Congress rejects the government’s economic strategy and its failure to address the real interests of working people throughout Britain. Congress is concerned at the continued flat-lining of UK economic growth as a result of the austerity measures introduced by the Tory-led government. Congress notes the appalling impact on working people of the economic policies of the Westminster coalition. Their austerity measures have created the worst squeeze on living standards in recent history while weakening the prospects for recovery. This agenda will create a further shift in wealth and income from the majority to the profits of big business and the pockets of billionaires. This is being done by means of pay cuts and freezes, attacks on pensions and the decimation of public services.

Having footed the bill for the immediate banking crisis, people continue to pay dearly with their jobs and falling incomes and through attacks on occupational pensions, state benefits and public services. Congress reaffirms its belief that it is fundamentally wrong that the public have to pay disproportionately and repeatedly for the excesses of the wealthiest who grow richer even at times of economic restraint. Such widening inequality means that not only are our members’ real living standards falling, as Mervyn King acknowledges, but the fall in demand affects the real economy, leading to the lack of growth and jobs that we are now experiencing. Pay freezes cannot be continued. Congress affirms that reducing employment rights and increasing labour market ‘flexibility’ is not a route to sustained economic growth and improved productivity.

Congress rejects the government’s misguided economic policy that has, amongst other things, had a disproportionately adverse impact on certain groups in society like disabled people, women and young people. Congress believes economic policy should be geared towards creating full employment and investment in high quality public services. Congress also believes economic policy should be the foundation for delivering fairness in a way that benefits all parts of the country and all sections of society regardless of gender, ethnicity, age, sexual orientation, disability, religion or belief. Congress condemns the abolition of the Future Jobs Fund and EMA and calls for their reinstatement with the raising of the participation age to 18 by 2015. Congress believes that a strong and growing economy is vital to provide high quality, well-paid, secure employment and measures to reduce inequality throughout our society, and invest in the infrastructure and the preservation of the welfare state, should be developed.

Congress believes that institutions such as the OECD are right to condemn the policy of slash and burn in the public sector. Our policy is “no cuts”. However, it is evident that the British people also expect and deserve a radical and plausible alternative economic strategy based on sustainable growth resolving the crisis while putting people’s needs for jobs, homes, decent pensions and secure living standards first. The free market, neo-liberal model that has dominated for the past three decades has been exposed as a failure; a major change of direction is needed. Higher taxation on financial institutions and the wealthy, including tackling tax avoidance, should play a major part in this. Furthermore, Congress recognises that to rebalance the UK economy away from a dependence on financial services, active industrial policies are required. Congress also supports an economic strategy that explores the benefits of land value taxes, delivers a peace dividend through the scrapping of Trident replacement and takes key drivers of economic growth and wealth creation back into public ownership.

Congress believes that at the heart of such a strategy must be a profound rebalancing of the economy, with a far stronger manufacturing element. Congress further notes the recent government procurement decisions, such as in transport and energy that have failed to support UK manufacturing industry. Without the added value and growth that a stronger manufacturing sector can deliver, the economic recovery will spiral into a double-dip recession at worst or stagnation at best.

Congress therefore urges the government to build upon the steps towards such an industrial strategy eventually taken by the Labour government, focusing on green manufacturing, state procurement policies and control over takeovers, as well as using state-controlled banks to make strategic industrial investments. The chaos created by the major banks and financial institutions should be ended.

Congress calls on the TUC to continue to lobby both government and the Opposition to produce active industrial policies to stimulate economic growth and to safeguard and develop jobs and skills in UK manufacturing and, in particular, to:

• i. ensure that effective government policies are implemented to improve UK manufacturing industry supply chains
• ii. increase infrastructure investment to stimulate the economy
• iii. produce procurement policies and guidelines that include social and community benefit clauses that support UK economic and social growth
• iv. ensure that low-carbon economic objectives are underpinned by a fully-formed industrial policy
• v. enable improved access for industry to capital and finance to continue investment in UK manufacturing including through the creation of a publicly owned banking service, democratically and accountably managed
• vi. focus on promoting opportunities for young people, with universal access to meaningful education, training or employment.

