THE CHALLENGES OF THE ECO-SOCIAL MARKET ECONOMY

On the map you see the names of the European countries from which participants
came at the seminar in Belgrade, the capital of Serbia (19-21 of April)

The Austrian trade union federation FCG/GPA-djp and the Dutch trade union confederation CNV organized together with the European Organization of Workers EO/WOW, the Serbian Federation SS Bofos and the European Centre for Workers' Questions EZA a European seminar especially for trade unions in Central and Eastern Europe. The seminar had about 70 participants coming from 20 different European countries. It was held in the city of Belgrade, the capital of Serbia, from Tuesday evening 19 until noon of Thursday 21 of April. Excellent speakers from different countries held introductions on the different aspects of the Eco-Social Market Economy.

Preparing the opening of the seminar. On the left Günther Trausznitz,
General Secretary of the FCG/GPA-djp (Austria) and President of the EO/WOW.
In front of him Bartho Pronk, President of the EZA.
Between them Mara Erdelj, President of SS Bofos (Serbia)
and member of the board of the EO/WOW.
They together spoke on the official opening of the seminar.

The definition of social market economy is: a form of market capitalism combined with a social policy which favours social insurance and solidarity. The social market economy forms the heart of our free and open national and, increasingly more, European society, which is also characterised by solidarity. It has proven itself as an economic system that allows for prosperity and full employment whilst also providing welfare and promoting a strong social fabric.

Günther welcomes the participants of the seminar on the morning of the 20th of April.

The concept of an Eco-social market economy was first developed in the 1980s by the Austrian politician Josef Riegler, who, out of concern for the environment, demanded that the social market economy should be further complemented by the component "environmental responsibility". It aims at balancing free market economics, the strive for social fairness and the sustainable use and protection of the natural resources. The eco-social market economy requires that the protection of the environment and social fairness are vital criteria for all economic activity.

Mr. Magister Johannes Mindrer-Steiner , Executive Director of the Institut for
Umwelt, Friede und Entwicklung IUFE (Austria), spoke on
"The Eco-Social market Economy: Hype or the future?"

In that sense the Eco-social market economy can be considered a very Social-Christian principle. Having a balance between the various actors of the economy does also imply that this is sustainable. The Biblical term for this is ‘custodianship’. Being responsible, in manner of acting, for current and future generations. Natural resources are not endless and should not easily be discarded. But one can easily translate this to sustainable welfare and solidarity.

Ms. Marija Parun Kolin, Senior Research Associate in the
Centre for Sociological Research, Institute of Social Sciences Belgrade (Serbia),
spoke about "Challenges for the Eco-Social Market Economy
in the new EU Member States."

So the Eco-social market economy aims at an enduring society in the respective cultural context, which is sustainable on three levels: environmental, social, and economical. This is in accordance to what is mentioned in the Treaty of Lisbon under article 3.

Mr. DI Josef Riegler, Vice-chancellor AD and Honorary President
Ökosozialen Forum (Austria), treated the "Eco-Social Market Economy:
a project for justice and peace."

But how to put the above into practice? The main issue is the compatibility of ecological and social aims with the principles of a market economy. The crucial question is: which framework conditions have to be created so that the dynamics of a market economy move within borders that are imposed by ecological and social aspects. Politics for the economy and for the society needs a clear regulatory framework. This is now more important than ever.

On the left Mara Erdelj, the chairperson on Thursday, and behind her
Mr. Dr. Petar Dukic, Professor Faculty of Technology and Metallurgy
speaking about "Are the principles  of a market economy compatible
with ecological and social aims?

THE DOWNFALL OF THE WCL 50

A group photo of the participants of the WCL Confederal Board made in Senegal, April 1998. 
I may be wrong but I believe this was the first Confederal Board without 
CLAT General Secretary Emilio Maspero. 
BATU President Johny Tan was already a long time not active. 
He was replaced by Noel Rebello (India) and later Muktar Pakpahan 
(President SBSI, Indonesia). Emlio Maspero died in 2000 at the age of 73. 
Johnny Tan in 2006 at the age of 82. 
Both had an outspoken WCA vision and ideals.

