1. Links between macroeconomic policy and employment promotion
(a) International context
Trade unions are calling for a more growth-orientated international framework for policy that can generate employment. Experience of both employment growth in United States and successful European countries has emphasized importance of growth orientated macro policy
At global level this also has to lead to change in the International Financial Institution's structural adjustment policies to allow more domestic demand growth in developing countries.
Better international coordination is required including coordination of exchange rate policy.
Structural Policy agenda focused on still divided debate on nature of structural policy – pressure from IMF for labour deregulation and “flexibility” are opposed by the unions proposing a “high road” to labour market reform as advocated by the ILO.
(b)Implications for China
Additional issues are posed for China as shown in the “Employment Agenda for China ” and current economic policy debate on overheating of the economy with 8%+ growth rates.
Priority is to shift to more balanced and qualitative growth that is sustainable both socially and environmentally.
Need to encourage balanced regional development both in terms of rural employment and in restructuring and diversifying mono-industrial regions.
This is also essential for reducing pressures of internal migration and the growth of informal and unprotected employment.
Experience of trade unions in OECD countries of what works for regional development in practice:
     •  local employment strategies;
     •  active participation of communities and workforces;
     •  environmental sustainability;
     •  focus on skill development;
     •  resource flows and support from central government;
     •  Infrastructure development.

2. Active Labour market polices and Labour Market Flexibility
OECD countries' own history shows the economic dangers of a “no-rules” labour market – excessive hours, low pay, low productivity, low quality production, excessive hours, industrial accidents, no security or confidence in handling technological change. Social costs and risks to political stability are obvious.
In China , particularly with the growth of the private sector, state authorities need to strengthen their capacity to introduce and enforce decent labour market regulation to protect workers against the excesses of the market system and to manage change in a socially sustainable way.
This can't be managed from the “top down” – it needs vibrant civil society and strong and effective unions based on ILO standards of freedom of association and the right to strike.
Worker's “voice” through unions at the plant and company level also has economic value. OECD work has shown that firms with unions are more likely to innovate, more likely to train, more likely to have higher productivity. World Bank study has shown that coordinated collective bargaining leads to better outcomes.
Effective social safety nets that cover all workers are essential in managing industrial restructuring – experience of one OECD country experience - Korea and the danger of informal and unprotected work growing due to lack of unemployment benefits and social protection cover.
Experience of OECD countries in shift from “passive” to “active” policies - the Danish model of “flexicurity”.
Access to the services of public employment offices by all workers including migrants is a key part active labour market policy. In several OECD countries policies are developed and managed through tripartite systems with a strong union role.

3. Implications of WTO Accession
Pace of internal change and restructuring will accelerate but more equitably distributed domestic demand growth is necessary to balance the economy. In its stage of development China should not be frightened of running a trade deficit to finance development.
At moment China is seen to be undercutting internationally recognised core labour standards – will lead to increasing trade tension and pressure to close markets to Chinese exports – respect for freedom of association is part of the solution not part of the problem.
Role of Foreign investment will continue to grow – international rules such as OECD Guidelines on multinational enterprises and ILO Tripartite Declaration can help ensure that FDI contributes more to domestic development and improve labour conditions along the supply chain. Since 2000 revision, OECD Guidelines are proving more useful tool around the world.
TUAC has produced a User's Guide to the OECD Guidelines – now available in Chinese – propose follow up work and joint work between ILO and OECD on MNE's labour practices; Relevance of other OECD instruments e.g. anti bribery convention, work on harmful Tax competition.