Urgent proposals on unemployment by AKEL

Press Conference of Andros Kyprianou, General Secretary of the C.C. of AKEL

AKEL C.C. Press Office, 11th May 2014, Nicosia

 

Unemployment is one of the more painful consequences of the economic crisis. Almost every home in Cyprus today has at least one unemployed person. This is an unprecedented situation for our country, given that over time Cyprus always had a high employment rate and unemployment was relatively low.

What is certain is that unemployment is not only a scourge for Cyprus. The neoliberal policies implemented in the European Union in recent years and the imposition of austerity Memoranda have made Europe the Europe of poverty, austerity and mass unemployment.

In the Eurozone, the average unemployment rate has reached 12.1% and 11% in the European Union. Of the 26.2 million unemployed in the EU, 19.1 million come from the Eurozone member states. Furthermore, youth unemployment has already affected 5.6 million young people. What is also certain is that the armies of the millions of unemployed people were not created from one day to another. Those to blame are the ruling forces within the European Union, that is to say the European People’s Party, the “big family” according to the governing Democratic Rally party, assisted by the Socialists, who have all imposed their policies across the European Union. They are the very same circles who, together with President Anastasiades, imposed on our people the well-known decisions of the two Eurogroup meetings.

In Cyprus, unemployment soared to high levels after the Anastasiades-Eurogroup meeting decision in March 2013, due to the consequences they had on the economy. The number of unemployed already exceeds 78,000. We recorded the highest rates of rising unemployment at an EU level, as well as the biggest rates in the fall of National Production. In addition, we registered the most spectacular and enforced reduction of labour costs through wage cuts of up to 15%. At the same time, the fall in wages and the pressure exerted on labour rights is simultaneously being converted into an increase in profit margins. In other words, at the same time when shopping working hours are establishing medieval conditions and wages are becoming starvation wages, large company’s profits are stable or increasing.

All of these developments are due to the implementation of the Memorandum which through the policy of internal devaluation is leading to even greater destruction of the Cyprus economy’s productive base. It leads to a reduction in investment and consequently growing unemployment and the deterioration of the living conditions of each wage earner. A fundamental prerequisite for the country to be able to get back on the path of growth is the normalization of the situation in the banking sector, the restoration of capital adequacy and liquidity. The only way out of the current problems is the elaboration of a strategy for economic recovery and the strengthening/boosting of production, the redesigning of the economy and the promotion of specific measures for growth and development, far from any austerity policies pursued in the Memorandum.

As regards unemployment, an integrated and comprehensive policy and strategic plan is needed. Relief measures and the alleviation of the problem are needed, but it is also necessary to address and tackle in a radical way mass unemployment. What is therefore needed is the entire economy to take the path of growth and development, and ensure the exit from the vicious circle of recession – austerity.

Tackling unemployment in the concrete conditions we face today is no easy task. Sectoral policies and temporary measures cannot address the root of the problem. But these cannot be an excuse for not addressing unemployment, the need to protect working conditions and enhance support for the unemployed.

The problem of unemployment has now affected every home in our country. This is the reason why it cannot be restricted to just stating conclusions on the causes of unemployment. A coherent strategy by the Government is demanded; a strategy that goes beyond elaborating plans for the provisional restriction of the increase in unemployment, but rather focusing on the consistent tackling of the problem.

We believe that the strategic response to unemployment needs to focus on five areas of action:

• Policies and measures to create new jobs

• Investing in education and knowledge, acquiring qualifications and the training of the workforce

• Protection of work

• Reduction of unemployment and integrating the vulnerable groups of the population into work

• Social protection of unemployed

All this period we have been in daily contact with the people in every district and neighbourhood, where we experience on a daily basis the nightmare of unemployment. Anyone who claims that he/she is not shocked by the drama of a parent who cannot provide for his/her children’s basic needs because they are unemployed, are lying. But, how is this or that politician or party be telling the truth when expressing shock about the personal drama of every unemployed individual, whilst resorting just to words and no practical actions? How much truth does one say when beyond rhetoric and academic analyses about unemployment, words are not turned into concrete action? Even worse, how can one go on about the truth when instead of moving from words to actions, when policies that will increase the number of unemployment every day are knowingly being promoted?

