The strategy of trade unions after the crisis

1. The strategy of trade unions after the crisis Prof. Dr. Dr. Andranik Tangian Hans Böckler Foundation, Düsseldorf University of Karlsruheandranik-tangian@boeckler.de

2. Labour flexibility All accompanying expenses, e.g. for social security, are recovered by the state Governmental budget originates from tax-payers (flexibility is an indirect governmental donation to firms from the tax-payers’ money) Redistribution of income, lower demand Overproduction and Crisis A.Tangian. The strategy of trade unions after the crisis. Brussels, ETUI-Seminar

3. Labour mobility Bad career prospects and income insecurity Mobility of the workplace with complications of family life Demographic problems and need for additional immigration Increasing inequality, vanishing middle class Overproduction and Crisis A.Tangian. The strategy of trade unions after the crisis. Brussels, ETUI-Seminar

4. How does sustainable development work? “Old” Capitalism Linear relations: employer-worker Individual exploitation “New” Capitalism Circular relations: employer–worker–state–employer with a money loop through taxes and social security Collective exploitation of all employees by all employers by underpaying, high taxation and inadequate social security A.Tangian. The strategy of trade unions after the crisis. Brussels, ETUI-Seminar

5. Which trends are in collective labour agreements (NL)?

6. Main question Is it more important to be economically rich than socially healthy? A.Tangian. The strategy of trade unions after the crisis. Brussels, ETUI-Seminar

7. What should trade unions do? Struggle for profound policy changes, not only for minor advantages (In NL 333 small security issues do not outbalance 21 flexibility issues!) Weak left parties - politisation of unions Develop operational instruments to keep the situation under control A.Tangian. The strategy of trade unions after the crisis. Brussels, ETUI-Seminar

8. Instrument just developed by HBS Evaluation of 3483 CLAs (NL) with respect to the status quo

9. Reform proposalFlexinsurance Employer's contribution to social security proportional to the flexibility of the contract/risk of becoming unemployed Prototypes: “dismissal taxes” Progressive: Experience rating inUS Flat: Austrian Abfertigungsrecht A.Tangian. The strategy of trade unions after the crisis. Brussels, ETUI-Seminar

10. Reform proposal Workplace tax The worse working conditions (‘social pollution’), the higher the tax paid by the employer Prototypes: Green tax which stimulates enterprises to consider the natural environment French bonus 10% of total earnings upon the termination of temporary contract A.Tangian. The strategy of trade unions after the crisis. Brussels, ETUI-Seminar

11. Reform proposal Basic income A flat income paid by the state to all citizens regardless of their earnings and property status Prototypes Kindergeld in Germany paid to all parents Solidarity pensions in Chili and Switzerland Minimal wage A.Tangian. The strategy of trade unions after the crisis. Brussels, ETUI-Seminar

12. Reform proposal Constraining financial markets Foreign investments mean export of jobs Employers are given a legal instrument for pressure on European governments: ‘If you do not accept our requirements, we move jobs abroad’ Unconstrained financial speculations end up with an economic recession … and we are in crisis now A.Tangian. The strategy of trade unions after the crisis. Brussels, ETUI-Seminar