JOBS KEY TO SOLVING CRISIS IN ECONOMY - NION POST - ASTI
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UNION POST THE FOR CAMPAIGN LATEST GO TO www.getupstandup.ie PUBLISHED IN ASSOCIATION WITH THE IRISH CONGRESS OF TRADE UNIONS GET UP STAND UP NATIONAL D AY OF ACTION for a better, fairer way NOV 6 JOBS KEY TO SOLVING CONGRESS general secretary David Begg has insisted dealing with the jobs crisis is the single best way of turning around the Irish economy. Slamming the Irish Government for dishing out massive amounts of public money to bail out the banks, he claimed this was in stark con- trast to its paltry response to the 450,000 people now on the dole in the Republic. Mr Begg’s advice to ministers was: “Tackle the jobs crisis with the same CRISIS level of energy and ingenuity that has been devoted to the banks and all else will start to fall into place.” It comes as Congress prepares an unprecedented mobilisation of 850,000 trade union members and their families in a series of rallies across Ireland North and South on November 6. FULL STORY: Pages 4/5 Call: David Begg IN ECONOMY Subscribe FREE at braziermedia@btinternet.com
UNION POST Congress blueprint for a better future 6 NUJ chief Seamus Dooley addresses crowd outside INN offices Pictures: RONAN BRADY McCarthy Report gets health warning 9 Protest as INN shuts up shop THE National Union of Journalists held a stalk are understood to have bid for a con- demo against the closure of Independent Net- tract to replace the INN service. work News at the company’s offices in Dublin Ms McManus added: “This is indicative of an Young doctors in earlier this month. unhealthy concentration of media interests in chain gang protest 11 NUJ members were joined at the October 13 picket of the Mount Street offices by strik- a small number of hands and needs to be ad- dressed.” ers from CocaCola and members of the INN announced last month it would cease Dublin Port cargo workers. providing news to radio stations at the end of The protest was addressed by NUJ Irish October, with the loss of 16 jobs, because the secretary Séamus Dooley and by RTÉ's Emma business was no longer financially viable. O'Kelly. The company, set up in Mr Dooley said the 1997, services 21 local union wanted the redun- AS NUJ members gathered at radio stations across the dancy notice withdrawn Lower Mount Street for the Octo- country. and claimed the board ber 13 protest, they were warmly Speaking on Newstalk had “acted prematurely”. greeted by the staff at the nearby radio, Communications He added: “There is a Angel Cafe, who served compli- Minister Eamon Ryan ex- LGB conference statutory obligation for a mentary hot drinks pressed concern 30-day consultation pe- in a welcome about the closure makes history 14 riod and we believe they show of solidarity. There was a which he described have breached that. as “a huge loss”. “There is a house less angelic re- However, Mr agreement that requires sponse from a Dooley dubbed the us to exhaust procedures nameless individ- minister’s words "a and go to the Labour Re- ual in another of- series of platitudes lations Commission.” fice close by. which give no com- Labour Party communi- This penetrat- fort to staff". cations spokeswoman Liz ing economic He added that Mr McManus, who was at the analysis ap- Ryan appeared “to ac- protest, said the closure peared in a win- cept the closure of of INN raised serious dow and was removed when INN as a fait accompli". questions about media photographers noticed it but not NUJ members at INN New look Liberty ownership and regulation. before NUJ activist Ronan Brady have voted to take indus- Hall revealed 19 She added: “It seems to me the announcement of snapped the image for posterity. trial action up to and in- cluding strike action in the closure was far too pursuit of a demand for a hasty and was made without any real consul- withdrawal of the threat of redundancies on UNION POST was produced by Brazier Media tation with staff or any genuine consideration October 30. The NUJ has asked the company for the Irish Congress of Trade Unions of alternative business models.” to refer the dispute to the Labour Relations Ms McManus pointed out that the make-up Commission and to explore alternatives to Irish Congress of Northern Ireland Committee of the INN board was dominated by UTV and wholesale redundancies. Trade Unions Irish Congress of Trades Unions Communicorp and, while within the law, The union has also sought an investigation 31/32 Parnell Square 4-6 Donegall Street Place Belfast BT1 2FN claimed this was entirely inappropriate. into the actions of the board of the company Dublin 1 Ireland Northern Ireland Both UTV and Communicorp branch New- by the Director of Corporate Enforcement. Tel: +353 1 8897777 Tel: 02890 247940 Fax: +353 1 8872012 Fax: 02890 246898 NUJ CONFERENCE REPORTS P20 Email: congress@ictu.ie Email: info@ictuni.org www.ictu.ie Web: www.ictuni.org UNION POST Get it in A4 THE DESIGNED & EDITED BY BRAZIER MEDIA Email: braziermedia@btinternet.com 2 UNION POST October 2009
ICTUVIEW David Begg General Secretary Burden must fall on those who can bear it WHILE we argue and debate the best way forward, we must at least entered this recession with the lowest debt to GDP never forget that real people are suffering, especially those who ratio in Europe The Bruges Group, a centre right policy body, have lost their jobs. recently published a paper forecasting that the average debt to There are now 428,000 people on the live register. The cor- GDP ratio in the EU would rise to 90 per cent and that several rosive effect of this – the risk of long term unemployment and countries would exceed that. So we have some headroom to the pressure on the public finances – emphasises the need for a temporarily increase borrowing. holistic approach to the crisis. Simplistic solutions like the The Bruges paper suggests the desirability of a coordinated ‘short sharp correction’ don’t cut it at all. EU effort to get the average figure down to 75 per cent again Jobs – their protection and creation – must be at the heart of by 2020. This is an even longer timescale than we would sug- everything we do. gest. It is important to realise that finding a way out of our current But I do think it is instructive to look at how Britain is han- crisis is not just an economic challenge. A country is much dling a similar challenge, although larger in scope because they more than an economy and it is this point of departure that have to achieve an adjustment of £100 billion. motivated Congress to launch the Get Up Stand Up campaign. Current treasury policy is to make the adjustment more than This is a political economy challenge of the first order. The eight years. Both The Economist and The Financial Times have National Economic & Social Council has rightly identified five opined that fiscal tightening (cuts) should not begin until the sub crises – economic, fiscal, banking, social and reputational – economy has started to recover. which cannot be dealt with in a partial or sequential way. Our This is the context in which we have proposed elongating our Better, Fairer Way document offers an alternative solution on adjustment period until 2017. To force a quicker pace runs the these lines. risk of not just collapsing public service provision in key areas, The response of most governments to the global recession is but of collapsing the economy. to try to compensate for a decline in private sector activity by HIGH STAKES means of a public stimulus. The Government is playing for very high stakes here, and they Because of the unique failure of the banking/developer nexus, are playing with our