TUC: Ministers should boost wages, not slash taxes, in emergency budget

  • Union body says government must prioritise lifting workers’ pay over “bungs to big business and City bankers”
  • **New TUC analysis** shows real wages are down £100 a month compared to same period last year
  • “Don’t reheat failed Osborne-era policies”, TUC warns Chancellor

The TUC has today (Thursday) called on the Chancellor to bring forward an emergency budget that delivers for “working Britain”.

In a submission to the Treasury, the union body warns the government not to repeat the same mistakes of the “Osborne era” when pay and public services were slashed and huge tax breaks were given to big business.

The TUC says the priority for ministers must be to get wages rising across the economy and to fix the staffing crises plaguing hospitals, social care, education and other frontline services.

Pressure on wages

New analysis from the union federation shows that real wages down are down by over £100 a month compared to this time last year – a number that rises to £190 for public sector workers.

For the typical nurse this means a real-terms pay cut of £1,000 over the next year and a real-terms pay drop of £4,300 since 2010.

The TUC says rather than “handing out bungs” to corporations and City bankers the government should:

  • Bring forward inflation proof increases in the minimum wage, universal credit and pensions to October to help families through the cost-of-living emergency.
  • Get the minimum wage on a path to £15 an hour as soon as possible.
  • Give public service staff a real-terms pay rise that at least matches the rising cost of living and begins to restore earnings lost over the last decade.
  • Strengthen and extend collective bargaining across the economy, including introducing fair pay agreements to set minimum pay across whole sectors.
  • Impose a larger windfall tax on oil and gas companies that that are profiteering from UK families.
  • Make sure everyone pays their fair share of taxes by going ahead with increases in corporate tax, and equalising capital gains tax rates with income tax as a first step to fair taxes on wealth.

Speaking ahead of Friday’s emergency budget, TUC General Secretary Frances O’Grady said: “Friday’s mini budget is an acid test for this government. Are ministers on the side of working people, or more interested in handing out bungs to big business and City bankers?

“Tax cuts will do nothing to jumpstart the economy and will only line the pockets of the wealthy and companies like Amazon.

“When millions are struggling to make ends meet, the Chancellor should focus on getting wages rising across the economy – not helping out corporations.

“That means a £15 minimum wage as soon as possible, boosting universal credit and fair pay deals for workers across the economy.

“And it means ensuring those who’ve profited from this crisis pay their fair share – with a bigger windfall tax on oil and gas giants like Shell and BP, and new taxes on wealth.”

On the need to avoid repeating the mistakes of the past, Frances added: “We need a budget the delivers for working Britain – not more continuity conservatism.

“Kwasi Kwarteng mustn’t reheat the failed policies of the Cameron-Osborne government, which slashed pay, workers’ rights and public services.

“This pushed people into debt and locked families into years of declining living standards.

“After the longest wage squeeze in modern history, people can’t afford to tighten their belts any more.”

Fighting to protect the right to strike

Eleven trade unions, coordinated by the TUC and represented by Thompsons Solicitors LLP, have began legal proceedings to protect the right to strike.

The unions – ASLEF, BFAWU, FDA, GMB, NEU, NUJ, POA, PCS, RMT, Unite and Usdaw – have taken the case against the UK government’s new regulations which allow agency workers to fill in for striking workers and break strikes.

The unions come from a wide range of sectors and represent millions of workers in the UK.

The unions argue that the regulations are unlawful because:

  • The then Secretary of State for business failed to consult unions, as required by the Employment Agencies Act 1973.
  • They violate fundamental trade union rights protected by Article 11 of the European Convention on Human Rights. 

The change has been heavily criticised by unions, agency employers, and parliamentarians.

The TUC has warned these new laws will worsen industrial disputes, undermine the fundamental right to strike and could endanger public safety if agency staff are required to fill safety critical roles but haven’t been fully trained. 

The Recruitment and Employment Confederation (REC), which represents suppliers of agency workers, described the proposals as “unworkable”.

The Lords Committee charged with scrutinising the legislation said “the lack of robust evidence and the expected limited net benefit raise questions as to the practical effectiveness and benefit” of the new laws.

The TUC also recently reported the UK government to the UN workers’ rights watchdog, the International Labour Organization (ILO), over the recent spate of anti-union and anti-worker legislation and proposals, including the government’s agency worker regulations, which it says are in breach of international law. 

TUC affiliated unions UNISON and NASUWT are also launching separate individual legal cases against the government’s agency worker regulations.

TUC General Secretary Frances O’Grady said: “The right to strike is a fundamental British liberty. But the government is attacking it in broad daylight.

“Threatening this right tilts the balance of power too far towards employers. It means workers can’t stand up for decent services and safety at work – or defend their jobs and pay.

 “Ministers failed to consult with unions, as the law requires. And restricting the freedom to strike is a breach of international law.

 “That’s why unions are coming together to challenge this change in the courts.

 “Workers need stronger legal protections and more power in the workplace to defend their living standards – not less.”

Richard Arthur, Head of Trade Union Law at Thompsons Solicitors LLP, said: “The right to strike is respected and protected by international law including the Conventions of the ILO, an agency of the United Nations, and the European Convention on Human Rights.

“The Conservative government should face up to its legal obligations under both domestic and international law, instead of forever trying to undermine the internationally recognised right to strike.”

The TUC’s annual Congress has been rescheduled for 18-20 October 2022 following the death of Queen Elizabeth. The three-day event will take place at the Brighton Centre.

Truss: Energy Price Guarantee will ‘give people certainty’ on energy bills

Prime Minister Liz Truss’s opening speech on the energy policy debate in the House of Commons yesterday:

Earlier this week I promised I would deal with the soaring energy prices faced by families and businesses across the UK. And today I am delivering on that promise.

This Government is moving immediately to introduce a new Energy Price Guarantee that will give people certainty on energy bills.

It will curb inflation and boost growth.

This Guarantee – which includes a temporary suspension of green levies – means that from 1st October a typical household will pay no more than £2,500 per year for each of the next two years, while we get the energy market back on track.

This will save a typical household £1,000 a year. It comes in addition to the £400 Energy Bills Support Scheme.