Congress notes that ordinary people continue to suffer the consequences of the financial crisis created by the irresponsible activities of unscrupulous bankers and financial institutions. Congress believes that an alternative must also include stricter control of the financial sector. Congress notes that the crisis of the past four years highlights the failure of the banks to play a positive role in developing a modern economy. Despite taxpayers’ subsidies, the banks continue to fail to provide adequate lending for investment funding in new technologies and sectors, mortgages for homes, etc. Congress calls on the General Council to continue campaigning for greater economic fairness, promoting greater use of responsible banks in providing services to the millions of members of TUC affiliates and the introduction of a rule that no board member or senior executive of a bank saved from failure by public funds would be allowed to hold a similar post unless they can prove to the regulator that they warned against the risk-taking that led to failure. Such a new form of banking could play a central role in building a sustainable economy in the long-term interests of the majority, investing in transport, in green industries, in housing, creating jobs and assisting a recovery in the interests of working people.

Mover: Unite

Seconder: Community

Supporters: Fire Brigades’ Union; Transport Salaried Staffs’ Association; UNISON; National Union of Rail, Maritime and Transport Workers; GMB; National Union of Teachers

The Commission was asked by the Chancellor of the Exchequer to consider structural and related non-structural reforms to the UK banking sector to promote financial stability and competition.

Congress believes that the terms of reference of the Commission were too narrow and calls upon the government, when considering the final report, to also consider how professional standards can be improved in banks in order to increase skills and help to rebuild consumer confidence.

Congress also notes the Finance Sales and Advice campaign strategy launched by UNI Europa, which seeks to remodel remuneration in banks on customer service and satisfaction levels rather than product sales.

Congress believes that the issues of professional standards and sales incentives are of central importance to the reputation and sustainability of the industry, and that there must be no return to the practice of mis-selling that resulted in huge financial settlements to customers and greatly damaged the image of institutions.

Congress also believes that the continuing job losses in the industry should be addressed by the government when it considers its response to the ICB’s final report, as banks who have cut their staffing levels may not be well positioned to properly support the recovery in the UK economy in the future.

Accord

The austerity programmes across the public sector have afforded employers the opportunity to alter terms and conditions of employment to the detriment of the safety and the well-being of members.

In the NHS, employers are using efficiency savings to introduce amendments to sickness and absence policies that seek to punish staff who are judged to be failing to maintain attendance. Many of the new procedures that have been introduced pay lip service to an employee’s well- being, are time-consuming to manage with no discernable financial or service benefit and threaten the most vulnerable in the workforce.

As a result of these changes to the negotiated policy, members feel threatened and intimidated and attend work when they may not be able to work effectively or are a danger to themselves and others in the workplace.

Congress calls on the TUC to work with employers to ensure they there is a more responsible attitude to any changes to agreed and negotiated policies, and not see sickness and absenteeism as ‘soft targets’ to save money.

Society of Radiographers

Our pensions represent the most important condition of employment after pay itself, enabling workers to survive into old age without poverty. Workers’ pension funds represent the single largest source of investment finance and are central to growing our economy from recession.

Congress congratulates unions for the successful industrial action on 30 June in defence of pensions which exposed the government’s pensions plans to closer scrutiny, raised a public debate, and mobilised hundreds of thousands of people on pickets, rallies and marches.

Congress reaffirms its support for the existing public sector pension schemes, and its opposition to the government’s attempts to impose unnecessary cuts on those schemes and present those cuts as an economic necessity rather than a political choice on its part.

Constant attacks on public and private sector pensions, fuelled by this coalition, threaten their viability, meaning that the rights of current and future pensioners to draw their pensions are under threat.

This includes the decision to change the uprating measure from RPI to CPI thus reducing the value of benefits by around 15 per cent, a government attack now being opportunistically replicated across the private sector.

Congress notes the Chancellor’s statement in the 2010 CSR that “from the perspective of filling the hole in the public finances, we will seek changes that deliver an additional £1.8bn of savings per year in the cost of public service pensions by 2014–15”. Congress condemns the government’s continuing attempts to impose contributions increases, which are simply a tax on public sector pensions. The intention to increase contributions by 50 per cent plus will cause many members to reconsider their membership.

