30/12/2010
Economic vandalism:

Not voted for by the people not in the interests of this country
Working people in the UK can help stop the Conservative-led coalition from taking a wrecking ball to the fabric of daily life.That is the New Year's message to some 3.5 million workers across both the public and private sectors from their unions, the GMB, Unison and Unite, who say that the government's dangerous prescription of economic deflation and historically high cuts will not revive the economy but will instead bring it to its knees. The landmark joint message sees the three unions - the biggest in the UK - pledge that in 2011 they will inspire and support resistance to the cuts across the UK. They also vow to make the Spring elections the first referendum on the government's austerity programme.Such is the level of concern about the real intent behind the cuts - recasting the state so that the private sector can sweep in, allied to the fear that harsh cuts will cause endemic inequality across society and plunge a new generation into unemployment - that the unions have vowed to work tirelessly together throughout 2011 to pursue a sound economic alternative. The unions are furious that the government is using the cover of coalition and a whipped-up fear over the deficit to terrify people into acceptance of what is little more than the rolling back of social provision. Pointing to the mounting dissent among economic experts over the government's approach, they say there is no programme for growth but only polices which will lead to a devastating contraction in the UK economy at a time when the global economy is still exhibiting deeply worrying signs of recession.The unions say it is high time that the truth was told about the government's reckless policies. January will see the three embark on a programme of promoting an economic alternative to their members urging them to get active in both opposing cuts and making their voices heard at the May election, the first chance for large parts of country to vote on the government's cuts programme.Central to the unions' message will be the push for an economic policy based on:* Growth - and a clear programme for job creation* Investment to get the unemployed back to work* Maintaining universal, quality public services - and safeguarding them from costly private providers * A fair taxation policy, including closing tax avoidance loopholes and a transaction tax which will generate billions for the economy* Abandonment of welfare upheaval which will plunge families and communities into poverty * Regulation of the economy to restore trust and confidencePaul Kenny General Secretary of GMB said: "The deficit is not Labour's deficit, it's the bankers' deficit. The Labour Government had to borrow to save the UK economy from collapse due to the irresponsible actions of the bankers, a policy supported by the Conservatives in opposition."The banks' actions in pouring billions of pounds into risky and complex investments came unstuck and left tax payers and elected governments with a mess to clear up. This cost the UK £850 billion, a recession where we lost 6% of national output, two and half million unemployed, pay freezes, inflation rising and where taxation revenues fell suddenly."Unions had warned of the dangers of under-regulated financial sector and the banks now need regulating so it doesn't happen again. This is also the view of Mervyn King, the Governor of the Bank of England."Dave Prentis General Secretary of UNISON said: "It's clear that the Government is ideologically driven to massacre public services and bring the misery of unemployment and poverty to millions. This is a recipe for social turmoil on a scale not seen since the 80's. A whole generation of young people betrayed, facing a bleak future."Local Government is particularly hard hit by the cuts. 70,000 jobs have gone in the last months of 2010 and hundreds of thousands more will follow in 2011. This spells disaster for local communities and for people who need those services. The Big Society spin won't pick up the pieces of broken Britain's lost jobs and dashed hopes. "We need a