This Guarantee supersedes the Ofgem price cap, and has been agreed with energy retailers.

We will deliver this by securing the wholesale price for energy, while putting in place long-term measures to secure future supplies at more affordable rates.

We are supporting this country through this winter and next, and tackling the root cause of high prices, so we are never in this position again.

For those using heating oil, living in park homes or those on heat networks, we will set up a fund so that all UK consumers can benefit from equivalent support.

We will also support all businesses, charities and public sector organisations with their energy costs this winter – offering an equivalent guarantee for 6 months.

After those 6 months we will provide further support to vulnerable sectors, such as hospitality, including our local pubs.

My Rt Hon Friend the Business Secretary will work with businesses to review where this should be targeted to make sure those most in need get support. This review will be concluded within 3 months, giving businesses certainty.

In the meantime, companies with the wherewithal need to be looking for ways they can improve energy efficiency and increase direct energy generation

We will be bringing forward emergency legislation to deliver this policy. And my Rt Hon Friend the Chancellor of the Exchequer will set out the expected costs as part of his fiscal statement later this month.

I can tell the House today that we will not be giving in to calls for this to be funded through a windfall tax.

That would undermine the national interest by discouraging the very investment we need to secure home-grown energy supplies. You can’t tax your way to growth.

Instead, we are taking an approach which is pro-growth, pro-business and pro the investment we need for energy security.

This is the moment to be bold. We are facing a global energy crisis and there are no ‘cost-free’ options.

There will be a cost to this intervention. However we are also acting immediately to defray the cost of this intervention in three ways.

Firstly, by ramping up supply.

Following on from the successful vaccine taskforce, we have created a new Energy Supply Taskforce under the leadership of Maddy McTernan.

They are already negotiating new long term energy contracts with domestic and international gas suppliers to immediately bring down the cost of this intervention.

We are also accelerating all sources of domestic energy, including North Sea oil and gas production.

We will be launching a new licensing round, which we expect to lead to over 100 new licences being awarded.

And we will speed up our deployment of all clean and renewable technologies including hydrogen, solar, carbon capture and storage, and wind… where we are already the world leader in offshore generation.

Renewable and nuclear generators will move onto Contracts for Difference to end the situation where electricity prices are set by the marginal price of gas.

This will mean generators are receiving a fair price, reflecting their cost of production, further bringing down the cost of this intervention.

Secondly, today’s action will deliver substantial benefits to our economy, boosting growth which increases tax receipts and gives certainty to business.

This intervention is expected to curb inflation by up to 5 percentage points, bringing a reduction in the cost of servicing government debt.

Thirdly, this morning, together with the Bank of England, we will set up a new scheme, worth up to £40 billion, to ensure that firms operating in wholesale energy markets have the liquidity they need to manage price volatility.

This will stabilise the market and decrease the likelihood that energy retailers need our support, like they did last Winter.

By increasing supply, boosting the economy and increasing liquidity in the market we will significantly reduce the cost to government of this intervention.

As well as dealing with the immediate situation we face, we are also dealing with the root causes.

Energy policy over the past decades has not focused enough on securing supply.

There’s no better example than nuclear, where the UK has not built a single new nuclear reactor in 25 years.

It’s not just about supply. The regulatory structures have failed, exposing the problems of having a price cap applied to the retail but not the wholesale market.

All of this has left us vulnerable to volatile global markets and malign actors in an increasingly geopolitical world.

That is why Putin is exploiting by weaponising energy supplies as part of his illegal war on Ukraine.

So as well as the action we are taking today on bills, we will use the next 2 years to make sure that the United Kingdom is never in this situation again.

I will be launching two reviews.

Firstly, a review of energy regulation to fix the underlying problems. We want a new approach which will address supply and affordability for the long term.

Secondly, we will conduct a review to ensure we deliver net zero by 2050 in a way that is pro-business and pro-growth. This review will be led by my Rt Hon Friend the member for Kingswood.

We are delivering a stable environment that gives investors the confidence to back gas as part of our transition to net zero.

We will end the moratorium on extracting our huge reserves of shale, which could get gas flowing in as soon as six months, where there is local support.

We will launch Great British Nuclear later this month – putting us on the path to deliver up to a quarter of our electricity generation with nuclear by 2050.

As a result of these steps on shale and nuclear and the acceleration of renewables, I am today setting a new ambition for our country.

Far from being dependent on the global energy market and the actions of malign actors, we will make sure the UK a net energy exporter by 2040.

And my Rt Hon Friend the Business Secretary will set out a plan in the next two months to make sure we achieve this.

I know businesses and families are very concerned about how they will get through this winter.

That’s why I felt it was important to act urgently to provide immediate help and support, as well as setting out our plan about how we are going to secure the UK’s future supplies.

This is part of my vision for rebuilding our economy.

Secure energy supply is vital to growth and prosperity. Yet it has been ignored for too long.

I will end the UK’s short-termist approach to energy security and supply once and for all.

That is what I promised on the steps of Downing Street.

Today we are acting decisively to deliver that pledge.

This will help us build a stronger, more resilient and more secure United Kingdom.

I commend this motion to the House.

UK GOVERNMENT BORROWING MORE TO BOLSTER OIL COMPANY PROFITS

Environmental campaigners have reacted to the UK Government plans for an energy price freeze funded by borrowing.

The UK Government will open a new licensing round for the North Sea next week, and is expected to give out over 100 permits for companies to look for more climate-wrecking oil and gas. This is despite climate science and energy experts warning that any new oil and gas projects will push the world well past dangerous climate limits.

Independent advisors have made it clear that increasing UK supply of oil and gas will have almost no impact on UK bills as prices are set by the international market.

Liz Truss also announced that her Government will lift the moratorium on shale gas. Scotland has a de facto ban on fracking.

In the first 6 months of 2022, 5 oil companies made over £80 billion in profits: Shell £16.6bn, BP £12.2bn, Exxonmobil £21.7bn, TotalEnergies £15.2bn, Chevron £14.5bn.