chips! and the imprudent reliance on property-related transaction The Better Fairer Way also involves progressive taxation. It is taxes, a large segment of our tax base has evaporated. Thus we believed there is currently €1.8 billion out there in uncollected have not reacted with a stimulus in response to unemployment taxes. as other countries have. In fact, public policy is focussed on re- Moreover the huge windfall gains made during the boom can- ducing the public sector. not all have evaporated. It stretches credulity to suggest that From recent discussions it is clear that these problems are they have. It is also worth noting that Britain is introducing a 50 viewed through different prisms by Government and Congress. per cent rate of tax for very high earners. Nothing – except In a nutshell, the Government intends to cut €4 billion from ideological blinkers – stops us from doing the same here. public expenditure in the forthcoming budget. We cannot see this process solely as an economic issue, in This is a major change in policy since April, when the stated fact the social dimension is far more important. We need to intention was to achieve this adjustment through a combination create space for ourselves as a society to engage with the of tax increases and expenditure cuts. The intention is also to crushing problems of unemployment, home repossessions and restore public borrowing to a level of three per cent of GDP by the collapse of private sector pensions. 2013. The Better Fairer Way has proposals on these, including keep- This is highly unrealistic and potentially catastrophic. It runs ing people in jobs by means of Government-supported work- the risk of imparting a severe deflationary shock to the econ- sharing. Germany has successfully pioneered this approach and omy which could precipitate a prolonged slump, as happened in has kept 1.4 million people in employment, a fact that played no Japan during the ‘lost decade’ of the 1990s. small part in getting Angela Merkel re-elected. There is an alternative – which will not prevent pain and hard- There is no pain free way out of our difficulties, whether in ship – but it is better and fairer. the private or public sectors. But what we can do is ensure There is no iron rule which says that the adjustment has to be that the heaviest burden is borne by those with the broadest completed by 2013. Whatever other problems Ireland has, it has shoulders. THE WEB EDITION OF THE UNION POST IS SAVED IN A3 LANDSCAPE FORMAT IF YOU WANT A4 EMAIL YOUR REQUEST TO braziermedia@btinternet.com October 2009 UNION POST 3
GET UP STAND UP NATIONAL D AY OF ACTION for a better, fairer way NOV 6 JOBS: APPROACH CONGRESS general secretary David Begg has slammed ministers for doing “virtually nothing” to save jobs and tackle rising unemployment. Claiming that focusing on employment was the best way out of the economic crisis, he con- trasted Government’s willingness to hand over massive sums to bankers with the paltry sums earmarked for safeguarding jobs. Mr Begg, left, said: “What is the best way to tackle this crisis? In a word, jobs. “The more people we keep at work, the more revenue Government takes in tax and the less de- mand there is on social welfare. “To date, Government has done virtually noth- ing to tackle the jobs' crisis, even as unemploy- ment has risen to 450,000. “Contrast the €7 billion that has been handed over to Anglo Irish Bank – money we will never see again – with the paltry quarter of a billion the Government put into a small, limited scheme to help firms trading in the export sector.” ‘SHOCKING’ He labelled this “a shocking illustration” of where Government’s priorities lay and pointed out that when Congress proposed a €1billion Job Creation & Protection Plan in May, ministers in- sisted there were no resources available for the initiative. At the time, Congress said it was vital that “all the machinery of the state [be] harnessed to the goal of tackling the unemployment crisis”. The Congress plan called for “a range of new, innovative and creative measures” to protect jobs, create new employment as well as to boost train- ing initiatives and protect people’s incomes. The Government was warned that unless min- isters treated the jobs crisis “as being at least equal in magnitude and scale” with the banking crisis, they would simply not be able to deal with it. Detailed proposals included a wide variety of measures designed to ensure that redundancy Picture: Congress Picture: Brazier Media BROADCAST BOOS Protestors outside Broadcasting House in Belfast vent their fury at the appearance of BNP leader Nick Griffin on BBC’s Question Time programme earlier this month 4 UNION POST October 2009
THAT WILL WORK would be “a last resort”. It included ideas such as Without this scheme, German authorities esti- Rally with us job rotation, state support for short-term work- mate that an additional 500,000 people would be ing, a social employment programme to meet out of work and the national jobless total four gaps in social infrastructure, reforming the social million.Mr Begg said: “The German scheme uses welfare system, changes to employ- social insurance money – so- ment law and a more focused, strategic approach to training. In part as a response to the Con- ‘Tackle the cial welfare – to make up any difference in wages for work- ers on short time. This main- against cuts tains spending power and THE NIC-ICTU has called on working gress plan, the Government issued a framework document containing proposals on jobs, pensions and jobs crisis helps maintain domestic de- mand.” people across the North to take to the streets on November 6 to protest at cuts home repossessions in June. One of the proposals included a with the He added that even the tra- ditionally conservative Finan- in public services and to underline the need for action on jobs. Congress assistant secretary Peter €250m Temporary Employment Subsidy Scheme. same level cial Times has stated economies adopting these measures are coping far bet- Bunting said: “Public services have been subjected to so many so-called ʻefficien- ciesʼ that there is nothing left to cut ex- However, Congress criticised the package for its “poverty of ambi- tion” and slammed the Govern- of energy & ter with the recession, adding: “There is no reason why we cept vital frontline services. “This is incredibly short-sighted. The ment’s failure to allocate the funds needed to deal with the jobs crisis. ingenuity cannot introduce a similar scheme here.” fact that we have lost 43,000 jobs in the past year means that the private sector can no longer play its full role in adding Insisting that “a far greater ur- gency if not a sense of national that has Mr Begg said: “The evidence and experience is all there. We can learn some very use- stimulus and demand to the economy. “The fact is that the private sector is emergency” was needed, Mr Begg pointed out that in at least eight other European countries, govern- been ful lessons from our continen- tal colleagues, if we choose to. now hugely dependent on the public sec- tor. Private sector suppliers to the public sector will suffer from cuts in the ments have intervened to protect and support under-threat jobs. devoted to Or we can do nothing.” He also claimed that equally schools and health budget. Retailers de- pend upon the spending power of public Thus, Germany currently has 1.4 million people on state-supported the banks prompt Government inter- vention could help prevent a “wipeout” in the construction sector workers. “Action is required now for offering protection for workers who have lost short-term working. In effect, the support from