Four North-East Labour MPs have urged Ed Miliband to swing to the Left and rip up his “tragic” commitment to further deep spending cuts.
Grahame Morris (Easington), Ian Mearns (Gateshead), Dave Anderson (Blaydon) and Ian Lavery (Wansbeck) are among 16 rebels issuing the challenge to their leader.
Their alternative election manifesto demands:
* A £30bn investment package – an “alternative way out of endless austerity” – funded either by higher borrowing, the state-owned banks, or a levy on the super-rich.
The MPs call on Mr Miliband to exploit 0.5 per cent interest rates, arguing it would cost just £150m a year to finance the package – which they say would create more than a million jobs, within three years.
Instead, they say: “All three main parties, tragically, seem to agree that deep spending cuts must continue to be made until the structural budget deficit is wiped out in 2019-20.”
* Rail nationalisation, by taking train operating franchises back into public ownership when they expire.
The MPs reject Labour’s plan to allow not-for-profit firms to bid for franchises, condemning it as timid and “wholly unnecessary”.
They claim privatisation costs £1.2bn a year, adding: “Over 80 per cent of the public want the railways re-nationalised, which must include a significant proportion of Tories.”
* Stronger trade union and employment rights, with a return to collective bargaining “as a check against excessive corporate power”.
The alternative manifesto blames the disappearance of union-negotiated agreements for a sharp fall in the share of national income going to salaries and wages – from 65 per cent in 1980, to 53 per cent in 2012.
And it says: “We should therefore actively promote sectoral collective bargaining and strengthen the rights of trade unions to recognition, and of their members to representation.”
The move laid bare how Mr Miliband will struggle to carry his party to make the deep spending cuts planned, even if he wins a small majority in May.
The left-wing group of MPs are keen to take advantage of the rise of the anti-austerity Green Party and of the SNP to push Labour in a more radical direction.
Meanwhile, Len McCluskey, the Unite general secretary, has made repeated threats to establish a new workers’ party if Labour loses after offering a “pale shade of austerity”.
Last year, Mr McCluskey urged the likes of Mr Morris, Mr Mearns and Mr Lavery to “put the brakes” on Ed Miliband if he tries to take Labour to the right
> Even further to the right, I think he means…
It followed the trio’s criticism of Labour support for an overall welfare cap and vote against compulsory unpaid work experience.
Source – Northern Echo, 26 Jan 2015
Disastrous economic policies are dividing Britain and destroying hopes of recovery, the leader of the country’s biggest union stated today (Monday 8 September 2014).
Len McCluskey, general secretary of Unite, called for collective bargaining to be reintroduced to arrest the decades long fall in the value of wages, and give workers a fairer share of the wealth they create.
Speaking in the debate on the new economy at the Trades Union Congress in Liverpool, McCluskey said:
“It was a Tory – Benjamin Disraeli – who said that Britain was two nations. He would certainly feel right at home today.
“Workers in our country are today facing the longest drop in their living standards since the 1870s when Disraeli was prime minister. But to be fair to him – he saw the class divisions in Britain as a problem to be solved. His Conservative successor in Number 10 seems to rejoice in them.
“Because every measure David Cameron and George Osborne take is designed to increase the squeeze on workers’ living standards and widen the already scandalous inequality gap.
“David Cameron used to talk of the Big Society. The truth is he’s created Two Societies – a society of Bullingdon Bullies, country suppers with Rebekah Brooks, tax cuts for the rich, a society which is a happy home for the hedge fund managers who fund the Tory party.
“That’s not so much the Big Society, more like the Greedy Pig Society.
“On the other hand there’s a society of people in fear – fear of losing their jobs or their homes, fear of paying the heating bills, fear over the future of the National Health Service, where the government strips away any protection the poorest can still cling to.
“The Tories will tell you that it’s all going to come right – that after six lost years for the economy we will all feel the benefits soon. But the truth is that trickle down has dried up.
“For the first time in anyone’s memory we have an economy which is apparently growing – while living standards for ordinary people are still falling.
“To misquote another famous Tory: ‘Never, in the field of human economics, has so much been produced by so many to the benefit of so few’.
