AKP Transfers Unemployment Fund to Employers

The government has passed a law in parliament that will allow money accumulated in the unemployment fund to be paid to the treasury from 2009 to 2012 and to be used as incentives for employers.

According to the law, three quarters of the accumulated money will be used from 2009 to 2010, and a quarter from 2011 to 2012. The planned area of use is the Southeastern Anatolian Project (GAP).

In addition, the fund is also to pay for the unemployment insurance that employers pay for their workers, and for certain incentive packages for employers.

After President Abdullah Gül had vetoed part of a law on private employment agencies, the ruling Justice and Development Party (AKP) has taken out the relevant paragraphs. However, Gül had not vetoed the use of the unemployment fund.

If the law, which has been passed by the general assembly in parliament, is not vetoed by Gül, it will come into effect.

Protest by trade unionists

Süleyman Çelebi, president of the Confederation of Trade Unions of Revolutionary Workers (DİSK), has expressed the confederation's opposition to the diversion of funds. If necessary, they would take the issue to the Constitutional Court, he said.

Çelebi accused the AKP's government of appropriating the unemployment fund rather than creating policies to prevent unemployment or making it easier to receive from unemployment benefits.

"The real number of unemployed has reached 6 million, but the number of people receiving unemployment benefits is 292,000. In addition, an unemployed person can only receive those benefits for an average of 6 months, and at most 80 percent of the minimum wage, i.e. 436 TL (around 200 Euros). The priority of the political government must be to stop policies that create unemployment and to correct this distortion."

Labour organisations have called for an extension of the time that people may receive benefits, for an increase in the sum received, and for trade unions to be involved in the management of the fund.

Reaction by CHP MP

Speaking prior to the vote in parliament, MP Bayram Meral of the opposition Republican People's Party (CHP) said, "Such a law was not even on the agenda during the time of the military coup of 12 September."

He added, "The MPs of the government party can walk in the street because no one knows them. If they did, twenty unemployed people would become glued to you every time. Citizens want work, food and peace of mind."

As of June, the money accumulated in the Unemployment Fund amounts to 40 billion 696 million TL (around 19 billion 142 million Euros). (TK/AG)