It's a rich man's world - find out how you compare

"Using data from the World Income's Database we have built an online widget which shows where your income stands relative to the 0.1% in the UK. Want to know how far off you are from the richest man in the world, Carlos Slim? Check it here now".

I am on a decent wage and this was my result:-

"This year you'll pay about £7,054 in tax – a whopping 0.00076% of the amount F1 boss Bernie Ecclestone has avoided paying over the last 9 years! He stores money in offshore banks, making it tax-free. Otherwise he'd have contributed about £1.2 billion.

When people and companies dodge tax it means less money for governments to spend on hospitals, schools and clean water – ultimately it's poor people that pay the price"

Hat tip The Spirit Level documentary

The Spirit Level - Trailer

The Spirit Level - Trailer from Literally Films on Vimeo.

This is an excellent trailer which I recommend strongly. A number of unexpected contributors. "The Spirit Level tells the story of how the gap between rich and poor has risen to unprecedented levels, under our noses. But does it matter? We've be interweaving stories from across the globe to examine how it impacts on all our lives.

We have conducted in-depth research, both of the data and on the ground, identifying the personal stories that bring to life the bigger picture. We're thrilled to have completed filming across the US and UK, and to be taking the film into the edit.

We need your support to help us continue with the project and realise it's full potential. Please visit thespiritleveldocumentary.com to find out how".

Them and Us: So why don't UK workers trust senior management?

The CIPD (professional body for HR) reports today that the lack of trust between employees and senior management is holding back sustainable economic recovery.

They conclude not unreasonably that employees who don't trust their senior managers are likely to be less productive and and less engaged.

Only 37% of employees trust them apparently which is an appalling figure.

The CIPD think that this is a problem that has been getting worse and may be linked to "hard" decisions due to the recession. I think it is much more basic than this. Some thoughts on why and what to do about it...

Number one is the huge and growing difference in pay between the top and the bottom. How can employees respect senior managers if they are content to fill their own pockets with gold while the people who clean their toilets live in poverty?

Even so called blue chip companies pay their workers so little that the tax payer has to subsidise their pay. 

Not only pay but  why do so executives in top companies often get decent pension contributions when their workers get rubbish?

Why if you need a company car to carry out your business do executives get luxury status cars while ordinary workers get basic models?  Surely everyone just needs a safe, comfortable and reliable car?

Why do some companies pay statutory only compensation to employees they make redundant but make huge payouts for executives they "let go"? 

Finally, a pet hate is the the "happy clappy" company culture guff.  Where everything is so, so wonderful.  Where staff are expected to volunteer to be "change champions" even if it means that their jobs and conditions are under risk by this change. This sort of things is bonkers. Demeaning "Ab Fab" superficiality. People can see through this nonsense.

The solution to this? How about a living wage plus for all; wage councils for sectors that can afford more than a living wage plus; modern rights and freedoms for trade unions; employee representation on boards and remuneration committees; truly progressive taxation of the higher paid, statutory pay ratios of low to highest paid....? Anyone else any other ideas?

Interestingly that only is such inequality bad for society (see "The Spirit Level" et al) but it is is making our economy uncompetitive and inefficient. Perhaps this imperative will mean that things might finally change?

The Spirit Level Documentary Trailer

"Dear Friends, Many of you will remember the extraordinary crowd funding campaign run last year for The Spirit Level documentary. Thanks to your generous support, the filmmakers have now been able to begin this ambitious project - but there is more work to be done.

This Spirit Level film is an official documentary based on Richard Wilkinson and Kate Pickett's seminal book. It shows how the rising gap between rich and poor has impacted on our societies, and aims to engage people on the issue of inequality, helping them to discover how it affects them and what can be done to reduce it.

We want a film that is talked and written about, that gets into cinemas and televisions, and that reaches millions. More importantly, we want a film that can help us achieve real, tangible change in policies and attitudes that help reduce inequality. The film is being funded by thousands of small donations, and has so far raised a staggering £45,000. This has enabled filmmakers to capture interviews with some of the world’s leading thinkers from the US, UK and Europe.

