TUAC - TRADE UNION ADVISORY COMMITTEE TO THE OECD

22/01/2014

The World Economic Forum’s own Outlook on the Global Agenda 2014 and Global Risks Report identify widening income disparities and structural unemployment as the most serious problems confronting the global economy this year. The current policy stance of most governments will do little to address either of these risks. Starting today, political and business elites meeting in Davos for the Annual World Economic Forum should use the three-day gathering to reflect on what goes wrong and step up their respective efforts to reverse these trends.

This demands a change in policy to support investments in quality jobs, youth, skills, the green economy and political and business models that favor fairness over short-term profit gains. Most urgently, an end has to be put to “reforms” and austerity measures that weaken collective bargaining and decrease the well-being of millions of people in crisis countries.

This and other messages will be transmitted by the trade union delegation to Davos that will particularly demand for the following policy needs:

• Targeted investments in infrastructure to improve long-term productive potential and move to a low-carbon economy;
• Raising the purchasing power of low and middle-income households by reducing inequality and strengthening collective bargaining and minimum wages;
• Investing in active labour market policies to raise skill levels and reduce youth unemployment;
• Reducing informality and creating decent work in emerging and developing countries.

Union leaders are taking leading roles – TUAC general secretary John Evans will be chairing a high-

level panel on “Solving the Employment Equation” where strategies against structural
unemployment will be discussed. The WEF’s own Global Agenda Council on Employment has
supported the labour movement’s call for policy change as global unemployment and inequality will
continue to rise in 2014: “What started as a deep but temporary jobs crisis is becoming a persistent
challenge with serious effects on the social fabric. Little respite is on the horizon in 2014 without
significant changes in policy.”  Evans will also be one of the discussion leaders in a multi-stakeholder
panel on this year’s G20 agenda.

Davos is only one of the first fora, where the global labour movement will be present in the months ahead including the G20, the IMF/ World Bank meetings as well as at the OECD to make sure that future policy actions lead to an inclusive and sustainable economic recovery. Otherwise, the main global risk will be lost trust of citizens in their political and business elites.

For interviews with Sharan Burrow or John Evans in Davos contact Tim Noonan +32 475 67 08 33 or Gemma Swart +32 479 06 41 63, email gemma.swart@ituc-csi.org

Find a full list of priorities in the download section on the right.