Johannesburg: Employment and Labour Deputy Minister Jomo Sibiya has called for the dismantling of the misconception that competitiveness and fairness cannot co-exist in the global labour market. The Deputy Minister was delivering remarks at the Labour 20 (L20) South Africa 2025 Summit.
According to South African Government News Agency, Sibiya emphasized that fair wages, decent work, and strong social protection are not barriers to growth but are essential elements for creating resilient, future-ready economies. The anticipated Employment Working Group declaration supports these efforts, recognizing the importance of full and productive employment, sustainable social protection systems, and wage-setting mechanisms grounded in rights and fairness. It calls for expanding formalization and reversing the decoupling of wages from productivity.
The summit, themed 'Fostering solidarity, equality and sustainability through a new social compact,' brought together trade union representatives from G20 countries and international trade union federations. The L20, coordinated by the International Trade Union Confederation (ITUC) and the Trade Union Advisory Committee (TUAC) of the OECD, represents workers' interests at the G20 level and has been active since the global financial crisis in 2008.
Through its existence, L20 aims to ensure that the voices of workers are heard in discussions on economic policies and labor rights. South Africa's labor federations, including Cosatu, Fedusa, Nactu, and Saftu, attended the summit. Sibiya commended the L20's commitment to addressing major labor market challenges, including inequality, declining real wages, and the shrinking labor income share of GDP.
Sibiya highlighted that the issues affect societal cohesion and contribute to workers feeling that growth is not benefiting them. For the global south, the value of labor has been diminishing, with productivity rising but not benefiting workers, especially those at lower wage levels. This disconnect between wealth creation and distribution is deemed unsustainable.
Sibiya outlined South Africa's employment strategy, anchored in four key priorities: promoting inclusive growth and youth employment, accelerating gender equality, reversing the decline in labor income share, and harnessing digitalization for an inclusive future of work. He stressed the importance of establishing wage systems that ensure a living wage and investing in lifelong income security.
The Deputy Minister also emphasized the importance of financial literacy among workers, advocating for empowering them to manage their salaries responsibly. South Africa's experiences offer valuable lessons in addressing inequality and unemployment, with social partners playing a vital role in shaping labor market reforms.
The L20 component engagements coincided with the 4th G20 Employment Working Group meeting in George, aiming to foster dialogue between trade unions and G20 labor and employment Ministers. The discussions focused on tackling inequality, fostering wage increases, and increasing the labor income share as key priorities for this year's employment track.