They've also gathered stories from the frontline of inequality all over the world, but these too need to be filmed. The Spirit Level's filmmakers are aiming to raise a further £30,000 to start this filming; with your help they can get there. If you're able and would like to donate to this project, please visit the film's website. Alternatively, please consider sharing the documentary's trailer with friends, colleagues and online networks.

For more information on the project's progress, and to hear from Katharine Round, Director of The Spirit Level, on the story so far, please visit: http://thespiritleveldocumentary.com/blogW.

Equality: how radical can the next Labour Government be?

Newham Compass & Fabians are holding their next event on how radical the next Labour Government will be with regard to achieving greater income equality.

This will be held on 7.30pm Tuesday 4 December 2012 at West Ham Supporters club in Green Street.

The guest speaker will be Sean Baine from the Equality Trust. The trust is "an independent, evidence based campaign working to reduce income inequality in order to improve the quality of life in the UK". It was set up by the authors of the Report "The Spirit Level".

Sean spoke at my UNISON Housing Association branch AGM early this year on the same subject. I met him again last month at the launch of Class. He is very good speaker and it should be an interesting debate.

I have a Council meeting clash that evening so might not make it. My take on this is that is the most important political issue and is central to nearly all my beliefs. Radically reducing levels of income inequality should be a key manifesto pledge.

Yet we cannot just sit back and pontificate about this but we need to get out and convince the Great British Public that this is necessary and will benefit everyone in our society. 

Class: Parliamentary Launch "Why Equality Matters"

Collage is from the Parliamentary launch last Wednesday evening of "Class" The "Centre for Labour and Social Studies". A new "left" think tank.

The launch featured its latest report "Why Equality Matters". Which is a more populist and accessible version of the book "The Spirit Level - Why Equality is better for everyone". 

The meeting was packed with loads of Labour MPs. Including Stephen Timms from East Ham.

Steve Hart from Unite chaired the meeting, Emily Thornberry MP spoke first, then we had John Trickett MP, Owen Jones, Professor Richard Wilkinson and new TUC General Secretary Frances O'Grady. Check out my twittering here on the event (31 Oct).

I asked the question about whether we were really preaching to the converted here tonight when we should be asking what actual policies will be needed to bring about a more equal society. Should we be honest with the electorate, that everyone will have to pay more in taxes not just the super rich, to bring about a society that benefits everyone? (such as truly affordable housing and childcare)

Owen Jones responded by saying that at first we we need to start with a tax on the rich and make sure that they do not evade their taxes, then we could be more ambitious. The wealth of the Sunday Times "Rich List" has grown during this "recession" by more than the total sum of the deficit.

Frances O'Grady was fiery and passionate in her response. Growth in real wages is key in reducing inequality and recession. UK companies have reduced wages and accumulated £750 billion in reserves. No wonder we have no demand in our economy.

Afterwards I met up with my best ever blogging mate, Dave Stroppy, (nee Osler) and we went with UNISON comrades to sort the world out at the Red Lion.

Middle picture hat tip Seph Brown

Living Wage "Plus"

Next week is "Living Wage Week" and tonight the motion below was passed at West Ham Labour Party ward.

The Living wage campaign is a great step forward but we must not let employers "off the hook" with regard to decent holidays, sickness and pension benefits as well as trade union recognition.

"Support for a Living Wage plus for all workers in Newham

1. West Ham branch supports the Campaign for a Living Wage “plus” for all workers in Newham as a minimum.   The Living wage rate for London is currently £8.30 per hour.
2. We also believe that all workers should receive Living Wage “Plus” representing decent sickness pay, holidays and pensions.  Employers should ensure that any contractors it uses should also pay a Living Wage “plus”.
3. This is not only necessary to bring workers and their families out of financial hardship but it will also stop taxpayers subsiding employers who pay poverty wages with family tax credits.
4. Employers who now pay a Living Wage report improved morale, lower turnover of staff, reduced absenteeism, increased productivity and improved customer service.
5. A Living Wage plus will also encourage people to seek employment and become economic resilient.
6. The wider economy is also in need of a boost in demand to pull us out of recession. Raising the wage rates of poorly paid workers is one of the best ways of doing this.
7. The branch recognises that there may be legal and contractual difficulties and this could take some time for employers to fully implement.
8. Trade union recognition and organisation is the best way to achieve and retain a Living Wage “plus”.

