In his message for 2007, STUC General Secretary Grahame Smith has called for the reduction of inequality to be established as the primary goal of economic policy.
Grahame Smith said:
“It is unacceptable that, in recent years, the exploitation of some groups of workers has increased, social mobility has decreased, income and wealth inequalities have risen and the poorest continue to pay a larger share of their income in tax than the wealthy.
“Over half a million workers in Scotland earn below one third of the median hourly wage. Many of these workers work in the illegal or grey economy, are temporary and agency workers, migrant workers, home workers, students and school pupils. In not having a trade union to negotiate their terms and conditions, they are exposed to disgraceful exploitation.
“At the same time an average FTSE chief executive earns 113 times more than the average UK worker and executive pay has continued its unacceptable rise.
“It is disturbing that some employer organisations and some politicians are determined to drive Scotland down the low road to economic growth through a low skills, low pay and low regulation approach.
“Scotland should be a place where the proceeds of economic growth are broadly shared with those who create that growth each day of their working lives. We will not have a successful economy without a strong, cohesive society and without strong and effective trade unions. Reducing inequality should be the primary goal of economic policy.
“Rather than pandering to a narrow employer driven agenda, the Government must challenge employers to take advantage of unprecedented economic stability and a 40 year high in business profitability to invest in people, plant and research. And the business community should acknowledge the simple truth that a strong public sector is fundamental to meeting effectively the economic and social challenges we face. “Government must close the gaping loopholes in our employment law that allow people working through agencies to be paid far less than the permanent staff doing the same job, that enable employers to pay a lower rate for the minimum wage even to those over 21; and to sack workers unfairly just to keep workers in fear for their jobs. “It must also put in place a genuinely progressive fiscal policy aimed at supporting low wage workers and reducing inequality and a monetary policy that targets growth in UK manufacturing rather than the inflationary bonuses of City executives.
“But Government and employers must also recognise that strong and effective trade unions are not only a vital component of democratic societies but make an essential contribution to reducing inequality, preventing exploitation increasing productivity and to wider economic and sustainability objectives.
“As well as the crucial role we play in improving employment practices and rights at work, through effective collective bargaining we are driving workplace initiatives to achieve greater company investment in skills training, R&D, plant and equipment, the promotion of equality and greening the workplace.
“And as unions we must do more to reach out to those not in unions but most in need of the protection that our collective approach can offer.”
ENDS
For further information: John Park, 07974 793187