Durban — The labour ministers from South Africa, Brazil and Spain formed an alliance aimed at combating worldwide labour inequalities at the G20 Labour Ministers meeting held in Brazil on Friday.
The meeting marked a significant departure from traditional economic models that have failed to address escalating disparities.
This alliance is forged alongside mounting concerns over declining labour shares and uneven wealth distribution. The meeting advocated for a collaborative, consensus-driven approach to ensure fairer distribution of economic gains derived from labour.
Nomakhosazana Meth, Minister of Employment and Labour, said South Africa’s labour market is a prime example of declining labour share. Real wages have shown significant fluctuations, failing to keep pace with steady productivity growth.
Meth said this has led to workers not proportionally benefiting from the wealth they help create.
“The volatility of real wage growth compared to productivity underscores the disparity, further exacerbated by shocks like the Covid-19 pandemic, which severely impacted economic growth, job stability, and productivity and wage levels, leading to declining living standards and economic inequality for many South Africans.”
These disruptions highlight the vulnerability of workers’ livelihoods and contribute to widening labour inequality, Meth said.
“Consequently, South African workers face increased economic insecurity and a diminished share of the nation's wealth. This situation underscores the urgent need for a new approach that prioritises fairer wealth distribution and strengthens worker rights globally.”
Luiz Mourinho, Brazil's Minister of Labour and Employment, said despite economic recovery milestones post-pandemic, Brazil faces minimal productivity growth and declining real wages. The country is intensifying efforts to promote fundamental labour rights, combat child and forced labour, and enhance workplace conditions through national plans and alliances.
According to the International Labour Organization (ILO), Brazil exhibited very slight productivity growth between 2015 and 2023, an annual average of 0.1%, while real wages fell 6.9 % in 2023.
“Informal employment, low wages, and unacceptable labour practices, such as child labour and forced labour, remain prevalent in Brazil. In view of this, Brazil is promoting the Fundamental Principles and Rights at Work is revising the National Plans on the Prevention of Child Labour and Forced Labour, and implementing a National Pact for Decent Work in Rural Areas” Mourinho stated.
Yolanda Díaz, Second Vice-President and Minister of Labour and Social Economy of Spain, said Spain has enacted progressive labour reforms aimed at boosting wages, strengthening worker rights and prioritising social justice in the workplace.
The country’s initiatives serve as a model within the alliance for achieving inclusive economic growth and fairer labour practices.
Díaz said this alliance pledges to establish a comprehensive framework for collaboration, focusing on promoting fair wages, enhancing workplace diversity and inclusion, and expanding collective bargaining rights globally.
“Their collective vision advocates for economic democracy, equitable labour practices and addressing global labour inequalities, signalling a departure from neoliberal policies in favour of inclusive economic models that prioritise workers’ rights and equitable prosperity,” Díaz said.
As the alliance of Brazil, South Africa, and Spain sets its sights on transformative change in global labour practices, their initiative serves as a rallying cry for international solidarity in achieving a fairer, more inclusive world of work.
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