Unions at the Frontline: A Transformative Report on Tackling Informality

As the 113th International Labour Conference (ILC) looms, a pivotal new report titled “Innovative Approaches Taken by Workers’ Organizations to Drive Formalization” has brought renewed focus on the role of trade unions and workers’ organizations in addressing one of the most entrenched challenges in the global labor market—informality. Published nearly ten years after the adoption of ILO Recommendation No. 204 on transitioning from the informal to the formal economy, the report presents a powerful case for worker-led action as the cornerstone of achieving decent work for all.

With over 60% of the global workforce still engaged in informal employment—lacking legal protection, social security, or access to stable wages—the need for structural change has never been more urgent. This massive segment of the labor force, often composed of women, young people, and migrant workers, remains vulnerable to exploitation and economic insecurity. The report contends that any serious effort to reverse this trend must place trade unions and workers’ collectives at the center of the solution.

ACTRAV’s Core Message: Unions Are the Change-Makers

Maria Helena André, Director of the ILO Bureau for Workers’ Activities (ACTRAV), delivered a compelling endorsement of the report’s findings, emphasizing three fundamental truths:

1. Trade unions are indispensable in ending informality. Through bold, creative organizing strategies, unions have succeeded in reaching workers in the most precarious and marginalized segments of the labor market. From street vendors and domestic workers to gig economy drivers and home-based producers, unions have not only recruited these workers but have fought tirelessly to extend social protection, raise wages, and secure safer working conditions.

2. Worker representation is more essential than ever. The report details case studies where unions have facilitated legal victories, established worker-owned cooperatives, and provided crucial services such as legal aid, education, and access to healthcare. In doing so, unions act not only as advocates but as institutions of empowerment and resilience for informal workers.

3. Collective action is the only path forward. André underscored the need for international solidarity, coherent policy frameworks, and sustained political will to ensure labor rights are upheld globally. “Without unions—without worker-led action—there can be no justice, no formalisation, and no future for decent work,” she stated. The report is a rallying call, she emphasized, for workers and allies everywhere to organize, advocate, and legislate for a better future.

Real-World Examples: Creativity in Action

The report does more than diagnose the problem; it showcases practical, replicable solutions developed by workers themselves. These include:

• Worker cooperatives that allow informal workers to access markets, credit, and bargaining power.

• Social protection schemes negotiated by unions in partnership with local governments.

• Legal reforms won through collective bargaining and sustained advocacy that recognize informal workers as legitimate contributors to the economy.

• Digital tools used to map informal workers, facilitate registration, and track rights violations.

These initiatives are not just survival mechanisms—they are blueprints for how to transition millions out of vulnerability and into dignity.

A Call to Policymakers: Support Worker-Led Solutions

The report insists that formalization must not come at the cost of workers’ autonomy or through top-down mandates alone. Instead, it advocates for policies that:

• Recognize and support unions’ organizing efforts.

• Include informal workers in tripartite negotiations.

• Invest in training, education, and infrastructure that benefit the informal workforce.

• Ensure that formalization does not result in job loss or displacement.

This vision aligns closely with the upcoming ILC discussions, where the formalization of the informal economy is expected to be a high priority.

The Road Ahead: Building Momentum Through Solidarity

With the world facing economic, technological, and demographic shifts, the need to safeguard labor rights has become even more pressing. The Innovative Approaches report is more than a document—it is a mobilization tool meant to inspire trade unions, grassroots collectives, international organizations, and governments to join forces. The message is clear: the pathway to decent work and social justice lies in empowering workers and recognizing the critical leadership role they play in shaping inclusive, equitable economies.

As the ILO prepares to convene stakeholders from around the world, this report lays down a challenge and an opportunity—to elevate worker-led innovation from the margins to the mainstream and finally ensure that formal work becomes a right, not a privilege.