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To: smolejv@gmx.net who wrote (34219)	5/23/2003 12:37:12 AM
From: elmatador	Respond to of 74559

German trade unions set for welfare showdown By Hugh Williamson in Berlin Published: May 22 2003 19:25 \| Last Updated: May 22 2003 19:25 When tens of thousands of German trade unionists take to the streets on Friday in nationwide protests over Chancellor Gerhard Schröder's economic reform programme, their message will be clear: throw out key elements of the programme or face the wrath of one of Europe's most powerful labour movements. The protests against the chancellor's plans to cut welfare payments, loosen job protection rules and reduce healthcare benefits, represent the most serious showdown between the labour movement and its traditional allies in Mr Schröder's Social Democratic Party since he took power in 1998. On Thursday Michael Sommer, chairman of the 7.7m-strong DGB trade union federation, said the programme, labelled Agenda 2010, was a step towards the "dismantling of the welfare state". He threatened to step up the protests if, as expected, the Agenda is endorsed by a key SPD conference on June 1. Yet Germany's union leaders this week failed to paper over divisions in their own ranks over strategy towards the reform plans. A group of three moderate unions criticised those leading the charge against the chancellor - the two largest unions, the IG Metall engineering workers and the services union Verdi - for taking such a hardline stance that the union movement was becoming marginalised. Speaking on behalf of the moderate unions, Hubertus Schmoldt, head IG BCE chemical union, said that the unions should "play an active role in looking for compromises" in Agenda 2010. He said tomorrow's protests were "no replacement" for debate on reforms. Such comments highlight the deep dilemma the unions face in seeking to influence Germany's economic modernisation. While union leaders are determined to defend the welfare state they spent decades helping to erect, most are also aware that, given Germany's pressing structural problems, they have to move with the times or face losing their place in the political mainstream. This dilemma was hardly apparent last year when the union movement backed Mr Schröder's re-election, and made successful interventions to modify the government's economic policy. In March, however, Mr Schröder took the risk of launching Agenda 2010, in the belief that his opponents in the left of the SPD and in the union movement would fall in line. The SPD's leftwing has largely done so. For the unions, however, the chancellor's pressure resulted in the revival of historic internal splits between modernisers and traditionalists. Despite recognising that the chancellor was unlikely to change course after Saturday's protests, there appears no consensus among unions on how to overcome their dilemma. IG Metall on Thursday published half-page statements in national newspapers attacking the Agenda's health sector changes as "one-sided" and "unfair", while Mr Schmoldt countered that the most controversial reforms should be tested on a pilot basis.