All India BSNL Pensioners Welfare Association’s Document
to International Conference of Pensioners & Retirees (organized by WFTU)
to be held at Barcelona (Spain) on 5th & 6th February 2014

Comrade President, Leaders from various countries and fellow delegates, we extend our heartiest greetings to all of you.

We have come from a developing country (India), the largest democratic, 2nd populous, 3rd largest standing army, 3rdlargest purchasing power parity, 7th largest by area, 11th largest in GDP (Gross Domestic Product) in the world.

We have come to a developed country (Spain) which is 5th largest in Europe, having 10th index rating in Quality of Life, 13th largest economy, 52nd largest in the world.   Spain is solar power leader in the world and it runs fastest train in the world.  No one can ignore Spain’s contribution in Sports and most successful football clubs in the world are ‘Real Madrid C.F and F.C. Barcelona.  Spain won FIFA world cup in 2010 and Rafel Nadal won Wimbledon 2010 in Tennis.

Both the Nations practice ‘Parlimentary Democracy’.  Both Nations have two houses of Parliament.  Both Nations are ‘Secular’ and do not have any state religion.  Both Nations are multi-lingual and multi-ethnic.  Both Nations have many provinces with ‘Indivisible Unity’ and federal in character.  Both Nations have free and compulsory education (6 to 14 age in India & 6 to 16 age in Spain).  Bull fight is common in both the Nations.  Both Nations have revolutionary background.

In India, the head of State is elected whereas the head of State in Spain is a Monarch.  In India, general elections are held once in 5 years whereas in Spain it is held once in 4 years.  Spain has ‘Gender Equality Legislation’ passed in 2007 and 50% of Ministers are women, Among the congress members 36.3% are women and 30% senators are women.  India is yet to pass a legislation for 33% reservation for women in Parliament and State Legislatures.

We congratulate WFTU for taking the initiative to form a separate Global organization for Pensioners and Retirees.  It is the need of the hour because there is a concerted and calculated attempt by most of the Governments in the world to reduce the quantum of pension by various methods and they call it as ‘Pension Reform’.

Reforms in civil service pension schemes in OECD countries include

1. Increase in pension age
2. Restrictions on early retirement
3. Reduced pension or increased service requirement
4. Change in updating procedures
5. Integration of civil service with General state scheme
6. Increase in contribution rates
7. Introduction of some form of Pre-funding
(Source Robert Palacios and Edward Whitehouse, 2006)

Governments advocates Pension Reform mainly for the following reasons:-
a)      Increase in Unemployment
b)     Rising Longevity
c)      Low Average Retirement Age
The average Retirement Age in OECD Countries is 63.9 for Men and 62.8 for women.  But it is to be noted that the average age of workers is 58.8 only.
In Poland in 2012 Prime-Minister Donald Tusk proposed to raise the Retirement Age of women from 60 to 67 and of men from 65 to 67.  Polish President Bronislaw Komorowski gave the reason for this reform because Pensioner/People in working age Ratio was 1:4 in 2010 which would become 1:2 in 2035.

Civil Servant Pension: The Genesis and Issues
Pension Payments refer to the periodical payments made to the individuals beginning with retirement which continue until death.  Pension provides lifetime income security for however long the retiree lives.  There are largely two forms of financing the same, first, the Pay as you go system (PAYG), an unfunded scheme, wherein the current workers meet the bill of the retiree payments (by way of tax resources raised by the government) and secondly, the workers save from their current income to earn their future retirement income, a funded scheme.  Thus the pension is a form of transfer of income from the working phase to the retirement phase.  Pension therefore serves two essential purposes.  The first is consumption smoothing over an individual’s lifecycle i.e. a person provides an income in retirement when someone is no longer working in exchange for contributions into a pension scheme when they are.  The second is insurance, especially in respect of longevity risk-the uncertainty attached to an individual’s life.

There are two forms of pension.  Civil servant pension, payment made after retirement to its employees who were engaged in the discharge of fiscal responsibilities of the Government from time to time.  The second one is a welfare measure provided to various sections of society such as old, destitute, women etc.  The criteria for these two are different and mixing up these two forms of pension payments could lead to very erroneous conclusions.  Decisions based on such conclusions could result in faulty policy design.  An important aspect is that while the old age related pension payments are related to the demographic status of a society, the civil servant pension is directly dependent on the employment policy of the respective governments in the corresponding past period.  Larry Wilmore observed that Civil Service Pension is nothing but a ‘Deferred Wage’.