Government that will keep Britain working by investing in our economy, our services and our future."Len McCluskey, General Secretary-designate of Unite said: "It is possible to pull the UK economy out of recession without the misery of mass unemployment. This government is ripping a huge hole in the economy by contracting spending and throwing one and a half million people on the dole. But where is the Plan B? Where will the new jobs come from? Certainly not from a private sector which is reeling from the global downturn."We know all too well how this government can swing the axe; what we need to see more of is can they actually step up to the job of creating employment. Strategic investments can reap rewards far beyond the original outlay - for instance, a £6bn investment in affordable social housing would build 100,000 new homes and create 750,000 new jobs in construction and the manufacturing supply chain. This makes more economic sense than paying people to sit on the dole."Economic activism means not sitting on your hands. It is the duty of our government to actively support job creation. Roll your sleeves up, support investment, unlock the capital funds held in the banks and start creating the jobs needed to replace the million or so you have destroyed."The three unions will be taking the message about the truth about the deficit and the Conservative-led government's approach to its members in the coming weeks, focusing on:A fair economy:· Fair taxes must be part of any solution. Systematically, companies and rich individuals have been avoiding more and more tax which means government squeezes greater amounts from working people.· End to indirect taxes like VAT which hit the low paid proportionally harder.· Regulation of the banking system to bring transparency; Government to use its controlling stake in UK banks to stop job cuts, excess pay and bonuses· A transaction tax on City dealings, including trade in stocks, shares, currencies and derivatives · A just welfare state which does not force people further into poverty and social exclusion Saving the NHS:· The massive top-down £80 billion re-organisation of the NHS in England to break it into small local commissioning units tasked with employing private companies to find other private health providers to submit the cheapest bid for public health services. · The down-grading of NICE will also see drug price rise and access to them severely curtailed. · GP consortia will see the return of the postcode lottery. · The scrapping of waiting lists will cause undoubted misery for countless people in need of treatment. · These policies are all designed to ensure the private sector and overseas private health companies exert control over access to health services - however the service is still being funded by the UK taxpayer.Good education for all:· Free Schools and Academies in England will force schools to compete in a local market. In some areas, e.g. Wandsworth, they are prepared to spend tens of millions of pounds to promote this vision even when there are surplus places in some schools and existing schools in need of repair. · The English student tuition fee hike to a maximum of £9,000 a year is not being introduced to deal with the current deficit, as it will bite after 2014 by which point the Chancellor claims the deficit will have been aid down, but to create a financial market place for colleges, courses and students.· The end result will be students from wealthy families going to elite universities and, if not deterred by the debts, other students seeking out cheaper courses at cheaper colleges in cheaper locations. Social mobility will be thrown into reverse.Economic activism· Investment to put UK manufacturing at the forefront of economic development,· Support to expand low carbon sustainable industries. · Reversal of the decision to block a £80m loan to Sheffield Forgemasters.· The urgent establishment of a Strategic Investment Fund, alongside the promised Green Investment Bank. · Energy pricing policies which recognise the needs of industry.· Public procurement processes to ensure maximum benefit for UK manufacturing.

