Wednesday, 11 February 2015

CAPITALISM = CORRUPTION IN BREADLINE BRITAIN



There's a gut-wrenching stink of corruption arising from the body of capitalism right now.

The world's second-biggest bank, HSBC, has hit the headlines for providing a tax-dodging service to some of the world's biggest corporations, richest capitalists, and most corrupt crooks.

The public, and public services, have been deprived of £billions in unpaid taxes, in a conscious campaign of swindling on an industrial scale, thereby adding to the savage cuts to wages, benefits, services and the lives of millions. However, HSBC is but one link in the chain of corruption and graft known as capitalism, the system where those in power think all is fair in looting and profiteering.

HSBC

Back in 2007, whistleblower Herve Falciani leaked acres of documents showing how around 130,000 of the globe's wealthiest people, in 203 different countries, were systematically shown how to dodge taxes by the Swiss arm of HSBC.
In France, Argentina, Belgium and the USA these revelations have led to criminal investigations, such is the clamour for action against the bankers and capitalists who brought the world economy to the brink of ruin in the 2008 financial crisis. But in Britain, the self-proclaimed mother of democracy, where HSBC is actually based, a monumental cover-up of criminal tax-dodging has been conducted. Not only the perpetrators at the tops of the banks, but also the heads of HMRC and the Westminster government have been up to their elbows in burying the facts from public view up until now, not even 'naming and shaming' the con-merchants involved, let alone prosecuting them.

ONE PROSECUTION OUT OF 7,000! 

HMRC was handed the leaked documents in 2010, if not earlier. These revealed 7,000 UK citizens who had systematically evaded taxes with the active advice and involvement of HSBC's Swiss operation. Five years on, all the authorities have done is a series of shady out-of-court deals - this week boasting(!!) they have recovered £135m in taxes, interest charges and fines - with a sum total of ONE unnamed individual prosecuted.

Contrast that with the shameless, relentless prosecution - and indeed persecution - of those who falsely claim a few hundred pounds in benefits; it says it all about the class-ridden society we live in.
One stark statistic captures the values of capitalist government in the UK: HMRC employs a mere 300 staff pursuing tax evasion by the fabulously rich and big corporations, whilst they have 3,250 staff in pursuit of benefit fraud, even though the latter only amounts to less than 1% of the money lost to the state by corporate and fat cat tax fraud!

OFFSHORE TAX HAVENS

One of the chief means of dodging taxation is through offshore tax havens. As the BBC blithely states, "tax avoidance is perfectly legal, deliberately hiding money to evade tax is not". But that's precisely what HSBC has helped its rich clients do. Just a glimpse at a few of their methods should make your blood boil, and add steel to your determination to help dismantle the whole rotten edifice of capitalism.


They help advise rich clients on how to stay ahead of the law, such as how to dodge the impact of the European Savings Directive of 2005.

They supply wealthy clients with a foreign credit card so they can withdraw their undeclared cash at cashpoints abroad. For instance, Richard Caring, British tycoon and owner of the celebrity-packed Ivy restaraunt in London, on one day in 2005 thus removed £2.25million in cash in Switzerland - dodging his tax duties in the UK.

In Geneva, HSBC handed out 'bricks' of $100,000 a time, no questions asked, to American surgeon Andrew Silva, so he could then illegally post the cash back to the USA.

Amongst their other clients was Emmanuel Shallop, later convicted of dealing in African 'blood diamonds' - the blood-soaked, illegal trade that has claimed thousands of lives through wars on the continent. They opened up an account for him in Dubai.

Hollywood stars, royalty and heirs to some of Europe's biggest fortunes are on the HSBC list of criminal tax-dodgers. And only one of the 7,000 British citizens implicated in holding an estimated $21.7billion in HSBC's Swiss vaults has been prosecuted!

CAMERON'S SILENCE BOUGHT

But don't be fooled by the huffing and puffing of David Cameron about clamping down on those embroiled in tax evasion through offshore accounts.

For the past five years, the rich have bought the silence of the government on this scandal. When 500 mind-bogglingly rich donors to the Tory party gathered in London's Grosvenor House hotel this week at the annual 'Black and White Ball', forking out £15,000 a head for dinner to raise Tory party election funds, it was money well spent. They were there to buy the next government!

At last year's event, the 570 assembled worthies were 'worth' a combined £22billion in personal wealth. This year's crowd of parasites are likely to be in possession of even more; after all, Cameron and Osborne cut the top personal tax rate on incomes over £150,000 by 5% since April 2013.

More significant still, they've kept quiet about the tax swindling of these leeches on society, since the HSBC revelations in 2007. And the plot thickens.

Stephen Green was chief executive of HSBC from 2003-2006, then chairman from 2006-2010. He wrote books on "reconciling God and Mammon", in his mission as an evangelical Christian who portrayed himself as a saint in sinful times.

He was then made a Tory Lord. Cameron begged and cajoled the saintly Lord to become a government Minister during a trade mission to India in July 2010 - a clear 3 months after Cameron's government had received the leaked documents on the very 'sinful' deeds of Green's HSBC. Lord Green was appointed Minister for Trade and Investment, from January 2011 until December 2013. "To him that hath, more shall be given, tax-free!".

The Astors and the Camerons... corrupt tax dodgers.


CAMERONS' CORRUPTION

Cameron's stinking hypocrisy on offshore tax-dodgers doesn't stop outside the walls of the HSBC banking conglomerate. His wife Samantha enjoys a £100,000 salary as creative consultant to luxury leather and stationery firm, Smythson's. They're the company that advertise what every working class woman needs: python skin clutch bags at £850 a go, and crocodile skin clutch bags at a cool £3,200 each. It makes you puke; it would take nearly 6 months for a woman working 20 hours a week on the national minimum wage to earn what some creatures pay for a glorified purse.

