World Unions Versust Corporate Grand Theft

INTERNATIONAL TRADE UNION CONFEDERATION (ITUC)

ITUC OnLine
016/300109

Davos: World Unions Call for Action Against Corporate Grand Theft

Davos 30 January 2009 (ITUC OnLine): Global trade unions have welcomed
the comments by US President Barack Obama over "shameful" bonuses ripped
out of failing banks and businesses in recent months, as tens of
millions of workers worldwide face loss of their jobs and homes and yet
more businesses hit the wall.

Corporate bonuses in the US actually increased by 14% overall in 2008,
as top executives in finance and industry, many from companies heading
for bankruptcy, rewarded themselves for abject failure and pushed the
global economy to the brink of recession.

"Companies receiving public bailouts are inventing the latest financial
innovation - recycling taxpayers' money into company bonuses. This is
nothing less than grand corporate grand theft, and sadly it is not
limited to the US," said ITUC General Secretary Guy Ryder. "Some of the
culprits should be behind bars instead of propping up the bars here in
Davos. Their actions will further inflame the rage which is mounting
all over the world," he added.

In one of the most outrageous cases, Merrill Lynch bosses gave
themselves over US$3 billion as they cleared their desks a few days
before the faltering bank was taken over by Bank of America. Bank of
America itself has attracted a storm of criticism following exposure of
its campaign against proposed improvements on US workers' rights after
receiving a massive government bailout.

Wall Street's US$18 billion bonuses last year were mirrored in several
other countries, especially where governments copied the disastrous US
deregulation experiment. This amount alone could have provided two
years' education for the 75 million children around the world who have
no school to go to. It would save millions of jobs if put in the
pockets of the working people who really create wealth.

"Perhaps most outrageous of all, the very same financiers who created
and promoted this failed system seem to still have the inside track
advising governments how to come out of the crisis. This will only
further inflame the growing anger of ordinary people across the planet -
anger which will not go away while working families are paying the price
with their jobs and their homes," said Guy Ryder.

ends

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