The ERIS Quarterly Bulletin is being produced to provide Trade Unionists with information that will help them make sense of the pressures and opportunities working people face in Europe.
ERIS recognises the dangers and challenges of populism to working people and the dangerous anti-democratic movements and ideologies that underpin and finance populist propaganda. Labour Movements have been the bastion of tolerant open democracies in the world and ERIS will use this bulletin, its meetings, research, information exchanges and other activities to continue to pursue European wide labour movement collaboration.
The contributions have been reviewed by the editors and may be subject to very minor editorial alterations, but are largely the views of the contributor. Contributors are drawn from across Europe and will have given talks or supported ERIS meetings, events and research. ERIS is not endorsing any individual article. The editorial Board will oversee the general content, direction and source of contributions.
Editorial Board: Tim Brooks, Bryan Hulley, Rob Martin, Bob Lanning, Janet Wall
Editors John Merritt and Basil Bye
Summer edition special notices:
John Donne Meditation 17; Devotions Upon Emergent Occasions written in 1624
No man is an island, entire of itself. Each is a piece of the continent, a part of the main.
If a clod be washed away by the sea, Europe is the less, as well as if a promontory were, as well as if a manor of thine own, or of thine friend’s were.
Each man’s death diminishes me, for I am involved in mankind.
Therefore, send not to know, for whom the bell tolls, it tolls for thee.
ERIS does not have an Island approach and we will continue to work with brothers and sisters across Europe to resist the dangers to Britain and Europe of a bad Brexit.
Following the result of the Referendum on 23rd June, and now facing the UK’s withdrawal from the EU, ERIS is as necessary as ever. In support of our unions defending and advancing the interests of their members we will:
• Monitor the long period of negotiation to exit the EU;
• Co-operate with European colleagues to maintain and develop standards of worker protection;
• Meet and learn lessons from unions in the European Economic Area, eg. Norway;
• As the UK continues to be a valued member of the European TUC ERIS will continue with exchanges of people and information;
• As the UK continues its membership of NATO ERIS will continue to develop links with unions in the defence industry, both private and public (MOD);
• UK membership of European Works’ Councils continues, so ERIS will continue to support UK unions’ EWC representatives;
• Multi-national companies will continue within the EU and ERIS will support union exchanges in these companies;
• ERIS will research and co-operate with Solidarity Economy organisations including public services in promoting worker participation and economic, social and environmental sustainability across Europe
• Cheaper and nastier treaties, eg. TTIP, continue to undermine workers’ interests. ERIS will continue to support opposition to such treaties;
• A UK Conservative Government will continue to work for a smaller state opening our public services to multi-national companies. ERIS will work with unions in European wide opposition to the attacks on public services;
• ERIS will support the development of a union plan of action to influence negotiations and the creation of a democratic Europe.
• ERIS remains committed to working with trade unions in the UK and in Europe to defend workers’ rights here and abroad and to fight for a social Europe that will protect all workers and their families, irrespective of ethnic origin, nationality or work location.
60 years of the European Economic and Social Council (EESC)
By Luis Pariza Spanish Workers representative at the EESC and ERIS member:
On the 24 May 2018, the 60th anniversary of the establishment of the European Economic and Social Committee (EESC) was celebrated. I have had the honour of being a member for 17 years, between 1998 and 2016, representing the Spanish workers, appointed by the Confederación Sindical de Comisiones Obreras (CCOO).
The EESC is a consultative body of the European Union composed of representatives of workers ‘and employers’ organizations and other (Civil Society) interest groups. It issues opinions for the European Commission, the Council of the EU and the European Parliament, and acts as a bridge between EU institutions that have a decision-making capacity and the European citizens.
The EESC allows trade unions, employers and other civil society groups to draw up a formal opinions on EU legislative proposals. Its three main tasks are:
To ensure that EU policy and legislation are adapted to economic and social conditions, seeking a consensus that serves the common good;
To promote a participatory EU, giving voice to workers’ and employers’ organizations and other interest groups and guaranteeing dialogue with them;
To promote the values of European integration and foster the cause of participatory democracy and civil society organizations.
The EESC receives consultations from the European Parliament, the Council of the EU and the European Commission on numerous issues. It also carries out its own research and consultations and issues opinions on its own initiative.
The EESC Members work for the EU, and act independently of their governments. They also maintains contact with regional and national economic and social councils throughout the EU.