Friends of the Earth Scotland’s head of campaigns Mary Church said: “The impact of measures announced today to stop the immediate rise in household bills is welcome, but the approach taken by the new Prime Minister singularly fails to address the fundamental problems of a broken energy system that serves only to enrich oil company bosses and shareholders.

“The money the UK Government is borrowing will be pumped straight into the coffers of oil companies when it could have helped deliver the transition to clean, reliable renewables. People in the UK are being robbed by fossil fuel companies but instead of making them pay for the harm they are causing, Liz Truss has decided to borrow more money to keep paying the robbers.

“This energy price crisis is being driven by the price of fossil fuels and the only sure fire to prevent this happening again is a rapid and fair transition to renewable energy and a scaling up of energy efficiency.”

+ NORTH SEA OIL & GAS LICENCES
“Burning oil and gas is driving the climate emergency that sees tens of millions displaced by floods in Pakistan and has brought extreme heatwaves and drought across the UK. The UK Government is denying the reality of climate change by encouraging companies to seek out more fuel for the fire that is engulfing the world.

“The Scottish Government must be willing to stand up to these reckless plans to expand fossil fuels and hand out more licences for oil and gas companies to explore and drill in the North Sea. Ministers at Holyrood must speak out and use all the tools at their disposal to block any plans to further lock us into the oil and gas that is driving both the climate and cost of living crises.”

+ FRACKING
“The move to try reopen and force through fracking is a disgrace. Not only is the industry incredibly harmful in climate terms it also brings with it serious local health and environmental risks. Its laughable to suggest that fracked gas will deliver within 6 months. Communities have already successfully fought and stopped it in Northern Ireland, England and Scotland so wherever this dirty dangerous industry is proposed, it will be opposed once again.”

Commenting on the proposals announced by the government today to support households and businesses with energy bills, TUC General Secretary Frances O’Grady said: “Freezing energy bills this autumn is essential for families and to protect jobs and businesses.

“But the Prime Minister is making the wrong people pay. She should have imposed a much larger windfall tax on profiteering oil and gas giants. And she should have required all firms getting help with energy bills to commit to no lay-offs for the lifetime of the help, to protect livelihoods.

“And it’s not just energy bills soaring – so she needs to do more to help families get through the winter. That means a real plan to get wages rising, a big boost to universal credit, child benefit and pensions, and a massive rollout of home improvements to cut bills. And it’s time to bring energy retail into public ownership to make sure this crisis never happens again.”

The TUC says that the government should set out a programme to make UK living standards more resilient and the UK economy more resistant to a future crisis. This should include: 

  • Increase the windfall tax to a fairer level relative to the excess profits oil and gas firms are making.
  • Rapid rollout of home energy efficiency and taking the energy retail companies into public ownership – including a new approach to energy pricing with a free band of energy to cover basic lighting, heating, hot water and cooking.
  • A plan to get pay rising for all workers – including stronger pay bargaining rights so that working people and their unions can make fair pay agreements across whole industries. 
  • Increase the minimum wage to £15 an hour as soon as possible – by returning the UK to normal wage growth and having a more ambitious minimum wage target. 
  • Social security that prevents poverty – universal credit and benefits should be raised to 80 percent of the national living wage, along with a significant boost to support for families with children.  

Commenting on the Prime Minister’s decision to end the moratorium on fracking, Tom Fyans, director of campaigns and policy at CPRE, the countryside charity, said:  ‘Giving fracking the green light is a hideous mistake.

“If the purpose is to tackle bank busting gas prices, it’s an exercise in futility. Even if we were to go full steam ahead on fracking, which nobody wants, least of all rural communities, it wouldn’t make a dent on the cost of energy anytime soon, or ever. 

‘Any move to industrialise the countryside and belch yet more fumes into our carbon-soaked atmosphere will prompt a furious response from local communities, drawn out planning delays and nationwide protests. Hardly a proposal to keep families warm this winter, or lower bills in the future. 

‘The new Chancellor got it right in March, when he said fracking “would take up to a decade to extract sufficient volumes — and it would come at a high cost for communities and our precious countryside.” Nothing has changed. 

‘Proposals to offer local people discounts on their bills in exchange for environmental destruction on their doorsteps need to be seen for what they are – a feeble attempt to bribe vulnerable rural communities to accept an unpopular, unsafe and polluting process that will destroy their tranquility. Local communities need to make their voices heard loud and clear – they were right to resist before and should continue to do so. 

‘The answer to the fossil fuel price crisis is to reduce usage with a mass insulation drive, alongside a clean energy sprint. There has never been a better time to transform our energy infrastructure to ensure a future of abundant green power. 

‘Renewables are around nine times cheaper and far quicker to plug in than any alternative. Families facing the biggest drop in living standards on record need renewable energy to become the central pillar of a modernised energy system. And they need it to happen fast.’ 

A LEADING property association has praised the Government’s package of measures to help those unable to afford rising energy costs. 

The National Association Of Property Buyers said the Prime Minister’s “swift and decisive intervention” would help many. 

Spokesman Jonathan Rolande said: “Looking at the energy and inflation crisis from the perspective of the property market, we welcome the swift and decisive intervention by the government to help households and businesses with the cost of energy by capping annual expenditure at an average of £2500.

“The impact of higher increases jeopardised so many facets of the economy it was almost impossible to over-exaggerate the terrible consequences there might have been – bankruptcies, unemployment, increased inflation, a house price crash – all were very possible.

“Bills and inflation still look set to rise. Interest rates may well do so too. But the cliff-edge has, for now, been avoided. Businesses and homeowners now have certainty about their budgets and can plan accordingly.

“There will of course be a price to pay, perhaps with higher bills or taxes in the future. But today at least, homeowners, businesses, charities and everyone in the property sector will be breathing a huge sigh of relief.”

Under proposals outlined today, a typical household energy bill will be capped at £2,500 annually until 2024.

The huge support scheme could cost up to £150bn, but Ms Truss refused to put a figure on it, saying “extraordinary times call for extraordinary measures”.

Businesses will get support, with bills capped for six months, a shorter period of protection than many had hoped for.

The help will be for everyone in England, Scotland and Wales with equivalent help for Northern Ireland.

