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ESG fund insights

29 May 2024

The Human Factor: Why Labour Rights Matter

By ESGCheck

The Human Factor: Why Labour Rights Matter

 

Labour rights are a cornerstone of any functioning society, ensuring that workers are treated with dignity, fairness, and respect. These rights encompass a range of issues, from fair wages and safe working conditions to the right to unionise and bargain collectively. In this article, we will explore why labour rights matter, the historical context behind these rights, and the ongoing challenges faced by workers worldwide.

The Historical Context of Labour Rights

The struggle for labour rights has deep historical roots, dating back to the Industrial Revolution when workers began to organise against exploitative working conditions. In the 19th century, movements such as the Chartists in the UK and labour unions in the United States laid the groundwork for modern labour laws. The International Labour Organization (ILO), established in 1919, has been pivotal in setting international labour standards and promoting decent work for all.

Why Labour Rights Matter

1. Economic Stability and Growth

Labour rights contribute significantly to economic stability and growth. When workers are paid fairly and work in safe conditions, their productivity increases. This, in turn, drives economic growth. Studies have shown that countries with strong labour rights tend to have more stable economies and higher levels of income equality.

2. Social Justice and Equity

Labour rights are essential for promoting social justice and equity. They help bridge the gap between the rich and the poor by ensuring that all workers receive fair compensation for their labour. This is particularly important in developing countries, where labour exploitation is often rampant. Ensuring fair wages and safe working conditions can lift families out of poverty and reduce social inequality.

3. Health and Safety

One of the most critical aspects of labour rights is the protection of workers' health and safety. Unsafe working conditions can lead to injuries, illnesses, and even fatalities. By enforcing strict health and safety regulations, employers can prevent workplace accidents and protect their employees' well-being. The ILO estimates that over 2.78 million workers die each year from occupational accidents and work-related diseases, highlighting the urgent need for robust health and safety standards.

4. Empowerment and Participation

Labour rights empower workers by giving them a voice in the workplace. The right to unionise and bargain collectively allows workers to negotiate better wages and working conditions. This not only improves their quality of life but also fosters a sense of participation and belonging. Empowered workers are more likely to be engaged and committed to their jobs, leading to higher productivity and job satisfaction.

Ongoing Challenges

Despite significant progress, many workers around the world still face severe violations of their labour rights. Child labour, forced labour, and human trafficking remain prevalent in various industries, including agriculture, mining, and textiles. According to the ILO, there are an estimated 152 million child labourers and 25 million people in forced labour worldwide .

Globalisation has also introduced new challenges, as multinational corporations often outsource production to countries with lax labour laws to cut costs. This can lead to the exploitation of workers in these countries, who may be subjected to poor working conditions and inadequate pay .

Conclusion

Labour rights are fundamental to ensuring that workers are treated with dignity and respect. They play a crucial role in promoting economic stability, social justice, and workplace safety. However, the fight for labour rights is far from over, and it is essential to continue advocating for fair treatment and protection for all workers worldwide. By supporting policies that uphold labour rights, we can create a more just and equitable society for everyone.

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Emit Capital Climate Finance Equity Fund

Exclusions Inclusions

Investment Exclusions

TobaccoAlcoholWeaponsFossil fuel exploration, mining and productionHuman rights abusesLabour rights violationsEnvironmental damageCompanies that engage in tax avoidance strategiesGamblingAdult entertainment/pornography

Investment Inclusions

Renewable energy & energy efficiencyClimate action & towards net zeroSustainable water managementCircular economy, reuse & recyclingGreen propertyBiodiversity preservation & conservationHealthy rivers & ocean ecosystemsDiversity & women's empowermentIndigenous business or cultural protectionSocial & community infrastructureSustainable transport
Strategy Equity Long Geography Global
Inception Aug 2022 Investors Wholesale

Magellan Core ESG Fund

Exclusions Inclusions

Investment Exclusions

TobaccoAlcoholWeaponsFossil fuel exploration, mining and productionGamblingAdult entertainment/pornography

Investment Inclusions

Strategy Equity Long Geography Global
Inception Dec 2020 Investors Retail

Magellan Sustainable Fund

Exclusions Inclusions

Investment Exclusions

TobaccoAlcoholWeaponsFossil fuel exploration, mining and productionGamblingAdult entertainment/pornography

Investment Inclusions

Strategy Equity Long Geography Global
Inception Dec 2020 Investors Retail

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