News

• UNI Global UNI warns G20 not to pretend Greek vote is an endorsement of austerity
• Austerity plan failed on three accounts – failed to deliver on jobs, cut the deficit or improve economic activity. G20 leaders are underestimating the power of labour market intervention to help improve the economic situation
• UNI Global Union General Secretary, Philip Jennings calls for a Plan B during meetings with world leaders at G20, including the Mexican presidency, Japanese President Yoshihiko Noda, ILO Director General Juan Somavia, WTO Director General Pascal Lamy and Head of IMF Christine Lagarde.

.Jennings said, “The G20 should not kid itself that the Greek people have in any way endorsed the current austerity plans. They found themselves in an impossible situation with their backs to the wall. During my exchange with the Japanese prime minister I said that the G20 cannot use Greece as an excuse for more austerity. A government will be formed in Athens but the Troika must rethink the repayment terms to help the Greek people who are suffering because of this process.”

Jennings continued, “We urge the G20 to change course - they need a Plan B because austerity has not delivered on jobs, cut the deficit, or improved economic activity. Nor has austerity unleashed private sector investment. Firms are sitting on trillions in their balance sheets. What we are detecting in our talks here in Los Cabos is that there is a realisation that more has to be done to get demand moving in our economy. However the G20 leaders are still underestimating the power of labour market intervention to help improve the situation. If you put money in workers' pockets it’s a stimulus to the economy which is real. What we are seeing around the world is a fall in people’s spending power with for example a drop in salaries in the UK of 4% - the biggest drop in 30 years and an income drop in the US of 7.7% in the last 3 years. The G20 needs to put purchasing power back in workers’ pockets so that they can see some demand moving again. We are beginning to see this in Germany with 6% wage increases.”

“There is a failure by the leaders at the G20 to understand the importance of collective bargaining to boost economic activity and demand. They don’t get it. Cutting collective bargaining is a blind alley to growth at a time when the share of wages in the wealth produced is at a low for modern times. The G20 should also worry about the consequences of precarious work on economic growth. Precarious work is a fragile pillar to build prosperity. The G20's work should be about 'including you', including you the people in plans to bring quality jobs, fair wages and hope for the future,” he concluded.