Should we call the recent G20 held in London just one more failure by politicians?

As we look forward to the G8 meeting, the question is provocative but must be asked.

At the meeting, Gordon Brown announced that another five thousand billion dollars will be injected into the world economy by the big 20.

The announcement was made with much fanfare. However the ostensibly new money announced British Prime Minister has, with a few possible exceptions, all been previously decided in the budgets by G20 nations.

No more money is to be expected.

More fundamentally, all these funds represent an added economic value that is yet to be created. In other words, there is no money available now, waiting to be used in the vaults of the various G20 nation Central Banks.

That announced money represents new production, extra labour and working hours yet to be demanded of the world’s workers.

As part of the new measures, the International Monetary Fund will get an additional one thousand billion US dollars, around three times what it has today, to be used to rescue nations on the brink of bankruptcy.

This measure is good, but only if accompanied by a reform of the Fund to avoid the same problems that have brought us to the situation we are in today. That means placing the control of the fund into the hands of democratically elected bodies, unlike today, where it is largely controlled by the Ministers of Finance of the world’s richest nations.

One welcome measure from the G20 was the formulation of three special lists for the so called "Fiscal Paradises", and highlighting nations such as Switzerland which have facilitated the lack of monetary transparency that contributed to the crisis. But following dialogue, the majority of Western nations have been able to have themselves re-classed as clean. Disturbingly, places like London and others with close relationships with the US and Europe were not subject scrutiny.

It is crucial that strong new legislations are passed by all nations and implemented right across the world’s financial systems. This includes banks and insurance companies everywhere to prevent private individuals and institutions from using the system to wash their money.

It is good to attack the "paradises" however fiscal evasion must first be combated at home, not when the money has already left the country.

The failure of the G20 to deal with this issue is what makes the most recent meeting one for politicians but not for outcomes.

To summarize let me quote somebody known as the Pagliazzo of the world, Berlusconi:

"Not matter what we decide in London, the G8 later in Italy will have to take all the real decisions."

In openly pointing out that even the G20 means nothing in comparison to the G8 and other secret informal meetings between world Finance Ministers, Berlusconi’s words further emphasise the urgent need for reform of world finance systems and institutions.

Without a democratic global economy, we will see our mistakes repeated, and as today, it will be the workers who pay.

 Marcello Malentacchi

HUNGARY: Workers will take action on April 18^th in response to the severe impacts of the global financial crisis in Hungary.

Nearly 6,400 workers from 57 companies have lost their jobs in recent months.

Unions including IMF affiliate the Hungarian Metalworkers Federation, are protesting measures proposed by the minority government which will negatively impact tax, pension and social welfare systems in Hungary.

Prime Minister Gordon Bajnai took office on April 15 after the previous Prime Minister resigned in late March.

Unions are demanding the new Prime Minister revoke the proposed taxation package and take into account employees’ and pensioners’ welfare, not only economic interests.

European Metalworkers Federation has also expressed their full solidarity and support with Hungarian workers in the lead up to the demonstration.  

AUSTRALIA: Building on the recently adopted steel climate change policy (Tokyo 2008) the International Metalworkers’ Federation’s steel department held its second climate change meeting on March 24-25 in the lead up to Copenhagen 2009.

The most widely known global agreement trying to cut global emissions, Kyoto is approaching the end of its life and in Copenhagen, Denmark, governments will try to make a new deal on emission cuts between 2012 and 2020.

An international approach to tackling climate change is essential and steel unions have called for an international response that avoids unfair trade conditions and guarantees a level playing field. The argument that the world faces a serious threat from environmental degradation is no longer open to serious challenge.

At the IMF meeting in Australia, steel unions from 5 regions held discussions with business leaders, governmental ministers, trade union partners, think tanks and environmental NGO’s in order to build partnerships and further develop the IMF’s approach on this vitally important issue. Representatives from the Chinese All Federation of Trade Unions (ACFTU) were also invited to attend but unfortunately were unable to participate.