West Ham Branch:-

1. Supports the Living Wage week 4-10 November.
2. Calls on all employers to work towards being a Living Wage “plus” employer.
3. Work with the Newham Mayor, Councillors, our MPs and trade unions to bring about a Living Wage “plus” for all who work in Newham, private and public sector. 

This motion was passed unanimously and will now go to West Ham General Committee on the 22 November. See if you can send a similar motion to your trade union or Labour Party branch?

Update: I will try and amend slightly at GC. A new point. "The UK is in terms of income one of the most unequal countries in the World. Research in the book "The Spirit Level" demonstrates the destructive and harmful impact such inequality has on our society. Raising low wages is key to reducing this inequality".  Also add "collective bargaining" to 8. 

Austerity: What next after #Oct20?

A rather intense (to be polite) picture of me speaking at Saturday's SERTUC Council meeting at Congress House. The New TUC GS Frances O'Grady had just made a cracking speech.

I was supporting the GLATUC motion on "Austerity".

"President, Council, John Gray UNISON speaking in favour of Motion 1. I will try and keep this short since much of what I wish to say has already been said. But "What next" after Oct 20 is the key issue for the Labour Movement. We must firstly continue to educate and inform our members in the Great Battle of Ideas over the Economic Alternative to Austerity.

Despite the magnificent march of last weekend, I am reminded of past reports by our own Regional secretary, Megan, to this Council and the comments you have just heard from Frances, that a majority of trade union members still think that "Austerity" is necessary, the "Cuts" are necessary and there is "No Alternative".  

While we can turn out many of our activists and their families on a Saturday to protest unless we can also persuade our rank and file members, their families and their friends that there is a different way to run our country, then we are simply not going to be able bring about change.

Council, the truth of the matter is that we have a huge job of work to do. We need to not only educate but to  organise and unionise. Especially in the private sector where 85% of the workforce are not only not in any union but many of them have simply no comprehension or understanding of unions. They are Thatchers Grandchildren.

Perhaps Council, one other practical way forward is to bring to peoples attention that there are already examples of successful countries such as Sweden or Norway which are run differently. Frances mentioned "The Spirit Level" research that everyone is better off in more equal societies. Where there is greater income equality, greater trade union density and greater worker involvement in the wider economy.

Arguably Council, there is already out there A Future That Works; and it is only a ferry ride across the North Sea. Council, please support this motion. 

Frances O'Grady at SERTUC Council

This morning I went to the Trade Union Congress Southern & Eastern Regional Council (SERTUC) as an UNISON delegate at Congress House.

Our keynote speaker was Frances O'Grady, the General Secretary (elect) of the TUC. This was the first time in living memory that any TUC GS had addressed our Council.

Despite being under the weather with a cold, Frances gave a cracking speech. Wide ranging, thought provoking, honest, passionate, but pragmatic.

I base this post on my tweets made during her speech with the usual disclaimer for thumb fumbling haste and any mistakes or omissions are my responsibility.

She firstly greeted us as "sisters, brothers and fellow plebs! SERTUC region is important since 26% of all trade union members live here. We need to act smart and inspire people. Work with different community groups. Even the Women's Institute. Our job is to turn opposition to Austerity into a mass movement and in the long term achieve a better, fairer society.

We must tackle growing income inequality. The top 10% are 500 times richer than the bottom 10%. While the City Spivs get massive bonuses the lowest paid have food banks. This in the 7th richest society in the world.

The "Spirit Level" book proves that such inequality is bad for everyone. We want tax justice. We want Starbucks, Amazon to pay their taxes.

We need a change in economic policy. Even the IMF, which is not known for being a left wing organisation, recognises that workers need to have money in order to buy things to create demand and jobs.

What we want is not only a transfer of wealth but a transfer of power. Why can't we have employee representatives on Company remuneration committees?

It is understandable, but we must be careful about the big danger from a decline in trust in politics. If people lose hope, it could be very bad for us and progressive politics. We have to be very careful about our language.

