Posts Tagged ‘Nationalised Industries’

No, Tweezer! It’s Not Labour that’s Attacking Investment, but Tory Privatisation

January 20, 2018

More lies from Theresa May, the lying head of a mendacious, corrupt, odious party. Mike put up another piece earlier this week commenting on a foam-flecked rant by Tweezer against the Labour party. She began this tirade by claiming that Labour had turned its back on investment. This was presumably out of fear of Labour’s very popular policies about renationalising the Health Service, the electricity industry and the railways.

But Labour hasn’t turned its back on investment. Far from it. Labour has proposed an investment bank for Britain – something that is recognised by many economists as being badly needed. It was one of Neil Kinnock’s policies in 1987, before he lost the election and decided that becoming ‘Tory lite’ was the winning electoral strategy.

The Korean economist, Ha-Joon Chang, who teaches at Cambridge, has pointed out that privatisation doesn’t work. Most of the British privatised industries were snapped up by foreign companies. And these companies, as he points out, aren’t interested in investing. We are there competitors. They are interested in acquiring our industries purely to make a profit for their countries, not ours. Mike pointed this out in his blog piece on the matter, stating that 10 of the 25 railway companies were owned by foreign interests, many of them nationalised. So nationalised industry is all right, according to Tweezer, so long as we don’t have it.

The same point is made by Stewart Lansley and Joanna Mack in their book, Breadline Britain: the Rise of Mass Poverty (Oneworld 2015). They write

The privatisation, from the 1980s, of the former publicly owned utilities is another example of the extractive process at work, and one that hs brought a huge bonanza for corporate and financial executives at the expense of staff, taxpayers and consumers. Seventy-two state-own enterprises we4re sold between 1983 and 1991 alone, with the political promise that the public-to-private transfer would raise efficiency, productivity and investment in the to the benefit of all. Yet such gains have proved elusive. With most of those who landed shares on privatisation selling up swiftly, the promised shareholding democracy failed to materialise. In the most comprehensive study of the British privatisation process, the Italian academic Massimo Florio, in his book The Great Divistiture, has concluded that privatisation failed to boost efficiency and has led to a ‘substantial regressive effect on the distribution of incomes and wealth in the United Kingdom’. Despite delivering little in the way of unproved performance, privatisation has brought great hikes in managerial pay, profits and shareholder returns paid for by staff lay-offs, the erosion of pay and security, taxpayer losses and higher prices.
(P. 195).

They then go on to discuss how privatisation has led to rising prices, especially in the electricity and water industries.

In most instances, privatisation has led to steady rises in bills, such as for energy and water. Electricity prices are estimated to be between ten and twenty per cent higher than they would have been without privatisation, contributing to the rise in fuel poverty of several years. Between 2002 and 2011, energy and water bills rose forty-five and twenty-one percent respectively in real terms, while median incomes stagnated and those of the poorest tenth fell by eleven percent. The winners have been largely a mix of executives and wealth investors, whole most of the costs – in job security, pay among the least well-skilled, and rising utility bills – have been borne by the poorest half of the population. ‘In this sense, privatisation was an integral part of a series of policies that created a social rift unequalled anywhere else in Europe’, Florio concluded.
(pp. 156-7)

They then go on to discuss the particular instance of the water industry.

Ten of the twenty-three privatised local and region water companies are now foreign owned with a further eight bought by private equity groups. In 2007 Thames Water was taken over by a private consortium of investors, mostly from overseas. Since then, as revealed in a study by John Allen and Michael Pryke at the Open University, the consortium has engineered the company’s finances to ensure that dividends to investors have exceeded net profits paid for by borrowing, a practice now common across the industry. By offsetting interest charges on the loan, the company will pay no corporation tax for the next five to six years. As the academics concluded: ‘A mound of leveraged debt has been used to benefit investors at the expense of households and their rising water bills.’
(P. 157).

They also point out that Britain’s pro-privatisation policy is in market contrast to that of other nations in the EU and America.

It is a similar story across other privatised sectors from the railways to care homes. The fixation with private ownership tis also now increasingly out of step with other countries, which have been unwinding their own privatisation programmes in response to the way the utilities have been exploited for private gain. Eighty-six cities – throughout the US and across Europe – have taken water back into a form of public ownership.
(Pp. 157-8)

Even in America, where foreign investors are not allowed to take over utility companies, privatisation has not brought greater investment into these companies, and particularly the electricity industry, as the American author of Zombie Economics points out.

