Monday, June 23, 2008

Motion 20: Public Sector Pension Funds – Responsible Contractor Investment Policy

This is another recycled speech that I was not able to give on Friday. I thought this was a really important motion. Obviously other people didn’t since after only one speaker from the hall, a “point of order that the question be put” was moved. Norma did say “sorry John”!

(Picture right is of the early UNISON London region pension reps - looking after their members money).

"President, Conference – John Gray, Housing Association branch, London region speaking in favour of motion 20.

Conference, I hope to add my bit on why I think good governance practices in the public sector pension funds (also known as capital stewardship) should be used to help protect and defend our members and our public services.

UNISON members up and down the country pay into the funded public sector pension funds. My own relatively small pension scheme with Tower Hamlets Council on which I have been the UNISON rep for some 12 years has £600 million of investments. It is always worth repeating that these investments belong to us. They are the direct result of contributions by workers and employers that our taken out of our pay.

But of course, what many members do not realise is that these pension schemes not only invest our money in big businesses, home and abroad, but also they invest in companies that now employ other UNISON members.

Not only in hospital and school PFI schemes but also they own shares directly in the many companies and contractors that now run privatised public services. My own pension scheme owns shares in nearly the usual suspects.

So what this means Conference, is that Tower Hamlet UNISON members are the part owners of companies that make profits from cutting the wages and conditions of another set of UNISON members.

We own companies that employ highly paid solicitors to find ways of breaking TUPE contracts, or as we heard in detail about yesterday, refuse to comply with the code on a two-tier workforce, they even refuse to recognise trade unions. They also try to duck out of any responsibly for the equality duties legislation.
Conference, I think it is important to avoid any doubt that it is a given that we are opposed as a union to privatisation and PFI. Also that regardless of any action we take over our pensions and our ownership of these companies that profiteer from public services it can never totally replace our campaigning against the privatisation.

However, what we have now is an opportunity to support those UNISON members who work for these companies firstly drawing up a “Responsible Contractor Policy” and then campaign to make all public sector pension schemes adopt and in force it. Not only would this support our members who are being treated appallingly, but also if we are able to ensure that public sector contractors and subcontractors pay fair wages and benefits then I would expect more contracts to return back to in house since contractors only make money in public services by cutting staff terms and conditions.

Conference, I have been a member of the UNISON working group on Capital Stewardship. Where we have discussed how the good governance of our pension money can best serve all our members. This policy is a great example of what we can and should be doing with our pension investments.

Finally conference, This policy will not be a panacea for all our problems but as trade unionists we need to use all the weapons in our armoury to protect our members and this it is an opportunity not to be missed.

Conference – please support this motion"

No comments: