Preface

I submit this report in accordance with the resolution adopted by the International Labour Conference at its 66th Session (1980). 1 As for the previous two years, I decided that it should be prepared following high-level missions to Israel and the occupied Arab territories and to the Syrian Arab Republic in order to make as full an assessment as possible, in the prevailing circumstances, of the situation of workers of the West Bank, including East Jerusalem, the Gaza Strip and the Golan. This reflects the great importance our Organization attaches to the rights of workers in the occupied territories and the appreciation our constituents and others have indicated for our close attention to this situation.

The Governing Body of the International Labour Office and the Conference have seen scope for the ILO to play a constructive role in the region in alleviating the difficulties faced by working women and men and their families and in contributing to peace and security. This year’s report provides a factual assessment of the economic and social circumstances of workers of the occupied territories at a time of continuing tension and conflict. It also offers some proposals on how the ILO, within its means of action, could contribute to easing these difficulties and, in doing so, make a modest contribution to building the economic and social foundations for peace.

The report makes for sobering reading. The situation prevailing in the occupied Arab territories continues to be a source of tension in the region and beyond: this at a time when all available energies and resources need to be harnessed for dialogue to improve the overall political, economic and social conditions in the region. All of us are aware of the restrictions, security measures, acts of violence and impositions that afflict people in the occupied Arab territories. This report goes behind the headlines to examine the impact that the heightened state of tension in the territories has on the daily life and work of Palestinian women and men and their families, and on their institutions. It is no consolation for them to observe that their near neighbours, Israeli workers and their families, are living through times of great difficulty in their own way, and many fear further acts of violence against them.

The reality of life in the territories is one of strangulation of the economy, with consequent far-reaching social impacts. Poverty continues to grip Palestinian communities, relieved only by large-scale international assistance. The report documents in detail the many obstacles Palestinians face in trying to earn a living and support themselves in dignity and independence. It also shows the extraordinary resilience of the human spirit in overcoming the barriers to a normal life to make a space for physical and mental survival. I have placed special emphasis this year on the gender dimensions of the situation of workers, and the report highlights the role of Palestinian women in holding together families and communities through these very dark times.

The fragile situation described in last year’s report has changed very little. A few economic indicators have improved slightly since last year, when tensions were at a very high point. This is no comfort however to Palestinian workers and employers endeavouring to work normally in abnormal circumstances. Restrictions on the movement of Palestinian workers and the goods and services they produce are pervasive. The delays, increased costs and loss of earnings that result from road closures, prolonged security checks and curfews hamper economic activity of all kinds, thus reducing family incomes. No sustained recovery of the economy is possible while this situation prevails.

Obstacles to the functioning of the economy create social tensions which in turn add to political frustration. Compounded by the lack of progress in political negotiations, the depressed state of the economy of the territories creates fertile ground for those on either side of the conflict who wish to exploit the situation to foment yet more acts of violence. The longer this vicious cycle continues, the harder it will become to reverse course and build peace and security for all people living in the region.

Special attention is given to the situation of women in the occupied territories. In spite of high educational attainments, women remain marginalized in the labour market. They nevertheless bear the brunt of the crisis and are central to the coping strategies devised by families and communities.

The report documents with hard statistics the economic and social situation in the West Bank, the Gaza Strip and the Golan. But the mission also heard many personal stories that illustrate the urgency of finding solutions to the conflict. The report requests members of governments, and employers’ and workers’ organizations worldwide, to listen to and understand the plight, but also the aspirations, of the workers of the occupied territories and their families. All women and men in the region, as indeed anywhere in the world, have the right to live in peace and security so that they can work productively and provide for themselves and their families.

The Road Map to peace presented last year by the Quartet has yet to deliver on its promise to the Palestinian and Israeli peoples, of two States living side by side in peace and security. This can only be achieved, as restated recently by the United Nations Secretary-General, through a comprehensive political settlement. Without such a settlement, sustained economic and social recovery is inconceivable. But political negotiations cannot be separated from socio-economic security. History has taught us many times that security in one country cannot be built on creating insecurity in another. We in the ILO have a duty to do what we can to contribute to a peace settlement within our mandate. Ensuring that the grave situation of workers in the territories is known and understood is one small but important step. Promoting social dialogue between Israeli and Palestinian workers and employers is another. The conclusions to this report set out several practical proposals, including measures needed to fully activate the Palestinian Fund for Employment and Social Protection set up last year.

A solution can only be found as part of negotiations and dialogue; political dialogue, social dialogue, citizens’ dialogue. To fulfil one’s potential in life, have a decent job to sustain a family and see one’s children through education are the common aspirations of people everywhere, whatever their religious faith and national origin. The Israeli and Palestinian peoples share this aspiration.

The parties to the conflict have placed confidence in the ILO and its procedures. This not only does credit to our Organization, it also encourages us to continue and, if possible, expand our work in the areas seen as essential to the situation of working women and men and their families in the territories. Our services in the fields of employment and enterprise development, social protection, fundamental principles and rights at work and social dialogue are important to the population of the occupied Arab territories today and for their state-in-the-making.

The principles of social justice which inspired the founders of the ILO after the Great War 85 years ago remain as relevant as ever today to the search for peace in the Middle East. When the foundation stone of the first lakeside headquarters of the ILO was laid, a scroll with the following motto in Latin was placed under it: “If you seek peace, cultivate justice”. Let us continue this work and step up our efforts to provide practical assistance, remembering the values and principles that are always and everywhere the foundations of lasting peace.

May 2004.
Juan Somavia,
Director-General.

1 Resolution concerning the implications of Israeli settlements in Palestine and other occupied Arab territories in connection with the situation of Arab workers.

Contents
Preface
Introduction
I. The political context: Uncertain prospects for peace
II. Constrained economic growth, labour markets and occupation
III. Low employment and high poverty incidence among
Palestinian women and men
IV. Social governance for a state-in-the-making
V. Ongoing ILO technical cooperation programme
Final remarks
References
Annex. List of interlocutors