1

Sierra Leone

Labour Market Profile

2014

This Labour Market Profile is a yearly updated report that provides a broad overview of the labour

market's situation and development. The report is based on the latest data available and following

trends. Each section has also accesses to the sources' links that can be used to go more in-depth on

selected themes. This is a revised version.

2

Sierra Leone – Labour Market Profile 2014

Executive Summary

Since the civil war ended in 2002, Sierra Leone has slowly moving forward with a democratic and economic development. Many challenges persist such as poor infrastructure, transparency in managing the country’s vast natural resources, widespread rural impoverishment, and lapses in public financial management. The government is prioritizing reforms to reduce corruption, providing free health care and improving transport, power and public health infrastructures. As a result, the country is ranked as one of the world’s top reformers by the 2012 World Bank’s Doing Business index. The country is also experienced an exploding economic growth, particularly due to commencement of iron ore production and an expansion in agriculture production. The fiscal space is likely to increase significantly in the coming years as royalties from mineral exports are expected to increase ten-fold and high real GDP is expected. Inequality remains very severe and doing business is bleak, with some improvements, though. Moreover, the country has been hard affected by the Ebola epidemic during 2014 which has created an urgent health crisis as well as a negative impact on the economy, especially in the agricultural sector. The labour market is also hit, e.g. the health sector has been colossally devastated with low morale among health workers as well as drivers can no longer commute passengers from place to place where places are quarantined. Many of the obsolete labour laws, dating back to the 1960s, are currently undergoing updates. The process is proposed to conclude at the end of 2014. So far, a new draft of the Employment Law exists. The National Employment Policy has not yet been implemented, which has compounded the labour sector. On the other hand, the minimum wage was increased almost three times from 2012 to 2014, reaching US$111 per month. There is a dissonance between the skills in demand in the labour market and those produced by existing educational and training institutions, including vocational education.

Employment information and communication are not effective due to a scarcity of employment centers. The estimated unemployment is measured at 3.4%. It is relatively low and due to a large majority of workers are absorbed by the informal economy, which represents a little more than 9 out of 10 (92%) of the labour force. Also youth unemployment is relatively low at 5%. The working youth and the more structural unemployment are much higher, though. The youth unemployment has turned into a high political priority, since it is estimated to increase sharply the upcoming years. Also child labourers are very widespread and are twice as much frequent as in the Sub-Saharan Africa on average. The trade union movement is under a fast expansion. First of all, trade unions’ paid members increased 24% from 2009 to 2014, mainly due to an influx of members from affiliated unions from the informal economy. Secondly, members from affiliated unions have demonstrated an extremely high growth of 600% on the same period, reaching 455,000 members. Trade union members to waged workers have been estimated at 39%; and seven Collective Bargaining Agreements are registered that cover 45,000 workers. A rapid urbanization is present, with many young people moving into the cities, seeking better livelihoods. With little urban job creation, most find work as self-employed in the informal economy. Also a Foreign Workers Law is planned to strengthening workers protection against trafficking and forced labour practices by recruitment and employment agencies.

A free and universal health care service was implemented in 2010. It is provided to pregnant and breastfeeding women and children under the age of five. A National Social Protection Policy was also adopted in 2011, which will have a much broader coverage, including the informal economy. Trade unions have actively been involved in the reforms. The government currently plans to implement two pilot districts for informal economy workers, but it has not yet set dates for the start.

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Contents

Trade Unions ......................................................................................................................................... 4

Trade Unions in Sierra Leone ........................................................................................................................ 5

Employers’ Organisations ....................................................................................................................... 6

Central Tripartite Structures ................................................................................................................... 6

National Labour Legislation .................................................................................................................... 6

ILO Conventions ..................................................................................................................................... 7

Trade Union Rights Violations ................................................................................................................ 8

Working Conditions................................................................................................................................ 9

Workforce ........................................................................................................................................... 10

Unemployment ............................................................................................................................................ 11

Sectoral employment .................................................................................................................................. 11

Migration ..................................................................................................................................................... 12

Informal Economy ....................................................................................................................................... 12

Child Labour ................................................................................................................................................. 12

Gender ......................................................................................................................................................... 13

Youth ........................................................................................................................................................... 13

Characteristics of the Working Age Population ..................................................................................... 14

Vocational education ................................................................................................................................... 14

Social Protection .................................................................................................................................. 15

General Economic Performance ............................................................................................................ 16

Trade ................................................................................................................................................... 17

Trade agreements ....................................................................................................................................... 17

Export Processing Zones .............................................................................................................................. 17

References ........................................................................................................................................... 18

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Trade Unions

Trade unions in Sierra Leone1

Number of trade unions (SLLC) 27

Dues (standard) N/A

Members of trade unions (paid members) 147,500

Declared trade union members share of labour force

9.0 %

Total trade union members share of labour force

25 %

Trade union members to waged workers (without informal sector unions)

39 %

Female member share of trade unions N/A

Members of affiliated trade unions from the informal economy (2014)

455,000

Number of CBAs (SLLC) (2009)2 7

Workers covered by CBAs 45,000

Share of workers covered by CBA 1.9 %

Labour force (2012) 2,344,000

Sierra Leone has some of the oldest trade union movement in Africa and the earliest strikes were recorded in 1874.

3

The Sierra Leone Labour Congress (SLLC), which was founded in 1976, is the umbrella organisation of trade unions in Sierra Leone and has 27 affiliated unions/organisations. The SLLC’s membership is increasing significantly, which is especially an influx of paid members from the informal economy. The government generally protect the right to Collective Bargaining Agreements (CBAs) in practice and is widespread in the formal sector. Most enterprises are covered by CBAs on wages and working conditions.

4 This report has registered seven

CBAs and they protect 45,000 workers. This estimates that close to 2% of the labour force are covered by CBAs. It is not higher since a very large majority of the labour force operate in the informal economy.

