Relocations and Trade Unions politics of fear

1
Relocations and Trade Unions politics of fear?

• Grigor Gradev (ETUI)
• EMF- 1 December 2004

2
What do we know

• Mainly fragmented, anecdotic evidence from cases
  in the media
• Fashion discussions by media, shaping public
  opinion and pressing the policy of fear into
  trade unions
• Some more systematic analysis OECD, UNCTAD,
  Consultancy groups

3
Defining the problem the psychological trap

• The historical victories and the feeling of power
  to shape the future
• Capitalism over communism
• Reformist over revolutionary trade unionism
• The politics of conditionality of EU
  enlargement
• A hollow sense of power in trade unions -
  frustration and fear when failing to materialise

4
Terminology effects

• Relocation
• Delocalisation
• Relocalisation/offshoring

5
Systematic approach OECD, UNCTAD,

• Focused primarily on services most likely core
  of the phenomenon, based on lower labour costs
• Evidence suggest disaster scenarios highly
  exaggerated limits to the process, especially
  for EU companies
• In the long term declining impact
• However there is no Average Person

6
EU pre-accession strategy for CEE

• 1994 Essen European Council dilemma
• Intensity of process
• Scope of reforms single market/social dimension
• Outcome
• Single market yes
• Word social not in the text
• Trade unions response - ?

7
Some results

• EU trade balance with CEE
• 1995 EUR 8.8 bl.
• 2000 EUR 104.4 bl.
• Costs of enlargement 2004/2006 EUR 10 bl.
• The case of textile and clothing
• outward processing schemes in CEE
• Keeping jobs in Europe
• Often under 19 c. working conditions

8
The case of relocations CEE transition/accession
period

• ETUI project
• Very few cases of real company/production
  transfers
• Concentrated in labour intensive
  industries/stages of production process
• Companies multifaceted strategies
• Results both positive and negative
• Lesson the potential for management of change
  transparency, information, involvement of
  stakeholders

9
Solidarity has a limit

• MEDEF metal industry sector
• We need the markets of Eastern Europe
• Capital goes where it is cheaper
• Not all French citizens will have the same rights
• But auto industry is to develop
• Eastern markets have to be real, people to buy
  new cars.
• We have to help incomes grow.

10
Post-enlargement period

• Siemens case 2004
• French government a blackmail that will not be
  allowed in France
• Slovak relocation where are the limits
• A pool of cheap, skilled labour in CEE???
• Polish Transport sector developments
• The case of Bonn
• The cracks in China

11
Instead of conclusions

• Deconstruct mythology and fear about relocations
• Where are the real challenges
• A new pattern of distribution of labour in the
  globalised world
• Who are the winners in the losing and the losers
  in the winning
• TU response
• To stop it - ??
• To channel it - ?
• To manage it