Labour20 Summit concluded in Patna, Bihar, on June 21-23, 2023, highlighting the importance of universalisation and portability of social security benefits across the member countries. Most countries currently allow the portability of benefits only if there is a bilateral agreement between sending and recipient countries. Wages and social security are the most important livelihood aspects that instil an ordinary worker and his family’s aspirations. Apart from these, there are other decent work components like working conditions, safety and health, welfare, gender parity etc. The L20 Summit discussed in detail the issue of social security while going in-depth into three of its vital aspects, viz., coverage up to the last worker (universalisation), financing social security and portability of benefits from one country to another.
Bharatiya Mazdoor Sangh (BMS), being the largest central trade union, had the privilege of organising the Summit. Trade union representatives, experts and academics on labour from 29 countries and India, and representatives of employers and Government representatives participated in the three-day event. All the delegates, especially foreign delegates, were delighted to experience the warm and affectionate reception with traditional flavour arranged by the State Government of Bihar.
The activities of L20 began on December 1, 2022, since the Troika Indonesia handed over the presidency of G20 to the honourable Prime Minister Sri Narendra Modi. The inception meeting of L20 held in Amritsar on March 18-20, 2023, had formed 5 task forces related to the burning issues in the world of work:
The important highlight of the Summit is the unanimous declaration of its commitment toward universalising social security. The Summit deliberated the task force report on ‘Universal Social Security’ in detail. Implementing social security up to the last person is a critical challenge in the world of work. All the tripartite constituents, viz., workers, employers and governments, have to endeavour unitedly to achieve this objective. Often, the policy-making process confuses the terms social security, social insurance, social assistance and social protection.
Social protection is provided to the poorer section of society, and social assistance is provided through different schemes to support deserving people. Social security should achieve one of its main components, social insurance, up to the last person in the country. Social security comprises social insurance(especially health coverage), old age pensions, death/disability insurance and maternity benefits. The Summit acknowledged that most Governments have provisions for social assistance for their citizens and social protection for the poorer section. Still, governments must move from mere social protection and social assistance to social security and social insurance. This is significant when 61 per cent of the workforce in the world is in the informal sector and has almost no social security access.
Social insurance should become a priority for the G20 countries. The Summit discussed in detail the three models to finance social insurance for workers: contributory, non-contributory (mainly from general tax revenues) and a combination of both. The third model of combination is projected as crucial. Through legal and policy measures, governments need to address the barriers to social security, including exclusion due to legal frameworks, lack of awareness among workers and engagement in unregistered/informal MSMEs due to high operational costs. It also noted that the financing of social security funds needs to be expanded by budget allocations which many governments are shying away from. Since tax revenues have grown with the rising of per capita income over a century, fiscal space has to be expanded by measures such as increasing contributory and tax revenues, eliminating illicit financial flows, reallocating public expenditure, allocating greater resources, managing sovereign debt, and adopting a more accommodative macroeconomic framework. Methods like donated pensions can also be resorted to. Increasing wages and improving job quality are essential to reducing workers’ dependence on social security benefits.
The task force report on ‘International Migration: Portability of Social Security Funds’ proposed that for universal coverage, data on marginalised and non-protected sections of the working population, especially the migrants, different schemes etc., and its analysis are needed. The schemes have to be implemented with the increased role of the private sector. The Summit expressed its concern about the delays due to negotiations in agreements involving both sending and recipient countries for providing portability to the migrants and urged Governments to accelerate the process. Instead of the current system of bilateral agreements, there can be a multilateral agreement among the G20 countries.
The world of work is facing unforeseen and significant changes in a fast-moving world with new forms of work emerging. Technological development, digital transformation and green transition have led to positive and negative results. In the process, labour-intensive sectors like plantation, fisheries and others, especially those with more concentration of women workers, need to be protected from the onslaughts of indiscriminate imports and new technology. The policy framework should consider that technological innovation has to be harmonised with sustainable and just transitions. The task force report on ‘Changing World of Work: New Employment Opportunities in G20 Countries’ proposed a roadmap to address the issues. It highlighted the role of trade unions in actively engaging with and prioritising the issues faced by workers engaged in new forms of work. Social security legislation that covers all workers, including gig and platform workers, is essential, complemented by specific laws tailored to their unique needs. A tripartite board consisting of representatives from the government, aggregator companies, and trade unions has to be established.
