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.”

Burma Campaign launches petition to free Political Prisoners

This month a global signature campaign has been launched demanding the release all of Burma's political prisoners. The campaign is being led by former political prisoners from Burma and over 160 Burma exile and solidarity groups in 24 countries are taking part.

The campaign aims to collect 888,888 signatures before 24 May 2009, the legal date that Burma's democracy leader, Aung San Suu Kyi should be released from house arrest.

The petition calls on the UN Secretary General Ban Ki-moon to make it his personal priority to secure the release of all political prisoners in Burma, as the essential first step towards democracy in the country.

We need your help to reach our target. Please sign the petition now:
http://www.burmacampaign.org.uk/fbppn.htm

Please also ask your friends and networks to take action.

Attached is a petition form you can use to collect signatures at meetings and conferences.

The target of 888,888 signatures symbolises 8.8.88, the day the junta massacred some 3,000 people who courageously protested in Burma¹s largest democracy uprising.

There are over 2,100 political prisoners in Burma. They have committed no crime. They have been imprisoned for peacefully calling for democracy and freedom in Burma. In prison, democracy activists face horrific torture, including electric shocks, rape, iron rods rubbed on their shins until the flesh rubs off, severe beatings and solitary confinement. Many prisoners are kept in their cells 24 hours a day, given inadequate food and are in poor health. However, the regime appears to be systematically denying medical treatment to political prisoners.

Labour activists are among those targeted and imprisoned by the regime.
Activists like Zaw Htay, who was jailed for 10 years in January for helping farmers file a report to the International Labour Organisation (ILO) on land seized by the army.

Prominent labour rights activist Su Su Nway was sentenced to 12 ½ years in prison for participating in the 2007 democracy uprising. We have just heard that her health is deteriorating and she has been admitted to hospital.

These brave men and women are at the forefront of the fight for freedom and democracy in Burma. They need your help.

Sign the petition now: http://www.burmacampaign.org.uk/fbppn.htm

Ballot Over Tamorth Academy Plans

The NASUWT, the largest teachers’ union in the UK, is balloting members at Woodhouse Business & Enterprise College in Tamworth for industrial action over proposals to turn the school into an academy.

Chris Keates, General Secretary of the NASUWT, said: “In addition to concerns about the academy proposal, the NASUWT has serious concerns about the track record of Landau Forte, the proposed sponsor for this school. Evidence shows they are hostile to trade unions, fail to apply national pay and conditions standards and appear impervious to concerns about conditions of service.

“Given this history, the plan to concentrate all sixth-form provision at the academy is deeply worrying. Parental choice will be limited and the local authority will lose direct control of this important service.

“Public services must remain in public hands and not be hived off to private companies who are free to determine teacher’s pay and conditions.

"This ballot for action is a principled and important stand to protect a state school from being handed over to an external organisation and to protect and defend teachers' national pay and conditions of service and the right to union recognition.”

Unemployment is another grim milestone, while earnings hold up in real economy

Commenting on the earnings and unemployment figures published today (Wednesday) Midlands TUC Regional Secretary Roger McKenzie said:

“This is another grim milestone in the return of mass unemployment to the UK. And it will get worse before it gets better as unemployment always persists even after a recovery starts.

“But this unemployment has not just been made in Britain, and requires an international response. It is beginning to look like the G20 summit may not agree the co-ordinated boost to the world economy called for by Barack Obama and Gordon Brown.

International summits may seem a long way from the dole queues, but without such a stimulus unemployment will go higher and last longer. We need to put every pressure on world leaders to work together to fight the recession.”

TUC research showing that the unemployed outnumber vacancies by 20 to 1 is available at http://www.tuc.org.uk/welfare/tuc-16119-f0.cfm

Earnings hold up in real economy

Roger McKenzie continued:

"Today's record low earnings figures are not what they seem. The big fall is almost entirely explained by the collapse in city bonuses since last year. In the real economy earnings are still on average increasing by 3.5 per cent. This distortion shows just how ridiculous bonuses were last year, even when we were on the road to recession.
"It is entirely understandable that workers in companies under threat in the recession are settling for modest pay increases or even freezes. But it would be extremely bad news for the rest of the economy if wages didn't continue to rise. A general wage freeze would simply encourage consumers to spend less, and many companies can well afford to pay a reasonable increase."

Communication Workers Union National March and Rally

The CWU are holding a national march and rally in Bilston, Wolverhampton, to press their case to Keep the Post Public. Click on the title to get further details of times and speakers.

Put People First

On 28th March thousands will march in London as part of the global campaign to challenge the G20, ahead of their 2nd April summit on the global financial crisis. Click on the link for information about the campaign and what you can do to get involved.

Midlands TUC on March interest rates

Commenting on the Bank of England’s decision today (Thursday) to cut interest rates by 0.5 per cent to 0.5 per cent, TUC Regional Secretary Roger McKenzie said:

“Today’s rate cut and the start of quantitative easing are both welcome, but can only be part of the response we need to counter the recession.

“There are now diminishing returns from rate cuts. Quantitative easing will only work if it injects cash into the economy – it must not disappear into bank balance sheets like so much of the money spent so far on bailing out the banks.

“But it is Government, not the Bank, that must take the lead in fighting the recession. When the private sector stops spending, the public sector must fill the gap with the kind of state-led stimulus and investment that is taking place in the US. This will ensure a fairer and greener economy when we emerge from recession.

“Government must do what it can to speed up implementation of the many worthwhile initiatives it has announced. But many now attacking ministers for delays are those who have spent the last two decades saying that the state should stop regulating, intervening or investing. It is perhaps not surprising if Government now lacks capacity.”