Wednesday 22 April 2009

Midlands TUC reaction to the 2009 Budget

Responding to the 2009 Budget today (Wednesday), Midlands TUC Regional Secretary Roger McKenzie said: “There is much to welcome in this Budget, particularly action on youth unemployment, some first steps in creating a fair tax system and better support for the unemployed.

“There is some help for construction and a Strategic Investment Fund provides real resources for Monday’s welcome industrial strategy. Pensioners will welcome the increase in capital disregards. This budget clearly acknowledges that the Government has a central role to play in turning the UK into a competitive low carbon economy.

“But it is does not bring the same boldness and vigour to getting the real economy right as the Government showed in dealing with the banking collapse. The biggest drain on the public finances will be continuing mass unemployment and we needed a bigger and better targeted stimulus to the economy today. A half per cent boost in public spending is not enough this year. Next year’s tightening is too much, too soon and is based on an optimistic assumption that the recovery will start this year.

“In particular cuts in public spending – and these are cuts, not efficiency savings – are absolutely wrong at a time when there is a collapse in demand in the private sector.
“So while we can welcome some significant changes in direction and good individual policies, this is still some way short of what was needed to maximise the fight against unemployment and ensure that we emerge from the recession as a fairer, greener and better balanced economy.”

Tuesday 21 April 2009

Nottingham should be one of the first to gain from new jobs scheme, says TUC

The TUC is calling on the Government to inject £2 billion into new work schemes for the long-term unemployed today (Tuesday), the day before the new unemployment figures are due out.

The TUC believes that £2 billion could create at least 100,000 new paid work experience jobs in areas of the UK suffering from high levels of unemployment, and that Nottingham should be one of the first places to gain from the scheme.

The new jobs would be targeted at those finding it particularly hard to find work during the recession, such as the long-term unemployed and young people. People on the work experience schemes would be supported by training opportunities, and given assistance with finding more permanent work and arranging childcare.

Under the TUC proposals, the jobs would last for up to a year and would be offered to those who have been claiming Jobseeker’s Allowance (JSA) for more than six months. Participation in the scheme would be on a voluntary basis. The jobs would be created in areas of value to the community, such as childcare, sports, transport and energy-saving (such as home insulation) and workers would be paid at the going rate for the work.

The TUC believes the jobs could be run by a combination of local area partnerships, unions and Jobcentre Plus, and that costs involved in setting up the programme would more than offset the expense of supporting workers who go on to become unemployed for five or ten years.

The TUC has identified a number of towns – outside of London – with the most people who have been claiming JSA for more than six months. The TUC believes the first 50,000 jobs created through the paid work experience programme should be set up in these areas to get the scheme up and running quickly.

Birmingham (10,000 new jobs), Belfast (6,000 new jobs) and Liverpool (5,000 new jobs) should see the creation of the most new jobs under the TUC’s proposals. Glasgow, Newcastle upon Tyne, Sheffield, Manchester, Nottingham (3,500 new jobs) and Cleveland would also be amongst the first towns to benefit from the programme.

The London boroughs of Tower Hamlets, Newham, Haringey, Lambeth and Southwark should be the first in the capital to roll out the scheme, says the TUC.

TUC Midlands Regional Policy and Campaigns Officer Alan Weaver said: ”In previous recessions well-qualified workers who have lost their jobs have tended to find work again quite quickly. However, younger workers and low-skilled employees who have been unemployed for a long time can find their already limited opportunities back into work squeezed even more during a recession.

“Properly defined new work schemes have proved successful in the past, and the
Government needs to do all it can to minimise the grim impact of the recession, and ensure that the UK is poised ready to make the most of opportunities for recovery.”

The TUC’s call for an intermediate labour programme is part of the TUC’s 2009 Budget submission. The full submission is available at:
www.tuc.org.uk/extras/2009budgetsubmission.pdf

Birmingham should be first to gain from new jobs scheme, says TUC

The TUC is calling on the Government to inject £2 billion into new work schemes for the long-term unemployed today (Tuesday), the day before the new unemployment figures are due out.

The TUC believes that £2 billion could create at least 100,000 new paid work experience jobs in areas of the UK suffering from high levels of unemployment, and that Birmingham should be one of the first places to gain from the scheme.

The new jobs would be targeted at those finding it particularly hard to find work during the recession, such as the long-term unemployed and young people. People on the work experience schemes would be supported by training opportunities, and given assistance with finding more permanent work and arranging childcare.

Under the TUC proposals, the jobs would last for up to a year and would be offered to those who have been claiming Jobseeker’s Allowance (JSA) for more than six months. Participation in the scheme would be on a voluntary basis. The jobs would be created in areas of value to the community, such as childcare, sports, transport and energy-saving (such as home insulation) and workers would be paid at the going rate for the work.

The TUC believes the jobs could be run by a combination of local area partnerships, unions and Jobcentre Plus, and that costs involved in setting up the programme would more than offset the expense of supporting workers who go on to become unemployed for five or ten years.

The TUC has identified a number of towns – outside of London – with the most people who have been claiming JSA for more than six months. The TUC believes the first 50,000 jobs created through the paid work experience programme should be set up in these areas to get the scheme up and running quickly.

