Financial crisis: UNISON demands.... Two hours later Gordon answers

The response to the financial crisis must bring a fairer society and invest in the vital role of public services, says National Executive member JANE CAROLAN

On 8 October, UNISON's National Executive Council (NEC) debated the union's response to the financial crisis and less than two hours later Gordon Brown had given in to our demands, at least partly!

But the situation in which we as workers find ourselves is no joke, as the economy crumbles. UNISON is the public sector union and we need to demonstrate to our members that in the midst of the current financial turbulence we are representing their interests.

Newspaper headlines have concentrated on the meltdown in the banking sector. While it is difficult to feel any sympathy for the bankers in braces with their inflated and ill deserved bonuses, the outcome of a failing banking system affects every ordinary working person.

Their greed and irresponsibility threatens our living standards and future security. Jobs, savings, pensions, homes and employment are now at risk.

Bubble burst

For thirty years we have suffered by deregulation, privatisation, tax cutting, and tax evasion.

That era, of "Neo Liberal" economics, has seen widening inequality and a greater concentration of wealth in the hand of the few. That bubble has burst.

Public services and those who deliver them are especially vulnerable. Public services, as a statement of the obvious, rely on public sector investment. An economic slow down reduces the resources available for necessary investment, and the reliance on PFI schemes is called into question, when the private providers have been bought up by private equity and laden with debt, leading to the abandonment of investment.

Equally crucially however is the role of the public sector as the main engine sustaining demand in the economy. It is clear from history that when markets fail that the public sector is left to pick up the pieces. Public services are therefore fundamental to resolving any crisis, and the role of the state absolutely crucial, something that David Cameron has so far failed to recognise.

When financial systems wobble it has always been the public sector that has led the way.

NEC demands

In terms of immediate steps the NEC called for

• Windfall tax on energy sector profits with price controls
  
  
• Measures to prevent homelessness and evictions, giving local authorities new powers
  
  
• An increase in public spending to meet social need and counteract the private sector downturn, with a return to direct and accountable public sector investment.
  
  
• A cut in interest rates and a change to the mandate of the Bank of England monetary policy. (This is the one Gordon delivered on right away)

In addition, we believe that any bail out in the banking sector should entitle the public to share in the benefits of any recovery. It is clear to everyone that there needs to be an expansion of effective regulation based on accountability and responsibility, not the current, city driven toothless watchdog type and an end to the irresponsible destructive bonus culture.

We all have bank accounts and we all have worries over the future of our finances. But any bail out of the banking sector must not just bail out shareholders and city gents, while leaving the rest of us at the mercy of another Great Depression.

Gordon Brown spoke at the Labour Party conference a few weeks ago about the need for a fairer society. He now has the chance to match his words by his deeds.

Within the public sector, there are particular problems in those pensions' funds that are invested in the stock market, where the value of the asset base is threatened by the down turn. Given that those funds represent the savings of public sector workers, it is clear that protective measures need to be adopted to cope with the current crisis.

Vital role

Our members, in common with other working people face pay cuts, recruitment freezes and redundancies over the next few months, as well as rising food prices, fuel prices and housing costs.

Public services have a vital role to play in protecting individuals' families pensioners and communities from the worst effects of the down turn in the months ahead.

Now more than ever we need public services to carry the economy through the difficult times and to ensure greater social justice in the years ahead. It is only UNISON that is drawing attention to the need to ensure that the public sector is central to rebuilding the economy, and making sure there is a counterbalance to those who want public money but who want to see the system continue with business as usual. We will continue to do so.

(See the full NEC statement on the UK website at www.unison.co.uk).

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