Any further mobilisation must be a demonstration of strength not weakness. We have to be clever and not burn out our members.

There are arguments that a general strike could be legal but this depends on European law and anyone with any experience of this, knows it takes years for these cases to be decided. Firstly we have to ask our affiliates if there is an appetite for action.  Also, if we have a general strike without a ballot, we have to be honest with people, that they could be dismissed if they take part. Union funds could also be sequested by Courts.  Any general strike cannot just be a public sector strike. It must be supported in the private sector.

Frances finished by making it clear that this is a weak coalition government and that there is widespread fear even in the middle classes, about such things as youth unemployment, housing shortage and the sharks such as Virgin, circling our NHS. If we go about it in the right way we can and will give this government a good kicking.  

(Check out my twitter account for 27th October for a fuller report of Council. I did speak on the Austerity motion which I will post upon separately) 

The Spirit Level, Unions and an alternative economic policy

Check out my post here on the UnionHome blog that Austerity is the problem while trade unions and income equality can be the solution.  

Why we really, really need an alternative economic policy

At this week’s London UNISON Regional Committee instead of the normal bun fight with the ultra left we had a remarkably polite, thoughtful, honest and even good humoured debate on the state we are in and the possible ways to take forward the Union.

I think that in part this is due to how simply mind bogglingly awful it is at this time if you genuinely care about public services. The one “good” thing about this Tory led government is the almost general realisation that this is no time for pontificating and gesture politics.

Now, there was of course still some stuff that was a little bit daft but it was all rather half hearted and random. I think some folk are just beginning to realise that continuing to bang a sectarian head against the union sensible brick wall only hurts one way and achieves nothing.

We all want the TUC "Future that works" demo on 20 October to succeed but we are not just marching for marching sake. There must be an end game. This must be that by marching, we are furthering the argument for an alternative economic policy to austerity.

Austerity is not working, despite the great pain, our national debt is increasing and we need a plan B. The only solution to our economic nightmare is not only to increase demand and confidence by direct investment and growth but to create a more equal society.

Where the rich pay their fair share through truly progressive taxation and there is an effective public sector providing high quality and equitable services such as affordable housing, quality health services and child care (Spirit Level).

I’m cautiously optimistic that eventually the penny will drop but we need to start talking now to our members and have the confidence to argue that not only is there an alternative but what that alternative will be. Check out the TUC guide to “A Future that works” for some ideas.

TUC 2012: Why Inequality Matters fringe

During lunchtime I went to this launch of an authorised summary of Professors Richard Wilkinson and Kate Pickett's "The Spirit Level".  The fringe was sponsored by the new "left think tank" Class (Centre for Labour and Social Studies).

Chaired by GMB Tim Roache. Unite General Secretary Len McCluskey kicked off by introducing "Class" and the reasons why it was set up. For too long right wing think tanks have dominated political policy and research. Katherine Round spoke next. She is producing a video documentary on "The Spirit Level". 100k copies of the book have been sold in the UK while the gap now between the rich and poor is the widest for 30 years.

While Richard started by posing the question - is inequality an ethical or empirical issue? Many perfer to believe it to be ethical rather than empirical since then it can be dismissed as being subjective. He explained that in the 600 odd lectures and seminars that he and Kate have given there has been no good counter arguments. People are surprised about how how inequality has such a profound impact in so many ways. He is clear that you cannot have a classless society without addressing income equality.

Mehdi Hasan from the Huffington Post told a witty tale about how he was thrown off a right wing USA TV programme (are there any others?) for arguing in favour of a wealth tax even though a "wealth tax exists in communist Switzerland and is supported by that well known Marxist, Donald Trump".

Owen Jones (not in picture he was speaking at another fringe) came on last and made the point that Labour leader Ed Milibands "Predistribution has a point since billions spent on family credit were in effect a subsidy for low pay...whatever predistribution actually means". 

Speech on a "New Direction for the Labour Party" Motion 3

"Chair, Forum, Gloria Hanson, Greater London Region, moving motion 3 – A new direction for the Labour Party. Accepting the amendment from Scottish region.

Forum, I’m not here to sing the praises of the Labour Party and the Last Labour Government. But I could.