The main objectives for providing pension to Government employees are:-
• Securing the independence of public servants
• Making a career in public service attractive
• Shifting the cost of remunerating public servants into the future
• Retiring older civil servants in a politically and socially acceptable way

Military was the first to receive pension especially with regard to disability and survivor benefits.  English and Spanish Governments were providing pension to their veterans in 17th Century itself.  Naval pension was introduced in US before the ratification of its constitution in 1787.  According to a study by Mr. Raphael (in 1964) initially British civil service pension scheme was on a discretionary and individual basis.  Formal superannuation pension was introduced to custom officials in 1712 in England.  In 1810, British parliament passed an act for British civil servants scheme.  So, civil servants pension system is more than 2 century old.

Struggles against Pension Reform
There were several struggles in various countries against Pension Reform.  But the struggle in France is noteworthy to quote here.  France introduced Pension Reforms in 1995, 2003 & 2007.  In 2010, Nicolas Sarkozy regime introduced another pension reform which included raising the retirement age from 60 to 62, Increasing the contribution period to 41.5 years.  Against this reform, lakhs of workers were on the streets on 27/5/2010, 24/6/2010 and 12/10/2010.  It was a powerful movement and Sarkozy was defeated in the election which was held subsequently in 2011.  Francis Hollande was elected as President of France and the retirement age was restored back to 60.  But he also proposed a different reform which include 41 years contribution to get full pension which may go to 43 years contribution by 2035 and contribution to pension scheme increase by 0.3%.

Spain’s Employment Minister Fatima Banez said that the link between Pension and Inflation should be ended; Pension will depend on Spanish Economy and Life Expectancy; Pension will not increase more than 0.25% above inflation.  It would be linked to the amount of contributions paid into the social security system.  From 2019, pension payments will also be coupled to longevity which means if one gets older, pension will fall.  Nine million pensioners in Spain would be affected by this reform.  Banez also said that Spain would have a population of 37 million by 2050 and 45.94% of that population would be pensioners.  We understand that the real reason is high rate of Unemployment which stands at 26%.   Workers have conducted several struggles against this reform.

Civil Servant Pension in India
The concept of security for old age in India dates back to 3rd century B.C.  According to Sukraniti, a king had to pay half of the wages for people who had completed 40 years of service.  Royal Commission brought in retirement benefits for Civil establishments and Pension Act 1881 was introduced by British colonial rule.  But it was contributory pension and the employees contributed 4% of their salary.  It was made applicable to all Europeans but to only some Indians.  When ICS provident fund was introduced to non-Europeans the practice of contribution was stopped.  The provisions of pension benefits were strengthened in the Government of India Act 1935.  Thus, the civil servant pension system originated in India on the lines of the UK system.

There was a sharp increase in the employment base created for almost three decades after  independence under various five year plans.  But there has been a considerable decline in the numbers recruited from one plan period to another.  There was negative growth in eighties and nineties.  In 1960-61, the expenditure for Pay & Allowances was Rs.417 crore which was 2.7% of GDP.  It rose to Rs.36,704 crore in 2004-05 but it was only 1.18% of GDP.

The Central Government Employees Pay is revised once in 10 years on an average through Pay Commissions appointed by the Government.  So far 6 Pay Commissions were appointed after independence.  Government of India made an announcement for appointment of 7th Central Pay Commission and its recommendations would be implemented from 1/1/2016.  Till 3rd Pay Commission, Pension was not revised to old pensioners on the basis of pay revision.  But following the judgement of Constitutional Bench of Supreme Court of India on 17/12/1982 subsequent Pay Commissions recommended for pension revision on the basis of pay revision.  Price-rise is compensated by way of Dearness Relief and revised once in 6 months.  At present, 50% of Last Basic Pay is granted as Pension.  In the event of death of pensioner the spouse is getting family pension for life.  30% of Basic Pay is granted as Family Pension.  After the death of spouse also, family pension is granted to anyone like widowed/ divorced daughter, handicapped child, dependent parents for life. Almost all State Governments follow the same pattern for their employees and teachers.  Among the working population, only 12% have formal pension coverage.

Pension in India is statutorily guaranteed.  There was a land-mark judgement on pension by the Constitutional Bench of Honourable Supreme Court of India (consisting of 5 honourable judges including Chief Justice) on 17/12/1982.  It gave clarity on many issues.  It paved the way for revision of pension to past pensioners and ensured regular payment of Dearness Relief to compensate price-rise.  So 17th December is celeberated as ‘Pensioners Day’ in India by the Pensioners Organisations.  We herebelow quote some important portions from that judgement.

The “Magna Carta” of Pensioners
The basic contention as hereinbefore noticed is that the Pensioners for the purpose of receiving Pension form a class and there is no criterion on which classification of Pensioners retiring prior to specified date and retiring subsequent to that date can provide a rational principle correlated to object, viz., object underlying payment of Pensions.

