Tag: TUC

TUC: Only good, well-paid work is a route out of poverty

Work should be a route out of poverty. But, especially under this government, it isn’t (writes TUC’s ALEX COLLINSON).

This week, news came out that the Prime Minister hopes to “blunt calls for urgent action on the cost of living crisis by stressing that work is the best route out of poverty”. 

It’s a popular line with this government. And it should be true – but sadly, it isn’t. 

The majority of people in poverty (57 per cent, or 8.3 million people) live in a working household. That rises to 75 per cent of children in poverty. 

The government’s record on this is atrocious. The number of people in in-work poverty has increased by 2 million since they came to power in 2010. It’s now at a record high, as is the number of children in poverty living in a house where at least one adult is in work. 

If work is to be the best route out of poverty, the government must do more to get pay rising. In the meantime, it can’t use “work is the best route out of poverty” as a cop out for not properly addressing the cost of living crisis. We need proper action. Structural solutions – such as improved trade union rights, nationalisation of energy companies, and improvements to the benefits system – are needed alongside a windfall tax to fund urgent support to pay energy bills.  

17-year pay squeeze 

A key reason for the rise of in-work poverty is that work simply doesn’t pay enough. The government’s minimum wage, even the one it calls a living wage, isn’t a real living wage.  

And we’re in the midst of a 17-year pay squeeze. Real pay is currently lower than it was in 2008, and the Office for Budget Responsibility forecasts that it won’t return to above 2008 levels until 2025. This 17-year pay squeeze is, by far, the longest in living memory. 

Chart 1

The impact of this on workers’ pay packets has been massive. If real weekly wages had continued growing at the pre-2008 rate, they’d now be £111 per week higher than they are. By 2026, if forecasts are correct, this’ll be £164. 

Impact of energy costs 

It’s against this background that real pay is falling again. Inflation, at 9 per cent, is hitting wages hard. In March 2022, average weekly earnings fell by £16 per week (-2.7 per cent) compared to the same month a year ago. Public sector pay growth is the worst on record – falling by £30 per week (4.9 per cent) over the same period. 

Chart 2

The news that the energy cap will rise by around £800 in October is incredibly worrying. If this does happen, it means that between December 2021 and December 2022, energy bills will have risen by a massive 119 per cent. In contrast, nominal wages will have risen by just 5.2 per cent. The standard benefits payment will have risen by just 3.1 per cent. This means that energy bills are set to grow 23 times faster than wages and 38 times faster than benefits this year. 

3

Insecure work 

On top of this, work is too often insecure. 3.6 million people are in insecure work, whether that’s zero-hours contracts, agency work, casual work, or low-paid self employment. The government has repeatedly broken its promise to introduce an employment bill that would tackle insecure work.  

The benefits system 

Pushing work as the route out of poverty is also often the government’s way of refusing to improve the welfare system. decent work and social security must go hand in hand, not be seen as alternatives. 

Since it came to power, the government has repeatedly cut benefits payments in real terms. The real value of the standard benefits payment has fallen by £51 per month since 2010.  

As set out above, in the face of massive rises in energy bills, the government has made real term cuts to benefits payments. When the price cap rises again in October, energy bills will be £1,523 per year higher than they were a year before. The standard benefits payment will only be £121 per year higher. 

A common proposal around benefits is to bring forward the increase in benefits and pensions that would be expected in April 2023/24 to autumn of this year. For example, if inflation hit 10 per cent in September of this year (September is the reference month for benefit uprating), rather than waiting to increase benefits in April, they could be increased in October, and then maintained at that level from April onwards.  

But this would increase benefits by around £7.70 a week, meaning it wouldn’t even go close to making up for cutting the £20 uplift. 

Chart 4

Like the standard benefits payments, pensions also went up by just 3.1 per cent in April this year. Government made an active decision not to maintain the triple-lock – which would have seen pensions rise by around 8 per cent in line with the wage figures last autumn. This will cost pensioners almost £500 across the year.  

Good, well-paid work is a route out of poverty 

The current government has a proclivity towards badly funded temporary schemes and half-baked novelty ideas, which has again become clear during the current crisis. If it’s serious about tackling the cost of living crisis, we needed proper solutions to support people right now, alongside structural changes to fix these problems in the long term.  

It’s not enough to just say that work is a route out of poverty. The reality is that too much work is low-paid and insecure. If government wants work to be a route out of poverty, it needs to ensure all work is well-paid and secure. 

When it comes to pay, government should stop attacking trade unions, and instead improve trade union rights. Trade unions need stronger powers and better access to workplaces to drive up wages and conditions.

Fair pay deals need to be implemented in whole industries, negotiated with unions, and designed to get pay and productivity rising in every sector. We also need an emergency boost to the national minimum wage, as well as the long-awaited introduction of that employment bill they’ve been promising for ages to tackle insecure work. 

To help people with energy costs, the government must recognise that energy is an essential public good that should come under public ownership, and implement an accelerated programme to insulate homes. To help people right now, we need a windfall tax to pay for additional grants to help with the costs of energy. With the energy cap rising by £1,523 in the space of just a year, this support will need to be substantial. 

Government must also fix the benefits system. We want much more generous benefits payment (with the standard payment raised to £260 per week), alongside the scrapping of the cruel aspects of the system, such as the five-week wait, the benefits cap, the two-child limit and no recourse to public funds.  

Work isn’t currently a route out of poverty, but it can be if government takes steps to ensure that all work is good, well-paid work.   

