[IER] Seven years of austerity later, public spending has not decreased

Fri Nov 3 15:43:25 GMT 2017

IER News Brief 03/11/17

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news brief

Friday 03rd November 2017

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Despite seven years of austerity, public spending is not lower now than in 2007-08 <https://ier.us12.list-manage.com/track/click?u=f121e48a8bb6d3101590c12d3&id=735b518eaa&e=71131c031b> , a new report from the Institute of Fiscal Studies has shown.

This comes at a time when public sector workers are calling for the end to pay restraints that have seen their wages rise by no more than 1%, far below the rate of inflation, leading their incomes to fall significantly in real terms. In particular, both NHS workers and employers have sought confirmation from the government that limits on pay will be lifted and more funding will be allocated to healthcare to ensure that much-needed wage hikes do not lead to cuts in services.

This week, NHS chiefs <https://ier.us12.list-manage.com/track/click?u=f121e48a8bb6d3101590c12d3&id=dac0778056&e=71131c031b>  joined with charities and other bodies as signatories to a letter that begged the Chancellor for more funding. The document said: "Pay restraint is a major factor affecting staff working in health, social care and the wider public sector. Vacancy rates, particularly in clinical grades in both hospital and community alternatives, are now affecting the quality of care which people experience.

"We therefore support a relaxation of pay restraint, but additional costs that result must be funded in full by the Government."

But Jeremy Hunt said, on the Andrew Marr show last weekend, that the government would be looking to "improve productivity at the same time" as lifting the cap on pay, which could mean further pressure on NHS staff.

The Institute of Employment Rights argues in its Manifesto for Labour Law <https://ier.us12.list-manage.com/track/click?u=f121e48a8bb6d3101590c12d3&id=12a75c2fba&e=71131c031b>  - 25 recommendations for reform drafted by 15 leading lawyers and academics - that wages and conditions, both in the public and private sectors, are most effectively set through sectoral collective bargaining: a process whereby trade unions and employers' associations negotiate minimum terms across entire industries, which can be built upon at enterprise level.

This introduces an upward pressure on wages, which works to negate the UK's wage inequality gap, and could also be the answer to the UK's greatest economic challenge: poor productivity.

The IFS report this week pointed to the nation's weak productivity as a reason for the limited effect of austerity on public spending. A growing body of evidence now points to the rise of low-skilled, low-wage work as a key factor in this poor productivity, which is holding the nation back in terms of economic strength and sustainability.

The Institute of Employment Rights joins the increasing number of organisations - from across the political spectrum - recommending that this situation must be reversed by employers investing in training their staff and in research and development. We argue that collective bargaining encourages this approach by providing incentives for employers to compete on the quality of their products and services rather than a race to the bottom on workers' rights; but also through the inclusion of minimum training and apprenticeships standards in collective agreements.

Click here to read more about the Manifesto for Labour Law <https://ier.us12.list-manage.com/track/click?u=f121e48a8bb6d3101590c12d3&id=9b1118704c&e=71131c031b>  

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 News and comment

 Workers' rights <https://gallery.mailchimp.com/f121e48a8bb6d3101590c12d3/images/b1c726de-bf3c-454c-9dd0-50d42672c9ff.png> 

	Brexit Minister spoke in favour of scrapping EU-derived workers' rights
Brexit Minister Lord Martin Callanan has been exposed by Political Scrapbook saying EU-derived workers' rights should be scrapped.
 <https://ier.us12.list-manage.com/track/click?u=f121e48a8bb6d3101590c12d3&id=d02846d169&e=71131c031b> > click here to read full story

 Public Sector <https://gallery.mailchimp.com/f121e48a8bb6d3101590c12d3/images/e80db0b0-be8d-47c8-8d7d-05383e5cbcb3.png> 

	NHS Chiefs beg for end to pay restraint; but Hunt demands increase in productivity
The heads of health and social are bodies across the UK have written to the Chancellor outlining the urgent need for funding to the NHS and an end to pay restraint, but Health Secretary Jeremy Hunt has said wage rises will likely be focused on sectors that show "improved productivity".
 <https://ier.us12.list-manage.com/track/click?u=f121e48a8bb6d3101590c12d3&id=d0af6b4f1e&e=71131c031b> > click here to read full story

