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As jobs crisis deepens, ILO warns of uncertain and incomplete labour market recovery
by International Labour Organization, ITUC, agencies
 
Dec. 2020
 
ILO Report: Wages falling during pandemic, 266 million have no minimum wage. (ITUC)
 
The latest Global Wage Report from the International Labour Organization (ILO)reveals downward pressure on wages in two-thirds of the world’s countries during the COVID-19 pandemic, with the crisis hitting the lowest paid hardest.
 
266 million people are denied a minimum wage due to restrictive laws and non-compliance, in particular agricultural and domestic workers.
 
Sharan Burrow, ITUC General Secretary, said: “This report exposes a global wages scandal, with some countries even having a minimum wage that is lower than the poverty line. Seventy-six percent of people in the ITUC Global Poll 2020 do not believe the minimum wage is enough for a decent life. Hundreds of millions of workers are living on the edge, and their plight has only worsened during the Covid-19 crisis, even as tech billionaires and pandemic profiteers extract billions of dollars. It is crucial to guarantee minimum living wages to all workers in order to allow them and their families to live in dignity.”
 
The report also points to the disproportionate impact on women, who comprise around 60% of all workers whose working hours have reduced during the pandemic.
 
The ILO’s findings also help debunk the myth that living minimum wages hurt economic growth: increased minimum wages actually reduce wage and income inequality.
 
“Living minimum wages are not only vital for workers and their families, but they are also in fact an investment, contributing to economic activity and reducing the need for income support. The notion that decent minimum wages cost jobs is a fallacy put about by right-wing economists – one that should be consigned to the dustbin of history. Minimum wages must be evidence based, taking into consideration the cost of living for workers and their families, and developed together with social partners. They must have the force of law, and non-compliance must be met with strong and dissuasive sanctions,” said Sharan Burrow.
 
http://www.ituc-csi.org/ilo-report-wages-falling http://www.ituc-csi.org/covid-19-worker-protection-report http://www.ituc-csi.org/a-new-social-contract
 
* On 11 March 2021 it is one year since the WHO declared Covid-19 a global pandemic. To mark this date, the ITUC’s Covid-19 Reality Project of stories from working people shows how the pandemic has affected our work, our communities and our health: http://bit.ly/3ii7X3l
 
Oct. 2020
 
COVID-19 leads to massive labour income losses worldwide. (ILO News)
 
A new ILO analysis of the labour market impact of COVID-19 reveals a “massive” drop in labour income and a fiscal stimulus gap that threatens to increase inequality between richer and poorer countries.
 
The devastating losses in working hours caused by the COVID-19 pandemic have brought a “massive” drop in labour income for workers around the world, says the International Labour Organization (ILO) in its latest assessment of the effects of the pandemic on the world of work.
 
Global labour income is estimated to have declined by 10.7 per cent, or US$ 3.5 trillion, in the first three quarters of 2020, compared with the same period in 2019. This figure excludes income support provided through government measures.
 
The biggest drop was in lower-middle income countries, where the labour income losses reached 15.1 per cent, with the Americas the hardest hit region at 12.1 per cent.
 
The ILO Monitor: COVID-19 and the world of work. Sixth edition , says that the global working hour losses in the first nine months of 2020 have been “considerably larger” than estimated in the previous edition of the Monitor (issued on 30 June).
 
For example, the revised estimate of global working time lost in the second quarter (Q2) of this year (when compared to Q4 2019) is for 17.3 per cent, equivalent to 495 million full time equivalent (FTE) jobs (based on a 48-hour working week), whereas the earlier estimate was for 14 per cent, or 400 million FTE jobs. In Q3 of 2020, global working hour losses of 12.1 per cent (345 million FTE jobs) are expected.
 
The outlook for Q4 has worsened significantly since the last ILO Monitor was issued. Under the ILO’s baseline scenario, global working-hour losses are now projected to amount to 8.6 per cent in the fourth quarter of 2020 (compared to Q4 2019), which corresponds to 245 million FTE jobs. This is an increase from the ILO’s previous estimate of 4.9 per cent or 140 million FTE jobs.
 