Most vulnerable households will get over £1000 of help with cost of living

MORE SUPPORT NEEDED, SAYS SCOTTISH FINANCE SECRETARY

  • The most vulnerable households across Scotland will receive support of over £1,000 this year, including a new one-off £650 cost of living payment
  • Universal support increases to £400 across Great Britain, as the October discount on energy bills is doubled and the requirement to repay it over 5 years scrapped
  • This new £15 billion support package is targeted towards millions of low-income households and brings the total cost of living support to £37 billion.
  • New temporary Energy Profits Levy on oil and gas firms will raise around £5 billion over the next year to help with cost of living, with a new investment allowance to encourage firms to invest in oil and gas extraction in the UK.

Millions of households across the UK will benefit from a new £15 billion package of targeted UK government support to help with the rising cost of living, the Chancellor announced yesterday.

The significant intervention includes a new, one-off £650 payment to more than 8 million low-income households on Universal Credit, Tax Credits and legacy benefits to be made in two tranches starting in the summer, with separate one-off payments of £300 to pensioner households and £150 to individuals receiving disability benefits – groups who are most vulnerable to rising prices.

Rishi Sunak also announced that the energy bills discount due to come in from October is being doubled from £200 to £400, while the requirement to pay it back will be scrapped. This means the vast majority of households will receive a £400 discount on their energy bills from October.

The new Cost of Living Support package will mean that the most vulnerable households in Scotland will receive over £1,000 of extra support this year.

To ensure there is support for everyone who needs it, Mr Sunak also announced a £500 million increase for the Household Support Fund. This brings the total Household Support Fund to £1.5 billion.

To help pay for the extra support – which takes the total direct government cost of living support to £37 billion – Mr Sunak said a new temporary 25% Energy Profits Levy would be introduced for oil and gas companies, reflecting their extraordinary profits. At the same time, in order to increase the incentive to invest the new levy will include a generous new 80% investment allowance. This balanced approach allows the government to deliver support to families, while encouraging investment and growth.

The Chancellor of the Exchequer Rishi Sunak said: ““I know that people in Scotland are anxious about keeping up with rising energy bills, which is why today we have introduced measures which will take the support for millions of the lowest income households over £1,000.

“As a nation we have a responsibility to help the most vulnerable, which is why this support is mostly targeted at people on low incomes, pensioners and disabled people. But we understand that all households in Scotland will be concerned about the rise in energy costs this Autumn, so every household is set to get £400 off their energy bills from October, with no repayments necessary.

“It is right that companies making extraordinary windfall profits from rising energy prices should contribute, and I’m introducing a temporary energy profits levy to help pay for this support, while still encouraging the investment that generates jobs in Scotland.”

Scottish Secretary Alister Jack said: “Global issues are causing real pressures in the cost of living for UK families. We understand how tough it is at the moment for many households, which is why the Chancellor has today announced a further £15 billion support package.

“A total of £400 per household towards fuel bills will help protect families from rising energy costs. Cash payments of £650 for low-income households on means tested benefits will target support at the most vulnerable in our society at this difficult time. This comes on top of our existing £22bn support package.

“Some of these measures will be paid for by a temporary levy on oil and gas companies – one which incentivises investment in the UK’s energy security.”

There is now more certainty that households will need further support, with inflation having risen faster than forecast and Ofgem expecting a further rise in the energy price cap in October.

So as part of the UK government’s targeted support, the Chancellor announced that around eight million of the lowest income households on Universal Credit, Tax Credits, and legacy benefits will receive an automatic £650 cost of living payment in two instalments via the welfare system this year.

Yesterday’s announcement is on top of the government’s existing £22 billion cost of living support which includes February’s energy bills intervention and action taken at this year’s Spring Statement including a £330 tax cut for millions of workers through the NICs threshold increase in July and 5p cut to fuel duty.

Energy Profits Levy

Surging commodity prices, driven in part by Russia’s war on Ukraine, has meant that the oil and gas sector have been making extraordinary profits. Ministers have been clear that they want to see the sector reinvest these profits in oil and gas extraction in the UK.

In order both to fairly tax the extraordinary profits and encourage investment, the Chancellor announced a temporary new Energy Profits Levy with a generous investment allowance built in. This nearly doubles the tax relief available and means the more investment a firm makes, the less tax it will pay.

The new Levy will be charged on oil and gas company profits at a rate of 25% and is expected to raise around £5 billion in its first 12 months, which will go towards easing the burden on families. It will be temporary, and if oil and gas prices return to historically more normal levels, will be phased out.

The new Investment Allowance, similar in style to the super-deduction, incentivises companies to invest through saving them 91p for every £1 they invest. This nearly doubles the tax relief available and means the more a company invests, the less tax they will pay.

The government expects the combination of the Levy and the new investment allowance to lead to an overall increase in investment, and the OBR will take account of this policy in their next forecast.

The Levy does not apply to the electricity generation sector – where extraordinary profits are also being made due to the impact that rising gas prices have on the price paid for electricity in the UK market, which has also been making extraordinary profits partly due to record gas prices but also due to how the market works.

As set out in the Energy Security Strategy the government is consulting with the power generation sector and investors to drive forward energy market reforms and ensure that the price paid for electricity is more reflective of the costs of production.

The Chancellor announced yesterday that the Treasury will urgently evaluate the scale of these extraordinary profits and the appropriate steps to take.

During the announcement, the Chancellor also set out the government’s strategy to control inflation through independent monetary policy, fiscal responsibility, and supply side activism – a plan he said that should see inflation come down and returning to its target over time.

Finance Secretary Kate Forbes has welcomed the short term action announced by the Chancellor of the Exchequer, but warned more support is needed for households and businesses as the cost of living crisis worsens.