Lansley and Mack then go on to discuss the noxious case of the Private Equity Firms, which bought up care homes as a nice little investment. Their debt manipulation shenanigans caused many of these to collapse.

So when Tweezer went off on her rant against Labour the other day, this is what she was really defending: the exploitation of British consumers and taxpayers by foreign investors; management and shareholders boosting their pay and dividends by raising prices, and squeezing their workers as much as possible, while dodging tax.

Privatisation isn’t working. Let’s go back to Atlee and nationalise the utilities. And kick out Theresa, the Tories and their lies.

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RT on the Media Silence over Corbyn Receiving Peace Prize in Geneva

December 12, 2017

RT put up this video yesterday, reporting that the Friday before, Jeremy Corbyn and Noam Chomsky had been awarded the Sean MacBride Peace Prize by an international committee, the International Peace Bureau in Geneva. The committee had been impressed by the Labour leader’s ‘sustained and powerful work for disarmament and peace’. But they also note that this has not been widely reported in the British press.

Mike also covered the story from the NHS Skwawkbox. They reported that the All Okinawa Council Against Henoko New Base also received the award along with Corbyn and Chomsky. The Bureau was impressed by Corbyn’s work as an ordinary member, then vice-chair and now vice-president of CND, as a past chair of the Stop the War Coalition, as well as his work over 34 years as an MP. They were impressed by his statement that he could not press the button for retaliation in a nuclear attack, and arguing that military spending should be cut and the money spent instead on health, education and welfare.

The award ceremony itself was held on November 24th in Geneva, but Corbyn had to wait until this weekend to collect it.

Mike also noted at the very start of his piece about Corbyn receiving the prise that the British media was silent about it. He wrote:

<strong>Where are the celebrations from the mainstream TV and newspaper media in the UK? The leader of the Labour Party has won a major international peace prize and I can’t find any headlines about it at all, apart from in Skwawkbox!*</strong>

http://voxpoliticalonline.com/2017/12/09/jeremy-corbyn-collects-sean-macbride-peace-prize-2017/

There’s no need to look very hard to find reasons why the Beeb, ITV, Channel 4 and the British press weren’t keen to report this honour for the Labour leader: they cordially hate him as a threat to the Thatcherite corporatist agenda that is ruining the country and forcing millions of Brits into mass poverty. And his fellow recipients are also enough to give any right-winger a touch of the vapours. Noam Chomsky is a veteran critic of American imperialism. I think in his personal political beliefs he’s an Anarchist/ anarcho-syndicalist. Which means he believes the best form of society would be one where there was no state, and everything was run by the workers through trade unions. The All Okinawa Council against Henoko New Base sounds like one of the local organisations set up on the Japanese island of Okinawa to oppose the presence of the American military base. The Japanese are increasingly resentful of American bases on their territory, and see it very much as military occupation, especially after the Fall of Communism and the removal of the Soviet Union as a threat to Japan.

But America now is a warfare state. It has expanded the war on terror to include military strikes and campaigns in seven countries, and its economy is heavily tied in to government spending on the arms industries. And where you have arms manufacturers with a powerful voice in government, you also find wars. And Britain is being dragged into them through the ‘special relationship’. Not that in Blair’s and Cameron’s case the Americans needed to do much dragging. I got the impression that Blair was enthusiastic for the Iraq invasion, and Blissex, one of the very highly informed commenters on this blog, stated that, according to the Americans, it was Cameron and Sarkozy in France, who pushed for the airstrikes to overthrow Gaddafi in Libya.

Throughout his period as head of the Labour party, the British media has been bitterly biased against Corbyn. When the plotters in the Chicken Coup staged their mass resignations the other year, it began with the collusion of one of the plotters to do it on Andrew Neil’s show. Now that Corbyn has made a genuinely positive achievement, which they can’t very well sneer at, or spin so it reflects badly on him, the media have no choice but to remain silent.

