Fair Labour and Growth Can Coexist, Says Deputy Minister at L20 SA Summit 2025

Deputy Minister of Employment and Labour, Jomo Sibiya, has made an emphatic call for the dismantling of long-standing misconceptions that pit economic competitiveness against fairness in the global labour market. Speaking at the Labour 20 (L20) South Africa 2025 Summit, held under the theme "Fostering Solidarity, Equality and Sustainability Through a New Social Compact", Sibiya urged global leaders and institutions to rethink outdated economic paradigms that marginalize workers and weaken labour protections.

Reframing Fairness as a Growth Driver

Addressing union leaders and government representatives, Sibiya declared that fair wages, decent work, and strong social protection systems are not impediments to growth but rather critical foundations of resilient, future-ready economies. He pointed to the forthcoming Employment Working Group declaration, which prioritizes full and productive employment, sustainable social protection, and wage-setting mechanisms grounded in human rights and fairness.

“It calls on all of us to expand formalisation and reverse the decoupling of wages from productivity,” said Sibiya. “The disconnect between the creation of wealth and its distribution is not only unjust, but also unsustainable.”

Labour 20: A Global Platform for Worker Advocacy

The L20 Summit brings together trade union representatives from G20 countries and international labour federations. It is coordinated by the International Trade Union Confederation (ITUC) and the Trade Union Advisory Committee (TUAC) of the OECD. The summit, held alongside the 4th G20 Employment Working Group meeting in Fancourt, George, seeks to amplify workers' voices in global economic policy debates.

Representatives from South Africa’s leading labour federations—including COSATU, FEDUSA, NACTU, and SAFTU—participated in the session, where trade unions and G20 labour ministers engaged in robust dialogue on tackling inequality, stagnant wages, and diminishing labour income share.

South Africa’s Four-Pillar Labour Reform Strategy

Sibiya used the platform to outline South Africa’s employment track, anchored in four key priorities aimed at building a fairer, more inclusive labour market:

1. Promoting inclusive growth and youth employment

   • Ensuring that every young person has access to a decent, secure job.

2. Accelerating gender equality in the workforce

   • Tackling systemic barriers to women’s full and equal participation in the economy.

3. Reversing the decline in labour income share

   • Restoring workers’ rightful stake in the value they help generate.

4. Harnessing digitalisation inclusively

   • Preventing the deepening of the digital divide and ensuring that tech innovation works for workers.

“Genuine economic growth is closely tied to decent work,” said Sibiya. “We must shape labour market policies and institutions that deliver fair results, including wage systems that assure a living wage—through legislation or collective bargaining—and strengthen social dialogue.”

Bridging Policy and Practice: The Implementation Gap

While praising South Africa’s progressive labour frameworks, Sibiya acknowledged that implementation remains a challenge, especially in a global south context where real wages are stagnating despite rising productivity.

He highlighted the erosion of social cohesion and growing hardship for working families, warning that failing to address these trends could undermine social and economic stability. He stressed the need for investor engagement and financial literacy, arguing that workers should be better equipped to manage their livelihoods and safeguard their economic futures.

“We must capacitate workers of the world to take responsibility for their livelihood, ensuring that they use their hard-earned salaries effectively.”

South Africa’s Lessons for the World

Sibiya noted that South Africa’s tripartite model—with government, business, and labour working together—offers valuable lessons for global labour reform efforts. Despite structural constraints, the country has relied on its social partners to shape labour policy, address inequality, and expand employment opportunities.

“We strongly believe that when working together as government with social partners, that is where solutions can be found,” Sibiya asserted. “Our work is far from over. We must recommit to social justice in our economic strategies.”

A Call to Action for Global Labour Leaders

As the global community grapples with post-pandemic recovery, automation, and climate transition, the L20 Summit underscored the need for bold and inclusive labour policies. The session served as a platform for coordinated strategies to foster wage increases, boost formal employment, and expand labour’s share of GDP—all seen as essential to achieving the L20’s goal of a just transition for all.

Sibiya’s call resonated as a reminder that economic competitiveness and social justice are not opposing forces but mutually reinforcing goals.