ADVANCING THE BUSINESS CASE FOR SOCIAL DIALOGUE TO PROMOTE DECENT WORK IN ETHIOPIA’S AGRIBUSINESS SECTOR Full Time

1. Background

The International Labour Organization (ILO) has long championed the importance of social dialogue in fostering sustainable development and promoting peaceful industrial relations. Social dialogue, defined as all types of negotiation, consultation, or exchange of information between or among representatives of governments, employers, and workers on issues of mutual interest, is a cornerstone of the ILO’s approach to promoting decent work and inclusive growth (ILO, 2017).

Enterprise-level social dialogue in the African context is increasingly recognized as a vital component for fostering inclusive economic growth and enhancing workplace relations. Research indicates that social dialogue within enterprises can significantly contribute to organizational learning and innovation, particularly in social enterprises. For instance, active participation and interaction among local agents in the South Africa lead to higher levels of innovation, underscoring the importance of organizational dialogue and participatory decision-making in understanding community needs (Urban & Gaffurini, 2018).

The ILO has also advanced the conditions for social dialogue as pathways to responsible business conduct, and decent jobs. Through the ProAgro Project for promoting decent employment in agribusiness sector in Ethiopia, several successful interventions aimed at enhancing workplace cooperation have been realized through pilot implementation of some elements of the ILO SCORE ( the Sustaining Competitive and Responsible Enterprises) . This component of the ProAgro project entitled “Improving workplace standardization to enhance Productivity, safety and wellbeing of employees in Agro Processing/Agri business”. was implemented in collaboration with the Ministry of Industry’s affiliated business improvement institution, the Ethiopian Kaizen Excellence centre (KEC). The KEC has been applying the Japanese business improvement principle of “continuous improvement” for many years to support better and safer business practices in the agro-processing sector. For instance, the Kaizen principle was applied in the coffee sector resulting in a 30% increase in production efficiency and increased employee satisfaction (Intellcap, 2017).

It was therefore prudent to leverage an existing capacity within the Ethiopian Industrial sector to advance the business Case for social dialogue and workplace cooperation. The reason for this is to address persistent challenges associated with the promotion of peaceful industrial relations due to the sometimes-divergent perceptions among workers and employers about “dialogue” in the workplace and how to approach it. Private businesses create jobs but depend on empowering their employees through mutual engagement for their businesses to flourish. From this business perspective, social dialogue is better adapted for the mutual benefit of both employers and workers.

This Study is therefore aimed at assessing the lessons learnt from the ProAgro project Implementation of the ILO SCORE with the KEC combination of its business efficiency concept of “continuous improvement based on cooperation and commitment” for 20 Enterprises in the agro-processing sector. These initiatives have made positive impacts on organizational performance by enabling industries to adapt the social dialogue as a business practice

CONTEXT

The Ethiopian agribusiness sector promotion is at cross-roads. There is the urgency to tap full benefits of its participation in the growing international trade but obliged to ensuring adherence to due diligence in all its forms in production, labour and supply chains. The Government Ministry of Labour and Skills is currently advocating productivity through work ethics. The agro-processing sector, in particular the coffee sector and food processing sector are the priority to promote green production, good labour standards, job protection and productivity. The interests of both workers and employers converge on these objectives. However, studies have shown that in Ethiopia, the lack of consistent stakeholder engagement and differing cultural attitudes towards management-worker relations have posed significant barriers to stable business growth and jobs security and productivity. (ILO, 2017a, 2017b). Studies have also alluded to lack of capacities in the labour movements, coupled with weak engagements among the tripartite constituents (Government, Trade Unions and Employers) for the absence of consensus on approaches to social dialogue to address needs for growing the sector, promoting better wages, job expansion, and labour productivity. ILO ProAgro has realized this through collaboration with the Poultry sector Employers, the food processing industry in Awassa.

The ILO ProAgro interventions enhanced the flexibility and adaptability of social dialogue, boosted employee engagement and satisfaction through continuous feedback and inclusive decision-making, and promoted skills development for greater innovation. Company recognition has also been realized through feedback, investment in labour skills development and absorption of talents. There has been an uptake of internal recognition of talents as a result of cooperation and dialogue mechanisms initiated in 6 agro-processing companies under the ILO ProAgro project leading to better wage and incentives setting.

The 2022 Ethiopia’s Better Work report documented the experience from Ethiopia’s Better Work intervention in the textile and apparel sector shows a continuous improvement in regular social dialogue between workers and management in beneficiary enterprises. The intervention has encouraged social dialogue between workers and management, improving workplace issues and cooperation challenges through the several advisory services implemented at an enterprise level. It has helped to establish occupational safety and health (OSH) committees in beneficiary enterprises with equal representation of workers and management. The intervention equips these committees with tools and methods to perform self-diagnosis and risk assessments, among other tasks, which were not available in most factories prior to the intervention. Additionally, the intervention facilitated the establishment of trade unions by providing support and organizing various meetings with key stakeholders, thereby empowering workers to have a genuine voice. The ProAgro, has replicated these experiences in the agro-processing sector.

