CAPITALISM ROBS WORKERS: profit plunders pay

Capitalism creates the Great Class Divide

We may as well live on two separate planets, given the grotesque and growing divide between the rich elite and the rest of us.

This week a media flurry erupted over the crash on the world's Stock Exchanges, starting with the US, then Asia and Europe.

The prime explanation given by apologists for the system we live and work under was something like this: recent US economic reports showed wage growth, which will boost spending power, so companies will feel empowered to jack up prices in the face of increased demand, thereby fueling inflation, which will pressurize the authorities to put up interest rates... so shareholders are dumping their shares.

Of course, the upper-class casino that is the stock market bears little relationship to the real world and the real economy - except that panic in the Stock Exchanges can spread panic amongst capitalist investors and thereby lead to slashing of jobs for workers in the real world.  

Two Planets 

What crazy system do we suffer, whereby working people being able to buy a bit more becomes a problem? The system based on profit for the few, through robbery of the unpaid labour of workers by employers; that's the lunacy at large. 

  

The system where, globally, the richest 1% grabbed 82% of all the new wealth created last year. The system where a year ago 68 billionaires owned as much personal wealth as half the globe's entire population - 3.6 billion humans. But this year the concentration of wealth has accelerated further: now a mere 61 gluttons of greed match the incomes of the poorest 3.6 billion people. That's beyond obscene. 

DPD courier driver Don Lane, with his wife Ruth. 

Profiteering Kills Workers 

The same week that frenzied selling of shares on the Stock Exchange hit the headlines, a terrible tragedy of exploitation at work didn't make much media coverage, even though it captures much of what is rotten and unequal about the world we live in. 

We have often spoken and written that the capitalist employers use fear as their weapon of choice when it comes to squeezing every last penny of profit out of workers' labour. Nothing confirms this more than the tragic case of Don Lane, a DPD courier driver in Dorset, who died of diabetes last week at the young age of 53.

As his devastated wife Ruth explained, Don had collapsed four times at work in the space of a year, and just prior to his untimely death had been sick and coughing blood, but still went into work. Why? In Ruth's words, "Because he feared being fined." 

Don had skipped numerous hospital appointments with kidney specialists after being previously fined £150 for missing a day's work to attend the hospital. When he wrote appealing for the fine to be rescinded, the parcel delivery firm's area manager refused, writing "I fail to understand why a full day off was required." 

Out of fear of being fined - or even fired - Don missed several subsequent medical appointments. Ruth added: "He would never get breaks and they'd get told off if they missed their time slots for parcel deliveries." 

This outrageous inhumanity is all too indicative of the cruel exploitation for profit - at terrible cost to workers' health - that fuels the system and its capitalist owners' profits.

Recent reports confirm fewer days are now taken off sick in the UK than at any time since 1990. We all witness the workers dragging themselves into work when they should be in their sick-bed (if only to keep their germs away from the rest of us!), from fear of being disciplined under sick absence policy, or simply because they can't afford the loss of wages. 

Tesco: boss on £4.1m - 40,000 jobs cut & deprive women workers of £4bn

Demand Equal Pay for Women 

The double oppression of working-class women is another source of super-profits for big business, and always has been a feature of this class-ridden system. That includes unequal pay for work of equal value.

The big supermarkets are amongst the culprits, adding to the gender pay gap. As well as collective claims in ASDA and Sainsbury's, Tesco now faces legal action on an equal pay claim that could cost them up to £4billion. Put the right way round, that's the amount they've deprived women workers in their shops of, by paying shop assistants about £8-an-hour compared with £11-an-hour to predominantly male distribution centre workers. Both contribute to the accumulation of profit - including the Tesco group sales of £49.9billion last year alone!

It's by robbing all workers - but their female staff even more so - that Tesco's Chief Executive Officer enjoyed a personal income last year of £4.1million! That's his reward - to himself! - for slashing 40,000 Tesco jobs since he took over in 2014.

The fight for equal pay is an integral part of the struggle to end capitalist exploitation. 

Bad Jobs Recovery 

A new, comprehensive report from the European Trade Union Institute, on what's called the Jobs Quality Index, confirms what experience already teaches most of us. Compared with 2005, and despite the feeble economic recovery after the 2008 financial crash, there's been a generalized decline in the quality of jobs across the EU's 28 member states, plus wage stagnation. One of the many features identified is the explosion of temporary contracts, zero hours contracts, and deep-rooted job insecurity. 

