The Fin ancial Economic and Social Crisis Public Services

1. The Financial Economic and Social Crisis Public Services

2. 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

3. 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

4. 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

5. 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

6. 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…)

7. 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

8. Crisis:Unions in action (2) • March 3rdGreece – influencing the austerity package (earlier demos 10 Feb, 24 March) • March 4thPortugal – 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

9. 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

10. 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

11. 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

12. 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.

13. 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.”