6 - Safety Nets

When the going gets tough, companies steal workers’ wages and severance pay in the absence of robust social protection for workers. Often under pressure from companies, governments can be unable or unwilling to provide a safety net for workers, and to tax corporate profits in a redistributive way. Business does well from this. In the aftermath of the Covid-19 pandemic trade unions and activists put together a plan for a Severance Guarantee Fund that would make it easy for companies to live up to their obligations to provide a social safety net.

Workers will have an increased need for such safety nets in the coming years. Without a worker-centred transition job losses are in sight in the garment sector as climate-related impacts may lead to reduced production, factory relocations or factory closures. Technology is also driving changes to jobs across the industry.

There will be other costs involved in a Just Transition and workers cannot be left to bear this burden. States have a responsibility to protect citizens’ and workers’ rights, including in case of violation by companies. They should act to protect workers’ rights, keep companies accountable and provide comprehensive social protection. States, brands and large manufacturers, insurers and investors have a responsibility to cooperate in order to provide guarantees and resources which overcome national boundaries and cover all workers.