Tuesday, December 20, 2011
Fight the great pensions betrayal
With the honourable except of Mark Serwotka, leader of the PCS civil servants’ union, virtually every other official – leader is definitely the wrong term in this context – signalled in one way or another the end of the short-lived campaign over pensions.
They almost fell over themselves to meet a pre-Christmas deadline set by the ConDem coalition to reach a negotiated settlement covering more than two million local government workers, NHS staff, teachers, lecturers and civil servants.
Whatever agreement is reached, it will inevitably cut further into the living standards of public sector workers who are already the victims of a government-imposed pay freeze (which union officials, with their own fat pensions preserved in aspic, have meekly accepted).
On the eve of the talks, the government announced that it would unilaterally impose higher pension contributions on teachers and civil servants. Most civil servants and teachers will pay an extra 0.6-2.4% from April. Did the teaching unions walk away in the face of such a provocation? Not at all.
The only outright opposition yesterday came from the PCS which said it had rejected “the government’s latest attempt to force public servants to pay more and work longer for less in retirement”. It was promptly excluded from further talks.
And so the apparent unity of the 29 unions who staged a one-day strike of at least 1.5 million workers less than a month ago was fragmented at a stroke. The government’s strategy of divide and rule proved more successful than this feeble coalition could ever have imagined.
At a meeting at the Trades Union Congress headquarters, general secretary Brendan Barber, who has been in secret talks with the government throughout, stressed that further industrial action was off the table and negotiations would resume in the new year.
“We have reached a stage where the emphasis in most cases is in giving active consideration to the new proposals that have emerged rather than considering the prospect of further industrial action.” The proposals include the abandonment of the final salary basis for pensions in favour of career average salaries.
To seek a negotiated settlement after giving it everything you’ve got is honourable; to run up the white flag with a hardly a short fired is nothing short of cowardice in the face of an enemy that is waging open class warfare.
For all the fiery talk of general secretary Dave Prentis, the leader of Unison, it was predictably hot air. The union’s head of health, Christina McAnea, admitted that “we always knew this would be a damage limitation exercise aimed at reducing the worst impacts of the government's pension changes."
The TUC and union bureaucrats have implicitly accepted the principal reason for the attack on pensions – the government’s budget deficit that is the result of a recession precipitated by capitalism’s financial meltdown.
Public sector workers are, in effect, being told to pay for the crisis through higher contributions and worse pensions. Behind the scenes, the leadership of the Labour Party has worked might and main to get unions to abandon further strikes and do a deal with a government.
The last thing Ed Miliband wanted was a long-running strike campaign that could have fatally wounded a weak and divided coalition whose policies his party barely opposes (except to demand a harder line on crime).
PCS general secretary Serwotka, urged unions to fight the changes: "We should call further industrial action in the new year because this is so unfair, we have got to stand up against it... Our message really is that those unions will have to be accountable to their members for what they do."
A campaign to reject the sell-out over pensions (and the wage freeze) has to mobilise rank-and-file anger in ways that are linked to the removal from their posts of all those involved in this shoddy surrender. In some ways, it’s a last chance to save the trade union movement from total disaster.
Paul Feldman
Communications editor
Monday, June 06, 2011
Market and capitalism go hand in hand
Bit of a shock to the system when I read a press release from the Trades Union Congress this morning that attacks “the embrace of market capitalism by successive governments”.
But before you get too excited, the TUC is not actually suggesting that we should replace capitalism – just the “market” bit of it, as if you could do one without the other.
The radical language from Congress House is in connection with a new report about the decline over the last 30 years in the level of wages paid to millions of low and middle income earners.
Britain’s Livelihood Crisis by Stewart Lansley is a well-researched pamphlet about the development and consequences of corporate-driven globalisation. He shows that wages have been falling sharply as a share of the national wealth since the mid-70s. The share of national output accruing to wage-earners fell from a peak of nearly 65% in the mid-1970s to as little as 53% by 2008.
“Moreover, this collapse in the wage share has been borne most heavily by the middle and lower paid, leading to a sharp rise in earnings inequality. Some unskilled and semi-skilled jobs now pay little more in real terms – and in some cases less – than they did in the late 1970s,” he writes.
