On International Labor Day today, a new report by Oxfam International has shed light on the global issue of income inequality. The report shows that workers in several countries are experiencing considerable wage losses while executives receive record dividends. The growing income gap between the super-rich and the rest of the population has been further compounded by years of austerity measures and anti-union attacks, according to the report.
According to the report, India, the United States, the United Kingdom, and South Africa are among the countries where real-term pay increased by 9% in 2022, while workers experienced a 3.19% dip in salaries.
The report draws on data from the International Labour Organisation (ILO) and government agencies, indicating that workers in 50 countries were forced to work "for free" for six days last year due to their wages falling behind inflation. This means that workers in these countries effectively lost six days' worth of pay because their wages did not keep up with the rising cost of living. The report further highlights that one billion workers in these countries experienced an average pay cut of $685 in 2022, resulting in a staggering collective loss of $746 billion in real wages compared to if their wages had kept up with inflation.
In addition to the issue of income inequality, the report by Oxfam International also highlights the disproportionate burden of unpaid care work that falls on women and girls. According to the report, women and girls contribute 4.6 trillion hours of unpaid care work annually, which includes tasks like cooking, cleaning, and caring for family members. Despite being essential to keeping households and communities functioning, unpaid care work is often undervalued and unrecognised. This further impacts women's ability to participate in the formal labor market and achieve economic independence, exacerbating gender inequality.
Oxfam's interim executive director, Amitabh Behar, noted that "most people are working longer for less and can't keep up with the cost of living."
According to Amitabh Behar, years of austerity measures and anti-union attacks have significantly widened the gap between the richest individuals and the rest of the population. Despite this, workers have only experienced a rise in unpaid care work, with women primarily bearing this responsibility. The hard and invaluable work done by women in homes and communities is often uncompensated.
Meanwhile, shareholder dividends hit a record high of $1.56 trillion in 2022, reflecting a 10% growth in real terms compared to 2021. Behar stated that workers are tired of being treated like sacrificial lambs during every crisis. The neoliberal approach of blaming inflation on everyone except corporations that are profiteering only exacerbates the problem.
Governments should cease relying solely on interest rate hikes and austerity measures, which are known to disproportionately harm people living in poverty. Instead, they should consider implementing higher rates of tax of at least 75% on super-rich corporate executives to discourage excessive executive pay. Additionally, governments should consider windfall taxes on excessive corporate profits Behar added.
Oxfam International's report emphasises the urgent need for governments and businesses to prioritise fair wages, labor protections, and policies that promote economic equality.
To address these issues, Oxfam recommends that governments and businesses prioritise investing in social protection, public services, and infrastructure to reduce the burden of unpaid care work on women and girls. They also call for policies that promote fair and decent wages and stronger labor protections, particularly for women and marginalised groups.