Smythsons... clutching their obscene wealth


Smythson's UK parent company had a £29.9million turnover in 2013/14, helped out by a taxpayer-funded £1.6m National Loan Guarantee, a scheme the Tories devised. But here's the rub: they switched their official headquarters to Luxembourg - a favourite location for many corporate tax-dodgers.

FURNISHING THE RICH TAX-DODGERS

Samantha Cameron's family are already very familiar with such methods. Her mother, Lady Astor, is the founder of luxury furniture firm OKA DIRECT. She has 22% of its shares, in the company with £5.5m assets and £1.6m profits last year. Some of her customers were Tory MPs caught up in the expenses scandal, which revealed OKA was a favourite source of furnishing their second homes - paid for by you and me! But 50% of OKA's shares are owned by anonymous shareholders through accounts in Guernsey - one of Britain's many offshore tax havens.

And to complete the family circle, David Cameron's father-in-law, Viscount Astor, has a family estate of 19,000 acres on the isle of Jura. Up until November 2014 it was owned by Bahamas-based Ginge Manor Estate Ltd (named after the Astor family home in Oxfordshire), but then transferred to a company based in the British Virgin Islands - another British Caribbean tax haven. No cash was involved in the transfer, meaning it was purely a tax dodge.

THE SWINDLE INDUSTRY

The growth industry that is tax-dodging for the ultra-rich is not the sole preserve of one rogue bank, HSBC. On the contrary, they are a small point on the tip of a monumental iceberg. Some experts estimate a quarter of the world's wealth is held in offshore accounts, purely to avoid paying domestic business and income taxes. And over two-thirds of that is in British territories.


Four huge accountancy firms in the UK make a fortune for themselves and their capitalist clients by giving them expert advice on how to avoid and evade tax. One of them, PriceWaterhouseCooper, has promoted this swindle on an industrial scale, amassing a fortune for its owners in the process. They've just rewarded their executive board members with payouts of over £21million - an average £1.83m each. Legalised crime pays!

These accountancy firms are stuffed full of former top brass tax inspectors from HMRC, and the government hires the services of their representatives to help frame tax laws - which they help shape to suit the rich. And the accountancy firms then make money out of advising the rich on how to escape taxes...through loopholes they helped to devise in the first place!

It's not a case of a few rotten apples in the barrel, but of a system that is rotten and class-ridden to its core.

CAPITALISM = THEFT

Capitalism is a systematic swindling of the wealth created by the working class. But the rich don't leave anything to chance. They use accountancy firms, lawyers, tax experts, banks, politicians and the laws they frame to rip the profit out of the rest of us. It's a colossal machine constructed to redistribute wealth - away from the millions to the millionaires. And by god they've had some run of success!

BREADLINE BRITAIN

Whilst the pro-capitalist politicians try to distract our attention from the systemic corruption that is capitalism by chastising a few individuals that get caught red-handed, the latest figures on poverty and inequality reveal the consequences, but get little publicity.

Twenty million people in Britain are now below the breadline! Poverty has doubled since 1983. 3.5 million adults go hungry to feed their children. And an absolute majority of those in poverty - 52% - are in work.

Whilst the wealthiest 1,000 people have seen their obscene wealth virtually double in the last five years, to £519billion, workers' wages have dropped by £50 a week over the same period.

DEMAND £10 AN HOUR MINIMUM

We're told the SSP's demand for a living minimum wage of £10 an hour for all over 16 is 'unrealistic'. But the people preaching this are the ones who have systematically, consciously robbed society of £billions, not only through dodging taxes and buying politicians to keep taxes on big business and the rich at historic low levels, but through the entire system of profit itself.

In reply, the TUC needs to speak out in support of its own unanimously agreed policy of a £10 national minimum wage, and give a lead in demanding closure of the tax loopholes that help engorge the rich, and confiscation of the assets of companies and individuals found to have dodged taxes.

TAXATION - AND PUBLIC OWNERSHIP

Decent wages, expanded public services and new green industry jobs could all be easily funded if the rich were forced to pay proper taxes and the current annual loss of £120billion from tax avoidance, evasion and non-payment was halted. The jaw-dropping mountains of wealth accumulated by the richest 1% - in part through this monstrous international tax swindle - needs to be redistributed, with a wealth tax and vastly increased levels of Corporation Tax.

But taxation alone cannot rid society of the obnoxious inequality that the capitalist economic system is built upon. Why should the banks, accountancy firms, manufacturing and service industry multinationals have the ability to amass vast profits, dividends and bonuses for the owners and directors in the first place - regardless of whether they fancy paying the taxes they are meant to, or not?



CLEANSE SOCIETY OF CORRUPTION & CAPITALISM

This stinking corruption should embolden those of us who think the wealth created by the collective efforts of working people should be collectively owned, through measures such as democratic public ownership of the banks, big business and natural resources. That way the one in three people in Britain below the breadline could be raised to a life of plenty, with socially useful jobs created and decent wages for all, including the guaranteed minimum of £10 an hour. Capitalism equals corruption and cruel exploitation to create profits for the very few. Socialism would cleanse society of this foul system.


My blog pieces appear also in the Scottish Socialist Voice, fortnightly.

Tuesday, 3 February 2015

BILLIONAIRES - AND BUTTONS FOR WAGES


The crime of poverty pay is becoming even more criminal.

In a cheap stunt to absorb some of the growing fury of working class people at appalling hourly wage rates, even the Tory government has been obliged to 'name and shame' some of the companies not even paying the legally required national minimum wage, the pathetically low £6.50 for workers aged over 21.
The biggest company named, with the biggest number of workers denied even this pitiful hourly rate, is Swedish-owned clothes chain H&M. 


