Five of the SSPs Candidates in the European Elections discuss the alternative to the boom and bust of New Labour, Tories and the SNP.

A wee reminder about meetings.

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 de Santos is number 5 on the SSP list for the European elections on June 4th 2009.

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

Scottish Socialist Party Open Meeting

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.

Despite marking its tenth anniversary tomorrow, the National Minimum Wage Act continues to discriminate against young workers.

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.

At the G20 protests in London Mark Thomas gave a rousing speech denouncing Labour and the politics they represent.

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

For the past few years the SSP has run a campaign called People not Profit. The meaning of this is shown clearly at NCR.

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.

No doubt you have heard the constant press stories about the latest bust cycle in capitalism.

East Dumbartonshire SSP hosted a discussion on the crisis.

The lengthy video of the discussion is below.

By Richie Venton, SSP national workplace organiser

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.

by Richie Venton, SSP national workplace organiser

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.