Global Union Strategies for Recovery

MAY 2009

Getting the World to Work • MAY 09 • 1 PREFACE by Aidan White

There is no escaping the despair caused by recession and economic decline. Across the world millions of workers and their families are suffering because they cannot keep their jobs and cannot get work as the deep- est recession since the 1930s begins to bite. The misery of mass unemployment is felt everywhere. In the United States job losses began in the first days of 2008 and accelerated after the financial crash in October with 3.3 million jobs lost in the last six months alone. There are fears that unemployment will reach 12 per cent.1 In Europe the jobs crunch is just becoming visible. The European Commission predicts a jobless rate of 9.5 per cent next year. Many economists fear it will be higher. All the predictions are gloomy. With production falls in Japan and the emerging Asian economies included, the International Labor Organization predicts an increase in jobless figures of 50 million across the globe. Even this is thought to be an optimistic figure. Workers are facing the ordeal of a slump that has no precedent in their lifetimes. At this critical moment, trade unions are mobilising. They have developed a vision for the world economy that goes beyond tinkering with regulation and repairing broken models of free trade. They argue that it is time to forge a new policy landscape that will create a fairer and more sustainable world economy for future generations. It is a vision that fits with the history of our time, arguing for the elimination, once and for all, of extreme capitalism and the unrestrained greed that have perverted so much of the global financial system. In this special publication, the Global Union Federations, working with the Trade Union Advisory Committee to the OECD and the Interna- tional Trade Union Confederation, set out alternative strategies for the global economy that are focused on getting people back in work and for a recovery plan based on humanitarian values. These arguments, agreed by Global Unions, were put before world leaders in Washington in November 2008 and were put on the table again at the meeting of the Group of 20 in London in April 2009. Put simply, unions demand a change of direction and a break with the greed, self- interest and inequalities of the past. For full details of the results of the G20 summit in London see http://www. londonsummit.gov.uk/resources/en/PDF/final-communique and catch up on the Global Unions’ analysis at www.ituc-csi.org and www.tuac.org.

1 Economist March 14th 2009

Editor’s Preface 2 / Introduction: Guy Ryder on the elimination of greed 3 / Anita Normark and Jim Baker on how Global Unions are Inside getting organised 4 / Global Union perspectives: Manfred Warda on finding a sustainable energy solution 6 / Marcello Malentacchi argues for a world that works for all 8 / Peter Waldorff puts the focus on public services 10 / Ron Oswald calls for political hands back on the controls of the global economy 12 / The migration challenge touches us all says Anita Normark 14 / Fred Van Leeuwen says education is the key 16 / Neil Kearney finds a rare opportunity to challenge the scourge of global poverty 18 / John Evans on why Global Unions want a radical change of direction 4 / Oliver Roethig looks at financial futures for bank workers 32 / Media are turning to ethics for a change says Aidan White 34 / David Cockroft sees opportunities for a union revival 35 / Who we are – the Global Unions 36

Plus a Twelve-Page special on union arguments for change to global leaders 20 PREFACE by Aidan White G20 opens the Door to Change Time to Press Ahead with the Union Agenda by Guy Ryder

Jobs and social issues are on the global agenda for recovery thanks London has opened the door, but the fundamental changes that to trade union pressure on world leaders at the G20 summit in will bring about a recovery based London. Our demands for change – set out in this publication – have upon a new values-based direction for the global economy have still to produced tangible results.” But the heavy lifting for a significant be made. Governments must begin turn around in international economic policy is still to be done. work on a framework of governance that changes the failed system of market fundamentalism that has Unions have responded robustly ment to take action against tax dominated policy for the past three to the challenge to eliminate the havens that don’t follow guidelines decades and which has had such a reckless self-interest and the greed of the Organisation for Economic devastating effect on the lives of which according to Dominique Co-operation and Development millions. Subjecting the economy Strauss-Kahn, Managing Director of (OECD) and, if necessary, to impose to democratic control and building the International Monetary Fund, sanctions on those who step out of fairer societies means combining re- speaking with a Global Unions del- line. awakened values with strong, effi- egation in January of 2009, is the G20 leaders have responded cient, and responsive governments root cause of the current crisis. “We to union calls for a global solution committed to collective action. have to find a way to contain that which stresses the importance of The current crisis is too deep greed,” he said.. “the needs and jobs of hard-working to be ignored. It is no time for A start was made in London. families,” the need to “restore con- cosmetic treatment or fine tuning World leaders agreed that the fidence, growth and jobs” and job of regulatory machines that have International Labour Organisation saving and creation as a central utterly failed to keep in check the (ILO), the only tripartite body in the purpose of fiscal expansion. The reckless capacity of financial mar- United Nations system will take summit conclusions call for creat- kets to do lasting damage. part in follow-up to the summit to ing employment opportunities for The simple objective is to come be held in New York later in 2009 those affected by the crisis, includ- out of the crisis with an economy and will assess actions being taken ing income support measures; that is more just and, therefore, to create jobs. building “a fair and family-friendly more sustainable. This crisis gives The summit also supported fur- labour market for both women and us the chance to develop solutions ther discussion on a “charter” pro- men”; and supporting employment to the long-term scourge of poverty posed by German Chancellor Angela by stimulating growth, investing in and the urgent challenge of global Merkel and others to achieve a new education and training, and active warming. It provides opportunities global consensus on the key values labour market policies, focusing on to create jobs in the short term and principles for sustainable eco- the most vulnerable. as well as developing sustainable nomic activity. This is an opportu- But it’s not enough. Just how industrial policy that will generate nity for unions to press home their much more needs to be done long-term stable employment, so demands for a change of tone and was highlighted on the eve of the that when economic growth and substance on workers’ rights that summit when the OECD published employment creation resume, it can will integrate social justice into a its interim forecasts showing the be cleaner, greener, and healthier. coherent global agenda. global economy shrinking by 2.7 per But this crisis cannot be fixed There will be more money – an cent, even more in richer countries, behind closed doors by a small, extra 1.1 trillion dollars in fact – put and as a result unemployment is exclusive group of those who have into the pot to encourage more likely to double over the course of helped create the crisis in the first lending, but the bulk of it will go to the year in some major economies. place. The new architecture should the IMF where concerns still remain Unions must strengthen their contain greed rather than protecting about the “strings attached” strat- calls for a global jobs pact that it. That is why we insist on an open egy of IMF loans which often force will put employment at the heart political strategy where, among national governments to impose of recovery. The union campaign other things, the voices of many mil- cuts on jobs and services at home in around the World Day for Decent lions of union members can be heard return for economic support. Work on October 7 now becomes a through their Global Unions. Importantly, the summit focal point for international solidar- agreed to strengthen international ity to get people back to work and Guy Ryder is the General Secretary financial regulation, including of the economy moving again in every of the International Trade Union hedge funds, and there was agree- corner of the globe. Confederation.

Getting the World to Work • MAY 09 • 3 Council of Global Unions: Putting the World to Rights Through United Action by Anita Normark and JIM Baker

The mission statement OF THE COUNCIL OF GLOBAL UNIONS, SIGNED IN JANUARY, 2007 SAYS IT ALL – “TO ORGANISE, TO DEFEND HUMAN RIGHTS AND LABOUR STANDARDS EVERYWHERE, AND TO PROMOTE THE GROWTH OF TRADE UNIONS FOR THE BENEFIT OF ALL WORKING MEN AND WOMEN AND THEIR FAMILIES.” NEVER HAS THIS SIMPLE EXPRESSION OF SOLIDAR- ITY BEEN MORE NEEDED THAN IN THESE TROUBLED TIMES.

The recession that has followed on the Other countries are also being identi- heels of the financial services collapse fied where we can combine our political has reinforced the need for partnership and industrial force to give workers a between organisations representing chance to exercise the right to organise national centres and those representing their unions and bargain. That includes sectoral unions. This is the time when country targets as well as collaboration unions need all the political and in Export Processing Zones. industrial muscle they can muster. The increasing numbers of precari- This publication outlines a strate- ous and informal work relationships gic response to the global crisis from throughout the world have also become the international trade union move- a serious barrier to organising, bargain- ment. The ideas set out here are being ing, and building trade union strength. put before the international commu- Workers outside the orbit of regular, nity and world leaders, not to duplicate direct employment contracts, live in a work already being done by individual twilight world of precarious work often Global Unions, individually or col- without any social, legal or bargaining lectively, but to raise a single, unified protection. And, even those protected voice in favour of a recovery strategy on paper are often afraid to organise that puts people first. and risk losing employment. “Disposa- The Global Union movement takes ble” workers have been the first victims strength from concerted activity. It of the economic crisis. Co-operation serves as a forum for sharing informa- in this area, facilitated by a working tion and ideas and as a catalyst for group, has been one of the highest pri- action and co-operation that is valuable orities of Global Unions. We must come to the international trade union move- out of this crisis with a restoration of ment as a whole. the idea of regular employment not Nearly all of the actions of the only for the sake of the affected work- Council of Global Unions relate to ers, but also to help to block an employ- organising and trade union recognition. ment “freefall” whenever economic It may be working to effect changes in troubles hit. This global work is advanc- labour legislation and its implementa- ing rapidly due to tight co-operation tion so that workers are free to form among Global Unions on policy, includ- unions without fear. The effort to pro- ing with intergovernmental bodies, and vide international support for the effort on sectoral work in the areas of organ- of the US trade union movement to ising and industrial relations. adopt the Employee Free Choice Act is Global migration is another increas- one such and very important example. ing phenomenon affecting organising

4 • Getting the World to Work • May 09 © M. Crozet/ILO © R . L ord/ ILO

possibilities, especially in some sectors and national markets. They are often like construction, health and service operating with turnover budgets sectors. Therefore, joint work has been bigger than many national budgets. initiated on migration, an issue that has This also has an impact on national both a policy dimension and sector-spe- labour markets and opportunities to cific impact.I n the coming years millions organise workers and defend their of workers will be crossing continents in rights. Global social dialogue between search of work and a better life and co- several Global Union Federations and operation among Global Unions is seen individual companies has expanded as a way of strengthening both policy enormously over recent decades, and sectoral responses. including though the negotiation of Also important are efforts to over 60 international or global frame- influence the impact and role of work agreements with multinational multinational companies on global corporations. The Council of Global Unions is gathering and exchanging information on company strategies and framework agreements. Fulfilling our trade union ambitions is not possible, however, without good laws that fully protect rights and that are enforced. That requires governments that work and a reha- bilitation of public service values. The economic crisis underlines the folly of “contracting out” public responsibili- ties and the public good to those who are driven by profit. The wide range of issues from quality public services to fair and adequate taxation, to the vital policy, directed towards increased links between public rules and private scope for collective bargaining as a conduct and performance to economic process to redistribute wealth and to and social justice are being examined promote equality. The impact of dis- together by Global Unions. A “recovery” crimination based on gender, national with government back in the closet status, race, religion, and other con- after the banks are back on their feet or siderations is growing as the financial, with public service values crowded out food, and energy crises worsen. by private profit will re-sow the seeds All of these issues provide a rich and of market meltdown. plentiful agenda for union action. Suc- To make the most of this wide- cess is not guaranteed, but progress will ranging Global Unions’ programme be made so long as there are better com- and to help its members communicate munications and stronger ties between better with their members and the gen- the national and international com- eral public, elements of a unified, coher- munities of labour. Working together to ent campaigning and communications promote international labour standards strategy are being developed. A task to defend workers rights to organise force brings together Global Unions and bargain collectively, promoting to develop common communications industrial co-operation, new laws and approaches and tools, including making a liberating policy environment as well further advances into the internet age. as action at workplaces, will bring its This publication is itself an initiative of rewards. The recovery from the mess the task force. created by global capitalism will take It is impossible to examine the time and will be painful, but the interna- options for recovery without address- tional labour movement is determined ing the growing inequality inside and to put coherent and effective trade among countries. Poverty and unem- union strategies for rights and growth ployment are expanding so rapidly into the mix of solutions. that figures become almost instantly Anita Normark, General Secretary out of date. of the Building and Woodworkers A response to the economic crisis International, is the Chair of the Council is not just about financial regulation of Global Unions and oversight; any recovery must deal with inequalities and injustices and Jim Baker is Co-ordinator of the Council forge a new approach in government of Global Unions

Getting the World to Work • MAY 09 • 5 Finding a sustainable energy solution Future Fuel Manfred Warda

Like other Global Unions the International Federation of will continue to provide more than 85 per cent of world energy needs. The Chemical, Energy, mine and general workers’ unions (ICEM) total contribution of non-fossil fuels has reacted quickly to put the financial crisis and the global to the mix will grow but from a low recession into the centre of its work. initial base. Energy demand in the short term is falling as manufacturing industries contract. Demand plummeted in the Meeting on 6 November, 2008 in the international community must latter part of 2008 and global oil stock- Geneva, at a time when the world was not abandon existing commitments piles grew. In the third quarter of 2008, still in shock at the extent of the global regarding project development in the United States oil consumption shrank financial collapse, the Federation’s countries that need it the most, or to by about 1 million barrels per day – leaders did not mince words. abandon or diminish work to achieve that’s around a 5 per cent decrease. By In their statement the ICEM Pre- the Millennium Development Goals. the end of 2008 it had dropped by 6.5 sidium said this was a turning point in For its part the ICEM plans to use per cent. Further declines are expected history, proof that the current system its links with the Council of Global in 2009. of capital has not worked and called for Unions to help forge a labour campaign Oil prices since the beginning of change – in particular the creation of a that will see a radical transformation 2008 have been volatile. Increased new and fairer system of global capital of the global economy – more stringent demand in emerging economies, wor- based upon “stringent financial over- financial oversight and governance ries over future supplies and regional sight and governance, including a new and regulations that will stick as well instability, as well as outright specula- set of global regulations.” as opening the door to a new order in tion saw the benchmark price of crude Union leaders know better than which more developing countries are oil rocket to almost $150 a barrel and most that those people of the world brought into the process of monitoring then plummet to levels of around $40 a least responsible for the collapse are and controlling global capital. barrel. Percentage changes in the price the most vulnerable, worst affected, In the energy industries, and spe- have seen fluctuations of rising or fall- and the least able to cope in the after- cifically oil, the economic turmoil and ing by 12 per cent or more in just one math of the crisis. recession is made more uncertain by the day of trading in January 2009. All ICEM Industries are affected. impact of the downward price of oil. The impact has been clear. The It is clear that 2009 will bring a deeper Globally, the world remains over- falling prices have led to the cancella- impact. The collapse of motor industry whelmingly dependent on fossil fuels. tion or postponement of a number of sales instantly affects the tyre, rubber While oil remains the world’s leading oil industry investments. Prices will and plastics sector. Workers in the flat fuel, over the last 6 years it has consist- remain low for the period of the depres- glass industry are part dependent on ently lost global market share – princi- sion, exploration efforts will slow and the auto sector and equally affected pally to coal. there will be a surplus of production by the downturn in construction. The growth in coal and increased capacity over demand. Reduced raw materials prices are demand for oil, have been driven by However, the price will rebound. taking their toll on the mining sector the expanding economies of China and With industry cutting back on invest- and general chemicals. India. Indeed the Asia-Pacific region ment, there will be less capacity to But the crisis and recession must accounted for two-thirds of global meet rising demand when the world be no excuse for making the situation energy consumption growth in 2007, economy does recover. worse by easing up on international rising by an above average 5 per cent. The world is not faced with the end commitments to development of the China again accounted for half of of oil and gas supplies although it is very world’s poorest economies. global energy consumption growth. likely that we can already see the end The ICEM Presidium says that Most forecasts predict that by of “cheap” future oil reserves that cost the world’s financial institutions and 2030, with oil in the lead, fossil fuels only a few dollars a barrel to produce.

