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THIS is the first TUC Congress with a Labour government for 15 years. Every union will be glad to see the back of the last government, which attacked trade union rights and drove down workers’ wages.
But we cannot be complacent. The new government has promised a “painful” Budget in just a few weeks’ time and warned of “tough choices” — which has historically proven to be code for misery to be heaped on working-class people.
The Budget, and the Comprehensive Spending Review that follows, will tell us a lot about the true nature of this Labour government. So far the signs have been mixed.
Above-inflation pay rises for public-sector workers this year, as well as the settlement of long-running disputes with junior doctors and train drivers, have created a different environment for trade union relations with the new government — and a welcome contrast with the discredited Tories.
In the Civil Service, we can also be pleased that the proposals of the last government for 72,000 job cuts have also been ditched. PCS members do vital work across public services, and any government — but particularly a Labour government — should work with the staff who deliver government commitments.
The commitments in Labour’s New Deal for Working People, including to ban zero-hours contracts and the disgraceful practice of fire and rehire, will improve working lives if implemented without dilution. The downpayment of immediately removing the Conservative proposals for minimum service levels is again a welcome sign.
But any trade unionist would be naive to ignore the statements being made by a succession of ministers.
These Labour ministers need to understand that our members and the services they deliver have suffered years of austerity. Any further cuts will lead to services collapsing.
We already know there are huge backlogs in a number of areas — from asylum processing to the NHS waiting lists to the courts. Public services need a substantial injection to resource just to keep functioning. Talk of further restraint or austerity is preparing for disaster, which will cost more to rectify.
Even with a small above-inflation pay rise this year, many of our members will still be struggling after years of pay freezes and pay caps which have eroded living standards, especially as housing costs have ballooned.
That’s why our union has tabled motion 49, which will be composited with other like-minded unions, for a campaign of pay restoration across the public sector.
Research commissioned by PCS shows that boosting the pay of public-sector workers on lower and middle incomes more than pays for itself, by increasing demand in the economy — boosting government revenues. It also has a small beneficial impact in driving up private sector wages.
We welcome the statement from the TUC president Matt Wrack that “there’s got to be some programme to restore people’s living standards, particularly in the aftermath of the cost-of-living crisis.”
Labour has come into government with its number one mission to deliver the highest sustained growth in the G7. It has no chance of doing that unless and until it boosts people’s incomes. There is no stronger economy without the stronger wages that provide extra disposable income.
No-one is expecting Labour to deliver this overnight, but the whole trade union movement will want to see a framework for boosting pay in real terms — as well as tackling entrenched pay discrimination.
In many areas of the public sector too, crises of recruitment and retention cannot be solved without increased pay. Functioning public services are the bedrock of growth, not an obstacle to it — so Labour must reject the siren voices, some within its own ranks, calling for a new round of austerity.
In its manifesto, Labour promised to “take action to reduce the gender pay gap.” It should begin with its own staff — the gender pay gap in the Civil Service remains too wide. Labour also pledged to “introduce disability and ethnicity pay gap reporting for large employers.” Again, in government it should lead the way — in the Civil Service the disability pay gap widened to 8.4 per cent last year. Labour should lead by example.
But much of the worst exploitation of workers in the public sector happens in the hands of outsourced providers. So we welcome the commitment to the “biggest wave of insourcing in a generation.”
Again the government should start at home with its own staff being paid wages so low they have to rely on universal credit to top up their wages.
My union wants to see this agenda — of better pay, restored trade union rights and insourcing — delivered.
Fourteen years of failure have should have taught us all that an economy built on low pay, insecure work and underfunded public services will fail, and lead to the political obliteration of those delivering it.
We will work with other like-minded unions to ensure this government delivers for our members and the services their hard work provides.
Fran Heathcote is general secretary of the Public and Commercial Services union.