Congress condemns misleading statements by government ministers on the affordability of public sector pensions and notes that the Hutton report showed costs falling, and that the NAO report showed the reforms agreed in 2007/08 “reduces costs to taxpayers by 14 per cent”. Congress notes that the total cost of providing tax relief to higher rate taxpayers is more than five times the cost of public sector pensions. Congress believes that the so-called ‘reform’ of public sector pensions is about making them ‘affordable’ for privatisation.

Abolition of the Fair Deal arrangements will lead to a critical point in schemes where government will be liable for finding additional money to pay current pensioners because there are not enough people contributing to the schemes.

Provisions for Admitted Body Status must be preserved to ensure that workers who are TUPE’d in and out of local government do not have their pension entitlements eroded and that private companies are not given an unfair advantage when bidding for local government contracts.

Congress recognises that pensions are an important element of the reward package and are in fact deferred pay. As the government seeks to dramatically cut the value of pension provision for millions of public sector workers, it is vital that the impact on this total package is addressed.

Congress further recognises that many public sector workers, particularly those in more senior managerial and professional roles, are paid significantly below levels they could achieve in the private sector. The government’s own evidence suggests that for the civil service, this results in rates of between 20 per cent and 50 per cent below private sector comparators for some of the more senior grades, even accounting for pension provision. This situation will only deteriorate as a result of the freeze on public sector pay increases and the disproportionate impact this has on the civil service where structural pay progression has already been abandoned.

Congress calls upon the government to recognise the value it gains from committed public servants and the need to ensure that they are rewarded fairly for the work they do for the public. Congress further calls upon the government, as an integral part of any pension reform, to commit to open and transparent pay arrangements for public servants that includes reference to external pay comparators as part of a process for pay determination.

Congress further recognises that occupational pension schemes must be designed around the demands of the occupation, including the physical demands of those occupations. Retirement age cannot simply be determined by general conclusions around life expectancy but should be based around the requirements of the relevant profession.

Congress notes the probability of another round of crisis in teacher recruitment and retention if the government imposes its proposals for public sector pension reform, in the forms of a large volume of premature retirement, difficulty in recruiting graduates who are deep in debt, and increased unattractiveness of headship. Congress notes also the threat to the teacher pension scheme from a high opt-out rate.

The government are putting public sector pensions at risk and have failed to act on the private pensions scandal. Further, with some 14 million workers in the private sector having no workplace pension provision, Government and employers should be encouraging people to save for their retirement, not attacking those workers who do.

Congress restates its commitment to fair pensions for all private and public sector workers and existing pensioners and to continuing to campaign, including with pensioner and other organisations. Congress reaffirms existing TUC pensions policy, including for increases in the state basic pension and for a requirement on all employers to contribute adequately to occupational pension schemes for their employees.

Congress asserts that attacks on pay and conditions of service, including pensions, should be challenged by all appropriate means, including legal action.

Congress therefore welcomes the coordinated action by TUC affiliates, securing a judicial review of the imposition of a stealth tax switch to CPI pension indexation.

Congress condemns the undemocratic, underhand and dishonest way in which the coalition government went about changing the index used for public service pension increases from RPI to CPI. Congress notes that this change also affected millions of members of private sector schemes.

Congress is particularly concerned about the retrospective nature of the change that has also resulted in on-going windfall savings for employers whose liabilities have been slashed as there is no obligation to use these savings to improve scheme funding levels. Congress calls on the General Council to work with affiliates in campaigning for the reversal of this government policy.

Congress welcomes the TUC’s support for public sector workers in coordinating and leading talks with the government on public sector pensions. Congress calls on the General Council to ensure that the TUC continues to coordinate opposition to the government’s proposals, including support for further coordinated negotiations and for further industrial action as necessary, coordinated as far as possible among the public sector unions.

Congress recognises that the TUC and public sector unions must continue to work together in order to secure fair outcomes for every scheme. Congress agrees that the government must not now be allowed to “divide and rule” through individual scheme negotiations.

Congress calls on the government to respect the experience and knowledge brought to pensions negotiations by the trade unions, who have close to their hearts public service delivery as well as the interests of staff.