It has been estimated that 39% of workers in the formal economy are unionized. SLLC has an approximately 72,000 members from the formal sector and Central Confederation of Trade Unions (CCOTU) has 8,340 members. In 2009 SLLC registered 75,000 members from affiliated unions from the informal economy. It has increased enormously. In 2012, 300,000 self-employed market vendors were organised, along with 147,000 taxi “moto-bikers”. The contributors from affiliated unions pay only 100 Leones (US$0.03) per member/month. The affiliated

organizations declare a lesser number of members for paid membership, whereas their real membership is much higher. As example, the photographers’ union has some 8,000 members, but only a declared paid membership of 500. However, SLLC has noted an increase at 30% of paid members from the informal economy between 2009 and 2014, reaching almost 67,000 members.

5

Trend of SLLC members and affiliated organizations from the informal economy (IE), 2009-2014

6

Two informal traders' unions are organizing all kinds of traders in the street and in markets, hairdressers, tailors and dressmakers, among others. They are represented in all nine regions of Sierra Leone and have members at local community level across the country. It is estimated that some 75% of their members are women. Very few women are so far represented in their leading structures, but gender sensitized is integrated into all trainings for trade union leaders and representatives. Many traders migrated to the big cities to make a living. In the two traders' unions a variety of ethnicities are represented.

The Bike riders Union is mainly organizing young men, who work as taxi drivers on motorcycles across the country with a big majority in Freetown. Many of the young men are ex-combatants from the civil war (1991-2002) and most are uneducated. Many have also migrated to the bigger towns in search of a livelihood; and many different ethnicities are represented. They play a crucial role for cheap transport of people in cities where public transport is almost non-existent. The Ebola epidemic impacted on the bike riders whose operation has been limited from 7:00am to 7:00pm. They are also not left out the

116120 139120 144,120

47000 61856 66856 75000

455000 455000

0

100000

200000

300000

400000

500000

2010 2012 2014

SLLC, paid members Paid members from IE

Affiliated members from IE

5

group of affected workers in the country by the outbreak of the Ebola disease. As a result of the restriction of movement of people, from one place to

the other and the continued quarantining of places, drivers can no longer commute passengers from place to place.

Trade Unions in Sierra Leone7

Members, Dues, Collective Bargaining Agreements (CBA) and Occupational Safety and Health committees

Trade Union / Trade Union Centre

Affiliation To national trade union

centre

Declared Members

(2014)

Total Members

(2014)

Dues US$

Number of CBAs

Workers covered by CBAs

Number of OSH com-mittees at

workplaces

SLLC Sierra Leone Labour Congress 147,460 535,604 - 7 45,000 -

CCOTU Central Confederation of Trade Unions

8,340

(2011)8

- - - - -

Trade Unions

Artisans public works of services employees union

SLLC 1,600 - - - - -

Clerical banking insurance accounting petroleum union

SLLC 2,010 - - - - -

Construction workers union SLLC 1,500 - - - - -

Electicity employees union SLLC 1,200 - - - - -

Hotel food drinks tobacco entertainment workers unions

SLLC 2,100 - - - - -

Union of mass media, financial institutions, chemical industries & general workers

SLLC 500 - - - - -

Martime & waterfront workers union SLLC 1,000 - - - - -

Motor drivers & general transport workers union

SLLC 1,000 - - - - -

Municipal & general government employees union

SLLC 1,000 - - - - -

National union of civil servants SLLC 1,000 - - - - -

National union of forestry & agricultural workers

SLLC 1,100 - - - - -

Sierra Leone fishermen’s union SLLC 400 - - - - -

Sierra Leone dockworkers union SLLC 1,000 - - - - -

Sierra Leone health services union SLLC 2,010 - - - - -

Sierra Leone national seamen’s union SLLC 1,000 - - - - -

Sierra Leone teachers’ union SLLC 36,000 - - - - -

Sierra Leone union of postal & tel. employees union

SLLC 1,054 - - - - -

Sierra Leone reporter union SLLC 450 - - - - -

Sierra Leone union of security, watchmen & gen. workers

SLLC 2,500 - - - - -

Skilled & manual productive workers union

SLLC 510 - - - - -

United mineworkers union SLLC 902 - - - - -

Informal Sector Unions / Organisations-

Indigenous petty traders association SLLC 1,000 300,000 0.03 - - -

Indigenous photographers’ union SLLC 500 8,000 0.03 - - -

Sierra Leone artisanal fishermen’s union

SLLC 17,106 - - - - -

Sierra Leone traders union SLLC 3,000 - - - - -

Sierra Leone musicians union SLLC 250 - - - - -

Bike riders Union SLLC 40,000 147,000 0.03 - - -

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Employers’ Organisations

Sierra Leone Employers’ Federation (SLEF)

SLEF is the main employers’ organization in Sierra Leone. It is led by Mr. Leslie Thomas, Executive Secretary. SLEF has a relatively small membership base and collaborates with ILO for institutional development.

9 It has also collaborated with ILO, SLLC

and the National HIV and AIDS Secretariat on other occasions and is present in the board of the National Social Security and Insurance Trust.

SLEF is of the view that an employment forum is being currently discussed and can be an ideal forum to discuss wider issues in addition to the joint national negotiating board.

10

Central Tripartite Structures

Joint National Negotiating board (JNNB)

The tripartite Joint National Negotiation Board, set the minimum wages of Sierra Leone, however it has not convened for some years.

11

Arbitration and mediation

Individual grievances at workplaces are first handled by the shop steward and the sectional head, if that fails the head of Personal affairs, then the Secretary General of the relevant union. This procedure takes 13 days, if that fails the parties can report it to the Commissioner of Labour and the Minister of Labour

12

No information on the handling of collective labour disputes was available.

Other bi/tripartite organs13

- TGNC – Trade group negotiating council - JCC – Joint consultative committee - TGNC – Trade group negotiating council - JNNB – Joint National negotiating board - NASSIT - National social security and insurance

trust. - Women’s vocational training centre - National Budgetary Committee - Regulating committee on fuel and transport fares - Advisory capacity to local government councils

National Labour Legislation

Constitution

14

The constitution of Sierra Leone is from 1991, and has not been amended after the civil war. The constitution enshrines the freedom of association, health and safety at work, fair working conditions, equal pay for equal work and fair compensation.

