1970 - 1990 Protecting and promoting employers’ interests
An IOE leader referred to the 1970s as the golden age of collective bargaining. Employers’ organisations, particularly in Europe, wove a web of contractual relations with trade unions, which brought into fashion the concept of social partnership. Most notably during these two decades, IOE concentrated efforts on employer organisations under threat as well as a major expansion in the number of members, particularly from Africa. By the end of 1990, IOE had 105 member federations in 103 countries.
1977
VOICES FROM THE PAST
“The world must understand that we employers perform an important social function; that we do not aim at economic targets only, however legitimate and necessary these may be in the society of today, but that we assert also our fundamental belief in freedom to act and to create – in a word freedom to live.”
The spirit of freedom took hold in the former African and Asian colonies of European countries. Most of these young countries became eligible for membership of ILO and also of IOE. The idea for a Pan-African Employers’ Confederation (PEC) was launched at the 1973 African Regional Conference of the ILO. The purpose was to complement and support IOE’s workand bring a consolidated regional view to ILO negotiations and other IOE activities. PEC was created in October 1986 and changed its name in 2012 to Business Africa.
VOICES FROM THE PAST
“And yet, an African employer myself, I am fully aware that many employer organisations – especially in the developing countries – are still not sufficiently structured… By assisting and advising young or new employers’ organisations, IOE will become stronger, as its own representativity at the international level will be greatly increased, as well as the solidarity among employers.”
In 1978 the Nicaraguan dictator Somoza was overthrown by a democratic coalition in which the national employer organisation took part. Unfortunately, the Sandinista regime which took over was unsympathetic to an independent business community. Local employers, consisting essentially of small enterprises and plantations, managed to survive but were the target of the Government’s hostility. Their representative organisation and member of IOE, the Higher Council of Private Enterprise (COSEP), was the victim of discriminatory measures contrary to the principles of freedom of association, and their principal leaders were even imprisoned.
For the first time, IOE used the supervisory machinery of the ILO in favour of one of its own members and presented a complaint to the Committee on Freedom of Association, with 13 more following by 1990. It also lodged a formal complaint with the Conference for violation of the Conventions in force. Despite some reticence, the Workers supported these initiatives. In addition, IOE organised several visits by top-level personalities in support of the Nicaraguan employer organisation throughout the duration of the Sandinista regime, which came to an end in 1990.
1983
VOICES FROM THE PAST
“IOE has officially condemned all kinds of racial discrimination and has formally committed itself to join in the efforts to abolish apartheid, which it upholds is contrary to IOE’s basic principles in the field of human rights, including the principle itself of free enterprise.”
IOE’s South African member (SACCOLA – South African Employers’ Consultative Committee on Labour Affairs at the time) had systematically opposed apartheid. In 1982, IOE tried to organise a dialogue between African business leaders – including from South Africa - to find a way to keep the South African employer organisation part of IOE despite the withdrawal of that country from ILO. IOE members in Africa also objected to IOE’s efforts and started to resign in protest at the organisation’s perceived support for the apartheid system, with a danger that it could spread to Asia.
In the political context of ILO, a split in IOE encouraged by the communist Employers, would deal a hefty blow to efforts to defend free enterprise. The South African employer organisation failed to get the two-thirds majority to remain in the organisation and were forced to leave. They were subsequently able to resume their place in IOE in 1994 following the demise of apartheid.
1989
1989 was a monumental year as the world witnessed the collapse of communism in the countries of Eastern Europe. IOE President at the time, Johan von Holten from Sweden, assessed the historical impact of these changes on employers in the following way: “Where up to now there was totalitarian socialism masses are reclaiming not only their civil rights but also the freedom to own property and to engage in private enterprise. To us employers who have always believed in the market economy this is heartening indeed.”
Opportunities for new members that were brought about by the historical shift were a focus of IOE for the next ten years.