Ger- man government coffers allows and all else industry as well as going a long way towards fill gaps in their jobs, such as a Workersʼ Protection Fund which places their right to a fair re- companies faced with a dip in de- mand to introduce shorter working will start to social and public infrastruc- ture. dundancy settlement first in the queue when companies go bankrupt. “Similarly, no worker should be threat- fall into hours and skills retraining. A National Recovery Bond ened with homelessness, especially from could also be used to deliver banks which depend upon the publicʼs The advantage is that people stay new schools, clinics and bet- place’ in employment, upgrade their skills generosity.” ter public transport. He added: “Now is the time to make and maintain a reasonable standard of living. Mr Begg added: “Tackle the known the public opposition to these jobs crisis with the same level of energy and inge- cuts in services and the loss of jobs in They also retain spending power, avoiding the nuity that has been devoted to the banks and all the private sector. Join with the trade deflation of domestic consumption that has hap- else will start to fall into place.” unions in showing your opposition to the pened here. cuts. Rally with us on November 6.” Produced in association with Congress WE’RE HERE TO KEEP YOU POSTED October 2009 UNION POST 5
GET UP STAND UP NATIONAL D AY OF ACTION for a better, fairer way NOV 6 AT the centre of the Congress plan, There is Still a PLAN THAT Better, Fairer Way, is a conviction that in a sustain- able recovery plan the burden of adjustment must fall on those most able to carry it. Five guiding principles are outlined in the Con- gress document which was published on October 22. These are: The period of adjustment must be extended over a longer timeframe, to 2017 instead of 2013 IS FAIR AND as the Government suggests. Debt to GDP ratio should be allowed to rise in line with that of other EU countries; Cutting incomes and services makes no social or economic sense and will do serious damage to the economy and our public service infrastructure; Investment must be made in keeping people in their jobs. A National Recovery Bond should be EQUITABLE promoted to raise funding for infrastructural proj- ects; Peoples’ homes must be protected from the threat of repossession. Those who have lost their jobs and incomes must not also face losing their homes; and The tax base must be rebuilt on the principles of fairness and equity and ensure all pay their fair TACKLE STOP share. JOBS JOBS JOBS Congress claimed from the onset of the crisis FIVE STEP CUTS IN JOBS that the most urgent priority for Government had to be the protection of jobs. To date, the official response has been confused APPROACH CRISIS INCOMES and incoherent, the result of attempting to grapple with the problem sequentially rather than develop- ing a coherent overall strategy. There was April’s ‘emergency’ budget, the NAMA legislation, the McCarthy Report and the Commission on Taxation – all serving to reinforce the evidence. ]Even those who advocate cuts – icy, “fans with laptops and privileged media access”. a sense of continued and ongoing crisis. such as the ESRI – acknowledge it will exacerbate They have used that access to build a pseudo-in- But Congress points out that if the above list is deflation and unemployment. tellectual framework to justify cuts in social wel- taken to represent Government’s key priorities, it The proponents claim that, over time, such cuts fare, the Minimum Wage and essential public is telling – and shocking – that it contains no initia- will serve to restore our ‘competitiveness’, even services. tive on jobs. though wages make up only a small proportion of In their hands, the unthinkable becomes utterly And the lack of priority accorded to this funda- the overall competitiveness issue. plausible. Thus we are constantly reassured that mental issue was confirmed what Congress admits Congress points out that unless the real agenda ongoing deflation means that social welfare recipi- was a “meandering and frustrating engagement” is to reduce wages to a developing world level, the ents will soon qualify for inclusion on the rich list, with Government, which ended in late June. impact will be insignificant. while it is received wisdom that the public sector A primary goal was to convince ministers that Thus, it is clear that those pushing cuts as a is ‘bloated’ and ‘swollen’, its cost having ‘spiraled the jobs crisis was, at the very least, of the same recipe for recovery have based the plan on nothing out of control’. magnitude as the banking crisis. Unfortunately that more than a hunch. From the same quarters can be heard the asser- attempt failed. But what is absolutely clear is that cutting peo- tion that tax rises would be ‘deflationary’ and also This was in stark contrast to the speed that ples’ incomes and services will depress the econ- pointless, because there are simply no wealthy left characterised the response to the banking crisis. omy further and lead to more job losses which in in Ireland. Their every last penny has evaporated! The Government remains fixated on banking to turn will put more pressure on public resources. Congress alleges that while there is some con- the virtual exclusion of all else. Congress warns that in such a scenario, the Re- sistency in their case, there is also “intellectual dis- Equally worrying is that the Government ap- public would quickly find itself in economic and so- honesty on a grand scale”. pears to have learned nothing from the last 12 cial freefall and end up like Japan in the 1990s, How can tax rises for the wealthy – who hoard months and nothing whatsoever from the experi- locked into a 10-year slump. more and spend abroad – be characterised as ‘de- ences of other countries over the same period. The Congress plan also points out that is wrong flationary’, while cuts in the incomes of lower and Globally, it is not disputed that the policy of to cut funding for essential public services – at a middle earners – who constitute the great bulk of pumping money into national economies – in the time when overall need is growing – and insists spending in the economy – are presented as a form of economic stimulus packages – has pre- that taking €4 billion out of public spending will stimulus package in disguise? vented a recession mutating into a depression. collapse crucial elements of public service provi- Why ignore the fact that the bulk of current de- Equally, other governments in the EU see the sion. flation is comprised of mortgage repayments that logic in intervening to protect employment, to Added to this there is the folly that is NAMA, have minimal impact on social welfare recipients, keep people in work and help create new jobs. the ‘black hole’ for the banking system that sucks while the price of basic foodstuffs and other essen- Congress insists these policies are neither avant in all available resources and elevates the needs of tials have either risen or seen only minor falls? garde, exceptional or radical, just plain common private bondholders and shareholders above the Is it acknowledged that it was not rapidly rising sense. rights of the country’s citizens. public spending that caused the shortfall in our But here at home, the Government appears to Congress points out that this Government stub- public finances, but a rapidly shrinking tax base? exist in some parallel universe, one in which the bornly refuses to learn the lessons from Ireland’s It is like claiming the boat sank because it was in logic and reason is turned on its head. past and the experiences of others. the