TUAC NEWS
Jobs and wage concerns top G20 Labour Ministers’ agenda, G20 leaders must drive action
L20 Response to G20 Labour and Employment Ministerial Meeting Declaration
14/07/2016
G20 Labour Ministers meeting in Beijing committed to better align wages with productivity and reduce the wage gap – which has been widening across G20 economies. Ministers also committed to strengthen compliance with and coverage of minimum wages and promote collective bargaining. They reiterated past commitments to reduce gender and youth employment gaps.Sharan Burrow, General Secretary, International Trade Union Confederation, said the G20 has recognised that the economic outlook is bleak for working people and acknowledged the need for job creation. However, its decision to give top visibility to an entrepreneurship plan with a weak mandate puts economic growth at risk.
“With the combination of austerity and a global model of trade that impoverishes both working families in too many nations, business-as-usual policies by governments won't work. International institutions including the OECD agree that wages need to rise.”
Rising inequality was acknowledged by labour ministers, and a minimum wage identified as a key instrument to address inequality. However, the Beijing meeting was a missed opportunity to deliver practical policies to meet G20 commitments agreed in 2015 to address “labour income share and inequalities”.
“Inequality is an economic issue, it’s a labour issue and it’s a social justice issue. With that comes a need for the G20 to put in place policies to reduce inequality both within and between countries. Reducing inequality needs to be part of the international economic agenda,” said Sharan Burrow.
G20 Labour Ministers recognised the importance of the social partners – trade unions and employers – and made commitments to:
- better align wage setting mechanisms with productivity trends;
- reduce the gender gap in labour market participation;
- reduce youth unemployment;
- expand coverage of social protection systems; and
- support skills development and quality apprenticeships.
The G20 Labour Ministers have provided a solid foundation for Germany’s presidency of the G20 in 2017 to
- ensure labour rights in global value chains and due diligence of multi-national companies;
- realise an increase in women's participation in the labour market and reduce the gender pay gap;
- integrate immigrants and refugees into the labour market with equal treatment; and
- consider the future of work and the rights and conditions of workers in the digital economy.
G20 leaders meeting at the Hangzhou summit in September must endorse the new principles on sustainable wages in an annex to the ministerial declaration, and effectively implement the G20 principles on labour income share and income inequality.