GENEVA - Trade Unions leaders and experts attending an ACTRAV symposium on Income Inequality, Labour Market Institutions and Workers’ Power reflected on the roots of growing inequalities worldwide and on strategies to overcome them.
ILO Director- General, Guy Ryder reminded participants that the financial crisis of 2008 was born out of inequality and that inequality and unemployment were growing on a global level." What we have seen is a continuation of the growing inequality, and the growing unemployment in the world, despite of some cases of recovery , global unemployment continues to increase (…). There is a wider and wider acceptance that inequality is a problem, strongly and widely felt, and that it is economically dysfunctional. Rapid economic growth is not translating into living standards. And many of the roots of inequality are in the world of work”.
To overcome this situation, Guy Ryder called for a common front to protect and extend collective bargaining. “This is the instrument that the labour movement has used to create social justice and the redistribution of income. The ILO is positioning itself in the battle for collective bargaining from a basis of strength. This ACTRAV symposium will certainly contribute to our efforts.”
Luc Cortebeeck, the President of the Worker’s Group in the ILO Governing Body rejoined the ILO Director General saying that “Reducing inequality requires quality employment. Universal application of labour standards, formalization of the informal economy, and elimination of precarious employment and extension of centralized collective bargaining are essential to stop the race to the bottom”.He reminded participants that collective bargaining and the right to strike are essential for workers to rebalance an unequal employment relationship.“Without comprehensive collective bargaining it is impossible to create a broad middle class and democratic societies. (…)We have debated how higher collective bargaining coverage and centralized systems of collective bargaining reduce wage inequality and discrimination. We therefore need a strong advocacy by the ILO to counter the attacks on collective bargaining and stress the contribution of labour market institutions, particularly collective bargaining, in reducing income inequality. “
A report * to the meeting called on the global labour movement to translate public aspirations for more equality into real political pressure by creating an alliance of the middle income group with the bottom 40 per cent against the top 10 per cent income groups that has increased its income share in nearly all societies.
Sharan Burrow, General Secretary, International Trade Union Confederation (ITUC)
“We know that the ILO shows the demise of collective bargaining in real terms, and this is a major issue for trade unions. But at the same time, If we don’t put the floor under those collective bargaining agreements, if we don’t make sure that every worker has universal social protection and minimum wages on which they can live, -minimum living wages-, then we are not dealing with a fair share of the world’s wealth for working people; we are not dealing with the challenge of full employment and the questions around fundamental rights for workers to have a voice on these issues to collectively organize around them both in their work places and in their democracies”.
Takaaki Sakurada, Advisor on International Affairs, Japanese Trade Union Confederation (JTUC-Rengo)
“All stakeholders should support the sustainable socioeconomic growth in a manner from trickle -down to bottom-up as a national policy which is led by firm domestic demand. The result of the negotiation or collective bargaining should cover as far as possible to non-regular workers thus to stimulate further organizing non regular workers”.
Xu Lu, Deputy Director General, All-China Federation of Trade Unions (ACFTU)
“The Chinese trade unions insist that a rational income distribution principle should strike a balance between efficiency and equity in both primary distribution and redistribution circles, while more emphasis shall be given to equity during redistribution. (…)Contrary to international experience, the Chinese unions are now shifting from enterprise-based bargaining to collective wage bargaining at sectoral and regional levels. According to the Chinese trade unions, efforts must be explored to press ahead with collective wage bargaining through full involvement in the development of national laws and regulations and by innovative approaches so as to increase workers’ income level. “
