Global Financial Crisis-Dr MK Pandhe

GLOBAL FINANCIAL CRISIS AND RISING WORKING CLASS STRUGGLES


- Dr. M.K. Pandhe

The global financial crisis in the capitalist world has convincingly shattered the dreams of those who advocated that capitalism alone can solve the problems faced by the people all over the world. Even the advocates of globalization had to admit that the crisis was due to the greed of handful top business tycoon who made them selves super rich by making the companies bankrupt.

Packages have been prepared to bail out these bankrupt companies and advocates of privatization had to argue for nationalization of toxic assets created by greedy capitalists. Despite spending trillions of dollars the global crisis has not seen the bottom level.

Working class all over the world has to bear the real brunt of the economic melt down. ILO has estimated loss of jobs to the tune of 5 crores as a result of this crisis which was estimated to be worse than 1929-30 global economic crises. However, this is gross under estimation. In India , to Associated Chamber of Commerce has estimated the loss of jobs would be about one crore! In U.S.A. alone the loss of job is estimated to be more than 30 lakhs so far and more loss of jobs is forthcoming.

The wage cut and deteriorating working conditions are being unilaterally imposed in several countries in the name of cutting costs. Lay offs and closure of units have become the order of the day. Social security benefits are being curtailed while even unemployment insurance schemes are under severe attack. The T.U. rights of the workers are grossly undermined to prevent working class from organizing resistance struggles against capitalist offensive.

Protest actions in India are on the rise. The CITU organized an independent demonstration on 20 January 2009 before Parliament which was attended by about 10 thousand workers. The demonstration of the Sponsoring Committee on 18 February 2009 was also participated by over 30,000 workers. In both the demonstrations the attacks on the working class due to global capitalist crisis was sharply condemned and relief to the working class was demanded. The struggles of the banks and insurance employees against further entry of foreign capital and privatization were also massive. The BSNL employees have conducted nationwide struggle against concessions given to MNCS in telecom sector. The Central Government and defense employees struggle against injustice done to them by the Sixth Pay Commission acquired a nationwide character. The unorganized sector workers, ASHA, Mid Day Meal workers have also launched protest actions against deteriorating living conditions.

MILITANT ACTIONS BY FRENCH WORKING CLASS

United movements of the working class in France resorted to massive actions on 29 January 2009 in protest against President Nicolas Sarkozy Government’s pro-capitalist steps in handing economic crisis in France and demanding pro-worker steps to grant relief to the workers rendered jobless. A countrywide strike was also observed against the so-called stimulus package which only helped the big financial shacks.

The militant struggle of the caterpillar workers at Grenoble in the first week of April this year attracted attention of the entire France . The workers while protesting against lay-offs and job cuts detained 4 managers for more than 24 hours while angry protest demonstrations were held by the workers against the policies of the management. This was the third time the workers resorted to such action.

Again in April in South Paris at 2M plant the workers detained the boss of the factory for two days to protest against the job cuts. A similar resistance struggle is spreading all over France .

On 19th March again another untied nationwide strike was organized in France which was much bigger action than the one organized in January last. The strike was in protest against Sarkozy Government’s anti-working class policies. According to reports over 30 lakh workers participated in demonstration held all over France . A special feature of the rallies on the day was the participation of general public in opposing Sarkozy’s policies.

Several hundreds of youth clashed with the police who were trying to obstruct the million strong march.. The Sarkozy Government gave 40 billion Euro package for the rich capitalists but no relief to the workers. The strike struggle was led by CGT the largest trade union of France .

The strike wave spread in French colonies. In Guadeloupe , a Caribbean island owned by France went on general strike demanding higher wages etc. from 20th January 2009 . The strike was united and was declared against “profitation” (combination of world profit and exploitation). The strike paralyzed the entire economy of the Island . In France , 65,000 strong demonstration was organized in support of the strikers demands. In Paris , on 19th January 20,000 workers organized solidarity demonstration.

On 16th February Sarkozy Government sent 5 thousand riot police to break the strike. The Govt. arrested thousands of workers but had to release them due to pressure of protest actions in France . After 44 days of strike on 4th March 2009 Government had to accept the major demands of the strikers and it was victoriously settled in favour of the workers.

