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Articles posted by Radical Socialist on various issues.

Egypt :Return of the military… and then?

Egypt

Return of the military… and then?

by Dominique Lerouge

From International Viewpoint

The massive rejection of the repressive neoliberal policies of the Muslim Brotherhood was reflected in spring 2013 by the biggest popular mobilisation that Egypt had know in its long history. The left forces were unfortunately not in a position to offer a political outcome finally allowing the realisation of the social and democratic demands of the revolution of 2011. That allowed the army to return on July 3 to the power that they had to abandon following the presidential elections of June 2012.

A broad repressive wave

On August 14 the army launched an offensive of wide scope against the sit-ins organized by the Moslem Brotherhood demanding the restoration to power of former president Morsi. Around 500 people were killed in half a day. In “reprisals” the next day the Islamists were accused of attempting to unleash an inter-communal war with the firing of 36 Coptic churches, followed by a series of aggressions like an attack on a Copt wedding on October 20. This led to four deaths including two girls aged 8 and 12, as well as a dozen wounded. On October 6, 2013 clashes between pro-Morsi and anti-Morsi forces led to 51 deaths and 371 wounded.

On November 4 the trial began of the overthrown president and 14 Muslim Brotherhood leaders for “incitement to murder” of demonstrators. The Brotherhood had predicted a huge response across the country, but it did not materialize. This was due to several factors:

- the unpopularity of the Brotherhood, reflected in street attacks on some of them and the destruction of some of their offices;
- the scale of the police operation put in place on that day, involving around 20,000 men;
- the most significant repressive wave that the Brotherhood had suffered since the 1950s: more than 2,000 members were arrested including the three main leaders.

It is however probable that all this will not be enough to destroy a movement which has managed to exist underground for decades. All the more so inasmuch as a great part of their economic power and their charity activities are organised in a way which makes them hard to dismantle. There is a real risk that the new regime will engage in a repressive spiral which could strike not only the Islamists but all those opposed to the regime. Some human rights activists have raised concerns on this subject. In the name of the fight against terrorism, a draft law is being drawn up which would lay the bases of a new police state, worse than that of Mubarak.

Al-Sissi future president?

The strong man of the new regime is riding on a wave of popularity acquired through vanquishing the Brotherhood. Former head of intelligence services under Mubarak, General Abdel Fatah al-Sissi nonetheless enjoys support from some of those who played a decisive role in the fall of the dictator in 2011 and the mobilizations of June-July 2013:

- A part at least of the leadership of the Tamarod (Rebellion) movement, which impelled the mobilizations against Morsi; * Kamal Abu Aïta, former president of the first independent trade union and then the EFITU federation, who has become minister of labour; * Hamdeen Sabahi, the Nasserite candidate who almost equalled the vote of the Brotherhood and military candidates at the presidential elections of June 2012, who has already said he will support Sissi if the latter contests the next presidential elections.

The risk is then real that the army of Mubarak, which has conserved its immense economic empire even under the presidency of Morsi, will recover the essence of political power.

What left alternative?

Contrary to what has happened in the past, a minority on the left has refused to play one camp against the other, courageously declaring itself “neither for the Brotherhood, nor for the army”. On this basis “The Front of the Path of Revolution” has been established by militants active in the mobilizations of 2011 and 2013. It is based on a fairly broad political spectrum including notably the Revolutionary Socialists, liberals and activists of the traditional left. The rise in power of such an orientation will depend on its ability to root itself in the essential components of the Egyptian revolution: youth and employees. It is the juncture between these two social movements which made possible the fall of Mubarak. It is on them that the continuation of the revolutionary process rests.

The action of the working class

Certainly many strikes have taken place. But most of them ended in defeat with the risk of tiredness and discouragement that this entails. One of the reasons for this is the great difficulty in developing independent trades unionism. For more than 50 years, the so called “trade union federation”, the ETUF, has primarily been an extension of the state regime into the world of labour. It was only in 2008 that the first independent trade union emerged in the wake of a massive, self organised and extended strike. Two independent federations were founded in the midst of the revolution of 2011. But they remain extremely fragile: the previous legislation not having changed, employers usually have a free hand to dismiss activists seeking to create an independent trade union.

Even if the first independent federation, the EFITU, has around 2 million members, it has derisory resources: most of its members not paying dues because dues are generally automatically deducted by the employer and paid to the old federation. And the latter continues to be responsible for the provision of social services such as health insurance! In becoming minister of labour, former EFITU president Kamal Abu Aïta notably fixed the objective of reviving the draft law of March 2011 finally establishing trade union freedom in Egypt. We will see if his friends in the government will accede to this wish. The fact that in the “committee of 50” responsible for modifying the Constitution, the two places reserved for trades unionists have been offered to fierce opponents of independent trades unionism, hardly gives grounds for optimism in this area. The two places have in fact gone to a representative of the ETUF and somebody from a phony federation set up by an employer concerned with recruiting staff for work in the Gulf countries.

