New ITUC report exposes hidden workforce of 116 million in global supply chains
The global supply chains of 50 companies employ only six percent of people in direct employment, yet rely on a hidden workforce of 94 percent according to new research from the International Trade Union Confederation.
The ITUC report, Scandal: Inside the global supply chains of 50 top companies released on the eve of the World Economic Forum in Davos exposes an unsustainable business model, with a global footprint that covers almost every country in the world and profiles 25 companies with headquarters in Asia, Europe, and the United States.
“Just 50 companies including Samsung, McDonalds and Nestle have a combined revenue of $3.4 trillion USD and the power to reduce inequality. Instead they have built a business model on a massive hidden workforce of 116 million people,” said Sharan Burrow, ITUC General Secretary. ITUC
research shows:
- The cash holdings of 25 companies of $387 billion could increase the wages in their combined hidden workforce of 71.3 million by more than $5000 for a year;
- The combined wealth of 24 companies in the US from including Amazon, Walmart and the Walt Disney company, could buy Canada;
- Nine companies in Asia including Foxconn, Samsung and Woolworths have a combined revenue of $705 billion, the equivalent value of the UAE;
- Seventeen companies in Europe including Siemens, Deutche Post and G4S have a combined revenue of $789 billion, the equivalent value of Malaysia.
The ITUC has set out five recommendations for companies to address the scandal of global supply chains:
- Supply chain– know whom you contract from and publish this;
- Safe work– inspect sites, fix hazards and recognise workers’ right to safety committees;
- Secure work– end short- term contracts;
- Minimum living wages– pay wages on which people can live with dignity;
- Collective bargaining– for wage share and decent wages and working conditions.
Labour leaders at the World Economic Forum in Davos will be putting forward a four step plan to transform the business model of global companies and address inequality:
- Employers ensure fair distribution of wealth through minimum living wages and collective bargaining based on the fundamental guarantee of freedom of association;
- Safety standards are respected with workers in engaged in safety committees;
- Government leaders should implement and enforce the rule of law, mandating the due diligence that the UN Guiding Principles for Business and Human rights demand;
- Governments prioritise the dignity of the social protection floor for their people.
Read the full report here.