Known for its fast fashion, cheap chic range, Hennes & Mauritz was founded in 1947 by Erling Persson. The current company chairman is his son, Stefan Persson. He is the world's 24th-richest billionaire, with a personal fortune of £16.01billion. He gained from last year's 25 per cent rise in the stock value of his company, H&M.

But he didn't do too badly from his other sideline, land ownership in England. Last year he bought Savernake Estate in Wiltshire: no crofter's strip of land, nor modest family farm, but a colossus of 8,700 acres! And for Stefan's convenience, this latest acquisition isn't far from Linkenholt, a village in Hampshire, which he bought in 2009!

Billionaire Wage Dodgers

In contrast to this mind-boggling wealth, in the hands of Sweden's richest citizen, his company and primary source of wealth, H&M, dodged paying over 500 of its staff the paltry £6.50 an hour that the national minimum wage legally obliges them to pay! 

Billions for bosses, buttons for their workers!

That's just the stand-out example of obscene class exploitation highlighted by the 'named and shamed' list recently published. And it shouldn't hide the more fundamental point: how the hell are workers meant to live on £6.50 an hour even when companies do pay it?

Below the Breadline

As the SSP steps up its street campaigning for a living national minimum wage of £10 an hour, legally enforced, horror stories of working people who can't cope multiply with every street stall. The woman who told me she has five part-time jobs, as a cleaner, and still can't survive the bills.

The 23-year-old hairdresser who told me she works for a major chain but is having to give up and go back to college, as she only gets £4.50 an hour actual wages, topped up to the legal minimum £6.50 through commission - which is drying up as people can't afford to spend as much on hairdos or shampoos... because of low wages!

The proud people who work part-time but still have had to resort to foodbanks for emergency food supplies.

Inequality: the 1% v. the 99%

Obscene levels of inequality in Scotland actually add to economic crises.

Low wages suppress spending power, thereby adding to job insecurity and unemployment. Workers getting a boost to their wages would spend it, investing in the local economy - in contrast to company bosses on unimaginable sums who just squander their wealth on luxury yachts, works of art that they often stick away in a vault...or in buying up a whole village!

But inequality is the ugly twin of poverty. The richest tenth of people in Scotland have 900 times as much wealth as the poorest tenth of the population.

That's in keeping with the global obscenity of inequality: as Oxfam recently reported, the richest 1% on earth own 48% of global wealth, and by 2016 the 1% will own more than the other 99% of humanity!

£10 easily affordable

Fighting for a £10 an hour national minimum wage for all over 16 - with equal pay for women - is hardly asking for the moon and the stars. It's roughly equivalent to two-thirds the median male wage in Scotland. In other words, two-thirds of the income that half of all men already get more than.

It's the minimum wage unanimously voted for at last autumn's British Trades Union Congress, which adds a mighty potential force behind the demand.

The SSP is appealing to people on the streets to raise their chins, raise their sights, and fight for a living minimum wage, legally enforced.

We are appealing to trade unionists to take up the cudgels and seriously campaign for the policy agreed by all unions representing over seven million members.

And we are arguing that such a wage is easily affordable. The biggest armies of low paid workers are massed in retail, hospitality and the care sector. They are employed by retail giants, including supermarkets, who make £billions in profit every year, and could easily afford a decent living wage for those who make them their profits. Likewise the big chains in the fast foods and hospitality sector.

And the battalions of low paid workers in the public sector could be afforded at least £10 an hour if governments radically changed their spending priorities. From squandering £100billion on Trident weapons of mass destruction, and cutting tax workers' jobs whilst the rich dodge £120billion a year in taxes, to investment in well-paid jobs in the likes of care services for children, the elderly, sick and disabled.

Pay Before Profit

We live in a fabulously rich country - with obscene levels of poverty. Wage levels are a prime cause of that poverty, with half a million Scots working to stay below the breadline.

It's time to stand up and demand a share of the growing wealth for the working class that produce it in the first place.

Just as Syriza won power by, amongst other policies, pledging to restore the minimum wage to its 2010 level (double its current appalling level), so too the Scottish Socialists are determined to lead the fight for a decent living minimum wage of £10 now. Join us. 

Tuesday, 27 January 2015

DEFY ALL CUTS: there IS an alternative!

The SSP held a meeting in Glasgow at which Colin Fox gave an eye witness account about the elections in Greece last week.  Watch HERE

The contrast could not be starker. As the people of Greece give a resounding NO! to austerity, the councillors of Scotland are poised to vote YES to another bout of municipal butchery.
Council budgets are about to be set across the country, for the next 1-3 years. The common thread in all 32 council areas is cuts: cuts to jobs, cuts to vital services, cuts to the conditions of the workforce.
Tens of millions of pounds are being slashed off local public spending - despite us all being told there's an economic recovery.


A litany of slash-and-burn crimes


Glasgow city council - Labour controlled - are hacking another £100m off services and jobs over 3 years, on top of their previous cut of £175m since 2010. Vulnerable people, like those supported by Glasgow Association of Mental Health, are at the sharp end, as GAMH's budget is reduced by 40 per cent.

Edinburgh city council - run by Labour and SNP - boast of "greater efficiency" and "improved customer services" as they lop £67m off spending and plan 1,200 job losses! You couldn't make it up; well, this coalition of cuts councillors have!

North Ayrshire - SNP the ruling party - threatens another £19m over 3 years, hitting education and social services hard. The Labour opposition condemn this in Press Releases, but turn up to budget meetings and vote for the cuts!

West Dunbartonshire - a Labour council - wants to add another £17m to previous cuts in one of Scotland's most deprived boroughs, with school closures and an end to funding for lifeline services through two local Women's Aid Centres amongst the victims.

Dundee - SNP-run - aims to slice £8.5m off services, with school closures thrown into the mix.