Following calls from the Scottish Government, the UK Government has taken steps to ensure that cash grants, rather than loans, are provided to those on lowest incomes. Ms Forbes has also cautiously welcomed the decision to introduce a Windfall Tax on energy companies benefiting from significant profits but commented that it means Scottish industry is disproportionately funding interventions across the UK.    

Responding to the Chancellor’s statement, Ms Forbes has said UK Ministers should have acted earlier and gone further to provide more support that would make a real long term impact, including following the Scottish Government’s lead by doubling the Scottish Child Payment to £20 per week – which is due to increase to £25 from late 2022 helping lift an estimated 50,000 children out of poverty in 2023-24.

Ms Forbes said: “Many households will be relieved to see the support belatedly announced today, but we still need a long term solution to the cost of living crisis and reassurance that the UK Government is going to tackle long term inequalities rather than provide one-off bursts of crisis support.

“Rather than listen to our plea for a comprehensive funding package that fully addresses the unprecedented rise in the cost of living and uses the full £30 billion of fiscal headroom, this piecemeal approach makes it highly likely that more support will be needed later when energy prices rise significantly in the autumn.

“There is also a severe lack of support for businesses – many of them are still struggling to recover from the pandemic and now face crippling increases in energy costs and the damaging impacts of Brexit on supply chains and the labour market. Without urgent economic support there is a real risk that the UK economy is heading for a recession.

“Inflation is at its highest levels in 40 years and the UK Government’s failure to fully invest in increasing incomes, tackling inequality and boosting economic competitiveness will only risk pushing households into further debt and poverty

“The UK Government has almost £30 billion of fiscal headroom, spending only half of this during a cost of living crisis does not go far enough, especially when a further £5 billion from the Windfall Tax will be raised.

“The introduction of a windfall tax is a start, but as a stand-alone measure this means Scottish industry is carrying the weight of UK-wide interventions.  

“The removal of the £20 Universal Credit uplift last year was a hammer blow to hard pressed families and the Chancellor’s failure to restore it and increase it to £25 only places a disproportionate burden on the shoulders of those who need help most. The statement was also worryingly silent on public-sector pay with no related consequential funding, when the lowest paid need urgent assurance in the face of rising inflation.

“The refusal to reverse the National Insurance increase implemented in April and temporarily suspend VAT on household energy bills will also cost families hundreds of pounds annually at a time when their budgets have never been more squeezed.

“The Scottish Government has already taken action to support people, communities and businesses as much as possible, with almost £770 million per year invested in cost of living support. We have increased eight Scottish benefits by 6%, closer to the rate of inflation, and introduced a range of family benefits not available elsewhere in the UK.”

Commenting on the government’s cost of living support package announced today (Thursday), TUC General Secretary Frances O’Grady said: “Unions have repeatedly called for an Emergency Budget to help families, and a windfall tax on energy companies.  

“The Chancellor should have acted far sooner after his inadequate Spring Statement. His dither and delay has caused unnecessary hardship and worry for millions.  

“While today’s intervention is badly needed, we should have never been here in the first place. 

“Years of attacks on wages and universal credit have left many households on the brink.  

“The government still doesn’t have a plan for giving families long-term financial security. 

“With energy bills rising 23 times faster than wages we urgently need to get pay packets rising and to pay universal credit at a permanently higher rate – not just a one-off boost. 

“That’s the best way to protect livelihoods and to support the economy.” 

Cost of living crisis – it’s time to take action, says teachers’ union

Rocketing fuel and energy bills, forecasts of double-digit inflation, and rising interest rates mean misery for many families. And unless there is urgent action from Government, the situation is only going to get worse (writes NASUWT’s Dr. PATRICK ROACH).

Teachers and schools leaders do not need to be reminded of the stark effects of this crisis on their pupils and in their own lives. 

They see it every day in their schools and in their classrooms. 

Children whose parents find themselves in insecure jobs and are struggling to make ends meet. Many relying on food banks and struggling to pay their bills. Hungry pupils can’t concentrate on their learning and the knock-on effects on behaviour are making a challenging job even more stressful. 

Schools are struggling as they find themselves taking on more to try and support children, work which was often supported by local authorities but is no longer provided due to austerity. 

Teaching has become even more challenging because of deep cuts to school budgets, the loss of vital support for children and families and a crisis of teacher and headteacher recruitment and retention. 

Despite ministers’ promises to protect education, in the last decade education spending has fallen by 10%. And the salaries of teachers has fallen too – across the board, teachers’ pay has been slashed by at least 19% since 2010. 

Many teachers are relying on credit cards, overdrafts and some are even using the same foodbanks their pupils’ families rely on as well. Around one in ten teachers work second jobs and many more are worried about their financial situation. 

And in addition to the cost of living crisis, there is a wellbeing crisis caused by extreme workload pressures. 

However, at the Department for Education, ministers are presiding over a system where teachers and headteachers are at breaking point. Unless action is taken now, a desperate situation is set to become even worse. 

Already, one in three student teachers choose not to enter the profession after they’ve qualified because of the stress of the job and 40% of new teachers leave within five years. 

The latest data from our own ‘Big Question’ survey found that two-thirds of teachers are seriously considering quitting the profession – citing workload, wellbeing and pay as key reasons. 

More headteachers are leaving and fewer and fewer teachers are wanting to take their place. 

Perhaps not surprisingly, nine in ten teachers we surveyed report that their job has adversely impacted their mental health in the last year and a disturbing 3% have self-harmed and are experiencing a severe mental health crisis because of the job. 

And on top of that we have the growing problem of Long Covid which is a ticking time-bomb in our schools. 

That’s why the NASUWT is calling for A Better Deal For Teachers on workload, wellbeing and pay. 

