News

Philip will appear on a debate panel hosted by CNBC’s Maria Bartiromo on Wednesday (http://www.cnbc.com/id/41138743/) and on a panel on Friday on redefining work.

Below is the full interview in English. Click on “Related Files” to see the published article in German.

Blick: The WEF, in the view of many Swiss Citizens, is mainly meetings and deals for CEOs of multinationals and top politicians and has little to do with improving the world, let alone the situation of union members. Why do you keep going?

Philip Jennings: For people around the world, the global crisis is not over. A jobless recovery is taking place in many parts of the world, while unemployment levels are at record levels, with 210 million people out of work. 34 million people have lost their jobs because of the crisis. There is also a growing gap in inequality between the rich and the poor, from China to India to the West. That is not only bad for society; it is bad for business too.

In the global labour market of today, global businesses have no loyalty to local communities. They have secured their place at the top, while driving a competitive race to the bottom. The Davos Forum should show that they care. Strong, independent unions are essential actors in the fight to end this race.

The business and political community must engage with the trade union movement if we are going to improve the state of the world. We cannot let the airwaves be dominated by business leaders and the political community. If we are to change the rules of the game, then the union voice has to be heard. The unions have a seat at the table at the G20, the IMF, the World Bank and the EU, and we think it is important to be at the WEF as well.

Blick: How has the attitude of CEOs etc changed over the 16 years? Can you give an example?

PJ: Over the past 16 years we have seen the real age of globalization and the rise of Asia, especially India and China. This has changed the rules of the economic game. I think the big change in the attitude of the CEOs is that they now see the world in a global context much more than they did in the past. CEOs look at their business in the context of a global labour market and a global workforce. In addition, there is much more talk about social responsibility. Although social responsibility is emerging from the shadows, the profit motive and the bottom line is still the driving force and the predominant thinking. Today, 16 years later, we are in the biggest financial global collapse in the era of globalization. Governments are imposing austerity programmes on workers, while CEO pay is out of control. It’s no wonder that grievances about inequality are on the rise. I propose that CEOs attending this year’s Forum should pledge not to accept a bonus this year.



Blick: Are CEOs etc. more open to your quests voluntarily or do you observe some pressure?

PJ: I think there is a better appreciation of the need for businesses to be sustainable in environmental terms; the notion of social responsibility seems to be higher on the agenda. As a Global Union, we have negotiated 40 global agreements with leading multinational companies. These cover 10 million workers but they are still the exception, not the rule.

As long as financial investors demand high rates of return, then the pressure of financial markets on corporate performance is still short term and blinds business leaders to their social responsibilities. Business leaders are in more of a financial squeeze than ever before.

It is clear that this is a tough time for the trade union movement everywhere. There is a union rights’ deficit in our global economy. As long as that deficit continues, there will be pressure on the workers and a negative impact on conditions and dignity.

Blick: What concrete improvements do you see?

PJ: The WEF is not a legislative body, but a place where we meet. The WEF have changed their governance structure. 16 years ago I was invited, I spoke, and that was it.

With this change in governance, there is more openness at the WEF. The NGOs and the union community are recognized. Over the past years we have been involved in projects on employment, social protection, human rights, pensions. We now have a seat at the Forum as a multi-stakeholder group. We are consulted about the program; we are listened to; we can make suggestions about the agenda and are involved in a great deal of the policy making forums that they have. The agenda itself has evolved. If you look at the agenda today and where it was 16 years ago, it is very different and now includes topics such as gender participation – which came up this year.

Blick: What are your expectations for this year, which results do you aim for? Whom do you plan to talk to?

PJ: We will stress that it cannot be business as usual. The impact of the economic crisis on working people is not over. I am doing this interview from Washington DC, where I have been in negotiations with Dominique Strauss-Khan, the managing director at the IMF. Today we have a record unemployment rate. 34 million people are without work. There is unprecedented inequality. And there is a real danger of a jobless recovery.

