The International Labour Organisation (ILO) has renewed its call for governments, employers, and workers’ unions worldwide to take decisive steps in addressing poor working conditions, especially within global supply chains where millions of vulnerable workers remain trapped in low-quality jobs.
In its latest policy brief titled “From Root Causes to Real Change: Using a Systems Approach to Foster Decent Work Deep in Supply Chains,” the ILO stressed that many micro, small, and medium-sized enterprises (MSMEs) face structural barriers that prevent them from improving job quality and meeting international labour standards.
According to the ILO, while larger and first-tier suppliers often comply with regulations due to their direct links with multinational buyers, MSMEs operating deeper within supply chains continue to struggle with weak infrastructure, poor access to finance, and limited enforcement of labour laws.
These barriers, the organisation warned, risk widening inequality and undermining sustainable economic growth if not urgently addressed.
The Chief of the ILO’s MSME Branch, Dragan Radic, explained that a systems approach is essential in tackling root causes of poor working conditions.
“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 said.
The approach, according to the ILO, goes beyond piecemeal interventions by focusing on comprehensive strategies that tackle wages, workplace safety, productivity, and compliance simultaneously.
By doing so, the organisation believes that global supply chains can become a gateway to fairer labour practices and stronger business growth.
Dan Rees, Director of the ILO’s Action Programme on Supply Chains, added that the shift towards holistic reforms is critical for long-term sustainability.
“This kind of long-term, holistic thinking is what it takes to unlock decent work opportunities where they’ve historically been out of reach,” Rees stated.
“Supply chains can be an entry point for decent work in MSMEs when they are supported within a stronger, more coherent system, achieving real ripple effects.”
Across the world, MSMEs account for over 90 per cent of businesses and provide the majority of jobs, particularly in developing economies like Nigeria, India, and Brazil.
However, their position at the lower tiers of supply chains leaves them at a disadvantage compared to larger, first-tier suppliers who enjoy better access to finance, technology, and international markets.
The ILO emphasised that unless systemic barriers are tackled, MSMEs will remain unable to compete fairly or comply with evolving supply chain requirements such as sustainability certifications, workplace audits, and stricter quality controls.
For many of these businesses, compliance often comes at the cost of workers’ welfare, as they struggle with low wages, unsafe working environments, and irregular contracts.
The ILO believes that addressing these challenges holistically will not only protect workers but also unlock new opportunities for small businesses to scale and integrate more effectively into global markets.
The policy brief also highlighted the need for stronger collaboration among stakeholders. Governments are urged to strengthen policy frameworks and enforcement of labour standards, while employers’ organisations are expected to provide better support systems for MSMEs.
Workers’ unions, on their part, are called to champion rights advocacy while ensuring that interventions are inclusive and equitable.
The ILO further argued that systemic reforms can generate ripple effects across economies, improving not only job quality but also business competitiveness, productivity, and social stability.
The organisation’s message holds particular significance for Nigeria, where poor working conditions, weak enforcement of labour laws, and unsafe work environments remain major concerns.
Despite Nigeria’s growing integration into global supply chains through industries such as textiles, agriculture, and oil services, many small businesses continue to face exploitative conditions that limit both growth and worker welfare.
Experts note that adopting the ILO’s systems approach could help Nigeria address persistent labour challenges, align with international best practices, and strengthen competitiveness in export-driven industries.
Globally, the brief serves as a reminder that sustainable economic growth cannot be divorced from fair labour practices.
The ILO insists that real change will only come when governments, employers, and workers collectively commit to building resilient systems that empower MSMEs and protect workers across all tiers of supply chains.