As part of our campaign, we’re calling on the Government to recognise that a world-class education system needs highly motivated teachers working in world-class schools and colleges. 

To that end, we want to see: 

  • a substantial real-terms pay rise for every teacher,  
  • an enforceable contractual working time limit for teachers,  
  • the right to switch off and disconnect from work at the end of the day and at weekends,  
  • the ending of fire and rehire practices, 
  • banning zero-hours contracts,  
  • equal rights for supply teachers  
  • scrapping the link between performance and teachers’ pay,  
  • and safer workplaces underpinned by safe and respectful working practices. 

We will be highlighting these demands at the national demonstration that takes place in London on 18th June, where teachers and workers from across the public and private sectors will be demanding action on the cost of living crisis, a decent pay rise for workers and a better deal for all working people. 

It’s time for the Government to understand that the situation needs to change. Teachers are demanding change and so are parents and the general public.  

Spread the word: be there on June 18th – join us, join in, and help win a better deal for teachers. 

More information about the national demonstration can be found here. 

Queen’s Speech: Broken promise on employment bill will see “bad bosses celebrating”

The TUC yesterday accused the government of “turning its back” on working people after ministers failed to include an employment bill in the Queen’s Speech.

  • Vital rights ministers had promised like default flexible working, fair tips and pregnancy discrimination protections risk being ditched “for good” 
  • New seafarer minimum wage plans are “unworkable” and won’t prevent a repeat of P&O, warns union body 

The TUC has accused the government of “turning its back” on working people after ministers failed to include an employment bill in the Queen’s Speech. 

The union body said that the government’s broken promise to boost workers’ rights will see “bad bosses celebrating”. 

In 2019, the government announced it would bring forward a new employment bill to improve people’s rights at work, but despite committing to the bill on at least 20 occasions, ministers have shelved the legislation.  

Commenting on the decision to exclude an employment bill from yesterday’s Queen’s Speech, TUC General Secretary Frances O’Grady said: “The prime minister promised to make Britain the best place in the world to work. But he has turned his back on working people. 

“Today, bad bosses up and down the country will be celebrating. 

“No employment bill means vital rights that ministers had promised – like default flexible working, fair tips and protection from pregnancy discrimination – risk being ditched for good. 

“And it means no action on the scourge of insecure work and ending exploitative practices like zero-hours contracts and fire and rehire. 

“After the P&O scandal, dragging our outdated labour laws into the 21st century has never been more urgent. 

“But by shelving the employment bill, ministers have sent a signal that they are happy for rogue employers to ride roughshod over workers’ rights. 

“Enough is enough. This is a government that just doesn’t get it – from the cost of living emergency to the insecure work epidemic.  

“People can’t wait for greater rights and security at work – they need it now.” 

On the seafarer minimum wage enforcement plans, O’Grady added: “This proposal is feeble and likely unworkable. The government has done nothing to tackle the most flagrant labour abuse in years by  P&O.  

“Only stronger employment legislation that boosts worker protections and stops companies firing on the spot will prevent another P&O-type scandal.” 

The TUC says that the following policies were all promised within an employment bill, and are now risk being ditched altogether: 

  • Ensure that tips go to workers in full. 
  • Introduce a new right for all workers to request a more predictable contract. 
  • Create a new single enforcement body offering greater protections for workers. 
  • Extend redundancy protections to prevent pregnancy and maternity discrimination. 
  • Make flexible working the default unless employers have good reason not to. 
  • Allow parents to take extended paid leave for neonatal care. 
  • Introduce a new legal entitlement to one week’s leave for unpaid carers. 

In addition, the government consulted on reasonable notice period for shifts allocated and cancelled, and payments for cancelled shifts, which the TUC points out the government has “since gone quiet on.” 

The union body also highlights that the government promise to make employers responsible for preventing sexual harassment risks falling by the wayside without the employment bill, as the policy needs primary legislation to carry it forward.

In the notes to the 2019 Queen’s Speech, the government said it would bring forward the employment bill to:  

  • Protect and enhance workers’ rights as the UK leaves the EU, making Britain the best place in the world to work.  
  • Promote fairness in the workplace, striking the right balance between the flexibility that the economy needs and the security that workers deserve.  
  • Strengthen workers’ ability to get redress for poor treatment by creating a new, single enforcement body.  
  • Offer greater protections for workers by prioritising fairness in the workplace, and introducing better support for working families.  
  • Build on existing employment law with measures that protect those in low-paid work and the gig economy. 

In the 2019 Conservative manifesto, the following promises were made on employment rights:  

  • We will create a single enforcement body and crack down on any employer abusing employment law, whether by taking workers’ tips or refusing them sick pay.  
  • We will ensure that workers have the right to request a more predictable contract and other reasonable protections. 
  • We will encourage flexible working and consult on making it the default unless employers have good reasons not to.  
  • We have reformed redundancy law so companies cannot discriminate against women immediately after returning from maternity leave.  
  • We will legislate to allow parents to take extended leave for neonatal care, to support those new mothers and fathers who need it during the most vulnerable and stressful days of their lives.  
  • We will look at ways to make it easier for fathers to take paternity leave.  
  • We will extend the entitlement to leave for unpaid carers, the majority of whom are women, to a week. 

The UK has one of the best workers’ rights records in the world, says UK Government

The UK has one of the best workers’ rights records in the world. As a result of government action, there are now more employees on the payroll than ever before, as we continue to support workers and build a high skilled, high productivity, high wage economy.