Davos should not bow to the financial markets who are resisting reform. The social cost of this reform is high and the workers will not forget it. The business elite do not get the anger that is out there. The “Jasmine Revolution” taking place in Tunisia is just the beginning of the kind of unrest we can expect to see as worldwide unemployment mounts.

We are looking to break through. We are looking for a new deal. We will remind business leaders of the social cost of this crisis and that we want to change the rules of the game. The Davos bubble is no security from the anguish of ordinary people who no longer trust them. The street is abandoned and is angry. Davos, wake up.



I am involved in two sessions. The CNBC broadcast panel on the future of employment (26.01 at 10:30) and a Davos panel on redefining work (28.01 at 16:00). In these sessions and in the WEF setting, a number of meetings take place.



What is a must for the trade unions is to meet heads of state, heads of global institutions, the UN Secretary General, the IMF, the World Bank, the OECD. We will also be in a series of bilateral meetings where we put our case and then there are a range of meetings with business leaders. We will use the opportunity to put our case to leaders of global institutions and companies.



Blick: What can the actors of the WEF do against a jobless recovery?

PJ: It is our responsibility this year to drive the message home that the economic growth that we see is not sufficient to create the jobs that we need. We must also look at concrete actions such as delaying austerity programmes and make sure that they do not hurt societies more than they help them. We must drive inclusive labour policies to spread wealth and create higher consumer spending and jobs. The fact that wealth is concentrated on a few has a very negative impact on society and economics. We need to spread wealth more, we need secure social safety nets and we need to get more momentum back in the greater economy.

Blick: Has the financial crisis and the following recession deteriorated workers’ rights also in the industrial world?

PJ: Yes, the human cost of this crisis has been enormous. We have record unemployment. In the US, where I am at the moment, 1 in 5 of adult males are without a job. Youth unemployment is unprecedented. The gap between the richest and poorest is now at the same level as it was during the Great Depression in 1929. Between 1979 and 2007, the gap grew dramatically, with the richest 10 percent accounting for 91 percent of average income growth.

The countries which have done the best have been those where union rights are respected, where there is a social safety net and where there has been a decision to keep people in jobs.

This year in Davos, the Nordic countries will come in for particular attention because they are considered some of the most competitive economies in the world, but also have the most adequate and comprehensive social net.

At the IMF and the World Bank this week, we saw that the volatility in the world economy has led to a change in their thinking. Their message to us this week has been that social protection is important for economic growth, and social safety nets are important to maintain domestic consumption. This was not being said in Davos 16 years go.



Now we have to translate this into practical action in Davos. We will present our plans for inclusive growth and recovery with jobs.



Blick: Do you consider the CEOs attending the WEF partly responsible for that deterioration? What do you expect them to do?

PJ: The business community, and particularly the financial world, have to get out of their state of denial. Their actions brought about this crisis. They were arrogant in thinking that the market solves all problems. It does not. Capitalism continues to throw up severe shocks but the business community and regulators still cannot see these coming. There appears to be an inability to learn from the consequences of failure of morals; they are still driven by short-term goals.

We cannot accept that we return to business as usual. The message to the CEOs is that we must change the rules of the game. The world of finance brought the economy to its knees. We will remind them that it is working people who rescued them.

Blick: What is the biggest threat to industrial labour markets?

PJ: The biggest threat to the industrial labor market is that the lessons of the financial crisis have not been learnt; there has been no change in behaviour. We need a social safety net to give security and income to people in these times of crisis.



We also have to understand that there is a major transformation taking place in the world economy, which will impact everybody. In this global labour market with its global workforce, there will be further transformations through globalization, demographic change and technology. So, in the midst of the financial collapse, a revolution is taking place in the world of work. And these challenges must not be under-estimated.



Blick: What is your assessment of the union movement in Switzerland?

PJ: I have a positive and good working relationship with unions in Switzerland and they are respected around the world. They are part of the democratic fabric of this country. They are innovative and they speak with clarity about the reality of working life in this country. I particularly appreciate the work that they do for the working poor in Switzerland, for gender equality, collective bargaining coverage, as well as to end the exploitation of migrant workers.

More Swiss workers should join their unions. They are an essential component of Swiss democracy.