Statement of Radical Socialist on the Madhyamgram Rape and Murder

Arrest the rapists and murderers and punish them

Punish rapists, not the women

Remove the Chief Secretary of West Bengal for his callous political comment

Statement of Radical Socialist on the Madhyamgram Rape and Murder
3/1/2014

Nothing has changed in matters relating to rapes and killings in India since December 16, 2012, except perhaps a degree of heightening of awareness among ordinary people, especially the youth. The terrible incident in Delhi, India’s capital, when a young woman was gangraped in a moving bus, and then she and her companion were thrown out , and when she eventually died, led to a massive wave of protests. Yet, beyond passing a law (death penalty for rapists) which many activists argue will actually prevent an increase in the number of convictions, neither Central Government nor state governments have done much. Between 16 December 2012 and the Asaram Bapu arrest (31 August 2013, when a so-called Godman was arrested after much pushing and prodding on the charge of raping a girl) there were, according to one survey, 101 cases of rapes of dalit women. Yet these did not hit newspaper headlines, did not lead to TV talk shows (possibly because the media was simply not interested in highlighting such stuff), did not lead even middle class activists to pour out in such massive numbers.

In West Bengal, there have been continuous cases of rapes and killings. The current Chief Minister of West Bengal, Mamata Banerjee, used rape on women as one of the issues when she was in opposition to the CPI(Marxist) led government. On 7 January 1993, Ms. Banerjee went to the Writers’ Building with a hearing and speech impaired girl, who had been raped, and was pregnant. Ms. Banerjee claimed that the rapist was a CPI(M) man. Mamata Banerjee was then a Union Minister and youth Congress (I) leader in West Bengal. She led a three hour demonstration in front of the Chief Minister’s chamber at Writers’ Building, the seat of the government in West Bengal. Eventually she was violently thrown out and arrested, some members of the press manhandled, and the Press Corner demolished thereafter. Mamata Banerjee vowed she would never return to the Writers – and she returned only as Chief Minister, eighteen years later.

But now that she and her party are in power, it seems that West Bengal has already attained Nirvana, or has become Paradise. From 2009, the slogan of change was what brought her to power in 2011. But just what are the changes for women?  When any problem is mentioned, she treats it either as a legacy of the CPI(M), or as a false charge manufactured by the CPI(M) or some other political opponent.

The current mobilisation is over the repeated gangrape of a young girl in Madhyamgram, not too far from the state capital Calcutta.  A 16 year old daughter of a taxi driver was gang raped. When she dared to lodge a complaint to the police, she was waylaid and gang raped a second time. This was in late October 2013. By then, a whole series of rape as well as rape and murder incidents had already occurred in West Bengal post-the change in government from CPI(M) led Left Front to Mamata Banerjee’s Trinamul Congress (TMC).  These include the rape of a woman in Park Street, Kolkata’s posh eating out area, rapes and murders in Kamduni near Barasat, Kharjuna in Murshidabad district, and other cases. The National Crimes Record Bureau gave out figures in June 2013, according to which there had been 2046 rapes in West Bengal in 2012.

The responses of the West Bengal government have been the following:
•    Try to play down the issue. Treat each case as isolated.
•    Vilify the accusers or the people who campaign for civil liberties. The CM herself did this in a live TV programme once, when she told a young women who had asked uncomfortable questions that she was a CPI(M) agent  and a Maoist.
•    If after all this there are protests, then there are attempts to threaten, victimize, and silence these protests.
•    Finally, if the case is too well publicised to be shut out, like Kamduni, or now Madhyamgram, token gestures are made, while putting pressure on the family to distance themselves from protestors.

In the Madhyamgram case, the young woman was under continuous pressure after the repeated gang rapes.  The family, originally from Samastipur in Bihar, had settled in Madhyamgram a year ago. However, they shifted to Dum Dum after some local goons threatened them with dire consequences if they didn't withdraw the case against the accused. The family say they had informed the police, but clearly no action was taken. On December 23 a close associate of the gang leader had barged into their Dum Dum residence and again threatened them following which the girl tried to commit suicide the same day. According to another version which includes her dying declaration she had not set herself ablaze. And yet, the Chief Secretary of West Bengal, (i.e., the highest ranking state bureaucrat, who is directly under the Chief Minister, who is also the minister in charge of the police force) asserted that the state had taken necessary measures. Had this been true, why did the family have to shift residence and why was it again attacked?

