Social Conflict and Labor Unity: Governments Beware!

 
As 60,000 Brazilian auto workers returned to work after a court-imposed solution to their salary dispute, a new labor confrontation arose in neighboring Argentina. Both cases were related to the effects of hemispheric integration on formal unionized employment and benefits, but behind them is a severe social crisis. For the governments of Argentina and Brazil, an alarming common thread runs through both conflicts - trade union unity.

At the moment, the cohesion is tenuous at best, but increased unity between once antagonistic factions in these countries' union movements is big news. In the Brazilian case, it was the extraordinary cooperation between two archrivals, the CUT and Força Sindical. In Argentina, it is the coming together, albeit begrudgingly, of the traditionally dominant CGT Labor Confederation, its dissident "combative group" and the CTA, a self-styled progressive group of unions that supported the Alianza coalition during the last elections. These groups coordinated the third general strike with street demonstrations since the beginning of the De la Rua government. Their leaders are now seeking a "dialogue" with the Argentine government to change the economic and fiscal policies that are the cornerstone of a new agreement with international financial institutions.

Neither of these efforts at unity appears likely to last beyond the short term. In fact, when the time came for an agreement, the Brazilian labor centers pursued different solutions to the auto conflict. In Argentina, it is difficult to see any reason for the union groups to maintain a common front to negotiate with the government. But in both countries the ice has been broken. In reality, it is pressure from the informal sector that is bringing the labor movement together. In both the formal and informal sectors, workers feel that they are being left behind by the growing internationalization of their economies. In each country, demands for economic restructuring have diminished the earning power and benefits of key sectors in the formal labor force. In the case of Brazil, the auto workers demanded their first real wage increase (above inflation) since 1994. In the case of Argentina, workers are being threatened by the loss of health and retirement benefits as well as a five-year spending freeze that is sure to lower public sector salaries and employment. Union leaders in both countries see their gains sacrificed to revert the pressures of high unemployment and bankrupt social programs. They are also weary of the need to lower labor standards in order to compete in world markets. To them, these are the arguments pushed by international financial institutions, and they see their governments as failing to defend their sovereignty against the onslaught of international capital.

Labor unity strengthens demands for greater union and civil society involvement in trade negotiations and relations with international financial institutions. Within Mercosur there is a growing dynamism among institutions such as unions and other civil society groups in the mechanisms of trade policy formation. Similar progress can be noted in Chile. Unions and their civil society allies are becoming more sophisticated and are prepared to offer alternatives to and question national and international economic and commercial policies.

The prospects of new manifestations of labor union are great, but the road is rocky. The best bet to draw unions and other social actors together continues to be the question of international economic policy and integration. As social conflicts broaden and workers feel threatened, unions will come together. In this context, as opposed to the authoritarian past, social unrest appears to provide for greater democracy and civic participation.

Still lacking is clear information to bring all sides into a fruitful dialogue. This issue is sure to remain at the heart of the battle between governments and civil society. Traditional economic forces seem unable to accept the involvement of their critics. Both President De la Rua and José Luis Machinea, Argentina's minister of economics (not to mention the country's labor minister), have been extremely negative and personally insulting toward the leaders of the CGT (less so with their erstwhile allies in the CTA). At the moment, the governments and employers of Brazil and Argentina, like those of other nations of the Americas, are complaining about the insensitive attitudes and "unrealistic" protests of their labor sectors. Without a seat at the table when it comes to defining economic policy, the unions continue to revert to traditional methods of protest. They are being joined by the growing underclasses of these nations - the unemployed and the unprotected workers of the informal sector. This lack of an informed dialogue threatens stability and democratic governance in the Americas.