One of them is Head Fixing Industry by John Keracher. John was born in Dundee and later moved to America where he formed a group called the Proletarian Party of America.

Interesting stuff. Hopefully someone can find the time to run some text scanning software against it and get a text version of it.

The chilly blast of austerity will be felt by us all in the shape of cuts to public services and wage freezes.

However, the Scottish Socialist Party believes there could and should be some more welcome cuts made, including:

• Nationalisation of all banks, bringing the obscene bonus culture to an end.
• All MP’s and MSP’s to be paid an average skilled worker’s wage.
• Withdrawal of troops from Afghanistan and Iraq. These campaigns currently cost billions each year, and that’s without counting the appalling loss of life.

Neoliberalism As Water Balloon

The Diageo bosses have booted their workforces at Kilmarnock and Glasgow right in the teeth. These profit-hungry capitalists have spat in the face of mass public opinion – expressed through 20,000 marching in Kilmarnock, and 500,000 email protests to Diageo shareholders – by confirming closure of the 200-year-old plants. And they didn’t even pretend to consult; they announced this on day 71 of a 90-day consultation period.

The Scottish Socialist Party has from day one warned that multi-nationals like Diageo have only one care in the world: profit! They don’t give a toss about chucking 900 workers and their families on the scrapheap, virtually closing down the town of Kilmarnock in the process. And we have equally warned that any belief that such greedy profiteers can be persuaded by arguments into saving the plants was dangerously delusional – that the only language they will listen to is decisive action that wallops their wallets.

With this callous, arrogant announcement that they are forging ahead regardless, the time is rotten ripe for the unions to lead workers in a campaign of industrial action, to hit Diageo’s profit margins.

This could be accompanied by a truly international appeal for a mass consumer boycott, which would potentially have a devastating impact on a company that relies overwhelmingly on overseas markets, and its overseas image.

Already the campaign of protest emails and online petitions has garnered widespread support in the likes of the USA, one of Diageo’s prime markets, and the Teamsters’ Union has offered to support action by UNITE the union.

A tremendous publicity campaign has been conducted over the summer, on the streets, at football matches, and at golf and other sporting events sponsored by the world’s biggest drinks company. But unless the national union leaderships give confidence to workers to hit back with action that damages the production of profits for Paul Walsh and his cronies in the boardroom, there will soon be nothing left to fight back with.

Diageo’s chief executive Paul Walsh has just had another obscene boost to his wealth, at precisely the time he struts the world stage handing out redundancy notices to families who face a future of not knowing where the next meal will come from.

His ‘wage’ actually went down last year compared to 2008 – when he took home £5.1m. That previous income should help cushion him from having to exist on £3.5m in the year up to 30 June 2009 … the very day before the closure announcements!

That means a ‘salary’ of £67,300 a week! And if that is not vomit-inducing enough, his pension pot more than compensated for the fall in salary: it rose by £3.4m to £11.7m during the past year. So if this arrogant prat decides to retire, he stands to draw a pension of £637,000.

Walsh assured the SNP government-led Task Force – in an interview on BBC Scotland – that, I will be very open-minded when I look at the content of their alternative business plan. But in real life he didn’t wait even the derisory six days that elapsed between receiving the governments’ proposals and publicly shattering the fate of these workers who have given a lifetime to creating his obnoxious levels of wealth.

Within a couple of hours of declaring his open mind, Walsh was in the midst of a conference call to his cohorts in the USA, where he boasted:

A lot of the restructuring we’ve announced over time will help gross margin. They may invoke some letters to our shareholders, as we close plants in Scotland. But it’s the right thing to do for the future, and we have firmly grasped that nettle in order that we do not see gross margin slippage.

This arrogant contempt buries all the hopes of the SNP government, Ayrshire and Glasgow councils, and some in the leadership of the unions that – as Alex Salmond put it – we are looking for something that reconciles Diageo’s financial objectives with Scotland’s social objectives.

They are irreconcilable! Diageo has just announced another 4 per cent rise in their profits, to £2.6billion. But that is still not enough for these greedy parasites, so they want to cut back from three to two bottling and packaging plants in Scotland, chucking 900 families into despair, to save themselves £42m a year.

And if they get away with this butchery without a real shot being fired, how long will it be before they try to ship whisky across the high seas to be bottled in India or China by slave labour, closer to one of their huge markets?

Whilst the unions need to build members’ confidence for swift industrial action, and appeal for supportive consumer boycotts internationally, the government should drop it’s grovelling pleas for Diageo to accept public money and save maybe half of the 900 jobs; it’s not going to happen! Instead, they should seize the assets that have been built up by two centuries of workers’ skills and labour, supplemented by public subsidies to Diageo in the past, and turn them into public property, sustaining all jobs, embracing the know-how of workers in creating a genuine alternative plan for a publicly-owned drinks and food industry.

The time for action has arrived. Vast public support exists for the Diageo workforce in their plight. That could easily be channelled into a movement to halt the closures, with calls on the governments of Edinburgh and London to step in and bail out these workers, the way they were both so keen to do for the bankers who wrecked the economy in the first place.

6th August 2009

One of the most perverse contradictions in a system riddled with cruel absurdities is that of the working week.
Whilst unemployment leaps upwards, with a scourge of redundancies and closures, the length of the working week for vast hordes of workers increases.

Whilst employers lay off workers, cutting their hours and pay, others demand overtime of their workers – and obscene proportions of this is unpaid overtime.

Long Hours Culture

The UK suffers a notorious ‘Long Hours Culture’. And after a few years of decline (in the years 1998-2006), the hours worked is rising rapidly again.

Figures from December 2008 show that full-time workers in the UK put in an average of 42.1 hours a week – although that is acknowledged to be an under-estimate, not including undeclared hours on second jobs.

Beneath this average lies appalling levels of drudgery for a big minority: one in eight works over 48 hours a week!

And for male workers, the figure is 19.7 per cent exceeding the 48 hour week.

