Skip to main content

Scottish TUC: Scotland's future in Europe

PHIL McGARRY explains how the EU acts to further its liberalisation agenda and weaken the powers of sovereign states

The Scottish government’s white paper published on November 26 suggests that Scotland’s best interests would be met by continued membership of the European Union and that negotiations would commence immediately after a Yes vote and be completed by the proposed independence date of March 2016.

Let’s pause for a moment to remind ourselves that John Major’s government privatised British Rail on the model of the EU Directive 91/440/EC.

His government introduced the Railways Regulations of 1992 which began the privatisation process under Section 2(2) of the European Communities Act of 1972, in order to comply with the EU Directive 91/440/EC.

This was the first privatisation scheme within Europe  and the 1972 Act consisted of four significant strands:
(a) Operational autonomy for railway operators such as the train operating companies and the train leasing companies
(b) Separation of the infrastructure from operations
(c) Open access for international undertakings, and
(d) Introduction of track access charges to create a sound financial basis for the railway operators.

These criteria paved the way to open up its Rail Liberalisation Strategy among member states using their EU regulations and directives.

To do this the European Commission needed to go further, thereby publishing the three Rail Packages in 2001, 2004 and 2007.

In May 2008 the European Commission issued stark warnings to elected governments to end “hidden” state aid to railways, confirming the commission’s long-term objectives of shifting resources from a social railway to a profit-driven rail sector serving freight and passenger businesses.

The rail liberalisation agenda from the commission in 2010 is intent on stopping member states from using profitable freight services to cross-subsidise loss-making passenger services.

We now learn that the commission proposes to recast the 1st Railway Package, now named the 4th Railway Package, to destructure any/all public-sector, state-owned railways and to use the market and EU rules on competition to create corporate transnational EU transport and logistics monopolies to create a “single European railway market” which will be exploited by the finance sector in their drive for “profits at all cost.”

The EU’s 4th Railway Package specifies that all services will require compulsory competitive tendering, together with the liberalisation of all other domestic rail passenger services.

Not content with that, the EU and the US are currently negotiating a treaty designed to open all sectors, including health, to so-called “competition.”

The Transatlantic Trade & Investment Partnership under negotiation poses a severe threat to all public services, particularly health and education.

The draft currently will open up all public services to competition and will be treated the same as construction, transport and waste disposal.

The secretive treaty is based on the rights of investors, not on public service standards, and gives companies the right to sue governments if they restrict access to any form of potentially marketable provision.

Its investor state dispute settlement clause would enable lawyers to impose draconian fines matching a company’s potential market loss and would allow them to override all democratic procedures at national level.

The outcry against it has forced the EU Commission to announce a “90-day public consultation in light of ‘misrepresentations’.”

On past practice the commission will simply come back with a new text saying the same thing using different words. So much for the “social Europe” that was promised by the then European commissioner Jacques Delors 25 years ago at the TUC Congress in Bournemouth.

Here in Scotland our government continues to advise us that it has no alternative but to comply with the EU procurement policy, in that it has issued its invitation to tender documents that split the Scottish rail network into “daytime” services with a separate franchise for the “sleeper nighttime services” — some five bidders have put in for this lucrative contract.

Equally, it separated and privatised our ferry sector, handing the contract to Serco to run Northlink Services.

A further consultation document, as part of the “ferries review,” proposes to fragment routes and tender them on lines under EU competition rules.

We in the RMT believe that further privatisation could open the door to the exploitation of foreign labour.

Currently, shipping companies use legal loopholes to exploit cheaper foreign labour on British ships.

These issues concern us deeply, as does the situation in Greece, Spain, Italy, Ireland and now Cyprus. Austerity measures are being foisted upon these countries.

Widespread privatisation, high unemployment, attacks on workers’ pension rights, cuts in the minimum wage — where one exists — a freeze on public-sector pay, removal of collective bargaining and zero-hours contracts, all in the name of “FLEXICURITY.”

These measures run alongside the European Court of Justice (ECJ) rulings on the Viking case on the freedom of establishment and the Laval judgement on free movement of services.

The ECJ is an employers’ court that ensures the implementation of the EU directives to liberalise and privatise our public services.

It overrules national agreements, wages, pensions and employment contracts which conflict with the EU’s so-called “four freedoms of free movement” — of labour, capital, goods and services.

Recent reports inform us that the Greek government is considering “new legislation” which will hit unions’ ability to organise and make it more difficult for them to take industrial action. First, there will be a reduction in time off for union activities in the civil service.

Second, rules on industrial action will be tightened. In future, strikes will only be legal if they are supported by a majority of union members who have been called on to take action, together with unions having to give longer notice of their intentions.

Third, employers will regain the right to lock out workers in industrial disputes.

Finally, the government plans to review the funding of trade unions which, in Greece, involves significant support through the state, containing a system of compulsory contributions which are part of the social security system. It all sounds too familiar and will have a major impact.

These demands are being pursued by the EU in return for the “bailouts” orchestrated by the troika of the European Central Bank, the IMF and the EU commissioners.

Those member states within the eurozone have been told on no uncertain terms that “they need to control expenditure by ensuring their annual deficits do not exceed 0.3 per cent of GDP by 2013.”

If they do, then they will be placed within the excess deficit programme and penalised accordingly.

Workers across the continent have rejected these proposals.

Repeated general strikes have taken place in Portugal, Greece, Spain and Ireland.

The communist and left workers’ parties — from Spain, France, Portugal, Cyprus, Italy, Germany and Britain — have all signed a declaration stating that “the crisis of the European Union shows that the EU is not reformable and is, in essence, a neoliberal and militarist structure.”

In Portugal, Greece, Italy and Cyprus these parties are calling for a withdrawal from the eurozone as a prelude to dismantling the EU itself and that’s why we in the RMT are proud to support and sponsor our No2EU: Yes to Workers Rights candidates for the European elections on May 22. Our manifesto is simple and just.

Yes to workers’ rights
Exit the EU on the basis of socialist policies
Keep Britain out of the eurozone
No to austerity from Brussels or Britain
Reject the EU treaties and directives that curtail democracy and encourage social dumping and privatisation
No to EU trade agreements like the Transatlantic Trade & Investment Partnership with the US
Scrap EU rules preventing member states’ control over economic policies
Develop sustainable manufacturing, agriculture and fishing industries in Britain
Repeal anti-trade union EU court rulings
No to racism and fascism and Yes to international solidarity and working people
No to EU militarisation and an EU army
Restore democratic powers to EU member states.

Finally, some 4.1 million Scots have registered to vote on September 18 and we will have our say on our future destiny.

However does our future lie within Europe or not? Can we have a further say on our own destiny?

The answers to these questions lie with our government in Scotland.

Motion 93 from my union at congress seeks support for a referendum on Europe, should Scotland vote for independence.

A further referendum on Europe needs to be actively considered during the transitional period. Let us as Scots have a democratic say in our future, either in or out of Europe.

The matter is in our hands to pursue and we ask that people draw their own sensible conclusions.

Phil McGarry is RMT political adviser.

OWNED BY OUR READERS

We're a reader-owned co-operative, which means you can become part of the paper too by buying shares in the People’s Press Printing Society.

 

 

Become a supporter

Fighting fund

You've Raised:£ 13,288
We need:£ 4,712
3 Days remaining
Donate today