TUC leader sees opportunity for unions to rebuild membership

http://www.theguardian.com/politics/2013/dec/26/tuc-frances-ogrady-rebuild-union-membership

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The head of the Trades Union Congress has warned that the Grangemouth industrial dispute was a "wake-up call" for the trade union movement and has urged labour bosses to team up with politicians and civic groups next year to boost private-sector membership.

Frances O'Grady says a "triple alliance" is needed to boost trade union numbers in the private sphere. The stand-off at the Grangemouth refinery in Scotland resulted in Britain's largest trade union, Unite, acceding to the demands of Ineos, the site's owner, in order to reverse the company's decision to close the petrochemicals plant, with the loss of 800 jobs.

Describing the row as a wake-up call for workers because ministers failed to criticise the Ineos brinkmanship, O'Grady said: "It confirms my view that we cannot organise company by company and that we cannot fight alone. We need a much bigger campaign that is supported by civic society and a government that recognises that the balance of power has gone too far against workers. It was pretty shocking that a company that overtly threatened the energy security of this country was backed by this government." Ineos had accused Unite of "rejecting change" that was vital for keeping the site viable.

There are 6.5 million trade union members in the UK, but the proportion of private-sector trade union members is 14%, compared with 56% in the public sector. Private-sector recruitment drives are an oft-repeated goal for union bosses, who are struggling to gain members in an economy that is dominated by the service sector. Trade union membership remains strong in industrial sectors such as car manufacturing, transport and energy.

O'Grady said the Grangemouth dispute had wider implications for trade unions. "It confirms my view that we cannot organise company by company and that we cannot fight alone. We need a much bigger campaign that is supported by civic society and a government that recognises that the balance of power has gone too far against workers. It was pretty shocking that a company that overtly threatened the energy security of this country was backed by this government," she said.

Conservative party politicians have also cited Grangemouth as a critical event, for different reasons. The Ineos dispute became enmeshed in a wider row over Unite's involvement in selecting the Labour parliamentary candidate for the local Falkirk constituency, which was widely viewed as damaging for the party and its largest donor. Unite's tactics during the dispute, which included protests outside the homes of Ineos directors, were also criticised and have prompted the government to set up an inquiry, although Lib Dem ministers have demanded that the probe also investigate allegations of union blacklisting.

O'Grady, who marks her first anniversary as TUC general secretary next month, added that a recovering economy will help highlight the differences between companies with balanced pay policies and those that pay executives more than the staff average. Living standards remain under pressure, with total pay rising at an annual rate of 0.9% in October compared with an inflation rate of 2.2% in the same month.

"Our big chance will be in 2014 because we are going to see confidence return as unemployment dips and the economy recovers. We are going to see a sharper dividing line between employers in the private sector, too. I speak to employers regularly and there are some who share our worries about living standards and recognise that top pay is too high and that we have to rebalance the economy, not just in terms of north and south UK, but also between employers and staff."

O'Grady said companies that have been criticised over their tax affairs should be targeted for recruitment drives. "You have got the parasites who don't pay their workers or their taxes and increasingly are the object of public wrath, so there is a real opportunity for unions to rebuild membership."

The TUC head said trade unions should team up with left-leaning politicians and civic groups in a repeat of the protests against the employment practices of fast-food chains in the US this year. One co-ordinated day of action saw protests outside 1,000 fast-food chains in 60 cities, led by the Service Employees International Union, non-profit groups and Democrat politicians.

"When I look at the fast-food workers in the United States ... that came out of a triple alliance of unions, civic society and politicians who said this cannot go on. We are going to have to build a similar alliance here if we are going to win back companies like Amazon who have been non-union for too long and have taken advantage of it."

A spokesperson for the CBI, the business lobby group, said wage growth must be accompanied by growth in worker productivity, an area where the UK lags its competitors. "For the UK to remain an attractive place to do business, wage growth must go hand-in-hand with growth in productivity. We expect wages to pick up in 2014 as the recovery beds down and productivity improves." According to the CBI, more British firms expect wages to rise in line with inflation next year than at any time since the 2008-2009 recession.

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