North Lanarkshire - one of Labour's last bastions - threatens 1,400 job losses, with £62m in cuts this year, about £73m in the next two years.


TINA: "there is no alternative"

The list goes on; a dreary litany of slash-and-burn by councillors of all the mainstream political parties - Tory, LibDem, Labour, even the SNP.

And they all sing the same background tune to their axe-swinging crusade: "we have a duty to balance the books", and their all-time favourite, "there is no alternative". The latter was also a favourite tune of the late, unlamented Margaret Thatcher as she put the boot into the working class in the 1980s; she even had her own acronym: TINA, 'there is no alternative'.

It seems it never occurs to these services-cutting, jobs-slashing councillors that they should adopt the stance of the Greek people, by saying NO to ALL cuts, defying the cuts handed down from the Tory dictatorship of and for the rich at Westminster, mounting a campaign to win back some of the £billions stolen off Scottish budgets and therefore Scottish councils over the years.

In the last 3 years alone, £3billion has been robbed off Scotland's budgets by the Westminster razor gang. As Unison reported last year, 39,300 council jobs have vanished since 2010, one of the human consequences of 'balancing the books'.


Colin Fox gave his eye witness account of the Greek elections to an audience at the Trades council, Glasgow.   Watch HERE


Strangling Women's Aid Centre funds

And this new round of slaughter to services will hit some of the people most in need of the social support a modern society should guarantee. For instance, 25,000 women in Scotland made their first contact with Women's Aid Centres last year, in desperate need of refuge for them and their children, as they flee domestic abuse. But in at least West Dunbartonshire, North Lanarkshire, North Ayrshire and Fife councils - a mixture of Labour and SNP administrations - funding for these lifeline refuges are being either slashed or entirely stopped - to 'balance the books'.


Putting the CON into CONsultation

The new modern method of implementing such cowardly butchery is to hold bogus 'public consultation' exercises. Councils have spent considerable sums in this charade, this pretense of giving 'choices' to the public.

As well as online voting, they hold public forums, sometimes with hi-tech electronic voting devices, where the elected councillors hide whilst unelected council officials carry the can, putting forward a long-list of cuts, asking people which cuts to carry out.


The councillors then issue glowing Press Releases about "the biggest consultation in the council's history", and effectively pass the blame for their own spineless acceptance of Westminster-inspired cuts to the average Joe or Josephine.

As I said in the recent live Radio Inverclyde debate with the Labour council leader Stephen McCabe, that's like offering somebody the choice of being executed by a firing squad or the hangman - but with no offer of staying alive!

These Labour (and SNP) councils have truly put the con into CONsultation!

People's BudgetsInstead of offering false 'choices' between cutting local schools or community facilities, teachers' jobs or street cleaning, larger school classes or cuts to women's refuges, elected councillors should be initiating genuine forums where People's Budgets could be debated, based on local needs and priorities, but underpinned by an expansion of funding from central government, rather than annual cuts.

Even at this eleventh hour in setting budgets, if Labour and SNP councillors discovered a collective spine they could as a minimum set No Cuts budgets, Defiance budgets which refuse to pass on the cuts issued by Westminster and meekly passed down by the Scottish government. Budgets with not a penny reduction in services, not a single job lost.


No Cuts Defiance Budgets

"But the money would run out if we did that" was the cry of Labour's Inverclyde council leader when we debated this option. Only if the councillors sat on their hands and did nothing!

If they were genuine about standing up for the people they got elected by, Labour and SNP councillors should link up with the council workforces - which constitutes a massive 246,000 workers in Scotland - through their trade unions, alongside user groups, tenants' groups and political parties dedicated to fighting the cuts, and mount a massive campaign to win back the £millions required to 'balance the books' without a single penny in cuts.

If the SNP Holyrood government was serious about standing up for Scotland, they would go beyond ritual condemnation of Westminster's cuts and mount a campaign of mass defiance, refusing to pass on a single penny of the Tory-LibDem Coalition's austerity, appealing to a population awoken by the recent Referendum to take to the streets demanding "Give us back our stolen £billions - bail out jobs and services, not bankers and the rich".

Scrap the Council Tax: tax the rich

And meantime, as a matter of urgency, the trade unions, community organisations, councillors and political parties should thrash out a progressive alternative means of funding councils.

Funds from the Scottish government account for about 80 per cent of all council budgets. The rest mostly comes from the Council Tax. But this is a brutally regressive tax system, where those on lower incomes pay disproportionately far more for local services than the richest do.

The SNP government has insisted on a freeze on Council Tax bills for several years. Families struggling to cope with household bills welcome this - although the richest gain most from the freeze. Labour's response is to demand an end to the Council Tax freeze - apparently so out of touch with working class lives that they're oblivious to the pain of increased bills their option would mean.

Another false choice: added financial pressure to cut jobs and services through the SNP freeze, or an Ice Age of further cuts to disposable incomes through Labour's increased Council Tax bills.

Scottish Service Tax

The SSP has pioneered and campaigned for the outright abolition of the regressive, unfair Council Tax since our founding aims were written in September 1998. We want it replaced by a progressive Scottish Service Tax, based on income, on the ability to pay. An income-based tax with rising bands and rates, making the rich pay their fair share.

The last time we costed this alternative - four years ago - it would have meant 80 per cent of people paying less, the rich minority paying a damned sight more, and the income for local jobs and services almost exactly doubling: £3.5billion a year from the Scottish Service Tax, compared to £1.8billion that year from the Council Tax.


Defy all cuts: imitate the courage of the Greeks

Contrary to the 'TINA' brigade of councillors, there clearly IS an alternative. But it takes a bit of courage, a spirit of defiance, a readiness to give a lead to people in opposition to ongoing assaults originating in Westminster.

