News digest 15 June 2011

The digest begins with the latest on the NHS U-turn and the end of weekly rubbish collections while Southampton’s refuse workers are still on strike, more mail jobs could go while bank bosses are coining it in, justice is taken away from the poor, there’s trouble at Tesco and inflation remains stubbornly high, while some papers continue to have it in for Ed Miliband and there’s possibly a comical end for Blair…

NHS U-turn – Cameron defends his so-called rethink on the NHS saying his decision to introduce the changes was a “sign of strength” but Unite warned that the government’s warm words about taking on board the main recommendations of the Future Forum report could be seriously undermined by EU competition law. The role of the regulatory body, Monitor, in promoting the contradictory aims of choice, competition and collaboration could see the private sector take control. Unite national officer Rachel Maskell said: “The battle to save a universal, joined-up NHS, where the patient, not profit, is the guiding principle is not lost … we urge MPs to redouble their scrutiny of the legislation when the bill’s progress resumes through parliament.” Scrutiny will show whether the government has really ripped up its plans or whether it will sneak through more back door privatisation (Mirror p6-7, Sun p6, Express p15, Mail p6-7, Times p10, Indie p1-3, Guardian p2/8-9, Telegraph p6, FT p4, Morning Star p3, Unite release).

Weekly collections to go – And another U-turn, Eric Pickles has admitted defeat in his plea to get councils to either retain or reintroduce weekly rubbish collections, perhaps he could have argued harder for a better financial settlement for local government. As a result environment secretary Caroline Spellman was sent out to unveil a new waste review – which omitted the pledge on weekly collections – instead focusing on zero waste and banning a wider variety of materials from landfill (Mirror p15, Express p1, Mail p1, Times p8, Indie p10, Guardian p7, Telegraph p11, FT p5).

Council challenged to keep Kinetics – And Unite is fighting to save the jobs of nearly 300 Liverpool workers from failed housing maintenance contractor Kinetics which went into administration in Monday. The union is trying to persuade Liverpool city council to use its influence to get the company's client, Liverpool Mutual Homes, to take the workers on directly. Unite national officer said: "When will councils learn that they cannot outsource services with the belief that their responsibilities end there? It is still the council who will bear the risk for ensuring the service continues and the taxpayers who will pick up the cost when it all goes wrong?” (Construction Index, Unite release)

Local government workers still out – And action in Southampton by local government workers continues with a picture of the rally on Monday in the Morning Star (p2), more than 100 refuse collectors are on a two-week long strike which will end of 22 June. Don’t forget to donate to the Unite strike fund for Southampton city council workers.

Schools out – 83 per cent of teachers in the ATL voted for strike action over changes to pensions which could see them stage a walkout at the same time as a host of civil servants on 30 June (Mirror p6, Sun p4, Mail p17, Times p5, Indie p15, Guardian p4, FT p2, Morning Star p1).

More Royal Mail jobs to go? – The Royal mail announced a £120 million loss in its parcels and letters business as the number of people sending post slumped. Total group profits fell to £39 million, of just a fifth of the previous year’s level. Even though some 65,000 jobs have been lost a further 43,000 are thought to be under threat according to chief executive Moya Green. Ian Tonks, Unite national officer for Royal Mail, said: “Royal Mail staff have experienced almost unparalleled job reductions as a consequence of the company's slash and burn approach but it has made very little progress in turning the business around. The current regulatory regime allows Royal Mail's competitors to undercut Royal Mail while being given access to its final delivery service. An urgent change in the regulatory environment is needed - its damaging Royal Mail and its staff." (Mirror p44, Sun p14, Express p2, Mail p20/66, Times p33, Indie p33, Guardian p27, Telegraph p4, FT p3, Morning Star p2, Unite release)

Bank shake up – And chancellor George Osborne is to announce he has accepted the main recommendation in the report from the Independent Commission on Banking to ‘ringfence’ retail banking operations as a means of dealing with the ‘too big to fail question’ which has dogged regulators, so it will be back to business as normal for the investment bankers while the rest of us probably have to pay more (Sun p2, Mail p2/65, Times p33, Indie p7, Guardian p1, Telegraph p1/b1, FT p1).