A rich minority have been taking an ever larger slice of the
The growth of poorly paid work is illustrated by the proportion of workers whose wages are at least a third less than the median (currently £11.09 an hour). This figure has almost doubled in the last three decades from 12% in 1977 to 22% in 2009.
What Lansley calls the “experiment in market capitalism”, promoted by Thatcher and then New Labour, promised that all citizens would be better off through an expanded economic cake. But it brought slower economic growth, renewed instability and three deep-seated domestic recessions. He warns:
The livelihood crisis and economic instability are now locked together – via soaring inequality – in a dangerous economic vicious spiral. This is because the rising concentration of wealth, driven by the collapsing wage and rising profit share, has not only led to the declining opportunities that underlie the livelihood crisis, but has also contributed to economic fragility. As relative wages fell and purchasing power sank, personal debt soared: as the newly inflated fortunes were turned into giant speculative bets, asset prices boomed. Hence the twin triggers of the credit crisis set in motion by the market experiment.
The analysis may be sound but the suggested remedies are totally inadequate. We have not lived through an “experiment” but a new phase of corporate-driven capitalism that emerged out of the wreckage of the collapse of the post-war system of regulation that collapsed in 1971. This was a not a policy decision but the response to a collapse of controlled expansion.
Capitalism broke free of these bonds because the drive for profit required the export of capital, the lowering of wages at home, the creation of new markets and a financial system that matched the globalisation drive. TUC general secretary Brendan Barber wants the an end to the “discredited model of market capitalism” and for a “prioritising of a fairer distribution of new wealth and jobs”.
That is simply not going to happen under this or any other government you might want to elect. Because not only do we have market capitalism, we also have a market state in which the political system is inextricably linked to big business and finance in thousands of ways.
The so-called experiment requires the termination of the capitalist system itself – both the economic and political sides of that debased coin. The system is unsustainable, driving millions into poverty and isn’t working. Reform is simply out of the question.
Paul Feldman
Communications editor
Tuesday, February 15, 2011
Bigger state no answer to 'Big Society'
Though difficult to pin down, the BS project could be understood as Cameron’s libertarian response to a top-down, bureaucratic state that vast swathes of the population despise and want nothing to do with.
Perhaps Tory prime minister Cameron understands that should this attitude to the state continue unchallenged, there’ll come a time when it loses remaining legitimacy. And that point, anything could happen, as events in Egypt have shown.
So the Coalition’s plan is to shed the state’s responsibility for things like forests and involve the unelected, unaccountable “third sector” of charities and the like to bid for services currently provided by local councils. Other community projects will be able to access funds from a BS bank and the rest of us simply have to volunteer.
Labour and trade union leaders like Brendan Barber have simplistic responses which reveal much about their fondness for the capitalist state and litle else. Labour crudely says the BS is a “cover for the cuts”, which is a bit rich for a party implementing the government’s draconian policies at local level without any resistance.
Just for the record, the previous New Labour government contracted out huge chunks of formerly state-provided services at vast cost to the taxpayer. Private Finance Initiative (PFI) schemes became a licence to print money for companies building hospitals and schools while Londoners are weighed down by the cost of rescuing a failed Tube modernisation contract.
Now it turns out that 25 for-profit Independent Sector Treatment Centres created by New Labour to do non-essential operations on behalf of the NHS have been overpaid by up to £250 million in the five years to 2010. This is because they were paid a fixed sum, even though the centres carried out fewer operations than the contract specified.
So the Coalition is deepening a trend set by Blair and Brown, which makes the claims that Cameron wants a “smaller state” more than slightly ludicrous. Barber, general secretary of the Trades Union Congress, who bizarrely says the BS will create a failed state like Somalia, favours the Scandinavian approach, consisting of a massive (and oppressive) state apparatus and a welfare system paid for by taxing ordinary workers at around 50% of their incomes. (If he cared to check he would find Scandinavia is moving towards market states).
But we should we allow ourselves to be placed in a position of defending the role of the existing state (Scandinavian or otherwise) in opposition to the BS project? The present state reinforces the capitalist status quo, with its gross inequality and exploitation. It sanctifies profit by legally obliging corporations to put shareholder interests first. The “welfare state” in turn legitimises the notion of the deserving poor, forever dependent on the charity of the state.
