A New World of Work

International Workers’ Day, better known as May Day or Labour Day, is observed yearly on 1st May. The history of May Day goes back over 160 years ago, to a time when working class demands were growing for an eight-hour workday, something generally taken for granted today. May Day is supposed to promote worker rights and better working conditions. However, against a global backdrop of stagnant wages, inflation, mass dissatisfaction in the workplace, exploitation of workers and income inequality, there appears to be little for workers to celebrate.

According to the International Labour Organization’s (ILO) Global Wage Report: 2020-21, in the four years prior to the COVID-19 pandemic, global wage growth fluctuated between 1.6 and 2.2 per cent. However, with global inflation averaging between 2.7 and 3.59 percent during the same period, it meant that there was no real wage growth.

The ILO’s report also notes that the pandemic has disproportionately affected the wages of women and lower paid workers, thereby increasing wage inequalities. Meanwhile, the pandemic also induced some governments to postpone minimum wage adjustments.

In some advanced economies, workers are resigning in droves. For instance, in the United States (US), according to CNN, in February 2022, US businesses had 11.3 million job openings to fill, slightly more than economists had predicted. However, companies were only able to hire 6.7 million people in February – a surplus of 4.6 million jobs.

Anthony Klotz, Associate Professor of Management at Texas A&M University coined the term “The Great Resignation,” to describe what appears to be a trend of employees leaving their jobs. According to the Pew Research Center, the majority of workers who quit their jobs in 2021 cited low pay (63%), no opportunities for advancement (63%) and feeling disrespected at work (57%) as reasons for quitting. A smaller, but not insignificant number highlighted other factors such as lack of flexibility to choose when to put in their hours (45%) and insufficient benefits such as health insurance (43%).

How can we do right by workers today?

In one of his most celebrated works – Utopia, the 16th century British philosopher, Thomas More mentioned the idea of providing a basic income to all members of society. This certainly sounds utopian, as the name of More’s book suggests. However, fast forward 500 years, and then US presidential hopeful in the 2020 election cycle, Andrew Yang, was talking up the idea of a universal basic income for every American adult. In Yang’s plan, a regular, guaranteed payment would be made to citizens, irrespective of need.

From a cost perspective, most governments will be unable to afford a universal basic income. However, what they can do is legislate for both public and private sector employees, a living wage which will allow every worker the ability to earn and meet their basic needs, as well as their families’, without falling into poverty. A living wage, not simply a minimum wage, will create economies which work for all, not just the rich.

Each human, regardless of race, religion or any other differences, has certain fundamental desires in common, such as the need for health, personal security and financial security. Providing workers with a respectable living wage can go some way in helping them to realise these basic desires.

The irony is that while no society can function without workers, it often seems to be the case that the best interests of workers are not prioritised. Therefore, beyond a respectable wage, workers also need to work in safe environments, they need job security, and they deserve to be treated with the dignity due every person.