The discussion on the report expressed the concern that an increase in inequality and the digital divide is alarming. Artificial intelligence (AI) has positive impacts, such as increased labour productivity, income growth and improved living standards. But the negative consequences arising from AI’s asymmetrical effects are crucial, which can lead to socioeconomic and power inequalities and the digital divide. The Summit noted that structural dynamics of globalisation and technological innovations as its offshoot shower benefits only upon a limited number of highly skilled people producing unequal societies of extremely rich and extremely poor people. Governments play a crucial role in addressing this problem by controlling innovation and power concentration. Skill development and rethinking of technological innovation and R&D are crucial in this regard.
Women are always the worst affected in any crisis that may emerge, the latest being the COVID pandemic. The ‘Purple Economy’ concept recognises the importance of care work, empowerment and autonomy of women in the functioning of the economies. The task force report on ‘Women and Future of Work’ proposed to increase the participation of women in the private sector and promote their leadership roles by providing incentives, a supportive environment, subsidised childcare facilities, gender sensitisation programs for management, skill-building opportunities, remote working arrangements and flexible working hours, thereby enabling women to balance their personal and professional responsibilities effectively. Women’s entrepreneurship has to be encouraged by offering mentors, increased funding options and other forms of support. The task force also recommended that women can explore promising opportunities in the newly emerging sectors like gig and platform work and in areas such as caregiving, pet care, and education. Regulation of the care economy assumes importance, including direct and indirect care work. Expanding free networking platforms for working women, leveraging social media to showcase their skills and establish a strong online presence can further enhance their visibility and career prospects.
The Summit, while deliberating the task force report on ‘Skill Development: Roles and Responsibilities of Stakeholders’, demanded that the workers, especially the youth and adults, should be able to access training and skill development easily. It strongly recommended creating a comprehensive global data management information system for skills. The report enumerated multiple pathways for addressing the skill gap via a partnership with multiple stakeholders such as trade unions, industry, industry associations, government, education and training providers, development partners and the natural environment. Current and future skill needs will include green skills, innovation and entrepreneurship skills. Educational and training systems should be strengthened within the lifelong learning framework (e.g., reskilling, upskilling, adult learning, recognition of prior learning), including short-term courses leading to micro-credentials and stackable degrees. Greater emphasis is needed on Recognising Prior Learning (RPL). A common qualification framework will ensure that skills acquired in the source country are acknowledged and valued in the destination country. A global skills management information system (MIS) should be developed.
Labour-related issues that emerged in the Civil20, Women20, Youth20 and Science20 meetings and in ‘The Employment Working Group’ were discussed in the Summit with their representatives leading the discussions. The Summit also discussed the feasibility of a joint statement between Labour20 and Business20 in the presence of representatives from Business20. The delegates expressed that the employer-employee relationship is in a paradigm shift, and the days of conflict are gone leading to confluence in relations. Both have expressed the idea of sitting together to sort out the issues in the world of work in a harmonious atmosphere.
The L20 declaratory statement adopted unanimously by the representatives of 29 countries highlighted the high ideals for which the land where the L20 Summit was held stands: “There is a need to build up higher values in the world of work for sustainable human development and justice rather than only profits… The world of work needs decentralisation and not the centralisation of wealth to result from the changes taking place. Changes should not be left to the market control. As a social institution, the state has a major role. Jobs created should be green jobs in harmony with nature. Let harmony be the mantra of human progress…fostering a more balanced and inclusive work environment moving towards a human-centred perspective that respects the planet…soul of national life… Social security needs an integral and not compartmental approach. Implementing up to the last person is a critical challenge. The deliberations instilled a new vision and hope to move collectively towards the goal of achieving the ideal of one earth, one family, one future.”
The delegates and task force members have reiterated their interest and commitment to continue the deliberation on the above task forces. The Summit decided to convey the concerns expressed by the participants to the ensuing Labour and Employment Minister’s Meeting (LEMM) in July and the G20 Leaders’ Summit in September.
The Presidency of the L20 was conferred on BMS, and its all-India president Sri Hiranmay Pandya was at the chair. The BMS secretariat organised the event well and looked after the arrangements. The honourable Governor of Bihar, Shri Rajendra Arlekar, inaugurated the L20 Summit. The honourable minister for Labor and Employment, Shri Bhupendra Yadav, addressed the event. The Sous Sherpa and Additional Secretary, Ministry of External Affairs, Shri Abhay Thakur, Secretary of Labour, Union Government, Smt Ms Arti Ahuja, minister for Labour, Bihar, Shri Surendra Ram, Minister for Culture and Arts, Bihar and others addressed the event. Senior officials of the State Government and officials from the Union Ministry of Labour and Employment and Ministry of External Affairs assisted with the arrangements.
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