Apart from the issue of defence and western militarism, there are other reasons why the corporate media hate Corbyn: he wants to strengthen the welfare state, and embark on a campaign of renationalisation – renationalising the NHS and also the utilities industries and railways. This frightens the multimillionaire businessmen, who control the papers.

And so in the I yesterday, in the column where it quotes the opinions of the other papers, you had a quote from Simon Heffer in the Torygraph ranting about how ‘Stalinist’ Momentum were trying to deselect the ‘thoroughly decent’ moderates in the Labour party. And another quote from Karren Brady of the Apprentice declaring that Corbyn was a ‘Communist’, who supported nationalisation for his own peculiar reasons. She also reminded us that the nationalised industries had been failures, citing British Gas particularly.

Well, Heffer has always been a Tory spokesman, and the Telegraph has been particularly vocal in its hatred of the Labour leader. Not only is Heffer a dyed in the wool Tory, he was also a contributor to a book celebrating Enoch Powell that came out a few years ago, entitled Enoch at 100. Not only was Powell responsible for inflaming racism in Britain with his ‘rivers of blood’ speech, he was also a Monetarist, which became Thatcher’s favourite economic doctrine. Monetarism was regarded at the time by the majority of economists as stupid and ridiculous, and was effectively abandoned by Thatcher herself later in her tenure of No. 10.

And the ‘moderates’ in the Labour party are no such thing, nor are they ‘decent people’. They are liars and intriguers to a man and woman. They did everything they could to unseat Corbyn, and silence or throw out his supporters. But now that the likes of ‘Bomber’ Benn – so-called because of his enthusiasm for airstrikes on Syria – have failed, the Torygraph has to lament how they’re being ‘persecuted’ by Corbyn’s supporters.

As for Brady’s comments about the nationalised industries, yes, I do remember how there were problems with them. British Gas was notorious, and became notoriously worse after privatisation. But private ownership has very definitely not brought more investment nor improved the performance of the utilities companies. Quite the reverse – the rail network is actually performing worse now than it was in the last years of British Rail. It now consumes a higher government subsidy and charges more for worse services, all to keep its board on their expensive salaries and bonuses and bloated dividends to its shareholders.

But Brady really doesn’t want you to know that. She’s a businesswoman, who clearly stands four-square for the companies seeking to make vast profits from the former state sector. So she very definitely isn’t going to admit that there’s a problem with them.

Brady herself also likes to project herself as some kind of feminist heroine, thrusting through the corporate glass ceiling and inspiring other women and girls to take up the fight to make it in business. As Private Eye mischievously pointed out, this would be more convincing if she hadn’t begun her business career working in the offices of one of the porn companies.

The business elite are frightened of Corbyn, because he’s set to renationalise industry and empower British working people. And so if they can’t vilify him, as they couldn’t with the award of the Sean McBride Peace Prize, they have to keep silent.

Fabian Pamphlet on the Future of Industrial Democracy: Part 2

November 11, 2017

This is the second part of my article on William McCarthy’s Fabian pamphlet, The Future of Industrial Democracy, published in 1988.

The section on Ideas in chapter 3: Composition and Principles of Representation runs as follows

At this stage all one can do is propose a number of suggestions and options for further consideration by the Movement. I therefore advance the following cockshy in an attempt to start a debate. No doubt it fails to grapple with many of the problems and oversimplifies others. It should be regarded as written with the lightest of pencils. Three ideas come to mind.

First, why not retain the Bullock notion of a universal enabling ballot, to test whether workers in a given firm or establishment wish to exercise their statutory rights to participation? As the Bullock Report recognised unions would retain the right to “trigger” such a ballot in the groups they represented. Well-intentioned employers, in association with recognised unions, could agree to recommend the establishment of such statutory councils; but there would be a need to be a ballot of all workers involved.

Where a majority of workers voting favoured the establishment of participative rights the employer would be under a legal obligation to establish statutory joint councils. The composition of the workers’ side would be broadly defined by statute, as would be their powers and right. Management would be free to decide its own representatives who served on the council, but the statute would specify the obligations of the employee.