The reasons underlying the grant of Pension vary from country to country and from scheme to scheme.  But broadly stated they are (i) as compensation to former members of the Armed Forces of their dependents for old age, disability, or death (usually from service causes) (ii) as old age retirement or disability benefits for civilian employees and (iii) as social security payments for the aged, disabled, or deceased citizens made in accordance with the rules governing social service programmes of the country.  Pensions under the first head are of great antiquity.  Under the second head, they have been in force in one form or another in some countries for over a century, but those coming under the third head are relatively of recent origin.

From the discussion three things emerge (i) that Pension is neither a bounty nor a matter of grace depending upon the sweet will of the employer and that it creates a vested right subject to 1972 Rules which are statutory in character, because they are enacted in exercise of powers conferred by the Proviso to Art. 309 and clause (5) of Art. 148 of the constitution; (ii) that Pension is not an ex-gratia payment but it is a payment for the past service rendered; and (iii) it is a social welfare measure rendering socio-economic justice to those who in the heyday of their life ceaselessly toiled for the employer on an assurance that in their old age, they would not be left in the lurch.
A Pension scheme consistent with available resources, must provide that the Pensioner would be able to live (i) free from want and with decency, independence and self-respect (ii) at a standard equivalent at the pre-retirement level.

Those who rendered the same service earned less Pension and are exposed to the vagary of rising prices consequent upon the inflationary inputs.  If, therefore, those who are to retire subsequent to the specified date would feel the pangs in their old age, of lack of adequate security, by what stretch of imagination the same can be denied to those who retired earlier with lower emoluments and yet are exposed to the vagaries of the rising prices and the falling purchasing power of the rupee?

Life Expectancy in India
It was 71.8 in 1951-61 for Men which rose to 75.7 in 1995-99.  For the same period for Women it rose from 73 to 77.7

Minimum Pension
There was no Minimum Pension before 1.1.1964.  From 1.1.1964 it was Rs.25/- p.m..  It was changed to Rs.40/- p.m. from 1.3.1970, to Rs.60/- p.m. from 1.1.1980, to Rs.150/- p.m. from 1.4.1982, to Rs.160/- p.m. from 1.4.1983.  IVth CPC only introduced the concept of 50% of Minimum of Minimum scale and under this concept it became Rs.375/- p.m. from 1.1.1986.  It rose to Rs.1275/- p.m. from 1.1.1996 (Vth CPC) which was changed to Rs.3500/- p.m. w.e.f. 1.1.2006 (VIth CPC). 

Maximum Pension

Before 17.4.1950 Maximum Pension per annum was Rs.6,000/-.  It rose to Rs.6,750/- from 17.4.1950, to Rs.8,100/- from 17.4.1956, to Rs.12,000/- from 1.1.1973.  From 31.3.1979 it became Rs.1,500/- p.m. and from 1.1.1986 (IVth CPC) it rose to Rs.4,500/- p.m.  The concept of 50% of the Maximum Pay in the Government as ceiling was introduced by IVth CPC.  The same concept was followed by Vth CPC & VIth CPC.  So the ceiling from 1.1.996 was Rs.15,000/- p.m. and from 1.1.2006 it was Rs.45,000/- p.m..

Family Pension
Family Pension was introduced in April 1950.  FP is eligible for those  who have put in a service of 25 years.  FP was 50% of Pension.  It was allowed for a total period of 10 years subject to a maximum of 5 years beyond date of retirement.  The service condition of 25 years was reduced to 20 years from 1.4.1957.  Family Pension Scheme 1964 was introduced and it was made applicable to all those who were in service as on 31.12.1963.  Upto 22.9.1977 two months gratuity was deducted towards Family Pension.  It was withdrawn from 22.9.1977 on the basis of Apex Court Judgement.  From 1.1.1986, on the basis of IVth CPC recommendations, upto the Basic Pay of Rs.1,500/- FP was 30% of Pay with a minimum of Rs.375/-.  For those who drew a Basic Pay of Rs.1501 to 3000 it was 20% of pay with a minimum of Rs.450/- p.m.  and for those who drew a Basic Pay above Rs.3,000 it was 15% of pay with a minimum of Rs.600/- p.m. 
The ceiling of Family Pension was Rs.1,250/- p.m.  As per Vth CPC recommendations from 1.1.1996 FP is granted @ 30% of Last Pay Drawn.  Minimum Pension of Rs.1,275/- is made applicable to family Pensioners also from 1.1.1996.  Both Son and daughter is eligible to receive FP upto the age of 25 years or marriage or employment whichever is earlier. But handicapped children are eligible to get FP for life. Vth CPC introduced the concept of ‘Enhanced Family Pension’ for 7 years or pensioner would have attained the age of 67 whichever is earlier, if the employee died in harness (i.e. 50% of Average emoluments instead of 30% of LPD).  From 1.1.2006 on the basis of VIth CPC recommendations, the period of 7 years was increased to 10 years (for those died in harness).  As per the existing orders, if the period of 7 years falls beyond 1.1.2006, then FP at enhanced rate should be given for 10 years.

