The impact of economic restructuring on female employment: labor policy and interactions between government and economy. (Human rights: unfinished business).

Work is, first and foremost, a social need, the human activity that permits social reproduction through the production of the material goods and services needed for human subsistence and development. In market economies, people without material goods engage in a variety of economic activities in exchange for a salary with which to improve their quality of life. Work is therefore a social and a human right. It must be guaranteed without regard to sex, ethnicity or age, as indicated in the Universal Declaration of Human Rights, Article 23:

1. Everyone has the right to work, to free choice of employment, to just and favorable conditions of work and to protection against unemployment.

2. Everyone, without any discrimination, has the right to equal pay for equal work.

3. Everyone who works has the right to just and favorable remuneration ensuring for himself and his family an existence worthy of human dignity, and supplemented, if necessary, by other means of social protection.

States, as guarantors of social rights, dictate norms and pass laws to regulate the relationship between capital and labor through their labor policies. These regulations are affected both by workers' needs and the demands of owners and take into account the interests of society at large. The State is responsible for maintaining an equilibrium in the distribution of wealth to produce the greatest possible benefit for the entire population.

Despite the evolution of formal labor rights around the world, in many countries these rights are not observed in practice. These shortcomings may be related to economic development models, the strength of unions and workers' organizations, and the political orientations of governments. Social policy may be influenced by three-way negotiations involving public- and private-sector employers, the State and civil organizations, including unions. Now, the interrelationships among these three actors have changed; the negotiating position of the State is weaker due to its reduced role, and union influence is decreasing.

Although some greater equilibrium between capital and labor has been achieved in the last 200 years--from the time of the English Factory Act in 1803 through the establishment of Social Security Laws in many countries at the beginning of the 20th century--the last two decades have witnessed setbacks, both in legal terms and in the realities workers face. This reversal is evident in the growth of unemployment, underemployment and informal work; the decline in wages; and changes in labor and social security laws in most countries. Economic pressures have overwhelmed legal mandates, forcing readjustments which have reversed some of what workers have achieved in labor rights, most notable is the increased exclusion from the labor market.

In the midst of the current economic crisis, the laws of capital and the marketplace have prevailed, and new restrictions have been imposed on labor, both through government action as well as trade regulations and competition among countries, generating strong pressures towards greater work instability, reductions in wages and family income, and the shrinking of the social security safety net.

Social and Economic Policy

Social policy is comprised of the actions and orientations of government to optimize the utilization of the fruits of productive activity. Although the generation of wealth is obviously key, economic growth alone does not lead automatically to the strengthening of social policy or to more equitable income distribution. We can identify two contrasting concepts of social policy: a residual or compensatory approach which seeks to alleviate the imbalances or inequities generated by economic activity through reactive or temporary measures; or an institutional approach which considers social and economic forces to be inseparable and designs responses with a more long-term view of development in both areas (Silva M., 1999). This latter focus requires a planning process which integrates economic and social aspects.

In Latin America in recent years, the former outlook, a reactive and short-term approach to correct temporary damages caused by productive activities, predominates in the formulation of social policies, similar to the emergency response of governments to natural disasters. States tend to separate the economic and the social areas and to develop not social policies but mere social programs to contain the growth of poverty. In this sense, Silva Michelena (1999) asks, "Is the dichotomy between the economic and the social a classic omission, or is it in fact an ideological response forged in the heat of the structural adjustments being applied to our countries? Can we debate reconnecting the economic and the social while transnational capital rides roughshod over everything in pursuit of its economic exigencies?"

Labor policies are both social and economic issues: labor is an essential component of production, involving employment, salaries, job security; the social reproduction of the labor force involves health, education, housing, recreation and social security. Lately, however, workers' rights are weakening, and labor policies are nonexistant. During the 20th century up until the 1970s, labor rights advanced steadily towards greater job security, better working conditions, and fairer wages and social security, as stipulated in Article 23 of the Universal Declaration. These advances have been incorporated into the labor laws of many countries, and clauses against sex-based discrimination favored the entry of women into the labor force as well as providing greater access for women into formal, full-time employment, education and work-related training. Female employment increased all over Latin America between 1950 and 1980 (Bethencourt, 1991). In Venezuela, during this same period the percentage of women in the labor force increased from 17.8% to 30.5% (Acevedo, 2002).