The government has protected and enhanced workers’ rights by:

  1. Making sure 2.5 million people received a pay rise in April by raising the minimum and living wage. The largest ever cash increase to the National Living Wage will put over £1000 a year into a full-time workers’ pay packet, helping to ease cost of living pressures. We’re helping younger people too, by lifting the minimum wages for under-23s and apprentices.
  2. Leading the world with one of the highest minimum wages in the world – more generous than those in similar economies such as France, Germany and Japan.
  3. Holding UK businesses to account, ensuring employees are getting what they are owed. In December we named and shamed 208 employers who had failed to pay the minimum wage – taking the total number of employers named since 2014 to around 2,500. We made sure these companies paid back their employees and paid the price with hefty fines for law breakers. We have also quadrupled the maximum fine for employers who treat their workers badly.
  4. Giving the lowest paid in society more control over when and where they work. The government just this week announced it will extend the ban on using exclusivity clauses to contracts where a worker’s guaranteed weekly income is below the Lower Earnings Limit, which is currently £123 a week. This ensures an estimated 1.5 million people have the option to pick up extra work if they want to, further increasing flexibility.
  5. Tackling appalling business practices, such as P&O Ferries firing their employees without consultation. Reporting them to the insolvency service and taking an active role in ensuring they treat their workers fairly, we also recently committed to producing a statutory code on fire and rehire practices to strengthen the rights of all employees. This will clamp down on controversial tactics used by employers who fail to engage in meaningful consultations with employees before making changes to their contracts.
  6. Closing a loophole which sees agency workers employed on cheaper rates than permanent workers.
  7. Recognising the importance of flexible working arrangements by announcing a wide-ranging package of measures to help give employees more flexible working options in the future, including seeking views on making flexible working the default unless employers have good reason not to.
  8. Offering generous leave entitlements, continuing with our aim to make the UK the best place in the world to live and work. Workers get over 5 weeks of annual leave and a year of maternity leave, while the EU minimum for maternity leave is just 14 weeks.
  9. As part of this, we also brought into force a world first, giving parents a new legal right to 2 week’s paid bereavement leave for those who suffer the devastating loss of a child, irrespective of how long they have worked for their employer.
  10. Giving all workers the right to receive a statement of their rights from day one.
  11. Supporting workers throughout the pandemic, taking steps to protect the earnings of workers through furlough, including a new law to make sure furloughed employees who were made redundant received full redundancy payments.
  12. And of course, all this action to support workers’ rights has come alongside the government’s unprecedented £9bn package to support families with the cost of living, including a £150 council tax rebate, and a £200 energy bill discount to cut energy bills for the vast majority of households.

Scottish Secretary responds to Queen’s Speech

Scottish Secretary Alister Jack said: “This is a Queen’s Speech which delivers for Scotland and the whole of the UK.

“Measures in the Queen’s Speech will help us grow our economy, so we can continue to recover from the pandemic, tackle the rising cost of living and level up across the country.

“We will bring in a range of measures to make our country safer, from tackling state-sponsored espionage, to cracking down on modern slavery.

“We will show leadership with a series of ambitious reforms which will support citizens across the United Kingdom.

“We will continue to maximise the benefits of Brexit with legislation to cement our fantastic trade deals with Australia and New Zealand, and remove outdated EU laws. Outside of the EU, the UK will continue to prosper and thrive.”

TUC: A May Day to Remember

May Day is unique. It’s the day in the year when we celebrate the bonds that bring us together as workers and trade unionists. And the fundamental message of May Day – friendship between workers of all backgrounds and nationalities – resonates more strongly than ever before (writes TUC General Secretary FRANCES O’GRADY).

This year, I’m proud to be speaking at the Chesterfield May Day rally, organised by the brilliant local trades council. And I’ll be arguing that even amidst these tough times, by sticking together and organising together, working people can win together.

There’s never been more need for that unity and solidarity. The brutal war in Ukraine casts a terrible shadow. Tech change is transforming our economy and the jobs we do. And the climate emergency demands we get our act together on a just transition to net zero, with good, green, unionised jobs.

In Britain and right around the world, workers also face an intensifying cost-of-living crisis. Energy bills are now rising 14 times faster than wages. One in three parents with pre-schoolers spend over a third of their pay on childcare. And last week, the ONS found that a quarter of people are already struggling to make ends meet – and worse is on the horizon.

That’s why the TUC is demanding an Emergency Budget to boost workers’ incomes. From a real living wage and fair pay agreements to a decent rise for public sector workers, there’s plenty we can do. And action on the cost-of-living must include a windfall tax on the excess profits of the energy giants, alongside the equalisation of capital gains and income tax. It’s time to raise tax on wealth, not workers.

As workers struggle, the government is all over the place. Despite promising to upgrade our rights, ministers look set to delay the Employment Bill yet again.

For some reason, the Chancellor seems more concerned about defending legalised tax avoidance, such as non dom status, than real wages, benefits and living standards. And, as Partygate rumbles on, the PM is focused on saving on his own skin: the next “work-related” event he attends could be his own leaving do.

The recent scandal at P&O underlines why we need change. The no-notice sacking of 800 skilled seafarers, and their replacement with cheap agency labour, is gangster capitalism at its worst. I’ve been proud to speak at P&O rallies and take to the airwaves to demand the reinstatement of those workers – alongside tough action against P&O and parent firm DP World.

The TUC will always support workers taking action against injustice. Across the economy, from our railways to our universities, we’re seeing an upsurge in strikes as workers say: enough is enough. With our membership growing for each of the past four years, we are a movement on the front foot.

And on Saturday 18 June, trade unionists will be gathering in London for our national demonstration: We Demand Better. We’ll be demanding action on the cost of living, a decent pay rise for all, and a New Deal for working people. So spread the word among your friends, colleagues and members – book those coaches and trains – and let’s make this a real show of strength and unity.

Have a wonderful May Day – and solidarity to all.