Flintshire Council overpayment - UNISON response

Commenting on the overpayment of staff by Flintshire County Council, UNISON General Secretary, Dave Prentis, said:“The council say they have no money and are having to cut jobs and services, but this whole pay debacle shows they have no handle on their finances. “This is not the fault of hardworking staff and they must not pay the price for the council’s mistake. “Some staff have been overpaid over a number of years by up to £8,000, which is a huge amount for one person earning a low wage to repay, while other low paid staff have been underpaid. “We have put forward our recommendations to the Audit Committee and are supporting our members by dealing with this on a case-by-case basis.”

'Independent' consultants and Ministers should get their facts right on local government pensions

UNISON, the UK’s biggest union, with more than 600,000 members working in local councils, today called on consultants and government ministers to get their facts right on local government pensions. The call follows a claim by John Balfe, so-called “independent” pensions consultant, that the scheme’s liabilities had increased to £100 billion. The Communities and Local Government Minister, Eric Pickles, managed to muddy the waters even more by unsubstantiated claims that ‘town hall pensions are now costing over £300 a year to every household paying council tax."Heather Wakefield, UNISON Head of Local Government, said: “Another week, another attack on the local government pension scheme. These so-called independent pensions consultants and government ministers should get their facts right before they resort to crude scare-mongering.“Eric Pickles is plain wrong. Less than 6% of council tax payments fund pensions. More than 50% is made up of employee contributions and investment returns.“The local government pension scheme is in good shape, and is a vital way of allowing mainly low paid workers to save for their retirement. A report out this year confirmed that the scheme could cover all its liabilities for the next twenty years, without a single penny more in contributions. What’s more, the scheme invests hundreds of billions in UK stocks and shares every year – a huge boost to our economy. “With pensions, its vital to take a long term view. It is totally misleading to take an assessment of the schemes liabilities now and make claims for the future that don’t stack-up. All investments have taken a knock thanks to the financial crisis, but given time they will recover.” Key facts on the local government pension scheme: - The average local government pension is £4,000 per year, for women this drops to just £2,600, or less than £40 per week.- After intense negotiations, a new pensions agreement in local government was introduced in 2008, setting out terms that include workers paying 6.4% of their salary into the scheme. - Local councils get most of their revenue from business rates and from central government grants. In reality, less than 6% of council taxpayers’ rates goes towards funding the pension scheme. More than 50% of the cost is met by employee contributions and investment returns.- Research in 2006 showed that if the LGPS did not exist - based only on current pensioners – it would cost the taxpayer £2bn a year in increased means tested benefits and loss of tax revenue. It would also fuel increased take up of NHS and council care services. - Often overlooked is the huge investment power of the LGPS fund. In 2008 the total value of combined assets in England, Wales, Scotland and Northern Ireland, were £143 billion - 60% of which was invested in equities or shares, in UK and global stock markets. In the same year, more than £1 billion was invested in each of the top four FTSE companies. If the scheme were to close, and this investment was withdrawn, it would have a huge impact on the UK economy. - The LGPS is in better shape than a most other schemes. Even in the depths of the recession, investments provided nearly £3bn for the LGPS in England, accounting for nearly one third (27%) of the scheme’s overall income. Year on year, the scheme takes billions more in contributions and investments returns than it pays out in benefits. Last year, income from member contributions to the scheme in England alone increased by 15% - outstripping expenditure by £6 billion.- An Audit Commission report in 2010 stated that the LGPS could pay out all pensions due for the next 20 years without any further contributions.

"Miserable Monday" spells danger for local communities warns UNISON

UNISON, the UK’s leading public sector trade union, dubbed today “Miserable Monday”, after some of the largest cuts to council budgets in history were revealed in the Localism Bill. The union said that the scale of cuts spelled real danger for local communities. It warned that the increased freedom for local councils was simply a way for the government to push the burden of responsibility for making cuts onto councils. Heather Wakefield, UNISON Head of Local Government, said: “Today is “Miserable Monday” for councils, set to be hit with some of the largest budget cuts in history. This means a grim Christmas for thousands of council workers who are facing the prospect of losing their jobs next year. “Eric Pickles may talk about local authorities doing more with less, but the public should not be fooled; this is not possible. Cuts on this scale cannot be painless. Vital local services such as libraries and day centres, are already shutting their doors. Charges for others, such as home care for the elderly, and meals on wheels are on the up. After today’s announcement, this pattern will only gather pace. “The coalition is trying to rip the plaster off quickly, by front-loading the cuts. This spells real danger for services this year, and is a blatant attempt to get the pain out of the way long before the next election. But the scale of the cuts means that communities will be feeling the pain for years to come. “The new powers being given to councils may sound appealing, but they are simply a way for the government to wash its hands of taking tough decisions. Some services will be easy targets, with local authorities cherry picking only the easiest or cheapest services to provide. This will see local people who rely on difficult to provide, or expensive services, missing out on the support they need. “Meanwhile, the Bankers are still in line for their massive Christmas bonuses. Why are hardworking families paying the price for a recession they did not cause? There are real alternatives the government could and should have taken forward, that would have safeguarded jobs and recovery, and built a fairer future.”

UNISON members glowing mad over tuition fee hike join protest

UNISON members will be among those waving 9,000 glow sticks to symbolise government plans to hike up university tuition fees to £9,000, as part of student protests across the country tomorrow and Thursday.University staff, student nurses and other public sector workers, will join students in taking a stand against the savage plans during a series of regional rallies on the 8 December. On Thursday (9 December), UNISON members will be lobbying their MPs at Parliament, before a rally at the Victoria Embankment at 3pm. As it turns dark, the protestors will be waving the glow sticks.Christina McAnea, UNISON’s Head of Education, said:“It is a disgrace that poorer children will be put off from going to university, as higher education becomes the preserve of the rich.“Lib Dem MPs voting on the tuition fees on Thursday must dig deep into their consciences and stand by their pre-election pledge to vote against increasing tuition fees.“At the same time as hiking up fees, the government is cutting university jobs and services, withdrawing education loans, axing means-tested grants and making huge cuts to further education. The government is dealing out blows to students from all angles, but we will be backing them in their fightback.”