Commutation
A portion of pension is granted as lump-sum at the time of retirement is called Commutation.  A commutation table is applied on the basis of the age at which one retires.  If one retires on completion of 60 years of age, then it is calculated as Pension X 12 X 8.194.

Upto 17.4.1950, 50% of pension was allowed for commutation.  It was reduced to 1/3rd from 17.4.1950.  From 1.1.1996 (Vth CPC) 40% is allowed.  BSNL retirees are eligible for this 40%.  Upto 31.3.1985 there was no scheme of‘restoration of commutation’.  On the basis of Supreme Court Judgement ‘Restoration of commutation’ was allowed after 15 years from 1.4.1985.  Though Vth CPc recommended for restoration after 12 years, Government did not accept that recommendation.  BSNL retirees are entitled for restoration of commutation after 15 years.

Death-cum-Retirement Gratuity
DCRG was introduced from 17.4.1950.  For each completed year of service it was 9/20 of emoluments with a maximum of 15 times.  It was changed to 1/4th for every 6 months service from 22.4.1960.  Maximum was raised to 16 and half times from 1.1.1973 ( III CPC).  The ceiling was raised to one lakh from 1.1.1986 (IVth CPC).  From 16.9.1993 20% of Basic Pay was treated as Dearness Pay for DCRG.  97% of Basic Pay was treated as dearness pay for DCRG and ceiling was raised to Rs.2.5 lakh from 1.4.1995.  On the basis of Vth CPC recommendations, from 1.1.1996, Pay + DA was taken into account for payment of DCRG (till then only Basic Pay was taken into account).  On the basis of VIth CPC recommendations ceiling was raised to Rs.10 lakhs from 1.1.2006.
Retirement Age
Normal retirement age of civil servants in various countries varies from 50 to 67.   In India, it is 60 for Central Government Employees and 58 for State Government Employees & Public Sector Employees.

Number of Pensioners in India
According to 6th Central Pay Commission Report (in 2007) total Central Government Pensioners were 38.41 lakhs (Defence – 19.40 lakhs + Railways – 10.18 lakhs + Civil – 5.83 lakhs + Postal 1.58 lakhs and Telecom 1.42 lakhs).  If Para-military forces and Public Sector are included, then the figure may touch 10 million.  In India we have 28 States and 7 Union Territories.  Their employees & Teachers are also getting pension.  We have authentic figures from two states viz. Tamilnadu has 7,00,350 pensioners as on 1/1/2013 and Kerala has 5,28,296 pensioners as on 31/3/2010.  Overall State Government Pensioners may cross 10 million.  So 20 million pensioners are in India out of a population of 1200 million (1.67%).

Expenditure
On an average a pensioner is getting pension for 20 years.  5% of pensioners die every year.  On an average Family Pensioner is getting pension for 10 years and 10% of Family Pensioner die every year.  During 1964-65 total pension expenditure was only 31.24 crore rupees.  It rose to Rs.26,205.07 crores in 2004-05.  The increase was due to three factors viz. 1) Implementation of Pay Commission Recommendations 2) Inflation (Price-rise) 3) Increase in number of pensioners. Pension bill would increase until 2036-37 and subsequently it would decline.  The average growth rate works out to 18.45%.  On an average pension expenditure for defence works out to 54.73% followed by Railways with 21.94% for the same period.  The overall trend and its increase are largely for pension payments to Defence sector.  In proportion to GDP (Gross Domestic Product) pension expenditure was 0.13% in 1964-65 which rose marginally to 0.93% in 2004-05.  On an average pension expenditure is only 0.51% of GDP.  A study by Centre for Economic Studies and Policy, Institute for social and economic change revealed that the pension liability would be 0.54% of GDP till 2024-25 after which it would decline.  It is understood that the Civil servant pension payments in OECD countries works out to 1.8% of GDP on an average and in Middle & Low Income countries it is 1.2% of GDP on an average.

