The workers’
share of national income has been shrinking in many countries, causing
public dissatisfaction and increasing the risk of social unrest, the
International Labour Organization warned in a report.
“Declining
workers’ share of national income has affected perceptions of what is
fair, particularly given the huge payments some company executives have
been getting,” said Patrick Belser, co-author of the ILO Global Wage
Report 2012/13.
Wages
represent the main source of income for Africans to support their
families. The level of wages, therefore, has a direct impact on the
well-being, education and security of African families and communities.
In
sub-Saharan Africa, the share of wage employment has recently been
showing fair growth. While many countries, including Ghana, Tanzania and
Uganda have recorded relatively modest increases in the share of wage
earners; countries like Namibia, Rwanda and South Africa have managed to
register significant progress.
In
2010, real average wages increased by nearly 10 per cent in South
Africa, where wage growth remained unequally distributed in various
sectors, according to government figures.
Despite
this progress, wage employment in sub-Saharan Africa continues to hold a
relatively small part of the total paid employment jobs. In 2010/2011,
the number of wage earners on the Continent accounted for more than 100
million – a significant amount in absolute terms.
The proportion of wage earners among women workers also remains disconcertingly lower than men.
Although
higher labour productivity resulted in positive wage growth in Africa,
the nature of informal economies poses challenges in measuring the
accurate status of wages. This may result in the projection of an overly
optimistic picture of wage trends.
The quest for reliable data
Data
on the evolution of average wages in Africa are relatively scarce. Only
a few countries in Africa, including Botswana, Egypt, Lesotho,
Mauritius, South Africa and Uganda, carry out quarterly or annual
establishment surveys in order to measure the evolution of earnings.
In
most countries, wage data are best collected through labour force
surveys that are implemented at irregular intervals, and are not always
comparable across the years.
At
present, Africa‘s population stands at just over 1 billion people – a
200 million increase since the turn of the century. Within the next two
decades Africa‘s population is expected to swell to over 1.5 billion –
exceeding 2 billion by 2050. Strengthening labour statistics to monitor
progress and devise policies should therefore remain an absolute
priority.
The only sustainable way to raise wages is through economic growth that brings about increases in labour productivity.
Evidence
shows that productivity growth and education for all are critical to
improving both the level and the distribution of wages.
In
current economic conditions, the ILO encourages member states to adopt a
minimum wage policy to reduce working poverty and provide social
protection for vulnerable employees, such as women, people with
disabilities and youth.
The ILO recommends government authorities set minimum wages after consultation with social partners.
South
Africa, for example, introduced new minimum wage floors in 2002 to
support the earnings of millions of low-paid workers in a variety of
economic sectors, including domestic work.
By
2007/2008, more than 2/3 of the 54 countries in Africa had put in place
a minimum wage policy – with wide variation in the level and design of
the minimum wage across the continent.
While
70 per cent of African countries (where data is available) implement
relatively simple national minimum wages – with a few possible
adjustments by region, sector or broad categories of workers – the other
30 per cent implement more complex systems by industry and/or
occupations.
The
ILO has recently been providing technical assistance at the request of a
growing number of governments and social partners around the world, to
ensure implementation of successful national minimum wage policies.
ILO
also supports efforts made to put in place other practical strategies,
including collective bargaining, in-work benefits and income-support
policies.
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