G-20 London Summit: The Future of Workers Worldwide

April 13, 2009

After the Summit, the questions to ask is if the representatives at the G-20 will promote policies focused on reducing inequality, protecting workers' rights and promoting fair trade. As stated by ITUC General Secretary Guy Ryder:

“We welcome the fact that in key areas, including employment and the role of the International Labour Organisation, the intensive effort made by national and international trade union bodies before the Summit put jobs at the centre of the recovery process. Our challenge now is to ensure that there is real progress in the lead up to the next G20 leaders’ meeting this year – that in the words of their own communiqué, they translate their words into action.”

The ITUC represents 170 million workers in 312 affiliated national organizations from 157 countries. 

After analyzing the 29 Points from the London’ Summit’s “Global Plan for Recovery and Reform”, the current status of the global economy with a current 2.7 percent shrink, as well as the OECD countries’
reduction by 4.3 percent  so far in the first quarter of  2009, the tragic picture of seeing unemployment continuing to increase in some major economies, led to certain trade unions to conduct advocacy work around the world on the jobs issue, including meetings with G20leaders in the days prior to the Summit and in London itself. This had a major impact. As stated in this Global Plan previously addressed, the depths of the crisis facing the world economy and calls for a global solution. Furthermore, it stresses the importance of “the needs and jobs of hard-working families” and the need to “restore confidence, growth and jobs”.

The Summit did not agree on additional fiscal stimulus measures – it agreed to “take whatever action is necessary” to restore growth and called on the International Monetary Fund to assess the actions taken. Additionally, social and labor issues were further highlighted in reference to the need to adopt “a new global consensus on the key values and principles that will promote sustainable economic activity”.

To conclude with the main outcomes of the G20 London Summit, the former included:

  • Jobs and social issues moved up the agenda and ILO will take part in follow-up to the summit; G20 also supported further discussion on a “charter” as proposed by Chancellor Merkel based on ILO, OECD, WTO, IMF, WB norms and agreements;
  • Over a trillion dollars of largely new funding was agreed for major lending facilities, including Special Drawing Rights - the bulk of which will go to the IMF;
  • However, no new money was agreed for further global stimulus packages, and the design of the banks’ bailouts and other risk-sharing aspects for tax payers were barely addressed;
  • Forward agreement was reached on various financial regulatory issues; however this is to be in the hands of an expanded Financial Stability Forum – renamed as a “Board” but itself made up of central bankers;
  • An agreement was reached to take action against “non-cooperative” tax havens as identified by the OECD if necessary through sanctions.

The representatives that attended the G20 London Summit gave the impression to make a lot of promises that seemed hard to fulfill on the current global economic status. Hopefully, they keep their word and impact the workers’ rights globally, in a positive way.

Prime Minister of the United Kingdom, Gordon Brown, outlines the Summit outcomes below.