In Martinique , another Caribbean island went on indefinite general strike on 4th February 2009 . Twenty five thousand strong demonstration was organized in support of the strike which parlayed the entire activity in the island. Several clashes took place between workers and police in the face of repressive action by the police. The workers achieved their demands as a result of strike.

Mass protest actions have been reported by workers in other French possessions in Pacific and Indian Ocean and in French Guyana ( Latin America ).


PROTEST AGAINST G-20 MEETING

A meeting of G-20 countries was held in London on 1-2 April 2009. On eve of the summit an international solidarity demonstration was organized on 28 March in which over 150 unions of different countries participated. Tens of thousands of participants shouted slogans “Down with Capitalism”, “Put People First” “Workers of the world united” “Drop the debt” “Smash Capitalism” “Fiscal Stimulus to create and preserve jobs”.

On 1st April against when G-20 meeting began a massive demonstration as organized before Bank of England workers broke police cordon and entered the bank premises. Workers expressed their anger against the policies of globalization.

In Germany in Frankfurt 15 thousand workers demonstrated shouting slogan “We will not pay for your crisis”. A coffin of capitalism was carried by some demonstrators saying it was time to bury capitalism. In Berlin several thousand workers joined the demonstration chanting slogan against globalization and capitalism. In Vienna, capital of Austria, 6500 workers demonstrated in the city centre carrying signs reading, “Capitalism Can’t be reformed” and condemned globalization policies. In Geneva , demonstration was participated by 200 persons who shouted slogan against capitalism and asking for change. In Rome about 6000 workers demonstrated in front of banks, insurance companies and estate agencies and threw eggs and smoke bombs at their offices. In Paris, several hundred protesters dumped a pile of sand outside the city stock market to mock island tax havens and had demolished it to express their anger against tax frauds.

WFTU CALL FOR ANTI-GLOBALISATION DAY

The World Federation of Trade Unions gave a call for observation of April 1, the day G-20 Summit scheduled to be held in London , as Anti-globalization Day all over the world. WFTU affiliates in different countries held rallies, processions and protested against the attacks on the working class in the wake of Global financial Crisis. In India the day could not be observed in all major centres due to prevailing Parliamentary election. However, meetings were held in Kolkata and Delhi to explain how capitalism has miserably failed and emphasizing that the working class should strengthen its struggle to destroy capitalist system and fight for establishment of a socialist society.

In Athens , where the WFTU headquarter is, a big demonstration was held by WFTU affiliates in Greece to protest against capitalist attempts to pass on the burden of the crisis on the working class. Rallies have been held in Cyprus , Syria , Africa and Latin American countries as a part of the observation of the protest day.

FERMENT IN LATIN AMERICA

A powerful upsurge is observed among the countries in Latin America where the working class is at the forefront in the struggle against U.S. imperialism. Most of the Latin American countries have openly opposed economic blockade against Cuba . The global financial crisis has severely affected the Latin American countries and job loss is adversely affecting the livelihood of workers. Massive demonstrations have been organized in Caracas , Sao Paulo , Buenos Aires , Santiago , Lima and other cities condemning globalization and opposing job losses for the workers. Voices to oppose capitalist system itself were also raised in these demonstrations. Militant trade unions are emerging in several countries posing serious challenge to the supporters of the policies of globalization and class collaboration.

The success of the Left wing forces in Nicaragua and El Salvador has given a powerful momentum to the anti-imperialist working class movement. The working class of Mexico is also opposing attacks on T.U. rights by the right wing Government. In Columbia , the trade union struggle against kidnapping and murder of T.U. leaders by Government sponsored armed gangs had intensified with solidarity movement in all the Latin American countries. The remarkable developments in the entire Latin American countries are inspiring the working class all over the world in their struggle against global capital.

RISING STRUGGLES IN EUROPE

Forty thousand workers in leading automobile manufacturer in Germany Volkswagen demonstrated in first week of April against European unions plan to scrap German law which gives protection to indigenous industry as a consequence of financial market capitalism. The trade union IG Metal criticized the policies of globalization and called upon the workers to intensify the struggle. Pro-globalization unions are also compelled to join the struggle due to deteriorating economic conditions of the working class.

