The Downward Spiral: EU want to restrict wages across Europe

Dutch public news broadcaster has gotten its hands on a joint draft proposal (PDF) by EU bigwigs Herman van Rompuy and José Manuel Barroso on how to strengthen the EU economies in the wake of the bankers’ crisis (they don’t call it that). As The Wall Street Journal sees it their proposals “soften” the stricter German ones that had been put forward a few weeks earlier. For those of us not belonging to their target audience however these proposals, if enacted, will mean further restrictions on our ability to organise ourselves, earn a decent wage for a decent day’s work.

For example, there should be a “review of the wage setting arrangements to enhance decentralization in the bargaining process” and member states should “ensure wage restraint in the public sector”, not to mention “further opening of sheltered sectors by measures taken at national level to identify and remove unjustified restrictions on professional services as quotas and closed shops” and “overhaul of commercial legal systems to reduce red tape”, more “labor market reforms”, “tax reforms” and finally, “aligning the retirement age with life expectancy” and “reducing early retirement schemes” should also be priorities for member states.

In short, we should have less room to organise ourselves to negotiate the price of our labour, if you work for the government or in a public organisation you can expect even less sympathy from the EU than from your own government, less protection against (unfair) competition, less legal oversight of business, less protection against being fired, more money for fat cats and less for us and finally the chance to work until we die as retirement ages keep creeping up.

Welcome to the downward spiral. Not mentioned: tackling the obscene bonuses and salaries the economic wreckers we laughingly call bankers still “earn”.

Strikes in Saudi Arabia

John Molyneux reports on a strike in the financial heart of Saudi Arabia:

I went last Thursday to my workplace, and I found out that there were over 3000 workers demanding their rights before they called a general strike in the construction site in Saudi Binladin Group. The workers were very angry, there workplace is one of the largest construction project in the country, which worth SR.100 billion. However, they live in a terrible conditions, one of the workers was telling me how he was living: “I live in a room 4m x 3m with 8 people, and for every 10 people there is only one toilet”. Another Egyptian worker was telling me about the working conditions and the restriction of religious freedom: “those are Zionists, they don’t even allow me to pray on time!!”, and another worker was speaking about the water at the site, which is infected and full of filth and insects: “the managers wouldn’t even wash their hands with it, but for us we have to drink it because it is the only drinking water at the site”. The others talked about the delayed salaries and the unpaid overtime: “can you believe that some of the workers here are paid only 700 riyals a month, and I am paid 1000 riyal, how would we survive??”.

It’s always about money: if it looks like it isn’t, look closer

Gin and Tacos highlights one of the lesser known parts of the Wisconsin emergency budget repair bill, one that would let the governor sell off public infrastructure at fire sale prices:

16.896 Sale or contractual operation of state-owned heating, cooling, and power plants. (1) Notwithstanding ss. 13.48 (14) (am) and 16.705 (1), the department may sell any state-owned heating, cooling, and power plant or may contract with a private entity for the operation of any such plant, with or without solicitation of bids, for any amount that the department determines to be in the best interest of the state. Notwithstanding ss. 196.49 and 196.80, no approval or certification of the public service commission is necessary for a public utility to purchase, or contract for the operation of, such a plant, and any such purchase is considered to be in the public interest and to comply with the criteria for certification of a project under s. 196.49 (3) (b).

Noted in comments, a nice added bonus:

“(c) If the department sells or contracts for the operation of any state−owned
heating, cooling, and power plant under sub. (1), the secretary may identify any full−time equivalent positions authorized for the state agency that has operating authority for the plant, the duties of which primarily relate to the management or operation of the plant, and may decrease the authorized full−time equivalent positions for that state agency by the number of positions so identified effective on the date that the state agency no longer has operating authority for the plant.”

Meanwhile on the other side of the Atlantic, David Cameron is helping Middle East states on the road to democracy by selling them weapons:

So, following Cameron’s logic, it’s cool to flog things that kill people to countries as long as they’re on an ‘open and participatory’ trajectory. If people get killed or maimed on the journey? Let’s not think about that. That British weapons seem to be being used to prevent states becoming ‘open and participatory’ rather than being used to usher in democracy and universal values has passed the Prime Minister by.

Cameron can point to testimonies from satisfied customers like Khadaffi, who is using British bullets and tear gas to put down his people’s longing for democracy. Money trumps morals and has always done.

Mr Blair goes to Tripoli

Tony and Khadaffi in better days

Jamie reads the close ties between Blair and Khadaffi back in the record:

Libyan sources insist, however, that Blair has visited Libya half a dozen times since stepping down as P.M. (Doyle declines to comment on this assertion, but does say that Blair visited Libya once in the 18-month period ending November 2010.) But Blair’s employer, J.P. Morgan, does have commercial relationships with Libya. Three senior British officials, speaking on condition of anonymity, say that Blair has made numerous trips to Libya since leaving Downing Street, at least partly on behalf of the bank. “The Blair magic still works with Qaddafi,” one of these officials observes. “Qaddafi will drop everything to see Blair.” Saif al-Islam, Qaddafi’s probable heir, said last summer that Blair was “a personal family friend” and added that Blair had visited Libya “many, many times” since leaving office.

One such visit took place in June 2010. “His plane landed at Mitiga airport”—a few miles east of Tripoli and used by V.I.P.’s—“and a car took him straight to a minister with whom he had private business,” according to a well-placed source. “Then he went straight to Qaddafi.” There he briefed the dictator about what to expect from the new British coalition government led by David Cameron. Afterward, he spent the night at the British ambassador’s residence.

Neither Blair nor the bank will say anything about what he does to justify his salary, either in Libya or elsewhere. Executives at other banks with Libyan interests say that J.P. Morgan now handles much of the Libyan Investment Authority’s cash, and some of the Libyan central bank’s reserves.

Original article here.