Labour laws15

Many of the important laws regulating the labour market in Sierra Leone date back to 1960, a year

before independence from the United Kingdom. These include the Employers and Employed Ordinance and the Trade Unions Ordinance. The labour laws are currently being revised in Sierra Leone. It is estimated that the process will be concluded at the end of 2014. A new draft of the Employment Law already exists.

Several other legislations and acts exist, which regulate and set standards and restrictions for the labour market.

16

7

ILO Conventions

Ratified ILO Conventions17

Subject and/or right Convention Ratification date

Fundamental Conventions

Freedom of association and collective bargaining

C087 - Freedom of Association and Protection of the Right to Organise, 1948 1961

C098 - Right to Organise and Collective Bargaining Convention, 1949 1961

Elimination of all forms of forced labour

C029 - Forced Labour Convention, 1930 1961

C105 - Abolition of Forced Labour Convention, 1957 1961

Effective abolition of child labour

C138 - Minimum Age Convention, 1973 2011

C182 - Worst Forms of Child Labour Convention, 1999 2011

Elimination of discri-mination in employment

C100 - Equal Remuneration Convention, 1951 1968

C111 - Discrimination (Employment and Occupation) Convention, 1958 1966

Governance Conventions

Labour inspection C081 - Labour Inspection Convention, 1947 1961

C129 - Labour Inspection (Agriculture) Convention, 1969 Not ratified

Employment policy C122 - Employment Policy Convention, 1964 Not ratified

Tripartism C144 - Tripartite Consultation (International Labour Standards) Convention, 1976 1985

Up-to-date Conventions

Wages C094 - Labour Clauses (Public Contracts) Convention, 1949 1961

C095 - Protection of Wages Convention, 1949 1961 Fundamental Conventions are the eight most important ILO conventions that cover four fundamental principles and rights at work. Equivalent to basic human rights at work.

Governance Conventions are four conventions that the ILO has designated as important to building national institutions and capacities that serve to promote employment. In other words, conventions that promotes a well-regulated and well-functioning labour market.

In addition, there are 71 conventions, which ILO considers “up-to-date" and actively promotes.

Due to arrears in the payment of its financial contribution to the ILO, Sierra Leone lost since 5 June 2014 its Voting Rights in the organization’s governing bodies. However, the Conference may permit a Member to vote if it is satisfied that the failure to pay is due to conditions beyond the control of the Member.

8

Trade Union Rights Violations

The International Trade Union Confederation (ITUC) registered cases in 2013/14:

18 There was violence

against trade unionists in January 2013, when police opened fire on workers protesting against the non-payment of bonuses, for an end to racism, and improved conditions at Sierra Leone’s largest diamond mine in Koidu. Two workers were killed. Employer refusal to deduct union dues was observed in August 2013 when African Minerals Limited refuses to deduct union dues from workers’ salaries in violation of national labour laws. The Ministry of Employment, Labour and Social Security has not reacted to this violation. The Sierra Leone Seamen’s Union (SLSU) reported in May 2014 that intensive threats against trade unionists by the management of the company “Ship Management.” Workers were told they would be dismissed and blacklisted if they continued to demand the negotiation of a collective agreement. According to the U.S. Country Reports on Human Rights Practices for 2013, there were no reports of violence, threats, or other abuses targeting union leaders and members by government or employers. On the other hand, there were concerns that some union leadership did not effectively represent the interest of members. It was also noted that in some private industries, particularly the private security and domestic workers sectors, employers were known to intimidate workers to prevent them from joining a union. Since 1992, the ILO continued to observe the government’s failure to adopt specific provisions with sufficiently effective penalties for the protection of workers and workers’ organizations against acts of antiunion discrimination and acts of interference.

19

Since the outbreak of the epidemic in Sierra Leone in 2014, the mostly affected sector in terms of exposure, deaths, displacement, and stigmatization by communities is the health sector. The health sector has been colossally devastated with low morale among health workers. There are reported cases of harassment and forceful eviction from homes by landlord for being considered as Ebola virus carriers. In carrying out their work in combating the Ebola virus and care giving to infected persons, health workers are being constraint by inadequate supply of Personal Protective Equipment (PPE). Where they are being supplied, cases of substandard PPE have been reported and this has accounted for health personnel contracting the virus in the course of their duty. Hence, the high toll of death on health personnel of recent times. ILO's Committee of Freedom of Association has no Freedom of Association cases or follow-up cases.

ILO Complaints Procedure20

Freedom of Association cases (2013)

Active 0

Follow-up 0

Closed 2

However, ILO noted with 'serious concern' that the Government has not replied to previous comments and asked the Government to report on the submission of the instruments adopted by the Convention Minimum Age for Admission to Employment (No. 146) and the Collective Bargaining Convention (No. 154).

21

9

Working Conditions

Wages and earnings Monthly average and legal minimum wages

Source Current Leone

Current US$

Minimum wage (2014)

SLLC 481,700 111

Average wage in public sector (2011) LO/FTF

Council

150,000 35

Average wage in private sector (2011)

325,000 -433,000

75 - 100

Minimum wage for a 19-year old worker or an apprentice (2013) Doing

Business22

150,691 35

% minimum wage to value added per worker (2013)

0.4 %

Wage Share Unadjusted

Global Wage Database23

35 %

% of minimum wage to value added per worker denotes the minimum wage share of labour productivity. Reported as ratio of minimum wage to value added per worker in the Doing Business Report.

The Wage Share is the share of GDP that goes to wages and other forms of labour compensation. It is not adjusted for the self-employed, and can therefore underestimate the amount of GDP that goes to workers, if there are many self-employed in the economy.

The Joint Negotiation Board agreed a new minimum wage that was compared with other neighboring countries. The adjusted minimum wage, which covering all occupations including in the informal sector, was raised to 482,000 Leones (US$111) per month in June 2014. It is a wage increase at 290% since the negotiated minimum wage from 2012. As a contrast, the poverty line is at 133,000 Leones (US$31) per month.