Put another way, in Scotland alone, 260,000 workers are on over 48 hours; 3.3 million across the UK. The latter figure is an increase of 180,000 compared with 2007.
A breath-taking 460,000 workers clock up over 60 hours work a week (54,000 of these in Scotland) – leaving little else time for family or social life after travel to work time and sleep is accounted for!

Long hours at work lead to increased illness, including stress.

It also lowers productivity levels, and reduces Health and Safety for the workforce, as tired people are a risk to others as well as themselves in many jobs.

21st Century Drudgery

So why do workers in Scotland and the UK put in such back-breaking, mind-boggling hours at work in the 21st century?

One of the most obvious causes is low hourly rates of pay. This country is one of the lowest-waged economies in the advanced world. Workers are frequently compelled to clock up the hours to get a half-decent income for themselves and their families – through hours that lead to neglect of family life and increased family break-ups.

But there is also a more naked form of exploitation that explains the Long Hours Culture: unpaid overtime. An absolute majority of the workers on long hours get no extra pay for their overtime.  Last year, 5.24 million workers in the UK (425,000 in Scotland) worked unpaid overtime, to a total value of £27billion.

That is the highest toll of unpaid labour since records began in 1992.

It is the equivalent of working for absolutely nothing from 1st January to 27th February last year.
It means these workers gave their bosses an average of £5,139 worth of work without getting a single penny in pay.

Unpaid Labour

As socialists as far back as Karl Marx in the 1840s have explained, profit is the unpaid labour of the working class.

Two of the several means by which the capitalist class boost their profits are by intensifying the amount of production a worker provides during the hours of work, and by lengthening the working week.

Certainly in recent decades bosses have extracted more work out of fewer workers as a means of piling up their profits. But the growing trend of unpaid overtime is one of the most glaring forms of profiteering. And it is likely to rise, as the recession bites deeper; fear of being made unemployed gives the employers a powerful weapon to pressure people into unpaid hours of extra work.

All this, whilst the number of people with no hours of work – the unemployed – rockets to levels not seen in years.

And meantime many employers – including in sectors as varied as the car industry, steel, the finance sector – are putting workers on reduced hours with equivalent cuts in pay; prolonged shut-downs with savage pay cuts; ‘sabbaticals’ as an alternative to outright redundancies – all to preserve profit margins at cost to workers’ pay packets.

Open Secret Company Accounts

Instead of feeding the philosophy that there is nothing can be done about all this – and specifically about job losses – it is high time the leaderships of the trade union movement spearheaded an aggressive campaign to ‘cut hours – not jobs’, to ‘cut hours – not pay’.

Every time some employer demands layoffs, redundancies or outright closures, the first demands of the trade union movement and its allies should be for public inspection of all the secret company accounts, to expose where all the profits have gone – and in many cases where all the public grants and subsidies have gone. And this should not just look at the current year’s accounts, where bosses may be able to demonstrate loss-making during the recession – but also the accounts for previous years of piling up profits.

Such an exercise would provide plenty of ammunition to challenge the employers’ ‘justification’ for job losses or closures.

Cut Hours – not Jobs or Pay

But regardless of whether companies and public sector employers are announcing job losses, they should be challenged by a generalised campaign for a shorter working week – without a penny being lost in pay.

As an immediate initial step, the battle-cry for a 35 hour maximum working week across the board, but crucially without loss of earnings, would rally workers and their families around an eminently rational measure in this crazed, profit-motivated system.

Such a shorter working week would vastly reduce stress levels and other illnesses, help improve health and safety at work, and actually boost productivity from less tired, more motivated workers.

It would greatly improve the family and social lives of working people – a real measure to enhance the much talked about ‘work/life balance’.

And crucially, it would create at least a couple of million jobs across the UK!

Challenging the Profit System

The demands to ‘cut hours – not jobs’ and ‘cut hours – not pay’ would of course challenge the central motive of capitalist employers: profit.

They impose long hours; unpaid overtime; pay cuts through prolonged shut-downs and reduced hours; closures and redundancies…. all to secure the maximum profit levels at the expense of workers’ lives being made a misery.

By cutting the working week, but protecting the level of income of workers, a greater share of national wealth would be distributed in wages, a lesser percentage in profit.

This fight to share out the work, without loss of earnings, needs to run in tandem with the campaign for a living minimum wage, a safety net of at least £8 to £9 an hour, based on the formula of two-thirds median male earnings.

Many who work day and night at risk to their own health are on dirt cheap wages – a system encouraged rather than eliminated by the pathetic level of Labour’s current minimum wages.

There are alternatives to long hours of work alongside no work for millions, a rational alternative to the slaughter of jobs in pursuit of profit margins.

The potential power of the unions and the communities they are rooted in needs to be combined with the sharp weapon of fighting demands that would share out the work rather than share out the misery.

6th August 2009

A rash of factory and workplace occupations is spreading across the globe as workers defy the brutal consequences of the recession.

Instead of surrendering to mass redundancies and outright closures – sometimes at a few minutes’ notice, often without even redundancy packages – workers are occupying their workplaces as a central method of struggling for justice.

Every example that wins concessions is boosting the belief of other workforces that there is an alternative to just resigning to the butchery in the boardrooms – that belligerent, militant class action can win at least something where workers have nothing to lose.

Socialists have a duty to assist fellow-workers in deploying the best methods of struggle to save jobs – as well as uniting workers around fighting socialist policies that would challenge and eliminate the need for redundancies.

Victory to Vestas

The sit-in at Vestas wind turbine factory on the Isle of Wight has created a storm of international publicity and sympathy for the 600 workers who face the dole, at the very time the Labour government pledges to create 400,000 new green jobs over 5 years.

The 25 Vestas workers who staged this factory occupation, supported by a mass rally outside every night, displayed tremendous courage in the face of numerous attempts by the bully-boy, anti-union Vestas bosses to evict them.

They tried to starve them out, blocking food supplies being sent in by supporters. They threatened the sack and removal of redundancy payments from the workers staging the sit-in. They took out an injunction to gain re-possession of the factory – in order to close it and move production to the USA and China!

