[stop-imf] Trade unions press IMF/World Bank on social dimension of globalisation

[Robert Weissman]

INTERNATIONAL CONFEDERATION OF FREE TRADE UNIONS (ICFTU)

ICFTU OnLine...

6-8 October 2004: Trade union meetings with international financial institu=
tions

Trade unions press IMF/World Bank on social dimension of globalisation

Brussels October 8, 2004 (ICFTU online): During three days of meetings with=
 the International Monetary Fund (IMF) and World Bank in Washington, a dele=
gation of trade union leaders from over 40 countries are discussing their r=
ecently published proposals  with World Bank President James Wolfensohn, IM=
F Managing Director Rodrigo de Rato, country Executive Directors and senior=
 staff at the IMF/World Bank.  The discussions, part of a structured dialog=
ue process between trade unions and the IMF/World Bank agreed upon in 2002,=
 feature a range of sessions covering social protection policies, Poverty R=
eduction Strategy Papers (PRSPs), debt reduction initiatives, the Millenniu=
m Development Goals, core labour standards and follow-up to the report of t=
he World Commission on the Social Dimension of Globalisation.

In the meetings with Rato and Wolfensohn, ICFTU General Secretary Guy Ryder=
 and WCL General Secretary Willy Thys called on the international financial=
 institutions (IFIs) to stop promoting one-sided labour market deregulation=
, citing their interventions in countries from South Africa to the European=
 Union which encourage the easing dismissal rules and the dramatic dismantl=
ing of worker protection. They welcomed the dialogue process of the IFIs wi=
th trade unions while emphasising that much work still needed to be done to=
 achieve a policy shift in the organisations.

"The IFIs need to drop their simplistic support for labour market flexibili=
ty and reposition themselves to work more in concert with other internation=
al organisations - particularly the International Labour Organisation and o=
ther UN bodies - if current attempts to reach the Millennium Development Go=
als (MDGs) are to be successful," said Ryder.

In response, Wolfensohn stressed his determination to ensure that the World=
 Bank developed and built further upon its commitment to achieve respect fo=
r core labour standards, and stated that the World Bank would implement no =
policy that diminished the influence of organised labour.  The World Bank h=
ad moved a long way from the "Washington Consensus", and it was now recogni=
sed that social justice was an essential counterpart of economic growth.  G=
reatly increased development assistance was vital to achieving the MDGs, an=
d governments and all other parties must also work together to develop mana=
gement systems capable of translating the political commitments reached at =
international meetings into concrete follow-up programmes that could be imp=
lemented effectively.  He proposed the holding of small-group, more intensi=
ve follow-up discussions between unions and the Bank, with the use of video=
 conferencing to facilitate global discussions.

In the meeting with Rodrigo Rato, the union delegation called for the IMF t=
o make changes in its policies to achieve poverty reduction, growth and hig=
her employment levels, consistent with the recommendations of the World Com=
mission on the Social Dimension of Globalisation.  They drew attention to t=
he IMF's failures in countries like Argentina, with a serious impact on pov=
erty, and criticised the austerity that the IMF inevitably prescribes for d=
eveloping nations.

Rato also emphasised the importance of increased resources for developing c=
ountries and welcomed new proposals for international financing facilities =
and other forms of assistance, emphasising that the major hurdles were not =
technical but political.  He expressed his strong belief in the value of di=
alogue with the trade union movement, including the implementation of a gen=
uine consultation process with the IMF at national and at international lev=
els.  However, he added that, despite the trade union interventions, the IM=
F remained convinced that labour market reforms were very often a necessary=
 part of achieving successful macroeconomic recovery.

The trade union delegation included representatives and affiliates of the I=
nternational Confederation of Free Trade Unions (ICFTU), World Confederatio=
n of Labour (WCL), Global Union Federations and the Trade Union Advisory Co=
mmittee to the OECD.

The ICFTU represents 148 million workers in 152 countries and territories. =
The ICFTU is also a member of Global Unions: http://www.global-unions.org

For more information, please contact the ICFTU Press Department on +32 2 22=
4 0232 or +32 476 621 018.