From my experience, the EESC has been a very important tool that trade unionists have used to defend the interests of workers before the Institutions of the European Union. That is not to say that there are not many enemies of trade unions and many who want Europe to be only a large common market that does not elaborate social and environmental standards. But the EESC promotes solidarity and cohesion and we in the European Trade Unions must continue to fight very hard to prevent setbacks.
At present we live in times of great uncertainty for the future of European citizens. During the economic crisis, with the austerity policies that have been implemented, social inequality has increased, labour precariousness and public services have deteriorated.
The United Kingdom has activated the Brexit process with a complex negotiation of as yet uncertain results though it will undoubtedly be negative for both the UK and the EU.
Nationalisms have been strengthened, xenophobia and intolerance has grown while solidarity has been reduced. It seems as if the old ghosts of Europe, which we thought were well buried, condition the policies of some governments in the 21st century and may even collapse the process of European integration.
The European Trade Union Confederation (ETUC) has warned about the risks that workers and European societies have by the destruction the progressive policies of the European Union.
On the 60th anniversary, the EESC has not limited itself to remembering with nostalgia its contributions to the construction of the European Union from a social perspective, but it is preparing new proposals so that Europeans can have a better future; These are framed by the ambition that that we live in a continent at peace, with economic progress and social cohesion, with the full protection of human rights and within a framework of sustainable development.
The current president of the EESC, Luca Jahier, in his speech before the plenary on May 24 spoke of a “renaissance” of the European Union. To contribute to this new impetus, the EESC will concentrate its work on some issues: These include; Digital transformation. Sustainable development. The reduction of carbon. The Rule of Law. The protection of the fundamental rights. Employment and social rights. Migration and relationships with people’s countries of origin. Social and territorial cohesion. The improvement of the economic and monetary union and deepening Cultural cooperation
For this, it is necessary to strengthen the role of the EESC as an EU Consultative Institution and we continue to argue for this.
Luis Miguel Pariza
Bilbao 12 de junio 2018
The Public in the German energy sector – An example: Dortmunder Energie- und Wasserversorgung GmbH – DEW21
By Ulrich Langhorst, 28.06.2018
Introduction:
The Dortmunder Energie- und Wasserversorgung GmbH – short DEW21 – is on the one hand an example of a municipal energy supply company in Germany. It essentially ensures the supply of energy and water for the people of the city of Dortmund and some adjoining municipalities. On the other hand, the co-owner RWE/Innogy SE is an internationally active actor and connected with the DEW21. This article is about the importance and role of an energy supplier in communal hands.
The DEW21 at a glance:
DEW21 supplies the approximately 600,000 inhabitants of the city of Dortmund with natural gas, electricity, heat and water. It offers services related to these products for business and private customers. In addition, DEW21 sells its products natural gas and electricity also outside of Dortmund. The company is involved in the development of renewable energies, including the construction of wind power and landfill gas plants.
In the year 2017, the company generated sales of 864.5 million euros with 1,129 employees.
The DEW21 operates the Dortmund power grid via its subsidiary DONETZ. In addition, the DEW21 is involved in other companies, among other things, for the production of renewable energies.
As a local company, DEW21 is involved in the promotion of culture, social affairs, sports and the environment in Dortmund. The supervisory board of the DEW21 consists of 18 members and is, in accordance with the German co-determination law, composed of representatives of shareholders and employee representatives.
The shareholders:
Via its subsidiary of Dortmunder Stadtwerke AG, the city of Dortmund is indirectly a majorityPartner at the DEW21. Therefore, the DEW21 is a local orientated company. The structure of the company’s ownership is explained below:
City of Dortmund:
The city of Dortmund determines the main development of the company DEW21 via the Council of the city. In addition, representatives of the Council are members of the supervisory board and the mayor is the chairman. The mayor is also chairman of the shareholders’ meeting of the DEW21.
Dortmunder Stadtwerke AG – DSW21:
Dortmunder Stadtwerke AG (DSW21) is a wholly-owned subsidiary of the City of Dortmund. The business areas of DSW21 are transport, energy, telecommunications, information technology, housing and urban development. The DSW21 owns 60.1% of the DEW21.
Innogy Se:
Innogy SE is a subsidiary of RWE AG . RWE AG is one of the largest German energy supply companies and internationally active. The Innogy SE owns 39.9% of the DEW21.
Foundation and development of DEW21:
Until the year 1995 the energy supply in Dortmund was exclusively provided via the VEW (today RWE AG). VEW was a company that was not connected directly with the city of Dortmund. With the power supply the VEW achieved good profits.