The Government of India is culpable, because it has done nothing but take action when the Delhi population is out on the streets. The Government of West Bengal is culpable, because it has, by denying the gravity of rapes in the province, emboldened rapists (it is also reputed that many accused in a number of rape cases are connected to the ruling party).  We protest the way governments are abdicating responsibility and thereby de facto helping rapists and murderers. We demand the arrest of rapists in every case, and justice. We demand the suspension of police officials who failed to provide assistance in the Madhyamgram case even after the first report. We demand the removal of the Chief Secretary, for whom protesting rape is “playing politics with dead bodies”.

The top ten articles of 2013 in the Radical Socialist Website

The top ten articles of 2013 in the Radical Socialist Website




The Radical Socialist website has been running for several years. At the beginning of 2014, we have attempted to take a look at what our readers are focusing on. We will examine the implications later. For now, here are the links to the top ten articles among those posted in 2013 and read by readers.


1.    The Struggle Against Rape and Sexual Assault: A View from the Left  

http://www.radicalsocialist.in/articles/gender/518-the-struggle-against-rape-and-sexual-assault-a-view-from-the-left 

2.    Greater than the Might of Armies: The General Strike of 20-21 February 2013   

http://www.radicalsocialist.in/articles/national-situation/525-greater-than-the-might-of-armies-the-general-strike-of-20-21-february-2013 


3.    Class Struggle versus Serving the Rulers and Becoming Regional Linguistic Chauvinist: The Retreat of CITU in the coming General Strike  

http://www.radicalsocialist.in/blog/522-class-struggle-versus-serving-the-rulers-and-becoming-regional-linguistic-chauvinist-the-retreat-of-citu-in-the-coming-general-strike 


4.    A Report on a Convention on Strategies for Struggle Against Rape, Sexual Harassment, held on 5 January 2013

  http://www.radicalsocialist.in/articles/statement-radical-socialist/news/516-a-report-on-a-convention-on-strategies-for-struggle-against-rape-sexual-harassment-held-on-5-january-2013 


5.    Laboratory of Fascism: Capital, Labour and Environment in Modi’s Gujarat   

http://www.radicalsocialist.in/articles/national-situation/579-laboratory-of-fascism-capital-labour-and-environment-in-modi-s-gujarat


6.    An open letter to Rahul Pandita   

http://www.radicalsocialist.in/articles/statement-radical-socialist/news/519-an-open-letter-to-rahul-pandita-kashmir-vale 


7.    Revolution and Terror     

http://www.radicalsocialist.in/articles/marxist-theory/520-revolution-and-terror


8.    Massive Sexual Violence on Women and the Collapse of Left Pretensions    

http://www.radicalsocialist.in/articles/gender/557-massive-sexual-violence-on-women-and-the-collapse-of-left-pretensions


9.    Book Review of Beyond Capitalism? by Luke Cooper and Simon Hardy   

http://www.radicalsocialist.in/articles/marxist-theory/534-book-review-of-beyond-capitalism-by-luke-cooper-and-simon-hardy


10.    Letter to Members of Parliaments: “We seek your support for our nonviolent struggle against the Koodankulam nuclear power project”     

http://www.radicalsocialist.in/articles/environment/528-letter-to-members-of-parliaments-we-seek-your-support-for-our-nonviolent-struggle-against-the-koodankulam-nuclear-power-project

Thompson, William Morris and Ecosocialist Tasks

Thompson, William Morris and Ecosocialist Tasks


Rafael Bernabe


AS I LOOK back on E.P. Thomp­son’s work and the impact it had on me, his biography of William Morris — William Morris, From Romantic to Revolutionary (1977) — stands out brighter than all other texts, including his deservedly acclaimed The Formation of the English Working Class.


It was the genius of William Morris to prefigure and express many concerns that today must be part of an ecosocialist synthesis, and it was the genius of E.P. Thompson to detect the originality and relevance of this 19th century poet, craftsman, designer, conservationist and socialist for the present.


Ecosocialism today, as the term indicates, implies a fusion of ecological and anti-capitalist perspectives. To be truly meaningful, this encounter must be not a mere mechanical addition, but a transformative integration: neither partner can or should emerge the same from the encounter.


Socialism can no longer be conceived as just the liberation of the existing productive forces from the fetters of capitalist social relations, nor an expansion of consumption as defined by them, nor as an acceleration of quantitative growth, but rather as a redefinition of quantitative into qualitative growth, and a remaking of existing forms of production and consumption, with the extraordinary scientific, technological and engineering effort that this implies.


To what extent this is already present, either implicitly or explicitly, in the work of Marx himself is, of course, a point of considerable debate. I, for one, think it is present, in many cases explicitly.