6 • Getting the World to Work • MAY 09 Images © M. Crozet/ILO

“The world is not faced with the end of oil and gas supplies although it is very likely that we can already see the end of “cheap” future oil reserves that cost only a few dollars a barrel to produce.

Such fields are only in the Middle supplies including oil-sands, oil shale This likely continued dependence” East, in shallow onshore wells with and heavy oil deposits. of the world economy on fossil-fuels relatively simple geology. Iraq is Northern Alberta in Canada, creates major challenges regarding probably the only country where such for instance, has the world’s largest climate change. reserves are presently under-exploited. tar sands reserves at an estimated The world works when it has the But there remains a large and 174 billion barrels of oil. Extraction energy it needs, but it will have to make increasing resource base, that together remains expensive with many of the sure that it makes the change to a with the vast amounts of nonconven- massive projects under development sustainable future that will create more tional oil capable of being exploited, requiring oil prices of around $75 jobs and improve the quality of life for there is enough oil to meet the world’s per barrel. all. That is why addressing the challenge needs for the foreseeable future. Even these massive reserves are of climate change is, like the need to put What is an issue, however, is potentially dwarfed by the United people first, one of the key demands as the deliverability of the required oil. States seams of underground oil shale unions develop their own strategies for Future production will be heavily in the Rocky Mountains that are said to a durable and lasting recovery. focused on resources in deep and contain an estimated 800 billion barrels very deep water offshore. It will be in of oil – about three times the reserves Manfred Warda is the General hostile and environmentally sensitive of Saudi Arabia. Extraction would Secretary of the International environments such as the Arctic Region be expensive and require massive Federation of Chemical, Energy, Mine as well as so-called “nonconventional” amounts of water. and General Workers’ Unions

Getting the World to Work • MAY 09 • 7 Unions Call for a World that Works for All Decency for a Change BY Marcello Malentacchi

Governments around the world had probably no option tion to give priority to more security for working people and to bring humanity Other than to rescue the corrupt financial system that caused and an ethic of solidarity into play. The the economic crash we are paying for today. But it is a bail-out measure of success of policies adopted that comes at a hefty price for working people. today will be in actions that will generate stable employment and encourage redistribution of wealth rather than a return to the volatility of markets and Millions of industrial and service jobs Market economy based on short-term profit-taking. have been eliminated during the last speculation and uncontrolled capital In a civilised world everyone few months. Most of them, mainly held movement is not the solution to the should have access to an adequate job by young people and women, come problems the world is facing. We know in an economy geared towards produc- from the most vulnerable parts of the that very well, which is why the bail out ing wealth and providing opportunities workforce – those on short term con- will not be the solution to the crisis if for self development and self reliance. tracts, working part time, or locked into measures taken by the governments These are the fundamental goals for other precarious forms of work. in the USA, Europe and Japan are not the economic, social and political It is undeniable, but hardly useful, conditioned by direct state interven- system for the modern society. to say that what happened was pre- tion. If the state does not show its hand The recent crisis has been caused by dictable and could have been avoided. clearly, the so-called rescue will only speculation through capital movements Trade unions at all levels, not least on feed yet more speculation. within the network of stock exchanges the international scene, have warned At the same time, beyond the around the globe. But wealth for the that unregulated speculation would crisis of financial institutions, new be the ruin of the financial system. industrial policies are required to get We argued that what was needed was economies moving and these must be control exercised within the orbit of based on the priority of creating sus- national governments and parliaments, tainable employment. as well as agreed rules for governance The world needs a financial bank- operated through democratic interna- ing system that functions as a motor tional institutions. for progress and provides the drive It is scandalous that it took only a for the development of a stable and couple of weeks for governments in the sustainable economic system. Banks rich parts of the world to collect more and insurance companies need to be than US$ 2,000,000,000,000 (that’s right, bound by rules that are determined not two thousand billion US dollars) to bail by vague, ambiguous and self-serving out banks, insurance companies and voluntary codes of conduct but by laws other financial institutions on the brink and international rules that are recog- of bankruptcy when we know that ten nised by all governments. years ago, when the UN asked for a More importantly, the present crisis tenth of that amount to halve the pov- should be the wake-up call that forces erty afflicting the world’s poor, hardly the world to rethink our economic and anyone moved a finger to collect that social models. We need to reshape the money. agenda of economic and social organisa-

8 • Getting the World to Work • May 09 © R. LOrd/ILO © M. R i ma ndo/ ILO

people can only be based on the produc- Our society is based on consump- control. Now we see the consequences tion of goods and services. tion. The paradox is that we cannot con- of foolhardy liberalisation of the econ- The enormous sums of money that sume if we don’t produce and if we don’t omy first encouraged by Reagan and governments have decided to put up produce we cannot consume either. Thatcher and then taken up by others to rescue financial institutions must None of this points towards a including many progressive and social come from somewhere. People might regression towards rural economies or democratic parties and governments. believe that those funds are resting in the primitive models of economy based We need a new course. We can the vaults of the central banks and can on exchange of goods. start by aiming for fairer distribution be made available as soon the decision But this is a time when we need to of the world’s wealth. In this the trade is made. But it is not that simple. clear our minds and think again about union movement at national, regional The equivalent of 2000 billion how we reinforce and strengthen the and global level has a great role to play. dollars has to be generated through core values on which we believe society Through collective bargaining we can added value from the productive should be built. begin to renew the dialogue that leads apparatus. Only then can it be dis- The system of private capital has to fairness, reward and justice for the tributed to the financial institutions come up short. It is demonstrably not people who have been forgotten in the which will then feed it through the the model equipped to solve the enor- rush to shore-up the creaking appara- system to companies and private per- mous problems facing a world chal- tus of globalisation. sons. What the governments are ready lenged by poverty, inadequate health The crisis can be resolved and a to do is to issue bonds that will give care and sanitation, ignorance and return to decency is possible, but that the warranty for future debts con- poor education, climate change and will not happen unless we give voice to tracted by the banks. water shortage, migration and modern those at work. That involves making sure In other words future generations slavery, and the scourge of want that that the right to organise and the right to will have to create more added-value afflicts millions everywhere, but espe- bargaining are the foundation stones of to repay the debts being built up by cially Africa. All of these and many other a new economic and social structure that today’s decision makers. problems remain unsolved despite will provide us with the means to ensure The legacy of our generation will promises that globalisation of the world that we are never again held hostage by not just be failure to secure better economy driven by free market econom- slick and shady global marketeers. standards for our children and grand- ics would provide solutions. children, but we will leave an increased It was said that the market could Marcello Malentacchi is General Secre- burden of debt as a result of the take care of itself. There was no need tary of the International Metalworkers present financial crisis. for any form of state intervention or Federation.

Getting the World to Work • MAY 09 • 9 Quality Public Services are key Capital Alternative Peter Waldorff

After 30 years of mismanagement, the public sector is being called upon to clean up the mess created by unrestrained and largely unregulated global capitalism. We are expected to pay for the insatiable greed of corporate executives and the mistakes of market fundamentalists. It is deeply ironic that one of the main tenets of their discredited ideology was to shrink © to m f e ws ter /i s ckp hoto. c o government either by deregulation or by privatisation, but in the face of oblivion the government is called on to save them and to repair the damage of years of abuse of the public wealth.

Jeffrey Sachs in an article in Time whether financial, political or intellec- Magazine in January 2009 calls for tual. They continue to exercise lobbying bigger government. It is an appeal to muscle to block legislation that may decision makers on the need to accept be harmful to their interests. And they that government and public services will attempt to redefine the arguments, are part of the solution and not part of even around the public bailouts that the problem. are needed to pay for their excesses. Media scare-mongering about bil- Public Services International is lowing public deficits cuts little ice in currently collaborating with the ITUC the real world. A recent study of Public on efforts to inject the rights of work- Services International Research Unit ers and their families into the debate (PSIRU) makes clear that the crisis is not about new financial architecture and caused by excessive government bor- the economic stimulus packages now rowing. PSIRU concludes that while the being rolled out, whether it is at the United States, the United Kingdom and level of the G20 countries summit some other European Union countries or in the Organisation for Economic are increasing their deficits substan- Co-operation and Development. We are tially as a result of nationalisation and also working with other Global Union reflationary measures, there is no sign Federations to put public services at global recession and to improve the that they will find it difficult to finance the heart of strategies for recovery. quality of life for all. Governments these deficits. The arguments for respect for public are spending billions on improving Although a small minority of coun- service values in the services that are infrastructure, primarily as a means of tries have serious deficits and problems needed for society to function have economic stimulus, and it is vital that financing them, including Pakistan, never been so important then at a time we ensure this public money is used to Hungary, Ukraine, Iceland and Turkey, when the private sector has inflicted strengthen the rights and conditions of there is not a general crisis of govern- such terrible damage on communities all workers. ment deficits in other developed coun- around the world. What we do not need are more tries, nor in developing countries. Current programmes for infra- excuses for privatisation. We must It is clear that the market funda- structure investment are a way to make the case, and forcefully, that pri- mentalists have done their damage. provide the economic stimulus needed vatisation has failed, costs too much, But they still control vast resources, to decrease the impact of the current and doesn’t meet the needs of our fami-

10 • Getting the World to Work • MMAYay 09 Capital Alternative Peter Waldorff

“One area where public service workers have felt the chill of recession and financial collapse is the threat posed to capitalised pension funds of public sector workers. Funds invested in equities or in private equity, hedge funds and sophisticated debt instruments have lost huge sums.

funds and sophisticated debt instru- This is all the more reason to ments have lost huge sums. push for a universal social security” Many governments will undoubt- scheme, such as the Basic Social edly call for wage restrictions in order Security Floor promoted by the ILO. to make up pensions liabilities, but the This will protect retired workers in questions we must ask include what has many countries that have no public been the role of fund managers in pre- pension schemes, and minimal cipitating this crisis, and, more impor- private pensions. tantly, what policies, guidelines and Governments should also take safeguards do our pension funds need a much larger responsibility when it to implement to be part of the solution? comes to creating an active labour In the United States we are explor- market policy – investing in the devel- ing mechanisms to allow pension funds opment of new skills to people who to invest in the massive infrastructure risk losing their jobs in industries programme which President Obama has under attack. put in place. The hope is that financial Now is the time for the bankers, engineering will allow them to invest in and the international community to lies and our communities. There is no public services, not in privatisation. face a global audience. Now is the excuse for inefficient, non-transparent We know that the financial crisis time for transparency not secret and non-responsive governments or will mean even more global poverty sessions and inside dealings. More public services. Public services can, and in the coming years. The International than ever we need open government, must be improved, and PSI is working Monetary Fund foresees rising job accountability and participation to with a number of unions to create posi- losses for almost every country in set the world back on course and to tive models of modern municipalities. the world. International Labour help eradicate poverty. It’s a rare One area where public service Organization (ILO) Director General chance for workers to strike a blow workers have felt the chill of recession Juan Somavia recently said that the for decent work and quality public and financial collapse is the threat number of working poor living on less services and one not to miss. posed to capitalised pension funds of than a dollar a day could rise by some public sector workers. Funds invested 40 million – and those at 2 dollars a day Peter Waldorff is General Secretary of in equities or in private equity, hedge by more than 100 million. Public Services International.

