Grahame Smith: The unions don’t see austerity as a solution

TUC Congress 2011 will convene in London today, just as the Independent Banking Commission publishes its recommendations. As congress begins to debate the state of the economy, high and rising unemployment, privatisation and the attack on pensions, it is entirely possible the IBC will present a weak set of proposals for banking reform, which will then be kicked into the long grass until after the next election.

Such is life under the coalition government. A full three years after the banking crisis was at its height, there has been no substantive structural or regulatory reform (and here the previous Labour administration is also culpable) of the sector that caused the crisis. There is, however, a concerted attack on workers and a risible supply-side policy agenda encompassing wanton deregulation and business tax cuts; measures useless in the face of a depressed economy, but highly effective in redistributing wealth upwards.

It has often been said that “the Left” is unable to present a credible alternative to austerity. This claim cannot be levelled against the trade union movement. TUC congress agenda is dominated by motions proposing alternatives. Just as the STUC has done in Scotland, the TUC is presenting a coherent alternative on creating jobs, and providing services, fair taxation and living wages.

Inevitably, media coverage will focus on industrial action. It is certainly likely that action of a very significant scale will occur before the year is out, as unions with no recent history of taking strike action are handed strong mandates by members determined to defend hard-won pension rights. Delegates will reveal the impact that wage freezes, cuts in working hours and rising pension contributions are having on workers and their families. Anyone prepared to listen will find the anger and frustration palpable and genuine.

And, just for clarity, the STUC is entirely independent of the TUC and therefore has no influence on whether the PFA’s motion calling for an all-GB Olympics football team is carried or not!

l Grahame Smith is general secretary of the STUC.