Birmingham (10,000 new jobs), Belfast (6,000 new jobs) and Liverpool (5,000 new jobs) should see the creation of the most new jobs under the TUC’s proposals. Glasgow, Newcastle upon Tyne, Sheffield, Manchester, Nottingham and Cleveland would also be amongst the first towns to benefit from the programme.

The London boroughs of Tower Hamlets, Newham, Haringey, Lambeth and Southwark should be the first in the capital to roll out the scheme, says the TUC.

TUC Midlands Regional Policy and Campaigns Officer Alan Weaver said: ”In previous recessions well-qualified workers who have lost their jobs have tended to find work again quite quickly. However, younger workers and low-skilled employees who have been unemployed for a long time can find their already limited opportunities back into work squeezed even more during a recession.

“Properly defined new work schemes have proved successful in the past, and the
Government needs to do all it can to minimise the grim impact of the recession, and ensure that the UK is poised ready to make the most of opportunities for recovery.”

The TUC’s call for an intermediate labour programme is part of the TUC’s 2009 Budget submission. The full submission is available at:
www.tuc.org.uk/extras/2009budgetsubmission.pdf

Monday 6 April 2009

Extending right to request flexible working is ‘good news for employers’

Commenting on new Government legislation which comes into force today (Monday), including extending the right to request flexible working and increasing paid holiday entitlement, Midlands TUC Regional Secretary Roger McKenzie said:

“This is extremely welcome news. Extending the right to request flexible working to parents of children up to the age of 16 can only be good news for employers.

“Companies whose workers enjoy the benefits of flexible working are likely to feel less stressed and less anxious about balancing their lives at home and work, which means they are more committed and productive while at work.

“I hope all employers who receive flexibility requests consider them seriously and do all they can to make flexible working a reality.

“The TUC is also pleased to see the increase in the minimum legal entitlement to paid holiday from 4.8 to 5.6 weeks per year. This is an increase of 24 to 28 days for a full-time worker on a five day week, with pro-rata increases for part-timers.

“We estimate that this will benefit two million employees, many of whom will be low-paid women, working part-time here in the midlands.

“At the other end of the scale, this extra holiday entitlement will help to address our long hours working culture, which is stopping many people from enjoying a proper work/life balance.”

Wednesday 1 April 2009

New register will put bad employers in the spotlight, says TUC

Welcoming the Government’s announcement today (Wednesday) of a register to name people or employers who fail to pay employment tribunal awards, Midlands TUC Regional Secretary Roger McKenzie said:

“This register will help put bad employers in the spotlight by naming and shaming those who fail to pay up when they lose employment tribunals.

“But action against bad employers shouldn’t stop here, and the Government must put systems in place to ensure that everyone who wins an employment tribunal award actually receives it.

“Too many people are still hit by the double whammy of employers acting illegally and then refusing to pay when they are caught.”

Tenth anniversary of the minimum wage proves critics wrong

Critics of the national minimum wage (NMW) who warned its introduction would destroy jobs have been proved wrong says the TUC, as the minimum wage celebrates its tenth anniversary today (Wednesday).

When the Government introduced the NMW in 1999 the business lobby warned that it would be a disaster and that thousands of jobs would be lost. However, before the current recession hit home, employment had grown by about two million jobs in the period since the introduction of the NMW, says the TUC.

The adult minimum wage was originally set at £3.60 per hour. The current figure is £5.73, which is an increase of almost 60 per cent in less than a decade. Over the same period the Retail Price Index (RPI) has risen by 33 per cent and average earnings 35 per cent, so the NMW has delivered a real increase in the spending power and living standards of the low paid in the Midlands.

Each time the minimum wage has been increased, it has led to more than a million vulnerable workers getting a pay rise. Women workers, workers from ethnic minority backgrounds, those with disabilities, and younger and older workers are among the groups who have benefitted most in the midlands, says the TUC.

The minimum wage has also had a positive impact on closing the gender pay gap. The NMW benefits five per cent of employees, and the gender pay gap for this group of workers has narrowed from 10.5 per cent in 1998 to 3.8 per cent in 2007. The gender pay gap for all employers is currently 17.1 per cent.

However the TUC believes there is still more to do. The TUC wants to see the NMW adult rate paid to 18 year olds – it is currently only paid from the age of 22 – and the exemption from the NMW for apprentices to be replaced with a special rate in order to protect vulnerable young people.

Midlands TUC Regional Secretary Roger McKenzie said: “The minimum wage is one of this Government’s greatest successes.

“It is an integral part of building a fairer Britain, and its success has shown that despite scare-mongering from business, the midlands economy can easily cope with sensible labour market regulation. Indeed, our current economic woes seem to be caused by too little regulation rather than too much.

“If we want to build a strong UK economy that is fair to all its citizens then we must continue to develop the minimum wage during the coming decade.

“Employers are wrong to call for a minimum wage freeze this year. Raising the minimum wage has already helped hundreds of thousands of families without causing significant job losses.

“The recession was caused by very highly paid people damaging the nation’s financial system. It would not be fair to make the low paid suffer a wage freeze while city bankers still get bonuses, and when there is no economic necessity to do so.”