Getting the World to Work • MAY 09 • 11 Putting People and Politics back in Control It’s About Power... Ron Oswald

The meltdown of the international financial system and its for expansion and further integration of the global financial services sector. consequences for the economy puts hundreds of thousands of The leaders of the financial sector, workers, many of them IUF members, in a dire situation. It’s very unabashed at the folly of their previ- hard to talk of opportunities, but one thing is for sure – this ous actions, have a clear timetable. They said: “As financial institutions system cannot go on operating as it has until now. and markets are being restored to normal functioning, well-defined exit strategies need to be formulated and Deregulation of markets is being manufacturing and services. While jobs implemented. Emergency action should criticised more strongly than it has for around the world are being destroyed not provide the basis for a permanently decades, and the free market has been by the hour, massive new financial bets larger role for the public in the interna- completely discredited as the model for are being placed on corporate debt and tional financial system: this would risk the operation of the global economy. share values as investors seek to cash setting back the prospects for renewed We have an opportunity to change in on the damage. sustained growth of output and jobs by the neoliberal system. There is wide- The summit’s vague and lackadai- introducing widespread inefficiencies spread support for the notion that poli- sical timetable for change revealed into global markets.” tics must reassert its role as the motor a political community uncertain and The message is clear: in times of that drives the economy. So when we talk unfocused, unlike the precise and crisis, governments should bail out the of opportunities we’re referring to politi- challenging demands of the financial financial sector and then quickly retreat cal opportunities, with the objective that sector. The Institute of International to their traditionally more limited role of the international institutions which have Finance, the financial sector’s global underpinning the expansion of private hitherto provided cover for unfettered lobby organisation, set out its demands finance by guaranteeing public debt. capitalism must now be updated and in a letter on the eve of the summit Does the dismal performance of reshaped to focus on regulating capital, signed by IIF Chairman (and Deutsche governments reflect merely a failure of instead of deregulating the economy. Bank head) Joseph Ackermann and four will and imagination on their part? Is it But we have some way to go. What other high-ranking bankers. It signalled realistic to imagine that alternatives to we have seen so far are national efforts two key demands: first, the creation neo-liberal orthodoxy will emerge spon- in different countries around the world of a Global Financial Regulatory Coor- taneously from a Group of 8 enlarged aimed at imposing a political control dinating Council to direct the interna- to 20, 30 or more central banks when over the free market. Many governments tional financial system, and, second, the only shared commitment of their are intervening directly to take control the expansion of the club of exclusive national financial lobbies is to protect of the banking system, but many of nations from G8 to G20. the value of their dollar reserves? them are unwilling to actually exercise In the blueprint for the new Coun- Expanding the participation of the power they have. The British govern- cil the IIF seeks to strengthen the role (selected) developing countries in global ment, for example, like many others, of the International Monetary Fund, summit exercises meets demands has intervened in the banking system, despite its destructive role in previous for greater representation but leaves but instead of giving clear directions, it crises. The Council would serve as an untouched the social relations and bal- limits itself to suggesting or requesting umbrella group for private banks and ance of forces which are at the root of that certain actions be taken. the multilateral lending institutions the system and its present crisis. For all the talk in political circles and be linked to “colleges of supervi- A new financial architecture won’t of “a new global financial architec- sors” watching over (in the words of the be built by simply adding on rooms. ture” the first meeting of world lead- letter) “the top 30-40 global financial A new foundation is needed, and we ers to confront the financial crisis in services institutions”. won’t get it by “lobbying” the IMF or Washington in November 2008 pro- The IIF sees the expansion of the periodic conclaves of governments. duced meager results. G8 to G20 and greater representa- We need an intervention but it Despite the injection of trillions of tion rights for what they call “several must be less timid and on a global dollars of public money into national systemically important development scale. The international institutions, banking systems the financial car- countries” within the IMF and other the World Bank and the International nage continues and is now ravaging multilateral organisations as the basis Monetary Fund, set up 60 years ago,

12 • Getting the World to Work • MAY 09 Background image © Palto/istockphoto.com © M. Crozet/ILO

must begin to act as the market’s regu- Requests for more demand stimu- We reject the illusion that is lators – in doing so they may provide lation, more fairness and more respect sometimes created by talk of a “finan- the basis for the creation of a sustain- for workers rights are no more likely cial economy” and a “real economy.” able global economy, something we are to be heeded now than they have been There’s only one economy. It is only sorely lacking at present. in the past. The entire experience of the manipulation of corporations and These international bodies, called the past two decades – years in which companies that has made it possible the Bretton Woods institutions after labour’s historic gains have been rolled to separate financial matters from real the place where they were called into back on virtually every front – demon- economy matters. being, were created in a world very dif- strates otherwise. In the single global economy we ferent from the one we inhabit today. The labour movement, nationally must join together to protect ourselves, Working people yearn for new, and globally, faces a crisis of enormous particularly against transnational more democratic institutions to depth and scale. Institutions like the IMF corporations that are under strain manage global trade and economic which have traditionally served as the because of the crisis, but which try to affairs. They see the spread of poverty instruments for resolving more limited take advantage of the fear spread by and destitution throughout the world crises currently lack the resources to the crisis to impose changes in employ- as a much bigger problem for the secu- tackle it. And governments do not cur- ment and union rights they’ve been rity of the planet than those matters rently face the massive social and politi- wanting to make for a long time. which occupy the agenda of the United cal pressure which would push them to Our second task will be to join Nations Security Council, which is com- address the crisis in ways which could others in the global union movement mitted to keeping the peace. reverse decades of social and environ- and broader civil society in calling But ceasefires and peace treaties mental destruction and strengthen for changes in the way the economy are not enough to build a just and free labour’s capacity to mobilise. is regulated. We must move quickly, society. Perhaps we could invest real In this situation, all questions because this clamoring for change may power – similar to that enjoyed by the should be regarded as open – and an not last long. Security Council – in the United Nations opportunity for unions to intervene There are still those who believe that Department of Economic and Social in new ways through new alliances. the system is “fundamentally sound.” Affairs (ECOSOC). If governments are unable to act it It’s not, but given the chance, and with This body given the mandate and is not enough to fall back on the pro- billions of public money to support them, authority and political capacity to gramme and strategies of the IIF and they will seek to rebuild their credibility impose a sustainable economy, could the people who got us into this mess and structures without any change at make a profound difference to creat- in the first place. all in the foundations which provided ing peaceful, prosperous and socially For its part the IUF in encouraging free trade and the free market funda- just societies. The scourge of poverty a new approach has two tasks before mentalists with unconstrained influence and the scandal of social inequality are it. The first is to work with our mem- over the past 30 years. Instead, we must deep-rooted problems that must be bers to protect them as best as we can ensure that politics is at work where it’s addressed if we are serious about creat- against the effects of economic down- supposed to be – at the controls of and ing a lasting peace. turn and the financial collapse. steering the global economy.

Getting the World to Work • MAY 09 • 13 We should be “demanding at work, in the streets, in every public forum … that governments and corporations account On the Road Again for the growth of unemployment at a time Migrant Labour Under Fire in the Recession when unprecedented by Anita Normark sums of public money are being poured into At least 5 million construction workers world-wide lost the banking system. their jobs in 2008 alone due to the global economic crisis. Construction workers were among the first to be hit as the United States housing bubble burst.

In the US alone, over 30.000 construc- economic crisis. Reports show that ” tion workers lost their jobs in the building projects worth around 600 We should be demanding at last quarter of 2008. Migrating build- billion dollars in the United Arab Emir- work, in the streets, in every public ing workers from Mexico and other ates have been put on hold, leaving forum and through the creation Central American countries bore the up to 45 percent of the construction- of new ones, that governments brunt of the collapse of the sector in related work force jobless. and corporations account for the the United States. In China millions of rural migrant growth of unemployment at a Construction, being to a large workers signed up for building work time when unprecedented sums extent dependent on public invest- in connection with the Beijing Games of public money are being poured ment for infrastructure and housing, in 2008 and for construction in other into the banking system. Follow- is one of the hardest hit sectors. As a big cities. Out of an estimated 28 mil- ing the biggest nationalisations in consequence workers in sectors pro- lion workers coming from the rural history, labour should insist that viding building materials and wood areas, 3 million lost their jobs in 2008. the banks be regulated as a public have also been laid off as demand As one of the effects of the finan- good, structured as a public utility, has fallen. cial crisis, many governments now accountable for the pursuit of dem- The sector has been a magnet tend to take up protective measures ocratic policy objectives. Money for migrants often in low-skilled and forcing the foreign workforce to must be used to finance real invest- low-paid jobs and has been an impor- leave. Some examples: ment, not to finance finance. tant contributor to recent economic O The government in Thailand We have to join a broad move- growth. Relative to other sectors, construction hires more migrating announced that it would not ment aimed at attaining radical re-register migrants in 2009 in the and fundamental changes in the workers. The story is the same around the hope that some will leave when international institutions, so that their work permits expire, open- they will adapt to the objectives of world, where migrant workers have been exploited in the construction ing jobs for Thais as unemploy- controlling and regulating today’s ment rises. world economy. boom preceding the financial crisis; many have been ruthlessly used by It will not happen overnight, O The Malaysian government froze but we have the chance to step out unscrupulous employers and labour new entries of migrant workers of the shadows and place the trade agencies. Unions in many receiving to make more jobs available for union movement at the heart of countries have been working hard to Malaysians, and ordered employ- demands for change that will create organise and help migrant workers ers to lay off foreign workers first. a world far different from the one protect their rights and also to pro- we have just endured. tect prevailing wages and national O The Spanish government offered standards. lump-sum payments to jobless Ron Oswald is General Secretary Migrant workers are likely to be migrants who had earned unem- of the IUF, the International the first to be laid off. In Dubai, for ployment insurance benefits if Union of Food, Agricultural, Hotel, example, low-paid Asian workers who they agreed to leave. Many of Restaurant, Catering, Tobacco and came to build the skyscrapers were the migrant workers had jobs in Allied Workers’ Associations. among the first victims of the global construction.

14 • Getting the World to Work • May 09 Background image © clint spencer/istockphoto.com On the Road Again Migrant Labour Under Fire in the Recession by Anita Normark

O In Russia the youth branch of the mental, conditions of the pro- UnifiedR ussia party, calling itself curement has to be guaranteed. the Young Guard, has been engaged The launching of a “Green in a campaign to reclaim jobs for New Deal”, is called for by the Russians that are occupied by for- United Nations Environment Pro- eign migrant workers. They want to gramme and the International patrol construction sites in order to Labour Organization. A “Green as they say “avoid feeding foreign New Deal” can provide the basis economies and send money abroad for a recovery that both provides by paying migrant workers”. decent work and contributes to the fight against climate change. Restriction of controlled and regular The US report, Green migration will lead to many sending Recovery: A Program to Create countries being deprived of much- Good Jobs and Start Building a needed remittances, but many receiv- Low-Carbon Economy, claims ing countries need and benefit from that a $100 billion investment migrant workers. In addition there are programme in green economic fears that hostility to migrant labour recovery for energy efficiency gives rise to new tensions and intoler- would create two million US ance between communities. jobs over a two-year period To counteract these developments while also addressing global migrant workers in receiving countries warming and building a green, low- At best, job creation should prefer- should be guaranteed equal treatment, carbon economy. ably take place in peoples home coun- regular migration channels need to be There are solutions that will work. If tries, so that people are not forced to controlled and coherent policies within getting people back to work is the most flee for economic or social reasons. But and across nations for migration need important step to get the economy func- certainly in the construction sector, to be implemented. tional again then wage cuts can never migration will remain part of the future Bank and industry bailouts may be seen as part of the solution, rather it industry as well, but this will only work be a necessary short term solution to is adding to the problem since workers when equal rights are guaranteed for the immediate problems, also provid- who have less money to spend create all workers and there is action to coun- ing needed credits to construction, but less indirect jobs in other sectors. ter illegal migration. they are far from enough for a more People with stable employment The recession has few silver linings, sustainable solution. and decent income spend money creat- but there is no doubt that it provides For a longer term solution, a new ing more jobs in other sectors. The indi- an opportunity to invest in people and recovery plan to stabilise global capital rect creation of jobs in the construction the quality of their lives. With enhanced markets and to bring forward massive sector has been estimated at around social protection, including pensions, public investments in infrastructure is three to one. unemployment benefits, child support needed. It would also support the hard‐ One important step to avoid risking and health care schemes; with more hit construction and building materi- the loss of skilled workers, that would respect for workers’ rights; with a new als industries. Stimulus packages in take years to replace, is to promote and workable regime for global finance; construction are also needed to lower vocational training and retraining. This there is no reason why, guided by astute carbon emissions, save energy and is essential and should be intensified. and people-centered investment, we stimulate new forms of environmental Efforts should be made to find joint cannot move quickly to rebuild shat- energy. But as a lot of public money is constructive solutions between social tered economies and set a course for used, the social, as well as the environ- partners and governments. recovery and sustainable development.

Getting the World to Work • MAY 09 • 15 Education is an essential tool School for Recovery Fred van Leeuwen

It’s at times like this that of the key Millennium Development A global plan, implemented nation- Goals – primary education for all chil- ally, to recruit unemployed men and we need more investment in dren by the year 2015, in the developing women into education work would pro- people, and particularly in countries. Many more teachers and vide a major fiscal stimulus.I t would be a their education. With this in instructors are needed for secondary critical part of economic recovery plans and vocational education. as well as enhancing the education and mind, Education International Many of those thrown into training of children and young people. (EI) is developing a plan for unemployment in the current Schools and other educational crisis are likely to be attracted to institutions serve communities across action, not only to defend teaching or other jobs in education. every nation, and the positive impact of public funding for education, They would respond favourably employing more people in them will be to a plan to give them a chance to benefit to all. Investing in people who but also to mobilise political obtain qualifications to teach or to work in education will become part of support for investment undertake other work in education. the solution. The fiscal stimulus of get- in education as a critical element in economic recovery.

EI draws inspiration from the Global Unions Washington Declaration in November 2008 and its call that: beyond infrastructure, this is also the time to invest in people, and for: a renewed commitment to the provision of publicly financed, quality public services. We are inviting member organisations to send us their ideas on how education unions can take a pro-active and strategic approach to defend quality public education.

Bold action is required. We have to think “outside the box”, and get governments and voters to do so too. During 2009 the world will have tens of millions of newly unemployed men or women – many of them with good levels of education, a diversity of qualifications and skills and experience. UNESCO says the world needs 18 million qualified teachers just to meet demographic challenges in the industrialised countries and to achieve one

16 • Getting the World to Work • MMAYay 09 © Allan Gichigi/IRIN ting qualified and experienced people State the needs off unemployment rolls and into worth- 1. Compile details of staffing needs while jobs in education will take effect in education – for teaching and other more quickly and more broadly than positions in schools, vocational and would infrastructure projects alone. other educational institutions – build- In 2007 EI launched a new project ing on their existing knowledge, sur- © Manoocher Deghati/IRIN together with Novib (Oxfam Neth- veys and research. erlands) on Quality Educators for 2. Express these needs in terms of the All aimed at combating the growing personnel required to provide quality For a global crisis, there must be a tendency of governments, aided and education in safe schools for children global response and for that reason EI abetted by the World Bank, to employ and young people. unqualified people as teachers. We are is working closely with UNESCO, the World Bank, the ILO and the OECD. EI developing model programmes to pro- Call for national plans vide teacher training for those currently will seek support from Global Unions, unqualified.I t is an initiative that will 3. Draw up national plans to address its Global Campaign for Education grow in importance in developing coun- these staffing needs. In countries with partners, parents’ and students’ tries, as the economic crisis unfolds. two or more EI member organisations, groups, and business and industry Teachers in North and South are try to reach agreement on a single plan, organisations. in this together. The key everywhere is if possible. Our vision is sharp. If education negotiation between public authorities 4. Present the unions’ national plan to is to work for the global economy and and education unions on teacher edu- the authorities, to allied and friendly for the benefit of all of society we must cation and induction programmes. This organisations, including parents and recognise that: also means renewed efforts to support other trade unions, and promote the O Education is a public good not a capacity building for EI unions in devel- plan publicly. commodity. oping countries so that they can negotiate effectively. Campaign to hire, not fire O Education is of both social and Here is a ten-point plan for a global 5. Call on the authorities to work with economic importance; it plays a deal to be implemented nationally education unions to maintain existing key role in building and defend- by negotiations between EI member levels for teachers and support staff, ing democracy; it contributes to unions and their governments. EI rec- and on plans to train and recruit the individual fulfillment and well- ommends that education unions: personnel needed to provide quality being and to community develop- education in safe schools. ment; it is a prime mechanism 6. Reaffirm union policies on accept- for promotion of equality, non- able standards for teacher education. discrimination, and understanding among people from different 7. Support increased teacher education backgrounds. and other training programs, as well as mentoring and induction programs so O Quality education requires qual- as to retain newly recruited personnel. ity teachers whose status is rec- 8. Develop cooperation across educa- ognised as is the principle that tion sectors, supporting the crucial role decent working conditions are of universities and other higher educa- decent learning conditions. tion staff in research and innovation O Education unions should be key as well as teaching, including teacher actors in the development and education, and the need to strengthen implementation of education staffing for early childhood education. policy.Education is a human right. The provision of quality public Keep up the pressure education for all, in developing to achieve the MDGs countries and in emerging and 9. Remind governments and public industrialised economies, is a opinion that keeping on target to moral imperative. achieve the Millennium Development Goals, including Education for All, is When we get these principles off vital to global recovery. the page and into the agenda for 10. Advocate more not less coopera- change as part of a practical pro- tion between North and South. Offi- gramme for recovery our children cial development assistance must be and citizens at large have something increased; multilateral development more inspiring to look forward to than agencies must be strengthened; higher tax bills and painful cuts in teacher education must be reinforced living standards. in countries striving to achieve their MDG targets; unions can help each Fred van Leeuwen is the General Secre- other with capacity building. tary of Education International

