Winning the fight for social justice War on Want is a movement of people committed to global justice.
Our vision is a world free from poverty and oppression, based on social justice, equality and human rights for all.
Our mission is to fight against the root causes of poverty and human rights violation, as part of the worldwide movement for global justice.
We do this by: • working in partnership with grassroots social movements, trade unions and workers’ organisations to empower people to fight for their rights • running hard-hitting popular campaigns against the root causes of poverty and human rights violation • mobilising support and building alliances for political action in support of human rights, especially workers’ rights • raising public awareness of the root causes of poverty, inequality and injustice and empowering people to take action for change
Join us!
The success of our work relies on inspiring people to join the fight against poverty and human rights abuse. There are three easy ways for you to donate and join the movement: Call 020 7324 5040 Visit www.waronwant.org/support-us Post tear off the membership form at the back of this report, and send to: War on Want 44-48 Shepherdess Walk London N1 7JP Preface 01
The past four decades have seen a thus ensures that working people can earn dramatic increase in the share of enough to meet all their daily expenses and global wealth going to the most have some discretionary income left over to powerful corporations, their bosses invest in their own or their children’s future. and their owners. As labour’s share of A living wage, in other words, offers people national income has declined around a chance to work their way out of poverty. the world, there has been a parallel rise in the number of workers who find The call for a living wage has a long history themselves trapped in poverty despite stretching back to the 19th century. Yet having a job – the so-called ‘working it is only in recent times that campaigns poor’. In the Asia / Pacific region alone, from across the world have begun to form over 600 million working people are still into a global movement for a living wage. forced to live below the $2 a day This report seeks to chart the rise of that poverty line, many of them women or movement and to highlight the different migrant workers. In the UK, more than ways in which campaigns have mobilised in six million people living in poverty are support of a living wage at the local, national in a working household, meaning that and international levels. It also draws out in-work poverty is now more prevalent conclusions from the most successful than out-of-work poverty among people campaigns around the world, both as a guide of working age. to the positive alternatives that already exist and as an inspiration for what might be This continuing exploitation is an indictment achieved elsewhere. of the globalised capitalist system. It is also one of the immediate causes of the financial The fight for all workers to enjoy decent crisis that brought the system to its knees in terms and conditions is a central pillar of 2008. As working families found themselves War on Want’s work for social justice. This increasingly unable to meet their basic report is a contribution to building the global everyday needs, so they were forced to take movement for a living wage. It makes the call on ever greater sums of debt to make up the for all workers to be paid the living wage shortfall, without any hope of ever paying it appropriate to their economic context as back. Once banks realised that they were a basic right, not a voluntary extra over and exposed to unknown quantities of bad debt above the statutory minimum set down by that could never be repaid, the circulation governments or national wage boards. It is a of capital froze and the system crashed. Yet call to action for working people the world nothing has changed as a result of the crisis, over. After generations of waiting, the living and workers still find themselves condemned wage is a cause whose time has come. to a never-ending struggle to make ends meet.
The right to be paid a living wage is a basic entitlement of all working people the world over, whether they work in the public or private sectors, in the global South or North. The living wage differs from statutory minimum wages in that it is calculated John Hilary according to workers’ needs, not the Executive Director demands of the labour market. A living wage War on Want Contents 02
03 Executive summary 05 1. The case for a living wage 1.1 A basic human right 1.2 Boosting local economies 1.3 Fighting poverty 1.4 Benefits to employers 1.5 Public savings 10 2. The global state of pay 2.1 Poverty wages: a global issue 2.2 Rising inequality 15 3. Understanding the living wage 3.1 Calculating a living wage 3.2 Living vs minimum wages 3.3 A living minimum wage? 3.4 Other labour rights 23 4. Local living wage campaigns 4.1 Alta Gracia: a living wage factory 4.2 Baltimore living wage ordinance 4.3 London Living Wage campaign 29 5. National living wage campaigns 5.1 Scottish Living Wage campaign 5.2 Cambodia: the garment industry 5.3 Malaysia: fighting for an equal wage 5.4 UK Living Wage campaign 5.5 South Africa: fighting for a living wage 5.6 Indonesia: outsourcing and low wages 38 6. International living wage campaigns 6.1 Asia Floor Wage Alliance 6.2 World Banana Forum 42 7. Learning from success 7.1 Developing demands and targets 7.2 Building campaign coalitions 7.3 Building a global movement Executive summary 03
Millions of low paid workers around central to the fight for social and economic the globe spend their lives toiling in justice. The living wage also has an important mines, factories, fields and offices, yet part to play in the fight against income never manage to earn enough to lift inequality – a scandal that is stark and getting themselves or their children out of worse. Many of the campaigns highlighted poverty. The situation is especially stark in this report link the payment of a living for women and migrant workers, who wage to the wider call for a more equal face particular challenges in organising distribution of wealth both within countries and demanding fair pay. Workers, trade and along the global supply chains in which union activists, community organisers many of these workers are employed. and social justice campaigners are The World Banana Forum, for example, challenging this reality by joining explicitly links the two in its work on together to demand a living wage ‘redistribution of value’, calling for the for the lowest paid workers. industry’s profits to be more equitably shared among all those involved in getting This report highlights the movements and bananas from field to market. campaigns for a living wage being developed in all corners of the world. From cleaners In Europe and North America, where in Britain to farm workers in South Africa, the politics of austerity demand that the from garment workers in Cambodia to middle and working classes must all banana workers in Latin America, the global make do with less, the call for a living wage movement for a living wage is gaining ground. might seem untimely. In fact, this demand Many of these campaigns have achieved not could not be more vital. Cuts to welfare only better wages for the workers involved, payments, social services, health care and but also permanent contracts, direct education hit low paid workers (particularly employment, improved conditions and women) the hardest, and drive even more trade union rights for low paid workers. families into poverty. Paying a living wage to these workers would reduce the costs of The demand for a living wage is a simple one: welfare without reducing the incomes all workers should be able to earn, within a of the poorest families. standard working week, enough to provide a decent standard of living for themselves and Opponents of the living wage say that such their families. Such a wage must be sufficient a demand is unachievable and impossible to provide nutrition, shelter, clothing, health to calculate, and that it will harm workers care and education. It should cover other themselves by reducing their employment expenses such as communication and travel opportunities. The campaigns highlighted in that are an essential part of life in the modern this report defy these arguments. In the world. And it should provide enough so that Dominican Republic, the Alta Gracia factory a worker can save a small amount each week. proves that you can run a profitable business at the same time as providing a living wage. The concept of a living wage is grounded in The calculation of a living wage was a clear, the principle that all human beings have the transparent and widely accepted process right to a decent standard of living: a right to which took only a couple of months. Alta live in both dignity and freedom. This is not Gracia also shows that paying workers in just a lofty ideal; this is a human right that is one factory a living wage can provide a 04 e c
i boost to the local economy, creating further that were cleaning, providing security, t s u
j employment opportunities within small, driving buses and serving food. These
l a i local businesses. campaigns also proved that, with the c o s wider community behind them, migrant, r o f
t Winning a living wage means challenging a low paid and agency workers could h g i
f system of exploitation that demands more and would stand together to fight for
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t rights for transnational corporations and less better pay; in some cases, the campaigns
g n i for the workers in those countries where even won the fight for union recognition n n i they carry out their businesses. This system in the workplace and for a return to W
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g calls for increasing ‘flexibilisation’ of the direct employment. a W workforce, meaning jobs which are low paid g n i
v and insecure. Living wage campaigns are an The fight for a living wage is a vital i L
e important strategy for confronting these part of any movement for social justice. h
T policies. The Asia Floor Wage campaign As long as workers fail to meet their explicitly links its call for a minimum living basic needs, despite working untold wage for all garment workers across Asia to hours every week, poverty will remain an alternative economic model, where growth a scar on our communities. As this report is driven through increased wages to the shows, the arguments in favour of a living lowest paid. wage are strong. It also shows that struggles for a living wage around the Campaigns in Baltimore and London proved world are diverse, vibrant and growing, getting a living wage for low paid and with many achieving real and lasting precariously employed workers is difficult, but improvements to the lives of thousands not impossible. Using a model of campaigning of workers. These struggles must now that combines workplace organising with grow into a global movement for a world community activism, they have managed to where no worker ever has to choose win living wages for thousands of indirectly again whether they should pay their rent employed workers by challenging banks, or feed their children, and where the next hotels, hospitals and public contractors to generation has the possibility of really take responsibility for the low paid workers working their way out of poverty. 1 The case for a living wage 05
1.1 A basic human right adequate housing, good nutrition, health, rest and access to education and culture. “Everyone has the right to a standard of living They are deprived of the freedom to make adequate for the health and well-being of himself choices about their own lives and are unable and of his family, including food, clothing, housing, to provide opportunities for their children. medical care, necessary social services, and the This makes the failure to pay a living wage a right to security...” Universal Declaration of serious violation of the fundamental rights Human Rights, Article 25.1 to which all human beings are entitled.
