The World of Labor - January 24, 2009



	THE WORLD OF LABOR — January 24, 2009 By Harry Kelber Global Crisis May Cause Loss of 50 Million Jobs in China The global economic crisis is set to hit workers harder in China than any other major economy, with a leading scholar predicting 50 million Chinese people would be out of work this year. The Chinese government’s huge stimulus effort would cushion GDP growth, but would not sufficiently address the mass unemployment problem, with potentially grave social consequences, according to Professor Yu Qiao of Tsinghua University. Like many economists, Professor Yu is sharply critical of the government’s stimulus package which favors special interest groups in capital intensive construction rather than services industries that would deliver more jobs, income and utility to households. A preliminary survey by the State Council’s Development Research Center estimated that 20 million migrant workers had lost their jobs by late November. “If exports decreases by 20 percent, the job loss will be doubled,” said Professor Wang, head of the Academy’s Social Security Research Division. China’s construction sector employs 28.7 million migrant workers and 9.9 million urban residents. The nation’s manufacturing industries employed 42.5 million migrant workers and 33.5 million urban residents. The average urban income was 3.4 times the average rural income last year. The income gap is probably the largest since the Communist revolution of 1949. Thai Unions Establish Help Centers for Workers Thirty-four labor organizations in Thailand have joined forces in establishing 21 nationwide centers to provide the unemployed with assistance on legal and rights issues. Wilaiwan Saetia, president of the Thai Labor Solidarity Committee, said that 50,000 Thai workers had lost their jobs, with the closing of 597 factories, and it was also predicted that at least two million more would face layoffs this year. The centers would provide legal advice, as well as checking whether a business establishment was justified in laying off workers, and referring all suspicious company actions to the Labor Ministry for investigation. However, because the government’s solutions were still a matter of policy rather than action, the unions agreed to gather information about employer violations of labor standards and co-ordinate its findings with the government. The TLSC official said the government had to check factories to see whether they were really suffering, since some took the opportunity to downsize their work force unjustly or even cut their wages. Chalee Loysing, chairman of the Electronics Labor Federation, said the labor organization’s network would promote the establishment of 19 labor unions this year in Thailand. Spain’s Offer to Pay Jobless to Leave Flops A hovel Spanish plan that pays jobless immigrants to go back home is shaping up as a flop, with the vast majority opting to stay put and weather hard times. Spain’s once-buoyant economy is on the verge of recession, and its 11.3 percent unemployment rate is the European Union’s highest. The figure is a staggering 17.5 percent among immigrants, a key source of cheap labor in the boom years for the construction industry, the main engine behind more than a decade of solid economic growth. The initiative offers jobless non-EU foreigners, mostly Latin Americans, the option of receiving their unemployment insurance benefits in two lump-sum payments, an average totaling about $16,500. In exchange, they must return to their native countries for at least three years, but can apply to come back to Spain at some point. The idea is to trim Spain’s growing unemployment ranks of jobless people until the economy recovers. When it unveiled the plan in July, the government predicted that up to 20,000 jobless immigrants — out of 100,000 who are eligible—would opt to take the money and return home. But since November, when the program took effect, fewer than 800 have signed up, according to Labor Ministry figures. The return plan is open to non-EU immigrants who come from one of 20 countries with which Spain has a reciprocal social security accord, under which benefits accrued in one country can be paid out in another. Italian Unions Stage National Strike over Deaths at Docks Dockers’ unions held a national one-day strike across Italy on Jan. 22 to protest over poor workplace safety that has led to a series of deaths in the country’s ports. The strike, which was called by Italy’s major port unions, was prompted by a number of fatal accidents at the docks. In a joint statement, the unions said: “It is now clear that we face a genuine emergency in terms of workplace safety in the ports.” They added: “There are precise causes for such accidents, related to workplace safety measures that have long been promised but never delivered.” The unions are demanding a meeting with government representatives to improve safety with the introduction of proper training programs. Frank Leys, ITF Dockers’ Section Secretary, commented: “There is a need for a zero tolerance approach to unsafe working practices and conditions on the wharfs and terminals. National legislation and international conventions have a key role to play.” He said that countries must ratify and implement ILO Convention 152 on the code of practice on safety and health in ports. Blind Protesters in Morocco Lay Siege to Ministry Dozens of blind or visually-impaired Moroccans held a three-day demonstration outside the offices of the Ministry of the Family, Solidarity and Social Development to demand “exclusive priority” for civil service jobs, with regard to their particular needs. The protesters managed to force the door into the fourth floor terrace, where they squatted and demanded to speak to the minister in person. After three days, the blind protesters finally left the ministry headquarters on condition they be received by Minister Nouzha Skalli For her part, she agreed to a meeting, provided that the ministry building was safely evacuated. Under a 1980 law, the blind and the visually-impaired are entitled to education and vocational training to help prepare them for suitable jobs. They are also given prioritized recruitment for certain posts within the public and private sectors. Finnish Labor and Employers Reach Agreement on Pension Issues Under an agreement between Finnish labor federations and employer organizations, the national pension contributions of companies will be lifted, but accompanied by an increase in contributions to regular pension plans. Employers have complained for a long time that they have had to finance basic security and social needs that should be the responsibility of the state. Linking the lifting of employers’ national pension contributions with a long-term payment plan for the work pension system has been s goal for the trade union movement. The pension contribution is to be raised by 0.4 percentage points annually, from 2011 to 2014. The costs of the increase will be shared by employers and employees. Access to unemployment benefits has actually been increased. Unemployed job seekers will be entitled to compensation if they have been employed for eight months during the preceding 28 months. The current requirement is for 10 months of work. The financing of various programs for the unemployed would remain unchanged. The state pays about 45 percent of the cost, the employers contribute 38 percent and the labor organizations pay 17 percent. Check our web site: http://www.laboreducator.org