Health Care
Railways, State (Provincial) Governments and Public Sector Undertakings are having their own health schemes for their employees and pensioners.  Central Government Health Scheme under the Ministry of Health and Family Welfare provides comprehensive health care facilities to Central Government Employees, Pensioners and their dependents.  It is available only in 25 cities.  Totally 254 Allopathic dispensaries, 19 Polyclinics, 78 Ayush dispensaries, 3 Yoga centres, 65 Laboratories and 17 Dental clinics are available in those cities.  Those who are living in those cities are eligible to take treatment.  The Employees and Pensioners have to pay a monthly subscription ranging from Rs.50/- to Rs.500/- depending upon their grade pay.  Pensioners can pay 120 months subscription in lumpsum and get a life-time card.  For those who are living beyond the limit of those 25 cities are paid a monthly allowance of Rs.300/-.

In BSNL (Bharat Sanchar Nigam Limited), a public sector undertaking in Telecom has got its own health scheme.  Out-door treatment and indoor treatment is allowed both to the employees and pensioners.  They have to take treatment in empanelled hospitals as in-patient.  For out-door treatment, they can submit original bills and claim reimbursement.  There is a ceiling for each individual.

Old Age Pension
The Central Government, under “Indira Gandhi National Old age Pension Scheme” is giving Rs.200/- per month for those who are ‘Below Poverty Line’ in the age group of 60 to 79 and Rs.500/- for above 80 years of age.  State Governments are providing such financial help to destitute, disabled, helpless widows etc.

Pension Reform in India
World Bank released a report called “The challenge of old age income security” in 2001 which said that 1/8th of world elderly live in India.

IMF working paper on Pension Reform in India states “Pension obligation or promises made by Government, which have potential of exerting pressure on Govt. finance, have been the subject of increased focus in assessing medium to long-term fiscal sustainability”.

National Democratic Government (headed by Bharatia Janata Party) led by Shri Vajpayee established Pension Fund Regulatory and Development Authority (PFRDA) through a resolution on 10/10/2003.  An Ordinance was promulgated on 29/12/2004.  A Bill was introduced in Parliament on 21/3/2005 but was opposed by Left Parties which were supporting the Government from outside.  However United Progressive Alliance Government (headed by Indian National Congress) led by Dr. Manmohansingh passed a resolution on 14/11/2008.  It was passed by Parliament in 2013 called PFRDA Act 2013.  Both the Ruling Party and main opposition party joined hands in enacting this Act.  Only Left parties were stoutly opposing this, inside and outside Parliament since 2003.  Though all State Governments have implemented this Act, only one State which is Ruled by Left has refused to implement it.

By enacting this Act, the concept of ‘Defined Benefit Scheme’ is changed as ‘Defined Contributory Scheme’.  It is called National Pension Scheme (NPS).  This NPS is mandatory for all Government Employees (Except Armed Forces) who joined the service on or after 1/1/2004.

There are two tiers in the scheme.  According to this new scheme, in tier one, 10% of Basic Pay + Dearness Allowance would be deducted every month from the salary and Government would contribute the equal amount.  The amount would be deposited in an account and the employee would be allotted a 12 digit number which is called Permanent Retirement Account number (PRAN).  The accumulated amount cannot be withdrawn by the employee before retirement.  Pension Fund Managers are appointed to manage and maintain the funds.  If the employee retires on completion of 60 years of age, 40% of accumulated amount would be taken to purchase an ‘Annuity’ and the remaining 60% would be given to the employee.  If the employee retires before completion of 60 years, then 80% of the accumulated amount would be taken for purchasing ‘Annuity’ and only 20% would be given to the employee.  7 Annuity Service Providers are appointed out of which 5 are Private Companies and only two are Public Sector Companies.

As on 2/3/2013, there were 44.93 lakh subscribers in NPS out of which 27 lakh are Government employees.  It has a corpus fund of Rs.28,400 crore.  The corpus fund is expected to reach one trillion USD by 2025.  This huge amount is going to be pumped into share market to boost the profit of capitalists.

The amount in Pension Account would be invested in purchasing bonds, government securities, share market etc.  All investments are subject to Market risks and there is no guarantee or assurance that the investment objectives shall be achieved.  Investment risks such as trading volumes, settlement risks, liquidity risk, default risk including the possible loss of principal.
Dean Baker (co-director for centre for economic and policy research, Washington) said “Privatisation means that you would not have a guaranteed benefit that you have today.  It would depend on how will your investments do or how well they have done at the point you retire.  He quoted the collapse of NASDAQ and Enron.  In Britain, Insurance companies could not honour their promises and the government had to compensate with 8 billion pounds”.