Today (Sunday) is International Workers’ Day, an annual celebration of working people.

After two hard years, when many workers faced extraordinary challenges due to the pandemic, they now find themselves in the midst of a cost of living crisis.

The TUC is using today’s celebration to highlight the vital role unions play in helping their members gain fair pay rises through collective bargaining.

Unionised workers are paid on average five per cent more than other similar workers. This is equivalent to £1,285 a year based on the average wage.

TUC Deputy General Secretary Paul Nowak, who will speak at today’s May Day rally in Trafalgar Square,said: “International workers day should be a time to celebrate. And working people can be proud of how they have brought the nation through the pandemic.

“But they are now in another crisis. The cost of living is racing ahead of their pay. And our Conservative government is doing nothing to help them.

“Working people need the power of government on their side. We need an emergency budget to give direct support with surging bills. And ministers should give working people and their unions stronger powers to negotiate fair pay deals.

“Join us at our national march and rally on 18 June to demand better for working people. Better pay, better rights and a better voice at work through unions. Only stronger unions can deliver a new deal for working people. Whether it’s winning in the workplace, or influencing government, it’s unions that make the difference

“If you’re not in a unionised workplace get together with your workmates and join a union. If there are enough of you, your employer is legally required to sit down and negotiate a fair pay rise with you. But if you’re not in a union, you have little bargaining power. And you lose out – big time.”

Join the march and rally in London, 18 June

Other countries are helping families with energy costs: why can’t we?

Governments across the world are raising wages, cutting tax and announcing hefty financial aid packages for people and workplaces affected by the energy crisis (writes TUC’s NINA REECE):

Last month, the Chancellor Rishi Sunak announced a package of support that he claimed would help UK workers and businesses survive crippling energy costs. But it failed to boost pay, raise benefits or help low-income households.

War in Ukraine is exposing the cracks in a global energy system that privileges profit over people and the climate and is too reliant on international trade in fossil fuels. The result is a massive increase in energy costs that is hurling people into poverty while energy companies announce another year of eye-watering profit.

But the Conservative government’s decision not to help the people or sectors most affected by the energy crisis is the exception, not the rule. Here is how other governments across Europe are providing support.

Germany

In Germany, €16billion (£13.4billion) has been made available to ease the burden of rising costs. The support package includes a €9 pass for commuters, giving them a month’s unlimited use of public transport. Making public transport more accessible in the UK is key to reaching our emissions targets. 

There is a one-off €300 tax cut for individuals, extra discounts for low-income families and fuel taxes will be cut for three months, with the price per litre cut by €0.30 for petrol and €0.14 for diesel. 

Importantly, this package includes a commitment to reducing German reliance on gas, oil and fossil fuels long term. 

Germany is also set to raise the national minimum wage by 15 per cent, benefitting nearly 6.2 million low-paid workers – two thirds of them women – giving Germany the second-highest minimum wage in Europe. The rise, agreed as part of the coalition deal, will also cover self-employed and flexible workers.

Nordic countries

A six million Swedish kronor (£473m) pot was set aside by the Swedish government to soften the impact of soaring bills. This may not sound like a lot, but with population that is fraction of that of the UK – it is significant. The government has also issued winter bill subsidies of up to 6000 kronor (£488) for 1.8m households from winter into 2022.

The Norwegian government’s package of measures to help households totals more than eight billion kronor (£664m). In January, Norway even committed to covering 80 per cent of electricity costs for a short period whenever the rate for electricity is above 70 Norwegian øre (6p) per kilowatt-hour.

France

President Macron is targeting energy companies.

EDF, the state energy provider, will charge electricity at below market rate and will take an €8.4bn financial hit. It has also been ordered to sell nuclear power to rivals at below current market rate as its reactors generate 70% of the country’s electricity.

This month, the CEO of Total Energie has also announced a freeze on dividends. In the UK, despite massive profits, no caps or restrictions have been placed on the Big Six energy providers.

The French government has also cut electricity taxes in a bid to slow the increase to bills. While here in the UK, gaps in the Chancellor’s support package means the energy crisis will hit the poorest families the hardest, in France 5.8million low-income households were given a €100 payment for energy bills in January this year.

Spain

The Spanish government’s €16billion response to the energy crisis is the most comprehensive. The focus is on curbing profits and protecting jobs.

Some €2billion will be raised from a windfall tax on energy providers. €500million in subsidies will be provided for electricity-intensive industries and companies that receive this aid won’t be able to dismiss staff to balance out their rising energy costs.

€10billion of state loans will also be given to companies in other industries who are forced to spend more on energy. There is protection for truckers and professional drivers with €450million in direct aid for transport professionals.

And for families and individuals, a fuel sales subsidy of €1.4billion will reduce prices by €0.20 a litre, making a full tank about €9 cheaper, far better than Rishi Sunak’s 5p cut to fuel duty which would take just £2.25 off the cost of a full tank.

These responses from other countries show that our government can do more to help families and industries survive what the Governor of the Bank of England calls a ‘historic shock’ to our living standards. Households currently face an annual energy bill of £2000 and prices are to rise again in October.

That’s why the TUC is calling for an Emergency Budget: Rishi Sunak must come back and provide a proper package of support for families.

Sign petition to demand action from Rishi SunakRishi Sunak must come back to parliament and present an Emergency Budget. We need a proper package of economic support for families.

Sign petition

Scotland to ban combustible cladding

Materials barred from high-risk buildings over 11 metres

Legislation to improve fire safety and boost Scotland’s Net Zero ambitions has been laid before the Scottish Parliament.

Under the legislation, developers will be banned from using combustible cladding on high-rise buildings. Since 2005, new cladding systems on high rise blocks of flats have either had to use non-combustible materials or pass a large-scale fire test.

