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“As trade unions, we still have a major fight on our hands”

SEPTEMBER 12, 2024

An edited version of the speech Sarah Woolley made to the Trade Union Coordinating Group fringe meeting at this week’s TUC Conference.

One of Keir Starmer’s five ‘missions’ for government is “to kickstart economic growth to secure the highest sustained growth in the G7 with good jobs and productivity growth in every part of the country making everyone, not just a few, better off.”

That’s a goal we could all share, on the condition that growth is delivered on a sustainable basis which is compatible with reaching our climate targets.

But what is much less clear is exactly how and when is this growth going to happen?

People can’t afford any more years of economic failure. After more than 14 years of Tory austerity, and a devastating cost of living crisis, working class living standards have been absolutely hammered.   

The Trussell Trust gave out 3.1 million emergency food parcels over the last 12 months (over a million of which were for children), a 94% increase on the previous year. They also saw a rise of 27% in the number of pensioners presenting at their food banks.

Food banks are now being regularly used to support households with at least one member in paid employment, such is the rise in ‘in-work poverty’. The Foodworkers on the Breadline report published by our union shows that pay and conditions in the food sector itself means that the workers who keep Britain fed are worried about feeding themselves and their families.   Nearly 70% of workers who responded to the survey worried that their wages were not enough to put good food on the table, while over half reported that they had experience of running out of food. 

Austerity has had a devastating impact on people’s lives, and public services are at breaking point – the NHS is on its knees.  But Keir Starmer’s promise that things will get worse is genuinely frightening.     People voted for change, our members were clear in the manifesto document we put together after speaking to them that they demand change and we need to see that change, not more of the same – like taking winter fuel payments off all but the very poorest pensioners.     

More austerity, more downward pressure on pay and further cuts to spending are exactly what we don’tneed if we’re going to get growth in the economy. Putting money in working class people’s pockets will result in more money being spent locally as they don’t typically have off-shore bank accounts and hedge funds to save it in. By locking the government into an even tighter fiscal straitjacket, Rachel Reeves will only heap on further pain but will do nothing to help achieve the ‘mission’ of restoring growth.    

Instead, we need urgent and radical action to direct investment into building local economies, investing in renewable energy, saving the high street, restoring public services and ensuring that work is paid fairly for everyone.

In circumstances like these, it would be criminal to rule out tax rises on the wealthiest in society, who pay far less in marginal tax rates than the lowest earners. It’s no good saying, “We can’t have it if we can’t afford it” while you leave all the wealth in the hands of the billionaires.

Arguing for the redistribution of wealth used to be plain common sense, even for social democrats. The labour movement as a whole needs to put it back on the agenda.

Critical, here, will be implementing the New Deal for Working People in full – including strengthening trade union rights, extending sectoral collective bargaining, abolishing all zero-hours contracts, ending fire-and-rehire and guaranteeing a decent living wage for all regardless of age. 

We can’t allow powerful employers’ groups to water down these plans to maintain the race-to-the-bottom on pay and conditions. Failure to offer hope to our communities will leave open a huge vacuum for the far right to fill. Reform UK have made strides in this election and are already looking at targets for the next round of local elections to further their reach in 5 years’ time.

Despite the change of government, as trade unions, we still have a major fight on our hands. We need to win the argument for a clear change in direction so that the needs of people come before profit.  

Sarah Woolley is General Secretary of the Bakers, Food and Allied Workers Union.