Sloan Managemen Re iew, Magazine Summe ,
July 2006. h ps://sloan e iew.mi .edu/a icle/ aking- he-high- oad/
La Po a, Ra ael, and And ei Shlei e . 2014. “In o mali y and De elopmen ”. Jou nal o Economic
Pe spec i es 28 (3): 109–126. h ps://pubs.aeaweb.o g/doi/pd plus/10.1257/jep.28.3.109
Lee, Chang Hee, William B own and Xiaoyi Wen. 2016. “Wha So o Collec i e Ba gaining is
Eme ging in China?” B i ish Jou nal o Indus ial Rela ions 54 (1): 214–236.
McKenzie, Da id and Wood u , Ch is ophe . 2017. “Business P ac ices in Small Fi ms in De eloping
Coun ies”. Managemen Science, 63 (9): 2967-2981.
Ma chese, Ma co, e al. 2019. “Enhancing SME P oduc i i y: Policy Highligh s on he Role o
Manage ial Skills, Wo k o ce Skills and Business Linkages”, OECD SME and En ep eneu ship
Pape s No. 16. OECD. h ps://doi.o g/10.1787/825bd8a8-en.
Moo e, Sian, S e e Je e ys and Pie e Cou s-Salies. 2007. “Why do Eu ope’s Unions Find I Di icul
o O ganise in Small Fi ms?”. Eu opean Re iew o Labou and Resea ch 13 (1): 115–130.
Nadin, Sa a, and Ca he ine Cassell. 2007. “New Deal o Old? Explo ing he Psychological Con ac
in a Small Fi m En i onmen ”. In e na ional Small Business Jou nal 25 (4): 417–443. h ps://jou nals.
sagepub.com/doi/10.1177/0266242607078587
50 ILO Wo king Pape 129
OECD. 2017b. OECD Employmen Ou look 2017. h ps:// ead.oecd-lib a y.o g/employmen /
oecdemploymen -ou look-2017_empl_ou look-2017-en#page4
O e, Claus. 1985. Diso ganized Capi alism: Con empo a y T ans o ma ions o Wo k and Poli ics.
MIT P ess.
Philippines, O icial Gaze e. 2014. Republic Ac No. 10644: An Ac P omo ing Job Gene a ion and
Inclusi e G ow h h ough he De elopmen o Mic o, Small and Medium En e p ises. h ps://
www.o icialgaze e.go .ph/2014/07/15/ epublic-ac -no-10644/.
Philippines, Depa men o Labo and Employmen . 2023. Depa men O de No. 238, Se ies o
2023. Rules on he Adminis a ion and En o cemen o Labo S anda ds Pu suan o A icle 128 o
he Labo Code o he Philippines, as Renumbe ed, and Republic Ac No. 11058. h ps://www.dole.
go .ph/php_asse s/uploads/2023/04/DO-238-23-Rules-on- he-Adminis a ion-and-En o cemen -
o -Labo -S anda ds-Pu suan - o-A icle-128-o - he-Labo -Code-o - he-Philippines-As-Renumbe -
ed-And-Republic-Ac -No.-11058.pd
Philippines, PSA. 2021. “Non-Economic P o isions o Collec i e Ba gaining Ag eemen s in 2018”.
LABSTAT Upda es 25 (5). h ps://psa.go .ph/sys em/ iles/ls edsd/5-%2520LABSTAT%2520Upda es%
2520on%2520Non-Economic%2520P o ision%2520o %2520CBAs%2520in%25202018_signed.pd .
Ram, Monde , and Paul Edwa ds. 2003. P aising Caesa No Bu ying Him: Wha We Know abou
Employmen Rela ions in Small Fi ms. Wo k, Employmen and Socie y 17(4): 719–730.
Reinecke, Ge ha d, and Simon Whi e. 2004. Policies o Small En e p ises: C ea ing The Righ
En i onmen o Good Jobs. ILO.
Rossman, Pe e . 2013. “Es ablishing Righ s in he Disposable Regime”. In e na ional Jou nal o
Labou Resea ch 5(1): 23–40. h ps://www.ilo.o g/wcmsp5/g oups/public/---ed_dialogue/---ac a /
documen s/mee ingdocumen /wcms_233455.pd .
Sapkal, Rahul Su esh. 2016. “Labou Law, En o cemen and he Rise o Tempo a y Con ac Wo ke s:
Empi ical E idence om India’s O ganised Manu ac u ing Sec o ”. Eu opean Jou nal o Law and
Economics 42: 157–182.
Scheil-Adlung, Xenia. 2014. Can P oduc i i y in SMEs Be Inc eased by In es ing in Wo ke s’ Heal h?