Other parts of the state apparatus supply judicial and police powers to control the population lest they resent what passes for democracy, fitting up activists where necessary as they did over the Nottinghamshire power station action. So who’s for a bigger version of this wretched state? Only Ed Miliband and Barber because access to the state gives them privilege and limited power without ever having to challenge how things are.
We are obliged to develop concrete ideas for an altogether different system of ruling, one that does not sit above society while operating on behalf of the powerful and the rich. What is wanted as an alternative to the BS and Labour’s love of the state is a thoroughly democratic system based on a network of People’s Assemblies as a transition to real self-rule. At the heart of such a democratic system would be co-ownership and control of all society’s resources, including land, banks and corporations. Then we could truly say that society was much, much bigger than it is today.
Paul Feldman
Communications editor
Tuesday, February 01, 2011
When marching is not enough
By March 26, the date of the march called by the Trades Union Congress (TUC), up to 200,000 public sector workers will have lost their jobs, as councils – many of them Labour controlled – implement government cuts, wrecking local services.
By then, those keeping their jobs will have suffered a massive erosion in their standard of living as food and fuel inflation takes off.
By then, university and college lecturers will be staring at closures and redundancies.
By then, the astronomical increase in university tuition fees will be a reality facing the next generation.
By then, the Coalition government would have forced through further marketisation of the National Health Service, building on the work of New Labour.
In other words, by then Cameron and Clegg will be halfway to imposing the burden of the capitalist crisis on the backs of ordinary working people.
Last week, the TUC called member unions together to discuss its response to the effects of the spending cuts announced last October. Talked up by the media as a planning meeting for a wave co-ordinated strikes against the cuts, it was nothing of the kind.
TUC general secretary Brendan Barber stood on the steps of Congress House and ran up the white flag. Frightened by the existing anti-union laws – and alarmed by the threat of further legislation – Barber and the right-wing led major unions ruled out a confrontation with the government.
All Barber would say was that there could be action around “specific disputes” but none were planned. What are scheduled, however, are talks with the government over planned changes to public sector pensions.
A World to Win supports the TUC demonstration but not simply to register a protest against the government’s policies which are directly driven by the deepening capitalist economic and financial crisis.
We will campaign on the march for a way forward beyond March 26 that is not dependent on the manoeuvres of the TUC leadership. AWTW will urge:
Leaders of trade unions opposed to the TUC right wing to call their own conference to plan joint action against the Coalition
Occupations of town halls, universities and colleges to block job losses and the destruction of services
The removal of discredited local councillors and their replacement by trade union and community representatives
The creation of a network of People’s Assemblies to build a sustained challenge to the government’s authority.
As the resolution adopted at the weekend National Assembly of Education said, People’s Assemblies can:
unite students, education workers, trade unionists, community groups and all those resisting austerity and ConDem cuts, as well as climate change activists, campaigners for human rights, migrant support networks and anti-racist groups.
develop an alternative democratic voice and long-term presence to effectively challenge corporate/financial power and its grip on the existing political system.
A key role for Assemblies would be the development of alternative economic models to the failed profit system. We have to take the opportunity presented by the crisis to set out what we are for as well as what we are against, and to create strategy to put that into practice.
The revolutionary upsurge in North Africa, prompted by worsening economic and political conditions, will make its appearance in Britain. With the TUC on its knees, preparation for that eventuality is everything.
Paul Feldman
Communications editor
Friday, December 31, 2010
Let the sleeping giant speak in 2011
Therefore alarm bells should ring when Barber warns that 2011 is going to be a “horrible” year, with cuts in benefits and public services, and an increase in unemployment. And that it “could well be the year when the country starts to say no to government”.
Barber is sitting on a ticking time-bomb consisting of more than six million trade unionists, mostly in the public sector, who are about to bear the brunt of the Coalition government’s massive assault on spending. These workers are waiting for some leadership to resist the cuts – and none is, as yet, forthcoming. When their anger explodes, it will threaten men like Barber as well as the government.