Importantly, the report highlights how, in general, higher density of trade union membership and collective worker representation correlates to better wages, improved skills training and career development, and better overall working conditions. And this research also buries the lie that we have to choose between more jobs and more in our wages. Nations with better pay (after adjustments for prices through Purchasing Power Parity) also generally have a better record of creating jobs. 

But the galloping growth of insecure work and underemployment has not abated, even in nations where the economy has grown in economic output (GDP). Is it any wonder the report is entitled "Bad Jobs Recovery"? 

Zero Hours Wage Robbery

In this country, at least a million workers suffer the horrendous stress and insecurity of being hired on zero hours contracts. It's no accident that a report last year showed young people on these super-exploitative schemes were 50% more likely to suffer mental health problems than their counterparts in more secure work. Nor should it be forgotten that, as research in 2017 proved, those on zero hours contracts suffer an average £1,000 less in wages than workers in permanent jobs with similar backgrounds, skills and job roles. 

Alongside short hour contracts, the 7-year public sector pay cap, and the use of the blunt instrument of fear of the sack, zero hours contracts are one of the means by which wages have been systematically slashed as a share of overall national wealth. Methods by which wages for workers in this country have stagnated and fallen at the worst rate since the Napoleonic Wars, 200 years ago! 

Mass Underemployment 

Mass unemployment was the curse of the working class in the 1980s and 1990s - consciously inflicted by Maggie Thatcher and the parasitic financial wing of the capitalist class. Mass underemployment is its modern equivalent, with at least 3.3 million workers crying out for more contract hours - including the wish to move from part-time to full-time - but unable to get them, as employers rely instead on a pool of workers they can have at their beck and call... according to fluctuating 'business needs'. 

And this week's Westminster legislation on the issue of 'good work' offers absolutely no protection to workers, and a lot of loopholes that protect employers' ruthless profiteering. Following the advice of Lord Taylor's Report, they are keeping zero hours contracts, with the hackneyed excuse that people need flexible working. And instead of wiping out bogus self-employment scams in the 'gig economy', the Tories are providing get-out clauses to the exploiters through a new category of 'dependent contractors' - which still prevents those who in real life are employed workers from being entitled to at least the legal minimum wage, paid holidays and sick pay. 

My USDAW NEC election poster

For Guaranteed Minimum 16-hour Contracts 

That's why the pioneering policy of a guaranteed minimum 16-hour contract for all who want it is so timely. In the past month, I've been waging a campaign for election to the National Executive Council of my union, Usdaw. Visiting scores of workplaces, and broadcasting campaign videos, I highlighted, in particular, my determination to help lead the battles for an immediate £10 minimum wage for all over 16 - rising with inflation, with equal pay for women - and replacement of zero hours and pitifully short hours contracts with a guaranteed 16 hours. 

Concretely, that employers should be legally obliged to offer at least 16-hour contracts, with the only exception being where a worker - accompanied by their union rep, to prevent any skulduggery - requests lesser hours. And alongside that, I've fought for the legal right of all workers to be offered higher contract hours after working more than their contract for 13 weeks. Those two measures would wipe out the galloping disease of casualisation, but give workers the power to be flexible. 

Workers' eyes lit up at the mention of these points. Numerous retail workers in every conceivable firm said they'd vote for me on that basis alone. Regardless of whether I get elected to the Usdaw NEC to represent our 45,000 Scottish members, the issues have been broadcast; the awareness of these simple, hard-hitting, far-reaching alternatives broadened. 

Lessons from Germany 

We need every union to take up the cudgels around these fighting demands. Such measures would begin to reverse the vicious spiral of insecure contracts, accompanying poverty pay, which lowers spending power, adding to job scarcity and insecurity. 

And if the union leaderships showed the bottle to organise and inspire workers to take action for these immediate reforms in the way we work - and the way wealth is distributed - it would infinitely strengthen the unions' collective strength, helping to seriously challenge the rotten, unequal, profit-crazed system of inbuilt exploitation that is capitalism. 

Further proof of this vision can be currently spotted in Germany. The economy has grown - but of course, as in other countries, that's no guarantee of improvement for workers' living standards. It takes determined, collective action to win a share of the increased wealth for the one productive class in society - the working class. Germany's biggest union, IG Metall, has just won massive concessions for nearly a million members in the metal and engineering sector, after staging a series of 24-hour strikes. They fought for a pay rise and won 4.3%. They also demanded a 28-hour week, and originally demanded this should be with little or no cut to the earnings from the current 35-hour week. Unfortunately, the deal reached accepts the employers' demand that reduction to a 28-hour week also involves an equivalent cut to pay. But for workers who want a shorter working week, this is a significant breakthrough, achieved through the power of union strike action.

