G20 must tackle global jobs crisis says TUC

G20 must tackle global jobs crisis says TUC

Globally more people are out of work today than ever before, and this looks set to worsen as deep budget cuts threaten fragile economic recovery. TUC General Secretary Brendan Barber has today written to Prime Minister David Cameron ahead of the G20 Leader's Summit in Seoul Korea (11-12 November 2010), asking him to take up global union demands to instead put quality employment at the heart of G20 recovery strategies.

28 October 2010

Dear David

G20 Leaders' Summit - Seoul, 11-12 November 2010

I am attaching the Global Unions' statement of priorities for the upcoming G20 Leaders' Summit in Seoul. It would be very useful to get HMG's views on these proposals in advance of the Summit.

According to the ILO, there are more people out of work today than ever before, and this looks set to worsen as fiscal consolidation starts to bite. For working people globally, the G20 Leaders' Summit in Seoul is a critical chance to put quality employment - not risky deficit cutting - at the heart of G20 recovery strategies.

G20 governments need to get millions of people back to work, to support the ILO's global social protection floor, and retraining and job search programmes, particularly for the most vulnerable. Such ideas are about more than fairness for working people. They are about harnessing the world of work to boost aggregate demand in the economy, to create equitable, balanced and sustainable growth. The recent IMF-ILO conference in Oslo supported this conclusion, and we hope that the Seoul Summit can too.

As you are aware, the TUC, along with many economic experts from across the spectrum, believes that the government's proposed cuts are too deep and too rapid. In the short term they will cause massive jobs losses in the public and private sector, and hurt some of the poorest and most vulnerable. At worst the cuts will push us back into recession. At best they will lead to lost years of high unemployment and growth so weak that the deficit may well stay high.

No doubt we disagree on this scenario. But its likelihood is greatly increased if all G20 members pursue the same strategy of fiscal consolidation. That is why the Seoul Summit needs to move away from the failures of the last G20 Summit in Toronto, and implement coordinated strategies on driving domestic wage-led growth, extending systems of social protection to help workers get back on their feet and balancing exchange rates.

In proposing these measures global unions do recognise that governments face fiscal constraints. That's why we are supporting progressive tax reform to ensure everyone makes a fair contribution to economic recovery. The coalition government needs to close our huge domestic tax gap, and the size of the recently announced bank levy is disappointingly low. Abroad, the UK can lead in clamping down further on tax havens. Strengthening the Global Forum on Transparency and Exchange of Information for Tax Purposes by making it truly multilateral and mandatory would be a welcome next step. A financial transactions tax is a compelling alternative to harsh budget cuts that I urge you to consider seriously.

The G20 needs to finally deliver on the financial reform needed to curb excessive remuneration and risk taking, clamp down on the shadow economy, and protect retail and commercial banking from risky and speculative activities.

Finally, we urgently need an ambitious and binding deal on tackling climate change. A key part of that must be flanking policies to create green jobs and ensure a 'Just Transition'.

The attached Global Unions statement outlines these priorities in more detail. I look forward to your response and hope that we are able to discuss them in person in Seoul.

Yours sincerely

BRENDAN BARBER

General Secretary

Attachment: Global Unions statement to the G20 Seoul Summit 11-12 November 2010