Joseph Stiglitz (Chief economic advisor to Bill Clinton, former vice-chairman and chief economic advisor, world bank, Nobel prize winner, Professor of economics, Columbia university) said that “Stock market does not guarantee returns.  It does not even guarantee that the stock values will keep up with inflation.  Privatisation would not protect retirees against the social security systems insolvency.  Argentina’s privatization of its pension system was at the centre of its fiscal woes”.

The working class in India have conducted several struggles including General Strikes (atleast one strike in every year) but it could not force the Government to retreat.  The weakness of the movement is that the employees who were in service prior to 1/1/2004 feel that their pension is safe.  Trade Unions could not educate the employees about the impending danger.

Our Organisation
We have formed our All India Organisation on 20th August 2009.  We have Branches in all States.  Within 4 years we could reach a membership of nearly 40,000.  We are functioning democratically.  Our Central Executive Committee meets regularly once in 6 months.  State Conferences are held once in 2 years and All India Conference once in 3 years.  We have settled many problems of the pensioners.  Pension Revision on the basis of pay revision to pre-2007 retirees was the most important achievement of our organization.  Nearly 60,000 pensioners got the benefit.  Their pension got doubled and they got sumptuous amount as arrears which they have not seen even during their service.  In India nearly 85 to 90% pensioners are unorganized.  In Telecom we are the best organized one but still nearly 50% of Telecom Pensioners are unorganized.  We are trying our best to rope them.

Conclusion
Most of the Governments in the world are dancing to the tune of World Bank, IMF & WTO.  The Governments are washing off their hands from providing social security.  They are advocating that everything would be decided by the Market Forces.  The gap between the rich and the poor are widening day by day.  Unemployment is enormous and loss of jobs are also increasing.  We are of the opinion that unemployment is the prime reason for bringing in pension reform.  Pensioners while protecting their right to pension, they should protest against unemployment in whatever manner they can.  In our opinion, pensioners who are in the age group of 60 to 70 are active in the movement.  Due to ageing and ill-health, pensioners beyond 70 are only silent spectators.  The conference should deliberate on all these aspects and arrive at a proper conclusion.

(G.Natarajan)                                                                                    (D.Gopalakrishnan)
General Secretary                                                                            Vice-President
 

Good afternoon colleagues, companions and comrades.

Go ahead an affectionate greeting and appreciation, both delegates and delegates, as guests and guests present, from different parts of the world, the Organizing Committee of this Conference, and to all the volunteers and volunteers who make it possible to be this new TUI.
This TUI's pensioners and retirees must face important challenges and tasks, many of them have been mentioned in the different shifts from Word. My statement doesn't bring about collected, which already has a large consensus.

The purpose of intervention is to claim that you among the Group of pensioners and retired persons, there is not only "older adults", as here has manifested itself, who have completed their active working life. Within this group, the pensioners count among their ranks workers working age, who have been away from their regular professions, by suffering from health problems, and that by the circumstances of age, are trying to raise a family, or should keep them with all intact economic loads; they have to pay a home that does not have property, have to meet the needs of a few minor children,... they are impelled to continue selling its work force to survive.

In these cases, these workers, and affect both attacks carried out on pensioners and retired persons, such as the increase in the rate of exploitation that takes place on the working class. The economic benefits that are offered to companies that they hire workers with disabilities, it makes them an easy and vulnerable target. Easy because everything is to lower the price of the labour force is exploited by the operator, and vulnerable because in practice it does not provide that disability, which may be limited, in the performance of the functions. Reaching, even cases in which is used to bully the self-esteem of labourer; "where are you going to leave your as well, who will hire you with your problem, more worth you appreciate what you have"...

Given the low incidence of unionization among the working class, and the high temporality in employment, we should aspire to organize to pensioners, that being able to change profession or branch, are not going to change in their condition as such. This TUI's pensioners and retirees that is born today, already boasts a great legacy both of life and struggle, provided by participants and their organizations. This experience should also be leveraged by active pensioners, to improve their capabilities of organization and struggle.

To give one example of this sector of the working class, and the challenges are facing, I put laundry Flisa, of the Group Once, company awarded the Prince of Asturias Concord. That promotes a wage reduction of 43% among its workers, moving their salaries from 1,000 euros, to 640 euros, for the same work.

Thanks a lot.

Barcelona, on February 5, 2014.
 

Comrades and Friends,

I bring fraternal greetings from the MUA Veterans and the Fair Go For Pensioners, and the retired movement of Australia.

I thank you all for the opportunity to be here to learn and understand your hardships which may be no different to ours in Australia.