It would be foolish to compare the crucifying savagery of the austerity imposed by the Greek equivalents of Tory and Labour - New Democracy and PASOK - with the cuts hammering the Scottish working class. But that does not excuse the cuts here, and in fact makes it all the more shameful that Labour and SNP councillors have yet to display an ounce of the spirit and courage of the Greek people, who have risen off their knees and said "enough is enough, no more cuts".

The SSP held a meeting in Glasgow at which Colin Fox gave an eye witness account about the elections in Greece last week.  Watch HERE


Public need, not private greed

The SSP proudly stands on the side of working class communities and council workers against this butchery, ready to join them in a campaign of defiance of all cuts, and with a fully-costed, progressive alternative means of funding an expansion of council jobs and services. If Syriza and the people of Greece dare to defy the IMF, EU bureaucrats and European Central Bank, surely we can defy and defeat the tin-pot Tory dictatorship of capital around Cameron, win back funding for jobs and services, and start to build a Scotland based on public need, not private greed?


Wednesday, 21 January 2015

Big Austerity Debate - Socialism vs Blairism

A live debate between me - and the leader of Inverclyde council Stephen McCabe (@kilmacolm1on Labour's passed-down Tory cuts.


Monday, 19 January 2015

FAT CAT TUESDAY: who says £10 an hour is unrealistic?




Next time somebody says that the SSP's campaign for a £10 an hour national minimum wage is unrealistic, or would damage the economy, spare a thought for the bosses who dictate the poverty pay that workers struggle to survive on.

Last year we had 'Fat Cat Wednesday'. This year it came a day earlier; Fat Cat Tuesday, 6th January 2015, was the day by which the average chief executive of the FTSE 100 companies raked in as much as the average worker will earn over the entire year!
By late afternoon on their second day back at work, the average chief executive of each of the FTSE 100 firms had already piled up £27,200 in earnings, which was the average annual wage of a worker in the UK in 2014. 

£1200 an hour!
Even if we make the naively generous assumptions that these bloated bosses work a 12-hour day, only take 10 days' annual leave, and work 3 out of 4 weekends (none of which assumptions we have any evidence for!), that still means they are on £1,200 an hour! Their annual average income for 2014 was £4.72million - each!
Whereas the average worker's wage 'rose' from £27,000 in 2013 to £27,200 last year, the FTSE 100 chiefs awarded themselves an increase of £500,000 each!

354 years' work to match Primark boss
Let's break down this obscenity of inequality a bit, to master the mind-boggling figures involved. 
If you did some of your shopping in Primark before Xmas, you helped boost the profits of its parent company, Associated British Foods. That outfit's top dog, George Weston, was awarded a £5m Xmas bonus for meeting targets, on top of his £1m salary and £900,000 annual bonus. Yet Primark refuses to pay its workers the Living Wage. 
Those cold figures mean that if you are earning the average national wage of £27,200, it will take you 195 years to earn the same as Primark's George Weston. And more to the point, given the wages this outfit grudgingly pays its workers, if you are a full-time worker on the £6.50 national minimum wage, it would take you 354 years to match his income!

Easyjet - easy money
To use just one other example, if you were lucky enough to use Easyjet at Xmas, you will have helped boost the income of its chief executive, Carolyn McCall. If you are fortunate enough to get the average worker's wage it will take you a modest 283 years to match her annual income. But if you are on the 'economy class' legal minimum wage, you'd need to stretch it out to 592 years of work!
These gaping chasms of income are perverse. And don't be fooled into thinking they are the exception, restricted to just the top 100 Fat Cats.
Whilst workers' wages have plummeted by £50 a week on average since 2010, the pay of ALL company directors rocketed by 21 per cent in 2014 alone.
Just 2,600 senior bankers in London grabbed an average of £1.3m each last year. That means just 2,600 wreckers of the economy had a combined income substantially greater than the entire block grant from Westminster to the Scottish government - which of course was cut, because "we have to balance the books", and "we are all in it together"!

TUC: fight for £10 now!
It's time to challenge this rotten system, stinking with corruption, rooted in the ripping off of the working class who produce the wealth in order to fill the boots of the obnoxiously rich. 
It's time the trade union movement rose up on its hind legs, mobilised workers, organised in communities, and fought to implement the policy agreed unanimously at the recent Trades Union Congress, "for a £10 per hour minimum wage for all workers".

It isn't asking the earth, in this fabulously rich country. It wouldn't mean workers on £10 an hour could wallpaper their living rooms with £50 notes! But it would transform the lives of millions, including the million people who relied on foodbanks for handouts last year - many of them in jobs.
The SSP is dedicated to fighting poverty pay. We are out to abolish the accompanying obscenity of Zero Hours Contracts. We are constantly told that the economy is recovering from the aftermath of the 2008 financial crash. Workers haven't seen a share of any such recovery. But since profits are booming, and the Fat Cats are bursting with gluttony, we are in all the stronger a position to demand a bit back from the wealth created by workers in the first place.

Right now, workers on the pathetic 'adult' minimum wage of £6.50 would have to toil for 363 years to earn as much as the average FTSE 100 Fat Cat gobbles up in a year. Not a very realistic option! 
Join the SSP and fight for £10 an hour now - for all over 16, scrapping age wage discrimination, and with equal pay for women. £10 an hour is not just modest, but entirely realistic, provided we organise and fight for it. 

Monday, 12 January 2015

TORY CLASS WAR ON WORKERS' RIGHTS



Anyone who doubts we are in the midst of a class war hasn't been awake recently!
The Tory party election manifesto for May's Westminster general election includes an open declaration of continued class war by the rich on the rest of us. That applies to most of their aims, but specifically new anti-trade union measures, a de facto ban on the right to strike for millions of workers, especially in the public sector.It comes as no surprise to trade unionists or socialists, but it highlights the need to struggle or face starvation.