In the 1980s, the world economic crisis hit Latin America; wages fell, and unemployment rose while economic recovery strategies oriented to favor capital began to spread. Although these strategies, based on labor flexibility and restructuring of the productive sector, achieved some improvements in productivity and GDP in the 1990s, they also had a negative effect on poverty, standard of living and income distribution, as well as deepening gender inequalities.

The Impact of Economic Restructuring in Latin America

Latin America has been described as the region most affected by the structural adjustment strategies formulated by the productive and financial centers and applied worldwide. The growth of poverty and inequality accelerated, leading to discussions of "excess" or "unnecessary" poverty. From 1970 to 1980, indicator measuring the poverty gap between the poorest 1% and the richest 1% fell from 363 to 237. However, from then on, the tendency was reversed, increasing the poverty gap indicator to 361 in 1990 and 417 in 1995, thus reversing the gains of the 1970s (Kliksberg, 1999). The world's greatest income disparities between rich and poor are found in Latin America: the richest 20% of the population receive 52.9% of all income while the poorest 40% receive 13.2% and the poorest 30% only 4.52%. The next closest region is North Africa and the Middle East with figures of 45.5%, 6.9% and 17,8% respectively (Kliksberg, 1999). Women are the most affected by poverty, and the number of households maintained by women continues to increase.

Similarly, the gap in work opportunities has increased, with youth and women the most affected by unemployment or low-quality jobs. Women tend to be concentrated in positions with unstable wages, self-employment, in salaried or hourly domestic work, or in unpaid labor. These categories do not include social security protection, leaving most women workers excluded from this benefit. In all Latin American countries, female unemployment is higher than male (Kliksberg, 1999).

Economic Restructuring and Female Employment

Structural adjustment refers to the strategies applied to increase economic growth by increasing productivity, which requires greater labor flexibility, particularly in the labor market, as well as fragmentation of labor processes and their outsourcing to small businesses or independent workers. In addition, it requires governments to meet certain conditions for new credits or investments, as well as to reduce state spending and privatize public services. The application of these formulae in Latin America has had a positive impact on the health of capital and investments and has increased productivity and GDP (Marquez and Pages-Serra, 1997), but the balance for workers has not been so salubrious: unemployment has increased, and real wages have fallen, despite lower rates of inflation.

The following data on the labor situation in Venezuela will illustrate what is occurring throughout Latin America. A study done in the Caracas metropolitan area showed that, beginning in the mid-1990s, job insecurity, informal work and poverty have increased (Cariola, et al., 1999). Nationally, twice as many women as men are seeking work for the first time. Only 11% of four-member families live on a single income; most have two or three members in the labor force (OCEI, 2000). The decrease in employment in the public sector affected women more and stimulated a move towards self-employment and informal work. Between 1990 and 1998, women's participation in the public sector dropped from 31.8% to 22.7%; similarly, female workers were displaced by male workers in the private sector, dropping from 43.3% to 39,3%, while among men, participation rose from 47.7% to 52.3%. Self-employed women in the work force rose sharply from 19.2% in 1990 to 35% in 1998, while men remained more or less stable, 24.8% to 28.2% (Acevedo, 2002).

Unemployment among women has increased since 1997 (Table No 1), even though the average educational levels of women in the labor force are higher than those of men. Among both working and unemployed women, more women than men have university degrees or advanced technical training, both in relative and absolute terms (OCEI, 2000). Clearly, raising technical levels alone does not solve unemployment.

All this shows the negative impact of structural adjustment on the labor situation of women, the tendency toward greater instability of female employment and increased deterioration of their living conditions. Bethencourt (1991, p. 135) states in this regard that:

   "Women, especially mothers, increase
   their contribution to meeting
   basic needs by intensifying their
   work days, doing several jobs at
   once and trying to make more efficient
   use of household resources.
   This generally means that women
   wear themselves out physically
   and mentally."

