LETTER : Free market in labour divides society without creating the job s we need

Share
Related Topics
Sir: Labour market deregulation and trade and investment liberalisation should not be considered a magic solution to unemployment (Business, 2 April).

G7 countries may well have something to learn from countries such as Chile, where this approach has been tried for more than a decade.

Chile's "flexible" labour market has failed to deliver growth with equity, or to promote greater social integration. Unemployment has finally fallen in recent years, but job creation has largely taken place in low-paid, low-quality jobs, creating a new class of working poor. Official unemployment figures fail to include a large number of women who work irregularly through the year.

Flexible working practices have spread, allowing companies to bypass government legislation, eroding collective bargaining rights and undermining the traditional obligations of employers to workers. As a result, despite rapid growth and a recent reduction in poverty, 43 per cent of salaried workers earn less than the minimum required to cover their basic needs, according to recent research commissioned by Oxfam. This has contributed to the growing number of women and children entering the workforce.

As well as contributing to social disintegration and tensions, this strategy is economically inefficient. The pursuit of a cheap and flexible labour market is strangling moves to a higher value added export strategy based on technological innovation or improved product quality, which is necessary if Chile is to sustain its export expansion in the longer term.

Ruth Mayne

Policy Adviser

Oxfam UK and Ireland

Oxford

React Now

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
iJobs Job Widget
iJobs General

Recruitment Genius: Warehouse Operative / Forklift Driver

£14000 - £17000 per annum: Recruitment Genius: Through a combination of excell...

Recruitment Genius: Warehouse Manager

£25000 - £30000 per annum: Recruitment Genius: This company are looking for a ...

Recruitment Genius: Service Plan Champion

Negotiable: Recruitment Genius: A vacancy has arisen for a Service Plan Champi...

Recruitment Genius: Service Plan Champion

Negotiable: Recruitment Genius: A vacancy has arisen for a Service Plan Champi...

Day In a Page

Read Next
 

Daily catch-up: the Labour leadership election hasn’t yet got to grips with why the party lost

John Rentoul
Kennedy campaign for the Lib Dems earlier this year in Bearsden  

Charles Kennedy: A brilliant man whose talents were badly needed

Baroness Williams
Sepp Blatter resignation: The beginning of Fifa's long road to reform?

Does Blatter's departure mean Fifa will automatically clean up its act?

Don't bet on it, says Tom Peck
Charles Kennedy: The baby of the House who grew into a Lib Dem giant

The baby of the House who grew into a Lib Dem giant

Charles Kennedy was consistently a man of the centre-left, dedicated to social justice, but was also a champion of liberty and an opponent of the nanny-state, says Baroness Williams
Syria civil war: The harrowing testament of a five-year-old victim of this endless conflict

The harrowing testament of a five-year-old victim of Syria's endless civil war

Sahar Qanbar lost her mother and brother as civilians and government soldiers fought side by side after being surrounded by brutal Islamist fighters. Robert Fisk visited her
The future of songwriting: How streaming is changing everything we know about making music

The future of songwriting

How streaming is changing everything we know about making music
William Shemin and Henry Johnson: Jewish and black soldiers receive World War I Medal of Honor amid claims of discrimination

Recognition at long last

Jewish and black soldiers who fought in WWI finally receive medals after claims of discrimination
Beating obesity: The new pacemaker which helps over-eaters

Beating obesity

The new pacemaker which helps over-eaters
9 best women's festival waterproofs

Ready for rain: 9 best women's festival waterproofs

These are the macs to keep your denim dry and your hair frizz-free(ish)
Cycling World Hour Record: Nervous Sir Bradley Wiggins ready for pain as he prepares to go distance

Wiggins worried

Nervous Sir Bradley ready for pain as he prepares to attempt cycling's World Hour Record
Liverpool close in on Milner signing

Liverpool close in on Milner signing

Reds baulk at Christian Benteke £32.5m release clause
On your feet! Spending at least two hours a day standing reduces the risk of heart attacks, cancer and diabetes, according to new research

On your feet!

Spending half the day standing 'reduces risk of heart attacks and cancer'
With scores of surgeries closing, what hope is there for the David Cameron's promise of 5,000 more GPs and a 24/7 NHS?

The big NHS question

Why are there so few new GPs when so many want to study medicine?
Big knickers are back: Thongs ain't what they used to be

Thongs ain't what they used to be

Big knickers are back
Thurston Moore interview

Thurston Moore interview

On living in London, Sonic Youth and musical memoirs
In full bloom

In full bloom

Floral print womenswear
From leading man to Elephant Man, Bradley Cooper is terrific

From leading man to Elephant Man

Bradley Cooper is terrific