Socialist Outlook

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

SMASH THE TORIES' PAY PLANS How Tories size up the prospects for pay freeze

· Socialist Outlook no. 40, April 1993 · 2,140 words

UNISON Trade unions Privatisation

A CONFIDENTIAL Cabinet Office paper on the current pay round - seen by Socialist Outlook - shows how the Tories map out a cohesive industrial relations strategy on a class-wide basis, and underlines the need for our side to do the same.

The government, it is apparent, systematically monitors the mood of all key groups of workers. Its assessments generally confirm reports from left activists in the relevant unions. THE FIRST group tackled is those workers who have pay awards letermined by review bodies. These are listed as armed forces (258,000), doctors and dentists (111,000), nurses and midwives (481,000), professions allied to medicine (43,000), school teachers in England and Wales (465,000) and 'top salaries' (2100).

All are being kept within the new pay norm, with the unsurprising exception April, 1993 No. 40 tabled to a sub-committee chaired by former energy secretary Lord Wakeham. union militant in Britain, proving once and for all that pay is a political issue. Tories fully realise that the outcome of all pay struggles - including the current attempt to hold a 1.5 per cent public sector pay limit - depends on the class morale has the potential to shift of the toi • salaries group. The government will pay them 2.9 percent from 1 April, a figure which is technically the deferred second stage of their 1992 award. In public relations terms, this can be dressed up as no rise in 1993.

The report comments archly: "The announcementof the awards drew predictably harsh comments from some unions though there has been little talk of industrial The Unison group (NALGO, NUPE, COHSE) are ... plan ning a public campaign aimed at fording he government to abandon its policy IASUWT have warned that the tea chers' award will increase the likelihood of a vote in favour of boycotting English testing in their forthcoming ballot.

Action "The dramatic drop in the annual RPI increase to 1.7 percent could help to rake the awards more palatable. So fas lespite the strong words, the prevailins impression is one of resignation to the awards. Nevertheless, it may be premature to rule out some form of token in. dustrial action."

The last paragraph proves that the Tories are unfazed by the prospect of the sort of tokenistic campaigning perspec chiefs, and a serious fight is needed to The document, dated 26 February, was victories. But its contents will interest every trade balance of class forces and that working win. The risk of industrial action is raded "low/medium" foi teachers, IHS admin and ancillary staff and am bulance workers.

The next part of the report examines NHS workers not covered by review bodies. These are administrative, clerical and secretarial staff (151,800), ancillaries (108,500), (43,000) and ambulance worken Rejected All these groups have now rejected offers of straight 1.5 per cent increases generally in response to claims for 'substantial' improvements to pay and conditions.

"Management sides have stressed that the offers are final and that they want staff sides to consult their members on that basis. The next meetings are scheduled for 1 April (ancillary staff) and 7 April (administrative and derical staff). Similar 1.5 per cent offers will be made to other groups on the day that claims are lodged.

one part of the working class can boost confidence among other sectors, the government clearly sees that defeats can damage morale across the movement" rapidly after significant industrial An appendix covers all public sector workers, showing whether or not ministers have agreed a strategy, what the risk of those workers breaching the pay norm is, and what the chances of industrial action are.

Detailed attention is also paid to the private sector, which according to prevailing Tory laissez-faire ideology, should be of no legitimate concern.

"Ministers agreed a 1.5 per cent remit for these negotiations within which there could be some skewing of increase in favour of the lower paid. "The unequivocal opposition of the administrative and derical staff side to the 1.5 per cent limit persuaded the management side that skewing the offer in favour of the lower paid would not increase the chances of securing a settlement. The unions are unlikely to make any further move until the review body awards have been digested by the unions and professional bodies con"It seems unlikely that union members would back any call for industrial action if the 1.5 percent policy is implemented successfully for the pay body review groups and elsewhere. In the same way that Marxists understand that a victory for one part of the working class can boost confidence among other sectors, the clearly sees that defeats can damage morale across the movement. Both take a clear class-wide view plainly lacking "In the same way that Marxists understand that a victory for

Heseltine's pit closures "crucial factor" among union tops.

Talks with some 68,000 Inland Revenue staff are then considered. While these are continuing, the document that the main union involved, TOTES IRSF, has secured a vote in favour of non-co-operation with a proposed performance management scheme.

"The IRSF's change of position is linked to the 1993 pay restraint and has become muddled by their stance on market testing, all of which, they say, makes it more difficult for them to reach an agreement."

Claim

government administrative, NALGO "has already informed employers' representatives that it inends to frame this year's pay claim without regard to the 1.5 per cent public sector pay limit. A similar line has been endorsed by the manuals unions.

"As demonstrated in 1989, the union has the ability to organise effective selective strike action, including indefinite ments However circumstances harements. However, circumstances sanged since then; local authority budzes are more constrained and empierers appear more prepared to stand capeser to resist union pressure. Fighting for survival: London busworkers are thought likely to take only one-day strike action " Leaders or the local covernment em ployers' associations, including the Association of Metropolitan Authorities, have already warned of the necessity of a virtual pay freeze this year.

"The local government management board believes that the big issue this year will be jobs. A recent much-publicised survey by the Local Government Chronicle has forecast that over 30,000 posts in local government are likely to disappear by 1994."

