CEO Insight: SDG 8: Decent Work and Economic Growth
International Labour Day in a Time of Collective Action
The UN Sustainable Development Agenda sets out decent work for all as a 2030 target, stressing job creation as key to eradicating forced labour, slavery, and human trafficking. This target underscores the importance of employment as a driver of social change and sustainable development. However, with a global unemployment rate of 5.8% and 53.1% of the population not covered by social protections, there is still a long way to go before meeting the 2030 deadline.
Labour Day 2023
1st May marked International Labour Day (sometimes referred to as May Day or Workers’ Day), a day to celebrate the working classes and recognise the industriousness that keeps the world spinning. In many countries such as Libya, Kenya, Mauritius, Morocco, Namibia, and Nigeria, Labour Day is recognised as a public holiday, many more celebrate by closing workplaces and holding parades. Historically, this day has signified an opportunity to campaign for decent work and fundamental rights and protections.
The collective action of workers on Labour Day has forced governments to establish extensive labour laws outlining working conditions and minimum expectations for the consultation of workers. Looking towards Europe as an example, EU policy provides a framework of rights and obligations in the workplace, protecting the health and wellbeing of employees by enforcing regulations such as the working hours directive and minimum annual leave requirements. In setting such labour standards, EU policy safeguards economic growth and promotes social cohesion. The existence of the single market further drives the need for such protections, blocking the potential for a race to the bottom in labour standards across Europe. EU Labour Law sets minimum standards for over 240 million workers, however individual member states can set further regulations or offer extended benefits.
Despite extensive labour regulations in Europe, in recent years workers have seen unprecedented turmoil. Financial crises, austerity measures, and a global pandemic have created a landscape of high inflation and low economic growth for the first time since the 1970s.
How have working conditions deteriorated?
Since the 2008 financial crisis part time and temporary contracts, as well as badly paid work have become more common. Alongside this, ‘gig economy’ jobs with firms such as Deliveroo and Uber have risen exponentially, allowing companies to avoid meeting employment regulations. Gig economy jobs categorise workers as independent contractors, not employees. In doing this, workers are prevented from accessing employment rights such as sick leave, minimum wage, union representation, and holiday pay, as well as protection from discrimination and harassment in the workplace. The COVID-19 pandemic made stark the problems with this type of employment as an estimated 50 million gig economy workers worldwide were impacted by job losses, income cuts, or left unsupported by government protection schemes.
Legal action taken by unions has led to some countries banning certain gig economy employers. A landmark case in UK Labour Law, Uber v Aslam, held that Uber must recognise drivers as employees entitled to minimum wage and holiday pay. This is just one example of how stringent labour laws can protect employees, alongside legal support offered by Unions.
Collective bargaining in 2023
Unionisation provides employees with better access to justice, enabling them to realise their rights and demand satisfactory working conditions. Union membership enables individuals to participate in collective bargaining, where they can then negotiate better salaries, improve standards of living, reduce inequalities, and promote decent work. Globally, people in unions have higher wages, better benefits, and safer workplaces.
In the UK alone, inflation reached 9.2% in 2022, the highest ever recorded, while domestic gas prices increased by 129%. Despite unprecedented inflation, many saw their salaries remain the same, effectively awarding them a real-wage pay-cut. In response, the UK has seen consistent strikes from May 2022 to the present day. The strikes, sparked by the National Union of Rail, Maritime and Transport Workers (RMT) transformed into a national campaign – Enough is Enough! – wherein workers demanded real pay rises, reduced energy bills, an end to food poverty, decent housing for everyone, and increased taxes for the richest in society.
Strikers were joined by transport unions, postal workers, junior doctors, ambulance workers, telecommunications staff, university lecturers, refuse workers, and other industries. Particularly relevant to the legal community were the barrister strikes, which started in September 2022. According to the Criminal Bar Association (CBA), the real wage of barristers fell 28% over two decades, with salaries averaging £12,200 for the first 3 years in the profession. Since 2017, 25% of qualified barristers have left the industry, with a further 25% planning to quit. The consequences of these conditions mean a massive backlog of cases are yet to go to court. Following the strikes, barristers across the country voted to accept a 15% increase in criminal legal aid fees, proving the effectiveness of direct action in bargaining for improved working conditions.
Policy recommendations
In response to worsening living conditions, some countries have implemented policy changes in order to improve worker wellbeing and avoid burnout. South Africa, Belgium, Iceland, and Japan implemented 4-day work week policies resulting in ‘improved productivity’, ‘better team culture’, and less burnout. Trials of the 4-day work week were based on employees receiving 100% of their pay, for working 80% of the time, and delivering 100% of their usual output. A mass trial of the 4-day week policy in Australasia observed a 44% average reduction in absenteeism and a 9% reduction in resignations. The implications of this show that improved employee wellbeing leads to more productivity and a generally stronger workforce; supporting this policy recommendation at a national level could help rejuvenate workforces.
How can the legal community support workers’ rights?
In times of crisis, the legal system should be a champion for those who are persecuted. As the world adapts to life beyond COVID-19 and responds to the persistent threat of global warming, employers evolve to utilise new working practices. But as workplaces change so must legal frameworks. As the prevalence of transnational companies increases, transparency laws must ensure supply chains are clean, stamping down on child labour and preventing a global race to the bottom in labour standards. Furthermore, trade unions must be supported by the rule of law in attaining inflation consistent pay rises and upholding anti-harassment and discrimination laws.
Lawyers and legal experts are key in shaping and upholding legislation that supports job creation and ensures the safety and rights of workers. While employment lawyers must continue to defend labour laws, commercial lawyers must work with business clients to create safe and equitable workplaces. Law firms can work together to make their pro bono work more strategic, aligning with the SDG agenda ensures law firms are working towards joint goals, while the SDG 8 targets outline what must be done to provide decent work for all.
A4ID’s Legal Guide to SDG 8: Decent Work and Economic Growth is now available to read, an in-depth manual for lawyers looking to support workers’ rights and pursue the achievement of the SDG agenda by 2030.
SDG 8: Legal Guide to the SDGs – SDG Legal Initiative (a4id.org)
