The International Labour Organization (ILO) is more than a Geneva-based UN agency—it’s a global engine for fair work, social justice, and economic growth. In 2025, its influence is evident in Australian labor policy, from minimum wage increases to flexible work arrangements and modern slavery laws. Let’s unpack how the ILO’s conventions and recommendations shape Australian workplaces, and why its voice matters in a rapidly changing economy.
What Is the ILO and Why Does It Matter for Australians?
Founded in 1919, the ILO is the only tripartite UN agency, bringing together governments, employers, and worker representatives. Its 187 member states—including Australia—collaborate to set international labor standards, promote decent work, and advance social protection. The ILO’s core conventions underpin workplace rights in Australia, covering issues like forced labor, child labor, discrimination, and collective bargaining.
- Australia has ratified 20+ ILO conventions, shaping national laws on safety, pay equity, and union rights.
- ILO standards inform Fair Work Commission rulings, especially on wage setting and fair conditions.
- Australian unions and employer groups regularly contribute to ILO debates, ensuring our perspective is heard globally.
2025: Key ILO-Driven Changes in Australian Labor Policy
This year, several policy shifts reflect Australia’s ongoing commitment to ILO principles:
- Minimum Wage Increase: Following ILO guidance on living wages, the Fair Work Commission raised the national minimum wage by 4.2% in July 2025, the largest real-terms boost in a decade. This move aims to keep pace with inflation and help low-paid workers tackle cost-of-living pressures.
- Modern Slavery Reforms: Australia updated its Modern Slavery Act in early 2025, tightening reporting requirements for large companies and expanding supply chain transparency. The reforms are directly aligned with ILO’s Forced Labour Protocol and global push against exploitation.
- Flexible Work and the Future of Jobs: The ILO’s 2025 World Employment Outlook spotlights the rise of gig work and AI-driven automation. In response, the Albanese government introduced new protections for casual and platform workers, echoing ILO recommendations on fair contracts and social protections for non-traditional employees.
These changes reflect the ILO’s central message: social justice and strong worker protections drive economic resilience and innovation.
Real-World Examples: ILO Impact on Australian Workplaces
How does the ILO’s influence play out on the ground?
- Wage Reviews: The annual wage review process now explicitly references ILO Convention 131 (Minimum Wage Fixing), with commissioners weighing international benchmarks when setting pay floors.
- Corporate Social Responsibility: Major retailers like Woolworths and Wesfarmers publish annual modern slavery statements, in part to comply with ILO-inspired laws and maintain ethical supply chains.
- Union Rights: In late 2024, the High Court cited ILO Convention 87 (Freedom of Association) when upholding public sector workers’ right to strike over pay and safety conditions.
These examples show the ILO isn’t just theory—it’s a living influence on pay packets, workplace rights, and corporate conduct.
What’s Next? The ILO’s Role in Australia’s Working Future
As Australia faces challenges like climate adaptation, skills shortages, and digital disruption, the ILO’s framework offers a roadmap for balancing growth with fairness. In 2025, the focus is shifting to:
- Green Jobs: ILO’s Just Transition guidelines are helping shape new training programs for renewable energy and sustainable construction workers.
- Gender Equity: The government is reviewing parental leave and pay equity laws, drawing on ILO Convention 156 (Workers with Family Responsibilities) and recent global reports.
- AI and Automation: The ILO’s new standards on AI in the workplace are likely to inform Australia’s approach to regulating algorithmic management and protecting workers’ rights in digital platforms.
With ongoing engagement at the ILO’s Geneva headquarters and regional meetings, Australia remains an active player in shaping the future of work—at home and abroad.