There are many benefits to providing a living A living wage must be sufficient to provide wage to all workers, as this report will show. nutrition, shelter, clothing, health care and However, the most fundamental reason to education. Workers should also be able to fight for a living wage is that it is the only way save a small amount of their wages so as to to ensure that all workers can enjoy the right cover unforeseen expenses and provide them to an adequate standard of living. with some economic security. A worker should be able to earn this amount within For the majority of people, the only way of the legal standard working week. It is the very sustaining themselves and their families is fact that a living wage is defined by its ability through paid employment. If a worker does to deliver a reasonable standard of living, and not receive a living wage for their labour, then therefore to uphold the right to live in dignity they and their families are deprived of the and freedom, that distinguishes it from the possibility of obtaining many of the essential minimum wage, which is rarely sufficient to elements that contribute to a decent life: meet the needs and rights of workers. 1
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Education is one channel through which a However, there is also a growing body of living wage can have a dramatic impact on evidence to support a business case for intergenerational poverty, by challenging the paying a living wage. Numerous research pattern of low educational achievement studies into ‘living wage workplaces’ have among children from poor backgrounds. A shown that the costs of paying a living living wage means that a worker can afford wage are offset by benefits brought to the costs associated with sending children the companies concerned. These benefits to school, such as tuition fees, materials and include reductions in absenteeism, better school uniforms. A regular and stable job staff retention rates, improved productivity, means that parents can commit to keeping improved staff motivation and loyalty to their children at school for longer, and can the company, the ability to attract better support them to complete their education. staff, savings on training costs, more stable, If a worker is paid a living wage, they may reliable services and enhancements to the even be able to save enough to support their organisation’s reputation. 8 9 children to go on to further education, or to university. An analysis of the economic impact of paying a living wage at the Alta Gracia factory Low paid workers are forced to work long (see box) shows that although profits from hours or take on extra jobs to make ends the factory initially increased at a slower rate meet. Many may have to travel several miles than normal, the company was still able to pay to each job, adding on yet more time they a living wage and generate enough profit for must be away from home. This deprives the business to remain healthy. Furthermore, workers and their families of the time they over the three years the business has been need to develop a happy and healthy family running, the initially slower rate of growth in life, and can lead to the breakdown of families profits was offset through greater worker and communities. If workers earn a living productivity, reduced absenteeism and rapidly wage, they have a greater opportunity to increasing consumer support. 10 spend more time with their families; helping with homework or taking them on outings KMPG, an accredited living wage employer, and holidays. Children can attend local clubs has confirmed that: “Paying the Living Wage or have after-school hobbies. Workers and improving other benefits, like holidays, themselves might even have time to return sick pay and insurance have contributed to education, learn a new skill, volunteer significantly to our success...Turnover or participate in community activities. amongst our cleaning staff has more than halved. Morale has been raised. Despite 1.4 Benefits to employers improved sick pay potential abuse has not materialised. Productivity has improved; As argued above, a living wage is essential attitudes are more flexible and positive. simply because any other approach to Service has improved: our help desk gets calculating wages ignores the human far fewer complaints.” 11 right of workers to live in dignity. If paying such a wage reduces the huge profits Many campaigners interviewed for this of the corporations who benefit most report said that the business case for a living from the current system, then that is a wage needs to be more strongly emphasised cost worth paying. by its proponents around the world. These 0
The Living Wage Winning the fight for social justice 8 p a i b t t s c h a f c a r i o L i j c h w h p p w s I 1 a e h w t n s u u n h o o a e n
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s Alta Gracia: Building communities, changing lives 09
“This factory has really been a blessing to our community. There are lunch cafés opening to provide food to workers, the construction industry is booming as workers start to buy homes or improve the ones they live in, and the local schools are full and getting income from In 2010, the Alta Gracia factory in the school fees. These things weren’t the Dominican Republic opened for here before because there were no business: the first factory producing good jobs, but now the money we for a mainstream brand to explicitly are paid is circulating through agree to pay a living wage to its the community. workers. Maritza Vargas, president of SITRALPRO, the trade union “It is not just our wages that representing Alta Gracia workers, told have changed. We also have social us about the impact the factory has security and health insurance; all had on their lives and their community. we have to do is sign up and we get access to health care. We have “When the Alta Gracia factory opened, comfortable work stations and we our main demand was that they pay us have all been given training in things a living wage. This has revolutionised like health and safety, fire safety and the lives of the workers. On a personal first aid: we feel that we are building level, I can now access nutritious food our capacity as workers. and I never have to worry that I can’t feed my family. We live in a nice house “We now find we are treated and we are saving up to try and buy with respect in the workplace – our own home. I have been able to send this is completely different to our my daughter to university and keep experience in the other factory. my son in high school – this was always Our union is able to operate freely my dream, but it would have been and negotiate on conditions. Of impossible to even imagine a few years course, nothing is perfect; there ago. My co-workers have been able to was an adjustment period as it is buy their own homes, their own vehicles so different from other workplaces, and get some financial security for but having a union helps keep things themselves and their families. in check and means we can deal in a relaxed way with any issues that “We don’t have to work the overtime do come up. hours any more, and the management are really accommodating to our “Finally we have the kind of workplace schedules. This means that many that we want. Alta Gracia has a happy workers at Alta Gracia now have the and stable workforce, which is really time and the money to start studying efficient. Nobody ever wants to leave in the evenings. I have a computer and and we have lots of people who want internet in my house now, and have to work here. We hope that we can the time to spend sitting and watching keep on growing and give this TV with my family. This was never opportunity to more of the workers possible before. in this community.” 1
The Living Wage Winning the fight for social justice 0
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kinds without adequate sanctioning and overtime hours and the setting of or reparation.” 18 minimum wages at levels well below the cost of living. In turn, these agreements and polices have severely undermined the social, The strengthening of corporate power environmental and economic rights of the combined with the weakening of citizens’ citizens of those countries affected. The rights has enabled transnational corporations opening up of global markets has created to demand terms of trade that reduce their fierce competition between and within costs and minimise their risks. The costs countries, all hoping to attract foreign and risks are thus pushed down the supply investment in their quest to increase chain to the factories and farms in poorer their own growth prospects. One way countries that produce goods for export to governments have tried to do this is by the markets of the rich world. The removal reducing the legal protection of workers’ of employment rights makes it difficult for rights, in the name of creating a more ‘flexible’ workers in such countries to organise or join workforce. This has led to an increase in trade unions to fight against these pressures. precarious work, a reduction in employee Ultimately it is the workers themselves who benefits, a lengthening of legal working are forced to bear the costs.
A living wage P h o t o : W a r
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2.2 Rising inequality top 1% of individuals seeing their incomes increase massively over the The current era of globalisation is based on last 20 years. 21 This trend is not limited a neoliberal economic model of unregulated to a particular country or place. In China, competition, whereby corporations are free the top 10% now take home nearly 60% to scour the world looking for the cheapest of national income, while in the USA the way of producing their goods and services in share of national income going to the order to maximise their profits. Proponents top 1% has doubled since 1980 and of this model claim that the promotion of now stands at 20%. In South Africa, free trade and unhindered competition is wealth inequality is even worse now the most efficient way to provide goods and than at the end of the apartheid era. 22 services for mass consumption, and that profits made at the top will ‘trickle down’ A recent report by Bloomberg calculated to those at the bottom in the form of that the 200 richest individuals in the world higher levels of employment and cheaper enjoy a combined wealth of over $2.7 trillion, consumer goods. This model is promoted by at a time when the poorest 3.5 billion people corporations, academics and the mass media (half the global population) together hold as the only rational way to organise the global only $2.5 trillion. This list of billionaires economy, with any attempts to regulate the includes the owners of clothing, food, mining actions of corporations criticised as an attack and jewellery companies: the ultimate on freedom and a barrier to development. employers of millions of low paid workers fighting for a living wage around the world. 23 Yet there is no evidence to suggest that this economic system has delivered a higher There is a growing consensus on the need standard of living to the majority of the to tackle the increase in wealth inequality. world’s population. Even in countries where In its 2013 Global Risks report, the World neoliberal policies have resulted in increased Economic Forum identified severe income economic growth, they have failed to improve disparity as one of the top two prevalent the lives of the poorest. They have instead global risks. 24 The IMF has warned that contributed to increasing inequality both global inequality could lead to increased within and between countries. A report social and political instability, with disastrous produced in 2012 by the Africa Progress consequences for the world economy. 25 Panel found that while most countries in The fight for a living wage could play an Africa have experienced growth figures important part in reversing this trend, leading of over 4% in recent years, over half of all to a fairer distribution of wealth between Africans are still living on incomes below workers and employers, contributing to the internationally accepted benchmark poverty reduction among low paid workers for extreme poverty of $1.25 a day. 20 and ensuring more of the wealth created within poor countries stays in the local Wealth gaps between the richest and poorest economy instead of being transferred around the world are growing fast, with the to the pockets of the rich. 1
The Living Wage Winning the fight for social justice 4 c i t n “ h l h P t p k h a b t f “ u o w f s E m l t s “ a m F w S t a f S P a i f t t b y e n o n i o n e u a r h h h h o h o a h o r v f n n
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n
e B o i t i i t k y i b o c t
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t r
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A
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n r n l t r
r s h D a u a . s e s . t n i
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w v y i d b r i e r n m e e s s e k g i r 3 Understanding the living wage 15
3.1 Calculating a living wage social security, nutritional needs etc). Others make assumptions in regard to costs and Opponents often argue that a living wage family size and work from that point. is impossible to define. In reality, although setting a standard that applies to the varying As already explained, the living wage is a circumstances of every worker is not simple, demand for wages to be calculated according most attempts to develop a figure for the to what is needed to guarantee a worker living wage in different countries and their human right to live in dignity. Once locations are remarkably similar. Calculations this basic principle is accepted, the method are normally based on national statistics of calculation, the list of goods to be defining what should be included in a measure included and the number of people one of basic needs, and these are in turn broken wage needs to provide for can be negotiated down to include a ‘basket’ of goods to cover and agreed. The following table provides an both food and non-food expenditure. Some overview of calculation methods from some calculations factor in a number of more of the living wage campaigns described complex variables (family size, availability of in this report:
Table 1: Varying methods of calculating a living wage
Basket of goods Basket of goods Family size Increase? Who calculates? (food) (non-food)
Alta Food bought Includes 25% 1 adult, 2 Annually Initial calculation Gracia, at local additional amount children by inflation done by Worker Dominican market rates for discretionary Rights Consortium Republic income and 7.5% for savings
Asia Floor Basic foods Workers assumed 2 adults, 2 Annually Surveys done on Wage bought at local to spend same on children basket of goods in market rates non-food as on each country; final providing 3,000 food goods figure negotiated calories per adult based on average across the countries
Baltimore, n/a n/a 2 adults, n/a Living wage defined USA 2 children as what is needed to meet the federal poverty threshold
United Everyday food Rent, child care, 1-2 adults, Annually Centre for Kingdom bought at Tesco clothing, transport, 3-4 children Research in supermarket internet, phone, Social Policy, social and cultural Loughborough activities University 1
The Living Wage Winning the fight for social justice 6 w I w T i T 3 S a t i M t b w w i p s n s n o o o
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c n l p r o
,
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k u m i o
t m w t o
a i o t
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n v a e
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r r r i r k p s s m r r m n g e o d e i t
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3.3 A living minimum wage? unrealistic in the short term, particularly for small and medium businesses, and therefore If the basic human rights of all workers more difficult to obtain. They chose instead are to be fully respected, then the minimum to target employers who were considered wage should not fall below living wage levels. easily able to afford a living wage, and to Increasingly, more and more campaigners are build broader acceptance of the concept calling for the legal minimum wage to be set of a living wage by persuading those according to the needs of working people, companies to agree to it voluntarily. 26 not market rates, and thus to become a living wage. However, not all living wage campaigns Whatever tactics are chosen in any given demand that the minimum wage itself be situation, campaigns for a living wage set at the level of a living wage. For some, should actively support demands for the there are tactical advantages to keeping establishment of a minimum wage where such the two levels separate, even if only for a legal requirement does not yet exist, and a transitional period. should use the concept of the living wage to argue for increases to the minimum wage The UK Living Wage Campaign made a so that it meets workers’ needs. Ultimately, conscious choice not to campaign for the these campaigns can represent a first and minimum wage to be raised to match the practical step towards a future where a living living wage. Campaigners believed that wage is the norm. The call for a living wage attempting to push the minimum wage can also provide ammunition for local up to a living wage figure would make demands for wage increases, and as such their demand economically and politically help create a greater space for negotiation.