Before continuing the analysis of the Gabaglio discussion paper, I want to emphesize the importance of the document. Don't forget it has been used two times as a guide for the debates between the executive committees of WCL and ICFTU. I don't know what history the document has had in the ICFTU but in the WCL it has guided the debates in the European Section and therefore also in the Confederal Board. Whatever the reasons are, it seems strange that an outsider but at the same time a man of the ICFTU has been asked to present such a document. On the other side, it is interesting to read the opinion of an outsider/ICFTU oriented man about the history of the WCL.

Gabaglio writes the following about the WCL after the downfall of communism.“1.9 The WCL has played a leading role in supporting free trade unions in Central and eastern Europe (active support to Solidarnosc from the beginning). The day after the Romanian Revolution, the WCL offered its support to Cartel alfa, the country's first independent organisation, and took similar initiatives in other countries.”

This is indeed what happened and credits for this goes first to WCL Secretary General Jan Kulakowski (see blog: Solidarnosc and the struggle for the trade union movement after communism. and The downfall of the WCL part 3 and for Romania to the former Confederal Secretary Emiel Vervliet (Belgium). Unfortunately Solidarnosc gave always priority to the ICFTU for reasons which were never clarified. Was this because of the AFL-CIO that supported the anti-communist policy of the American President Ronald Reagan and therefore openly choose side for Solidarnosc while the European left hesitated to take side openly for Solidarnosc? Or was it a matter of money? Given the struggle of Solidarity against communism based on human and Christian values, I do not wish to believe in the latter.

“1.10 However, the main organisations of most of those countries joined the ICFTU, which was supported by great European confederations (mainly the DGB) and the ACILS, which was an AFL-CIO agency. The latest affiliation registered was that of the Russian federation in 2001.”

It is true, the AFL-CIO affiliated - what Gabaglio calls - “the main organisations” in Central and Eastern Europe. But it would have been more frank if he in this context had used the expression ex-communist organisations. Some, so not all, changed rapidly of flag from communism to (social) democracy without worrying too much about democracy. However, for the ICFTU realpolitik was sometimes more important than democracy. That is also the opinion of Gabaglio because later in the document he writes with regard to this about “the erratic policy” of the ICFTU.

In point 1.11 Gabaglio claims that the Austrian and Swiss confederations distanced themselves from the WCL because of not paying dues. As far as I know this had more to do with an internal dispute about the WCL policy which the executive committee could not arrange. These two confederal organisations had the opinion that the WCL did not listen to their comments and did not give enough support on European level. Therefore, on the contrary what one would expect, their trade union affiliates in different sectors continued to pay their dues to the international trade union federations of the WCL. For example the WFCW (bank and commercial employees) and the WFBW (Wood and Building) had for many years a Swiss treasurer.

Muktar Pakpahan, President of the Indonesian independent trade union confederation 
SBSI (Indonesian Prosperity Trade Union)

“1.12: At the world level, and after the fall of the Berlin Wall, the WCL has strongly developed in Africa, especially since pluralism started being tolerated within the continent. In Asia, it is worth highlighting the affiliation (in 1977) of Indonesia's SBSI, the only independent organisation of the world's fourth most populous nation and the world's largest Muslim populated country.”

The SBSI was in a certain sense for the Indonesian dictatorship what Solidarnosc was for Polish communist dictatorship. From its start, SBSI fought for the so-called 'Reformasi' with the aim to return to democracy and pluralism in Indonesia. Because of this the SBSI President Muchtar Pakpahan was jailed many times. The credits for the affiliation of SBSI to the WCL go to the CNV and especially former President Anton Westerlaken who visited the SBSI President Pakpahan when he stayed in prison and had to appear in court.