water and not because of the gaping hole It appears Government is willing to sacrifice so- In fact its current strategy, Congress claims, con- below the waterline. ciety in order to save one sector of the economy. stitutes a real danger to the long-term viability of The tax base was dismantled from the late 1990s But Congress argues that ultimately, their policy our economy and the cohesion of our society. on, in order to fund and facilitate the Great Gov- approach could destroy both. COMMENTARIAT ernment Giveaway – tax rates for the wealthy and DEFLATION Of course the Government is not entirely alone business slashed, tax subsidies and shelters intro- Some pundits have gone to great lengths to as- in advocating this dangerous approach. duced… millionaires paying no tax with the impri- sert that taking substantial sums of money out of Throughout the course of this crisis, they have matur of the state. the economy amounts to a guaranteed formula for been assisted by many within the so-called com- And all that extra cash sloshing around our sys- national recovery. mentariat, whose only real argument with the tem went not on productive investment, but to fuel But Congress thinks this a recipe for disaster powers that be is that they do not propose to cut property speculation, purchase lavish trophy homes and a theory based on supposition, hope and a deep enough or fast enough. and generally push up prices for everyone else. good degree of blind faith. Congress characterises many of these pundits as Of course to keep the focus on ‘high’ public This ‘silver bullet’ theory is simply not backed by no more than “cheerleaders” for Government pol- spending, it is necessary to keep the focus off the 6 UNION POST October 2009
cent in US, 82 per cent in the UK and an astonish- ing 194 per cent in Japan. In truth, Ireland’s net debt position is much better than that of many other countries. On October 6 the NTMA reported that it “has in effect secured some €28 billion of long term funding.” The agency had borrowed for pre-funding of next year’s borrowing requirement and remarked that this “puts Ireland in a very strong position going into the markets in 2010. Ireland had cash balances in excess of €20 billion in the Exchequer Account at the beginning of the year, in addition to the €16 billion assets of the National Pensions’ Re- serve Fund. “The Exchequer cash balances currently stand at €23 billion... not counting the €7bn received from today’s deal.” Thus the NTMA has some €30 billion in cash on its hands. This gives the lie to the notion that we would not be able to raise new money. Indeed, if necessary, we could hold off raising new money for a whole year and a half. While the NTMA is to be congratulated on its PROTECT PROTECT RICH TO prudence, the high level of cash borrowed means that Ireland is paying interest at 4.6 per cent on the PEOPLE’S PAY FAIR more recent loans within this sum, while only get- VITAL ting one per cent on it. Congress insists it would be better to spend more of this investing in jobs SERVICES HOMES SHARE and people. SCAREMONGERING Congress also hit out at Minister Mary Harney’s recent intervention with her claim that the Interna- tional Monetary Fund would “come in overnight” if tax base (Ireland actually spends less than the could – and should – be stretched further, perhaps Government did not get its way. EU15 average on public services). to 2017. Already the French Government has indi- Keep the focus off the tax base and there is no cated it will be extending its own adjustment until The Government had to rush out a very prompt demand to reform and rebuild it. Point the finger at 2015. ‘clarification’ of her remarks. ‘newly-enriched’ welfare recipients – in contrast to INTEREST According to Congress, Mrs Harney’s exaggera- the impoverished wealthy – and pressure builds for But what of the claim that increased interest tions were but one more example of the general cuts on those who can least afford it. payments will result from extending our borrowing hysteria that has characterised the official campaign SHARP PAIN over a longer timeframe? to ensure that low and middle income earners The default mode of most neoclassical econo- Congress views this argument as erring too far bear the brunt of this crisis. But these repeated mists is to call for a dose of ‘sharp pain’. on the side of caution and pessimism and appears apocalyptic warnings are actually draining all confi- But Congress thinks they are not just wrong but to consider only worst case scenarios. dence from the economy. doubly wrong especially under current circum- Indeed, the ESRI is not alone in having pointed to This Government is now borrowing heavily for stances, where the administering of such pain is the likelihood of the beginning of a global upturn, day to day spending and also for investment. likely to kill or render the patient comatose. towards the end of 2010. Congress believes we can afford slightly more In its recent commentary, the ESRI noted that in If that happens, then the Institute itself points borrowing and for that money to be put to good the first nine months of 2009: “...the total excheq- out that the “heavy lifting will be done by other use in the economy. uer borrowing requirement increased by almost economies” as Ireland recovers. Unfortunately, much of the current borrowing is €11 billion. However, a large portion of this addi- In practical terms this means that servicing the being used prop up the banks, not to create jobs tion was due to increases in non-voted expendi- debt will be far less of a problem and certainly less or help vulnerable people. ture, primarily the €4 billion injection of funds into painful. Anglo Irish Bank, plus the frontloading of payments Thus, there is a very serious and fundamental It is hardly inconceivable that Government can in the National Pension Reserve Fund (NPRF). judgment call to be made: do we inflict severe pain borrow €4 billion to prop up Anglo Irish Bank, “Indeed voted expenditure fell slightly, relative to today, in the hope that it delivers the results that with no likelihood of any return to the taxpayer. 2008, so the proximate cause of the widening of some commentators claim that it will? In addition, they have taken another €3bn of our the deficit has been the continued deterioration in Or do we resist the urge to cut to the bone, members’ taxes from the National Pension Re- tax revenues.” spread the adjustment over a longer period instead serve Fund and put it into AIB and BOI. So public spending has already fallen. And it is al- and avoid the sort of catastrophic economic If Government can find €7 billion to prop up the ready among the lowest of the developed freefall that seems certain to follow further defla- banks, it can certainly borrow a little more to ex- economies, as a percentage of GDP. tion? tend our recovery period. The ESRI also concedes what the likely impact of Given that there is a far greater degree of cer- TAX THE RICH sharp cuts would be: “The consequences of such a tainty attaching to the impact of further deflation No one could have made the a stronger case for further sharp correction are, by our estimation, in this economy – including the certain loss of jobs more taxes on the rich than Minster for Finance significantly deflationary. Were there to be a neu- – then the only credible decision is to extend the Brian Lenihan, when he admitted a mere four per tral budget in 2010, then our estimates would sug- timeframe and spread the burden. cent of earners paid 48 per cent of all tax. gest that the recovery in GDP would occur much The ESRI estimates that by the end of 2010 This fact