AKEL has tabled a number of proposals to the Government with a view to promoting the strongest possible tackling of the phenomenon in the context of the Memorandum. Allow me briefly to mention some of these proposals we have submitted:

1. The setting of an annual target of 10% of the annual development budget that will be dispensed for employment and training programmes. For 2014 this would mean that investment will exceed €70 million for the creation of new jobs. By 2016 the total expenses will amount to € 200 million.

The programmes will be implemented in combination with the utilisation of Structural Funds to absorb the cohesion funds from € 726 appropriations for Cyprus for the period 2014-2020.

2. Supporting employment in very small businesses/enterprises through the creation of employment support programs for SME’s with up to 5 employees. Furthermore, the provision of tax incentives of a non-wage character in businesses with fewer than five employees to hire young workers, the long-term unemployed, as well as the long-term unemployed over the age of 50. In this context the possibility of providing some form of credit to the corporate tax or the defence tax on dividends could be studied.

3. Expansion of social care programmes to create new jobs with the participation and involvement of agencies/organizations such as Local Authorities, the Cooperative Movement, Semi-government organizations and NGO’s. Such programs could reinforce the network of children’s and nursery facilities and centres, the development of after-school recreation centres for children, and infrastructures to provide social care for the elderly, children and the handicapped, etc.

4. The Cypriot workforce should be adequately prepared for the development of natural gas with the elaboration of a national strategy for manpower needs and the development of the required knowledge and skills. In addition, a strategy is required for transferring technological knowhow from abroad to establish in Cyprus an investigative and scientific community in the field of natural gas.

5. Immediate resubmission of the two draft Bills prepared/elaborated by the previous Christofias government and which were unfortunately withdrawn by the current Government. The first Bill in question relates to providing the right to the given Minister of Labour, after consultation, to intervene also by issuing a decree expanding the implementation of collective agreements to the entire sector and make it mandatory for all the employers. The second Bill is for implementing provisions of the directive guaranteeing equal treatment with regards employment rights for all employees in the European Union, in order to avoid the abusive exploitation of cheap labour with penal consequences for those who violate it.

6. Every draft bill that reaches the House of Representatives will have to be accompanied by a report listing the impact from the proposed legislation on the work market and unemployment.

7. Regarding investment in the natural gas sector, the creation of new jobs should be introduced as a condition for undertaking a project, which will be covered by workers who are already registered in the Public Employment Service.

8. Hotels would stay open during the winter period to boost tourism and the allocation of unemployment benefit that will be replaced with a salary subsidy under specific terms.

9. Unemployment benefits in general are to be expanded beyond 6 months.

10. Those those unable to pay their debts to the banks will be excluded from the possibility of the repossession of their primary family residence.

11. Strengthening of social policy by providing free medical care and free use of public transportation for unemployed individuals. In addition, the proposal for families with two unemployed parents not having their electricity or water supply cut off in case of non-payment must be studied.

12. Financial support to unemployed parents with regards to their children’s tertiary education:

• Provision of free accommodation in student housing/halls for students with unemployed parents.

• Creation of an institution/agency to grant student loans to families with unemployed parents.

• Special arrangements should be made for families facing financial difficulties to transfer students, regardless of where they are currently studying, to Cyprus Universities

• Abolition of the cost of university entrance examinations for children of unemployed parents.

These are just some of our proposals. Recognizing that collective wisdom is always better than individual wisdom, we urge the Government to immediately call on all the political parties to discuss these proposals. There should be a collective consultation. Unfortunately, since February 2014 when we formally submitted our proposals before the Ministry of Labour, we have so far not received any reply. There was no response at all. That is why we reiterate today our call to the Government for consultation to tackle unemployment.

I also want to send a message to our unemployed compatriots. We recognize that unemployment has no party affiliation. At the same time, we know that the vast majority of wage earners, breadwinners, regardless of where they belong politically, expects from the Left to listen to proposals addressing their own problems. That’s why we will continue to call on the Government to conduct a dialogue on concrete and feasible proposals.

This is why we call on the people to support with all its strength the candidate list of AKEL in this election campaign so that abstention will not be interpreted as a tacit acceptance of the anti-peoples policies. We call on the people to vote for the candidate list for AKEL In order not to strengthen with its tolerance or vote those who are attacking working people’s rights and gains on a daily basis, killing the hope of the unemployed and who are talking about figures, forgetting that they are in fact people not some numbers. We call on the people to strengthen the force that can defend the people and Cyprus.