24

In the formal sector, the negotiated wages in the public sector have previously been, on average, 2.5 times lower than in the private sector. There are currently (July 2014) ongoing negotiations of raising the minimum wage in the private sector to 500,000 Leones (US$115). Minimum wage compliance is quite difficult to monitor in the informal economy. The minimum wage is not applied frequently in this dominating 'sector' (see also the section of Informal Economy). Most workers support an extended family. It is common to pool incomes and to supplement wages with subsistence farming and child labor.

The official daily working hour is 8 hours, but in reality the average working hour are 12 hours. It is especially higher in the informal sector.

25 In addition, there is no

prohibition on excessive compulsory overtime.26

The wage share of labour is relatively high in Sierra Leone. At 35% it ranks 68 out of 108 countries and 4 out of 17 Sub-Saharan African countries, only surpassed by South Africa, Namibia, and Kenya. According to ILO’s Decent Work Country Programme, workplaces are hazardous in Sierra Leone. The working conditions and health hazards in the mines are particular dire, and the Occupational Safety and Health inspection is not functioning.

27

The Ministry of Health and Sanitation is responsible for setting and enforcing safety and health standards. It was noted that the government did not effectively enforce these standards in all sectors. Moreover, both the government and NGOs have argue that laws and standards continue to be violated primarily due to lack of enforcement, rather than the deterrent effect, or lack thereof, of the penalties. According to the U.S. Annual Human Rights Report

28,

violations of wage, overtime, and occupational safety and health standards were most frequent within the unorganized artisanal diamond mining industry. No information on working conditions in the artisanal mining sector was available, given its informal and ad hoc nature (see also the section on Trade). Violations were common in the case of street vendors and market stall workers, rock crushers, and day laborers. Many of those who migrated to Freetown to seek employment out of desperation were vulnerable to exploitation in order to earn enough for a day’s meal. There were numerous complaints of unpaid wages and lack of attention to injuries sustained on the job, but victims often did not know where to turn for recourse, or their complaints went unresolved. Credible data on workplace fatalities and accidents during the year were not available. In May 25, 2014, the government declared an outbreak of Ebola Virus Disease (EVD) in Sierra Leone. The epidemic has accounted for enormous negative impact on all facets of life and the labour market on all levels.

10

Workforce

The total population of Sierra Leone is 5.7 million and a labour force of 2.3 million persons. The young population is 63% below the age of 25 years. It is estimated that 70% are below the poverty line.

30 Men

are slightly more engaged actively in the labour market than females, except during youth, women are more active, which is mostly due to more men continue in school after primary education. Relative to Sub-Saharan Africa, Sierra Leone had a slightly smaller middle class. In 2010, 12% of Sierra Leoneans lived for US$2-4 a day and 7% for US$4-20 a day, compared to Sub-Saharan Africa where 14% lived for US$2-4 a day and 10% for US$4-20 a day.

31

The latest data for working poverty in Sierra Leone is from 2003. Slightly more working females lived for under US$1.25 or US$2 a day, but on average Sierra

Leone’s working poor were at a comparable level to Sub-Saharan Africa in 2003.

Working Poor32

Age 15+

Share of workers

in total employment

Region 1.25 US$

a day 2 US$ a day

Sierra Leone (2003) 54 % 78 %

Sierra Leone (2011) 52 % 80 %

Sub-Saharan Africa (2003)

53 % 75 %

Sub-Saharan Africa (2012)

40 % 64 %

Working poor measures employed people living for less than US$1.25 and US$2 a day, as proportion of total employment in that group.

Employment rates (%)29

(2012), Age and Sex distribution

Sex Age Employment

rate

Male & female

Total 15+ 65 %

Youth 15-24 42 %

Adult 25+ 77 %

Male Total 15+ 66 %

Youth 15-24 37 %

Adult 25+ 80 %

Female Total 15+ 64 %

Youth 15-24 47 %

Adult 25+ 73 %

65

42

77

66

37

80

64

47

73

00 20 40 60 80 100

15+

15-24

25+

Female Male Male & female

11

Unemployment

Unemployment33

(2012)

Unemployment Youth

unemployment

Total 3.4 % 5.0 %

Male 4.6 % 7.1 %

Female 2.2 % 3.3 %

Figures on unemployment from the 2012 are not particular high. But given the large informal sector and the little coverage of social security systems, they are notable. Both unemployment and youth unemployment are considerably higher for men than females.

The country is undergoing a rapid urbanization with an influx of young people into the larger cities. The urban areas are likely not able to generate the amount of employment needed, let alone in the formal sector, and lack of employment opportunities.

34

ILO estimates that 33% of the unemployed are young people.

35 About 400,000 youths are jobless

36 (not

working or studying) and the youth unemployment is projected to reach over 70% during the next five years. Thus, there is a need to create over 300,000 jobs to engage different categories of unskilled and skilled youths.

37 Youth unemployment is a high political

priority in Sierra Leone, and a National Youth Commission was created in 2009 to deal with these issues.

38 (See also the section Youth).

Sectoral employment

Agriculture is the largest sector employing about 67% of the workforce and contributing at 53% to GDP. Trade, Hotels and Restaurants has most women to men employed, but with a low contribution to GDP relative to the number of workers in the sector. The diamond and mineral mining are prominent industries in Sierra Leone. The Ebola epidemic has hard hit the tourism industry adversely. This epidemic has accounted for about 98% of checkouts in all hotels nationwide due to the cancellation of flights from and to Sierra Leone. Most road building has been suspended affecting mostly youths on basic wages.

Since 2001 the country has experienced a GDP increase in agriculture while a decrease in services.