Vestas had no union recognition. Some workers joined a union and started organizing others. A group of them established a campaign committee and organised the sit-in from 20th July. This bold action won the active support of hundreds others – Vestas workers, other trade unionists, environmentalists, the local community – on an island where there are no other jobs to go to.

Vestas workers have gone further than any of the other recent factory sit-ins in terms of the demands they are making from their ‘campaign headquarters’ inside the factory: “Gordon Brown – Nationalise this!” declared the banner from day one.

A statement from the workers’ occupation declared, If the government can spend billions bailing out the banks – and even nationalize them – then surely they can do the same at Vestas.

Every victory encourages action

As well as organizing solidarity for these heroic fighters for jobs and the protection of the environment, we have a duty to learn from workers’ experiences of sit-ins as a method of struggle, particularly as redundancies and closures sweep the land like a pandemic.

Vestas is only the latest in a series of workplace occupations in the UK. And Thomas Cook workers in Dublin, members of the TSSA union, on 31st July occupied in defiance of closure of 100 offices.

The recent outbreak of factory take-overs in Britain and Ireland began with Waterford Glass workers occupying the plant on 30th January, when the employers announced an immediate end to production and 480 job losses.
After 8 weeks’ struggle, they reluctantly accepted a deal that saved 176 of the 480 jobs.

Visteon occupations

But their example fed the appetite of other workers facing savage closures under brutal terms and conditions. On 31st March, over 600 workers at three Visteon (ex Fords) plants in Belfast, Enfield and Basildon occupied and picketed when they were declared redundant at a few minutes’ notice, without any redundancy pay and with their pensions frozen.

A month later, appropriately on May Day, the workers won enhanced redundancy terms, payments in lieu of notice, and holiday pay.

As Kevin Nolan, UNITE union convener at the Enfield factory put it,

People ended up with a year and a half’s worth of salary. That’s a victory when you consider Visteon were hiding behind the recession as a way of completely abandoning all responsibility for 600 UK workers and just dumping them.

Prior to that high-profile sit-in, a small group of non-unionised workers at Prisme in Dundee occupied their workplace, encouraged by Waterford Glass workers, (who subsequently visited the Dundee sit-in). They had been sacked without notice and without any redundancy pay Fifty-one days later, the sit-in beat off the redundancies by establishing a cooperative.

Vital part of history

Workplace occupations are not a new form of struggle, of course, but this new wave of sit-ins follows many years of the method receding into the background.

Italian car workers seized their factories in northern Italy in the 1920s. What were dubbed ‘sit-won strikes’ swept countries like France and the USA in the mid-1930s. Closer to home and to the present, the most famous workplace occupation was the 1971-2 Upper Clyde Shipbuilders (UCS) ‘work-in’ – in reply to the Tory government’s closure of the yards with at least 6,000 redundancies. This triggered a mass movement, saved many of the jobs after the Tories were forced into a U-turn, and was the impetus to at least 200 sit-ins across the UK in the first half of the 1970s.

For a time such audacious actions receded, although Lee Jeans (mostly women) workers in Greenock occupied in 1981; Caterpillar workers in Uddingston in 1986; and Glacier Metal workers in Glasgow won an outright victory after their seven-week occupation in November-December 1996.

Now, as the global capitalist crisis bites, with even more catastrophic closures and cut-backs on jobs looming, this form of struggle could come back into its own.

Powerful weapons of struggle

Sit-ins are a powerful weapon, paralysing production; psychologically bringing the battle into the bosses’ ‘own territory’; preventing them from stripping the factory of machinery and equipment that they may want to shift to other production sites, including abroad, in their hunt for subsidies and cheaper labour; preventing bosses from bussing in scabs past picket lines that are hamstrung by anti-union laws and deployment of the police (as seen, for example, at Timex in 1993).

But a sit-in ‘with folded arms’ can still be defeated, or at best win shoddy concessions far short of the potential victories on the agenda, if workers’ occupations are not accompanied by concerted campaigning outside the sit-in.

When workers facing closures consider a sit-in they should also try to prepare for a campaign of seeking solidarity from fellow workers and local communities – or at least put that into action as soon as they occupy. Such outgoing, concerted campaigning is critical, firstly to help prevent employers evicting them, secondly to enhance the prospects of outright victory for their demands. That was the advice we put into action from day one of the Glacier Metal occupation in 1996. It is clearly what the Vestas workers are ably applying.

Touring other workplaces; taking to the streets with leaflets, bucket collections and megaphones to explain the case behind the sit-ins; organizing solidarity mass pickets, rallies and demonstrations – all this and more was done in conquering outright victory for the 1996 Glacier Metal workers sit-in, and is the method being applied at other recent occupations to one extent or another.

Demands from the sit-ins

The other key question that remains is: what do workers demand whilst they occupy their workplace?

Of course that depends on what they are fighting against! In the case of Glacier Metal it was mass dismissal of the entire workforce in the drive to smash the union and rip up hard-won conditions. Full re-instatement of every worker, with continuity of terms and conditions, and continued union recognition, were the demands of the sit-in. And that was what was won!

In the case of Visteon, workers occupied to win redundancy payments and protection of their pensions. They won substantial concessions, though they still lost their jobs.

Vestas workers have made the most far-reaching demands – and absolutely appropriate ones to the situation, occupying in support of nationalization of the factory. With the need to save jobs and simultaneously save the planet from catastrophic climate change, the best route is public ownership of the UK’s only wind turbine factory, as part of the call for public ownership of the energy industry as a means of democratically planning clean, green energy production.

Most occupations arise from closures or mass redundancies. So defence of every job is the starting point. And instead of pouring a fortune from the public purse down the throats of profiteering bosses who are hell-bent on racing across the globe in pursuit of super-profits, workers and their unions should champion the demand for public ownership of the assets, under democratic working class control, to sustain jobs.

Alternative plans of production

In situations where a workers’ inspection of the company accounts and the industry concludes that continued production of their pervious products are either unviable or undesirable, alternative plans of socially useful and environmentally friendly output comes into its own.

