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The main issue here is to assist the social partners in identifying the reasons for low pay in certain sectors/regions/enterprises. Low pay, defined as earning less than 60% of the median wage, is on the rise in many countries, including OECD countries. Low pay is not a fatality. The causes for low pay are numerous and include weak collective bargaining, poor management, fiercer competition, etc.
The determination of minimum wages or minimum wage fixing, as it is known in the relevant ILO Conventions and Recommendation is an important subject that is addressed by the wages and income sub-programme. TRAVAIL advises workers, employers and governments in their minimum wage-fixing policy. It draws attention to the consequences of any decision taken on the level of competitiveness, inflation, unemployment, wage inequality, standards of living, etc. It encourages wage negotiation based on the discussion of data. The relevant ILO instruments are:
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