The International Labour Organisation (ILO) has called on governments, employers, and workers’ groups to embrace a systems approach in addressing poor working conditions across global supply chains. The organisation warned that without targeted interventions, suppliers in the lower tiers of supply chains particularly Micro, Small, and Medium-sized Enterprises (MSMEs) risk being left behind.
The appeal was made in a new policy brief titled “From root causes to real change: Using a systems approach to foster decent work deep in supply chains.” The ILO emphasised that while many first-tier suppliers often comply with labour regulations due to closer ties with international buyers, MSMEs operating further down the supply chain remain trapped in environments that prevent both growth and decent job creation.
According to the brief, MSMEs typically face systemic challenges such as limited access to finance, weak infrastructure, and inadequate enforcement of labour standards. These barriers not only hinder their competitiveness but also compromise workplace safety, wages, and job quality for millions of workers.
Dragan Radic, Chief of the ILO’s MSME Branch, explained that a systems approach seeks to address these root challenges in a holistic manner. “Through a systems approach, we aim to strengthen MSME competitiveness and promote decent work by first identifying the root causes of key bottlenecks and later working with ILO constituents to address them in a long-lasting way,” Radic stated.
The ILO argues that by tackling systemic barriers rather than isolated symptoms, interventions can create sustainable improvements in productivity, compliance, and workplace standards. This would not only benefit workers but also enable smaller enterprises to meet the increasingly stringent requirements of modern supply chains in areas such as sustainability, quality, and labour rights.
Dan Rees, Director of the ILO’s Action Programme on Supply Chains, reinforced the need for long-term thinking. “This kind of holistic approach is what it takes to unlock decent work opportunities where they’ve historically been out of reach,” he said. Rees added that well-supported supply chains can serve as an effective entry point for creating ripple effects that extend decent work opportunities deeper into MSMEs.
The ILO brief outlines practical steps for stakeholders, including governments, employers’ organisations, and workers’ groups, to implement this strategy. By designing evidence-based interventions, the ILO believes stakeholders can generate structural changes that are more sustainable than short-term fixes.
The policy brief also highlights the opportunity for MSMEs to gain access to new markets and stronger buyer relationships if systemic challenges are resolved. With fairer access to finance, improved infrastructure, and effective enforcement of labour laws, these enterprises could comply with international supply chain standards, thereby unlocking growth opportunities while safeguarding workers’ welfare.
In urging action, the ILO stressed that poor working conditions in global supply chains cannot be resolved through isolated compliance checks or fragmented initiatives. Instead, a collective, systems-based strategy is required to dismantle entrenched barriers and ensure decent work for all, especially those employed in the most vulnerable and overlooked parts of the supply chain.