The level of suffering will be enormous. A report by the Chartered Institute for Personnel and Development, predicts that unemployment will reach 2.7 million in the year to come, the highest leel in 17 years. The draconian cuts in public spending will push unemployment up rapidly, as the private sector fails to absorb the 330,000 public sector jobs due to disappear by 2015.
Job losses will coincide with rapidly rising prices of everything from basic foodstuffs to fuel and utility bills. Rail commuters in the south-east of England face fare rises of between 7.8% and 15% from Sunday for a second-rate service.
There is no question that last month’s unprecedented and militant action by school and university students and their families against soaring tuition fees foreshadows what is to come. Those cuts affected a relatively small section of the population – the middle classes and aspiring working class people. The next wave will touch almost everyone.
The most courageous amongst the union leaders, rail and tube workers’ leader Bob Crow has called for strikes: “We can expect to see workers in both public and private sectors out on the picket lines fighting for jobs and against savage attacks on pensions and standards of living. There is no reason for working people to pay the price for a crisis we didn’t create and which is wholly down to the banks, speculators and politicians.” Too right.
Barber and Labour leader Ed Miliband are fond of dismissing the government's deficit reduction plans as purely “ideological” or “politically motivated” and in so doing deliberately exempt the system known as capitalism. The Coalition’s cuts are, as we establish in our booklet Beyond Resistance, a desperate gamble to keep capitalism in Britain going under conditions of financial and economic crisis which threatens the break-up of the European Union itself.
No country, not even the much vaunted BRICs (Brazil, Russia, India and China) is exempt from the crisis. After the 2008 crash, China’s economic growth was artificially stimulated by what one globalisation analyst describes as a “violent domestic stimulus” of 4 trillion yuan ($580 billion) . . . about 13 per cent of gross domestic product in 2008 and constituted ‘probably the largest such programme in history, even including wars’.” (Charles Dumas, author of Globalization Fractures).
Those who have been studying the big global picture and the historic changes which are re-shaping our world are not mincing their words. Just listen to Jeffrey Garten, former US undersecretary of commerce under Bill Clinton. He warns of “exceptional turbulence as the waning days of the global economic order we have known plays out chaotically, possibly destructively.”
The fact is that the kind of corporate-driven, credit-fuelled capitalism we have known it for the past three decades has come to a shuddering halt. The prospects for 2011 are a deepening recession and further financial collapse.
We should seek a rebirth of human culture – and a decent life for ordinary people on the planet – arising out of the ashes of global capitalism’s “bonfire of the vanities”.
But it will certainly not be achieved through the TUC’s call for everyone to huddle together on a demonstration at the end of March, by which time tens of thousands of council workers will have lost their jobs as local authorities – many of them Labour controlled – implement the Coalition’s spending cuts.
Nor will plans for protest strike action aimed at forcing the government to change course and stop the cuts be adequate to the task. That is a key lesson from the general strikes in Greece, Spain and Portugal during 2010 where “socialist” governments have smashed public services and pensions.
There is a sleeping giant at the base of our society who has yet to speak. That is the vast majority of people who have everything to gain by throwing off not only the bankers, speculators and politicians who serve them, but the system of private ownership for profit over which they preside.
Let’s make 2011 the year to begin the struggle for power against the ruling political, financial and economic elites, building a network People’s Assemblies to complete this absolutely necessary transformation.
Corinna Lotz
A World to Win secretary
Monday, October 25, 2010
TUC's shameful betrayal
Worse, it is scheduled to take place on a Saturday, on 26 March 2011, to avoid any idea that it is a call for mid-week strike action instead of gentle stroll through the streets of London.
The context of the decision announced by TUC leader Brendan Barber on Saturday, makes it an act of betrayal as great as any during its more than 140-year history.
With 500,000 public sector workers destined to lose their jobs as the result of the deepest spending cuts in the history of British capitalism, the TUC and its main members have abandoned any pretence of resistance. The decision to hold a march in five months was supported by the main public sector unions, Unison, GMB and Unite. Since the Spending Review was announced, these unions have stressed that they will not take action against the coalition.
