WILL THE GOVERNMENT END GIG ECONOMY ABUSES ?

 

 

 

 

The gig economy is nothing new. Before the Dock Labour Scheme of 1967, there was widespread use of casual labour in ports like Liverpool. Dockers depended on a tap on the shoulder to get work. The rise of the unions in the sixties and seventies forced back irresponsible bosses but the predatory instincts of capitalism are always waiting in the wings and have returned now with the gig economy.

Now before you fear I’ve been spending too much time with Shadow Chancellor and avowed Marxist John McDonnell, I should say that I believe private enterprise should flourish and make profits. Owners are entitled to benefit from their bright ideas and risk taking in setting up businesses and shareholders should get a return on their investment. But workers are also entitled to fair wages and secure employment if they want it.

A report was published this week by the former aide to Tony Blair, Matthew Taylor, which could have major implications for business, employees and “dependent contractors”. The last category is one we are going to have to get used to. It is the new name created by Taylor to describe the current position that former dockers found themselves in as they waited anxiously for a few hours work on the dockside.

Nowadays the demand of society is not for casually employed dock workers but for taxi drivers and delivery services. Digital technology has made it possible for people to gain casual employment by identifying a need on line. Many people want work that fits around their lives not employers. Rebecca Long -Bailey and the Labour Party need to recognise this before embarking on a crusade on behalf of workers who, when they look round, may not be behind them. She’s the Salford MP who is also shadow Business Secretary and says using Uber taxis is “morally unacceptable”. I prefer black cabs but I recognise that not everyone employed in the “gig” economy is trapped there by a ruthless employer.

Some are and that is why Taylor is right to call for good work for all with a baseline of rights and a ladder of progress. There is a need to distinguish between the genuinely self-employed and “dependent contractors”. Self-employed pay lower taxes in recognition that they don’t get pension and sick benefits. (There is no sign the government are going to look again at raising their National Insurance contributions). Meanwhile Taylor identifies “dependent contractors” as people working for employers who rely on zero hours, short hours or agency contracts when they should be planning their employment needs better. These workers should receive sick pay and holidays.

The reform would end the confusion which allows firms like Deliveroo to claim their workers are self-employed when in fact it is difficult for them to turn down work.

Over a million people are employed in the “gig” economy and they have contributed to keeping the employment figures healthy while we are in danger of heading into a Brexit economic downturn.

Whether the government will implement the Taylor Report is doubtful. The Prime Minister says she would need opposition support and Labour is already saying it doesn’t go far enough.

I promised to report on my lunch with Vince Cable. I didn’t make it due to a three hour delay on the West Coast mainline. Bring on HS2

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OVER TO YOU BROTHERS AND SISTERS!

 

THE PART OF THE UNIONS.

The grip of Corbynistas on the Labour Party is now extending to the trade unions. As they assemble in Brighton this weekend for their Congress, very few unions are backing Owen Smith. They are the GMB, the Shop workers, Community and the Musicians. Unite The Union (I love the arrogance of that title, I bet it goes down well with the others) is remaining loyal to Jeremy Corbyn. The General Secretary Len McCluskey may be too far to the left for the taste of Middle England but he is facing a potential challenge from an even further left opponent when his post comes up for re-election. That helps to explain “the reality” (his favourite phrase) of the position of the biggest union of all.

I’ve had a look at the Brighton agenda and it is full of worthy policy debates on wages and conditions at work. But as the brothers and sisters sit through the debates they may like to reflect that they are wasting their time. They will continue to have an important role in defending workers rights under existing conditions but in respect of legislative change, they and Labour are impotent.

The unions created the Labour Party to form governments which could represent the interests of workers. The last one left office six years ago. Will Labour win in 2020 or even 2025? Unlikely. Why do they think Theresa May has ruled out a snap election? Because she is so confident of controlling this parliament with Labour divided, even with a majority of 12. She can afford to wait to get her 100 seat majority in 2020.

The unions need to put their financial muscle behind a new centre left party capable of winning power for their members.

TOWN CENTRE CRISIS.

I was sad to hear that the famous jewellers, Preston’s of Bolton, is to close. That proud town’s centre is in a real crisis with another traditional store already shutting its doors.

Emotional shop staff blamed the perfect storm of the Trafford Centre and on-line shopping. Downtown backs Business Improvement Districts in places like Liverpool. Bolton is not alone in facing a bleak future unless some imaginative steps are taken to find a new offer to counter the mega shopping and leisure centres and the computer.

GREAT PROGRAMMES.

The autumn TV season has got off to a great start. ITV’s Victoria plays fast and loose with historical facts (Melbourne was old and fat, not hunky) but the stand out programmes for me so far got less publicity.

Bake Off winner Nadiya Hussain was quite outstanding with her two reports on life in Bangladesh. Her natural open and friendly style, surely means a full career in television beckons.

The second outstanding programme was the latest look at Salford FC owned by ex United legends the Neville Brothers, Ryan Giggs and Paul Scholes.

Production teams have to gamble on who to follow as the season develops. They chose an out of form striker who couldn’t get a game but returned to score vital goals to secure promotion. Roy of the Rovers eat your heart out.

Follow me at www.jimhancock.co.uk

WHEN CORBYN WINS…….

 

 

THE UNIONS MUST DECIDE.

The selection of Steve Rotheram and Andy Burnham to be Labour’s candidates for mayor in the city regions of Liverpool and Manchester mean it is almost certain Jeremy Corbyn will be confirmed as leader of the Labour Party in September.

