Financial crisis bad news for workers
ICATU general secretary
The financial crisis happened due to the United States capitalist model. It reveals that the current world economic system is problematic.
Economic globalization brings about the free flow of capital and cargo, and labor. Multinational companies have accelerated this movement, which makes it possible for financial or economic crisis to spread very easily to countries across the world.
The financial crisis began with debt repayment difficulties in the United States and immediately influenced the size of loans and grants that financial institutions can provide which are in fact the main engines of the economic system.
The crisis has had a great impact on society and trade unions. The most prominent effects include increased unemployment, exacerbation of social disintegration, aggravated confusion between labor movement over countries and the different labor markets, assault on the rights of workers, reduction in benefits, and pressure on trade unions to restrict the voices of workers in the crisis.
(China Daily 03/16/2010 page16)
