Social protection for market traders and street vendors in an era of pension fund capitalism

Market traders at Chiang Mai green market, GRAIN

Throughout our bulletins, we have emphasised the importance of informal economy workers such as market traders and street vendors in the food supply. Following the work of many others who have been organising and working with market traders and street vendors, two important issues come to the forefront: one is the fight against harassments and evictions of small food traders; the other is the fight for social protection such as access to health services and income security.

Lacking access to social protection is a long term, structural problem in the informal economy, which often brings harsh consequences. Street vendors and market traders are often excluded from social protection schemes by design: they are considered to be not poor enough to qualify for cash transfers provided by governments, while at the same time their incomes are considered too low to contribute regularly to social schemes like pension funds. The consequences of this exclusion have been compounded in recent years with the global health crisis, as well as the climate crisis, which severely threatens the source of living for small food traders.

On a global level, organisations representing informal economy workers are actively engaged in enhancing workers’ capacity to advocate for better social protection, public care and workplace services for both themselves and their families. They also aim to foster connections and facilitate dialogues between policy makers, social protection experts and workers.

These are all critical battles. Unfortunately today some pension funds sit on the opposite side of on-going struggles by workers and small food producers, not only over food systems, but also over the climate crisis, housing, health care, elderly care, working conditions, austerity, privatisation policies and numerous others. In a growing number of countries, the retirement savings of workers are managed by financial companies who invest these funds in ways that harm other workers and communities, including informal economy workers and small farmers.

This is done through the purchase of shares in multinational corporations, but also increasingly through the acquisition of privatised public infrastructure (like water systems and toll roads) and services (like hospitals and old age homes) and other so-called "real-assets" (like shopping mall developments and large areas of farmland). Today, these financial companies manage upwards of USD52 trillion in retirement savings, making pension funds the number one fuel of the global financial industry. In some countries, however, like China and France, state-run public retirement systems are still functioning and have not been financialised. But they are under intense pressure and face the threat of privatisation and financialisation.

This shows that we need actions that address the issue of social protections and old age on two fronts: on the one hand, ensuring that public systems provide everyone, including informal economy workers, with a safe and dignified retirement and, on the other, ensuring that these systems are funded in ways that are not destructive to communities. Some ideas for how this can be done can be found here.

Street vendors are a vibrant cornerstone of Sri Lankan culture and a significant segment of the country’s workforce. However, it is also one of its most precarious and the upheaval caused by the Covid-19 pandemic and the food, fuel and financial crisis of the last 2 years has driven even more people into street hawking to earn a living. Paradoxically, as their numbers grow, the prevailing economic crisis in Sri Lanka has posed unprecedented hardships for street vendors. They face not only financial uncertainty but also constant harassment from local authorities, all under the guise of public convenience.

The cost of essential goods has surged, while utility rates have seen rapid hikes. In the span of just one year, from August 2022 to August 2023, Sri Lankans endured two major electricity and water tariff increases, as a result of IMF and ADB loans with conditionalities. For street vendors, this has translated into a sharp rise in their household expenses, amplifying their daily challenges

Street vendors are also finding themselves in the midst of an economic storm, grappling with a daunting rise in the cost of capital. This surge in costs has been triggered by a dramatic plummet in the value of the Sri Lankan rupee (SLR), a situation exacerbated by the staggering inflation rate, currently exceeding 50%. In this climate, saving for family emergencies has become a nearly insurmountable challenge. A typical Sri Lankan family spends around 70% of its income to meet the ever-increasing costs of food, clothing and essential household items. As if this burden weren’t enough, government subsidies on almost everything from food to household bills have been withdrawn.

To shed some light on the pressing concerns facing street vendors in the wake of Covid-19 and the ongoing economic crisis, GRAIN met with Fazly Mohammad of FIAN Sri Lanka in Colombo. FIAN Sri Lanka has taken up the cause of organising street vendors, helping them to assert their rights and secure designated spaces in cities to carry out their livelihoods.

It is still to be seen to what extent FIAN efforts will improve the livelihood opportunities for Sri Lanka’s street vendors. However, their efforts and intervention are expected to address street vendors’ long-standing demand for legal recognition and designated spaces in big cities to conduct their businesses and earn a decent living.

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On October 13th, 2022, an announcement was made regarding a $24.6 billion mega-merger between Kroger, the largest full-service grocery chain, and Albertsons, the fourth largest grocery chain in the US. Both of these chains employ over 700,000 workers across their numerous banners with over 50 manufacturing facilities and 5,000 retail stores. If this merger goes through, the resulting company will become the largest supermarket by revenue in the United States with a combined annual sale of more than $200 billion.

This mega-merger would drive out competition and create food deserts. Less competition in the grocery industry also means higher prices for customers and an increased risk of job losses for employees. Workers from these two companies make up one in three members of the US’s United Food and Commercial Workers International Union (UFCW).

From 1993 to 2019, the number of grocery stores declined by approximately 30 percent. This decline has also left farmers and suppliers with limited options for selling their products, as in many parts of the US, grocery stores are often their primary sales outlets.

Grocery store mergers could potentially result in a monopoly situation, wherein the newly formed grocery conglomerate may increase food prices to unreasonably high levels. When prices for essential goods like food rise, lower and middle incomes people face significant difficulties to meet their basic needs. According to a member of the UFCW, a significant portion of the workforce in these grocery chains is already living paycheck to paycheck. It’s clear that these companies prioritise profits over the welfare of their employees and communities. The workers from both Kroger and Albertson groceries are calling for support in their fight against corporate greed and to protect the communities from the harmful impacts of this proposed mega-merger.

Many grocers systematically infer information about customers from their purchases and “enrich” the personal information provided with additional data from third-party brokers, potentially including race, ethnicity, age, finances, employment, and online activities. Some of them even track customer precise movements in stores. They then analyse all this data and sell it to consumer brands eager to use it for target advertising and otherwise improve their sales efforts.

On Tuesday, 9 May, the same day that the Israeli government launched its aggression on Gaza, resulting in the death of 34 Palestinians including children, Carrefour group opened 50 branches to serve customers in apartheid Israel. As Carrefour Group is holding its General Assembly on the 26 May in Paris, people across the world are mobilizing for the #BoycottCarrefour Global Week of Action from May 21- 26. The BDS movement have called on supporters of Palestinian rights worldwide to #BoycottCarrefour, until the multinational retailer ends its franchise agreement with Israel’s Electra Consumer Products and its subsidiary Yenot Bitant; and stops all sales of products from illegal Israeli settlements in the thousands of supermarkets and convenience stores it operates around the world.

Saudi Arabia’s Public Investment Fund (PIF) will acquire a 30 per cent stake in Tamimi Markets, one of the kingdom’s biggest grocery chains. The Saudi wealth fund owns stakes in several companies in the consumer goods and retail sector including Noon.com, the leading Middle East online shopping platform, Halal Products Development Company, and Americana Restaurants International.