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3.4 Other labour rights essential part of any movement for a living wage. Any gains won though wage campaigns Although campaigning for an hourly wage will only be sustained if workers themselves, that is sufficient to provide for the basic through their own trade unions, are able to needs of a worker and their family is ensure employers continue to pay wages that important, there are other labour rights that provide for their basic needs in the long term. must also be respected if a living wage is to All living wage campaigns must be careful make a meaningful difference to the lives to reinforce rather than undermine trade of low-income families. union rights. a) Freedom of association b) Job security All major human rights conventions include Low paid workers are fighting not only the right to freedom of association, whereby declining wages but also increasing job workers are entitled to join together with insecurity. Many are now employed on a others (normally in trade unions) in order to variety of fixed or short-term contracts, make collective demands on their employer. and many more are employed through Having a trade union in the workplace means labour agents rather than directly by the that workers can bring complaints against company where they carry out their job. abusive practices, negotiate together on pay The increase in precarious work is a direct and conditions, and raise concerns over long result of policies aimed at introducing a working hours or safety issues. On a sectoral, more ‘flexible’ labour force. national or international level, a strong labour movement can operate as a counterbalance In Indonesia, the use of short-term contracts to the power of corporations. has become widespread in the manufacturing industry. Indonesian trade unions estimate In recent decades, trade unions have come that the number of permanently employed under increasing attack across the world. workers in the formal labour force fell from The increase in precarious work (see below) 67% in 2005 to only 35% in 2011. These has undermined their ability to organise, workers are normally employed on repeated and many low paid workers feel unable to three month contracts, then employed for join or organise a union. Partly as a result a short period through a labour agent and of this, trade unions around the world have then re-employed on new short-term seen stark declines in their membership and contracts – all in an effort to deny them the a weakening of their ability to defend rights. rights and entitlements they would receive In the UK, trade union membership has been as permanent workers. 32 Workers employed shrinking since its peak in the late 1970s, under such contracts live in constant when 13 million British workers were insecurity. This makes it impossible for them members of a trade union. 27 By 2011 only or their families to plan their expenditure, 6.4 million workers were trade union to save for unforeseen circumstances or members. 28 Similar declines in membership to invest in long-term purchases such as have been seen in North America, 29 Europe, 30 housing, transport or education. Asia 31 and Australia. A living wage is only meaningful if workers Efforts to defend the right to freedom of are given a fixed and adequate number of association for low paid workers are an working hours per week. The use of ‘zero 20 e c
i hour’ contracts is becoming more common, cleaning, security or catering compete t s u
j where an employee has a permanent contract with other similar providers for tenders.
l a i with an employer but has no idea how many Their entire business model operates on c o s hours each week they will be expected to being able to sell the labour of others at r o f
t work. Other low paid workers are employed a profit while providing services at as low h g i
f for a very small number of hours each week, a cost as possible. This system prevents
e h
t requiring them to take on several jobs to workers from demanding a living wage, as
g n i make ends meet. In London, for example, a labour costs are already pre-agreed as part n n i job cleaning at a university or at an office in of the tender process. W
e
g Canary Wharf may only provide two or three a W hours’ work, and many cleaners have a Companies use labour agents in order g n i
v number of different jobs, each providing only to save on costs involved in directly i L
e a few hours a week. Often these jobs will be employing someone to do the same job h
T scattered across London, and each will and to avoid responsibility for the pay require the worker to be at work in the very and working conditions for the workers early morning or late evening. The amount of themselves. It also means that the workers money a worker needs to spend on travel in a single workplace such as a hospital or and childcare also detracts from the value of factory no longer have a single employer, but a living wage and adds significant extra time are all legally working for different bosses. to the working day. This makes organising and bargaining for improved rights within that workplace both Living wage campaigns need to link wages practically and legally impossible. with terms of employment. A number of campaigns have already started doing this: Thousands of workers, particularly Queen Mary, University of London agreed to migrant workers, are obliged to pay bring its entire cleaning staff back in-house fees to the labour agent for arranging after recognising that the use of labour agents paperwork, contracts, immigration and temporary staff made the implementation documents, uniforms or simply for finding of a living wage impossible. In Indonesia, them work. Many migrant workers will also campaigners have explicitly linked the living have a significant part of their salary deducted wage and secure employment together as for low quality food and overcrowded, part of their campaign. substandard accommodation. 33
c) Labour agents d) Social security Many low paid workers are now employed Almost all workers receive less in their pay by labour agents rather than directly by the packet than the hourly wage they are company or organisation that owns their contracted for. Deductions are made from workplace. This is happening in both the this gross salary as contributions to social private and the public sectors, where private security schemes, pensions, taxes and job- companies are used to provide building related expenses such as uniforms, food, maintenance, construction, security, cleaning, accommodation or transport. A living wage catering and administrative services. needs to provide for the basic needs of a family, and must therefore be calculated as Labour agencies or brokers who provide take-home pay: the amount the worker workers for service contracts such as receives after these deductions are made. 21
Just as important are the social security Wages are a particular issue for migrant provisions that a worker can access. For workers, as the wages they receive rarely low paid workers, whose ability to save for match those promised by the labour agents the future is limited, rights such as maternity that are normally involved in recruiting them. pay, sick pay, holiday pay, pensions and At the same time, migrant workers incur unemployment insurance are vital to ensure significant costs for travel, legal documents that sudden changes in circumstances will not and agents’ fees; most have to borrow money plunge them back into poverty. These rights from family and friends, money lenders also mean a worker is able to take holidays or the labour agent themselves. 34 As with their family, look after sick relatives or migrant workers, they are expected to children, and maintain a healthy and stress- send remittances back to their families free pregnancy, all of which contribute to a and are subject to wage deductions for decent quality of life and all of which are of accommodation, food and health insurance. particular importance for women workers. The right to earn a living wage applies to all Many low paid workers, particularly those workers, regardless of their country of origin employed on short-term contracts, through or legal status. Yet often migrant workers, labour agents or on a ‘self-employed’ basis, who are even more vulnerable to are denied these basic rights. A number exploitation than their local colleagues, are of the living wage campaigns featured in systematically denied the right to an equal this report have included provision of wage, let alone a living wage. improved sick pay, holiday pay and maternity rights in their demands for a living wage. Migrant workers face significant barriers to organising and are often unable to e) Migrant workers access legal protection for their rights. Millions of workers around the world This means that, although strikes or other are living and working outside the country forms of industrial action are not uncommon or region of birth. Migrant workers are in the migrant worker community, such often employed in low paid jobs and struggles are usually short-lived and often systematically deprived of the rights result in the loss of the legal right to work, provided to local workers. and ultimately deportation. UK: Cleaners join together to fight for a living wage
22 e
c Consuelo and Lenin are activists nothing more. Now they know us, i t s
u from Justice for Cleaners, a campaign they listen to us, they support us. j
l
a demanding a living wage, union i c
o recognition and direct employment Lenin: Unfortunately, despite these s
r
o for cleaners at London universities. gains, the fight for our labour rights f
t
h Here they tell us about their struggle. continues. After we won the living g i f wage, the company carried out reprisals e h t Consuelo: I came here, like most against our union. They called in the g n i
n migrants, to find a better future. Once immigration authorities and got a n i I arrived I came up against a lot of number of our friends deported, even W
e
g barriers, like having a different culture. though they hired them in the first a W
I ended up working as a cleaner at the place because of their vulnerability to g n
i School of Oriental and African Studies exploitation. Although they recognised v i L in London. As cleaners we suffered a lot our union, they have never been willing e h
T of injustice such as unfair pay and abuse. to negotiate with them or come to any We had no information about our agreements, even in those cases where rights and this is what the company rulings have been made in our favour. takes most advantage of. They make We get no sick pay, no holiday pay and changes to our work and we never no pension, and we are discriminated know why. We never know about them against, humiliated and victimised. until it is too late. We have said they should tell us if they are making For all these reasons, we continue changes to holidays, but they never do. to demand direct employment from the university, but they don’t want In 2007, after three months of us to do this, they think it is too expensive. not getting paid, the cleaners came Yet, although we work through together and joined UNISON in intermediaries, our work is directly order to demand that our rights in the university: for it to be nice, for are respected. We organised a people to be able to study and work, demonstration, got petitions signed, for the place to be clean. So they should made posters and sent letters to the take us into account. We deserve it! university and to Labour MPs. We also managed to get support from the As workers and human beings we must students and lecturers here. We were join together and demand our rights. demanding a London Living Wage, the We have to fight with solidarity, recognition of our union and direct optimism and bravery and not allow employment by the university. anyone to treat us as though we are worthless. We deserve to be treated the Finally we won the fight for the living same as any other workers and to have wage and for union recognition. This our rights respected. We have to start has really helped the families of the fighting now, not just for a living wage cleaners economically, and due to the but for our dignity. We can’t wait for support we got from the students and tomorrow; we have to keep fighting staff here it has made us more viable until we win. as workers. We are very grateful for the unconditional support we were given. For more information: We felt before that nobody knew us or soasunion.org/campaigns/ cared. We were simply the cleaners and justice-for-cleaners [end box] 4 Local living wage campaigns 23
4.1 Alta Gracia: a living where union activists had fought for a decade for the recognition of their trade union and wage factory improved labour rights (see box). The Alta Gracia factory in the Dominican Republic is the first and to date the only living The Worker Rights Consortium was wage garment factory in the world. Described mandated to calculate a living wage level by its employees as “the kind of workplace all that would be sufficient to maintain a decent workers dream of”, it has proved that respect standard of living for one adult and two for workers’ rights is possible in an industry children. Workers, trade unions and local as competitive as the garment and experts were consulted on what items should sportswear industry. 35 be included in a basic basket of goods and services; a survey was then conducted to Alta Gracia was set up by the American calculate the cost of these items in local company Knights Apparel, which wanted to shops and markets. An extra 2.5% was see if it was possible to provide reasonably added as discretionary income and a further priced and ethically produced clothing for the 7.5% for savings. Employer and employee student market. After engaging in extensive deductions were also included in the final dialogue with a range of labour and student figure. The living wage for 2010 was calculated organisations, Knights Apparel agreed that to be 235,987 pesos a year (£3,700). This their new factory would set out to provide a figure was over three times the minimum real living wage, the full range of trade union wage in the Dominican Republic, which in rights and good health and safety practices. 2010 (the time of calculation) was 70,200 They also agreed to establish the factory on pesos a year (£1,100). The wage figure is the site of the now closed BJ&B factory, linked to inflation and increased annually. 36
THE ROOTS OF ALTA GRACIA: UNION STRUGGLE AND INTERNATIONAL SOLIDARITY
“If we wanted to get decent treatment, signed in a Dominican Republic free we really had to reach out and find allies. trade zone. The agreement included It wouldn’t have been possible to get a a 10% increase in wages, productivity union otherwise.” Maritza Vargas, bonuses and other benefits. 37 President of SITRALPRO The change was short lived. Less than In 2001, 150 workers at the huge BJ&B one year after the agreement was factory were fired for organising a trade signed, BJ&B management began to union to challenge appalling conditions reduce the workforce, shifting work to and poverty wages. The union reached other factories both within and outside out to United Students Against the Dominican Republic. In February Sweatshops asking for support. In April 2007 the management suddenly 2003, following a long international announced it was closing the factory. campaign in North America and The closure devastated the community, Europe, the union was finally able to leaving thousands of workers sign a collective bargaining agreement unemployed and with little hope with management, the first ever to be of finding new work. 24 e c
i For the Alta Gracia project to remain can talk directly to consumers about their t s u
j credible, it was important to ensure that the experience. Retail outlets also display