Bank bosses boost pay – And despite the patchy performance of many banks the FT (p17/19) reports that the average pay packet for bank chief executives in the past year has rocketed by 36 per cent. The top earner – Jamie Dion of JPMorgan Chase - saw a 1,541 per cent rise in his pay to over $20 million, back to business as usual for the bankers then…

Big Society bank slips schedule – The Telegraph (b4) reports the launch of the bank which was due next month is now expected to slip to next year. 

Banknote boss’ golden get out – And the Guardian (p30) reports that boss of De La Rue, Tim Cobbold, negotiated a ‘golden goodbye’ clause into his contract which allows him to resign with a  year’s pay in the event of a change of control, the company is currently fighting a bid from French rival Oberthur.

Justice for the rich – And talking of contracts and law the Morning Star (p5) reports that Unite has said the planned cuts to legal aid will deny access to justice for the poorest. A panel of experts – including Unite’s Diana Holland – also highlighted that the cuts could be a false economy as other departments such as health, housing and education would need to step in.

Justice for domestic workers – And Unite has also called for the government to sign up to the ILO convention for domestic workers. Diana Holland said: “Domestic workers are excluded from basic working rights and face the real threat of abuse such as insults, threats, alongside physical and even sexual abuse. This Convention is a real step forward for justice for these domestic workers – some of the most vulnerable and exploited workers in the world. “We call on the UK government to support these workers.” (Unite release)

Trouble at Tesco – And not so good news for Britain’s biggest retailer as it reported a fall in sales of food as shoppers are squeezed. Total like-for-like sales declined by 0.1 per cent, and taking into account that £1 in every £8 spent on the high street is with Tesco does that indicate that ordinary workers could be struggling? You bet (Sun p46, Express p65, Times p39, Indie p37, Guardian p27, Telegraph b1, FT p18).

Inflation remains high – And most of the papers report on the inflation figures with CPI remaining at 4.5 per cent and RPI at 5.3 per cent, cigarettes and alcohol are under pressure and it seems shoppers are having to absorb the costs of the VAT rise and increase in fuel costs which is squeezing their overall spending. Unite general secretary Len McCluskey said: "Inflation remains stubbornly high, but it is the poorest households which are suffering the most as a result of the government's failure to get to grips with the economy. The rising costs of food and fuel are really hitting many workers who already face massive job cuts, pay freezes and rising pension costs. This is piling huge pressure on their finances.” Sun p2, Times p36, Indie p34, Guardian p30, Telegraph b3, FT p2, Morning Star p2)

Health and safety attack – Labour MPs clashed with work and pensions minister Chris Grayling in the commons over cuts to the Health and Safety Executive which will see a decline in ‘pro-active’ workplace inspections by a third (Morning Star p5).

Workers bullied – And the Mirror (p24) reports that according to research from Unison - which interviewed 6,000 people – bullying has doubled under the Con-Dem government.

Labour leader leaned on? – And some of the papers try to continue questioning Ed Miliband’s leadership of the Labour party, the Indie (p7) cottons on to the fact that Ed Balls and Ed Miliband have different views, the Sun (p2) wades in with talk of Yvette Cooper with Cameron apparently scared that she would be a formidable opponent; the Sun (p10-11) also ends with a rehash of last week’s Murdoch press interview with Blair…

The Hunt for Tony Blair – Instead the Mirror (p30) and Guardian (p5) report on the return of the Comic Strip comedians who will film a new drama that portrays Tony Blair as a ‘fugitive’. He will be played by Stephen Mangan, while Jennifer Saunders will be Margaret Thatcher in a ‘Baby Jane’ mode, Harry Enfield will be Alistair Campbell, Nigel Planer will be Peter Mandelson and Ross Noble plays old Labour. Let’s hope Blair gets what he deserves…

Edited by Mik Sabiers

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