Join the fight for an immediate 35-hour maximum working week

Cuts Hours of Work - With No Loss of Pay 

Learning from this, unions in Scotland should not only step up to the plate and wage a serious fight for an immediate minimum of at least £10-an-hour, and a guaranteed 16-hour week, but also for a shorter working week - to share out the work and slash the drudgery and overwork that many suffer. Millions of workers are suffering back-breaking, mind-breaking long hours of work - simply to survive, as hourly wage rates fall or stagnate compared with rising inflation on the daily necessities of life for working-class families. 

But crucially, a shorter working week shouldn't be on the basis of equivalent pay cuts. We should demand an across-the-board maximum working week of 35 hours now - rapidly moving to a 4-day week and 6-hour day - without a penny in loss of earnings. 

Maximum Working Week

As well as sharing out the work, and improving work/life balance, this would free up time for workers to actively participate in the democratic functioning of their communities and workplaces - for the first time in history! And a shorter working week without loss of earnings would also radically redistribute the wealth - created by workers' combined efforts in the first place - from profits to pay.

The unions have a duty to make the clarion call for action, demanding "Cut hours and profits - not pay or jobs!" 

HIGH COURT OF INJUSTICE: stand by your posties!

In a class-ridden fashion that was all too predictable, a High Court judge has granted Royal Mail bosses an interim injunction against the Communication Workers' Union strike action going ahead next week (19-21 October).

The mass democracy of a 9:1 majority for strike action amongst 110,000 CWU members has been trampled underfoot by an unelected judge on behalf of the unelected Royal Mail Group bosses.

After the resounding Yes vote was won - despite all the threats and obstruction thrown up by Royal Mail bosses - they tried to get a legal crushing of the subsequent action by absurdly claiming the union had not taken sufficient steps to inform its members of the planned strikes. Only those posties on a trip to Mars, with all communication channels to ground control cut off, could have been unaware of the planned action! 

These scared, desperate, but brutal bosses had to drop that crude nonsense, but then pursued the line of seeking an interim injunction on grounds of financial damage to the company. 

Court of Class Injustice

In stark confirmation of the role of the judicial arm of the state in the struggle between workers and big business employers, the judge had to decide who would suffer the greater financial damage, depending on whether he allowed the democratically decided industrial action to go ahead, or not. So his decision was to financially protect the Royal Mail bosses, at the expense of stalling the fightback by posties. At the expense of democracy. He instructed the CWU to suspend all industrial action "until external mediation had been concluded". 

The Issues Remain

But in reality this judicial setback only defers rather than defeats the struggle by Royal Mail workers. 

The issues remain. 

Nothing has been solved in the struggle to defend workers' pensions from a cut of up to 30%. 

Nothing has been conceded on the CWU's demands for a decent wage on retirement; or for a 35-hour working week without loss of pay, inclusive of breaks, to protect jobs, reduce drudgery and harness the advantages of new technology; or for defence of the right of union reps to properly function; or to withdraw plans for a two-tier workforce, with lower pay for new starters. 

The 9:1 Ballot Remains 

The ballot result remains.
As CWU General secretary Dave Ward declared outside the High Court of (In-)Justice:

"We walked into the Court with a 90% Yes vote, and we walked out still with a 90% Yes vote. This ballot is still live and kicking." 

The ruling merely delays the likelihood of strike action by 7 weeks, because the judge issued that as a deadline for the warring sides to reach an agreement through 'external mediation'.

This is an entirely bogus proposal; a fig leaf for a naked, class-driven offensive against workers and their ability to defend both their own conditions and the public services they provide. 

Negotiations on these issues have been dragged out by Royal Mail for 18 months already - including external mediation! 

Workers and their union reached the end of their collective tether, and only then balloted for strike action to force the out-of-touch bosses to sit up and listen. 

Strike Before Christmas 

As the CWU's Dave Ward declared, unless mediation leads to an acceptable offer in defence of workers and the great public service they provide, Royal Mail bosses are still staring down the barrel of a gun. The company either protects workers' pensions, pay, jobs, union rights and the service to the public, or they'll still encounter strikes before the peak Christmas period. 

And that's a key detail: the union is absolutely right to declare they will not allow the Royal Mail Board to string out mediation beyond the timescale specified by the High Court. 

The danger is that the employers want to stretch out 'external mediation' until the enhanced impact of a strike in December is dead and gone. They must not succeed. Either they concede to the demands of a workforce they are blatantly out of touch with during the mediation,  or they should be forced into doing so by decisive strike action before Christmas. 

