The battle to protect workers' rights is only beginning

The Lib Dems' intention to block the worst of the Beecroft report does not diminish the urgency of t

Claudia sits in the sunshine after work. Sitting in jean shorts and covered in freckles, she doesn’t look much past her teens, but she’s been working as a cleaner at St Georges University for over a year. Her cleaning company Ocean recently told her she’d be doing the same job on fewer hours, cutting her wages with just a few weeks notice and laying several people off. If the government goes ahead with new proposals to change employment rights, things are going to get a whole lot harder.

“I don’t really know how the process works,” Claudia smiles shyly, “No one ever told me I had rights.”

Claudia hasn’t heard of the government’s Beecroft report, but you can bet her employers have. The venture capitalist and Tory donor’s fifteen-page report calls on the government to rip up historic protections for British workers. The most controversial proposal gives bosses the power to be able to fire “without giving a reason”. But that's not the only joy. The report also wants to cut the amount of notice a company has to give before laying off large numbers of staff by two thirds, and scrap equal rights for agency workers working over twelve weeks. Staff could also face new unaffordable fees for employment tribunals.

The entire report says more about power than it does about economics. If this was just about improving labour market flexibility, we’d be having a conversation about how to remove people who are incompetent from the top as well as the bottom. But it will always be people like Claudia with fewer qualifications, less literacy, worse resources and lower political clout that take the hit. The financial crisis might have been caused by people with power, but very few faced dismissal as a result. Beecroft will never know what it feels like to fall to the very bottom, and a worker like Claudia will never know what it’s like to influence employment law.

“It seems that day by day the law is furthering rich people,” says Alberto Durango, a cleaner from the IWW union who is helping organise the cleaners in St Georges, “We are like products for a company trying to reduce costs. They are firing people and reducing the conditions of people who have been working for them for years and years… with no unfair dismissal that would be much easier.”

Nor does Beecroft’s report seem to be based on evidence. It’s a struggle to find any facts or figures in the unreferenced document, which often seems to speak more from prejudice than intelligence. Certainly when I talk to the small businesses in my ward, I have never heard the inability to fire people raised as a problem. The complaint is not that there are too many staff serving, but that there are too few customers in the shop buying. The deputy prime minister says that Britain already has one of the most flexible labour markets in Europe. Take away job security at a time like this, and people are likely to cut back spending even more.

The left needs to tell a different economic story. To do that honestly, we must look at long-term reform as well as short term spending. Some of Beecroft’s proposals make sense – asking workers to make an affordable contribution to employment tribunals, taking serious action to help both sides resolve disputes faster with time limits – but we need alternative proposals too. Germany might offer some inspiration. There, greater engagement with workers helped negotiate shared hours down with far fewer redundancies. Worker representation on the boards of companies helps hold bosses to account as well as employees. The Rhineland could teach us more about the kind of capitalism we want than the USA.

Right now the left isn’t taking Beecroft's report too seriously because the Lib Dems don’t support it and it wasn’t in the Coalition agreement. But the pressure to implement this reform will grow. Tory backbenchers and party funders are desperate for growth, and as long as they’re not prepared to invest their way out of the recession, this is the only option they can see - even if it doesn’t have an evidence base. The worse the economy does, the louder the clamour will get. For the sake of economics as well as the livelihoods of people like Claudia, the left should be ready to take on the fight.

 

Rowenna Davis is Labour PPC for Southampton Itchen and a councillor for Peckham

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By refusing to stand down, Jeremy Corbyn has betrayed the British working classes

The most successful Labour politicians of the last decades brought to politics not only a burning desire to improve the lot of the working classes but also an understanding of how free market economies work.

Jeremy Corbyn has defended his refusal to resign the leadership of the Labour Party on the grounds that to do so would be betraying all his supporters in the country at large. But by staying on as leader of the party and hence dooming it to heavy defeat in the next general election he would be betraying the interests of the working classes this country. More years of Tory rule means more years of austerity, further cuts in public services, and perpetuation of the gross inequality of incomes. The former Chief Secretary to the Treasury, Seema Malhotra, made the same point when she told Newsnight that “We have an unelectable leader, and if we lose elections then the price of our failure is paid by the working people of this country and their families who do not have a government to stand up for them.”

Of course, in different ways, many leading figures in the Labour movement, particularly in the trade unions, have betrayed the interests of the working classes for several decades. For example, in contrast with their union counterparts in the Scandinavian countries who pressurised governments to help move workers out of declining industries into expanding sectors of the economy, many British trade union leaders adopted the opposite policy. More generally, the trade unions have played a big part in the election of Labour party leaders, like Corbyn, who were unlikely to win a parliamentary election, thereby perpetuating the rule of Tory governments dedicated to promoting the interests of the richer sections of society.

And worse still, even in opposition Corbyn failed to protect the interests of the working classes. He did this by his abysmal failure to understand the significance of Tory economic policies. For example, when the Chancellor of the Exchequer had finished presenting the last budget, in which taxes were reduced for the rich at the expense of public services that benefit everybody, especially the poor, the best John McConnell could do – presumably in agreement with Corbyn – was to stand up and mock the Chancellor for having failed to fulfill his party’s old promise to balance the budget by this year! Obviously neither he nor Corbyn understood that had the government done so the effects on working class standards of living would have been even worse. Neither of them seems to have learnt that the object of fiscal policy is to balance the economy, not the budget.

Instead, they have gone along with Tory myth about the importance of not leaving future generations with the burden of debt. They have never asked “To whom would future generations owe this debt?” To their dead ancestors? To Martians? When Cameron and his accomplices banged on about how important it was to cut public expenditures because the average household in Britain owed about £3,000, they never pointed out that this meant that the average household in Britain was a creditor to the tune of about the same amount (after allowing for net overseas lending). Instead they went along with all this balanced budget nonsense. They did not understand that balancing the budget was just the excuse needed to justify the prime objective of the Tory Party, namely to reduce public expenditures in order to be able to reduce taxes on the rich. For Corbyn and his allies to go along with an overriding objective of balancing the budget is breathtaking economic illiteracy. And the working classes have paid the price.

One left-wing member of the panel on Question Time last week complained that the interests of the working classes were ignored by “the elite”. But it is members of the elite who have been most successful in promoting the interests of the working classes. The most successful pro-working class governments since the war have all been led mainly by politicians who would be castigated for being part of the elite, such as Clement Atlee, Harold Wilson, Tony Crosland, Barbara Castle, Richard Crossman, Roy Jenkins, Denis Healey, Tony Blair, and many others too numerous to list. They brought to politics not only a burning desire to improve the lot of the working classes (from which some of them, like me, had emerged) and reduce inequality in society but also an understanding of how free market economies work and how to deal with its deficiencies. This happens to be more effective than ignorant rhetoric that can only stroke the egos and satisfy the vanity of demagogues

People of stature like those I have singled out above seem to be much more rare in politics these days. But there is surely no need to go to other extreme and persist with leaders like Jeremy Corbyn, a certain election loser, however pure his motives and principled his ambitions.

Wilfred Beckerman is an Emeritus Fellow of Balliol College, Oxford, and was, for several years in the 1970s, the economics correspondent for the New Statesman