Sectoral social dialogue (SSD) has emerged as a significant mechanism for fostering cooperation between social partners across various industries in Europe. The European Sectoral Social Dialogue (ESSD) has evolved over the past few decades, particularly following the establishment of Sectoral Social Dialogue Committees (SSDCs) in 1998. These committees have been instrumental in facilitating discussions and negotiations among employers and trade unions within specific sectors, leading to the development of framework agreements and joint texts that address sector-specific issues (Bechter et al., 2012; Perin & Léonard, 2011; Degryse & Pochet, 2011). Research indicates that sectors characterized by greater homogeneity and organizational strength tend to produce more effective outcomes in terms of agreements and collaborative texts, highlighting the importance of sectoral dynamics in the effectiveness of SSD (Bechter et al., 2012; Degryse & Pochet, 2011; Bechter et al., 2017).

Despite the progress made, challenges persist in the implementation and follow-up of SSD agreements. The transition from traditional lobbying documents to more binding commitments reflects a shift towards a more structured form of governance within the ESSD framework (Degryse & Pochet, 2011; Weske et al., 2014). Nonetheless, as the landscape of industrial relations continues to evolve, understanding the nuances of sectoral social dialogue will be crucial for fostering effective collaboration among diverse stakeholders across Europe.

In the context of Sub-Saharan Africa, the landscape of social dialogue is markedly different, often characterized by informal arrangements and varying degrees of engagement among social partners. The informal sector, which encompasses a significant portion of economic activity in the region, presents unique challenges and opportunities for social dialogue. Adams et al. (2013) emphasize the importance of enhancing skills development within this sector to improve economic performance and address the informalization trends exacerbated by globalization (Adams et al., 2013). Moreover, the role of public-private partnerships (PPPs) in sectors like water supply has been scrutinized, with studies indicating that while PPPs can offer innovative solutions, they often face significant implementation challenges due to inefficiencies and lack of commitment from stakeholders, as noted by Marson & Maggi (2017) and Tariq & Zhang (2021). This highlights the need for tailored approaches to social dialogue that consider the specific socio-economic contexts of Sub-Saharan African countries.

2. Objectives of the consultancy service

The study will delve into the changing trends in approaches to social dialogue and how the application of SCORE and kaizen enhances a bottom-up information flow through the participation of everyone, encouraging consensual decision-making, open communication, and cooperation. The question then becomes whether the extent to which these interventions facilitate the development of modern social dialogue within a firm is worth addressing.

General objective

The study aims to assess the role of SCORE and kaizen interventions to create a business case to advance social dialogue and ultimately enhance the performance and productivity of beneficiary organizations. It is also to assess the impact of the transition from classical to modern social dialogue facilitated by SCORE and Kaizen interventions and how its effectiveness and success can vary based on implementation fidelity and contextual factors (Smith, 2020; Johnson, 2019). Therefore, the study will attempt to understand how these scientific management methodologies enhance workplace cooperation and modern social dialogue and how the social dialogue in-turn improves performance and productivity.

Specific objectives

These are the primary objectives of this study.

• To understand how the SCORE and Kaizen interventions help organic social dialogue to develop in a firm looking at the management, workforce and organizational culture.
• To evaluate the impact of SCORE and kaizen on workplace cooperation development, trust building, and improve transparency and inclusive decision-making processes between top management and employees.
• To investigate the efficacy of SCORE and kaizen in establishing conflict resolution and grievance redressing mechanisms, while reducing their impact
• To investigate how cooperation leads to better development of social dialogue.
• To pinpoint the forms of cooperation that industries have implemented and how this influences the various aspects of social dialogue.
• To understand the nature and types of social dialogue that enhance better business performance and boost the productivity of beneficiary firms.
• To provide practical recommendations on the sustainability of SCORE and kaizen interventions to build a business case for advancing modern social dialogue through improved workplace cooperation and bottom-up approaches that lead to better performance and productivity.

3. The scope of work

The scope of this study primarily focuses on investigating the effect of SCORE and kaizen interventions on the nexus among workplace cooperation, social dialogue, business performance, and workforce productivity in agribusiness. The ultimate goal is to demonstrate the economic benefits of promoting and maintaining contemporary social dialogue in agribusiness, and to initiate policy discussions around this topic. The study aims at carrying out on 20 agro-processing (census) SCORE and kaizen beneficiary companies, which are geographically dispersed into Amhara, Oromia, Sidama and Addis Ababa regions.

The national consultant is responsible for designing the main body of the questionnaire to collect experiences and opinions on various aspects of the interventions. These themes include performance and productivity, workplace cooperation, and social dialogue, which are the key outcome indicators (KOIs) of the interventions. Therefore, the primary areas of inquiry will center around the following topics:

• How the SCORE and Kaizen interventions enhance the development of organic social dialogue in a firm?
• What is the impact of SCORE and kaizen on workplace cooperation, trust building, improved transparency, and decision-making?
• How do SCORE and kaizen improve transparency and trust between management and employees?
• How do SCORE and kaizen impact communication channels within organizations between management and employees, and among employees themselves?
• How effective are SCORE and kaizen in establishing and addressing conflict resolution and grievance mechanisms?
• How does workplace cooperation affect social dialogue development in a firm?
• What is the nature and type of social dialogue that leads to improved performance and productivity?
• Is the improvement in performance and productivity the result of implementing this type of approach to social dialogue, and vice versa?

