Never mind the bankers, what about the workers, asks Unite

14 January 2009

Ministers must act now to stop the jobs carnage sweeping Britain, the joint leader of the country's biggest union said today (Wednesday).

Tony Woodley, joint general secretary of Unite the Union, said that the Government needs to do more to help the millions of workers living under the threat of redundancy as the economy continues to deteriorate.

Mr Woodley said: "Labour has made important moves towards intervening to keep the economy afloat and has certainly been more decisive than the do-nothing Tories would have been.

"But it has not been enough. So far the greedy bankers have been propped up - but they have done little or nothing for industry. All the big sums of money being bandied about are not getting to the sharp end - the real people facing job losses and poverty. Our priority must be using that public money to save jobs and skills, not to fund redundancy.

"I am worried that the Government is losing momentum in grappling with the immense problems caused by the spivs and speculators. It is not enough trying to breathe life back into the free-market which got us into this mess.

“We desperately need to see creative, strategic action to save jobs, such as job sharing and reduced hours in industries where demand has plummeted because of the crisis, with pay losses made up by the state.

"First of all, I want to see a properly-funded strategic plan for manufacturing, of the sort that is operating in France, Spain and Germany. This must be backed by a readiness to take control in sectors vital for the future of a high-skill high-tech industrial base. We need our factories and skills there for when the economic revival comes – if they go, they are gone forever.

"We therefore urgently need targeted assistance for manufacturing. While other governments are now looking at their second assistance package, we have yet to see our first. Ministers must stop dilly-dallying on aid for the car industry and announce a plan now, particularly for Jaguar Land Rover. Further, it must help the aerospace sector to ensure that apprenticeships at EADS and other firms do not start to go down the drain.

"Secondly, while we recognise the important steps the government has taken to get credit flowing again, this is not going to be sufficient. The Government already has the power to make this happen by using the state holdings in major banks.

"These banks are now failing the British people. They have swallowed billions in taxpayers' money yet are refusing to do their bit to keep companies alive. Bankers are putting industry on starvation rations while they fatten themselves up again.

"If the banks won't act then the Government must stop pandering to them with further inducements to do the things they should already be doing. It should redirect money from the useless bankers and instead set up a national, state-owned people's bank - one that puts people, communities and our economy before profits for shareholders.

"Thirdly, we need that public works programme to create jobs, including council-house building, transport and green infrastructure projects, up and running. Our plans still look timid when set alongside Barack Obama's ambitious package in the US," Mr Woodley said.

ENDS

For further information, Pauline Doyle 07976 832 861