the poorest pay 47% of their income in tax (the richest pay 34%)

Check out post at TUC Touchstone: "Saving Our Safety Net Fact of the Week: the poorest pay 47% of their income in tax (the richest pay 34%).

Why should the poorest pay the most and don't let the Daily Mail continue to confuse income tax with all taxes and National insurance.

Note: taxes as a proportion of gross incomes

UNISON LGPS Seminar 2014 - Time to govern YOUR money!

This was my welcome speech to the 120 UNISON representatives who attended our National Local Government Pension Scheme seminar.

I chaired the meeting but stole most of this intro from the speech that our President, Lucia McKeever, was due to deliver. Lucia was unwell today and could not attend. I will post further on what turned out to be an excellent seminar.

"Good morning everyone

And welcome to UNISON centre – my name is John Gray and I will be chairing this seminar today. I am a member nominated representative on the Local Government Pension scheme and a UNISON NEC employer trustee on our staff pension scheme.

I know some of you have travelled a long way today

We appreciate your commitment – wherever you have come from and whatever branch or service group you represent

There is a lot to get through today – so I will be brief

One of the outstanding achievements of the trade union movement are the negotiation and creation of pension schemes and pension funds.....to live a decent life after retirement is what we all deserve

As a long standing LGPS rep I understand our own scheme and as a trustee of the UNISON staff pension fund I have a good grounding and understanding of the importance of good governance, good investment returns and effective management of the assets we hold in trust for our employees

I believe the role of a pension board member is challenging and exciting – it is one of the most important jobs a trade unionist can take up – looking after the savings of others

It is natural ground for us – to be inquisitive, to question, to probe and find out – to ensure the members get the deal they expect and hopefully more

Today this seminar is about preparing you for the role of LGPS board members – to take you through the key issues your officers and NEC members have been negotiating on your behalf

It has been a long journey to gain the right for you to sit on the LGPS board decision making process – back in 2003 local government conference motion requested the union campaign for your rights to govern your money – I am proud to say we are nearly there

We have had to strike and negotiate to win this opportunity – let’s not throw it away

By April 2015 every LGPS fund in the UK must have a board – with equal numbers of scheme member and scheme employer reps

We have put in place the resources to help you achieve that – every region has a project plan that is co-ordinated at the centre – we have training and in the New Year we will launch web based resources for you all

The key message I bring to you today is this – it cannot happen unless you and your branch and your region are prepared – after today we need to step up our efforts to ensure that every board has UNISON representatives – to ensure that scheme members are for the first time – represented at the table.....

This is an historic opportunity – there is £200 billion worth of assets to oversee – there are millions of scheme members and pensioners that need your skills and judgement to represent them....

I can do it - You can do it – we can do it together.....

Make sure you ask questions and participate – this day is for you...enjoy it"

A cooperative approach to public services

Hat tip Co-operative Councillors newsletter. "This short animation outlines a vision for a new approach to engaging with communities and delivering services to meet their needs and aspirations. It calls attention to the limitations of top-down, Whitehall-driven public services and highlights the value of a co-operative council model which is able to draw on local networks, resources and intelligence".

International Human Rights Day

"The UN General Assembly proclaimed 10 December as Human Rights Day in 1950, to bring to the attention ‘of the peoples of the world’ the Universal Declaration of Human Rights as the common standard of achievement for all peoples and all nations.

This year’s slogan, Human Rights 365, encompasses the idea that every day is Human Rights Day.

It celebrates the fundamental proposition in the Universal Declaration that each one of us, everywhere, at all times is entitled to the full range of human rights, that human rights belong equally to each of us and bind us together as a global community with the same ideals and values".

The Ten Principles

The UN Global Compact's ten principles in the areas of human rights, labour, the environment and anti-corruption enjoy universal consensus and are derived from:

• The Universal Declaration of Human Rights
• The International Labour Organization's Declaration on Fundamental Principles and Rights at Work
• The Rio Declaration on Environment and Development
• The United Nations Convention Against Corruption

The UN Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labour standards, the environment and anti-corruption:

Human Rights

• Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and
• Principle 2: make sure that they are not complicit in human rights abuses.  

Labour

• Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
• Principle 4: the elimination of all forms of forced and compulsory labour;
• Principle 5: the effective abolition of child labour; and
• Principle 6: the elimination of discrimination in respect of employment and occupation. 
   

Environment

• Principle 7: Businesses should support a precautionary approach to environmental challenges;
• Principle 8: undertake initiatives to promote greater environmental responsibility; and
• Principle 9: encourage the development and diffusion of environmentally friendly technologies.   

Anti-Corruption

• Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

Cllr Seyi Akiwowo speech on diversity & heritage to Newham Council

Thank you Chair and good evening to my fellow Councillors and the Mayor.

