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Indybay Feature

Turkish government pledges new attacks on workers

by wsws (reposted)
Wednesday, May 14, 2008 :On May 9, the Executive Board of the International Monetary Fund (IMF) convened and completed the seventh review of its standby arrangement with Turkey, which was given final approval on May 11, 2005. The Letter of Intent for the review dated April 28 reveals that the AKP (Justice and Development Party), which heads the Turkish government, is preparing new attacks on the working class.
The letter notes: We have designed and plan to adopt soon a comprehensive reform package to reduce labour market rigidities and the financial burden on employment, which contribute to low employment rates and a large informal sector, ultimately reducing growth. The package: (i) reduces non-financial burdens, including the easing of special hiring and licensing requirements for private companies; (ii) expands active labour market programmes; (iii) eases restrictions on temporary employment; and (iv) reduces employers social security contributions by 5 percentage points, with additional targeted incentives for youth employment. We have ensured that the cost to this years budget is less than 1/4 percent of GDP.

This paragraph speaks for itself. The new package aims to increase surplus value and profits by allowing capitalists to pay less for hiring, licensing and social security, and by introducing more flexible workingi.e., increasing the level of exploitation of the working class. Of course, the loss of income will be funded by the population at large, in the form of either new taxes or new debts.

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