Prague, 07-08/04/2006
To be checked against delivery
It is with pleasure that I bring the greetings of the ETUC to the Congress of CMKOS.
CMKOS will always have a special place in my affections as I was elected as ETUC General Secretary in Prague in 2003 - a Congress which you hosted impressively.
Since then, of course, the Czech Republic has joined the European Union and has begun a roller coaster adventure. Many things, growth rates in particular and average living standards, have much improved. Other things, particularly growing inequality and insecurity, have not.
None of these features are unique to the Czech Republic. All member states feel the same pressures to varying degrees. But for the new member states, the combination of rapid improvement in some areas with painful adjustments in others is especially acute.
The EU was established as a peace process in Western Europe to repair the ravages of the Second World War; and to make European wars impossible in future.
It went on to become a prosperity process - an initiative which to date has been remarkably successful.
When poor countries have joined the EU, they have closed the gaps rapidly on their richer neighbours. Italy first, and now, spectacularly, Ireland and Spain, have made huge strides. That is our hope, that is our expectation, with the countries, like yours, which joined in 2004.
In the meantime, it is important for everyone to recognise the success of the EU enlargement in 2004.
Many in Western Europe have been worried by the emigration of jobs to poorer countries and the immigration of cheap labour.
Yet, while there are undoubtedly losers among the workers in the old EU, there are winners too, just as there are in the new member states. The new dynamic markets of Central and Eastern Europe are providing attractive opportunities. The balance of trade has actually moved in favour of the older member states. So high growth rates in the East and a boost in exports for the West.
Free movement of labour too is having an increasing and mainly positive effect. The ETUC has opposed a continuation of the transitional arrangements used by some countries to impede free movement arguing that free movement is one of the founding principles of the EC.
Everyone should have the right to work and live in any EU country. This is based on four conditions - equal pay and conditions; respect for national collective bargaining systems; equal access to social security and effective monitoring and enforcement.
If you try to interfere with this right to free movement, you drive migrant work to the black economy. You make it vulnerable to exploitation and second class treatment. You undermine your own systems.
When I was General Secretary of the British TUC, we decided not to ask the British Government for transitional arrangements and the UK has been open to all EU labour. So far it has been a win-win situation with many citizens of the Czech Republic working there on equal terms with the British.
I am pleased that Sweden, Ireland and the UK have now been joined by Spain, Finland and Portugal in ending transitional arrangements.
I must mention that Vladimir Spidla has been working hard to end transitional arrangements and we have been pleased to work with him on this - and many other social and employment questions.
Finally, I would like to thank CMKOS for its support on the proposed Bolkestein Directive. Sustaining this support for the ETUC cannot have been easy as Bolkestein's “country of origin principle” would have had advantages for the new member states.
Yet the principle was fundamentally flawed. The idea that an outside company could go, say, to Germany and observe the laws of its own country, not those of Germany, was a recipe for communal strife and conflict.
Let me give a Western European example. France has tough laws on maximum working time, the UK doesn't. If a British company wins a contract in France, could it, under Bolkestein, have tendered for jobs in France on the basis of long British working hours? We think it could - and the result would have been a major and divisive controversy.
We want a Services Directive - one based on equal treatment of domestic and foreign companies alike but based on the principle of “when in Rome, do as the Romans do”, not on a country of origin principle.
We have been winning this argument with our demonstrations and lobbying in Brussels and Strasbourg helping the European Parliament come down on our side. Now we want the Parliament's decision, improved if possible, implemented.
For that, and many other expressions and acts of support, I thank Milan, Zdenek Malek and the rest of CMKOS for their solidarity and support. I pledge today to reciprocate that support to CMKOS in the days, weeks and years ahead.