By Phenyo Selinda
Fortaleza, Brazil – Labour Ministers from South Africa, Brazil, and Spain have voiced their concern over persistent labour inequality globally, urging a shift from traditional models to a more inclusive and expansive approach.
“The only way to address this challenge properly is to abandon traditional models and responses, such as those favouring deregulation and market-based solutions, that have already been proven not to work and to accept that an expansive social response must be consensual and shared,” said the Ministers in a joint statement on Friday.
Joint Commitment to Labour Rights
The Ministers—Luiz Marinho from Brazil, Nomakhosazana Meth from South Africa, and Yolanda Díaz from Spain—made these remarks at the G20 Labour Ministers’ Meeting in Fortaleza. They emphasised a unified approach to promote fair labour practices globally. “Thus, in an expression of strengthened cooperation from three different continents, the Labour Ministers of Brazil, South Africa and Spain seek to advance towards a fairer distribution of the products of labour at a global level, adopting a common approach to tackling this problem that reflects our collective commitment to expanding labour rights the world over,” they stated.
Addressing Labour Share Decline
The Ministers highlighted a troubling trend: the decline in labour share—the portion of national income allocated to workers as opposed to capital owners. This decline, observed since the 1980s, means less income is reaching workers. They attributed this to several factors, including digital transitions benefiting a few, labour flexibility, deregulation policies, and ineffective austerity measures.
“Such developments sometimes result in the delocalisation of production, in the absence of social dialogue and trade union participation, in the growing precariousness of working conditions, in an imbalance in collective bargaining that gives rise to low salaries or to fiscal policies that prioritise capital over work, or restrict natural growth in salaries. Neither Brazil, South Africa nor Spain is unaffected by these trends,” they noted.
Regional Insights
In Brazil, despite economic recovery post-COVID-19 and GDP growth, the labour market still faces challenges. According to the International Labour Organisation (ILO), Brazil saw minimal productivity growth between 2015 and 2023, with real wages falling by 6.9% in 2023.
South Africa mirrors this scenario with significant fluctuations in real wages, which have not kept pace with productivity growth. “This has led to a situation where workers are not proportionally benefiting from the wealth they help create. The volatility of real wage growth compared to productivity underscores the disparity, which has been further exacerbated by shocks like the COVID-19 pandemic, which severely impacted economic growth, job stability, and both productivity and wage levels, leading to declining living standards and economic inequality for many South Africans.”
In Spain, while there was a notable productivity upturn in 2022, salary growth has lagged behind corporate profits over the years.
Overcoming Challenges
The Ministers identified four fundamental challenges to expanding labour rights:
1. Raising Wages: Real wages must grow at a pace commensurate with productivity. The Ministers advocate abandoning neoliberal policies in favour of those that increase labour compensation, particularly the legal minimum wage, to reduce inequality and the gender pay gap.
2. Equality and Diversity: Despite progress, significant challenges remain in ensuring equal opportunities, fair treatment, and decent working conditions for all people, regardless of gender, race, sexual orientation, or gender identity.
3. Just Digital Transition: Digitalisation should enhance, not hinder, decent work. Workers’ rights must be protected in the digital age.
4. Strengthening Collective Bargaining: The decline in collective bargaining coverage must be halted. Social dialogue is crucial for achieving better living and working conditions.A New Framework for Collaboration
The Ministers announced the establishment of a permanent collaboration framework on social and labour matters between Brazil, South Africa, and Spain. This framework aims to guide policies to increase labour participation and ensure workers receive a fair share of national wealth.
“In short, Brazil, Spain and South Africa will advance towards a new labour international, a global alliance that is fully aware that the major challenges to be overcome—the climate crisis, rising inequality, the erosion of democracies—must be tackled by expanding labour rights, and not by cutting them,” they concluded.
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