Sector Share (% of GDP)41

28

9 9 11 13 12 11 10 8 7 8 8 13

43 41 39 36 36 36 35 35 35 36 35

58

49 50 50 52 52 53 55 56 58 56 57

0

20

40

60

80

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Industry Services Agriculture

Employment (2004)39

& GDP share (2013)40

Sector & Sex distribution – (Graph without Agriculture)

Sector Male

employment Female

employment GDP share per sector

Mining and quarrying 59,311 9,663 12 %

Manufacturing 7,397 2,015 2.1 %

Electricity, gas and water 7,104 1,243 0.2 %

Construction 28,239 10,829 1.3 %

Trade, restaurants and hotels

104,831 169,595 9.1 %

Transport and communication

14,425 1,257 4.6 %

Finance, real estate and business services

9,468 8,251 6.6 %

Public administration, education & health

54,232 26,155 4.9 %

Other services 50,914 44,707 6.9 %

Agriculture 651,245 672,128 53 %

6.9%

4.9%

6.6%

4.6%

9.1%

1.3%

0.2%

2.1%

11.6%

0% 3% 5% 8% 10% 13%

0 50,000 100,000 150,000 200,000 250,000

Male Female GDP share by Sector

12

Migration

Sierra Leone previously experienced an influx of migrants as refugees returning after the civil war, but the migration trend has changed in recent years. Now, in the period 2008-12, the net migration is -21,000, which is 1 out of every 1,370 Sierra Leonean. It is still higher than the average in the Sub-Saharan Africa.

Remittances play a limited role in Sierra Leone's economy, providing 1.6% of the country's GDP. As already mentioned, there is also a massive rural-urban migration, and it has been assessed as a negative impact on the agriculture sector’s production.

42

A review of the Foreign Workers Law is planned with focus on worker's protection against trafficking and forced labour practices.

Migration43

Net migration (2008-2012)

Sierra Leone - 21,000

Net migration to average population per year (2008-2012)

Sierra Leone - 1 : 1,370

inhabitants

Sub-Saharan Africa

- 1 : 2,838 inhabitants

Remittances received, % of GDP (2012)

Sierra Leone 1.6 %

Sub-Saharan Africa

2.0 %

Net migration is the net total of migrants during the period, i.e. the total number of immigrants less the annual number of emigrants, including both citizens and noncitizens.

Informal Economy

The formal sector is only absorbing 9% of the labour force. It was estimated in 2004 that the informal sector employs 2 million people (92%) of the economically active population, about half of whom are women. As in other least developed countries, Sierra Leone’s informal economy cuts across both the rural and urban informal 'sectors'. Among the country’s many informal 'sector' occupations, agriculture is the single largest sector employing about 70% of the rural population and is closely followed by wholesale, retail, petty trading and artisans activities. Other important informal sector occupations include mining, transport service, construction and services delivery workers, among others.

44

A survey of businesses in the informal economy show that they operate informally due to licensing and tax issues, and lack of information. The majority of completely informal businesses are not well informed about the necessary steps to become fully formal.

45

As demonstrated in the section Trade Unions, the SLLC has seen a massive increase in organizing self-employed informal workers in the last couple of years, though not within the agricultural sector. The organization has moreover provided training for the leadership of informal economy unions to develop a business plan

46 as well as implementing conferences

for informal economy workers and local authorities.

Child Labour

Working children Proportion of all children aged 5-14 Region Age Year Type Proportion

Sierra Leone47 5-14 2010 Child labourers 50 %

Sub-Saharan Africa48

5-14 2008

Children in employment

28 %

Child labourers 25 %

Hazardous work 13 %

Children in employment includes all children who conduct some kind of work, whereas child labourers is a narrower term without mild forms of work. Hazardous work is the worst from of child labour as defined in ILO C182.

Child labour is widespread in Sierra Leone. A 50% of children is involved in child labour, which is more than double the Sub-Saharan Africa's average. Child labour is more common among the poorest quintile of households (57%) compared to the richest (34%), more common the rural areas (53%) than urban (42%).

The prevalence of child labour is highest in the 5-11 age group (63%), where the concept of child labour involves more than one hour of economic work a week. Whereas it is much lower in the 12-14 age group (15%) since it is more than 14 hours of economic work. As school attendance was also higher among child labourers, it indicates that although most children do work, most is not full time and less harmful than what is common among child labourers. A Child Rights Act has been implemented, but it has received criticisms for underemphasising the responsibilities of a child.

49

There is no policy or plan specifically addressing the worst forms of child labor, but the theme is part of donor supported development programs.

13

Gender

Sierra Leone made significant progress in addressing wide-range issues to mitigate the vulnerabilities of women and girls. However, shortfalls persist, e.g. lack of funding, logistics and inadequate personnel to undertake programs as well as the existence of legal frameworks that stumble the implementation of the gender-related structural changes.

50

Women are under-represented in paid employment in the non-agricultural sector, as well as in politics and public life. Moreover, women are at the end of a segregated labour market, even more so than many other West African countries, and in general not aware of their rights and lack education and resources.

51

Trade unions have worked on gender equality on constitutions with a view to accommodating more women in union structures. It includes establishment of women's committees in the regions will enable women members to raise their concerns with the union leadership. Among others, it has been registered that the focus on HIV/AIDS under health and safety made it possible to address some issues of particular importance to women. Occupational Health

and Safety training included dissemination of information on HIV/AIDS and distribution of condoms. The National Women's Committee remains vibrant.

52

Female in management and ownership53

An Enterprise Survey reported that 8% of firms had female participation in ownership, considerably lower than the Sub-Saharan Africa's average at 29%, and that 17% of full time employees were women, which was also lower than the Sub-Saharan Africa's average at 24%.

Youth

Youth unemployment is a challenging social problem in Sierra Leone. The age group faces high rates of inactivity, underemployment and poor working conditions with long working hours and low pay. Moreover, youth have fewer opportunities for salaried employment compared with those above the thirty-five age bracket. Employment opportunities are significantly lower for youth, regardless of their qualifications. Public sector employment opportunities tend to exclude youth on the basis of age and experience.

54

A large number of ‘working youth’ in Sierra Leone live in extreme poverty and over 80% of them are unable to earn enough to lift themselves and their families above the US$2 per day poverty level. According to the post-war Truth and Reconciliation Report, the youth unemployment was a leading factor in the prolongation of the brutal ten-year conflict. In the early 1990s, young people with few job prospects joined rebel groups and engaged in criminal activities and armed conflict.

55

In 2013, Sierra Leone launched its first “Status of the Youth” report, which argues that the country is

making commendable strides to reverse negative development trends, but the structural underemployment remains quite high, also in terms of regional comparison. Youth unemployment rates of selected African countries (%)56

Youth structural unemployment has been projected to reach over 70% during the next five years. It shows a need to create over 300,000 jobs to engage different categories of unskilled and skilled youths.

