Ah, the fash. They just never learn. They’re repeatedly told that they’ll always lose in Melbourne, yet every so often they insist on raising their heads.
Sunday 24 June was the latest occasion. And yet again they lost. The “Aussie Pride Flag March”, organised by far right group True Blue Crew, attracted about 70 people to the Carlton Gardens at midday. 
Heavily guarded by Victoria Police, they intended to wave flags and march through the city to Parliament. To their dismay, a loud, energetic crowd of 150-200 anti-fascists, mobilised by the Campaign Against Racism and Fascism, disrupted their event, preventing the “Master Race” from marching. The action drew cheers and applause from cafe goers along the way. 
Having copped another defeat, the fascists dispersed. Some attendees went looking for someone to pick on. Blair Cottrell, infamous for suggesting that a picture of Hitler should be hung in every classroom, spent his afternoon harassing Dandyman, a popular street performer, for wearing a pink leotard. 
Cottrell was caught on video declaring, “I’m a fascist, what are you going to do about it?” But he overreached. A wave of revulsion swept social media. Two days later, 200 people filled Federation Square in a show of solidarity with Dandyman. 
Channel Ten’s The Project ran a segment on the incident, helping to highlight to greater numbers of people that fascists are active in Melbourne, and that there is determined resistance to them. 
All up, it was an encouraging few days of anti-fascist activism.

Michael Roberts

Hundreds stand against fascism in Melbourne

At their factory in South Dandenong, the Yakult workers’ protest was a sight for sore eyes. A solid picket that turns around trucks and stops others from leaving the site is a rare thing in Australia today. 
The Yakult workers’ strike was protected action, but because of the state of industrial laws in Australia, an effective picket is generally unlawful. This didn’t faze the Yakult workers, who maintained their protest for 10 days under the constant glare of Victoria Police. 
The National Union of Workers members were on strike for a 3 percent pay increase and rostered days off. Their demand had climbed from an earlier claim of 2.5 percent a year. After management rejected their original demand, the workers unanimously voted to strike and ask for more. 
A couple of years ago, it was a different story at the Yakult factory. In 2016, a ballot to authorise strike action didn’t get up. Management have learned that a lot can change in two years. 
“We’re fighting for our rights, and to show them that they can’t push us around any more”, one striker told Red Flag. “We’re showing them what a union is for; the union gives us our voice”, said another. 
The Yakult workforce is composed of migrants from around the globe. Red Flag spoke to workers born in Afghanistan, Sri Lanka and the Philippines. Some reported being told by the company that they would be sacked if they joined the union. Another tactic the company employs to undermine collectivity on the factory floor is to single out some people for pay rises. 
The company’s attempts to divide them were one of the workers’ main concerns. One striker explains the significance: “This is why we came out: we’re all the same, and we’re all workers. We want a collective pay rise”. Management’s tactics fooled none on the picket line. “We all do the same job, we’re all the same, why pay us differently? Because they don’t like unions.” 
It was this commitment to sticking together and standing up to management that won the Yakult workers all of their demands. While everyone from the secretary of the Australian Council of Trade Unions to the governor of the Reserve Bank laments wage stagnation, a small group of factory workers in Melbourne has shown exactly what it will take for workers to get back on the front foot.

