Central Organisation of Finnish Trade Unions (SAK) Congress

Tampere, 06/06/2011

President, Friends,

I am grateful to be given the opportunity to speak to the SAK congress.

It is the first time I address a congress as ETUC General Secretary. Our congress finished two weeks ago. I feel still quite new in the job…although I had a few months to get prepared.

I would at first thank you most warmly for nominating me as your candidate and supporting me during the election process.

I am taking over from John Monks. This is going to be difficult. I have admired the way John has been leading the ETUC, with care, understanding for all trade union cultures and great leadership skills.

Let me be very open : I would not like SAK, and the Nordic trade unions in general, to be under the impression that my ETUC mandate will turn the ETUC upside down, in its policies because I come from a different geographic area than John.
Yes, there will be differences with John…I don't look like him…I am likely to have different reactions and….I will do it my way as Frank Sinatra would have said; I would mention another unfortunate difference: I do not have his fantastic sense of humour but I am working hard on that. Hopefully I will catch up within a relatively short period of time.

Another difference is that I am French and, even worse -or even better!-, from the south of France, and France, for Finland, is very much south; so I am south of the south for you.

But there is one thing you can be sure of: The General Secretary you elected is not going to carry one single approach, one single view about the role of the ETUC, about its main tasks and about what the European union is and should be.

But there is one thing you can be sure of: The General Secretary you elected is not going to carry one single approach, one single view about the role of the ETUC, about its main tasks and about what the European union is and should be.

I will exert my experience and use my personality as I did in my own European Federation to keep trade unions in Europe together for social Europe ; showing the way when necessary.

But let us not hide it. There are differences in the way European trade unions want to respond to the reality of European integration, and to the reality of a European labour market.

This is not surprising at all. There are different styles of trade unions. Trade unions reflect historical and cultural realities which must be recognised and respected. But we all have in common the aim of promoting and defending our members’ interest, of making the European Union a better place to live and to work in.

The ETUC has advanced united; This unity will continue and be reinforced under my leadership.

We are at a time where, in an economically integrated Europe, people, goods, capital and finance circulate freely.

Like SAK, I am amongst those who like it and believe that this development is more positive than negative for our future, and the future of the next generations.

Indeed, I cannot see how a timorous withdrawal behind our national borders could offer any sort of constructive solution to the workers we represent.

Indeed, I cannot see how a timorous withdrawal behind our national borders could offer any sort of constructive solution to the workers we represent.

The temptation exists in Finland. We saw it with the development of the “true Finns” party who won many seats in your last election.

This temptation exists also in many other European country. This reaction is understandable. In time of crisis, there is a reasonable level of self-protection to be achieved. But self-protection should not make us blind to present and future realities.

A return to protectionist barriers offers no future. It only prepares the foundation for increased nationalists, populists and xenophobic social movements. We are seeing this happening with fear and dismay in many European countries, including your own.

Our economies cannot survive by shutting themselves off from the outside world; in the same way the trade union movement cannot survive if it limits its perspective and action to its border. Our future is a joint future: we must organise, we must coordinate, we must work together at national and European level.

Our economies cannot survive by shutting themselves off from the outside world; in the same way the trade union movement cannot survive if it limits its perspective and action to its border. Our future is a joint future: we must organise, we must coordinate, we must work together at national and European level.

An integrated market is a great challenge for trade unions because it goes hand in hand with a growing integration of the labour market.
The damageable decisions taken by the European court of justice in recent years brought to the fore with clarity how much an economically integrated Europe could not be split from the existence of a European labour market.

If people circulate freely and work freely all over Europe, we are bound to have comparisons and mutual influence between countries. I would go much further : we are bound to be confronted with pressure to get workers competing on wages and working conditions. This is exactly what trade unions have always wanted to avoid.

The most vivid example of this development is the way comparison on wages and wage formation systems could be conducted under the Euro Plus pact. The key element government want to consider is unit labour costs. From that element of comparison, a number of important economic, social and wage policies will be derived at national level.

The most vivid example of this development is the way comparison on wages and wage formation systems could be conducted under the Euro Plus pact. The key element government want to consider is unit labour costs. From that element of comparison, a number of important economic, social and wage policies will be derived at national level.

I know. Your economic and social model is remarkable. Finland is much better off in economic and social terms than most European countries and Finland does not fear such comparison. Finland has a solid trade union tradition; with constructive negotiations with employers. You also discuss macro-economic challenges with your government and try to find the right long-term solutions. All this helps to protect you from negative developments.