57 Thus, the

government has implemented new legislation for youth-friendly initiatives that aim to provide youth development, employment, and empowerment.

8%

17%

29%

23%

30%

21%

0%

5%

10%

15%

20%

25%

30%

35%

Females in ownership Full-time female workers

Sierra Leone Sub-Saharan Africa Low income countries

5% 5%

14%

1%

21% 25%

60%

88%

46% 50% 48%

70%

0%

20%

40%

60%

80%

100%

Sierra Leone Liberia Botswana Malawi Zambia Zimbabwe

Standard unemployment Structural unemployment

14

Characteristics of the Working Age Population

Sierra Leoneans have an average of 3.3 years of schooling in total, largely because 65% of the population has never been to school. As Sierra Leone is a very poor country and has been through a decade long civil war, this is not so surprising. Due to the war, many in the age group 15-35 have no schooling.

Of those who have education it is both noteworthy and uncommon, that almost all have completed primary education, and many have begun secondary education.

There is also clear differences between the genders as women have less education than men. The graph above shows the educational attainment of all Sierra Leoneans above 25 years, therefore gives a glance of the human capital of the labour force.

Very little data exists for the enrolment rates into educations in Sierra Leone. Gross enrolment into primary education was 125% in 2011, whereas it was 99% for Sub-Saharan Africa in 2010. Gross enrolment is the ratio of total enrolment, regardless of age, to the population of the corresponding official school age. Gross primary enrolment can therefore be higher than 100% if more children enrol than are children of that age. The attendance rates in primary education are 62% and 64% for males and females respectively, and for secondary school the attendance rates are 31% and 35% for males and females.

60 Sierra Leone’s

education system does therefore suggest to be bouncing back from the civil war.

Vocational education

The latest data on vocational training in Sierra Leone is from 2001, and should be read as such. The data suggested that Sierra Leone had more students in vocational training than the Sub-Saharan Africa's average. As there is a good number of Sierra Leoneans with secondary education level, there might still be some reality to these data. It has been registered that many young people have low regard on technical and vocational education and training (TVET) and consider that the sector is using outdated equipment, poor funding for TVET programs, and the general lack of strategic thrust and quality.

The public budgetary allocation to the education sector is lowest for TVET, declining from 4.2% in 2008 to only 2% of the sector budget in 2010.

61

Vocational Training62

(2001) Pupils in vocational training Sierra Leone 21,454

Ratio of pupils in vocational student to all pupils in secondary education

Sierra Leone 13 %

Sub-Saharan Africa

6.8 %

Ratio of pupils in vocational training out of 15-24 year olds

Sierra Leone 2.4 %

Sub-Saharan Africa

1.3 %

Highest level attained and years of schooling in the population58

(2010), Population 25+, Total and Female

Highest Level Attained Total Female

No Schooling 65.1 % 74.0 %

Primary Begun 0.5 % 0.3 %

Completed 19.5 % 16.1 %

Secondary Begun 12.3 % 8.2 %

Completed 1.2 % 0.7 %

Tertiary Begun 0.4 % 0.2 %

Completed 0.9 % 0.4 %

Average year of total schooling 3.3 years 2.3 years

Educational Gini Coefficient 0.70 0.77

Primary, secondary and tertiary is the internationally defined distinction of education. In Denmark these corresponds to grundskole, gymnasium & university.

The educational Gini Coefficient is similar to the Gini Coefficient, but instead of measuring the distribution of income in a population, it measures the distribution of education measured as years of schooling among the population.59

0% 20% 40% 60% 80% 100%

Total

Female

No Schooling Primary - Begun Primary - CompletedSecondary - Begun Secondary - Completed Tertiary - BegunTertiary - Completed

15

Social Protection

Public spending on social protection schemes63

(2009)

Public social protection

expenditure, excl. health

Sierra Leonean 50.7 billion

US$ 15 million

% of GDP 0.6 %

per capita 2.7 US$

% of government expenditure

5.5 %

Public health care % of GDP 1.5 %

Health social protection coverage

% of population 0.0 %

Trends in government expenditure in health

% changes per year (2007-2011)

14.5 %

Benefits, coverage and contributions to pension schemes

64

(2010)

Social benefits for the active age % of GDP 0.2 %

Pensionable age receiving an old age pension (age 60+)

Proportion of total

0.9 %

Old age effective coverage as proportion of programs

Contributory 0.9 %

Active contributors to a pension scheme

15-64 years 4.6 %

Public spending on social protection schemes is growing. So far, the public social protection spending covers 0.6% of GDP, excluding health. It is very low also in comparison with an average at 1.8% of GDP in other African countries.

65 Public health expenditure is

also quite low, but on a noteworthy rise. The presented tables in this section moreover show huge coverage gaps, e.g. only 4.6% are active contributors to a pension scheme and 0.9% of the pensionable age receiving an old age pension. The social assistance programs are without a doubt affected by insufficient spending. In 2001 at the end of the civil war, Sierra Leone established a social security scheme and the National Social Security and Insurance Trust (NASSIT), with a tripartite board of trustees. The institution provides pensions to old age, invalidity, and survivors. NASSIT is voluntary for self-employed or informal workers. NASSIT's pension members are up 411% from 2008 to 2012, i.e. the total number of pensioners increased from 2,564 in 2008 to 10,536 in 2012. In 2010, the total number of members covered by the scheme was 164,784, with 46% from the public sector and 54%

from the private sector. In absolute terms, these numbers are still low, e.g. the public sector has close to 60,000 eligible employees. On average, each pensioner received 961,000 Leones a year (US$220).

66

Recently it was revealed that there were many shortcomings and flaws in the payment of retirement benefits to pensioners of the NASSIT.

67 The Trust lacks

a file tracking and retrieving system. A Work Injury Law exists from 1960, for formal employed persons, were the injured worker has to sue the employer for compensation. Coverage does not exist for occupational illness or for maternity leave. Few systematic health care services exist and are largely donor funded and supported by NGOs. However, a free and universal health care service for pregnant and breastfeeding and children under the age of five was introduced in 2010.

