• The German model is dead!
Manuel Kellner
For many years, Germany was presented as a model for the other European countries to envy and try to emulate. The economy was dynamic, the currency was strong. The trade unions were strong, but moderate. They operated in a framework of social partnership, which enabled Germany to avoid social crises, and cushion the effects of mass unemployment.
The massive June 15th demonstration against the Kohl government's austerity offensive is a sign that we are witnessing the last days of the "German model." Kohl is firmly supported by the employers organisations. And the demonstration in Bonn was organised by the Trade Union Confederation (DGB) and the other social movements.
• The unions estimate that there are almost 7 million unemployed workers in Germany (official statistics claim there are "only" 4 m.)
• The industry of former East Germany (GDR) has been destroyed. There was no growth in the east's economy in the first three months of this year. Unemployment is higher than in the west of the country, and the standard of living is noticeably lower. Average wages are still only 85% of the west German level. Germany, the champion of monetary discipline, no longer meets the Maastricht criteria for monetary union!
• The government has made unprecedented attacks on a number of social gains, coupled with rebates, grants and tax cuts for the rich and the employers. All this in the name of "saving money." The employers are more and more aggressive. They increasingly demand wage cuts, and total flexibility.
• The Social Democratic Party (PDS) has not been perceived as a real opposition party for a number of years now. It presents itself as little more than the junior partner of the conservative goverment. The Greens have adapted to the demands of "the system." Their ecologist and pacifist image is less and less credible. The former east German Communist Party, reformed as the Party of Democratic Socialism (PDS), is in a contradictory position. On the one hand, it needs to play the "rebel" in order to boost its support. But at the same time, it seeks to moderate its image, and demonstrate its willingness to take part in local and regional governmental coalitions.
It was Klaus Zwickel, President of the 2.7 million-strong metalworkers union IG Metall who first proposed the "Pact for Employment," offering to limit wage demands in exchange for the creation of 330,000 new jobs over three years, better conditions for apprenticeships, and the maintenance of certain social benefits. He did so without the slightest consultation of the rank and file.
The "round table" of unions, employers and goverment promised "two million new jobs by the year 2000". All this without proposing any concrete measures.
The trade union federation (DGB) signed a common text with employers and the government ("Pact for employment and for maintaining Germany as a production site.") For the first time, the unions placed themselves within the neoliberal coalition. They also agreed to a 3% cut in unemployment benefits (the government had initially proposed a 5% cut).
But once the regional elections were over; the govermental parties were no longer so determined to maintain even this co-operative relationship with the unions. The government arrogantly broke the Pact for Employment, and announced a new 50 billion DM cuts programme, half to come from the federal budget, and half from the Länder (regions).
The DGB abandoned the "round table." Since the end of April, the leaders of most sectoral unions have been supporting the development of what they call "a pact from below." In other words, mobilisation, but in a limited and tightly controlled fashion.
The rank and file dynamic has been both towards the autonomous organisation of this mobilisation, and towards a critique of the trade union leadership. There are also a range of student and trade union left initiatives against unemployment and marginalisation. There is now a debate in the unions on the question of a political strike, or even a general strike against the govemment.
There have been conflicts over the collective agreements in several sectors (textiles, chemical, steel, civil service), which have mobilised resistance against the most radical demands of the goverment and the employers. But the unions have accepted salary moderation (the average wage increase has been only 1.8%) without, of course, any of the government and employer concessions Zwickel promised from the Pact for Employment.
The Bundestag (Parliament) will soon begin to debate the latest austerity proposals. This is the moment to build on the June strikes, and construct a powerful, inter-sector movement. If we can do this by the time everyone comes back from their summer holidays, we might be talking about the beginning of a transformation of the balance of forces between labour and capital in the world's third largest economy! *