But there are concerns the measures are not targeted enough, with no additional support for the most vulnerable. As a result, millions are still expected to be in fuel poverty this winter.

The energy price cap – the highest amount suppliers are allowed to charge households for every unit of energy they use – had been due to rise to £3,549 in October.

To limit the amount customers’ bills go up by, the government will compensate energy firms for the difference between the wholesale price for gas and electricity they pay and the amount they can charge customers.

The final cost of the scheme will depend on the cost of energy on the international energy markets, which can be extremely volatile.

The money to cover the support will be borrowed by the government, adding to the UK’s already large debt pile.

Rail Strikes: How the Tory government is blocking a negotiated resolution

TUC: We’re not saying the Transport Secretary ‘should get involved’ – we’re saying he’s already involved

During the last round of rail strikes the Department for Transport put out a statement saying: “It’s extremely misleading to suggest the Transport Secretary should get involved in these negotiations.”

To be clear, trade unions are not saying the Transport Secretary ‘should get involved’. We are saying he already is involved.

And that’s the problem. He is deeply involved, yet pretends he isn’t.

We know this because it is there in black and white in the contracts between the government and the train operating companies (TOCs).

The TUC commissioned an independent legal opinion from Michael Ford QC, who looked in detail at these contacts.

His opinion, which you can download here, advises that the Transport Secretary has “very extensive powers” over what can be agreed between rail operators and unions, and “very significant contractual power” to direct how industrial disputes are handled.

The contracts require TOCs to abide by the Transport Secretary’s Dispute Handling Policy. In addition to this, the Transport Secretary may give TOCs a Dispute Handling Plan to direct them in a specific dispute.

According to Michael Ford QC, this means that the Transport Secretary has “overarching direction and control of the strike… either because the strategy is agreed with the Secretary of State or because the Secretary of State simply directs how the strike is to be handled”.

The contracts also make clear that TOCs face financial penalties if they agree with unions changes to pay, terms & conditions, redundancies, or restructuring that fall outside of the mandate given by the Transport Secretary in these documents.

For the rail firms, it is like negotiating with a brick wall – and Grant Shapps is the mason who built it.

To the public, this brick wall is invisible. And Grant Shapps would prefer that nobody knows it exists. When asked in parliamentary questions to publish the Dispute Handling Plan, his department refused.

But surely it is in the public interest to know the truth about this dispute.

We hope that with public attention returning to the dispute again during this week’s action, he will finally come clean on some important questions:

  • Why is Grant Shapps pretending he has no role in negotiations when he sets the mandate for employers on pay, term & conditions, redundancies and restructuring?
  • What are the secret red lines that Grant Shapps has set, and that will trigger financial penalties if the train operating companies cross them?
  • Why won’t he publish the Dispute Handling Policy and any Dispute Handling Plans so that the public know what the government is demanding? After all, the rail unions have been very open with the public on their demands.

Rail workers do not want this dispute to be prolonged. But due to the Conservative government, the negotiations are a sham.

Genuine negotiations can only happen in an employment dispute if both the employer and the union are in control over the agreements they can reach.

Rail unions would prefer Grant Shapps to give back control of the negotiating mandate to the TOCs. But if he keeps a tight grip on the negotiating mandate, then he should at least come clean on his demands.

And he should agree to meet with rail unions after months of refusing to. Otherwise, how can any progress be made?

TUC calls on ministers to get pay rising, as real wages fall again

Commenting on Tuesday’s labour market figures published by the ONS, which show real wages falling by 4.1 per cent (on CPI measure) as the cost of living crisis intensifies, TUC General Secretary Frances O’Grady said: “Everyone who works deserves financial security. 

“But with the Bank of England predicting the worst decline in real pay for 100 years, energy bills soaring and a recession on the horizon, millions of working families are worried they won’t be able to keep their heads above water this winter. 

“We need action from ministers now. They should cancel the increase to the energy price cap. And they must do far more to get pay rising – starting with boosting the minimum wage this autumn and giving public sector workers a decent pay rise.”  

Zero-hours contracts 

Commenting on the latest data on zero-hours contracts also published by the ONS yesterday, which show more than one million people are employed on these terms, Frances added:  ““The government promised a high skill, high wage economy. 

“But too many workers are stuck on insecure contracts that give them and their families no security. As the cost of living crisis escalates, the case for banning hated zero-hours contracts is stronger than ever.” 

The ONS figures are available at: 

https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/august2022  

Latest figures published this morning show INFLATION rose to 10.1% in July.

1 in 5 key worker households have children living in poverty

  • Around 1 million children with key worker parents are living below the breadline, research shows
  • In some parts of Britain more than two-fifths of kids in key worker households are living below the breadline
  • Poverty levels “likely to get worse” as ministers hold down pay
  • Key workers in the public sector facing another year of real-terms pay cuts

ONE in 5 (19%) key worker households have children living in poverty, new TUC research has revealed.

The research, which uses the government definition for key workers, shows that the number of kids growing up in poverty in key worker households has increased by 65,000 over the past two years to nearly 1 million (989,000) in 2022.

It forecasts that in 2023 that number will rise again to 1.1 million unless ministers take further action to support families.

North East hit hardest

The analysis – undertaken for the TUC by Landman Economics – highlights how in some regions of the UK more than two-fifths of children in key worker households are now living in poverty.

Key worker families in the North East (41%) have the highest rate of child poverty followed by the North West (29%) and London (29%) and the East of England (24%).

Scotland (8.3%) and Wales (8.9%) have the lowest rates.

Worse set to come

The TUC warned child poverty rates among key worker households are likely to get worse.

Ministers have announced another of year of real-terms pay cuts for key workers in the public sector.

The union body says this will have a devastating impact on frontline workers after a brutal decade of pay freezes and cuts:

  • Hospital porters’ real pay will be down by £200 this year 
  • Maternity care assistants’ real pay will be down by £600 this year 
  • Nurses’ real pay will be down by £1,100 this year
  • Paramedics’ real pay will be down by over £1,500 this year 

And ministers are calling for wages to be held down for some key workers in the private sector too.