Second, why not let worker representatives emerge by means of a universal secret ballot-open to both unionists and non-unionists-with recognised unions enjoying certain prescribed rights of nomination? Here there a considerable number of European examples to choose from. In France and Luxembourg as I understand it, only unions can nominate for the “first round” of elections. If less than 50 per cent of the electorate vote there is a second election and any worker can nominate. In Belgium unions have an exclusive right to nominate “lists” of candidates where they have representative rights; non-unionists may make nominations elsewhere. Alternatively, there are systems where a given number of workers can nominate if unions fail to provide sufficient nominations. In the Netherlands, for example, any thirty workers can nominate in the larger enterprises, if unions fail to do so. In Germany any three workers can put up a candidate. For myself I favour certain limited rights of nomination in cases where unions are recognised. This is the area where the spectre of “company unionism” is most easily perceived and rightly resisted.

Third, why not specify that in areas where unions can demonstrate that they have members but no recognition any “appropriate” union has the right to make nominations? This need not prevent a given number of workers from enjoying analogous rights.

The section on Legal Framework also says

The best possible combination of nomination and electoral arrangements needs further thought than I can give it as this point. What I believe is that given suitable arrangements it would be possible both to safeguard the position of established unions and create conditions favourable to trade union growth; yet it would not be necessary to insist on a quasi-monopoly of representative rights confined to recognised unions. I suggest that after further debate within the Movement, Labour should propose an enabling statute which provides for joint participation councils in all private firms employing more than 500. The figure of 500 is itself open to debate. But in this way, I estimate it would be possible to show that the intention was to provide participation opportunities for something like 50 per cent of the private sector labour force. A worthwhile beginning to further advance, based on experience and proven worth. Where it was evident that a company employing more than 500 was divided into more than one “establishment” or was composed of a group of companies under the overall control of a “holding company” or its equivalent, power would exist to demand additional joint councils, with rights related to decisions taken at appropriate management levels.

Consideration would need to be given to the creation of a similar framework of rights in appropriate parts of the public sector of employment. So far as I can see there is no good reason why workers in the nationalised industries, national and local government or the NHS should be deprived of statutory rights to participate in management decisions affecting their working lives. No doubt the representation of “management” will pose different problems, the appropriate levels of joint councils will need to be tailor-made to fit different parts of the public sector and there will be different problems of confidentiality. But I doubt if the needs of workers and the benefits to both employers and the public will be found to be all that different.

It will be said that this cockshy for further consideration is superficial, with several critical problems and difficulties left unresolved. Those who like its general drift, but feel fear that the sceptics may have a case, could not do better than look again at some of the less publicised parts of the Bullock Report. One of the more lasting services performed by the Committee of Inquiry was that it set out to explore and overcome almost all the practical objections that could be raised to any form of statutorily based workers’ participation (see Bullock op. cit. chapters 11 and 12).

For this reason its says wise and relevant things about the need to avoid allowing all kinds of exceptions to a participation law, based on the alleged differences that are said to exist in banks, shipping lines, building firms and other parts of the private sector where employers would like to escape the effect of legislation. It also provides a clear account of the problem of “confidentiality” and how best to deal with it. It makes a convincing case for an Industrial Democracy Commission (IDC) to administer and apply the legislation and monitor its effects in an objective and impartial way. (In our case an additional essential task for the IDC would be to decide when multi-level joint councils were justified in the case of a particular firm or group of firms.) Above all, perhaps, it provides a guide through the complexities of company structure-with its spider’s web of holding boards, subsidiary boards, parent companies, inter-locking “subsidiaries” and “intermediate” organisations. It even follows these labyrinth paths into the upper reaches of British and foreign-based multi-nationals.

Of course the Committee’s primary objective in tracing out the lines of corporate responsibility and influence was to decide how to apply its own benchmark of “2,000 or more employees”. After much consideration they decided that this should apply “…to the ultimate holding company of a group which in toto employs 2,000 or more people in the United Kingdom, as well as to any individual company which employs 2,000 or more people in the United Kingdom, whether or not it is part of a group” (Bullock, op. cit. p. 132).

With appropriate emendation to fit the lower thresholds advanced in this pamphlet the Bullock formula seems to me to provide the essence of the right approach.

It is also important to remember that the legal framework advanced above would its place alongside Labour’s overall programme for extending rights at work-eg the restoration of trade union rights, improved rights of recognition and an expansion of individual rights against employers in cases of unfair dismissal and discrimination. All British workers would gain from such a programme and good employers should have nothing to fear.