reveals the inequity of the Irish income earlier in the year leading to positive growth in “gross general government debt would be equiva- distribution. It is even more telling when top po- GDP for the year as a whole. lent to 76 per cent of GDP. Allowing for the build- tential taxpayers – the Tax Exiles – pay nothing at “Nevertheless, we do believe that it is necessary up of exchequer cash deposits and monies held in all. And many other top earners only pay at 20 per to implement these measures in full next year to the National Pension Reserve Fund (NPRF), the avoid a widening of the deficit and associated in- net debt figure would be 51 per cent, up 40 per- cent, under the new Minimum Tax regime. crease in interest payments.” centage points from 2007.” Congress disagrees with Mr Lenihan when he In other words, it is not only deflationary but But while those figures might look alarming it is claims “there is no pot of gold.” will set back any prospective recovery. For that important to note that they are not out of line The same refrain was heard in the 1980s, before reason, Congress believes the impact of any with many other countries. Ansbacher and all the other sordid tales of evasion process of adjustment could be made more bear- For example, EU Commission data shows Ire- and avoidance. able, if the timeframe is extended. The Govern- land’s gross Government debt rising to almost 80 And what exactly did happen to the huge sums ment plan is to compress the adjustment into the per cent of GDP next year, compared to 82 per of money made during the boom? All of it was years leading up to 2013. Congress claims this cent in the EU15, 101 per cent in Belgium, 92 per hardly lost on the stock market. October 2009 UNION POST 7
E THOUSANDS BALLOTED IN INDUSTRIAL ACTION 24/7 ALLIANC FIGHTBACK ON THE FRONTLINE UNIONS representing 100,000 frontline public service workers are to begin balloting members for industrial action in case the Government de- Garda Representative Association vice president Damien McCarthy pointed out that senior mem- bers of the force were already voting with their increased from 20 to 140 through the reorgani- sation programme. Aisling Culhane, research and development ad- livers on its threats to introduce further cuts in feet. Only 190 members had left in 2008 but the visor with the Psychiatric Nurses Association, pay and services. figure could be at least 700 this year. said community service programmes were al- The executives of the six unions in the 24/7 Joe Dirwan, general secretary of the Associa- ready being cut back or cancelled through lack of Frontline Service Alliance decided to escalate tion of Garda Sergeants and Inspectors, said funding. their campaign at a joint meeting in Liberty Hall, members were very concerned at the departure The Labour Party leader Eamon Gilmore told Dublin on October 22. of the most experienced members of the force the Alliance delegation that the Labour Party had They also decided to launch a publicity cam- at a time of recession. consistently defended the public service and that paign to highlight the essential role frontline A third of adult males under 25 were unem- it was wrong for frontline service workers to be service workers play in Irish society. ployed and crime rates were rising rapidly, while targeted for cuts. This follows reports back from the four re- 60 per cent of the force had less than 10 years But he added that the propaganda war was gional meetings held by the Alliance over the service and 40 per cent had under five years being won by powerful vested interests commit- past month, attended by more than 5,000 nurses, service. ted to ensuring the wealthy – and those who gardai, firefighters, ambulance drivers, prison offi- INO deputy general secretary David Hughes created the crisis – did not foot the bill. cers and other frontline workers. has pointed out 1,000 nurses would be needed EASY TARGET PROTESTS to assist in the swine flu vaccine programme and Mr Gilmore agreed any changes in pay and It comes after the Alliance met with Fine Gael the HSE had indicated that these would be rede- conditions had to be brokered through negotia- leader Enda Kenny and Labour Party chief ployed from other services. Eamon Gilmore on October 21. This, he insisted, would result in further cut- tion and agreement. The Alliance will be supporting Congress backs and bed closures in our hospitals. Fine Gael leader Enda Kenny said that unfortu- protests in Dublin and other centres throughout SIPTU national nursing official Louise O’Reilly nately the frontline services had always been the Republic on November 6. claimed two-thirds of her union’s members were seen as an easy target for cuts. It will follow this with its own march to Lein- low to middle income PAYE workers in the pri- He accepted that, given the anti-social hours ster House on November 11 and a national can- vate sector who relied on the frontline services and difficult work they carried out, frontline vass of TDs on the weekend of November 14 of public sector members such as nurses and workers regarded allowances, shift premiums and 15. firefighters. Unlike the better off in our society and overtime payments as part of their core pay. If the Government disregards the need to they could not jump the queues. Mr Kenny insisted that whatever changes were maintain frontline services at present levels and Prison Officers Association general secretary introduced in the Budget had to be fair. acknowledge that members of the Alliance have John Clinton pointed out his organisation had Fine Gael deputy leader Richard Bruton said already contributed their share to restoring the negotiated a huge rationalisation programme nurses and gardai did not cause the economic public finances – with cuts in take home pay of with the Department of Justice in 2005 which crisis and insisted their work was valued by the up to 12 per cent – industrial action will be un- had resulted in massive savings. His members’ party. dertaken before the end of November. starting salary was now only €23,000 a year. The party’s spokesperson on Enterprise, Trade The nature and extent of that action will be Mr Clinton contrasted the cuts aimed at front- and Employment said he accepted allowances decided as the campaign progresses over the line staff in the prisons with the total failure of and overtime were part of core pay for frontline coming weeks. the McCarthy Report to identify any savings in workers and unions had sound ideas on how At the meetings with opposition party leaders prison administration, even though numbers had public services could be reformed. UNITE is to ballot its members on industrial action following a meeting NURSES BALLOTED OVER THREAT TO PAY p10 of union officials in Dublin on October 22. Members are to be asked to give their leaders the power to take whatever ac- tion is necessary to protect Marine Terminal dispute over THE 15-week dispute at Marine Ter- for any further redundancies should dancy offer and note the courts rec- jobs, pensions and pay, up minals Ltd in Dublin Port has ended be agreed between the parties. ommendation that the parties en- to and including strike ac- following a decision by the company Issues relating to the terms and gage directly with a view to tion. to accept a Labour Court recom- conditions of those who return to resolving other issues. UNITE has more than mendation on job retention and re- work and the specific numbers of “It is also noted that the court 60,000 members, and its dundancies. jobs to be retained have yet to be fi- has recommended the parties, public sector membership The Labour Court recommended nally agreed. should