A few hundred yards away, just as Barber spoke, striking London firefighters were on the march. They are threatened with the sack and the destruction of their union. The TUC is leaving the Fire Brigades Union to face destruction on its own.
Talk about the impact on jobs, pensions, wages, services etc - and that's it! It’s not simply sluggish – it’s deliberate inaction behind a smokescreen of consultation, education and protest. The TUC is acting like a focus group for the Coalition, promising to feed back public anger so that the government will "see sense".
On Saturday, Barber spouted pseudo-fiery words against the City rich:
“And the bankers who caused this mess,” he said, “will not be affected at all because the pathetically small banking levy will leave them popping the champagne corks right across the square mile.”
The real intention is to reinforce the fiction, that the Con-Dem cuts are simply “ideological”: "The impact of this brutal, ideological and cripplingly unfair [our italics] austerity will be truly devastating,” Barber told London Trades Councils representatives at Congress House.
In other words, there is no crisis of the capitalist system driving the cuts – simply a few greedy bankers.
And public service union GMB leader Paul Kenny continued the fake war by threatening the Coalition with a loss of votes: "As the plan unfolds and its impact is felt in homes and communities up and down the country, the Tory/Liberal authors will find life increasingly difficult at the ballot box," he said.
Some threat.
Some critics of the TUC want next year’s demonstration brought forward and for unions who want to fight the cuts to organise a one-day public sector general strike. But this is inadequate for a variety of reasons:
- it divides public from private sector workers (who will also lose jobs as a result of cuts)
- by limiting the strike to 24 hours turns a general strike, which has revolutionary potential, into a protest,
- it assumes that the government will capitulate under pressure.
Experiences on the Continent, most recently France, show the opposite is true. Several general strikes have failed to move Sarkozy over pensions. At the end of last week, state forces were used to end blockades of fuel depots while the Senate approved the changes. Sarkozy is not for turning and nor is the Cameron/Clegg coalition. At their backs is the global economic crisis and yawning budget deficits which grow larger by the day.
The strike weapon is limited when the issues are about a crisis of the economic system and the power of the state. Strikes need to be supplemented by wider actions. A revolutionary mobilisation is needed to unite communities in a way that challenges the authority and power of government and the state machine.
A strategy of developing People’s Assemblies offers a real way forward to unite all those fighting the cuts. The urgent need is to expose the treachery of the trade union leadership by campaigning for a transfer of power on to a democratically elected network of Peoples Assemblies.
Paul Feldman and Corinna Lotz
A World to Win
Wednesday, October 20, 2010
All bark and no bite
As well as the Prison Officers Association, there were big delegations from Unison, actors’ union Equity, rail and transport workers, public services unions UNITE and GMB, the National Union of Teachers and the Right to Work Campaign. Screen actors Benedict Cumberbatch and Roger Lloyd Pack said they opposed cuts in the arts which will privilege the rich. They all shared a deep anxiety as it emerged that around half a million jobs are to go by 2015.
Tony Woodley, joint secretary of the UNITE trade union, pointed out that for every four public sector jobs scrapped by the cuts, three more would follow in the private sector. He pointed out that the Lib-Con coalition has no mandate for the cuts, and that people “did not vote for the dismantling of their schools, hospitals and communities.”
“Cuts on this scale make no sense,” he said – but they make sense to the coalition, the bankers and the IMF. It’s the survival of the capitalist system that is at stake for them.
TUC general secretary Brendan Barber continued the myth that the cuts are just a political choice, not an economic necessity for the ruling class: "They want us to believe....this is economic necessity. Yet economic experts across the spectrum warn us that the cuts are too deep and too rapid.”
Dave Prentis of Unison warned that if the government doesn’t listen, “we will be back. For every one of us in this room today, we will bring a hundred more. We’ll march in our thousands and we’ll vote in our millions,” he said in a fit of demagogy. But vote for what? For New Labour Mark 2?
None of the trade union leaders have any answers. In fact they are determined to hold back any serious movement by workers in the face of the re-shaping of the entire British state. Asked why the British workers were not angry as those in France, Woodley cited the anti-trade union laws making striking difficult. But if they were serious about halting the cuts, trade union leaders would bring every member out and let the law go hang. By directing all their fire towards parliament and the next election nearly four years hence, they hope to act as a lightning rod to defuse and disarm any movement.