Think of the aspiration in the 1844 Manuscripts to a fuller life of the senses beyond the reduction by capitalism of all enjoyments to the joys of possession; of Marx’s description of the “rift” provoked by capitalism in the “metabolic interaction” of humanity with nature (and the duty of socialism to restore it); of the more specific denunciation of the destruction of the soil by capitalist agriculture; of the warning by Engels that lording over nature as a conquering army rules a subjugated people will bring unexpected and destructive consequences; and of the admonishment that no generation owns the planet and its resources but only holds them in trust for those that will follow, to mention just a few examples.


The writings of John Bellamy Foster have explored this extensively. Yet it must be admitted that much of this lay buried in Marx’s work until the ecological movement came along. The fact that Foster and others have had to dedicate so much effort to unearth “Marx’s ecology” is an indication of this. But independently of where we stand on that debate, the practical conclusion stands: Marxism must insist that labor’s struggle against capital cannot but have an ecological dimension, without which it cannot claim to be the bearer of a full break with the exploitive and destructive consequences of capitalism.


But this is a two-way street: The ecological movement needs to recognize that capital’s inherent tendency to enclose, commodify and consequently turn all aspects of nature within its reach into a source of private profit places it in irreparable contradiction with natural rhythms and cycles.


Ecology speaks of material limits that we must take into account, but capitalist accumulation is limitless. This refers to fundamental longterm tendencies, beyond the daily misuses of the environment by capital in the pursuit of an extra ounce of profit.


To the extent that the ecological movement fails to recognize this and to extract the logical anticapitalist conclusion, to that extent it turns its back not only on socialism but on the environment it seeks to protect. The destiny of the labor movement is as central to the future of ecologism as it is to the future of socialism.


William Morris’s Message

Where does William Morris come into this picture? It was not the relations of exploitation at the center of capitalism that first fueled Morris’s indignation, but the base material surroundings it created: its “sordid, aimless, ugly, confusion” in which “the pleasure of the eye was gone from the world.”


In his essay “How I became a socialist,” Morris proclaimed that “Apart from the desire to produce beautiful things, the leading passion of my life has been and is hatred of modern civilization…” Here, “civilization” refers not only to capitalist social relations but to many of the physical structures and formations erected by it: the extreme polarization of city and country, the degraded urban landscape, the shoddy individual buildings, the poisoning of water and air.


The consummation of such a civilization would be “a counting-house on the top of a cinder-heap.” This aversion to the assault of industry on all the senses, on nature and on the past built environment fueled Morris’s attempts to protect or revive endangered skills (book printing, decorative arts) or structures (he founded the Society for the Protection of Ancient Buildings).


Yet he went beyond this, to understand that behind this bulldozer “civilization” stood the basic tendencies of capitalist production. The “counting-house” at the top of the growing “cinder-heap” could only be dismantled by the collective hands of organized labor. He became a socialist militant.


This is a reminder of the centrality of labor for all of those concerned with the environment in all its dimensions, and of the importance of environmental, urban, engineering and architectural concerns for those seeking to turn the labor movement into the agent of a radical social transformation.


This in no way exhausts the wealth of Thompson’s William Morris. To include a personal reference: my work on the romantic anti-capitalist dimension of Puerto Rican literature is much indebted to Thompson’s discussion of the passage from Keats, to Ruskin and Carlyle (who shared Morris’s aversion to industrialism) to Morris’s own socialism, which differentiated him from them.*


One can confidently say about Thompson’s recuperation of Morris what he would have said about Morris himself: we ignore it at our own expense.

Rafael Bernabe


* From Against the Current n° 167, November/December 2013: http://www.solidarity-us.org/node/4023

Forthcoming struggles of the united Tea Workers Front

The United Tea Workers Front(UTWF) has been launched on 27th December 2013 at Siliguri, primarily to raise the issue of a living wages and related matters in the forthcoming wage negotiations in North Bengal. The tea industry, one of the most profitable, export earning sectors in India, is also the site of the worst labour conditions in the
country. With over 3500 starvation deaths in the period 2003 to 2008 in West Bengal, tea plantation workers continue to be one of the lowest paid workers in the country, with owners reaping profits at the expense of the basic needs of nutrition, health education and housing of the workers and their families. As a result of ill payment, plantation workers have been caught in a viscous circle of poverty, poor literacy and ill health, with children of tea workers ending up
in the same ill paid work as their parents and grandparents before them.