Taking S ock o Findings on Heal h P o ec ion o Wo ke s in Small and Medium-Sized En e p ises and
Thei Impac s on P oduc i i y. ILO ESS – Documen No. 45. h ps://www.social-p o ec ion.o g/gimi/
gess/Media.ac ion?id=14268
Schmid, Gün he . 2015. “Sha ing Risks o Labou Ma ke T ansi ions: Towa ds a Sys em o
Employmen Insu ance”. B i ish Jou nal o Indus ial Rela ions 53(1): 70–93.
Schmi e , Philippe C., and Wol gang S eeck. 1981. The O ganiza ion o Business In e es s:
S udying he Associa i e Ac ion o Business in Ad anced Indus ial Socie ies. Discussion Pape
IIM/LPM 81–13. Wissenscha szen um Be lin ü Sozial o schung.
Schumache , E ns F ied ich. 1974. Small is Beau i ul. Abacus, London.
Se ano, Melisa R. 2016. The (Missing) Link be ween Wages and P oduc i i y in he Philippines:
Wha Role o Collec i e Ba gaining and he New Two-Tie Wage Sys em? ILO. h ps://www.ilo.o g/
51 ILO Wo king Pape 129
wcmsp5/g oups/public/---ed_p o ec /---p o a /--- a ail/documen s/publica ion/wcms_531654.
pd
–––. Unpublished. “Collec i e Ba gaining and he COVID-19 Pandemic: Philippines”. Resea ch e-
po o a esea ch p ojec commissioned o he au ho by he ILO o suppo The Flagship Repo
on Social Dialogue. Unpublished.
Se ano, Melisa R., and Edli a Xha a. 2016. “F om ‘P eca ious In o mal Employmen ’ o ‘P o ec ed
Employmen ’: he ‘Posi i e T ansi ioning E ec ’ o T ade Unions”. GLU Wo king Pape No. 42. ILO.
h ps://labou doc.ilo.o g/disco e y/deli e y/41ILO_INST:41ILO_V1/1244169920002676
Se ano, Melisa R., and Rolly Cza Joseph Cas illo. 2020. “The Impac o he COVID-19 Pandemic on
he Cons uc ion Indus y in he Philippines”. Philippine Jou nal o Labou and Indus ial Rela ions
37:1–44.
Se ano, Melisa R., e al. 2010. “S a egies o Closing he Rep esen a ion Gap in Mic o and Small
En e p ises”. GLU Wo king Pape No. 10. ILO. h ps://global-labou -uni e si y.o g/wp-con en /
uploads/ ileadmin/GLU_Wo king_Pape s/GLU_WP_No.10.pd /
Small Indus ies De elopmen O ganiza ion. 2017. Co po a e S a egic Plan (2017/18–2020/2021).
h ps://sido.go. z/si es/de aul / iles/CSP%20VI%20HYBRID_1.pd
Sounda a ajan, Vi ek, Lau a J. Spence and Ch is Rees. 2018. “Small Business and Social
I esponsibili y in De eloping Coun ies: Wo king Condi ions and ‘E asion’ Ins i u ional Wo k”.
Business & Socie y 57(7): 1301–1336. h ps://doi.o g/10.1177/0007650316644261
Spain, Consejo Económico y Social. 2022. Economía, T abajo y Sociedad: Memo ia Sob e La Si uación
Socioeconómica y Labo al – España 2021.
S a is a Resea ch Depa men . 2022. “Numbe o P i a e Small and Medium-Sized Business
En e p ises (SMEs) Ope a ing in Japan in 2016, by Indus y”. h ps://www.s a is a.com/
s a is ics/1338003/japannumbe -p i a e-small-and-medium-sized-en e p ises-by-indus y/
T axle , F anz. 2008. “Employe O ganiza ions”. In The SAGE Handbook o Indus ial Rela ions, ed-
i ed by Paul Bly on e al. Sage.
–––. Unpublished. “Fi m Size, SMEs and Business In e es Associa ions: A Eu opean Compa ison”.
In Small and Medium-Sized En e p ises and Business In e es O ganiza ions in he Eu opean Union,
coo dina ed by F anz T axle .
TUCA (T ade Union Con ede a ion o he Ame icas) and ITUC (In e na ional T ade Union
Con ede a ion). 2015. Desa íos Labo ales pa a T abajado es(as) de Pymes en Amé ica La ina y el
Ca ibe. h ps://www.ilo.o g/wcmsp5/g oups/public/---ame icas/--- o-lima/---s o-lima/documen s/
gene icdocumen /wcms_571376.pd
Va gas, Ana Ma ía. 2020. “Applying Labou Law o Mic o, Small and Medium-Sized En e p ises: A
Compa a i e S udy o 16 Coun ies”. ILO Wo king Pape 9. h ps://www.ilo.o g/wcmsp5/g oups/
public/---ed_emp/---emp_en /---i p_seed/documen s/publica ion/wcms_757271.pd
Va a, Alesia. 2022. “The E olu ion o I alian Bila e al Bodies and Funds in a Compa a i e Pe spec i e”.
Economic and Indus ial Democ acy 43(1): 32–51.
