Inequality in our country remains a pressing issue, as evidenced by a new report from Oxfam. According to the NGO, for every 100 euros in profit that the largest companies in Belgium make, only 27 euros flow back to their shareholders, while average expenditure per employee increased by a smaller amount than the dividend. This highlights the systemic production of inequality in our country.
Oxfam has come up with “The Inequality Dividend” on the occasion of May 1, Labor Day. The organization calls on the future government to take measures for a fair distribution of wealth. The report shows that companies’ profit margins have never been higher in the past twenty years, but wages have not kept pace with inflation. Oxfam labels this fact “absurd,” as it means that no storage is possible. Furthermore, the value created by employees in the largest companies active in Belgium increased by 45.5 percent in 2022 compared to 2017, but expenditure per employee only increased by 13 percent, while dividends increased by 23 percent.
According to Oxfam, profit maximization comes at the expense of wages and fair prices. Moreover, wealth that companies generate is not distributed fairly. Someone earning the minimum wage would have to work for more than a century to earn the average annual wage of a Bel20 business leader. The tax system also creates inequality because wages are taxed but added value on the sale of shares is not taxed at all.
Oxfam is launching a series of recommendations to address these issues. Firstly, more action is needed against monopolies and secondly, wage standard law must be revised to allow for surcharges above index levels if profits fuel inflation. Thirdly, remuneration of directors should be regulated by linking income to sustainability objectives and fourthly, consistent taxation of capital gains and dividends should be introduced along with a minimum tax of 25 percent for multinationals.
In conclusion, inequality continues to persist in our country despite efforts from organizations like Oxfam who strive for fairness and equality