 Public Sector <https://gallery.mailchimp.com/f121e48a8bb6d3101590c12d3/images/e80db0b0-be8d-47c8-8d7d-05383e5cbcb3.png> 

	Seven years of austerity later, public spending has not decreased, says IFS report
A new report from the Institute of Fiscal Studies (IFS) has revealed that seven years of austerity has not accomplished its aim of reducing public spending.
 <https://ier.us12.list-manage.com/track/click?u=f121e48a8bb6d3101590c12d3&id=9688a18d2d&e=71131c031b> > click here to read full story

 Low pay <https://gallery.mailchimp.com/f121e48a8bb6d3101590c12d3/images/c9de063b-cd73-4fc5-8d13-fb67b7e3e040.png> 

	Govt launches scheme to 'encourage' employers to pay social care workers minimum wage
Lifting its recent amnesty on the enforcement of minimum wage for social care employers, the government has launched a new programme to encourage providers to provide back pay to workers that have been illegally underpaid.
 <https://ier.us12.list-manage.com/track/click?u=f121e48a8bb6d3101590c12d3&id=d5a2b86425&e=71131c031b> > click here to read full story

 Equality <https://gallery.mailchimp.com/f121e48a8bb6d3101590c12d3/images/41d5d27b-969b-4b55-bcb8-9a0e910471e3.png> 

	UK drags behind developed world on income equality for women
The UK has been ranked 53rd in the World Economic Forum's Global Gender Gap Report of 144 countries when it comes to economic participation and opportunity.
 <https://ier.us12.list-manage.com/track/click?u=f121e48a8bb6d3101590c12d3&id=0d7f082383&e=71131c031b> > click here to read full story

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Book now for 16 November conference in Glasgow <https://ier.us12.list-manage.com/track/click?u=f121e48a8bb6d3101590c12d3&id=acf39d74f3&e=71131c031b> 

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At this one-day conference, some of the UK's leading academics, lawyers and campaigners will discuss the threats to employment law posed by Brexit; how the potential for a second independence referendum in Scotland, and the devolution of some employment rights may factor; as well as proposing ideas for how workers' rights can be protected and even improved upon during the negotiations with the EU, as well as in future trade deals.

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Our annual Employment Law Update conferences book up quickly every year so make sure you have saved your seat at our most popular event.

There's a lot of ground to cover this year, with Brexit, the end of tribunal fees, and the Taylor Review marking potential shifts in the employment law landscape. With workers’ rights now a key political issue on the agenda of every major party, we look at current trends, successes, challenges, and proposals for better employment law.

  Events 

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	London: European Union, Brexit – the future of workers’ rights
11 November 2017 - 09:30 - 18:30
Unite the Union, London
An event organised by the European Association of Lawyers for Democracy & World Human Rights and Haldane Society of Socialist Lawyers, and supported by the IER, Unite and European Lawyers for Workers.
Speakers include Esther Lynch, John Hendy QC, Lorenzo Fassina, Klaus Lörcher, Dr Sanja Cukut Krilic, Anne Braun, Sergey Saurin, Frances Webber, Alison Harvey, Lionel Crusoé, Karl Kopp, Prof. Andreas Fisahn, Emanuel Leclercq, Dr Marco Inglese and Julian Bild.
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 Post-Brexit: Glasgow <https://gallery.mailchimp.com/f121e48a8bb6d3101590c12d3/images/d704eb1f-18d5-4229-afa4-6f23f8000cc8.jpg> 

