UNISON National Housing Seminar 2011: "We Ain’t Seen Nothin' Yet"

Keynote speaker, Heather Wakefield, Head of UNISON Local Government. (Usual health warning about the accuracy of my hurriedly typed notes) "It seems to have been a very long year. So much destruction has taken place. We now know that Nick Clegg “cries”. Bless his heart. His cabinet of millionaires that wreaks our welfare state. £80 billion in cuts. With no mandate to do so. Before the election Nick Clegg said not a single front line worker would be affected.  Check out Richard Murphy’s excellent blog on taxation. The Tory minister who boasted that these are cuts that “Mrs. Thatcher could only have dreamed about”.

This financial crisis was caused by banks and financial services. Who caused a massive reduction from 60% to 35% in the share of wealth. This led to the debt crisis. They lent mortgages to those who could never pay for them. It was not us, not you, that caused this crisis - but the friends of this Cabinet. They are proposing massive cuts in housing and people’s rights. Pay cuts, even though Local government pay is the lowest in all public services. The new White paper that will propose that all public services in England will have to be put out to tender. Also the review of “public duties”. We ain’t seen nothing yet - I am very sorry to say. We all know someone who has been made redundant. Many Tory and coalition councils don’t have to cut as much as they need to - they are not necessary. Thanks to Pete Challis for his work on educating branches and regional organisers on Council finances and show it is possible to not make such cuts. There are 3 things to do

1. Get technical – get on top of budgets.
2. Get political. There has been a lot of disengagement by branches in politics - especially in England. Nowadays a lot of branches do not think they should engage politically but I think we should be doing this. We have to use the local elections to give the coalition a “bloody nose” if we can. This is essential. Certainly not everything was rosy under a Labour government and Labour councils, we all know that, but just think of the difference between now and then. We have to undermine them.

3.Massively increase density. It is around 50% in local government but below this in some branches. We cannot allow our industrial bargaining position to fall in line with lower density. There is no excuse for any reduction in density. We must build organisation and strength. We have got to use our industrial muscle only when we can and when it will achieve what we want it to do. Industrial action is an important weapon. I’ve been told off in the past as being too keen than some about strikes but if we have industrial action that does not deliver – this does not improve things. If we have industrial action over pay or pensions we need to get our records updated. We cannot afford to take action that is not successful. That is what the government wants us to do – to get egg on our face. Take precipitate industrial action.  

UNISON branches are doing an amazing job day in and day out. We may not stop every redundancy. But we have seen success by taking councils on over finance, equality impact statements and campaigning. We have had successful industrial action and I am sure we will continue to have more. This is a government who despite being hard nose bastards can be forced to backtrack and do a “U turn”. Have seen this over Forests but also plans to cut housing benefit for those who are unemployed. There was a partial victory over EMA and the “break” over plans to privatise our NHS. It can be done. Got to be very canny about the way we do it.

Our primary job is to defend our members - we are a trade union but we must also win the argument with the public against privatisation. We cannot afford it. Public money goes down the drain; millions spent on drawing up processes and increased money for senior management. Don’t forget the shareholders premium. Privatisation only delivers cheaper services on the backs of cuts in our member’s wages and conditions. They have got rid of the 2 tier code so new starters will not be paid decent pay and terms. Decent Pensions will also soon go. Privatisation is the biggest threat face the union.  

So what to do? March 26th was a great day. In itself it may have affected the NHS proposals. They, the government, would love us to wear ourselves out by constant marching and industrial action. How do we build on March 26th? How to keep the pressure up on the government and coalition councils? Develop a massive movement against this government from the bottom up. There is no other alternative. We can have another March 26 and this would not change the governments mind. We in housing have to work with tenant and resident groups, voluntary organisations and others and not just fight for pay and pensions. The groups who are taking action against tax corruption such as London Citizens and UK uncut. Important social movements that are born of the same feelings as us. They are different from us. We in the unions are big organisations and are use to leading, but we have to work with others. There are problems with the politics. But by working with other unions and peoples who feel like us - we can derail this government". 

UNISON National Housing Seminar 2011: City of York

This year the seminar was held in York. I went up last night and this morning before breakfast went for a run (aka slow jog) around it’s almost complete City walls (see picture).

