Ensuring decent work in global supply chains via due diligence and the promotion of international labour standards

The Joint Programme promotes decent work and social justice in Latin America and the Caribbean by supporting the transition from the informal to the formal economy. It focuses on increasing productivity and improving working conditions in prioritized economic sectors, value chains, or clusters. The initiative is aligned with the ILO’s Regional Strategy for the Formalization of Informality (FORLAC 2.0) and has been developed in collaboration with the team of the Productive and Enterprise Development Division of the Economic Commission for Latin America and the Caribbean (ECLAC), and the Technical and Sectoral Analysis Directorate of the Private Sector Vice-Presidency of the Development Bank of Latin America and the Caribbean (CAF). It is also aligned with the European Union's due diligence standards, fostering responsible business conduct and convergence with high labour standards. The programme addresses structural barriers to formalization, such as low productivity, weak institutional coordination, and limited access to business development services. It supports the design and implementation of integrated sectoral strategies through social dialogue, inter-institutional coordination, and innovative tools for training and business advisory services. Special attention is given to micro and small enterprises with potential for formalization, known as “transitional MSEs,” and to the development of inclusive and sustainable value chains. Key interventions include: (1) strengthening the capacity of ILO constituents to prioritize sectors and design formalization strategies; (2) implementing cost-effective and scalable solutions to improve productivity and working conditions, including digital and AI-based tools; and (3) addressing skills gaps through targeted training programmes and partnerships with national training institutions. The programme also promotes the integration of responsible business practices and environmental sustainability, contributing to inclusive growth and reducing unfair competition linked to poor labour conditions. It is implemented in selected countries across the region, starting with Peru, and coordinates with existing EU-funded initiatives to maximize impact and ensure sustainability.

Project symbol

RLA/24/05/EUR

Admin unit

RO-Latin America and the Caribbean

Start date

01/08/2025

End date

31/01/2027

Total allocation

526869

Total expenditure

Status

Active

181490

Development Partners

European Commission, DG Employment and Social Affairs

Country/Countries

Peru
Americas - regional

Outcomes

Output 9.2. Improved coherence in support and action to facilitate transition from the informal to the formal economy
Outcome 4: Sustainable enterprises for inclusive growth and decent work
Outcome 3: Full and productive employment for just transitions