Showing newest posts with label privatisation. Show older posts
Showing newest posts with label privatisation. Show older posts

Monday, June 11, 2007

Can the forward march of Labour be restarted?

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The situation that the left finds itself in after the defeat of the McDonnell bid for the Labour leadership is a complex one. A bit of a debate has broken out about this around a statement issued by Socialist Resistance (SR) This was published on Liam Mac Uaid’s blog :

The key passage is: “McDonnell’s defeat throws the Labour left into serious crisis. No spin can hide it. The project of reclaiming the Labour or the idea that the Labour Party is a fruitful arena for the left to work in have been dealt a devastating blow.

“All this has implication for Respect, which should be taking the initiative to open or re-open a dialogue with those on the left who are currently not in Respect as to how they see the way forward.

“The Morning Star and the CPB are a case in point. They are likley to find it increasingly difficult to cling to a policy of reclaiming Labour. Apparently a new discussion has already opened up on this internally in the CPB. The Morning Star had already called a conference in June on “Politics After Blair” at which the issue will now be unavoidable.

“But Respect needs to be open and flexible in this situation to any new forces from the Morning Star or the trade union left. It should do whatever is necessary to ensure that new forces have space to make their influence felt. If it can do this it could break it out of its current impasse and open up a new stage of development.
“Respect’s task in this process is to turn the tide of politics back towards the left. Rebuild ideological and practical opposition to the market. Work with the left in the unions to build an independent pluralist left alternative alongside the struggle to regenerate the unions and rebuild trade union strength and organisation.”


To which I posted a comment to the effect that SR are making two mistakes: i) in not understanding that Respect is not a vehicle around which left unity can be built; and less explicably ii) that SR seem to completely fail to understand the political perspective of the CP.

I concluded my initial remarks by saying that currently “the building blocks for any serious alternative to Labour are utterly absent, but where the situation isn't hopeless either.”

Given the undemocratic manoeuvrings in and around Respect, the media galavanting of George Galloway, and the dispersal of the layer of left social democrats who had aggregated around the Socialist Alliance in various parts of the country, then I would characterise Respect thus: “Who is Respect? Galloway or the SWP? Anyone else? Will either of those forces play the productive role you are calling on them to play? If there is no actually existing force within Respect who will steer the organisation to play the role you think it could play, then how could it happen?

“Even were the SWP or Galloway to have a damascene conversion, would anyone on the activist left trust them? No-one is going to join Respect, or particularly want to work with them. The whole project is basically an embarrassment now.

“If we are looking for a left unity project, then we have missed the boat. The wave of left activists who left the labour party after Clause IV and over the Iraq war could have been attracted to an organisation that respected labour movement norms of behaviour. But were never going to be attracted to respect.”


SR are utterly self delusioonal if they believe that the CP or any significant left from the unions would touch Respect with a barge. Even were the Political Committee of the CP so minded, and I have no reason to think they are, then the membership would probably not agree to it.

The failure of McDonnell’s campaign has produced unhelpful knee-jerk reactions from Respect and the Socialist Party that the Labour Left should join them in their equally unsuccessful campaigns outside the Labour party. They remind me of the mayor of Amity, swearing that the water is safe. For example Thornett writes: "It¹s right to say to the Labour left, and those like the CPB (and some of the trade union left) who have clung to a Reclaim Labour policy for so long that after the McDonnell collapse the only rational conclusion in the cold light of day is that the Labour left has no useful future in the Labour party. There is no point in saying anything else."

In fact this approach is completely misguided. Instead of looking at whether we can reconstitute the greatly diminished left around already flawed projects, we need to take stock of the current political situation.

The overwhelming features are i) that the right within the Labour Party are utterly triumphant, and their victory is structurally irreversible. ii) The Labour party has failed to make the same shift to the right with its electoral base – the enduring progressive and social democratic attitudes of labour voters was well described recently on the SWP blog, Lenin’s Tomb ; iii) that the far left have failed to break that progressive base away from electoral loyalty to the Labour party; iv) the unions – on the whole - maintain ideological and political opposition to New Labour values, as can be seen by the way the unions make the running in opposing PFI, Academies and private equity. v) the structural problems of the unravelling British state.

So how can we seek to harness the positive aspects of the current situation to strengthen the left?

Alan Thornett has replied to me and asked whether I think Respect’s genuine electoral successes are the “wrong type of voters”. In a sense they are, but not in the sense he implies. Respect has done well particularly with that minority of voters for whom the war is the overriding political issue, but for the majority of the working class that is not the case, and opposition to the war has been subsumed into the general cynicism about politics.