Getting the World to Work • MAY 09 • 17 © Allan Gichigi/IRIN Don’t let the crisis go to waste Crunch time Neil Kearney

Neil Kearney on the hypocrisy Such exploitation is the outcome of 20 in search of domestic work because they years of unfettered globalisation. The can’t afford to live on the wages paid in of a financial system in which impact on workers has been disastrous. local industry. Their places are, in turn, a Bangladesh garment worker In the last 10 years real wages in the taken by migrant workers brought in would have to labour 118,000 textile, clothing and footwear industries from China and paid even less. have fallen by 25 per cent while working Wages everywhere in the sector years to earn the annual hours have increased by 25 per cent. are appalling. And not just in the least bonus of a global banker Brands and retailers like Wal-Mart developed countries. In Bulgaria a shoe have been able to announce annual prof- worker now has to work 6.25 hours to Something has gone terribly wrong its of more than Euro10 billion from this buy a kilo of beef, 2.5 hours to buy a liter with our world. After announcing a slavery. And many leading retailers like of cooking oil and 1.5 hours to buy a kilo Euro 21 billion loss in 2008 Merrill Tesco and Marks and Spencer have used of sugar. So, more than 10 hours work a Lynch’s Chief Executive Officer (CEO) the global recession to try to wring fur- day and the rent isn’t even covered. set aside Euro 3 billion in bonuses for ther price cuts from their suppliers, price Governments responding to the senior staff including a staggering Euro cuts that will be paid by workers in the global recession talk about the need for 27 million for himself. This was done form of wage reductions, longer working financial repair, but what we urgently while Merrill Lynch was being sold hours and poorer working conditions. need is social repair – jobs that pay a to Bank of America which itself then Not content with the current floor living wage for a standard work week, posted losses of Euro 31 billion and level wages the industry continues protection from injury and abuse and whose own CEO paid himself Euro 19.5 to seek more for less and now relies the right of every worker to join a union million last year. increasingly on a growing army of and to bargain with their employer for Shortly after being bailed out by migrant workers even more vulnerable decent work. the United States government to the to exploitation. Former textile workers My own thoughts are in line with tune of Euro 35 billion, Bank of America in Romania are flooding WesternE urope someone who said “Never let a crisis go hosted a meeting to co-ordinate oppo- sition to proposals to make trade union recognition easier in the United States. At the meeting the CEO of the company Home Depot said it would be the end of civilisation as we know it if US companies had to deal with unions. This is the same Home Depot that paid its former CEO Euro 195 million when it fired him

after only 11 months in the job. © J L G u tierre z /i s to ckp hoto. c o m The hypocrisy, unfairness and injustice in all of this is evident when we consider that more than 2 million workers, mainly women, slave in Bang- ladesh’s garment industry, sometimes 14 to 16 hours a day for less than Euro 19 a month – Euro 230 a year. One of these workers would have to put in 118,000 years work to earn the annual bonus of a Merrill Lynch CEO. Given their long hours and poverty level wages it isn’t surprising that many of these workers frequently collapse at their sewing machines from a combina- tion of exhaustion and malnutrition.

18 • Getting the World to Work • May 09 to waste”. We’ve had enough of free for all exploitation. We’ve lived the experience of abandoning manufacturing in Super-rich pay a price… favour of dependence on banking and financial services. We’re now suffering the consequences. but it’s hardly enough We should establish a moral and social compass which puts decent work n the day that Wall Street’s biggest crook Bernard Madoff at the heart of action to lead the way out finally put on handcuffs and was packed off to jail for swindling of recession. And that means using this thousands of investors to the tune of at least $50 billion, Forbes crisis to demand a new economic and Magazine published its annual list showing how the world’s social terrain as the strategy for recovery O super rich have “suffered” in the financial havoc that many of them and beyond. To do that we have to helped to create. The 2009 list of global billionaires issued on March 11 was 30 per cent O Increase and better target the numerous stimulus packages now down on 2008, the first fall in six years. It showed that billions of dol- being rolled out putting emphasis lars had been wiped off the personal fortunes of the capitalist elite. The on the retention and creation of number of billionaires worldwide is down to 793 and falling from a high of decent jobs rather than tax cuts for 1,125. Bill Gates, founder of Microsoft, lost around $19 Billion in the crash, the rich and bonuses for the casino but he’s still worth $40Billion and is the world’s richest man. Even Russia’s cowboys of the banking world; richest man Oleg Deripaska, whose personal assets collapsed by $25Bil- lion, can still sleep easy with $3.5Billion in his pockets. O Promote manufacturing industry Many of the super rich were closely involved in the barely legal as a key and essential element of practices on financial markets that led to the credit crunch and unlike all national economies; Madoff, who is likely to spend the rest of his life in prison; most will stay out of jail. Others are still to be caught and brought to account, O Reject wage cuts and worsening conditions as measures that will including Mexican drug trafficker Joaquin Guzman, who is wanted by only further drive recessionary United States police, but is included as a new entrant on the Forbes pressures; list of billionaires. Even if Guzman and others are brought to trial, there is little to cheer O Insist on the payment of a living about as those primarily responsible for the financial crisis get their just wage to every worker as a key desserts. Indeed, the shrinking value of the loot collected by the world’s stimulus for increasing consump- richest and most exclusive community of billionaires does not mean that tion and driving recovery; inequality has narrowed. The crisis has bitten deep into every community across the globe O Put education and training, particularly training for green jobs with millions of ordinary people and their families plunged into unem- at the heart of strategic planning ployment and poverty. This huge economic downturn has hit everyone for recovery; and no tears will be shed for the bankers and speculators who have lost billions. O Demand a central role for workers and trade unions at all levels in tackling the crisis. The influence of unions in the crafting of Germany’s measures to slow and reverse the recession has given those measures a distinctly social flavor aimed at avoiding the destruction of jobs and providing a springboard to take advantage of the very first signs of recovery.

In short, we cannot waste the current crisis but must instead use it to drive real change where decent work providing a living wage will be the cornerstone of the global economy.

This is taken from an address by Neil Kearney, General Secretary of the Inter- national Textile, Garment and Leather Workers’ Federation, at the launch at the European Parliament of the book “Glokers – People, places and ideas about globalised labour” by Silvana Cappuccio. © B. Sandman

Getting the World to Work • MAY 09 • 19 © f t w itt y /i s to ckp hoto. c o m

From Washington to London

Global Unions Focus on their Vision for Jobs and Recovery

20 • Getting the World to Work • MAY 09 © T o m P ag e

The international trade union movement is door-stepping world leaders and making comprehensive demands for change. Global Unions want vigorous action to counter the global economic crisis, but they insist that clearing up the rubble created by destructive neo-liberalism should be only the first step. JOHN EVANS argueS that it is time for a radical change of direction.

lobal Unions are laying siege to meetings of government leaders, finance and labour ministers with a message from workers around the world – create jobs now, regulate markets to make sure this economic calamity never happens again, and make the world a fairer place in whichG to live and work. The priorities set out in the London Declaration, which was presented in April to the Group of Twenty nations’ summit, and the Global Action Plan for Jobs submitted to Rome G8 Social Summit, include the design of a new structure for governance of world trade and the forging of a new global economic model to create jobs and to counter a crisis that has engulfed both the developed and the developing world. The facts speak for themselves. The world economy is contracting at a rate that no one has experienced in their lifetimes – jobs are being lost by the million and years of progress towards the Millen- nium Development Goals of poverty reduction have been wiped out in a few months. Those who are suffering the most are workers, many of them already in precarious work with little social protection, and young people who are joining a jobs market more depressed than it has been for half a century. Groups like the G20 can play a crucial role in driving forward work between advanced and emerging economies to restore worldwide financial stability. But solving a crisis, which is as deep and as devastating as any downturn in living memory, will need more than just fine tuning of market rules if it is to lead to lasting economic recovery. So far the economic stimulus plans put forward by the industrialised country governments fall far short of the 2 per cent of world GDP which Global Unions and international institutions say is needed to raise global demand and pull the world economy out of its nosedive. The measures must be targeted at public investment that can be brought forward quickly and which can do long term good both by helping counter climate change and boosting productivity. Govern- ments must also spend far more on active labour market programmes to keep people in work and help them retrain during the crisis. Unions are convinced the crisis cannot be solved by slashing jobs, reducing living standards and making working people suffer for the mistakes of a system that has utterly failed global ambitions for equality and social justice. The Global Union message, spelled out in the London Declaration presented on these pages is for a people- centred recovery plan that calls for

O A focus on job creation and protection of living standards

O An international system of economic governance rooted in respect for workers’ rights,

Getting the World to Work • MAY 09 • 21 O Tight new rules for controlling services, adoption of a green agenda dialogue and a vision that shifts the global financial markets, and for change and an end to economic balance of policy towards a durable

O Action to invest in a green agenda, policy that puts stringent conditions social agenda aimed at eliminating to build public services and, above on development loans which have the scourge of inequality. all, to combat growing inequality reduced social programmes and Coming out of this crisis we need around the world. deregulated labour markets. a new development model where the The unions say the ILO and work- state is able to balance the extremes of A key demand, and one supported by ers’ groups must be consulted over the markets with social environment and many political leaders – now boosted design of the new multilateral system. public policy objectives. Governments by a change in administration at the Without a workers’ voice at the table must set the limits of the financial White House – is the insistence by it will be impossible to protect union economy by directing investment to unions that labour must be involved in rights and labour standards or to long term goals of creating decent work, discussions for designing a new global ensure workers and their families are building equality in society and ensuring financial architecture. not burdened with paying the price for a fair distribution of the fruits of growth. Global Unions insist that poorer the colossal failures of an under-regu- Achieving that goal will require far more countries in the emerging and lated global financial system. union action at the international level – developing economies must be given The need to engage with trade the global union task is just beginning. the cash they need to build their unions in the important debates economies without being hindered by about resolving the global crisis is key John Evans is General Secretary of the stringent conditions imposed by inter- but this will only happen if govern- Trade Union Advisory Committee to the national finance institutions.L ending ments and International Financial Organisation for Economic Co-opera- programmes to boost economies around Institutions open the door to a new tion and Development the world must not lead to a deteriora- tion of wages and living conditions for workers as they have in the past. Expanding the rights of workers will contribute to global growth not hold back recovery, but conditions being imposed by the International Monetary Fund in exchange for emergency funding go in the wrong direction – they cut wages and purchasing power of the weakest. At a time when private capital flows are receding and when many migrant workers are unable to send home the money that their families depend upon, governments must deliver on commitments to expand official development assistance. Action must also be taken to stop wages from falling in the short term that would push the world into a deflationary spiral. Workers rights should be strengthened not undermined in this crisis. The unions also have a thought-out strategy to avoid a repeat of the financial collapse. An eight point action plan for financial reform featured on these pages offers a real opportunity for lasting and durable reform and an end to the casino of deregulated financial markets with a system where finance supports the real economy and real jobs. But the need for change goes much deeper. There is a risk that when the economy begins to improve we will have a return to the failed policies of the past. There is already ominous talk of “exit strategies” for the state from their interventions in financial markets. For the future, unions want more investment in quality public

22 • Getting the World to Work • May 09 © Manoocher Deghati/IRIN The London Declaration

he world economy is in the fied by the IMF as being at risk.1 And midst of an all-encompassing, the achievement of the Millennium This is an abridged and edited version triple crisis. It began as a finan- Development Goals, the global effort of the London Declaration – the full cial crisis, has transformed to tackle many of the root causes of T text and the detail of the submission is into a global economic crisis of poverty, is in jeopardy. Ten years of available at www.global-unions.org , catastrophic dimensions for working progress in poverty reduction has www.ituc-csi.org and www.tuac.org. people, and is now mutating into a been undone in just a few months. social and political crisis. Unemployment is continuing to The crisis which began in the surge in the first months of 2009 and United States housing market resulted it now appears that the “worst-case” in first the credit market crisis and scenario predicted by the Interna- G20 Leaders must begin a multi- then the employment crisis has tional Labour Organization (ILO) of lateral process together with other evolved into a complex and danger- unemployment increasing by 50 mil- institutions to redraw the governance ous vicious circle, with falling housing lion2 worldwide in 2009 may turn out of the global economy such that social prices and unemployment combining to be over-optimistic. and environmental issues are given to reinforce the collapse of the credit Some 200 million more workers the same level of attention as trade market. This cycle has been replicated could be pushed into extreme poverty, and finance. across industrialised, emerging and mostly in developing and emerging coun- The global trade union movement now developing economies. tries without social safety nets meaning is calling on the leaders of the world’s When the G20 leaders first met that the number of working poor – earn- major nations in the G20 to work with in November 2008 in Washington the ing below $2 US per day for each family other countries and international insti- world was already facing an unprec- member – may rise to 1.4 billion. tutions to develop a five point strategy edented slowdown in growth with Without a radical response by to deal with the crisis and beyond that output falling in the industrialised governments and international insti- to build a fairer and more sustainable countries. The situation is now dra- tutions the unemployment crisis will world economy for future generations. matically worse. be transformed into a social and, ulti- The labour movement calls for: Staggering falls in Gross Domes- mately, political crisis. O A co-ordinated international recov- tic Product (GDP) – the barometer of Furthermore there are serious ery and sustainable growth plan national wealth – were recorded in the risks of derailing the urgent but dif- focused on job creation, public final quarter of 2008. At an annualised ficult political decisions that must be investment and social protection rate GDP shrank by 6 per cent in the G7 taken at the United Nations climate for the most needy economies, the European Union and change meeting in Copenhagen in the countries of the Organisation of December 2009 to avert long-term O Nationalise banks that are insol- Economic Co-operation and Develop- climate catastrophe. vent and establish new rules and ment (OECD) as a whole. This most serious economic machinery of governance to con- These are the worst figures ever crisis since the Great Depression of trol global finance recorded by the OECD. The contagion the 1930s must mark the end of an O Combat inequalities and protect has spread to emerging and develop- ideology of unfettered financial mar- earnings by extending covering economies where growth has kets where self-regulation has been age of collective bargaining and also now stalled and GDP per head is exposed as a fraud and greed has over- strengthen institutional protection falling. The world now stands in deep ridden rational judgement to the detri- for living standards recession. It is the poor who are at ment of the real economy. risk and are suffering most. There has A national and global regulatory been a sharp decline in exports from architecture needs to be built so that developing countries and a drying up financial markets return to their pri- of private cash coming in – much of it mary function: to ensure stable and the money earned by migrant workers cost-effective financing of productive abroad which their families at home investment in the real economy. depend upon. Beyond this there is a need to Some 26 low-income developing establish a new economic order that countries in Africa, Asia, the Americas is economically efficient, environmen- and Eastern Europe have been identi- tally sustainable and socially just.

