Labour Share and Value Distribution

If forced labour is ever to be eliminated from the global economy, the redistribution of value in supply chain is essential. As it stands, the resulting profits from production are amassing among powerful brands, retailers, and investors, and the least powerful actors in supply chains – predominantly workers – are left to scramble for an increasingly small piece of the pie. This brief explores the key underlying factors that have driven inequitable value distribution – notably increasing monopolisation and the rise of the “superstar” firm, the financialisation of the global economy, and a declining labour share. It explains how unequal value distribution leaves workers vulnerable to severe labour exploitation and highlights tried-and-tested solutions from specific industries and geographies. These include: the direct redistribution of value through wage benchmarking that targets a living wage, thus reducing the vulnerabilities to exploitation workers often face; worker-driven social responsibility programs; general support for labour organizing (and notably the removal of legislative and practical barriers); the strengthening of anti-trust measures; and, more broadly, a reorientation of the corporate focus toward all stakeholders.