"It's the economy, stupid" Sunday Night Live 31 Jan 2016

Sunday Night Live: It's the economy, stupid 5pm, 31st Jan 2016                    View this email in your browser

It’s the economy, stupid As applicable now as it was during the 92 Democrat US Presidential election campaign, ‘It’s the economy, stupid’ remains a de facto slogan of our times.   With continuing financial spasms occurring across all major markets amidst fears that China is heading into a recession; the world economy facing the prospect of another 2008-style crisis; and criticisms that the Bank of England are sleepwalking into another financial meltdown despite Osborne’s talk of 2016 being ‘mission critical’ for the UK economy, this Sunday Night Live session with key economic figures and ahead of the March budget, will explore: How realistic is it to reduce economic inequality in a financialised global economy where national governments are limited?  What are the disruptive consequences of technology plus implications for inequities in the wider Labour market including persistent wage stagnation? Can governments create balanced and sustainable economies?  What exactly is New Economics? So come join next week’s Sunday Night Live session following a week when the Labour Party has announced a series of public events to broaden the debate around economics in Britain, and inspire members of the public to talk about economic ideas in the hope they will inform Labour policy, plus a Fabian Society conference speech by Corbyn who placed addressing economic inequality at the heart of Labour’s renewal.   We look forward to seeing you! Sunday Night Live Team Register HERE for free

A Merry Christmas for the Very Rich

Check out this seasonal message from the ONS wealth data via TUC TouchStone

ONS wealth data: The rich just got considerably richer

18 Dec 2015, by Geoff Tily in Economics

 

In cash terms the top 10% now own £5.0 trillion of UK total household wealth, according to the latest ONS wealth and assets survey (over 2012-14). With total wealth standing at £11.1 trillion, that means they have 44.8% of it.

Last time this was calculated (2010-12), they had £4.1tn of a £9.4tn total – so owned 43.6%.

This increased share of 1.2 percentage points (ppts) is very hefty relative to the past three readings from the ONS.

With the rich gaining percentage share of the pie, others must lose.

The chart below shows the biggest losers are those in the bottom half of the wealth distribution. The lowest 50% have 8.7% this year, down 0.9ppts from 9.6% last year.
The rest of the top half of the wealth distribution (the 40% below the top 10%) also lose but with a smaller decrease of  0.3ppts.

As a result, the most wealthy are catching up with the wealth owned by all the rest of the top half of the wealth distribution – the gap is now at its narrowest yet.

That said, in cash terms, all deciles saw a cash increase in wealth (though for the lowest decile this was because of a less negative figure for financial wealth).

The gap between richest and poorest region...

And of course the gap in the UK is by far the worse. This cannot continue. Only a Labour Government can make a difference. 

Go Dutch to increase income equality by 99%

This is another important, short but clear, animation from Inequality Briefing.  If the rich continue to get richer and richer while the rest of us get poorer then unless we change, we are sleep walking into a disaster.

"The film highlights how: pay for top bosses nearly doubled over the past decade, while ordinary workers wages remained the same

a FTSE 100 CEO earns four times as much in one year as the average worker does in their entire lifetime

if total incomes in the UK were divided as evenly as in Denmark or the Netherlands, 99 per cent of households would be better off by nearly £3,000 per year".

 (Gentle hint to Inequality Briefing - I do think it would help if you referenced the data).

"A New Direction for the Labour Party" Motion 3

"A New Direction for the Labour Party" Motion 3 came from my branch and was adopted by the London UNISON Labour Link Forum as one of our two motions to National.  Gloria Hanson moved the motion. I'll post her speech tomorrow.

"This UNISON Labour Link Forum notes:-

That there is no political alternative to the Labour Party, warts and all.

The last Labour Government despite its faults delivered massive benefits to our members and other working people. Pension credit and the minimum wage put real money into the pockets and purses of pensioners and the low paid. While it invested in the NHS, schools and protecting the vulnerable.

We note this Tory Coalition Government and its policies to favour of the wealthy, its plans to dismantle our NHS and the slashing and burning public services.

The Labour Party is the only hope for the future of progressive politics and obtaining social justice for our members and all other working people. We must all do whatever we can to ensure that a Labour Party government is returned at the next General election.

Yet we must also ensure that the next Labour Government is brave and decisive in tackling the evils it will inherit. Our economy needs to be rebalanced away from the free market liberalism of the recent past. We need a genuine mixed economy.

The income inequality gap between the rich and the poor in our society will be the key measure in judging the success or otherwise of a future Labour Government.

While we do not want to indulge in the pointless sloganising and postulating of those who do not have any credible alternative, we do want the next Labour Government to take the necessary action to reduce income inequality in our society. 

This forum calls for UNISON Labour Link to carry on its work within affiliates, TULO and the Party to ensure that the next Labour government:-

Commits to reducing income inequality by the end of its term and delivers on this promise".

Greater London Region

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

Interview with Asahi Shimbun Correspondent

Last week I was interviewed by Wataru Sawamura (picture left) who is a correspondent for the Japanese newspaper "Asahi Shimbun". This is the 2nd most popular paper in Japan. He had also interviewed previously our Regional Equalities Convenor, Monica Hirst who is a NHS nurse. Wataru explained that he is interested in finding out more about the human cost of austerity in the public sector but also in Japan the public sector was seen as offering secure employment.  Many Japanese who work in the sector were worried about their future and what was happening to such jobs elsewhere.

I tried to explain the impact of housing benefit cuts in London which will result in the "cleansing" of the poor from much of London. Wataru understood this concern and expressed his view that one of the notable things about London is that the poor and the rich lived next door to each other unlike other more polarised capital cities such as Paris.

We also discussed that in the UK many public services such as the care and support of the elderly and the disabled are provided by the  third sector ("not for profit" Housing associations and charities). Yet currently there was a race to the gutter by some providers and commissioners of such services. Decent providers are being undercut by rogues (Rachman Employers) who win contacts to care for the vulnerable by sacking and demoting workers while also slashing their pay and conditions.  

Wataru had not heard of the book "The Spirit Level" and its praise of Japan as being the most equal society in the world with regard to income inequality and the benefits that come from this. I said that in my understanding in Japan unlike the UK if an organisation has genuine economic difficulties then their managers will usually act as leaders and volunteer for pay cuts before asking their staff for sacrifices. In the UK some care and support charities cut the pay of their (already low paid) staff and then go on to pay their senior management team bonuses for reducing such costs.

Wataru accepted that in Japan mangers did take their responsibilities carefully but in recent year’s most new jobs had been on short term agency contracts so many Japanese are very worried about the future direction that their society will take.  

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)

UnisonActive take on defeat of London trots

Check out UnisonActive report : "UNISON London Region's existing leadership team, led by Convenor Gloria Hanson, saw off an attempt by the SWP and its sympathisers to take over at yesterday's Regional Council AGM. This is the seventh victory in a row for London grass root union activists who soundly defeated the challengers at the ballot box.

UNISON President Eleanor Smith was a keynote speaker together with Labour Party candidate for Mayor, Ken Livingstone. A motion attacking Boris and supporting Ken and Labour Assembly members in the election in May was passed unanimously. Motions calling for "Secure and Affordable Housing" and "Why income equality at work matters to everyone" were passed and prioritised as regional motions for National Delegate Conference.

Record inequality between rich and poor

Hat tip Equality Trust  The OECD says rising inequality is not inevitable.  Progressive taxes and making sure that people are in well paid jobs is essential. 

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)