1 IMF, The Implications of the Global Financial Crisis for Low-Income Countries, 2009 © M. Crozet/ILO 2 ILO Global Employment Trends, 28 January 2009

Getting the World to Work • MAY 09 • 23 programmes that stimulate demand

© R . L ord/ ILO growth in the short term and raise productivity growth in the medium term. Measures should be introduced to support the purchasing power of middle and low income earners including single-earner households, where women most often are the breadwinners.

Putting more money into the pockets and purses of people on low and middle incomes will boost the economy.

Those on low incomes are more likely to spend any extra cash, thus ensuring that it helps beat the recession. This can be done through increasing benefits, direct job creation schemes and changes in tax. Resources should not be wasted on ineffective generalised tax cuts. The IMF has shown that spending on items such as social safety nets and transfers for local government services © Ah ma d Zi a E nte za r/ IRIN O A strategy for “green economy” plan in the US that amounts to almost investments that will move the 3 per cent of GDP per year, the Euro- world economy onto a low-carbon pean Union (EU) country measures growth path and create the condi- announced by the beginning of Febru- tions for international agreement ary 2009 amounted to less than 1 per at the Copenhagen climate summit cent of GDP in the EU. in December 2009

O Changes to global governance of social and economic policy and The G20 must get the practice to make the world economy a fairer place in which to work current “free-riders” and live to join coordinated measures to stimulate I. A Co-ordinated Interna- the world economy. tional Recovery Plan The first priority for the G20 leaders must Global Unions call for a global recovery be to halt the free fall in world growth plan amounting to a least 2 per cent and reverse the falls in employment. of world output. Central banks should Since November 2008 most of the continue to cut interest rates and major economies in the G7 countries undertake quantitative easing of and other have put in place fiscal meas- monetary policy so that government ures to boost growth, but as shown by investment can be financed at a low the IMF these would have double the interest rate cost. impact on growth and jobs if they were Measures must also be targeted coordinated internationally. within countries so as to have the So far this coordination is miss- biggest impact on growth and employing – while the Administration of ment. Governments should bring Barack Obama has agreed a stimulus forward infrastructure investment

24 • Getting the World to Work • MMAYay 09 including education and health will urgently needed. In the health sector, Most developing and some emerg- have almost twice as much impact as for example, the World Health Organi- ing countries are operating harsh fiscal tax cuts during a downturn. sation (WHO) estimates we need an policies that damage their own people, additional 4.2 million jobs worldwide. often through no fault of their own but Eighteen million new teachers because they are pressured by Interna- must be trained just to meet the goal tional Financial Institutions the IFIs to This is the time to invest of quality education for all primary age practice “fiscal discipline” as a condi- children by the year 2015. Millions more tion for loans, even when faced by dete- in people – in their teachers and instructors are needed for riorating external conditions. education and health, vocational education and training for The international community must skills that underpin the real economy be more supportive of expansionary and in care for the very and for retraining of working people as recovery programmes implemented by young and the aged. economies restructure. developing countries. These are neces- In addition, governments must sary to prevent poverty from growing step up efforts to reduce poverty further and to support global demand. As part of a new development model among women, who today constitute governments must enhance the role the majority of the world’s poor. of public services to provide the edu- As industrialized and emerging Harsh conditions attached cation, health, water, sanitation, law, economies strive for recovery there safety and security, fire-fighting and is a risk of leaving the low-income to development loans civil protection the society needs. This countries on the sidelines. However, must be ended and levels is investment that makes a vital contri- that would exacerbate existing ine- bution to the quality of peoples’ lives qualities, throwing millions more into of financial assistance and is a cornerstone of healthy demo- extreme poverty. must be increased. cratic society. It is critical to maintain and With jobs being lost across the enhance official development assist- economy it makes sense to invest in ance (ODA), and to strengthen the role Development assistance budgets to the education and training and transfer of of international and regional develop- Least Developed Countries (LDCs) need workers to new sectors where they are ment banks and agencies. to be maintained with the adoption of binding commitments and a timetable to meet the UN target of 0.7 per cent of GDP. Fiscal measures must be comple- mented by active labour market policies that can help keep workforces together and workers in activity. Policies and programmes should be designed and implemented to reduce the risk of unemployment and wage losses, as well as to provide income support. Companies receiving public assistance need to respect agreements with governments and trade unions to undertake agreed restructuring programmes that include employment and training components. At the ILO’s Global Dialogue Forum on the financial crisis workers, government and employers agreed that “restructuring should be based on dialogue between management, unions and workers’ representatives”.3 This dialogue is at the core of active labour market policies – yet to date only a tiny part of money in the massive bail-out and stimulus plans of governments is directed towards such policies. Any company receiving public money should be obliged to

Students attending an open class in Kabul in 2007. Hun- dreds of schools have been shut owing to attacks on education mostly in southern provinces, according to the ministry of education. © Ahmad Zia Entezar/IRIN

Getting the World to Work • MAY 09 • 25 decent social safety nets that can act as happen, the future agreement needs automatic stabilisers in countries that to be based on a broad and sustainable do not at present have them whatever political consensus of which unions are the level of development. The ILO has a key component. shown that this can be achieved.

III. New rules for Global II. Laying the Foundation for Financial Markets an International Agreement The G20 governments must show on Climate Change leadership when meeting in London to There will never be a better time to deliver genuine reform in the financial launch the “Green New Deal,” called for by the United Nations Environment Programme (UNEP), ILO, ITUC and IOE in their Green Jobs report. consult its workers and put in place Governments should coordi- programmes for jobs and training. nate their actions in order to ease Particular attention must be given the transition towards a low-carbon, to those most affected by the crisis. environmentally-friendly and socially- Governments must put in place labour sustainable economy. market policies that: Such measures are essential if there is to be any prospect of the world O discourage companies from cutting taking the minimum steps necessary to jobs at the first signs of trouble; avert widespread climate disaster – at O focus on groups most affected best, the loss of 5 per cent of global by the crisis – in particular young output “now and forever” in the words people, older and unskilled work- of the Stern report or at worst, the col- ers, temporary and part-time work- lapse of societies warned of in other ers, women and migrants; current models of long-term environmental and economic interactions. O eliminate the gender pay gap; The “Green Jobs” agenda supported O provide income support, in particu- by G8 Labour Minsters in Niigata in 2008 lar through expanded unemploy- provides a series of key principles that ment benefits; need to be supported by governments worldwide. That agenda requires O prevent companies from blocking or slowing down the pay-out of O large-scale investment in energy unemployment benefits; efficiency and renewable energies;

O ensure respect for labour standards O scaling up financial resources for and workers’ employment rights research and development, dif- fusion and deployment of new O promote people-centred invest- technologies, as well as upgrading ment including offering improved skills’ development schemes; and training opportunities to help workers of all ages acquire new skills O The development of just transition strategies, aimed at accompa- O Provide migrant labour with the nying all economic sectors in the same tights as other citizens to transition towards a more sustain- combat the twin scourge of pov- able society. erty and racism. These “transitional” strategies require As global unemployment is surging among others, consultation with most of the world’s workers do not unions, business and civil society, have recourse to unemployment bene- social protection policies and eco- fits when they lose their jobs and most nomic diversification. can rely only on their own savings or The world cannot allow the urgent their family’s support when they reach measures needed to begin to tackle old age. The crisis presents both an obli- climate change to be derailed by the gation and an opportunity to establish crisis. Moving ahead on this agenda in a context of economic and financial crisis can help reach the essential 3 ILO Global Dialogue Forum on the Impact of the ambitious climate agreement this year Financial crisis on Finance Sector Workers 24-25 February 2009 in Copenhagen. In order to make this

26 • Getting the World to Work • MMAYay 09 © M. Crozet/ILO regulatory system. First and foremost under current circumstances, national- 2. End tax and regulatory havens. this means action to restore liquidity isation is the only way to restore con- It’s time to develop and enforce and solvency in the banking system fidence, provide fair risk-sharing and high international standards of and taking measures to ensure that the ensure that taxpayers benefit from tax and banking transparency and national and global regulatory archi- any gains once solvency is restored. exchange of information. Today tecture provides for a banking system Simply getting taxpayers to foot the there are 38 tax havens and bank that delivers stable and cost-effective bill for so-called “toxic debts” or ‘bail- secrecy jurisdictions on the OECD financing for the real economy. Govern- ing out’ bank shareholders will not watch list that do not follow the ments must ensure that a crisis on this work. This would amount to a simple organisation’s guidelines. The G20 scale never happens again. transfer from working people to the Summit must combat the “race to The banking sector contains a world’s wealthiest households. the bottom” between tax regimes large number of insolvent banks, and Governments must correct the and tell these countries: join the democratic deficit that has emerged in rest of the world and implement plans to reshape the post-crisis finan- the standards or we will impose cial landscape. Although the creation sanctions to protect tax bases. of the G20 Working Groups is welcome, Governments must take steps to uncertainty remains about the extent ensure that foreign investment to which parties outside the Financial and capital flows are subject to Stability Forum (FSF) such as trade internationally recognised govern- unions, civil society, the UN, the ILO or ance and transparency standards, any other party not connected to the and co-operate on tax policy and existing financial institutional insider agree international taxation of network, will be able to effectively financial transactions to finance participate in the G20 Process. taxpayer-funded public debt incurred as a result of the crisis. 3. Ensure fair and sustainable This is not the time for access to international finance business as usual. Trade for developing countries. Devel- oping countries should be given unions demand a seat at access to credit lending terms the table. that are commensurate to their needs and capacities. Measures include activating the IMF Special The current crisis has revealed the Drawing Rights (SDRs) programme, limits of the “delegated supervision” accelerating regional currency approach, which prescribes that only cooperation, and re-directing the a small part of the financial system capital flows of current account (for instance, commercial banks) surplus countries, including their requires proper oversight. While the Sovereign Wealth Funds, towards re-regulation of credit rating agencies development objectives. in the United States and in Europe 4. Reform the private banking busi- has already begun, much more needs ness model to prevent asset to be done. bubbles and reduce leverage The global union movement pro- risks. Capital adequacy rules poses an extensive action plan for the – the amount of capital banks international regulation of financial are required to put aside as col- markets: lateral for their lending – must be 1. Clamp down on the “shadow” further tied to the growth of the financial economy. Regulate bank’s holdings in assets and to hedge funds and private equity the degree of risk borne by those groups to ensure a level playing assets. This would discourage field of accountability to inves- banks from exposing themselves tors, transparency and, where to excessive asset risk. It would needed, employer responsibili- also help drive asset allocation ties. Prohibit all forms of credit- towards socially desirable goals related, off-balance sheet trans- and facilitate the control of asset actions, and severely restrict price inflation by central banks. access to complex structured 5. End the Discredited Bonus Cul- products until there is an ade- ture. Bonus and special remunera- quate level of public oversight tion schemes must be regulated and transparency. by law. They must be redesigned

© M. Crozet/ILO Getting the World to Work • MAY 09 • 27 to promote long-term economic, must be heard in the governance social and environmental per- structure of supervisory bodies. In formance and allow companies to addition, a supervisory framework allocate profits to the company’s should provide for the cooperation reserves for reinvestment in proof financial authorities with unions ductive assets. They must reflect in the financial sector: for instance, responsible sales and lending works councils and international practices. For management and framework agreements between traders, cap bonuses in line with Global Union Federations and mul- workers pay, prohibit the cashing tinational companies. in of bonuses or other performance-related schemes within five 8. Build a new financial service and years and introduce claw-back banking landscape that works for provisions. Management should the real economy. Governments not have pension rights that are should encourage the growth of not available to their workers. credit unions, cooperative bank- Shareholders must be prevented ing, mutual insurance, and other from plundering the wealth of community-based and public companies during growth times financial services. Such diversity through dividends and ‘share buy- of services and legal forms will back’ programmes, which leave help build a balanced and robust companies with undercapitalised domestic financial services sector balance sheets during economic that serves the real economy and downturns. Private equity in par- meets the needs of working fami- ticular has put millions of jobs at lies and small and medium sized risk due to its unsustainable, lever- businesses. They should also take aged buy-out takeover model. steps to ensure that there is no future creation of large conglomer- 6. Protect working families against ates that are either ‘too big to fail’, predatory lending. Increase the or which combine different types security of lending for working of business: banking, insurance, families by providing transpar- investment banking. Any restruc- ency of financial contracts turing of the banking sector must (housing finance, credit card, be conducted in line with the high- insurance), access to effective est standards of social dialogue recourse against abusive prac- and be employment-neutral. tices, proximity of services and affordability (ceilings on interest 9. Integrate asset and leverage rates and fees). The remuneration risks in banking prudential rules. and incentive schemes of banks Change capital adequacy rules – and other credit-supplier should the amount of capital banks are be designed to ensure responsible required to put aside as collateral sales and lending practices that for their lending – so that capital serve the interests of customers, reserves requirements are tied not shareholders. to the growth of the bank’s holdings in assets and to the degree of 7. Enhance the accountability, man- risk borne by the assets. This will date and resources of supervisory discourage banks from exposing authorities. Ensure that monitor- themselves to excessive risk. It will ing and supervisory authorities also help drive asset allocation have power to enforce their will toward socially desirable goals and and proper staffing and access to will facilitate central bank control expertise and technology to fulfill of asset price inflation. their tasks. Strengthen supervisory frameworks to include direct chan- 10. Restrict shareholder dividends, nel of communications between share buyback programmes and these regulators and representa- leveraged-loans. Ensure that tives of the employees within profits are allocated to reserves financial institutions. Govern- (as opposed to dividends and buy- ments must end the fragmented backs) in sufficient amounts during approach to financial regulation growth periods in order to with- and introduce supra-national con- stand economic down turns and solidation where needed, notably solvency risks. Tackle the unsus- in Europe. A trade union voice tainable financing model of the

28 • Getting the World to Work • MMAYay 09 © M. Crozet/ILO leverage buy-out schemes which has allowed private equity groups to plunder companies when money was cheap, leaving them with mountain of debts to repay.