The TUC says the additional support announced by the Treasury this year to help families with energy bills will be offset by cuts to real-terms pay and other rising living costs.

Risk of recession

The TUC says government calls for widespread pay suppression will reduce household spending and demand as the UK teeters on the brink of recession.

The union body highlighted how at the same time key workers are being told to tighten their belts, city bonuses are rocketing.

TUC analysis published in June month revealed that bonuses in the financial and insurance sector grew by 27.9% over the last year, six times faster than average wages in the same period, which grew by 4.2%.

TUC General Secretary Frances O’Grady said: “Our amazing key workers got us through the pandemic. The very least they deserve is to be able to provide for their families.

“But the government is locking too many key worker households into poverty.

“Ministers’ heartless decision to hold down pay will cause widespread hardship and put the UK at greater risk of recession.

“After the longest wage squeeze in 200 years we urgently need to get more money in the pockets of working families. This will help people get through this cost of living crisis and inject much-needed demand into our economy.

“It is particularly galling that as key workers are being told to tighten their belts, city executives are enjoying bumper bonuses. Once again ordinary working people are being forced to carry the can for a crisis made in Downing Street.”

Support needed for key worker families

The TUC is calling on the government to guarantee decent living standards by:

  • Raising the national minimum wage immediately.
  • Giving all key workers a fair pay rise that meets the cost of living
  • Funding the public sector so that all outsourced workers are paid at least the real Living Wage and get parity with directly employed staff.
  • Boosting universal credit to 80% of the real Living Wage
  • Significantly increasing benefit payments to children and removing the two-child limit within social security.  

Children in poverty in key worker households by UK nation and region in 2022

RegionTotal number of children in key worker familiesNumber of children in poverty in key worker familiesPercentage of children in poverty in key worker families
North East170,58670,31141.2%
North West600,325174,49529.1%
Yorks & the Humber434,33547,65911.0%
East Midlands426,33549,15011.5%
West Midlands396,75693,15623.5%
East of England490,577115,56323.6%
London661,487189,69128.7%
South East811,614125,84815.5%
South West362,53943,28711.9%
Wales249,78922,2858.9%
Scotland445,82637,0058.3%
Northern Ireland146,35320,78714.2%
Total5,196,522989,23719.0%

TUC: Building Worker Power

ESSAY COLLECTION LAUNCHED

Union members’ rights are under ferocious attack by bad employers like P&O Ferries and by a government intent on hindering workers’ ability to demand better pay and conditions (writes TUC’s NINA REECE).

This will look familiar to trade unionists David Wilson and Terence Palmer who, 20 years ago, defeated hostile bosses and a Tory government in a long-running case that made it to the European Court of Human Rights. 

Their court victory is marked with the publication by the TUC of ‘Building Worker Power’, a collection of essays by leading lawyers, politicians and trade unionists. Their contributions outline the importance of the landmark Wilson and Palmer case, the challenges facing those fighting for union rights today and what modern collective rights would look like. 

1

PHOTO CREDIT: © JESS HURD

In 1989, Daily Mail journalist David Wilson received a letter from his employer: it was not going to renew its recognition agreement with the National Union of Journalists. 

On top of this, any journalist who signed a contract of employment with the company before the agreement was due to end was given a 4.5 per cent pay rise. 

Meanwhile, RMT member, Terence Palmer worked for the ports in Southampton. 

His employer was also offering new contracts, this one coupled with a 10 per cent pay rise, on the condition that the workers would no longer be represented by his union, the RMT.  

This was union busting, plain and simple. The employers were withdrawing from collective bargaining and offering workers bribes to enter into personal contracts. Anyone who chose to remain within the collective agreement was denied the increased pay. 

With the support of their unions, Wilson and Palmer took their cases to industrial tribunal. They argued that the actions of their employers violated their rights: “the right to form and join trade unions for the protection of [one’s] interests”, an aspect of freedom of association protected under article 11 of the European Convention on Human Rights (ECHR).  

In his essay, Professor Keith Ewing reflects that this was not easy. There was a long legal battle and the Conservative government intervened, tinkering with the law to make it easier for employers to derecognise a union and remove the protections they afford. 

2

Professor Keith Ewing speaking at the collection launch. PHOTO CREDIT © JESS HURD

Eventually, the European Court of Human Rights (ECtHR) held that by permitting employers to discriminate against trade unionists, British law had violated the ECHR. 

In response to the 2002 ECtHR ruling, Section 145b of the Trade Union and Labour Relations (Consolidation) Act (TULRA) was established by a new Labour government. This meant that union members now had the right to not receive employer offers which, if accepted, would stop their terms and conditions from being determined by collective bargaining

David Wilson and Terence Palmer had won and the law had been changed. But this ruling had even further reaching consequences. 

In their essay, barristers Michael Ford QC and Stuart Brittenden show how in 2021, Section14b of TULRA was used again, when Unite members Dunkley and others won against Kostal UK Ltd at Supreme Court to establish that bosses can’t just ignore recognition agreements then claim that, even if they had ignored the collective procedures, they could not be penalised as they had not decided to do so permanently. 

Today, labour activists and law defenders continue the fight for our right to trade union activities. 

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TUC General Secretary Frances O’Grady speaking at the collection launch. PHOTO CREDIT © Jess Hurd

UNISON’s Shantha David, and Thompsons’ Rachel Halliday show in their essays that government attempts to undermine human rights principles in UK law could make it far harder to advance collective rights. 

The proposed Bill of Rights would weaken the government’s obligation to ensure UK law reflects our convention rights and could leave workers with no choice but to challenge attacks on those rights at the ECtHR in Strasbourg, a costly and complicated process.

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Frances O’Grady and lawyer Rachel Halliday speaking at the collection launch. PHOTO CREDIT © JESS HURD

New plans have also been announced to allow agencies to supply workers to perform the duties of employees who are on strike, making it harder for working people to organise collectively and defend their jobs. 

In her foreword, Labour’s Angela Rayner makes a positive point: progress can be made by strong union organising and a robust legal strategy. 

The Wilson and Palmer case proves that workers and our unions can win. We need to be just as determined as they were. 

