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Tesco’s 10% pay increase accompanied by cuts and job losses

July 14, 2017 1 comment

The headline figure in the result of the latest Tesco pay negotiations is a pay rise of 10.57% to £8.42, in Tesco’s own words its “biggest ever pay award”. And it is far higher than the pay rises of 2% or less that I received when I used to work for Tesco.

Scott Jones, Usdaw East London C026 branch chair (personal capacity)

But in the detail below the headlines it’s revealed that this rise will take place over the course of the next two years, straight away meaning that the increase is actually just over 5% a year. And this increase comes after small or no increases in the last couple of years.

Another blow will be the decrease in Sunday and bank holiday pay from time and a half to time and a quarter, which in Usdaw’s Network magazine for August is flippantly brushed aside with the justification that most companies already pay a flat rate for bank holiday working. And inflation is currently running at around 3%.

So while a pay increase of 5% is welcome, against a backdrop of cuts in terms and conditions, now and previously, this is merely playing catch-up. And while Usdaw members will have different opinions over the pay deal, the fact that yet again Tesco workers don’t get a vote on it means there is no accountability.

And as one Tesco worker commented to me, with the estimated 1,100 potential job losses at its call centre in Cardiff and possibly more at head office, Tesco is moving money around the company as opposed to making a large investment in this offer. An investment it could afford to do, with a rise in operating profit and a £3.7 billion takeover of cash-and-carry group Booker on the cards.

There is no excuse to close the call centre in Cardiff which will be devastating for those 1,100 workers and the local area. Usdaw and the Welsh government should put as much pressure on Tesco as possible. The union in particular should ballot for strike action over this and future attacks on terms and conditions.

The Mandate trade union in Ireland brought Tesco workers out on strike earlier this year after Tesco tried to change contracts and force workers to take redundancy.

Their strike, which was extended and spread with brilliant picket lines throughout the dispute, was an inspiration to workers here and shows what’s possible. Usdaw should look to this as an example in the fight to save jobs, terms and conditions and to secure a £10 an hour real living wage for all.

Solidarity with Tesco Ireland Valentine’s Day strike

February 8, 2017 Leave a comment
Poster produced by the Activist for use in solidarity selfies with the Tesco workers strike in Ireland

Poster produced by the Activist for use in solidarity selfies with the Tesco workers strike in Ireland

Up to 15 Tesco stores in Ireland will face strike action on Valentine’s Day 14 February after members of the trade union Mandate, which represents more than 10,000 workers at the company, voted 78% in favour of a walkout over contract changes.

Scott Jones, Usdaw East London Retail branch chair (personal capacity)

The changes Tesco Ireland are attempting to force through without agreement affect approximately 250 workers employed before 1996. The new contracts would result in some workers experiencing reduced incomes of up to 15% along with increased ‘flexibility’.

Tesco began their attack on pre-1996 staff more than one year ago when they intimidated and bullied more than 900 workers out of their jobs through a redundancy programme and strike action was narrowly avoided then.

The remaining 250 workers want to stay in the company on the contracts they have but the company is insisting they accept reduced terms and conditions.

This followed moves at Tesco in the UK to drive down terms and conditions last year when hundreds of staff lost out as a result of the pay deal which caused pay cuts in overtime, weekend and night premiums. Meanwhile Tesco CEO Dave Lewis received £4.1 million in his first six months as boss in 2015 and Tesco reported that it had its best sales growth at the end of last year’s quarter for over five years. This profit was further boosted by the Christmas sales meaning that Tesco is on course to deliver a profit of “at least” £1.2 billion for 2016-17.

As one Tesco worker said then: “I’d rather have a living wage than support the lifestyles of shareholders.”

We support Tesco workers in Ireland and their trade union Mandate for taking this action against Tesco’s attempt to implement increasingly low-paid, part-time precarious work in its stores. And we call on Usdaw, the shop workers’ union in Britain, to raise solidarity and discuss industrial action so that the strength of the 160,000 Usdaw members in Tesco is used to fight against low pay and attacks on conditions.

