In a world where the cost of living continues to rise while wages stagnate, millions of workers find themselves trapped in a relentless battle for survival. From Africa to Asia, Latin America to parts of Europe, and even the United States, the reality remains the same; wages are simply not keeping up with the basic needs of workers and their families. Despite economic growth in many regions, the promise of fair pay remains elusive, forcing workers into cycles of poverty, instability, and unending struggle. Daniel Kostzer, Chief Economist, Economic and Social Policies at the International Trade Union Confederation (ITUC), in this interview with CHRISTIAN APPOLOS, dissects the root causes of the global wage crisis and why workers across the world should not give up the fight for a fair and dignified livelihood. Excerpts:
Given the current economic realities and the direction of government policies in Africa and globally, do you foresee a future where workers receive wages that are sufficient to meet their basic needs and support their families?
No. And not just in Africa, but also in Asia, Latin America, and even some European countries. In fact, even in the United States, the federal minimum wage is not enough to cover even 25 per cent of what would be considered the poverty line. Historically, minimum wages have never been sufficient to ensure a decent living standard in most countries. Only a few countries, such as those in Scandinavia, have successfully negotiated wages through collective bargaining in certain sectors that provide workers with a decent standard of living.
To illustrate how severe the deterioration in labour relations has been globally, consider Germany. For a long time, Germany did not implement a statutory minimum wage because it relied heavily on collective bargaining agreements that covered most workers. However, over time, it became evident that large groups of workers across different economic sectors were earning wages well below the poverty line. As a result, Germany was forced to introduce a minimum wage to protect these workers.
In theory, according to Convention 131 of the International Labour Organization (ILO), one of the key factors in determining the minimum wage is the needs of workers and their families. This means considering how much a family requires to maintain a decent life; covering food, clothing, housing, healthcare, education, and other essential goods and services. However, for many years, employers and, more recently, governments have resisted discussions on this matter.
It was only in 2024, after persistent advocacy by workers, that the ILO convened an expert group meeting to discuss wage policies, particularly living wages. The recommendations from this meeting were eventually endorsed by the ILO Governing Body.
It is important to understand the distinction between minimum wage and living wage. A living wage is a socio-economic concept that refers to the amount needed for a worker and their family to lead a decent life. However, in practical terms, the living wage is implemented through the minimum wage, which is a legally established or collectively negotiated wage. This means that while trade unions and workers may demand a living wage, it is ultimately the minimum wage that has legal backing.
If that is the case, what then is the way forward for workers in Africa and globally?
The way forward is the same across Africa and the rest of the world, and that is to struggle. Workers must struggle through legal means to demand collective bargaining agreements. They must mobilize and push for minimum wage adjustments that allow them to afford a decent life. Without struggle, achieving fair wages will be extremely difficult. This reality applies not only to Africa but to every part of the world. Some countries may have more opportunities to implement these changes faster, while others due to economic instability, lack of investment, natural disasters, war, or political turmoil, will find it more challenging.
However, even in difficult circumstances, it is crucial to define clear targets and an incremental plan for wage improvements. If a country cannot achieve a living wage immediately, it should set a timeline; perhaps two, three, or four years to progressively reach that goal.
The most important point to remember is that without a well-calculated action plan to lift workers out of poverty by improving their purchasing power, economic and social crises will worsen in the near future. That is why living wages are critical. A minimum living wage determines how the overall economy affects households’ well-being. Meanwhile, the labour market dictates unemployment levels and salary structures. Ultimately, household well-being depends on both economic and labour market conditions.
Households must constantly make short-term financial decisions while facing long-term intergenerational consequences. For example, if parents cannot afford housing or essential services, they may send their 12 or 13-year-old children to work as street hawkers instead of attending school. If workers and their spouses are forced to take multiple low-paying jobs, they may have to leave their children with strangers or without supervision. If families cannot afford education or healthcare, they risk condemning their children to a future of poverty or even losing them entirely due to preventable illnesses or malnutrition.
How seriously should governments and trade unions take this pressing reality that directly impacts workers, families, and society at large?
Very seriously. The problem with governments is their lack of prioritisation when it comes to citizens’ well-being. Governments often ignore workers’ struggles until a crisis erupts. Instead, they focus on what they consider “bigger” issues, such as lobbying from big businesses, foreign and domestic investors, or the elite circles they interact with socially. As a result, they fail to hear the voices of ordinary people.
This is where trade unions play a critical role. They must amplify workers’ voices and pressure governments to recognise the social and economic risks of widespread poverty. This advocacy is in the interest of the entire society, including businesses, investors, and the government itself, because a society drowning in poverty is unstable and dangerous for everyone.
Governments must understand that prioritising fair wages and citizens’ well-being is not an optional concern, it is a fundamental necessity. If poverty and inequality continue to rise, the resulting social instability, crime, and unrest may become uncontrollable. A country that pays better wages will experience better healthcare, higher educational achievements, lower crime rates, increased economic activity, a stronger economy, and a more peaceful and stable society. Trade unions must continue advocating for these changes and ensuring that they are implemented.
Given the activities of trade unions, their advocacy efforts, engagements with governments and how little attention governments pay to their voices, what additional strategies should they adopt to amplify their voices and ensure that governments prioritise citizens’ well-being?
The best approach depends on each country’s specific context. However, there are general strategies that trade unions can adopt. Increasing public awareness is one of the most effective ways to highlight the consequences of low wages and inequality. It is essential to educate society about how unfair wages ultimately harm everyone, including businesses that depend on consumer spending.
Another important approach is exposing contradictions in employer policies. Employers often claim they want highly skilled workers to boost productivity, but they refuse to pay wages that allow workers to afford quality education and training. This contradiction needs to be made visible to society, as it undermines long-term economic progress.
Trade unions must also emphasize the broader social consequences of poverty wages. Inequality weakens social cohesion, leading to a rise in crime, substance abuse, and social unrest. When young people lose hope due to unemployment and economic hardship, they become disillusioned with democracy and lose trust in political systems. This loss of trust threatens national stability and weakens institutions.
Addressing these issues requires decisive and strategic action. Governments must implement clear policies that provide decent jobs, fair wages, and robust social protection systems. Without such measures, inequality and social unrest will continue to escalate, jeopardizing both economic and political stability.
Trade unions have a responsibility to continue pushing for wage policies that improve workers’ lives and ensure a just and fair society. The role of trade unions is not only about negotiating better wages but also about shaping the policies that will define the future of work, economic equity, and social justice for generations to come.
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