Fritz Keller is a respected Austrian labour Public Services International, the global federation for public Fighting for public services: better lives, a world Public Services International (PSI) is the Global historian, working in association with the sector trade unions, celebrates its centennial in 2007, for which Union Federation whose affi liated unions Austrian Association for Policy Consulting and it was agreed to commission a history book. represent 20 million public sector trade unionists Development. He wrote Part 1 of this book, taking around the world. It has 640 affi liates in 154 the reader through the history of Public Services But apart from PSI’s history, how and why did municipal countries. International. governments in Europe in the late nineteenth century – often conservative governments – decide to either establish public PSI is an autonomous body, which works in Andreas Höferl coordinated Part 2 of the services or even to take over the ownership of such services from association with other Global Union Federations book. He authored chapters 7, 8, 9 and 16. He is private operators? That is a very relevant question one hundred covering other sectors of the workforce, the an historian and political advisor in Austria. He years later, as their successors, as well as national governments International Trade Union Confederation (ITUC) and his co-authors Werner T. Bauer (chapters and the international fi nancial institutions, have been moving and the Trade Union Advisory Committee at the 11, 13 and 14) , Bela Hollos (chapters 10 and 12), in the opposite direction. What do those very different late OECD (TUAC). Michael D. Huber (chapter 16), Patricia Schnarr nineteenth and late twentieth century experiments tell public (chapters 7 and 9) and Luise Wernisch (chapter sector trade unionists and users of public services about what PSI is an offi cially recognised non-government 15) work for the Austrian Association for Policy they need to do today? organisation for the public sector within the Consulting and Development. Since 2002 they International Labour Organisation and has have published several studies about privatisation The history of PSI looks at the major political events of the consultative status with ECOSOC and observer and liberalisation of public services in the twentieth century, with a view to seeing what kinds of challenges status with other UN bodies such as the UNCTAD European Union (fi nd out more on: these presented to PSI and its affi liated unions. How did PSI and and UNESCO. In addition, PSI is active at a www.politikberatung.or.at). public sector unions respond to the two world wars, to the rise number of UN bodies and special agencies, as well of fascism, the challenges of the cold war, the potential offered as at the regional multilateral development banks, in national independence struggles in the developing countries the OECD and the WTO. emerging from Northern colonialism? How did PSI move from being a federation of European municipal/utility unions, dominated by men, into an organisation with mainly female membership, whose affi liates are mainly in the South? Part 2 describes the history of public services: health and social services, pensions, water and sewerage, waste management, gas and electricity, police, security and culture. Many of these services evolved with the rapid growth of cities in the nineteenth century. Public service provision was so successful that it was adopted very quickly in developed cities, especially in Europe, and remained in place throughout the twentieth century, in spite of massive political and historical changes. After the Second World War, public service provision contributed to unprecedented Fritz Keller and Andreas Höferl economic growth and wealth creation. The recent liberalisation and privatisation of public services is full of examples of how market forces alone fail to secure effi ciency and equity. PSI can be contacted at: Public Services International 45 avenue Voltaire BP9 01211 Ferney-Voltaire Cedex Fritz Keller France Andreas Höferl http://www.world-psi.org Printed in the European Union services: public for Fighting better lives, a better world email: [email protected] Fighting for Public Services Better Lives, a Better World PPSISI 0000 pprere i 119/6/079/6/07 08:06:1608:06:16 PPSISI 0000 pprere iiii 119/6/079/6/07 08:06:1608:06:16 Fighting for Public Services Better Lives, a Better World Fritz Keller and Andreas Höferl Public Services International PPSISI 0000 pprere iiiiii 119/6/079/6/07 08:06:1608:06:16 First published 2007 by Public Services International 45 avenue Voltaire, 01210 Ferney-Voltaire, France www.world-psi.org Copyright © Public Services International 2007 The right of the individual contributors to be identified as the authors of this work has been asserted by them in accordance with the Copyright, Designs and Patents Act 1988. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN-10 0 7453 2706 0 ISBN-13 978 0 7453 2706 8 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. 10 9 8 7 6 5 4 3 2 1 Designed and produced for Public Services International by Chase Publishing Services Ltd, Sidmouth, EX10 9QG, England Printed and bound in the European Union PPSISI 0000 pprere iivv 119/6/079/6/07 08:06:1608:06:16 Contents Preface vii Part One: A Century of the Global Union Federation for Public Service Workers: Public Services International, 1907–2007 Introduction 3 1 The Foundation Age 5 2 The First World War and its Aftermath 13 3 From the Second World War to the Golden Age 23 4 The Golden Age 29 5 The Crisis Returns 41 6 A Third World War or Peace? 53 Part Two: The History of Public Services: Public Services Have Made Life and the World Better Introduction 73 7 Health Services 77 8 Social Services 95 9 Pensions 105 10 Water and Sewage 117 11 Solid Waste Management 129 12 Gas and Electricity 137 13 Police and Security 149 14 Culture 157 15 Public Services and Unions for Women 165 16 A Growing Need for Public Services in the Future 171 PPSISI 0000 pprere v 119/6/079/6/07 08:06:1608:06:16 vi PSI: 100 YEARS OF PUBLIC SERVICE Appendices: Appendix A: Facts About PSI and Key People 179 Appendix B: The Otto Rudolf Schatz Prints 181 Appendix C: The José Venturelli Prints 185 Appendix D: Resource Material Guide 187 Appendix E: The Growth in PSI Membership 191 Index 195 PPSISI 0000 pprere vvii 119/6/079/6/07 08:06:1608:06:16 Preface Public Services International (PSI) is the global federation for public sector trade unions. It will be celebrating its centennial at its congress on 24–28 September 2007 in Vienna, Austria. When planning for the congress started in 2002, it was agreed that PSI should commission a history book. However, it was also agreed that a book that contained only the history of the organisation itself would short-change the organisation: the knowledge of where a union body has come from is important but it was felt that it was also important to know the kinds of struggles that had led to the development of public services, irrespective of the work of PSI. How and why did municipal governments in Europe in the late nineteenth century – often relatively conservative governments – decide either to establish public services for their citizens or to take over the ownership and running of such services from private sector operators? That is a very relevant question 100 years later, after a few decades in which their successors, as well as national governments and intergovernmental bodies such as the World Bank and the International Monetary Fund have been moving in the opposite direction, often ‘selling’ these services to their friends and allies in what are mainly multinational companies. What do those very different late nineteenth- and late twentieth-century experiments tell public sector trade unionists and users of public services about what is possible, what is a threat and what we need to do? So, the decision was made to commission Fritz Keller and Andreas Höferl to attempt to do both of these things. In Part One, Fritz Keller, a respected Austrian labour historian, working in association with the Austrian Association for Policy Consulting and Development, takes us through the history of PSI. His approach has been to look at the major political events of the twentieth century, with a view to seeing what kinds of challenges these presented to PSI and its affiliated unions. How did PSI and public sector unions respond to the two world wars, to the rise of fascism, the challenges of the Cold War, the potential vii PPSISI 0000 pprere vviiii 119/6/079/6/07 08:06:1608:06:16 viii PSI: 100 YEARS OF PUBLIC SERVICE offered in national independence struggles in the developing countries emerging from Northern colonialism? Who were the key players – both personally and organisationally? Who were PSI’s allies and who were its foes? How did it move from being a federation of European municipal/utility unions, completely dominated by men, into an organisation whose membership is now mainly female and whose affiliates are mainly in the South? (Although this latter point should not be used to hide the fact that politically and financially, the reality of power residing in the North has not substantially changed over the century that has passed.) Part Two describes the history of public services worldwide, such as health and social services, pensions, water and sewerage, waste management, gas and electricity, police, security and culture.