In West Bengal, wages have been kept at a precariously low level through collective wage bargaining agreements every three years. The last set of agreements, which resulted in the low wage of Rs.95 in Terai and Doars, and Rs.90 in Darjeeling, expires on 31st March 2014. The tea gardens have been violating the basic provisions of the Plantation Labour Act with impunity. Provisions of crèche, medical facilities, ambulance, and house repair have all become things of the
past. Moreover, many tea gardens of the region have also not deposited the provident fund dues of the workers amounting to over Rs.77 crores while the state government has provided full support to the garden owners by being a silent onlooker.

Calculations based on 15th Indian Labour Conference (ILC) norms and the subsequent Supreme Court judgments (Unichoy vs State of Kerala in 1961 and Reptakos Brett Vs Workmen case in 1991) provide for a balanced diet with 2700 calories per day per person and other material needs, giving workers a living wage. Using these norms, the wage per worker in the tea-gardens at current market prices should be Rs 322.

The UTWF plans to campaign and raise demands related to the payment of such a living wage before and during the next round of negotiations. The Front demands the payment of a wage that is over and above the wage calculated on the 15th ILC norms and Supreme Court orders. It insists that all wage negotiations must take place at Darjeeling for the Gorkhaland Territorial Administration and in Siliguri for the Terai and Doars regions, so that negotiations are transparent and
democratic, allowing the unions to consult their membership in a regular and realistic manner. Employers and Government must also be transparent about the manner in which calculations and deductions are being made, providing unions with all relevant documents well in time.


UTWF also demands that negotiations must be completed by 1st April 2014, so that the problem of arrears does not arise at all. All payments such as extra leaf payment (ELP), Leave Travel allowance , additional compensation etc. must be price indexed and workers must be paid dearness allowance to compensate for inflation during the term of the next collective bargaining agreement for 2014 to 2017.


As far as bigha workers are concerned , the UTWF demands the extension of all wage and non wage benefits to such seasonal, casual workers. Further, the UTWF demands that all vacant posts be filled immediately, and that management arrange for trainings so that workers can take on posts requiring special skills such as nursing, factory work etc. In
view of the manner in which employers and management continue to flout the law, the UTWF demands that punishment under the law for erring employers be made more stringent and inspection be improved.


The UTWF brings together the Terai Dooars Progressive Plantation Workers Union, Darjeeling Terai Doars Plantation Labour Union, Progressive Tea Workers Union, West Bengal Tea Labour Union, Pachim Banga Khet Majoor Samity and the New Trade Union Initiative.


The UTWF shall be launching a series of protest and campaign programmes, including deputations to all officials concerned in North Bengal, GTA and Kolkata and demonstrations in all block and district headquarters , GTA headquarters and the State capital at Kolkata. It also plans to highlight its problems before an internationally acclaimed jury in February 2014.


The UTWF also calls upon all other fraternal unions of tea plantation workers and in other sectors for a coordination to make the collective bargaining agreement of 2014 to 2017 reflect the true aspirations of tea plantation workers.

Below are the links for the press coverage

http://bartamanpatrika.com/content/nb.htm

http://www.uttarbangasambad.com/page3.php?p_no=3

_______________________________________________

LIT assessment of Argentine elections

Millions of Votes Against Government’s Austerity

Thursday, 28 November 2013 23:28

In a historical result for the so called " hard left ", the Left Front and the Workers (FIT) far exceeded the results obtained in primary elections, for senators and representatives, held in August this year.

 It got more than a million votes nationwide, a workbench with four national deputies (although now they want to rob us of the seat Olivero in Cordoba), state legislators (provincial) and councilors. The very high ratings in several parts of the country are also an achievement of this phenomenon.

This huge vote took place in the more general framework of the government’s defeat. Unlike what is said by the Kirchnerism and some sectors of the left, we don’t consider that there has been a "vote en masse for the right." What occurred was a massive punishment vote provoked by anti-workers and anti-people policy of the government, by inflation, by the agreement with Chevron delivering our natural resources. To punish the government and protest, many people used the tool they thought was best for hitting the government and, of course, not a few have fallen into the deception of thinking that Massa, Pino or Binner will comply with what they were forced to pledge: no tax over salaries, 82 % for retirees, etc. The novelty here is what we said in the beginning: more than a million workers and popular sectors have decided to punish the government, choosing an alternative of class independence and a revolutionary program to break with imperialism, capitalism and the struggle for socialism.

Undoubtedly the success we have obtained should be considered as a victory for workers and fighters as a whole, which raises the immediate task of transforming the FIT into a reference to the struggles against the looming adjustment.

Deepening crisis of the government

The grin that the government was trying to show on Sunday evening in the "bunker K" can not cover the reality: through voting, millions of workers voted against the austerity model, plunder and repression of the current government. Millions said no to inflation, wages tap, casualization of labor, layoffs and suspensions. They said no to delivering our sovereignty, transferring millions to external debt at the expense of our health and education.