One reason for the estimated increases in working-hour losses is that workers in developing and emerging economies, especially those in informal employment, have been much more affected than by past crises, the Monitor says.
 
It also notes that the drop in employment is more attributable to inactivity than to unemployment, with important policy implications.
 
While many stringent workplace closures have been relaxed, there are significant variations between regions. 94 per cent of workers are still in countries with some sort of workplace restrictions, and 32 per cent are in countries with closures for all but essential workplaces.
 
http://www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_755875/lang--en/index.htm http://www.ilo.org/wcmsp5/groups/public/@dgreports/@dcomm/documents/briefingnote/wcms_755910.pdf http://news.un.org/en/story/2020/09/1073242 http://www.un.org/en/desa/covid-19 http://www.undp.org/content/undp/en/home/coronavirus/socio-economic-impact-of-covid-19.html
 
July 2020
 
The International Labour Organization’s latest analysis of the labour market impact of COVID-19 finds its impact on the world of work was more severe than previously estimated.
 
The number of working hours lost across the world in the first half of 2020 was significantly worse than previously estimated, while the highly uncertain recovery in the second half of the year will not be enough to go back to pre-pandemic levels, even in the best scenario, and risks seeing continuing large scale job losses, warns the International Labour Organization (ILO).
 
According to the ILO Monitor: COVID-19 and the world of work: 5th Edition, there was a 14 per cent drop in global working hours during the second quarter of 2020, equivalent to the loss of 400 million full-time jobs (based on a 48-hour working week). This is a sharp increase on the previous Monitor’s estimate (issued on May 27), of a 10.7 per cent drop (305 million jobs).
 
The new figures reflect the worsening situation in many regions over the past weeks, especially in developing economies. Regionally, working time losses for the second quarter were: Americas (18.3 per cent), Europe and Central Asia (13.9 per cent), Asia and the Pacific (13.5 per cent), Arab States (13.2 per cent), and Africa (12.1 per cent).
 
The vast majority of the world’s workers (93 per cent) continue to live in countries with some sort of workplace closures, with the Americas experiencing the greatest restrictions.
 
The Monitor also finds that women workers have been disproportionately affected by the pandemic, creating a risk that some of the modest progress on gender equality made in recent decades will be lost, and that work-related gender inequalities will be exacerbated.
 
The severe impact of COVID-19 on women workers relates to their over-representation in some of the economic sectors worst affected by the crisis, such as accommodation, food, sales and manufacturing. Globally, almost 510 million or 40 per cent of all employed women work in the four most affected sectors, compared to 36.6 per cent of men.
 
Women also dominate in the domestic work and health and social care work sectors, where they are at greater risk of losing their income and of infection and transmission, and are also less likely to have social protection.
 
The pre-pandemic unequal distribution of unpaid care work has also worsened during the crisis, exacerbated by the closure of schools and care services. http://bit.ly/2Cg3VpB
 
May 2020
 
Impact of lockdown measures on the informal economy. (ILO)
 
As of April 2020, it is estimated that almost 1.6 billion workers in the informal economy have been significantly impacted by the COVID-19 pandemic, leading to an estimated decline in their earnings of 60 per cent.
 
As many as 1.6 billion of the world’s two billion informal economy workers are affected by lockdown and containment measures. Most are working in the hardest-hit sectors or in small units more vulnerable to shocks.
 
These include workers in accommodation and food services, manufacturing, wholesale and retail, and the more than 500 million farmers producing for the urban market. Women are particularly affected in high-risk sectors, the report says.
 
In addition, with these workers needing to work to feed their families, COVID-19 containment measures in many countries cannot be implemented successfully. This is endangering governments’ efforts to protect the population and fight the pandemic. It may become a source of social tension in countries with large informal economies, the report says.
 
More than 75 per cent of total informal employment takes place in businesses of fewer than ten workers, including 45 per cent of independent workers without employees.
 
