Rotterdam, 15/05/2013
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Dear Friends,
Thank you for inviting me to speak to your congress. I am bringing you the warm and fraternal greetings of the European trade union confederation of whom FNV has been a strong, loyal and constructive member since the beginning, that is forty years ago.
I am pleased to see many friends in the room, Lodewijk de Waal, Agnes Jongerius, Catelene Passchier, who was ETUC Confederal secretary for eight years. And also Wim Kok, who was ETUC president, when I took part in my first ETUC congress, in 1985.
My very first message is to tell you: get stronger and stronger; more than ever we need strong unions at national level, to have a strong European trade union confederation, capable of fighting the difficult fights of today. Your national strength is essential to our European strength. Your involvement in our European trade union movement is mutually beneficial.
The social situation in the European Union has been steadily deteriorating since the beginning of the crisis, although some countries are being hit more severely than others.
I shall not dwell on the analysis of the origin of the crisis. There are several. Banks have been rescued and people have paid for it. Credit was too easy. Many countries lost their industries. And now interest rates levels are making it impossible for countries to get out of the vicious circle of debt, etc…
Two things however are certain; first people who are paying for this crisis are not the one who are at its origin and, second, the economic and political decisions which were and are taken to overcome the crisis have failed.
Let me be clear. ETUC is fully aware that it is important to have sound national accounts, but we strongly oppose the policies implemented to that end, because the result of these policies is soaring unemployment, -reaching unsustainable figures, particularly for young people; recession is prevailing and countries like Spain, Portugal, Cyprus, Greece, Ireland, are caught in a vicious circle of recession, high interest rates and more austerity.
Friends, we have reached high noon on the trust that people put in the European project. The European Trade Union Confederation (ETUC) has always been supportive of the European project primarily because this regional integration model aimed not only at economic integration but was also meant to foster social progress and full employment. We remain convinced that potentially, the European Union is a project worth investing in; it is by far better than a re-nationalisation of our economies, which would not lead to more and better jobs. On the contrary, we would be forced to compete against each other even more.
Friends, we have reached high noon on the trust that people put in the European project. The European Trade Union Confederation (ETUC) has always been supportive of the European project primarily because this regional integration model aimed not only at economic integration but was also meant to foster social progress and full employment. We remain convinced that potentially, the European Union is a project worth investing in; it is by far better than a re-nationalisation of our economies, which would not lead to more and better jobs. On the contrary, we would be forced to compete against each other even more.
Your country, the Netherlands, like other countries, but possibly even more than other countries, is not an isolated island. We need each other, and we depend on each other. That is why the European project is worth supporting; and that is why, together, we must struggle to make it work for people.
Unfortunately, nowadays, the focus on social progress, the focus on the idea that people come first seem to be off the radar of our political leadership.
One year ago we presented our Social Compact for Europe. It was obvious to us -and indeed many others – that the policies chosen to deal with the crisis were dismantling the European social model and undermining popular support.
And indeed this popular support is undermined because the EU’s social foundation is being eroded to vanishing point: Public services have been weakened and so has social protection. And we have not seen any meaningful initiative in favour of growth or employment.
In that very negative context, we welcomed the European Council decision of December 2012 to put the question of Social Europe on the table. We see this as an echo – albeit faint – to our claims.
It is essential to give people priority; social Europe must be top of the agenda. The roadmap on the social dimension of EMU, which will be agreed upon in June, must be more than just a gimmick, more than just a fig leaf hiding the nudity of Social Europe.
Yes, the roadmap must address the social dimension of EMU. We know that a single monetary area requires coordination and convergence which will have a considerable impact on working conditions. But this process must result in a positive social process for all EU countries. We oppose the repatriation of social rights to the national level as some countries would want it.
Friends, current policies threaten our social fabric. These policies must change. The number one priority is to fight unemployment by way of a moratorium on austerity policies and an investment programme for growth and jobs amounting to 1 to 2% of Europe’s GDP. We did not see the implementation of the growth plan as decided in June 2012. We know that the capital of the EIB was increased by 10 bn Euros with leverage effect. But where are the projects? Who will they benefit and how? That amount will in any case be hardly sufficient for growth to pick up again in Europe.
We are told that no public money is available. But public money was there to save the banks. And it was ordinary people who forked out. Working people and their families do not understand why it is considered normal to increase public debts and deficits to save the banks and why no effort is being made to save jobs. And what about mobilising private funds? What about fighting tax evasion or tax avoidance? Every year, one thousand bn Euros escape tax collection. It is time to stop this scandal.
We welcome the attention given to the social dialogue at European level. But, the European dialogue depends on a strong dialogue at the national level. Destroying or even weakening industrial relations at national level goes against EU fundamentals. What happened in Greece is against basic rights as defined by the ILO. In Romania and in Hungary, trade union rights and social dialogue are being flouted. What will the roadmap say about that?
In this context, I would like to congratulate you for signing recently a national tripartite social agreement with employers and government at national level, dealing with employment in the current economic context. We are all aware that solutions can only be sustainable if they are negotiated and are fair. This is why you have signed this agreement. This is why you should continue to be an actor that counts on the national scene.
In this context, I would like to congratulate you for signing recently a national tripartite social agreement with employers and government at national level, dealing with employment in the current economic context. We are all aware that solutions can only be sustainable if they are negotiated and are fair. This is why you have signed this agreement. This is why you should continue to be an actor that counts on the national scene.
ETUC is ready, if invited to do so, to play its part and be more closely involved in defining the broad line of European economic governance. But our involvement must have a real effect, the effect of changing the direction of policies.
It is first at the national level, in the negotiation of recovery programs, that the social dialogue must take place. In many countries, the conditions are just not there, simply because the right to negotiate is being denied. Friends, we cannot accept this. We need your solidarity in opposing attacks on trade union and negotiating rights.
We are fully aware that, in the EMU convergence process, national comparisons of unit labour costs are looked at and discussed at length by finance and employment ministers. And we do know that wages are an important element of unit labour costs. This is a highly sensitive issue, a red line. Wage setting systems are outside EU or EMU competences. The autonomy of social partners must be guaranteed. ETUC says a clear 'No' to any intervention in national industrial relation or wage setting systems.
Social indicators such as unemployment, poverty, inequalities or active labour market policies must be included the economic governance process. The implementation of the youth guarantee should also be included. Social indicators should weigh as much as economic indicators and not just serve as an excuse or occasional option. If indeed social indicators are taken seriously, they will have an influence on macroeconomic policies. If, for instance, unemployment or inequalities increase, then economic policies would have to be changed to fix the problem.
Now, a few words about social and wage dumping: It exists almost everywhere in the EU and it sets people against the EU and against each other. The damage caused by the decisions of the European Court of Justice in 2006, allowing unequal treatment between workers, has not been repaired. So long as the EU allows social dumping, it will be viewed as an instrument working against the people’s interests and as a socially negative factor.
Friends, we are campaigning to influence the future course or Europe for the benefit of workers and citizens. The next weeks are key to us. I call upon you, upon the FNV, to strongly intervene to promote the ETUC demands for a social Europe, as adopted in our last Executive committee.
Friends, we are campaigning to influence the future course or Europe for the benefit of workers and citizens. The next weeks are key to us. I call upon you, upon the FNV, to strongly intervene to promote the ETUC demands for a social Europe, as adopted in our last Executive committee.
I would like to congratulate Ton Heerts, your new president. I am convinced that Corrie will play an important role in the years to come.
I wish your new FNV the very best. I thank you for your active and constructive participation in the past. I am confident about your future. I am confident about our common future.
All the best.