THE WORLD OF LABOR — January 24, 2009

By Harry Kelber

Global Crisis May Cause Loss of 50 Million Jobs in China

The global economic crisis is set to hit workers harder in China than any other major economy, with a leading scholar predicting 50 million Chinese people would be out of work this year. The Chinese government’s huge stimulus effort would cushion GDP growth, but would not sufficiently address the mass unemployment problem, with potentially grave social consequences, according to Professor Yu Qiao of Tsinghua University.

Like many economists, Professor Yu is sharply critical of the government’s stimulus package which favors special interest groups in capital intensive construction rather than services industries that would deliver more jobs, income and utility to households. A preliminary survey by the State Council’s Development Research Center estimated that 20 million migrant workers had lost their jobs by late November. “If exports decreases by 20 percent, the job loss will be doubled,” said Professor Wang, head of the Academy’s Social Security Research Division.

China’s construction sector employs 28.7 million migrant workers and 9.9 million urban residents. The nation’s manufacturing industries employed 42.5 million migrant workers and 33.5 million urban residents. The average urban income was 3.4 times the average rural income last year. The income gap is probably the largest since the Communist revolution of 1949.

Thai Unions Establish Help Centers for Workers

Thirty-four labor organizations in Thailand have joined forces in establishing 21 nationwide centers to provide the unemployed with assistance on legal and rights issues. Wilaiwan Saetia, president of the Thai Labor Solidarity Committee, said that 50,000 Thai workers had lost their jobs, with the closing of 597 factories, and it was also predicted that at least two million more would face layoffs this year.

The centers would provide legal advice, as well as checking whether a business establishment was justified in laying off workers, and referring all suspicious company actions to the Labor Ministry for investigation. However, because the government’s solutions were still a matter of policy rather than action, the unions agreed to gather information about employer violations of labor standards and co-ordinate its findings with the government.