This was quite a fitting start in one way for a housing event since apart from the glorious displays of spring daffodils on the grass banks under the walls, you are acutely aware of the huge range of different types of homes and buildings that exists. From the medieval Shambles to the modern scandinavian style wooden fronted low rise blocks. Small traditional family terraces and the mansions with huge gardens next to the Minster.

The housing stock looked in relatively good condition with no obvious graffiti, vandalism or dumped rubbish. The communal washing lines were even in use and it would appear that residents had left clothes hanging up to dry overnight. I am sure that there are problems with Housing in York (homelessness and affordability?) which are not readily apparent. I did wonder how “sustainable” the new housing units would prove and whether they will still be in use in 500 years time.

There were around 100 branch delegates present at the seminar from Council’s, ALMO’s, DLO’s and Housing associations up and down the Country.

The Chair of the UNISON National Housing Forum Nick Olgard welcomed us and reminded everyone about last year’s seminar when we had the then Labour Housing Minister John Healey present, who he called one of the best ever housing minister’s with Graham Shapps. Then we were worrying about possible Tory Housing polices – now we know.

Our first (keynote) speaker was Heather Wakefield, Head of UNISON Local Government. I’ll post on this next.

Get your facts right about the Local Government Pension Fund says UNISON

"UNISON, the UK’s biggest union, with more than 600,000 members working in local councils, today called on consultants and government ministers to get their facts right on local government pensions.  

The call follows a claim by John Balfe, so-called “independent” pensions consultant, that the scheme’s liabilities had increased to £100 billion.  The Communities and Local Government Minister, Eric Pickles, managed to muddy the waters even more by unsubstantiated claims that  ‘town hall pensions are now costing over £300 a year to every household paying council tax."

Heather Wakefield, UNISON Head of Local Government, said:

“Another week, another attack on the local government pension scheme. These so-called independent pensions consultants and government ministers should get their facts right before they resort to crude scare-mongering.

“Eric Pickles is plain wrong. Less than 6% of council tax payments fund pensions. More than 50% is made up of employee contributions and investment returns.

“The local government pension scheme is in good shape, and is a vital way of allowing mainly low paid workers to save for their retirement. A report out this year confirmed that the scheme could cover all its liabilities for the next twenty years, without a single penny more in contributions. What’s more, the scheme invests hundreds of billions in UK stocks and shares every year – a huge boost to our economy.

“With pensions, its vital to take a long term view. It is totally misleading to take an assessment of the schemes liabilities now and make claims for the future that don’t stack-up.  All investments have taken a knock thanks to the financial crisis, but given time they will recover.”

Key facts on the local government pension scheme:

-       The average local government pension is £4,000 per year, for women this drops to just £2,600, or less than £40 per week.

 -       After intense negotiations, a new pensions agreement in local government was introduced in 2008, setting out terms that include workers paying 6.4% of their salary into the scheme.

-       Local councils get most of their revenue from business rates and from central government grants. In reality, less than 6% of council taxpayers’ rates goes towards funding the pension scheme. More than 50% of the cost is met by employee contributions and investment returns.

 -       Research in 2006 showed that if the LGPS did not exist - based only on current pensioners – it would cost the taxpayer £2bn a year in increased means tested benefits and loss of tax revenue. It would also fuel increased take up of NHS and council care services.

 -       Often overlooked is the huge investment power of the LGPS fund. In 2008 the total value of combined assets in England, Wales, Scotland and Northern Ireland, were £143 billion - 60% of which was invested in equities or shares, in UK and global stock markets. In the same year, more than £1 billion was invested in each of the top four FTSE companies. If the scheme were to close, and this investment was withdrawn, it would have a huge impact on the UK economy.

-       The LGPS is in better shape than a most other schemes. Even in the depths of the recession, investments provided nearly £3bn for the LGPS in England, accounting for nearly one third (27%) of the scheme’s overall income. Year on year, the scheme takes billions more in contributions and investments returns than it pays out in benefits. Last year, income from member contributions to the scheme in England alone increased by 15% - outstripping expenditure by £6 billion.

-       An Audit Commission report in 2010 stated that the LGPS could pay out all pensions due for the next 20 years without any further contributions.

More information from UNISON Press Office on 0207 551 1555".

(Hat tip UNISON press release)