Download ‘Building Worker Power: Essays on collective rights 20 years after the Wilson and Palmer case established the right to be represented by a trade union’ here

Fossil fuels driving extreme heat and climate breakdown

Environmental campaigners have commented on the extreme weather conditions in the UK. 


Friends of the Earth Scotland Head of Campaigns Mary Church said: “The extreme heat we are experiencing in Scotland, throughout the UK and Europe is one of the many frightening faces of climate change.

“We must be absolutely clear that the impacts of this heatwave on people’s health and wellbeing, on the NHS, on public transport, on the economy are the result of the continued burning of fossil fuels. Climate breakdown is here, it is deadly serious and it will get much worse unless we act urgently to end our reliance on oil and gas.

“The immediate focus should be ensuring that people are kept cool and safe through this period of record-breaking heat. But once it passes, politicians must get serious about stopping the causes of the crisis and about adapting to the increasingly extreme climate impacts that are already locked in due to our leaders’ inadequate action to date.

“Burning fossil fuels is the primary driver of climate breakdown so we must rapidly phase out North Sea oil and gas production, as part of a just transition to a renewable-powered economy with decent green jobs and affordable energy for all.

The time for rhetorical climate leadership is long past – we need action not words and we need it now.”

Scottish Govt: caution advised in extreme heat

Amber weather warning resilience arrangements remain in place in Scotland today.

People are being asked to consider whether they need to travel and to plan ahead before making any journeys as Scotland copes with the impact of extreme heat.

Justice Secretary and lead minister for resilience Keith Brown has chaired a Scottish Government Resilience Committee meeting (SGoRR) to monitor the impacts of the Met Office Amber warning, while Transport Scotland’s resilience room is closely monitoring impacts across the transport network

The Amber warning has been extended further northeast and now includes Dundee, Edinburgh, the Lothians, Fife, Perth, Clackmannanshire, Falkirk and eastern parts of Lanarkshire as well as the Scottish Borders and Dumfries and Galloway. The warning is currently in force and will last until 23.59 on Tuesday 19 July.

Mr Brown also attended the latest Cabinet Office Briefing Room (COBR) meeting.

He said: “Following the weather warnings, our resilience arrangements have been activated. We are receiving regular updates from partners including Transport Scotland, the Met Office, the NHS and emergency services and we’ll continue to closely monitor developments.

“I would urge people to think about whether they need to travel and if they do, make sure they’re properly equipped, and plan their journey in advance. Rail passengers and drivers should make sure they have water, sunscreen, hats and sunglasses and have a fully charged phone in case of any difficulties. Any drivers who face breakdowns should seek a safe, shady place, and stay hydrated.

“When temperatures increase, it’s important to monitor forecasts and follow public health advice, including staying hydrated and drinking plenty of fluids and avoiding excess alcohol. People should also look out for vulnerable family, friends and neighbours, as older people, those with underlying conditions and those living alone may struggle to keep cool and hydrated.

“Water safety incidents and drownings increase in hot weather and it’s vital that people are aware of the dangers and use supervised beaches and pools when possible – follow the Water Safety Code and in an emergency call 999. People should also be aware of the dangers of wildfires.”

TUC: Urgent heatwave warning to union reps and workers

With the Met Office issuing its first “Red Extreme” and “danger to life” heat warning for Monday (18) and Tuesday (19), and temperatures in some places reaching 40°C, the TUC is calling on bosses to make sure workers are protected from the sun and the heat.

Workers should be aware that employers have a duty of care, and a legal obligation to protect their health, ensuring working temperatures are reasonable, comfortable and safe.

These temperatures present a serious risk of sunstroke, heat stress and sunburn. Working in hot weather can also lead to dehydration, tiredness, muscle cramps, rashes, fainting, and – in the most extreme cases – loss of consciousness.

If a colleague becomes confused or agitated, loses consciousness, or is unable to drink, seek urgent medical attention.

Outdoor work

Employers must work with union health and safety reps to introduce measures to protect their staff who work outdoors when the temperatures rise, including:

  • Avoiding outside tasks between 11am – 3pm when temperatures, and risks, are highest.
  • Provide sunscreen and advice on the need for protection, available in other languages for migrant workers where relevant.
  • Allow staff to take plenty of breaks and provide a supply of drinking water.
  • Provide canopies or covering over open areas and shaded areas for breaks.
  • Provide lightweight protective clothing, including hats.

Driving

The heat can be dangerous for workers whose jobs involve driving, as any driver suffering from fatigue is a risk to themselves and other people. vehicles used for long journeys should be temporarily taken out of use if they cannot sustain a reasonable temperature, e.g. they do not have air conditioning.

Indoor work

Indoor workplaces could also become dangerously hot, and TUC advice is that nobody should be working indoors where temperatures exceed 30°C. At 24°C employers must take action to cool the air, and other measures including:

  • Using fans or other mechanisms to cool the air, as well as adequate ventilation.
  • Relaxing dress codes and uniform policies.
  • Allowing rest breaks and adjusting shifts to avoid travelling in peak heat.
  • Moving workspaces away from windows and other heat sources, using blinds to block out sun.
  • Providing cool drinking water.

Maximum temperatures

Employers must ensure working temperatures are “reasonable”. The TUC believes employers must take action when indoor temperatures exceed 24°C, with 30°C being an absolute maximum – certainly no longer “reasonable”.

Guidance elsewhere states:

  • In the US regulations say working temperatures should not go beyond 24°C
  • Spain has strict guidelines on working temperature: it must not go beyond 27°C indoors or 25°C for physical activity.
  • In Germany, 26°C is generally considered the maximum for indoor work.
  • In China, when temperatures reach 37°C outdoor work is banned during the hottest three hours of the day, and at 40°C it must stop altogether.
  • In the UAE, outdoor work is banned entirely between the hours of 12:30 and 15:00 when it’s hottest.

SPF is PPE

Personal Protective Equipment is defined as “all equipment which is intended to be worn or held by a person at work and which protects him against one or more risks to his health or safety, and any addition or accessory designed to meet that objective.”