Congress expresses its concern at the unsatisfactory response of the Labour leadership and instructs the TUC General Council to press for support for future action in defence of the agreement signed with the last Labour government.

Congress calls on the General Council to:

i. robustly defend public sector pensions and campaign for affordable pensions for all workers on the basis that provision should be based on levelling up and making private companies face up to their responsibilities rather than cutting public sector pensions

ii. support and co-ordinate close collaboration between affiliates in defence of schemes

iii. mobilise, politicise and campaign with pension groups and civil society to prevent poverty in the future.

iv. give full support to industrial action against pensions cuts, including action planned for this autumn, and maximise its co-ordination

v. use the media to dispel the myths and falsifications around pensions

vi. campaign for Fair Pensions for All.

Mover: UNISON

Seconder: Public and Commercial Services Union

Supporters: National Union of Teachers; Association of Teachers and Lecturers; Transport Salaried Staffs’ Association; FDA; Unite; NASUWT; Union of Construction, Allied Trades and Technicians; Fire Brigades’ Union

It is unfair for interns, who are often employed full-time, not to be paid the ‘going’ rate for the work they do, just as it is wrong that many performing artists are expected to work for nothing when they are engaged for charitable and fundraising events.

It is extremely unfair to put professional musicians into a situation where they are emotionally blackmailed into working for no fee and are asked to give their services to a good cause. This is particularly unjust when others associated with the event, such as venue staff, lawyers and caterers, are being paid.

Congress agrees that there is nothing wrong in asking a worker to donate to a good cause, but just as with any other member of the public it must always be a choice made freely by the individual and not a decision that they feel pressured into making.

Musicians’ Union

Congress believes that all workers should be paid the “rate for the job” and that there should be a significant monetary increase ensuring low-paid workers are not left behind once the expected resurgence in average earnings growth begins.

Future NMW rates should go beyond just keeping pace with average earnings and become a living wage for all. Such an increase can also help address the gender pay gap, as the TUC estimates that two-thirds of low-paid workers covered by the NMW are female.

Congress also finds it unacceptable that apprentices under the age of 19, as well as those over 19 whilst in their first 12 months of employment, are excluded from the NMW and could receive as little as £95 a week. By ensuring that all apprentices are entitled to an hourly minimum wage, the Low Pay Commission can prevent exploitation, improve quality in apprenticeships and encourage more people to complete their course. Congress also notes the existence of unpaid internships and feels that these are exploitative and exclusive in terms of access. It fully supports Interns Aware and other organisations’ attempts to challenge existing practices.

Congress calls on the TUC and affiliates to campaign for the government to:

• i. end the discrimination inherent in NMW age differentials
• ii. end exemptions in apprenticeships and internships
• iii. take significant steps towards closing the gender pay gap for low-paid workers
• iv. introduce stringent financial penalties for employers who do not comply with the law on the payment of NMW
• v. raise the NMW to £7 per hour minimum or to where it would constitute a living, as opposed to a minimum, wage (whichever is higher).

TUC Young Members’ Conference (this motion is exempt from the 250-word limit)

Congress notes with concern the record increase in greenhouse gas emissions in 2010 reported by the International Energy Agency, believes that this underlines the urgency of a concerted approach to tackle climate change and that this requires effective government action both nationally and internationally.

Congress recognises that decarbonising the economy will also be essential to promoting growth and high quality employment and to ensure the security of energy supply.

To this end, Congress endorses the challenging target to reduce emissions by 50 per cent by 2025, published in the UK’s fourth carbon budget, and the need to cut emissions by 80 per cent by 2050. Action to meet these targets must be underpinned by a balanced energy policy and appropriate measures to ensure just transition for workers and citizens.

Congress does not believe that the changes needed will be delivered by the market alone. Government needs to intervene more actively both to incentivise investment in low-carbon generation, transmission and distribution networks and to ensure a stable and predictable policy framework. It is essential that the government’s proposals for electricity market reform address these requirements. Simultaneously, a policy focus on low-carbon manufacturing is necessary as, to date, the low-carbon debate has been primarily focused on supporting power sector decarbonisation.

