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BackThis week, the former finance minister Ferdinand Lacina and the three trade union presidents Erich Foglar (ÖGB, Austria), Karl-Petter Thorwaldsson (LO, Sweden) and Antti Palola (STTK, Finland) took stock with regard to their countries 20th anniversary of accession to the EU. Their overall assessment was positive even though the panelists also addressed critical issues, such as the intolerable youth unemployment in Europe.
Finland, Sweden and Austria joined the European Union in 1995. In the premises of the Permanent Representation of Austria to the EU, AK EUROPA and the ÖGB Europabüro, the European Office of the Austrian Trade Union Federation, organised the first “anniversary event”, which focused above all on the prospects of employees. The discussion was hosted by Melitta Aschauer of AK Wien; the assembled guests were welcomed by the Austrian Ambassador to the EU, Walter Grahammer.
In his capacity as a “perpetrator who returned to the scene of the crime”, Ferdinand Lacina, who participated in the negotiations concerning Austria’s accession in the 1990ies, held an introductory keynote speech. He described the change in the Union over the past 20 years from the times of the Socialist Commission President Jacques Delors via the “Fair weather Union” of the first decade of the 21st century up to the Crisis Union, which was unable to tackle the high proportion of youth unemployment and which was unable to find simple and logical solutions for the economic problems. In addition, he was self-deprecating in addressing the flawed construction of the Eurozone, which was lacking in fiscal integration.
Finally, he condemned the asylum policy of the EU and demanded an end to the tax competition and the (publicly supported) tax avoidance by corporations. He also gave short shrift to the allegedly “international competitive battle” in the economy, which was often quoted as one of the reasons for poor pay. He called it “playing with marked cards”, as above all the (local) service sector would suffer under low wages, such as social professions.
Erich Foglar (ÖGB) commented that Austria had clearly benefited from her EU accession and quoted, with a reference to legendary ÖGB President Anton Benya, the positive trade balance as an example. The President said that the representatives on the employee side had been well integrated in the accession negotiations, an involvement, which he was missing very much today. The restructurings, which were triggered by the Accession in Austria, had been well cushioned thanks to the social partners. Erich Foglar too had positive memories of Jacques Delors, who had published a White Paper entitled “Growth, Competitiveness and Employment”. By contrast, the current development of the Union would go in the wrong direction; what was required was a social pillar in addition to the four fundamental freedoms. To underline his point he mentioned a “New Deal”, which the next generation had to conclude. In addition, Foglar depicted a scenario of the future world of employment, in which the classic concept of time-related employment and remuneration respectively would come under pressure. Combined with technologically justified increases in productivity, this would present a significant challenge for the trade unions.
Karl-Petter Thorwaldsson, President of the Swedish Trade Union Confederation LO, spoke about the positive general attitude of the trade unions concerning Sweden’s accession. However, the Union had undergone changes, among other because of the ECJ Laval judgement, which would severely restrict trade unions’ powers. The eastward enlargement, which he welcomed, had, due to the wage differentials, posed challenges to countries such as Sweden. However, Thorwaldsson displayed a fighting attitude (“we will strike back”) in respect of improving the situation of employees in Europe again. He addressed the problem of social dumping, which would often be justified under the disguise of the ‘free movement of people’. LO-Sweden, ÖGB and DGB had started a joint initiative, which would soon deliver concrete proposals.
However, the last 12 months had been very positive for the trade unions, not least because of the introduction of the minimum wage in Germany; he would therefore look optimistically into the future. He criticised the lack of investments in Europe and the reluctance to assume leadership roles. Sweden was soon to introduce a statutory job guarantee for those under 25, to tackle the rampant youth unemployment.
Antti Palola, President of the Finnish Confederation of Salaried Employees STTK, compared Finland’s position in the 1990ies with the situation today. Then, similar to what was happening now, Finland had been in a difficult economic crisis. The Finnish trade unions had not been fully prepared for the accession. An improvement came about due to “study trips” to Brussels, which had been organised by trade unions. Then (as today) the labour representatives had come out in favour of the EU Membership. However, the condition was that wage negotiations, pensions and wage level had to remain untouched.