This is where SR’s misunderstanding of the CP’s position is clear, because the CP are talking some sense over this issue:

As Robert Griffiths, the CP General Secretary: recently wrote : “But what is needed now more than ever is for the trade union movement, once again, to take on its historic responsibility to ensure the existence of a mass party of labour. For all the assistance that socialists and communists can render, the unions alone have the human, financial and organisational resources, as well as the class interest, to take the necessary steps.

“Together with the non-sectarian left, they need to work out a political strategy which takes account of current realities. For example, most major unions remain affiliated to the Labour Party and are unlikely to leave it in the near future.
“The first steps in this direction might be for all the major unions to affiliate and participate fully in the Labour Representation Committee. Deals between union leaders in smoke-free rooms to win resolutions at Labour Party conference are not enough. The active involvement of unions and their members in the LRC would be the clearest declaration of political intent.

“The LRC could itself go the extra mile and allow full membership status to socialist organisations including the Communist Party, respecting their right to participate independently in elections in return for an agreement not to campaign for the dismantling of the Labour Party through further union disaffiliations.
“In their relations with the Labour Party, unions should stop all financial, logistical and political support for MPs who consistently vote against key union policies. “


SR are correct to highlight the Morning Star conference as important, not least because the CP still able to punch above their weight, and alongside John McDonnell, we also have Ken Livingstone and Jon Cruddas attending. At the deputy leadership hustings at GMB congress last week Cruddas came out in favour of starting to renationalise public utilities.

The Labour Left were crushingly defeated in the PLP, but the McDonnell campaign has gathered together a nucleus of activists, who are less isolated and more motivated than they were before the campaign. It is as fruitless for us to argue with then that they should leave the party as for them to argue we should join it – comrades need to come to their own conclusions.

The way forward is for all the left, inside and outside the Labour party, to promote the trade unions in exercising their own political voice. By and large, the unions will not abandon their stake in the labour party until they have exhausted its historical usefulness. But currently they are not making enough demands on the party, and so not testing the usefulness of the link.

The Labour Representation Committee could become a vehicle for the unions to exercise collective political voice and if a substantial section of organised labour is to draw the conclusion that a party of labour needs to be refounded, as they effectively did in 1931, then the LRC could be the body around which that debate tales place.

Of course there are serious obstacles, not least of which is the LRC’s requirement for Labour Party membership, which is a serious obstacle to many grassroots trade unions and community activists. But again the way forward is for local trade union bodies to affiliate and open a dialogue about being able to send delegates who are not individual LP members.

In the meantime, we have largely missed the boat in England of building an electoral alternative to New Labour. There may still be a case of standing against Labour, but this can only be done by building grassroots links first, not by building the roof before the walls like Respect and the CNWP have done.

There is serious work that can be done, but the vehicle for that work is not Respect nor the CNWP, the focus remains where it perhaps always should have been, with organised Labour in the mass organisations of our class.

Monday, May 14, 2007

Crucial battle in Royal Mail

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The Communication Workers Union (CWU)’s executive is balloting all members for strike action. If it goes ahead this would be the first national postal strike in a decade.

Interesting questions are raised by the build up to this dispute relating to New Labour's economic neo-liberalism, the failure of the unions to oppose this ideologically, and a new direction in the SWP's industrial policy.


Deputy General Secretary Dave Ward has said “Royal Mail has abandoned our agreed approach in favour of a short sighted Business Plan that amounts to a cost cutting frenzy, reductions in pay and a defeatist attitude towards competition. This Business Plan is designed to fail and demonstrates a real lack of vision by the people running the company”.

The agreed approach that Dave Ward is referring to is “Shaping the Future” by which the CWU agreed a shared framework with Royal Mail for dealing with the impact of competition and automation.

According to the CWU’s account: “a centre piece of the agreement was Royal Mail’s commitment to negotiate change, whilst focusing on higher basic pay and permanently raising the value and status of jobs by April 2007.”

Yet now, according to the CWU: “Royal Mail’s business plan will result in 40,000 job losses, attacks on pension arrangements, closures of mail centres and delivery offices and a reduction in pay for postal workers to ‘the market rate’. It will also result in a reduction and decrease in quality of service for the public. Royal Mail claim that postal workers are overpaid by 30%.”

The union is absolutely right to stand up to management, and should be actively campaigning for a YES vote for a strike.

But there is a need for serious questioning of the CWU’s approach, and how they have ended up where they are.

So-called “liberalisation”, opening up the publicly owned Royal Mail to competition, was introduced in January 2006, as a result of EU legislation, but the free market zealots of New Labour decided to deregulate three years earlier than competitor countries. The response to this from the CWU was revealing. Billy Hayes complained “We all know that postal liberalisation is coming, but the CWU cannot understand why a British regulator [has placed] the nation’s postal service at a competitive disadvantage” (emphasis added)

All along the CWU has accepted that liberalisation and competition could not be opposed, and therefore even if Royal Mail does stay in the public sector, it will be subject to market pressure. So it will be run as a business not as a public service.

