Business as Usual?

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In Transport International 37: How is the transport industry dealing with the financial crisis? A special report from the International Transport Forum, by Sarah Finke.

Transport unions might have expected business to have learned some lessons over the last year’s economic downturn. Unfortunately, it appears to be a case of business as usual for the industry bigwigs from OECD countries who gathered in Leipzig this May.

The event had the ambitious aim of looking at challenges and opportunities in the global downturn. Again, unions might expect a renewed emphasis on public transport, but the topic was strangely missing from the event. Here, opportunities largely translated into further deregulation.

Key messages from the International Transport Forum

An efficient global transport system will play a significant role in the economic recovery.
Trade and open markets are keys to global recovery. Protectionist measures are not a sustainable solution.
Economic recovery in the transport sector should be environmentally sustainable.
It is necessary to secure a high level of long-term investment in transport.
International supply chains need to be secure and reliable.
Ministers are determined to continue to work together internationally.

There were warnings from the amassed 800 delegates about the spectre of renewed protectionism in the transport industry. “Further deregulation would serve as a permanent stimulus to the economy. Therefore, transport markets need to be opened to international competition, with opportunities remaining in all modes and in most regions,” the conference recommended.

Social impacts and modernisation

In a poorly-attended side meeting on social impacts, it was argued by the keynote speaker that such “modernisation” had increased transport accessibility in developing countries, opening up opportunities for economic growth by admitting local producers to global markets. Essentially the orthodoxy remains rooted that trade and transport are essentially good; so is unfettered competition.

As transport unions, ITF affiliates are arguing that transport is too cheap and that external social and environmental costs should be included in transport prices. But employers – and some governments – are still tied to the deregulation agenda that will drive freight costs down, ultimately with negative impacts for ordinary people.

There were some dissenting views. Andrea Kocsis of the German ITF affiliate Ver.di argued strongly for international labour standards as a response to employers that relocated to avoid workers’ fundamental rights. Christian Faber of the Austrian NGO Attac was a lone voice in pointing out the dangers of over-consumption in developed economies, arguing that “now it is time to pay back”. And the International Labour Organization’s George Dragnich (executive director of the Social Dialogue Sector) argued for workers to be listened to and fairly treated in the context of an economic crisis. But these were lone voices.

Infrastructure and environment

Positively, it was generally felt that transport infrastructure should be targeted for investment in the downturn, although cheaper stimulus packages were preferred “with short lead times, particularly suited to maintenance and upgrade work of infrastructure, in order to create jobs rapidly and to resolve chronic maintenance backlogs”. Investing in part-time working and training were better strategies than paying redundancy allowances, it was agreed by participants.

This annual event does not see transport workers as key to the industry – but the positions and policies such employers, ministers and academics discuss give the ITF a good indication of trends and challenges we face now and for the future.

Significantly, there was a great deal more talk about environmental questions than there was about the economic crisis. Global transport employers battled to best portray themselves as taking advantage of the global slump in order to re-invest and modernise.

Peter Bakker, chief executive of global delivery company TNT, said it wanted to be the first transport company to become fully electric; the shipping employers’ body, the International Chamber of Shipping, predicted zero-emissions shipping, via the use of nuclear energy. Meanwhile, the upcoming Copenhagen Summit must have been dominant in many a transport minister’s mind. The state of the economy may fluctuate, but it’s clear that environmental issues aren’t going anywhere – unions should take note.

Finally, one positive message was the contribution from Ray LaHood, US secretary of transportation, who said: “For centuries, men and women have travelled here by foot, by cart, by bicycle and by car and truck to buy and sell all types of merchandise. Such activity not only keeps local economies healthy – it also keeps villages, cities and entire countries connected. Let us work together to enhance those connections, and use transportation to unite our nations in peace and prosperity.”

Sarah Finke is ITF policy coordinator.

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Issue 37 - October 2009

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