16 Days: Women hardest hit by COVID-19 wage loss
Women workers lost more wages than men as a result of employers’ responses to COVID-19. This was the conclusion of the latest Global Wage Report of the International Labour Organisation (ILO) that details the drop in monthly wages worldwide in the first six months of 2020 as the pandemic took hold.
According to the report, estimates based on a sample of 28 European countries revealed that, without wage subsidies, women workers would have lost 8.1 percent of their wages in the second quarter of 2020, compared to 5.4 percent for men. The gap was due to the reduced working hours, more than the difference in the number of terminations. The ILO said that the wage bill lost as a result of the drop in working hours was 6.9 percent for women compared to 4.7 percent for men.
Commenting on the fact that the report is released during the 16-day global campaign for the elimination of violence against women, BWI General Secretary Ambet Yuson said; “the report shows that the impact of the response to COVID-19 on wages and working conditions was extensive and it was not gender neutral. It is likely that this was a major contributing factor to the rise in domestic violence during the pandemic as households bore the brunt of financial stress and hardships.”
The report also found that workers employed in lower-skilled occupations lost more working hours than higher-paying managerial and professional jobs. Based on data from the 28 European countries, the lowest paid 50 percent of workers would have lost an estimated 17.3 percent of their wages without temporary subsidies.
Globally, an estimated 327 million wage earners are paid at or below the applicable hourly minimum wage. This figure represents 19 percent of all wage earners, and includes 152 million women.
BWI said that in Peru, its affiliate locked horns with Faber-Castell Peruana S.A., after the latter dismissed 206 blue color workers of which 80 are women workers. In India, the 1.7 million-strong Self-Employed Women’s Association (SEWA) is demanding its government to provide income support to all families of informal sector workers, majority of whom are women.
Meanwhile in Europe, BWI’s European Regional Women’s Committee (ERWC) is campaigning to address the gender pay gap and unpaid work experienced by women in the region. Citing the European Commission, the committee said that the gender pay gap in the region is about 16 percent on average with the highest gender pay gap in Estonia (22.7 percent) and the lowest in Romania (3 percent).
Yuson said that poor wages for millions of workers, especially women, has been a reality for decades. He said that this is a fundamental problem because there cannot be decent work without decent pay.
“What we are seeing as a result of the COVID-19 pandemic is that labour market flexibility has allowed employers, in particular multinationals, to protect their profits at the expense of workers. The concept of ‘flexicurity’ compromises workers, it has failed millions of workers that have been faced with job insecurity, loss of income and loss of jobs,” Yuson said.
As the second wave of COVID-19 makes its way across the globe, Yuson reiterated the demands set out in the BWI Declaration on COVID-19 which was adopted by the World Board in May 2020. “For as long as we are dealing with the pandemic, our unions will fight to convince governments and employers to put in place an infectious disease paid-leave provision; guarantee wages; and job protection to all workers regardless of employment status. We will also continue to campaign for social protection, unemployment benefits and employment and income support, now more than ever.” #
