UNISONActive is an unofficial blog produced by UNISON activists for UNISON activists. Bringing news, briefings and events from a progressive left perspective.

Monday 14 December 2009

The crisis in US public services and lessons for the UK‏

The Economist carries an article this week that signposts the way forward for the public sector under a Tory government – or even a Labour Government struggling to pay off the same debt?. Quite simply it argues that public sector pensions, wages and health care are the sole cause of great American Cities like Detroit, Philadelphia and Los Angeles going bust.

It underlines this with a graph entitled ‘Why Cities are Broke’ which attempts to demonstrate a correlation between union density and the decline of local services and the costs associated with union power.
http://www.economist.com/world/unitedstates/displaystory.cfm?story_id=15065693&fsrc=rss

The solutions offered include requiring workers to take unpaid holidays, 23 States have been cutting jobs, a quarter of US cities are ‘revising down’ health care benefits and 11 States reduced all employee benefits. All done under the heading of ‘shared sacrifice’.

This is with a public sector trade union density of 37%. The article also charts the massive decline in trade union density on the private sector in the US economy, currently running at 8%. This, the Economist argues, shows that trade unions in the public sector are living in a fantasy world, protected by the American tax payer in the public sector and that a showdown must come.

Trade unions all over the world are now up against this style of concise union bashing attack. See yesterday’s UNISON Active report on Ireland. But are we ready for it in the UK? Tony Blair famously said he had ‘scars on my back’ from dealing with the public sector and its trade unions but it seems that Cameron or Brown may be ready for harder battles and bigger scars. Our current density hovers around 50 % in the core work force, in the privatised services it is much less. Are we able to defend our jobs? The question posed by the Economist is sadly all too relevant. Will we look like people who are only interested in defending our jobs rather than those public workers who value the services they provide to the vulnerable, the young and the community?

Trade union organisation in these stormy waters becomes our priority. Building membership on a sustainable and powerful basis is the only way we can match this coming attack.

Ironically today’s Guardian carries the report of the New Economics Foundation that shows low paid workers –such as childcare workers or hospital cleaners – increase the well being of the nation more than high flying and much better paid financial sector staff. It is fascinating information and a robust counter argument to the bigotry against public sector workers in the Economist.
http://www.guardian.co.uk/business/2009/dec/14/new-economics-foundation-social-value