Way back in the 1970s, workers at Lucas aerospace plants constructed such workers’ alternative plans of production. In subsequent years, several other examples were produced by workers in struggle, with the help of sympathetic experts. And the unions and peace movement have published well-researched proposals for jobs diversification in the defence industry that would actually increase employment.

In the 21st century, this is especially important, with vast scope for job protection and job creation to match the need for green social production, such as energy-efficient housing, a vastly expanded, integrated public transport network, and production and distribution of clean green energy. 

Reverse the tide of closures

Workplace occupations are not a ‘one-size-fits-all’ method of struggle, applicable on every single occasion.

They should not be turned into a fetish. But they are an enormously powerful weapon of struggle that should be utilized far more widely in the teeth of closures and mass redundancies, and in the vast majority of cases have won huge concessions or outright victories.

Strikes are another indispensable means of fighting to defend jobs. Often they are the most viable method of resistance in workforces spread around scattered workplaces – as in the Royal Mail currently, the civil service – and places that provide services rather than being centres of industrial production. On the other hand, in some conditions, strikes against closures can sometimes allow the employers to just walk away, leaving whole communities wrecked. Strikes can sometimes be more akin to a boss’s lock-out, and less effective in stopping asset-stripping by employers shifting production to richer pastures for profiteering.

In stark contrast to both, appeals to the employers’ good nature to ‘change their minds’ about closures are a pitifully weak response to the boardroom boot-boys, who will only ever ‘change their minds’ when they know the alternative is carnage for their reputation and profit levels.

Many workers will increasingly see they have nothing to lose in the teeth of mass redundancies, and a lot to win by taking up the cudgels. As Visteon’s UNITE convener Kevin Nolan recently told Labour Research magazine,

We just thought: ‘What do we have to lose?’ So we just went for it. If anyone else is in the same position I’d say weigh everything up and if you think there’s a chance of winning something back or improving your situation by occupying the place, then go for it.

By seizing control of the company assets, including valuable machinery, plus halting production, whilst using the workplace as a huge campaign headquarters, occupations provide workers with an unprecedented platform to take on the bosses who want to heap the crisis they have created on the shoulders of working people.

We have a duty to concretely assist every group of workers who take such action; every victory won is a boost to the generalized struggle to save jobs, not profits, to reverse the tide of closures and cut-backs endured for far too long. The national unions, TUC and STUC should urgently call rallies and demonstrations in solidarity with all who have the courage to stand up for jobs, and give courage to those cowed by the Juggernaut of closures and redundancies.

This Saturday we have an open meeting with Raphie de Santos leading us off on the crisis of capitalism, the recession, the credit crunch and economics.

In two weeks time we will be having a meeting as part of the election campaign. Speakers to be confirmed but we will have a candidate over from Frances new NPA – the New Anti-Capitalist Party. It will be at the DVA, 10 Constitution Road Queens Hotel on Wednesday 27th May at 7:30.

More details will be posted once confirmed..

Raphie is leading a discussion in Dundee on the economy on Saturday – come along!

Capitalism in crisis and the socialist alternative

Speaker: Raphie de Santos

12.00 Saturday 16th May

Abertay University
Kydd Building
Bell Street
Dundee

Respected economist and writer, Raphie de Santos was an advisor on derivatives and financial markets to several financial institutions including the Bank of England, the London Stock Exchange and the Italian Ministry of Finance.

He has been a guest lecturer on derivatives and financial markets at Harvard and New York universities and the London School of Economics and has spoken at the annual Nobel Foundation conference in Stockholm.

Raphie is co-author of recently published Socialists and the Capitalist Recession which will be available at the meeting. He is also a committed socialist and a member of the SSP and is a candidate in the European elections in June.

While workers aged 22 or over can expect to receive a minimum of £5.73, those aged 18-21 are guaranteed just £4.77. Workers over compulsory school age but younger than 18 are entitled to a mere £3.53. Those under this age, such as school pupils who deliver papers, are not covered by the legislation at all. In reality this often encourages the practice of employers hiring younger staff at lower wage levels, then finding ways to dismiss them as they age and their wage increases.

Britain is not the only country to have different rates for different people however, of around fifty nations who currently enforce minimum wage levels, only four (Israel, Chile, Belgium and Luxembourg) explicitly discriminate due to age. Other nations categorise based on skill level (Pakistan); industry (Cuba); whether or not the position is in the public or private sector (Bahamas); geographical considerations (Mexico); or how long an employee has been in their role (Canada).

Regardless of whether or not you believe that the minimum wage should exist, the inbuilt age inequality is surely indefensible. Can anyone give a valid explanation as to why the government feel I’ll automatically be worth an extra 97p per hour by the middle of next month, after my 22nd birthday?

Many make the argument that a 22 year old will have more experience, and is less likely to live at home with their parents, so does not require as much money. This opinion is based purely on often wrong assumptions and would have little credibility in a pub debate, let alone as a central part of a so called ‘progressive’ policy.

While the wage paid varies depending on age, the cost of living does not. I’ve yet to walk into a shop and see products priced on a sliding scale according to the customer’s age! Similarly, the income tax levels paid by those either side of the divide are identical.

Although some unions have continued to call for improvements to the minimum wage, such as paying the adult rate at 18, it is clear that these demands are not enough. The Scottish Socialist Party continues to call for a single, £8 per hour guarantee, regardless of the workers age.

In it he points out some of the policies we should be demanding now that we own the banks.

Bill Nuti, the Chief Executive of NCR has been awarded a bonus of £5.6 million. A month later he axes manufacturing at NCR in Dundee throwing 252 workers on the dole. They are not the only ones to lose out. Bill Nuti is feeling the pinch too – he has downsized from a private jet to a private helicopter. That’s spreading the cuts in the language of the head parasites of global corporations.

How many other workers around the country are being asked to take pay cuts or wage freezes for the good of the company? There is no good of the company – only good of the shareholders. The worst part of these cuts is not that the factory is not profitable but is not profitable enough.