And where was Milliband? He was in hiding from the trade union leaders who got him the Labour leadership. The reality is a New Labour government would be doing the same – and it may not be too long before they too are co-opted into this government of desperate decline.
Today’s spending review is not the result of a nasty bunch of old-style Thatcherite Tories. It is a response to the most serious economic and financial crisis of the capitalist profit-based system. As Bank of England governor, Mervyn King, speaking in the Midlands, made plain. Deep tensions underlay discussions at the International Monetary Fund meeting last week, he said.
Global currency conflicts, particularly between the US and China, are evidence of profound disagreements about the way to deal with the crisis. A 1930s-style collapse of business activity and international trade is possible. So much for the cuts being an “ideological exercise”! They are the ruling class’ response to an uncontrollable crisis of the system.
Fighting against the cuts agenda means challenging the ruling class by working for a transfer of power, property and control to a democratically elected and accountable network of peoples’ assemblies http://aworldtowin.net/frontline/BuildPeoplesAssemblies.html. Come to the Beyond Resistance conference on December 11 to make this come alive.
Corinna Lotz and Peter Arkell
A World to Win
Monday, September 13, 2010
TUC faces both ways as crisis looms
The all-embracing composite motion that the TUC is set to adopt in Manchester this week hardly disguises sharp differences within the trade union leadership. On the one side, the transport union RMT and the public and civil servants PCS – led by Bob Crow and Mark Serwotka – want co-ordinated industrial action sooner rather than later.
Crow said at the weekend that if there was a "concerted effort by this new government to attack workers in all different parts of society" then workers taking action should "co-ordinate that resistance to defend working men and working women".
But the major unions like Unison, Unite and the GMB, want to emphasise public campaigns to win support for opposing the cuts agenda. Les Bayliss, who is hoping to be general secretary of Unite, said: "Strikes will also change the victims – our members – into the villains of the piece. The story will get changed from government savagery to union militancy."
In the middle, TUC secretary Brendan Barber is looking for a deal with the Cameron-Clegg government. Behind-the scenes manoeuvres are already in train. The first action point of the resolution calls on “the Government to consult the General Council [of the TUC] regarding the comprehensive spending review”. Reports suggest that senior Tories have already held secret talks with union leaders and that Cameron will meet Barber soon.
The resolution, after 1,138 words of preamble, calls on the General Council to “support and co-ordinate campaigning and joint union industrial action, nationally and locally, in opposition to attacks on jobs, pensions, pay or public services”. Yet, as a report from the GMB union shows, the jobs slaughter is already well under way, with 150,000 redundancies planned across the public sector. If the time to act is not right now, when is it?
The whole mistaken tenor of the eclectic TUC resolution is to label the coalition’s plans as “ideologically driven”. Yet the same motion offers support to workers resisting the cuts in Spain and Greece (as well as other countries), where the governments call themselves “Socialist”, which rather shows that more than “ideology” is involved.
There is no reference to the global economic crisis and the term “capitalism” is studiously avoided. For the fact remains that, for all their bluster, New Labour would be carrying out the same cuts because they are a consequence of the recession combined with the demands of the financial markets that fund government deficits. In fact, many of the job losses now going through are the result of decisions taken by the Brown government and not the coalition.
The TUC has faced three grave crises in the last 80-odd years. The first was in 1926, when a Tory government imposed wage cuts on the miners. A General Strike was betrayed as it gathered strength and the miners were literally starved back to work. In 1984-5, the miners heroically fought to save jobs and communities – and again the TUC stabbed them in the back, this time through inaction.
The third crisis is the present one, against a government that intends to impose the full burden of the capitalist crisis on the backs of public sector workers and those who depend on services of one kind or another. Unions like the RMT and PCS have a responsibility to prevent the TUC right-wing from betraying the movement once again.
This will mean enforcing a split in the General Council against those preparing a deal with the coalition and mobilising communities against the government. Ultimately, this government is not for turning but it is weak and could be brought down by widespread and sustained opposition. What to replace it with is the biggest question of all.
Paul Feldman
Communications editor