In Iceland , long drawn protest movement by the trade unions against job losses and rising prices developed in February 2009. Due to collapse of three major banks consequent to the global meltdown, the agitation of workers was intensified since all the pension funds were deposited in these banks. The Government was compelled to nationalize all the banks to save the workers pension funds.

In Ireland , nearly one lakh workers marched in Dublin on February 21, 2009 in protest against Government announcement to cut back pay and pension benefits of public sector workers. “We won’t pay for the Greed of the Super Rich” was a leading banner in the procession. The Government had to nationalize leading bank. However, workers have threatened strike action after April.

The protest actions are reported even in Eastern Europe . Thousands of workers have taken to streets in Russia , Poland , Hungary , Latvia and Bulgaria in protest against cut in social security benefits.

In February 2009 massive demonstrations have taken place in Kiev , capital of Ukraine , when banks imposed restrictions on withdrawal of the money from the bank. The workers put up a tent in the city centre of the town demanding resignation of the Government. Truck drivers join the agitation by parking their trucks on the road and blocking the traffic.

In Kazakhstan on 10th December 2008 the workers in a metallurgical plant were laid off without notice when their back wages for several months were not paid. The workers went on indefinite hunger strike for several weeks and the struggle was supported by other workers which compelled the management to pay all the back wages.

In Portugal in January and February 2009 the teachers organized two nation wide strikes protesting against cut in Govt. funding for education. In Romania the workers organized protest against lay off by automobile companies. Several protest against lay offs have been reported in Japan and Indonesia .

Though the impact of crisis is most severe in U.S.A. the trade union resistance is extremely weak since dominant trade union leadership is not effectively opposing the capitalist offensive. As Detroit Workers Voice Discussion Group meeting on March 8, 2009 noted,

“The present economic crisis came upon us at a time of ebb in the working class movement. Strikes and protest movement have been at a very low level for a number of years. And now the workers are being told that there’s nothing can be done except grin the bear the lay offs, cutback in social services, and the handling out of hundreds of billion of tax dollars to the bankers, auto executives, loan sharks and speculations who have gambled and lost there own, and the U.S. although there have been small protests, and there are rumblings on the horizon. One thing that might encourage us to look around the world and see how the working people in other countries are responding to the crisis”.

Spontaneous protest strikes actions of the working class in U.S.A. are called “wild cat or unofficial” action and generally are not supported by the unions. On 12 January 2009 a militant demonstration was organized by automobile workers outside the Detroit Motor show opposing wage cut and curtailment of other benefits. General Motor, Ford and Chrysler have already cut more than one lakh jobs during the last 3 years. Though GM and Chrysler have received so far $4 billion relief package from the Government and another trance is forthcoming.

The trade union leaders however are only negotiating to reduce the suffering of workers. However, the condition of the bail out package is that the loan will not be given it the workers go on strike. The automobile owners have appreciated the stand of the union leaders for not resorting to strike action.

In the midst of growing class struggles all over the world the working class will organize rallies and strikes in all countries, which will certainly reflect the growing militancy in the trade union movement.

The class collaborationist leadership in various countries are finding it extremely difficult to carry forward their discredited policies among the workers.

The global financial crisis has created objective conditions for the militant trade union movement to expose the fallacy of the superiority of the capitalist system. The idea that capitalism can be reformed is not finding adequate number of takers in the working class movement.

However, there is urgent need to educate the working class that the alternative to capitalist crisis is only the establishment of the socialist system. The abolition of exploitation of man by man can be achieved only under socialism.

The deteriorating standard of living of the working class all over the world is resulting is growing discontent among them. What they need is effective leadership to organize their struggles that will hit the very existence of capitalist system itself. According to reports even the working class in former socialist countries are now realizing that they lost heavily after the dismantling of socialism in their country. The new trade unions are emerging to oppose the capitalist system and their strength is growing with deepening of the capitalist crisis.

Let the future movements reflect the firm determination of the working class in all the continents to resist capitalist attacks to oppose all imperialist machination to subjugate the world and fight for building a socialist society which alone can guarantee genuine liberation for all the toiling billions in the world.