IV. Effective and Accountable Global Economic Governance In 1944 the world’s major countries came together to set up new global financial arrangements that would support economic recovery. But we need much more ambitious arrangements today than those agreed at Bretton Woods. Change must go beyond financial regulation. The crisis has revealed serious weaknesses in the mechanisms for the governance of the global economy. There is no decision making structure where interlinked policy domains can be brought together in a coherent “grand global deal”.

If the trade agenda is to move forward, a much stronger social pillar is needed to anticipate and smooth the shift of employment more intense competition will provoke.

The G20 process has some of the elements of this but remains heavily weighted to finance issues. The real economy and the connected issues of decent work and poverty reduction are a marginal feature of its discussions. Furthermore, countries representing nearly half the world’s population are not represented at the table and have no means of influencing its work. There is a need for a new, manage- ably small decision-making forum on economic and social policies at a global level. This must be viable and have legitimacy. A starting point for building such a structure could be the sort of global economic and social governance charter suggested by Chancellor Angela Merkel of Germany following her 5 February meeting with the heads of the OECD, WTO; ILO; IMF and World Bank. This would be a synthesis of the guiding principles of these bodies, and elements such as the OECD multinational enterprises Guidelines, anti-

© M. Crozet/ILO Getting the World to Work • MAY 09 • 29 bribery convention and principles for Social Justice for a Fair Globalization, sion in food prices will make them even corporate governance thus combining adopted by the International Labour more unequal. rules concerning market behaviour Conference in June 2008, to work jointly This is both a result of the mis- with “complementary elements regard- with other organizations in the promo- taken policies of the last few years and ing employment and enterprise devel- tion of decent work. a cause of the credit crisis, as deregu- opment, social protection, humane lated banks and other lenders filled the working conditions, sound labour rela- gap with irresponsible loans. tions and rights at work”4 of the ILO’s V. Make the World a Fairer Instead of steady economic growth Decent Work Agenda. Place for Life and Work built on investment, productivity and the growing prosperity of working Prior to the crisis income inequality people, we have had a series of specula- was rising both within and between tive bubbles that have increased the Unions urge G20 leaders nations. In many countries wages have wealth of the few but are now being to begin the process of stagnated and fallen behind wider paid for by the many. growth in the economy. We need a new growth regime that consultation needed to Wages fell behind wider growth is environmentally sustainable but – build support for the in two-thirds of the wealthiest coun- as was the case during the post-war tries who make up the OECD , and the period until the early 1980s – ensures truly authoritative global shares of wages in national income balanced real wage growth in line with fell in all countries for which there productivity increases. summits of world leaders are data. But it is even worse in many needed to manage our other nations. interdependent world Even before the food price crisis of 2007-2008 and the current financial A fair tax system must economy. crisis, the World Bank noted that in 46 developing countries out of 59 exam- help create a less ined, inequality has increased over unequal society and Governments must start the work, the previous decade. The worsening but it cannot be left to bankers and economic situation, on top of the explo- contribute to growth. finance ministry officials meeting behind closed doors. Trade unions are prepared to engage constructively with this process and should have a seat at the table. Emerging economy and developing country governments must play Global Unions Action Plan a full part in the institutions of a new economic order. In particular the for Financial Reform World Bank, whose focus is developing countries, must give them equal voting 1 Clamp down on the ‘shadow’ financial economy (hedge funds, rights to the industrialised countries. The Bank and IMF must stop impos- private equity, derivatives) ing conditions on developing and 2 End tax and regulatory havens and create new international emerging countries that pushes them in to pro-cyclical policies – where they taxation mechanisms are forced to cut living standards when 3 Ensure fair and sustainable access to international finance they should be expanding. The conditions applied to emer- for developing countries gency loans in countries such as Latvia 4 Reform the private banking business model to prevent asset and Hungary over recent months are bubbles and reduce leverage risks totally unacceptable – they are leading to social disarray and deepening the 5 Control executive shareholder and other bonuses and recession. Instead, the attainment of financial rewards systems decent work and observation of core labour standards must underpin the 6 Protect working families against predatory lending new arrangements. This makes particularly timely 7 Consolidate and enhance the public accountability, mandate the call of the ILO in its Declaration on and resources of supervisory authorities 8 Restructure and diversify the banking sector 4 Statement by the ILO, WTO, IMF, OECD, World Bank and Germany February 5 2009.available at http://www.oecd.org/document/32/0,3343,en_2649 _34487_42124384_1_1_1_1,00.html

30 • Getting the World to Work • MMAYay 09 and trade unions. Wage floors are This is a global crisis used to restrict the degree of wage inequality between the bottom and – it requires global the upper brackets of the earnings cooperation to resolve distribution. At the same time, they are an important instrument for and national measures reducing the power imbalance in taken to protect jobs employment relations between employers and vulnerable groups in must take account of the workforce. Collective bargaining international implications and wage floors must be supported to maintain purchasing power in the for workers in other crisis – governments must not make the same mistake as in the 1930s and countries. allow competitive wage deflation. At the same time G20 leaders must Trade can boost economic growth, also take action to protect pensions. recovery and development, but only The crisis has revealed the danger under the right conditions. Restoring of unlimited investment of workers’ the public legitimacy of the world trad- pensions in the ‘shadow’ financial ing system and concluding the Doha sector. OECD-based pension funds have © M. Crozet/ILO Round of trade negotiations requires declined in value by over USD 3.3 tril- progress on the enforcement of the lion, 20 per cent in real terms, in 2008, protection of fundamental workers’ due to the financial crisis. rights and ensuring that developing In the current crisis where wages are The immediate impact will be felt countries are able to achieve economic being pushed downwards it is crucially most by those nearing retirement age, recovery, employment and future important that floors are put in labour whose pensions fall under unprotected industrial development. markets to stop the risks of a worsen- ‘defined contribution’ schemes, where ing spiral of deflation of earnings and the final level of pension depends on prices. Governments in the industrial- the performance of the pension fund. ised countries must now encourage the Governments must ensure an adequate rebuilding of institutions that help dis- retirement for workers under pre- Conclusion tribute income and wealth more fairly, funded schemes, including ensuring Trade unions at national and inter- as opposed to continuing the deregu- employers take their share of the pen- national level have long been crit- lation of labour markets, dismantling sion risk and funding, and by strength- ics of the lack of balance between workers protection and weakening ening existing government guarantee economic and social institutions. social safety nets. schemes and pension fund investment We have assailed the dominance regulation at large. of unregulated and unmanageable Looking to the longer term, the financial markets over the need for The provision of wage tripartite structures for economic and funding the real economy to provide floors and the extension social consultation and policy planning decent work for all. which provided the springboard for the Now, as the pain of recession is of collective bargaining 30 years of high economic growth and increasingly felt in all communities are important means improving living standards of the post- around the world, we call on all global war period need to be recreated. stakeholders, institutional and gov- to address issues of Involving representatives of ernmental, to work together to create inequality and poverty. working people in the decisions that a new economic world order that puts determine employment and economic people first. The agent for change is They must be supported. growth is not only consistent with the global financial and economic The same applies to democratic principles but makes good crisis and the Global Union movement economic sense. can play a crucial role in charting minimum wages. The alternative neo-liberal model an effective course for recovery and condemns us to repeating the mistakes building a fairer and resilient order for of the 1920s and 1990s and maintaining future generations. Wage floors are currently in use in the levels of spiralling inequality that There will never be confidence almost all advanced economies and resulted in financial instability and that bankers and governments meeting have been in one form or another in ultimately stock market crash. behind closed doors will get it right. continuous use for most of the post- Trade is collapsing, but more due There must be full transparency, disclo- war period. They can either take the to the shrinking of the real economy sure and consultation. Working people form of a national minimum wage rather than protectionism. Neverthe- must be represented at these meetings. or as a system of legally extended less we must avoid the mistakes of Their voice must be heard. The Global industry or region minima agreed the crisis of the 1930s by reverting to Unions are ready to play their part in in a first instance by employers “beggar thy neighbour” policies. building this fairer and greener future.

Getting the World to Work • MAY 09 • 31 Banking on the Future Listening to the Workers to Rebuild Confidence and Public Trust Oliver Roethig, Head of UNI Finance

Workers in every sector have suffered over the past few no longer forcefully encouraged to sell credit cards or mortgages or any other months as the credit-crunch inspired recession has taken hold, financial product to consumers who but one group of workers at the sharp end from the outset cannot afford it, don’t need it or will are those in the finance industry where the roll call of people only lose money. The essence of change is in creat- losing their jobs and livelihoods is mounting every day. ing a culture to ensure that the business is about putting customers first. In other words, short-term targets for No one knows how many more jobs will As a start, companies must open maximum return must be replaced be lost or homes foreclosed or retire- the books and make all relevant infor- with a long-term and sustainable busi- ment funds drained before this crisis mation on restructuring available to ness strategy. ends. For UNI Finance Global Union, workers’ representatives and unions This means that pay and incentive fixing the financial system is the first covering the company in time for systems at all levels should be realistic, step to end the downward spiral and to proper consultation. sustainable, long-term and customer- move towards recovery. In particular, staff outside a mul- oriented. As a matter of principle, The “fix” is not simply a matter of tinational’s home country have to be incentive pay or sales commissions for ensuring government oversight and brought into the picture and that will bank employees should never be more ownership rights come with every loan happen when companies negotiate and than their fixed salary. to banks. Nor is it just about improving sign global agreements that protect regulation, though a complete overhaul core labour standards and social dia- of regulatory bodies is necessary. logue. These agreements set up a com- Rather, oversight and regulation of pany framework for meaningful social the financial industry must be accom- dialogue and industrial relations across panied by a fundamental change in the the globe. way banks do business. It’s time for If a sustainable business strategy banking to become less about a quest for recovery is to work financial regula- for profits and more about a commit- tors and supervisors as well as com- ment to responsible, sustainable finan- panies must improve their risk assess- cial products and advice that focus on ment procedures. They need to take the needs of consumers. account of internal procedures and The finance industry has a major the realities of how work is carried out. task ahead to regain the trust of their Given the degree of insensitivity, igno- customers and, just as importantly, the rance and greed that top bosses have confidence of their employees. shown it’s clear that key issues include Workers are not the ones who how bonuses are paid, how products should pay for the failure of manage- are sold, and the need for training of ment and regulators. UNI opposes staff in regulatory compliance and all compulsory redundancies and understanding of financial products as insists restructuring must be based on well as the identification of new risks dialogue between management and and trends. unions at local, national and interna- Business practices must be tional level. changed, too, so that employees are

32 • Getting the World to Work • MAY 09 Background image © peter memmott/istockphoto.com © B. Marquet/ILO Banking on the Future Listening to the Workers to Rebuild Confidence and Public Trust Oliver Roethig, Head of UNI Finance

Through setting guidelines and a charter – a mission statement – on for those who break the rules. We must rules, financial supervisors and regula- sale of financial products that applies ban off-balance sheet transactions; tors must ensure that these principles explicit, public and verifiable standards trading with financial products that are applied by companies. UNI Finance on how it operates its business and are not listed at a recognised stock is developing a procedure for infor- its work practices. UNI Finance invites exchange; and financial transactions mation gathering and assessing data banks and insurance companies, con- with companies and persons legally in this area by unions. The aim is to sumer associations, governments and registered in tax havens or in countries identify global and regional trends and other stakeholders to develop a model with insufficient financial regulation feed them into risk assessment and charter together. and supervision. financial supervision from the local to Although there has been much talk As governments bail out the bank- the global level. about reform of the financial system ing industry and shore up financial Proper risk assessment can only and political leaders have promised markets, they must ensure that the work if it takes account of the experi- determined and coordinated action, diversity of financial institutions is ences and views of those that actually this has not yet happened and time is maintained. We must beware of the carry out a company’s operations – the running out. Concrete steps for con- danger of a financial crisis that can workforce. taining the crisis and for starting the lead to oligopolistic structures of For that reason UNI Finance is reform of the financial system need to private institutions. The stability of proposing that each company agrees be taken. the industry depends on maintaining with unions and its other stakeholders These begin with more transpar- an array of small, medium and large, ency on the liabilities of banks and local, regional, national and multina- insurance companies. A vicious circle tional and private, public and coopera- of granting concessions, wishful think- tive players. ing and the inevitability of bad news to This is a heavy agenda and UNI follow must be stopped. Finance is coordinating union action In future – and this will resonate globally for a public campaign to find with millions of people who have felt worker and consumer-friendly solu- their precious savings under threat – tions to the crisis. commercial accounts must be insulated This campaign is being taken up from the liabilities of speculation and by UNI members at the national level investment banking. to ensure regulation and legislation A comprehensive framework of that protects workers and consumers. global financial supervision must be Our campaign calls for a bottom-up created to stop regime shopping. There approach to banking and insurance must be strict enforcement of financial practices. We are urging companies regulation. There must be international to implement this and governments agreements that prevent banks from to create legal and regulatory mecha- simply moving their headquarters to nisms to enforce it. the countries with the low levels of Without fundamental change, the regulation. There must be strong coor- underlying problems in the financial dination among regulators and supervi- industry will not be solved. All this is sors at all levels. needed if we want to ensure that the Risky financial practices need to crisis we are facing now is not one we be outlawed with stringent penalties are doomed to repeat.

The financial collapse has highlighted a crisis in the media sector where technological changes and the Internet are creating havoc with media markets. In 2008 tens of thousands of jobs in traditional journalism were lost as newspapers and major broadcast media cut editorial budgets and closed down titles.

