Right To Work - The View From Greece

I attended the Right To Work meeting in Manchester on Wednesday to listen to Greek trade unionist Vasilis Sylaidis talk. Here's what he had to say (though my notes may not be perfect I hope you get the gist):


BACKGROUND:

He had been at Westminster that morning along with PCS comrades who were on strike. "At the heart of old British imperialism," as he put it.

The current Greek government was elected on a socialist ticket last October and, prior to the election, no mention of the austerity package to come had been made (surprisingly enough).

The current Greek fiscal deficit stands at 12.5% of GDP. In 2007 it was around 4%.

The Greek banks received a bailout of 28bn Euros in 2008.

The state bank can not borrow from the European Central Bank. Other borrowings are currently charged an interest rate of between 6% and 7%.

Greece has a high defence budget but only as consumers. In the midst of the banking crisis the government placed new orders for military equipment.


AUSTERITY MEASURES:

There have been both pay and job cuts affecting 100k people in the public sector. The pay cuts are in the region of between 15% and 20%.

There have been both direct and indirect (e.g. VAT) tax rises.

The aggregate loss to workers of the combination of the above measures to between 25% and 30% of pay.

As a result, and knock-on effect, shops are rapidly closing down. The estimated job losses to retail will be around 60k.

Private sector pay cuts will be forthcoming (if not already).

There have been pension cuts combined with a calculation formula change amounting to approx 30%. It is anticipated the retirement age will rise form 65 to 67. Previously women had enjoyed an earlier retirement age - this has already been removed and sync'd with the male retirement age at 65.

Redundancy compensation has been cut to the tune of 50%.


UNION RESPONSE:

The Greek 'TUC', much the same as in this country, is largley beholden to the encumbent socialist government. It's initial response was to press unions to allow the government more time to cope with the crisis.

The government and media portray the public sector as privileged in relation to jobs. (Sound familiar?)

Eventually, thanks to upward pressure from grassroots union members, the 'TUC' was forced to act in defence of it's members.

Following earlier strikes localised by industry or sector, general strikes have taken place on 10th Feb, 24th Feb, 5th Mar and 11th Mar.

A protest march on the 5th saw approx 55k take to the streets and resulted in an 88 year old Greek WW2 resistance hero being tear gassed.

Numbers protesting on each strike date have gradually increased to approx 80k on the 11th. Occupations have now started.

There were approx 6 demonstrations in Athens on Tuesday 23rd.

It is informal union organisation that is driving the strikes as opposed to being 'TUC' led.


OTHER COMMENTS:

The Greek economy is renowned for being largely untaxed with whole sectors escaping contribution. As a result many deals are 'underground' or subject to corruption.

The government had promised to reign in this behaviour and start wholesale tax collections but is now, as a result of the public sector cuts, making tax collectors redundant.

In response to the bank bailouts and the cuts for workers, one noted, "Why pay for a system that doesn't work?"


->END - BIG ROUND OF APPLAUSE.


Vasilis' talk was filmed and will be on YouTube. I'll update this link when available.


There was a discussion afterwards which highlighted (among other things):

• The necessity of solidarity with striking workers - particularly BA cabin crew. Why isn't Unite using its wider membership to influence the outcome? And if it is unwilling to pressure the government then it is about time we lost the Labour party link (amen to that)
• The difference between the UK and Greece at the moment is that we are the 'wrong' side of an election. All parties have promised cuts but the result (i.e. where Greece is now) has yet to be experienced.
• The media attacks on strikes are appalling. Workers defending jobs, pay and conditions are being portrayed as militants but it appears this 'picture' may be hardening resolve (again, the example of BA through two strike ballots). Again, solidarity is essential to encourage and support each other.
• There was much talk of Bolton's recent UAF/EDL confrontation with one mocking reference to 'designated protest zones'. As one wag noted, "The whole world is our designated protest zone". Also references to the media turnaround on the prtrayal of protesters in the light of footage available on the Internet taken from the demo.
• There was reference to the upcoming election and a positive response to TUSC from voters in Gorton disillusioned with Labour.