1. Methods

The study anticipates using a postpositivist method (mixed-methods approach) to achieve the objectives outlined in the scope of work, combining qualitative and quantitative instruments to reach better realities.

Reporting format

The final report format will have the following format, divided into necessary sub-sections.

• Executive summary
• Background and objectives
• Methodology
• Analysis and Findings
• Conclusions and Policy recommendations

Deliverable and time frame

The duration of the consultancy is a total of 40 working days spread across February 15- May 15, 2025 (with 10 days dedicated to presentations, validations and final report)..

The primary deliverable for the study will be as follows:

• Inception Report:
  • Deadline: Within the first week of the project start date.
    • Deliverable: Submission of the Inception Report, detailing the methodology, work plan, and timeline for the project.
    • Payment: 40% of the total budget will be released upon submission and approval of the Inception Report.
  • Draft Report:
    • Deadline: End of the second month.
    • Deliverable: Submission of the Draft Report, covering preliminary findings and analysis for review and feedback.
    • Payment: 40% of the total budget will be released upon submission and approval of the Draft Report.
  • Final Report and Dissemination Workshop:
    • Deadline: End of the second month.
    • Deliverable:
• Presentation of findings at a dissemination workshop.
• Incorporation of feedback from the workshop.
• Submission of the Final Report, reflecting the final analysis and recommendations.
  • Payment: 20% of the total budget will be released upon submission and acceptance of the Final Report and after the dissemination workshop.

1. Completion: The project will be considered complete after the final report submission and acceptance by the commissioning organization.

Supervision and Reporting

The National consultant will report and work under the direct supervision of the CTA of the Pro Agro Project ILO Addis Ababa CO. He/ she will also coordinate closely with the National Project Coordinator (NPC) Employment and Skills development of the ProAgro Project.

Partnerships Approach

The Consultant(s) will coordinate this study with the Confederation of Trade Ethiopia Unions (CETU) and identified sectoral Associations in consultation with the project team.

Qualification for the individual consultant

The individual consultant needs to have a minimum of an advanced university degree in development studies, industrial relations, labour economics, sociology, social work and related fields. The consultant should have extensive experience in in organizational behavior, human resources, and performance management and productivity.

The ideal candidates for the consultancy service should also possess:

• aprofound experience in the sector is required, with a strong preference for candidates who have worked on projects involving labour issues such as social dialogue, industrial relations, industry development, private sector/ enterprise development, and productivity interventions.
• strongresearch capacity with track of record.
• strong communication skills and the ability to engage with diverse actors including government agencies, trade unions, employers’ associations, and enterprises are essential.

Evaluation criteria

The submitted proposal from the prospective consultants will be evaluated as per criteria set below.

Evaluation Criteria/profile of a consultant

Maximum score

1. Qualification of the individual consultant

The individual consultant needs to have a minimum of advanced university degree in relevant field as described in the ToR above 5

Understanding of labour issues with the focus on social dialogue, industrial relations, and productivity interventions in the project areas. 10

Proven experience in carrying similar assignments and verified sampled work annexed/ share the link. Focus will be on relevance, reporting skills and quality of past work and topics/sector covered. 25

Maximum Points for A 40

1. Proposed approach to deliver the objectives of the ToR’s

Applicant demonstrates (via submitted technical proposal) their clarity on understanding the objectives and scope of the assignment through detailed descriptions of the assignment its objectives and relevance to the intended use 30

Applicants demonstrate (through the submitted technical proposal) a methodological approach fit to meet the intended objectives as the ToR. Data collection methods and tools, consultative processes and approach, sources of data, sampling, and analytical framework. 30

Maximum point for B

60

Total (A+B)

100

Maximum threshold for technical proposal to be considered for financial evaluation 70

References

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(4) Tanaka, H. (2018). Kaizen: The Key to Japan’s Competitive Success. Harvard Business Review, 96(2), 112-120.

(5) Nguyen, T. (2020). Continuous Improvement in Manufacturing. International Journal of Production Research, 58(7), 2025-2040.

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(7) ILO, (2017). Social dialogue: Promoting sound governance, inclusive growth and sustainable development. https://www.ilo.org/sites/default/files/wcmsp5/groups/public/@ed_dialogue/@dialogue/documents/genericdocument/wcms_172420.pdf

(8) ILO, (2019). Social Dialogue: Key to Achieving the 2030 Agenda and its Sustainable Development. (https://www.ilo.org/resource/article/social-dialogue-key-achieving-2030-agenda-and-its-sustainable-development

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Tagged as: Ethiopia, International Labour Organization