Muktar Pakapahan was sentenced several times to imprisonment in the period 1994-1998.
It was at this time that CNV President Anton Westerlaken visited him in prison 
and during a trial.

While the WCL gets some credits from Gabaglio for promoting trade union pluralism in Africa and affiliating the Indonesian confederation SBSI, the ICFTU is praised by Gabaglio for affiliating “great progressive organisations all over the world, such as Brazil's CUT in 1995, South Africa's COSATU in 1997 and South Korea's KCTU in 1999.” (point 1.13) Can it be that the word “progressive” used by Gabaglio is a euphemism for “socialism”?

With point 1.16 we arrive to the most important remarks of Gabaglio regarding the aim of the unification of WCL and ICFTU. First he declares that “the trade union scenario has changed and the ideological lines first drawn have become blurred” because of the fall of the Berlin Wall (a much used euphemism for the economic political, moral, social and ideological collapse of communism). In the meanwhile ICFTU had changed also: “The affiliations registered in emerging or developing countries in general, and in Arab countries in particular, have somehow modified the image of the ICFTU as a confederation dominated by industrialized countries.”

CNV President Anton Westerlaken at a special conference organized 
by the Dutch solidarity association CLAT-Nederland 
at the occasion of its 40th anniversary. (1994)

However, this is a to easy conclusion. The rich members have had always more voting power than the poor and weaker organisations. This has been always the case in the ICFTU and the WCL. However, the latter tried to give a greater voice to the poor trade union members by giving them a minimum presence and voting power. In general it can be said that international solidarity has its limitations also in international trade unions, whatever nice words are used.

In the next point 1.17 Gabaglio makes a remarkable observation, nearly a confession that I already announced before: “Over the past years , this change has been translated into a new ICFTU affiliation policy. In the past, this policy was “erratic”. Today, the ICFTU has refused to accept the affiliation of the leading (but not really democratic) organisation of Ukraine, and has decided to shelve its project on the unification of Indonesia's official trade unions against the SBSI, which is a WCL affiliate.”

The expression “erratic policy” seems to refer what is normally called “realpolitik”. In realpolitik, economic and political power of a trade union is more important than its democratic structure and culture. A policy well known from for example the USA in Latin America and made that the USA preferred to support a pro-American dictator in stead of a leftist elected government. A bitter example of this policy was what happened to the Allende Government in Chile (1970-1973). One of the instruments used by the ICFTU to gain control of trade unions was also to force them to unite as for example was tried once in Romania and so also in Indonesia.  

THE DOWNFALL OF THE WCL (PART 13)

The impression I have got from Philip J. Jennings during our meetings as well as later during brief encounters, is that of a dynamic and ambitious trade union CEO. A pragmatic man who is convinced that big bussiness must be confronted by big unionism. The bigger the union, the better it can do its bussiness. Therefore it is not surprising that by using the FIET as a starting point, he succeeded in creating the Global Union UNI (2000) which is now one of the biggest unions in the world. However,the problem is that how big an international union may be, it will never be stronger than its weakest members. That is true for any international organization be it the United Nations or an International Trade Union Federation like UNI. Only strong local trade unions can make strong an international trade union organization.The question therefore is how to get strong local unions worldwide?

The talks between delegations of WFCW and FIET / EURO-FIET (since 2000 UNI/EURO-UNI) were fruitless. FIET General Secretary Philip J. Jennings tried us just to make clear that the WFCW outside Europe does not mean anything. The talks were literally a confrontation between power politics and idealism. He did not endorse our argument that EURO-FIET should respect the rules of the European Trade Union Confederation ETUC.

The coupling of the membership of EURO-FIET to that of FIET may be justified according to Jennings, but it did not make any sense in the light of the agreed ETUC rules. Besides, we had our doubts about this presentation of the financial relations between EURO-FIET and FIET. Thanks to the status of social-dialogue partner of the European Commission, EURO-FIET could use free of charges European facilities such as meeting rooms including translation equipment and interpreters. For an international organization this means an important amount of savings. Therefore it looked to us as though FIET played a game with the WFCW in order to acquire a monopoly.