The outcomes of the meeting were as follows:

• IMF will promote a metalworkers’ position in the International arena including Copenhagen 2009.
• IMF will produce some practical materials for distribution amongst affiliates.
• The IMF Steel section will present a resolution on this issue to the IMF Congress in May 2009.
• IMF will continue to build relationships with other interested parties.
• IMF will develop strategies to engage with national and international agencies such as UNFCCC, OECD, ILO, etc.

BULGARIA:  Last week metalworkers of Bulgaria at the steel plant,  Kremikovtzi, renewed massive protest rallies in a bid to attract the attention of the government to their deplorable situation and force the government to find a solution for its future.

The IMF-affiliated, Federation of Metallurgy – CL Podkrepa  and  Metalicy, representing workers of the plant accused the Bulgarian authorities of failing to act, and demanded the government pay out arrears in wages (since last November) to the Kremikovtzi workers as well as provide compensations to 2000 workers who will lose their jobs by the end of June.

The Executive Director of the Kremikovtzi plant, Plamen Stoyanov, denied earlier rumours about the Brazilian company CSN, the only bidder, supposedly not interested any more in the acquisition of the insolvent plant. However, unions are demanding from the government to render more active support and commitment in the search for a new buyer of the plant.

The state gas monopoly, Bulgargaz, announced earlier that it would stop the gas supply to the plant because of unpaid debts. Following the workers’ rallies, the company declared it would delay the gas stoppage for another week.

The IMF fully supports our Bulgarian colleagues. In a letter sent to the Bulgarian Minister of Economy and Energy, the IMF demanded that the government "take all necessary measures to avert closure of the plant and ensure its normal operation for the benefit of the workers concerned, their families and the country as a whole."

INDIA: Working in the one of the world’s most hazardous industries is challenging enough, but when faced with employers who show no regard for human rights, its about as tough as life can get. Hope and optimism is not something you would naturally associate with this industry but that’s what the workers at the Alang/ Sosiya shipbreaking yard in India have provided for workers worldwide after a recent successful strike.

On March 23-24 more than 20,000 shipbreaking workers under the leadership of the newly formed and registered trade union,  Alang Sosiya Ship Recycling and General Workers Association, downed tools in protest over an attempt by employers and contractors to reduce the workers pay from Rs330 (4.00 €) to Rs 225 ( 3.38 €) a day.

Shipyard employers have used the recent global economic crisis as a way to try and further exploit workers, regardless of the fact that there has been an increase in workload.

During the strike, employers attempted to obtain an injunction to prevent union officials from entering the shipbreaking yards as part of a wider attempt to bust the union, however Bro V.V.Rane, general secretary of the new union, was able to maintain solidarity amongst the workers and force the employers and contractors to concede to worker demands, delivering an important victory for the newly formed union.

The struggle highlights employers’ increasing attempts to prevent union building in Alang. The International Metalworkers’ Federation and its affiliates stand shoulder to shoulder with the workers in Alang and will ensure that any future attempts meet the strongest possible response.

GENEVA: On the threshold of IMF’s 32nd World Congress in Gothenburg, Sweden, Metal World made a special report dedicated to the IMF’s history at the end of the 20th century and beginning of the 21st. The report covers the last twenty years from 1989 to 2009, the time when the Soviet block collapsed and new independent unions joined the fold of the IMF, and South Africa dismantled the shameful system of apartheid.
Read the full report on-line or download the pdf version from the IMF website.

Unions in Sweden, the nation with traditionally a high unionisation rate face new challenges with the new generation of workers. How can unions cope with the situation when less workers are joining unions and how do unions renew themselves to be stronger? Swedish unions answer these and other questions in ‘Swedish unions revive recruitment efforts’.

And finally, Metal World profiles the new leader of the National Union of Metalworkers of South Africa (NUMSA), Irvin Jim elected in October 2008 as NUMSA General Secretary, who talks about new and old challenges his union is confronting.

