We are witnessing the worst global
recession for generations. The impact of global market failure and
financial crisis is costing millions of jobs and livelihoods, and
jeopardizes the future of working families everywhere.
The current global economic crisis
demonstrates that 30 years of ideologically driven free market
policies followed by most domestic governments, and advocated by
most global institutions, has not only eroded the standard of
living of working people and undermined workers’ rights, it has
undermined the ability of governments and global institutions to
regulate economic activity properly and made it more difficult to
cope with this crisis.
Hundreds of billions of pounds and
dollars of support are being provided to financial institutions
which pay out billions of dollars of bonuses to top executives
while tens of thousands of lower level bank employees find
themselves out of a job. Under the current reprivatisation schemes
being floated by our various governments, taxpayers will absorb the
toxic debt of financial institutions, leaving the profits to the
private sector that created the current crisis.
The governments of the U.S. and Canada
are attempting to provide some financial support to the
manufacturing sector, particularly the auto companies and their
suppliers. In contrast, the United Kingdom stands idly by with
hundreds of thousands of manufacturing jobs at risk of being
permanently lost.
Governments around the world must step
forward to provide meaningful economic stimulus to mitigate the
impact of what is rapidly becoming a devastating worldwide
recession. They must also begin to reestablish their role in
regulating economic activity in a manner that ensures that the
interests of working people are properly addressed.
Workers Uniting brings together two of
the most powerful trade unions in the western world representing
between us over three million workers in Britain, Ireland, the
United States and Canada. Both of our unions have independently
argued for immediate and medium term strategies to address the
consequences of the financial mismanagement exercised over recent
years by the private sector.
This paper builds on those arguments
and our shared values of fairness and equality to provide a
strategic and sustainable recovery plan that incorporates the
following principles:
1) Policies must be immediately
implemented by domestic governments to encourage job retention and
job creation in the manufacturing sectors, and policies should be
implemented that will facilitate sustainable growth and the
transition to a greener economy.
2) Full employment, retirement
security, fair wages and decent working conditions must be
fundamental objectives of domestic economic policy and pension
regulation, and governments should ensure international agreements
do not undermine these objectives.
3) Financial markets, financial
institutions and tax systems must be regulated in ways that
increase transparency to the public, make it more difficult for
corporations to avoid taxes by moving capital to lowtax
jurisdictions, reduce the risk of damaging speculative “bubbles” in
financial markets and limit the use of excess and unjustifiable
executive compensation. Furthermore, financial markets should be
regulated in a manner that ensures they serve the needs of the
productive economy and the public at large.
4) Freedom of association and the
right of workers to organize and engage in collective bargaining
should be promoted throughout the world and these freedoms and
rights should be supported by domestic legislation and regulatory
regimes. Furthermore, governments should ensure international
agreements do not undermine these freedoms and rights.
5) Effective and sustainable public
services should be available to the citizens of all countries,
including but not limited to: health care, education, housing and
childcare.
6) Policies should be implemented to
reduce inequality among nations, citizens, peoples, genders and
classes through fair and progressive tax systems, effective public
institutions and regulation, and the promotion of human rights.
7) The objectives of full employment,
promotion of human rights and labour rights, and preservation of
our ecosystems should be included as part of the mandate of
international trade agreements and global institutions such as the
World Bank, the World Trade Organization and the International
Monetary Fund. Furthermore, these institutions should be subject to
public scrutiny regarding their performance in fulfilling that part
of their mandate.
8) Financial markets, financial
institutions and tax systems should be regulated in ways that
increase transparency to the public, make it more difficult for
corporations to avoid taxes by moving capital to lowtax
jurisdictions, reduce the risk of damaging speculative “bubbles” in
financial markets and limit the use of excess and unjustifiable
executive compensation. Furthermore, financial markets should be
regulated in a manner that ensures they serve the needs of
the productive economy and the public at large.