Sunburn and complications resulting from UVA radiation are a known risk to health, and outdoor workers are already three times more likely to develop skin cancer than the general working population. Sunscreen creates a barrier between the worker and the risk, and as such should be considered personal protective equipment.

Employers should provide sunscreen with a factor of at least 30, made available free of charge to all workers whose work involves outdoor activities.

Excuses such as allergies should be dismissed. Workers can be allergic to any number of ingredients, fabrics or materials used in equipment, for example hand sanitsier.

Refusal by a worker to wear PPE on that basis is valid. Refusal by the employer to supply it to the wider workforce is not.

The right to refuse

Section 44 of the Employment Rights Act 1996 provides workers protection from detriment (i.e. dismissal, disciplinary or a pay cut) if they withdraw from and to refuse to return to a workplace that is unsafe.

Workers are entitled to remain away from the workplace if – in their opinion – the prevailing circumstances represent a real risk of “serious and imminent danger” which they could not be expected to avert.

The TUC says workers should seek advice from their union before using their rights under Section 44.

TUC: Is it too hot to work?

  • UK Health Security Agency (UKHSA) releases level 3 heat-health alert for parts of UK
  • Forecasters warn temperatures will continue to climb and soar past 30 degrees C in some parts of the country
  • TUC calls on employers to make sure staff are protected from the sun and heat

The TUC has urged employers to make sure their staff are protected from the sun and heat after the UK Health Security Agency (UKHSA) issued a heat-health alert yesterday.

A Level 2 heat-health alert has been issued for the South West, East Midlands, West Midlands, North West and Yorkshire and the Humber regions.

And a Level 3 alert has also been issued for the East of England, South East and London regions.

Both alert levels are in place until 9am on Friday (15 July), with warm weather forecast across the country throughout the course of next week.

Climate change means that the UK will be subject to more frequent and intense heat waves – putting workers at greater risk.

Health warning

Working in hot weather can lead to dehydration, muscle cramps, rashes, fainting, and – in the most extreme cases – loss of consciousness. Outdoor workers are three times more likely to develop skin cancer.

The TUC says employers can help their workers by:

  • Sun protection: Prolonged sun exposure is dangerous for outdoor workers, so employers should provide sunscreen.
  • Allowing flexible working: Giving staff the chance to come in earlier or stay later will let them avoid the stifling and unpleasant conditions of the rush hour commute. Bosses should also consider enabling staff to work from home while it is hot.
  • Keeping workplace buildings cool: Workplaces can be kept cooler and more bearable by taking simple steps such as opening windows, using fans, moving staff away from windows or sources of heat.
  • Climate-proofing workplaces: Preparing our buildings for increasingly hot weather, by installing ventilation, air-cooling and energy efficiency measures.
  • Temporarily relaxing their workplace dress codes: Encouraging staff to work in more casual clothing than normal – leaving the jackets and ties at home – will help them keep cool. 
  • Keeping staff comfortable: Allowing staff to take frequent breaks and providing a supply of cold drinks will all help keep workers cool.
  • Talking and listening to staff and their union: Staff will have their own ideas about how best to cope with the excessive heat.
  • Sensible hours and shaded areas for outdoor workers: Outside tasks should be scheduled for early morning and late afternoon, not between 11am-3pm when UV radiation levels and temperatures are highest. Bosses should provide canopies/shades where possible.

The law

There’s no law on maximum working temperatures. However, during working hours the temperature in all indoor workplaces must be ‘reasonable’.

Employers have a duty to keep the temperature at a comfortable level and provide clean and fresh air.

The TUC would like to see a change in the law so that employers must attempt to reduce temperatures if they get above 24 degrees C and workers feel uncomfortable. And employers should be obliged to provide sun protection and water.

The TUC would also like ministers to introduce a new absolute maximum indoor temperature, set at 30 degrees C (or 27 degrees C for those doing strenuous jobs), to indicate when work should stop.

With climate change bringing higher temperatures to the UK, the government needs a plan on how to adapt and keep workers safe.

TUC General Secretary Frances O’Grady said: “We all love it when the sun comes out. But working in sweltering conditions in a baking shop or stifling office can be unbearable and dangerous.

“Indoor workplaces should be kept cool, with relaxed dress codes and flexible working to make use of the coolest hours of the day.

“And bosses must make sure outdoor workers are protected with regular breaks, lots of fluids, plenty of sunscreen and the right protective clothing.”

The UKHSA health-heat alerts are in place until Friday (15 July). More information is available at:https://www.gov.uk/government/news/heat-health-alert-issued-by-the-uk-health-security-agency

– The TUC is providing resources to workers on how to adjust workplaces to cope with extreme heat: Too hot, too cold – Too hot, too cold (tuceducation.org.uk)

UK Government introduces bill to ‘fix’ the Northern Ireland Protocol

Scottish Government: Northern Ireland Protocol legislation “reckless”

  • bill ‘ensures the delicate balance of the Belfast (Good Friday) Agreement is protected in all its dimensions and provides robust safeguards for the EU single market
  • introduces durable solutions to fix the four key issues with the Protocol
  • legislation will remove unnecessary costs and paperwork for businesses

The government has introduced legislation to fix parts of the Northern Ireland Protocol – making the changes necessary to restore stability and ensure the delicate balance of the Belfast (Good Friday) Agreement is protected.

The Northern Ireland Protocol Bill will allow the government to address the practical problems the Protocol has created in Northern Ireland in 4 key areas: burdensome customs processes, inflexible regulation, tax and spend discrepancies and democratic governance issues.

These problems include disruption and diversion of trade and significant costs and bureaucracy for business. They are undermining all 3 strands of the Belfast (Good Friday) Agreement and have led to the collapse of the power-sharing arrangements at Stormont. The UK government is committed to seeing these institutions back up and running so that they can deliver for the people of Northern Ireland.

Following 18 months of discussions with the EU, the UK’s preference remains for a negotiated solution to fix these problems which are baked into the Protocol.  But the EU must be willing to change the Protocol itself.  Ministers believe that the serious situation in Northern Ireland means they cannot afford to delay.