He will gain control of the party’s ruling National Executive (NEC) shortly afterwards following victories by the Momentum slate in this week’s NEC elections. The organisation was set up to buttress Corbyn support.

Following Corbyn’s victory, de-selection will face most of the Labour MPs who opposed him as the party becomes truly socialist as most of its huge membership desires.

Some of Corbyn’s opponents will seek to rejoin the Shadow team but we may see a majority seeking the Speaker’s recognition as the Official Opposition. This may be a prelude to the setting up of a new social democratic party. It would be a more credible organisation than the “Gang of Four” SDP that was created by Roy Jenkins, Shirley Williams, David Owen and Bill Rodgers in 1981. However its success will crucially depend on what the unions do with their money. There needs to be a big debate at next month’s Trades Union Congress about what they do. The unions founded Labour to win elections in order to put in place laws to help their members. When do they expect that to happen under Jeremy Corbyn? A huge membership is fine. Engaged, enthusiastic activists are to be admired but a programme of high taxes, weak immigration policy and unilateral nuclear disarmament will be rejected by Middle England in 2020 as it was in 1983.

ROTHERAM AND BURNHAM.

It is unlikely that Liverpool’s elected mayor, Joe Anderson will remain “heartbroken” for long following his failure to be selected to be candidate for Labour in next year’s election for Liverpool City Region Mayor. He has already indicated he intends to deliver on his second term programme. He was only re-elected in May to serve till 2020.

One had heard of plans for Liverpool Council to revert to a leader/Cabinet model next year. Deputy Mayor Ann O’Byrne had even been mentioned as the person to lead the city if Joe became City Region Mayor.

The Lib Dems are launching a petition to scrap the Liverpool elected mayor post. Good luck with that. Joe will be staying,no doubt pledging to work in comradely fashion with Steve Rotheram but perhaps secretly warning that his former North Liverpool friend will lead the city region into a Militant style confrontation with the government.

Rotheram has a job of reassurance on his hands. He stayed as Corbyn’s parliamentary aide, and hosted Corbyn’s recent rally in the city. He is seen as Corbyn’s man and will need to satisfy the business community that he will not wreck the work done by Anderson in bringing jobs to the city.

Rotheram has revealed a strong bond with Andy Burnham who won the Labour mayoral nomination in Greater Manchester. They are planning a North West Powerhouse campaign to stop the backsliding on the devolution project that seems to be happening under the new Tory government.

Burnham’s Scouse connections did him no harm with Mancs in the end. Remaining in the Shadow Cabinet went down well with the Corbyn dominated membership. His analysis that devolution has been too Manchester centric and the politics top down and closed off,is right. But just as Rotheram has Anderson to deal with in Liverpool, Sir Richard Leese is still leader of Manchester Council, having made some disparaging remarks about the post that Burnham looks likely to be elected to.

We are all presuming that Rotheram and Burnham are going to defeat their opponents next year in these Labour dominated urban regions. I just wonder in these turbulent times if that is entirely wise.

 

 

 

 

UNION CHALLENGE FOR NEW LABOUR LEADER.

 

You don’t get me, I’m part of the union.”

On Monday the government will introduce in parliament the biggest crack down on the trade unions in thirty years. Len McCluskey’s Unite union is up for the challenge. The General Secretary will spend the weekend at the Trades Union Congress testing support for his call to break the law to resist the Tories plans.

The issue will be an interesting test for the new Labour leader. To support or oppose particular strikes has been one of the most difficult problems for Labour leaders for decades. Barbara Castle crossed the unions in the 1960s, Jim Callaghan’s government was brought down by them in 1979, Neil Kinnock’s discomfort over Arthur Scargill’s miners strike in 1984/5 is the stuff of legend and Ed Miliband’s refusal to take sides became a joke on You Tube.

The reason why the party, created by the unions, has agonised over the issue of union power is because it has feared losing moderate voters. It is this equivocation that has dismayed the left, and particularly the young. During the leadership election they have surged back to Labour in the expectation of more crusading policies. Their argument is that if the party fights with conviction for working people, more will join, Middle England will be overwhelmed and a socialist Labour Party will sweep to power in 2020. The battle over the Trade Union bill will be a first test.

The measure will make unlawful a strike unless 50% of those being asked to strike, vote in the ballot. 40% of those asked to vote must support the strike in key public services. The strike mandate will only last four months Unlawful picketing will become a criminal, not civil, offence. Most controversial of all is the right being given to employers to hire agency staff to break the strike. The Labour Party’s finances are set to be hit with a further provision to require union members to positively agree to pay the political levy.

The number of working days lost to strike action in the 12 months to April was 704,000, a far cry from the 13 million a year in the 70s. However there have been a number of strikes on the London Underground and in schools causing major inconvenience to parents and commuters. This has been the trigger for ministers to act. What will New Old Labour do?

SOCCEREX CONFERENCE.

I attended the excellent global soccer business conference in Manchester this week and thought I would share with you a comment by a panellist. It came during a discussion about fans’ use of new media. Facebook and YouTube had come out of left field with nobody seeing what impact they would have It was noted that some football clubs had given up trying to stop fans taking mobile phone shots of matches and embraced the clips on their websites.

Then the prediction of the next big thing, fans resistance to being the falls guys in the war between Sky and BT for TV soccer rights. As was correctly observed the poor fan now has to pay two huge monthly fees to get full match coverage. Who could stop this? Well perhaps Apple will come to the fans rescue, wipe out BT and Sky and unify the package at a cheaper price. Just a thought.