NEWS

COVID-19: ILO estimates $3.4 trillion workers’ income loss

&NewLine;<p><em><strong>Guy Ryder&comma; Director-General&comma; International Labour <&sol;strong><&sol;em><strong><em>Organisation&comma; ILO&comma; in this piece made available to <&sol;em>OpenLife<em> by African Media Agency&comma; AMA&comma; gives an insight into the danger ahead of workers worldwide as a result of COVID-19  <&sol;em><&sol;strong><&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>The human dimensions of the&NewLine;COVID-19 pandemic reach far beyond the critical health response&period; All aspects of&NewLine;our future will be affected – economic&comma; social and developmental&period; Our response&NewLine;must be urgent&comma; coordinated and on a global scale&comma; and should immediately&NewLine;deliver help to those most in need&period;&nbsp&semi;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>From workplaces&comma; to&NewLine;enterprises&comma; to national and global economies&comma; getting this right is predicated&NewLine;on social dialogue between governments and those on the front line – the&NewLine;employers and workers&period; So that the 2020s don’t become a re-run of the 1930s&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>ILO estimates are that as&NewLine;many as 25 million people could become unemployed&comma; with a loss of workers’&NewLine;income of as much as USD 3&period;4 trillion&period; However&comma; it is already becoming clear&NewLine;that these numbers may underestimate the magnitude of the impact&period;&nbsp&semi;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>This pandemic has&NewLine;mercilessly exposed the deep faultlines in our labour markets&period; Enterprises of&NewLine;all sizes have already stopped operations&comma; cut working hours and laid off&NewLine;staff&period; Many are teetering on the brink of collapse as shops and restaurants&NewLine;close&comma; flights and hotel bookings are cancelled&comma; and businesses shift to remote&NewLine;working&period; Often the first to lose their jobs are those whose employment was&NewLine;already precarious – sales clerks&comma; waiters&comma; kitchen staff&comma; baggage handlers and&NewLine;cleaners&period;&nbsp&semi;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>In a world where only one&NewLine;in five people are eligible for unemployment benefits&comma; layoffs spell&NewLine;catastrophe for millions of families&period; Because paid sick leave is not available&NewLine;to many carers and delivery workers – those we all now rely on – they are often&NewLine;under pressure to continue working even if they are ill&period; In the developing&NewLine;world&comma; piece-rate workers&comma; day labourers and informal traders may be similarly&NewLine;pressured by the need to put food on the table&period; We will all suffer because of&NewLine;this&period; It will not only increase the spread of the virus but in the longer-term&NewLine;dramatically amplify cycles of poverty and inequality&period;&nbsp&semi;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>We have a chance to save&NewLine;millions of jobs and enterprises&comma; if governments act decisively to ensure&NewLine;business continuity&comma; prevent layoffs and protect vulnerable workers&period; We should&NewLine;have no doubt that the decisions they take today will determine the health of&NewLine;our societies and economies for years to come&period;&nbsp&semi;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>Unprecedented&comma;&NewLine;expansionary fiscal and monetary policies are essential to prevent the current&NewLine;headlong downturn from becoming a prolonged recession&period; We must make sure that&NewLine;people have enough money in their pockets to make it to the end of the week –&NewLine;and the next&period; This means ensuring that enterprises — the source of income for&NewLine;millions of workers — can remain afloat during the sharp downturn and so are&NewLine;positioned to restart as soon as conditions allow&period; In particular&comma; tailored&NewLine;measures will be needed for the most vulnerable workers&comma; including the&NewLine;self-employed&comma; part-time workers and those in temporary employment&comma; who may not&NewLine;qualify for unemployment or health insurance and who are harder to reach&period;&nbsp&semi;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>As governments try to&NewLine;flatten the upward curve of infection&comma; we need special measures to protect the&NewLine;millions of health and care workers &lpar;most of them women&rpar; who risk their own health&NewLine;for us every day&period; Truckers and seafarers&comma; who deliver medical equipment and&NewLine;other essentials&comma; must be adequately protected&period; Teleworking offers new&NewLine;opportunities for workers to keep working&comma; and employers to continue their&NewLine;businesses through the crisis&period; However&comma; workers must be able to negotiate these&NewLine;arrangements so that they retain balance with other responsibilities&comma; such as&NewLine;caring for children&comma; the sick or the elderly&comma; and of course themselves&period;&nbsp&semi;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>Many countries have&NewLine;already introduced unprecedented stimulus packages to protect their societies&NewLine;and economies and keep cash flowing to workers and businesses&period; To maximise the&NewLine;effectiveness of those measures it is essential for governments to work with&NewLine;employers’ organizations and trade unions to come up with practical solutions&comma;&NewLine;which keep people safe and to protect jobs&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>These measures include&NewLine;income support&comma; wage subsidies and temporary layoff grants for those in more&NewLine;formal jobs&comma; tax credits for the self-employed&comma; and financial support for&NewLine;businesses&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>But as well as strong&NewLine;domestic measures&comma; decisive multilateral action must be a key stone of a global&NewLine;response to a global enemy&period; The G20’s virtual Extraordinary Summit on the&NewLine;Covid-19 response on 26 March is an opportunity to get this coordinated&NewLine;response going&period;&nbsp&semi;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>In these most difficult of&NewLine;times&comma; I recall a principle set out in the ILO’s Constitution&colon;&nbsp&semi;Poverty&NewLine;anywhere remains a threat to prosperity everywhere&period; It reminds us that&comma; in&NewLine;years to come&comma; the effectiveness of our response to this existential threat may&NewLine;be judged not just by the scale and speed of the cash injections&comma; or whether&NewLine;the recovery curve is flat or steep&comma; but by what we did for the most vulnerable&NewLine;among us&period;<&sol;p>&NewLine;

Openlife Reporter

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