Emilio Gabaglio and Fritz Verzetnitsch - Signature of the European Framework Agreement on parental leave - Brussels - 14/12/1995Emilio Gabaglio (left) was ETUC secretary general from 1991 until 2003. He was also national president of the Christian Associations of Italian Workers . The year before he was elected president, ACLI had held a Congress under the title of “Workers' Movement, Capitalism and Democracy”. “Under the presidency of Emilio Gabaglio (1969–1972), who proposed a "socialist hipothesis", the ACLI went further to the left.” The ACLI was a member organization of the WCL without being very active on international levels during these years.
Fritz Verzetnitsch was ETUC President from 1993 until 2003 and President of the Austrian Trade Union Confederation ÖGB from 1987 until 2006.He was also a member of the Executive Board of the ICFTU (1988-2000). As a result of a financial scandal with the ÖGB Bank BAWAG, that caused great financial losses, Verzetnitsch left office on 27 March 2006 and was dismissed by the ÖGB in April.

We then decided to ask the CNV confederation as a member organization of the ETUC, to intervene officially on this matter at Emilio Gabaglio, the General Secretary of the ETUC.  We thought that he could convince the FIET to respect the agreed European rules. However, the intervention of CNV chairman Anton Westerlaken together with a delegation of WFCW did not give any result. Apparently Gablagio was powerless regarding FIET or did it not suit him to intervene?

As a last resort we decided to knock on the door of ÖGB President Verzetnitsch also chairman of the ETUC. I remember a friendly reception but that was about all. Did he not want to do anything or couldn't he do anything? Years later, the breakthrough came anyway. European trade unions could join the EURO-FIET without compulsory membership of the FIET. Why took it so much time for FIET to adapt to the European rules? Was it a case of ordinary power politics to secure its monopoly? You would think so if you look to the facts.

The WFCW affair made clear that the International Trade Federations ITF's of the WCL had no answer on the challenging and sometimes agressive positions of the large European trade union organizations. The WCL was responsible for the coordination of the ITF's, but in practice proved unable to do so effectively. Earlier, for this reason the metal unions ACV and CNV had left the WCL, in order to join the European Metalworkers' Federation (EMF). After joining the EMF the two unions wanted also to join the International Metal Federation IMF. So there was no forced trade between the European and international organization like FIET, but a deliberate choice of the two unions. However, the two unions had to wait years before they could join the IMF, as you can read below.

"Traditionally Christian unions join organizations of the WCL, the World Confederation of Labour. In the field of metallurgy, the WCL has no organization anymore. Thus was joining the IMF obvious. However, members of the IMF can block new unions from their country to join the IMF. This veto was used by the Belgian Socialist metalworkers against their Belgium Christian fellow union, the CCMB. And our trade union had a solidarity agreement with the CCMB: we join together the IMF or we do not. For the time being it was not. When over the years the Belgian attitude changed, it was then the Dutch FNV that did not want us to join the IMF. It took years before the barriers were removed. In 1991 the CCMB joined the IMF in Lisbon, and this year (1992) it was our turn. It is strange that our membership has been blocked for so many years, while our union was already for many years a member of the EMF, which has good relations with the IMF. " (magazine "Bondsbeeld" of the CNV Industry Union , 10th of July 1992)

Reading this article, I decided to write a letter to President Frits Hanko of the CNV Industry Trade Union in which I observed that it is only partly true that the WCL does not have a special organization for the metal sector. “But, and this is nothing new for you, we have a World Federation of Industrial Workers WFIW. As you know, we still want to be active internationally. Therefore, we could use the support of your metal sector as well." (letter of 4th of November 1992)

