TUAC NEWS
Davos: Dangerous Complacency over Global Economy
Political and business leaders at this week's Davos World Economic Forum meeting are showing few signs of recognising their failure to tackle governance of the global economy, according to the international trade union delegation attending the gathering.
25/01/2008
"Governments have got it badly wrong and are showing dangerous
complacency even as the obvious cracks in the world economy are
widening" said ITUC General Secretary Guy Ryder.
The global union movement, in its statement to the Davos
meeting, has set out a series of urgently-needed measures to
deal with the falling share of national income going to wages
around the world, the need for proper regulation and transparency
in financial markets, stimulating growth in key economies, tackling
unemployment and poverty, and arresting the decline in social
institutions and public services. The four pillars of decent
work - employment, workers' rights, social protection and social
dialogue - are necessary components of the remedy to the current
crisis.
"Governments are faced with a stark choice - business as usual,
with a roller-coaster economy where working people receive few of
the benefits of upswings and bear most of the brunt of the bad
times, or coherent and responsible global cooperation.
Governments have to understand the need for proper financial
regulation, and this time, they need to get it right", said John
Evans, General Secretary of the OECD Trade Union Advisory
Committee.
The union statement highlights inequality as a major factor in the
current instability, with the share of national income going to
wages decreasing continuously over recent decades in the vast
majority of developing and industrial countries.
"The 'golden era' of globalization has made a lucky circle very
rich indeed, but most people are missing out on the benefits.
When workers get a fair share of the pie, economies work better
because they have the purchasing power to simulate growth.
The world desperately needs politicians to show the courage to make
this happen", said Philip Jennings, General Secretary of UNI Global
Union.
Another key message from the unions at Davos is the pressing need
to invest in "green jobs", with the twin aims of tackling climate
change and creating high quality employment. The ITUC is
working with the United Nations Environment Programme and the
International Labour Organisation on an ambitious agenda to achieve
this.
Related weblinks:
- 25/01/2008| Davos 2008: Creating Decent Jobs - Re-regulating Financial Markets Statement of Labour Leaders to the World Economic Forum Annual Meeting 2008 - Davos, Switzerland, 23-27 January 2008
- 23/01/2008 | World labour leaders
at Davos: US interest rate move necessary, but fundamental problems
must be addressed