By Victor Ahiuma-Young

Global trade unions have launched a scathing critique of the International Monetary Fund, IMF, and the World Bank, accusing the two Bretton Woods institutions of pursuing outdated economic policies that are worsening inequality, deepening poverty, and fuelling job losses across the globe.

The criticism comes as both institutions prepare for their Spring Meetings, with labour leaders warning that the current policy direction risks further destabilising already fragile economies and societies.

Under the umbrella of the Council of Global Unions, which includes the International Trade Union Confederation, ITUC, the labour movement said the IMF and World Bank have continued to rely on austerity-driven frameworks and private-sector-led approaches that have repeatedly failed working people.

In a strongly worded statement, the unions said the institutions were “doubling down on outdated policy prescriptions that exacerbate precarity, instability and conflict, rather than promoting decent work and addressing inequality.”

They further argued that the political limitations of both organisations have been exposed by their inability to respond meaningfully to the scale of humanitarian and economic fallout from the ongoing war in the Middle East.

Calling for a decisive shift in approach, the unions urged the IMF and World Bank to abandon policies that have “failed in the past” and instead embrace reforms centred on workers, social justice, and strong public services.

ITUC General Secretary, Luc Triangle, delivered a blunt assessment of the situation, saying the institutions now face a defining moment.

Triangle said: “The IMF and World Bank stand at a crossroads. They can continue down a path of austerity-driven frameworks that have too often failed working people, or they can choose a better direction grounded in rights, decent work and shared prosperity.

“Workers must be at the centre of economic policymaking if we are to build resilient and inclusive societies.”

The Global Unions also took particular aim at the World Bank’s recent emphasis on job creation, arguing that its actions do not match its rhetoric.

“Although the World Bank has stressed its renewed emphasis on jobs, it has in reality doubled down on financialised, private-sector approaches in its lending-especially in fragile and conflict-affected states-and failed to internalise decent work and robust labour market institutions into the development outcomes it claims to seek,” the statement said.

On the IMF, the unions insisted that the Fund must go beyond rhetoric and take concrete steps to tackle inequality.

“The IMF must genuinely focus on tackling inequality and assessing the distributional effects of its programmes before prescribing austerity,” the statement added.

The unions pointed to ongoing internal review processes within both institutions as a critical opportunity for change. These include the International Finance Corporation’s Sustainability Framework Review and the IMF’s Comprehensive Surveillance Review.

According to the labour groups, these reviews must not be mere procedural exercises but should demonstrate “meaningful engagement with workers” and a genuine commitment to addressing global systemic challenges.

They outlined a set of demands, urging both institutions to engage in systematic consultations with trade unions, protect workers’ rights in all financed projects, and uphold international labour standards in collaboration with the International Labour Organization (ILO).

The unions also called for progressive taxation measures to fund public services, stronger efforts to combat tax evasion, and a clear shift away from austerity policies toward investment in quality public services and living wages.

In addition, they emphasised the need for economic policies that ensure digital and green transitions create decent jobs while reducing inequalities, rather than exacerbating them.

Rejecting privatisation policies that limit access to essential services, the unions stressed that public welfare must take precedence over profit-driven models.

“A new economic model is urgently needed-one that delivers fairness, dignity and opportunity for all workers,” the statement declared.

A delegation of trade union representatives is expected to participate in the Spring Meetings, where they will press these demands and seek to influence the direction of global economic policymaking.

With tensions rising over inequality and economic hardship worldwide, the coming meetings are shaping up to be a critical test of whether the IMF and World Bank are willing to heed the growing calls for reform-or remain on a path increasingly criticised as out of touch with the realities facing workers.