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_at_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

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

4
How does sustainable development work?

• Old Capitalism
• Linear relations employer-worker
• Individual exploitation
• New Capitalism
• Circular relations employerworkerstateemployer
  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

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

• Is it more important to be economically rich
  than socially healthy?

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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

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Instrument just developed by HBS

• Evaluation of 3483 CLAs (NL) with respect to the
  status quo

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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 in US
• Flat Austrian Abfertigungsrecht

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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

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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

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