The Economy

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Conference
2010 National Delegate Conference
Date
16 February 2010
Decision
Carried as Amended

Conference notes economists’ predictions that, after a year in which the UK economy shrank by more than five per cent, modest growth is expected for the first quarters of 2010. Unemployment (as measured by the International Labour Organisation) has reached 2.5 million and may continue to rise.

Conference reiterates its condemnation of the financial system that allowed a privileged and unaccountable minority to get rich by putting the jobs, homes, pensions and futures of everyone else at risk. The anxiety and hardship caused to millions of working people over the past two years is the direct result of reckless profiteering in the financial sector and policies maintained by successive governments that allowed such practices to spiral out of control. In particular Conference deeply regrets the total embrace of neo-liberal dogma by the last Labour government which has massively contributed to this.

Conference acknowledges the anger and outrage felt by working people that the same people who created the financial crisis are now dictating that there should be a massive reduction in public spending to reduce the deficit that their actions created. We recognise that every major party entered the general election period with a commitment to such a reduction. Alastair Darling indicated that the scale of cuts will be greater than anything experienced under Margaret Thatcher.

Conference is particularly concerned that the recession has had a disproportionate effect on already disadvantaged groups, such as our Black, disabled, LGBT, women and young members who work in the public services and may also rely on public services for support and assistance.

Conference welcomes the work that UNISON has done as part of the Million Voices campaign to promote and lobby for effective responses to the recession that protects ordinary people and minimises damage to the real economy. UNISON made a significant contribution to popular and political pressure that resulted in reductions in interest, increased public spending to maintain employment and demand, and additional measures to help those facing redundancy, repossession, or poverty. These measures did not go far enough but there is no doubt that without them more jobs would have been lost, more hardship would have been suffered, and the economy would have plunged into an even deeper slump.

It is vital that these measures remain in place and are strengthened for recovery to be sustained and unemployment brought down again. In particular Conference is clear that the immediate drastic spending cuts proposed by the Conservatives will undermine growth and exacerbate unemployment and risk pitching the economy back into recession. Conference believes that the rate of youth unemployment, particularly that of black youth, must be a matter for grave political concern. Conference notes the warning of Professor David Blanchflower, former economist at the Bank of England, that these cuts could push unemployment to as many as 5 million. But such a risk accompanies any public expenditure cuts. This, not the size of the deficit, is the most urgent danger facing our economy today and all possible measures to prevent it must be taken.

Conference condemns the fact that 13 years of new Labour government has seen a growth in inequality with the gap the between rich and working people wider than it was under Thatcher. We note that employers’ are using the recession to erode pay and conditions and regrets the failure of the last Labour government to stand up to them for workers. The attack on BA cabin staff’s terms and conditions is one significant example of this.

Conference rejects the scaremongering, driven by ideological hostility to state action and vested interests in the financial system, about current levels of public borrowing, which is a sustainable and necessary response to current economic conditions. Any cuts in public spending will weaken growth, which will adversely affect tax revenues and widen the deficit further. Over the longer term deficit reduction should be achieved not through cuts to spending on public services but through elimination of wasteful expenditure, such as Trident and the costs of privatisation, and increases in progressive taxation, especially on big business and the super-rich, as outlined in the alternative budget published by UNISON in December 2009.

Conference believes that the only way of ensuring future prosperity and economic stability, and preventing such crises from recurring is to move decisively beyond the failed neo-liberal model and build a fairer, more balanced and more democratic economy. This requires effective regulation and intervention to suppress damaging speculation and channel investment into the creation of high-skilled, well-paid, fulfilling employment in environmentally sustainable and socially useful sectors and industries – including public services which play a critical part in progressive economic development. Trade unions, pension trustees, user and community groups all have an important role to play in shaping an economy that is responsive and accountable to the real needs and aspirations of all in our society.

Conference welcomes the progress the Million Voices campaign has made towards promoting and popularising this vision. The likely continuation of uncertainty and hardship will ensure ongoing debate and real social struggles around economic policies and issues that offer opportunities to develop and build support for an alternative agenda.

Conference therefore instructs the National Executive Council to continue and build on the work of the Million Voices campaign by:

1)Continuing to oppose the rightwing agenda of cuts, privatisation and deregulation that would exacerbate current hardships, further weaken our economy and increase the risk of greater instability and crises in future;

2)Calling for a 0.15% tax to be levied (a ‘Tobin Tax’) on all international financial transactions (on banks and finance houses) to fund public services;

3)Ensuring equalities issues are at the heart of our Million Voices campaign and that all campaign materials highlight the disproportionate effect of public service cuts on equality groups;

4)Continuing to advocate and develop an alternative economic agenda based upon our policies on fairness, good jobs, quality public services, and the strengthening of democratic regulation and control of our economy;

5)Seeking to maximise engagement and input of members, co-workers and service users in the development of this agenda so that it remains rooted in and relevant to the experiences, concerns and aspirations of working people, based on coalitions in our communities;

6)Ensuring that UNISON’s agenda for a fairer economy is reflected in its communications, education initiatives, organising and bargaining strategies at all levels;

7)Working with the TUC, ICTU, STUC , WTUC, ot