TLWNSI Newsletter (winter 2010)

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TLWNSI NEWSLETTER The Living Wages North and South Initiative (TLWNSI)

Long-term Sustainable Development Through Gradual Wage Equalisation HIGHLIGHTS B ra z i l : I n p e r f e c t harmony with TLWNSI’s concept – Brazil undertakes a historical policy to close wage gaps that stands out for its strong affinity with Jus S e m p e r ’s T LW N S I concept for the realisation of living wages

TLWNSI Newsletter – Winter 2009/2010 ISO 26000 – Business as usual – Another standard where the market reigns supreme and, thus, the fundamental issue of the living wage remains in oblivion Page 2

Page 2

New 2007 LivingWage Gap Analysis Updates for Manufacturing Workers in 12 Economies and the U.S. Our annual updated analysis from 1975 to 2007, for eight developed and four "emerging" economies, of wage gaps in purchasing power parities terms (PPPs) using as benchmark U.S. Production-line manufacturing wages. Page 3

Mexico´s Real Wage Gap. Analysis update (1975-2007) on the huge manufacturing wage gap of Mexico. The Mexican State, still challenged for the lack of legitimacy of its election, has become an eminent case of open violation of the labour rights of its citizens

Page 4 Relationship between Cost of Living (PPPs) and Percent of Nominal Hourly Wage Received for (PPPs) Equalisation With Nominal Manufacturing Hourly Wage in the U.S.

Relationship between Cost of Living (PPPs) and Percent of Nominal Hourly Wage Received for (PPPs) Equalisation With Nominal Manufacturing Hourly Wage in the U.S.

$0.90

$1.00

$0.80

$0.80 $0.70

$0.75

$1.00 $0.65 $0.56

$0.58

$0.60 $0.46

$0.68

$0.57

$0.60

46% $0.40

$0.45

$30.88

$28.03

$29.84 $25.27

(36%)

$10.0

+2%

(+1%)

28%

$38,66 Germany

+13% $29.08 Canada

$28.23 Italy

20%

$30.18 United Kingdom

26%

23%

$16.09

14%

19%

1995

2000

17%

17%

$0.10

$17.08

$0.00 1975

+51% $28.57

+63%

$20.98 France

+68%

1980

1985

1990

2005

2007

$16.02 Spain

$19.75 South Korea

$8.47 Singapore

Wage Gap between Nominal and Equalised wages in terms of purchasing power parities 1) If front edge is greater than back edge= Better purchasing power in U.S. 2) If back edge is greater than front edge= Better purchasing power than in U.S. 3) If both edges are in equillibrium= Nominal wage is equivalent to nominal wage in U.S. in terms of purchaisng power (The size of wage gap is expressed in percentages. If negative, there is a wage advantage instead of a wage gap)

+83%

$5.96

Japan

$5.78 Brazil Hong Kong

$2.92 Mexico

87%

78%

$0.94

78%

$0.95

87%

72%

78%

37%

$0.73

$0.60 51%

$0.49

$0.40

$0.10

+28%

$25.27 U.S. Benchmark

$18.15

38%

$0.20

39%

+4% $17.21

32%

36%

29%

$0.20

0%

$5.0 $-

$0.30

$19.93

Nominal Wage

(3%)

Real PPP Equalised Wage

$15.0

$27.48

$24.07

$20.0

$0.78 73%

31%

$0.30 $28.22

$25.0

$0.80

$0.48

$0.91

$0.76

$0.55 $0.42

39%

$0.40

$30.0

$0.85

$0.64 $0.43

$0.50

$0.57

$0.50

$35.0

$1.20

$0.70 $0.78

(Hourly manufacturing wages in U.S. Dollars)

$28.36

Spain´s Real Wage Gap. Analysis update on the wage gap of Spain from 1975 to 2007. Maintaining the European trend, Spain improves once again the equalisation of its production-line manufacturing workers’ real wages with their U.S. counterparts.

$1.00

Relationship between Cost of Living (PPPs) and Percent of Nominal Hourly Wage Received for (PPPs) Equalisation With Nominal Manufacturing Hourly Wage in the U.S

$0.90

2007 Real wage gap with U.S. wages using PPPs

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$0.70

$40.0

Brazil´s Real Wage Gap. Analysis update (1996-2007) on the huge manufacturing wage gap of Brazil; Brazil's recovery of production-line manufacturing wages remains idle in 2007. Yet, there are plans for a strong long-term equalisation

$0.00 1996

$0.20

1998

2000

2002

2004

2005

Source: WB, U.S. BLS, OECD.

Brazil: Cost of Living (PPP U.S. dollar) (U.S.=$1,00)

The Jus Semper Global Alliance ©

Brazil: PPP % Equalisation (Cost of Living = 100)%

2006

2007 $0.00 1975

Source: WB, U.S. BLS, OECD.

Mexico: Cost of Living (PPP U.S. dollar) (U.S.=$1,00)

Source: WB, U.S. BLS, OECD.

The Jus Semper Global Alliance ©

Mexico: PPP % Equalisation (Cost of Living = 100)%

The Jus Semper Global Alliance ©

1980

1985

1990

1995

2000

2005

2007

Spain: Cost of Living (PPP U.S. dollar) (U.S.=$1,00) Spain: PPP % Equalisation (Cost of Living = 100)%

______________________________________ Sources: – Data base of World Bank's World Development Indicators, 1975-2008, (GNI & GNI PPP, Atlas method) X International Comparisons of Hourly Compensation Costs for Production Workers in Manufacturing November 2009. U.S. Department of Labour, Bureau of Labour Statistics

Table T4: 1975 - 2007 Real-Wage Gaps for Twelve Economies, in Purchasing Power Parity (PPP) Terms, vis-à-vis the U.S. for Productionline Manufacturing Workers............................5 Table T5: New living-wage gaps 1996-2007 –in purchasing power parity terms (PPPs)– vis-à-vis the U.S. for all manufacturing employees for the four largest economies in the Americas (Canada, Brazil, Mexico and Argentina)!.........5 The Lokoj Institute in Bangladesh joins Jus Semper with the specific interest to develop TLWNSI's programme in Bangladesh to strategically support the country's labour force................................................................6

19/02/10

The Jus Semper Global Alliance © 2009

RESOURCE CENTRE ILO’s Global Wage Report 2008/2009. The first edition of this study, to be published every two years clearly asserts that in the 2001 – 2007 period real wages lost ground in their share of GDP in favour of employers’ profits despite the economic expansion climate experienced. ...................................................6

2009 Top Twenty Resource Downloads. The top Internal and External Resources Downloaded From Our Website in 2009…….………..……..7 A Final Thought………………………………....7

Human Development Report 2009. Overcoming barriers: Human mobility and development. The 2009 HDR asserts that the enormous social inequality that prevails in the world makes moving away from their home town or village –and frequently to other countries– the best—and sometimes the only— option open to improve their life chances for millions of people in the world. ..................... 6 1 of 8


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TLWNSI Newsletter (winter 2010) by The Jus Semper Global Alliance - Issuu