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ILO Conference 1963
ILO Conference 1963

The 25 years after the end of the Second World War saw international cooperation between employer organisations broaden in terms of both membership and policies covered. From 1948, IOIE changed its name to International Organisation of Employers (IOE) in order to encompass agriculture and services as well as industry.

By 1970, the seeds planted tentatively in Turin had blossomed into an organisation influencing a wide range of ILO policies, rules and standards together with other emerging policy areas within the United Nations. By the end of this period, IOE had 87 employer organisation members in 77 countries.

VOICES FROM THE PAST

“The most important thing in this [Philadelphia] Declaration…is that it starts by insisting on freedom of association… Without liberty all is vain… It is the right…to associate and speak freely…”

Sir John Forbes Watson, Former IOE President (1932-1933) and IOE Chairman of the Executive Committee (1949-1953)
117th session of the ILO Governing Body
117th session of the ILO Governing Body, Geneva, November 1951, Employer representatives Sir John Forbes Watson UK, Mr Fennema Netherlands, Allana Pakistan

Cold-war politics:
free Employers

The Second World War solved the problem of authoritarian Governments in most of Western Europe but entrenched it elsewhere. The issue of Employers and Workers being arms of Government with no effective autonomy in countries behind the “Iron Curtain” had been emerging and came to a head in 1953 when a complaint was lodged against the appointment of the Czechoslovak Employers’ delegate, described in his ILC credentials as an “official of the Ministry of Heavy Engineering”.

The objection to the Czech government’s credentials request came from the “free Employers’ group”. This group, which comprised the majority of Employers, was defined not by its private nature but by its capacity to take decisions in full independence of government interference.

The term “communist Employer” was used to differentiate from their free counterparts.

The point of contention was not the definition of “Employers” but their freedom to constitute a representative and independent organisation.

ILO’s tripartism presupposed an industrial relations system based on the autonomy of each of the social partners. The presence of the communist Employers considerably limited the impact of the Employers’ group.

127th session of the ILO Governing Body
127th session of the ILO Governing Body, Rome, November 1954
Expanding
influence and
role

In its early years, IOE was a predominantly European organisation. Driven in part by the independence of many former colonies, membership increased markedly over the quarter century after the Second World War. By the 1960s, IOE had almost 100 members. It was becoming a truly global organisation, with a representativeness in its field of competence which has never been contested.

By 1965 members from the Employers' Group at ILO Conference came from nearly 100 countries.
By 1965 members from the Employers' Group at ILO Conference came from nearly 100 countries

But the significance of this phenomenon goes beyond mere numbers. During this period, IOE obtained category A consultative status with the United Nations. When ILO in turn established a system for recognition of non-governmental organisations with which it cooperates closely, IOE was recognised as the only Employer organisation with this status at the most complete level. The authority enjoyed by the IOE secretariat within ILO is due to its recognised function as secretariat of the Employers’ group at the Conference and on the Governing Body. This change of status was instrumental in IOE’s decision to move from Brussels to Geneva.

Promoting free enterprise

With the growth in membership and scope of action, the IOE Executive Committee decided to update the organisation’s statement of mission and fundamental principles. It is a manifesto which contains references to enduring values concerning respect for human rights, social dialogue and responsibility that find an echo in issues still relevant today.

The importance accorded in the text to the moral and intellectual fulfilment of human beings is an implicit reference to the basic rights and freedoms of individuals, including the right of free speech, the right to freedom of movement and the choice of profession, the right to form free associations in defence of occupational interests.

On 13 June 1964 the General Council adopted this new manifesto on the “basic principles of the International Organisation of Employers”.

“Private enterprise as one of the most decisive factors of economic progress and of improvement of living standards founded in the respect of the human being”.

“Social dialogue is one of the essential conditions of a free social order”.

The State should intervene as little as possible in the determination of wages and prices and “should not encroach upon the activities of the private undertaking…. State intervention in matters of production should at all times be of a subsidiary and, wherever possible, temporary nature”.

Naval Tata was a major Indian businessman and philanthropist with a marked interest in labour relations, believing that enterprises hold a special responsibility to treat their employees fairly. Through IOE, he was involved with ILO in Geneva from 1946 onwards. He was President of the Employers’ Federation of India for a quarter of a century until 1985. His comment about Employers from emerging countries becoming more vociferous in expressing their interests refers to ILO but is equally applicable to IOE.

“Delegates from Africa and Asia today are far more outspoken and yet more in tune with the rest of the [Employers’] Group”

Naval Tata
IOE President 1950-1951

ILO Conference Employers' Group, 54th session, 1970
ILO Conference Employers' Group, 54th session, 1970
1970 ILO Conference Employers’ Group
1970 ILO Conference Employers’ Group

VOICES FROM THE PAST

“My organisation firmly believes that the ILO has had – and still has – a vital and important role to play in the struggle of humanity for peace, freedom and justice. Therefore, the IOE, with the untiring assistance of its staff, regards the task of participating in the work of the ILO as a very important part of its activities.”

Gullmar Bergenström, Chairman of the IOE Executive Committee, 1969, during ILO’s 50th anniversary commemorative ceremony, ILC 1969
Gullmar Bergenström