l a i originally agreed standards were maintained. promotional boards carrying the personal c o s As the factory has fully recognised the trade stories of all those involved in the Alta r o f
t union and engages in collective bargaining Gracia story. h g i
f with its representatives, workers are able to
e h
t resolve most issues at the factory level. The difference between Alta Gracia and
g n i SITRALPRO has maintained its direct links mainstream garment suppliers is not just the n n i with United Students Against Sweatshops wages its workers earn. Workers testify to a W
e
g and with other student and fair trade groups fundamental shift in the power relations a W across the USA, meaning workers are able between them and their employer, and a g n i
v to raise any unresolved issues directly with workplace that is based on respect for the i L
e consumers. The Worker Rights Consortium dignity and rights of its employees. There is h
T has free and regular access to the factory no reason why such a scenario cannot be and the workers, and produces monthly replicated throughout garment supply chains, reports on conditions at Alta Gracia that but consumers need to be cautious about are publicly available. companies that claim to pay a living wage but fail to implement the checks and balances The target market for Alta Gracia was integral to the Alta Gracia model. always intended to be (although not limited to) university outlets, including both Alta Gracia proves that it is possible to do independent and chain stores. The things differently. If the combination of an involvement of Knights Apparel, an existing organised workforce, socially aware college supplier, meant access to this target consumers and a company with the political market was reasonably open. The presence will to do things differently could be adopted of a highly visible and active student more widely, then the garment industry could anti-sweatshop movement has also facilitated finally deliver a way out of poverty for both the success of Alta Gracia. After years of its workers and the communities where campaigning against sweatshops, students it operates. were now able to promote university products that were verifiably sweatshop-free 4.2 Baltimore living and that were produced by workers with a long history of student-worker solidarity. wage ordinance These groups actively began to promote the Alta Gracia brand to university-owned The first US living wage campaign began in outlets, book stores and churches in and Baltimore as an initiative of Baltimoreans around their campuses, allowing for the brand United in Leadership Development 38 to become quickly established as an (BUILD). Baltimore had suffered a dramatic alternative to the major sportswear brands. decline in the availability of decent work in the decades leading up to the living wage The workers themselves are the face of the campaign. This was in part due to the Alta Gracia brand. Every label on every Alta contracting out of previous public sector jobs Gracia garment carries the face of one of to private sector companies, which offered workers. Promotion also includes regular lower paid, less secure part-time employment workers’ tours, where Alta Gracia employees to workers doing identical jobs. 25
In early 1994, BUILD teamed up with the to the recruitment of over 3,000 low wage American Federation of State, County, and workers into the newly formed Solidarity Municipal Employees (AFSCME), the largest Sponsoring Committee, an organisation union representing government employees, of low wage workers that became central to launch a campaign calling on the City of to the success of the living wage campaign. 40 Baltimore to include living wage clauses in all its service contracts. The campaign argued The next step was a mass campaign which that workers employed on projects funded or called on the mayor of Baltimore to cut off subsidised by the city should be paid enough subsidies to employers until they signed up to keep their families out of poverty. to a plan to pay living wages to all their staff. Mass actions were organised in support The first step was to demand a ‘right to of this demand, and the campaign was able organise’ ordinance, which would void the to get support from local politicians by contract of any contractor who fired a successfully exploiting political divisions worker for organising. Fired workers would in the run-up to city elections. Despite strong then be put on the city payroll. 39 This opposition from the business community and ordinance was passed in the summer of some sectors of the city government, the 2004 and was immediately followed by an terms of a bill were negotiated and the Living intensive joint organising campaign, leading Wage Ordinance came into effect in 1995. 41
Baltimore City P h o t o :
K a t h l e e n
T y l e r
C o n k l i n 26 e c
i The ordinance required private contractors increased financial security and a greater t s u
j performing services for the city to pay sense of worth and job satisfaction since the
l a i workers employed on those contracts a ordinance was passed. In the words of one c o s stipulated minimum hourly wage of $6.10 per worker: “Now I don’t have to worry about r o f
t hour, beginning in fiscal year 1996. This figure going out and finding another job. I’m h g i
f was based on the poverty level for a family comfortable paying my bills. I get to spend
e h
t of four, and would be raised annually in line my money in the neighbourhood....There’s
g n i with inflation. The ordinance applied to any a lot of different things that I can do n n i contractor providing services to the city in the community.” 45 W 42 e
g and operating contracts of over $5,000. a W The creation of an organisation specifically g n i
v There is a general consensus that the costs representing low paid workers is one of the i L
e to the city of implementing the living wage most important long-term impacts of the h
T ordinance have been insignificant. One Baltimore campaign. With the continued analysis of 26 contracts affected by the law support of BUILD and AFSCME, the Solidarity showed that in the first two years of its Sponsoring Committee has been able to win implementation the costs of contracts to the more benefits for low paid workers, including city had actually decreased. The reasons for protection from contract changes, increased this are unclear, but could be a result of lower access to benefits and the right to organise. 46 profit margins for contractors, increased productivity and lower labour turnover. 43 Baltimore’s success has in turn inspired the establishment of living wage campaigns across The creation of the Solidarity Sponsoring the USA, and living wage ordinances have Committee was vital in holding contractors now been adopted by well over 100 US cities to account. For example, by autumn 1996, and localities. The campaign has also been almost two years after the legislation was cited as an inspiration by London Citizens, passed, 26 school bus companies were still the organisation behind the London Living paying their school bus aides below the Wage campaign, which triggered a similar mandated living wage of $6.60. 44 The agencies movement in the UK. employed to monitor the implementation of the living wage had failed to notice this 4.3 London Living discrepancy, and it was down to organisers from the Solidarity Sponsoring Committee Wage campaign to raise the case with the city, finally winning the mandated pay increases and the back The UK’s first living wage campaign was pay for the time workers had not been paid launched in 2001 by The East London 47 the correct amount. Communities Organisation (TELCO). TELCO noted that, despite the introduction Studies carried out in the years following the of the national minimum wage one year passing of the living wage ordinance estimate earlier, many workers were still struggling that around 1,494 jobs were affected by the to earn enough to lift their families out of new legislation; as not all jobs were carried poverty. TELCO began their campaign by out by one person, the number of individuals mapping out who low wage workers were affected could be much higher. Workers who and where they were being employed. They receive the increased wage have reported found that low pay affected both directly 27
and indirectly employed workers in catering, The first public institutions to be targeted by retail, hotels and public services. Many of the campaign were five East London hospitals, the lowest paid workers were employed by where a large number of cleaners and labour agents to provide services such as support staff were employed through labour cleaning and security to large corporations agencies. Activists from trade unions, religious and public institutions in the capital. organisations and community groups used petitions, media exposure and industrial The fact that many of these workers were action to support their demand for a living employed through labour agencies made it wage. In June 2003, Homerton Hospital difficult for them to demand wage increases agreed to provide contract workers the same beyond the minimum wage. The terms and pay and conditions as National Health Service conditions under which they were employed (NHS) staff. By 2006, all five hospitals had were set not simply by the labour agent, but made similar agreements, with one (Royal as part of the terms negotiated when the London) deciding to bring all staff back into tender or contract was agreed. TELCO direct employment. decided that those large companies and public institutions that were the ultimate The campaign was taken to university employers of low paid workers would be the campuses in 2005. In 2005, Queen Mary, target of their campaign. Their aim was to use University of London became the first living public campaigning and workplace organising wage campus in the UK, and by 2008 it too to force these employers to agree to pay a had decided to bring all cleaners back in- living wage to all staff, whether they were house, with much improved pay and employed directly or indirectly. conditions. The campaign spread to other London campuses, with the London School Initial research commissioned by UNISON of Economics, School of Oriental and African into the cost of living in the four boroughs Studies and Birbeck all signing up to a living of East London found that workers would wage by 2009. Between 2005 and 2009, a need to earn a living wage of £6.40 an hour number of other public institutions were also to meet their basic needs, almost £2 higher persuaded to pay the living wage, including than the £4.50 minimum wage at that time. the London Fire and Emergency Planning This figure assumed that a family lived in Authority, Tate Modern and the Department local authority housing, were all in good for Children, Families and Schools. health, could walk or cycle to school, had no debts and claimed full social security Banks were the first private sector targets of entitlements. 48 The figure was revised the campaign, with actions taking place at by the London Living Wage campaign each local branches and bank AGMs. In February year until 2005, when the Mayor of London 2004, Barclays became the first private sector agreed to establish a Living Wage unit to employer to sign up to a living wage, agreeing research and publish an annual living wage to new terms and conditions for contract for the capital. The momentum behind the cleaners employed at the company’s new campaign built quickly through public actions, headquarters in Canary Wharf. HSBC quickly conferences and events. It was taken on as a followed suit, agreeing to an 11% pay rise, key campaign of London Citizens, a coalition extra holiday and sick pay and better working of community groups across London, hours. Success at Barclays convinced the including TELCO. Transport and Gerneral Workers’ Union 28 e c
i (now Unite the Union) that there was real benefits, who get their benefit entitlement t s u
j potential in organising workers at Canary reduced as their wages rise, have experienced
l a i Wharf, and it deployed two full-time a much more limited improvement. c o s organisers to the area. Over the next two r o f
t years Morgan Stanley, Lehman Brothers, The London Living Wage campaign has h g i
f Citigroup, KPMG, PricewaterhouseCoopers allowed individuals and groups from
e h
t and Royal Bank of Scotland all agreed to a wide range of backgrounds to work
g n i become living wage employers. together for a common cause, and this n n i has in turn helped to build strong community W
e
g Next London Citizens joined forces organisation in some of the most excluded a 50 W with UNITE-HERE to call on the Hilton areas of London. Bringing trade union g n i
v Group to adopt the living wage. A mass and community activists together to i L
e campaign was combined with ongoing campaign both inside and outside the h
T recruitment of Hilton workers to the workplace has enable workers to feel London Citizens Workers’ Association. In safer in their organising efforts, and has 2006 the Hilton Group announced that it proved that contract and migrant workers would phase out its use of labour agencies are both able and willing to organise for their and would pay a living wage to all in-house rights. This has enabled workers to gain not staff. This victory was followed by success just higher wages but improved terms and in the retail sector, when the developers conditions in regard to holiday and sick pay, of the new Westfield shopping centre in better working hours and recognition of West London agreed to become the first trade union rights. living wage retail zone in the UK. Finally, the London Living Wage campaign To date it is estimated that around 15,000 has shown that it is possible to hold the workers have benefited from their employer real employer accountable for the working signing up to the London Living Wage, with a conditions of its outsourced staff, and to further 100,000 temporary living wage jobs challenge or even reverse downward created during the 2012 Olympic Games. 49 pressure on wages and conditions associated Workers who are employed full time and not with indirect employment relationships. This in receipt of benefits have seen the greatest success has inspired other groups around impact, while part-time workers, who in many the UK to establish their own local living cases are employed for as little as two hours wage campaigns, and has triggered a stronger of work a week, and those claiming in-work call for a national living wage. 5 National living wage campaigns 29
5.1 Scottish Living communities and the wider economy; (b) to persuade government at all levels to pay all of Wage Campaign their workers no less than the Scottish Living Wage; and (c) to persuade private sector The Scottish Living Wage Campaign was employers to pay no less than the Scottish started in 2007 by the Poverty Alliance and Living Wage. the Scottish Trades Union Congress. The coalition includes the main public sector The Scottish Living Wage Campaign has trade unions, faith groups and many NGOs, decided to use the out-of-London UK living all of which engage with the campaign on a wage calculation (see below), which provides variety of different levels. Coordination and a well researched, independent and annually administrative support is provided by the revised figure already widely recognised in 51 Poverty Alliance. other part of the UK. Ultimately the coalition hopes to convince the Scottish government The campaign has three main objectives: to establish a living wage unit which would (a) to establish a robust evidence base that consider how the methodology for setting demonstrates the benefits of the Scottish the living wage rate could be specifically Living Wage to employees, employers, applied to Scotland.