We would encourage all Usdaw reps and other labour movement activists who wish to support the strike to send solidarity messages to the workers via their website (https://tescoworkers.com/contact-us/) and also send copies to usdawactivist@gmail.com. We have produced a poster (see image above) that can be printed out to take ‘solidarity selfies’ and photos with to be shared on social media, tag @MandateTU on Twitter

Usdaw and the EU referendum

April 21, 2016 Leave a comment

This is an expanded version of the article in the 2016 ADM special of the Activist (no 61)

Delegates to ADM will be debating a statement from the Executive Council setting out the leaderships’ case for remaining part of the EU.

This contrasts sharply with the position of Usdaw in the 1975 referendum, where Usdaw, along with a majority of the Labour Party (including Jeremy Corbyn), campaigned to leave the then EEC.

Today, because of the vacation of opposition to the EU by the workers movement, then the most prominent opponents of the EU (aided by exaggerated publicity in the mainstream media) are Ukip and the Tories, who have put forward a series of false arguments, often on a xenophobic basis, around migration.

Whilst the document explains the false basis of these myths, this is not sufficient. Such arguments play upon real fears of lack of jobs, housing and public services experienced by working class people as a result of policies of austerity and privatisation carried out by successive Labour and Tory governments. Alternative policies such as a mass council house building programme, scrapping the rip-off PFI contracts in the NHS and other public services, renationalisation of the privatised utilities to name but a few, are needed to counter such arguments fully. Yet these won’t be expressed by big business on either side of the referendum, and points to the need for our movement to mount its own campaign independent of the right and starting from a principled basis based on our members interests.

Document suggests that Usdaw changed its mind as a result of the ‘Social Chapter’ ushered in by then EU president Jaques Delors. Yet the Social Chapter is in reality fairly weak – Tory governments for years opted out of implementing it altogether, and even when Blair implemented it key parts such as the Working Time Directive were not fully implemented, and that are other aspects such as TUPE are disregarded by employers, as Tesco drivers in Doncaster found out to their cost a few years ago.

There has been much confusion about the two EU courts, one part of the EU and the other separate to it. The European Court of Human Rights was created by the European Convention on Human Rights, the statutes of which are incorporated into the Human Rights Act. Many trade unionists will undoubtedly want to defend the provisions of this legislation which has become a bête-noir of the right-wing press and which the Tory right wish to replace with a ‘British Bill of Rights’. But whilst the EC statement tries to conflate this with the EU, it is a separate institution which leaving the EU would not affect membership of.

The EU’s court, on the other hand, the European Court of Justice (ECJ) has passed down many vicious anti-worker judgements including the Viking and Laval cases which undermine trade union rights among ferry workers. In this case the issue was compounded by the European Commission, giving the decision the status of statutory regulation rather than case law, which directs national courts to enforce ‘business freedom’ where it conflicts with collective agreements and union rights.

Closer to home for Usdaw members, as reported in the 2015 Annual Report, it was the ECJ who decided that to support the UK government in restricting the need for redundancy consultation for Ethel Austin and Woolworths workers in stores under 20 staff. This was after Usdaw had won a victory in an Employment Appeal Tribunal here in the UK.

The reality is such concessions as the Social Chapter have been wrested out of the governments in Europe by workers struggles. It was the weakness and inability to lead such struggles of many trade union ‘leaders’, compounded by the defeat of the miners in 1984-85, which saw British union ’leaders’ turn to the EU as their salvation.

This is reflected in the question of the government’s new anti-union laws. Instead of leading a serious struggle against the TU bill, the EC statement on that subject makes no mention of following the call supported at the TUC to support any union finding itself outside the law in resisting it.