It is not enough that the factory is not making a loss and that it makes money to these people. They don’t value the skills and experience of the workers – the ones who create the profit in the first place. They only value their own dividends and the madness that is demanding increase upon increase in their return year upon year. This not only leads to the decisions such as these but also the short term view of the company. Who cares if the decisions taken by chief executives mean a company will survive for the next 10 years, getting a massive increase in profit in the next quarter guarantees them big bonuses then. They then have the cheek to talk about the good of the company.

The workers of Prisme have shown the way, not intent on taking a P45 and no redundancy from their boss they, are starting up without the boss.

East Dumbartonshire SSP hosted a discussion on the crisis.

The lengthy video of the discussion is below.

Hardly a day passes without new announcements of devastating job losses, sometimes outright company closures, at levels not seen since at least the 1980 recession.

Workers’ lives are being made misery after years of being told by those in charge of the boardrooms and the Labour Cabinet that all was for the best in the best of all possible systems.
Household names like Woolworths has shut up shop with 27,000 redundancies – on bare minimum state redundancy packages of a few hundred pounds.

MFI, Adams, Arran Aromatics, Findus Foods … the food and retail sector is in meltdown, with forecasts of one in ten shops being empty by the end of the year.

That spells disaster for tens of thousands eking out a living on wages mere pennies above the minimum wage.

Bankers – and bank workers

The finance sector has been bludgeoned by the chaos caused by irresponsible, profit-crazed bankers, who made incomprehensible fortunes by gambling on the capitalist markets. The government’s bailout of the bankers has prevented complete collapse, but has not eased up credit nor boosted the spending power of the working and middle classes.

So now taxpayers’ money is to be raided further for a second, even bigger bailout. But this does little to protect finance workers’ jobs; 47,000 have already been lost, with another 10,000 redundancies expected in the next three months.

A familiar scene over the years when companies go into administration or liquidation is the intervention of financial services giant KPMG. Now this outfit is ‘offering’ its 11,000 staff the glorious ‘choice’ of three months ‘sabbatical’ on 30 per cent pay, or a 4-day week, with accompanying pay cuts.

As the bottom falls out of the housing market, construction workers face mass layoffs. We have the obscene contradiction of a Scottish building worker joining the ranks of the homeless on the eve of Christmas because he lost his job and couldn’t keep up the mortgage!

Car industry crisis

Another major sector facing the worst crisis in at least 30 years is the car industry. With a slump in sales and production, car workers are made to pay the price through a cocktail of pay cuts and job losses.

Honda has just extended its two-month shutdown by a further two months: the Swindon plant won’t re-open for production until June! The 4,200 workers in the factory are to survive on 50 per cent wages for those four months.

In Sunderland, Nissan is chopping 1,200 of its 5,000 workforce. The same outfit recently got £6.2m of government funding for production of a new model; they have shifted production of the Micra to slave-labour India.

Manufacturing industry is in freefall. Factory output collapsed at an annual rate of 22 per cent in November. And there is little prospect of rapid recovery. For instance, the collapse over 2008 in the value of the pound against the Euro (down 30%) and the US$ (down 27%) will not on this occasion lead to an export-led recovery in the UK, because recession is blighting the USA, Japan and the whole of Europe.

Public sector slaughter

Right now the private sector is in the front line of job losses. But on top of the tens of thousands of jobs already lost in the public sector in recent years, a devastating new round of Thatcher-like cuts confront the NHS, local authorities and civil service in the next year or so. As the Scotland on Sunday recently reported:

UK Ministers have already warned that the tax cuts and fiscal stimulus plans being put into place to offset the worst of the downturn will have to be paid for – and soon. The pain will begin, say many, at the end of the next financial year, in April 2010.

SNP Ministers fear that as the Treasury starts to rein in spending, its budget will drop by £500m a year. Scotland’s NHS and councils are heading for a repeat of the 1980s cuts enforced by Thatcher.

Leadership needed

In the face of these devastating blows to entire communities, cities and regions, one of the most disappointing features is the lack of decisive, coordinated calls for action from the leadership of the trade union movement – through the likes of the TUC and STUC.

It is hardly surprising that many of the workers facing the scrap heap are initially shocked and stunned, rather than confident of taking action to save their jobs and livelihoods. But to change that and turn shock into anger and action requires leadership.

Too many of the union leaders are like rabbits mesmerised by the headlights of a lorry bearing down on them. Too often they merely echo the employers’ fatalistic words about the global crisis, without offering any radical alternative that would save and create jobs. In the case of a regional official of UNITE who organises the Nissan car workers facing 1,200 job losses, he stated “One firm can’t ask for a bailout; every firm would want one”!

Instead of portraying themselves as powerless in the teeth of the capitalist crisis, union leaders need to rally their members with events and arguments that give individual groups of workers some confidence that they are not on their own, that there is a point in fighting back.

Union rallies

In 1980, within months of Maggie Thatcher’s axe-wielding government being elected, the unions and Labour Party mobilised some of the biggest demos in the UK’s modern history, against unemployment. Hundreds of thousands marched, and this gave a boost to the fighting spirits of individual workforces facing mass redundancies.

As a minimum first step, the STUC, TUC and national unions should call national demos and rallies against unemployment; in defence of jobs; for a 35 hour week without loss of pay to create jobs; and for an increased minimum wage.

The combination of big united rallies, and fighting policies that point to a different alternative, would begin to turn the tide against the working class being made to pay for the capitalists’ crisis.

It would give courage to workers to use every means possible to save their jobs for future generations of workers – including workplace occupations to combat asset-stripping by bosses who often shift production to slave labour economies abroad – after getting £millions in grants off the government to set up shop in the first place.

Socialist alternatives

Socialist measures are not a luxury for May Day speeches; they are an indispensable weapon that should be wielded by the unions to mobilise their millions of members and their communities, and to answer people’s widespread fear that there is no alternative to mass redundancies.