The NALGO strike risk is probably contained on one of the two sheets missing from the copy of the report seen by Outlook. Local authority manual workers in England and Wales, totalling 805,000, are rated a low risk.

Negotiations

British Coal's pay settlement date was 1 November last year, but negotiations have unsurprisingly been postponed: "The achievement of a settlement within the 1.5 per cent limit threatens to be difficult given the background of pit clo sure and privatisation issues... The outcome of the current review of pit closures is likely to be a crucial factor in setting the tone for negotiations."

The government has not yet agreed on a strategy for miners, and rates the risk of industrial action as high.

The situation at British Rail, where 140,000 workers are affected, is a cause for Tory concern: "BR received formal claims from the union on 22 February which centred on the usual "substantial increase' in pay. No offer was made at the formal meeting on 23 February. The next meeting is on 23 March.

"The rail unions are amongst the more militant of the public sector unions and may be more disposed than some others to seck to defy the 1.5 per cent pay limit.

"At present, however, focus is on prospective job losses and the implicationsof privatisation. Disruption over these issues could affect the course of pay negotiations.

Informal talks will take place to discuss the possible structure and distribution of whatever money is available within the 1.5 per cent pay limit. The Secretary of State for Transport will consult colleagues on a remit for these negotiations before any offers are made.

Regarding 21,000 London Underground Ltd workers, we are told: "The Department of Transport is currently considering proposals for this years strategy from LUL. LUL settlements have traditionally followed those at BR, Bibing tie in proposed to consider There is a medium chance of industrial action at BK, LUL and some 7,500 employed by the Civil Aviation Authority, it is reckoned.

At London Buses Ltd, which employs around 12,000, new contracts which lower pay and attack conditions and pensions rights after planned privatisation have been introduced. The TGWU has already organised two one day stoppages in protest.

ome 3000 out of the 7000 employees directly affected have already signed new contracts. It remains to be seen if this croup would oin any action that might take place. Any action is likely to take the form of one day strikes.. emit for this year's pay negotiations has yet been considered.

Other important public sector groups are not considered in the main text, but are graded in the strike risk appendix. Scottish teachers, who number 50,800, are seen as a low strike risk. Atomic Energy Authority industrial grades (some 1,950 peoplé) are a low/medium risk, while workers at British Nudear Fuels (15,000) and manuals at Nuclear Electric are rated medium.

There is thought to be a low/ medium possibility of action from 185,000 PSA grades and 129,000 in NUCP! support and executive grades, while in dustrial civil servants (61,000) are rated low.

Firefighters

Firefighters are considered a high risk, because the 1.5 per cent norm is obviously a direct threat to their pay formula, which was established after national action in 1978. The government admits they have a "medium" chance of breaching the limit!

Attention then switches to the private sector. The cumulative average private sector pay settlements is 2.75 per cent, weare told, but this figure conceals wide variations: "Some public sector groups could seeks to compare themselves with settlements at the higher end of this rathere are hopes for a low settlement in banking sector, with increased emphasis on performance pay. Then the situation at Peugot Talbot car plant, Coventry, is examined.

Peugot twice voted heavily for strike action recently, but ultimately accepted a marginally improved offer backed by officials: "The workforce has been in militant mood since the company announced recently that it wished to make a 12 minute reduction in the 42 minutes per day rest period. Unrest coincides with the imminent launch of a new mid-range model."

Timex

At Timex in Dundee, scene of mass picketing following the dismissal of the entire shopfloor workforce, the report notes workforce's rejection of a package of measures (presented as a peace offering) which included profit sharing counterbalanced by a 12 month pay freeze. A new workforce is being "The US-owned company has made threats of sacking before and not acted on them but, since it no longer needs all its present complement of 400 em ployees because of the state of business, the present situation has given it an op portunity to put its threats into effect.

It also correctly predicted that managementat Yarrow warship yard on Clyin fact happened.

i ne sinke besan at shopaoor Hsuga tion but national union officials, having been accused of lack of leadership by the membership, are not giving it their supor. The last strike was h vears age spute has similarities with those at Peugot Talbot and Timex." No strategy: TUC chief Norman Wills No. 40 April, 1993

Unanswered questions over £150m donations Strangely silent on Tory tax flodles...

Despite subsequent business setbacks, Judge endowed a new business school at Cambridge University with a straight £8m in cash. With no financial worries, his concerns now seemingly centre on getting a knighthood.

Honest

"The problem for Judge is that he is an honest man who values his reputation." Cahill. "The slush fund may not be entirely legal."

He goes on to detail the three funds. The first of these was es. tablished as long ago as 1910 and has mostly been based in Switzerland. It is relatively small and is said to contribute €500,000 a year to the party.

It was set up by landowning aristocrats lobbying against John Major moved to sue Neto Statesman over allegations concering his private life, in this case the writ has not hit the fan.

There is much circumstantial evidence which lends credence to Cahill's contentions. It is known that many donations to the Conservatives are made offshore. Sir Brian Wyldbore. Smith, the 2a ys head of finance for years, set up d special account with Barclays in Jersey to receive these pavments.

This enables individuals with assets controlled from various world tax havens avoid repatriating money to the UKdirectly, which could generate (presumably unwelcome) Inquiries from the Inland Revenue. ( Cahill also asks why so many

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