Stand by Your Posties 

The war to defend Royal Mail services and it's workers is far from over. The use of the High Courts to tramp workers' democratic decisions into the dirt will only harden the resolve of these 110,000 men and women - and the determination of fellow trade unionists and socialists to build solidarity with them. 

FOR A GUARANTEED 16-HOUR MINIMUM WORKING WEEK

I am immensely proud that the Scottish Socialist Party conference passed another pioneering new policy which could transform the lives and livelihoods of hundreds of thousands of Scottish workers. We agreed to campaign within the trade union movement for the idea of a guaranteed minimum working week of 16 hours, to tackle the criminal insecurity and poverty that blights vast armies of workers on zero-hours and short-hours contracts.

Crazy capitalist contradictions

As I pointed out in proposing this new addition to the SSP's comprehensive package of workplace and trade union policies, capitalism curses working class people with the crazy contradiction of mass unemployment, mass underemployment and masses of overworked people on long, unhealthy hours of work. 

For instance, 260,000 workers in Scotland last year toiled for more than 48 hours a week. That's nearly one in eight of all those in work. And 54,000 worked a mind-boggling 60 hours or more each week! That's a threat to health, adding to the mountain of stress and mental health problems already all too common, a threat to workplace health and safety, and undermines family and social life. 

And although we all know the one greedy bandit in our workplace who treats overtime as an incurable drug addiction, grabbing every hour on offer, the fundamental reason people put themselves through this prolonged drudgery isn't greed, it's dire necessity: rotten hourly rates of pay. In fact a survey showed that 57% of these long-hours workers wanted to cut their hours at work.

Cut Hours - not Pay or Jobs

So the longstanding SSP policy of a guaranteed living minimum wage set at two-thirds male median earnings - £10-an-hour now in 2016 - is crucial alongside our campaign for a shorter working week, but with no loss of earnings. For cutting hours, not pay or jobs; for an immediate maximum working week of 35 hours across the board, rapidly moving to a 4-day week, and soon far lesser hours of work - harnessing the potential of new technology to slash the hours taken to produce life's necessities and thereby give workers time to live, not just work.

Famine of Guaranteed Work

That's one side of the battle to be fought. But at the other end of the nightmare contradictions in capitalism stands a vast army of workers stressed out by a famine of guaranteed hours of work - those on zero hours contracts and 4, 8, or 12-hours a week contracts.

Not everyone wants a full time job - not even the 35-hour week maximum we advocate, let alone the current average 42.7 hours worked in this country. But hordes of part-time workers want more work than they can get under the present system of insecure, casualised labour. For example, surveys show 1.4 million part-timers want more hours of work but can't get them. 

Why? Because employers prefer workers to be at their beck and call, according to 'business needs', hiring them on very low contracted hours - zero, 4,8,12, etc - and then dragging them in for extra hours during peak periods, of course with no premium payments for overtime. This also makes it cheaper for the employers in terms of sick pay, National Insurance Contributions, and (at least until recent rulings) holiday pay. 

16 Hours Guarantee 

So the demand for a guaranteed minimum weekly contract of 16 hours would tackle some of these problems head on. As well as abolishing all zero hours contracts, it would eradicate the terrible insecurity and absolute poverty of only being guaranteed a handful of hours a week, with the stress and upheaval of trying to claim benefits some weeks, not the others when the employer needs extra hours worked. 

Opt-out - With Union Protection 

But what if someone wants less than 16 hours a week? The policy statement carried at SSP conference deals with that. 

We want the unions to crusade for government legislation that obliges all employers to offer nothing less than 16 hours a week. We want the unions to negotiate for that demand where they are already recognized, and use this and associated policies to help recruit new members to win union recognition in new areas. 

But we also agreed the rider that if a worker wants less than 16, they should be entitled to negotiate lesser hours with the help of their union, with guarantees against bullying into such an arrangement by management. In other words, the right to opt out of a guaranteed 16-hour minimum working week, strictly on the proviso they have union representation when doing so.

Pioneering Proposal 

This new proposal - which I first raised in my book Break the Chains - not only tries to eradicate the cruel poverty of pay and job insecurity that blights millions of workers in Scotland and the UK, but also seeks to give an element of workers' control to working life, a challenge to the dictatorship by senior management on behalf of the owners that is the norm in 21st century capitalism. It runs in tandem with the fight for powerful, free and campaigning trade unions. 

We will now proceed to organize to win support for this pioneering policy in our trade unions, as part of the SSP's ongoing struggle for a society founded on human need not capitalist greed, where the fabulous wealth and inventions available are used to liberate workers from poverty, insecurity and drudgery.