Global economy

INTERNATIONAL CONFEDERATION OF FREE TRADE UNIONS (ICFTU)

ICFTU OnLine...
156/101001/ELS

Global Unions call for world economic stimulus

Brussels, October 10, 2001 (ICFTU Online): After the G7 Finance Ministers
meeting in Washington on October 6-7 failed to reach agreement on a
concerted plan of action, Global Unions called today for joint, co-ordinated
and far-reaching economic measures to ensure that the world does not tip yet
further into a global recession.

"Following the terrible events of September 11, it is vital that the
worsening world economic recession, which is one of the results, does not
cause yet more human tragedy," said Bill Jordan, General Secretary of the
International Confederation of Free Trade Unions (ICFTU) today from
Brussels.

The world's biggest economies were experiencing slowing growth even prior to
September 11, and the shock of these events threatens to make the world's
economic health even more precarious. Predictions of global economic growth
have been revised downwards, and there have already been several high
profile bankruptcies and hundreds of thousands of layoffs. The World Bank
announced last week that it expected the number of those living in extreme
poverty to increase by an additional 10 million people, and tens of
thousands more children to die worldwide.

"Obviously interest rates should be cut to offset the loss in business
confidence, but there are deeper issues too, that have to be addressed",
said John Evans, General Secretary of the Trade Union Advisory Committee to
the OECD (TUAC/OECD). "The US, Europe and Japan face synchronised recession,
showing the need for concerted monetary and fiscal action. We need a more
balanced global economy, and we need more of the world to share in the
prosperity and in the responsibility of driving economic growth."

Airline companies, especially in the US, have been asking taxpayers for
massive bailouts, and have received 16 billion dollars at the same time as
they have laid off over a hundred thousand employees. Workers, as yet, have
received nothing but redundancy notices. This must not be the pattern of
government responses in the coming weeks and months. Emergency rescue funds
to companies must be linked to protection of jobs and full negotiations
about restructuring and dismissals.

While US President George W. Bush announced an economic boost last week, the
resources promised fall far short of the scale of the task. John Sweeney,
President of the AFL-CIO, said on October 4 that, "the President's plan
appears certain to need substantially more resources than he proposes. Early
estimates show that his unemployment proposal would affect less than half of
the 360,000 workers already subject to lay off notices, and for too short a
time."

John Evans added, "The immediate reactions of the world's central banks to
the attacks showed that concerted action by public authorities can indeed
shore up confidence and make the difference between panic and stability.
Direct action is essential. Every country's room for manoeuvre is
different, but acting together, rather than apart, will increase what the
world is capable of achieving."

Much of the emphasis in a world-wide recovery package must be on attacking
poverty. Debt relief, market access, democracy and human rights are
essential to the fight against poverty. Aid levels must be raised to the
agreed UN target of 0.7% of GNP. The recovery effort must provide
large-scale increases in funds for vocational training, incomes for the
unemployed, infrastructure investments - i.e., investments in
transportation, communications, water systems, public health care, school
construction and modernisation, and environmental clean-up - all of which
will increase job opportunities today and productive capacity tomorrow.

Bill Jordan concluded, "We need global policies and institutions that
promote real growth that assists ordinary workers and that deal with
poverty. The Global Unions Day of Action on November 9, 'Making
Globalisation work for People', is going to hammer this point home, because
this crisis should have made that obvious to us all."

The ICFTU represents more than 156 millions workers in 221 affiliated
organisation in 148 countries and territories. ICFTU is also member of
Global Unions: http://www.global-unions.org

For more information, please contact the ICFTU Press Department on +32 2 224
0232 or +32 476 62 10 18. (www.icftu.org)