The building standards legislation removes the option of a fire test, completely prohibiting such materials from use on domestic and other high-risk buildings, such as care homes and hospitals, above 11m.

The highest risk metal composite cladding material will be banned from any new building of any height, with replacement cladding also required to meet the new standards.

The legislation also includes improvements to energy performance standards, aiming to make buildings easier to heat while ensuring they are well ventilated and comfortable to live in.

Building Standards Minister Patrick Harvie said: “This is the third set of changes made to fire safety standards for cladding in Scotland since the tragic Grenfell Tower Fire, requiring any cladding on domestic or other high risk buildings above 11m to be strictly non-combustible.

“Taken together with our new fire alarms regulations, covering all homes in Scotland regardless of ownership, this is yet another step on the Scottish Government’s mission to minimise the risk of deaths and injuries from fire.

“The energy improvements will deliver another important step toward improved energy and emission performance of our buildings, and we’ll be going further on this in 2024 with regulations requiring new buildings to use zero-emissions heating systems.”

The Building (Scotland) Amendment Regulations 2022 (legislation.gov.uk)

Changes to requirements on fire safety of cladding systems will be introduced on 1 June 2022, while improvements to energy and environmental standards will apply from 1 October 2022.

The changes have been brought in following public consultations in 2021 on the fire safety of cladding systems and on energy and environmental standards.

Supporting Technical Handbooks, which set out the full detail of changes, will be published from the start of May.

The combustible cladding ban will apply to all buildings with a storey 11m or more above the ground, and which contain:

  • a dwelling
  • a building used as a place of assembly
  • or as a place of entertainment or recreation
  • a hospital
  • a residential care building or sheltered housing complex or a shared multi-occupancy residential building.

MPs back TUC’s calls for asbestos removal from public buildings

On Thursday, MPs backed calls from the TUC for all asbestos to be removed from public and commercial buildings. 

Westminster’s Work and Pensions Select Committee published a report from its inquiry into asbestos management in which it cites TUC calls for stronger asbestos removal.  

Asbestos remains the biggest cause of work-related deaths in the UK according to the Health and Safety Executive (HSE), with 5,000 deaths recorded in 2019. And Britain has the highest rates of mesothelioma cases in the world. 

Asbestos is classed as carcinogenic, which means it can cause cancer and other serious lung conditions when fibres are inhaled.  

According to figures from the HSE asbestos is still found in around 300,000 non-domestic buildings despite a ban on the use of the substance in new buildings in 1999. 

Committee report  

The new report by MPs cites concerns that the likely dramatic increase in retrofitting of buildings in response to net zero ambitions means that more asbestos-containing material will be disturbed in the coming decades. 

The TUC says current asbestos management is not fit for purpose and has long called for new legislation requiring removal of all asbestos from public buildings. 

Today MPs have called for a 40-year deadline to remove all asbestos from public and commercial buildings. The TUC welcomes the news but says a 40-year deadline is not ambitious enough. 

The report also calls for more funding for the HSE to support this increased programme of work. 

Asbestos dangers 

There is no safe threshold of exposure to asbestos fibres – inhalation even of small quantities can lead to mesothelioma decades after exposure. 

This means that where asbestos is still present, it is not safe to assume there will be no disturbances that put working people in danger. 

The only way we will eradicate mesothelioma in Britain is with a legal duty to safely remove asbestos, and a clear timetable for its eradication. Only then can we ensure that future generations will not have to experience the same deadly epidemic from asbestos-related diseases that we suffer today. 

TUC General Secretary Frances O’Grady said: “Everyone should be safe at work. Asbestos exposure at work continues to cause thousands of deaths every year. Asbestos is still with us in workplaces and public buildings across the country. As a result, more than 22 years after the use of asbestos was banned, hundreds of thousands of workers are still put at risk of exposure every day. 

“The only way to protect today’s workers and future generations is through the safe removal of asbestos from all workplaces and public buildings.  

“Today’s report by MPs is welcome, but a 40-year deadline isn’t ambitious enough: hundreds of thousands of workers risk dangerous exposure in that time. Ministers must commit to removing all asbestos to keep future generations safe.” 

DWP-Select-cttee-asbestosDownload

Supporting Muslim colleagues during Ramadan

Taking a few practical steps to support Muslim workers during Ramadan will help to create a workplace where everyone is respected and valued, writes TUC’s Riz Hussain. 

For the next four weeks, thousands of Muslims across the UK will be fasting during the daytime to mark Ramadan or Ramazan.  

Ramadan falls at a different time each year because Islam uses the lunar calendar. 

This year, Ramadan will start at the beginning of April and continue for 29 or 30 days from when you begin your fast. 

What happens during Ramadan?

It is a time for deep spiritual reflection and collective rituals for Muslims across the UK. It’s a time for Muslims to share food with their families and friends, and celebrate their cultures, heritage and faith. 

Family eating

The fasting day is long. The morning meal will be before dawn and people won’t break their fast until dusk. That’s 13 hours without food or drink (yes that’s right, not even water!). This can be challenging for many Muslims especially whilst at work.  

That’s why it’s important to support your Muslim workmates, to stand in solidarity with them and create a team culture where everyone is respected and valued, no matter where they’re from or who they worship. 

Practical steps colleagues and employers can take to support their Muslim workmates and friends: 

Ask colleagues if they’re observing Ramadan 

Don’t be shy about asking Muslim colleagues if they will be observing Ramadan. 

Some people may choose not to take part – perhaps for medical reasons – as fasting is a personal choice. 

