‘If desperate people will take prized possessions to the pawnbrokers, who wouldn’t exchange redundancy pay for a few grand worth of shares?’ – Richard Seymour. Photograph: Peter Brooker/Rex Features
As of next year, the government will make it much easier for you to be sacked. From April 2013, employers will only need a 45-day consultation period before embarking on mass redundancies, as opposed to 90 days. Workers will be charged a fee for bringing unfair dismissal claims to employment tribunals and the compensation for unfair dismissal is to be cut.
This follows George Osborne’s bizarre “shares-for-rights” scheme, derived from proposals made by the venture capitalist Adrian Beecroft. Beecroft’s rationale for proposing a whole series of changes weakening employment protection was the assertion, offered without evidence, that workers use their exiguous protections to get away with working below capacity. Taking these protections away would supposedly boost productivity.
On the face of it, any proposal to squeeze workers harder is unlikely to be popular. But Osborne’s scheme took the measures a step further, attempting to articulate them as part of a wider hegemonic Tory agenda. By offering cash, in the form of shares in exchange for rights, he hoped to conscript popular support for an attack on the remnants of social democracy. The idea was that hordes of workers, anxious about their low income and accepting the new realism of depression Britain, would happily see their rights turned into commodities. After all, if desperate people will take prized possessions to the pawnbrokers, or borrow from payday loan sharks, who wouldn’t exchange flexible working or redundancy pay for a few grand worth of shares? Why shouldn’t everything be for sale? At length, why not allow workers to sell all of their rights for a determinate period? Indentured labour could be an idea whose time has come again.
This prospectus for popular neoliberalism floundered for a number of reasons. Businesses were sceptical (paywalled link), and of those surveyed by the government only a very small number of companies were considering taking it up. The idea divided the coalition, and the Liberal Democrats, desperate to give the impression of being something other than a faction of the Tory party, insisted that such policies as were implemented would be far removed from Beecroft’s proposals. Beyond the Tory right, moreover, the move appeared to have little resonance, and even aroused some controversy due to the increased opportunities for tax avoidance it presents.
Nonetheless, the assault on employment rights and labour costs is proceeding apace (paywalled link). The Tories would prefer it if the plebs saw things their way, but they don’t seriously believe they have an alternative. Moreover, while businesses may raise an eyebrow at straw-clutching schemes that pander to the right, they are in favour of anything that makes it easier for them to shed staff.
Part of the justification for this is that Britain’s global competitiveness depends on reducing the cost of labour relative to output, or “unit labour costs”. The Bank of England notes that unit labour costs have been rising during this recession. One should not confuse this with rising wages. Hourly labour costs, while rising in Europe as a whole, have fallen in the UK. What rising unit labour costs show is that private sector productivity has been falling sharply throughout the crisis.
This is in contrast to the effects of previous recessions, during which fewer workers doing more work led to a dramatic increase in productivity. The reason for the slump in productivity this time is that private sector firms have actually retained large numbers of staff. And despite a million jobs being lost in the first years of the recession, most were quickly recovered. Employers are responding to this recession differently than in previous recessions. They are anxious not to lose skilled workers, as training new ones will be an added cost when the recovery begins. So rather than fire people outright, they prefer to under-employ them or hold their pay down. This is why hourly labour costs decline while unit labour costs increase.
Falling productivity has nothing to do with workers skiving, and everything to do with the parlous state of the economy: it would increase as growth resumes. Attacking employment conditions will not boost productivity, but it will probably reduce labour’s bargaining strength and help suppress wages. Yet through the optic of “competitiveness”, a great many self-interested dogmas can appear to be rational. Everywhere, the experts and IMF officials say the same thing, from Greece to Portugal to France – cut labour costs in order to be competitive. Preposterously, advanced EU economies are expected to compete with India and China on wages.
The government and the Bank of England are betting on the idea that as Britain cuts workers’ consumption, increased exports will make up the loss of purchasing power. The reality is that Britain has no future as a major exporter. Among EU member states, it performs badly.
The truth increasingly appears that those in charge don’t have a coherent remedy for the system’s failings. They are just determined to ensure that workers bear the cost.
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Let the Politicians ” Experience ” what it is Like to have No Money
and then they might Cease to be such Arrogant Ignoramuses
BROKEN BRITAIN UNDER TORIES – APPEASEMENT TIME
Cameron’s deceit rears its ugly head again in the guise of child tax credits .He thinks his appeasement of the poorest in society will be gained by introducing a change to the benefit of those earning over £50,000 .But his failing to hit the highest earners is still the core root of his hidden general policy of its them and us .He stated today that he hopes to be Prime Minister in 2020 I am unsure whether it’s his arrogance or ignorance or both that makes him think that it could be possible .This man along with his cohorts have decimated life in Britain as we knew it ,it has been their failings to right the previous wrongs concerning unemployment and the Benefits system ,but continually blames us the Public for their failings .
