Poverty, inequality, greedy Fat Cats ... why we still need strong

IF TRADE unions did not exist today, someone would have to invent them.

Without unions Britain would be an even more unfair and unequal society than it is already. The rich would be even richer and the poor even poorer.

We would be a less successful economy, falling even further behind our rivals in this increasingly competitive world.

We can see what has gone wrong in Russia. Untamed capitalism has been let rip.

Ordinary people have been given no protection. A totally free market reigns. Markets unleash powerful forces and much energy, but unless they are made to serve the common good, they will sweep the weak and vulnerable before them. Left unchecked they cause the kind of collapse we see in Russia today.

Unions are one of the great civilising influences in any economy. And that is still our mission in Britain today.

Union campaigning has brought about the minimum wage. For the first time, poverty pay and rank exploitation will be illegal.

Union efforts have brought about the Working Time Directive. At the end of the month everyone in Britain will have rights to rest breaks, holidays and - although the small print needs watching - most will have protection against working more than 48 hours a week.

Our efforts have secured a radical programme of government pledges for people at work in the Fairness at Work White Paper.

It will be harder for bosses to sack people unfairly. People in trouble, or with a grievance, will be able to call on a union official to help them with their employer. There are new rights for parents, both mothers and fathers, to have time off to care for sick children.

When a majority of workers have union cards, or more than 40 per cent vote for a union in a ballot, then employers will have to recognise a union.

Bad bosses say that unions get in the way and that new rights for employees hold their business back.

This is rubbish. Firms need loyalty and commitment from their staff. They will not win this by bullying and exploitation.

The modern way is partnership, and today's trade unions recognise their responsibilities to contribute to company success. Without this there will be no job security, poor pay and worse conditions. But our civilising mission still has a long way to go.

After the 18 Tory years the United Nations, in a shocking report last week, said Britain was now one of the most poverty-stricken countries in the developed West.

And this is not because there is no money around. The super-rich are doing very well, thank you very much.

Directors' pay has been going up four times faster than everyone else's. They do not seem to live in the same economy as the rest of us. Whatever happens their pay goes up and up.

More than 400 directors earn more than pounds 500,000 a year. Fifteen earned more than pounds 5million pounds last year.

The 260 partners in one top legal firm shared an average of pounds 478,000, a rise of more than a third from the year before.

The total cost of all BSkyB's directors is pounds 12 million a year, and will probably rise sharply if they get away with their capture of my team, Manchester United.

It's no wonder the Bank of England says it is worried about high pay rises.

But the truth is that very few of us have seen our wages go up by more than a few per cent. Everyone who works in the public sector, nurses, teachers, council workers, have been told their pay will continue to fall behind.

Yet interest rates are being kept high, because the Bank says it is worried about inflationary pay deals.

High interest rates are certainly biting. They are bad news for companies trying to export. They deter investment. Those of us who do not share in the directors' bonanza still find our mortgages higher.

Yet the Fat Cats enjoying the cream of these pay rises can shrug off high interest rates. They just pay themselves more.

And the Bank of England tells us "unemployment is below the natural rate" - close to saying "unemployment must rise."

The Government is doing much to help; minimum wage, Working Families Tax Credit, New Deal for young unemployed, better child benefit will all help lift people out of poverty.

But more needs to be done and unions have a role to play. Making sure the low paid get a fair deal; signing more members, particularly in industries where bad bosses reign unchallenged. Helping people get the new rights the government promises.

Tomorrow our annual Congress starts. It will be a lively week. We will no doubt have some strong things to say. But if you hear anyone having a go at us, just remind them of this.

It was trade unions that brought in the weekend.

Copyright 1998 MGN LTD
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