Exchange of accusations and the search for "scapegoats" within the government itself are a clear demonstration of the government’s crisis, for whom the internal struggle for presidential succession has just started. The underlying problem is that this new blow falls on a government that has its President out of the political scene, currently by her illness, but mainly because the workers began to bid farewell to Cristina Kirchner a long time ago. And this weak government is the same that has been commissioned by the bosses to make the workers pay for the crisis with more and more austerity, save multinationals and imperialist powers by delivering them our natural resources.

Employers alternatives, new supporters of the government and austerity

The extraordinary vote for FIT can’t make us lose sight of millions who decided to punish the government by giving their vote to other employers alternatives. The race for the succession of Cristina puts Massa in the first position of the grid. Macri, meanwhile, launched his candidacy at the night of his election, in a demonstration with more colors than convictions. Even Fernando "Pino" Solanas and Elisa "Carrio" began to be quoted, despite their modest previous votes. Certainly other candidates will take their positions in the race for 2015.

But every employer oppositionist suffer the ills that associate them with Cristina’s government. First, because none of them have any different proposal: all are variants of the same austerity model against the workers and the people.

And moreover, they have the added difficulty of having to support the current president up to 2015, expecting her to take charge of the work piece. Therefore, as they have been doing even before the October 27, they seem very "concerned" to defend what they call "governance", ie, to ensure they continue on power until the end of Cristina’s  government.

The problem is that the workers and the people had already showed willingness to face the austerity and fight for their rights, and in this fight they are on the opposite side of the barricade. Therefore, for any employer oppositionist and supporter of the austerity and of looting and repression model, the road to 2015 will be long and tortuous.

The challenges of the FIT

After our great electoral campaign, the challenges and responsibilities that lie ahead will be even greater. Firstly, it is essential that all the forces that form the FIT, and mainly its leading parties (PO, PTS, IS), learn all lessons from the massive support received, which exceeds not only each party, but also the set of them.

The immediate task is to open the FIT to all political forces that fought together the electoral battle. The challenge we face is not the election, but prepare for clashes in the class struggle. And in this respect what matters is not the "legality" granted by the electoral justice, but rather the willingness to fight. Therefore, the criteria to define or delimit the front can not be based on this legality "law".

But it is not only the political forces of the left, but, fundamentally, of thousands of fighters who are not organized in any party, thousands of shopstewards and activists who feel as members of the "FIT" and want unity to fight. It is to them that the FIT should open its doors.

Beside the challenge of sthrentening this tool that is the FIT, we also need to overcome the electoral terrain. The responsibility given to us by more than a million workers, with their vote, means that we have an obligation to respond in every field, and especially in the forthcoming confrontation against the austerity policy. The FIT should be transformed into a tool to fight to lead the struggles and to end the influence of the old treacherous leaders in the unions and to democratize them, so that workers have a new leadership, combative and democratic.

Similarly, we need to find ways to make the new FIT parlamentarians (national and state) keep in touch with the large amount of fighters who voted for them, so that they can make their concerns and proposals known and turning these mandates at the service of the workers and people struggles.

If we progress down this path, incorporating new sectors on the basis of a program and the willingness to fight together, if we can break with the old sectarianism of the left, so often criticized, and not fall into the temptations of self-proclamation, we’ll allow the FIT to continue doing history.

The PSTU, as part of the FIT, invite you to join us for this battle. As we chanted at the celebration party held on Sunday as the electoral results were released and the election of deputies of the left, let's keep moving forward, to achieve more, and to ensure that from now on "the bosses pay for their crisis!"

USA: Manufacturing Bankruptcy – The assault on pensions



USA:
Manufacturing Bankruptcy – The assault on pensions


Against the Current


Pension theft: imported from Detroit? In giving the state-appointed Detroit Emergency Manager Kevyn Orr the green light to take the city into bankruptcy, U.S. Bankruptcy Judge Steven Rhodes’ December 3 ruling opens up a national offensive to loot public sector workers’ pension and health care benefits.


Within a week Forbes magazine, aimed at audiences who don’t rely on public sector pensions for their secure retirement, published an article proclaiming “a silver lining” to be found in the ruling. The author, Martin Fridson, believes this teaches public sector unions that it will be safer to negotiate 401(k)-type plans, which “belong” to the worker and would not figure into future municipal bankruptcies. He does not mention, of course, that such plans typically pay significantly less than the traditional defined-benefit pension plan.