The Tories want to legislate a 40 per cent threshold of all potential voters - NOT just those who ACTUALLY vote - in any union ballot for industrial action, before workers can take lawful action in self-defence from the government's escalating assault on their jobs, wages and conditions.


RIPPING UP OUR RIGHTS

The Tories have already ripped apart the few remaining rights we have at work.
Prior to the 2010 elections, the UK already boasted the most vicious, reactionary, anti-worker employment laws in the whole of Europe - after not just the 1980s Thatcher Dark Ages, but also the subsequent 13 years of Labour governments. Tony Blair shamelessly boasted of "the most restrictive employment laws in Europe", as his government unleashed a profit-crazed, totally deregulated banking and business regime on the population.

Then the present Westminster Coalition was foisted upon us in the rigged 2010 election outcome - rigged, because nobody was ever asked to vote for a Tory-LibDem coalition, and many were stupid enough to imagine voting LibDem was an anti-Tory vote!

Cameron and Clegg's Westminster boot-boys have trampled on the rights of workers in a systematic crusade to rob our wages, pensions, public services and jobs, so the rich can get obscenely richer.

PRICED OUT OF JUSTICE

Fees for taking cases of workplace mistreatment to Employment Tribunals have priced workers out of any pretense of justice. The Citizens Advice Bureaux report a fall in the number of new cases submitted since fees were introduced (in 2013) from an average 48,000 a quarter to 13,612 in the third quarter of 2014.
Cash is the chief barrier - and those workers not in a trade union are totally defenceless, as they'd have to fork out up to £1,200 just to get a Tribunal case heard.

In the CAB survey, 4 out of 10 workers with an issue they'd like taken to a Tribunal only had £46 a week left after paying their essential bills, meaning they'd have to save up for 6 months just to pay the fees for an Employment Tribunal - with no guarantee of success either, of course.

BLOCKING THE RIGHT TO STRIKE

Recently the Tories and LibDems introduced a rule that industrial action ballots require a turnout of over 50 per cent. That in the context of clamping down on the ability of unions to meet or function in workplaces. Most notoriously, the same government has abolished the facility for union membership fees to be collected from civil service workers' wages - in an attempt to smash the socialist-led PCS union - accompanied by removal of facilities for elected PCS reps to represent their members at work.

Now the Tories want to add the clause that unless over 40 per cent of all potential voters in such a ballot actually vote for it, any industrial action is illegal, and union funds could be seized.

They want this to apply to workers in the NHS, transport and fire services. Their excuse is that these services are 'essential' - something the same axe-wielding capitalist politicians deny in action as they slash jobs and public service provision in all these sectors.

LEGAL WEAPONS IN WAR ON WORKERS

Their aims are nakedly obvious. As the Tories gear up to force through the remaining £55billion in public sector cuts of the £90billion total that they've previously declared, they want to crush the resistance of workers in the frontline.

For instance, the Coalition has already shut down 39 fire stations since 2010, and shed 5,000 firefighters' jobs - so they want to neuter the ability of the Fire Brigades Union to fight back, as they are currently doing through strike action in several regions.

As they impose even more pay cuts on public sector workers who've had pay cuts for 6 or 7 years, the political arm of capitalism want to make collective action to win better pay legally impossible.

LEGALISED SCABBING

Alongside the 40 per cent threshold, the Tories plan to end the current restrictions on the use of agency workers as scabs during industrial action - so they can dragoon desperate people into undermining the conditions of fellow-workers, knowing full well that agency workers feel helpless and without rights in many cases.

And they want to 'review' minimum service levels during strikes, so as to prevent total shutdowns. Over the years I've often encountered situations in the likes of local government and the NHS where strikers' unions have had to agree levels of cover for emergencies during the strike that actually meant MORE staff on duty than on the average day before the strike, such are the appalling levels of under-staffing! Now the Tories want to turn the screw even tighter, as part of a package to effectively outlaw the right to strike for millions of workers.

MPs AND MORALITY!

The MPs who want to further shackle workers have absolutely no moral basis for their 50 per cent and 40 per cent thresholds on union votes. These chancers enjoy full rights and resources to put their case in the media and at meetings in a fashion workers' union representatives can't even dream of being allowed to do in their workplaces.

They spend £millions on election propaganda - on top of their free access to compliant, sycophantic media, owned by the same billionaires who use the mainstream media to smear and demonise trade unionists.

NO GOVERNMENT GOT 40%

But despite all these advantages, those MPs who have hamstrung workers' unions with their anti-union laws can't even get the kind of share of the vote they want to impose on the unions.

Since 1945, not a single one of the successive Westminster governments got over 50 per cent of the votes cast, let alone a majority of the entire electorate.

In fact, not one UK government since 1945 has gained the votes of over 40 per cent of the electorate - the threshold the Tories plan to impose on union ballots.

In the 2010 Westminster general election, 433 out of 650 MPs gained their bloated salaries despite getting less than 50 per cent of the votes cast.

Cameron's Tories only gained 36 per cent of the votes cast in 2010, in a 65 per cent turnout of voters - meaning these capitalist dictators only got 23.5 per cent of the electorate to vote for them! And that's across the UK, not Scotland, where they were overwhelmingly rejected.

Even if you distort reality by adding on the LibDems' share (a distortion, because not a single MP was elected as a Tory-LibDem candidate), the Coalition still only managed 38 per cent of the electorate.

SCOTLAND 1979

The 40 per cent con-trick is especially bitter-tasting in Scotland. In 1979, a clear majority of voters favoured a Scottish parliament, but were denied their wishes by the '40 per cent of the electorate' threshold that had been imposed on that year's referendum. Scots were denied a parliament for another 20 years.