Despite “Shaping the Future” being hailed as a landmark agreement by the CWU, literally before the deal had even been approved by the membership, the Royal Mail management were imposing changes in work practices outwith the agreement, in pursuit of profitability. So why did the CWU recommend acceptance?

The Executive Committee of the union had instructed the union’s leadership to ballot the members for a national strike, and John Farnham, a Postal Exec member claims that the unions leadership failed to carry out the instructions of the EC. This was a very serious situation, but in fact there was no seriousness about a fight at the top and all but one member of the EC voted to accept “Shaping the Future”, including two members who are involved in the SWP’s Post Worker publication. The SWP’s Jane Loftus failed to attend the EC on the crucial day.

According to one of Post Worker’s supporters on the exec, Norman Candy, the EC were aware that the mood of postal workers was up for a fight, but they conceded the strategic arguments over competition and profitability, in exchange for some debatable tactical gains over pay. As a Socialist Worker leaflet correctly explained, management had retreated slightly on pay, but the other "gains" were simply to allow the CWU to continue to organise as before, and an efficiency agreement that might bring more take home pay, but at the expense of jobs.

It seems remarkable then that the CWU exec approved it, and there is some talk that Billy Hayes had shaken hands on a deal with a government minister even before the EC met, which was why the ballot never happened.

But the real issue here is that the CWU needed to take a political stance against liberalisation, and demand that Royal mail continues to run as a public service. This is a long haul argument, but is one that the RMT has effectively mounted over renationalisation of the railways. The advantage is the not only can we start to turn the tide over the political idea there is no alternative to the market, but it would make the workforce more confident and inspired to defend themselves. It is never a good way to fight, to first concede that your opponent is correct in principle!

The role of the left in the union also needs to be examined. The SWP led publication Post Worker (PDF) took no position on the vital vote over “Shaping the Future”. Instead of a clear recommendation for a NO vote, Post Worker published a “debate”, giving most space to NEC members Norman Candy and John Farnan arguing in favour of acceptance.

In the face of the EC recommending acceptance, and no clear opposition coming from anywhere, not a single Royal Mail office voted against the deal.

The rationale behind the SWP’s “Rank and File” papers is that they bring together militants who are prepared to organise independently from the official union machine if needs be. Of course there is always a tension in that any genuinely independent grassroots group may disagree with the position of the SWP – as it did here. The SWP did oppose “Shaping the Future”. But there were several grassroots activists who wanted Post Worker to come out with a clear NO recommendation, and it seems the SWP stepped back from this because it would have meant breaking from theie supporters on the EC.

Over questions of tactics there is room for compromise and manoeuvre. But Post Worker should not have compromised on a question of strategy and principle and no ground should have been given to the idea of profitability and opening up Royal Mail to competition. If they had to break with some of their non-SWP supporters, then so be it. In actual fact, this seems a decisive break with the historical industrial policy of the SWP – but according to the reports of the SWP’s last conference, the industrial section heard no debate about this, although Socialist Worker did report how a postal worker has set up an anti-war groups at his sorting office!!

So the current dispute is a consequence of management pursuing profitability, which the CWU has already conceded in principle. Last year the issue was a bit abstract, and many posties may not have realised how “Shaping the Future” was going to affect them. This time around the issue is not abstract, it is a concrete and immediate threat to jobs, pay and conditions.

The CWU needs to work for the biggest possible vote for a strike, and the left in the CWU needs to consider how to raise the issue of opposing in principle the operation of the market.

This is a chance for the CWU, and the left in the CWU, to recover ground they lost last year.

Monday, April 23, 2007

Job Centre Plus: privatisation put on back burner...

In a leaked letter to the Guardian, Chief Secretary to the Treasury, Stephen Timms, told Secretary of State for Work and Pensions, John Hutton, that -

'... it might be helpful to clarify the position reached on the funding of the proposals set out in David Freud's report.

‘As the chancellor made clear, it is not possible to develop or pilot a new funding model in the immediate future.'

Hutton welcomed the Freud review as setting out a 'compelling framework for the next stage of welfare reform', Budget 2007 report gave no commitment as to when any greater private and voluntary sector involvement in the provision of employment support may begin.

And Hutton and Murphy were rather cock-a-hoop at the prospect of the voluntary and private sector providers carving up the spoils of Job Centre Plus. And proposed incentives included providers eligible for financial rewards for helping claimants to find and stay in work.

Has the proposal of part-privatisation of Job Centre Plus bitten the dust?
We shall wait and see...

NB: Bad news......New guidance has been issued by the DWP regarding lone parents and work-focused interviews and will come into effect from the 30th April 2007. The main points being:

to be interviewed every six months; and
in certain areas with an only or youngest child aged 11 to 13 to be interviewed quarterly.