Scottish Living Wage Campaign P h o t o :
S c o t t i s h
L i v i n g
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C a m p a i g n 30 e c
i The Scottish Living Wage Campaign are employed through private companies t s u
j argued that the public sector should get a living wage. The demand is for living
l a i lead the way on provision of decent wage clauses to be embedded in public c o s working conditions and set an example procurement contracts, as with the Baltimore r o f
t to wider society. For this reason it decided living ordinance (see above). In August 2012, h g i
f that the campaign should initially focus on a member’s bill was submitted by John Park
e h
t government and public sector institutions. MSP that sought to require private sector
g n i The strong presence of public sector employees working on public sector n n i trade unions in the campaign coalition contracts to be paid the living wage. 53 The W
e
g made it easier to involve workers and biggest barrier to achieving this is EU a W support their demands for a living wage legislation, which arguably prevents local g n i
v at the grassroots level. and national governments from requiring i L
e contractors to pay a living wage. The h
T The key task for the Scottish Living Wage Scottish Living Wage Campaign will Campaign has been to build political support continue to press for living wage clauses and awareness of the living wage in Scotland, to be built into procurement contracts, which it has done through public events, and is working to obtain further legal conferences and media work. Locally, the opinions as to the compatibility of this campaign began to press local authorities to demand with EU legislation. sign up to a living wage, with the campaign coordinating and using this momentum to In four years the Scottish Living Wage push for living wage commitments at a Campaign has made huge gains in national level. The first victory came in Scotland, in large part due to its success Glasgow, when the city council became the in bringing together a wide range of first Scottish Living Wage employer in 2009. organisations and the role it has played in coordinating the campaign on a number During the 2011 elections for the Scottish of different levels. The Scottish government, Parliament, the Scottish Living Wage the NHS in Scotland and 20 out of 32 local Campaign convinced the Scottish Labour authorities have now committed to Party, Scottish National Party and Scottish paying the living wage to all their directly Green Party to include the living wage in employed staff. It is estimated that this has their election manifestos. This provided the benefited 15,000 workers across Scotland opportunity to use trade union rallies and who were previously employed on less than political demonstrations to highlight the living the living wage. wage as an election issue. Since then a number of parliamentary debates have been The Scottish Living Wage Campaign has held on the living wage, raising the profile of also succeeded in placing the living wage the campaign even further. In 2011 the firmly on the national political agenda, Scottish government committed to paying a and has won widespread support for living wage to all directly employed workers the principle of a living wage. Despite under its control, including all those employed this success, there remains opposition in the NHS. 52 to the implementation of a living wage for all workers, and the extension of the The next step for the campaign is to ensure campaign to private sector workers will that all those delivering public services who be an important next step. 31
5.2 Cambodia: the In 2010, the Coalition of Cambodia Apparel Workers’ Democratic Union (C.CAWDU), garment industry along with the National Independent Federation of Textile Unions of Cambodia The Cambodian garment industry is one (NIFTUC), called the first ever national strike the country’s biggest employers, and its in the garment industry, demanding that the most important source of export earnings. government increase the minimum wage from The minimum wage for garment workers in US$61 (£40) per month to US$93 (£62) a Cambodia is currently US$66 (£43) a month, month. Over 68,000 workers participated in making it one of the lowest in Asia. Massive the initial day of the strike, and by the third inflation has meant that Cambodian garment day over 200,000 workers had joined the workers have seen a real wage loss of over picket lines. The strike was suspended after 54 14% during the last 12 years. the government agreed to enter into negotiations with unions. Labour rights campaigners say the current minimum wage is almost half that The retaliation against workers was quick and required to meet basic needs. A 2009 brutal. Hundreds of workers were locked out report already found that a living wage should of their workplaces and dozens of legal cases range from at least US$90 (£60) per month were filed against union organisers. Following 55 to US$120 (£79) per month. Trade unions an international solidarity campaign against have been calling for a minimum wage of this retaliation, 160 workers were reinstated US$121 (£80) per month, while the Asia and in March 2011 the government, industry Floor Wage in Cambodia is set at US$283 and trade unions finally signed an agreement 56 (£187) per month. that would increase benefits to workers by US$10 per month. Over the next year, C.CAWDU intensified its organising work MASS FAINTINGS around a living wage. Wage strikes continued, IN CAMBODIA the most recent involving over 10,000 workers at seven different factories. The phenomenon of mass fainting among Cambodian garment workers The strong trade union campaign for a living has been widely reported since wage, the existence of clear wage demands 2011. In that year alone, over 2,400 workers fainted and were taken to and the availability of information on the hospital in 25 separate incidents. impact of low wages on workers made Over 1,100 workers were affected Cambodia an ideal focus for international in 2012, and trade unions say many living wage campaigners. In February 2012, incidents simply go unrecorded. 57 the Asia Floor Wage chose Cambodia as It is unclear exactly what is causing the venue for its second People’s Tribunal, these incidents. According to the providing space for workers to offer ILO Better Work Programme testimony as to the impact of low wages on contributory factors include their daily lives, to examine the international poor hygiene and nutrition, heat and national legal provisions on wages and stress, exhaustion, poor worker- decent work, and to assess the extent to management communications which human rights of Cambodian garment and mass psychogenic illness. 58 workers were being violated. . s ’ r y a
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migrant workers to be exempted. As a result, have been campaigning together for the the government has announced various new minimum wage law to be implemented. amendments to the Act that reduce the The management offered to give the benefits to migrant workers that would minimum wage to local workers within otherwise be gained through wage increases. weeks, but continued to refuse payment For instance, in January 2013 the government to migrant workers, stating that they announced that the levy which an employer were negotiating an exemption from must pay to the government for each migrant the government. 63 On 1 March 2013, all worker they employ can now be deducted 2,600 migrant workers from Bangladesh, from the wages of the migrant workers Vietnam and Nepal went on a five-day themselves. 59 In March 2013, the government strike to demand their wages be increased further announced that it was allowing small to the legal minimum. and medium sized companies to defer the payment of a minimum wage to migrant The fight for an equal minimum wage for workers until the end of the year. 60 migrant and local workers has been the first struggle to unite workers of different There are over 2.3 million registered nationalities in Malaysia, with local and migrant workers in Malaysia, employed in migrant workers coming out together to construction, manufacturing, agriculture, demand its fair implementation. The national services and as domestic workers. These trade union structure, whose membership workers come from all over Asia, including is almost entirely made up of indigenous Indonesia, India, Burma, Vietnam, Nepal, workers, has continued to advocate strongly Bangladesh and the Philippines. 61 The for equal pay, recognising that such equality Malaysian Trades Union Congress has argued is vital in maintaining the gains it has won that the above measures operate as a form for its membership. It is unclear whether of discrimination against these workers, this unity will remain over the long term, and will wipe out any increase to be gained as employers and the government attempt through an improvement in migrant to divide workers by offering different and workers’ salaries. 62 A further 82 national better terms to their local employees. and international groups have joined the campaign, launching a petition calling for the Organising workers already divided by abolition of the government amendments. language and culture is no easy task, and maintaining solidarity between different In February 2013, Nepalese and Bangladeshi nationalities will remain a challenge for the migrant workers at several furniture factories workers’ movement in Malaysia. Yet these in the southern town of Muar went on are challenges that must be taken up, not strike after their employer refused to pay just in Malaysia but around the world. them the minimum wage. A further 500 With labour migration on the increase, the workers went on strike at an electronics marginalisation of migrant workers’ rights factory in the nearby town of Senai, claiming and their exclusion from traditional trade that after wage restructuring and deductions union struggles only serves to undermine they were now earning less than they had rights for all workers. The answer to this is done before the new law came in. At the not to prevent migration, but to ensure that huge Recron textile factory in Malaysia’s Nilai the demand for a living wage applies to all industrial zone, migrant and local workers workers, regardless of their nationality or 34 e c
i legal status. The nascent campaign for an maximum increase will be applied every year t s u
j equal wage in Malaysia provides proof that until it is met, spreading out the cost of that
l a i such solidarity is possible. increase over time. In 2012, the actual wage c o s needed to meet the cost of living (outside r o f
t London) was calculated to be £8.80 per hour, h
g 5.4 UK Living Wage campaign i
f while the living wage figure that accredited
e h
t employers are expected to pay was The success of the London Living Wage g
n 64 i announced as £7.45.
n campaign (see above) has inspired similar n i
W initiatives around the UK. These campaigns
e
g have been built locally, with the formation of Since March 2012, the National Union of a W coalitions made up of trade unions, religious, Students (NUS) and the public sector union g n i
v student and other community-based UNISON have been collaborating on a i L
e organisations. To date, living wage campaigns campaign to get universities and further h T have been formed in more than 10 UK cities. education colleges to become accredited In order to support these efforts, the living wage employers. Together they have community organising umbrella group produced campaign resources, published Citizens UK set up the Living Wage information on the living wage and provided Foundation, which works to encourage public support for groups during both the campaigns bodies, organisations and companies to and the resulting negotiations. Joint events introduce the living wage. The Foundation’s have been held on campuses to raise work includes providing advice on how to awareness of the issue and to help build implement a living wage, offering accreditation links between workers and other members for employers and campaigning on the living of the university community. wage towards government, business, media and the public. The NUS is also providing training to student union officers and members of its affiliate There are two living wage figures for the student unions to inspire campus campaigns. UK: one for London and one for all areas The trainings have focused on providing the outside London. These are calculated annually information, organising and negotiation skills by the Centre for Research in Social Policy at needed to win a campus living wage campaign. Loughborough University, based on research UNISON has been asking its members to into basic costs of living including food and take part in research into pay levels at their drink, clothing, household goods and services, universities, and to feed this information personal goods and services, transport, social into a database showing income disparity and cultural participation, housing and in universities and colleges. The process childcare. The final figure includes a number of collecting the research aims to support of ‘caps’ that, under certain economic campaign building in those campuses where conditions, keep the announced figure lower it is carried out. than a true living wage. This means two figures are calculated each year: (a) the living To date, most of the successful campaigns wage that accredited employers must pay, and have achieved results through the compilation (b) an ‘aspirational’ wage which the living of research, the building of coalitions and wage should aim to reach over time. The idea the presentation of demands to the is that while the aspirational wage remains administration targeted. Agreements have higher than the announced figure, the generally been reached through a process 35
of negotiation involving both students, authorities, universities, student unions university staff and the affected workers. and charities. All these employers have Although campaigns have started on over committed to paying the announced living 30 campuses, these are often scattered and wage and to update this annually. Living wage not always publicly documented. The decision campaigns at educational institutions have of NUS and UNISON to join forces has gained particular momentum: over 30 the potential to bridge the traditional gap campuses now have coalitions or groups between students and employees and to calling on their college administrators facilitate better communication between to sign up to a living wage. these groups. Through better coordination of campaigns, student and trade union activists hope to pool resources, share 5.5 South Africa: fighting information and avoid duplicating work. for a living wage
The existence of an independently Workers across South Africa face a set living wage and an independent constant struggle to survive on wages that accreditation body that can provide are well below the cost of living. Trade unions assistance and information has helped estimate that about 75% of workers earn local campaigners to make concrete an average of 3,300 rand per month (£220), demands to the employers they are well below the monthly ‘minimum living level’ targeting, to unite around a single figure estimated to be between 4,000 and 5,500 and to translate an aspirational demand rand (£270-370). 65 into a concrete reality There are now over 100 accredited living wage employers in The Congress of South African Trade Unions the UK, including big businesses, local (COSATU) has identified the living wage as
Better wages campaign, South Africa P h o t o :
W a r
o n
W a n t 36 e c
i one of its key priorities, identifying it as unofficial strike to demand higher wages and t s u
j “the primary means for workers to fight benefits for farm workers. Started by a group
l a i poverty, close the apartheid wage gap and of non-organised seasonal workers at the c o s address broader inequalities in our society”. De Doorns plantations, unrest spread quickly r o f
t The COSATU campaign is broad, calling across the region, with over 8,000 workers h g i
f not just for a living wage but for a ‘social participating in the strike in the first two
e h
t wage’ which includes guaranteed decent weeks. Years of poverty and frustration boiled
g n i employment, provision of decent housing, over and the strikes turned violent: fruit n n i access to land, access to a national health packing houses and farm houses were burned W
e
g scheme and a national retirement scheme, down, while strikers were attacked by the a W universal free education, affordable public police. Two striking workers were killed and g n i
v transport and changes to labour legislation there were widespread reports of violence i L
e including maternity pay and the abolition against the communities where strikes were h 66 T of labour brokers. taking place.