NUMSA leadership has never shied away from criticizing South Africa democratic government led by African National Congress (ANC), the ruling majority party, and Irvin is no different. He believes some of the ANC’s strategic decisions were erroneous. While he does not deny the victory the democratic breakthrough represents, Irvin believes ANC government needs to take responsibility for South Africa’s growing inequality and the fact that infrastructure, education, water resources and health systems remain unfairly distributed across the societies of South Africa.

In 1995 South Africa was granted membership in the World Trade Organization, and according to Irvin it cost South Africans many jobs as liberalization of trade destroyed industries. "Under the ANC government, exchange control was removed with the hope that the capital will come and make investments. Instead the capital took money from the country and invested it in stock exchange speculations and no real investment happened in productive sectors of the economy," says Irvin.

The fall of apartheid removed legal differences between the rights enjoyed by white and black South Africans, but "access to those rights for people is determined by their economic position in our society," says Irvin.

As South Africa grapples with the impact of the global financial crisis, Irvin is also critical of the double standards of government and business and their "casino" attitude to the economy. For years NUMSA has been calling for nationalisation in the interest of South African people, to no avail. However, now when the banks are in crisis, government and business have been willing to nationalise debts. Meanwhile profits remain private. Opposing this approach and calling for new solutions will be a priority for NUMSA under Irvin’s leadership, along with other long-standing campaigns including opposition to the spread of precarious jobs and the AIDS pandemic.

Maintaining continuity following recent changes with NUMSA is also important to Irvin. He points out that the new leadership elected at the recent National Congress are all long time NUMSA members and officials.

Emphasising statements made at Congress, Irvin says, "our responsibility is that our union should stay united and consolidated."

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Text and photo / Alex Ivanou

In 1991, on only his second day at work, Irvin Jim's fellow workers at Firestone Tyres nominated him as their union representative. Irvin laughs as he recounts the shock of company management when a general meeting was called to elect the young rubber worker. Aged only 23, Irvin turned down the nomination that day but within three months had taken on the role of shop steward, and was well on the path to becoming one of South Africa's most senior trade unionists. In October 2008, Irvin was elected General Secretary at the Congress of the National Union of Metalworkers of South Africa (NUMSA).

Despite his smiling manner, Irvin immediately conveys the impression of a person who has his own views and convictions and is ready to defend them. Irvin's rapid ascension within the union was assisted by the skills he gained as a student activist in South Africa's youth movement in the late 1980's. Following the fall of the apartheid regime in 1994, Irvin became the NUMSA regional chairperson for the Eastern Cape region. He was at that time the youngest member of the NUMSA Central Committee and remained Regional Secretary until his election to the leadership role last year.

The fight against the apartheid regime has been a central theme for both Irvin and the union he now heads. NUMSA was formed in 1987 as a result of a merger between four unions to unite different sectors into a single metalworkers' union. The IMF played a key role in the creation of the union and continues to work closely with NUMSA, which represents southern Africa at IMF Executive committee meetings.

"Politically and economically we've been a very fortunate country, a country that succeeded to win solidarity with the people of the globe," says Irvin. "The biggest challenge now is to ensure that the very same globe appreciates that the legacy of apartheid has not been dealt with."

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Organizing women and bringing them into leadership positions is central to the IMF Action Program. In 2005, the Congress voted to expand the Executive to 25 seats; six are reserved for women and are to be equally distributed among the regions. The plan also set a 20 percent target for women’s participation in the Central Committee and Congress, and called for holding a Women’s Conference in conjunction with the Congress. Regional structures such as the Latin American Gender Council, East Asian Women’s Committee and the Macedonian Women’s Section have been set up. In Brazil and the Dominican Republic, the increasing role of women is changing union cultures. The ILO recently recognized the Canadian Auto Workers’ (CAW) historic struggle for gender equality. In some cases, progress is directly linked to the crucial task of organizing more women. Women are the predominant workers in EPZs the world over, and in Indonesia, the IMF affiliates’ success in EPZ organizing are largely due to strong advances in bringing women into leadership positions.