Women's Labor Rights

The labor situation described here applies to the entire region; for workers in general and for women in particular, it is consistent with the description of world employment in the 1999 ILO report (ILO, 2000).

   "Over the past twenty years, women
   have provided the bulk of new labor
   supply in developed and developing
   countires alike.... Academic performance
   by itself has not translated
   into correspondingly equal employment
   and training opportunities in
   the labor market.... The prevalence
   of part-time and temporary work--considerably
   more common among
   women than among men--has also
   increased in recent years.... Women
   provide up to 80% of the labor force
   in export processing zones ... where
   the quality and stability of jobs is
   generally poor.... The trend towards
   downsizing the public sector has
   had a major negative impact on women
   workers.... Women are much less
   likely to receive employer-funded
   training than men ..." (ILO, 2000).

In addition to the generalized precariousness of employment affecting all workers, de facto discrimination against women continues to exist even though labor laws may prohibit gender-based discrimination. Laws against discrimination are not enough to overcome the disadvantages faced by women in the labor market, emphasizes the ILO (2000) in its report recommending "affirmative action and equal opportunity programs as well as anti-discrimination laws." But these policies do not emerge from the goodwill of governments or the simple recommendations of international organisms; they require strong civil organizations of women, unions, etc., to promote them and monitor their fulfillment.

Combining Political Will, Organization and Permanent Pressure

In Venezuela, the women's movement organized in the Coordinadora No-Gubernmental de Mujeres (CONG, Women's Non-Governmental Coordinating Committee), a coalition of more than 30 women's organizations of diverse political stripes, has led important struggles to modify and create laws and programs at crucial political junctures. Despite its diversity, the Venezuelan women's movement has united to promote women's rights. In addition, gender studies centers were established in the 1990s in the main universities to keep the research and discussion agenda current.

In this context of activism, the following laws and programs related to the labor policies towards women were implemented from 1990 on.

* Work and family: Title VI of the 1990 Labor Law, subtitled "Labor protection for maternity and the family," guarantees job security for pregnant women for one year after childbirth, the expansion of pre- and postnatal leave from 12 to 18 weeks, two hours of leave per day for breastfeeding for the first six months of the newborn's life, and workplace childcare in companies with more than 20 employees. Critics of the law note that "family protection" was limited to motherhood, with no mention of fatherhood or parenthood which would include the shared responsibility of fathers, nor provisions for paternal leave. Since pregnancy, childbirth and breastfeeding require more commitment from women, the bias of these protections could lead to exclusion.

* Right to non-discrimination in employment: In 1993, the Law on Equal Opportunities for Women was approved to guarantee women the full exercise of their rights. Two of its articles refer to labor rights:

Art. 14. To provide economic and social security to the family of the working woman, the National Executive will establish a gradual policy of family support for her dependents. Similarly, the Labor Ministry will promote projects aimed at improving the conditions of women in the labor force and guaranteeing equal opportunities for women's entry into the labor market.

Art. 39. For women to achieve personal development and to participate fully in the country's development without the burden of a double and triple workday, the State and the private sector will promote services designed to fulfill these objectives through the following actions:

"Establish a system of socio-domestic services in urban and rural communities for the care, education, feeding and recreation of the children of employed women, including a support structure to alleviate their domestic tasks comprised of a network of communal washing and ironing centers, public kitchens and consumer cooperatives, among other services."

* Social security for homemakers: Article 88 of the National Constitution approved in December 1999 recognizes the economic value of domestic labor, the right of homemakers to social security, and the equal rights of men and women to join the labor market. Similarly, the Constitution incorporates the concept of paternity with its attendant rights and responsibilities.

Art. 88. The State guarantees equality and equity between men and women in the exercise of their right to work. The State recognizes domestic work as an economic activity which produces wealth and social welfare. Homemakers have the right to social security.

