Socialist Outlook

Socialist Viewpoint, International, Socialist Outlook and their supplements, 1984–2002

Bust the pay freeze

Socialist Outlook no. 32, November 21 1992 · 725 words

Unemployment

NORMAN LAMONT'S autumn statement means misery for millions. Tory strategy in presenting the statement was to stoke up fears of benefit cuts, and when they didn't materialise to make people think that the poor had got off lightly.

In reality the poor are being hammered. The one and a half per cent pay maximum is going to push down living standards amongst hundreds of thousands pitifully paid public sector workers - including nurses, local government workers and railworkers.

But the second vicious attack is on the council tax. Councils have to keep pay to the one and a half per cent norm, or face severe capping. A new round of redundancies and cuts is being prepared in local government, whích again will hit low-paid workers and council services to the poor.

Using the 1979 methods of calculation, unemployment is today four million. And through the next year that figure is set to push remorselessly towards 5 million - much higher than during the 1930s slump.

Manufacturing

Lamont's statement did nothing to restart the economy. Lowering interest rates doesn't workany more because what matters is the rate at which the banks are prepared to lend to business customers. In any case, manufacturing is so flat on its back that only a giant programme of state-led investment would begin to solve the problem.

To the fight to defend the miners and resist redundancies must now be added a campaign to bust the pay freeze. Prices are starting to rise, especially on basic good like food Living standards are going to plummet if the MINERS:

MAJUR NOT THE pay freeze isn't broken.

While Major's government is accident prone and further revelations in the Iraqgate scandal could destabilise it, Tory strategy for survival is becoming clear.

A one-year deal over coal is aimed to slow the pit closure programme; if the Tories have their way the ten immediately threatened pits will close, and the death of the 21 will be drawn out - in an attempt to defuse public outrage.

in addition Major has decided on a long drawn-out ratification of the of the Maastricht treaty to prevent a convulsive crisis wrecking government stability.

But there is another major obstacle in the government's way - the Council Tax. Lack of government subsidy means that for millions there is going to be a dramatic increase in their bills compared with the Poll Tax. Howls of policies carried out informally by the big supermarkets like Sainsbury's, Safeway and Tesco - all of which make vast profits. Meanwhile John Selwyn Gummer, the agriculture minister, announced a model E10a week food bill for the poor. It includes absurdities like one fresh egg every two weeks and half a fish finger a day.

pay freeze. actly the kind confidence. Andrew Ward them open. freeze action in possible on that day.

outrage will rock the government when the first bills start to arrive. In this situation there is now an urgent need to link up the struggles, both against redundancies and the Alliance Workers must demand union leaders build a public sector alliance. But here and now, using miners' support groups, links on the ground can be created between miners, hospitals workers, and all other workers in struggle. The decision of miners to lend their support to protest action at Burnsalls, the Birmingham strike of Asian car component workers, is exof thing which can begin to rebuild collective action and The pay freeze will primarily hit next year's pay round. Unions will be formulating claims in the next few months; militants must demand pay increases to meet the rise on the cost of living, indexation of awards and action to fight low pay. Occupation Attention will be rapidly focused on the ten threatened pits; in the end only industrial action, including occupation of any pit threatened with immediate closure, will keep While protest action against pit closures is vital the demand must be pressed for the TUC to call a one day general strike to demand an end to the jobs massacre and an end to the pay The TUC have called for a day in support of 'national recovery' on 9 December. It is pitifully inadequate, and aimed at being a joint protest with employers, wet Tories and ›ishops. Nonetheless the opportunity should beseized to get whatever strike or other protest new

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