With most informal workers having no other means of support, they face an almost unsolvable dilemma: to die from hunger or from the virus, the briefing says. This has been exacerbated by disruptions in food supplies, which has particularly affected those in the informal economy.
 
For the world’s 67 million domestic workers, 75 per cent of whom are informal workers, unemployment has become as threatening as the virus itself. Many have not been able to work, whether at the request of their employers or in compliance with lockdowns. Those who do continue to go to work face a high risk of contagion, caring for families in private households. For the 11 million migrant domestic workers the situation is even worse.
 
“The COVID-19 crisis is exacerbating already existing vulnerabilities and inequalities,” says Philippe Marcadent, Chief of the ILO’s INWORK branch. “Policy responses must ensure that support reaches the workers and enterprises who need it most.”
 
The countries with the largest informal economies where full lockdowns have been adopted, are suffering the most from the consequences of the pandemic. Informal economy workers significantly impacted by lockdown varies from 89 per cent in Latin America and the Arab States to 83 per cent in Africa, 73 per cent in Asia and the Pacific, and 64 per cent in Europe and Central Asia.
 
Countries need to follow a multi-track strategy that combines several lines of actions relating to both the health and economic impacts of the pandemic, says the ILO.
 
Among its recommendations, the report highlights the need for policies that reduce the exposure of informal workers to the virus; ensure that those infected have access to health care; provide income and food support to individuals and their families; and prevent damage to the economic fabric of countries.
 
http://bit.ly/2Zvt8VP http://bit.ly/3h1h6cP http://www.ilo.org/global/topics/employment-promotion/informal-economy/lang--en/index.htm http://bit.ly/32jSKXD http://www.wiego.org/resources/informal-workers-covid-19-crisis-global-picture-sudden-impact-and-long-term-risk http://www.wiego.org/covid19crisis http://www.wider.unu.edu/publication/covid-19-intensifies-global-need-support-informal-workers-their-struggle http://www.hks.harvard.edu/centers/mrcbg/programs/growthpolicy/covid-19-cities-and-urban-informal-workers-india-comparative http://bit.ly/36O1bNh
 
http://www.ituc-csi.org/covid-19-responses http://www.ituc-csi.org/IMG/pdf/itucbriefingnotesummitcovid19en.pdf http://www.ituc-csi.org/ituc-global-covid-19-survey-22june http://www.foreignaffairs.com/articles/united-states/2020-08-06/coronavirus-depression-global-economy http://srpoverty.org/ http://www.cesr.org/confronting-covid-19-demanding-rights-august-2020-round http://www.cesr.org/covid19 http://www.socialprotectionfloorscoalition.org/
 
* OCHA: The cost of doing nothing: The price of inaction in response to the COVID-19 crisis: http://bit.ly/2WtV8qZ


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Pandemic creating leverage for business to commit abuses
by UN Office for Human Rights
 
“Human rights and environmental defenders are on the frontline of this struggle for a better future to be born. They will play a leadership role from the local to the global levels. We must all – governments, civil society, companies, and investors - protect them from abuse and seek to amplify their voices.”
 
Phil Bloomer, the Executive Director of the Business and Human Rights Resource Centre, was speaking at last week’s Business and Human Rights Forum.
 
The session, focusing on the role of human rights defenders in defending rights during the COVID-19 pandemic and in the process of ‘building back better’ brought together a range of activists from around the world, as well as UN experts and other stakeholders. Anita Ramasastry, Chair of the Working Group on Business and Human Rights, referred to the discussion as “one of the most important” in the Forum.
 
Since the start of the pandemic, attacks against human rights defenders have continued, and in many parts of the world, have even risen. According to the Business and Human Rights Resource Centre, from March to October, there have been 286 cases of attacks against defenders focused on business-related activities, a 7.5% increase from the same time last year.
 
For Bloomer, these statistics point to “opportunistic repression perpetrated by business, governments and other actors.”
 
