The Financial Economic and Social Crisis Public Services

European Federation of Public Service Unions

250 trade unions

8 million paying members• National and European public

administrations; • Local and Regional Government; • Health and Social Services• Utilities (energy, water, waste)• Public and Private companies in our sectors,

including multinational companies

European Federation Public Service Unions

• All European countries and since Congress June 2009 also in EU Neighbourhood, Eastern partnership countries and Central Asian Republics – similar as PERC

• EPSU member of ETUC, special rules for social dialogue

• EPSU recognised regional organisation of

European Federation Public Service Unions

• Representatives of all countries in EPSU bodies – Executive, Standing Committees

• Mikhail Kuzmenko, Russian health workers an EPSU vice-president

• Financial Assistance

• Russian available

Crisis• Causes are multiple – but underlying is neo-liberal

politics: reliance on markets to deliver welfare and public goods

• EPSU view: Deregulation of Public Services and Public Commons (such as banking system and oversight) and Privatisation (including of public banks) – have removed stability – and made crisis worse; Capitalism is unstable

• Blame bankers (greed, products they did not understand themselves, lobby to remove barriers) but politicians allowed this, failed to act

• And at the same time: climate crisis, energy crisis (oil will become scarce, 1,7 trillion Euros investment needed in energy infrastructure in Europe), food crisis and increase of global inequalities and poverty

Crisis: its Impact• Initial impact on Industry and some services• Governments poured in billions and now clear public

services are used to balance the books – many years of austerity to be expected

• Impact on Women in Public Services – increasing pay gap likely as a result of further privatisation and outsourcing, undoing recent progress

• Low- and middle income earners (nurses, teachers, firefighters, refuse collectors, child care workers, police, prison officers, soldiers…)

Crisis:Unions in action (1)

• March 1st Health, Social Care, Medical and Chemical Industry Workers’ Independent Trade Union of Georgia – Issues: Stop dismissal of workers; Ensure decent

salaries for all medical staff; reform of the health sector to be done with union and societal participation; reverse privatisation based on faulty procedures – when privatisation with the unions, including when meeting investors and based on long-term planning and secure employment; public health system to be financed

Crisis:Unions in action (2)

• March 3rd Greece – influencing the austerity package (earlier demos 10 Feb, 24 March)

• March 4th Portugal – wage freeze proposed till 2013 among others

• Actions in Italy 12 March France 23 March – also continuing industrial action in Ireland and Netherlands; strikes in October and February in Romania

Crisis: Unions in Action (3)

• Bargaining in all countries is difficult

– Pay freezes or cuts (Greece, Hungary, Ireland, Latvia, Estonia, Lithuania Netherlands, Romania, Serbia, UK, Ukraine, Bulgaria)

– No respect for collective agreements (opening up existing agreements: Slovenia, Croatia

– Pension reform: Greece, Hungary, Netherlands, Spain, Bulgaria

– No replacement of public service workers (France only replacing 1 in 3 that go, Greece 1-5, Spain 1 in 10…)

– IMF discussions and packages with B-H, Hungary, Iceland, Latvia, Romania, Serbia, Ukraine; EU procedures on deficits against several countries – European Commission intervention in pay determination in Hungary, Latvia, Romania and Greece

EPSU Strategy (1)

• Tax havens, tax fraud, fair progressive taxation• Long term sustainable public finance – discussion

with Commission, EP– Do not have premature exit, support demand,

public spending not unproductive spending– Joint statement EPSU – CEMR, underlining

sustainable financing requires social just taxation• Invest in public services and infrastructure (including

social infrastructure) • Support shift towards green economy

EPSU Strategy (2)

• Monitoring impact on public services, collective bargaining

• Support unions facing pressure from employers/ state; strong response in case of non-respect of collective agreements;

• Critique on developments – Highlighting problems such as with Public-Private partnerships www.psiru.org

• Support for ETUC, PSI, ITUC policies

EPSU Strategy (3)

• Social dialogue KEY – we are part of solution

• In return for involvement and support longer-term role

• But hard and difficult tasks and choices… – Membership involvement – Preparation: blaming/ shouting not enough/

unions active partners in reform.

EPSU Strategy (4)

• Choices are possible – continue exchange of information – see Balkan network of TU economic experts

• And opportunities: Association Agreements and deep and comprehensive free trade agreements (DCFTA). “Social dialogue, a substantial basis of the European social model, should be adequately introduced as a means to secure the necessary stability to achieve economic reforms, transition to market economies, promote the general development of the society, and improve living standards.”