The proposals should also be seen against the background of the first report of the Labour Party National Executive Committee’s People at Work Policy Review Group, with its emphasis on the need for a new training initiative and action to raise economic efficiency and the quality of life at work.

A legal framework of the kind envisaged here would provide trade unions and trade unionists with unrivalled opportunities. In areas where unions were recognised union representatives would find it easier to service members and influence the decisions of management. In areas where non-unionism is now the norm there would be greater incentives to organise and recruit; it would be easier to demonstrate what unionisation could do and easier to move to a situation in which recognition became a natural development. Of course, unions and their workplace representatives would need to become experts in explaining and using the rights embodied in the new framework. There would be a need for professional and prompt guidance and support in local and national union offices.

Unions should also find it easier to tackle their media image as negative and reactionary forces-opposed to the narrow “consumerism” peddled by the Government and its allies: engaged in a perpetual battle against management-inspired improvements in productivity and efficiency. In time, and before very long, it should be possible to demonstrate the contribution which can be made by the right kind of alliance between management, workers and unions. Benighted market men and women can be relied upon to misunderstand and misrepresent any teething problems and difficulties that arise; but for trade unionists of all sorts and persuasions there will be very little to lose and a great deal to gain.

This article will conclude in Part 3, which will discuss the pamphlet’s last chapter, Summary and Conclusions.

The Rise of Fascism and the Failure of Neoliberal Capitalism

September 30, 2017

Today Mike put up a very good piece attacking Theresa May’s speech praising capitalism as the greatest force in human history for raising people out of poverty. In fact, as Mike shows, the type of neoliberal crony capitalism May is really in favour of, has done nothing but reduce people to poverty. The force that raised living standards in Britain and gave British people the highest standard of living that they enjoyed in 1977 was the mixed economy of democratic socialism and the welfare state introduced after the War, and which the Tories have been trying to destroy ever since the rise of Thatcher.

This should come as no surprise. The Korean economist, Ha=Joon Chang, makes pretty much the same case in his book, 23 Things They Don’t Tell You About Capitalism. Chang is also an admirer of capitalism, but his book is a sustained attack on Thatcherite neoliberalism. He shows that every country in the world has begun its rise to economic prosperity through protectionism, and that the countries with the most flexible labour markets and stable, prosperous industries are those with a mixed economy of socialized and private industries and a welfare state. And this includes those countries, where the industries may not be nationalized, but the workers have a share in the management, such as in Germany and Austria.

And the decline of socialism and communism in Europe has had terrible consequences. On Tuesday Counterpunch published a lengthy article by Gregory Barrett commenting on the rise on votes for the Nazi Alternative fuer Deutschland, The German Election: The West’s Nervous Breakdown Continues. He makes the point that this was assisted by the massive poverty and disillusionment caused by the failure of western capitalism to improve the lives of people in eastern Europe. He writes

As Stephen Gowans writes in his recent essay “We Lived Better Then”:

‘Of course, none of the great promises of the counterrevolution were kept. While at the time the demise of socialism in the Soviet Union and Eastern Europe was proclaimed as a great victory for humanity, not least by leftist intellectuals in the United States, two decades later there’s little to celebrate. The dismantling of socialism has, in a word, been a catastrophe, a great swindle that has not only delivered none of what it promised, but has wreaked irreparable harm, not only in the former socialist countries, but throughout the Western world, as well. Countless millions have been plunged deep into poverty, imperialism has been given a free hand, and wages and benefits in the West have bowed under the pressure of intensified competition for jobs and industry unleashed by a flood of jobless from the former socialist countries, where joblessness once, rightly, was considered an obscenity. Numberless voices in Russia, Romania, East Germany and elsewhere lament what has been stolen from them — and from humanity as a whole: “We lived better under communism. We had jobs. We had security.” And with the threat of jobs migrating to low-wage, high unemployment countries of Eastern Europe, workers in Western Europe have been forced to accept a longer working day, lower pay, and degraded benefits. Today, they fight a desperate rearguard action, where the victories are few, the defeats many. They too lived better — once.’