NO TRUST IN LABOUR

Trade unionists and socialists must resist these escalated attacks on workplace rights by every available means. But relying on a Labour government is not one of those means.

It was Labour in government from 1997 to 2010 which retained Thatcher's brutal package of anti-union laws. It is today's Labour party that refuses to pledge repeal of these laws.

It is today's Labour party that pledges to cut public spending every single year they are in office until they have cleared the public deficit - making workers and communities pay for the debts created by Labour's £1.3trillion bailout of the bankers that the same Labour government had given free rein to 'get rich quick'.
In fighting these draconian additions to the worst anti-union laws in Europe, trade union leaders should give workers some confidence by declaring that where the issues demand it, the unions will simply defy the anti-union laws and take decisive action to defend workers. These are laws imposed by governments elected by minorities, ruling in the class interests of the 1% who own the bulk of the wealth created by the working class in the first place.

WORKERS' RIGHTS AND SOCIALISM

Working class people need to shape their own future, demanding full democratic rights at work, through their trade unions, community organisations, and by building a mass socialist party.

The SSP has consistently fought for workplace democracy, including the rights of free trade unions to function, and the right to take action by a majority vote after full debate.

As long as we are dominated by an economic system that seeks maximum profit for the few, workers will face attempts to castrate their unions and ban their rights to resistance. We need to combine the struggle for workplace rights with the broader battle for democratic ownership and control of the economy - for socialism.

Wednesday, 10 December 2014

£10 NOW - outlaw poverty pay!


Poverty scars the face of Scotland. Poverty pay is at the heart of it. And the only thing more ugly than the national scandal of a million Scots struggling to survive on pitiful incomes is the fact there's absolutely no excuse for it. 
We live in a fabulously rich country - officially the 14th richest economy on the planet. A nation with a super-abundance of energy resources; a net food exporter; a leading centre of life sciences, with several world class universities; one of the world's financial centres; home to many advanced industries - and the priceless asset of a skilled, educated working class.
Scotland now 'boasts' its first billionaire, but is shamed by 220,000 kids living in poverty, a thousand foodbanks issuing handouts to the desperately hungry, and one in three households shivering their way through another winter because of fuel poverty - in a nation that has the potential to become the Saudi Arabia of green energy production! 
The ugly twins of poverty and inequality are a national disgrace, and we need urgent action to banish them from the face of Scotland.


Poverty kills
On a global scale, a child dies of poverty every 3 seconds. That's a devastating indictment of the system of capitalist economy we live under, a system that knows everything about profit for the tiny elite and nothing about the needs of humanity. A system where 65 multi-billionaires possess more wealth than half the global population.
A bit closer to home, the capitalist system of markets and profit means the richest five families in Britain have more combined wealth than the poorest 12.4 million people in the UK!
In the case of Scotland, the richest ten fat-cats have grabbed £13billion between them, just short of half the entire annual budget of the Scottish government. 
We live in a brutally class-divided society.

Forms of poverty
There are several sources of poverty in Scotland, all of them easily solved by a government with the vision, courage and political will to carry through sweeping change to the ownership of wealth.
Pensioner poverty needs to be eliminated by a decent level of state pension, in answer to the crime of older people being unable to heat and eat, after a lifetimes' contribution to society.
Fuel poverty is not for lack of resources; it's because the Big Six energy giants that dominate domestic supplies are ripping the profit out of us, jacking up prices to feed their greed for profit. And the green energy sector is equally a source of obscene profit for big landowners granting us a corner of their landed estates for a few wind turbines - paid a fortune through 'green taxes' on our electricity bills - and multinational marine engineering companies. 
Public ownership of all forms of energy, turning our natural resources into a public service, is at the heart of a solution - alongside public ownership of the construction industry, investment in free home insulation and the building of 100,000 new public sector homes for rent in the lifetime of a Scottish parliament, to the highest environmental standards.
The Westminster dictatorship of and for the rich are crucifying people on benefits, with even worse to come after their announcement of another £25billion cuts over the next two years. We need a serious, resolute campaign of resistance to this butchery, demanding a welfare and benefits system that protects people in need, instead of demonising the poorest, as part of their divide-and-rule strategy against the working class.



Poverty pay the biggest cause
But underlying all these sources of poverty is the biggest of them all: poverty pay.
An absolute majority of those below the breadline live in working households. Far from being a route out of poverty, having a job nowadays is one of the chief sources of being poor!
The cold statistics cannot begin to convey the stress and strain of working to stay poor - in a fabulously rich country. Over one in five workers (22%) in Scotland earn less than the so-called Living Wage of £7.85 an hour. That figure rises to 25% of women, and rockets to 43% of us who work part-time, and an appalling 72% of workers aged 18-21.
The wage freeze in the public sector has meant zero pay increases for millions for several successive years. With rip-roaring real-life inflation on the daily essentials of food, fuel, rent and transport, this means an Ice Age of pay cuts. 
On average, wages have fallen by £50 a week for every worker since 2008, when the bankers brought the economy to the brink of collapse and were bailed out from the public purse to the tune of £1.3trillion. It's publicly-funded bonuses for the banking executives, pay cuts and job losses for the rest of us (including bank workers!).

Minimum wage pittance
Back in the mid-1990s those of us who later founded the SSP fought for the introduction of a statutory national minimum wage to banish poverty pay. We welcomed its introduction in 1999. But from day one, the Labour and subsequent Tory governments made sure the national minimum wage was at rock bottom level, and included an outrageous batch of exemptions and exclusions. In particular, the lower youth rates have blighted a generation of workers seen by employers as a source of even cheaper labour to boost their profit margins, bosses' bonuses and big shareholders' dividends.
Right now the levels of legal minimum wage are a scandalous route to exploitation: £6.50 at 21-years-old; £5.13 for 18-20-year-olds; £3.79 for workers aged 16-17; and modern slave labour on £2.73 for Modern Apprentices!

