European social conference by Democratic Labour Federation of Cyprus (DEOK)

On the occasion of the 50th Anniversary of the foundation of the Democratic Labour Federation of Cyprus (DEOK) which coincides with the year of the first EU Council Presidency of Cyprus, 1st July -31st December 2012, the organization held a European Social Conference in Cyprus. The theme of the Social Conference was: “New and Better Jobs: Energy Policy as a Driver for Growth and Better Jobs in the South-Eastern EU Region and the Mediterranean Basin”. The conference, which became a reality due to the cooperation and support of The European Center for Workers Questions (EZA) and the financial support of the European Commission, took place in Nicosia on the 8th and 9th November 2012.

The conference was an opportunity for ample discussion and deliberation on the need for the EU to move toward new and better jobs creation, smarter and inclusive growth, all of which are targets of the Europe 2020 Strategy.

Took place in a time of such an unprecedented global and European economic crisis, meaningful and effective social dialogue lead to new ideas and decisions for Europe’s effective break-through from the crisis to recovery. An economic and social recovery built on new innovative and efficient green economy investments and renewable energy growth leading to job creation.

Trade union leaders and other participants from several European countries, including high government officials and experts, came together in Cyprus, during and taking advantage of its EU Council Presidency, to discuss new challenges and opportunities for employment growth and job creation. They discussed current and future perspectives having in mind the severe effects of the current economic crisis and the depressing scores of unemployment the EU and almost all of its Member States have been suffering since the beginning of the crisis.

The conference also highlighted the need for cooperation and solidarity of EU Member States and national trade unions with neighboring South and Middle Eastern Mediterranean Basin Countries like Egypt, Turkey, Lebanon, Israel, Algeria, Morocco. In particular, issues such as the strengthening of social values for peace, democracy and solidarity as the fundamental principles for economic and social growth for the workers and the people in EU and the Mediterranean Basin region was on the agenda of the conference.

Aims and objectives

The overall purpose of the Social Conference was to enhance social dialogue in multiple issues and aspects. In particular, the Social Conference touched upon and reinforced social dialogue priority and critical EU 2020 goals and its expected outcomes like growth and sustainable development toward the strengthening Europe’s global position. It will also deliberated on quality jobs creation, new skills and employability of workers through innovative education and training and workers mobility and migration. The Social Conference also intended to examine the potentials toward concrete results in the area of European green economy and renewable energy investments. A potential that falls within the EU 2020 strategy for measures and policies for smart jobs and building skills for the economy of the future.

In addition, the Social Conference aimed to bring together trade union leaders, as well as other stakeholders, in a valuable opportunity to have an overlook of the process and progress of the strategy, to exchange, analyze and identify convergent points, and where possible, to develop joint action plans in their effort to achieve a social Europe, an inclusive labour market, to tackle poverty, uncertainty and high levels of unemployment. Finally, the conference promoted the importance of the involvement, participation and the active role of trade unions in policy making and promoting measures to push forward the EU 2020 strategy and goals with respect to employment growth, job creation and sustainable economic and social growth.

The European Social Conference objective was to concentrate on effective, fruitful and productive exchange of views and new ideas and hopefully to generate suggestions and/or proposals upon the critical issues that the conference will deliberate. These issues included the following key topics:

  • The New Energy Map and Strategic Challenges for EU and its Neighbors in the South Eastern Mediterranean Basin
  • Renewable Energy Sources: Drivers for Growth and Job Creation
  • Getting the workforce ready and learning new skills: New challenges on education, training and vocational systems
  • The Discoveries of Energy Resources (Natural gas and Oil) in the South Eastern EU
  • Frontier: A Perspective for Economic Growth, Peace, Stability and Cooperation in the Region
  • Social and Labour Market Challenges for the Workers and Trade Union Movement
  • Cyprus Strategy and long-term Planning on Renewable Energy Sources
  • Investment and job creation in Renewable Energy Sources in Cyprus
  • New Developments Influencing the Cyprus issue and EU-Turkey relations
  • EU Neighbor Policy in the Light of Energy Sources and Needs
  • The European Union as a Common Denominator for Future cooperation and Stability in the Region.