	Glasgow: Post-Brexit Employment Rights and Trade Deals
16 November 2017 - 09:30 - 15:30
Unite the Union, Glasgow
At this one-day conference, some of the UK's leading academics, lawyers and campaigners will discuss the threats to employment law posed by Brexit, as well as proposing ideas for how workers' rights can be protected and even improved upon during the negotiations with the EU, as well as in future trade deals.
Speakers include Hilda Palmer, Professor Keith Ewing, Ruth Dukes, Vince Mills, Jackson Cullinane, Jane Carolon and Robin White.
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	Liverpool: Post-Brexit Employment Rights and Trade Deals
30 November 2017 - 09:30 - 15:30
Unite the Union, Liverpool
At this one-day conference, some of the UK's leading academics, lawyers and campaigners will discuss the threats to employment law posed by Brexit, as well as proposing ideas for how workers' rights can be protected and even improved upon during the negotiations with the EU, as well as in future trade deals.
Speakers include Hilda Palmer, Professor Keith Ewing, Iain Birrell, Professor John Foster and Dan Kindell.
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	London: Employment Law Update 2017
06 December 2017 - 09:30 - 16:00
Unite the Union, London
This year has been a landmark one for employment law, with the issue of exploitative working practices reaching public consciousness through repeated scandals at “gig economy” and low-pay employers, prompting political inquiry into reform. At our popular annual employment law update, top lawyers, academics and trade unionists from across the UK meet to discuss the year’s developments in labour law and make proposals for the furthering and protection of workers’ rights.
Speakers include Rebecca Tuck, Betsan Criddle, Stuart Brittenden, Adam Ross, Bruno Gil, Paul Scholey, Jo Seery, John Hendy QC.
 <https://ier.us12.list-manage.com/track/click?u=f121e48a8bb6d3101590c12d3&id=f1377c2784&e=71131c031b> > click here to read more and book your place

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	The Legacy of Thatcherism in European Labour Relations: The Impact of the Politics of Neo-Liberalism and Austerity on Collective Bargaining in a Fragmenting Europe: £8
By Miguel Martinez Lucio, Aristea Koukiadaki and Isabel Tavora
As the UK prepares to leave the European Union, this analysis – the 11th in our Comparative Notes series – shines a light on the deleterious effect of the nation's deregulatory influence on the bloc.
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	8 Good Reasons Why Adult Social Care Needs Sectoral Collective Bargaining: £8
By Dr Lydia Hayes
In this booklet, Dr Lydia Hayes sets out the lessons learned from her interdisciplinary research into the social care sector, and builds upon the recommendations made in the Institute of Employment Rights' Manifesto for Labour Law: a comprehensive revision of worker’s rights to propose a sectoral collective bargaining structure for the negotiation of wages and conditions.
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	Labour Law Highlights 2016: £8
Edited by Rebecca Tuck
This year’s Labour Law Highlights is produced against the backdrop of a Brexit vote in the UK and a Trump victory in the USA. It promises to be a bumpy ride ahead!
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	Health and Safety at Work Act: Time for Change: £10
By Phil James and David Walters
The world of work is changing. Fast. But the framework of law tasked with protecting the health, safety and well being of workers is now 50 years old and – according to the authors of this report – no longer fit for purpose. The authors put forth proposals for reform
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	Access to Justice: Exposing the myths: £6
By Andrew Moretta
In the second of IER’s series of Mythbusters, Andrew Moretta considers the many myths surrounding access to justice, including the narrative surrounding the “red tape” and “burdens on business” ideology, which he believes paved the way for systematic attacks on the tribunal system.
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	Protect the right to strike: kill the bill: £5
By John Hendy QC & Professor Keith Ewing
Two leading experts on trade union rights – Professor Keith Ewing and John Hendy QC – publish a short but comprehensive overview of the Trade Union Bill and its implications.
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By Professor Ralph Darlington and Dr John Dobson
According to the authors of this timely report, the government is attempting to rush into law ‘the most sweeping and radical tightening of rules on industrial action since the Thatcher era of the 1980’s’. They warn that such proposals could result in ‘the biggest showdown over industrial relations for a generation’ and go on to drill down into one aspect of the government’s proposals – strike ballots.
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	The mythology of business: from £6
By David Whyte
The ‘myths’ that this publication takes into consideration are the kind of things that politicians now routinely say without thinking. Yet these 10 myths have very little foundation in reality and are rarely, if ever, accompanied with any concrete evidence to support them.
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