In Palola’s opinion the EU overall was a success story as it had sustainably secured peace in Europe. However, the Union could be compared to a house, which was in constant need of repair, with youth unemployment currently being the greatest problem.
Further Information:
Pictures of the Event
In his capacity as a “perpetrator who returned to the scene of the crime”, Ferdinand Lacina, who participated in the negotiations concerning Austria’s accession in the 1990ies, held an introductory keynote speech. He described the change in the Union over the past 20 years from the times of the Socialist Commission President Jacques Delors via the “Fair weather Union” of the first decade of the 21st century up to the Crisis Union, which was unable to tackle the high proportion of youth unemployment and which was unable to find simple and logical solutions for the economic problems. In addition, he was self-deprecating in addressing the flawed construction of the Eurozone, which was lacking in fiscal integration.
Finally, he condemned the asylum policy of the EU and demanded an end to the tax competition and the (publicly supported) tax avoidance by corporations. He also gave short shrift to the allegedly “international competitive battle” in the economy, which was often quoted as one of the reasons for poor pay. He called it “playing with marked cards”, as above all the (local) service sector would suffer under low wages, such as social professions.
Erich Foglar (ÖGB) commented that Austria had clearly benefited from her EU accession and quoted, with a reference to legendary ÖGB President Anton Benya, the positive trade balance as an example. The President said that the representatives on the employee side had been well integrated in the accession negotiations, an involvement, which he was missing very much today. The restructurings, which were triggered by the Accession in Austria, had been well cushioned thanks to the social partners. Erich Foglar too had positive memories of Jacques Delors, who had published a White Paper entitled “Growth, Competitiveness and Employment”. By contrast, the current development of the Union would go in the wrong direction; what was required was a social pillar in addition to the four fundamental freedoms. To underline his point he mentioned a “New Deal”, which the next generation had to conclude. In addition, Foglar depicted a scenario of the future world of employment, in which the classic concept of time-related employment and remuneration respectively would come under pressure. Combined with technologically justified increases in productivity, this would present a significant challenge for the trade unions.
Karl-Petter Thorwaldsson, President of the Swedish Trade Union Confederation LO, spoke about the positive general attitude of the trade unions concerning Sweden’s accession. However, the Union had undergone changes, among other because of the ECJ Laval judgement, which would severely restrict trade unions’ powers. The eastward enlargement, which he welcomed, had, due to the wage differentials, posed challenges to countries such as Sweden. However, Thorwaldsson displayed a fighting attitude (“we will strike back”) in respect of improving the situation of employees in Europe again. He addressed the problem of social dumping, which would often be justified under the disguise of the ‘free movement of people’. LO-Sweden, ÖGB and DGB had started a joint initiative, which would soon deliver concrete proposals.
However, the last 12 months had been very positive for the trade unions, not least because of the introduction of the minimum wage in Germany; he would therefore look optimistically into the future. He criticised the lack of investments in Europe and the reluctance to assume leadership roles. Sweden was soon to introduce a statutory job guarantee for those under 25, to tackle the rampant youth unemployment.
Antti Palola, President of the Finnish Confederation of Salaried Employees STTK, compared Finland’s position in the 1990ies with the situation today. Then, similar to what was happening now, Finland had been in a difficult economic crisis. The Finnish trade unions had not been fully prepared for the accession. An improvement came about due to “study trips” to Brussels, which had been organised by trade unions. Then (as today) the labour representatives had come out in favour of the EU Membership. However, the condition was that wage negotiations, pensions and wage level had to remain untouched.
In Palola’s opinion the EU overall was a success story as it had sustainably secured peace in Europe. However, the Union could be compared to a house, which was in constant need of repair, with youth unemployment currently being the greatest problem.
Further Information:
Pictures of the Event