Europe’s state of affairs – Building a better future Economic crisis - Investing for growth and jobs

The European Union is in disarray – financially, economically and socially. The sovereign debt crisis shows no signs of abating, the economy is back in recession and the social impact of the crisis is evident: unemployment, poverty, inequality and insecurity are all increasing as citizens continue to suffer the fallout from a financial and economic crisis they did not cause. The European Commission’s economic forecast has deteriorated further with the prediction that the euro-zone economy will contract further in 2012.

Unemployment in Europe remains historically and stubbornly high. As at December 2011, the EU 27 unemployment rate stood at 9.9%, representing over 23.8 million Europeans without a job. The youth unemployment rate is 22.1%, i.e. almost 5.5 million people under the age of 25, an increase from 21% at the same period the previous year.

To add to this gloomy picture, it is likely that the number of people at risk of poverty, which already amounted to 23% of the European population in 2010, has increased and will get even worse. Almost one in ten employed Europeans is at risk of poverty because they do not earn a decent wage which allows them and their families to live in dignity.

The gap between labour and capital’s share of national income has also widened further. The deteriorating employment and social situation and the need to halt this downward spiral are recognized and the emphasis must be on job creation; the focus on the difficult situation of young people, the low-skilled and the long-term unemployed; recognition of the essential role of social services and social protection systems in preventing marginalization of low income and vulnerable groups; the call for investment in education and training to raise productivity and income levels; and acknowledgment that slowing growth is hampering employment recovery and improvement of the employment rate.

The focus on youth unemployment and, subsequently, the informal growth and employment summit (including the Commission’s initiative for youth employment ‘action teams’) is, whilst long overdue, undoubtedly welcome. However, participation rates for disabled and migrant workers, who are among the most vulnerable and precarious of workers, have also been hit hard. The gender aspects of employment and the crisis, the potential negative impact on the gender pay gap (already apparent in some member states) and increasing incidents of pregnancy discrimination, must not be overlooked.

A glaring omission from the European perspective on job creation and job-rich recovery is the absence of a focus on securing quality jobs and decent work, including proposals to address low wages and in-work poverty as well as income inequality.

Investing for a sustainable economy, quality jobs and social equality

The recessionary developments in the economy call for an urgent ‘reality check’ on the economic policies being pursued and promoted across Europe. To stabilize the economy, we need to stop the negative feedback loops between the fiscal policy of austerity, the sovereign debt crisis initiated by the financial markets and the structural reform policy of social deregulation. Europe also needs to relaunch the economy, create quality jobs and fuel a self-sustained process of growth.

European investment focused on structural investments rather than structural reforms

Instead of member states competing on jobs, Europe needs to invest itself out of the crisis and out of debt by developing new sectors and economic activities, underpinned by a coherent European industrial strategy and investment in public services. This Investment Union would need to transfer the high savings surpluses of one part of the Euro Area into a structural investment policy that is focused on upgrading the economic and industrial structure, in particular, of the ‘deficit’ Euro area economies, while developing a close synergy with the ‘greening’ of the European economy.

Decent jobs with decent contracts and decent wages

If European investment is to kick start growth, it is also crucial to make that growth selfsustaining. The present policy of promoting precarious work and downwards wage flexibility must be reversed into a process of wage led growth. Fair wages must be promoted through meaningful and effective social partner negotiations and increases in national minimum wages. The European workers movement reiterates that social partners are primarily responsible for setting wages through negotiated collective agreements and that their autonomy in this regard must be respected. We oppose the policy of decentralization of wage formation systems aimed at bringing wage setting to a level where workers’ and trade unions’ bargaining position tend to be weak. The European trade unions insist on youth employment as a top priority. Young people are particularly vulnerable to precarious employment and they stress that the focus must be on the provision of quality jobs and training and not on further deregulation of employment protection legislation and fostering precarious contracts. Measures to address youth unemployment should form part of a wider strategy to create quality employment in general and be integrated into member states’ employment policies.

A social contract for Europe

The crisis, austerity, economic governance and the fiscal compact are being used as a vehicle to weaken workers’ right, interfere with collective bargaining, and dismantle our public services and social protection systems. The European trade unions continue to highlight the dangers that such unbalanced policies pose to the European social model and social cohesion. We urgently need a reorientation towards the social aspects: a social contract for Europe, giving priority to investments that promote a sustainable economy, quality jobs and social justice, while fighting inequalities. Source ETUC Resolution (Investing for growth and jobs – ETUC reaction to the Annual Growth Survey 2012), Adopted at the Executive Committee on 6-7 March 2012.

Article provided by DEOK