While the often racist and xenophobic manner in which East Germans and Eastern Europeans express their anger at what they see as an influx of foreigners who go to the front of the line for Western largesse — while the 30-year betrayal of the promises and misleading propaganda directed at themselves from 1989 to 1991 continues, although unacknowledged — is ugly and despicable, it is not hard to understand in its historical context. Somehow the assurances of the good life for all, thanks to the benevolent “invisible hand of the free market”, and the forecasts of blooming landscapes of prosperity across Eastern Europe, have failed to materialize. After more than a quarter of a century, prosperous areas exist but are exceedingly rare. In East Germany many small towns and villages are dying, and the population is shrinking as many follow the jobs westward, since few major employers have chosen to come eastward to them. Unemployment is much higher than in West Germany, and the cultural divisions between the citizens of the old DDR and West Germans have proven very stubborn and difficult to overcome. But the damage has not been confined to those in the formerly socialist countries. As Stephen Gowans points out:

‘But that’s only part of the story. For others, for investors and corporations, who’ve found new markets and opportunities for profitable investment, and can reap the benefits of the lower labor costs that attend intensified competition for jobs, the overthrow of socialism has, indeed, been something to celebrate. Equally, it has been welcomed by the landowning and industrial elite of the pre-socialist regimes whose estates and industrial concerns have been recovered and privatized. But they’re a minority. Why should the rest of us celebrate our own mugging?

This poverty hasn’t been confined to eastern Europe. It’s led to us in the west being forced to work harder, for less pay, and fewer welfare benefits. Otherwise capital simply outsources our jobs to one of the eastern European nations.

He then examines the way Merkel and the Christian Democrats, and the other right-wing parties have persuaded their workers to vote for policies which only benefit the rich industrialists. This is by stressing ‘innere sicherheit’, ‘internal security’, and the threat to it posed by crime and immigrants. Just like the Tories, Kippers and other parties of the right over here. She also took credit for many of the welfare reforms initiated by the SDP, the German equivalent of our Labour party. This has led to the SDP being reduced to only 20 per cent of the vote, and they have said that they are no longer available as coalition partners. Barrett is extremely pessimistic, stating it is probably too late, with the exception of Britain, to save Europe’s Social Democratic heritage. Germany now joins the Netherlands as a country, whose political landscape is a mosaic of competing parties. A landscape in which one element is the extreme right, who believe she betrayed Germany by allowing an influx of migrants.

See: https://www.counterpunch.org/2017/09/26/the-german-election-the-wests-nervous-breakdown-continues/

There isn’t much to add to this, except that the SPD could probably save themselves by scrapping the heritage of Gerhard Schroeder and moving leftwards, as Labour has over here. Schroeder was the German equivalent of Tony Blair, and just as Blair tried to remake Labour as a party of the neoliberal right, so did Schroeder try to do something similar with the German Social Democrats.

As for Merkel, I think her mistake was announcing that one million immigrants from Syria and the Middle East could settle in Germany. She meant well, and I think it was a genuinely liberal, generous gesture intended to show how non-Nazi and welcoming modern Germany was. But she failed to take into account some of the simmering racial tensions in Germany. The German birthrate is falling, so that when I was at school in the 1980s, there were headlines in the Frankfurter Allgemeine, Germany’s paper of record, stating that there would be 30 million fewer Germans by the year 2000. Of course, this was before reunification boosted the country’s total population. The Germans have also been worried about Turkish Germans creating a parallel society, in which they needn’t speak German, because they’re surrounded by Turkish businesses and Turkish language broadcasters. And some German Turkish writers have also written about how the authorities in their communities placed pressure on the young in their community not to become friends or associate with ethnic Germans, or to see themselves as Germans, but to remain Turks and isolate themselves from mainstream society.

Of course Germany isn’t the only country facing such issues. Our government has similarly expressed fears about the immigrant, and particularly Muslim communities over here, as have the French across le Manche.

Even so, I think some of the xenophobia that led to the increased voting for the AfD could have been avoided, if Germany had not suffered the 200-odd spate of rapes committed by Syrian or North African immigrants the other Christmas. I’ve no doubt whatsoever that most rapists in Germany are ethnic Germans, just as the majority of child molesters over here are White Brits, and not Pakistanis or other Muslim Asians. But just as resentment over the rapes and abuse committed by the Asian paedophiles in Rotherham, and the failure of the local authorities to act against it, aided UKIP, so did the rape attacks aid the far right in Germany.