they fail to agree on any of extends across education, an improved redundancy package of According to SIPTU regional sec- these issues, enter a process of six weeks inclusive of statutory enti- retary Christy McQuillan the parties arbritation.” local authority, health and tlements and recommended the par- will begin discussions immediately Christy McQuillan, on behalf the state agencies. ties engage directly with a view to to give effect to the full recommen- SIPTU members involved in the dis- The ballot will be held resolving other matters including dations of the Labour Court. pute, expressed his thanks for the over the next two weeks as the number of jobs to be retained. He said: “We welcome the com- help of local communities in East part of UNITE's preparations It recommended that redundan- pany’s acceptance of the Labour Wall, Irishtown and Ringsend, the In- for a national day of protest cies should take place on a volun- Court recommendation with a view ternational Transport Federation on November 6. tary basis, initially. It also to ending this long running dispute. and other unions in helping to se- recommended the selection criteria We welcome the improved redun- cure a resolution to the dispute. 8 UNION POST October 2009
VOTES IMPACT MASSIVE YES FOR STRIKE ACTION IMPACT members have voted over- whelmingly in favour of strikes if the Government moves to impose a second public service pay cut. Boots force cuts in pay and rake in €20m profit The union announced on Octo- ber 21 that its public service mem- bers had backed industrial action by 86% to 14% on a 69% turnout in a national ballot. This compares to a 65% vote for industrial action – just short of the MANDATE is to ballot more than Management’s intention to uni- two-thirds required under IM- 900 of its members at 57 Boots retail PACTʼs rules – on a 53% turnout in laterally impose reduced pay rates and a similar ballot last March. stores across the Republic on taking inferior terms and conditions of em- General secretary Peter industrial action. ployment, and McLoone said strikes now seemed The move follows a series of Boots’ refusal to attend the inevitable because of the Govern- meeting between Mandate repre- Labour Court for a hearing with Man- mentʼs refusal to consider alterna- sentatives and Boots arising out of MANDATE date to deal with these issues. tives to a second public service management proposals to intro- Mandate assistant general secretary, pay cut in eight months. duce cost-saving measures. Gerry Light claimed any cuts to work- He added: “This ballot repre- Talks collapsed after it was revealed the com- ers’ terms and conditions should be considered as sents a massive shift in opinion pany is still extremely profitable and posted prof- a blatantly opportunistic attempt to use the reces- among public servants since the its of €20 million locally for the year to March sion to boost shareholder profits. imposition of the so-called pen- 2008. He said: “This is quite clearly an attempt to sion levy last March. Boots has now threatened to terminate all pre- maximise profits at the expense of ordinary hard “Every public servant has al- viously negotiated agreements with Mandate. working individuals who have helped to make ready suffered a 7.5% pay cut this The union claims the firm is now attempting to Boots the most successful pharmacy-led, health year, yet the Government is clearly force pay cuts of up to 15.5% along with a reduc- determined to come back again and beauty retail chain in Ireland. and again to slash their family in- tion in terms and conditions of their employees “Boots has been operating very successfully in comes. despite still being a highly profitable company with Ireland since 1996. Since then Mandate has negoti- “Our members donʼt want strikes current cash reserves in excess of €70 million. ated several agreements with Boots all of which or the disruption they will bring, Some of the key changes in terms and condi- have helped to increase profits and productivity but the Governmentʼs refusal to tions include: for the company. consider alternatives means 15.5% wage reduction at the top scale of pay “Due to Mandate’s refusal to accept the legiti- strikes now seem inevitable as from €14.20 to €12 per hour, macy of Boots’ cost-saving initiatives, management public servants seek to defend 25% reduction in public holiday pay, now want to tear up these agreements and press what they have left. 25% reduction in Sunday premiums, and ahead with changes to terms and conditions Mr McLoone said IMPACT had Increased flexibility in weekend work for full which will impact negatively on the standards of offered to negotiate an alternative time staff. living of our members.” to pay cuts, in the form of a mas- The union claims it has been left with no option The ballots for strike action in Boots and will be sive transformation of public serv- but to ballot its members on the following issues: counted on Friday, November 6 – a date which ices to do much more with less Management’s threat to terminate all existing happens to coincide with Congress’s national day money. union/company collective agreements on Novem- But the Government had not of protest. even responded to this initiative. ber 17, IBOA in Ulster Bank legal bid THE IBOA is preparing a legal move duction from our members’ wage through the courts. But unfortu- against Ulster Bank/First Active for packets. nately we have been left with no al- breach of contract. “IBOA is very conscious of the ternative.” The action is being taken on behalf need to avoid unnecessary hardship He added: “It reflects very badly on of 5,000 members in the Republic of to the customers of Ulster Bank a bank that aspires to treat its cus- Ireland and Northern Ireland. with whom our members have at- tomers fairly that it has such diffi- Speaking at a conference in tempted to build a positive relation- culty in treating its own staff fairly.” Athlone on October 22, general sec- ship. So in order to avoid industrial The announcement follows Ulster retary Larry Broderick claimed a action at this time, we are now ask- Bank’s declaration on October 19 substantial “fighting fund” had been ing our legal advisers to prepare a that it does not intend to return to set up to run cases against Ulster legal action against Ulster Bank in the mediation process. Bank Group over its failure to hon- both the Republic and Northern Ire- The bank indicated that it intended our existing staff contracts. land. to offer new contracts of employ- He told delegates: “Put simply, our “It is regrettable the bank’s refusal ment to staff. contention is that by failing to hon- to negotiate under the agreed medi- Mr Broderick added: “These new our these contractual payments, the ation process has forced us into hav- contracts are significantly inferior to Broderick: Legal moves bank has in effect made an illegal de- ing to contemplate taking this issue the existing contracts.” Picture: IBOA October 2009 UNION POST 9
