27 January, 2011The trade union delegation attending the World Economic Forum in Davos demands jobs not deficits should be the priority.
SWITZERLAND: IMF General Secretary Jyrki Raina is part of the delegation of trade union leaders attending the World Economic Forum in Davos, Switzerland from January 26 to 30, 2011, and joins all unions in demanding that jobs not deficits be the priority.
The delegation is arguing that policymakers must stay focused on stimulating enough economic demand to achieve full employment. The ultimate solution to government budget deficits is more employment, higher wages and hence increased tax revenue.
"We need to stop the axis of austerity comprised of conservative politicians, business commentators, and the bond markets," said International Trade Union Confederation General Secretary Sharan Burrow, who leads the trade union delegation in Davos.
- The unions are also advocating:
upholding labour rights and expanding collective bargaining;
raising minimum wages and enhancing social protection;
reregulating international finance and creating a financial transactions tax;
investing in physical and social infrastructure;
creating green jobs by combating climate change;
returning the G-20 to an agenda of jobs and growth; and
reviving the Millennium Development Goals.
IMF General Secretary Jyrki Raina participated in a panel discussion on the state of global manufacturing on January 26, together with Ministers of Industry of Canada and South Africa, and the Chief Executive Officers of Magna International and Essar Group.
"Industrial trade unions want to make the case for the manufacturing industry as the locomotive of national economies. Ensuring conditions for the industry to thrive and create new jobs both in both industrialized and developing countries is in the interest of governments, companies and trade unions," said Raina.
"But the jobs have to be good quality jobs, with decent wages, social protection and the right to join a union. High unemployment, low wages and precarious work have led to unrest in a number of countries, and this is bound to spread. Governments and business have to urgently address the justified concerns of angry citizens," commented Raina.