TRADE UNIONS AND ECONOMIC TRANSFORMATION

There are many perceptions about trade unions which need to be dispelled. Among these are that they encourage bad work practices and are against economic growth and profit making. This is far from the truth. Trade unions recognize that they have a role to play in transforming economies and human development, and many of them have tirelessly been advocating for inclusion in that process – a request which has sometimes been denied or only been granted when it is convenient to do so. 

More and more we are experiencing efforts by Governments to exclude trade unions from consultation when national budgets are being prepared. Pronouncements of dialogue are always welcomed, but upon reviewing the list of institutions being invited it is revealed that trade unions are often excluded. The authorities will usually wait until salary increases are being negotiated to present trade unions with their justification for proposing a freeze or minimal increases. 

No committed trade union leader who is invited to consultation on the state of the economy will shy away from the opportunity to speak about issues which are at the heart of the movement. Working conditions, unfair distribution of wealth, pay inequality, gender matters and more will most likely slip into the discussions. This is no reason why there should be any reluctance to seek and welcome their presence. 

The many benefits which employees in different jurisdictions currently enjoy were not pie sent from the sky. They came about as a result of the great efforts of labour unions, although it is clear that some of those gains and benefits are being threatened. Instead they should be improved. Those benefits came as a result of undaunted efforts and sacrifices on the part of those fighting for them. Some were labeled as traitors and law breakers, and were imprisoned or otherwise ostracized. 

It is said that no other organisations has done as much good for mankind as the trade union movement. To have fought in a colonial or neo colonial environment for a reduced work day, minimum wage, pensions, maternity leave, sick leave with pay, vacation leave, negotiated salaries and pay increases and much more could not have been an easy task.

These helped to improve the well being of individuals and to a significant extent bring improvement to societies in general. 

Trade unions are supposed to be the most democratic non-government institutions. That and the fact that they are labour’s only institutional interest representatives with an international outlook, according to David Cichon, “…puts them at the center of discussions on economic transitions.”

In any democracy which is expected to promote human rights, openness, transparency and constitutional freedom, trade unions should never be denied the opportunity to be included in talks geared towards transforming the economy. They represent those who implement policies, those who provide the services and those who are the first to be affected by wrong decisions. 

Some policy makers spend so much time blaming the global financial collapse for the poor state of their respective economies that enough concentration is not placed on home driven programs and activities which will bring about positive economic changes without the usual accompanying hardships to workers and the larger society. Very often recommendations from international lending and monitoring institutions state what should not be done to further erode economies, but their reports often lack clear, constructive ideas as to innovative programs which can be implemented to generate much needed revenue. These lending agencies and the governments give the impression that paying salary and wage increases to government employees will hurt growing economies. They give elegant reasons why wage freezes are necessary, thus government spending in areas that attract votes keeps escalating. Instead of allowing the electorate to arrive at a voting decision based on national development and their perception of candidates and political parties, scarce state resources are used to buy votes. 

Indiscriminate spending and political rewards become part of election campaigns. This wastage of state resources is outrageous and abusive. Such resources could instead be utilized to promote and attract investment which would help in improving the economy, and the working conditions of employees. Too often some of these very employees because of their relationship with politicians are recipients of “political hand outs” and will not join their union in any efforts to bring economic and other reforms if they perceive the Union’s action or proposal as being anti-government.

Undoubtedly, trade unions can influence economic policies. To do so however they must be well prepared. The necessary research must be done and the expertise to do so must be available.  Relying solely on Government’s data is counter-productive. Independent research is necessary. 

Any success to a large extent depends on networking. While certain issues may be unique to a particular jurisdiction, there are issues which are similar. The way in which they were addressed should be shared by those who were involved. 

Trade unions have what it takes to mobilize against policies which have semblance of neo colonialism and remnants of slavery. In doing so they should be prepared to deal with the criticism that they are against development and are affiliated to opposition political parties. In spite of unfair criticism and political labeling trade union leaders need to be assertive and resilient in their pursuit of change which will benefit their constituents and the wider community. 

If we are to positively contribute to economic transformation the reactive approach must give way to pro activism. 

Focus on an all inclusive economy will consider contributions from politicians, trade unions, business organisations, youth, the unemployed, farmers, professionals, community and non-government organisations among others. 

Because of its democratic nature and international affiliations the importance of the trade union in the process of economic reform should not be ignored. The fact that it is expected that they will bring some unpopular issues to forums should never be an excuse for their exclusion. In fact these are reasons why they should be included. Are they not expected to talk about poor working conditions, unfair wages, exploitation, health and safety issues and injustice.

Theoretically unions are seen as transformative agents, a view which would have been derived from that early struggle. There is the need for unions to exhibit greater energy in influencing economic changes as their constituents are usually the first to be targeted when economic stabilization is being considered.

Trade unions are frequently confronted with suggestions of pay cuts, layoffs, salary freezes and outsourcing. While employees are not the ones responsible for the collapse of the economy they are usually the ones who are sacrificed to do the fixing. This being so, they do have a responsibility to have their voices heard and their concerns raised and addressed. In the public service employees on their own are forbidden from criticizing government policies even if they are directly impacted. Their voice, therefore, has to be raised through their representative body which speaks to and negotiates with the employer as equals.

Trade unions must remain focused as to what they perceive to be in the best interest of their members and the nation. They should not flip flop and yield to external pressure by those with their hidden agenda. Above all they must demand the right to be included in meaningful conversations on the economy.

Solidarity,

Thomas Letang 

General Secretary