52 ILO Wo king Pape 129
Visse , Jelle, Susan Hay e and Rosina Gamma ano. 2017. “T ends in Collec i e Ba gaining
Co e age: S abili y, E osion o Decline?” Labou Rela ions and Collec i e Ba gaining Issue B ie No.
1. ILO. h ps://www.ilo.o g/wcmsp5/g oups/public/---ed_p o ec /---p o a /--- a ail/documen s/
publica ion/wcms_409422.pd
Wal e s, Da id. 2004. “Wo ke Rep esen a ion and Heal h and Sa e y in Small En e p ises in
Eu ope”. Indus ial Rela ions Jou nal 35(2): 169–186.
Webs e , Edwa d, e al. 2008. “Closing he Rep esen a ion Gap in Mic o and Small En e p ises”.
GLU Wo king Pape No. 3. ILO.
Wen, Xiaoyi, and Ke in Lin. 2014. “Res uc u ing China’s S a e Co po a is Indus ial Rela ions
Sys em: The Wenling Expe ience”. Jou nal o Con empo a y China 24(94): 665–683.
Wilkinson, Ad ian. 1999. “Employmen Rela ions in SMEs”, Employee Rela ions 21(3): 206–217.
h p://dx.doi.o g/10.1108/01425459910273062
W igh , Pe e . 1995. “Union Membe ship and Co e age: A S udy Using he Nes ed Mul inomial
Logi Model”. In e na ional Jou nal o Manpowe 16 (2): 53–59.
WTO (Wo ld T ade O ganiza ion). 2016. Wo ld T ade Repo 2016. Le elling he T ading Field o
SMEs. h ps://www.w o.o g/english/ es_e/publica ions_e/w 16_e.h m
Xha a, Edli a. 2007. “Obs acles and Posi i e Expe iences in Achie ing Be e P o ec ion and
Rep esen a ion o Wo ke s in Mic o and Small En e p ises: A Re iew o Li e a u e”. Unpublished.
–––. 2015. “Collec i e Ba gaining and Non-S anda d Fo ms o Employmen : P ac ices Tha Reduce
Vulne abili y and Ensu e Wo k Is Decen ”. Labou Rela ions and Collec i e Ba gaining Issue B ie
No. 3. ILO.
–––. 2019. “O ganizing Agains All Odds: P eca ious Wo ke s As ‘Ac o s and Au ho s o Thei Own
D ama’”. Global Labou Uni e si y Wo king Pape No. 55. ILO. h ps://global-labou -uni e si y.
o g/wp-con en /uploads/ ileadmin/GLU_Wo king_Pape s/GLU_WP_No.55.pd
Xha a, Edli a, and Melisa R. Se ano. o hcoming. “Rep esen a ion Models and Fo ms o Collec i e
Ac ion o Wo ke s in In o mal Employmen ”. Global Labou Uni e si y wo king pape .
Yoshino, Naoyuki, and Fa had Taghizadeh-Hesa y. 2016. “Majo Challenges Facing Small and
Medium-Sized En e p ises in Asia and Solu ions o Mi iga ing Them”. ADBI Wo king Pape
Se ies No. 564. Asian De elopmen Bank Ins i u e. h ps://www.adb.o g/si es/de aul / iles/
publica ion/182532/adbi-wp564.pd
Yun, Aelim. 2014. “O e u ning he I on Law o Wages: The Minimum Wage Campaign in Ko ea”.
Pape p esen ed a he 9 h Global Labou Uni e si y Con e ence, on he heme “Inequali y wi hin and
among Na ions: Causes, E ec s, and Responses”. h ps://global-labou -uni e si y.o g/wp-con en /
uploads/ ileadmin/GLU_con e ence_2014/pape s/YUN_Aelim_GLU_Con e ence_2014_0516.pd
53 ILO Wo king Pape 129
Acknowledgemen s
The wo king pape was au ho ed by Melisa Se ano and Edli a Xha a unde he guidance o and
wi h con ibu ions om Ve ena Schmid (Inclusi e Labou Ma ke s, Labou Rela ions and Wo king
Condi ions B anch - INWORK), Ma len de la Chaux (Mic o, Small and Medium En e p ises B anch
- MSME) and Sa a Ande sson (MSME). Valuable inpu s and commen s we e p o ided by he ILO
Bu eau o Employe s’ Ac i i ies (ACT/EMP) and he ILO Bu eau o Wo ke s’ Ac i i ies (ACTRAV) as
well as a ious specialis s including Philippe Ma caden (Chie o INWORK), D agan Radic (Chie o
MSME), John Ri cho e (Lead o he Labou Rela ions and Collec i e Ba gaining G oup, INWORK),
Flo ence Bonne (INWORK) and Ma leen Rueda (ex e nal collabo a o ). Clai e Pipe (INWORK) is
acknowledged o p o iding excellen sec e a ial suppo .
