Two steps forward, one step back
"Rewriting the regulations: how the World Trade Organisation
could accelerate privatisation in health-care systems"
by Allyson M. Pollock & David Price, The Lancet
09 December 2000
"The World Trade Organisation (WTO) is drawing up regulatory proposals which
could force governments to open up their public services to foreign investors
and markets." "The legal tests under consideration would outlaw the use of
non-market mechanisms such as cross-subsidisation, universal risk pooling,
solidarity and public accountability in the design, funding, and delivery of
public services as being anti-competitive and restrictive to trade."
"Most European health-care systems guarantee access to health care as a
universal right. Because of this, health care is funded either through
general taxation or social insurance with the role of for-profit firms
severely limited or banned altogether. To extend rights of access for private
firms, the WTO, with the backing of powerful trading blocs, multinational
corporations, and US and European governments, is attempting to use
regulatory reform to challenge limitations of private-sector involvement.
But this amounts to a challenge to the principles that lie at the heart of
social welfare systems in Europe. The new criteria proposed at the WTO
threaten some of the key mechanisms that allow governments to guarantee
health care for their populations by requiring governments to demonstrate
that their pursuit of social policy goals are least restrictive and least
costly to trade."
And, in and accompanying editorial:
"US health-maintenance organisations, whose profits have plummeted through
market saturation and efforts by government and employers to limit
health-care costs, hope to restore profitability by expanding abroad."
The other side:
WTO NEWS
Brussels 27 November 2000
"WTO Secretariat hits false attacks against GATS"
David Hartridge, Director of Trade in Services Division, WTO Secretariat:
"We also have to be clear that public sector services, in health and
education for example, can and almost invariable do coexist in the same
jurisdiction with private suppliers without being in competition with them
and therefore without losing the status of governmental services. Police
services don't 'compete' with private security firms working alongside them."
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Cosatu threatens general strike over labour law changes
December 22, 2000
Johannesburg (Reuters) - The Congress of SA Trade Unions (Cosatu) warned on
Thursday that it will call a general three-day strike in March if the
government does not back down from proposed changes to labour laws which
threaten job losses.
Zwelinzima Vavi, head of the 1.8 million strong labour federation, told the
SA Press Association that if no resolution is reached, the federation will
embark on protests every three months.
"They've [government and business] got all the time to reach an acceptable
compromise with us. If they don't it's because they are not willing to do
so," he told Sapa. The first general strike would take place between March 28
and 30.
Cosatu, the main political ally of the ANC, has repeatedly threatened strikes
over the proposed labour law changes, which have yet to be passed by
parliament. They include stripping workers of the right to strike over
retrenchments and removing extra pay for working on Sunday.
Labour Minister Membathisi Mdladlana maintains that the government will not
ditch the amendments, which business groups say are vital to woo foreign
investors and create more jobs. South Africa's unemployment rate is estimated
at a crippling 30 percent, although evidence shows that informal jobs are
increasing.
On Wednesday, Cosatu demanded that state-run telecoms body Telkom reinstate 2
374 employees which it plans to lay off, saying that it may suspend its
agreement with the government on the restructuring of state-owned enterprises
as a result.
Analysts say that the latest objections from Cosatu may point to further
labour instability in the year ahead, and rising tension between the trade
federation and the ANC over the government's privatisation programme. The
labour amendments are expected to be made law by February 2001.
"It's a threat that's running through the privatisation initiative ... that's
why it's taking so long, but I think the government is highly committed," ABN
Amro's Colen Garrow said. "There's been speculation that if there is a
breakdown in the alliance it could be because of privatisation."
The government aims to raise R40 billion from the restructuring of state
assets over the next four years, starting with an Initial Public Offering of
up to 30 percent of Telkom late in 2001.
Senior Cosatu workers and the Communication Workers' Union staged a two-day
sit-in at the Telkom offices to protest against the job losses. It ended on
Thursday, when Telkom issued a statement saying that it had invested more
than R400 million in a social plan to minimise the impact of retrenchments on
employees.
"The company reconfirmed its willingness to consult with organised labour on
any future severance packages, be it voluntary or involuntary. It has since
November 2, 2000 invited CWU for consultations around these matters," Telkom
said.
Copyright 2000 Reuters Ltd.
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This press release highlights MNA's legislative priorities for 2001. A bill
to mandate safe staffing levels in all health care settings tops the list.
For more information on all the bills filed by MNA, including fact sheets,
and the text of the bills themselves, visit the MNA web site at
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