Foreign Secretary Liz Truss said: “This Bill will uphold the Belfast (Good Friday) Agreement and support political stability in Northern Ireland. It will end the untenable situation where people in Northern Ireland are treated differently to the rest of the United Kingdom, protect the supremacy of our courts and our territorial integrity.

“This is a reasonable, practical solution to the problems facing Northern Ireland. It will safeguard the EU Single Market and ensure there is no hard border on the island of Ireland.

“We are ready to deliver this through talks with the EU. But we can only make progress through negotiations if the EU are willing to change the Protocol itself – at the moment they aren’t. In the meantime the serious situation in Northern Ireland means we cannot afford to allow the situation to drift.

“As the government of the whole United Kingdom, it is our duty to take the necessary steps to preserve peace and stability.”

The legislation enables the government to bring forward durable solutions in each of the 4 key areas. The solutions are:

  1. green and red channels to remove unnecessary costs and paperwork for businesses trading within the UK, while ensuring full checks are done for goods entering the EU
  2. businesses to have the choice of placing goods on the market in Northern Ireland according to either UK or EU goods rules, to ensure that Northern Ireland consumers are not prevented from buying UK standard goods, including as UK and EU regulations diverge over time
  3. ensure Northern Ireland can benefit from the same tax breaks and spending policies as the rest of the UK, including VAT cuts on energy-saving materials and Covid recovery loans
  4. normalise governance arrangements so that disputes are resolved by independent arbitration and not by the European Court of Justice

These changes are designed to protect all 3 strands of the Belfast (Good Friday) Agreement, including North-South cooperation, and support stability and power-sharing in Northern Ireland.

They will provide robust safeguards for the EU Single Market, underpinned by a Trusted Trader scheme and real-time data sharing to give the EU confidence that goods intended for Northern Ireland are not entering its market. The legislation also ensures goods moving between Great Britain and the EU are subject to EU checks and customs controls.

The UK’s proposals protect the elements of the Protocol that are working, such as the Common Travel Area. It also contains a provision for it to be replaced by a negotiated settlement, if one is agreed with the EU.

It is consistent with international law and further information on the government’s legal position has been published today.

The government has today also published a ‘problems and solutions’ explainer document setting out each of the proposals in detail.

The UK has engaged extensively with the EU to resolve the problems with the Northern Ireland Protocol over the past 18 months. In the recent intensive discussions between October and March, the negotiating team held more than 300 hours of official and ministerial discussions and spent hundreds more examining the EU’s non-papers in detail.

However, it has become clear the EU proposals don’t address the core problems created by the Protocol. They would be worse than the status quo, requiring more paperwork and checks than today. The EU have said they will not allow changes to the Protocol within its current negotiating mandate.

Scottish Ministers are calling on the UK Government to withdraw legislation aiming to abandon parts of the Northern Ireland Protocol negotiated with the European Union.

Following the publication of the legislation, External Affairs Secretary Angus Robertson has reiterated the danger that disregarding parts of the UK-EU Withdrawal Agreement could lead to a trade war when the UK is already close to recession and in the middle of a cost of living crisis.

Mr Robertson said: “It is extremely reckless and frustrating that the UK Government has decided to bring forward this legislation. The UK Government has deliberately set itself on an entirely avoidable collision course with the EU.

“Brexit is forecast to cause more harm to the economy than COVID, and this action by the UK Government could trigger significant additional damage to our economy when we are already facing the worst cost of living crisis seen for decades.

“Scotland has direct interests at stake in the Protocol, particularly in trade and border control, and yet the UK Government has shown no willingness to engage us on these issues. It is also directly impacting other Scottish interests, such as participation in the flagship Horizon Europe research programme.  

“We have repeatedly called for the UK Government to step back from this confrontational approach and focus instead on dialogue with our European partners, who stand willing to work in partnership to find a negotiated solution. Those calls have also been ignored.

“We urge the UK Government to return to the negotiating table and withdraw this Bill. It is inconceivable to think that the Scottish Government would recommend legislative consent for a bill that would negatively impact Scotland’s economy, that could be deemed to break international law and could risk sparking a trade war with our fellow Europeans, which is in no one’s interests.”

The TUC and NIC-ICTU yesterday issued a joint statement to condemn the UK government’s “reckless” decision to unilaterally suspend its obligations under the Northern Ireland Protocol.

The union federations warn the decision will threaten the peace process in Northern Ireland and lead to a potentially damaging trade war.

Commenting on the new legislation, TUC General Secretary Frances O’Grady said: “It says everything about ministers’ warped priorities that in the middle of a cost-of-living emergency, they announce legislation that could provoke a trade war and cause prices to skyrocket further.

“Working people must not pay the price for this reckless move.

“The government must drop this bill, honour the agreement they signed up to and put practical solutions ahead of posturing.   

“Ministers need to get back around the table with the EU as soon as possible and come to an agreement that protects jobs, rights and the Good Friday Agreement.

“The government must show that it respects international agreements to repair its now-trashed reputation as a trading partner.”

ICTU Assistant General Secretary Owen Reidy said: “We all accept that there are practical issues with the protocol that must be addressed in the interests of all of the people of Northern Ireland.

However, the only credible way to do this is for the UK government to start to engage with the EU in good faith, as opposed to taking unilateral action which makes an agreement on the implementation of any protocol more challenging and difficult.”

The full joint statement from the TUC and NIC-ICTU reads:

We are deeply concerned that the UK government has stated an intention to unilaterally suspend its obligations under the Northern Ireland Protocol.

Trade unions played a critical role in the development of the Good Friday Agreement – but the government’s actions now threaten peace.

It is essential that the Good Friday Agreement is protected.

This reckless action also risks provoking a trade war with the EU.

In the middle of cost-of-living crisis, it is appalling for the UK government to suggest it will take actions that could see prices skyrocket even further.

Working people must not pay the price of the government’s reckless actions.

UK ministers must honour the international agreement they signed and put practical solutions ahead of ideological posturing.  

They need to get back around the table with the EU as soon as possible and come to an agreement that protects jobs, livelihoods and the Good Friday Agreement.

And they must act in good faith to repair the UK’s reputation as a trading partner.