The International Trade Union Confederation (ITUC) has strongly criticised the World Bank’s newly launched Business Ready (B-Ready) Index for its ranking of countries’ labour policies, describing the methodology as “dangerous” and counterproductive to worker rights. The B-Ready Index assesses countries on the ease of doing business, including their labour policies, a component that has sparked backlash from trade unions globally.
ITUC General Secretary Luc Triangle expressed deep concern over the index, warning that it encourages a global race to the bottom in labour rights, working conditions, and social protection. Triangle stated, “As workers around the world face brutal retaliation for exercising their right to organise a union and improve their working conditions, it is deeply troubling for the World Bank to rank countries in a way that stimulates competition to erode labour standards.”
Flawed Methodology and Superficial Evaluation
The ITUC had voiced opposition to the B-Ready Index even before its launch, particularly regarding its proposed methodology. Triangle reiterated these concerns, explaining that reforms based on an analysis that lacks democratic consultation and social dialogue are “misguided at best and dangerous at worst.” He emphasized that labour policies should not be simplified and ranked alongside business licenses or utility hook-ups, calling for their removal from the index.
According to Triangle, the ITUC is particularly frustrated by the World Bank’s disregard for trade unions’ repeated requests to engage in consultations on the index’s development. “The B-Ready Index has critical flaws, particularly in its superficial evaluation of workers’ rights, allowing countries like the Philippines and Indonesia to score high despite poor records. This undermines its credibility and encourages superficial reforms,” Triangle said.
Encouraging Harmful Reforms
The ITUC also criticised the index for penalising contribution-based social protection systems in favour of tax-financed schemes, which Triangle argued could widen protection gaps. Furthermore, he warned that the index’s approach promotes harmful flexibility, such as unlimited fixed-term contracts and low wages, while undermining collective bargaining—a cornerstone of worker protections and inclusive development.
“The B-Ready Index is a renewal of the World Bank’s previously discredited Doing Business Report, which was discontinued in 2020 following serious methodological and data failures and widespread criticism by academics, trade unions, and civil society,” Triangle added.
The ITUC’s condemnation highlights growing tensions between global financial institutions and labour movements over the impact of economic reforms on worker rights. The union has called for the World Bank to revise its approach and engage in genuine dialogue with labour organisations to ensure that any future rankings contribute to improving, not eroding, worker conditions worldwide.
