Vestas occupied!

Socialist Worker reports:

A group of workers have occupied the Vestas plant on the Isle of Wight. Their brave stand is in defence of 600 jobs under threat and to keep production going at almost the only British producer of wind turbines.

The government says it plans to create a million “green jobs”. Meanwhile, in the real world, this wind turbine factory is being closed and Labour does nothing.

All 600 workers at the factory face redundancy.

The factory is the largest employer on the island.

Rush messages of support to 07980 703115 and 07970 739921 and 07733 388888.

E mail Messages to savevestas@gmail.com

Demonstrate Save Vestas, Save the Planet, support the occupation. Friday 24 July, 5.30pm, St Thomas Square, Newport Isle of Wight

Rail for the people – or Brian Souter?

That’s the question. Should we have public transport or a subsidised cash-cow for a man made wealthy by the state?

RAIL UNION RMT today stepped up their pressure on the government to remove National Express from their rail franchises as new research shows that the company has made nearly half a billion pounds in profits from their rail operations in the past 10 years while sucking in nearly £2.5 billion in public subsidy over the same period.

Just under two weeks ago Transport Secretary Lord Adonis announced that he was taking the failed National Express franchise on East Coast Mainline back into public ownership. Since then, the company have made bullish noises that they will fight to retain the rights to run the service and have also thrown down a gauntlet to the government over National Express East Anglia and c2c which they should be stripped of under the “cross-default” clause.

Today, Tuesday July 14, a parliamentary adjournment debate will take place under the title Rail Services on the East Coast Mainline led by York MP Hugh Bayley where a growing number of MP’s will be applying pressure on ministers for National Express to be stripped of their rail franchises.

Bob Crow, RMT general secretary, said today:

“It’s now two weeks since the government announced that they would be taking decisive action over National Express on the East Coast and we are stepping up the pressure for the company to be dumped as a matter of urgency and for their franchises to be nationalised on a permanent basis, not as a short term, crisis measure.

“National Express have been taking us all for a ride. Not only have they milked the best part of half a billion pounds out of their rail operations but they have sucked in £2.5 billion in public subsidies in the process.

“Now National Express are leaving a potential rail funding gap of £1 billion behind after their chaotic performance on the East Coast Mainline and once again it’s the travelling public and rail workers who are left to pick up the pieces. National Express, along with the rest of the rail privateers, should be kicked off the tracks for good.”

I’d go further than Bob – I’d like to see the privateers prosecuted for their theivery.

Banksters Paradise – govt allows bonus culture to continue at our expense

Let’s now consider decency. Or rather, the lack of it.

UKFI, which owns 70% of RBS on our behalf, has approved an obscene pay package for the bank’s boss.

Truly, Fred the Shred will be proud of his replacement.

Stephen Hester will be paid almost ten million pounds for his work – which will include sacking thousands of bank workers whose taxes are invested in RBS.

The govt could have acted to limit bankers’ greed, just listen to what the other shareholders think of this:

Roger Lawson of the RBS Shareholders Action Group said: “It is absolutely outrageous that the government does not use its power to bring the remuneration of bankers in these companies down to a reasonable level.

“Do they need to pay him this much to make him work harder?”

Mr Lawson warned that basing a bonus on share price would “just encourage risky behaviour.”

So, who runs UKFI then?

Richard Murphy lists the people that Chancellor Darling picked to manage our investments:

Glen Moreno – Acting Chairman – ex Citigroup and Liechtenstein banker
John Kingman – Chief Executive – civil servant ex private sector, formerly in charge of financial stability in the banking sector for the Treasury (which he clearly did not get right)
Peter Gibbs – ex Merril Lynch
Michael Kirkwood – ex Citigroup
Lucinda Riches – ex UBS
Philip Remnant – ex Credit Suisse
Louise Tulett – career civil servant

All the bankers are from organisations that failed.

And Darling expects to effect change?

Not a hope – not with this lot.

They’ll do all they can to promote banking – and that’s just not good enough when the real economy needs less banking and more real jobs.

That a Labour government – a Labour government! – is allowing the banks to keep their gravy train going at the taxpayers’ expense should give trade unionists pause for thought. Especially since the banks are cutting thousands of jobs and turfing people out of their homes.

Even the Tories had to criticise the obscene pay-out to Hester.