68 Some cash

transfer programmes also exist, such as the government run Social Safety Net (SSN) pilot launched in 2007. It transferred around US$125 a year to elderly and the most vulnerable, to around 16,000 households.

69

The traditional 'osusu' savings mechanisms provides income, which can be used in times of illness, unemployment or maternity. The arrangement focuses mostly on microfinance savings and credit schemes rather than broad social security overage schemes. They provide very little protection for individuals and families that face recurring life risks.

70

The rotating savings scheme operates not only among informal sector operators, but also among formal sector workers. In addition, SLLC has established relations with micro-finance institution and secured informal economy members possibility of accessing loans. The social protection programs depend heavily on external financing. It is estimated that 85% of social assistance expenditures are financed by external resources.

71 In March 2011 the Cabinet adopted a

National Social Protection Policy, which will have a much broader coverage, including the informal economy. SLLC is a strong proponent of the system and was actively engaged in policy discussions. The government plans to pilot two districts for informal economy workers, but it has not yet set dates for the start.

16

General Economic Performance

Key Facts

72

(2013 est.)

GDP GDP

per capita (PPP)

GDP real growth

HDI (2012)73

Gini Index (1989)

4.6 billion US$

1,400 US$

13.3 %

0.359 62.9

208 of 229 countries

177 of 187 countries

4 of 136 countries

The Human Development Index (HDI) measures the average of a long and healthy life, access to knowledge, and a decent standard of living. This Gini Index is measured if income were distributed with perfect 'equality', the index would be zero; if income were distributed with perfect 'inequality', the index would be 100. In terms of the ranking, the first country has the highest inequality, while the number 136 has the highest equality.

Doing business74

Control of corruption

Government effectiveness

Rule of Law

140 of 189 countries

-0.90 (2007) -1.17 (2007) -1.03 (2007)

-0.94 (2012) -1.21 (2012) -0.87 (2012)

A high ranking on the Ease of Doing Business Index means the regulatory environment is more conducive to the start-up and operation of a local firm.75 The selected Governance Indicators cover the years 2007 and 2012, and ranking from ‐2.5 to 2.5; i.e. negative tendencies below the zero mean and unit standard deviation, score negative measurements.76

Sierra Leone is at the bottom at the Human Development Index. GDP per capita measured in Purchasing Power Parity (PPP) is at also very low and is not projected to reach levels near the Sub-Saharan Africa's average. But since 2010 there has been a notable increase on the GDP per capita. It is linked up with the economic growth that escalated from 6% in 2011 to 15% in 2012 and an estimated 13% in 2013. This growth is due to commencement of iron ore production, an expansion in agricultural production, services, and construction. Capital formation also sky rocked from 10% of GDP in 2009 to 40% in 2011. However, the 2014 outlook of the economic growth has been changed due to the Ebola epidemic, reaching an estimated 2.5%. Ebola’s impact has created a budget deficit and investment funds are leaving the country.

77

In general the country has relied on its richness in natural resources and particular diamonds to grow its economy, but this has led to conflict and corruption. The inflation declined in 2012 and estimations for 2013 are 9.5%. The effect of the Ebola crisis on food

prices inflation remains ambiguous and per September 2014 it is too early to estimate. The Doing Business indicator ranks Sierra Leone at 140 out of 189 countries. As previously showed, there has been a slightly improvement in getting electricity, but the costs to get it remains very high. This is also reflected in the three governance indicators, where Sierra Leone scores low on Control of Corruption and Rule of Law, and extremely low on Government Effectiveness.

GDP per Capita (PPP), trend and forecast78

Inflation, trend and forecast79

Gross fixed capital formation (% of GDP)80

0

500

1000

1500

2000

2500

3000

200

0

200

1

200

2

200

3

200

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200

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Cu

rren

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SD

Sierra Leone Sub Saharan Africa (excl. South Africa)

-5%

0%

5%

10%

15%

20%

20

00

20

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20

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Sierra Leone Sub-Saharan Africa

1

11 12 11 10 11 10 9 9 10

24

40

15 16 16 17 16 16 18 19 20 20 20 20 20

0

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20

30

40

50

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Sierra Leone Sub-Saharan Africa

17

Trade

Trade and Foreign Direct Investment

81

2013 (est.)

Exports Imports FDI flow82

(average 2008-12) FDI Stock

1,563 million US$

1,637 million US$

333 million US$

2,394 million US$

34 % of GDP 36 % of GDP 7.3 % of GDP 52 % of GDP

Trade has become an important role in the country's economy, with exports increasing fast and has reached 34% of GDP. Imports are also on increase and are estimated as 36% of GDP. A few years back, the vast majority of export went to the European Union (EU), but it has very fast been dominated by China. Cacao beans followed by aluminium ore and glass bottles are the majority of Sierra Leone’s export products. Sierra Leone is endowed with many natural resources. Cash crops, mainly cocoa production, are more labour intensive productions. They are projected to increase.

83

More foreign companies, in particular from Europe and the USA, are investing in the extracting of natural resources, which can generate as many as 25,000 new jobs. Diamonds miners are in the artisanal sector operate largely informally, are not regulated and have no written agreements with their employers. A review estimated that there were between 120,000 and 200,000 artisanal diamond miners. The value of official exports would be much higher were it not for smuggling. The national control mechanisms have been extremely weak, and diamond smuggling has been substantial, perhaps even bigger than legitimate exports.

84

Trade agreements

Sierra Leone is part of the Economic Community of the West African States. The treaty from 1993, which was revised in 2005, contains labour provisions with cooperation regarding harmonization of labour law and social security, promotion of women’s, youth and professional organizations, and consultation of the social partners.

85

Sierra Leone is in the 2000 Cotonou Agreement on development cooperation between EU and African, Caribbean and Pacific (ACP) countries, which reaffirms commitment to ILO’s Fundamental Conventions and includes provisions on cooperation on various labour and social issues.

86

Since 2002, Sierra Leone has benefitted from the United States’ African Growth and Opportunity Act (AGOA), which is a Generalised System of Preferences (GPS). It allows duty and quota free access for some products. Sierra Leone can be removed from AGOA, if the United States deems that Sierra Leone among other human rights issues do not seek to uphold the ILO Core Labour Standards and have acceptable minimum wages, hours of work and occupational safety and health.