Art. 76. Maternity and paternity are fully protected, independent of the marital status of the mother and father....

Creation of the Women's Development Bank: In March 2001, the Women's Development Bank was created with the objective of democratizing credit and combating poverty. This micro-financing institution targets "the poorest among the poor," combining credits with non-financial services in training and technical assistance. The productive areas eligible for loans are: manufacturing and crafts; small-scale agriculture and livestock raising; services; and retail sales. It promotes the creation of small cooperatives of up to nine women, but the loans are awarded individually, beginning with small annual sums of 300 to 400 thousand bolivares (US$250-420 at current rates) at very low fixed interest rates (12% annually or 1% per month). These credits can be renewed and increased progressively up to ten times their original value, as long as repayments are met (Castaneda, 2002). The producers' cooperatives can increase their capital, depending on the number of members. So far, the experience has been a success, with "10,039 minicredits awarded as of June 2002, for a total of 4.7 billion bolivares (approximately US$50 million) in both urban and rural sectors, including indigenous women." (1)

Agenda for Labor Policy on Women

An agenda for the design of labor policy for women should be based on the follow aspects:

1. Work is a central aspect of women's lives. Women have always engaged in economic activities. But although the supply of female labor is increasing, work opportunities for women remain deficient both in quantity and in quality, and often the jobs they can get do not correspond to their training. We cannot continue to consider women as a secondary or complementary labor force. Most households now count on the income of two or more workers, and the contribution of women to family maintenance is often equal to that of the man. In addition, the number of women heads-of-household is on the rise.

2. Work is a basic social right for women. It is not enough to establish equal job opportunities for women. Given the reality of discrimination against women in the job market, pro-active solutions are required, including quotas in the better-paid sectors in which women are underrepresented, even when they have better qualifications. The ILO (2000) recommends "affirmative action and equal opportunity programs, as well as anti-discrimination laws" and "ensuring access to new jobs based on new technologies."

3. Women are both mothers and workers, Because the productive and reproductive roles of women are superimposed in our society, two types of actions are required: shared responsibility of men in family affairs and domestic tasks must be encouraged; and family support services must be developed to facilitate women's access to formal work.

4. Dignity for Women's Work. To eliminate the exploitation of women's free productive labor, wages should be paid in those jobs undertaken by women in the production of public or private goods and services. All those services considered voluntary or family-related should be elevated to the category of a job. The recovery of the economic value of the work of women is an ethical mandate.

5. Given the large number of women workers engaged in domestic service in Latin America, this branch of work must be covered by labor and social security laws.

6. Equal opportunities for work for women in hygienically appropriate conditions must be guaranteed, and work conditions in "pink-collar" occupations improved, including better salaries.

7. Fair Wages. Wages policy must ensure fair pay for women's work.

8. Inspection Office for the Woman Worker. A women's section should be established in the Work Inspectorate to oversee the fulfillment of laws and regulations that guarantee equity in the workplace to women in hiring and job stability, access to training and fair pay.

9. "Governments, especially Labor Ministries, should incorporate policies with a gender perspective and take actions to favor women workers, including priority interventions in productive areas where women predominate which expose them to specific risks and diseases." (Lima Declaration, 2002).

Table No 1

Unemployment Rate by Sex
Venezuela, 1990-2000.

YEAR        WOMEN         MEN

1990         09.2        11.6
1993         05.6        07.4
1997         14.7        10.6
2000         14.3        11.5

Source: From work force indicators published
by OCEI (1990, 1993, 1998,
2000), Caracas.

Note

(1.) Information provided via e-mail by economist Nora Casteneda, president of Banmujer.

Bibliography

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--(2002b). "La Precarizacion del trabajo de las mujeres en Venezuela: coyuntural o estructural?" in Debate Abierto (Caracas) vol. 7, no. 18, pp. 37-45.

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The author is a professor-researcher at the Public Health Department of the Center for the Study of Workers' Health, Nucleo Aragua, Universidad de Carabobo, Venezuela.