DRUMM DEAL INO hits out at ‘double standards’ over bonus THE Irish Nurses Organisation has called on the HSE to honour wage commitments to staff HSE’s unilateral withdrawal of performance related payments to all other staff grades in- adopt the same approach to our members and as it has to its CEO and withdraw the threat of after its decision to meet all contractural obliga- cluding Directors of Nursing was in contrast further cuts to existing pay and conditions of tions to CEO Brendan Drumm on pay. with the decision to forge ahead with Prof employment. Hitting out at “double standards”, the union Drumm’s package on pay. “Justice and equity will have to apply in these insisted the health body treat its employees in INO general secretary Liam Doran said: “This situations and the HSE has now laid down a like manner – and set out why: decision of the HSE will only confirm, and con- marker which they The INO pointed to increased productivity solidate, the on-going campaign to fight any fur- must consistently by frontline staff, ther cuts to the pay and conditions of frontline apply to all In contrast to its approach on salary for its staff in the health service and indeed through- their staff CEO, HSE sought in recent months to reduce out the public service. This is the most recent or face the pay and allowances for nurses, widwives and example of the blatant double standards which conse- other frontline staff, are now the norm in Irish society. This practice quences.” The union also noted the failure of HSE to sees senior management protect their interests fill essential frontline posts. The INO claimed while imposing savage and damaging cuts on Drumm: Prof Drumm’s reported €70,000 bonus would their staff. Bonus pay for two newly-qualified staff nurses, and “The INO will now be insisting that the HSE storm IMPACT pays ‘interest’ to payout deal IMPACT has also commented sponse to “a financial overrun”. around 20% of what is a very upon Prof Drummʼs reported Yet this embargo subsequently generous salary. €70,000 bonus. had a severe impact on service “That the bonus should be In a statement, the union said provision causing “considerable awarded at a time when re- it “noted with interest” this pay- hardship to service users and sources are supposed to be ment covered work done in 2007 staff.” scarce, and in a year when em- and claimed the HSE had intro- The statement continued: “IM- ployees of the HSE had their pay duced a recruitment embargo PACT believes it is inappropriate cut by 7.5% by the so-called during September of that year. this kind of approach to health ʻpension levyʼ, only adds to IMPACT pointed out the health service delivery should be the sense of injustice IMPACT body had said this was in re- awarded with a bonus worth members feel.” Picture: HSE INO chief Liam Doran addressing INO members outside Cork University Hospital in 2007 Picture: INO Nurses balloted over threats to pay MORE than 40,000 nurses and midwives members. In a statement, the INO said in the pay and conditions of public serv- in the Republic are being balloted on in- nurses and midwives, along with other ices are being actively considered. This dustrial action over threats to pay. public service workers, had already suf- fact, when taken with the McCarthy Re- Announcing the decision on October fered a significant cut in pay with the port and the governmentʼs approach to 6, the Executive Council of the Irish 7.5 per cent pension levy. the banks, where anything they require Nurses Organisation claimed the man- General secretary Liam Doran said: is immediately conceded, has left our date was being sought should the gov- “This ballot is being commenced Executive Council with no choice but to ernment or employers attempt to further against the background of the Govern- prepare for major industrial action to reduce the pay and conditions of its ment repeatedly stating that further cuts defend our membersʼ very livelihoods.” 10 UNION POST October 2009
Doctors link up to protest at jail threat looming over Dr Binayak Sen during Amnesty protest outside Queen’s, Belfast Queen’s pardon call for Dr Sen A “CHAIN gang” of shackled doctors paraded outside Queenʼs University in Belfast earlier this month to highlight the case of Indian paedi- atrician Dr Binayak Sen. Amnesty International claims Dr Sen was ini- tially imprisoned on “trumped up charges” in May 2007. It is alleged he passed letters between impris- oned members of a banned leftist group, de- spite his visits being supervised and facilitated by prison authorities. The human rights group insist his only crime was to highlight the negative impact of govern- ment policies on poor communities in central India. Speaking at the October 15 event and refer- ring to the universityʼs festival, Amnestyʼs pro- gramme director Patrick Corrigan said: “Festival time is an opportunity to celebrate our freedoms. This year Amnesty is giving festival- goers a chance to bring justice to a man who desperately needs our help.” Dr Sen is currently on bail awaiting trial. Pictures: Kevin Cooper photoline@supanet.com A TRADE UNION PUB FOR TRADE UNIONISTS Lunches served Mon - Sat 12pm - 3pm Talking bowls served Fri & Sat 3.30pm - 6pm Live music 6 nights per week Monthly art exhibitions The best choice of local & worldwide beers in the city No TVs or gaming machines REAL BEER • REAL FOOD • REAL MUSIC • REAL PEOPLE THE JOHN HEWITT 51 Donegall Street, Belfast BT1 2FH. 028 90233768 October 2009 UNION POST 11
UNI GLOBAL COMMERCE CONFERENCE UNIONS FORGE LINKS TO BUILD A BETTER WORLD MANDATE has hosted a major conference on the theme of building alliances with sister unions across the world to help create better working conditions for re- tail workers. The UNI Global Commerce Conference heard dele- gates stress the need for unions to work together and provide a strong voice for employees of multinationals. A total of 200 trade unionists from 36 countries and drawn from 51 unions at- tended the three-day event at the Crowne Plaza Hotel in Santry, Dublin. A highlight of the conference was the sign- ing of a global union recognition agreement by the Inditex Group – which owns Zara and Pull & Bear – on October 2. Welcoming the development, Mandate called for more global retailers to follow suit. General secretary John Douglas said: “This global agreement with Inditex is a true breakthrough in this difficult economic time and also a breakthrough for the trade union movement in general. “With more multinational retailers operat- ing than ever before, unions need to make a joint effort to ensure workers are protected and are provided with a decent standard of living into the future. “The time has come for a different set of values to underpin our economy and our so- ciety. “This global conference in Dublin is about providing decent work for workers in Ireland and throughout the world. “Employers, and in particular retailers, need to start thinking more along the lines of corporate social responsibility and provide their staff with a decent working environ- ment.” UNI is helping to build some of these al- Smiles from home: Japanese delegation, above, and representatives from Turkey, liances at companies where it has global below left. Presentations are made to the Mandate team, top, at the conference agreements with management. The alliances are intended to ensure these deals are en- forced. UNI general secretary Philip Jennings told delegates: “Global agreements are just pieces of paper. What makes them real is our workers on the ground. “While the signing of global agreements usually leads to better conditions and greater rights for workers at multina- tionals, we believe that an agreement is only as strong as UNI and the unions’ ability to enforce it.” Mandate general secretary John Douglas, Inditex deputy chairman Pablo Isla and UNI Global chief Philip Jennings at agreement signing Pictures: Moya Nolan ‘Brain overload’ fears UNISON backs jab drive A FINNISH researcher has claimed firms are disregarding the ef- UNISON has backed the UK governmentʼs swine flu vaccination fects of “brain overloads” on over-stretched employees. programme and urged health workers to get the jab. Prof Kiti Müller, who heads up the Brain and Work Research Karen Jennings, UNISON's head of health, said: “We are rec- Centre at the Institute of Occupation Health in Helsinki, claimed ommending all health workers have the swine flu vaccination, in that in the past it has been difficult to measure the problem. addition to the seasonal winter flu one.” But she believes experts will soon be able to guage the impact She claimed the union would work with Department of Health demanding mental tasks have on workers, who may also be suf- to ensure staff get the right information so they can make in- fering from pre-existing problems such as stress, sleeping dis- formed choices. orders and diabetes. Ms Jennings added: “There should be no shortcuts to safety A source said: “Addressing these problems is critical. All when it comes to getting the vaccine up and running. work requires planning and thinking. Overloading the brain in- “Ultimately, having the injection is down to personal choice, creases human error and a fatigued brain doesnʼt function well.” but we are supportive of the move.” 12 UNION POST October 2009