Thanks to his visits to Latin America Frits Hanko (on the extreme left of the round table) was well informed about Latin American trade unionism and the difficult situations the trade unions have to confront. This picture was taken during a meeting between CLAT and CNV (March 1989). The meeting was presided by the late Emilio Maspero, Secretary General of CLAT. On the opposite side of the table is sitting CNV President Henk Hofstede. On his left Wim van der Jagt, treasurer of the WFIW followed by CNV board member Anton Westerlaken. Between Henk Hofstede and Frits Hanko you see CNV Secretary Peter Cammaert. On the left of Maspero, CLAT Deputy Secretary General Enrique Marius is talking.

President Frits Hanko answered as follows:

"During the formation of a European front of the metal sector, we were confronted with the European Coal and Steel Community (founded in 1951 by the six European countries: Belgium, France , Italy , Luxembourg, the Netherlands and West Duitsland. The ECSC was the predecessor of the European Community ). It is clear that the European trade unions wished to be involved in it and I refer to the unions organizing the metal workers .

I remember still the debates about the affiliation of CNV Industry to the EMF. These provoked a lot of discussion on principles, however, because of the fact that through the WCL the intended communication with the socialist unions was not functioning, a pragmatic decision was taken.

Years later, the discussion took place about the international connection to the IMF. Last week I visited the CMB , the Belgian metal union of the ACV. President Tony Janssen said in his congress speech that they fought 12 years for recognition and membership of the IMF . His message reads "It is unthinkable to be not organized internationally with all metalworkers.” Of course I am sufficiently well known about the existence of the WFIW . Would I forget so soon the visit to South America? I believe that , if there wil be a connection between the metal sector and the WFIW, there should be a discussion with the Christian trade unions on a double affiliation.” It must be said that CNV Industry indeed remained a member of the WFIW until the merger between ICFTU and WCL in Vienna in 2006.

This piece of union history shows that the WCL was unable to provide a strategic response to the European developments in certain sectors based on its own identity, values and vision. However, while the metal unions bowed their heads for the socialist majority (sorry, but that's the image that lingers), the European Christian Miners Federation remained for a long time active in spite of the closing of mines in Belgium, France and Germany.

I must also tell you that on the basis of the letter of Lucien Stragier, earlier quoted, the WFCW invited the LBC-NVK to join a WFCW solidarity foundation. After mutual agreement on the statutes and rules, the LBC-NVK became a member of this WFCW solidarity foundation. She remained a member until the merger of WCL and ICFTU. When it appeared that the WFCW did not agree with the merger, LBC-NVK Chairman Ferre Wyckmans announced to stop the contributions to the solidarity fund by letter. Thus came into being still a complete separation of spirits after 20 years. Although invited to do so, Unie BLHP and the Luxembourg LBC never wanted to be a member of this WFCW solidarity fund.

To be continued

The above story is a personal testimony of what happened at the end of the last century and the beginning of the new millennium in the international trade union movement, in particular in the WCL and CLAT.

THE DOWNFALL OF WCL (part 2)

Wim Spit (left), vice-president of the FNV and president of the NKV received in march 1979 a delegation of Latin American women of CLAT. Here you see him talking with Maritza Chireno of the Dominican Republic with the help of Leo Sijbes (left of Maritza) from CLAT-Nederland. Wim Spit deceased last month at the age of 89.

The following story is a personal testimony and not a historical record of what happened at the end of the last century and the beginning of the new millennium in the international trade union movement, in particular in CLAT and the WCL.

I do not know if during the WCL Congress where the French CFDT decided to leave the WCL, there was already some talking about a possible merger between WCL and ICFTU but during the merger between NKV and NVV in the Netherlands it was the case. Remarkable if you take in consideration that this happened just after a few years that the so-called "bible of Maspero' with the strategic options of WCL was approved.

