News digest 15 March 2011

Japan again leads the headlines as nuclear meltdown comes closer. The other main story is another Hutton report – this time from Will and on public sector pay – which is a missed opportunity, Labour outline some economic plans, while change in the NHS is questioned, there’s a new BA row, still no Cadbury law and time to take action is getting closer, and there may be some solace if all this is getting you down…

Race to save reactors – Serious explosions hit the Japanese nuclear plant and a partial meltdown may be under way as all the papers continue to feature the latest from the disaster. The death toll is sadly rising with the cost of the disaster expected to top £100 billion (Mirror p1-7, Sun p1/4-9, Express p6-9, Mail p1-9, Times p9-13, Indie p1-20, Guardian p1-7, Telegraph p1-6, FT p1-4, Morning Star p5).

Public sector pay cap rejected – The Work Foundation’s Will Hutton’s review into public sector pay calls for executive pay to be published, fair pay reports and a new condition on pay that will see 10 per cent held back unless performance targets are met, but there will be no pay cap as the proposed 20:1 formula - where the highest paid employee could not be paid more than 20 times that of the lowest - was considered unworkable. Unite said Hutton had missed a real chance to inject fairness into the sector. Assistant general secretary Gail Cartmail said: “This was a golden opportunity to bring a sense of reality into bosses’ pay in the public sector – but what Will Hutton has come up with is both ineffectual and spineless.” (Sun p2, Express p2, Mail p10, Times p9, Guardian p9, Telegraph p14, FT p8, Unite release)

Two Eds – Most of the papers cover Ed Miliband and Ed Balls’ call ahead of next week’s budget. The Labour leadership says a £2 billion tax on bankers’ bonuses could be used to build 25,000 low cost homes, creating over 20,000 construction jobs and 1.500 places for apprentices, a third of the total could go on getting the one million unemployed young people back into work with another £200 million for regional growth. Labour also urged for VAT on fuel to be cut back to 17.5 per cent to help ordinary people and small businesses struggling with rising transport costs. Although some of the right wing papers call the two Ed’s deficit deniers the FT (p6) notes that Balls has added more flexibility to the speed of repaying the deficit as caution over the state of the economy rises (Mirror p12-13, Sun p2, Mail p18, Times p16, Guardian p30, Telegraph p14, Morning Star p3).

Liverpool in focus – And the FT (p6) is also running a series on the cuts, today’s focus is Liverpool, a council run by the Lib-Dems until Labour regained power last May; the reporter sees it at least a generation before there’s even a chance of Lib-Dems getting back into power, is the national party listening?

NHS value for money questioned – And the Commons health sector committee says taxpayers have been getting less money from hospital consultants since they were awarded an enormous pay rise slamming Labour’s new contracts in 2003, but it did say that all the funds invested in the NHS had upgraded hospitals and buildings, reduced waiting times and improved care (Sun p2, Express p2, Mail p26).

Blood fears remain – And the Mirror (p13) reports Unite fears over the blood service as a leaked report said that “some of the services may be market tested” – code for privatisation. 

Southern Cross crumbling? – And concerns for care home giant as unsustainable rents have left the firm facing ruin, although the GMB claimed that it was down to managers who sold the freehold to bond holders which continue to raise rents reducing funds for much needed services. More than 30,000 vulnerable people could be left homeless (Sun p41, Indie p32, Guardian p29).

Fujitsu cuts 350 more jobs – After loss of contract with department for Work and Pensions. 130 contractors go immediately and 220 full time jobs look likely to follow (Sun p41).

Assetco deal – Owner of London’s fire engine fleet has agreed an emergency £1.45 million loan with Lloyds to stave off bankruptcy (Sun p41, Telegraph b4).

Honda supports supply chain – From fire engines to cars and Honda in the UK has said it has set up an emergency centre at its Swindon centre to deal with any problems due to the earthquake (Telegraph b5).

Carlos Ghosn says sorry – Renault chief apologises to three directors who were sacked after being accused in a spying row over electric vehicles (Times p45, Indie p36, Telegraph b1, FT p1/17).

BA row breaks out – Accusations that pregnant cabin crew are being discriminated against are denied by the airline. Said Unite’s Brendan Gold: “This is a shameful attack on pregnant women and a further example of a macho management culture at BA which is out of date and now seriously out of line.” The company made a change to payments last week which effectively means that only people who live near the company’s main hubs would be paid for being grounded (Mirror p22, Telegraph p8, Unite release).

Cadbury challenge – And from one once-great brand under fire to another as Unite’s call for a Cadbury Law gets coverage with the government seen as the major block to safeguarding jobs and taxes in business takeovers. Said Unite’s Jennie Formby: “If the government is really serious about having a vibrant manufacturing policy to help us out of the economic mire, a Cadbury Law should be an integral part of such a strategy – but ministers appear to be dragging their feet.” (Times p41, Guardian p30, Telegraph b5, FT p17, Unite release)

Time to take action – And as the March for the Alternative draws nearer the Morning Star (p8-9) features a piece by Unite’s Doug Nicholls that accuses the Tories of building on the legacy of selling off the family silver by selling the gold – or the thousands of people that represent the real ‘big society’. He ends his article with a call to join the march and the Guardian (p21) also has a detailed piece on the trade union response and the next steps in the campaign which is uniting a broad alliance to march, strike, occupy and demonstrate as the cuts begin to bite…

Light at the end of the tunnel – But there could be a cunning plan behind all the cuts as the Telegraph (p15) says that a new study has shown that being miserable helps you live longer, with all those cuts we’re probably going to be around for a lot longer, so smile, although as Greta Garbo said: “Anyone who has a continuous smile on his face conceals a toughness that is almost frightening.”

Edited by Mik Sabiers

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