Equally I am not here to try and bury them either, which I could as well.

Instead what this motion is concerned about is making sure that at the next General election the Labour Party has a simple and clear overriding policy that not will not only inspire and unite us, but would be a platform to victory and give a mandate for the most far reaching and radical Labour government since 1945.  

Our society has become more and more unequal in recent years and decades. The gap between the rich and the poor, has become bigger and bigger. For decade after decade this gap has now become a gulf. It is now time not only to stop this – but to reverse it 

In the past this forum has agreed with the research found in the Book “The Spirit Level” that the more unequal the society in terms of income, the greater the ill health, the shorter the life expectancy;

The more unequal the society, the greater the crime rate, the shorter the schooling.  

Forum, Income inequality kills, it destroys people’s lives, if wreaks our society and divides us into the few haves, the many have nots... and the remaining... have nothing. 

So forum we know what the problem is – next we have to decide what to do about it?

The most successful societies in the world are therefore those who have the smallest gap between the rich and the poor. No society is perfect; no society is an absolute model for our island to choose.

But there are two facts things about more equal and successful societies.  One is that they have much higher rates of progressive taxation and public spending. 

The second fact is the gap between top and the bottom in terms of pay is simply, much, much lower. 

So the answer Forum is the next Labour government must be brave, it must be decisive. It must legislate for progressive taxation to pay for improved public services. Next it must also legislate and take action to bring down the pay of the rich and bring up the wages of our people.

Let us have a living wage not a minimum wage,  Let us end the scandal of public subsidy for bad employers who don’t pay decent wages; Let us follow the lead of the new French socialist president and lower the salaries of top public servants,  Let us as they do in many other countries let us put worker representatives on the boards of all companies; Let us rebuild an economy that delivers good jobs on decent money and not one built on financial speculation

We need our Party, our Labour Party to agree to promise to reduce income inequality by the end of its term and to take the necessary political and economic action to achieve this goal. 

What we want Forum is not rocket science. It is a plain and simple. We want a better society for ourselves and our children and this is one of the ways to achieve it.  

A society based on Fairness and need which will benefit all. Finally Forum, in one way this is not really about a new direction for our party - as a much needed return to our roots.  

Forum I move" 

UNISON NDC 12: Income Inequality

Gloria Hanson, Regional Delegate and Regional Convenor for the Greater London Region, moving composite E – Income Inequality.

UNISON has a tremendous track record in fighting inequality. But there is one form we seem to have stopped talking about. Income inequality. Wealth discrimination. As my mum would say – the rich getting richer and the poor getting poorer.

I know I don’t need to tell you this.  But it’s time to go back to basics. To expose the ever increasing gulf between rich and poor.

Today the richest 10%of the UK population own more than 100 times the wealth of the bottom 10%. What an absolute disgrace .

This is the biggest gap in wealth since the Second World War. What’s even more frightening is that the gap is becoming a gulf.

At work, income inequality causes low staff morale; resentment and mistrust from clients, residents and services users alike – where the ordinary worker earns chicken feed in comparison to the chief executive. Even ‘not for profit’ organisations are jumping on the bandwagon - paying huge salaries to senior managers and slashing pay and terms & conditions of those of us who actually provide services and do the job.‘not for profit’ organisations are jumping on the bandwagon - paying huge salaries to senior managers and slashing pay and terms & conditions of those of us who actually provide services and do the job.

 

The book "the spirit level" has shown a clear link between income inequality, health and social problems. If you haven’t read it –do; you won’t regret it. It proves that the smaller the gap between rich and poor, the more successful the society is. If we reduce levels of income inequality in the UK we could increase life expectancy, decrease infant mortality rates, reduce crime and achieve better education attainment for our children.

Countries where the gap between the top and bottom earners is almost non-existent like Cuba; prove it - 　　 improved mortality rates; quality free healthcare for all; quality free healthcare for all; lowest crime rates in all of Latin America; lowest crime rates in all of Latin America; 99.8 percent literacy rate.  They’ve got it right; all workers sharing the wealth of the country

But back to - ‘we’re all in this together Britain’. I’d like to know exactly WHO is in WHAT together;

The Tories are so divorced from reality. A reality where bankers – who we all know caused the financial crisis - are once again earning bonuses of millions of pounds each year. Whilst ordinary workers are still barely earning the minimum wage.  Having to do two or three jobs to put food on the table and simply pay soaring bills.

