Latvian teachers suffering from the economic crisis

Boris Kagarlitsky, the director of the Institute of Globalization Studies in Moscow, writes in today's Moscow Times about the situation of Latvian public servants in general and teachers specifically:

"Pensions were cut by 10 percent and by 70 percent for those who continue working while drawing a pension. Allowances for children and family benefits were also reduced by 10 percent. Because interference in the private sector is prohibited, the government chose to cut the salaries of state employees. Now teachers, doctors and even policemen will take home 20 percent less in wages at the end of each month. In contrast to big business, the poorest members of society do not have government lobbyists."

To read the full article, go to:

http://www.moscowtimes.ru/article/1016/42/379061.htm

IMF bailout conditions for Bosnia

IMF announced a new $1.5 billion loan. Among the conditions announced in the brief press release announcing the loan are "fiscal consolidation and public sector wage restraint"

IMF rescue packages are imposing the same conditionalities as in the past, including public sector budget and wage cuts. This is in contradiction with IMF Head Strauss-Kahn's call for "coodinated global stimulus". (See also Romania)

For more information: http://www.imf.org/external/np/sec/pr/2009/pr09151.htm

Source: Global Unions Washington office