Home / Business and Politics / Luc Triangle (IndustriAll): Without tourism, you would be the poorest and least developed country in the EU

Luc Triangle (IndustriAll): Without tourism, you would be the poorest and least developed country in the EU

For over a month, we have been arranging an interview with Luc Triangle, the General Secretary of the largest European federation of industrial unions IndustriAll. He first postponed due to a trip to Ukraine, where he advocates that not all workers, especially from strategic industries, should be mobilized into the army, and then he spent more time in Turkey, where he came to support both the industry and workers who have lost not only their jobs but also numerous family members and often live in tents at the sites of destroyed plants where they once worked. In recent weeks, he has been very active in France regarding union protests against raising the retirement age.

And this is just the tip of the iceberg of activities that the largest European industrial union is currently engaged in. All of Europe is facing countless challenges; some industries have not even recovered from the consequences of the pandemic and disrupted supply chains when we were hit by the energy crisis and then a real war on European territory.

How is European industry coping with these challenges?

– European industry had challenges even before the war that required deep reflection. One of the biggest such challenges was and still is the Green Deal, i.e., the green transition and transformation of the economy and industry towards complete decarbonization by 2050. Although we, as a social partner, supported the green agenda, we are aware that this transformation of the industry will hit workers the hardest.

Namely, due to the changes that this policy mandates, up to 25 million jobs will change or be completely eliminated, and that, you will agree, is not a small number. Our position is that workers must not be collateral victims in this industrial transformation, and until a year ago, before the war, the majority of our activities were focused on protecting workers.

Which industries will be most affected by the new environmental protection rules?

– It is harder to list which industries will not be affected. The automotive and chemical industries will change drastically, all mines will close, the oil and gas production and processing industry will also be affected, and jobs in the production of plastics, glass, cement, and ceramics are at risk. All companies in these sectors will have to transform into industries that do not harm the environment, into environmentally friendly plants, and they will have to have carbon-neutral business processes. This transformation would look completely different if we left it to the administration and bureaucrats in Brussels. We had to get involved to protect those 25 million workers.

At the same time, we supported the green transition because we understand that it is the only way for the EU to maintain competitiveness in a global economy that demands green and clean industry, but at the same time, we insisted that a way be found for workers not to pay the price of the green transformation. For some, the price will be to further educate themselves, upgrade their skills to continue working on new technologies, but for the majority of people, jobs will be completely eliminated, and the question is where they will continue to work and how they will live. This will, for example, happen to hundreds and hundreds of workers in coal mines in Bulgaria, northern Greece, or Romania.

And then, due to the war in Ukraine, energy prices skyrocketed, which has only affected business results, as well as operations in the European industry, especially in its energy-intensive part. The chemical industry, glass production, cement factories, and many other energy-intensive industries had to halt production because, under such conditions, it is cheaper for them not to produce and do nothing than to pay high energy prices. That is why gas consumption in Europe has decreased.

Such business decisions have extensive and long-term consequences for European industry, and the fear of deindustrialization of the whole of Europe is becoming increasingly pronounced.

– That’s right. Namely, due to the high goals set by European green policy, combined with high energy prices, there is a real fear that part of European industry will be forced to relocate production from Europe to other parts of the world. Why maintain business processes on a continent where everything is so expensive, complicated, bureaucratic, and difficult when there are alternative options? An alternative for European industry exists, and some seem to be one foot out the door, which raises a big question we need to face.

What?

– Unemployment will increase, and this problem will be followed by demographic issues, and you in Croatia know this best. A country without industry rapidly loses its population as people emigrate in search of better-paying jobs. You and Bulgaria are the best examples. Bulgaria and Croatia in the EU are rapidly losing population due to the loss of industry, and your two countries are in the top five in the world regarding depopulation. You have lost shipbuilding, metal, chemical, and textile industries, thousands of jobs, and the people who worked in such industries have left and have not returned. That is why decarbonization is dangerous.

Industrial unions in Europe can motivate people to take to the streets because of all this, but not so much in Croatia. This is only successful for unions representing the public or educational sector, but even that is rare. How can this be changed?

– I would not agree; I have been to protests in Croatia that gathered several thousand people. But that was twenty years ago. You had strong unions in the metal industry, in the textile industry, but since you now have less and less industry, the influence of those unions is weakening. This scenario has clearly not affected public services, which is why unions in those sectors in Croatia are strong and can mobilize people to take to the streets.

But the problem with public services, which they must also understand, is that they are funded by the state, and the state generates its money from taxes. The highest taxes are collected when a product with added value is created, and that is done by industry – industry creates added value with its products. When there is no industry, there cannot, at least not in the long term, be strong public services because there will be no one to finance them.

Fortunately for Croatia, you have a tourism sector, so the loss of industry is mitigated in this way, but without tourism, you would be the poorest and least developed country in the European Union.

Read the rest of the interview about the situation in European industry in the printed or digital edition of Lider.

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