On International Workers’ Day, May 1, Oxfam Analysis Shows that the average salary hike of top-paid chief executive officers (CEOs) in four countries – India, the USA, the UK, and South Africa – was 9%, while workers in these countries experienced a dip in their salary by 3.19%. The analysis was based on data from the International Labour Organisation (ILO) and government agencies.
The analysis also revealed that workers in these countries worked “for free” for six days last year because their wages fell behind inflation. In 2022, one billion workers in 50 countries experienced an average pay cut of $685, resulting in a collective loss of $746 billion in real wages. The situation could have been different if wages had kept up with inflation.
According to Oxfam International’s interim executive director, Amitabh Behar, “Most people are working longer for less and can’t keep up with the cost of living.” Behar added that the only rise workers have seen is that of unpaid care work, with women shouldering the responsibility. He explained that women put in 4.6 trillion hours of unpaid work every year, and due to this unpaid work, women workers often have to work reduced-paid hours or drop out of the workforce altogether.
Oxfam’s earlier analysis showed that 150 of the top-paid executives in India received $1 million on average last year, a real-term pay rise of 2% since 2021. The analysis further highlighted that the money made by a single Indian executive in just four hours was more than what an average worker earned in the year.
The analysis also showed that there was a 10% increase in shareholder payout in 2022 compared to 2021. Shareholders saw record payouts of $1.56 trillion in 2022.
To reduce inequality, Behar suggests that governments should permanently increase taxes on the richest 1% of the population. Additionally, governments must ensure that minimum wages keep up with inflation, and everyone has the right to unionize, strike and bargain collectively.
The situation is concerning, especially in the wake of the COVID-19 pandemic. Workers worldwide have suffered immensely, and the pandemic has only highlighted and exacerbated existing inequalities. Governments and corporations must take concrete steps to reduce inequality and ensure fair pay for workers, especially in these challenging times.