During the Confederal Board meeting of WCL in Montreal (March 1980) NKV President Wim Spit (recently deceased) declared that his confederation only will stay in the WCL if the WCL will declare as its political intention to merge with the ICFTU into a new democratic world organization. The continental organizations of WCL in Asia (BATU), Africa (ODSTA) and Latin America (CLAT) strongly opposed the proposal. The Dutch CNV therefore proposed a resolution that advocated for cooperation between ICFTU and WCL but no merger at all between the two world organizations. This was accepted by all participants, except the NKV delegates. (Circular No. 846 of April 29, 1980 by J.M.W. van Greunsven, secretary of the FNV Federation Board addressed to the members of the Federation Council.)

The result was that in the above referred circular the FNV Federation Council was proposed to choose alternative b, which reads as follows: "…..there are no longer sufficient grounds to remain a member of the WCL. From this point of view, the NKV can come to no other conclusion, after having postponed on several occasions its decision taking or not to implement decisions already taken, then to terminate its membership of the WCL per December 31, 1980 in compliance with the time limit according to the statutes, ie by September 30, 1980.

– At this point the NKV must conclude, after having spend for so many years its best efforts for the strengthening and renewal of the international democratic trade union movement, to have failed in the intensive efforts to achieve an acceptable political decision on unification between ICFTU and WCL.

– This failure is mainly due to the unwillingness of the WCL to cooperate in providing acceptable solutions for the ICFTU, but also for NKV. The strengthening of the international trade union movement is by termination of membership in fact not at risk, because also in maintaining the NKV membership there is no prospect for a unified world trade union movement.

– The situation that only the NKV as a confederation will be a member of the WCL and little or none of its unions member of the WCL International Professional Federations – insofar as they still are functioning - is politically highly undesirable, although this possibly could be bridged for the short term. Confederal and professional action should be aligned and coordinated. Issues such as international restructuring, control of multinational companies and solidarity actions demand strong Confederations together with strong Professional Federations.”

What exactly is meant by strengthening and renewing the international trade union movement is not entirely clear. The emphasis is on strengthening by increasing the power by numbers in this case that of the ICFTU. The issue of relations between industrial action and ideas about the future of mankind, society and state do not arise. In the quote we read about what indeed would become a weak part of the WCL, the weakness of the professional action through its International Trade Federations. This subject will therefore certainly come back further in the story.

For now we can conclude that with the departure of first the French CFDT and later the Dutch NKV, the Belgian Christian Trade Union Confederation ACV as the strongest confederation in the WCL, had great responsabilities in maintaining the WCL, followed at a distance by the Dutch Christian Trade Union Confederation CNV. Fortunately both confederations mentioned posessed well equipped and financially strong NGO's to continue to support international solidarity activities for the development of the WCL affiliated trade unions.

The departure of the two federations meant not only a financial weakening of the WCL. The WCL got the image of an organization that is losing slowly its members. The Dutch merger also brought new ideological tensions between the international trade union organizations. It was considered by opponents of the WCL as a proof that Christian trade unionism is outdated. Many believed that soon the WCL will disappear.

This believe was not new. Indeed in 1973, the year of the WCL Congress in Evian, the European organizations of the WCL and the ICFTU agreed on the foundation of the European Trade Union Confederation ETUC. Obviously in the new ETUC, the unions affiliated to the ICFTU had the majority. Part of the deal was, however, that the confederations could remain its membership to their respective world organizations. It was also agreed that trade unions, belonging to those confederations affiliated to the ETUC, could become a member of to the European Trade Federations without leaving the WCL International Trade Federations.

The ETUC had to be a unified trade union organisation without some kind of internal organized pluralism. Was it lack of understanding by the WCL or excessive confidence that they did not agree on for example the formation of a social-Christian group within the ETUC ? Remarkable because it was a well-known phenomenon in some European confederations. The Austrian Confederation ÖGB has formally structured fractions based on internal elections. Within the German Confederation DGB exists a group of Christian Democratic oriented members.

To be continued