TUAC called for a fundamental shift in economic thinking during Pre-Ministerial Council Meeting consultations in Costa Rica on the 11th March, urging the OECD to champion a model that addresses rising inequality and ensures the benefits of trade and growth are shared with all.
TUAC highlighted alarming inequality trends that threaten both economic growth and social cohesion. The global share of income earned by workers continues to decline, with CEO compensation in the US now reaching almost 300 times the wage of a typical worker – compared to just 21 times the ratio sixty years ago.
As the OECD has shown, high inequalities are bad for economic growth. Governments have to do much more to address inequality by pursuing economic policies that reward work over capital, promote quality jobs, and ensure a fair labour market. We must not underestimate the ability of populist forces to exploit people's discontent.
Trade unions stressed that strong labour market institutions are essential for guaranteeing workers a living wage and decent working conditions. TUAC also called for increased public investment to address the triple transition across climate, digital and demographic spheres.
On digitalisation, TUAC highlighted the importance of social dialogue in AI implementation, emphasising that by involving trade unions in the deployment, monitoring and oversight of AI tools in the workplace, business can ensure better outcomes.
TUAC expressed serious concern about the limited progress toward the Sustainable Development Goals, with only 17% of SDG targets currently on track. The financing gap for these goals has grown by over a third since 2015, with projections showing it could reach 6.4 trillion USD by 2030 if current trends continue. Trade unions called for governments to recommit to the UN target of dedicating 0.7% of GNI to development assistance, highlighting that currently only Denmark, Germany, Luxembourg, Norway and Sweden met this commitment in 2023.
Addressing these development challenges, TUAC called for a comprehensive approach in the forthcoming OECD Development Strategy.
The development strategy should recognise the role played by trade unions in development cooperation, acknowledge the contribution of collective bargaining in driving sustainable and inclusive economic development, and commit to the vital importance of social protection.
The consultations in San Jose were part of preparations for the upcoming OECD Ministerial Council Meeting, where inequality, digitalisation and sustainable development will be central themes.
