News digest 6 June 2011

The digest kicks off with a call for contributions for the Southampton city council workers, Unilever staff are next to stage a walkout, and National Grid may follow, but Vince Cable issues a veiled threat over strike action even as up to 40,000 jobs may be cut at the Royal Mail. Cameron’s big society has been hit by a collapse in charities, but George does not want to think about a plan B. Hague backs the Libyan rebels, while Labour backs Ed Miliband and there’s a possible warning from Red Tories for those flirting with Blue Labour...

SupportSouthampton’s staff – As Southampton council leader Royston Smith shows his contempt for the workforce by jetting off on a holiday rather than trying to sort out a deal the workers continue their campaign to defend their jobs and terms and conditions. Help Southampton workers save their jobs - Unite members at Southampton city council will be sacked on 11 July unless they sign inferior contracts. Help them defend their jobs. Any contributions, however small, can help: TGWU 2/8 Strike Fund, Unity Trust Bank, Ac No: 20185358, Sort Code: 08-60-01. (Daily Echo)

Unilever staff to stage walkout - Workers at Unilever's Warrington plant are to stage a walkout tomorrow in protest over proposed changes to their pension scheme which could deprive 5,000 employees of a final salary pension (Manchester Evening News, Business News, Unite release).

National Grid dispute could lead to general strike – After 16 weeks of overtime bans the Times (p39) reports that thousands of workers at National Grid – represented by Unite, Prospect and the GMB – end voting this week on a below-inflation pay offer which could lead to strike action at the gas and electricity giant.

Vince’s veiled threat – Business secretary Vince Cable’s speech to today’s GMB conference is trailed in many papers. Cable outlines that he sees no reason to change the UK’s current labour laws, but then issues a threat that if unions embark on strike action that causes ‘serious damage’ the pressure to act will rise; he seems to dwell on conflict rather than the cause and forgets that UK laws are already the most restrictive in Europe (Mirror p31, Sun p2, Mail p2, Times p5, Indie p2, Guardian p4, Telegraph p4).

Mail sale means job cuts – And as the government gears up for the sale of the Royal Mail reports say that one in four workers – 40,000 people - could face the sack as the company is ‘modernised’ to make way for privatisation, that sounds like ‘serious damage’ to me, is Cable going to restrict the rights of the managers? No, its his department doing the privatisation (Mirror p19, Times p39, Indie p32, Guardian p4, FT p2).

Care home crisis coming – Experts have discovered a £20 billion black hole in the budget to pay for care for the elderly in the future as the ageing population combined with longer lifetimes will see the care bill treble from its current £11.3 billion annual cost (Mirror p16-17, Mail p20).

Southern Cross sells homes - Up to 200 care homes up for sale as the company tries to avoid bankruptcy (Sun p44, Mail p20, Times p345, Indie p35, Guardian p20, Telegraph b1).

Lansley to fight for NHS reforms – The Indie (p15) reports that health secretary Andrew Lansley is to return to the political front line to fight for his ‘reforms’ although the Telegraph (p1) says that Cameron is commit with a personal pledge to five ‘guarantees’ for the NHS including to keep waiting lists low (they are rising), maintain spending (but not in real terms), not to privatise the NHS (what else is the bill for)…

Charities collapse – And Cameron’s big society seems to be going into reverse as the Guardian (p2) reports that the number of UK charities has declined by 1,600 in the first year of the Con-Dem coalition.

Time for plan B – Even though the EEF says manufacturing could contribute to greater growth Osborne is again under pressure as shadow chancellor Ed Balls and more than 50 experts call on the government to admit its strategy for growth is not working; Osborne insists he is right, but do the figures stack up? (Mirror p10, Sun p2, Express p2/44, Mail p2, Times p5, Indie p2, Guardian p4/21, Telegraph p4, FT p2 , Morning Star p1)

Bad beansprouts – From plan B to beansprouts as the cause of the E. coli outbreak is not a cucumber conundrum but has been identified as beansprouts from Lübeck (Mirror p11, Sun p6, Express p4, Mail p6, Times p3, Indie p2, Guardian p1/19, Telegraph p2).

No honour at Heineken – And the Times (p31) reports another pensions’ row is on the cards as Heineken has been accused of reneging on a promise on the main pension plan for Scottish & Newcastle workers. The Dutch company bought S&N in 2008 and promised to continue discretionary annual pension increases in line with RPI, it has now reneged on that deal even though the company made profits of £2.1 billion last year.

Asda considers bid for Iceland – Britain’s second biggest grocer has hired Lazard to advise on a possible offer for frozen food specialist Iceland (Indie p32, Morning Star p5).

Airbus warns of trade war – And the Guardian (p21) and FT (p1) report that Tom Enders - Airbus chief executive-  has warned Brussels it faces a trade war with China and other powerful countries over Europe’s plan to make international airlines pay for their carbon emissions.

Hague praises rebels – Foreign secretary William Hague nails his mast fully to the Libyan opposition as he visits Benghazi rebels hours after helicopters pound the country. As the conflict drags on the government is accused of mission creep amid calls for a fresh vote in the House of Commons (Mirror p20, Sun p7, Express p15, Mail p12, Times p6, Indie p6, Guardian p7, Telegraph p, FT p6, Morning Star p3).

Bye bye Clegg? – And talking of the House of Commons the latest details on the boundary changes which will see the number of constituencies cut by 50 to 600 looks like it will hit the Lib Dems hard as up to a quarter of Lib Dem seats could go, Clegg’s anti-Midas touch strikes again (Mirror p22, Guardian p1).

We’re backing Ed – And the Telegraph (p4) reports that Ed Balls and Harriet Harman have been forced to defend Ed Miliband’s leadership as Labour retains a low profile (Miliband has just got married after all), while the FT (p3) focuses on the fact that donations to Labour have fallen to just a tenth of the party’s pre-election average while there are concerns in the City that Miliband has not been active enough in business circles, does Miliband need a new approach?

Do Red Tories lead the way for Blue Labour? – The Indie (v12-13) has a double page spread on what ‘Blue Labour’ really is, but if Miliband’s interest is piqued the Mirror (p34) has a stark warning as the so called ‘Red Tory’ think tank Respublica has hit money troubles. Respublica has also been forced to cuts jobs, and those remaining were locked out of their offices last week as the rent had not been paid, red and blue don’t mix…

Edited by Mik Sabiers

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