The same day as Rhodes’ bankruptcy ruling, the Illinois legislature cut cost-of-living raises on that state’s plan. As in Michigan, Illinois public pension rights are guaranteed under the state constitution. No matter, according to Judge Rhodes’ ruling. They’re on the chopping block, along with all of Detroit’s material assets. The pillage is on. And the implications are staggering not only for Detroiters but nationally, as the Detroit bankruptcy ruling is considered to mark new legal precedents in previously uncharted legal territory.


To understand the politics behind Detroit’s manufactured bankruptcy, one has to unpack the essence of capitalism. It is capital’s expropriation of assets — land, nature’s resources and workers’ capacity to produce — that produces wealth. There’s also a clear policy of Michigan’s elites: After so many years of corporate downsizing and relocation, after so many years of renovating Detroit’s downtown at the expense of the neighborhoods, their “solution” is deepening austerity and abandonment for much of the city’s African-American, working-class majority.


Trending Downward


It used to be that 40% of all U.S. workers received pensions. Although corporations have cut that figure in half over the last 30 years, more than 80% of all public sector workers still have defined-benefit pensions. Studies have shown that these workers make less than private-sector workers, but in this era of neoliberalism, it’s the public sector workers who are on the hot seat.


The attack on pensions, which began in the corporate sector, is spreading now to a full assault on public workers. Teachers and other municipal workers are demonized as lazy and overpaid. Since proportionately more African Americans and women are public sector workers, the racism and sexism that infects our culture is an additional factor in viewing these workers as “undeserving.”


State pension funds currently top $2.6 trillion. In 15 of those states, public employees do not receive Social Security so they are entirely dependent on pensions and their own savings in their retirement. These include California, Illinois, Massachusetts, Ohio and Texas. In Detroit, uniformed (fire and police) workers aren’t in the Social Security program.


When the economy heated up in the 1990s, states were advised that they didn’t need to contribute to the pension funds; high interest rates alone were enough. Since accounting standards for public sector pensions are lax, officials were able and delighted to act on that advice! Then, when the bubble burst, many states skipped their contributions as a way to balance their budgets.


As a result, two-thirds of state pensions are now considered underfunded, meaning that they do not have enough money to cover all the long-run claims of their work force. Supposedly Illinois is about 67% funded while New Jersey is at 33% and Massachusetts stands at 27%.


This underfunding, the result of bad advice by high-paid financial advisors and banks and indolence of state legislatures, also seems to be a convenient setup for the next stage of making working people pay. In April 2013 Moody’s, one of the biggest rating companies, changed the way they evaluate pension assets. Instead of using a formula to smooth out market price fluctuations over a three- to five-year span, they will only count the current market value.


Another important change that Moody’s instituted is to assume a yearly interest rate on investments of 4.5% rather than the 7-8% (admittedly, wildly overoptimistic in the post-2008 Great Recession climate, but historically reasonable) that had been used. In a recent article Dean Baker pointed out that over a 20-year period the difference would result in a 40% decline in value. (See Dean Baker’s “The Financial Health of Public Pensions,” 5/3/13 at http://www.cepr.net/index.php/blogs....)


Next Stage for Detroit


The pensions that the city owes to 30,000 retirees and the thousands of active city workers now have no greater standing than any other “unsecured” creditor. “Unsecured” means that there is no stream of revenue, such as a tax or fee, dedicated to paying the debt. Of course, city workers for decades have contributed a percentage of their earnings, and the city has put in money toward these funds. Currently the two city pension boards control more than $5 billion worth of investments. But in bankruptcy those funds are effectively up for grabs and their boards subject to dismissal by Emergency Manager Orr.


The bankruptcy process, Judge Rhodes ruled, will proceed without interruption. Next, Orr will develop a “plan of adjustment” by early 2014 and reopen negotiations with those “unsecured” creditors, including workers, who are expected to take a haircut. In reducing those obligations, Orr would supposedly free up that money to rebuild the city’s deteriorating infrastructure. However $62 million has already been spent to pay multiple “consultants” for their restructuring proposals, including Orr’s own former law firm Jones Day.


The big question for the shock-doctrine restructurers may be how far pensions can be cut for retired city workers — many of whom barely get by as it is — without running the risk of a political or social explosion. That may be an underlying reason why Rhodes announced that he would not necessarily rubberstamp Orr’s plan.


The suggestion Orr has floated is that pensions would be tiered, with some receiving close to their current payment (an average of $19,600 for city workers and $30,000 for police and fire). For the current work force, at least those who become “vested” with three years seniority, their retirement contributions would be transferred to individual 401(k)-type plans, with limited city contributions. These workers, who have already taken a 20% pay cut and contribute 20% to their health care benefits, would be free to add to their account — if they can afford it! — and could expect a retirement benefit between 25% and 50% of their pay.