Australia is no different than any other developed country in the world, for the greed factor has taken control through the ideological influence of the National and International Corporates. The Federal and State Governments are implementing the corporates agenda under the guise of creating jobs while not addressing the needs of our people as a whole.

The manufacturing and all related industries have gone off shore, the blood and guts of our country has been torn out. There is some resistance and struggle taken by some unions, allied with the social movement and the community.

With automation taking a leading role and the loss of thousands of jobs, coupled with jobs going off shore, we are not alone, the same concerns are expressed right around the developed countries with governments having no regards for the welfare of their people.

The huge profits of the corporates have never been in question, only the hard won conditions of the workers and retirees. There is an ever increase of the working poor and homeless, the intention is to throw the burden on those that can least afford it, where will it leave the people of our Nations The MUA Veterans have been involved in the campaigns to resist and defeat the attacks on our people, whether it be workers, retirees or the underleveraged we cannot sit back and let the structure around us fall to pieces while our countries are being drained of the resources and wealth.

To much emphasis is placed on our opposition social democratic parties which compromise to often,instead of leading a grass root movement, and doing what we have always done fought for the welfare and conditions that are needed in our societies.

In Australia we have three major retired groups that represent the retired pensioners of Australia, but we have great differences, two of the organizations do very little within the struggle, the first 0rgansition work only in the frame work of self- funded retirees and have no real political agenda other than looking after themselves.

The second organization of the retired community works only on its own agenda within the frame work of government policy but are not involved in a class struggle, they have the media outlets and employ personal but at the end of the day they compromise, for they receive funding from the government, which hinders their actives, The third which is called a “Fair Go For Pensioners” which is made up of the Retired Trade Unionists along with community and social conscious groups and minor political party activists and State Pension organization which is partly funded by the State and the membership but is very active and distributes newspapers to the aged and raises issues which are class concessions and struggle based, and this organsation is the one that the retired trade unionist work with.

Out of the seven states of Australia “Fair Go For Pensioners” is active in five states and the last two are developing , we meet on a regular two month bases for State and National act ivies and do phone hookups and communicate on a regular bases to keep the struggle alive.One of our national objectives is for an increase of the pension from 27.7% to 35% of the average male wage, this would enable a better life style for pensioners who have no other support other than the pension Those who are living on their own or renting under this system are doing it hard, the pension is made up of the average male wage in Australia, those that don’t have any income from union supers are living near the poverty line.

The States supplement concessions which differ in each state will no doubt come under attack, for the conservative governments are proceeding with this process right now with a Committee of Audit to advise the government where cuts can be made.

Workers and Pensioners have been under attack by both political parties with both in favor raising the pension age to 67 yrs. They both quote the ageing population as the excuse for the rise in eligibility for the pension in Australia blaming the cost, never the miss management of the people assets and the sell off all profit making assets, as late as just three weeks ago the disability pension was stopped to people under forty. The medical system is also under attack with some of the cost to be paid by the community, we pay already pay one and a half per cent in tax for the medical but nothing is said about the 5.4 billion that the peoples taxes subsidize the private health companies, its call public private partnership I call it public money for private profit, and this is only on a national level, we than have the states attacking the concessions which help make up the pensions, so we are battling on three fronts with the local government wanting to increase the rate cost and the developers sitting in the back ground directing what they want.

Comrades Australia has been under attack by mining companies, developers, political parties from both side of politics, the financial crash, plus the cost of the U.S. Bases in Australia without the people having the right to say no. Our manufacturing industries have gone off shore and unemployment, youth unemployment in some areas is 12% and our young people not developing skills, we have a lot to do.

Comrades the world is going through a change which leaves no corner of the world unturned, with a system of individualism as opposed to collectivism to the detriment of the Australian people, rather than the collective approach to life.

We see our young people influenced by this ideological onslaught through the American alliances with its emphasis on individuality, not understanding that greed cannot sustain itself it dies by its own making. Our Island nation is captured by the American corporates myth which is dangerous, within that their agenda is the move to do away with the union movement which is then an attack on the aged for there is no guiding position in place for the wage structure other than the push by the union movement for increase of wages, which the aged pension is made up of 27.5% of the average male wage, the cry by the conservatives is that wages are to high but never a word about their obscene salaries and share options not to mention the record profits, big business and the multi nationals are guaranteed less tax more profit at the expense of the workers pensioners and the underpliveraged.

Comrades as you all can see since the collapse of the financial system the attacks on workers and the communities has been in the fore front of both side of the political parties in most of our countries. Australia is no different, an international united front is needed to send the message to our communities, we are in the process of starting the campaign with leaflets at shopping centers around the country, talk back radio and whatever means we have to address to get to the public, it is a big ask but we have done it before, we must try for our children’s sake . We are of the opinion that it is imperative that we build up a mass movement for progressive change.

