Global Trade Union Statement to the G20

As G20 Leaders meet in Ontario, it is clear that the economic crisis that has wreaked havoc on the lives and livelihoods of working people is far from over. Not only is the ’global recovery’ fragile and uncertain, but in the Eurozone the financial crisis has evolved into a wave of speculation against major currencies and sovereign states. The coordinated and inclusive approach to stimulus is now being replaced by competitive and premature exit, as governments, under pressure from bond markets, move to fiscal consolidation. This risks tipping the global economy back into recession with catastrophic results.  It also threatens to trigger social unrest. Events in Greece illustrate the consequences of governments getting it wrong and failing to deliver a fair response.  It is likely to prove to be a historic mistake.

Workers around the world are experiencing the devastating impacts of rising unemployment and the threat of a decade of stagnant labour markets in industrialised countries, the entrenchment of poverty in developing countries and a lost generation of youth shut out from productive activity. Global unemployment has risen by 34 million since the crisis began, with millions more workers unable to find regular employment but who are not recorded as unemployed. The UN estimates that over 300 million new jobs will need to be created to return to pre-crisis levels of unemployment.The latest twist – deflation provoked by financial speculators – will serve to exacerbate the effects of this crisis.

Leave a Reply

Your email address will not be published. Required fields are marked *