News digest 29 September 2011
The digest opens with the latest from
Labour in Liverpool, while Europe edges closer to a Tobin tax, bank
complaints hit a record as the Bank of England tells banks to lend
rather than pay dividends. The IOD says business is being
strangled, while there’s new rights coming for agency workers and a
rise in the minimum wage on the way, but pay for the rest of us may
remain frozen. There’s mixed messages from the defence sector as
Smiths is squeezed but Babcock focuses on service and finally has
uSwitch identified the real reason why David Cameron can’t wait to
leave the country…
Labour in Liverpool – After
the leader’s speech conference heard from shadow home secretary
Yvette Cooper yesterday and shadow education secretary Andy
Burnham used his speech to deliver a stinging attack on education
secretary Michael Gove and also David Cameron for his broken pledge
on the educational maintenance allowance. Unite must be doing
something right as the Sun
(p2) names general secretary Len McCluskey the villain of the day
and the paper also reports that the union will look closely at its
sponsored members to ensure they understand and reflect the values
of union members. The other major talk was of reshuffle rumours -
and no, not of the leadership – although Yvette Cooper’s speech
went down well with right wing tabloids. Ed Miliband is instead
expected to stamp his authority and select his preferred shadow
cabinet after some poor performances by existing members. The top
jobs should stay the same but depending on which paper you read
Caroline Flint could be for the sack or promoted to shadow health
secretary, shadow culture secretary Ivan Lewis is looking shaky
after his press regulation proposals while there are also rumours
of some fast-tracking into the shadow cabinet for newer MPs such as
Rachel Reeves and Stella Creasy (Mirror p8-9, Sun p2, Express p15, Mail p10-11, Times p6-7, Indie p8-11, Guardian p16-18, Telegraph p4-5, FT p2, Morning Star p2).
Europe edges closer
to Tobin tax – The other main story is a retreat on the
stock exchanges, particularly for banking stocks, as the EU
unveiled plans for a levy on the financial sector – the so-called
Tobin tax – which could generate some €55 billion for government
coffers. The proposal is fiercely resisted by business lobbies and
as the deal requires unanimous approval from all 27 EU states
Osborne could veto the plans, despite the ramifications for both
the euro and also the UK’s relationship with the EU, expect the
banks to continue to complain (Mirror p6, Sun p4, Express p4, Mail p8, Times p5/43, Indie p2-3, Guardian p2, Telegraph p1/b1-2, FT p6, Morning Star p7).
Bank complaints hit record –
City watchdogs were flooded with more than 10,000 customer
complaints a day in the first half of 2011, up 6.5 per cent on a
year earlier. Barclays topped the complaints league, followed by
state backed Lloyds and then Santander. The banks claim they are
working hard to improve service levels, perhaps they should call a
halt to the regular rounds of redundancies for ordinary bank
workers (Mirror p6, Sun p58, Times p41, Indie p36, Guardian p28, Telegraph b10, FT p4).
NBNK eyes Lloyds branches –
Lloyds has received the first formal bid for more than 600 branches
as NBNK, run by ex Northern Rock boss Gary Hoffman, offered
approximately £1.5 billion for business with 5.5 million customers.
If the bid is successful the C&G and TSB names are likely to
vanish from high streets to be replaced with NBNK (Mirror p58, Express p50, Mail p65, Times p41, Indie p36, Telegraph b3, FT p21).
National Australia cuts
pensions – A shake up announced yesterday will see up to
4,000 workers at National Australia Bank have to start contributing
to their pension scheme. David Fleming, Unite national officer,
said: “The decision by National Australia Group to make
significant changes to its staff pension scheme will cause hardship
for the employees … it is inappropriate to introduce changes which
will require staff to ultimately make a nine per cent contribution,
over three years, when household budgets are already extremely
stretched. Workers are being told to pay more to get the same
benefit, but there is no appreciation as to where the money will be
found by them to be able to do so.” (Sun p58, Unite
release)
FSA wants seats on the board
– The Guardian (p28)
reports that the Financial Services Authority is sitting in on
board meetings of some of the biggest firms in the City as it steps
up surveillance of institutions it believes could pose a major risk
to the financial system, how about also making room for worker
representatives.
