“The programme that has been imposed on the Greeks is so dramatic that it’s impossible for the trade unions not to react”, says Bernadette Ségol. “When we have 30 per cent cuts in wages, hundreds of thousands of people being sacked and privatisation imposed in the worst possible financial conditions, you can’t expect trade unions to sit back and relax.”
Since the Greek economy moved towards meltdown, the unions have been under fire for resisting the
eye-wateringly harsh austerity programme imposed on the country. Ségol, who stepped into John Monks’ shoes as leader of the European Trade Union Confederation in the summer, just as the storm gathered force, is unrepentant.
“Our Greek colleagues know very well that their country is in a difficult position and that solutions must be found. But this is not the right solution and there is no light at the end of the tunnel – and on that we support them. There is no growth – and people are angry and depressed.”
Unions are “sceptical” at best about the latest eurozone bailout deal. “We fear it’s not sustainable in the long term”, argues Ségol, who queries how the upgraded funds are going to be sourced. “Markets did rally for 24 hours, but what’s going to happen in a year’s time? We are disappointed, but it’s probably better to have had some agreement than nothing.”
She also welcomes indications that European Union governments may intervene to boost lending to businesses, accusing banks of having practised “a sort of blackmail” by threatening to stop financing the real economy. “That’s not acceptable to us.”
The ETUC’s own recipe for recovery includes strengthening the role of the European Central Bank, harmonising company taxation across the EU,
“at least at a minimum rate”, and introducing a Robin Hood tax.
“Only 18 months ago, we were calling for a financial transactions tax and everybody was saying it was impossible. Now suddenly the Commission is taking it up. So there’s some room for optimism.” She recognises that: “The British Government is going to do whatever is necessary to try to stop this initiative. But there might be other ways – some people are talking about enhanced co-operation.” This would be a procedure where a minimum of nine EU states are allowed to establish advanced integration or co-operation.
On one point Ségol is clear: that the collapse of the euro would not leave Britain unscathed. “It would be a disaster not only for the United Kingdom – that’s why David Cameron is so keen to be present in eurozone meetings – but also at a global level.”
The EU also has 15 billion euros (£13 billion) in its Structural Fund coffers, for aiding regional development, she says. The co-funding rules should be eased to allow money to be spent where it is needed. “The EU has initiated a task force on how to use these funds and we have asked for trade union participation. We want to support employment initiatives – sustainable growth and investment is the only way out of the crisis. What we need is to stop saying that austerity, cuts in wages, attacks on collective bargaining and liberalisation of the labour market are going to do the deal.”
Recently, Ségol met up with some of the “Indignants”, representing the young people whose march from Madrid to Brussels ignited anti-capitalist protests around the world – inspiring, among others, the Occupy London movement, proving such an irritant to the City.
“It’s a significant social movement”, argues the ETUC leader, who sees room for collaboration on specific issues. “It’s the expression of people who have gone through this financial massacre, who are in a precarious situation – not only young people – who see inequalities increasing and react to that. Do we share their concern? Yes, absolutely. As
trade unions, we have a different approach, because we are structured, representative organisations. But many of their ideas are certainly very valuable and I hope can help to change the attitudes of politicians.”
One EU policy that has won ETUC approval is bank recapitalisation. “We have always argued that they should be forced not to pay the huge bonuses they are paying, nor distribute the profits to shareholders”, adds Ségol. Incomes Data Services has revealed that top British company directors enjoyed 48 per cent pay rises this year.
Evidence from across Europe confirms that fewer people are on medium incomes, as top salaries soar and the numbers making do on low pay increase, she says. “That’s a big problem. It’s causing even more tensions in society. How can we see things like that happening and do nothing? It’s impossible.”
She emphasises that it is countries with a smaller gap between rich and poor – and strong trade unions and collective bargaining – which are currently the most competitive and prosperous in the EU.
“In Nordic countries, for example, trade unions are seen as a rather good idea and a way of finding solutions.”
Britain, by contrast, has disappointing growth, if any, and Ségol is well aware of the rise of anti-EU sentiment.
“It’s a dangerous trend. It’s easy for the right wing to say it’s all because of Europe. We cannot ignore what is happening if it is destroying public services, putting pressure on social protection, attacking social rights. Of course, people are going to react. Why should they support Europe? That is why the EU institutions must help us.
They must take care of social Europe.”
According to Ségol, the first woman to lead Europe’s trade union umbrella body, the TUC’s participation and support is very important. The UK may be the awkward squad, but she shakes her head at any thought of the country pulling out of the EU. “The TUC is an integral part of the European trade union movement”, she stresses, noting that TUC general secretary Brendan Barber has agreed to take the lead in a forthcoming ETUC campaign against inequality and precarious work.
“We don’t believe that workers in the UK will not be affected by European developments, so saying ‘let’s ignore Europe’ would not be the right way forward. But I understand the problems in the UK and I know it’s difficult to get that message through”, she admits.
Since French-born Ségol left her former job as head of the UNI Europa federation and took the helm at the ETUC, the euro crisis has given her a baptism of fire. Would she do the same again, in light of what awaited her? “I knew the ETUC very well and I was aware of the challenges”, she replies.
“Obviously, when I put myself forward as a candidate in April 2010, I was still hoping that the economic situation in Europe would improve, but I am absolutely determined to give it what I have in terms of experience and the conviction that both Europe and trade unions are part of the solution, not the problem. We need more European trade unionism than ever. We need more consultation between us, better coordination, and to be stronger. At EU level, we need to be able to show the consequences of policies.
“I have over 25 years’ experience of European trade unionism, but this is the most difficult time I have ever known for European workers and for the ETUC to defend them.”