In reality the EU is a series of treaties to allow European capitalists to create the biggest market possible to maximise their profits. The establishment of the Euro, as a common currency for many EU countries is a natural extension of this, and has in fact allowed the wealthier capitalists in countries such as Germany to take advantage of lower-wage economies in the euro-zone depressing the euro’s value to boost its exports.

This is reflected in the structures of the EU, which are split up into 3 main bodies – the European Council, European Commission and European Parliament. The latter is the one that we elect every five years, which the statement euphemistically says ‘plays a key part in agreeing European Union laws and Directives’. The reality is that is merely a rubber-stamping body with incredibly limited power. The real decision making is made by the other two bodies – with the appointed, not elected European Commission as the statement says ‘[carrying] out much of the European Union’s day-to-day work.’

The European Council (and subordinate Councils of Ministers) ultimately makes the major decisions of the EU. This body is made up of the heads of governments of each EU states, and any fundamental pro-worker reform of the EU – as advocated by most left and trade union, would need to be passed through this body.

Any left-led government coming to power in Britain would be impeded by the EU from carrying out popular policies like renationalising the railways, as the Tsipras government was ’waterboarded’ at the European Council to drop its fight against austerity in Greece. If multiple left governments were to come to power, enacting anti-austerity and socialist policies then why be restrained by the neo-liberal EU when they could instead take practical steps towards establishing the beginning of a real Socialist Federation of Europe.

The EU bosses’ club should be rejected, a Europe in workers interests will not come through it.

Categories: Updates Tags: ,

Sunday Trading Extension Defeated

March 10, 2016 Leave a comment

Retail workers up and down the country will be celebrating the government’s defeat of its plans to devolve Sunday Trading to local authorities. A majority of 31 voted down the government’s plans including 27 Tory MPs.

Cameron’s reaction to the vote has been to declare that the plans are “dead in the water”, but a number of Tory MP’s have argued that the votes of the SNP, who opposed the changes, should not count given the new English votes for English laws provisions. Scotland already has longer Sunday Trading.

This factor, means that despite the Tories saying they will not reintroduce these proposals, if the government brings in limitations on Scottish MPs to vote on ‘English’ matters and with pressure from big business, may yet appear again. The vote on 9 March was, after all, the third attempt by the Tories to introduce such measures in the last five years.

Clearly the vote is a great result for Usdaw members’ hard work in campaigning and lobbying in opposition to this vote. But given the vast majority of the big, urban local authorities are controlled by Labour, then serious opposition at that level, a refusal to use powers if granted to extend Sunday trading, could have made this ‘dead in the water’ before now.

The task now is to use this victory to give confidence to organise retail workers to halt the attacks on terms and conditions, particularly premium payments that were stepped up in advance of this legislation possibly coming in. Mobilising an active campaign for the TUC demand of a £10 an hour minimum wage, while defending hard won premium payments and campaigning for a minimum of time-and-half for all working on Sundays, must be the goal of Usdaw and other retail unions.

Usdaw Leadership Over-rides Young Workers Committee in Labour Youth Elections

December 1, 2015 Leave a comment

Elections to the committee of the Young Labour are perhaps not something at the top of the mind of most Usdaw members. However, members will undoubtedly be suprised that Usdaw’s leadership has ignored views of it’s own Young Workers Committee and nominated two Progress supporting candidates for the chair & NEC of Labour Youth.

At a recent Usdaw Young Workers Committee meeting, those attending were told that ‘it would be inappropriate’ for them to discuss the issue. But this isn’t the only time their views on specific youth events have been bypassed. Motions to the TUC Young Workers conference which Usdaw delegates are expected to move are not written by them with consultation only on the broad subject topic. It begs the question, what is the point of having such a body if you almost totally ignore that body’s wishes?

Of course, it could be argued that the young workers committees aren’t elected. Divisional young workers committees are appointed by divisional councillors from those who put their names forward, with a national young workers committee elected from those bodies having one representative each.