87

Export Processing Zones (EPZ)

The first EPZ in Sierra Leone has just recently starting to open up for companies. In 2011 the first fruit- processing plant went into production and has been expected to employ 80 workers, earning between 80 euro a month for loaders and fruit sifters and 300 euro a month for more skilled workers.

88

Sierra Leone's products share of main exports (2012)

89

Sierra Leone's main export markets (2013)90

Cocoa Beans; 19%

Aluminium Ore; 16%

Glass Bottles ;

15%

Niobium, Tantalum,

Vanadium and Zirconium Ore;

8.9%

Titanium Ore ; 6.7%

Scrap Vessels; 5.8%

Scrap Iron; 3.9%

Others; 25%

EU; 12%

US; 2%

Australia; 1% Turkey; 1%

China; 79%

Others; 4%

18

References

1 SLLC, LO/FTF Council and TUC

2 TUC, Rebuilding Trade Union Capacity in Sierra Leone - A success story, September 13, 2010

3 Mariama Jalloh, Country Report on Trade Unions and Social Security System in Sierra Leone

4 U.S. Department of State, Country Reports on Human Rights Practices for 2013: Sierra Leone

5 SLLC

6 SLLC and LO/FTF Council

7 LO/FTF Council

8 ITUC, List of affiliated organisations, 2011

9 ILO, Decent Work Country Programme, Sierra Leone (2010-2012)

10 AWOKO, SLLC Celebrates Labour Day, May 2, 2013

11 http://news.sl/drwebsite/publish/article_200520168.shtml

12 Doing Business, Law Library, Services Trade Group Negotiating Council Agreement, 2001

13 LO/FTF Council

14 ILO, NATLEX, The Constitution of Sierra Leone, 1991

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17 ILO, NORMLEX

18 ITUC, Survey on Violations of Trade Union Rights, Sierra Leone

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session (2014), Sierra Leone 22

IFC & World Bank, Doing Business 2014: Sierra Leone 23

ILO, Global Wage Database 2012/13 24 U.S. Department of State, Country Reports on Human Rights Practices for 2013: Sierra Leone 25

Ghana TUC, Anthony Baah, "Organizing the Informal Economy: Experiences and Lessons from Africa and Asia", 2006 26

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CIA, The World Fackbook: Sierra Leone 31

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http://www.nationalyouthcommission.sl/ 39

ILO, Key Indicators of the Labour Market Database 40

AEO, Sierra Leone 2014 41

World Bank, World Development Indicators 42

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LO/FTF 45

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ILO, Accelerating action against child labour, International Labour Conference, 99th

Session 2010

19

49

UNICEF, Sierra Leone Multiple Indicator Cluster Survey 2010, 2011 50

Hussaina J. Abdullah, Gender in Equality in post-2015 Sierra Leone, 2012 51

ILO, Decent Work Country Programme, Sierra Leone (2010-2012) 52

TUC, Rebuilding Trade Union Capacity in Sierra Leone - A success story, 2010 53

World Bank, Sierra Leone Enterprise Survey - 2009 54 National Youth Commission & the Ministry of Youth Employment and Sports, Sierra Leone Youth Report 2012, 2012 55

AfDB, African Economic Outlook, Sierra Leone Country Note, 2012 56

NAYCOM & MYES, Youth Development, Sierra Leon Youth Report 2012, 2013 57

AEO, Sierra Leone 2014 58

Barro, Robert and Jong-Wha Lee, April 2010, "A New Data Set of Educational Attainment in the World, 1950-

2010." NBER Working Paper No. 15902 59

Calculation from based on Thomas, Wang & Fan (2001), with data sets from Barro-Lee (2010) and Psacharopoulos and Arriagada (1986). 60

UNICEF, Info by Country, Sierra Leone 61 National Youth Commission & the Ministry of Youth Employment and Sports, Sierra Leone Youth Report 2012, 2012 62

World Bank, World Development Indicators 63

ILO, Social Protection, Statistics and indicators 64

ILO, Social Protection, Statistics and indicators 65

World Bank, Sierra Leone: Social Protection Assessment, Report No. 78195-SL, June 2013 66

SEWA News, Social Security and Insurance - The Harmony of Investment with the Public Interest, December 22, 2013 67

AllAfrica, Sierra Leone: Accountant-General Reveals Flaws in Payment of NASSIT Retirement Benefits, January 16, 2014 68

The Economist, Health care in Sierra Leone; It’s up to you, Feb 4th 2012 69

ODI, Holmes, Cash transfers in post-conflict contexts, 2009 70

ITUC-Africa, Social Protection Schemes in Africa, 2012 71

World Bank, Sierra Leone: Social Protection Assessment, Report No. 78195-SL, June 2013 72

CIA, The World Factbook, Sierra Leone 73

UNDP, Human Development Index trends 74

World Bank & IFC, Ease of Doing Business in Sierra Leone 75

World Bank & IFC, Doing Business, Methodology 76

World Bank, Worldwide Governance Indicators, 2013 77

World Bank, The Economic Impact of the 2014 Ebola Epidemic: Short and Medium Term Estimates of Guina, Liberia, and Sierra Leone, September 2014 78

IMF, World Economic Outlook Database 79

IMF, World Economic Outlook Database 80

World Bank, World Development Indicators 81

CIA, The World Factbook, Sierra Leone 82

World Bank, World Development Indicators 83

World Bank, Sierra Leone Overview 84

AllAfrica, Diamond Industry Annual Review, Sierra Leone 2005 85

ECOWAS, Treaty of the ECOWAS 86

Ebert & Posthuma, ILO, IILS, 2011, Labour provisions in trade agreements: current trends and provisions 87

http://www.agoa.gov 88

IPS, Sierra Leone: First Fruit Juice Company Adding Value to Farming, May 12, 2011 89

MIT, The Observatory of Economic complexity, Sierra Leone 90

European Commission, DG TRADE, Bilateral Relations, Statistics