This Tory government is robbing the poor to stuff the bank accounts of the rich. Cameron; Clegg and Osborne are no Robin Hood or merry men; and I certainly don’t want to see them in green tights!

The Government isn’t listening; it’s blithely continuing with its agenda. So what is the answer?

Let’s go back to why trade unions were formed in the first place, why we formed the labour party over 100 years ago ......to campaign for workers and the working class.  We need to remember our roots and lead the way in the fight for a fair and just society. Work with other like minded organisations; campaign for laws to ensure income regulation in the public sector.

In the London region we have affiliated to the Equality Trust; and will work with them to raise this issue with our members and keep them informed of the facts. We must elect politicians with enough bottle to tackle this; to work with us to win a society where workers earn what they are due and not a pittance because the rest is in the pockets of the fat cats; chiefs and bosses

As a mother I want a better future for my children and for their children.  As a life-long Labour party member; I want Labour to be brave politicians who will grasp this nettle and return Britain to the workers.

As a trade unionist, I want my union to work within the Labour Party to campaign for this policy to make Britain a fairer place to live and work.  Workers across Britain know what’s wrong; but they don’t know how to fix it – we need to lead the way.

Conference – I move

The Spirit Level Documentary

WHAT IS THE SPIRIT LEVEL?

“The Spirit Level” is an award-winning book which uses rigorous analysis of 25 years of research to show how a more equal society is better for all of us, including the rich. It shows how nearly all social ills - stress, poor educational performance, high crime rates, unwanted teenage pregnancies - are more common in those societies with a big gap between rich and poor.
It has been published in over 20 countries, has sold over 100,000 copies in the UK and won first prize in the Bristol Festival of Ideas. Lynsey Hanley in the Guardian said, It’s impossible to overstate the implications of (this) thesis", The Economist stated “It is a sweeping claim, yet the evidence, here painstakingly marshalled, is hard to dispute”. The New Statesman listed it as one of their top ten books of the decade. It’s impact has been so great that it has provoked numerous attacks from organisations that support low taxes for the rich such as the Taxpayers’ Alliance (“we oppose all tax rises”) and Policy Exchange (“the most influential think tank on the right”)"
(from their campaign page http://www.indiegogo.com/spiritlevelfilm)

Why Income Equality at Work is better for everyone

This is my speech to the UNISON London Regional Council AGM last week on Motion 4 "Why Income Equality at Work is better for everyone". Which was passed and selected as a regional motion to send to our national conference.

"Council, Convenor, John  Gray Housing Assocaition Branch moving motion 4. "Why Income Equality at Work is better for everyone". Council, Let us not forget that it is not just the Bankers and the Executives in the private sector who have been filling their pockets with other peoples money to a degree out of all recognition to their worth. In the traditional public sector and in supposedly “Not for profit” organisations, who provide public services, you also find that many Executives and members of the SMT have in recent years, enjoyed massive pay rises and massive increases in their income. We use the example of the CEO of the housing and social care association, Anchor, who earned over 330k last year - up 14%. At a time when many of her employees, doing a difficult and demanding job, caring for the frail and the vulnerable, earn little more than minimum wage. Nearly 30 times less.

For crying out aloud, Anchor Housing, was originally set up by the respected charity “Help the Aged”. This pattern of greed at the top for a few and poverty for the many at the bottom is repeated in many other private and public organisations providing public services up and down the country.

This issue is not just about fairness or social justice nor is it about the so called “politics of envy”. Such vast and growing inequalities in income are not just morally wrong it is deeply damaging and destructive to those organisations that allow it.

In the same way as researchers for the book “The Spirit Level” found compelling evidence that the more unequal societies are, with regard to incomes, the more rotten the society. The more unequal the greater the death rates of new born babies; the greater the levels of mental illness; the greater the drug abuse; the greater the violence; the greater the ignorance and squalor. It is ironic that the day after the 200th birthday of the birth of Charles Dickens, we still find in our own Capital city, one of the very richest cities in the world, that your life expectancy, how long you live, is determined largely by how affluent the postal code is in the area you happen to have been born in.