‘Recession proof’ primary sector INTO general secretary Sheila “These teachers must be used to TEACHERS union ASTI has warned of the devastating im- pact cuts will have on secondary level education in Ireland. Nunan has called for primary educa- reduce class sizes.” She also flagged General secretary John White tion to be “recession proofed” up the quality of teachers’ work claimed the future prospects of against the effects of the economic confirmed in a recent report by the young people were being harmed downturn. World Economic Forum which as a result. Speaking at an event marking ranked the quality of Irish primary He said: “The existing educa- World Teachers Day in Dublin on education ninth out of 131 countries. tion cutbacks are devastating the October 5, she pressed the govern- This was in contrast with invest- system, with subjects dropped, higher and ordinary level pupils ment to invest in the sector. ment in primary education which learning in the same class, and Pointing out that teachers at pri- placed Ireland in 35th place. programmes for disadvantaged mary level in the Republic taught 20 Ms Nunan added: “Turning inade- pupils being eliminated. per cent more children than in other quate and uncompetitive investment “The cutbacks will have nega- EU countries, Ms Nunan said: “This in primary education into quality and tive consequences for the future year, over a thousand primary school a competitive advantage is due to the life chances of many pupils.” teachers are unemployed as a direct ability and dedication of Irish teach- Nunan: Invest call result of cutbacks in education. ers.” Picture: ITGLWF BUYERS BEWARE Garment workers chief Kearney: ‘Shame’ blasts fashion houses A LEADING trade unionist has ers in North America, Europe and themselves if fashion was worth so claimed high street fashion comes at a Japan.” Mr Kearney claimed “armies of much suffering. huge cost to Third World textile children – some as young as four” He added: “ We also have to ask workers. were made to work for a meagre ra- whether those who place orders in Speaking at the University of Pavia tion of food. such hell-holes should not be subject in Italy on September 25, Neil Kearney, He added: “Many, in countries like to prosecution and imprisonment who leads the International Textile, India have been bought for a few here in Europe for aiding and abetting Garment and Leather Workers’ Feder- euros from their parents or have been this cruel exploitation and destruction ation, highlighted the many abuses in kidnapped and then trafficked into of young lives.” the industry. slavery far from home. He outlined how conditions had ac- Pointing out that long working “They help in textile mills, they glue tually worsened in the last decade HORROR LOOMS hours, low pay and harsh treatment were the norm, he said: “Millions of shoes, and they embroider garments. Sometimes the sweatshops they work with working hours increasing by 25pc and wage slashed by the same per- A child textile worker at his loom in Pak- workers in these sectors – the fashion in are so ill-lighted and dark they lose centage. istan. It has been industry “ have become little more their eyesight. “Shame on those fashion houses, claimed that as many than slaves. “They are beaten when they cry for fashion brands and fashion retailers as half of the children “Most are women and most are their mothers, when they make mis- who drive this slavery. working in Pakistani young, some very young. takes or when they fall asleep from “And shame on those consumers sweatshops die before “All are spinning and weaving, exhaustion. In Pakistan it is estimated who buy these products without they are 12 bleaching and dyeing, cutting and that half of such children are dead be- questioning how they were made and Picture: International Labour Organisation/ M Schapira stitching, pressing and packing fashion fore the age of 12.” how they can be sold so cheaply when items primarily for brands and retail- Mr Kearney called on people to ask so much labour is involved.” UNITE backs tips rules Call on in-flight fatigue UNITE has backed new regula- some employers were using tips UNIONS representing airline sary to prevent fatigue. tions to prevent some employers and service charges to uplift the pilots across Europe have de- Moebus researchers in par- in the hospitality sector using tips pay of staff to the minimum wage manded changes to EU laws ticular looked at current rules and service charges to make pay of £5.73. on in-flight fatigue. that allow air crew to clock up up to minimum wage levels in the “The change in the regulations The second day of action or- a large number of duty hours UK. will be welcomed by workers in ganised by European Cockpit over a relatively short period of The union, which has cam- restaurants, pubs and hotels Association highlighted the im- time. paigned since 2007 to close the across the country." pact long flight times, shift They said the maximum daily work, early starts and jet lag flight duty time of 13 to 14 loophole in rules governing the Unite chief Derek Simpson can have on the health of cabin hours "exceeds reasonable minimum wage, welcomed a new called on the hospitality industry crew. limits, especially under exacer- code of practice to regulate how to be open about how they han- The Irish Airline Pilots Asso- bating circumstances and tips are distributed to staff. dle the tips and service charges ciation, which took part in the should be reduced". Maurice Cunningham, Unite re- left for staff. October 5 event, claimed the Worryingly, a recent poll of gional industrial organiser in He said: “The code will help EU had failed to act on recent 1,400 American flight crew Belfast, said: "Unite is proud that consumers see where the money scientific evidence that flagged found that 80 per cent admitted the Government has heeded the left for good service is going. up the problem. to having "nodded off" while in concerns of waiting staff in their “Unite is looking to the sector According to the Moebus Re- the air. long-running campaign to close to adhere to the best practice port presented to EU chiefs IALPA safety director Adrian the loophole in the minimum principles and ensure that cus- last year, a number of existing Hinkson said: "The European wage regulations. tomers have the information they European Aviation Safety Commission and the EASA “Consumers were outraged need to make an informed choice Agency rules conflict with have had the report for a year, when the union exposed that before they leave a tip.” what experts believe is neces- yet nothing has been done." October 2009 UNION POST 13
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