Reduce widening wealth gap — Oxfam

The wealth concentrated in the top 1% of society’s richest individuals came at great cost to the working class and the poor, who, according to Oxfam’s new report, are worse off than before as inequality levels rise.

The amount of wealth concentrated in the top 1% of society’s richest individuals came at a great cost to the working class and the poor, who, according to Oxfam’s new report, are now worse off than before as inequality levels rise.

In a report released on Monday to coincide with the World Economic Forum in Davos, Oxfam shared alarming statistics of wage gaps between employers and workers, showing by way of an example that it took the best-paid executive at retail giant Shoprite only 4.58 days to earn what a seasonal farm worker in the country earned in 50 years.

Wage inequality has been considered the biggest contributor to SA’s inequality crisis, with workers such as Shoprite employee Edgar Mokgolo testifying to the struggle to exist on paltry wages while bosses continue to pocket millions.

“Dangerous, poorly paid work for the many is supporting extreme wealth for the few. Women are in the worst work, and almost all the super-rich are men,” read the report.

“Governments must create an equal society by prioritising ordinary workers and smallscale food producers instead of the rich and powerful.”

In 2017, the world created new billionaires every second day, with an increase in wealth that the organisation said could end extreme poverty seven times over.

Wealth among billionaires rose by $762bn, which was 82% of all wealth created in the past 12 months, while the bottom 50% saw no increase. In SA, the 50% were mostly the working poor, who despite being in employment earned salaries below the poverty line.

As Oxfam SA leaders called for action to alleviate the inequality gap, they also conceded that some interventions by the South African government — such as the national minimum wage — could help narrow the gap.

National minimum wage expert Dr Gilad Isaacs said that although there were some reservations about certain parts of the bill, which is expected to come into effect in May, it had potential to reduce inequality.