With regard to income inequality in the work place it is not enough for us to simply condemn but to explain to our members how harmful it is not only to society but to that workplace– If you are managed by not just highly paid or people on a good earning but the super rich; while most workers struggle to keep their head above the water - it is corrosive it is divisive. It causes low staff morale and poor service; it causes resentment and mistrust from our clients, residents and services users who after all have to pay for all this inequality.

We are told that there is no choice, competition is king, the market must decide the rate of pay, yet there is a choice. There are successful modern countries in the world such as Sweden where there is much, much less inequality. Where for example trade unions reps sit on boards and remuneration committees as a matter of course. They have done this for decades and act on as a brake on greed. There are countries such as Japan were if there are economic problems, managers become leaders and will often be the first to volunteer for pay curbs or restraint. Unlike in my sector, where yesterday I found out that staff at project being tuped over to a supposed charity, who had won a tender, were told by this charity that they had to have pay cuts and low jobs since they had to “pay their way” to keep to the new contract. While at the same time the SMT of that organisation pays itself massive bonuses to reward themselves for winning new business. This culture, this attitude, this view of life, can and must change.

The Equality Trust is the charitable arm set up by the authors of the Spirit level to promote income equality. Please also consider affiliating your own branches to them. Next week they are coming to my branch AGM to speak to us about what we can do to help bring about change.

Finally Council remember that greater income equality at the work place will make it a better place and help bring about greater income equality in our society, which will make it a better world for all.

Thank you please support this motion (orignal motion similar to this)

UNISON Housing Association Branch AGM 2012

My Union Branch AGM takes place on Thursday 16 February 2012 at the new UNISON headquarters in Euston (5 minutes walk from either Euston or Kings Cross station). I have been re-elected unopposed as Branch Secretary. We will hold two separate meetings during the day and evening to try and maximise attendance.  All branch members welcome!

Our guest speaker will be Sean Baine, the Co-Chair of the London Equality Trust on "Why inequality is bad for all of us - and what we should do about it".  There is also a motion to be debated on income inequality in Housing Associations. The Equality Trust was set up by the authors of the "The Spirit Level". 

I will try to arrange a visit beforehand to the Elizabeth Garrett Anderson museum which is inside the UNISON building. 

Labour, Trade unions, SPGB, the Anarchist President, Bill, Dave and John

Last month I took part in a debate organised by the Socialist Party (Great Britain) on "Should trade unionists support the Labour Party?" They did record the event and I was hoping to link to it, but it seems that there was some technical problem. Which was a shame since I thought it was actually quite a good debate.  Bill Martin from the SPGB (a UNISON activist) spoke against the motion.  He also chaired the meeting and was at all times polite and courteous. 

There was of course a completely wide gulf between us. The SPGB is a Marxist, anti-capitalist, revolutionary Party.  Readers of this blog might possibly have noticed that I am not. They are also "anti-Leninist" and "anti-Stalinist" and were completely dismissive of various Trotsky newspaper sellers (I make no comment). There was only 15 people present (including the anarchist President of the NUJ)

I argued that "my kind of socialism is one politically based on parliamentary democracy, and economically, a true mixed and balanced economy of publicly owned services, mutually and privately owned enterprises, all properly regulated, subject to democrat scrutiny, the law and a truly progressive tax system. While socially a successful Socialist Society must be one that is equal and free. Open, tolerant, and most importantly, supportive of dissenting views".

I mentioned my family background and The Spirit Level. In my view trade unionists should not only support the Labour Party, but take an active part in the Party arguing within for change. Bill made a number of points about the role and nature of trade unions and the argument that it is better for unions to be aliened to no particular political party.

I had a top Labour ringer with me, Dave Draycott.  Dave is the Unite Branch secretary for Leeds City and also a Labour Party Councillor in Calderdale.  It was the first time Dave and I had ever met up in person (rather via email or social media). In the Q&A that followed he made (in my view) a number of forceful and well made points. In particular the need for a true plurality in any socialist society to prevent the inevitable tendency to oppression, that you get in any society where any single political or economic belief is dominant.

