Leo Panitch and Sam Gindin continue their defence of the Tsipras government’s 
acceptance of the troika’s austerity program in the latest Jacobin. This time, 
they use the analogy of a union leadership caught between the employer’s threat 
of plant closure and a militant membership unwilling to accept the employer’s 
terms of surrender. The analogy is apt, but the sympathetic portrayal of the 
Tsipras leadership as a beleaguered but well-intentioned union leadership 
forced to take the tough decisions neglects the most salient facts: 

1. The Tsipras leadership does not, as the duo suggests, confidently return to 
the table with a strong strike mandate. One insider later reveals the 
leadership is dismayed rather than emboldened by the mandate given to it by its 
members. To the astonishment of the union’s secondary leaders and rank-and-file 
activists, it abruptly reaches out to the widely despised conservative union 
leadership it replaced on a reform ticket a few months earlier. Together they 
send a letter to the employer, proposing to settle on Troika Enterprises’s 
final offer, blithely ignoring the workers’ rejection of the proposed 
settlement only a day earlier. 

2. Sensing the Tsipras leadership’s desperation for a settlement, the employer 
imposes even more humiliating terms of surrender on the union, with further 
deep cuts to employee pay, benefits, and workplace rights.

3. The Tsipras leadership attempts to defend its actions as a “victory” against 
a cruel and heartless employer. “There is no alternative”, it tells its 
members. “The employer was going to close the plant.”

4. Critics within and outside the union remind the leadership that threats to 
close the plant are a common bargaining tactic used to intimidate timid union 
leaders and fearful members, and that these threats are mostly not realised. It 
is true there is a powerful faction which genuinely wants to close down the 
small Greek operation. But though the plant is effectively insolvent, most in 
Troika Enterprises regard the plant as a very small part of the business,  and 
the expectation is it can soon be restored to profitability by driving down its 
labour costs and robbing the pension fund.

5. In the background lurks the nagging fear, shared by all the company’s 
directors, of the contagion effect on its employees in its other subsidiaries 
should the union successfully take over the shuttered plant, modernize it, 
reorganize its administration, and begin to generate profits which are 
equitably distributed to its members.

6. In the aftermath of the climbdown, the Tsipras leadership begins to purge 
the union of its militant members, spurred on by Troika Enterprises and its 
former right-wing rivals inside the organization, and confident it can carry a 
disoriented and resigned base with it. It’s left-wing opposition vows otherwise.

https://www.jacobinmag.com/2015/07/tsipras-debt-germany-troika-memorandum/
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