FPC says prioritise lending not
bonuses – The Bank of England’s new financial policy
committee – charged with reducing risk in the financial system -
says banks should cut their bonuses and dividends rather than
reduce lending to customers (Mail p65, Indie p39, Guardian p28, Telegraph b1, FT p19).
IOD says business being
strangled – The Mail (p22) reports that the
Institute of Directors says the coalition is strangling businesses
with new rules and argues the government is failing to turn its pro
business rhetoric into a pro business policy. The IOD makes the
call ahead of this weekend’s changes to workers’ rights.
Health and safety call after fifth
mining death in a fortnight – The Indie (p15) and Morning Star (p1) report
that there are calls for a more detailed inquiry into health and
safety in Britain’s remaining mines, especially as according to
industry experts safety standards have declined markedly since
privatisation.
National minimum wage to rise to
£6.08 – Saturday sees the latest rise in the national
minimum wage. The 15p increase will see workers gain an extra £6 a
week, although unions and some politicians are arguing for an
increase to the living wage which is closer to £8 an hour. There is
however also news from a survey on HR managers from Income data
Services which says that most companies are not expecting to
increase pay levels next year despite rising inflation (Mirror p2, Express p1, Indie p36, Morning Star p4).
Equal rights for agency
workers – And the Mirror (p26) and Morning Star (p4) follow
up on the introduction of new rights for agency workers on Saturday
with unions warning bosses that any tampering with the rules will
be challenged at the earliest opportunity.
Sparks protest over shredding of
contracts – Over 200 construction workers staged a protest
outside Kings Cross station in London yesterday. They were raising
awareness of plans by NG Bailey, the leading contractor at Kings
Cross and another six breakaway construction companies, which are
imposing semi-skilled grades into the mechanical and electrical
sector, effectively deskilling the industry. Unite regional officer
Guy Langston said: “This is a serious attack on the
livelihoods of thousands of London construction workers. They
cannot afford to lose a third of their income ... the construction
sector is one of the most important drivers of economic growth in
London. Employers should be behaving in a far more responsible
manner rather than picking a fight with their workforce which will,
no doubt, lead to instability in the sector."
(Morning Star p5,
Unite
release)
Cromer Crab Company cuts costs 230
jobs - Hundreds of staff at the Cromer Crab Company were
yesterday told that the famous shellfish processing company is
proposing to close. Unite regional officer, Ivan Crane, said:
“As the town’s biggest employer, this is a massive blow
to the community … we have a meeting with the company [and] urge
management to rethink the move as we believe the company has an
obligation to this town. The Cromer Crab Company should remain in
Cromer.” (Morning Star p4, Unite
release)
Foster’s deal wins backing –
The FT (p24) reports that
Australia’s competition watchdog has ruled in favour of SABMiller’s
$10 billion acquisition of the brewer.
Kindle challenge – Amazon
eyes Apple with cheaper rival to iPad. The Kindle Fire will be
launched in the US in mid November to take on Apple for the
important xmas market (Mail p27, Times p4, Indie p19, Telegraph b3, FT p1).
Smiths squeezed – Still on
technology and after BAE Systems earlier this week military
technology group Smiths Industries has now confirmed it is
reviewing its business with its airport security arm under review
after a drop in government orders. Overall the company is expected
to factor in £40 million of savings which will include job cuts
even though it reported a three per cent rise in sales and a 12 per
cent increase in profits to £486 million (Mirror p58, Sun p58, Express p50, Mail p67, Times p47, Indie p38, Telegraph b4, FT p21).
Babcock eyes cuts opportunity
– The FT (p21) reports defence and
security services company Babcock however believes it will benefit
from the MoD cuts saying there were still significant opportunities
in the military sector. The company’s focus on service and
maintenance contracts makes its less vulnerable to cuts.
Cameron’s Britain is bottom of the
table – And finally the Mirror (p35), Sun (p40) and Mail (p29) all report on a survey
by uSwitch which confirms that Cameron’s Britain is the worst place
to live in Europe. Sky high bills, bad weather, a work until you
drop culture and lower life expectancy all added up to the UK
coming last in the quality of life survey. The survey also found
that if you want to drown your sorrows with a pint or even take a
holiday to get away from all the gloom it will still cost Brits
more than the rest of Europe. Top for quality of life was France,
followed by Spain and Italy, is this why Cameron likes to take all
those foreign holidays…
Edited by Mik
Sabiers
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