Mass armies of the low-paid
Instead of being the legal minimum, with higher rates for many workers negotiated by their trade unions in free collective bargaining, these basement level wages have increasingly become the norm.
The biggest concentrations of poverty pay are retail, hospitality and care services. So it's not just a case of small, backstreet sweatshops ripping profit out of super-exploited workers. Huge armies of low-paid workers are producing £billions in profit for multinational giants - who are aided and abetted in their exploits by the government's minimum wage legislation. 
For example, in the pre-Xmas spending spree, with the commercial frenzy of 'must have' advertising bombarding low-paid families, retail workers are pounded into doing extra shifts - part-timers on flat money with no overtime premiums - to feed the tills of a handful of giant firms that could well afford a decent living wage for all. For instance, Tesco's are driving through all manner of cuts to terms and conditions for their workers, whilst paying just above the minimum wage, but whinge about 'only' enjoying profits of around £1.4billion this year! 



Ban Zero Hours Contracts
One of several devices used to maximize profits and minimise wages is Zero Hours Contracts. A brutal system of being at the beck and call of your employer, unsure of what hours, if any, you get next week; a recipe for mayhem in daily life. They should be banned outright - not just amended or reformed as proposed by Labour in their weasel words about "ending exploitative Zero Hours Contracts". Workers need guaranteed contracted hours, part-time or full time, and a decent hourly rate of pay guaranteed, as negotiated by fully recognized trade unions.

Living Wage 
The current minimum wages of £6.50, £5.13, £3.79 and £2.73 are a criminal guarantee of poverty for workers. And although the much-trumpeted Living Wage of £7.85 is a very welcome advance on these paltry incomes for the hundreds of thousands scraping by on them, it is not only still inadequately low, but fatally flawed by one simple fact: the Living Wage is entirely voluntary and not legally enforceable.
It is laudable that the Scottish Living Wage Campaign has helped cajole three times as many employers into becoming Accredited Living Wage Employers during 2014. But to highlight the problem of it not being a legally enforced minimum, that means it has merely risen from 23 to 60 companies in Scotland paying the Living Wage. Not a single one of them is in retail, one of the two big centres of poverty pay. And some of the same outfits might pay the Living Wage to their direct employees, but rely on lower-paid contract workers from firms not paying the £7.85.

£10 now!
Since our formation in 1998, the SSP has campaigned for a legally enforced national minimum wage for all at 16, calculated on the formula of two-thirds median male earnings. In today's figures that is a minimum wage of about £10 an hour. That is also the figure unanimously agreed at the recent British Trades Union Congress.
Some might say it's unrealistic. But nothing is realistic unless you're prepared to fight for it! 
And it's extremely modest compared to the cost of living. It's modest compared to the fact that if even the (paltry) current minimum wage had kept pace with the rise in income for directors of the top 100 companies since 1999 it would now be £18.89 an hour!
But should it apply to workers and apprentices from 16 upwards? Yes! When did you last see special discounts on the price of clothing, food, footwear or rents for the 16-21 year olds?! Abolition of the lower youth rates is a key part of banishing super-exploitation. And of course it needs to be coupled to a crusade to unshackle the trade unions, by repealing all the anti-union laws, allowing free collective wage bargaining by workers' unions, so that additional skills, responsibilities, anti-social hours of work and experience can be rewarded by rates above the national minimum.

Subsidies to low-paying profiteers
What about small firms that say they couldn't afford to pay £10 an hour to the handful of staff they employ? We would argue for open public inspection of their accounts, to look at wages, bosses' bonuses, profit margins and conditions of work. If a small firm is not a backstreet death-trap that deserves to be shut down and their workers redeployed, then the government could subsidise genuine cases from taxation of the rich and big business to help them afford to pay a legal £10 minimum. 
Right now we have the opposite, where it is mostly big, profit-hungry companies who are being subsidized by taxpayers to exploit their workers with poverty pay, through the likes of Working Tax Credits. We should turn this situation on its head, force big companies to dip into their profits to guarantee a living wage of £10 at least, and help smaller, socially useful businesses flourish with decent-paid jobs.

SSP: the workers' party
None of the mainstream political parties are willing to confront the national crime of poverty pay. The Tories and LibDems are opposed to national guaranteed minimum wages on principle. Labour is trying to appease the working class who are deserting their New Tory agenda by promising an £8 an hour minimum - but try to hide the fact they only aim at this by 2020, meaning it would barely sustain the current, pathetic £6.50 rate when you account for inflation.
The SNP say they support the Living Wage, which is very welcome, but also very limited as it's entirely left to the whims and fancies of company bosses rather than enforceable by law. 
And the SNP have belatedly joined the call by the SSP for minimum wage levels to be devolved from Westminster to Holyrood - but in the SNP's case only so that its level "will rise by at least inflation". Based on the bogus official inflation measures of today, that implies a pathetic 13 pence an hour rise on the current 'adult' minumum wage of £6.50!

Act on TUC policy 
The SSP is determined to make this issue the centrepiece of Scottish politics in 2015. We are demanding £10 now - not in 2020 or some distant date beyond that. The fact the TUC has voted "to campaign for a £10 per hour minimum wage for all workers" - with not a single union delegate opposing it - adds powerful potential force behind this battle for a decent living minimum wage.
The SSP stands up for the working class. We are Scotland's working class party.
Join the SSP in the campaign for £10 now, to outlaw the crime of poverty pay and Zero Hours Contracts. We live in a fabulously rich nation, but one scarred by the twins of poverty and inequality. We need to organise and demand a massive redistribution of wealth. The guarantee of secure jobs with at least a £10 hourly rate is a measure that would transform the lives of millions currently swimming in a sea of poverty and insecurity.