Striking Yakult workers win wage rise

In the early hours of 5 June, according to the British Daily Telegraph, five key players in the Syriza government, meeting in the Maximus Mansion in Athens, took an important decision.
They decided that the government would not pay the International Monetary Fund (IMF) its debt repayment instalment due that day. Apparently, the IMF’s Christine Lagarde was caught badly off guard. IMF officials in Washington were stunned.
The Syriza leaders had the money to pay: it had been raked up from various sources, and they had told Lagarde that they would pay. But at the late hour, they decided not to pay but instead to “bundle” all the repayments scheduled for June into one payment at the end of June – or €1.6bn. This was allowable under IMF rules but had only happened once before – by Zambia in the 1980s.
The reason that prime minister Tsipras, finance minister Varoufakis and the other Greek government leaders decided to hold back payment was twofold. First, they were really angry that the IMF and the Eurogroup had completely refused to make any serious compromises on the terms of an agreement to release outstanding funds under the existing “bailout” package, despite the Greeks making huge concessions in the negotiations over the last few months since an extension was agreed in February. 
Also, the leaders knew that their Syriza party members and MPs were incandescent with rage at the attitude of the Troika (IMF, EU, European Central Bank). There was no way they were going to support any deal along the lines of yet further austerity and neoliberal measures demanded by the Troika. So the Greeks have fired a warning shot across the bows of the IMF and the Eurogroup, hinting that they may prefer to default rather than be forced into further concessions.
According to sources for the Daily Telegraph, the IMF representative in the negotiations, Poul Thomsen, has “pushed the austerity agenda with a curious passion that shocks even officials in the European Commission, pussy cats by comparison”.
The IMF is demanding further sweeping measures of austerity at a time when the Greek government debt burden stands at 180 percent of GDP, when the Greeks have already applied the biggest swing in budget deficit to surplus by any government since the 1930s and when further austerity would only drive the Greek capitalist economy even deeper into its depression.
As the Daily Telegraph summed it up: “Six years of depression, a deflationary spiral, a 26pc fall [in] GDP, 60pc youth unemployment, mass exodus of the young and the brightest, chronic hysteresis that will blight Greece’s prospects for a decade to come”.
The Syriza government has already made many and significant retreats from its election promises and wishes. Many “red lines” have been crossed already. It has dropped the demand for the cancellation of all or part of the government debt; it has agreed to carry through most of the privatisations imposed under the agreement reached with the previous conservative New Democracy government; it has agreed to increased taxation in various areas; it is willing to introduce “labour reforms”; and it has postponed the implementation of a higher minimum wage and the re-employment of thousands of sacked staff.
But the IMF and Eurogroup wanted even more. The Troika has agreed that the original targets for a budget surplus (before interest payments on debt) could be reduced from 3-4 percent of GDP a year up to 2020 to 1 percent this year, rising to 2 percent the next etc. But this is no real concession because government tax revenues have collapsed during the negotiation period.
At the end of 2014, the New Democracy government said that it would end the bailout package and take no more money because it could repay its debt obligations from then on, as the government was running a primary surplus sufficient to do so. But that surplus has now disappeared as rich Greeks continue to hide their money and avoid tax payments and small businesses and employees hold back on paying in the uncertainty of what is going to happen. The general government primary cash surplus has narrowed by more than 59 percent to 651 million euros in the 4-month period of 2015, from 1.6 billion euros in the corresponding period last year
The Syriza government has been able to pay government employees their wages and meet state pension outgoings only by stopping all payments of bills to suppliers in the health service, schools and other public services. The result is that the government has managed to scrape together just enough funds to meet IMF and ECB repayments in the last few months, while hospitals have no medicines and equipment and schools have no books and materials; and doctors and teachers leave the country.
Even Ashoka Mody, former chief of the IMF’s bailout in Ireland, has criticised the attitude of his successor in the Greek negotiations: “Everything that we have learned over the last five years is that it is stunningly bad economics to enforce austerity on a country when it is in a deflationary cycle. Trauma patients have to heal their wounds before they can train for the 10K [race].”
The final red lines have been reached. The Syriza leaders finally baulked at the demand by the IMF and the Eurogroup that the government raise value-added tax on electricity by 10 percentage points, directly hitting the fuel payments of the poorest, and that the poorest state pensioners should have their pensions cut so that the social security system could balance its books.
Further down the road, the Troika wants major cuts in the pension system by raising the retirement age and increasing contributions. The Syriza leaders were even prepared to agree to some VAT rises and pension “reforms”, but the two specific demands of the Troika appear to have been just too much.