The Dortmunder Stadtwerke AG (DSW21) in turn had to cope with considerable losses from the operation of buses and railways. It was the concern of the city and its municipal utilities to contribute to the balancing of these losses by taking over the electricity business.
Since the concession of the electricity supply in Dortmund was to be re-assigned to the year 1995, the city had the good opportunity to establish its own, purely communal company with good profit maintenance. In the end, the city and VEW agreed on a compromise. In 1995 the DEW21 was founded as a joint undertaking of the Dortmunder Stadtwerke AG (DSW21) and the VEW.
The decision for a participation of VEW at the DEW21 was accompanied by fierce political discussions from the beginning on. The proximity of individual actors in the Dortmund policy to the company VEW was also in the criticism. The question remains open whether there would have been a participation of VEW without these political and individual interests.
Arguments for and against a communal company
The main argument for the participation of the VEW in the DEW21 was the securing of the jobs that VEW (and today still RWE AG) had built up at the Dortmund location.
The main argument for a purely municipal energy provider (without VEW) was the will for autonomy of the city on this important issue. The role in the energy market should be possible without international operating and return-oriented large companies in the background. The focus should rather be on the safe provision of clean energy for the citizens of Dortmund.
Merger of VEW with RWE AG:
This discussion has intensified since the year 2000, when the VEW group became part of RWE AG. With this merger was no longer the VEW, but the RWE group involved at the DEW21. With RWE AG, one of the largest German nuclear and coal power plant operators moved into the shareholder floor of the Dortmund company. This is a difficult situation in connection with the increasingly debated issue of the environmentally friendly orientation of energy supply.
At the beginning of the year 2015 the contract for the participation of RWE AG at the DEW21 was tested. The question of further participation was discussed in advance over a period of several years. The Council of the city, at the end of 2014, voted in favour of reducing the share of shares, but not forcing RWE AG out completely.
Current developments in the energy market – especially at RWE AG
Developments in the energy market in recent years are a major challenge for all utilities. In particular, large companies have not realised the impact of the “Energiewende” for a long time and must now fundamentally change their strategies and business processes if they want to continue to be represented on the market.
In the course of this, RWE AG in the year 2016 outsourced the electricity networks and sales to a new subsidiary named Innogy SE. The partner at the shareholder table of the DEW21 is currently called Innogy SE, no longer RWE AG or VEW.
However, developments in the energy market are continuing. In March this year it became known that RWE AG will sell its subsidiary Innogy SE to E.ON. In the future, the shareholder at DEW21 will be another German energy supplier in Europe. In contrast to RWE AG, E.ON has no communal connection. The identification of common objectives between a municipality and an internationally oriented company should not be easier.
DEW21 in future purely communal?
The DEW21 threatens to become a plaything of the big energy companies. The Council of the city of Dortmund, however, has it in its hands to pull out of this situation and to come to what is the purpose of the DEW21: the safe supply of clean energy for the people in Dortmund. This is best and easiest if the company belongs to 100% of the city of Dortmund. But this needs an appropriate Council decision.
Due to these developments, this question is being discussed again and the chances for real communalization are not even so bad. For the City of Dortmund it would be a good decision.
Links to Homepages:
City of Dortmund: Https://www.dortmund.de/en/index.html (in English)
DEW21: https://www.dew21.de/ (in German)
DSW21: Http://www.dsw21.de/start.html (in German)
RWE AG: https://www.rwe.com/web/cms/en/8/rwe/ (in English)
Innogy SE: Https://www.innogy.com (in German)
E: Https://www.eon.com/en.html (in English)
Macron – A personal view
By Jean Pierre Patternoster: Retired French Trade Unionist now living in Britain.
Once upon a time … that’s how fairy tales and horror stories often start; and you can guess which one it is for the French working class. I didn’t vote for Macron or the national Front. For a long time the French working class never had a real choice on the second round of the Presidential Elections. I have always had to vote against one of the candidates to try and make sure the worst of the candidates didn’t get elected.
So how did Macron get to be President? He was chosen by Holland to be the Finance Minister when he led the last last Parti Socialiste administration. Macron was portrayed as a technocrat and claimed to be ‘above’ party politics and was not part of the establishment. Where is he now? Leader of a political party and the leading figure of the French establishment!
Macron went to the most prestigious schools and went to the Ecole National D’Administration, where most politicians, high ranking civil servants and managers of French Multi-nationals and Banks attend after leaving compulsory education. When the election was called, he formed a new party which was like part ‘Lib-Dem’ and part ‘New Labour’. And he regularly claimed how much he admired Tony Blair. He promised a lot to all people and said he would unify France. Everyone would benefit. And how would he do this?