For example, there is a drastic need for public sector house-building and renovation – and for universal home insulation to cut fuel bills and help combat climate chaos. Tens of thousands of jobs could thus be created, if the governments of Westminster or Holyrood had the political will. To carry out such a plan of public sector housing, the unions should argue for public ownership and democratic control of the construction industry.

If there is a glut in the car market that causes shutdowns and lay-offs, the unions need to fight for socially useful alternative production. For example, the developing world needs agricultural machinery that car plants could build. Closer to home, a vastly expanded free public transport system would create tens of thousands of transport workers’ jobs and cut poverty in the communities, as well as helping the environment. But it would also require building fleets of buses, trams, ferries and trains – a source of jobs for many facing a shaky future right now.

The bankers have been bailed out to save their skins – and those of their pals in the wider system. So the unions rightly call for investment to shore up the car industry. But why not call for public ownership and democratic control, instead of for subsidies to the bosses’ profits and debts?

The unions need to call public rallies that rouse the confidence of workers to fight back, but equally they need to expound measures that go beyond the straitjacket of capitalist production for profit. Public ownership of the banks, big retailers, energy, oil, transport, construction and manufacturing would be a means to plan the production of goods and services for public need.

Struggle – or starve!

Scotland faces an exponential growth of unemployment, with the Centre for Economic and Business Research predicting an 88 per cent rise in the numbers unemployed this year – from 121,000 to 227,000.

The Scottish economy is plunging towards its worst contraction since 1931. The rich elite who rule and ruin our lives are determined to make the working class pay for the crisis, driving us back to the 1930s if needs be.

The time is rotten-ripe for the unions and socialists to champion a different future, where work is shared out under a shorter working week, but without loss of pay; where the assets of companies that have been built up through generations of workers’ labour and taxpayers’ subsidies are taken into public ownership – but with democratic control.

A future where real jobs and training are restored, with new environmentally-friendly manufacturing a part of the answer. A socialist future where democratic needs and wishes are paramount, instead of millions being tossed in the dustbin for the protection of profits.

Over the past few weeks, working people are as likely to have been wringing their hands in anxiety at job losses as listening to the ringing of jingle bells.

Daily news reports and pundits’ commentaries harshly confirm two central truths: capitalism doesn’t work, and the working class are being pounded with the devastating consequences, to make us pay for the crisis created by the capitalist elite.

For years we were told – by New Labour politicians in particular – that the days of boom and bust were over; that the government’s fiscal ingenuity, extended credit and the inherent glories of the market system would guarantee a rosy future.

Now economists are competing for who can come up with the gloomiest forecasts for 2009 and beyond.

Typical headlines and predictions are: 600,000 jobs to go in 2009 – 1,600 a day; 100,000 Scots to lose their jobs; Worst level of redundancies in 30 years; Employers hold back on redundancies until after Xmas…

The Scottish Council for Development and Industry has just predicted the first year of ‘negative economic growth’ in Scotland since 1980.

Closures

Recent weeks have seen closure of the iconic Woolies stores on every High St, with 27,000 workers thrown on the scrapheap after a century of trading.

Other household names in retail, the finance sector and the car industry have seen equivalent levels of job decimation and threats to workers’ futures.

The merger of HBoS with Lloyds threatens up to 40,000 finance workers’ jobs.

The retail sector is poised on the brink of a slaughter: Experian forecast 1,600 retailers will be driven out of business this year, leaving one in ten shops empty.

Yet that was precisely one of the areas that mopped up previous mass unemployment, replacing it with mass low pay for hundreds of thousands of retail workers struggling to survive on pay just pennies above the pathetic minimum wage. Now it’s back to mass unemployment.

In the car industry, workers suffer mass lay-offs, job cuts and enforced down time. Toyota, Honda and Nissan have shut down production for two months. Vauxhalls have ‘offered’ their 2,200 Ellesmere Port workers a 9-month ‘sabbatical’ – on 30 per cent pay!

Pay Cuts

The other favoured trick of employers being deployed is pay cuts. In JCB, for example, they told the workforce in November that unless they took a 10 per cent pay cut there would be further redundancies – on top of the 600 since August 2008. The GMB union lay down and accepted this demand, which cut pay by £50 a week through reduced hours… and then JCB bosses proceeded to impose another fresh bout of 400 redundancies, plus announcements of zero pay rise for 2009, and removal of the profit-related Xmas bonus (which was £1,000 in 2007). A classic proof that weakness invites aggression, as the bosses pile the crisis of their own creation onto the backs of workers.

Public Sector

The private sector may be first in line for the wave of closures and job losses, but the public sector faces the same future. Behind all the hype around the government’s November pre-Budget, they kept hidden their plans to cut public expenditure by £5billion a year from 2011. That spells a devastating assault on public sector jobs and the services they provide – and will be even more deep-cutting given that public spending on unemployment benefits is set to rocket meantime.

The trade unions and socialists face their biggest challenges for decades, in the face of the destruction of communities, workers’ lives and living standards through capitalist crisis. In fighting mass redundancies and closures, there are never any cast-iron guarantees of victory. But one thing is certain: weak-kneed acceptance of the bosses’ demands guarantees terrible defeats for workers and their families. Talk in some union circles about a Social Contract between unions, employers and the government is a cruel road to ruin, which has been travelled before, particularly in the 1970s.

Class divide

Instead of pretending that workers and their bosses have a common interest that should be turned into some kind of ‘Spirit of Dunkirk’, we need to expose the gulf dividing the interests of these two classes. For example, the top seven directors in Fords last year had salaries and pensions totalling £100million – whilst they refused to invest that same amount in their Southampton plant to build the new Transit van.

Low-paid workers would spend the extra money gained if the minimum wage was boosted to two-thirds male median earnings – that would be a minimum of between £8.50 and £9 an hour currently – whereas the same bosses who echo Gordon Brown’s talk of setting aside ‘prudence’ and spending our way out of the recession are also calling for a freeze on the derisory £5.80 minimum wage.

Pay cuts at JCB did nothing to stop further redundancies – but boosted the employers’ profit margins.