The TLSC official said the government had to check factories to see whether they were really suffering, since some took the opportunity to downsize their work force unjustly or even cut their wages. Chalee Loysing, chairman of the Electronics Labor Federation, said the labor organization’s network would promote the establishment of 19 labor unions this year in Thailand.

Spain’s Offer to Pay Jobless to Leave Flops

A hovel Spanish plan that pays jobless immigrants to go back home is shaping up as a flop, with the vast majority opting to stay put and weather hard times. Spain’s once-buoyant economy is on the verge of recession, and its 11.3 percent unemployment rate is the European Union’s highest. The figure is a staggering 17.5 percent among immigrants, a key source of cheap labor in the boom years for the construction industry, the main engine behind more than a decade of solid economic growth.

The initiative offers jobless non-EU foreigners, mostly Latin Americans, the option of receiving their unemployment insurance benefits in two lump-sum payments, an average totaling about $16,500. In exchange, they must return to their native countries for at least three years, but can apply to come back to Spain at some point. The idea is to trim Spain’s growing unemployment ranks of jobless people until the economy recovers.

When it unveiled the plan in July, the government predicted that up to 20,000 jobless immigrants — out of 100,000 who are eligible—would opt to take the money and return home. But since November, when the program took effect, fewer than 800 have signed up, according to Labor Ministry figures. The return plan is open to non-EU immigrants who come from one of 20 countries with which Spain has a reciprocal social security accord, under which benefits accrued in one country can be paid out in another.

Italian Unions Stage National Strike over Deaths at Docks

Dockers’ unions held a national one-day strike across Italy on Jan. 22 to protest over poor workplace safety that has led to a series of deaths in the country’s ports. The strike, which was called by Italy’s major port unions, was prompted by a number of fatal accidents at the docks.

In a joint statement, the unions said: “It is now clear that we face a genuine emergency in terms of workplace safety in the ports.” They added: “There are precise causes for such accidents, related to workplace safety measures that have long been promised but never delivered.” The unions are demanding a meeting with government representatives to improve safety with the introduction of proper training programs.

Frank Leys, ITF Dockers’ Section Secretary, commented: “There is a need for a zero tolerance approach to unsafe working practices and conditions on the wharfs and terminals. National legislation and international conventions have a key role to play.” He said that countries must ratify and implement ILO Convention 152 on the code of practice on safety and health in ports.

Blind Protesters in Morocco Lay Siege to Ministry

Dozens of blind or visually-impaired Moroccans held a three-day demonstration outside the offices of the Ministry of the Family, Solidarity and Social Development to demand “exclusive priority” for civil service jobs, with regard to their particular needs. The protesters managed to force the door into the fourth floor terrace, where they squatted and demanded to speak to the minister in person.

After three days, the blind protesters finally left the ministry headquarters on condition they be received by Minister Nouzha Skalli For her part, she agreed to a meeting, provided that the ministry building was safely evacuated.

Under a 1980 law, the blind and the visually-impaired are entitled to education and vocational training to help prepare them for suitable jobs. They are also given prioritized recruitment for certain posts within the public and private sectors.

Finnish Labor and Employers Reach Agreement on Pension Issues

Under an agreement between Finnish labor federations and employer organizations, the national pension contributions of companies will be lifted, but accompanied by an increase in contributions to regular pension plans. Employers have complained for a long time that they have had to finance basic security and social needs that should be the responsibility of the state.

Linking the lifting of employers’ national pension contributions with a long-term payment plan for the work pension system has been s goal for the trade union movement. The pension contribution is to be raised by 0.4 percentage points annually, from 2011 to 2014. The costs of the increase will be shared by employers and employees.

Access to unemployment benefits has actually been increased. Unemployed job seekers will be entitled to compensation if they have been employed for eight months during the preceding 28 months. The current requirement is for 10 months of work. The financing of various programs for the unemployed would remain unchanged. The state pays about 45 percent of the cost, the employers contribute 38 percent and the labor organizations pay 17 percent.

Check our web site: http://www.laboreducator.org