Industrial unrest in South Africa attracted The strikes were called off in December international attention in August 2012, when to open space for negotiations to take 34 striking workers were killed by police place, but no agreement was reached. at the Lonmin platinum mine in Marikana. Strikes erupted again in January 2013, The strikes had been called by rock drill with thousands of workers at De Doorns operators, who were demanding a dramatic declaring they would continue protests increase to their salary from 4,000 (£270) until a living wage was paid. 68 Strikes to 12,500 rand (£830) per month. Lonmin were again suspended for negotiations, management refused to engage in dialogue but the majority of farms refused to with the strikers, escalating tension over participate. Shortly after the suspension the period of a week until 16 August, when of the strike, thousands of workers were police opened fire on the striking workers fired from the plantations in retaliation. 69 with automatic weapons, killing 34 and In February 2013, the government injuring over 78 others. The strikes at the announced that the minimum wage Lomin mine continued for several weeks for farm workers would rise by over after the massacre, despite attempts to force 50% from the beginning of March. 70 the rock drill operators back to work. On 19 September 2012, the workers agreed to return to work after the company agreed 5.6 Indonesia: outsourcing to a 22% pay increase. 67 and low wages
The images of the police opening fire on Indonesia’s economy is now the16th largest Marikana miners drew the attention of the in the world and growing rapidly: over the world to the huge inequality that continues last two years, the country has consistently to exist in South Africa, and put the issue reported economic growth rates of 6%. 71 of wages firmly on the political agenda. In Much of this growth has come about through October 2012, thousands of agricultural a large manufacturing sector which employs workers in the Western Cape went on an millions of workers to produce electronics, 37
garments, cars and other consumer goods. precarious work and the widening of social Yet little of this wealth has trickled down to protection schemes for workers. the workers. Although Indonesia has a legal minimum wage, this is not sufficient to In September and October 2011, thousands provide a decent standard of living. of Indonesian mine workers went on strike to demand a five-fold increase in The current minimum wage is around their wages. This was followed by strikes 2 million rupiah (£125) per month, two by thousands of car workers in February thirds of the Asia Floor Wage figure of 2012, which were triggered by a court over 3 million (£190). 72 This figure does decision to overturn a minimum wage not include social security benefits and is increase for their province. In response calculated to cover only a single worker to the strikes, Indonesia’s President Susilo rather than a family. While all workers are Bambang Yudhoyono stated that if the guaranteed the minimum wage, discrimination Indonesian economy continued to grow, exists between men and women workers it would also be necessary to increase in the form of family benefits and tax workers’ wages. 75 This presidential statement incentives, which only apply to married was not, however, followed by any concrete men. 73 This means millions of women action to improve salaries for Indonesia’s workers are earning even less that their male lowest paid workers. counterparts. The problem of job insecurity is also on the increase, as a large number of In July 2012, KSPI called a national workers, particularly in manufacturing, are day of action to demand that these employed on short-term contracts. At the promises were kept. 76 The action, same time, economic growth has led to entitled HOTSUM (Outsourcing Abolition increasing inflation 74 , eroding even further and Declining Wage Refusal), called for the value of already low wages. demonstrations at three locations in the capital Jakarta and in 15 provinces Trade unions in Indonesia campaign for and cities across the country. HOTSUM’s increases to the minimum wage each year main demand was for the government through lobbying and demonstrations. In to increase the number of basic goods 2012, the Indonesian Confederation of included in government calculations Labour Unions (KSPI) launched a campaign to define an acceptable living standard. for decent work which focused on increasing A total of 40,000 workers joined the wages, eliminating the use of outsourcing protest, paralysing the centre of Jakarta. 77 and strengthening social security claims. The Further demonstrations took place in trade unions argued that while Indonesia was September and October 2012, when tens becoming richer, this was not improving the of thousands of factory workers took part lives of the millions of workers who were in a one day strike to demand a higher producing the nation’s wealth. Unions called minimum wage and an end to the law for an improvement in the level of the allowing employers to hire workers on minimum wage and in its implementation, one year contracts without benefits, as an increase in the national benchmark for well as to oppose a proposal to deduct a decent (living) wage, an end to the use of 2% of wages for social security payments. 78 3
The Living Wage Winning the fight for social justice 8 6
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h h n s r e l d d e e . , 39
living wage across their supply chains. An Asia of the living wage. The organising of Brand Bargaining Team has been established in the People’s Tribunal in Cambodia order to carry out negotiations with brands contributed to the strengthening of calls that agree to participate. The international for a living wage in that country and led campaign has focused on promoting the Asia to greater solidarity both nationally and Floor Wage as a legitimate benchmark for internationally with the trade unions living wages across Asia, and a campaign has already engaged in industrial action on been launched against some of the biggest wages (see Cambodia case study, above). brands and retailers in the garment industry The existence of the Asia Floor Wage calling for a living wage to be implemented in has provided campaigners with a Cambodia. The campaign will widen to other concrete figure, which has come directly countries over the next three years. out of the Asian workers’ movement, to demonstrate the gap between prevailing The key success of the Asia Floor Wage to and living wages. This has enabled living date has been in supporting the development wage activists to increase consumer of coalitions within countries that can pressure on brands and retailers to take organise around the implementation action on this issue.
CALCULATING AN ASIA FLOOR WAGE
The assumptions: (a) A living wage should be earned within a standard for 1 adult = 50% food costs + 50% (48 hour) working week. non-food costs The calculation: In 2009, a survey On average, workers spend about of food costs was carried out in half their income on food and the rest each participating country, and the on non-food goods and services. To formula above was used to calculate arrive at a living wage figure, the cost a living wage level for each country. of a basic basket of goods that would This was then standardised across provide a minimum of 3,000 calories the region according to purchasing is multiplied by two. power parity (PPP) dollars, which reflect what a worker would need in (b) A living wage should be the amount each country to buy the same goods needed for two adults and two children that a worker in the USA could buy with US$1. The figures that were A family is defined as two adults and produced for each country were two children. It is assumed that a child averaged out and an Asia Floor needs half the income of an adult to Wage figure was established at get adequate nutrition and standard PPP$475; this figure was then of living. One adult is defined in the converted back into the local formula as one consumption unit; a currencies of each country concerned. family of two adults and two children is Adjusted for inflation, the Asia Floor calculated as three consumption units. Wage for 2011 and 2012 was set at PPP$540, and a new survey of food A living wage is therefore calculated as: costs is currently being undertaken (cost of food goods x 2) x 3. This wage to inform future calculations. Worker in a banana plantation, Honduras
40 P h o t o :
W a r o n
W n a t
6.2 World Banana Forum The World Banana Forum’s work is significantly different from other initiatives, The World Banana Forum, a multi-stakeholder in that it is attempting to deliver increased initiative hosted by the UN’s Food and wages through social dialogue on an Agriculture Organisation, was set up in 2009 international level. Sustained campaigning by to promote open dialogue on challenges trade unions in Latin America, producers in facing the banana industry. It includes the Caribbean and Africa and civil society participants from producer organisations, groups in Europe and North America has trade unions, cooperatives, exporter groups, been instrumental in creating the momentum fresh produce companies, retailers, traders, for the establishment of such a forum. The public agencies, governments, research need to develop an industry that is more institutions and civil society organisations. environmentally, socially and economically One of the objectives of the Forum was sustainable has also pushed industry defined early on as the “fair distribution representatives from both South and North of value” along banana supply chains, to engage in dialogue with other stakeholders encompassing the need for banana workers in the international banana supply chain. to earn a decent wage as well as ensuring fair prices that would cover costs of production A paper commissioned by one of the Forum’s and enable a reasonable profit to be made. working groups in 2010 suggested that a 41
