Unions warn government of workers' anger if opportunity missed to
stop redundancy rot
12th March 2009
On the eve of a key Commons stage of a bill that would
boost redundancy pay for three out of every four UK workers, unions
are warning the government not to miss the chance to give a helping
hand through rough times.
They are concerned that the government looks set to oppose the
bill, meaning its chances of making it into law are next to
zero.
Unions claim that the drop in value of statutory redundancy pay
(SRP) is punishing workers at a time of desperate financial need,
and is upholding the UK's status as an EU nation where it is cheap
to sack workers.
They want the government to seize the opportunity presented by a
private member's bill to stop the rot in redundancy pay, and say
that this would show working people that the government is on their
side.
The Statutory Redundancy Pay (Amendment) bill, sponsored by
Lindsay Hoyle MP and backed by the country's leading unions, has
its vital second reading in the Commons tomorrow (Friday 13th
March, 2009). The bill would remove the cap on - and increase the
value of - the state basic for redundancy pay to bring it into line
with average earnings.
Support for the measure is growing with many backbench Labour
MPs joining the unions in arguing that now more than ever, it is
vital that the government honours its manifesto and Warwick
commitments to working people to increase redundancy pay.
Tony Woodley, joint general secretary of Unite and chair of the
Trade Union Liaison Organisation (TULO), said: "It is a disgrace
that UK workers can be so cheap to sack. One of my members, a
skilled worker with 16 years service, was shown the door with only
£4,500. How can that be expected to help him to keep a roof over
his family's head and food on the table until he's back at
work?
"This rot must be stopped. If money can be found to bail out the
bankers who created this crisis, then it can be found to help
ordinary people who are struggling most.
"Workers will not forgive the government if they fail to grab
the clear chance now of helping them through tough times this bill
presents."
Derek Simpson, joint general secretary of Unite, the UK's
biggest union, added: "People understand that this is about social
justice, about making sure that workers get a fair deal when facing
hard times.
"Redundancy pay which is caped at around only half of average
weekly earnings is an insult to hard-working people. Action now by
government to drag redundancy pay back into line with the real cost
of living would be right and popular, it would ensure Labour makes
good on an outstanding commitment and with political will, could be
in place before the summer.
"Now, more than ever, working people need a helping hand. They
expect a Labour government and Labour MPs to be the first to offer
it and will be entitled to ask searching questions if they do
not."
According to the unions, SRP has drifted so far away from real
wages in value that it is now worth around only half of earnings,
compared to the 200 per cent it represented when introduced in
1965. The result is that workers are losing out on thousands of
pounds at the very time they need it most.
Workers have been contacting the unions to report dramatically
low redundancy pay packages, including:
- One energy worker with 45 years experience who ,when made
redundant soon, will receive SRP equivalent to only two months'
wages;
- A manufacturing worker made redundant after 17 years who
received only £4,500 calculated on SRP;
- A construction worker who received £5,775 in SRP but had it
been brought into line with earnings would have received £8,448, a
difference of £3,073;
- A charity worker made redundant after eight years and paid only
SRP, denying him thousands of pounds.
Lindsay Hoyle MP was third in the private member's ballot and a
Commons motion supporting his bill has been signed by over 130
Labour MPs, making it second only to postal privatisation plans in
the list of MPs' concerns.
Lifting redundancy pay was a 2004 Warwick commitment and a 2007
manifesto pledge. Without government backing, however, this bill
which would deliver on these commitments, cannot succeed.
The bill is backed by Unite, Aslef, Community, CWU, GMB, TSSA,
Ucatt, Usdaw, Unison, TULO and the TUC.
ENDS
For further information contact Pauline Doyle (Unite) on 07976
832 861
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