But the leadership aren’t proposing any sort of change to those structures – it’s as if they want the kudos for involving young workers, but without allowing those young workers any responsibility at all.

The Activist would like to see the enhancement of democracy in the union’s youth structures. We would like to see elected young workers committees, a young workers rep on the EC (where despite the huge number of young workers in retail there isn’t a single EC member under 27) and the creation of a youth conference where policies can be discussed, including what motions are put by the union to external youth bodies (with the proviso that is doesn;t contravene ADM policy).

But the selection of two Progress supporting candidates by Usdaw’s leadership, as opposed to the left candidates favoured by the Young Workers Committee, also shows that they are part of the campaign to undermine Jeremy Corbyn’s leadership of the Labour Party by placing those hostile to him in positions of power.

The best way that Usdaw members can fight to stop this, is by campaigning for the passage of policy backing the platform that Corbyn was elected on at Labour Party conference and advancing the case for the democratic control and accountability we need to see to ensure Usdaw has a union leadership that fully represents its members.

Vote No to the Morrisons Pay Offer – Demand a Real Living Wage AND Premium Payments!

October 19, 2015 1 comment

Below a Morrisons USDAW rep gives their personal take on the current pay offer which USDAW is recommending. The Activist believes USDAW members in Morrisons should reject the pay offer and demand that the negotiating committee fight to retain premium payments. Given that companies are due to be forced by the government’s new ‘living wage’ to pay £7.20 an hour  to over 25s (rising to £9) it is entirely possible that over the next few years pay could again be restrained like over the past period with the pay rate hovering slightly above the minimum wage once more. This is why the Activist believes that USDAW should actively support and campaign for the TUC’s demand of a minimum wage for all of £10 an hour.

Retail has historically been low paid. So on the surface USDAW negotiating Morrison’s staff a wage increase from the basic rate of £6.83 to the dizzying heights of £8.20 taking them over the so called living wage, seems like a more than fair deal. The company are paying a good wage, the staff are happier, USDAW has negotiated a good deal for its members…

That is about as much coverage if any that you will hear about in mainstream media. The reality is a stark double edged sword. The new wage deal sees the end of the company’s Sunday premium currently paid at time and a half, quite ironic when USDAW ‘The Campaigning Union’ who organise predominately in the retail sector, are fighting the governments propositions to deregulate Sunday Trading, yet are trading away Morrison’s Sunday premium. Are they not in fact preparing for it becoming a normal working day? Or in fact accepting it already is one?

The Sunday premium isn’t where it ends. Overtime, late and early premiums are being scrapped. Forklift drivers and café cooks will see there supplements disappear. People who started with the company after December 2013 will only receive service rewards at 5 year intervals, although people who have worked for the company since before that date won’t be effected and still receive it every year (for people who started work prior to December 2013, they have to work 5 years before they can claim their first service reward). Finally but my no means the smallest in this wage offer, paid breaks will disappear taking the working week down to 36.5 hours (39 hours minus paid breaks).

The concerns of many rank and file USDAW reps within Morrison’s (who don’t negotiate pay, apart from a select committee who sit with the National Officer) is that Terms and Conditions are being traded away for a higher rate of pay, and given this governments appalling attacks on working tax credits and cuts to peoples benefits are the members realistically going to be any better off? Many USDAW members in Morrison’s are part time student workers, some of whom only work a Sunday and its difficult to see how they won’t be impacted financially. Further irony again since USDAW has always proudly informed its members how it campaigned to abolish youth rates in Tesco many years ago.

Of course for some people who don’t work late, early, or Sundays its understandable why they might be excited about the offer. But how long before they are expected to work late, early and on Sundays? Without premiums and with no real right to refuse. What you essentially have or are going to get is a divided workforce. With a natural high turnover of staff, and a general lack of understanding regarding trade unionism and solidarity anyway, retail is difficult to organise in. Now it will be even more difficult for reps to organise and very unlikely to attract non members within Morrison’s.

