Why Income Equality at work is better for everyone

Further to the outrageous pay cuts to low paid staff proposed by the Loadsofmoney CEO of Family Mosaic. This motion has been submitted

to the UNISON Community Conference next year.

Why Income Equality at work is better for everyone
This conference notes the gross inequality in pay at many Housing Associations. “Inside Housing” reports that 58 Chief Executives earn more than the Prime Minster, while the highest earner, Jane Ashcroft of Anchor (established in 1968 by “Help the Aged”) received £331,250 - up 14 per cent on last year.

At the same time many workers in the sector existed on the minimum wage rate of just £5.93 per hour. This means that the most highly paid Executive got £26,605 per month while many of the lowest paid got just £949. This is nearly 30 times more.

The book “The Spirit Level” by research scientists Professors Richard Wilkinson and Kate Pickett demonstrate that excessive income inequality in society results in premature death, greater levels of mental illness, drug abuse, poor education attainment, imprisonment, violence and obesity. Societies that are more equal such as Sweden and Japan are more successful for everyone in all measurable ways. Both the rich and the poor benefit.  This conference believes:-

That Housing Associations should recognise that internal income inequality is as bad for its workers and residents as it is for the wider society. It is corrosive, divisive and destructive. Profiteering for the few threatens the raison d’être for the entire sector. It results in poor staff morale and industrial relations, mistrust from residents and a reputational political risk to the whole sector.

If Housing Associations believe that they need to reduce their cost base to compete for contracts they should firstly cut the pay of their Senior Management Team.

We support the recommendations of the Hutton report on Fair Pay that “every public body should annually publish the multiple of top to median pay in a clear and presentable way” and that employee representatives should be on the Executive Remuneration Committees.

Every single worker whether directly employed or subcontracted should receive at least a Regional living wage rate. This conference calls on:-

Our Service Group Executive to campaign for greater Income Equality, using the press and media, working with the National Housing Federation if possible, and lobbying Government.

The Service Group Executive to explore affiliating to the Equality Trust

To request Labour Link campaigns for statutory regulation of pay multiples in Housing Association’s, increased public spending to combat poverty and fair progressive levels of income taxation.

(there is an amendment adding an action point which might cause problems with standing orders) 

Hutton Report - Remind me again why the low paid are paying for the Banker's crisis?

There was no great surprises this morning at 8am with the publication of Lord Hutton's final report on public sector pensions.

He doesn't seem to "get it" that he is being used by this Tory-led government to justify an infamous double whammy of massive increases in pension contributions at the same time as equally massive cuts in pension benefits.

There is no repeat no dire crisis in funding arrangements for public sector pension funds.  There are indeed problems but remember only 4 years ago there was a huge row between the then Government and the public sector unions about pensions.  A tough compromise deal was eventually hammered out which saw rises in employee contributions, reductions in benefits and caps on employer (taxpayer) contributions.  Which the unions accepted despite the pain because it was promised that this will make the schemes affordable and sustainable.  So what on earth has really changed in these 4 short years about pension fundiamentals?

What is happening is quite simply a Thatcherite and Orange book ideological attack on the principal of collective provision coupled with plain old fashioned public spending cuts.  For example this government has reduced grants to Councils by £1 billion based on an assumption that staff contributions to their pension schemes will go up by some 50%! (repeat 50%).  If this goes ahead then this will mean that pensions will become unaffordable and people will leave their schemes in droves.  If this happens and members can't afford to remain or join then yes, the public sector schemes will indeed fail.

So yet again we have some of the most low paid and vulnerable in our society being expected to help make good a public spending deficit caused solely by Bankers and the Rich who ripped off this country and now expect us to pay for it.

This lunchtime I was interviewed by Channel 5 News (who reported only my comments on the likelihood of strike action), live on Sky News (robust but interesting) and ITN (see caption and this link).