By reviewing the 35 hour week for working people, by reforming education to the disadvantage of poorer students, by introducing more private health providers and PPFI to the health service and reducing entitlement to unemployment benefits. He also wants to privatise the Railways (SNCF)which has been a jewel in the crown of French public services, like the NHS is to the British.
Most members of this party have never been involved in sustained political activity before and most of them are trendy middle class managers. Like Macron, they have a good knowledge of buzz words and how to look good in front of the media.
Since Macron was elected, he has been bent on confrontation with the Trade Unions and on breaking up public services. The biggest strikes and demonstrations have been by public service workers such as Health workers, Doctors, Care Assistants and Rail workers. His plan is not to Unify France but to divide the Unions.
Many of the Newspapers have started comparing him to a ‘King’ who has become distant and arrogant. He told one of his supporters who called him Manu to call him Mr President. He thinks he deserves a private swimming pool in his holiday retreat. Other French Presidents used the sea!
The State of the Unions and the Lost Generation:
By Lewis Bye Brooks. GMB and Student at Portsmouth University
Trade Unions find themselves in an adapt-or-die battle against an ever-changing economy and constantly shifting world of work. Since the end of the 1970’s, the British labour market has transformed from an industrialised workplace towards a digital gig economy of precarious work. This shift in the labour market creates an enormous challenge for trade unions in their drive to recruit and retain young people. Long gone are the times of unionised industries with strong shop-floor stewards and universal means of politicisation. Instead in their place exists a lonely working world of Deliveroo riders, zero hour contracts and atomised online work. Here, in this atomisation of young workers it is entirely vital that the trade unions sparks a revitalisation of unionism in order to bring in the marginalised and underrepresented young workers.
Young workers of the ‘Lost Generation’ find themselves currently trapped between a widening generational gap. Frances O’Grady highlights this in a recent TUC report; ‘In the last 20 years, the gap between what younger and older workers earn has increased by more than half. That’s because young workers are concentrated in jobs where they struggle to get the skills they need to get on in life. Also, because of a massive growth in insecure work patterns among young people – with too many concentrated in sectors where zero hours contracts and agency and temporary work are common’.
This TUC report also stresses the decline in union membership amongst young workers: ‘Trade union coverage has declined significantly during young workers’ lifetimes, with over 10 million trade union members dropping to 7 million between 1989 and 2013, marking a 14.2 percentage point decline in union membership density. Only 16.2 per cent of young workers are trade union members, compared with 24.6 per cent nationally. Fewer than a quarter have a union presence at their place of work’.
Despite holding a strong membership of nearly 6 million members, the TUC has stressed the importance of bringing in the ‘Lost Generation’. For the TUC, recruiting a new generation of union members is the movements biggest challenge in the 21st century. With nearly 90% of under 30s on low to median incomes in the private sector, but only 7.3% of these young workers registered as trade union members, the movement must immediately spark a revitalisation of trade unionism. Additionally, to some extent we must expand the praxis of the roles of trade unions in order to bring the ‘Lost Generation’ into our movement. Without this generation, we will surely decline into anonymity. The trade unions need the ‘Lost Generation’ as much as this generation needs the trade unions. By recruiting young workers into trade unions, not only do we offer legal representation, better pay and hours a strengthening of employment rights and collective bargaining but we also gain future general secretaries, delegates, organisers, stewards and a revitalised trade union movement fully equipped for the challenges of a digitalised gig economy and a constantly twisting capitalism.
The TUC’s Position:
The TUC’s most recent report ‘Stuck at the Start- young workers’ experience of pay and progression’ determines 5 key issues that young workers are currently facing;
• Young workers are disproportionately affected by wage stagnation;
• Young workers are concentrated in low-paying jobs;
• Young workers do not have access to the skills development to get on at work;
• Young workers are especially vulnerable to insecure work; and
• Young workers have no voice at work.
The TUC proposes that the government must do more to make life better for young workers, this is exampled by an increase in the national minimum wage across all age ranges, time off for training, setting up modern wage councils that require employers to act, introduction of workers rights to ensure protection against exploitation, the right to a premium for working any non-contracted hours and compensation when shifts are cancelled at short notice as well as a raise in the level of spending on public services per capita. Additionally there are two proposals for employers to take in order to ensure a better working life for young workers; investment in high quality in work training/career development and the creation of genuinely flexible, well paid, part time roles particularly for young workers with families.
In response to addressing the issue of generational underrepresentation within the trade union movement, the TUC has proposed that organising young workers is made a priority. After concluding 18 months of research on the experiences of young workers, five barriers have been identified that prevent young workers from joining a union or collectively organising, these include: ‘a sense that unions are for another time, another place (eg. public sector workplaces) or are for other people (eg. older people more established in their careers), low expectations among workers about work, and a lack of understanding that young workers are often not treated fairly, a sense of futility and resignation – the belief that nothing will change even if they raise concerns at work, a lack of trust between colleagues, which stops workers from identifying with one another and discussing shared problems’.
Most importantly the TUC encourages member unions to test and experiment with an open mind through radical new mediums. This call for a radical experimentation in campaigning and membership intake has been echoed by the TUC’s recent launch of their app WorkSmart. The app aims to help get young workers ahead in the world of work; ‘this digital service will help young workers discover what they would like to do next in work, plan how to get there and identify what they need to reach their goals’. The concept behind the app being that it will build engagement amongst young workers and inevitably lead to increased union membership which will be offered as part of the app’s service. At the same time unions should aim to build digital branches in order to retain and recruit as many of these young workers as possible.
Is the TUC’s position enough?
The TUC must be praised for realising the importance of recruiting young workers into the membership. Congress has also actively listened to the experiences of a wide range of young workers over the past 18 months. Additional praise must also be given for the launch of the WorkSmart app which could play a large role in the initial stages of trade union revitalisation. In regards to revitalisation we have also seen the recent successes of Deliveroo riders, action against Ritz Cinemas and the McStrikes. These well publicised examples of industrial action have promoted the power of unionism and led to the further politicisation of young workers in these sectors which can only make trade unions stronger. Outside of the TUC we have also witnessed the emergence of smaller unions fighting back against the the gig economy, perhaps exampled by the Independent Workers Union of Great Britain.
Nevertheless, the TUC and the broader trade union movement faced an enormous battle of which we are only at the beginning. A majority of young people still have no clue what a trade union is and what it can offer them- there is a need for trade unionism and workers rights to be encircled into the national curriculum. If Theresa May (!) is serious about workers rights, introducing them into the national curriculum should be number one priority. In regards to the WorkSmart app, the question of its significance is yet to be answered. Yes, the app will be popular amongst those already in unionised workplaces or politicised environments but the real challenge lies in making it visible to the majority of young workers.
With over 2 million different apps on the Apple Store the TUC needs to ensure that the app reaches the lost generation- perhaps this could be achieved by targeted Facebook or Youtube adverts. Finally the TUC must go further to address how it’s membership can be rejuvenated by the ‘Lost Generation’. Due to the very very nature of precarious and atomised gig economy work, young workers are often employed under temporary contracts, work in lonely individual environments or live throughout phases of unemployment. The trade union movement must therefore ask itself how can we do more to bring these precariat workers into the unions. Not only do young workers need trade unions, but trade unions need young workers. As Sophocles put: ‘Without labour nothing prospers’
Book Reviews
Flawed Capitalism– David Coates:
Coates makes a bold examination of the past 50 years of political and economic change in the United Sstates and the UK. This excellent book shows how the model of capitalism operating in the United States and the UK is flawed. It also suggests ways of putting things right. It explains why Donald Trump is President and why the UK voted Brexit. More importantly it sets out the alternatives to move out of crisis and towards a better society
Saving Britain– Will Hutton and Andrew Adonis:
The author sets out a plan to transform Britain and fight for Europe as a force for good at home and abroad. They fear a fragmented and vulnerable Europe will endanger Britain’s prosperity and security. They claim that remaining in Europe and improving the lives of people in communities shut out from prosperity is possible. They present a vision of a European Britain, the Polar-Opposite of the ‘Brexiteers’ intention to create ‘Thatcherism’ in one country. An important and interesting contribution in the struggle to change public opinion.
The Struggle for Catalonia. Rebel Politics in Spain. Raphael Minder: This book, published in 2017 before the historic Catalonian referendum that divided Spain and took place in front of a backdrop of State violence and political turmoil, is a deeply researched, detailed, well balanced yet sympathetic account of the Catalan struggle for independence. Minder sets the separatist passions of the Catalans in their geographical, historical, cultural and social contexts, as well as documenting the political developments that have created increasing calls for secession from Spain. An excellent and informative read.