Global trade unions push for Robin Hood tax

'We need a real hands-on approach to banking supervision and to excessive bankers' pay, and to shielding commercial and retail banking from irresponsible shadow banking and speculation.' - ITUC.

Ottawa (8 June 2010) - As G-20 finance ministers increasingly warm up to proposals for new taxes on banks and other financial institutions, trade unions around the world are calling for a firm and comprehensive agreement to re-regulate global finance, including the introduction of a Robin Hood or financial transactions tax (FTT).

Despite claims by Canada's host Conservative government that G-20 leaders may hold off as a group on adopting such a tax when they meet later this month in Toronto, the global campaign by labour for sweeping international financial reform continues to build.

"Current proposals to introduce new bank taxation and new limits on bank loans ... fall far short of the bold and ambitious action that is needed to deliver the necessary changes and quell the rising tide of public anger caused by speculative pressure on countries like Greece and Portugal," says Guy Ryder, general secretary of the International Trade Union Confederation (ITUC).

"We need a real hands-on approach to banking supervision and to excessive bankers' pay, and to shielding commercial and retail banking from irresponsible shadow banking and speculation," Ryder says.

John Evans, general secretary of the Trade Union Advisory Committee (TUAC), says concerns about preciously-guarded national sovereignty or disrupting the slow (global) economic recovery are misplaced.

"On the contrary, regulation is key to attaining recovery. Such concerns can be addressed by well-designed and coordinated international cooperation, and G-20 finance ministers should instruct the Financial Stability Board (FSB) to undertake comprehensive modelling to pave the way for the creation of a financial transaction tax at global or regional level."

Philip Jennings, general secretary of the UNI Global Union, says reports by the FSB and its labour members over the past year reveal the alarming extent to which governments and supervisory authorities have lost control over global finance.

"It is essential that all derivatives and alternative investments, including hedge funds and private equity, should be brought under the scrutiny of proper regulation and public authorities. Moreover, worker representation in bank and insurance risk management systems needs to be enhanced,"  Jennings says.

The ITUC represents 176 million workers in 155 countries and territories and has 312 national affiliates.

The message from the ITUC and from a growing number of countries worldwide conflicts with the decision by Canada's Conservative government, led by Prime Minister Harper, to oppose a global financial transactions tax and side instead with big banks and global financial corporations.

The proposed Robin Hood tax would not apply to most consumer transactions but it would apply to financial market transactions such as the trade of stocks, bonds, foreign exchange and derivatives.

Estimates vary on how much revenue such a tax would generate – depending on the rate and the range of transactions covered. The Austrian Institute of Economic Research (AIER) estimates it could yield $650 billion a year globally.

NUPGE

The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE

More information:
• Lively debate likely on Robin Hood tax, says Harper
• NUPGE asks Liberal MPs to support Robin Hood tax
• NUPGE endorses Robin Hood tax on banks
• Harper should reverse opposition to Robin Hood tax
• Global campaign calls for Robin Hood tax on banks
• Robin Hood tax campaign spreads to Canada
• 24 hours for the Robin Hood tax
• Harper sides with banks over social services
• Trade Union Statement to the 4th Plenary of the Financial Stability Board (FSB)