Uzbekistan strengthens labour rights through union-led reforms – Euronews.com

Report on Uzbekistan’s Labour Reforms and Alignment with Sustainable Development Goals

Uzbekistan is undergoing a significant consolidation of its labour policies, transitioning its trade union movement from a ceremonial role to an active participant in national reform. This report details the transformation of the country’s labour landscape, with a specific focus on its alignment with the United Nations Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth), SDG 5 (Gender Equality), SDG 10 (Reduced Inequalities), and SDG 16 (Peace, Justice and Strong Institutions).

Legislative and Institutional Framework Transformation

The Revised Labour Code and SDG 8

A central component of the reform is the revised Labour Code of the Republic of Uzbekistan, developed in partnership with the International Labour Organization (ILO) and social partners. This legislation provides a modern framework for labour relations, directly contributing to the achievement of SDG 8 (Decent Work and Economic Growth).

• Introduced clearer frameworks for employment contracts, collective bargaining, and worker protection.
• Strengthened labour inspection and monitoring systems to improve enforcement capacity.
• Formally integrated the principles of the ILO’s “Decent Work” agenda, promoting safe working conditions, formal contracts, and social protection for all workers.

Promoting Gender Equality (SDG 5)

The new Labour Code contains critical provisions that advance SDG 5 (Gender Equality) by mandating equal pay for men and women. The practical application of this principle has yielded measurable results.

1. Union monitoring in a private textile cluster near Namangan identified gender-based pay disparities.
2. Subsequent intervention and internal audits led to corrective wage adjustments for over 400 women workers.

The Evolving Role of Trade Unions in Achieving the SDGs

From Administrative Bodies to Agents of Change

The Federation of Trade Unions of Uzbekistan (FTUU) has evolved into a proactive agent for reform, expanding its influence to formalise labour relations and protect vulnerable workers, thereby supporting SDG 10 (Reduced Inequalities).

• The FTUU’s activities now cover the private sector, seasonal agricultural labour, and informal employment sectors.
• Unions are directly involved in monitoring safety standards in high-risk industries such as textiles and construction.
• They actively contribute to minimum wage policy, sectoral social agreements, and occupational health reforms.

Strengthening Social Dialogue and Partnerships (SDG 16 & SDG 17)

The Tripartite Mechanism

Structured cooperation among the government, employers, and workers has become a cornerstone of the reform agenda, reflecting the principles of SDG 16 (Peace, Justice and Strong Institutions). The National Council on Social Partnership serves as an effective, inclusive platform for tripartite dialogue on key labour issues.

Tangible Outcomes of Collaboration

This multi-stakeholder partnership, a model for SDG 17 (Partnerships for the Goals), has produced significant outcomes. In 2023, dialogue within the Council led to a 12% increase in the minimum wage for the cotton sector, directly benefiting approximately 300,000 agricultural workers as of 1 January 2024.

International Recognition and Implications for Investment

Alignment with Global Standards

International bodies have recognized Uzbekistan’s progress. The International Trade Union Confederation (ITUC) commended the country for aligning its labour policies with ILO principles, noting the essential role of unions in contributing to sustainable development. The World Bank has also highlighted the rise in wage and salaried employment and the implementation of “bold reforms” to create better jobs, reinforcing progress towards SDG 8.

Opportunities for Sustainable Business

The evolving labour framework presents opportunities for investors by creating a more stable and compliant business environment.