Yet during this period of acute crisis, the voices of human rights defenders, according to the session’s panellists, are ever more critical. Central to the discussion was a strong call for companies to consult human rights defenders before embarking on business activity as a key part of their human rights due diligence, and support defenders when they are threatened. The session highlighted that States should ensure that the work of human rights defenders is not only unobstructed, but is actively listened to and welcomed.
 
Vann Sophath, a human rights defender from Cambodia, gave the example of a rubber company clearing indigenous sacred land “under the cloak of the pandemic,” destroying burial grounds, wetlands and forests.
 
He said that despite a previously agreed decision to return the land to the communities, and even the fact that people were taking shelter to protect themselves against the virus, the land-clearing proceeded regardless.
 
He highlighted a lack of willingness from business and government to hear the concerns of human rights defenders.
 
From India, Deepika Rao, from CIVIDEP, an organisation which promotes workers' rights and corporate accountability, spoke of the challenges facing workers “at the lowest rungs of the global supply chain”, who were the “hardest hit” by India’s 21 day lockdown. Implemented at short notice, the lockdown left them with no daily income and living in cramped quarters with a heightened fear of the virus.
 
While labour rights activists routinely faced threats and intimidation from companies, Rao said that since the pandemic began, companies have used it as an excuse to lay-off “difficult” workers.
 
She called for labour rights experts and trade unions to be listened to and consulted with, and underlined that the pandemic should not be used as an excuse to clamp down on trade unions.
 
And from Brazil, human rights defender Antonia Flavia’s story, represented by Maria-Isabel Cubides, told of steel and cement companies extracting natural resources from her village.
 
For years, her community has been pushing for relocation, their current homes uninhabitable due to severe health and environmental impacts.
 
The pandemic has put their plans on hold, and while the companies continue their work, villagers have been forced to face the simultaneous challenges of isolation, pollution and flooding.
 
“The decisions taken by most companies have privileged profit at the expense of the destruction of the environment and human health,” said Cubides. “If the necessary measures were taken, the disjunctive of work vs. health, and environmental preservation vs. economic benefits would be surmounted.”
 
The company perspective was offered by Lisa Isakson of Greenfood, who emphasised the need for people to speak freely about the human rights risks in company supply chains. She noted that getting information has become more difficult during the pandemic: “Due to the risk of spreading the virus we cannot travel like before, there are restrictions on visiting local sites, supplier audits and inspections have been delayed or cancelled and, at the same time, we know many risks are higher, not least for workers in agricultural supply chains.”
 
For Isakson, cooperation with civil society and, through that, engagement with human rights defenders themselves, is essential to overcoming these challenges.
 
On the issue of a just recovery from the pandemic, the participants heard from Maja Kristine Jama, a Sami reindeer herder from Norway and a political advisor to the Governing Council of the Norwegian Sámi Parliament. Calling for society to change its understanding of the value of indigenous land, she spoke of loss of pastureland due to the construction of hydroelectric power plants, wind farms, roads and power lines.
 
“It’s not vacant space that should be filled with more infrastructure projects, but, especially in light of climate change, it is valuable space crucial to the survival of our planet”. She urged early engagement with indigenous land users when development projects are being considered.
 
“A just recovery from the pandemic is not possible if human rights defenders are not free to speak out,” observed Anita Ramasastry.
 
Mary Lawlor, the UN Special Rapporteur on the Situation of Human Rights Defenders, reiterated this point. “If we really want to build back better, human rights and human rights defenders need to be a priority for both States and businesses,” she said.
 
Lawlor urged companies who are launching projects to engage with potentially affected communities and human rights defenders at the earliest possible stage, and for States to collaborate with defenders during legislative processes.
 
“They (companies) have to keep the door open, even if objections of the defenders might render a project more costly, less profitable or even unviable. Free, prior and informed consent by the community is a must.”
 
She stated that engagement is an essential part of the effective due diligence called for in the UN Guiding Principles on Business and Human Rights.


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