OECD calls for better working conditions

23 May 2015

A major study conducted by the OECD had found that the rise in in self-employment, temporary and part-time jobs over the past two decades has been a key factor in the rise of inequality. It finds that all the net jobs growth since 1995 in the UK has been accounted for by non-standard work.

“We have reached a tipping point. Inequality in OECD countries is at its highest since records began,” said OECD Secretary-General Angel Gurría. “The evidence shows that high inequality is bad for growth. The case for policy action is as much economic as social. By not addressing inequality, governments are cutting into the social fabric of their countries and hurting their long-term economic growth”.

The OECD said; “Non-standard workers are worse off in terms of many aspects of job quality. They tend to receive less training and, in addition, those on temporary contracts have more job strain and have less job security than workers in standard jobs. Earnings levels are also lower in terms of annual and hourly wages”.

“In the six years since the global economic crisis, standard jobs were destroyed while part-time employment continued to increase.”

The richest 10% of the population now earn 9.6 times the income of the poorest 10%, up from 7 times in the 1980s, with the shift to non-standard work as a causative factor, according to the report.

TUC general secretary Frances O’Grady said: “We cannot build a secure recovery off the back of zero-hours contracts and weaker employment rights. If we don’t create more decent jobs inequality will continue to soar and the economy risks running out of steam.

“The hire and fire culture of recent years has allowed unscrupulous employers to hold down pay and make staff survive off scraps of work.”

The IER believes that collective bargaining is crucial to reducing inequality and ensuring quality jobs growth. To find out more about collective bargaining, Reconstruction After the Crisis: A Manifesto for Collective Bargaining is available for purchase.

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