• A stronger labour-rights system, supported by union oversight, reduces the risks of disputes, reputational harm, and compliance failures.
• Improved formalisation and inspection mechanisms assist companies in meeting international supply-chain standards, particularly in key export sectors.
• This enhanced framework fosters a sustainable investment climate aligned with global standards for corporate social responsibility.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 8: Decent Work and Economic Growth
   • The article’s central theme is the promotion of decent work in Uzbekistan. It discusses the revised Labour Code, the ILO’s “Decent Work” agenda, safe working conditions, formal contracts, social protection, and the role of trade unions in shaping labour policy. The focus on balancing rapid economic transformation with social stability directly connects to this goal.
2. SDG 5: Gender Equality
   • The article explicitly mentions gender equality through the new Labour Code’s provision for “equal pay between men and women.” It provides a concrete example of a union intervention that led to “wage adjustments for over 400 women workers,” directly addressing economic discrimination against women.
3. SDG 10: Reduced Inequalities
   • The article highlights efforts to reduce inequalities by focusing on vulnerable groups such as seasonal agricultural labour, informal workers, and persons with disabilities. Policies like minimum wage increases, such as the “12% increase for the cotton sector,” are designed to improve the livelihoods of lower-income workers and reduce income disparities.
4. SDG 16: Peace, Justice and Strong Institutions
   • The text describes the development of effective and inclusive institutions. This is demonstrated by the revised Labour Code, “strengthened labour inspection and monitoring systems,” and the establishment of the “National Council on Social Partnership” as a tripartite platform for dialogue between the government, employers, and workers.
5. SDG 17: Partnerships for the Goals
   • The article emphasizes multi-stakeholder partnerships. The development of the new Labour Code was a collaboration between the Uzbek government, the International Labour Organization (ILO), and social partners like the Federation of Trade Unions of Uzbekistan (FTUU). This tripartite cooperation is a core element of the reform process.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Under SDG 8 (Decent Work and Economic Growth):
   • Target 8.5: “By 2030, achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value.” The article’s focus on the “Decent Work” agenda, formal contracts, and the legal requirement for equal pay directly aligns with this target.
   • Target 8.8: “Protect labour rights and promote safe and secure working environments for all workers…” This is addressed through the strengthening of labour inspection, union monitoring of safety standards in high-risk sectors like textiles and construction, and reforms in occupational health.
2. Under SDG 5 (Gender Equality):
   • Target 5.1: “End all forms of discrimination against all women and girls everywhere.” The introduction of a legal requirement for equal pay and the subsequent correction of gender-based pay disparities are direct actions to end economic discrimination against women.
3. Under SDG 10 (Reduced Inequalities):
   • Target 10.4: “Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality.” The article discusses the implementation of a minimum wage policy and social protection reforms, exemplified by the 12% minimum wage increase in the cotton sector.
4. Under SDG 16 (Peace, Justice and Strong Institutions):
   • Target 16.7: “Ensure responsive, inclusive, participatory and representative decision-making at all levels.” The establishment and functioning of the tripartite National Council on Social Partnership, where government, employers, and workers deliberate on policy, is a clear example of this target in action.
5. Under SDG 17 (Partnerships for the Goals):
   • Target 17.17: “Encourage and promote effective public, public-private and civil society partnerships…” The collaboration between the government, the ILO, the FTUU (civil society), and employers’ organisations to reform the Labour Code is a direct manifestation of this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. For SDG 8 & 5 (Targets 8.5 & 5.1):
   • The article provides a specific quantitative indicator of progress towards equal pay: the number of women who received wage adjustments due to union intervention. The text states this led to “wage adjustments for over 400 women workers.” This can be used to measure the enforcement of the equal pay principle.
2. For SDG 10 (Target 10.4):
   • The article mentions two clear indicators related to wage policy:
     • The percentage increase in the minimum wage: “a 12% increase in the minimum wage for the cotton sector.”
     • The number of beneficiaries of this policy: “benefitting around 300,000 agricultural workers.”
3. For SDG 8 & 16 (Targets 8.8 & 16.7):
   • The article implies progress can be measured by the existence and activity of institutional mechanisms. An indicator is the functioning of the “National Council on Social Partnership” as a platform for tripartite dialogue. The negotiation of “sectoral social agreements” is another implied indicator of successful social dialogue and protection of labour rights.

4. Table of SDGs, Targets, and Indicators

Source: euronews.com