The International Trade Union Confederation (ITUC) has welcomed the living wage agreement reached by the International Labour Organisation (ILO), describing it as a major victory for working people.
ITUC General Secretary, Luc Triangle, said the agreement marked an important step towards international action to deliver living wages as well as a leap forward in social justice. He stressed that the agreement was reached by the global body after 80 years of neglecting the importance of living wages.
According to him, the agreement is expected to foster greater coherence with ongoing national and international initiatives aimed at defining, estimating and delivering living wages.
With economies battling socioeconomic challenges, Triangle lamented that for too many workers, wages have been insufficient to lift themselves and their families out of poverty, let alone secure a dignified livelihood.
The ITUC chief maintained that the move was an essential part of the new social contract – to reshape the global economy to serve the interests of working people.
The Guardian reports that the agreement was reached in February during a tripartite meeting of experts on wage policies and endorsed by the ILO’s Governing Body at its session on March 13.
The new definition states that a living wage is “the wage level necessary to afford a decent standard of living for workers and their families, taking into account country circumstances and calculated for work performed during normal hours.”
The ILO agreement stresses the critical roles to be played by empowered wage-setting institutions and instruments, particularly social dialogue and collective bargaining.
It also stresses that governments and social partners should “ensure the incremental progression from minimum wages to living wages”, while it sets out several basic principles for estimating living wages.
This, the ILO stated, includes the use of evidence-based methodologies and robust data that are transparent and publicly available with consultation with social partners, and regular adjustments to reflect cost of living changes, while considering regional and socio-economic realities.
In addition, the ILO is required to assist governments and social partners in evidence-based wage setting. This involves aiding data collection for wage discussions, offering technical support to determine living wage needs and assessing relevant economic conditions upon request.
