Unions Warn Government of Workers’ Anger if Opportunity Missed to Stop Redundancy Rot

LONDON - On the eve of a key Commons stage of a Bill (Thursday 12th March) that
would boost redundancy pay for three out of every four UK workers, unions are
warning the government not to miss the chance to give a helping hand through
rough times.

They are concerned that the government looks set to oppose the bill,
meaning its chances of making it into law are next to zero.

Unions claim that the drop in value of statutory redundancy pay (SRP) is
punishing workers at a time of desperate financial need, and is upholding the
UK’s status as an EU nation where it is cheap to sack workers.

They want the government to seize the opportunity presented by a private
member’s bill to stop the rot in redundancy pay, and say that this would show
working people that the government is on their side.

The Statutory Redundancy Pay (Amendment) Bill, sponsored by Lindsay Hoyle
MP and backed by the country’s leading unions, has its vital second reading
in the Commons tomorrow (Friday 13th, 2009). The bill would remove the cap on
and increase the value of the state basic for redundancy pay to bring it into
line with average earnings.

Support for the measure is growing with many backbench Labour MPs joining
the unions in arguing that now more than ever, it is vital that the
government honours its manifesto and Warwick commitments to working people to
increase redundancy pay.

Tony Woodley, joint general secretary of Unite and chair of the Trade
Union Liaison Organisation (TULO), said: “It is a disgrace that UK workers
can be so cheap to sack. One of my members, a skilled worker with 16 years
service, was shown the door with only GBP4,500. How can that be expected to
help him to keep a roof over his family’s head and food on the table until
he’s back at work?

“This rot must be stopped. If money can be found to bail out the bankers
who created this crisis, then it can be found to help ordinary people who
are struggling most.

“Workers will not forgive the government if they fail to grab the clear
chance now of helping them through tough times this bill presents.”

Derek Simpson, joint general secretary of Unite, the UK’s biggest union,
added: “People understand that this is about social justice, about making
sure that workers get a fair deal when facing hard times.

“Redundancy pay which is worth around only half of earnings is an insult
to hard-working people. Action now by government to drag their redundancy pay
back into line with the real cost of living would be right and popular, it
would ensure Labour makes good on an outstanding commitment and with
political will, could be in place before the summer.

“Now, more than ever, working people need a helping hand. They expect a
Labour government and Labour MPs to be the first to offer it and will be
entitled to ask searching questions if they do not.”

According to the unions, SRP has drifted so far away from real wages in
value that it is now worth around only half of earnings, compared to the 200
per cent it represented when introduced in 1965. The result is that workers
are losing out on thousands of pounds at the very time they need it most.

Workers have been contacting the unions to report dramatically low
redundancy pay packages, including:

* One energy worker with 45 years experience who ,when made redundant
soon, will receive SRP equivalent to only two months’ wages;

* A manufacturing worker made redundant after 17 years who received only
GBP4500 calculated on SRP;

* A construction worker who received GBP5775 in SRP but had it been
brought into line with earnings would have received GBP8448, a difference of
GBP3073;

* A charity worker made redundant after eight years and paid only SRP,
denying him thousands of pounds.

Lindsay Hoyle MP was third in the private member’s ballot and a Commons
motion supporting his bill has been signed by over 130 Labour MPs, making it
second only to postal privatisation plans in the list of MPs’ concerns.

Lifting redundancy pay was a 2004 Warwick commitment and a 2007 manifesto
pledge. Without government backing, however, this bill which would deliver on
these commitments, cannot succeed.

The bill is backed by Aslef, Community, CWU, GMB, TSSA, Ucatt, Usdaw,
Unite, Unison, TULO and the TUC.

Source: Unite the Union

For further information contact Pauline Doyle (Unite) on +44(0)7976-832-861