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 1 st 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 3 rd Greece – influencing the austerity package (earlier demos 10 Feb, 24 March) March 4 th 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 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.”