Industrial relations in micro and small enterprises

Abstract

This working paper offers a global review of industrial relations within micro and small enterprises (MSEs), focusing on the collective representation of workers and employers, collective bargaining, and legal frameworks. MSEs and the self-employed account for 70 per cent of global employment, largely in the informal economy, and face challenges such as the limited reach of labour law and weak industrial relations mechanisms. The paper highlights the scarcity of research on industrial relations in MSEs and makes recommendations for further research in this area. It outlines policy recommendations for governments, employers’ organizations, and trade unions, emphasizing the need for inclusive labour laws and strengthened industrial relations as important pillars of a conducive environment for sustainable enterprises. Overall, the working paper underscores the importance of collaborative efforts and tailored support to strengthen the role of industrial relations in fostering decent work in MSEs.