A/HRC/34/57
governments to IMF between 1998 and 2005 contained commitments to be flexible with
labour market regulation.9
15.
Early cases can be tracked to the 1950s, such as when IMF required Argentina to
control wage increases. Adjustment measures implemented during the 1980s in the context
of the Mexican debt crisis entailed a considerable reduction in both the number of public
employees and their salaries, among others. The relevant reforms ranged from minor
modifications to comprehensive reform packages with far-reaching amendments to both
collective and individual labour laws. For example, during the 1990s, Côte d’Ivoire
undertook reforms in the context of an IMF/World Bank-supported economic adjustment
programme, which included the deregulation of the rules concerning temporary
employment, dismissal and overtime, and involved the decentralization of the collective
bargaining system. Similarly, the structural adjustment programme carried out in Argentina
during the 1990s entailed individual labour law reforms, involving, for instance, extending
the duration of the probation period and collective labour law reforms, which granted firmlevel agreements priority over sectoral agreements.
16.
In recent years, austerity-driven labour law reforms have remained a widespread
trend. No fewer than 89 countries implemented such reforms between 2010 and 2015 and
more than half (49) of them were implemented in developing countries. In addition, 130
countries had reportedly implemented or were contemplating cuts in or caps on publicsector salaries, more than two thirds (96) of which were developing countries.10
Table 1: Austerity-related labour law reforms between 2010 and 201511
Others
Highincome East Asia
countries and Pacific
Eastern
Europe/
Central Asia
Latin
America/
Caribbean
Middle East/
North Africa
South Asia
Sub-Saharan
Africa
Number of austerity-related
labour law reforms
40
9
12
11
6
3
8
Number of cuts in or caps
on public sector wages
34
18
17
14
8
7
32
17.
In the context of the eurozone crisis, labour law reforms have been particularly farreaching. Crisis-stricken eurozone countries have notably adopted legislation to reduce the
economic costs of laying off workers. This was done through measures such as cutting
severance pay, shortening notification periods, lowering the protection against unfair
dismissal and easing the rules on collective redundancies, among others (see table 2 below).
18.
Labour law deregulation has also been promoted in the context of international
financial assistance by IMF to Morocco and Tunisia. These cases are interesting as IMF and
the World Bank had changed their discourse towards social inclusion and protection of the
poor and had become more cautious vis-à-vis their earlier austerity-driven approach.
However, in the case of Tunisia, the policies promoted by the international financial
9
10
11
6
Mark S. Anner and Teri L. Caraway, “International institutions and workers’ rights: between labor
standards and flexibility”, Studies in Comparative International Development, vol. 45, No. 2 (2010),
pp. 151, 163-164.
Isabel Ortiz and others, “The decade of adjustment: a review of austerity trends 2010-2020 in 187
countries”, Extension of Social Security Working Paper, No. 53 (ILO, Columbia University and The
South Centre, 2015), pp. 12-13. The analysis therein draws on 616 IMF Article IV reports.
Table based on Isabel Ortiz and others (note 10 above), pp. 12-13.
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