And also, it should be said, the rest of the world. They were widely reported to the point where a new word, ‘rapefugee’, was coined by the Islamophobic right.

Across Europe and America, immigrants and decent, ordinary people are facing the threat of renewed Fascism. It will need determined action by anti-Fascists to defeat it and support genuine anti-racist, tolerant and pluralistic societies. At the same time, we also need to recognize the role of neoliberalism in creating the poverty and insecurity, which leads to so many traditional White Europeans fearing for their future, and the way Conservatives and Fascists across Europe and America are exploiting this to keep themselves in power by misdirecting these fears onto immigrants, Blacks, Muslims, Roma and Jews.

The Fabian Society’s Recommendations for British Industrial Democracy

July 12, 2016

I’ve put up a number of pieces recently advocating various forms of industrial democracy, from the German and Austrian works councils, to the Guild Socialist version in Britain. The Labour Party was also considering introducing industrial democracy into British firms in the 1970s. This would have been extremely radical, and made up to about 50 per cent of the members of the boards of directors workers elected through the trade unions. The issue was further discussed in the Fabian Society’s pamphlet, Workers in the Boardroom: Fabian Evidence to the Bullock Committee on Industrial Democracy. In ‘Appendix 1: Conclusions of Fabian Tract “Working Power”‘, the Society laid out its recommendations for its introduction into British industry.

The Appendix states

There is now a strong case for more industrial democracy all the way up from the shop floor to the boardroom. Evidence of substantial support amongst employees and their representatives for such a development suggests that new democratic structures would have firm foundations. It is essential, however, if democratic change is to be more than a façade, that it must be backed by trade union machinery and also build on existing collective bargaining systems.

Though there are problems to be overcome in the introduction of employee participation in management, some of the fears about trade union independence lose their validity if, as has been suggested, such participation is seen as an extension of the principles of collective bargaining (if not its actual form) to areas and levels which are now the subject of managerial prerogative. What is proposed is, in face, a system of dual power (employees and management) throughout industry, including the private sector.

Labour’s strategy to promote industrial democracy should be based on the following principles:

1. A single channel of representation.

2. Strengthening, extending and building on collective bargaining.

3. A multi-dimensional approach, capable of affecting managerial decision making at all levels from shop floor to boardroom.

4. Advancing democracy in the private sector as much as the public sector.

A programme to increase industrial democracy should include the following elements.

1. The Increase of trade union membership by establishing the right to join a union, by enabling trade unions, in difficulty over recognition, to use the ACAS and, in the last resort, unilateral arbitration facilities through the court, by reforming wages councils, and by much more vigorous trade union recruitment.

2. The extension of shop floor bargaining giving shop floor representatives minimum facilities as of right, by encouraging the codification of agreements, by widening their scope to include manpower planning, safety and work design (backed by government supported experiments) and by the statutory provision of information as of right.

3. The development of company and group bargaining to fill the missing gap between shop floor bargaining and employee representation on boards.

4. The introduction of employee representatives on boards by, as a first priority, introducing 50 per cent trade union representation on nationalised industry boards and, in the private sector, by setting up a two tier board structure, which a supreme supervisory board on which 50 per cent are trade union representatives, and by changing company obligations to take account of employee interests. In the private sector, employees should be given a choice as whether they want representation on the boards or not-in organised firms through trade union machinery and in non-organised firms, under ACAS supervision. The case for an independent chairman, elected by both sides of the supervisory board, ought to be considered.

5 The recognition of trade union responsibility for a major recruitment and educational effort, and also for a close watch against arbitrary exclusion and improper use of trade union machinery. Case for an independent tribunal as final court of appeal for aggrieved individuals to be considered.

If all, or even some, of the proposals suggested are implemented, they would result in a dramatic improvement in industrial democracy. We accept that they fall short of workers’ self-management. However, they are not a barrier to the achievement of such a goal. On the contrary, they represent an important step towards its. We should always remember democratic change is a movement towards rather than a final arrival.

These are certainly radical proposals, and something like 50 per cent trade union representation may be too much for some people. but we certainly need a system like this, and improved trade union power, to protect British working people from the utter poverty and precarity now imposed by employers through zero hours contracts and so on.