Afterword we all went to the local pub and continued the debate. The SPGB have some interesting characters. One very forthright and vocal SPGB member had been brought up in a London working class family who "worshipped Mosley".  Another, use to be the secretary to the National Coal Board Pension scheme.  With my pension governance hat on we had an interesting conversation about "Arthur" and  Cowan v Scargill. He had also enjoyed hugely this post.

Update: Bill (aka Deathy) has let me know that he is sure that the vocal recording of the debate did work and he will chase it being posted on their website.

Council Speech on Income Inequality (and some other stuff)

This is my speech on Monday evening at the Newham Council meeting. "Chair, Council, John Gray, West Ham Ward, speaking tonight on my personal views, about why greater income equality is better for everyone in our society and the evidence from the Book “The Spirit Level” to back up this assertion.

While I am sure that all of us in this chamber share a belief in progressive politics, in making our borough and our country a more equal and more just society, often we cannot agree on the way to build Jerusalem, in our green & pleasant Newham. We would all like to see greater income equality, especially for those living in poverty but we need to have a wider understanding on the causes and impact of poverty before we decide how best to tackle it.

A major problem for those who see themselves on the Left of politics is that that many think that socialism generally was discredited by the failure of Marxist states such as the Soviet Union and Eastern Europe. Not only their economic failure but also by the repression and the loss of personal freedoms.

Although the Labour Party itself has always been shaped more by Methodism than Marx, in my view and others, the Left has indeed lost its way and it has also been losing the all important Battle of Ideas to the Right.

This retreat by the Left and the resulting rise of the Neo-liberal Right was the main reason for the disastrous Financial services and Banking collapse in 2008. Which we are still paying the price for today and for the foreseeable future. 

However it is no use for the Left just simply wanting or wishing an alternative economy. It must be based on rigorous economic and empirical research. If the old socialist certainties of nationalisation and control of the means of production, distribution and exchange are no longer - what can take its place? 

The book "The Spirit Level" is I believe an important contribution to a new research based economic alterative. It was written by respected academics Professor Richard Wilkinson and Professor Kate Pickett and was first published in 2009 and an updated version in November 2010. They examined 30 years of national and international research. It is not a “theory of everything” which they are sometimes accused.

What this research found was that there was a clear statistical link in the developed countries of the world between income inequality, health and social problems. The smaller the gap between rich and poor, the more successful society was in terms of health and social problems. Based on this research, if the UK reduced the levels of inequality in our country, we could find increase in life expectancy, decrease in infant mortality; reduced crime (including murder), less mental illness and ill-health, less drug abuse and better educational attainment for our children. 

To me one of the great ironies coming out of the research was that they found that not only was greater income equality better for the poor, but it was also better for the rich to live in a more equal society. The health and social benefits of the rich as well as the poor improve. 

Once you identify the more equal and more successful societies you can then examine what you can do to change our society and make it more equal and more successful for all.  There are two main ways of reducing income inequality:-

1. Smaller differences in pay between the top and bottom earners before tax (like in Japan)

2. Redistribution through taxes and benefits from richer to the poor (like in Sweden)

I won’t go into the remedies since this is a topic in itself but it does seem to me that politically the pay of top executives in the private and the public sector is in the news and being discussed while the idea that we should actively redistribute by higher taxes and benefits is not currently on the agenda. Yet I think that there must be a combination of restraint at the top and support for the vulnerable at the bottom. 

The Right have of course attacked the Spirit Level research because they say it interferes “in the Market”, and that the “Market knows best”. As 2008 showed us, the market is not always right, it does need at times, regulating and moderating in the interests of a better society. A society which again, I stress benefits everyone, the rich and the poor. So let us go on now to win the Battle of Ideas. The Banking crisis for the Right should be the equivalent of the fall of the Soviet Union to the Left. Let us create a new society, a New Jerusalem based on statistical evidence of what works and what doesn’t, not the outdated dogma or wishful thinking of the past. Thank you.

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)