News digest 1 October 2010

Don’t forget to ask where your tips go, one year down the line it still seems they end up in management’s pockets. Elsewhere there’s some good news on the equalities front as the Equalities Act comes into force and there’s an increase in the minimum wage, but then there’s more cuts announcements, before the car sector comes into focus with some good news for Vauxhall workers but also some bad with the possible exit of Lotus, there’s a couple more board room changes, before what could be major changes in the classroom for Surrey’s schoolchildren…

It’s still not fair – On the first anniversary of the law that was supposed to stop employers taking the tips from hard working waiting staff national officer Dave Turnbull said: “Unite has found that one year on from the campaign there are still too many employers who regard tips as a subsidy for low pay and see tips and service charges left by customers as a pot of cash to which they are free to help themselves.” Waiting staff gathered earlier at the Department for Business to call for the rules to be properly applied (Morning Star p1).

Equality Act implemented - Welcoming the Equality Act 2010, which comes into law today, Unite assistant general secretary for equalities, Diana Holland, said: "This is an important milestone, but not the final word. Discrimination has no place in our workplaces and communities. We must stand by equality as Con-Dem cuts hit - and work to make sure the new act comes in, in full.” However a cautious note was sounded by the Fawcett Society which said a review by the Con-Dem coalition could make the act ‘toothless’ (Guardian p5).

Minimum wage up – Rise from £5.80 to £5.93 an hour from today, and the full rate applies to employees aged 21 or over , rather than 22 as before. The government has also introduced a minimum wage for apprentices for the first time, of £2.50 an hour, for those under 19 years old (BBC online).

Labour party conference closes – With speech from deputy Harriet Harman, media coverage divides into two again with the Sun (p15) banging on about ‘Red Ed’ or ‘der Rote Ed’ arguing that the nickname has gone global, while there’s good news in the Guardian (p1) as the Labour lead over the Tories extends to two points, it’s Labour 37 per cent, Conservatives 35 per cent and Lib-Dems 18 per cent. The Express (p4) highlights Cameron’s scaremongering saying Labour plans a £35 billion tax hike, a line followed by the Daily Mail (p20-21) while elsewhere the Mirror (p8) says general secretary Ray Collins may be for the chop, while the Times (p19) tries to create a row over talks of a peerage for Unite’s Derek Simpson.

BBC stars condemn strikes – As the Conservative party conference is about to get under way the Mail (p1) leads with a letter from BBC heavyweights that staff should not walk out during the leader’s speech. Neglecting to mention the reasons behind the strike – major changes to pensions – the timing is attacked without noting the legal requirements on unions to name dates, NUJ convenor Ian Pollock also noted that 11 of the signatories are not even NUJ members (Express, p2, Guardian p3).

Defence cuts row continues – As the Tories try to smooth over relations the Mirror (p6) reports that Cameron savages Fox over his MoD budget warning even as the prime minister came under fire from the military’s top brass. Business secretary Vince Cable has also waded in to support the defence secretary echoing Fox’s fears that there will be a drain of jobs and skills (FT p2).

Cuts hit most vulnerable – The FT (p3) has a feature on cuts that shows the most vulnerable will be hit by the proposals and even the Sun (p22) focuses on the reality of cuts on the ground with day two of a series focusing won what it means for workers in Mansfield, the crosshead ‘oblivion’ sums it up well…

Ireland on the brink – Or just look across at Ireland, many of the papers report that more government support is needed for Anglo Irish Bank. Support also needed for Allied Irish Bank which means the cost of the bailout could reach euro 50 billion driving Ireland’s debt to 24 per cent of GDP. Ireland’s workers and pensioners face even more pain with further austerity measures expected in a December budget. In the Guardian (p6-7) Unite’s Michael Taft argues the debate has been one sided with no talk of a stimulus just cuts: “Our position is that there should be a major investment programme, pouring euros into the economy to create jobs and restart economic activity.” Makes sense to me (Express p66, Mail p24).

T-Mobile/Orange jobs go – Back in Britain merged mobile giant renamed Everything Everywhere announces it is to cut 1,200 jobs, most people will go just before Christmas, how nice (Sun p2, Mirror p56, Mail p86).

Rolls-Royce boss goes – This time someone leaves a job by choice as John Rose goes after 26 years at the company, 14 as chief executive. Rose helped turn around the company during his tenure and unlike many City heads he kept a low profile, although he did raise his concerns about not enough students entering engineering and the welcomed greater government intervention in industry. In a very unusual move business secretary Vince Cable pays tribute to his strategic thinking and contribution to growing global market share (Guardian, p29, FT p19, Express p67).

Rolls-Royce ghost appears – Luxury carmaker sets a new sales record thanks to its new affordable model. Record sales of the ‘Ghost’ – a snip at just £195,000 – are expected to see the company sell more than 2,000 cars in a year for the first time in its history. A second shift has been introduced at the factory with 150 workers taken on (Sun p35).

Ampera for Ellesmere – The Times (p63) notes that GM has given its biggest hint yet that the electric car from Vauxhall will be built at Ellesmere Port.

Jag’s concept car – Jaguar unveils big cat with tiny carbon footprint as new C-X75 electric car which uses revolutionary microturbines to power its electric motor (Times p63).

Toyota bouncing back – The Telegraph (b3) reports that the Japanese car company looks to have turned a corner after the massive recalls.

BMW mass recall – Company recalling 10,000 cars in the UK, as well as 1,200 Rolls-Royces, over braking problem, in total some 350,000 luxury cars are to be recalled world-wide, mainly in the US (BBC Online).

Lotus to quit UK? – And 1,200 jobs are at risk as luxury car maker Lotus threatens to quit the UK after the government refused to loan the company £40 million to develop five new models, transfer of production to Eastern Europe is being considered (Sun p6).

Immigration cap may harm car sector – Carmakers demand that intracompany transfers should be exempt from the immigration cap (Times p53).

Fuel costs up – Government increases fuel duty by 1p a litre from today (Telegraph p6).

BP dividend back – Boost for shareholders as company says it expects to start paying dividends from next year (Times p55).

Private equity deals on the rise – 3i expects deals to roar ahead, although quite a lot of activity is expected to involve private equity firms selling to one another (FT p20).

New HP head – Former SAP boss Leo Apotheker is the surprise choice for head of HP (FT p19)

ROK finance chief cleared – After investigation into finances finds no wrongdoing, but he quits anyway (Telegraph b5).

Surrey schools switch – And finally a Tory controlled local authority Surrey is considering converting all its schools to academies – independent of council control – in one fell swoop. Gove calls it ambitious, others would say what’s the point of the council if it outsources everything? (Guardian p10)

Edited by Mik Sabiers

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Re: News digest 1 October 2010
Ho ho, who woldua thunk it, right?
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