So what exactly are USDAW doing about all this? Well they recommend the members accept the company’s offer when casting there vote in the pay ballot.

But why? Many members are asking. Surely a trade union fights to strengthen their members terms and conditions? And doesn’t trade them away for the sake of a pay rise? It is not difficult to understand members or even non members apathy towards the union when you look deeply into what is being offered, and a perceived lack of any sort of a challenge from USDAW officials, all they seem to be doing is reminding reps to recruit new members. Perhaps USDAW needs to remind itself that recruitment is only part of organising, and they are unlikely to recruit new members or organise the ones they have if they keep trading away terms and conditions without so much as a fight, Who’s next Tesco? Sainsbury’s? Where’s your next new member coming from? Because you will more than likely hear the old question, what is the Union going to do for me? And with deals like this even the most dedicated reps and trade unionists are struggling to answer that one.

Categories: Updates Tags: , ,

Farmers Force Concessions on Milk Prices

August 31, 2015 Leave a comment

For a few weeks at the beginning of August newspaper headlines were full of stories of farmers protesting inside supermarkets (sometimes bringing cows with them!) and blockading a distribution centre over ‘farmgate’ prices they are paid for milk.

Whilst farmers estimate a litre of milk costs them 30-32p to produce, prices dropped to an average of 23.01p earlier this month, meaning that farmers are mostly producing below the cost of production.

There are multiple factors which have driven the price of milk down as supply on a world scale has outstripped demand. The recession in China and a Russian import ban have limited demand, whilst an end to EU maximum production quotas mean that large dairy farmers are producing more squeezing out smaller farmers. Whilst UK consumption of milk has increased recently and now stands at 5.5bn litres, the value of sales has dropped from £3.5bn in 2009 to £3.2bn this year

Whilst the milk industry has over 9,724 producers in England and Wales alone, this is far down from an estimated 25,000 in 2000. Numbers are falling year on year, at an average rate of 6.2% across the EU. In the last year in England and Wales there has been a decrease in producer numbers by 421.

The UK dairy industry is mostly based around smaller herds of around 125 cows (although that itself is up from 30 in the 1970s). This dwarfs in comparison to mega-dairies, such as one currently being built in China which is designed to have 100,000 cows! Such mega dairies have many environmental issues associated with them, such as infections spreading through herds kept indoors, health issues in the cattle due to lack of grazing access and long periods of confinement as well as huge pools of manure to dispose of.

Historically the Milk Marketing Board served as a buyer of last resort of milk, maintaining a minimum price for milk until it’s abolition. There have been calls for it’s reintroduction, but even this intervention into the market was limited leading to the Board having 70-80 million gallons of milk left over after they’d sold it ot processors each year in the early 60s. This saw the Board establish it’s own processor, Dairy Crest, which after privatisation is now the UK’s biggest dairy processor.

But there is plenty of profit being made in this industry, the biggest 4 processors (Dairy Crest, Muller-Weisman, First Milk and Arla) was over £100m a year in 2012. Dairy sales make up a little under 10% of sales from supermarkets, themselves generally very profitable despite a few recent blips.

Socialists call for bringing the big dairy processors and supermarkets into public ownership under democratic control so production of dairy products can be planned to meet the needs of ordinary people and guarantee a sustainable ‘farmgate’ milk price. The land owned by big agro-business should be brought into public ownership and leased at affordable rents to tenant farmers. The wealth generated by nationalised processors & supermarkets could be invested into research that, rather than squeeze milk as quickly as possible out of cows, develops sustainable, human farming methods, as well as alternatives to dairy products.

On the back of the protests Aldi, Lidl & Asda have all agreed to pay a minimum price of 28p a litre, whilst Morrisons will pay a minimum 26p a litre whilst also introducing a new branding costing 10p more per litre which it says will be passed straight on to farmers. This fact, that protests have worked in forcing major supermarket chains to alter their policies, is perhaps the main lesson retail workers should take note of.