To be elected to this Council as a Labour representative and stand here speaking in this chamber is a great honour. To be elected as the first young black woman by the residents of Forest Gate North, the ward where I grew up is also a very personal honour.

For my Maiden speech I would like to draw members’ attention to the recent anniversary which spanned across a month with celebrations and educational activities galvanising many members from different communities including those from Newham. I’d like to also remind members of the importance of celebrating our diversity and shared heritage in Newham.

October 2014 marked the 27th UK Black History Month - a significant milestone in the progress towards achieving racial equality in this country.

Seizing the opportunity to discuss Black and world history and honouring the too-often neglected accomplishments of black communities is what inspired me as a young Black female growing up in Newham.

It is this that has helped me forge my own strong British Nigerian identity - and has provided the grounding, knowledge and confidence to stand here this evening talking to you all.

Living in Newham means we have luxury of not having to travel the whole world to learn different communities’ heritage we do this every single day. Whether this is taking part in an Iftar, celebrating the birth of Jesus at a local church, enjoying a delicious Jerk Chicken and rice and peas meal at Stratford Theatre Royal, shopping in Green Street, or visiting the beautiful Hindu temples in East Ham.

Newham has the highest proportion of Black and Minority Ethnic residents of all the London Boroughs from ALL parts of the globe. What an opportunity and advantage this gives Newham in this 21st century!

And there are so many talented, pioneering black people living or who have lived in Newham that have gone on to achieve fantastic things including black actors Idris Elba from Canning Town and Chiwetel Ejiorfor from my Community Neighbourhood Forest Gate. Black British Athlete Christine Ohuruogu MBE, Black Rapper Kano and Mr Benjamin Zephaniah one of my favourite English writers.  I remember reading Refugee boy in my English class at Sarah Bonnell and couldn't believe he was living in Newham!

The thing that makes me really proud of Newham is its offer to all people to learn from the rich tapestry that is our diverse community Newham Heritage week. I think is fantastic and believe it is important for residents to have opportunity to not only learn about their history but about the history of other communities as well.

Moving forward I strongly believe it is important to build on Newham Hertiage week. My ambition is to ensure that IN Newham, BHM and Newham Heritage Week becomes an explicit, whole community focal point, especially at a time when the deceitful UKIP's rhetoric on immigration is becoming so divisive.

I feel it is even more important for us as local politicians to promote and maintain community relations through discussions on diversity and culture and their significant contributions to
our shared Newham heritage, our future and our society in many many enriching ways.

It is apt that the Borough's Coat of Arms proclaims "Progress with the People" - and for me this underpins our Community Resilience agenda, as it recognises that our strength comes from those around us and the community we belong to.

By understanding each other’s heritage we break down barriers and help combat isolation and marginalisation thus promoting a sense of shared identity and place.

And I would therefore like the Council to join me in committing ourselves over the next four years to continue to instill this dimension of Community resilience in all our community neighbourhoods.

To encourage our libraries, key stakeholders, schools and each other to celebrate and be proud of all of Newham's diverse heritage not just in specific months but throughout the entire year".

Upshire Walk & Site of Boadicea End Game?

Off message but went for a great country walk on Sunday around Upshire in Essex.

Check out the free Essex Walks website.

I thought that I knew the area quite well but this 5.5 mile walk was different and apart from the distant buzz of the M25  (and crossing the motorway), it was very quiet and we hardly saw anyone until the end of the walk.

Near the start is "Boadicea obelisk" which you can see in photo on right (in between are deer running away from us). Which is probably just an 18th century folly but local tradition says it marks the site of the suicide of the Iceni Queen Boadicea following the defeat of her army nearby by the Romans.

You can walk over a broken barbed wire fence and visit (trespass?) the obelisk but there is nothing written on it. It is strange place and I found it very atmospheric. Who really knows what happened here?

The rest of the walk was lovely with lots more history and going up and down hills with great views but nothing too strenuous. The final bit, cross country in Epping Forest proper was another highlight. This is a recommended walk only 25 minutes by car from Newham, London.

More pictures on Facebook

"You Cannot Pick & Mix Which Human Rights to Respect" National Express LAPFF14

The President of the USA Teamsters Union, James Hoffa, sent a video message to the LAPFF conference to thank them for our support in their campaign to stop the North American arm of British company National Express's union busting.

Teamster Louis Malizia then explained to the conference more about the low pay & exploitation by National Express of school bus drivers as part of an "International Activism" debate.

He pointed out the reputational risk to the company from such behaviour and the considerable USA litigation risks from commonplace breaches of Labour law and health & safety legislation.

In the Q&A I made a contribution that there are Ten United Nations Universal Principles of Human Rights. Responsible investors have to respect all Human Rights and this includes Principle 3 regarding trade unions - "Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining".

My point is that you cannot "pick and mix" which particular Human Rights you want to uphold. You have to uphold all of them equally. I hope that National Express and other rogue employers such as the Board of UK Catalysis Housing Association, will understand that if they do not uphold all human rights - then they run the obvious risk that they will be accused of not respecting human rights.