living wage could be defined by looking at a) as the first step towards delivering how much a worker should be paid in order higher wages means it is difficult to to live decently or “with dignity”, and b) how assess the impact of its work on the lives much it is fair to pay when the wealth of workers on the ground. The development generated by banana production is taken into of a social dialogue process between actors account. Although there was agreement that that have been historically hostile and that one of the Forum’s aims should be to work have intrinsically different interests in the towards paying a living wage, the consensus process is never going to be easy. A statement among the various parties about how to submitted by COLSIBA, the Coordinating move forward was more difficult to achieve. Body of Latin American Banana and Agro- This included concern from the trade unions Industrial Unions, to the last World Banana that if work on wages was not directly linked Forum meeting drew attention to the lack to collective bargaining it could undermine of participation of producers and export progress towards mature industrial relations. companies in key working groups and the lack of commitment to working with the unions It was agreed that the gap between minimum to meet the Forum’s objectives. At the same wages and the cost of a basic basket of goods time, trade unions involved in the Forum and services was significant, and that a first have also stated that there has been an step should be to look at how to close this improvement in their ability to organise gap, whilst undertaking research to better on the ground in recent years, including understand what an actual living wage should the negotiation of the first ever collective be in each country. A work plan was adopted bargaining process in Peru. This may be that included actual wage studies in Ecuador attributed in part to the increased trust and Colombia, which would for the first time being built between different actors on the involve the exporter associations in those international level. countries. Wage ladders would be developed to show different wage indicators in eight The potential of the World Banana Forum to countries: Cameroon, Colombia, Costa Rica, deliver on living wages, along with other key Dominican Republic, Ecuador, Ghana, labour and environment issues, lies in its Guatemala and Honduras. This would show provision of an open and transparent space the gap that needed to be addressed for living for discussions and negotiations to take place. wages to be met in each country and provide The Forum’s decision to establish a benchmarks for progress. The results of these permanent process with clearly defined and studies were presented at the World Banana agreed objectives and to focus on carrying Forum conference in Ecuador in February out practical initiatives means that all the 2012, and further studies are being carried parties are held to account for their actions; out in different banana producing regions, it also allows ongoing negotiations on wages including West Africa. The Forum is now and conditions to take place. The biggest exploring mechanisms for how to redistribute challenge for the Forum is to transform value along the supply chain, including the traditional power relationships between development of pricing mechanisms to cover employers and workers’ representatives and the costs of a living wage. between participants from South and North, and to develop relationships between those The World Banana Forum is still in its early actors that will deliver on providing a more stages, and its focus on relationship building equitable industry. 4
The Living Wage Winning the fight for social justice 2 7
F o s d a r t t S a o r i w c a r v T b M 7 a a t l m i t f i a w p L h o o r i o L m n i n n i h o e e e e t h o
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s r g a e e l r l i a d t l v u n i d s d n n v o o m p t d r u e c c n
t c v g g o u m h a u t i b
e i
s h s i e t e r e t u
n o i a a e d u u u c r m e e i p e , l g t l m t m
b e h o
m r a y e
n a i r f y a t c m a s
s
r w b r l l
s g
s
a s e i a n m i e e i r a a a s n a u g w l
u p d l
n t
b p . n y
s h o p e l u e i
, e r l s w
o
t t g
d
t
b i r s
t m g c
S s l e e e
l i u g t w c
l p o t c i t n i i w n v a t o d y e e o r n i i f
z h e e o o t t h o i o n f d
e n e v a s e ,
g l a e t s n o e
p o i o e y
t e s
i
o r
e a
n n n e t m
t i m r i i
r t e w
l h h e t p n t
m t n m n o n v
a t ,
. t i g h i l m h y
k s
d i h t r
o a h n m i p e e m a h h a e t t a t I r o g
s e e a p v r h a e
e
e a n
e e l a
t i r y t e
r o l f o c a
d p e a
g t i s o s
, n a r s p e
t a h h d
e e m n w n o
n
e m t
, t c l b c
t
e u l n r
n
e t s i s s k
n e m e o e a n o . a
o D g d n t t l g i e v
a e a t l . i s a o n o g a i
e l a
e e I h
d i x k s s t g
n t t
w h l y i e t i
n s m v m n m d o g y s d
d m d m o w n m
t
f n e g i i e c
m s s e t e i e u o o a s i h f e
i
i t
e s
e n d e m s
e t e
p
n a r o e t
t a t d r
e e t
e s o
t r t t t f n m
e
c o s g e e r p i t n i h a h g e m
i g h e o
o t h s i o n n
f
c n i g
h t r e t o
n m a c p o i t
h a w c n t d i e a e m o d e e s s
t f g t e
n s s g t t o i a a i l t t l a s
e p t w e i r
s
; t o g l
h s
y
n l s p e
c a l c a ,
t l f
t o u w t
s
t e a p
i b
y n r o r
h e c o t
c a
n h t s s o t r d
r
a o e b o e e c r n o a f t s
p o y l d o o r h
t t a
o d t
r n
n t i s e l e a
r h h s s , f f r m h d
i
h a
v
b f r l o m e l f e o
f n
i s u m r m
m o s s m
v i a j e i d i o a a g
o w d h a i a c e o t R l t t
n f
l i i s a n
e c r e e
n l w u
d v
t
b p c i h c d r o a e v t p r . l e o i t b t e c
i o e t i c l g h a m
e d d g h r
a n
s l l a s b i o i o o
h r w a b
a
e
e n s s p
d s a r e e r u e
m
e i e s w
s o a d a w n
p e l l t
u g e b l b s r k
e e t u e s i o l
n h e i r i
n w s
t e r v y e
h s
n
n o t a s l r e e a p a
s d e c s a b A a o i i c o i a a g d
o e f f
f
e
c o e n i s g k s
r c i f a a g d o e u r t i l r v u b
s y l s t
w s
l
m n
i
e
d e s i e i a f a
o i m e n e a t e l
m c h s n t l w b
v o b w r u e g i p o .
r i
a r
u . d
n g r g
, a
m ,
t i W u
i e
c n a t
c a w f n e c r i p a r t
H n a w i a n u t o t r s i l
e f t s h a k s n G s m a o s y i a i h i h t h p s
a h e n e g
r s o c g g r i m k e r
g u o i e
c t
h c t n n . i e e o e
t e n
e d f
r k h p a i m b e s s g r e Y e i h t w r s e t e o w i i g r
r a
p
g r u t e
c k t a n l i a e h t e e m n o l e t o a n e c f e i
e u u c s t i l
a
a r e i c l e n o h s r e t t
y v u t d
e f o a t
n s i s n s g o i s h h
r v
u l a a a i r r g i n
i t t i . o ’ a n f
e c s n e
e v s f e a r
t r n h d a . g i f
e r
e e i n i
l s e i n s r , s s d y g 43
workers. For example, in Indonesia the part of a demand for fairer distribution campaign directly links these two issues, while of profits down global value chains. the campaign at Queen Mary, University of London led to all contract staff being directly 7.2 Building campaign employed, with many being given longer hours. Most campaigns have also attempted coalitions to use living wage campaigns to strengthen trade union organising and to press for The most successful living wage campaigns greater union recognition within workplaces, were those that brought workers and their as in the case of Baltimore and within the trade unions together with students, international contexts of the World Banana community activists, consumer organisations Forum and Asia Floor Wage. or faith-based groups together to demand a living wage. Building broad-based coalitions Many of the campaigns featured here have has meant these campaigns benefit from sought to look beyond the workplace to a range of expertise in different but identify targets that have the power to make complementary skills including grassroots the living wage a reality. This is in part a organising, negotiation, research, lobbying, reflection of the current model of low wage policy work and campaigning. This has in turn employment, where the direct employer may ensured the development of strong platforms not have full control over pay and conditions. for demanding and winning a living wage. Campaigns in Scotland and Baltimore chose to focus primarily on public authorities, The involvement of such a wide range of using the argument that public money must groups brings its own problems. A lot of be used in a way that supports local energy can be taken up trying to maintain a economic development. This includes the cohesive campaign across groups with very demand that all private companies receiving different interests and priorities. Problematic public subsidy or supplying the public sector power relationships can easily be replicated pay a living wage. – for example, workers’ groups can be sidelined, and groups from the global South Campaigns in the UK targeting universities can find themselves dominated by those from and hospitals have taken a similar approach, the global North; similarly, maintaining long- focusing their activities not on the labour term commitment from each organisation agencies or private employers used to involved can be a challenge. Once campaigns provide most of the services delivered start registering successes, there is also a by low wage staff, but on the administrations danger that splits emerge over the right way of those institutions where these workers to move forward, presenting the question carry out their duties. In London and the of who gets to ultimately represent the Dominican Republic, the target was the campaign in negotiations and decision making. multinational companies that were not themselves the direct employers but that had In most of the cases featured in this report, the power to demand living wages were paid the building of coalitions constituted a and the economic ability to assume the costs. significant part of the work of the campaign, Both the Asia Floor Wage and the World particularly at the outset. This process, while Banana Forum focus on the living wage as time consuming, is essential in overcoming 4
The Living Wage Winning the fight for social justice 4 o l c m c b w w o e l p w i o s o s t t n T l l t E w d o c c b t s i i a d T g g t a i s e o n m h r r h h t u o o n r a a o a v s y r e q a e o r f f r n
h h b f o o o r a
a a w o o
e r e s n m m o i t p r d
m g
t o e m l p t u
m t c n e e u o g d d o b l h a e r r r
i v g t h u a p r c e
d
o a o d r w e
t g g p p s k k k g r e e u u e u e n e a u w a n a e a p e m f o c r l
e
t
g r
a n e e e i p a a
l i n
r o i m n t d g i i w i w
a s g s t s y r n u u l r d t o l l a n d t s n i i i t r r e
l a d i h e d a , u i s
e e d w h a g g a h
a t r i v r g e n n t
s
e e o a f a c j f e i n b i d
i
l n n p n n
t e i o t
y i c o a e f f o e
n r n i i
n g n w n f
t g y u t o r o
s
g o t o o
t
i s e p o g t c m u s
i f
r c f g e h u g h n
d t k t
h
w n o o .
b e
r o
t o
t
u n n , w o i r h n r o
a
T
i
t
f e t m t g i a t
e h
p i t n c o a s n
m w o c i n r
r r s
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o m e s a i r w y
g e n o h t a m o r o e r o r o
a
a
a k o f ; a i e v g r a t n
h
n h o d d a n e s a
e d f e g e n r o d p o m l l s n i w n l
e
p i e a l r s s
i s i f g s r n t n a c e a e s p a r k r i
r
d
n a e t
r
r f o g v l u r e s u e l
r e u t e e i k
o p e n d d
p a e t f l c r r a i k i l a n
s a , i i l h i w a l r m e
a g y a n n e l r e r a c n t
t u e i a s n r
o v a b g e
r w n a i v i t i d e n a i
h t s e m n
d
e t s r n i s n e r n g n s n o i i n o h y n r t i g i i l c t
r n t
s . y s n e
e h
s n e t
e
e
g i s g t i s i o h
a
w r e y n T e u t a e e a o o w
t
i o g
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n t
w
i ,
g
h c n k f t
a s i m r u
s l w w r t o n a m h l u
h n a r r o , o w n b e
t o w r o o i
a e e h a t c
d
t n
w p e t g a e i r s n e s t e m a s
e i n p a r g w t l
l r l e e n f e .
h d u a e
t c
d h t
h a e i
o ,
i t c
k T a g n e t
s a , a t n n t n o a h i i
g
i n t o o u e t l e c c a
a a i w o n t l o n e
p o r w g i
l o h p h n e u - i
o
e n e g y , o i i h n n a s r r w s l o
g i c s i e c n t v s r
l t e e d s e i t n s n
n t s o
t r e m
e
c e f a i
n o o i r i n
i
i c r
m
i u n
a f u
e
n
r i s i n
a
t t o n o t r c b e r c r o s g t o o f o t a c a
n t c l s p i t v h c h n n h g i l v k r m o e t c y
e o i a . e h m o r b g
m e s
r
o l f n c o s h t l
i e a
d o a
e g e o p m I
g s
d o m . t v h g e n a h o v s c e e d n
f a
t t
l d
a b i e r w a s p l e e i u o a
s v n c e y
c t o n c o
h e
v r v e l g
i i s o ,
e l l i r a
i
a
a
n e g
e o t n l a d m e n r
i e n e e g g
e t m h w m
f i b o d b m v
r h e n u i r t s o
m i c g d i s n r
m
m
e g u e .
