COVID-19 Impact Brief

Decent Work

IN BRIEF

The COVID-19 crisis has uncovered the huge decent work deficits that still prevail in 2020. In particular, the crisis highlights the vulnerability of millions of working people and the lack of social protection coverage. At the same time, many small businesses are operating in precarious situations and global supply chains are often too weak to be sustainable.

KEY STATISTICS

While 94 per cent of companies that responded to the UN Global Compact annual survey report that they have policies and practices in place specifically advancing labour rights, only 29% of them conduct impact assessment for labour rights.

69 per cent of companies that responded to the UN Global Compact annual survey having policies prohibiting the use of child labour or benefiting from child labour — it’s estimated that 152 million children are in child labour globally.

68 per cent of companies that responded to the UN Global Compact annual survey having policies prohibiting the use of forced labour — 24.9 million people are still trapped in forced labour globally.

Only 17% of companies require supply chain partners to adhere to the Ten Principles of the UN Global Compact. For those that do not require suppliers to adhere to the Ten Principles, 32% said a lack of knowledge on integrating the Ten Principles into procurement practices was a barrier.
Working hour losses for the second quarter of 2020 relative to the last quarter of 2019 are estimated to reach 17.3 per cent worldwide - equivalent to 495 million full-time jobs. Global labour income is estimated to have declined by 10.7%, or US$ 3.5 trillion, in the first three quarters of 2020, compared with the same period in 2019. The biggest drop in labour income has occurred in lower-middle income countries, where the labour income losses reached 15.1%, with the Americas the hardest hit region at 12.1%. Global working-hour losses are now projected to amount to 8.6 per cent in the fourth quarter of 2020, which corresponds to the equivalent of 245 million full time jobs (Compared to the fourth quarter of 2019). The estimated fiscal stimulus gap is around US$982 billion in low-income and lower-middle-income countries (US$45 billion and US$937 billion, respectively). ILO estimates, 23 September 2020

CHALLENGES

Millions of companies worldwide are in danger of being forced out of business with grave impacts on employment.

Enterprises in the travel, tourism, hospitality, food service, retail and manufacturing sectors have been especially hard-hit, with large portions of their workforce vulnerable to layoffs.

Micro, small and medium-sized enterprises (MSMEs) are particularly vulnerable.

Increased occupational health and safety risks for those who continue to work in working environments that are not geared up for social distancing.

Working poverty will increase – especially in countries with high levels of informality or weak social protection systems.

The current crisis is severally disrupting every link in the global supply chain, putting more pressure on suppliers which could lead to increased labour rights violations with heightening risks for those already exploited.

ACTIONS

Efforts to limit financial impacts should not be made at the expense of workers’ rights and welfare. We support and encourage companies to take effective measures to identify, prevent mitigate and account for how they address the risks of adverse impacts on human and labour rights in their operations and in their global supply chains.
Ensuring responsible business conduct is vitally important and maintained regardless of the uncertainties that lie ahead.
Engagement with suppliers is essential to ensure decent working conditions in global supply chains while providing support for business continuity by allowing flexibility in delivery and quotas.
Social dialogue between managers and workers are key elements to jointly address the impacts of this crisis.
In the context of an economic downturn, sustaining minimum wage levels is particularly relevant to protect workers in a vulnerable situation and to reduce poverty.
Paying manufacturers for finished goods and goods in production.
Maintaining quick and effective open lines of communication with supply chain partners about the status of business operations and future planning.
Re-think procurement practices as they play a key role in creating sustainable supply chains.
Promote respect for the ILO labour standards.

WHAT COMPANIES
ARE DOING?

Social dialogue: Managers and workers at Nestlé are engaging in social dialogue to redistribute workloads and maintain jobs
Supporting suppliers: L’Oréal (shortening payment times with systematic immediate payments) and H&M (supporting the global supply chain and its upstream workers), AB InBev (financial support initiatives for their retailers)
Workplace safety and working conditions: Danone (Extensive coverage - health, childcare, quarantine - for all employees worldwide and and Cargill (informing cocoa farmers on critical health and safety updates using its mobile application)
Call to action in the garment industry, endorsed by UN Global Compact
Employers and workers in specific social and economic sectors have developed joint statements and calls for action to protect workers and support enterprises.

TOOLS &
RESOURCES

COVID-19 Impact Brief

Decent Work

News

Latin American and Caribbean Companies Commit to Accelerating SDG Progress

UN Global Compact Hosts 12th Annual High-Level Meeting of Caring for Climate at COP29

UN Global Compact Africa Business Leaders Coalition (ABLC) Showcases Progress in Private Sector Climate Action in Africa at COP29

First Oceans 20 Communiqué urges bold G20 action for ocean stewardship

UN Global Compact CMO Forum Inspires Marketing Leaders to be Catalyst for Sustainability

UN Global Compact SDG Investment Forum Concludes with Launch of Pioneering Report on Sustainable Finance

‘‘Unstoppable Africa” Concludes with Key Announcements and Commitments to Drive Growth in Africa

Unstoppable Africa: Global Africa Business Initiative Champions Pioneering Partnerships and Bold Visions for the Continent's Future

UN Global Compact Ocean Stewardship Coalition Launches the Plankton Manifesto to Address Triple Planetary Crisis

Events

COP29 Debrief: What’s next for the private sector?

Office Hours: Communication on Progress

Academy