The Hell of the ILO

The 100th International Labour Organisation (ILO) conference opens in Geneva. German Chancellor Angela Merkel and Russian Prime Minister Vladimir Putin are among the 5,000 representatives of governments, employers and workers attending. Swiss President Micheline Calmy-Rey will give a speech.

In the ILO’s latest report Director General Juan Somavia said “Income inequality has risen in most countries, with incomes at the top running away from average incomes. In developed economies income inequalities have translated into wealth inequalities and may undermine social mobility in the coming years”

Globally, 80 per cent of the world’s population shares 30 per cent of the world’s wealth, with 70 per cent accruing to the top 20 per cent.

Since 2009 global unemployment has risen to record levels. In 2010 there were 205 million people out of work and 2011 does not look any better. Young people – 80 million are unemployed - are the worst hit by the current growth model that no longer works, says the ILO.

The number of workers in vulnerable employment – 1.5 billion (around half of the world’s labour force) – and persons working but surviving on less than US$2.00 per day – 1.2 billion – is on the rise again,

“We have in front of us the bigger danger of further consolidating inefficient growth patterns and unfair globalization rules that were at the root of the crisis, and that have systematically increased inequality almost everywhere in the last 30 years,” Somavia said. “No wonder people are upset and angry. Too many feel squeezed – including the middle classes between the immediate social impact of the crisis and these long-term trends.” Somavia said that people were also angry over the perception that it seems some financial institutions are regarded as "too big to fail” while many people are seen as “too small to matter.”

"Discontent worldwide is reaching dangerous levels. In three-quarters of the 82 countries with available information, a majority of individuals are getting increasingly pessimistic about their future quality of life and standard of living. This all points in one direction: mounting frustration with a lack of jobs and decent work" Somavia said "Global wage growth has been cut in half, trailing productivity increases. Income gaps between the top 10 per cent and the bottom 90 per cent are widening, with the middle class squeezed in between. There are limits to how much inequality a society’s social fabric can bear. There are many signs that the limits are fast approaching or have been breached."