Cherie Blair CBE QC "how better business practice can drive both market & social returns" LAPFF14

Picture of Guest Speaker at LAPFF conference, Cherie Blair, with the youngest member of the Newham Council Pension Committee (and possibly in the entire UK?) Cllr Seyi Akiwowo.

Cherie spoke about how when she started to practise law, human rights was not on the agenda especially for pensions. A common view at the time was that of the economist, Milton Friedman, that the only job of business was to maximise profit.

Nowadays most retail shoppers surveyed say that business ethnics matters but will they remember this during a Black Friday wrestle?

Socially responsibly investment is not a drag on company performance but improves it. According to the FT only 50% of companies currently comply to the Code of Practice.

Pension funds are holding the keys to capital, you can demand good business practises. You can help bring about change in the world - in the here & now. Issues such as child trafficking are not just for the  Police & Governments but also for pensions funds.

Those who are sceptical of this should remember the German philosopher, Schopenhauer's, three stages of truth "First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident".

Cherie also referred to the glass ceiling of women on Company boards. Research shows that most board appointment are made are the basis that "they know the company Chairman". Diverse boards result in better financial returns

Cllr Akiwowo asked Cherie on behalf of young people "How do we make pensions more sexy and make all aspects of diversity important? While Newham's elder Pension statesman, former Chair of LAPFF, John Saunders, also asked her a question relating to her work for the Kazakhstan government. Both questions were smoothly and calmly answered by her.

She agreed with Cllr Akiwowo that we need to educate young people about pensions and make pensions more relevant to all.  Also in response to John, that you cannot live in an  "ivory tower" and must be prepared to do the right thing even in a different and difficult environment.

Engagement Panel at LAPFF14

The next item at the Local Authority Pension Fund Forum (LAPFF) conference was a panel on  "engagement" with Cllr Kieran Quinn GMPF, Chair Sir Merrick Cockell, Cllr Richard Greening LBI and Cllr Cameron Rose LPF.

Investor engagement is probably one of the most significant things that LAPFF does on behalf of its members. "By bringing local authority funds together to work collectively, the Forum is able to maximise their influence" .

Cllr Quinn started by pointing out how important it was for investors to engage and keep an eye on  all the companies they invest in - who would have expected Tesco's to have behaved in such a way? Trinity Mirror refused to accept that they had a problem with the Hacking scandal but all the information from "Hacked off" proved to be true. How could Barclay's justify giving three times as much money in bonuses as they returned to investors?

One of the most positive engagements he experienced was after the Rana Plaza garment factory collapse in Bangladesh when reputable companies were coming to us to explain what they had done and what they were planning to do. There was no investor rush to exist Bangladesh which would have not helped.

Sir Cockell pointed out that with engagement "you may lose the vote at Company AGM but still win the argument"

Vice Chair of LAPFF, Cllr Rose discussed the engagement he has had on Carbon risk with the UK major oil majors and the fall out from falling prices.

Cllr Geening talked about how engagement can take time and be difficult. Such as the lack of progress with National Express on their anti trade union activity in the USA. Management don't think there is a problem. However, it took time for similar issues to be dealt with at First Bus and engagement did eventually work.

I raised a question to the panel about whether they would support disinvestment in a company as a last resort if engagement failed?

The panel response was as a very last resort they would consider disinvestment but it would have to be at the very end of the road. The whole purpose of engagement is to change company behaviour and if we walk away from a company then it won't necessarily change anything.

There was a good point made about what would be the future of engagement if the LGPS was forced to invest only in passive (tracker funds) and therefore could never disinvest.

LAPFF Conference 2014: Public Funds & Public Purpose

Yesterday I came back from the Local Authority Pension Fund Forum (LAPFF) conference. I will post more on the conference later on.

It was I think the best attended LAPFF conference I have been to which reflects the huge changes and chellenges that the Local Government Pension Schemes (LGPS) faces and that membership of LAPFF is at an all time high.

The conference opened with a welcome from LAPFF Chair, Cllr Kieran Quinn Greater Manchester Pension Fund.

The Conference Chair was Sir Merrick Cockell, former Conservative leader of Kensington and Chelsea Council and the Local Government Association. He is now deputy Chair of LPFA. I found his remark that "No matter what your politics are you must be concerned about the under supply of housing" interesting.

He also said that we nationally need to invest in infrastructure for not only social purposes, but for sustainable and better returns than gilts & bonds. He believes the future is pooling & collective investments and you don't just need sovereign investment funds such as Qatar for such infrastructure & housing projects.

In the past Sir Cockell has publicly supported the merger of all 101 LGPS into just 5 funds and that this could result in some 300,000 new homes being built every year.

Next was a debate on LAPFF "engagement".