Global labor at a turning point

Right now, the world is mired in the most serious economic downturn since the Great Depression of the 1930s. As the IMF repeatedly underlined, neo-liberalism was a disaster waiting to happen. Deregulation, privatization, weakening of social safety nets, neglect of public investment, and hostility to worker and human rights by many national governments, the Bretton Woods institutions, and the World Trade Organization (WTO), led to the stagnation of living standards for the popular classes and enormous riches for a few. The basic elements of the crisis were growing indebtedness and unregulated financial speculation in a now global financial market. The current crisis is a disaster for the world’s poor and working people. Declining production, even when mergers and bankruptcies can be avoided, will bring unemployment and loss of incomes to billions of workers. Union membership is bound to decline in the short run and will have to be rebuilt.

Nevertheless, there is a bright side to the debacle. For decades, unions swam against the stream, but now the failure of neo-liberalism is obvious to all but those who will not learn. Leaders of banks and industries – the former cheer-leaders for neo-liberal "reforms" – now beg for government hand-outs. Deficit spending is advocated even by conservative experts and public ownership is on the rise.

This is a great opportunity for the IMF, international labor, and its progressive allies. Although the current crisis is economic, its roots are political. Discredited policies can be reversed by a new push for respect of core labor standards not only nationally but in world trade, by demanding the rebuilding of social safety nets, stricter environmental safeguards (including a switch to clean energies), re-regulation of finance and industries, and effective economic intervention by government that will counteract depression even as it improves infrastructures and promotes sustainable industries and services.

The future IMF must seize this opportunity and meet these challenges.

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The IMF also engages TNC’s through its sectoral activities. These have a long history in the IMF, but there have been innovations in recent years: more emphasis has been placed on regional activities, and World Union Committees have been established in SKF, Volkswagen and Mercedes Benz. Although the latter are financed by the enterprises, the IMF is represented and there is a well-defined representational structure, as well as regular schedules of meetings. Although, the IMF continues to organize its own World Company Councils, it also works at building smaller Action Groups in the auto and steel sectors. These bodies meet more frequently than the Councils to ensure improved international information exchange and cooperation. IMF activities on TNCs continue to make efforts to balance and coordinate company and sector level approaches at the global and regional levels. For example, the World Auto Council also includes meetings of TNC networks.

Another growing area of the IMF’s work is solidarity and union building campaigns. These range from the IMF encouraging affiliates to write protest letters to full-scale global campaigns. Campaigns are often triggered by countries or enterprises that violate internationally recognized workers’ rights. South Korea, for example, emerged from military rule in the late 1980’s, but the struggle for union recognition, the freeing of frequently imprisoned labor leaders, and new labor laws that are based on international standards continues. Since 1989, the IMF and its affiliates have organized several international days of action and lodged complaints to the ILO. Belarus, Turkey and Malaysia have also been repeated targets of IMF solidarity activities. In Indonesia, the IMF expelled its Suharto era affiliate and supported a new independent union (FSPMI) as well as Lomenik-SBSI. Starting in 2006, the IMF was involved in a major campaign in support of its Mexican mining affiliate, SNTMMSRM. The government had attacked SNTMMSRM, removed its legally elected general secretary, and pursued him with fraudulent charges, forcing him to flee the country. Since its launch, the IMF’s international campaign with the strong support of its affiliates, continues to fight for union autonomy in Mexico and continues to support the efforts of the miners’ union to win justice and fight political persecution.

But governments are not the only culprits. TNCs frequently use substandard labor legislation or corrupt officials to violate workers’ rights and suppress unions. The IMF has had to campaign against Honda Prospect Motor in Indonesia, and Toyota in the Philippines. In other cases, IMF affiliates took the lead in launching activities, examples are the fight for decent contracts and union recognition at the Brazil based steel maker Gerdau, the campaign to get the Australian manufacturer of asbestos products, James Hardie, to compensate asbestos victims, and the current fight against Australian hearing device manufacturer, Cochlear’s, union busting campaign. The IMF-website, launched in 1999, has been a key tool in virtually all of these campaigns.

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