Be considerate 

Ramadan should not interfere with everyday tasks at work, but fasting co-workers may be tired or lacking energy during the day. 

Usually the first ten days are the hardest. If you have colleagues who will be fasting, ask them if changing some aspects of work can make it easier for them. 

Be flexible 

Ramadan isn’t only about not eating or drinking during daylight hours. 

It usually means rising early and eating late, and may mean taking part in late night prayers at the mosque or their homes. Ramadan is usually a time for deep spiritual reflection, congregational prayers and lots of social dinners with family and friends. 

Some workers may ask to change their working day or shift times, to take a shorter lunch break, or to make sure they finish on time so they can break their fast at home.  

Being flexible may help people work when they are most productive.  

Some workers might have additional religious commitments during Ramadan. It may be especially important to perform prayers on time through the week. Employers can help by ensuring there’s a quiet space in the workplace for prayers and by allowing short breaks. 

The last ten days of Ramadan are considered to be especially holy. Some Muslim workers might decide to take time off, or ask to change their working patterns to perform all-night prayers. 

The end of the fasting period

Eid ul Fitr marks the end of the fasting period. It’s like Christmas for Muslims – the biggest celebration of the year. 

There is often some uncertainty about which day Eid will fall because it depends on moon sightings, so be prepared for your Muslim colleagues not to know the exact date. 

This may also impact on when they can work and how much notice they can give you, as Eid can last up to three days. 

Supporting colleagues during Ramadan is part of building a culture where everyone is respected and valued. 

This Ramadan, the TUC would like to wish all Muslim trade union members and everyone who is fasting in the UK: Ramadan Mubarak. 

TUC: Five ways the government can help mums this Mother’s Day

This Mother’s Day mums across the country will wake up to breakfast in bed and bouquets of flowers from their little ones. But although the recognition from family members is appreciated, the fact is many working mums are being pushed to the brink.

Juggling work with family life is not easy. And working mums are buckling under the strain of a combination of caring responsibilities and the added pressures of wages and bills crisis.

Last week the Chancellor delivered his spring statement – setting out spending commitments for the next six months. But there was nothing in the Chancellor’s mini-budget to support working mums, despite the fact that recent TUC research found that one in three parents of pre-school age children spend more than a third of their pay on childcare – a staggering amount when households across the country are struggling to cover soaring energy bills.

And there are other challenges facing women in the labour market. Nearly two in five (38%) key workers are paid less than £10 an hour, and most of them are women. Around 2.5 million women key workers earn under £10 an hour.  

One in 10 (1.4 million) women workers earn too little to get any sick pay. And TUC research shows that BME women are twice as likely to be on a zero hours contract than their white male counterparts.   

Mums took on the lion’s share of caring responsibilities during the pandemic when schools closed. Now they’re more likely to have to take time off work to care for their children when they get Covid-19. Many are being forced to sacrifice hours and pay to do so. 

And too many women are stuck in low-paid, insecure jobs with few rights and no sick pay. They deserve so much more. 

5 ways the government can help mums this Mothers Day

This Mother’s Day, the TUC wants the government to introduce five key measures to help mums stay in work and support their families: 

  • Increase the minimum wage to £10 an hour
  • Increase statutory sick pay to at least the level of the real Living Wage, for everyone in work.
  • Bring in an entitlement to 10 days parental leave per year for each child, on full pay. Currently parents have no legal right to paid leave to look after their children. 
  • Ban zero hours contracts.
  • Introduce a right to genuine flexible work, from the first day in a job. Flexible working includes having predictable or set hours, working from home, job-sharing, working compressed hours and term-time only working. 

Long-term reforms 

But ministers cannot stop there. The TUC says the gender pay gap opens when women become mothers, which then feeds into the gender pensions gap later in life.  

Government must look at fundamental reforms to equalise care between men and women. A striking omission from the spring statement was the lack of any mention of childcare.

Without access to affordable childcare many families will be forced into further hardship and many mums will be forced out of the labour market.

​And the Governments evaluation of shared parental leave is long overdue.

The TUC says ministers must:  

  • Tackle the gender pay and pensions gap. Government should require all employers to publish an action plan alongside their pay gap reporting, setting out the steps they will take to close their gender pay gaps.
  • Invest in the childcare sector and ensure everyone has access to good quality and affordable childcare and childcare workers are paid a living wage. TUC research found that one in three parents of pre-school age children spend more than a third of their pay on childcare. TUC research also found that over 170,000 childcare workers would benefit from a minimum wage increase to £10 per hour. 
  • Overhaul Shared Parental leave (SPL). Around only 1 per cent of eligible families take up shared parental leave. We need an individual right to SPL for both parents on a use it or lose it basis and paid at real living wage rate. 

Women have fought hard for their rights and progression in the world of work, but more than a decade of austerity, compounded by the pandemic and now the wages and bills crisis risks turning the clock back on progress towards women’s equality at work and in wider society.

If the government is serious about women’s equality then it must get serious about its policy interventions.

P&O Ferries illegal sackings scandal: Sign the Petition!

Sign the petition to call for UK government to stop DP World and P&O Ferries replacing 800 sacked workers with cheaper labour.

What’s the issue?

Last week, 800 workers at P&O Ferries were sacked via Zoom call.

This shameful act is devastating for these workers, their families and communities. Workers must be reinstated immediately – and P&O Ferries must face serious consequences.

This is a national scandal – it can’t ever be allowed to happen again. This must be a turning point for workers’ rights in the UK.

The government can stop this,  but they will not act unless thousands of us speak up. If callous acts like this are allowed at P&O, they can happen anywhere.

We need your help!

Please support P&O workers by signing the petition and make sure no worker can be treated like this again.

Sign petition