Even the iconic titles of world journal- affiliates – Monitoring Change – which ism – the New York Times, the BBC, Le is providing a daily update on industry Monde, The Guardian – have slashed news and highlighting actions by unions jobs as owners have woken up to the at national level to counter cutbacks. reality that market models for mass The reckless actions of Mecom, for media, particularly newspapers, have instance, the newspaper conglomerate promote a new debate about the role of been broken by the Internet which is in Europe made up of 300 titles bought media in democratic society. draining advertising and audience, the after borrowing huge sums of money The big media conglomerates are lifeblood of the industry. Newspapers to finance a buying spree, led unions in still in place and, if anything, getting are no longer a license to print money, Germany, the Netherlands, Norway and stronger as they scoop up smaller enter- and probably never will be again. Denmark to develop a cross-border cam- prises that are no longer viable, but The recession has accelerated the paign. The company was forced to sell the crisis has exposed how journalism, process of decline in traditional media. some of its most valuable acquisitions impoverished by reckless cost-cutting, In the United States the last months to meet debt repayment demands and has been reduced to an agenda of of 2008 saw dramatic changes with there have been cuts across the group sensationalist, populist and celebrity- thousands of jobs lost every week. The leading to protests from journalists and obsessed news. Chicago Tribune Group announced that chief editors that quality journalism has At the heart of the ethics campaign it faced bankruptcy. The New York Times been sacrificed in the process. are efforts to put quality media and sacked newsroom staff for the first time It is this concern about deteriorat- journalism back on the national and in its history. Major titles – the San Fran- ing standards that has also prompted international agenda. With the private cisco Chronicle, the Philadelphia Inquirer the IFJ to launch a new global cam- sector increasingly unable to deliver – looked set to fall. The Christian Science paign, the Ethical Journalism Initiative. pluralism and high standards of media Monitor ended its days as a newspaper The Initiative, backed by a dedi- content, there is widespread concern and moved to the Internet. In all 50,000 cated website (www.ethicaljournalis- about the democratic deficit caused by jobs were cut in the US alone. minitiative.org) and an extensive book, the lack of access by citizens to reliable, In Europe and elsewhere in the To Tell You the Truth, has helped unions useful and accurate information. first months of 2009 the spreading crisis to focus on the need to protect journal- The Ethical Journalism Initiative is took on a global dimension with major ism and news media in the context of promoting new forms of public invest- broadcasters and news companies the current crisis. ment in media to maintain peoples’ announcing cuts. Even in the entertain- The Initiative has been launched access to quality information. It is also ment field, which has a reputation for at special conferences in the Middle calling for a renewal of public service providing much-needed escapism and East and Europe and further launches values in media, a theme media unions light relief in hard times, cuts are on are planned in Africa, Latin America and say should be developed in a conference the agenda with Sony and other media Asia during 2009 and 2010. on strengthening public services across conglomerates announcing cost-cut- The union movement has always the world which is planned by the Coun- ting measures and job losses. had a love-hate relationship with the cil of Global Unions for next year. In response, the International press, but the financial collapse and Federation of Journalists has launched the information revolution inside jour- Aidan White is the General Secretary of the a crisis information service for its nalism provide a fresh opportunity to International Federation of Journalists.

34 • Getting the World to Work • MMAYay 09 Transport Workers Organise for the Future Moving Hearts David Cockroft

With slowing world trade and a collapse in consumer demand and state investment in infrastructure. A space has opened up for the labour transport workers are facing unprecedented challenges, but it movement to argue for decent, sustain- is also a time of opportunity – for union growth and for union able jobs and for core values of solidarity, pressure to shape a recovery that will build a fairer world equality, freedom and fairness. The ITF is working hard for its affiliates to assist them in this double chal- In air transport there have been for example, has announced a reduction lenge or arguing for new ways of doing alarming falls in passenger and cargo in investment in infrastructure mainte- things, and of building membership. markets. In cargo, for instance, the nance by 30 per cent in 2009. Unions must act now in their political, Asia-Pacific region, which has the big- Transport related to tourism is lobbying and communications cam- gest market share, has seen a decline of also set to fall. The United Nations paigns if they are to influence future 28.1 per cent drop in cargo traffic over World Travel Organization (UNWTO) has developments. the last year according to transport reported in the latter half of 2008 that In the search for solutions the ITF is industry figures. Passenger business is global tourism shrank by one per cent promoting education, research, policy also falling. The US airline industry in and prospects for 2009 look bleak. But and communications strategies across November 2008 saw the worst drop in it’s not all gloom, according to UNTWO all sections and in all regions to find comparable monthly passenger figures “tourism can play a critical role in the answers that will work in each area and since January 2002 and passenger num- recovery process as a sector with a to put them into effect. This involves bers at British airports fell last year for unique resurgence capacity.” commissioning research reports, of the first time in 17 years. A snapshot of the effects of the education, lobbying, and communicat- The crisis is also biting in shipping downturn shows there is huge pressure ing a message to the public that lifts the with a drop in bulk sea freight, plum- on jobs and pay. As a result, renewed image of unions and carries a simple meting volumes in the container ship- efforts to organise non-union workers but emphatic message – that transport ping sector and declining freight rates is essential. The role of the union in pro- workers are vital to the global economy. leading to “slashing of capacity and tecting jobs and conditions is likely to The ITF also aims to step up its services” – put simply, jobs are being have new appeal – it’s an opportunity monitoring and gathering of data on job cut and conditions worsening. for growth and organising non-union losses and union strategies to combat One area where there should be workers can also prevent or lessen them, including the setting up of an ITF a glimmer of hope is public transport wage competition between workers. “hotline” and website areas with down- given that effective and cheap public Women are predicted to suffer loadable resources, as well as quick transport becomes even more impor- disproportionately from the economic distribution of economic crisis news. tant in a recession, and is essential to downturn. Recession is expected to At the heart of the strategy under economic recovery. Potentially, this increase the number of unemployed consideration is a “union assistance” could be seen as an opportunity for women by up to 22 million as global job element, geared to support for unions public, sustainable transport. crisis could “worsen sharply” this year, hard hit by the crisis. This could coor- For example, it was reported in according to the International Labor dinate between different unions in the February that commuters in Sydney, Organization. ITF aims to combat this same multi national companies. Australia, were abandoning their cars threat and to ensure union presence in If unions are to answer the global in favour of trains and buses due to areas where women are employed. call for action to build a recovery worthy economic and environmental concerns The ITF and its members are under of the name they have to review their and that experts were predicting the no illusions about the painful effect of work and activities and bring fresh start of a fundamental, long-term shift the crisis, but we recognise there are energy into the process of union-building in travel behaviour. also opportunities for our unions. It is and job protection. Just as important will Even so, the trend is that invest- too much to say that capitalism had be the need for a combative approach to ment in public transport has become been entirely discredited, but the lais- putting workers jobs and their rights at more dependent on private financing sez-faire capitalism of recent decades is the heart of the agenda for recovery. over the past decade, potentially leav- off the table. ing existing essential services, as well Instead we must promote regulation David Cockroft is the General Secretary as funding for improved transport infra- of markets, the promotion of new forms of the International Transport Workers structure, vulnerable. UK’s Network Rail, of socially responsible business practices, Federation

Getting the World to Work • MAY 09 • 35 Global Union Federations

International Transport three years, and regional conferences meet The IFJ works closely with agencies between Congresses. The Executive Board of the United Nations and carries out Workers’ Federation currently has 26 members from 24 countries. media development work to combat social The International Transport EI is committed to promote the right to exclusion in partnership with journalists’ Workers’ Federation (ITF), a education for all persons in the world, with- unions. The Federation has regional offices federation of 650 transport out discrimination, and to this end: in Latin America, Africa, Asia, the Middle unions, has shifted its focus To pursue the establishment and pro- East and Europe. to concentrate closely on tection of open, publicly funded and control- A primary concern for the IFJ is the campaigns, international networking and led educational systems, and academic and safety and security of journalists and media union organising. cultural institutions; staff and the IFJ is the founder, with leading Based on international solidarity since To promote the political, social and media employers, of the International News it was founded in 1896, following cooperation economic conditions that are required for Safety Institute, a specialised NGO dedicated between Dutch and British maritime unions the realization of the right to education in to improving levels of protection for journal- during a strike, the ITF uses its industrially- all nations and for the achievement of equal ists and media staff. based structures to build the union strengths educational opportunities for all. The IFJ is closely associated with cam- of port workers, seafarers, aviation workers, Together with advocacy, another paigns at national, regional and global level road transport and railway workers. focus for EI is solidarity. Development to improve levels of media pluralism and to The ITF’s 60-year old Flag of Conven- cooperation programs of solidarity counter the threat to democratic rights and ience campaign supports the rights of between members in the industrialised secure working conditions posed by exces- seafarers in the world’s oldest globalised and developing countries to support sive media concentration. With other trade industry. Maritime unions’ efforts culmi- leadership training and capacity building. union groups in the media and entertain- nated in 2003 in the first ever internationally A principal focus is the development of ment sector the IFJ works to promote public bargained, worldwide collective agreement. union capacity to work for Education for interest values in media, to defend authors’ In road and rail transport as well as in All in each country. This is combined with rights and to promote decent working condi- ports and airports, the ITF is dealing with an extensive program aimed at the preven- tions in journalism. tion of HIV/AIDS. Programs are currently multinational corporations and developing Contact: IFJ, International Press Centre, underway in 27 countries. policies to build industrial muscle in today’s Résidence Palace, Block C EI also applies the principle of linking boom industry – the logistics sector. Here, as 155 Rue de la Loi local mobilization with global advocacy in in the passenger transport industry, chang- B1040 Brussels, Belgium defense of human and trade union rights. ing employment structures have led the ITF Tel : +32 2 235 2200 Fax : +32 2 235 2219 Teacher union leaders are often targeted to look closely at the profile age and gender E-Mail: [email protected] Web: www.ifj.org of the workforce. either by governments or by armed groups. Led by its affiliated unions, today’s ITF When leaders are attacked, or imprisoned, is responding to globalisation with a planned or member unions repressed, EI launches approach to organising along global trans- Urgent Action Appeals and affiliates UNI Global Union port and supply chains, coupled with strate- respond with waves of protests to the gov- UNI is the Global Union for skills gic campaigns to ensure transport workers’ ernments concerned. and services with 20 million rights are respected the world over.” Contact: Education International, members in 900 unions and four Contact: ITF House, 49-60 Borough Road, 5, Bd du Roi Albert II regional organisations, UNI-Africa, London, SE1 1DR United Kingdom 1210 Brussels, Belgium UNI-Americas, UNI-Asia & Pacific Tel: +44 (0) 20 7403 2733 Tel: +32 2 224 06 11 Fax: +32 2 224 06 06 and UNI-Europa, each of which Fax: +44 (0) 20 7357 7871 Email: [email protected] is campaigning for a real social Email: [email protected] Website: http://www.ei-ie.org dimension to regional economic integration. UNI Global Union is working to build union growth and represents members in International Federation the following sectors: Commerce, Electricity, Education International Finance, Gaming, Graphical, Hair & Beauty, EI is the Global Union for of Journalists IT, Business Services, Industry, Media and teachers and other education ‘There can be no Press Freedom if Journalists Entertainment, Post, Cleaning and Security, workers, with 30 million mem- Exist in Conditions of Corruption, Poverty Telecoms, Tourism and Social Insurance. bers in more than 400 member or Fear’ Each sector is a global union in its own right organisations in 172 countries with action plans aimed at organising, rais- and territories. There are four regional con- The IFJ is the Global Union for ing industry-wide standards and negotiating ferences: EI Europe, including the European journalists. It was first created global agreements with companies. Trade Union Committee on Education; EI Asia in 1926 and relaunched in its To develop issues across sectors, UNI has and Pacific, EI Africa, and EI Latin America. modern form in 1952. Today it three groups which are working to promote Member organizations in North America represents more than 600,000 global equality, to champion youth and to and the Caribbean meet regularly in a fifth journalists in 150 national unions covering bring professionals and managers into unions. regional grouping. 119 countries. Contact: UNI Global Union EI members come from all levels of The IFJ campaigns vigorously for jour- Avenue Reverdil 8-10 education – from pre-school to university. nalists rights. It promotes trade union devel- 1260 Nyon, Switzerland Over 50 percent of members are women, and opment work and insists that professional Tel: (+41 22) 365 21 00 gender equity is mandated by EI statutes in rights can only be defended when there are Fax: (+41 22) 365 21 21 its governance structures. independent, vigorous and representative [email protected] The World Congress bringing together trade unions for journalists. www.union-network.org over a thousand delegates meets every