February 2014

Feb. 2014.

Contribution from the Danish Communist Party to the
Founding congress of the WFTU TUI of Trade Unions of Pensioners and Retired Persons

by Janni Milsted, retiree member of  the Danish Union of Children and Youth Educators (BUPL), member of the Residents' Association board in Mjølnerparken, Copenhagen, and chairman of Mjølnerparken’s  Senior housing Community Midgården.
Former shop steward, and national chairman of the BUPL 1976-1983.

 

Dear friends and comrades.
Firstly, on behalf of the Danish Communist Party I want to thank the WFTU for initiating and invoking this congress.
We support the stance - which has fostered this congress - that pensioners and other retirees - who all over the world suffer greatly due to the crisis of Capitalism - should act guided by the proletarian internationalism, and fight for basic labor rights and for a decent retirement pension as a global reality.
We must fight for free medication, public and free social welfare and decent public pensions.

Together with the other Scandinavian and Nordic countries, Denmark is known to be a rich country that offers a highly developed and relatively fair social security and welfare system.

To this, you used to add a completely free health care system with free hospitals, free general practitioners (doctors), and public sickness benefits. All this is state - meaning tax financed.
Other parts of the public health and social security system – for instance medication outside the hospital, dental treatment, and unemployment benefits – has elements of a public insurance: granted by the state, but with a strong element of individual payment and fees.

From the late 1950’es and on, our old age social pension was developed as a social welfare benefit, as a right for everybody - called the “people’s pension”. According to what is called a “universal welfare principle”, the law granted every residence in Denmark a pension, regardless of occupational status - currently from the age of 67.

In 1973, Denmark entered the EU (then the EEC) which caused an amendment to the law. Instead of simply “residence” as a condition, a residency of 40 years was – and still is - acquired.

This is due to the fact that no other country in the EEC had such a system, and that the EU-principle of free movement was feared to tempt EEC-citizens to spend their old age in Denmark. 
More often, the pension systems in these countries are based on insurance principles, linked to occupational activities, combined with the individual’s own savings.

And exactly this is a point that gives women a special reason to fight for the maintenance of the universal principle as opposed to the insurance principle.
The reason is that benefit systems linked to the labor market, to occupational activities and wages, are bound to cause gender un-equality!
Women as an average are not as many years in the labor market as men, and also as an average their wages are lower.

I want to stress the following: We are fully aware that our social welfare and social security system was a result of two elements in the class struggle:
After World War II, the position of the working class in the class struggle was strengthened. The mere existence of the Soviet Union and the other socialist countries was a threat to Capital. Denmark even had the GDR as a neighbor country.

The Socialist example - concerning social security and labor rights - enabled a strong and struggling trade union movement to push for improvements of the social security and welfare system.
In Denmark, it certainly belongs in the picture that during those decades, the cadres of the Communist Party of Denmark were a force in the trade union movement, and the influence of the party was notable.

During the 1960’es and 1970’es the people’s pension law was changed several times - and never for the better. Today, the amount of the social pension is low, and the principle of the “universal welfare benefit” has been violated.

Firstly, the amount of the pension has not followed the-cost-of-living adjustment for wages, and it has now reached a level that makes it very difficult for many pensioners to make ends meet.

Secondly, a return to self-insurance as a supplement to the social pension has been harmful. This system is maintained by the trade unions. As part of the collective bargaining a percentage of the worker’s wage, supplied with a percentage from the employer is deposited in a collective pension fund. According to the size of the amount paid out to the individual pensioner from the fund, her or his social pension is reduced.

A special “early retirement” benefit is financed by workers fees to their trade unions’ unemployment insurance fund, and by the state. It helped workers who were worn out, to retire at 60 years. Now it is being phased out. Considering the unemployment problem of this period, and cuts in the general unemployment benefit, this is another hard blow.

Today, under the austerity of the deep capitalist crisis, and the budget dictates of the EU, our whole social security and public welfare system is suffering serious cuts, and is deteriorating.

During later years, cuts in local government budgets have caused a yearly loss of 10.000 public jobs. Among these belong jobs in the social service and care for the elderly and old. Especially pensioners who need special treatment and assistance are gravely hit - and in a way that is violating their dignity as human beings.
The trade unions of workers and professionals in health care and social welfare are warning the public about the situation, and sometimes risking a fight.

However, by the trade union movement as such no step has been taken to organize a joint fight for the pensioners and retirees. In that respect we look forward to the inspiration that must arise from this congress.
Thank you!