“We need a social rebalancing and only trade unions can deliver that – because all the power is on one side of the negotiating table.
“Most economists now recognise that this is the biggest structural obstacle to sustainable growth in a modern economy.
“Collective bargaining can ensure that workers get back more of the wealth they produce. Trade unions stand for the productive economy and the people who are the real wealth-creators. In Downing Street they represent only the parasites.”
Source: Unite Union Media Release via Welfare News Service, 08 Sept 2014
TUC General Secretary Frances O’Grady explains why North-East workers need a pay rise.
Next Tuesday, April 1 will mark the fifteenth anniversary of the minimum wage – a historic milestone in British labour history.
Before its introduction in 1999 some workers were being paid as little as £1 an hour. The minimum wage has helped to end such abuse. It has proved to be a vital safeguard for employees across the North-East.
The Low Pay Commission recommends the level of the minimum wage. Its first ever chair Sir George Bain said last month “with more than one in five workers in Britain suffering from low pay, it’s time to talk about how we strengthen the minimum wage for the years ahead.”
Sir George is right. The minimum wage has undoubtedly lifted many out of extreme low pay, but research shows that many employees start work on the minimum wage and then stay there – failing to lift their pay above the minimum even after years at work.
In the North-East over 75,000 workers are on the minimum wage. Many are likely to stay on this rate for a large part of their working lives.
Lifting the minimum wage above inflation as politicians of all parties now support will help these. But many employers could do more by adopting the higher voluntary minimum standard known as the living wage – set at £7.65 an hour.
But it is not just those on low pay who have been left behind. New TUC research shows that the gap between the top ten per cent of wage earners and average pay in the North-East has grown by 5.3 per cent since 2000.
This should worry everyone. Those with the biggest pay packets may dismiss this as the politics of envy, but income inequality is bad for the whole economy. It helped drive the financial crash as banks lent the savings of the wealthiest to those in the middle who took out credit to keep up their living standards.
For some the pay squeeze has been even sharper. To take just one example, academic staff at the universities of Durham, Teesside, Newcastle, Northumbria and Sunderland have seen real-terms pay cuts of 13 per cent over the last five years. And this is just one instance of jobs that were once secure and decently paid slowly being turned into insecure work that can no longer deliver the living standards once thought fair.
This real wage squeeze is a key aspect of a wider cost of living crisis. Energy bills have risen three times faster than inflation over the last decade, while rail fares rose above inflation yet again this January.
Childcare and housing costs have also grown as a share of average income.
People are now spending over a third of their disposable income on essentials such as food and fuel. People think of the cost of living crisis in terms of prices but the main cause of the problem is that their wages are not going far enough anymore.
So can we do something about it? Or is it just an inevitable fact of life that living standards are in decline and that for the first time in history future generations will have lower living standards than their parents?
Economic growth alone is not the answer. The economy has grown by £60bn in the last four years but real household disposable income has barely increased. Disposable incomes have fallen by nearly £500 per person.
A first step is bolder increases to the minimum wage. Had it kept pace with prices since 2007 full-time minimum wage workers would be nearly £800 a year better off. We need to make up this lost ground but also ensure that companies who illegally pay staff less than the minimum wage face the full force of the law – including being publicly named and shamed.
Secondly, we need an increased commitment to the living wage from employers in the public and private sector so that their own staff, as well as those in their supply chains, can have a decent standard of living.
Employers in many sectors can afford to pay more without job losses. That’s why we need to find new ways for employers and unions to work together to set higher wages, agreed at a sector level by modern wages councils, so that workers and businesses can both get a fair deal.
More collective bargaining can stop employers skimping on pay and get wages rising back in line with prices. Even the International Monetary Fund (hardly known for its radicalism) concedes that the decline of collective bargaining has increased wage inequality and reduced wages for ordinary people.
This month the TUC is organising Fair Pay Fortnight – a series events and street stalls throughout the North-East – to raise awareness about Britain’s cost of living crisis.
We need to put fair pay at the top of the political agenda and ensure that policymakers and employers create more high-quality jobs to boost productivity and raise people’s living standards. People need more money in their pockets if local economies are to thrive.
The North-East needs a pay rise.
Source – Northern Echo, 26 March 2014