As Mody put it: “I am frankly shocked that we are even having a discussion about raising VAT at all in these circumstances. We have just seen a premature rise in VAT knock the wind out of a country as strong as Japan”. As for pensions, they have already been slashed under previous bailout agreements with the Troika. Main pensions have been slashed 44-48 percent since 2010, reducing the average pension to €700 a month. Contributors to a supplementary scheme receive a top-up averaging €170 a month. About 45 per cent of Greek pensioners receive less than €665 monthly — below the official poverty threshold.
The Troika wants more. It is pressing for across-the-board cuts in both main and supplementary pensions; the abolition of a special monthly stipend for pensioners receiving the lowest benefits; an increase in the retirement age to 67; the ending of special arrangements that allow working mothers and people in so-called “dangerous” occupations to retire early on full pensions; and the merger of dozens of sectoral pension funds into three main funds.
The horrible truth is that none of these further cuts would be necessary if the Troika had just cancelled some of Greece’s public sector debt back in 2012, when the debt was “restructured”. Instead, the banks of Germany and France were paid off for their holdings of Greek government bonds with just a small haircut, and the burden of the debt then fell on the shoulders of the new eurozone bailout institutions and Greece’s own pension funds. Greece’s pension funds lost an estimated €25bn of reserves that were held in government bonds as a result of the debt restructuring. They have been unable to replenish them.
Meanwhile, contributions to the system fell sharply as unemployment soared above 25 percent, and outlays rose sharply as more than 60,000 public sector workers opted for early retirement, fearing their jobs would soon be eliminated.
The reality is that Greece can never pay back these loans. Greek capitalism is in a deep depression and in deflation. The OECD has just slashed its Greek GDP growth estimate to 0.1 percent in 2015 from 2.3 percent in its previous forecast, published last November. So the debt burden is rising, not falling, despite (and partly because of) austerity. The IMF recognises this and suggests that the Eurogroup agree to a haircut on its loans (while the IMF still expects full repayment of its loans!).
The Eurogroup has already agreed that no repayments on its debt need be made until 2020, but won’t agree to a debt reduction (yet). And both the IMF and the Eurogroup want to cut the debt in the meantime and thus are demanding more austerity measures. Syriza has made a very modest proposal to cut the debt burden in the future, but this proposal has been ignored by the Troika, at least until Greece capitulates on the current bailout terms.
The Greek government is running out of cash to pay back the IMF and the ECB, and very big repayments are scheduled for July and August. It will definitely run out of money by the end of this month, when the choice will be between paying the IMF the bundled-up debt or paying government workers their wages.
The cruel irony is that if Syriza agrees to the demands of the Troika on VAT, pensions and other austerity measures, the money it receives under the existing bailout agreement of €7.2bn and some €1.9bn in held back ECB profits on Greek bonds would just be immediately transferred back to the IMF and the ECB! Nothing would touch the side of the Greek government to pay its employees or suppliers.
So even if a deal ensues in the next fortnight (and it will have to be done probably by 18 June, when the next Euro summit takes place, so that the German and Greek parliaments have time to endorse the deal), almost immediately negotiations will have to be concluded on a new package so the Greeks can meet repayments to the IMF scheduled up to April 2016 and to finance any deficits and interest payments down the road. Greece will be tied into another five years of austerity.
The late night decision of the Syriza leaders shows that they have reached the end of their tether and it will not be possible to persuade their own party to accept Troika demands, which would mean accepting in full everything that the previous New Democracy government agreed to. If that happened, what would be the point of a Syriza government, supposedly elected to reverse austerity?
According to opinion polls, the Greek people still overwhelmingly want to stay in the eurozone and still give strong support to Syriza, but support for the government’s negotiations with the Troika has been fading. The people want a deal, but they don’t want austerity. This appears to be an unresolvable conundrum.
What next then? Assuming that the Troika does not blink and drop its latest demands and assuming that the Syriza leaders do not capitulate, default on the debt will take place at the end of this month. The government will have to take steps to introduce capital controls to stop the flow of funds out of the banks and abroad, already sizeable in the last few months.
In my view, Syriza would finally have to grasp the nettle and take over the banks; reverse all austerity measures agreed to; launch a program for state investment and jobs and appeal directly to labour movements in Europe for a Europe-wide program of action over the heads of the Euro leaders. Up to now, Syriza has failed to do this, but it is not too late to start at 10 minutes past midnight.
As I said in a post last March: “The issue for Syriza and the Greek labour movement in June is not whether to break with the euro as such, but whether to break with capitalist policies and implement socialist measures to reverse austerity and launch a pan-European campaign for change. Greece cannot succeed on its own in overcoming the rule of the law of value.”
----------
First published at thenextrecession.wordpress.com.

Hundreds stand against fascism in Melbourne

Striking Yakult workers win wage rise

Ten minutes past midnight in Greece

Other Media

Shop

Manage Your Subscription

Contact Us