This will be a major embarrassment for New Labour. It will not be allowed to stand.

Labour’s recession is far from over

The big story of the past week, along with the preceeding resignations by Blairite ministers trying to topple Brown?

Millions of Labour supporters stayed home; two fascists won seats in the European parliament on a reduced turnout. Yes, their vote fell, but they won seats because of the low turnout.

I won’t give you the obligatory post dedicated to how and why they made a breakthrough. Oxygen of publicity and whatnot.

So, Brown’s clinging on, having ceded more power to Lord Mandelson, who is now virtually deputy Prime Minister – and unelected, like many in the reshuffled Labour cabinet. Having faced down the parliamentary party in a stage-managed meeting, Brown’s hoping that an economic recovery will save his premiership.

Darling, in situ as Chancellor, despite rumours the PM wanted to replace him with Ed Balls, warns against complacency in seeing “green shoots” of recovery. As well he might, he knows how much government spending will have to be directed towards those made unemployed. Oh, and the banks – mostly owned by the public these days – they aren’t lending to our manufacturing base…

Mandelson, negotiating with the new owner of Vauxhall, is unable to guarantee jobs will stay in the UK. So much has been devoted to bailing out the banks, there’s not much room for manuoevre – not unless there’s another radical change in approach.

A senior Tory let slip that they intend to cut spending by 10% on all but health, education, and international aid, if they win the next election. To Labour’s cries of “Tory cuts!” – the nearest they get to a class analysis of Her Majesty’s Opposition – the reply comes, from both the Tories and the corporate press, that Labour is committed to 7% spending cuts across the board.

As Ann Pettifor has pointed out, to cut spending in the next few years will be a disaster for an economic recovery:

As things stand, any fragile signs of economic recovery will quickly be crushed by the failure of government to intervene and spend at an appropriate level. Instead, government cutbacks will impact with considerable force on the fragile economy, and will hurt the middle and working classes. As the year proceeds many will discover the true, and often pitiful value of their pensions, and will be hurt by cuts in services and job losses in the public sector. This will hamper recovery and deepen, if that is possible, the alienation of British voters from the Labour government.

And don’t forget, this is the woman who was writing about the debtonation before it began.

She continues in the same article to outline the blades which may slice through any “green shoots”:

Foreign direct investment could fall globally by 45% this year, according to the same report, and corporate profits will decline by 20-25%. Global trade is down 25%, and the EIU predicts trade will be down by 10-15% by year end – the worst figure since 1945.

In April this year, consumer prices turned negative in the US, the UK, Germany and Japan. This may be good news for consumers, and may help lower food prices for the poor, but it is not good for the economy as a whole. Businesses cannot profit from negative prices, so they are bankrupted and lay off employees. The rocketing numbers of unemployed (whose plight is seldom taken seriously by orthodox economists) will cut back on borrowing and shopping and may even default on loans. This is not good news for the productive sector of the economy, and it’s very bad news for the banking sector. Banks have still not fully de-leveraged the debts on their balance sheets. Now, thanks to rising unemployment, non-performing loans are “set to rise sharply around the world over the next 12-18 months” according to the EIU. This is very scary, if one considers that there are still $600tn of liabilities in the form of derivatives on balance sheets out there – backed up by a mere $38tn of so-called credit default swaps (in reality a form of insurance on derivatives).

More banking trouble, in other words…

Pettifor concludes:

Nothing has been done to restructure the global economy and limit financial imbalances – including Anglo-American deficits and the Chinese surplus. Indeed these matters were not even discussed at the last G20 summit. Big, reckless money continues to be made from currency speculation, just when the global economy requires currency stability.

We – employees, consumers, investors and borrowers – have been misled and fooled by the economics profession and finance sector for years before this crisis. As a result of our gullibility, we lost $60tn of wealth in the past year. We would be wise now to dismiss their vain efforts at confidence-boosting, and instead rest our judgments on the real world economic outlook.

Back to politics, word is that Balls and Darling are split on how to present the supposedly “inevitable” cuts in public spending.

Hardly confidence boosting!

As far as this modest blogger can tell, the debate isn’t on what to cut, but on when to admit the cuts are coming.

