The World of Labor November 14, 2009

           
By Harry Kelber


U.S. Unemployment Rate Soars to 10.2%

The jobless rate in the United States grew to 10.2 percent in October, a  stunning increase from the 9.8 rate during the previous month, according to a Nov. 6 report by the U.S. Bureau of Labor Statistics, which said that 15.7 million workers were officially unemployed. As today’s figures show, unemployment could persist throughout 2010. Larry Mishel, director of the Economic Policy Institute (EPI) predicts that one-third of the U.S. workforce will be unemployed or underemployed through 2010.

While the latest shocking jobless numbers will probably increase a demand for a second stimulus package, Obama’s economic advisers are opposed to the idea. They say that nearly one million jobs have been saved or created because of the administration’s $787 billion stimulus plan, and the White House is on track to meet the president’s  goal of 3.5 million jobs by the end of next year. They also point to signs of economic recovery that may induce employers to begin rehiring.

The AFL-CIO saw the jobless figures as more evidence of the need of  an additional stimulus package. The alarming jobs report “should be a wake-up call to sleepy politicians,” said AFL-CIO President Richard Trumka. He noted that the AFL-CIO and its allies are unveiling an effort this month to push for “immediate job creation among other critically-needed economic aid for working families. The nation needs to act fast to stop the hemorrhage of jobs and the economic crisis among working families,” Trumka added.

450,000 Chilean Public Employees Launch Strike

Demanding an across-the-board wage increase of 8 percent, about 450,000 Chilean public employees went on strike Nov. 3. The civil servants, represented by  the ANEF union, are also demanding the establishment of a monthly minimum wage of 250,000 pesos ($460) and regularized status for temporary workers and contractors, who don’t receive health coverage or other benefits.

The 48-hour strike halted activity in hospitals and doctors’ offices, where, according to the unions, 80 percent of the workers joined the strike, though skeleton crews remained on duty to deal with emergencies. ANEF Raul de la Puente accused the ministers of finance and labor of not keeping President Michelle Bachelet’s promise  to improve working conditions of civil servants.

The government’s offer of a 2.5 percent wage increase for 2010 was “unacceptable,” de la Puente said. “The negotiations will be difficult if we’re starting from this basis,” he added. Talks have begun between the authorities and union leaders.

European Unions Are Upset after GM Scraps Opel Sale

General Motors’ decision to scrap the sale of its Opel subsidiary has raised new uncertainty over the unit’s future, astonishing politicians in Germany and Russia and prompting workers to stage walkouts in protest.  GM’s Vice President said on Nov. 4 that about 10,000 jobs would be  slashed at Opel, which employs 55,000  Europeans in Germany, Spain. Belgium, Poland and the U.K.

The announcement came less than a day after GM  said it would not sell off Opel to a consortium led by Canadian car-parts maker Magna and Russian state bank Sberbank. The job cuts would be undertaken with the aim of reducing costs at Opel by about 30 percent.

GM’s sudden decision to retain Opel was greeted with surprise and suppressed anger in both Germany and Russia. German officials swiftly demanded a restructuring plan from Detroit, and that General Motors repay the huge loan that Berlin had offered the original Magna-Opel deal.
 

Strike Shuts Moroccan Public Schools

Fed up with overcrowded classrooms and a shortage of instructors in public schools, several Moroccan teachers’ unions  staged a  strike on Oct. 29. The four unions were also protesting poor infrastructure and changes in the promotion process.

“The decision to walk out was taken after an attempt to restart a dialogue with the education ministry  had failed last September,”  said  Abdelmajid El Gharss, a representative of the National Teaching Federation, one of the principal organizers of the strike. “We have not ruled out the possibility that strike action will be intensified if the department in charge does not respond,” added Gharss, who blamed the government for any damaging effect the strike might have on students.

The promotion issue hinges on what the unions call the government’s failure to honor an Aug. 2007 agreement that would increase promotions and cut the number of years—from six to four—that educators must teach before they can take professional examinations.

Thousands Protest Irish Government’s Plan to Cut  Pay and  Services

Workers across Ireland  have taken to the streets in a series of marches to protest against the government’s proposed cuts in pay and services. Organizers of the protest say that at least 30,000 people marched through Dublin, the capital. Speakers at the rally estimated that as many as 70,000  took part in the protest.

The Irish Congress of Trade Unions, which organized the day of action, is opposed to the government’s economic strategy, which it says will inflict unfair hardship on working people and the vulnerable in society.  “We hope that they will look at our plan, which is for a more gentle transition in the period of adjustment,” said ICTU General Secretary David Begg.

The protesters feel that  the 5 percent of of the population who own 40 percent of the country’s wealth should be forced to pay their share toward correcting the nation’s finances. The government must find savings worth roughly  4 billion euros  ($5.9 billion) in the budget on Dec. 9.

DHL, the  Global Freight Company,  Is Target of Labor Coalition

The International Transport Workers Federation and UNI, a global union, are calling a “worldwide week of action”  (Nov. 9-16) to drive home their claims that DHL, the international parcels carriers,  are not abiding by agreements to conform to elements of social responsibility previously agreed with its workforce.

“This campaign is about rights for all DHL workers, irrespective of whether they are directly employed or are subcontractors. It is about ensuring that workers at DHL have a voice in how the company is run, wherever they happen to be working.,” said Ingo Marowsky,  head of the ITF’s region and industrial office. “DHL cannot take a free ride in the countries where the laws  or government turn a blind eye to poor pay, poor conditions  and attacks on anyone who wants to be part of a trade union.”

The unions intend to conduct protests in countries where DHL operate, including Austria, Belgium, Chile, Costa Rica, the Dominican Republic,  Germany, Hungary, Italy, the Netherlands, Panama, South Africa, Switzerland and Trinidad and Tobago.