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  • Ontario's middle and working class families are losing ground August 15, 2017
    Ontario is becoming more polarized as middle and working class families see their share of the income pie shrinking while upper middle and rich families take home even more. New research from CCPA-Ontario Senior Economist Sheila Block reveals a staggering divide between two labour markets in the province: the top half of families continue to pile […]
    Canadian Centre for Policy Alternatives
  • Join us in October for the CCPA-BC fundraising gala, featuring Senator Murray Sinclair August 14, 2017
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    Canadian Centre for Policy Alternatives
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    Canadian Centre for Policy Alternatives
  • What’s next for BC? July 4, 2017
    Five weeks ago the CCPA-BC began a letter to our supporters with this statement: “What an interesting and exciting moment in BC politics! For a bunch of policy nerds like us at the CCPA, it doesn’t get much better than this.” At the time, we were writing about the just-announced agreement between the BC NDP […]
    Canadian Centre for Policy Alternatives
  • Could skyrocketing private sector debt spell economic crisis? June 21, 2017
    Our latest report finds that Canada is racking up private sector debt faster than any other advanced economy in the world, putting the country at risk of serious economic consequences. The report, Addicted to Debt, reveals that Canada has added $1 trillion in private sector debt over the past five years, with the corporate sector […]
    Canadian Centre for Policy Alternatives
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The Progressive Economics Forum

Global Wage Crisis

The International Labour Organization has just released its second Global Wage Report, “Wage Policies in Times of Crisis.” The International Trade Union Confederation’s press release follows:

15 December 2010 – The ITUC has welcomed the second Global Wage Report from the International Labour Organization (ILO). “Today’s report reinforces what unions around the world have been saying about the economic crisis and the policy responses that governments need to put in place,” said ITUC General Secretary Sharan Burrow.

The ILO confirms that global wages have stagnated during the crisis. Excluding questionable figures for China and adjusting for inflation, global wage growth slowed from 2.2% in 2007 to only 0.8% in 2008 and 0.7% in 2009.

While these world averages remained slightly positive, wages actually decreased in many countries. “Even workers who remained employed during the crisis experienced flat or falling pay,” observed Burrow.

Over-reliance on exports and consumer borrowing for economic growth has proven to be unsustainable. To achieve a meaningful economic recovery, countries need to increase domestic demand based on rising wages and a more equal distribution of income. The ILO emphasizes three policy solutions in today’s report: inclusive collective bargaining, legislated minimum wages, and social protection programmes.

In addition to providing new data on wages during the crisis, the report also presents a longer-term analysis of low pay, defined as being below two-thirds of a country’s median wage. Since the late 1990s, the incidence of low pay has increased in two-thirds of the countries for which figures are available.

However, the ILO found that low pay is much less prevalent in countries with higher levels of union membership. “Unions are part of the solution, in terms of ensuring that wages rise along with productivity and that these gains are shared fairly,” said Burrow.

UPDATE (December 17): Quoted by The Guardian and La Repubblica

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