In the leadership challenge that never was, the unions didn’t bark – despite the looming cuts and failure to aid the car industry. For sure, a change of leader – even to someone more in touch with the needs of ordinary people – would bring forth a general election at the worst possible time. With MPs expenses hanging in the air, Labour voters are unlikely to show up at polling stations and register support for the party any time soon.

For the Labour grassroots, there’s no difficulty in choosing between Trident, PFIs, the Afghan war, ID cards – or investing in a new generation of social housing, a Green New Deal, and helping workers to stay in their jobs. However, there’s no means by which the party’s grassroots can influence policy; even the parliamentary party has a tough time defeating unpopular measures, like Royal Mail privatisation, which hasn’t yet been ditched.

According to opinion polling, most voters agree Labour has abandoned its traditional supporters and believe that the Tories are most interested in helping out the rich. So what gives with the BNP victories, then? Well, it’s worth remembering that the Green vote was up – they campaigned on job creation through a Green New Deal to invest in energy efficiency and renewable energy industries, all very practical. But if your main themes are not echoed in the media, it’s difficult to get ahead. The upcoming by-election in Norwich could see the Greens win their first MP, should the support be forthcoming.

In the meantime, I’m wondering exactly where this announcement by John McDonnell will lead:

If we go beyond November without real change visibly under way, what hope is left of Labour not only remaining in government but also surviving as an effective political force at all?At that stage the only responsible act in the long-term interests of our movement would be to offer a real change in political direction by mounting a challenge to the political leadership of the party and letting the members of the party decide. Let me give notice now that this is the path I will take. If this route is blocked again by MPs failing to nominate, then the alternative is Labour MPs making it clear at the next election that they stand on a policy platform of real change as “change candidates”.

Of course, they will be standing as Labour candidates but binding together as a slate of candidates committed within Labour to advocating a change programme, setting out the policy programme they will be advocating as a group and supporting in parliament if elected. Only in this way can we demonstrate to the supporters that want to come home to Labour that there is the hope and prospect of change.

I can’t see a policy debate being tolerated, not without the capitalist media emptying another bucket of shit over the heads of New Labour and calling for a Cameron coronation. Hence the talk of the Blairites toppling Brown without recourse to either the PLP, the members, or the unions – with the Cabinet nominating one of its ranks to become party leader and PM.

So, the question is, will McDonnell and co. defect to form a new workers’ party? If not, will parties like the Greens back this new “change candidates”?

Nationalise Vauxhall!

Car production in the UK is efficient, let no one fool you about this. Plants which produce cars are linked to plants which produce parts – there’s a supply chain to consider. Also, many work in other services which are dependent upon skilled workers spending their wages.

We need to have cars which are energy efficient – though effective demand has slumped globally, we all know this is due to our chaotic economic system, not to the car being made obsolete.

It’s not Rover!

Four years ago Rover went under – the government could have nationalised the company and set up a joint-venture with the Chinese, the company ended up in China selling to their domestic market.

Instead the government let Rover go, and now many of the skilled workers formerly employed by the company are in lower skilled and lower paid jobs.

The same mistake cannot be made again – the government has bailed out the banks which have failed to get lending again.

There’s no doubt that if Vauxhall is bailed out, we’ll see a return – with new energy efficient cars being made at UK plants for sale across the world as demand recovers.

Protected?

Whilst other EU govts get their checquebooks out, the UK govt is nowhere to be seen. At the negotiations, there’s no one to represent car workers in Luton and Ellesmere Port – remember, UK workers are easiest for big businesses to sack in the EU.

It’s a sickening sight – “Lord” Peter Mandelson pretending he’s got a guarantee against mass lay-offs and blaming unions for scaring workers when he knows that’s what will happen.

At least he’s the sense to stop wittering on about protectionism – we all know that when the rich cry poverty the money flows from the government to protect their corrupt system.

But when thousands of skilled workers face uncertainty, New Labour are too spineless to step up to defend them, fearful of a backlash from the super-rich. Mandelson and co. are so eager to please them that they will allow no concessions to working people – look at his actions over Royal Mail where most people oppose privatisation, even within New Labour.

The threat of a good example!

Car workers at Luton and Ellesmere Port can follow the example of the Visteon workers who occupied their plants to demand justice.

There would be no shortage of support, no limit to the solidarity that others would demonstrate.

We own the banks now – we can get them to invest in the car industry.

Don’t despair – organise, occupy, nationalise!

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