Congress welcomes the work undertaken by the TUC in partnership with the Energy-Intensive User Group (EIUG). However, as supported by the research with EIUG, Congress is concerned that the poor implementation of environmental and energy policies in the short term could jeopardise the long-term future of energy intensive industries and limit their ability to be part of the solution to climate change. This would, therefore, impact on jobs and skills in heavy industry, have a knock-on effect on the UK’s industrial supply chain and increase ‘carbon leakage’. Most notably, the carbon floor price, which was announced in the Chancellor’s 2011 Budget, will impose an additional cost on energy-intensive industries over and above those set by the European Union and reduce UK competitiveness.

Congress notes that the Secretary of State for Energy and Climate Change has announced the development of a package of measures to mitigate the effect of government policy on energy-intensive industries but Congress is concerned about the lack of clarity on when the mitigation package will become available. Therefore, Congress calls on the government to ensure that effective mitigation policies for energy-intensive industries are developed and introduced before the carbon floor price is introduced. Furthermore, Congress commits to continuing its work to ensure that energy and environmental policies support a continuing and increasing role for UK industry in a lower carbon economy.

Congress requests that the General Council make it absolutely clear that although the government now recognises that the country’s security of electricity supply is threatened by plant closures in the next decade that failure cannot be allowed to happen. Its current policy is insufficient to ensure replacement capacity from clean coal.

The consequences of not working to secure our own supply of electricity now will endanger the life and prosperity of us all. Safe secure forms of energy in the quantities required need to be secured without delay.

Congress recognises that fossil fuels and nuclear fission can sustain the electricity generation required as part of a balanced energy policy. Each form of energy has its own positives and negatives. Gas, coal and nuclear keep the lights on at the moment although indigenous gas is running out. The country needs the development of Clean Coal and Carbon Abatement Technology applied to all sources of fossil fuel power.

Congress welcomes the work of the General Council in preparing a response to the Government Electricity Market Reform (EMR) White Paper 2011 and asks that the General Council do what it can to obtain a secure, low-carbon, affordable and safe electricity supply for the UK to all generating capacity derived from hydrocarbons.

Congress calls on the General Council to campaign for:

• i. a Green Economy Council that puts jobs, skills and growth at the heart of its mission
• ii. a strengthened Green Investment Bank
• iii. a pan-government strategy for science, engineering and technology (SET) and other specialist skills, needed to develop and sustain a low-carbon economy
• iv. greater government support for low-carbon R&D
• v. government support in key industrial sectors for Carbon Capture and Storage (CCS) and more comprehensive inclusion of industry in the UK CCS roadmap.

Mover: Prospect

Seconder: Community

Supporters: National Union of Mineworkers; BACM – TEAM

Congress believes public transport is essential to tackling social exclusion, linking communities, reducing carbon emissions and supporting sustainable growth.

As with other public services there is an all-out attack on public transport that will have disastrous consequences for users, workers and communities.

The reduction in bus subsidy and local authority funding mean bus services face cut after cut, which could tip services into a spiral of decline.

The Scottish Government’s Ferries Review will lead to the fragmentation and privatisation of publicly owned ferry services, threatening lifeline support for communities, encouraging social dumping and further reducing UK seafarers.

In addition the EU Transport White Paper threatens the privatisation of all transport sectors.

Congress acknowledges that the UK railway has the potential to double its traffic by 2030 and notes that the government-commissioned Rail Value for Money study produced by Sir Roy McNulty identifies the separation of operations and infrastructure and wider industry fragmentation as the primary reason why the railway is so unsustainably expensive.

Congress therefore regrets that McNulty prescribes further fragmentation by proposing that the private companies who run train operations are given control of signalling and track maintenance in some regions. Congress regards these as the single most important elements of rail safety that should never be run for profit.

Congress is concerned by recommendations to ‘downgrade’ many rural lines to super tram or light rail status because they are too costly and believes this will undermine the role of such lines in the national rail network by cutting out the vital ‘feeder effect’ into mainline routes.

If implemented, the McNulty review will mean massive cuts in staffing on stations and trains and in rail infrastructure and operations, leaving a less safe railway for workers and passengers.