But does this isolate Finland? I don't think so. Finland is integrated in the European economic system and is depending on it.

Consideration of unit labour cost, wage negotiation systems are currently part of the economic governance package. This will have an impact on you as a country and as a trade union as it will have on all EU countries.

This is why the last ETUC congress considered that there was an urgent need to examine the full implication of the Euro plus pact and its provisions on pay, which are likely to introduce a strong element of wage competition.
The setting up and implementation of an effective EU economic governance will necessarily enhance the role of the ETUC and the need for stronger coordination between us.

This is why the last ETUC congress considered that there was an urgent need to examine the full implication of the Euro plus pact and its provisions on pay, which are likely to introduce a strong element of wage competition.
The setting up and implementation of an effective EU economic governance will necessarily enhance the role of the ETUC and the need for stronger coordination between us.

We might be asked, in the future, to take a pro-active part in the EU macro-economic dialogue. What will the ETUC say and do if asked?
My current view is that we should be prepared for it and consider positively such a responsibility and involvement.

In the meantime, there is one pressing message the ETUC must carry: it is that austerity measures of the type recommended are not the solution for returning to growth and employment.

Our sisters and brothers workers and trade unionists in Ireland, Greece, Portugal, UK, Spain, Hungary, Romania etc...are being put under very severe austerity measures, cuts in pay, cuts in public services, cuts in minimum wages, intervention in collective bargaining.

The argument is that their country should return to balanced public accounts; this would justify the cuts.

Obviously the aim is right. Going back to balanced public accounts is the right objective. Our Greek, Irish, Portuguese colleagues agree with that. The question is how? The cuts in wages and in public services, will severely affect consumption, therefore growth, therefore employment.

The solution for a return to balanced public account is not to be achieved in three or four years. It is to be achieved on a much longer period.

And why should the focus be on pay? Many other fronts on the income side of the balance sheet must be addressed with vigour: fair taxation and doing away with tax havens, a financial transaction tax, fight against illegal and undeclared work. Public Investments financed by European project-bonds should also be the order of the day. We also need Eurobonds, to offer reasonable interest rates to the Eurozone members. I know some of you are unconvinced; but I cannot see a solution to the current crisis without investment, and without a system that prevent market forces to set interest rates and the rule for the game.

President, Friends, the European integration process, the European Union is going through a rough time.

The financial crisis has triggered a monetary crisis for the Eurozone with consequences that go much beyond. It also triggered an economic and social crisis of a frightening dimension.

We are not out of these crises – plural.

The financial sector has been rescued by public finances, at the expense of tax payers' money. This is because of the so-called financial innovation policies and deregulation which took place some 25 years ago. What this innovation brought about is a disconnection with the real economy, and the real economy is also real jobs and real people. This innovation has essentially served one purpose: the financial sector was making money for itself, for greedy an immoral bankers and traders.

The financial sector has been rescued by public finances, at the expense of tax payers' money. This is because of the so-called financial innovation policies and deregulation which took place some 25 years ago. What this innovation brought about is a disconnection with the real economy, and the real economy is also real jobs and real people. This innovation has essentially served one purpose: the financial sector was making money for itself, for greedy an immoral bankers and traders.

Our key concern is to make sure that this financial crisis cannot happen again.

Therefore the core question is: has the European Union taken the necessary steps to make the financial sector safe and sound?

Our answer is no. Progress on supervision has been made, and more marginally on hedge funds. Many banks and financial institutions would see their stability shaken by a soverein debt default of Greece, Ireland, Portugal, directly or indirectly.

We must remain very strong in keeping our demands for strict regulation of the financial sector up on the agenda, although the current acuteness of the economic and sovereign debt crisis is focusing the attention elsewhere.

President,
SAK is an active and influential and very respected member of the ETUC. The Finnish delegates in our meetings do not make long speeches; they don’t speak unless they really have something to say. Unlike some other dear friends trade unionists, you have no problem in keeping interventions within the 3 minute limit!

This is very clever. Indeed, if, in the ETUC, you raise your hand, be sure that your fellow trade unionists are listening carefully, just as much as I have done, I do and will do in the future.

Delegates of SAK, Lauri, Marjaana, you offered your constructive support to the ETUC in the past. Please, continue and enhance this support.

We need you there!
I wish SAK well. Have a great congress.
Thank you for your attention.