What then might happen to the pension boards, which are made up of officials and elected union representatives? The Emergency Manager’s claim that the pensions are underfunded opens the door to seize and turn them over to the State Treasurer. According to the Emergency Manager law (PA 436) rushed through the legislature and signed by governor Rick Snyder — after a referendum vote in the November 2012 election voided the previous version, PA4 — if pension funds fall below 80% of the total obligation, the EM has the go-ahead to snatch them up. Since his appointment by the Governor in March 2013, Orr conveniently skipped the city’s 2013 contribution.


The police and fire pension board maintains that it is funded at 96%, while the city pension board’s funding stands at 78%. Orr asserts that both funds are significantly less healthy, and given that he used a different formula for evaluating the funds, it’s understandable how he came to such a dire conclusion. Yet one might wonder why long-term debt features so prominently in the discussion. After all, most homeowners have a longterm debt (their mortgage) but don’t count the total amount owed when they are figuring up their yearly cash flow.


The banks — who have stiffed the city with huge fees, variable interest rates and taken advantage of lowered bond ratings to jack up the interest, to say nothing of foreclosing on thousands of financially distressed Detroit homeowners — aren’t penalized to pay for their role in creating the mess. Quite the contrary, they’re first in line for repayment, under the pretext that their loans are properly “secured” through pledged tax revenues.


A Way Out?


Demos, a public policy think tank, released a report authored by Wallace Turbeville, who examined the city’s finances and concluded that its problem stems from a decline in revenue, not from obligations to the so-called legacy costs. He points out that the $18 billion debt that Orr maintains is the city’s albatross includes both “secured” debts — such as the $5.8 billion Water and Sewerage Department debt, which is covered by the fees charged to the three million users throughout southeastern Michigan — as well as pension and health care costs. He suggests these obligations are overstated and in any case irrelevant to solving the city’s cash flow problem.


Chapter 9 allows for municipal bankruptcy when it is unable to pay its debts as they come due. According to Orr’s bankruptcy filing, the deficit is $198 million for fiscal 2014.


Certainly with the city’s longterm decline in jobs and infrastructure, Detroit is continuing to lose population — a 53% decline in employment and a 25% population decline between 2000-12.


What has Michigan done to help its largest city? Since 2011 alone the state has cut $67 million a year in revenue sharing to Detroit. (About $24 million is the result of the decline in population, but that still leaves $43 million that the city should have received.) It has done nothing to make sure commuters who work in private sector jobs in Detroit pay non-resident income taxes, costing the city an estimated $30-45 million annually.


Both Democratic and Republican governors have taken over the school system, resulting in closing 200 schools, approving for-profit charters and driving the system into debt. Governor Snyder keeps telling Detroiters that he is only “trying to help” as he appoints Emergency Managers to both the city and the school system. At the same time, Snyder has enthusiastically supported Mike Ilitch’s proposed downtown sports arena, offering to contribute some $300 million in state funds.


Meanwhile, Detroit cut operating expenses by nearly 38% between 2008 and 2013 — mostly by laying off 2,350 workers, cutting pay and reducing benefits. Pension contributions were relatively flat during this period while healthcare contributions increased 3.25% per year, less than the national average of 4%. City workers protesting the bankruptcy speak from experience when they say that they have already been fleeced.


One reason for Detroit’s fiscal debacle is the downturn in the stock market at the time the housing bubble burst. When mayor Kwame Kilpatrick entered into a bargain with Wall Street in 2005-06 via Certificates of Participation instead of general bonds, they wined and dined him. These certificates were essentially a gamble that variable interest rates would go up, making them more valuable for the city. Once the Federal Reserve, in response to the economic crisis, set rates near zero, the city (like many homeowners) went underwater, its credit rating downgraded.


This is the way the scam worked in Detroit: The city was deliberately underfunded and the infrastructure took a hit, then city officials listened to various financial advisers and borrowed recklessly from the banks — racking up huge fees and agreeing to risky variable rates. Now the deficit is overstated by the trickery of combining short- and long-term obligations, and public sector workers take the fall.


Detroit’s bankruptcy is manufactured and manipulated, but the crisis is real. The fact is that neither Detroit, nor any other municipality or state in the same sinking boat, can cut, slash and burn a way to a viable future. The way out is not to destroy the safety net, but to expand it. With retirement savings next to impossible for more and more families, Social Security needs to be substantially increased. Health care needs to be guaranteed by a “single payer” system of Medicare for all.


Can we free the resources now wasted on military and prison spending, and massive corporate subsidies, to rebuild our cities and turn to production for human need and a sustainable environment? The answer: Yes we can; but no, capitalism won’t.


This is an editorial that will appear in the January/February 2014 issue of Against the Current, A US based revolutionary socialist journal.


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