Instead of covering up the truth behind the recession, the mighty potential power of the organised working class in the unions should be mobilised around a massive campaign to halt mass redundancies. They need to fashion an armoury of fighting demands that could rally workers in united action for an alternative to job losses and pay cuts.

35 hour week – without loss of earnings

Instead of pay cuts through lay-offs, they should demand the work be shared out without loss of earnings.

The unions should resist the calls from Brown and Cameron to allow the UK continued opt-out from the European Working Time Directives, which is only a mild-mannered protection from being compelled to work more than an average 48-hour week (workers can still waive this right and work it ‘voluntarily’ under the opt-out clause). And instead put on a ‘drive for 35’ – a united union fight for a maximum 35 hour working week, which would create vast numbers of jobs … but critically demand this be without any pay cuts.

This would raise the whole issue: where have all the profits gone… and where have all the state subsidies gone? Companies have been bailed out with taxpayers’ money, development grants etc, but now want to protect their profit margins at workers’ expense (as NCR did in Dundee last year).

The unions should demand open, public scrutiny of the accounts of any company threatening job losses – to expose the fact many of them have enjoyed an orgy of profiteering for years, dividends to the big shareholders and obscene bonuses to the top bosses – whilst leaving thousands who created that wealth without a source of income.

Seize company assets

The unions should also demand that the government seize the assets of companies threatening closures, to stop corporate asset strippers, many of whom shift their production to slave-wage economies abroad. By taking over their assets the government could then employ the skills of workers to produce for social need.

Production for social need

Back in the 1970s many fighting union leaderships – particularly at shopfloor level – devised alternative schemes of useful production for their workplaces. In the 21st century this becomes even more vital as one of the fighting weapons against mass unemployment: the skills and machinery are often there, available for adaptation to socially useful and environmentally sustainable production.

For example, rather than rely on the bubble of crazy credit and artificially created consumer spending – both of which are now in freefall – the unions could advance a programme of useful public works and green production around public transport, social housing, universal insulation of homes, alternative sources of energy, etc.

Public ownership – not bailouts of profit

The government has bailed out the bankers. Demands are growing for government investment in the ailing car industry. But instead of subsidising the profits of the capitalist gangsters who have ruined people’s lives, the unions should campaign for public ownership of the machinery, buildings, production and distribution, under democratic control.

Such a socialist alternative, combined with militant forms of struggle, would encourage workers that there is something can be done in the face of the capitalist recession.

There is no one-size-fits-all method of struggle, but workplace occupations may arise again as a viable way of halting closures, provided union leaderships encourage a fight rather than whip up surrender. Otherwise the danger is that many will be overwhelmed, feeling that they are being devoured by a Juggernaut that cannot be halted as it closes down workplaces and smashes jobs.

The recession throws down the challenges: socialists in workplaces and unions need to encourage a vision of ways of halting the slaughter of livelihoods and shaping a socialist future in the process.

The SSP supports the free movement of Labour and vehemently opposes racist immigration controls introduced by New Labour. At the same time however we unequivocally support the demand that UK workers should enjoy equal consideration for work on these contracts. We reject efforts by organisations such as the BNP to divide workers up on the basis of race or nationality.

This is fundamentally a dispute to defend jobs, wages and working conditions and it requires the unity of all workers, of all nationalities, in rejecting multi national employers’ attempts to slash jobs, wages and conditions and trades union rights.

We urge UK unions to support those defending their right to work and to urgently meet with unions in Italy and Portugal to build a unified approach capable of halting employers efforts to divide and exploit workers across Europe.

In parliament and elections the SSP made a number of small demands, £50million for universal Free School Meals for example. We were voted against as the money wasn’t there.

After the £50billion bailout Darling has just given a blank cheque for more bailouts!

Where is all this money when people demand a pension where they don’t have to choose between heating and food? Where is the it all when the Unions demand a living minimum wage? Where is it when women demand a wage equal to men from their employers (several councils still haven’t implemented this policy made law 30 years ago)? Where is it when Post Offices like the ones in Lochee and Nethergate are closed?

The money has always been there, but successive Tory governments, both Conservative and New Labour have not had the inclination to spend it in tackling poverty.

We call shenanigans! Get involved in fighting for money to bail out your community, your school, your student debt. Get involved in the Scottish Socialist Party.

We all know that it is so easy for hard times to suddenly transform our lives for the worse in an amazingly short period of time.

It is so easy to go from well-being to poverty in the blink of an eye.

That is why I can justify you all giving so generously to the Fat Cats Protection League.

Download the parody advert here

Credit Crunch Blues

Christmas time is coming,
It’s just around the bend,
This year it will be different,
So listen well, my friend.
I’m wearing dirty trousers,
I’m wearing leaky shoes,
Ain’t had a wash in three days
Nor a shave in twenty-two.
The good times they are over,
It’s been in all the news.
I’m just another victim,
A victim of the credit crunch blues.

Once I was so well-off,
I wanted not a thing,
Had a great job in the city,
Silk shirts and loadsa bling.
Had a Porsche in the car park,
A four by four for fun,
King’s ransom for a mortgage,
Hey! Didn’t everyone?
Six-figure bonuses,
How could I refuse?
Never seen it coming,
Never seen the credit crunch blues.

The boss, he called me in this day,
Said, Son, please take a seat,
But don’t you get too comfy,
Then he turned up the heat.
Told me we’re downsizing,
Our office has to shrink.
The economy, surprising,
Was teetering on the brink.
Head office says one of us
Must go, I gotta choose.
Guess which one it was that went,
Which one is suffering the credit crunch blues.

Well, the good times they were over,
And so much had to go!
The holiday home in Tuscany
(That really was a blow).
The kids’ private education—
I couldn’t pay the bill.
My personal private healthcare plan
For if I should fall ill.
My whole world has exploded,
And greed, it lit the fuse.
Blown my world to kingdom come,
Blown up by the credit crunch blues.