The railways will become more fragmented, privatised operators will become more powerful, regional services will be under threat and fares will become even less affordable. The devastation of rail jobs and capacity will be increased by the scandalous decision to award the Thameslink rolling stock contract to a company outside the UK.

Additionally Congress is alarmed by plans to make large cuts to industry staff, which will threaten safety and undermine the social fabric of the railway. Congress regrets that McNulty ignores that there is no correlation between public subsidy and increased labour costs but a close correlation between public subsidies and company profits. Congress further regrets that the report contains no recommendations for dealing with excessive executive reward.

Congress also has serious misgivings over proposals to increase off-peak train fares.

Congress restates its policy aspiration of a reintegrated railway and asserts that reintegrating track and train under a publicly owned and publicly accountable structure is the only way to deliver the efficiency and cost savings the rail industry must make to grow sustainably and calls on the General Council to campaign with the rail unions and community groups to this end.

Congress agrees to campaign for the protection of public transport, including renationalisation of our railways, defending UK train manufacturing and a fully integrated, publicly owned and accountable public transport system.

This campaign should include days of action with passengers and communities and the lobbying of Parliament and local authorities.

Mover: National Union of Rail, Maritime and Transport Workers

Seconder: Associated Society of Locomotive Engineers and Firemen

Supporter: Transport Salaried Staffs’ Association

Congress deplores the decision of the DfT in June to award preferred bidder status for the Thameslink Rolling Stock project to Siemens in preference to Bombardier of Derby.

Congress regrets the attempts by the government to present the announcement as good news for British employment, when the vast majority of the jobs alleged to have been created were in maintenance, which would be undertaken by either bidder. In fact, the decision is disastrous for British train manufacturing, with 1,400 job losses already announced by Bombardier and serious fears existing amongst the workforce that the Derby factory may close altogether with a knock-on effect on its supply chain.

Congress believes that the British-designed Bombardier train was superior to that offered by Siemens, offering lighter weight, higher reliability and lower energy consumption. Congress also notes that Bombardier is a highly unionised company in contrast with Siemens which refuses to recognise trade unions in its UK rail business.

Congress calls upon the government to reverse its decision on preferred bidder status for Siemens, if necessary by conducting a completely new fast track procurement which fairly assesses the technical capability of the bidders, their record as good employers, their willingness to invest in training and other facilities in the UK, and the socio-economic impact of their proposals.

Congress reiterates its policy that the government should develop a strategy to encourage high-technology manufacturing in a low carbon economy, which requires on-going dialogue between government, industry and trade unions and which uses public procurement sensibly and creatively, including community benefit clauses, to ensure that wherever possible UK taxpayers’ money is spent supporting the UK economy.

In support of this policy, Congress instructs the General Council to campaign to have the European procurement rules strengthened to clarify the use of social and economic factors as a legitimate part of public procurement contracts, including the implications for the local labour market and lifetime costs of the contract.

Mover: Associated Society of Locomotive Engineers and Firemen

Seconder: Unite

Supporter: Community

In particular, Congress is disturbed by the proposals to:

• i. more than halve the number of Coastguard rescue stations
• ii. remove the provision of emergency towing vessels
• iii. scrap the Maritime Incident Response Group specialist service for fighting fires onboard ships
• iv. privatise the search and rescue helicopter service
• v. end the long-distance maritime search and rescue support provided by Nimrod surveillance aircraft.

Congress believes that the Maritime & Coastguard Agency (MCA) is chronically under-staffed and under-resourced and that this is having a severely detrimental impact on Britain’s status as a major maritime nation – with consequences including the UK’s failure to ratify the Maritime Labour Convention 2006 within the timeframe urged by the European Commission, and the Commission’s decision to begin proceedings against the UK for its failure to implement the European Port State Control Directive.

Congress therefore calls upon the UK government to abandon the ill-advised proposals for dangerous cuts in the maritime safety net and to ensure the MCA has the staff and the resources it needs to match the marked rise in demand for its services.

Congress also urges the UK government to act urgently to discharge its national, regional and international responsibilities by ratifying the MLC 2006 and implementing the European Port State Control Directive.

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