Schröder Gets Earful at May Day Reform Showdown

German Chancellor Gerhard Schröder was greeted with whistles and boos as he attended the main union rally in Neu-Anspach near Frankfurt. Normally such an event would be a friendly setting for Schröder, since the unions and his Social Democratic party (SPD) are historically political allies.

But unionists and the left-wing SPD members have been up in arms, ever since the chancellor announced his “Agenda 2010” package of social reforms last month. The proposals aim to cut Germany’s generous unemployment benefits and loosen job protection rules.

“I didn’t know that whistles counted as part of the unions’ arguments,” Schröder said as he fought to make himself heard over a chorus of boos and whistles.

Reaffirms reform course

Despite the inhospitable reception, Schröder reaffirmed his intention to push through the changes he deems key to reigniting Germany’s stalled economy and saving its generous welfare system.

“Those who believe it’s enough simply to hold on to what we’ve already got don’t understand the challenges,” he said in his speech to 3,000 people. “I’m convinced that our agenda is the path we must take.”

Opponents to Schröder’s reforms hope the May 1 labor marches under the motto “Reforms yes – social cuts no thanks!” can cause the government to alter its course. At demonstrations across the country union leaders stepped up their rhetorical attack.

“What we want is not the deconstruction of the social system, but rather a socially just reconstruction,” said head of the German Trade Union Federation Michael Sommer, who spoke after Schröder in Neu-Anspach. “Whoever wants to successfully modernize has to know that it can only work on a basis of social justice.”

Threat to resign

In an attempt to impose discipline on left-wing SPD members of parliament, Schröder on Monday implied he would quit if his party didn’t support his reform course. The party’s leadership voted to back the government’s proposals at a special SPD congress to be held on June 1, but left-wing hardliners have vowed to force a showdown over the painful reforms.

The internal SPD rebellion heightens the importance of the May 1 demonstrations, since the government doesn’t want to see the hardliner’s hand strengthened by having anti-reform sentiment spill over into the general populace.

“We will do all we can to keep these measures from becoming political reality,” said Klaus Zwickel, head of engineering union IG Metall, at a May Day rally in Bielefeld.

Complicating matters even further, Schröder and the SPD reformers will have to make sure -- if they win -- that the left-wing and the unions aren’t alienated from the party, which could jeopardize their political support in future elections.

Some observers believe the unions will have little choice but eventually to go along with the government’s reforms for fear of isolating themselves and minimizing their future input on policy decisions. But on Thursday, organized labor was pulling no punches.

“I expect that on May 1 and over the coming weeks many people will make clear that they expected different policies from this government,” Frank Bsirke, leader of services trade union Verdi, told NDR radio.

Walking a fine line

Schröder therefore will have to tread a fine line on Thursday as he attends rallies with top union leaders. That means he will most likely stick to tried and true themes of social justice, while leaving the political ankle-biting to others.

Bundestag president and SPD parliamentarian Wolfgang Thierse took on the rebels on Wednesday, saying the party could stray from the reform course only at its own peril.

“The Social Democrats have no alternative -- the price would be (our) very survival,” he told the Berliner Zeitung newspaper.

Business leaders also supported Schröder’s plans ahead of the organized labor’s big day on Thursday. “Now is not the time for blockades and backing down,” said Dieter Hundt, who heads the German Employers Association.