36 • Getting the World to Work • May 09 International Textile, International Union of Latin America and North America. The regions are autonomous, and pursue inde- Garment and Leather Food, Agricultural, Hotel, pendent activities in close collaboration Workers Federation Restaurant, Catering, with the IUF and its governing bodies. In addition, sub-regional bodies exist to coordi- The International Textile, Tobacco and Allied Workers’ nate activity at that level. Garment and Leather Work- ers Federation is a Global Associations Contact: 8 Rampe du Pont Rouge Union Federation bringing The International Union of Petit Lancy, CH-1213 Geneva, Switzerland together 217 affiliated organ- Food, Agricultural, Hotel, Tel: +41 22 793 22 33 isations in 110 countries. Restaurant, Catering, Fax : +41 22 793 22 38 The aims of the ITGLWF are to draw up Tobacco and Allied Work- [email protected]; www.iuf.org policy guidelines on important issues for ers’ Associations (IUF) is the unions in the sectors and coordinate the Global Union Federation of trade unions The Building and activities of affiliates around the world. It representing workers employed in agricul- acts as a clearing house for information of ture and plantations; the preparation and Woodworkers International relevance to the daily work of unions and manufacture of food and beverages; hotels, The Building and Wood- undertakes solidarity action in support of restaurants and catering services; and all workers International (BWI) unions in the sector. stages of tobacco processing is the Global Union Fed- The ITGLWF runs a programme of The IUF is composed of 348 trade eration for unions covering education and development aid to assist unions in 127 countries with a combined workers in the building, unions in developing countries in organising membership of over 12 million workers. building materials, wood, forestry and relat- workers and it actively lobbies intergovern- From its founding in 1920, international ed areas of work. The BWI has 338 national mental organisations and other relevant labour solidarity has been the IUF´s guiding affiliates in Africa and the Middle East (88), institutions to ensure the interests of work- principle. The IUF builds solidarity at every Asia (75), Europe (119), North America (7), ers in the sectors are taken into account in stage of the food chain, international organ- Latin America and the Caribbean (49) decisions made at international level. ising within transnational companies and With millions of children at work, many The ITGLWF is funded by subscriptions supporting global action to defend human, of them working as labourers in construc- from its affiliated organisations. Educa- democratic, and trade union rights tion, BWI promotes practical solutions to tion and development aid programmes are Strengthening Affiliates. The IUF exists to the child labour crisis through schooling, funded by donor organisations. The Con- strengthen member unions through mutual campaign and organising. In India, the BWI gress is the supreme authority of the ITGLWF support. It does this through: supporting campaign Children Should Learn Not Earn! and meets once every four years to decide affiliates in organising drives and in con- has set up schools for child workers, pulling general policy. It is composed of delegates flicts with employers and governments; thousands out of building sites and getting from affiliated organisations. coordinating and implementing solidarity them into the classroom. The Executive Committee meets once and support actions; sector-wide organising; Similarly, the BWI Gender Empower- a year and is responsible for directing the research and publications; promoting wom- ment programme has helped train thou- activities of the ITGLWF and implementing en’s equality at the workplace, in society sands of women workers in union work to the decisions of the Congress. It provides and in the trade union movement; and trade combat low pay and dangerous work in con- representation on the basis of number of union education programmes struction and wood and forestry. paid-up members by country and currently With 100,000 workers dying every year includes representation from 34 countries. International Recognition and Collective from asbestos related diseases, Health and While the overall priorities and policies Bargaining. No IUF sector is unaffected by Safety is a key concern. BWI- affiliated unions of the ITGLWF are handled at global level, globalisation. The IUF seeks to create an inter- are campaigning for a global ban on asbestos. regional activities and relations are covered national union counterweight to the power of In Latin America, bans have already been by the regional organisations which operate transnational companies. We fight for union implemented in several countries. as an integral part of the ITGLWF, though recognition at every level, including interna- BWI has succeeded in gaining the inclu- each has its own decision-making bodies tional level. In today’s global economy our sion of the ILO core labour standards in sys- and conducts its own activities: FITTVCC/ORI, goal must be internationally negotiated rights tems for certification of wood and forestry the Americas’ regional organisation, is based and standards within global companies products, such as Forestry Stewardship in Venezuela; ITGLWF/ERO, the European Defending Human, Democratic and Trade Council and the Programme for the Endorse- regional organisation, is based in Belgium; Union Rights. The active defence of trade ment of Forest Certification Schemes. In TWARO, the Asian regional organisation is union, human and democratic rights is an Africa this has helped unions to fight pov- based in Japan; the African Regional Consult- essential part of IUF ongoing activity. Defend- erty through sustainable forestry and better ative Council, is based in South Africa. ing these rights is a fundamental class issue. working conditions. Contact: 8 rue Joseph Stevens The IUF gives active support to move- In the defence of human and workers 1000 Brussels, Belgium ments everywhere struggling against oppres- rights BWI helps train promoters of trade Tel: +32 (0) 2 512.26.06 sion. We respond internationally to every union and humans rights and backs legal +32 (0) 2 512.28.33 attack on our affiliates and on the labour actions with global solidarity work. Fax: +32 (0) 2 511.09.04 movement. We are committed to building With more than 10 multinational con- E-Mail: [email protected] alliances with human rights, environmental, struction and wood industry companies consumer and other organisations in civil signed up to global agreements BWI has society who share our objectives. given practical meaning to international social dialogue and the promotion of ILO Regions. IUF regional organisations exist in Conventions. BWI has lobbied the World Africa, Asia/Pacific, the Caribbean, Europe, Bank for the adoption and implementation

Getting the World to Work • MAY 09 • 37 Global Union Federations

of ILO core labour standards as mandatory International Federation of ICEM is working with the world’s major mining to procurement policies. companies to stem the spread of HIV/AIDS by In May 2005 mandatory clauses were Chemical, Energy, Mine & building medical clinics for full community added to World Bank construction contracts General Workers’ Unions access near mining sites in remote regions. on forced labour, child labour, non-discrimi- Contact: 20 Rue Adrien Lachenal nation, and other labour standards. In 2006, The ICEM represents 20 mil- 1207 Geneva, Switzerland the private sector wing of the Bank required lion members through its Tel: +41 22 304 1840 Fax: +41 22 304 1841 its clients to respect core labour standards. 467 Affiliated national trade unions in 132 countries. The Web: www.ICEM.org Contact: BWI, 54 route des Acacias ICEM Sectors are: CH-1227 Carouge GE, Switzerland T:+ 41 22 827 37 77 F:+ 41 22 827 37 70 • Energy: Oil and gas exploration, Public Services International [email protected] www.bwint.org extraction, production including refining and distribution; Electrical, including PSI is a Global Union Federation Nuclear, generation and distribution. for public sector trade unions. PSI represents some 646 International Metalworkers’ • Mining and Quarrying: Exploration, affiliated trade unions in 158 extraction and processing of hard coal countries. Together, these unions organise Federation and lignite, metallic and non-metallic more than 20 million public sector workers, The International Metalwork- minerals, clays, sands, gravels and providing services in central government, ers’ Federation (IMF) repre- gems. Also, diamond and gem sorting, health and social care, municipal and com- sents the collective interests of cutting and polishing, and ornament munity services, and public utilities. 25 million metalworkers from and jewellery manufacture. PSI represents the interests of public over 200 unions in 100 coun- • Chemicals and Bioscience: sector workers. Since 1907, when it was tries. Founded in 1893, the federation covers Research, production and refining of founded, PSI has co-ordinated public sector industries such as steel, non-ferrous metals chemical elements, compounds and struggles for workers’ rights, social and eco- and ore mining, mechanical engineering, products, pharmaceuticals, chemo- nomic justice, and efficient and accessible shipbuilding, automobile, aerospace, electri- technical products, petrochemicals, public services. cal and electronics. agrochemicals, plastics, plastic PSI campaigns to improve the quality The IMF aims to improve metalwork- products and components and artificial of public services. This involves working ers’ wages, working and living conditions fibres. Also, research and manufacture closely with international organisations, and to ensure that metalworkers’ rights are of products and materials resulting national governments, consumer lobbies, respected. To achieve this, the IMF works with from biotechnical methods or genetic community organisations and NGOs. its national affiliates and at a global level to: engineering techniques. PSI solidarity and union development • Build a global metalworkers’ movement, projects help affiliated unions by providing • Pulp and Paper: Production and training and capacity-building support on • Strengthen international solidarity, conversion of pulp, paper, paperboard the ground, especially in countries where • Engage with transnational corporations, and paper packaging. trade unions are fighting for recognition. • Rubber: Research and manufacture PSI presents the public sector case at • Secure workers’ rights, including the the International Labour Organisation and rights of women workers, and of synthetic rubber and composites and fabrication of both natural and other United Nations bodies, the World • Fight for sustainable economic synthetic rubber products. Bank and the regional development banks, development. the International Monetary Fund, the World • Glass, Ceramics, Cement: Research and Trade Organisation, the Organisation for The IMF keeps abreast of developments in manufacture of flat glass, container Economic Co-Operation and Development the metal industry, servicing its member glass, glass fibres, household glass and and many others. unions with research on economic and all other glass products; all types of PSI has active women’s committees at social issues and fighting for trade union pottery, clay and ceramic materials; global, regional and sub-regional levels, and and human rights. Cement, non-metallic minerals, all decision-making structures are based on In addition to organising industrial composites and products. gender parity. and regional conferences, the IMF brings • Environmental Services: Waste PSI has regional bases in Barbados, together trade union representatives to dis- disposal and recovery, pollution Belgium, Brazil, Chile, Colombia, Costa Rica, cuss international union policy on subjects control, recycling, cleaning and the Czech Republic, India, Japan, Lebanon, such as trade and development, organising maintenance, laundry, dry cleaning Singapore, New Zealand, Romania, Russia, the unorganised and health and safety. and hygiene services, porterage and South Africa, Togo, Ukraine and the USA. Since 2002, the IMF has signed a series of security and associated activities. PSI works closely together with ICFTU International Framework Agreements (IFAs) – the International Confederation of Free with transnational companies, establishing Major Activities and programmes: The ICEM Trade Unions – and other union federations, core labour standards as a minimum require- is dedicated to practical union solidarity in particular EI, the Education International, ment for the company and its suppliers. globally. The GUF unites unions in its sectors and the European Federation of Public Serv- ice Unions. Contact: International and provides real life union-building support Metalworkers’ Federation to unions in developing countries through Contact: Public Services International 54bis, route des Acacias, Case Postale 1516, donor-funded projects. The ICEM has taken BP 9, 01211 CH-1227 Geneva, Switzerland the lead globally in a campaign to curb the Ferney-Voltaire Cedex, France Tel: +41 (0) 22 308 5050 escalating use of contract and agency labour Tel: +33 (0)450 40 64 64 Fax: +41 (0) 22 308 5055 by promoting the sustainability and benefits Fax: +33 (0)450 40 73 20 [email protected] www.imfmetal.org of full-time and permanent employment. The [email protected] www.world-psi.org

38 • Getting the World to Work • May 09 International Arts and UNI-MEI, the media and enter- Through consultations with OECD gov- tainment section of UNI Global ernments and experts, TUAC co-ordinates and Entertainment Alliance Union, represents broadcasting represents the views of the trade union move- This Global Union Federation comprising workers, film and theatre techni- ment in the industrialised countries. It also FIM, FIA and UNI-MEI is a truly independ- cians and staff, specific creative coordinates trade union input to the annual ent and representative body, recognised and professional groups (writers, G8 economic summits and employment con- by ITUC and, with respect to its European screenwriters, directors, visual ferences. The main areas of TUAC work are: artists), other arts and entertainment work- activities, by ETUC. Recent activities have • Economic policies in general (including ers, as well as workers in sports and a variety included workshops in Latin America preparation of the trade union state- of related groups. through the regional coordination of IAEA ment for the G8 Economic Summits and (CREA) to promote the rights of workers in Contact: 8-10 avenue Reverdil Employment Conferences); Structural film production. Alliance members are rec- CH – 1260 Nyon, Switzerland adjustment and labour market policies; ognised by WIPO, UNESCO and the ILO and Tel: +41 22 365 2100 Fax: +41 22 365 2121 sustainable development. the Council of Europe and the European E-Mail:[email protected] Union. Additionally, FIM holds observer • Education and training policy; Pension status with the International Organisation and retirement security; The impact of of the Francophonie. globalisation on employment; • Governance for global markets, includ- The International Federation Trade Union Advisory ing implementation of the OECD Guide- of Actors (FIA) was set up in Committee to the lines for Multinational Enterprises and 1952 by the French performers’ OECD relations with non-member coun- union and its sister organisa- OECD tries notably in Central and Eastern tion in the UK and currently rep- The Trade Union Advisory Europe and in Asia. resents more than 100 performers’ unions, Committee to the OECD guilds and professional associations in over (TUAC) is the official voice OECD instruments such as the Guidelines for 75 countries. of the labour movement at the Organisation Multinational Enterprises are not binding in for Cooperation and Development. TUAC a legal sense, but they can be effective as a Contact: Guild House, Upper St Martin’s has played an important role in OECD work tool for defending workers’ rights. A major Lane, London WC2H 9EG for more than 40 years, bringing the voice revision in 2000 added new guidelines (e.g. Tel: +44 20 7379 0900 Fax: +44 20 7379 8260 of more than 60 million workers in the 30 on human rights and anti-corruption) and http://www.fia-actors.com industrialised countries to the international strengthened others (e.g. the environment). policy debate. TUAC’s affiliates consist of 56 The revision also enhanced the implemen- The International Fed- national trade union centres. They finance tation mechanisms of the Guidelines and eration of Musicians TUAC activities, decide on policy and elect extended their reach to business operations (FIM), founded in 1948, TUAC officers. worldwide and sub-contractors. TUAC assists is the only international TUAC was founded in 1948 as a trade unions in raising cases with governmental organisation represent- union advisory committee for the European National Contact Points designed to ensure ing musicians worldwide. It has member Recovery Programme – the Marshall Plan. that the Guidelines are implemented. unions in over 70 countries. TUAC has represented organised labour’s TUAC was also involved from the start in the Contact: 21 bis, rue Victor Massé views to the OECD from the moment of its 2003-2004 revision of the OECD Principles of F-75009 Paris formation in 1961. Corporate Governance in the wake of cor- Tel.: +33 0 145 263 123 Fax: +33 0 145 263 157 With the onset of globalisation and porate scandals, taking part in the Steering [email protected] the debate in the OECD as a potential Group that developed the revised text. http://www.fim-musicians.com regulator, TUAC has stepped up work with Global Union partners to seek to ensure Contact: TUAC, 15 Rue Lapérouse that global markets are balanced by respect 75016 Paris, France of workers’ rights and effective rules gov- t: +33 (0) 1 55 37 37 37 f: +33 (0) 1 47 54 98 28 erning multinationals. [email protected] http://www.tuac.org

Getting the World to Work • MAY 09 • 39 Council of Global Unions

The Council was set up in 2007 bringing together the newly- Chair: Anita Normark formed International Trade Union Confederation, the Vice-chair: Aidan White Global Union Federations and the Trade Union Advisory Co-ordinator: Jim Baker Committee to the OECD (TUAC). The Council of Global Secretary: Guy Ryder Unions aims include promoting trade union membership and advancing common trade union interests worldwide through enhanced Council of Global Unions (CGU) cooperation. Global Union Federations represent workers in the different Bd. Roi Albert II, 5 bte. 1, Room 343 economic sectors, from education, public services, manufacturing to retail B -1210 Brussels, Belgium and the media. Tel: +32(2) 224-0343

ITUC

The International Trade Union Confederation brings together International Trade Union national union centres which are, in turn, composed of Confederation (ITUC) sectoral unions. It focuses on policy matters and on the 5 Boulevard du Roi Albert II defence of trade union rights and represents the interests of Bte 1, 1210 Brussels working people to global organisations including the United Belgium Nations. It plays an especially important role at the tripartite International Tel: +32 (0)2 224 0211 Labour Organisation where it coordinates the Workers’ Group. It mobilises Fax: +32 (0)2 201 5815 its affiliates to intervene with their governments and to participate in [email protected] international actions. It works closely with all of the other Global Unions. www.ituc-csi.org

Design: Mary Schrider, [email protected] Printed by Druk. Hoeilaart, Belgium

40 • Getting the World to Work • May 09