I came home one evening,
On the table in the hall
A note addressed to me
Was sitting there, I recall.
Said, Honey, I am leaving you.
Was paralysed, like polio.
Her note told me she’d left me
For a bigger portfolio.
They say size, it doesn’t matter
But my wife had other views.
She left me for a bigger man,
She left me with the credit crunch blues.

By now my head was spinning,
I really couldn’t think,
Had a load of worthless shares,
No money, turned to drink.
I couldn’t pay the mortgage,
Was turfed out of my home.
The kids went to their mother,
The dog left with his bone.
From being such a winner
I had to learn how to lose,
No pity from ex-colleagues, friends,
No mercy from the credit crunch blues.

So here I am now livin’
In the shady part of town.
We all travel the same direction
That direction, it is down.
Here, people see no future,
It’s drink and drugs and fights.
There ain’t too much respect around
For anyone’s human rights.
They fire-bomb police cars,
Stone fire-fightin’ crews.
It’s a whole new style of living
But I’m living with the credit crunch blues.

Christmas time was comin’,
I didn’t have no dough.
I got a job as Santa Claus
But the store said I had to go.
Gave this kid a present, said,
Some day they’ll want that back.
The kid burst into tears
And this Santa got the sack.
Was only tryin’ to tell him
Nothing’s free and bills come due.
He’ll learn that for himself some day,
Me? I learned it from the credit crunch blues.

My power has been cut off,
I’m in the dark and cold,
Just sittin’ here and thinkin’
‘Bout the shit that I was told.
They told me life, it was a race,
Where you watch for number one.
And the devil takes the hindmost
Right from that starting gun.
Don’t get left there standin’,
All alone and all confused.
But that’s exactly where I am now,
Brought on by the credit crunch blues.

My thoughts they turn bitterly
To the people I once knew.
How they controlled the many
Although they were so few.
Now the house of cards they built
Has come crashing down so fast.
No house without foundations
Can ever hope to last.
But till the many take the power
(And this is now my view),
We’re doomed to keep repeating,
Repeating those credit crunch blues.

2000
Brown gives 75p rise to pensions at the time claiming we couldn’t afford more.

2001
MPs award themselves £2000 pay rise months later.

2003
War given blank cheque as Brown pledges as much money as it takes for the slaughter in Iraq.

Chancellor Gordon Brown says the UK will spend what it takes to tackle Iraq’s weapons of mass destruction.

Money well spent then seeing as they didn’t exist. In 2001 the Ministry of Defence put the costs so far at £3.1 billion.

Estimated cost of Free School Meals rejected by Holyrood: £100million per year.

2008

Labour agitate for £20billion to pay for replacement for the Nuclear weapons at Faslane.
The poorest have their Income Tax bill increased to pay for a cut for the middle class.

2008 October 4

Labour councils claim there’s no money for free school meals

2008 October 8

Brown gives £500billion to bail out banks.

At every step money is found to pay for weapons and wars and pay rises for MPs. Low paid council workers are told there’s no money to even give them a pay freeze at inflation, never mind a rise, there’s no money for school meals for children but £16,000 from every person in the UK is found to bail out banks.

This after years of being told the bankers bonuses were justified because of the risks they take with their capital. Of being told privatisation is the only game in town and nationalisation is some bizarre old idea.

Recent events show these words to be as hollow as we have being saying they are for a decade. Money is there. Those in power lack the political will to help the poorest in society.

Millions of people stand to lose their jobs, homes and their livelihood because of the economic crisis. If you’re worried, come and take your chance to put your questions about the economy to a leading socialist economist.

Speakers: Raphie de Santos, formerly head of equity derivatives research and strategy at Goldman Sachs, advisor to Bank of England and Italian Ministry of Finance
Frances Curran, co-convenor Scottish Socialist Party
Jack Ferguson, Scottish Socialist Youth

Thursday 9th October, 7:15pm.

Renfield St Stephens Church, 260 Bath Street, Glasgow

This economic crisis, in which millions will suffer, is a direct result of the economic policies of Labour, but pioneered before them by Margaret Thatcher’s Tory Party.

We were told that industries like shipbuilding and steel were old fashioned, obsolete.

Replacing them would be new industries; the bankers would build call centres and everyone would own shares.

The Tories and Labour deregulated the financial markets and allowed them to build mountains of debt into a casino economy while they paid themselves multi million pound bonuses.

But they bet everything on black and now it’s come up red… and they want the tax payers to bail them out!

We are urged to hand over billions of tax payers money, without any analysis of whether this will work, or how exactly it will help ordinary people.

Politicians are not being asked about specific help for ordinary people, like guaranteeing the value of pensions or re-scheduling mortgages so people can stay in their homes.

Public meeting

For 30 years socialists have struggled to resist public assets being plundered.

We said bankers are playing roulette with workers’ pension funds, insurance funds and privatisation.

We’re fed news stories where we’re urged to view protection of the rich as in our own interest. Just like when they claimed Iraq had Weapons of Mass Destruction.The media have failed us. This time we won’t be fooled again.

Real economic solutions the government should use now:

• Take HBOS and other banks into common ownership with no redundancies. Use them to create a social bank providing social loans and mortgages.
• Provide affordable social housing for rent. The £110 billion that was spent on Northern Rock would pay for 2 million homes!
• Freeze food and heating prices.

Raphie De Santos

Raphie De Santos of the Scottish Socialist Party has written a series of articles about the current economic crisis. He has also written a pamphlet which is now going for it’s second printing. If you would like a copy, then contact us, the last run were £2.50 each so it should be around that amount. We will have copies on our stalls very soon.

Raphie was head of Equity Derivatives Research and Strategy at Goldman Sachs International. He was an advisor on derivatives and financial markets to the Bank of England, London Stock Exchange, London International Financial Futures and Options Exchange and the Italian Ministry of Finance.

Raphie has been a guest lecturer on derivatives and financial markets at Harvard and New York universities and the London School of Economics and has spoken at the annual Nobel Foundation conference in Stockholm.

Articles on the Economic Crisis