http://www.brokenbritainundertories.com
BROKEN BRITAIN UNDER TORIES
At present the Government are debating whether there should be more stringent control over banks ,in a Parliamentary committee today Osborne stated they would look at it next year ,basically dismissing the issue .Why has his attitude to Welfare Reform not had the same response .This Government are at loggerheads with Doctors ,nurses,teachers and anyone working in the public sector especially the police .Our efforts against the draconian cuts are falling on deaf ears ,the police have an Epetition giving them the right to strike ,at present it has 16,778 signatures ,if we give this petition our backing it will make the Government take notice ,they are the only protection between them and us .The Police issue will have a bigger voice then we do on the reforms that are going through no matter what .This Government are using illegal underhand methods to push Welfare Reforms through ,by signing this petition we are backing the next biggest voice to the Government in this country legally. epetitions.direct.gov.uk/petitions/31250 http://www.brokenbritainundertories.com
I Agree with the Need For More Action but the Heart of the Problem
is that Lot in Office
One could Say there is No Limit to the Feckless Slavish Docility of the
Great British Public considering the Avalanche of Rubbish Awaiting
1st of April 2013 unless People Bloody All Wake Up
The sheep are flogging a dead horse but it keeps them happy crying on each others shoulders rather than doing something constructive ,typically British they’ll wake up when its too late ,then carry on crying on each others shoulders even more come 2013
I didn’t use your words Freeman but did refer to facebook bedroom tax site as sheep and got barred from the site – sop we know what we are up against lol
BROKEN BRITAIN UNDER TORIES – SAME MONOLOGUE DIFFERENT RHETORIC No surprise about Thatcher’s plans it was banded about in the eighties you would have to work for your benefits ,there would be charges to enter local parks ,libraries would close ,but unlike now the Tories had opposition from other parties as well as her own .Everything is cyclic there’s nothing new on the table its just taken 30 more years to convince ,by stealth and deceit that the only way forward by Governments is to make cuts ,not mend broken Britain .Creating jobs would redress the balance between the haves and have nots but that would unbalance the class system and give workers a bigger say in Government Policy through weight of numbers and the threat of the withdrawal of labour .It suits all present day Political Parties to get revenue through financial dealings than put their backs into creating something that could cause opposition to their authority same old rhetoric in a different format .www.brokenbritainundertories.com
BROKEN BRITAIN UNDER TORIES IAN DUNCAN SMITH-MORE LIES 31/12/12
Ian Duncan Smith stated today that the Tax Credit system that Labour introduced is haemorrhaging money due to system faults ,fraud and miscalculation to the tune of £10 billion .If that is the case then all he has to do is fix the faults and stop the cuts .The man is delusional or his normal lying self or both .What a home goal ,it’s an argument against the cuts not for them .I suggest he sees a private psychiatrist as a NHS one would probably take longer .
http://www.brokenbritainundertories.com
BROKEN BRITAIN UNDER TORIES – CAMERON AND DEMOCIDE
Democide is the murder of people by a Government ,including genocide ,politicide and mass murder ,of which Cameron is guilty . Democide can also include intentionally or knowingly have a reckless and depraved disregard for life ,this includes many deaths arising through various neglects and abuses ,such as mass starvation ,incarcerating people in camps where they may soon die of malnutrition ,unattended disease and forced labour ,or deporting into wasteland where they may die rapidly from exposure and disease .
The behaviour of ATOS and the Government are bordering on such a policy .
Cameron certainly fits the criteria for this in his daily bombing of Tripoli in Libya through his campaign of mass murder that targeted Hospitals ,Universities ,Television Stations and Civilian Areas
Has it ever occurred to you why Cameron and Osborne are so smug over the Benefit cuts ,the 20012 Riots were a testing ground for things to come ,the Police were deliberately held back and the aftermath was an exercise in dealing with the culprits .Cameron has introduced new Police Powers for the dispersal of crowds ,a wider power of curfew ,facebook , twitter and mobile messaging systems will be restricted .All the cuts will take Place .
Ministers will consider using the Army to take on Policing duties .New water cannons are now on standby in the UK and rubber bullets and indelible ink are at the disposal of the authorities .Police Commissioners are in place to ensure the Police carry out the Political will of the Government .
http://www.brokenbritainundertories.com
BROKEN BRITIAN UNDER TORIES – NO ALTERNATIVE
Ed Miliband was today interviewed on the Andrew Marr show and showed no capabilities of being an alternative leader to Cameron .He repeatedly plugged ‘universialty ‘ as the way forward meaning he totally agrees with Universal Credit due to thrust upon us in October 2013 cutting Welfare Benefits .There was no mention of the influx of a new wave of immigrants ,no mention of modifying the draconian new Welfare system ,just rhetoric hailing Ed Balls as very competent to run the economy but failing to say how Balls robbed the Pension fund of £5 billion ,promised to sell off G4 at the Labour Party Conference and months later reiterated the same promise when G4 had already been sold off and contracts put out for tender to build affordable housing by the Tories ,so someone that can’t even get basics right is to be trusted with the UK economy .
http://www.brokenbritainundertories.com