t s o e u l
i r
a f a
p e m c t e d t n s a . a o m o a n
r i P n
u
t i e n
a n a h r
n n i p n i n u o n c r m n s n e t r
n e
l g u n l n w l u . n d d
g i p
d d a a h u e a e g t a s o s a e p t n o i l
d r d
p o
a t d s
, l i i
t l b o r
i v e w i
e t
n
s
t e p t a t t i o t i n g l n s i h f i i w s c p g e t o e n f i h a e i s
m m
n n o i i l c
o n v f o
y s a g n a t a i e a
r l t f e
f e t b o g i t t r e y i
e o o s g
r s
s n o n g i a m e l h n i i r
. t d y a
m o e n e v t r
n n r g n a e h a g s
e i s c n l d t t n n e e e , e t e d n i d m s s i t c g p a a a o W 7 a d m d a i T i t n c s t o a p l e m i t y n r I n m n n i n n o o o o e t m e e a n n r f
b a a v c r a r o e e e f n h f v g r t
. t o o o
e t m e m n o i
i t o d d i t l o v b m p b d t t e l e o n e n e l 3 l e a i d t o h
i a i v v d n o
i m o
e v
n o a r a o r i t v r r l
a g s c
o p n b o e e , i i t r e e a l
e o
i b o l k b t t k n n n
i n o t t
n
h t i d o e o t a g e m p r v n n m m t n o e p B n w l
e e r e h
a v a
t h a m
a h e s i e e c e i
p r f d g d g l s i e l g
u o n e s r l
t
t i t a y
e l n e e e t a o r r e
d d b
n i e m n u
e i
n i m s e r y m m
m . t n l f
w a o s i o g a n n
f g i
y r v
t
. t c A a n r m a s n s o n
o g , r t d f e n T a e i i e
h t n t t i e n o
r b
n e t
o a r n a h n o m
l r i i
s f l c i l p
m h . d n i e o e o a
o a a h
m w n o g n m n
e
t h g m o v T
, e g u w r d
a l a a l
t i i l a l a e a n e b g m r c
t e a a i n
o o r l
p y i n i
n h
v p s n e t s
c
t n k o c
t a
s o c s a a i
l m g
c l l p o r n s e a w c o h e d i e i r h t
n o a a o a i t i
g t e l n n r m v
m e s o t v n l e o a
i
s a r d g e e i m
f
m w r t e e e
w r y
h i a i d d
r
m i t u s m a l g r a u n u e d e v i
r
g t p n a n w s e
m
g h n e u
e i b i n p t
n c p h n w c n n t i s g m
e
s t t t a g e s t a t n p e e
l m p h f y c o a u a i o d a h h e
s a e t
a s h i c g
t o i o n i w
c g
a n f ,
e t p n i w i r e u i c h p
t d
r e
n a r t t g o e g n g l o r d i
i o t n w i i i i k e i
r o s
k c h e o a g l i r
e w l n t a e o t n
n h n
g a c r o i s n o a
a e
m d e s e w e
s n w
e t g r o s n s t b
s g l o r
s n e k b
o b s a f
i d s i b l s a r a e e g t p e s i , a
e o ,
e a m p
r u m
i i o
a t r f r a g W
i s i o s f
l
d . a l n n r d d n o r .
l l a l r s
f o
o a l o n l t t s e e
i r d
l L A l n r
t e i a i
f g n
u a
s t e d o o
i b c
r e v b t m s c u k s b s o o s o a n i a
o a y
p a a
e t i e n s n m t a
. i c v
h u d .
a l e l n
l l a
r
e
t
n m t d h n i l o c
o p a r l m o d H i
H a i r t l t o v o a p
s r
i l a t g t d o a
m e g a a
e o
h o h r e o e l c l
v v h
i s i c
s p s
f c i m , o l n v
p n o l
t e a o l
u r t n
a a e o f e e
e n n , n
t a e w e t o n a
o o e
f w i i d d a s g w s a w s l l v r h g a
m
e
m n c a o m f
v
l
a v
, W
l i r c
a
l
y
a u
l
m i r t s p l o a e c o g t e y i
a w e o r v a d e t f a a i
t l e i s
g e a t t p h c o n l n t o r i
e
o s
l e
r v
w c n l v o e
c
h r o o e n , a s f a r i n l a t l f e a
e u g e r g s k s e v u s r m e i i n u o d a
h s u e e n b v . t g e n v i
t a
u
v r p e i s e c e r r g T r l r a w r g
t n a a p r s l a e r i e t i i s
o d , a i e , o l a a
r n r p o n
l n n t e h l g b e
v a
r e t h
s m o i
t l
y h n
s a t w i f t t n t a l a
n
e e
s g l e e o l h c p i s o y i i i h e
a t y
o g l e t m t
n e s v n
s e
o
o i t c i i i t e
r . n
s w i e e t p s r n r f e s o w c d s g o n h m
n y n
d a
r g l h a
t a . t e n a y
o t t o o y a g i n i a m , a o u n i e l g n l d n
e i t s c .
45
Notes
1 See chapter 3 for more detail on the setting of minimum 22 Ibid wage levels. 23 Matthew G. Miller and Peter Newcomb, ‘The World’s 2 Peter Drier and Donald Cohen, ‘Raising the Minimum Wage 200 Richest People’, Bloomberg Markets Magazine , is Good for Business (But the Corporate Lobby Doesn’t November 2012 Huffington Post Think So)’, , 23 February, 2013 24 Global Risks 2013 , World Economic Forum, Geneva, 2013 3 ‘Minimum Wage as Economic Stimulus’, Raise the Minimum 25 Dominique Strauss-Kahn, ‘The Right Kind of Global Wage, www.raisetheminimumwage.com Recovery’ , address to the Monetary Authority of Singapore, 4 Daniel Aaronson, Sumit Agarwal, and Eric French, ‘The 1 February 2011 Spending and Debt Responses to Minimum Wage Increases’ 26 Interview with Jane Wills, London Living Wage Campaign, The Federal Reserve Bank of Chicago, 8 February 2011 December 2012 5 Ibid 27 James Achur, ‘ Trade Union Membership 2009’ , Department 6 Interview with Maritza Vargas, President of SITRALPRO, for Business, Innovation and Skills, April 2010 December 2012. 28 Nikki Brownlie, ‘Trade Union Membership 2011’ , Department 7 ‘Poverties or Poverty?’ Poverties Org, Research for Social for Business, Innovation and Skills, April 2012 & Economic Development, www.poverties.org 29 Wade Stone, ‘The Decline of Trade-Unions in the US and 8 ‘Living Wage Employers’, Living Wage Foundation, Canada’ , Global Research, 7 June 2011 www.livingwage.org.uk 30 Mark Carley, ‘Trade Union Membership’ , European industrial 9 ‘I want to live not just exist: the business case for a living relations observatory online, 25 May 2004 wage’, UNISON and NUS, Living Wage Campaign, 31 Sarosh Kuruvilla, Subesh Das, Hyunji Kwon and Soonwon www.unison.org.uk Kwon, ‘Trade Union Growth and Decline in Asia’ , British Journal 10 Alta Gracia Living Wage Apparel, of Industrial Relations, September 2002 www.altagraciaapparel.com 32 ‘Trade union rights violations around the world in 2011’, 11 Guy Stallard, Director of Facilities, KPMG Europe, in ‘Not Just ITUC Survey Indonesia, 2012 For The Good Times: The New Imperative for Fair Pay’ , London, 33 See, for example, the cases described in Restricted Rights: Fair Pay Network, 2009 Migrant women workers in Thailand, Cambodia and Malaysia , 12 ‘The London living wage: Numbers and money’, As calculated War on Want, May 2012 by Jane Mills, Queen Mary, University of London, 5 34 Sam Maher, False Promises: Migrant Workers November 2012 in the Global Garment Industry , Clean Clothes 13 Glen Bramley and David Watkins, ‘The public service Campaign, 2009 costs of child poverty’, Joseph Rowntree Foundation, 35 Information for this case study was taken from interviews October 2008 with Martiza Vargas, President of SITRALPRO, and Rachel 14 ‘Wages and Equitable Growth’, Global Wage Report Taber, Community Education Coordinator at Alta Gracia, 2012/13, International Labour Organisation, 2013 December 2012. 15 Kayte Lawton and Mathew Panneycook, ‘Beyond the Bottom 36 ‘Living Wage Analysis for the Dominican Republic’, Line: The Challenges and Opportunities of a Living Wage’ , IPPR Worker Rights Consortium www.workersrighs.org & Resolution Foundation, January 2013 37 ‘BJ&B Worker Union Gains Collective Bargaining 16 Interview with Patricia Dyata, Secretary General, Sikhula Agreement!’, US Labor Education in the Americas Sonke, December 2012 Project, April 17 2003 17 Gus Van Harten, ‘ Investment Treaty Arbitration and Public Law’ , 38 Madeline Janis-Aparicio, Steve Cancian & Gary Phillips, Oxford: Oxford University Press, 2007 ‘Building a Movement for a Living Wage’, in Poverty & 18 John Ruggie, ‘Protect, Respect and Remedy: A Framework Research Action Council (PRRAC), Poverty & Race Issue, for Business and Human Rights’ , Report of the Special January/February 1996 Representative of the Secretary-General on the issue 39 Margaret Levi, David Olson, and Erick Steinman, of human rights and transnational corporations and ‘Living-Wage Campaigns and Laws’ WorkingUSA ,Vol 6, 2003 other business enterprises, UN document A/HRC/8/57, 40 Reynolds David, ‘The Living Wage movement mushrooms April 2008 in United States’ , published in Deborah M. Figart, 19 ‘Stitched Up: Women workers in the Bangladeshi garment ‘Living Wage Movements: Global Perspectives’ sector’ , War on Want, July 2011 Psychology Press, 2004 20 ‘Jobs, Justice and Equity: Seizing opportunities in times of global 41 Ibid change; Africa Progress Report 2012’ , Africa Progress Panel 42 Niedt, Ruiters, Wise, and Schoenberger, ‘The effects of the Geneva, 2012 living wage in Baltimore’ Working Paper No. 119, Economic 21 ‘The cost of inequality: how wealth and income extremes Policy Institute, 1999 hurt us all’, Media Briefing, Oxfam, 18 January 2013 43 Ibid 4
The Living Wage Winning the fight for social justice 6 4 4 4 5 5 5 5 5 5 5 5 5 5 4 4 4 6 5 4 9 8 7 6 5 4 3 2 1 0 9 8 7 E R L f m i L R N R C ‘ ‘ ‘ D ‘ P P S J ‘ P J l N / a C P Q t P U 3 i M a N h h T N P G F P W 3 c T M M S T n i n a a o 1 h v o o s i a h o i c a a t t 0
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n J 0 t k l x e d s s s g K
t c p p g t d t ’ m n i u r m
P e w w o r s : :
e , e i i B i a t e e s e e n t e e g
/ / 8 W W a o e y L m m e l k a o r T t ’ s o l i l d i
i a m
w / / m r r y n e n m o a r s
c e
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n n o o , i m n e 0 e R t , n p w w
W
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c i I h l S t
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Published: September 2013 War on Want War on Want fights poverty in developing countries Written by Samantha Maher in partnership and solidarity with people affected by globalisation. We campaign for human rights, especially War on Want workers’ rights, and against the root causes of global 44-48 Shepherdess Walk poverty, inequality and injustice. London N1 7JP United Kingdom Cover picture: May Day Demonstration, Dhaka- Bangladesh © MUNIR UZ ZAMAN / AFP / Getty Images Tel: +44 (0)20 7324 5040 Fax: +44 (0)20 7324 5041 Design by www.wave.coop Email: [email protected] www.waronwant.org This report has been produced with the financial assistance of TRAID. The contents of the report are the sole responsibility of War on Want and Company limited by guarantee can under no circumstances be regarded as Reg No. 629916 reflecting the position of TRAID. Charity No. 208724
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